[105th Congress Public Law 244]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ244.105]
[[Page 112 STAT. 1581]]
Public Law 105-244
105th Congress
An Act
To extend the authorization of programs under the Higher Education Act
of 1965, and for other purposes. <<NOTE: Oct. 7, 1998 - [H.R. 6]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Higher Education
Amendments of 1998. Grants. Inter- governmental relations. Loans.>>
SECTION 1. <<NOTE: 20 USC 1001 note.>> SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Higher
Education Amendments of 1998''.
(b) Table of Contents.--The table of contents is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. General effective date.
TITLE I--GENERAL PROVISIONS
Sec. 101. Revision of title I.
Sec. 102. Conforming amendments.
TITLE II--TEACHER QUALITY
Sec. 201. Teacher quality enhancement grants.
TITLE III--INSTITUTIONAL AID
Sec. 301. Transfers and redesignations.
Sec. 302. Findings.
Sec. 303. Strengthening institutions.
Sec. 304. Strengthening HBCU's.
Sec. 305. Endowment challenge grants.
Sec. 306. HBCU capital financing.
Sec. 307. Minority science and engineering improvement program.
Sec. 308. General provisions.
TITLE IV--STUDENT ASSISTANCE
Part A--Grants to Students
Sec. 401. Federal Pell Grants.
Sec. 402. Federal TRIO programs.
Sec. 403. Gear up program.
Sec. 404. Academic achievement incentive scholarships.
Sec. 405. Repeals.
Sec. 406. Federal supplemental educational opportunity grants.
Sec. 407. Leveraging educational assistance partnership program.
Sec. 408. Special programs for students whose families are engaged in
migrant and seasonal farmwork.
Sec. 409. Robert C. Byrd Honors Scholarship Program.
Sec. 410. Child care access means parents in school.
Sec. 410A. Learning anytime anywhere partnerships.
Part B--Federal Family Education Loan Program
Sec. 411. Limitation repealed.
Sec. 412. Advances to reserve funds.
Sec. 413. Guaranty agency reforms.
Sec. 414. Scope and duration of Federal loan insurance program.
[[Page 112 STAT. 1582]]
Sec. 415. Limitations on individual federally insured loans and Federal
loan insurance.
Sec. 416. Applicable interest rates.
Sec. 417. Federal payments to reduce student interest costs.
Sec. 418. Voluntary flexible agreements with guaranty agencies.
Sec. 419. Federal PLUS loans.
Sec. 420. Federal consolidation loans.
Sec. 421. Default reduction program.
Sec. 422. Requirements for disbursements of student loans.
Sec. 423. Unsubsidized loans.
Sec. 424. Loan forgiveness for teachers.
Sec. 425. Loan forgiveness for child care providers.
Sec. 426. Notice to Secretary and payment of loss.
Sec. 427. Legal powers and responsibilities.
Sec. 428. Student loan information by eligible lenders.
Sec. 429. Definitions.
Sec. 430. Delegation of functions.
Sec. 431. Discharge.
Sec. 432. Debt management options.
Sec. 433. Special allowances.
Sec. 434. Federal family education loan insurance fund.
Part C--Federal Work-study Programs
Sec. 441. Authorization of appropriations; community services.
Sec. 442. Allocation of funds.
Sec. 443. Grants for Federal work-study programs.
Sec. 444. Flexible use of funds.
Sec. 445. Work colleges.
Part D--William D. Ford Federal Direct Loan Program
Sec. 451. Selection of institutions.
Sec. 452. Terms and conditions.
Sec. 453. Contracts.
Sec. 454. Funds for administrative expenses.
Sec. 455. Authority to sell loans.
Sec. 456. Loan cancellation for teachers.
Part E--Federal Perkins Loans
Sec. 461. Authorization of appropriations.
Sec. 462. Allocation of funds.
Sec. 463. Agreements with institutions of higher education.
Sec. 464. Terms of loans.
Sec. 465. Cancellation for public service.
Sec. 466. Distribution of assets from student loan funds.
Sec. 467. Perkins Loan Revolving Fund.
Part F--Need Analysis
Sec. 471. Cost of attendance.
Sec. 472. Data elements.
Sec. 473. Family contribution for dependent students.
Sec. 474. Family contribution for independent students without
dependents other than a spouse.
Sec. 475. Family contribution for independent students with dependents
other than a spouse.
Sec. 476. Regulations; updated tables and amounts.
Sec. 477. Simplified needs test; zero expected family contribution.
Sec. 478. Discretion of student financial aid administrators.
Sec. 479. Treatment of other financial assistance.
Sec. 480. Clerical amendments.
Sec. 480A. Effective dates.
Part G--General Provisions
Sec. 481. Master calendar.
Sec. 482. Forms and regulations.
Sec. 483. Student eligibility.
Sec. 484. State court judgments.
Sec. 485. Institutional refunds.
Sec. 486. Institutional and financial assistance information for
students.
Sec. 487. National student loan data system.
Sec. 488. Distance education demonstration programs.
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Sec. 489. Program participation agreements.
Sec. 490. Regulatory relief and improvement.
Sec. 490A. Garnishment requirements.
Sec. 490B. Administrative subpoena authority.
Sec. 490C. Advisory Committee on Student Financial Assistance.
Sec. 490D. Meetings and negotiated rulemaking.
Sec. 490E. Year 2000 requirements at the Department of Education.
Sec. 490F. Procedures for cancellations and deferments for eligible
disabled veterans.
Part H--Program Integrity
Sec. 491. State role and responsibilities.
Sec. 492. Accrediting agency recognition.
Sec. 493. Eligibility and certification procedures.
Sec. 494. Program review and data.
Sec. 495. Review of regulations.
TITLE V--DEVELOPING INSTITUTIONS
Sec. 501. Establishment of new title V.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
Sec. 601. International and foreign language studies.
Sec. 602. Business and international education programs.
Sec. 603. Institute for International Public Policy.
Sec. 604. General provisions.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
Sec. 701. Revision of title VII.
Sec. 702. Repeals.
TITLE VIII--STUDIES, REPORTS, AND RELATED PROGRAMS
Part A--Studies
Sec. 801. Study of market mechanisms in Federal student loan programs.
Sec. 802. Study of the feasibility of alternative financial instruments
for determining lender yields.
Sec. 803. Student-related debt study required.
Sec. 804. Study of transfer of credits.
Sec. 805. Study of opportunities for participation in athletics
programs.
Sec. 806. Study of the effectiveness of cohort default rates for
institutions with few student loan borrowers.
Part B--Advanced Placement Incentive Program
Sec. 810. Advanced placement incentive program.
Part C--Community Scholarship Mobilization
Sec. 811. Short title.
Sec. 812. Findings.
Sec. 813. Definitions.
Sec. 814. Purpose; endowment grant authority.
Sec. 815. Grant agreement and requirements.
Sec. 816. Authorization of appropriations.
Part D--Grants to States for Workplace and Community Transition Training
for Incarcerated Youth Offenders
Sec. 821. Grants to States for workplace and community transition
training for incarcerated youth offenders.
Part E--Grants to Combat Violent Crimes Against Women on Campuses
Sec. 826. Grants to combat violent crimes against women on campuses.
Sec. 827. Study of institutional procedures to report sexual assaults.
Part F--Improving United States Understanding of Science, Engineering,
and Technology in East Asia
Sec. 831. Improving United States understanding of science, engineering,
and technology in East Asia.
Part G--Olympic Scholarships
Sec. 836. Extension of authorization.
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Part H--Underground Railroad
Sec. 841. Underground Railroad educational and cultural program.
Part I--Summer Travel and Work Programs
Sec. 846. Authority to administer summer travel and work programs.
Part J--Web-based Education Commission
Sec. 851. Short title; definitions.
Sec. 852. Establishment of Web-Based Education Commission.
Sec. 853. Duties of the Commission.
Sec. 854. Powers of the Commission.
Sec. 855. Commission personnel matters.
Sec. 856. Termination of the Commission.
Sec. 857. Authorization of appropriations.
Part K--Miscellaneous
Sec. 861. Education-welfare study.
Sec. 862. Release of conditions, covenants, and reversionary interests,
Guam Community College conveyance, Barrigada, Guam.
Sec. 863. Sense of Congress regarding good character.
Sec. 864. Educational merchandise licensing codes of conduct.
TITLE IX--AMENDMENTS TO OTHER LAWS
Part A--Extension and Revision of Indian Higher Education Programs
Sec. 901. Tribally controlled colleges and universities.
Sec. 902. Reauthorization of Navajo Community College Act.
Part B--Education of the Deaf
Sec. 911. Short title.
Sec. 912. Elementary and secondary education programs.
Sec. 913. Agreement with Gallaudet University.
Sec. 914. Agreement for the National Technical Institute for the Deaf.
Sec. 915. Definitions.
Sec. 916. Gifts.
Sec. 917. Reports.
Sec. 918. Monitoring, evaluation, and reporting.
Sec. 919. Federal endowment programs.
Sec. 920. Scholarship program.
Sec. 921. Oversight and effect of agreements.
Sec. 922. International students.
Sec. 923. Research priorities.
Sec. 924. National Study on the Education of the Deaf.
Sec. 925. Authorization of appropriations.
Part C--United States Institute of Peace
Sec. 931. Authorities of the United States Institute of Peace.
Part D--Voluntary Retirement Incentive Plans
Sec. 941. Voluntary retirement incentive plans.
Part E--General Education Provisions Act Amendment
Sec. 951. Amendment to Family Educational Rights and Privacy Act of
1974.
Sec. 952. Alcohol or drug possession disclosure.
Part F--Liaison for Proprietary Institutions of Higher Education
Sec. 961. Liaison for proprietary institutions of higher education.
Part G--Amendments to Other Statutes
Sec. 971. Nondischareability of certain claims for educational benefits
provided to obtain higher education.
Sec. 972. GNMA guarantee fee.
Part H--Repeals
Sec. 981. Repeals.
Sec. 982. Repeals of previous higher education amendments provisions.
SEC. 2. REFERENCES.
Except as otherwise expressly provided, whenever in this Act an
amendment or repeal is expressed in terms of an amendment
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to, or repeal of, a section or other provision, the reference shall be
considered to be made to a section or other provision of the Higher
Education Act of 1965 (20 U.S.C. 1001 et seq.).
SEC. 3. GENERAL EFFECTIVE DATE. <<NOTE: 20 USC 1001 note.>>
Except as otherwise provided in this Act or the amendments made by
this Act, the amendments made by this Act shall take effect on October
1, 1998.
TITLE I--GENERAL PROVISIONS
SEC. 101. REVISION OF TITLE I.
(a) General Provisions.--Title I (20 U.S.C. 1001 et seq.) is amended
to read as follows:
``TITLE I--GENERAL PROVISIONS
``PART A--DEFINITIONS
``SEC. 101. <<NOTE: 20 USC 1001.>> GENERAL DEFINITION OF INSTITUTION OF
HIGHER EDUCATION.
``(a) Institution of Higher Education.--For purposes of this Act,
other than title IV, the term `institution of higher education' means an
educational institution in any State that--
``(1) admits as regular students only persons having a
certificate of graduation from a school providing secondary
education, or the recognized equivalent of such a certificate;
``(2) is legally authorized within such State to provide a
program of education beyond secondary education;
``(3) provides an educational program for which the
institution awards a bachelor's degree or provides not less than
a 2-year program that is acceptable for full credit toward such
a degree;
``(4) is a public or other nonprofit institution; and
``(5) is accredited by a nationally recognized accrediting
agency or association, or if not so accredited, is an
institution that has been granted preaccreditation status by
such an agency or association that has been recognized by the
Secretary for the granting of preaccreditation status, and the
Secretary has determined that there is satisfactory assurance
that the institution will meet the accreditation standards of
such an agency or association within a reasonable time.
``(b) Additional Institutions Included.--For purposes of this Act,
other than title IV, the term `institution of higher education' also
includes--
``(1) any school that provides not less than a 1-year
program of training to prepare students for gainful employment
in a recognized occupation and that meets the provision of
paragraphs (1), (2), (4), and (5) of subsection (a); and
``(2) a public or nonprofit private educational institution
in any State that, in lieu of the requirement in subsection
(a)(1), admits as regular students persons who are beyond the
age of compulsory school attendance in the State in which the
institution is located.
``(c) <<NOTE: Publication.>> List of Accrediting Agencies.--For
purposes of this section and section 102, the Secretary shall publish a
list of nationally
[[Page 112 STAT. 1586]]
recognized accrediting agencies or associations that the Secretary
determines, pursuant to subpart 2 of part H of title IV, to be reliable
authority as to the quality of the education or training offered.
``SEC. 102. <<NOTE: 20 USC 1002.>> DEFINITION OF INSTITUTION OF HIGHER
EDUCATION FOR PURPOSES OF TITLE IV PROGRAMS.
``(a) Definition of Institution of Higher Education for Purposes of
Title IV Programs.--
``(1) Inclusion of additional institutions.--Subject to
paragraphs (2) through (4) of this subsection, the term
`institution of higher education' for purposes of title IV
includes, in addition to the institutions covered by the
definition in section 101--
``(A) a proprietary institution of higher education
(as defined in subsection (b) of this section);
``(B) a postsecondary vocational institution (as
defined in subsection (c) of this section); and
``(C) only for the purposes of part B of title IV,
an institution outside the United States that is
comparable to an institution of higher education as
defined in section 101 and that has been approved by the
Secretary for the purpose of part B of title IV.
``(2) Institutions outside the united states.--
``(A) <<NOTE: Regulations.>> In general.--For the
purpose of qualifying as an institution under paragraph
(1)(C), the Secretary shall establish criteria by
regulation for the approval of institutions outside the
United States and for the determination that such
institutions are comparable to an institution of higher
education as defined in section 101. In the case of a
graduate medical or veterinary school outside the United
States, such criteria shall include a requirement that a
student attending such school outside the United States
is ineligible for loans made, insured, or guaranteed
under part B unless--
``(i)(I) at least 60 percent of those enrolled
in, and at least 60 percent of the graduates of,
the graduate medical school outside the United
States were not persons described in section
484(a)(5) in the year preceding the year for which
a student is seeking a loan under part B of title
IV; and
``(II) at least 60 percent of the individuals
who were students or graduates of the graduate
medical school outside the United States (both
nationals of the United States and others) taking
the examinations administered by the Educational
Commission for Foreign Medical Graduates received
a passing score in the year preceding the year for
which a student is seeking a loan under part B of
title IV; or
``(ii) the institution has a clinical training
program that was approved by a State as of January
1, 1992, or the institution's students complete
their clinical training at an approved veterinary
school located in the United States.
``(B) <<NOTE: Establishment.>> Advisory panel.--
[[Page 112 STAT. 1587]]
``(i) In general.--For the purpose of
qualifying as an institution under paragraph
(1)(C) of this subsection, the Secretary shall
establish an advisory panel of medical experts
that shall--
``(I) evaluate the standards of
accreditation applied to applicant
foreign medical schools; and
``(II) determine the comparability
of those standards to standards for
accreditation applied to United States
medical schools.
``(ii) Special rule.--If the accreditation
standards described in clause (i) are determined
not to be comparable, the foreign medical school
shall be required to meet the requirements of
section 101.
``(C) Failure to release information.--The failure
of an institution outside the United States to provide,
release, or authorize release to the Secretary of such
information as may be required by subparagraph (A) shall
render such institution ineligible for the purpose of
part B of title IV.
``(D) Special rule.--If, pursuant to this paragraph,
an institution loses eligibility to participate in the
programs under title IV, then a student enrolled at such
institution may, notwithstanding such loss of
eligibility, continue to be eligible to receive a loan
under part B while attending such institution for the
academic year succeeding the academic year in which such
loss of eligibility occurred.
