A bill to amend title VII of the Higher Education Act of 1965 to provide for college retention challenge grants.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Building Student Success Act of 
2009''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) the overwhelming majority of new jobs created by the 
        United States economy will require at least some college;
            (2) the United States has slipped from number 1 in the 
        world in the percentage of workers with college degrees;
            (3) in order to restore the United States standing with 
        respect to the percentage of workers with college degrees, it 
        will be necessary to increase the percentage of 25- to 34-year-
        olds attaining college degrees from 40 percent to 60 percent;
            (4) there is a national imperative to ensure that a greater 
        number of citizens attain postsecondary degrees and 
        credentials;
            (5) community colleges enroll more than 46 percent of all 
        the students in American higher education taking credit-bearing 
        courses;
            (6) community colleges enroll disproportionate percentages 
        of low-income individuals, first generation college students, 
        and underrepresented racial and ethnic minorities;
            (7) the graduation and completion rates of community 
        colleges can be substantially improved from current rates;
            (8) community colleges receive far fewer resources per 
        student than other types of institutions of higher education; 
        and
            (9) the Federal Government has an interest in ensuring that 
        community colleges receive greater support to help students 
        complete their programs and achieve their personal goals.

SEC. 3. COLLEGE RETENTION CHALLENGE GRANTS.

    Title VII of the Higher Education Act of 1965 (20 U.S.C. 1133 et 
seq.) is amended by adding at the end the following:

              ``PART F--COLLEGE RETENTION CHALLENGE GRANTS

``SEC. 791. COLLEGE RETENTION CHALLENGE GRANTS.