``(3) Limitations based on course of study or enrollment.--
An institution shall not be considered to meet the definition of
an institution of higher education in paragraph (1) if such
institution--
``(A) offers more than 50 percent of such
institution's courses by correspondence, unless the
institution is an institution that meets the definition
in section 521(4)(C) of the Carl D. Perkins Vocational
and Applied Technology Education Act;
``(B) enrolls 50 percent or more of the
institution's students in correspondence courses, unless
the institution is an institution that meets the
definition in such section, except that the Secretary,
at the request of such institution, may waive the
applicability of this subparagraph to such institution
for good cause, as determined by the Secretary in the
case of an institution of higher education that provides
a 2- or 4-year program of instruction (or both) for
which the institution awards an associate or
baccalaureate degree, respectively;
``(C) has a student enrollment in which more than 25
percent of the students are incarcerated, except that
the Secretary may waive the limitation contained in this
subparagraph for a nonprofit institution that provides a
2- or 4-year program of instruction (or both) for which
the institution awards a bachelor's degree, or an
associate's degree or a postsecondary diploma,
respectively; or
``(D) has a student enrollment in which more than 50
percent of the students do not have a secondary school
diploma or its recognized equivalent, and does not
provide a 2- or 4-year program of instruction (or both)
for which the institution awards a bachelor's degree or
an associate's
[[Page 112 STAT. 1588]]
degree, respectively, except that the Secretary may
waive the limitation contained in this subparagraph if a
nonprofit institution demonstrates to the satisfaction
of the Secretary that the institution exceeds such
limitation because the institution serves, through
contracts with Federal, State, or local government
agencies, significant numbers of students who do not
have a secondary school diploma or its recognized
equivalent.
``(4) Limitations based on management.--An institution shall
not be considered to meet the definition of an institution of
higher education in paragraph (1) if--
``(A) the institution, or an affiliate of the
institution that has the power, by contract or ownership
interest, to direct or cause the direction of the
management or policies of the institution, has filed for
bankruptcy, except that this paragraph shall not apply
to a nonprofit institution, the primary function of
which is to provide health care educational services (or
an affiliate of such an institution that has the power,
by contract or ownership interest, to direct or cause
the direction of the institution's management or
policies) that files for bankruptcy under chapter 11 of
title 11, United States Code, between July 1, 1998, and
December 1, 1998; or
``(B) the institution, the institution's owner, or
the institution's chief executive officer has been
convicted of, or has pled nolo contendere or guilty to,
a crime involving the acquisition, use, or expenditure
of funds under title IV, or has been judicially
determined to have committed fraud involving funds under
title IV.
``(5) Certification.--The Secretary shall certify an
institution's qualification as an institution of higher
education in accordance with the requirements of subpart 3 of
part H of title IV.
``(6) Loss of eligibility.--An institution of higher
education shall not be considered to meet the definition of an
institution of higher education in paragraph (1) if such
institution is removed from eligibility for funds under title IV
as a result of an action pursuant to part H of title IV.
``(b) Proprietary Institution of Higher Education.--
``(1) Principal criteria.--For the purpose of this section,
the term `proprietary institution of higher education' means a
school that--
``(A) provides an eligible program of training to
prepare students for gainful employment in a recognized
occupation;
``(B) meets the requirements of paragraphs (1) and
(2) of section 101(a);
``(C) does not meet the requirement of paragraph (4)
of section 101(a);
``(D) is accredited by a nationally recognized
accrediting agency or association recognized by the
Secretary pursuant to part H of title IV;
``(E) has been in existence for at least 2 years;
and
``(F) <<NOTE: Regulations.>> has at least 10 percent
of the school's revenues from sources that are not
derived from funds provided under title IV, as
determined in accordance with regulations prescribed by
the Secretary.
[[Page 112 STAT. 1589]]
``(2) Additional institutions.--The term `proprietary
institution of higher education' also includes a proprietary
educational institution in any State that, in lieu of the
requirement in paragraph (1) of section 101(a), admits as
regular students persons who are beyond the age of compulsory
school attendance in the State in which the institution is
located.
``(c) Postsecondary Vocational Institution.--
``(1) Principal criteria.--For the purpose of this section,
the term `postsecondary vocational institution' means a school
that--
``(A) provides an eligible program of training to
prepare students for gainful employment in a recognized
occupation;
``(B) meets the requirements of paragraphs (1), (2),
(4), and (5) of section 101(a); and
``(C) has been in existence for at least 2 years.
``(2) Additional institutions.--The term `postsecondary
vocational institution' also includes an educational institution
in any State that, in lieu of the requirement in paragraph (1)
of section 101(a), admits as regular students persons who are
beyond the age of compulsory school attendance in the State in
which the institution is located.
``SEC. 103. ADDITIONAL DEFINITIONS. <<NOTE: 20 USC 1003.>>
``In this Act:
``(1) Combination of institutions of higher education.--The
term `combination of institutions of higher education' means a
group of institutions of higher education that have entered into
a cooperative arrangement for the purpose of carrying out a
common objective, or a public or private nonprofit agency,
organization, or institution designated or created by a group of
institutions of higher education for the purpose of carrying out
a common objective on the group's behalf.
``(2) Department.--The term `Department' means the
Department of Education.
``(3) Disability.--The term `disability' has the same
meaning given that term under section 3(2) of the Americans With
Disabilities Act of 1990.
``(4) Elementary school.--The term `elementary school' has
the same meaning given that term under section 14101 of the
Elementary and Secondary Education Act of 1965.
``(5) Gifted and talented.--The term `gifted and talented'
has the same meaning given that term under section 14101 of the
Elementary and Secondary Education Act of 1965.
``(6) Local educational agency.--The term `local educational
agency' has the same meaning given that term under section 14101
of the Elementary and Secondary Education Act of 1965.
``(7) New borrower.--The term `new borrower' when used with
respect to any date means an individual who on that date has no
outstanding balance of principal or interest owing on any loan
made, insured, or guaranteed under title IV.
``(8) Nonprofit.--The term `nonprofit' as applied to a
school, agency, organization, or institution means a school,
agency, organization, or institution owned and operated by one
or more nonprofit corporations or associations, no part
[[Page 112 STAT. 1590]]
of the net earnings of which inures, or may lawfully inure, to
the benefit of any private shareholder or individual.
``(9) School or department of divinity.--The term `school or
department of divinity' means an institution, or a department or
a branch of an institution, the program of instruction of which
is designed for the education of students--
``(A) to prepare the students to become ministers of
religion or to enter upon some other religious vocation
(or to provide continuing training for any such
vocation); or
``(B) to prepare the students to teach theological
subjects.
``(10) Secondary school.--The term `secondary school' has
the same meaning given that term under section 14101 of the
Elementary and Secondary Education Act of 1965.
``(11) Secretary.--The term `Secretary' means the Secretary
of Education.
``(12) Service-learning.--The term `service-learning' has
the same meaning given that term under section 101(23) of the
National and Community Service Act of 1990.
``(13) Special education teacher.--The term `special
education teacher' means teachers who teach children with
disabilities as defined in section 602 of the Individuals with
Disabilities Education Act.
``(14) State educational agency.--The term `State
educational agency' has the same meaning given that term under
section 14101 of the Elementary and Secondary Education Act of
1965.
``(15) State higher education agency.--The term `State
higher education agency' means the officer or agency primarily
responsible for the State supervision of higher education.
``(16) State; freely associated states.--
``(A) State.--The term `State' includes, in addition
to the several States of the United States, the
Commonwealth of Puerto Rico, the District of Columbia,
Guam, American Samoa, the United States Virgin Islands,
the Commonwealth of the Northern Mariana Islands, and
the Freely Associated States.
``(B) Freely associated states.--The term `Freely
Associated States' means the Republic of the Marshall
Islands, the Federated States of Micronesia, and the
Republic of Palau.
``PART B--ADDITIONAL GENERAL PROVISIONS
``SEC. 111. ANTIDISCRIMINATION. <<NOTE: 20 USC 1011.>>
``(a) In General.--Institutions of higher education receiving
Federal financial assistance may not use such financial assistance,
directly or indirectly, to undertake any study or project or fulfill the
terms of any contract containing an express or implied provision that
any person or persons of a particular race, religion, sex, or national
origin be barred from performing such study, project, or contract,
except that nothing in this subsection shall be construed to prohibit an
institution from conducting objective studies or projects concerning the
nature, effects, or prevention of discrimination, or to have the
institution's curriculum restricted on the subject of discrimination.
[[Page 112 STAT. 1591]]
``(b) Limitations on Statutory Construction.--Nothing in this Act
shall be construed to limit the rights or responsibilities of any
individual under the Americans With Disabilities Act of 1990, the
Rehabilitation Act of 1973, or any other law.
``SEC. 112. <<NOTE: 20 USC 1011a.>> PROTECTION OF STUDENT SPEECH AND
ASSOCIATION RIGHTS.
``(a) Protection of Rights.--It is the sense of Congress that no
student attending an institution of higher education on a full- or part-
time basis should, on the basis of participation in protected speech or
protected association, be excluded from participation in, be denied the
benefits of, or be subjected to discrimination or official sanction
under any education program, activity, or division of the institution
directly or indirectly receiving financial assistance under this Act,
whether or not such program, activity, or division is sponsored or
officially sanctioned by the institution.
``(b) Construction.--Nothing in this section shall be construed--
``(1) to discourage the imposition of an official sanction
on a student that has willfully participated in the disruption
or attempted disruption of a lecture, class, speech,
presentation, or performance made or scheduled to be made under
the auspices of the institution of higher education; or
``(2) to prevent an institution of higher education from
taking appropriate and effective action to prevent violations of
State liquor laws, to discourage binge drinking and other
alcohol abuse, to protect students from sexual harassment
including assault and date rape, to prevent hazing, or to
regulate unsanitary or unsafe conditions in any student
residence.
``(c) Definitions.--For the purposes of this section:
``(1) Official sanction.--The term `official sanction'--
``(A) means expulsion, suspension, probation,
censure, condemnation, reprimand, or any other
disciplinary, coercive, or adverse action taken by an
institution of higher education or administrative unit
of the institution; and
``(B) includes an oral or written warning made by an
official of an institution of higher education acting in
the official capacity of the official.
``(2) Protected association.--The term `protected
association' means the joining, assembling, and residing with
others that is protected under the first and 14th amendments to
the Constitution, or would be protected if the institution of
higher education involved were subject to those amendments.
``(3) Protected speech.--The term `protected speech' means
speech that is protected under the first and 14th amendments to
the Constitution, or would be protected if the institution of
higher education involved were subject to those amendments.
``SEC. 113. <<NOTE: 20 USC 1011b.>> TREATMENT OF TERRITORIES AND
TERRITORIAL STUDENT ASSISTANCE.
``(a) Waiver Authority.--The Secretary is required to waive the
eligibility criteria of any postsecondary education program administered
by the Department where such criteria do not take into account the
unique circumstances in Guam, the United States Virgin Islands, American
Samoa, the Commonwealth of the Northern Mariana Islands, and the Freely
Associated States.
[[Page 112 STAT. 1592]]
``(b) Eligibility.--Notwithstanding any other provision of law, an
institution of higher education that is located in any of the Freely
Associated States, rather than in another State, shall be eligible, if
otherwise qualified, for assistance under chapter 1 of subpart 2 of part
A of title IV. <<NOTE: Termination date.>> This subsection shall cease
to be effective on September 30, 2004.
``SEC. 114. <<NOTE: 20 USC 1011c.>> NATIONAL ADVISORY COMMITTEE ON
INSTITUTIONAL QUALITY AND INTEGRITY.
``(a) Establishment.--There is established in the Department a
National Advisory Committee on Institutional Quality and Integrity
(hereafter in this section referred to as the `Committee'), which shall
be composed of 15 members appointed by the Secretary from among
individuals who are representatives of, or knowledgeable concerning,
education and training beyond secondary education, including
representatives of all sectors and types of institutions of higher
education (as defined in section 102), to assess the process of
eligibility and certification of such institutions under title IV and
the provision of financial aid under title IV.
``(b) Terms of Members.--Terms of office of each member of the
Committee shall be 3 years, except that any member appointed to fill a
vacancy occurring prior to the expiration of the term for which the
member's predecessor was appointed shall be appointed for the remainder
of such term.
``(c) Public Notice.--The Secretary shall--
``(1) <<NOTE: Federal Register,
publication. Records.>> annually publish in the Federal Register
a list containing the name of each member of the Committee and
the date of the expiration of the term of office of the member;
and
``(2) publicly solicit nominations for each vacant position
or expiring term of office on the Committee.
``(d) Functions.--The Committee shall--
``(1) advise the Secretary with respect to establishment and
enforcement of the standards of accrediting agencies or
associations under subpart 2 of part H of title IV;
``(2) advise the Secretary with respect to the recognition
of a specific accrediting agency or association;
``(3) advise the Secretary with respect to the preparation
and publication of the list of nationally recognized accrediting
agencies and associations;
``(4) develop and recommend to the Secretary standards and
criteria for specific categories of vocational training
institutions and institutions of higher education for which
there are no recognized accrediting agencies, associations, or
State agencies, in order to establish the eligibility of such
institutions on an interim basis for participation in federally
funded programs;
``(5) advise the Secretary with respect to the eligibility
and certification process for institutions of higher education
under title IV, together with recommendations for improvements
in such process;
``(6) advise the Secretary with respect to the relationship
between--
``(A) accreditation of institutions of higher
education and the certification and eligibility of such
institutions; and
``(B) State licensing responsibilities with respect
to such institutions; and
[[Page 112 STAT. 1593]]
``(7) carry out such other advisory functions relating to
accreditation and institutional eligibility as the Secretary may
prescribe.
``(e) Meeting Procedures.--The Committee shall meet not less than
twice each year at the call of the Chairperson. The date of, and agenda
for, each meeting of the Committee shall be submitted in advance to the
Secretary for approval. A representative of the Secretary shall be
present at all meetings of the Committee.
``(f ) <<NOTE: Deadline. Records.>> Report.--Not later than November
30 of each year, the Committee shall make an annual report through the
Secretary to Congress. The annual report shall contain--
``(1) a list of the members of the Committee and their
addresses;
``(2) a list of the functions of the Committee;
``(3) a list of dates and places of each meeting during the
preceding fiscal year; and
``(4) a summary of the activities, findings and
recommendations made by the Committee during the preceding
fiscal year.
``(g) Termination.--The Committee shall cease to exist on September
30, 2004.
``SEC. 115. STUDENT REPRESENTATION. <<NOTE: 20 USC 1011d.>>
``The Secretary shall, in appointing individuals to any commission,
committee, board, panel, or other body in connection with the
administration of this Act, include individuals who are, at the time of
appointment, attending an institution of higher education.
``SEC. 116. FINANCIAL RESPONSIBILITY OF FOREIGN STUDENTS. <<NOTE: 20 USC
1011e.>>
``Nothing in this Act or any other Federal law shall be construed to
prohibit any institution of higher education from requiring a student
who is a foreign national (and not admitted to permanent residence in
the United States) to guarantee the future payment of tuition and fees
to such institution by--
``(1) making advance payment of such tuition and fees;
``(2) making deposits in an escrow account administered by
such institution for such payments; or
``(3) obtaining a bond or other insurance that such payments
will be made.
``SEC. 117. DISCLOSURES OF FOREIGN GIFTS. <<NOTE: 20 USC 1011f.>>
``(a) <<NOTE: Deadline.>> Disclosure Report.--Whenever any
institution is owned or controlled by a foreign source or receives a
gift from or enters into a contract with a foreign source, the value of
which is $250,000 or more, considered alone or in combination with all
other gifts from or contracts with that foreign source within a calendar
year, the institution shall file a disclosure report with the Secretary
on January 31 or July 31, whichever is sooner.
``(b) Contents of Report.--Each report to the Secretary required by
this section shall contain the following:
``(1) For gifts received from or contracts entered into with
a foreign source other than a foreign government, the aggregate
dollar amount of such gifts and contracts attributable to a
particular country. The country to which a gift is attributable
is the country of citizenship, or if unknown, the principal
residence for a foreign source who is a natural person, and the
[[Page 112 STAT. 1594]]
country of incorporation, or if unknown, the principal place of
business, for a foreign source which is a legal entity.
``(2) For gifts received from or contracts entered into with
a foreign government, the aggregate amount of such gifts and
contracts received from each foreign government.
``(3) In the case of an institution which is owned or
controlled by a foreign source, the identity of the foreign
source, the date on which the foreign source assumed ownership
or control, and any changes in program or structure resulting
from the change in ownership or control.
``(c) Additional Disclosures for Restricted and Conditional Gifts.--
Notwithstanding the provisions of subsection (b), whenever any
institution receives a restricted or conditional gift or contract from a
foreign source, the institution shall disclose the following:
``(1) For such gifts received from or contracts entered into
with a foreign source other than a foreign government, the
amount, the date, and a description of such conditions or
restrictions. The report shall also disclose the country of
citizenship, or if unknown, the principal residence for a
foreign source which is a natural person, and the country of
incorporation, or if unknown, the principal place of business
for a foreign source which is a legal entity.
``(2) For gifts received from or contracts entered into with
a foreign government, the amount, the date, a description of
such conditions or restrictions, and the name of the foreign
government.
``(d) Relation to Other Reporting Requirements.--
``(1) State requirements.--If an institution described under
subsection (a) is within a State which has enacted requirements
for public disclosure of gifts from or contracts with a foreign
source that are substantially similar to the requirements of
this section, a copy of the disclosure report filed with the
State may be filed with the Secretary in lieu of a report
required under subsection (a). The State in which the
institution is located shall provide to the Secretary such
assurances as the Secretary may require to establish that the
institution has met the requirements for public disclosure under
State law if the State report is filed.
``(2) Use of other federal reports.--If an institution
receives a gift from, or enters into a contract with, a foreign
source, where any other department, agency, or bureau of the
executive branch requires a report containing requirements
substantially similar to those required under this section, a
copy of the report may be filed with the Secretary in lieu of a
report required under subsection (a).
``(e) Public Inspection.--All disclosure reports required by this
section shall be public records open to inspection and copying during
business hours.
``(f ) Enforcement.--
``(1) Court orders.--Whenever it appears that an institution
has failed to comply with the requirements of this section,
including any rule or regulation promulgated under this section,
a civil action may be brought by the Attorney General, at the
request of the Secretary, in an appropriate district court of
the United States, or the appropriate United States court of any
territory or other place subject to the jurisdiction of
[[Page 112 STAT. 1595]]
the United States, to request such court to compel compliance
with the requirements of this section.
``(2) Costs.--For knowing or willful failure to comply with
the requirements of this section, including any rule or
regulation promulgated thereunder, an institution shall pay to
the Treasury of the United States the full costs to the United
States of obtaining compliance, including all associated costs
of investigation and enforcement.
``(g) Regulations.--The Secretary may promulgate regulations to
carry out this section.
``(h) Definitions.--For the purpose of this section--
``(1) the term `contract' means any agreement for the
acquisition by purchase, lease, or barter of property or
services by the foreign source, for the direct benefit or use of
either of the parties;
``(2) the term `foreign source' means--
``(A) a foreign government, including an agency of a
foreign government;
``(B) a legal entity, governmental or otherwise,
created solely under the laws of a foreign state or
states;
``(C) an individual who is not a citizen or a
national of the United States or a trust territory or
protectorate thereof; and
``(D) an agent, including a subsidiary or affiliate
of a foreign legal entity, acting on behalf of a foreign
source;
``(3) the term `gift' means any gift of money or property;
``(4) the term `institution' means any institution, public
or private, or, if a multicampus institution, any single campus
of such institution, in any State, that--
``(A) is legally authorized within such State to
provide a program of education beyond secondary school;
``(B) provides a program for which the institution
awards a bachelor's degree (or provides not less than a
2-year program which is acceptable for full credit
toward such a degree) or more advanced degrees; and
``(C) is accredited by a nationally recognized
accrediting agency or association and to which
institution Federal financial assistance is extended
(directly or indirectly through another entity or
person), or which institution receives support from the
extension of Federal financial assistance to any of the
institution's subunits; and
``(5) the term `restricted or conditional gift or contract'
means any endowment, gift, grant, contract, award, present, or
property of any kind which includes provisions regarding--
``(A) the employment, assignment, or termination of
faculty;
``(B) the establishment of departments, centers,
research or lecture programs, or new faculty positions;
``(C) the selection or admission of students; or
``(D) the award of grants, loans, scholarships,
fellowships, or other forms of financial aid restricted
to students of a specified country, religion, sex,
ethnic origin, or political opinion.
``SEC. 118. APPLICATION OF PEER REVIEW PROCESS. <<NOTE: 20 USC 1011g.>>
``All applications submitted under the provisions of this Act which
require peer review shall be read by a panel of readers
[[Page 112 STAT. 1596]]
composed of individuals selected by the Secretary, which shall include
outside readers who are not employees of the Federal Government. The
Secretary shall ensure that no individual assigned under this section to
review any application has any conflict of interest with regard to that
application which might impair the impartiality with which that
individual conducts the review under this section.
``SEC. 119. BINGE DRINKING ON COLLEGE CAMPUSES. <<NOTE: Collegiate
Initiative To Reduce Binge Drinking and Illegal Alcohol
Consumption. 20 USC 1011h.>>
``(a) Short Title.--This section may be cited as the `Collegiate
Initiative To Reduce Binge Drinking and Illegal Alcohol Consumption'.
``(b) Sense of Congress.--It is the sense of Congress that, in an
effort to change the culture of alcohol consumption on college campuses,
all institutions of higher education should carry out the following:
``(1) The president of the institution should appoint a task
force consisting of school administrators, faculty, students,
Greek system representatives, and others to conduct a full
examination of student and academic life at the institution. The
task force should make recommendations for a broad range of
policy and program changes that would serve to reduce alcohol
and other drug-related problems. The institution should provide
resources to assist the task force in promoting the campus
policies and proposed environmental changes that have been
identified.
``(2) The institution should provide maximum opportunities
for students to live in an alcohol-free environment and to
engage in stimulating, alcohol-free recreational and leisure
activities.
``(3) The institution should enforce a `zero tolerance'
policy on the illegal consumption of alcohol by students at the
institution.
``(4) The institution should vigorously enforce the
institution's code of disciplinary sanctions for those who
violate campus alcohol policies. Students with alcohol or other
drug-related problems should be referred for assistance,
including on-campus counseling programs if appropriate.
``(5) The institution should adopt a policy to discourage
alcoholic beverage-related sponsorship of on-campus activities.
It should adopt policies limiting the advertisement and
promotion of alcoholic beverages on campus.
``(6) The institution should work with the local community,
including local businesses, in a `Town/Gown' alliance to
encourage responsible policies toward alcohol consumption and to
address illegal alcohol use by students.
``SEC. 120. DRUG AND ALCOHOL ABUSE PREVENTION. <<NOTE: 20 USC 1011i.>>
``(a) <<NOTE: Certification.>> Restriction on Eligibility.--
Notwithstanding any other provision of law, no institution of higher
education shall be eligible to receive funds or any other form of
financial assistance under any Federal program, including participation
in any federally funded or guaranteed student loan program, unless the
institution certifies to the Secretary that the institution has adopted
and has implemented a program to prevent the use of illicit drugs and
the abuse of alcohol by students and employees that, at a minimum,
includes--
``(1) the annual distribution to each student and employee
of--
[[Page 112 STAT. 1597]]
``(A) standards of conduct that clearly prohibit, at
a minimum, the unlawful possession, use, or distribution
of illicit drugs and alcohol by students and employees
on the institution's property or as part of any of the
institution's activities;
``(B) a description of the applicable legal
sanctions under local, State, or Federal law for the
unlawful possession or distribution of illicit drugs and
alcohol;
``(C) a description of the health-risks associated
with the use of illicit drugs and the abuse of alcohol;
``(D) a description of any drug or alcohol
counseling, treatment, or rehabilitation or re-entry
programs that are available to employees or students;
and
``(E) a clear statement that the institution will
impose sanctions on students and employees (consistent
with local, State, and Federal law), and a description
of those sanctions, up to and including expulsion or
termination of employment and referral for prosecution,
for violations of the standards of conduct required by
subparagraph (A); and
``(2) a biennial review by the institution of the
institution's program to--
``(A) determine the program's effectiveness and
implement changes to the program if the changes are
needed; and
``(B) ensure that the sanctions required by
paragraph (1)(E) are consistently enforced.
``(b) Information Availability.--Each institution of higher
education that provides the certification required by subsection (a)
shall, upon request, make available to the Secretary and to the public a
copy of each item required by subsection (a)(1) as well as the results
of the biennial review required by subsection (a)(2).
``(c) Regulations.--
``(1) In general.--The Secretary shall publish regulations
to implement and enforce the provisions of this section,
including regulations that provide for--
``(A) the periodic review of a representative sample
of programs required by subsection (a); and
``(B) a range of responses and sanctions for
institutions of higher education that fail to implement
their programs or to consistently enforce their
sanctions, including information and technical
assistance, the development of a compliance agreement,
and the termination of any form of Federal financial
assistance.
``(2) Rehabilitation program.--The sanctions required by
subsection (a)(1)(E) may include the completion of an
appropriate rehabilitation program.
``(d) Appeals.--Upon determination by the Secretary to terminate
financial assistance to any institution of higher education under this
section, the institution may file an appeal with an administrative law
judge before the expiration of the 30-day period beginning on the date
such institution is notified of the decision to terminate financial
assistance under this section. Such judge shall hold a hearing with
respect to such termination of assistance before the expiration of the
45-day period beginning on the date that such appeal is filed. Such
judge may extend such 45-day
[[Page 112 STAT. 1598]]
period upon a motion by the institution concerned. The decision of the
judge with respect to such termination shall be considered to be a final
agency action.
``(e) Alcohol and Drug Abuse Prevention Grants.--
``(1) Program authority.--The Secretary may make grants to
institutions of higher education or consortia of such
institutions, and enter into contracts with such institutions,
consortia, and other organizations, to develop, implement,
operate, improve, and disseminate programs of prevention, and
education (including treatment-referral) to reduce and eliminate
the illegal use of drugs and alcohol and the violence associated
with such use. Such grants or contracts may also be used for the
support of a higher education center for alcohol and drug abuse
prevention that will provide training, technical assistance,
evaluation, dissemination, and associated services and
assistance to the higher education community as determined by
the Secretary and institutions of higher education.
``(2) Awards.--Grants and contracts shall be awarded under
paragraph (1) on a competitive basis.
``(3) Applications.--An institution of higher education, a
consortium of such institutions, or another organization that
desires to receive a grant or contract under paragraph (1) shall
submit an application to the Secretary at such time, in such
manner, and containing or accompanied by such information as the
Secretary may reasonably require by regulation.
``(4) Additional requirements.--
``(A) Participation.--In awarding grants and
contracts under this subsection the Secretary shall make
every effort to ensure--
``(i) the equitable participation of private
and public institutions of higher education
(including community and junior colleges); and
``(ii) the equitable geographic participation
of such institutions.
``(B) Consideration.--In awarding grants and
contracts under this subsection the Secretary shall give
appropriate consideration to institutions of higher
education with limited enrollment.
``(5) Authorization of appropriations.--There are authorized
to be appropriated to carry out this subsection $5,000,000 for
fiscal year 1999 and such sums as may be necessary for each of
the 4 succeeding fiscal years.
``(f ) National Recognition Awards.--
``(1) Purpose.--It is the purpose of this subsection to
provide models of innovative and effective alcohol and drug
abuse prevention programs in higher education and to focus
national attention on exemplary alcohol and drug abuse
prevention efforts.
``(2) Awards.--
``(A) In general.--The Secretary shall make 5
National Recognition Awards for outstanding alcohol
prevention programs and 5 National Recognition Awards
for outstanding drug abuse prevention programs, on an
annual basis, to institutions of higher education that--
[[Page 112 STAT. 1599]]
``(i) have developed and implemented
innovative and effective alcohol prevention
programs or drug abuse prevention programs; and
``(ii) with respect to an application for an
alcohol prevention program award, demonstrate in
the application submitted under paragraph (3) that
the institution has undertaken efforts designed to
change the culture of college drinking consistent
with the review criteria described in paragraph
(3)(C)(iii).
``(B) <<NOTE: District of Columbia.>> Ceremony.--The
awards shall be made at a ceremony in Washington, D.C.
``(C) <<NOTE: Publication.>> Document.--The
Secretary shall publish a document describing the
alcohol and drug abuse prevention programs of
institutions of higher education that receive the awards
under this subsection and disseminate the document
nationally to all public and private secondary school
guidance counselors for use by secondary school juniors
and seniors preparing to enter an institution of higher
education. <<NOTE: Deadline.>> The document shall be
disseminated not later than January 1 of each academic
year.
``(D) Amount and use.--Each institution of higher
education selected to receive an award under this
subsection shall receive an award in the amount of
$50,000. Such award shall be used for the maintenance
and improvement of the institution's outstanding
prevention program for the academic year following the
academic year for which the award is made.
``(3) Application.--
``(A) In general.--Each institution of higher
education desiring an award 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. Each such application shall
contain--
``(i) a clear description of the goals and
objectives of the prevention program of the
institution;
``(ii) a description of program activities
that focus on alcohol or drug policy issues,
policy development, modification, or refinement,
policy dissemination and implementation, and
policy enforcement;
``(iii) a description of activities that
encourage student and employee participation and
involvement in activity development and
implementation;
``(iv) the objective criteria used to
determine the effectiveness of the methods used in
such programs and the means used to evaluate and
improve the programs' efforts;
``(v) a description of special initiatives
used to reduce high-risk behavior or increase low-
risk behavior; and
``(vi) a description of coordination and
networking efforts that exist in the community in
which the institution is located for purposes of
such programs.
``(B) Application review.--The Secretary shall
appoint a committee to review applications submitted
[[Page 112 STAT. 1600]]
under this paragraph. The committee may include
representatives of Federal departments or agencies the
programs of which include alcohol abuse prevention and
education efforts and drug abuse prevention and
education efforts, directors or heads (or their
representatives) of professional associations that focus
on alcohol and drug abuse prevention efforts, and non-
Federal scientists who have backgrounds in social
science evaluation and research methodology and in
education. Decisions of the committee shall be made
directly to the Secretary without review by any other
entity in the Department.
``(C) Review criteria.--The committee described in
subparagraph (B) shall develop specific review criteria
for reviewing and evaluating applications submitted
under this paragraph. The review criteria shall
include--
``(i) measures of the effectiveness of the
program of the institution, that includes changes
in the campus alcohol or other drug environment or
the climate and changes in alcohol or other drug
use before and after the initiation of the
program;
``(ii) measures of program
institutionalization, including--
``(I) an assessment of needs of the
institution;
``(II) the institution's alcohol and
drug policies, staff and faculty
development activities, drug prevention
criteria, student, faculty, and campus
community involvement; and
``(III) whether the program will be
continued after the cessation of Federal
funding; and
``(iii) with respect to an application for an
alcohol prevention program award, criteria for
determining whether the institution has policies
in effect that--
``(I) prohibit alcoholic beverage
sponsorship of athletic events, and
prohibit alcoholic beverage advertising
inside athletic facilities;
``(II) prohibit alcoholic beverage
marketing on campus, which may include
efforts to ban alcohol advertising in
institutional publications or efforts to
prohibit alcohol-related advertisements
at campus events;
``(III) establish or expand upon
alcohol-free living arrangements for all
college students;
``(IV) establish partnerships with
community members and organizations to
further alcohol prevention efforts on
campus and the areas surrounding campus;
and
``(V) establish innovative
communications programs involving
students and faculty in an effort to
educate students about alcohol-related
risks.
``(4) Eligibility.--In order to be eligible to receive a
National Recognition Award an institution of higher education
shall--
``(A) offer an associate or baccalaureate degree;
``(B) have established an alcohol abuse prevention
and education program or a drug abuse prevention and
education program;
[[Page 112 STAT. 1601]]
``(C) nominate itself or be nominated by others,
such as professional associations or student
organizations, to receive the award; and
``(D) not have received an award under this
subsection during the 5 academic years preceding the
academic year for which the determination is made.
``(5) Authorization of appropriations.--
``(A) In general.--There is authorized to be
appropriated to carry out this subsection $750,000 for
fiscal year 1999.
``(B) Availability.--Funds appropriated under
subparagraph (A) shall remain available until expended.
``SEC. 121. PRIOR RIGHTS AND OBLIGATIONS. <<NOTE: 20 USC 1011j.>>
``(a) Authorization of Appropriations.--
``(1) Pre-1987 parts c and d of title vii.--There are
authorized to be appropriated such sums as may be necessary for
fiscal year 1999 and for each of the 4 succeeding fiscal years
to pay obligations incurred prior to 1987 under parts C and D of
title VII, as such parts were in effect before the effective
date of the Higher Education Amendments of 1992.
``(2) Post-1992 and pre-1998 part c of title vii.--There are
authorized to be appropriated such sums as may be necessary for
fiscal year 1999 and for each of the 4 succeeding fiscal years
to pay obligations incurred prior to the date of enactment of
the Higher Education Amendments of 1998 under part C of title
VII, as such part was in effect during the period--
``(A) after the effective date of the Higher
Education Amendments of 1992; and
``(B) prior to the date of enactment of the Higher
Education Amendments of 1998.
``(b) Legal Responsibilities.--
``(1) Pre-1987 title vii.--All entities with continuing
obligations incurred under parts A, B, C, and D of title VII, as
such parts were in effect before the effective date of the
Higher Education Amendments of 1992, shall be subject to the
requirements of such part as in effect before the effective date
of the Higher Education Amendments of 1992.