    ``(a) Establishment of Grant Program to States.--
            ``(1) In general.--
                    ``(A) Award.--From amounts appropriated under 
                subsection (d), the Secretary shall award grants, from 
                allotments under paragraph (2), to States to pay the 
                Federal share of the costs of carrying out the 
                activities described in paragraph (4).
                    ``(B) Grant terms.--Grants awarded under this 
                paragraph shall be for a period of 5 years.
                    ``(C) Definitions.--In this section:
                            ``(i) Community college.--The term 
                        `community college' means a public institution 
                        of higher education whose highest degree 
                        offered is predominantly an associate's degree.
                            ``(ii) Open enrollment institution.--The 
                        term `open enrollment institution' means a 
                        community college or an institution of higher 
                        education that has an admission policy whereby 
                        the college or institution will accept any 
                        student who applies for admission.
            ``(2) Allotments.--
                    ``(A) In general.--Subject to subparagraph (B), in 
                making grant payments to grantees under this 
                subsection, the allotment to each grantee for a fiscal 
                year shall be equal to the sum of--
                            ``(i) the amount that bears the same 
                        relation to 50 percent of the amount 
                        appropriated under subsection (d) for such 
                        fiscal year as the number of residents in the 
                        State aged 15 through 44 who are living below 
                        the poverty line applicable to the individual's 
                        family size (as determined under section 673(2) 
                        of the Community Service Block Grant Act) bears 
                        to the total number of such residents in all 
                        States; and
                            ``(ii) the amount that bears the same 
                        relation to 50 percent of the amount 
                        appropriated under subsection (d) for such 
                        fiscal year as the number of residents in the 
                        State who are enrolled in open enrollment 
                        institutions bears to the total number of such 
                        residents in all States.
                    ``(B) Minimum allotment.--The allotment for each 
                State under this section for a fiscal year shall not be 
                an amount that is less than 0.5 percent of the total 
                amount appropriated under subsection (d) for such 
                fiscal year.
                    ``(C) Administrative expenses.--A State may not use 
                more than 5 percent if its allotment for administrative 
                expenses.
            ``(3) Application.--A State that desires to receive a grant 
        under this subsection shall submit an application to the 
        Secretary at such time, in such manner, and accompanied by such 
        information as the Secretary may require, including the 
        following:
                    ``(A) A list of the open enrollment institutions in 
                the State and the number of students enrolled in such 
                institutions.
                    ``(B) A description of any data systems and 
                performance accountability systems that the State uses 
                to monitor its institutions of higher education.
                    ``(C) A description of any existing statewide 
                initiatives to improve retention and completion rates 
                at institutions of higher education in the State.
                    ``(D) An assurance that the State will disseminate 
                the findings and best practices from the activities 
                funded under the grant.
                    ``(E) An assurance that the State will--
                            ``(i) review its policies and programs with 
                        respect to access, retention, and completion 
                        based on the outcomes of activities funded 
                        under the grant; and
                            ``(ii) develop or revise policies to 
                        support institutional success improvements.
                    ``(F) A description of how the State will provide 
                or coordinate the provision of the non-Federal share 
                from State resources or private contributions.
                    ``(G) A description of the selection criteria for 
                participating institutions, including how such criteria 
                will ensure--
                            ``(i) to the extent practicable, an 
                        equitable geographic distribution of 
                        participating institutions within the State; 
                        and
                            ``(ii) that resources are targeted to the 
                        institutions that serve high percentages or 
                        numbers of students from groups 
                        underrepresented in higher education or 
                        students with the greatest financial need.
            ``(4) State activities.--A State that receives a grant 
        under this subsection shall carry out the following:
                    ``(A) Grant or contract to nonprofit or public 
                entity.--The State shall award a grant or contract to a 
                nonprofit or public entity that has expertise in 
                improving student outcomes in higher education, data 
                management and analysis in higher education, and 
                providing technical assistance to institutions of 
                higher education for systemic reform to carry out a 
                comprehensive program to improve college retention and 
                completion at selected open enrollment institutions.
                    ``(B) Evaluation grant.--The State shall award a 
                grant or contract for a rigorous, external evaluation 
                of activities funded under the grant awarded under this 
                subsection.
                    ``(C) Report.--The State shall report annually to 
                the Secretary on the implementation of the grant 
                awarded under this subsection, including information on 
                student outcomes at participating campuses.
            ``(5) Additional permissible state activity.--A State that 
        receives a grant under this subsection may collaborate with 
        other States--
                    ``(A) to share data and best practices; and
                    ``(B) to develop common approaches to improving 
                student retention and completion.
            ``(6) Federal share.--
                    ``(A) Federal share; non-federal share.--
                            ``(i) Federal share.--The amount of the 
                        Federal share under this subsection for a 
                        fiscal year shall be equal to \2/3\ of the 
                        costs of the activities described in paragraph 
                        (4) that are carried out under the grant.
                            ``(ii) Non-federal share.--The amount of 
                        the non-Federal share under this subsection 
                        shall be equal to \1/3\ of the costs of the 
                        activities described in paragraph (4). The non-
                        Federal share may be in cash or in-kind, and 
                        may be provided from State resources, 
                        contributions from private organizations, or 
                        both.
                    ``(B) Reduction for failure to pay non-federal 
                share.--If a State fails to provide the full non-
                Federal share required under this subsection, the 
                Secretary shall reduce the amount of the grant payment 
                under this subsection proportionately.
                    ``(C) Waiver.--The Secretary may waive or reduce 
                the amount of the non-Federal share for a State--
                            ``(i) experiencing extreme economic 
                        distress; or
                            ``(ii) recovering from a declared natural 
                        disaster.
            ``(7) Temporary ineligibility for subsequent payments.--The 
        Secretary may determine a grantee to be temporarily ineligible 
        to receive a grant payment under this subsection if--
                    ``(A) the grantee fails to submit an annual report 