``(2) Post-1992 and pre-1998 part c of title vii.--All
entities with continuing obligations incurred under part C of
title VII, as such part was in effect during the period--
``(A) after the effective date of the Higher
Education Amendments of 1992; and
``(B) prior to the date of enactment of the Higher
Education Amendments of 1998,
shall be subject to the requirements of such part as such part
was in effect during such period.
``SEC. 122. RECOVERY OF PAYMENTS. <<NOTE: 20 USC 1011k.>>
``(a) Public Benefit.--Congress declares that, if a facility
constructed with the aid of a grant under part A of title VII as such
part A was in effect prior to the date of enactment of the Higher
Education Amendments of 1998, or part B of such title as part B was in
effect prior to the date of enactment of the Higher Education Amendments
of 1992, is used as an academic facility for 20 years following
completion of such construction, the public benefit accruing to the
United States will equal in value
[[Page 112 STAT. 1602]]
the amount of the grant. The period of 20 years after completion of such
construction shall therefore be deemed to be the period of Federal
interest in such facility for the purposes of such title as so in
effect.
``(b) Recovery Upon Cessation of Public Benefit.--If, within 20
years after completion of construction of an academic facility which has
been constructed, in part with a grant under part A of title VII as such
part A was in effect prior to the date of enactment of the Higher
Education Amendments of 1998, or part B of title VII as such part B was
in effect prior to the date of enactment of the Higher Education
Amendments of 1992--
``(1) the applicant under such parts as so in effect (or the
applicant's successor in title or possession) ceases or fails to
be a public or nonprofit institution; or
``(2) the facility ceases to be used as an academic
facility, or the facility is used as a facility excluded from
the term `academic facility' (as such term was defined under
title VII, as so in effect), unless the Secretary determines
that there is good cause for releasing the institution from its
obligation,
the United States shall be entitled to recover from such applicant (or
successor) an amount which bears to the value of the facility at that
time (or so much thereof as constituted an approved project or projects)
the same ratio as the amount of Federal grant bore to the cost of the
facility financed with the aid of such grant. The value shall be
determined by agreement of the parties or by action brought in the
United States district court for the district in which such facility is
situated.
``(c) Prohibition on Use for Religion.--Notwithstanding the
provisions of subsections (a) and (b), no project assisted with funds
under title VII (as in effect prior to the date of enactment of the
Higher Education Amendments of 1998) shall ever be used for religious
worship or a sectarian activity or for a school or department of
divinity.
``PART C--COST OF HIGHER EDUCATION
``SEC. 131. <<NOTE: 20 USC 1015.>> IMPROVEMENTS IN MARKET INFORMATION
AND PUBLIC ACCOUNTABILITY IN HIGHER EDUCATION.
``(a) Improved Data Collection.--
``(1) Development of uniform methodology.--The Secretary
shall direct the Commissioner of Education Statistics to convene
a series of forums to develop nationally consistent
methodologies for reporting costs incurred by postsecondary
institutions in providing postsecondary education.
``(2) Redesign of data systems.--On the basis of the
methodologies developed pursuant to paragraph (1), the Secretary
shall redesign relevant parts of the postsecondary education
data systems to improve the usefulness and timeliness of the
data collected by such systems.
``(3) Information to institutions.--The Commissioner of
Education Statistics shall--
``(A) develop a standard definition for the
following data elements:
``(i) tuition and fees for a full-time
undergraduate student;
[[Page 112 STAT. 1603]]
``(ii) cost of attendance for a full-time
undergraduate student, consistent with the
provisions of section 472;
``(iii) average amount of financial assistance
received by an undergraduate student who attends
an institution of higher education, including--
``(I) each type of assistance or
benefit described in section
428(a)(2)(C)(i);
``(II) fellowships; and
``(III) institutional and other
assistance; and
``(iv) number of students receiving financial
assistance described in each of subclauses (I),
(II), and (III) of clause (iii);
``(B) <<NOTE: Deadline. Reports.>> not later than 90
days after the date of enactment of the Higher Education
Amendments of 1998, report the definitions to each
institution of higher education and within a reasonable
period of time thereafter inform the Committee on Labor
and Human Resources of the Senate and the Committee on
Education and the Workforce of the House of
Representatives of those definitions; and
``(C) collect information regarding the data
elements described in subparagraph (A) with respect to
at least all institutions of higher education
participating in programs under title IV, beginning with
the information from academic year 2000-2001 and
annually thereafter.
``(b) Data Dissemination.--The Secretary shall make available the
data collected pursuant to subsection (a). Such data shall be available
in a form that permits the review and comparison of the data submissions
of individual institutions of higher education. Such data shall be
presented in a form that is easily understandable and allows parents and
students to make informed decisions based on the costs for typical full-
time undergraduate students.
``(c) Study.--
``(1) In general.--The Commissioner of Education Statistics
shall conduct a national study of expenditures at institutions
of higher education. Such study shall include information with
respect to--
``(A) the change in tuition and fees compared with
the consumer price index and other appropriate measures
of inflation;
``(B) faculty salaries and benefits;
``(C) administrative salaries, benefits and
expenses;
``(D) academic support services;
``(E) research;
``(F) operations and maintenance; and
``(G) institutional expenditures for construction
and technology and the potential cost of replacing
instructional buildings and equipment.
``(2) Evaluation.--The study shall include an evaluation
of--
``(A) changes over time in the expenditures
identified in paragraph (1);
``(B) the relationship of the expenditures
identified in paragraph (1) to college costs; and
``(C) the extent to which increases in institutional
financial aid and tuition discounting practices affect
tuition increases, including the demographics of
students receiving
[[Page 112 STAT. 1604]]
such discounts, the extent to which financial aid is
provided to students with limited need in order to
attract a student to a particular institution, and the
extent to which Federal financial aid, including loan
aid, has been used to offset the costs of such
practices.
``(3) <<NOTE: Deadline.>> Final report.--The Commissioner of
Education Statistics shall submit a report regarding the
findings of the study required by paragraph (1) to the
appropriate committees of Congress not later than September 30,
2002.
``(4) Higher education market basket.--The Bureau of Labor
Statistics, in consultation with the Commissioner of Education
Statistics, shall develop a higher education market basket that
identifies the items that comprise the costs of higher
education. <<NOTE: Reports. Deadline.>> The Bureau of Labor
Statistics shall provide a report on the market basket to the
Committee on Labor and Human Resources of the Senate and the
Committee on Education and the Workforce of the House of
Representatives not later than September 30, 2002.
``(5) Fines.--In addition to actions authorized in section
487(c), the Secretary may impose a fine in an amount not to
exceed $25,000 on an institution of higher education for failing
to provide the information described in paragraph (1) in a
timely and accurate manner, or for failing to otherwise
cooperate with the National Center for Education Statistics
regarding efforts to obtain data on the cost of higher education
under this section and pursuant to the program participation
agreement entered into under section 487.
``(d) Student Aid Recipient Survey.--(1) The Secretary shall survey
student aid recipients on a regular cycle, but not less than once every
3 years--
``(A) to identify the population of students receiving
Federal student aid;
``(B) to determine the income distribution and other
socioeconomic characteristics of federally aided students;
``(C) to describe the combinations of aid from State,
Federal, and private sources received by students from all
income groups;
``(D) to describe the debt burden of loan recipients and
their capacity to repay their education debts; and
``(E) to disseminate such information in both published and
machine readable form.
``(2) The survey shall be representative of full-time and part-time,
undergraduate, graduate, and professional and current and former
students in all types of institutions, and should be designed and
administered in consultation with the Congress and the postsecondary
education community.
``PART D--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL
ASSISTANCE
``SEC. 141. <<NOTE: 20 USC 1018.>> PERFORMANCE-BASED ORGANIZATION FOR
THE DELIVERY OF FEDERAL STUDENT FINANCIAL ASSISTANCE.
``(a) Establishment and Purpose.--
``(1) Establishment.--There is established in the Department
a Performance-Based Organization (hereafter referred to
[[Page 112 STAT. 1605]]
as the `PBO') which shall be a discrete management unit
responsible for managing the operational functions supporting
the programs authorized under title IV of this Act, as specified
in subsection (b).
``(2) Purposes.--The purposes of the PBO are--
``(A) to improve service to students and other
participants in the student financial assistance
programs authorized under title IV, including making
those programs more understandable to students and their
parents;
``(B) to reduce the costs of administering those
programs;
``(C) to increase the accountability of the
officials responsible for administering the operational
aspects of these programs;
``(D) to provide greater flexibility in the
management of the operational functions of the Federal
student financial assistance programs;
``(E) to integrate the information systems
supporting the Federal student financial assistance
programs;
``(F) to implement an open, common, integrated
system for the delivery of student financial assistance
under title IV; and
``(G) to develop and maintain a student financial
assistance system that contains complete, accurate, and
timely data to ensure program integrity.
``(b) General Authority.--
``(1) Authority of secretary.--Notwithstanding any other
provision of this part, the Secretary shall maintain
responsibility for the development and promulgation of policy
and regulations relating to the programs of student financial
assistance under title IV. In the exercise of its functions, the
PBO shall be subject to the direction of the Secretary. The
Secretary shall--
``(A) request the advice of, and work in cooperation
with, the Chief Operating Officer in developing
regulations, policies, administrative guidance, or
procedures affecting the information systems
administered by the PBO, and other functions performed
by the PBO;
``(B) request cost estimates from the Chief
Operating Officer for system changes required by
specific policies proposed by the Secretary; and
``(C) assist the Chief Operating Officer in
identifying goals for the administration and
modernization of the delivery system for student
financial assistance under title IV.
``(2) PBO functions.--Subject to paragraph (1), the PBO
shall be responsible for administration of the information and
financial systems that support student financial assistance
programs authorized under this title, excluding the development
of policy relating to such programs but including the following:
``(A) The administrative, accounting, and financial
management functions of the delivery system for Federal
student assistance, including--
``(i) the collection, processing and
transmission of applicant data to students,
institutions and authorized third parties, as
provided for in section 483;
[[Page 112 STAT. 1606]]
``(ii) design and technical specifications for
software development and systems supporting the
delivery of student financial assistance under
title IV;
``(iii) all software and hardware acquisitions
and all information technology contracts related
to the delivery and management of student
financial assistance under title IV;
``(iv) all aspects of contracting for the
information and financial systems supporting
student financial assistance programs under this
title; and
``(v) providing all customer service,
training, and user support related to systems that
support those programs.
``(B) Annual development of a budget for the
operations and services of the PBO, in consultation with
the Secretary, and for consideration and inclusion in
the Department's annual budget submission.
``(3) Additional functions.--The Secretary may allocate to
the PBO such additional functions as the Secretary and the Chief
Operating Officer determine are necessary or appropriate to
achieve the purposes of the PBO.
``(4) Independence.--Subject to paragraph (1), in carrying
out its functions, the PBO shall exercise independent control of
its budget allocations and expenditures, personnel decisions and
processes, procurements, and other administrative and management
functions.
``(5) Audits and review.--The PBO shall be subject to the
usual and customary Federal audit procedures and to review by
the Inspector General of the Department.
``(6) Changes.--
``(A) In general.--The Secretary and the Chief
Operating Officer shall consult concerning the effects
of policy, market, or other changes on the ability of
the PBO to achieve the goals and objectives established
in the performance plan described in subsection (c).
``(B) Revisions to agreement.--The Secretary and the
Chief Operating Officer may revise the annual
performance agreement described in subsection (d)(4) in
light of policy, market, or other changes that occur
after the Secretary and the Chief Operating Officer
enter into the agreement.
``(c) Performance Plan and Report.--
``(1) Performance plan.--
``(A) In general.--Each year, the Secretary and
Chief Operating Officer shall agree on, and make
available to the public, a performance plan for the PBO
for the succeeding 5 years that establishes measurable
goals and objectives for the organization.
``(B) Consultation.--In developing the 5-year
performance plan and any revision to the plan, the
Secretary and the Chief Operating Officer shall consult
with students, institutions of higher education,
Congress, lenders, the Advisory Committee on Student
Financial Assistance, and other interested parties not
less than 30 days prior to the implementation of the
performance plan or revision.
``(C) Areas.--The plan shall include a concise
statement of the goals for a modernized system for the
delivery of student financial assistance under title IV
and identify
[[Page 112 STAT. 1607]]
action steps necessary to achieve such goals. The plan
shall address the PBO's responsibilities in the
following areas:
``(i) Improving service.--Improving service to
students and other participants in student
financial aid programs authorized under this
title, including making those programs more
understandable to students and their parents.
``(ii) Reducing costs.--Reducing the costs of
administering those programs.
``(iii) Improvement and integration of support
systems.--Improving and integrating the
information and delivery systems that support
those programs.
``(iv) Delivery and information system.--
Developing an open, common, and integrated
delivery and information system for programs
authorized under this title.
``(v) Other areas.--Any other areas identified
by the Secretary.
``(2) Annual report.--Each year, the Chief Operating
Officer shall prepare and submit to Congress, through the
Secretary, an annual report on the performance of the PBO,
including an evaluation of the extent to which the PBO met the
goals and objectives contained in the 5-year performance plan
described in paragraph (1) for the preceding year. The annual
report shall include the following:
``(A) An independent financial audit of the
expenditures of both the PBO and programs administered
by the PBO.
``(B) Financial and performance requirements
applicable to the PBO under the Chief Financial Officer
Act of 1990 and the Government Performance and Results
Act of 1993.
``(C) The results achieved by the PBO during the
year relative to the goals established in the
organization's performance plan.
``(D) The evaluation rating of the performance of
the Chief Operating Officer and senior managers under
subsections (d)(4) and (e)(2), including the amounts of
bonus compensation awarded to these individuals.
``(E) Recommendations for legislative and regulatory
changes to improve service to students and their
families, and to improve program efficiency and
integrity.
``(F) Other such information as the Director of the
Office of Management and Budget shall prescribe for
performance based organizations.
``(3) Consultation with stakeholders.--The Chief Operating
Officer, in preparing the report described in paragraph (2),
shall establish appropriate means to consult with borrowers,
institutions, lenders, guaranty agencies, secondary markets, and
others involved in the delivery system of student aid under this
title--
``(A) regarding the degree of satisfaction with the
delivery system; and
``(B) to seek suggestions on means to improve the
delivery system.
``(d) Chief Operating Officer.--
[[Page 112 STAT. 1608]]
``(1) Appointment.--The management of the PBO shall be
vested in a Chief Operating Officer who shall be appointed by
the Secretary to a term of not less than 3 and not more than 5
years, and compensated without regard to chapters 33, 51, and 53
of title 5, United States Code. <<NOTE: Deadline.>> The
Secretary shall appoint the Chief Operating Officer within 6
months after the date of enactment of the Higher Education
Amendments of 1998. The appointment shall be made on the basis
of demonstrated management ability and expertise in information
technology, including experience with financial systems, and
without regard to political affiliation or activity.
``(2) Reappointment.--The Secretary may reappoint the Chief
Operating Officer to subsequent terms of not less than 3 and not
more than 5 years, so long as the performance of the Chief
Operating Officer, as set forth in the performance agreement
described in paragraph (4), is satisfactory.
``(3) Removal.--The Chief Operating Officer may be removed
by--
``(A) the President; or
``(B) the Secretary, for misconduct or failure to
meet performance goals set forth in the performance
agreement in paragraph (4).
The President or Secretary shall communicate the reasons for any
such removal to the appropriate committees of Congress.
``(4) Performance agreement.--
``(A) In general.--Each year, the Secretary and the
Chief Operating Officer shall enter into an annual
performance agreement, that shall set forth measurable
organization and individual goals for the Chief
Operating Officer.
``(B) <<NOTE: Public information.>> Transmittal.--
The final agreement, and any revision to the final
agreement, shall be transmitted to the Committee on
Education and the Workforce of the House of
Representatives and the Committee on Labor and Human
Resources of the Senate, and made publicly available.
``(5) Compensation.--
``(A) In general.--The Chief Operating Officer is
authorized to be paid at an annual rate of basic pay not
to exceed the maximum rate of basic pay for the Senior
Executive Service under section 5382 of title 5, United
States Code, including any applicable locality-based
comparability payment that may be authorized under
section 5304(h)(2)(B) of such title. The compensation of
the Chief Operating Officer shall be considered for
purposes of section 207(c)(2)(A) of title 18, United
States Code, to be the equivalent of that described
under clause (ii) of section 207(c)(2)(A) of such title.
``(B) Bonus.--In addition, the Chief Operating
Officer may receive a bonus in an amount that does not
exceed 50 percent of such annual rate of basic pay,
based upon the Secretary's evaluation of the Chief
Operating Officer's performance in relation to the goals
set forth in the performance agreement described in
paragraph (2).
``(C) Payment.--Payment of a bonus under this
subparagraph (B) may be made to the Chief Operating
Officer only to the extent that such payment does not
[[Page 112 STAT. 1609]]
cause the Chief Operating Officer's total aggregate
compensation in a calendar year to equal or exceed the
amount of the President's salary under section 102 of
title 3, United States Code.
``(e) Senior Management.--
``(1) Appointment.--
``(A) In general.--The Chief Operating Officer may
appoint such senior managers as that officer determines
necessary without regard to the provisions of title 5,
United States Code, governing appointments in the
competitive service.
``(B) Compensation.--The senior managers described
in subparagraph (A) may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter
53 of such title relating to classification and General
Schedule pay rates.
``(2) Performance agreement.--Each year, the Chief Operating
Officer and each senior manager appointed under this subsection
shall enter into an annual performance agreement that sets forth
measurable organization and individual goals. The agreement
shall be subject to review and renegotiation at the end of each
term.
``(3) Compensation.--
``(A) In general.--A senior manager appointed under
this subsection may be paid at an annual rate of basic
pay of not more than the maximum rate of basic pay for
the Senior Executive Service under section 5382 of title
5, United States Code, including any applicable
locality-based comparability payment that may be
authorized under section 5304(h)(2)(C) of such title.
The compensation of a senior manager shall be considered
for purposes of section 207(c)(2)(A) of title 18, United
States Code, to be the equivalent of that described
under clause (ii) of section 207(c)(2)(A) of such title.
``(B) Bonus.--In addition, a senior manager may
receive a bonus in an amount such that the manager's
total annual compensation does not exceed 125 percent of
the maximum rate of basic pay for the Senior Executive
Service, including any applicable locality-based
comparability payment, based upon the Chief Operating
Officer's evaluation of the manager's performance in
relation to the goals set forth in the performance
agreement described in paragraph (2).
``(4) Removal.--A senior manager shall be removable by the
Chief Operating Officer, or by the Secretary if the position of
Chief Operating Officer is vacant.
``(f ) Student Loan Ombudsman.--
``(1) Appointment.--The Chief Operating Officer, in
consultation with the Secretary, shall appoint a Student Loan
Ombudsman to provide timely assistance to borrowers of loans
made, insured, or guaranteed under title IV by performing the
functions described in paragraph (3).
``(2) Public information.--The Chief Operating Officer shall
disseminate information about the availability and functions of
the Ombudsman to borrowers and potential borrowers, as well as
institutions of higher education, lenders, guaranty
[[Page 112 STAT. 1610]]
agencies, loan servicers, and other participants in those
student loan programs.
``(3) <<NOTE: Regulations.>> Functions of ombudsman.--The
Ombudsman shall--
``(A) in accordance with regulations of the
Secretary, receive, review, and attempt to resolve
informally complaints from borrowers of loans described
in paragraph (1), including, as appropriate, attempts to
resolve such complaints within the Department of
Education and with institutions of higher education,
lenders, guaranty agencies, loan servicers, and other
participants in the loan programs described in paragraph
(1)(A); and
``(B) <<NOTE: Records.>> compile and analyze data on
borrower complaints and make appropriate
recommendations.
``(4) Report.--Each year, the Ombudsman shall submit a
report to the Chief Operating Officer, for inclusion in the
annual report under subsection (c)(2), that describes the
activities, and evaluates the effectiveness of the Ombudsman
during the preceding year.
``(g) Personnel Flexibility.--
``(1) Personnel ceilings.--The PBO shall not be subject to
any ceiling relating to the number or grade of employees.
``(2) Administrative flexibility.--The Chief Operating
Officer shall work with the Office of Personnel Management to
develop and implement personnel flexibilities in staffing,
classification, and pay that meet the needs of the PBO, subject
to compliance with title 5, United States Code.
``(3) Excepted service.--The Chief Operating Officer may
appoint, without regard to the provisions of title 5, United
States Code, governing appointments in the competitive service,
not more than 25 technical and professional employees to
administer the functions of the PBO. These employees may be paid
without regard to the provisions of chapter 51 and subchapter
III of chapter 53 of such title relating to classification and
General Schedule pay rates.
``(h) Establishment of a Fair and Equitable System for Measuring
Staff Performance.--The PBO shall establish an annual performance
management system, subject to compliance with title 5, United States
Code and consistent with applicable provisions of law and regulations,
which strengthens the organizational effectiveness of the PBO by
providing for establishing goals or objectives for individual, group, or
organizational performance (or any combination thereof), consistent with
the performance plan of the PBO and its performance planning procedures,
including those established under the Government Performance and Results
Act of 1993, and communicating such goals or objectives to employees.
``(i) <<NOTE: Deadline.>> Report.--The Secretary and the Chief
Operating Officer, not later than 180 days after the date of enactment
of the Higher Education Amendments of 1998, shall report to Congress on
the proposed budget and sources of funding for the operation of the PBO.
``( j) Authorization of Appropriations.--The Secretary shall
allocate from funds made available under section 458 such funds as are
appropriate to the functions assumed by the PBO. In addition, there are
authorized to be appropriated such sums as may be necessary to carry out
the purposes of this part, including transition costs.
[[Page 112 STAT. 1611]]
``SEC. 142. PROCUREMENT FLEXIBILITY. <<NOTE: 20 USC 1018a.>>
``(a) Procurement Authority.--Subject to the authority of the
Secretary, the Chief Operating Officer of a PBO may exercise the
authority of the Secretary to procure property and services in the
performance of functions managed by the PBO. For the purposes of this
section, the term `PBO' includes the Chief Operating Officer of the PBO
and any employee of the PBO exercising procurement authority under the
preceding sentence.
``(b) In General.--Except as provided in this section, the PBO shall
abide by all applicable Federal procurement laws and regulations when
procuring property and services. The PBO shall--
``(1) <<NOTE: Contracts.>> enter into contracts for
information systems supporting the programs authorized under
title IV to carry out the functions set forth in section
141(b)(2); and
``(2) obtain the services of experts and consultants without
regard to section 3109 of title 5, United States Code and set
pay in accordance with such section.
``(c) Service Contracts.--
``(1) Performance-based servicing contracts.--The Chief
Operating Officer shall, to the extent practicable, maximize the
use of performance-based servicing contracts, consistent with
guidelines for such contracts published by the Office of Federal
Procurement Policy, to achieve cost savings and improve service.
``(2) Fee for service arrangements.--The Chief Operating
Officer shall, when appropriate and consistent with the purposes
of the PBO, acquire services related to the title IV delivery
system from any entity that has the capability and capacity to
meet the requirements for the system. The Chief Operating
Officer is authorized to pay fees that are equivalent to those
paid by other entities to an organization that provides an
information system or service that meets the requirements of the
PBO, as determined by the Chief Operating Officer.
``(d) Two-Phase Source-Selection Procedures.--
``(1) In general.--The PBO may use a two-phase process for
selecting a source for a procurement of property or services.
``(2) First phase.--The procedures for the first phase of
the process for a procurement are as follows:
``(A) Publication of notice.--The contracting
officer for the procurement shall publish a notice of
the procurement in accordance with section 18 of the
Office of Federal Procurement Policy Act (41 U.S.C. 416)
and subsections (e), (f ), and (g) of section 8 of the
Small Business Act (15 U.S.C. 637), except that the
notice shall include only the following:
``(i) A general description of the scope or
purpose of the procurement that provides
sufficient information on the scope or purpose for
sources to make informed business decisions
regarding whether to participate in the
procurement.
``(ii) A description of the basis on which
potential sources are to be selected to submit
offers in the second phase.
``(iii) A description of the information that
is to be required under subparagraph (B).
``(iv) Any additional information that the
contracting officer determines appropriate.
[[Page 112 STAT. 1612]]
``(B) Information submitted by offerors.--Each
offeror for the procurement shall submit basic
information, such as information on the offeror's
qualifications, the proposed conceptual approach, costs
likely to be associated with the proposed conceptual
approach, and past performance of the offeror on Federal
Government contracts, together with any additional
information that is requested by the contracting
officer.
``(C) Selection for second phase.--The contracting
officer shall select the offerors that are to be
eligible to participate in the second phase of the
process. The contracting officer shall limit the number
of the selected offerors to the number of sources that
the contracting officer determines is appropriate and in
the best interests of the Federal Government.
``(3) Second phase.--
``(A) In general.--The contracting officer shall
conduct the second phase of the source selection process
in accordance with sections 303A and 303B of the Federal
Property and Administrative Services Act of 1949 (41
U.S.C. 253a and 253b).
``(B) Eligible participants.--Only the sources
selected in the first phase of the process shall be
eligible to participate in the second phase.
``(C) Single or multiple procurements.--The second
phase may include a single procurement or multiple
procurements within the scope, or for the purpose,
described in the notice pursuant to paragraph (2)(A).
``(4) Procedures considered competitive.--The procedures
used for selecting a source for a procurement under this
subsection shall be considered competitive procedures for all
purposes.
``(e) Use of Simplified Procedures for Commercial Items.--Whenever
the PBO anticipates that commercial items will be offered for a
procurement, the PBO may use (consistent with the special rules for
commercial items) the special simplified procedures for the procurement
without regard to--
``(1) any dollar limitation otherwise applicable to the use
of those procedures; and
``(2) the expiration of the authority to use special
simplified procedures under section 4202(e) of the Clinger-Cohen
Act of 1996 (110 Stat. 654; 10 U.S.C. 2304 note).
``(f ) Flexible Wait Periods and Deadlines for Submission of Offers
of Noncommercial Items.--
``(1) Authority.--In carrying out a procurement, the PBO
may--
``(A) apply a shorter waiting period for the
issuance of a solicitation after the publication of a
notice under section 18 of the Office of Federal
Procurement Policy Act (41 U.S.C. 416) than is required
under subsection (a)(3)(A) of such section; and
``(B) notwithstanding subsection (a)(3) of such
section, establish any deadline for the submission of
bids or proposals that affords potential offerors a
reasonable opportunity to respond to the solicitation.
``(2) Inapplicability to commercial items.--Paragraph (1)
does not apply to a procurement of a commercial item.
[[Page 112 STAT. 1613]]
``(3) Consistency with applicable international
agreements.--If an international agreement is applicable to the
procurement, any exercise of authority under paragraph (1) shall
be consistent with the international agreement.
``(g) Modular Contracting.--
``(1) In general.--The PBO may satisfy the requirements of
the PBO for a system incrementally by carrying out successive
procurements of modules of the system. In doing so, the PBO may
use procedures authorized under this subsection to procure any
such module after the first module.
``(2) Utility requirement.--A module may not be procured for
a system under this subsection unless the module is useful
independently of the other modules or useful in combination with
another module previously procured for the system.
``(3) Conditions for use of authority.--The PBO may use
procedures authorized under paragraph (4) for the procurement of
an additional module for a system if--
``(A) competitive procedures were used for awarding
the contract for the procurement of the first module for
the system; and
``(B) the solicitation for the first module
included--
``(i) a general description of the entire
system that was sufficient to provide potential
offerors with reasonable notice of the general
scope of future modules;
``(ii) other information sufficient for
potential offerors to make informed business
judgments regarding whether to submit offers for
the contract for the first module; and
``(iii) a statement that procedures authorized
under this subsection could be used for awarding
subsequent contracts for the procurement of
additional modules for the system.
``(4) Procedures.--If the procurement of the first module
for a system meets the requirements set forth in paragraph (3),
the PBO may award a contract for the procurement of an
additional module for the system using any of the following
procedures:
``(A) Sole source.--Award of the contract on a sole-
source basis to a contractor who was awarded a contract
for a module previously procured for the system under
competitive procedures or procedures authorized under
subparagraph (B).
``(B) Adequate competition.--Award of the contract
on the basis of offers made by--
``(i) a contractor who was awarded a contract
for a module previously procured for the system
after having been selected for award of the
contract under this subparagraph or other
competitive procedures; and
``(ii) at least one other offeror that
submitted an offer for a module previously
procured for the system and is expected, on the
basis of the offer for the previously procured
module, to submit a competitive offer for the
additional module.
``(C) Other.--Award of the contract under any other
procedure authorized by law.
``(5) Notice requirement.--
[[Page 112 STAT. 1614]]
``(A) Publication.--Not <<NOTE: Deadline.>> less
than 30 days before issuing a solicitation for offers
for a contract for a module for a system under
procedures authorized under subparagraph (A) or (B) of
paragraph (4), the PBO shall publish in the Commerce
Business Daily a notice of the intent to use such
procedures to enter into the contract.
``(B) Exception.--Publication of a notice is not
required under this paragraph with respect to a use of
procedures authorized under paragraph (4) if the
contractor referred to in that subparagraph (who is to
be solicited to submit an offer) has previously provided
a module for the system under a contract that contained
cost, schedule, and performance goals and the contractor
met those goals.
``(C) Content of notice.--A notice published under
subparagraph (A) with respect to a use of procedures
described in paragraph (4) shall contain the information
required under section 18(b) of the Office of Federal
Procurement Policy Act (41 U.S.C. 416(b)), other than
paragraph (4) of such section, and shall invite the
submission of any assertion that the use of the
procedures for the procurement involved is not in the
best interest of the Federal Government together with
information supporting the assertion.
``(6) Documentation.--The basis for an award of a contract
under this subsection shall be documented. However, a
justification pursuant to section 303(f ) of the Federal
Property and Administrative Services Act of 1949 (41 U.S.C.
253(f )) or section 8(h) of the Small Business Act (15 U.S.C.
637(h)) is not required.
``(7) Simplified source-selection procedures.--The PBO may
award a contract under any other simplified procedures
prescribed by the PBO for the selection of sources for the
procurement of modules for a system, after the first module,
that are not to be procured under a contract awarded on a sole-
source basis.
``(h) Use of Simplified Procedures for Small Business Set-Asides for
Services Other Than Commercial Items.--
``(1) Authority.--The PBO may use special simplified
procedures for a procurement of services that are not commercial
items if--
``(A) the procurement is in an amount not greater
than $1,000,000;
``(B) the procurement is conducted as a small
business set-aside pursuant to section 15(a) of the
Small Business Act (15 U.S.C. 644(a)); and
``(C) the price charged for supplies associated with
the services procured are items of supply expected to be
less than 20 percent of the total contract price.
``(2) Inapplicability to certain procurements.--The
authority set forth in paragraph (1) may not be used for--
``(A) an award of a contract on a sole-source basis;
or
``(B) a contract for construction.
``(i) Guidance for Use of Authority.--
``(1) Issuance by pbo.--The Chief Operating Officer of the
PBO, in consultation with the Administrator for Federal
[[Page 112 STAT. 1615]]
Procurement Policy, shall issue guidance for the use by PBO
personnel of the authority provided in this section.
``(2) Guidance from ofpp.--As part of the consultation
required under paragraph (1), the Administrator for Federal
Procurement Policy shall provide the PBO with guidance that is
designed to ensure, to the maximum extent practicable, that the
authority under this section is exercised by the PBO in a manner
that is consistent with the exercise of the authority by the
heads of the other performance-based organizations.
``(3) Compliance with ofpp guidance.--The head of the PBO
shall ensure that the procurements of the PBO under this section
are carried out in a manner that is consistent with the guidance
provided for the PBO under paragraph (2).
``( j) Limitation on Multiagency Contracting.--No department or
agency of the Federal Government may purchase property or services under
contracts entered into or administered by a PBO under this section
unless the purchase is approved in advance by the senior procurement
official of that department or agency who is responsible for purchasing
by the department or agency.
``(k) Laws Not Affected.--Nothing in this section shall be construed
to waive laws for the enforcement of civil rights or for the
establishment and enforcement of labor standards that are applicable to
contracts of the Federal Government.
``(l) Definitions.--In this section:
``(1) Commercial item.--The term `commercial item' has the
meaning given the term in section 4(12) of the Office of Federal
Procurement Policy Act (41 U.S.C. 403(12)).
``(2) Competitive procedures.--The term `competitive
procedures' has the meaning given the term in section 309(b) of
the Federal Property and Administrative Services Act of 1949 (41
U.S.C. 259(b)).