                as required under paragraph (4)(C); or
                    ``(B) the Secretary determines, based on 
                information in the annual report, that the grantee is 
                not meeting the conditions of the grant or the goals of 
                the application.
    ``(b) Program To Improve College Retention and Completion.--
            ``(1) In general.--A nonprofit or public entity awarded a 
        grant or contract under subsection (a)(4)(A) shall carry out 
        each of the following:
                    ``(A) Issue a competition for open enrollment 
                institutions to participate in the program described in 
                subsection (c).
                    ``(B) Coordinate activities with the participating 
                open enrollment institutions.
                    ``(C) Manage data, technical assistance, 
                professional development in cooperation with 
                participating open enrollment institutions.
                    ``(D) Provide expertise in the review and 
                interpretation of data.
                    ``(E) Facilitate the development of the improvement 
                strategies.
                    ``(F) Facilitate the development of policies and 
                practices to sustain proven strategies.
                    ``(G) Provide for institutional experimentation 
                with innovative practices in improving student 
                retention and completion.
                    ``(H) Establish and maintain a web portal for 
                sharing findings, best practices, and data among 
                participating open enrollment institutions and to 
                deliver professional development and technical 
                assistance to participating open enrollment 
                institutions.
            ``(2) Distribution of funds.--A nonprofit or public entity 
        awarded a grant or contract under subsection (a)(4)(A)--
                    ``(A) may expend not more than 20 percent of the 
                grant or contract funds on the activities described in 
                paragraph (1); and
                    ``(B) shall--
                            ``(i) expend the funds remaining after 
                        carrying out subparagraph (A) on the activities 
                        described in subsection (c)(2); and
                            ``(ii) ensure that funds made available to 
                        participating campuses are of sufficient size 
                        and scope to carry out the activities described 
                        in subsection (c)(2).
    ``(c) Campus Participation.--
            ``(1) Open enrollment institution participation.--An open 
        enrollment institution that desires to participate in the 
        program described in paragraph (2) shall submit an application 
        to the nonprofit or public entity that shall include the 
        following:
                    ``(A) An assurance to maintain its open admission 
                policies.
                    ``(B) An assurance that the institution's board of 
                trustees is fully supportive of the institution's 
                student success plan.
                    ``(C) A description of the core team of 
                institutional leaders who will lead the campus process 
                for improvement of student retention and completion. 
                Such team, at minimum, shall include the college 
                president, the institutional research or institutional 
                effectiveness officer (if the institution has such a 
                position), the chief academic officer, the chief 
                student services officer, and representatives of the 
                faculty responsible for programs and curricula in key 
                areas such as developmental education, mathematics, and 
                English.
                    ``(D) A description of the data team that will 
                conduct in-depth examinations of data on student 
                outcomes disaggregated by race, ethnicity, gender, 
                socioeconomic status, and disability status. Such team, 
                may include the institutional research director, the 
                senior planning administrator, information technology 
                specialists, faculty, and student services staff.
                    ``(E) A description of any existing institution-
                wide efforts to improve retention and completion.
                    ``(F) A description of the institution's current 
                capacity to--
                            ``(i) use data to devise strategies, 
                        monitor progress, and evaluate outcomes;
                            ``(ii) develop strategies to close any 
                        identified performance gaps among students;
                            ``(iii) involve faculty, students, staff, 
                        and communities in the development and 
                        implementation of the strategies to improve 
                        outcomes;
                            ``(iv) report data and outcomes to the 
                        public and to the campus community; and
                            ``(v) form partnerships with the community, 
                        local businesses, and others.
                    ``(G) Data on student enrollment disaggregated by 
                full-time/part-time status, race, ethnicity, gender, 
                and any available data related to socioeconomic status 
                and disability status.
                    ``(H) Data on student success, including any 
                available data on the performance indicators described 
                in paragraph (3).
            ``(2) Activities.--The program under this paragraph shall 
        include the open enrollment institution working with the 
        nonprofit or public entity to undertake a comprehensive program 
        of institutional improvement to increase retention and 
        completion, which shall include the following:
                    ``(A) Using data to devise strategies, monitor 
                progress, and evaluate outcomes.
                    ``(B) Developing strategies to close identified 
                performance gaps among students.
                    ``(C) Involving faculty, students, staff, and 
                communities in the development and implementation of 
                the strategies to improve outcomes.
                    ``(D) Reporting data and outcomes to the public and 
                to the campus community.
                    ``(E) Forming partnerships with the community, 
                local businesses, and others.
                    ``(F) Institutionalizing effective policies and 
                practices to sustain improvements in retention and 
                completion.
            ``(3) Performance indicators.--In evaluating the outcome of 
        the activities described in paragraph (2), an open enrollment 
        institution participating in such program shall determine 
        whether the program increased the percentage of students who--
                    ``(A) complete developmental courses and move on to 
                credit-bearing courses;
                    ``(B) enroll in and complete `gatekeeper courses' 
                such as introductory mathematics and English;
                    ``(C) satisfactorily complete the courses in which 
                they enroll;
                    ``(D) re-enroll from 1 semester to the next and 
                from year to year;
                    ``(E) earn certificates and degrees; and
                    ``(F) transfer to 4-year or other institutions of 
                higher education.
            ``(4) Collection and reporting of data.--An open enrollment 
        institution participating in the program described in paragraph 
        (2) shall collect and report data disaggregated by full-time/
        part-time, race, ethnicity, gender, socioeconomic status, and 
        disability status.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $500,000,000 for fiscal year 
2010 and each of the 4 succeeding fiscal years.''.

Summary: Building Student Success Act of 2009 - Amends the Higher Education Act of 1965 to direct the Secretary of Education to allot matching grants to states so each can fund: (1) a comprehensive effort by an experienced nonprofit or public entity to assist selected open enrollment institutions (community colleges or institutions of higher education that accept any student who applies for admission) in devising, implementing, monitoring, and evaluating strategies to improve their students' success; and (2) a rigorous, external evaluation of such effort.

Allots grant funds to states on the basis of each state's share of residents who are enrolled in open enrollment institutions and residents aged 15 through 44 who are impoverished.