``(3) Sole-source basis.--The term `sole-source basis', with
respect to an award of a contract, means that the contract is
awarded to a source after soliciting an offer or offers from,
and negotiating with, only that source.
``(4) Special rules for commercial items.--The term `special
rules for commercial items' means the regulations set forth in
the Federal Acquisition Regulation pursuant to section 303(g)(1)
of the Federal Property and Administrative Services Act of 1949
(41 U.S.C. 253(g)(1)) and section 31 of the Office of Federal
Procurement Policy Act (41 U.S.C. 427).
``(5) Special simplified procedures.--The term `special
simplified procedures' means the procedures applicable to
purchases of property and services for amounts not greater than
the simplified acquisition threshold that are set forth in the
Federal Acquisition Regulation pursuant to section 303(g)(1)(B)
of the Federal Property and Administrative Services Act of 1949
(41 U.S.C. 253(g)(1)(A)) and section 31(a)(1) of the Office of
Federal Procurement Policy Act (41 U.S.C. 427(a)(1)).
``SEC. 143. <<NOTE: 20 USC 1018b.>> ADMINISTRATIVE SIMPLIFICATION OF
STUDENT AID DELIVERY.
``(a) In General.--In order to improve the efficiency and
effectiveness of the student aid delivery system, the Secretary and the
Chief Operating Officer shall encourage and participate in the
establishment of voluntary consensus standards and requirements
[[Page 112 STAT. 1616]]
for the electronic transmission of information necessary for the
administration of programs under title IV.
``(b) Participation in Standard Setting Organizations.--
``(1) The Chief Operating Officer shall participate in the
activities of standard setting organizations in carrying out the
provisions of this section.
``(2) The Chief Operating Officer shall encourage higher
education groups seeking to develop common forms, standards, and
procedures in support of the delivery of Federal student
financial assistance to conduct these activities within a
standard setting organization.
``(3) The Chief Operating Officer may pay necessary dues and
fees associated with participating in standard setting
organizations pursuant to this subsection.
``(c) Adoption of Voluntary Consensus Standards.--Except with
respect to the common financial reporting form under section 483(a), the
Secretary shall consider adopting voluntary consensus standards agreed
to by the organization described in subsection (b) for transactions
required under title IV, and common data elements for such transactions,
to enable information to be exchanged electronically between systems
administered by the Department and among participants in the Federal
student aid delivery system.
``(d) Use of Clearinghouses.--Nothing in this section shall restrict
the ability of participating institutions and lenders from using a
clearinghouse or servicer to comply with the standards for the exchange
of information established under this section.
``(e) Data Security.--Any entity that maintains or transmits
information under a transaction covered by this section shall maintain
reasonable and appropriate administrative, technical, and physical
safeguards--
``(1) to ensure the integrity and confidentiality of the
information; and
``(2) to protect against any reasonably anticipated security
threats, or unauthorized uses or disclosures of the information.
``(f ) Definitions.--
``(1) Clearinghouse.--The term `clearinghouse' means a
public or private entity that processes or facilitates the
processing of nonstandard data elements into data elements
conforming to standards adopted under this section.
``(2) Standard setting organization.--The term `standard
setting organization' means an organization that--
``(A) is accredited by the American National
Standards Institute;
``(B) develops standards for information
transactions, data elements, or any other standard that
is necessary to, or will facilitate, the implementation
of this section; and
``(C) is open to the participation of the various
entities engaged in the delivery of Federal student
financial assistance.
``(3) Voluntary consensus standard.--The term `voluntary
consensus standard' means a standard developed or used by a
standard setting organization described in paragraph (2).''.
(b) Repeal of Old General Provisions.--Title XII (20 U.S.C. 1141 et
seq.) is repealed.
[[Page 112 STAT. 1617]]
(c) Repeal of Title IV Definition.--Section 481 (20 U.S.C. 1088) is
amended--
(1) by striking subsections (a), (b), and (c); and
(2) by redesignating subsections (d) through (f ) as
subsections (a) through (c), respectively.
SEC. 102. CONFORMING AMENDMENTS.
(a) Conforming Amendments Correcting References to Section 1201.--
(1) Agriculture.--
(A) Student internship programs.--Section 922 of the
Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 2279c) is amended--
(i) in subsection (a)(1)(B)--
(I) by striking ``1201'' and
inserting ``101''; and
(II) by striking ``(20 U.S.C.
1141)''; and
(ii) in subsection (b)(1)--
(I) by striking ``1201'' and
inserting ``101''; and
(II) by striking ``(20 U.S.C.
1141)''.
(B) Agricultural sciences education.--Section 1417(
j)(1)(A) of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C.
3152( j)(1)(A)) is amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(2) Armed forces.--
(A) Science and mathematics education improvement
program.--Section 2193(c)(1) of title 10, United States
Code, is amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(B) Support of science, mathematics, and engineering
education.--Section 2199(2) of title 10, United States
Code, is amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(C) Allowable costs under defense contracts.--
Section 841(c)(2) of the National Defense Authorization
Act for fiscal year 1994 (10 U.S.C. 2324 note) is
amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(D) Environmental restoration institutional grants
for training dislocated defense workers and young
adults.--Section 1333(i)(3) of the National Defense
Authorization Act for fiscal year 1994 (10 U.S.C. 2701
note) is amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(E) Environmental education opportunities program.--
Section 1334(k)(3) of the National Defense Authorization
Act for fiscal year 1994 (10 U.S.C. 2701 note) is
amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(F) Environmental scholarship and fellowship
programs.--Section 4451(b)(1) of the National Defense
[[Page 112 STAT. 1618]]
Authorization Act for 1993 (10 U.S.C. 2701 note) is
amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(3) Application of antitrust laws to award of need-based
educational aid.--Section 568(c)(3) of the Improving America's
Schools Act of 1994 (15 U.S.C. 1 note) is amended--
(A) by striking ``1201(a)'' and inserting ``101'';
and
(B) by striking ``(20 U.S.C. 1141(a))''.
(4) Omnibus parks and public lands management act of 1996.--
Section 1007(c)(5) of the Omnibus Parks and Public Lands
Management Act of 1996 (16 U.S.C. 698u-5) is amended by striking
``1201(a) of the Higher Education Act of 1965 (20 U.S.C.
1141(a))'' and inserting ``101 of the Higher Education Act of
1965''.
(5) Restrictions on former officers, employees, and elected
officials of the executive and legislative branches.--Section
207( j)(2)(B) of title 18, United States Code, is amended by
striking ``1201(a)'' and inserting ``101''.
(6) Education.--
(A) Higher education amendments of 1992.--Section
1(c) of the Higher Education Amendments of 1992 (20
U.S.C. 1001 note) is amended by striking ``1201'' and
inserting ``101''.
(B) Treatment of branches.--Section 498( j)(2) of
the Higher Education Act of 1965 (20 U.S.C. 1099c(
j)(2)) is amended by striking ``1201(a)(2)'' and
inserting ``101(a)(2)''.
(C) Disclosure requirements.--Section
429(d)(2)(B)(ii) of the General Education Provisions Act
(20 U.S.C. 1228c(d)(2)(B)(ii)) is amended by striking
``1201(a)'' and inserting ``101''.
(D) Harry s. truman scholarships.--Section 3(4) of
the Harry S. Truman Memorial Scholarship Act (20 U.S.C.
2002(4)) is amended by striking ``1201(a)'' and
inserting ``101''.
(E) Tech-prep education.--Section 347(2)(A) of the
Carl D. Perkins Vocational and Applied Technology
Education Act (20 U.S.C. 2394e(2)(A)) is amended by
striking ``1201(a)'' and inserting ``101''.
(F) Education for economic security.--Section 3(6)
of the Education for Economic Security Act (20 U.S.C.
3902(6)) is amended by striking ``1201(a)'' and
inserting ``101''.
(G) James madison memorial fellowships.--Section 815
of the James Madison Memorial Fellowship Act (20 U.S.C.
4514) is amended--
(i) in paragraph (3), by striking ``1201(a)''
and inserting ``101''; and
(ii) in paragraph (4), by striking ``1201(d)
of the Higher Education Act of 1965'' and
inserting ``14101 of the Elementary and Secondary
Education Act of 1965''.
(H) Barry goldwater scholarships.--Section 1403(4)
of the Barry Goldwater Scholarship and Excellence in
Education Act (20 U.S.C. 4702(4)) is amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
[[Page 112 STAT. 1619]]
(I) Morris k. udall scholarships.--Section 4(6) of
the Morris K. Udall Scholarship and Excellence in
National Environmental and Native American Public Policy
Act of 1992 (20 U.S.C. 5602(6)) is amended by striking
``1201(a)'' and inserting ``101''.
(J) Bilingual education, and language enhancement
and acquisition.--Section 7501(4) of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 7601(4)) is
amended by striking ``1201(a)'' and inserting ``101''.
(K) General definitions.--Section 14101(17) of the
Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801(17)) is amended by striking ``1201(a)'' and
inserting ``101''.
(L) National education statistics.--Section
402(c)(3) of the National Education Statistics Act of
1994 (20 U.S.C. 9001(c)(3)) is amended by striking
``1201(a)'' and inserting ``101''.
(7) Foreign relations.--
(A) Environment and sustainable development exchange
program.--Section 240(d) of the Foreign Relations
Authorization Act, Fiscal Years 1994 and 1995 (22 U.S.C.
2452 note) is amended by striking ``1201(a)'' and
inserting ``101''.
(B) Samantha smith memorial exchange program.--
Section 112(a)(8) of the Mutual Educational and Cultural
Exchange Act of 1961 (22 U.S.C. 2460(a)(8)) is amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(C) Soviet-eastern european training.--Section
803(1) of the Soviet-Eastern European Research and
Training Act of 1983 (22 U.S.C. 4502(1)) is amended by
striking ``1201(a)'' and inserting ``101''.
(D) Developing country scholarships.--Section 603(d)
of the Foreign Relations Authorization Act, Fiscal Years
1986 and 1987 (22 U.S.C. 4703(d)) is amended by striking
``1201(a)'' and inserting ``101''.
(8) Indians.--
(A) Snyder act.--The last paragraph of section 410
of the Act entitled ``An Act authorizing appropriations
and expenditures for the administration of Indian
Affairs, and for other purposes'', approved November 2,
1921 (25 U.S.C. 13) (commonly known as the Snyder Act)
is amended by striking ``1201'' and inserting ``101''.
(B) Tribally controlled community college
assistance.--Section 2(a)(5) of the Tribally Controlled
Community College Assistance Act (25 U.S.C. 1801(a)(5))
is amended by striking ``1201(a)'' and inserting
``101''.
(C) Construction of new facilities.--Section
113(b)(2) of the Tribally Controlled Community College
Assistance Act (25 U.S.C. 1813(b)(2)) is amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(D) American indian teacher training.--Section
1371(a)(1)(B) of the Higher Education Amendments of 1992
(25 U.S.C. 3371(a)(1)(B)) is amended by striking
``1201(a)'' and inserting ``101''.
(9) Labor.--
[[Page 112 STAT. 1620]]
(A) Rehabilitation definitions.--Section 6(23) of
the Rehabilitation Act of 1973 (29 U.S.C. 705(23)) is
amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(B) Technology related assistance for individuals
with disabilities act of 1988.--Section 3(8) of the
Technology Related Assistance for Individuals with
Disabilities Act of 1988 (29 U.S.C. 2202(8)) is amended
by striking ``1201(a) of the Higher Education Act of
1965 (20 U.S.C. 1141(a))'' and inserting ``101 of the
Higher Education Act of 1965''.
(10) Surface mining control.--Section 701(32) of the Surface
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1291(32))
is amended by striking ``1201(a)'' and inserting ``101''.
(11) Pollution prevention.--Section 112(a)(1) of the Federal
Water Pollution Control Act (33 U.S.C. 1262(a)(1)) is amended by
striking ``1201'' and inserting ``101''.
(12) Postal service.--Section 3626(b)(3) of title 39, United
States Code, is amended--
(A) by striking ``1201(a)'' and inserting ``101'';
and
(B) by striking ``(20 U.S.C. 1141(a))''.
(13) Public health and welfare.--
(A) Public health service act.--Section 705(a)(2)(C)
of the Public Health Service Act (42 U.S.C.
292d(a)(2)(C)) is amended by striking ``section 481(a)''
and inserting ``section 102(a)''.
(B) Scientific and technical education.--Section
3(g) of the Scientific and Advanced-Technology Act of
1992 (42 U.S.C. 1862i(g)) is amended--
(i) in paragraph (2)--
(I) by striking ``1201(a)'' and
inserting ``101''; and
(II) by striking ``(20 U.S.C.
1141(a))''; and
(ii) in paragraph (3)--
(I) by striking ``1201(a)'' and
inserting ``101''; and
(II) by striking ``(20 U.S.C.
1141(a))''.
(C) Older americans.--Section 102(32) of the Older
Americans Act of 1965 (42 U.S.C. 3002(32)) is amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(D) Justice system improvement.--Section 901(17) of
the Omnibus Crime Control and Safe Streets Act of 1968
(42 U.S.C. 3791(17)) is amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(E) Energy technology commercialization services
program.--Section 362(f )(5)(A) of the Energy Policy and
Conservation Act (42 U.S.C. 6322(f )(5)(A)) is amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(F) Environmental restoration and waste
management.--Section 3132(b)(1) of the National Defense
Authorization Act for Fiscal Years 1992 and 1993 (42
U.S.C. 7274e(b)(1)) is amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
[[Page 112 STAT. 1621]]
(G) Head start.--Section 649(c)(3) of the Head Start
Act (42 U.S.C. 9844(c)(3)) is amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(H) State dependent care development grants.--
Section 670G(5) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9877(5)) is amended by
striking ``1201(a)'' and inserting ``101''.
(I) Instructional activities for low-income youth.--
The matter preceding subparagraph (A) of section
682(b)(1) of the Community Services Block Grant Act (42
U.S.C. 9910c(b)(1)) is amended by striking ``1201(a)''
and inserting ``101''.
(J) Drug abuse education.--Section 3601(7) of the
Anti-Drug Abuse Act of 1988 (42 U.S.C. 11851(7)) is
amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(K) National and community service.--Section 101(13)
of the National and Community Service Act of 1990 (42
U.S.C. 12511(13)) is amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(L) Civilian community corps.--Section 166(6) of the
National and Community Service Act of 1990 (42 U.S.C.
12626(6)) is amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(M) Cranston-gonzalez national affordable housing
act.--Section 457(9) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12899f(9)) is amended
by striking ``1201(a)'' and inserting ``101''.
(N) Community schools youth services and supervision
grant program.--The definition of public school in
section 30401(b) of the Community Schools Youth Services
and Supervision Grant Program Act of 1994 (42 U.S.C.
13791(b)) is amended--
(i) by striking ``1201'' each place the term
appears and inserting ``101''; and
(ii) by striking ``(20 U.S.C. 1141(i))''.
(O) Police corps.--The definition of institution of
higher education in section 200103 of the Police Corps
Act (42 U.S.C. 14092) is amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(P) Law enforcement scholarship program.--The
definition of institution of higher education in section
200202 of the Law Enforcement Scholarship and
Recruitment Act (42 U.S.C. 14111) is amended--
(i) by striking ``1201(a)'' and inserting
``101''; and
(ii) by striking ``(20 U.S.C. 1141(a))''.
(14) Telecommunications.--Section 223(h)(4) of the
Telecommunications Act of 1934 (47 U.S.C. 223(h)(4)) is
amended--
(A) by striking ``1201'' and inserting ``101''; and
(B) by striking ``(20 U.S.C. 1141)''.
[[Page 112 STAT. 1622]]
(15) War and national defense.--Section 808(3) of the David
L. Boren National Security Education Act of 1991 (50 U.S.C.
1908(3)) is amended--
(A) by striking ``1201(a)'' and inserting ``101'';
and
(B) by striking ``(20 U.S.C. 1141(a))''.
(b) Internal Cross References.--The Act (20 U.S.C. 1001 et seq.) is
amended--
(1) in section 402A(c)(2) (20 U.S.C. 1070a-11(c)(2)), by
striking ``1210'' and inserting ``118'';
(2) in section 435(a) (20 U.S.C. 1085(a)), by striking
``section 481'' and inserting ``section 102'';
(3) in section 485(f )(1)(I) (20 U.S.C. 1092(f )(1)(I)), by
striking ``1213'' and inserting ``120'';
(4) in section 487(d) (20 U.S.C. 1094(d)), by striking
``section 481'' and inserting ``section 102'';
(5) in subsections ( j) and (k) of section 496 (20 U.S.C.
1099b), by striking ``section 481'' each place the term appears
and inserting ``section 102'';
(6) in section 498(i) (20 U.S.C. 1099c) is amended by
striking ``section 481'' and inserting ``section 102'';
(7) in section 498( j) (20 U.S.C. 1099c( j))--
(A) in paragraph (1), by striking ``sections
481(b)(5) and 481(c)(3)'' and inserting ``sections
102(b)(1)(E) and 102(c)(1)(C)''; and
(B) in paragraph (2), by striking ``1201(a)(2)'' and
inserting ``101(a)(2)''; and
(8) in section 631(a)(8) (20 U.S.C. 1132(a)(8))--
(A) by striking ``section 1201(a)'' each place the
term appears and inserting ``section 101''; and
(B) by striking ``of 1201(a)'' and inserting ``of
section 101''.
(c) Additional Conforming Amendments Correcting
References to Section 481.--
(1) School-to-work opportunities act of 1994.--Section 4 of
the School-to-Work Opportunities Act of 1994 (20 U.S.C. 6103) is
amended--
(A) in paragraph (11)(B)(viii), by striking
``section 481(b)'' and inserting ``section 102(b)''; and
(B) in paragraph (12), by striking ``section 481''
and inserting ``section 102''.
(2) National and community service act of 1990.--
Section 148(g) of the National and Community Service Act of 1990
(42 U.S.C. 12604(g)) is amended by striking ``section 481(a) of
the Higher Education Act of 1965 (20 U.S.C. 1088(a))'' and
inserting ``section 102 of the Higher Education Act of 1965''.
(d) Workforce Investment Act of 1998.--The Workforce Investment Act
of 1998 is amended--
(1) in section 101(35) (29 U.S.C. 2801(35)), by striking
``section 481 of the Higher Education Act of 1965 (20 U.S.C.
1088)'' and inserting ``section 102 of the Higher Education Act
of 1965''; and
(2) in section 203(11) (20 U.S.C. 9202(11)), by striking
``section 1201 of the Higher Education Act of 1965 (20 U.S.C.
1141)'' and inserting ``section 101 of the Higher Education Act
of 1965''.
[[Page 112 STAT. 1623]]
TITLE II--TEACHER QUALITY
SEC. 201. TEACHER QUALITY ENHANCEMENT GRANTS.
The Act is amended by inserting after title I (20 U.S.C. 1001 et
seq.) the following:
``TITLE II--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND
PARTNERSHIPS
``SEC. 201. PURPOSES; DEFINITIONS. <<NOTE: 20 USC 1021.>>
``(a) Purposes.--The purposes of this title are to--
``(1) improve student achievement;
``(2) improve the quality of the current and future teaching
force by improving the preparation of prospective teachers and
enhancing professional development activities;
``(3) hold institutions of higher education accountable for
preparing teachers who have the necessary teaching skills and
are highly competent in the academic content areas in which the
teachers plan to teach, such as mathematics, science, English,
foreign languages, history, economics, art, civics, Government,
and geography, including training in the effective uses of
technology in the classroom; and
``(4) recruit highly qualified individuals, including
individuals from other occupations, into the teaching force.
``(b) Definitions.--In this title:
``(1) Arts and sciences.--The term `arts and sciences'
means--
``(A) when referring to an organizational unit of an
institution of higher education, any academic unit that
offers 1 or more academic majors in disciplines or
content areas corresponding to the academic subject
matter areas in which teachers provide instruction; and
``(B) when referring to a specific academic subject
matter area, the disciplines or content areas in which
academic majors are offered by the arts and science
organizational unit.
``(2) High need local educational agency.--The term `high
need local educational agency' means a local educational agency
that serves an elementary school or secondary school located in
an area in which there is--
``(A) a high percentage of individuals from families
with incomes below the poverty line;
``(B) a high percentage of secondary school teachers
not teaching in the content area in which the teachers
were trained to teach; or
``(C) a high teacher turnover rate.
``(3) Poverty line.--The term `poverty line' means the
poverty line (as defined by the Office of Management and Budget,
and revised annually in accordance with section 673(2) of the
Community Services Block Grant Act (42 U.S.C. 9902(2)))
applicable to a family of the size involved.
[[Page 112 STAT. 1624]]
``SEC. 202. STATE GRANTS. <<NOTE: 20 USC 1022.>>
``(a) In General.--From amounts made available under section 210(1)
for a fiscal year, the Secretary is authorized to award grants under
this section, on a competitive basis, to eligible States to enable the
eligible States to carry out the activities described in subsection (d).
``(b) Eligible State.--
``(1) Definition.--In this title, the term `eligible State'
means--
``(A) the Governor of a State; or
``(B) in the case of a State for which the
constitution or law of such State designates another
individual, entity, or agency in the State to be
responsible for teacher certification and preparation
activity, such individual, entity, or agency.
``(2) Consultation.--The Governor and the individual,
entity, or agency designated under paragraph (1) shall consult
with the Governor, State board of education, State educational
agency, or State agency for higher education, as appropriate,
with respect to the activities assisted under this section.
``(3) Construction.--Nothing in this subsection shall be
construed to negate or supersede the legal authority under State
law of any State agency, State entity, or State public official
over programs that are under the jurisdiction of the agency,
entity, or official.
``(c) Application.--To be eligible to receive a grant under this
section, an eligible State shall, at the time of the initial grant
application, submit an application to the Secretary that--
``(1) meets the requirement of this section;
``(2) includes a description of how the eligible State
intends to use funds provided under this section; and
``(3) contains such other information and assurances as the
Secretary may require.
``(d) Uses of Funds.--An eligible State that receives a grant under
this section shall use the grant funds to reform teacher preparation
requirements, and to ensure that current and future teachers possess the
necessary teaching skills and academic content knowledge in the subject
areas in which the teachers are assigned to teach, by carrying out 1 or
more of the following activities:
``(1) Reforms.--Implementing reforms that hold institutions
of higher education with teacher preparation programs
accountable for preparing teachers who are highly competent in
the academic content areas in which the teachers plan to teach,
and possess strong teaching skills, which may include the use of
rigorous subject matter competency tests and the requirement
that a teacher have an academic major in the subject area, or
related discipline, in which the teacher plans to teach.
``(2) Certification or licensure requirements.--Reforming
teacher certification or licensure requirements to ensure that
teachers have the necessary teaching skills and academic content
knowledge in the subject areas in which teachers are assigned to
teach.
``(3) Alternatives to traditional preparation for
teaching.--Providing prospective teachers with alternatives to
[[Page 112 STAT. 1625]]
traditional preparation for teaching through programs at
colleges of arts and sciences or at nonprofit educational
organizations.
``(4) Alternative routes to state certification.--
Carrying out programs that--
``(A) include support during the initial teaching
experience; and
``(B) establish, expand, or improve alternative
routes to State certification of teachers for highly
qualified individuals, including mid-career
professionals from other occupations, paraprofessionals,
former military personnel and recent college graduates
with records of academic distinction.
``(5) Recruitment; pay; removal.--Developing and
implementing effective mechanisms to ensure that local
educational agencies and schools are able to effectively recruit
highly qualified teachers, to financially reward those teachers
and principals whose students have made significant progress
toward high academic performance, such as through performance-
based compensation systems and access to ongoing professional
development opportunities for teachers and administrators, and
to expeditiously remove incompetent or unqualified teachers
consistent with procedures to ensure due process for the
teachers.
``(6) Social promotion.--Development and implementation of
efforts to address the problem of social promotion and to
prepare teachers to effectively address the issues raised by
ending the practice of social promotion.
``(7) Recruitment.--Activities described in section 204(d).
``SEC. 203. PARTNERSHIP GRANTS. <<NOTE: 20 USC 1023.>>
``(a) Grants.--From amounts made available under section 210(2) for
a fiscal year, the Secretary is authorized to award grants under this
section, on a competitive basis, to eligible partnerships to enable the
eligible partnerships to carry out the activities described in
subsections (d) and (e).
``(b) Definitions.--
``(1) Eligible partnerships.--In this title, the term
`eligible partnerships' means an entity that--
``(A) shall include--
``(i) a partner institution;
``(ii) a school of arts and sciences; and
``(iii) a high need local educational agency;
and
``(B) may include a Governor, State educational
agency, the State board of education, the State agency
for higher education, an institution of higher education
not described in subparagraph (A), a public charter
school, a public or private elementary school or
secondary school, a public or private nonprofit
educational organization, a business, a teacher
organization, or a prekindergarten program.
``(2) Partner institution.--In this section, the term
`partner institution' means a private independent or State-
supported public institution of higher education, the teacher
training program of which demonstrates that--
``(A) graduates from the teacher training program
exhibit strong performance on State-determined
qualifying assessments for new teachers through--
[[Page 112 STAT. 1626]]
``(i) demonstrating that 80 percent or more of
the graduates of the program who intend to enter
the field of teaching have passed all of the
applicable State qualification assessments for new
teachers, which shall include an assessment of
each prospective teacher's subject matter
knowledge in the content area or areas in which
the teacher intends to teach; or
``(ii) being ranked among the highest-
performing teacher preparation programs in the
State as determined by the State--
``(I) using criteria consistent with
the requirements for the State report
card under section 207(b); and
``(II) using the State report card
on teacher preparation required under
section 207(b), after the first
publication of such report card and for
every year thereafter; or
``(B) the teacher training program requires all the
students of the program to participate in intensive
clinical experience, to meet high academic standards,
and--
``(i) in the case of secondary school
candidates, to successfully complete an academic
major in the subject area in which the candidate
intends to teach or to demonstrate competence
through a high level of performance in relevant
content areas; and
``(ii) in the case of elementary school
candidates, to successfully complete an academic
major in the arts and sciences or to demonstrate
competence through a high level of performance in
core academic subject areas.
``(c) Application.--Each eligible partnership desiring a grant under
this section shall submit an application to the Secretary at such time,
in such manner, and accompanied by such information as the Secretary may
require. Each such application shall--
``(1) contain a needs assessment of all the partners with
respect to teaching and learning and a description of how the
partnership will coordinate with other teacher training or
professional development programs, and how the activities of the
partnership will be consistent with State, local, and other
education reform activities that promote student achievement;
``(2) contain a resource assessment that describes the
resources available to the partnership, the intended use of the
grant funds, including a description of how the grant funds will
be fairly distributed in accordance with subsection (f ), and
the commitment of the resources of the partnership to the
activities assisted under this title, including financial
support, faculty participation, time commitments, and
continuation of the activities when the grant ends; and
``(3) contain a description of--
``(A) how the partnership will meet the purposes of
this title;
``(B) how the partnership will carry out the
activities required under subsection (d) and any
permissible activities under subsection (e); and
``(C) the partnership's evaluation plan pursuant to
section 206(b).
[[Page 112 STAT. 1627]]
``(d) Required Uses of Funds.--An eligible partnership that receives
a grant under this section shall use the grant funds to carry out the
following activities:
``(1) Reforms.--Implementing reforms within teacher
preparation programs to hold the programs accountable for
preparing teachers who are highly competent in the academic
content areas in which the teachers plan to teach, and for
promoting strong teaching skills, including working with a
school of arts and sciences and integrating reliable research-
based teaching methods into the curriculum, which curriculum
shall include programs designed to successfully integrate
technology into teaching and learning.
``(2) Clinical experience and interaction.--Providing
sustained and high quality preservice clinical experience
including the mentoring of prospective teachers by veteran
teachers, and substantially increasing interaction between
faculty at institutions of higher education and new and
experienced teachers, principals, and other administrators at
elementary schools or secondary schools, and providing support,
including preparation time, for such interaction.
``(3) Professional development.--Creating opportunities for
enhanced and ongoing professional development that improves the
academic content knowledge of teachers in the subject areas in
which the teachers are certified to teach or in which the
teachers are working toward certification to teach, and that
promotes strong teaching skills.
``(e) Allowable Uses of Funds.--An eligible partnership that
receives a grant under this section may use such funds to carry out the
following activities:
``(1) Teacher preparation and parent involvement.--Preparing
teachers to work with diverse student populations, including
individuals with disabilities and limited English proficient
individuals, and involving parents in the teacher preparation
program reform process.
``(2) Dissemination and coordination.--Broadly disseminating
information on effective practices used by the partnership, and
coordinating with the activities of the Governor, State board of
education, State higher education agency, and State educational
agency, as appropriate.
``(3) Managerial and leadership skills.--Developing and
implementing proven mechanisms to provide principals and
superintendents with effective managerial and leadership skills
that result in increased student achievement.
``(4) Teacher recruitment.--Activities described in section
204(d).
``(f ) Special Rule.--No individual member of an eligible
partnership shall retain more than 50 percent of the funds made
available to the partnership under this section.
``(g) Construction.--Nothing in this section shall be construed to
prohibit an eligible partnership from using grant funds to coordinate
with the activities of more than one Governor, State board of education,
State educational agency, local educational agency, or State agency for
higher education.
``SEC. 204. TEACHER RECRUITMENT GRANTS. <<NOTE: 20 USC 1024.>>
``(a) Program Authorized.--From amounts made available under section
210(3) for a fiscal year, the Secretary is authorized
[[Page 112 STAT. 1628]]
to award grants, on a competitive basis, to eligible applicants to
enable the eligible applicants to carry out activities described in
subsection (d).
``(b) Eligible Applicant Defined.--In this title, the term `eligible
applicant' means--
``(1) an eligible State described in section 202(b); or
``(2) an eligible partnership described in section 203(b).
``(c) Application.--Any eligible applicant desiring to receive a
grant under this section shall submit an application to the Secretary at
such time, in such form, and containing such information as the
Secretary may require, including--
``(1) a description of the assessment that the eligible
applicant, and the other entities with whom the eligible
applicant will carry out the grant activities, have undertaken
to determine the most critical needs of the participating high-
need local educational agencies;
``(2) a description of the activities the eligible applicant
will carry out with the grant; and
``(3) a description of the eligible applicant's plan for
continuing the activities carried out with the grant, once
Federal funding ceases.
``(d) Uses of Funds.--Each eligible applicant receiving a grant
under this section shall use the grant funds--
``(1)(A) to award scholarships to help students pay the
costs of tuition, room, board, and other expenses of completing
a teacher preparation program;
``(B) to provide support services, if needed to enable
scholarship recipients to complete postsecondary education
programs; and
``(C) for followup services provided to former scholarship
recipients during the recipients first 3 years of teaching; or
``(2) to develop and implement effective mechanisms to
ensure that high need local educational agencies and schools are
able to effectively recruit highly qualified teachers.
``(e) Service Requirements.--The Secretary shall establish such
requirements as the Secretary finds necessary to ensure that recipients
of scholarships under this section who complete teacher education
programs subsequently teach in a high-need local educational agency, for
a period of time equivalent to the period for which the recipients
receive scholarship assistance, or repay the amount of the scholarship.
The Secretary shall use any such repayments to carry out additional
activities under this section.
``SEC. 205. ADMINISTRATIVE PROVISIONS. <<NOTE: 20 USC 1025.>>
``(a) Duration; One-Time Awards; Payments.--
``(1) Duration.--
``(A) Eligible states and eligible applicants.--
Grants awarded to eligible States and eligible
applicants under this title shall be awarded for a
period not to exceed 3 years.
``(B) Eligible partnerships.--Grants awarded to
eligible partnerships under this title shall be awarded
for a period of 5 years.
``(2) One-time award.--An eligible State and an eligible
partnership may receive a grant under each of sections 202, 203,
and 204 only once.
[[Page 112 STAT. 1629]]
``(3) Payments.--The Secretary shall make annual payments of
grant funds awarded under this part.
``(b) Peer Review.--
``(1) Panel.--The Secretary shall provide the applications
submitted under this title to a peer review panel for
evaluation. With respect to each application, the peer review
panel shall initially recommend the application for funding or
for disapproval.
``(2) Priority.--In recommending applications to the
Secretary for funding under this title, the panel shall--
``(A) with respect to grants under section 202, give
priority to eligible States serving States that--
``(i) have initiatives to reform State teacher
certification requirements that are designed to
ensure that current and future teachers possess
the necessary teaching skills and academic content
knowledge in the subject areas in which the
teachers are certified or licensed to teach;
``(ii) include innovative reforms to hold
institutions of higher education with teacher
preparation programs accountable for preparing
teachers who are highly competent in the academic
content area in which the teachers plan to teach
and have strong teaching skills; or
``(iii) involve the development of innovative
efforts aimed at reducing the shortage of highly
qualified teachers in high poverty urban and rural
areas;
``(B) with respect to grants under section 203--
``(i) give priority to applications from
eligible partnerships that involve businesses; and
``(ii) take into consideration--
``(I) providing an equitable
geographic distribution of the grants
throughout the United States; and
``(II) the potential of the proposed
activities for creating improvement and
positive change.
``(3) Secretarial selection.--The Secretary shall determine,
based on the peer review process, which application shall
receive funding and the amounts of the grants. In determining
grant amounts, the Secretary shall take into account the total
amount of funds available for all grants under this title and
the types of activities proposed to be carried out.
``(c) Matching Requirements.--
``(1) State grants.--Each eligible State receiving a grant
under section 202 or 204 shall provide, from non-Federal
sources, an amount equal to 50 percent of the amount of the
grant (in cash or in kind) to carry out the activities supported
by the grant.
``(2) Partnership grants.--Each eligible partnership
receiving a grant under section 203 or 204 shall provide, from
non-Federal sources (in cash or in kind), an amount equal to 25
percent of the grant for the first year of the grant, 35 percent
of the grant for the second year of the grant, and 50 percent of
the grant for each succeeding year of the grant.
``(d) Limitation on Administrative Expenses.--An eligible State or
eligible partnership that receives a grant under this title may not use
more than 2 percent of the grant funds for purposes of administering the
grant.
[[Page 112 STAT. 1630]]
``(e) Teacher Qualifications Provided to Parents Upon Request.--Any
local educational agency or school that benefits from the activities
assisted under this title shall make available, upon request and in an
understandable and uniform format, to any parent of a student attending
any school served by the local educational agency, information regarding
the qualification of the student's classroom teacher with regard to the
subject matter in which the teacher provides instruction. The local
educational agency shall inform parents that the parents are entitled to
receive the information upon request.
``SEC. 206. ACCOUNTABILITY AND EVALUATION. <<NOTE: 20 USC 1026.>>
``(a) State Grant Accountability Report.--An eligible State that
receives a grant under section 202 shall submit an annual accountability
report to the Secretary, the Committee on Labor and Human Resources of
the Senate, and the Committee on Education and the Workforce of the
House of Representatives. Such report shall include a description of the
degree to which the eligible State, in using funds provided under such
section, has made substantial progress in meeting the following goals:
``(1) Student achievement.--Increasing student achievement
for all students as defined by the eligible State.
``(2) Raising standards.--Raising the State academic
standards required to enter the teaching profession, including,
where appropriate, through the use of incentives to incorporate
the requirement of an academic major in the subject, or related
discipline, in which the teacher plans to teach.
``(3) Initial certification or licensure.--Increasing
success in the pass rate for initial State teacher certification
or licensure, or increasing the numbers of highly qualified
individuals being certified or licensed as teachers through
alternative programs.
``(4) Core academic subjects.--
``(A) Secondary school classes.--Increasing the
percentage of secondary school classes taught in core
academic subject areas by teachers--
``(i) with academic majors in those areas or
in a related field;
``(ii) who can demonstrate a high level of
competence through rigorous academic subject area
tests; or
``(iii) who can demonstrate competence through
a high level of performance in relevant content
areas.
``(B) Elementary school classes.--Increasing the
percentage of elementary school classes taught by
teachers--
``(i) with academic majors in the arts and
sciences; or
``(ii) who can demonstrate competence through
a high level of performance in core academic
subjects.
``(5) Decreasing teacher shortages.--Decreasing shortages of
qualified teachers in poor urban and rural areas.
``(6) Increasing opportunities for professional
development.--Increasing opportunities for enhanced and ongoing
professional development that improves the academic content
knowledge of teachers in the subject areas in which the teachers
are certified or licensed to teach or in which the teachers
[[Page 112 STAT. 1631]]
are working toward certification or licensure to teach, and that
promotes strong teaching skills.
``(7) Technology integration.--Increasing the number of
teachers prepared to integrate technology in the classroom.
``(b) Eligible Partnership Evaluation.--Each eligible partnership
receiving a grant under section 203 shall establish and include in the
application submitted under section 203(c), an evaluation plan that
includes strong performance objectives. The plan shall include
objectives and measures for--
``(1) increased student achievement for all students as
measured by the partnership;
``(2) increased teacher retention in the first 3 years of a
teacher's career;
``(3) increased success in the pass rate for initial State
certification or licensure of teachers; and
``(4) increased percentage of secondary school classes
taught in core academic subject areas by teachers--
``(A) with academic majors in the areas or in a
related field; and
``(B) who can demonstrate a high level of competence
through rigorous academic subject area tests or who can
demonstrate competence through a high level of
performance in relevant content areas;
``(5) increasing the percentage of elementary school classes
taught by teachers with academic majors in the arts and sciences
or who demonstrate competence through a high level of
performance in core academic subject areas; and
``(6) increasing the number of teachers trained in
technology.
``(c) Revocation of Grant.--
``(1) Report.--Each eligible State or eligible partnership
receiving a grant under this title shall report annually on the
progress of the eligible State or eligible partnership toward
meeting the purposes of this title and the goals, objectives,
and measures described in subsections (a) and (b).
``(2) Revocation.--
``(A) Eligible states and eligible applicants.--If
the Secretary determines that an eligible State or
eligible applicant is not making substantial progress in
meeting the purposes, goals, objectives, and measures,
as appropriate, by the end of the second year of a grant
under this title, then the grant payment shall not be
made for the third year of the grant.
``(B) Eligible partnerships.--If the Secretary
determines that an eligible partnership is not making
substantial progress in meeting the purposes, goals,
objectives, and measures, as appropriate, by the end of
the third year of a grant under this title, then the
grant payments shall not be made for any succeeding year
of the grant.
``(d) Evaluation and Dissemination.--The Secretary shall evaluate
the activities funded under this title and report the Secretary's
findings regarding the activities to the Committee on Labor and Human
Resources of the Senate and the Committee on Education and the Workforce
of the House of Representatives. The Secretary shall broadly disseminate
successful practices developed by eligible States and eligible
partnerships under this title, and
[[Page 112 STAT. 1632]]
shall broadly disseminate information regarding such practices that were
found to be ineffective.
``SEC. 207. <<NOTE: 20 USC 1027.>> ACCOUNTABILITY FOR PROGRAMS THAT
PREPARE TEACHERS.
``(a) <<NOTE: Deadline.>> Development of Definitions and Reporting
Methods.--Within 9 months of the date of enactment of the Higher
Education Amendments of 1998, the Commissioner of the National Center
for Education Statistics, in consultation with States and institutions
of higher education, shall develop key definitions for terms, and
uniform reporting methods (including the key definitions for the
consistent reporting of pass rates), related to the performance of
elementary school and secondary school teacher preparation programs.
``(b) State Report Card on the Quality of Teacher Preparation.--Each
State that receives funds under this Act shall provide to the Secretary,
within 2 years of the date of enactment of the Higher Education
Amendments of 1998, and annually thereafter, in a uniform and
comprehensible manner that conforms with the definitions and methods
established in subsection (a), a State report card on the quality of
teacher preparation in the State, which shall include at least the
following:
``(1) A description of the teacher certification and
licensure assessments, and any other certification and licensure
requirements, used by the State.
``(2) The standards and criteria that prospective teachers
must meet in order to attain initial teacher certification or
licensure and to be certified or licensed to teach particular
subjects or in particular grades within the State.
``(3) A description of the extent to which the assessments
and requirements described in paragraph (1) are aligned with the
State's standards and assessments for students.
``(4) The percentage of teaching candidates who passed each
of the assessments used by the State for teacher certification
and licensure, and the passing score on each assessment that
determines whether a candidate has passed that assessment.
``(5) The percentage of teaching candidates who passed each
of the assessments used by the State for teacher certification
and licensure, disaggregated and ranked, by the teacher
preparation program in that State from which the teacher
candidate received the candidate's most recent degree, which
shall be made available widely and publicly.
``(6) Information on the extent to which teachers in the
State are given waivers of State certification or licensure
requirements, including the proportion of such teachers
distributed across high- and low-poverty school districts and
across subject areas.
``(7) A description of each State's alternative routes to
teacher certification, if any, and the percentage of teachers
certified through alternative certification routes who pass
State teacher certification or licensure assessments.
``(8) For each State, a description of proposed criteria for
assessing the performance of teacher preparation programs within
institutions of higher education in the State, including
indicators of teacher candidate knowledge and skills.
[[Page 112 STAT. 1633]]
``(9) Information on the extent to which teachers or
prospective teachers in each State are required to take
examinations or other assessments of their subject matter
knowledge in the area or areas in which the teachers provide
instruction, the standards established for passing any such
assessments, and the extent to which teachers or prospective
teachers are required to receive a passing score on such
assessments in order to teach in specific subject areas or grade
levels.
``(c) Initial Report.--
``(1) <<NOTE: Deadline.>> In general.--Each State that
receives funds under this Act, not later than 6 months of the
date of enactment of the Higher Education Amendments of 1998 and
in a uniform and comprehensible manner, shall submit to the
Secretary the information described in paragraphs (1), (5), and
(6) of subsection (b). <<NOTE: Records.>> Such information shall
be compiled by the Secretary and submitted to the Committee on
Labor and Human Resources of the Senate and the Committee on
Education and the Workforce of the House of Representatives not
later than 9 months after the date of enactment of the Higher
Education Amendments of 1998.
``(2) Construction.--Nothing in this subsection shall be
construed to require a State to gather information that is not
in the possession of the State or the teacher preparation
programs in the State, or readily available to the State or
teacher preparation programs.
``(d) Report of the Secretary on the Quality of Teacher
Preparation.--
``(1) <<NOTE: Publication. Public information.>> Report
card.--The Secretary shall provide to Congress, and publish and
make widely available, a report card on teacher qualifications
and preparation in the United States, including all the
information reported in paragraphs (1) through (9) of subsection
(b). Such report shall identify States for which eligible States
and eligible partnerships received a grant under this title.
Such report shall be so provided, published and made available
not later than 2 years 6 months after the date of enactment of
the Higher Education Amendments of 1998 and annually thereafter.
``(2) Report to congress.--The Secretary shall report to
Congress--
``(A) a comparison of States' efforts to improve
teaching quality; and
``(B) regarding the national mean and median scores
on any standardized test that is used in more than 1
State for teacher certification or licensure.
``(3) <<NOTE: Records. Publication.>> Special rule.--In the
case of teacher preparation programs with fewer than 10
graduates taking any single initial teacher certification or
licensure assessment during an academic year, the Secretary
shall collect and publish information with respect to an average
pass rate on State certification or licensure assessments taken
over a 3-year period.
``(e) <<NOTE: Records. Publication.>> Coordination.--The Secretary,
to the extent practicable, shall coordinate the information collected
and published under this title among States for individuals who took
State teacher certification or licensure assessments in a State other
than the State in which the individual received the individual's most
recent degree.
``(f ) Institutional Report Cards on the Quality of Teacher
Preparation.--
[[Page 112 STAT. 1634]]
``(1) <<NOTE: Deadline. Reports. Public
information.>> Report card.--Each institution of higher
education that conducts a teacher preparation program that
enrolls students receiving Federal assistance under this Act,
not later than 18 months after the date of enactment of the
Higher Education Amendments of 1998 and annually thereafter,
shall report to the State and the general public, in a uniform
and comprehensible manner that conforms with the definitions and
methods established under subsection (a), the following
information:
``(A) Pass rate.--(i) For the most recent year for
which the information is available, the pass rate of the
institution's graduates on the teacher certification or
licensure assessments of the State in which the
institution is located, but only for those students who
took those assessments within 3 years of completing the
program.
``(ii) A comparison of the program's pass rate with
the average pass rate for programs in the State.
``(iii) In the case of teacher preparation programs
with fewer than 10 graduates taking any single initial
teacher certification or licensure assessment during an
academic year, the institution shall collect and publish
information with respect to an average pass rate on
State certification or licensure assessments taken over
a 3-year period.
``(B) Program information.--The number of students
in the program, the average number of hours of
supervised practice teaching required for those in the
program, and the faculty-student ratio in supervised
practice teaching.
``(C) Statement.--In States that approve or accredit
teacher education programs, a statement of whether the
institution's program is so approved or accredited.
``(D) Designation as low-performing.--Whether the
program has been designated as low-performing by the
State under section 208(a).
``(2) Requirement.--The information described in paragraph
(1) shall be reported through publications such as school
catalogs and promotional materials sent to potential applicants,
secondary school guidance counselors, and prospective employers
of the institution's program graduates.
``(3) Fines.--In addition to the actions authorized in
section 487(c), the Secretary may impose a fine not to exceed
$25,000 on an institution of higher education for failure to
provide the information described in this subsection in a timely
or accurate manner.
``SEC. 208. STATE FUNCTIONS. <<NOTE: 20 USC 1028.>>
``(a) <<NOTE: Deadline. Procedures.>> .State Assessment.--In order
to receive funds under this Act, a State, not later than 2 years after
the date of enactment of the Higher Education Amendments of 1998, shall
have in place a procedure to identify, and assist, through the provision
of technical assistance, low-performing programs of teacher preparation
within institutions of higher education. <<NOTE: Records.>> Such State
shall provide the Secretary an annual list of such low-performing
institutions that includes an identification of those institutions at-
risk of being placed on such list. Such levels of performance shall be
determined solely by the State and may include criteria based upon
information collected pursuant to this title. Such assessment shall be
described in the report under section 207(b).
[[Page 112 STAT. 1635]]
``(b) Termination of Eligibility.--Any institution of higher
education that offers a program of teacher preparation in which the
State has withdrawn the State's approval or terminated the State's
financial support due to the low performance of the institution's
teacher preparation program based upon the State assessment described in
subsection (a)--
``(1) shall be ineligible for any funding for professional
development activities awarded by the Department of Education;
and
``(2) shall not be permitted to accept or enroll any student
that receives aid under title IV of this Act in the
institution's teacher preparation program.
``(c) Negotiated Rulemaking.--If the Secretary develops any
regulations implementing subsection (b)(2), the Secretary shall submit
such proposed regulations to a negotiated rulemaking process, which
shall include representatives of States, institutions of higher
education, and educational and student organizations.
``SEC. 209. GENERAL PROVISIONS. <<NOTE: 20 USC 1029.>>
``(a) Methods.--In complying with sections 207 and 208, the
Secretary shall ensure that States and institutions of higher education
use fair and equitable methods in reporting and that the reporting
methods protect the privacy of individuals.
``(b) Special Rule.--For each State in which there are no State
certification or licensure assessments, or for States that do not set
minimum performance levels on those assessments--
``(1) the Secretary shall, to the extent practicable,
collect data comparable to the data required under this title
from States, local educational agencies, institutions of higher
education, or other entities that administer such assessments to
teachers or prospective teachers; and
``(2) notwithstanding any other provision of this title, the
Secretary shall use such data to carry out requirements of this
title related to assessments or pass rates.
``(c) Limitations.--
``(1) Federal control prohibited.--Nothing in this title
shall be construed to permit, allow, encourage, or authorize any
Federal control over any aspect of any private, religious, or
home school, whether or not a home school is treated as a
private school or home school under State law. This section
shall not be construed to prohibit private, religious, or home
schools from participation in programs or services under this
title.
``(2) No change in state control encouraged or required.--
Nothing in this title shall be construed to encourage or require
any change in a State's treatment of any private, religious, or
home school, whether or not a home school is treated as a
private school or home school under State law.
``(3) National system of teacher certification prohibited.--
Nothing in this title shall be construed to permit, allow,
encourage, or authorize the Secretary to establish or support
any national system of teacher certification.
``SEC. 210. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 1030.>>
``There are authorized to be appropriated to carry out this title
$300,000,000 for fiscal year 1999 and such sums as may be necessary for
each of the 4 succeeding fiscal years, of which--
[[Page 112 STAT. 1636]]
``(1) 45 percent shall be available for each fiscal year to
award grants under section 202;
``(2) 45 percent shall be available for each fiscal year to
award grants under section 203; and
``(3) 10 percent shall be available for each fiscal year to
award grants under section 204.''.
TITLE III--INSTITUTIONAL AID
SEC. 301. TRANSFERS AND REDESIGNATIONS.
(a) In General.--The Higher Education Act of 1965 is
amended--
(1) by redesignating part D of title III (20 U.S.C. 1066 et
seq.) as part F of title III;
(2) <<NOTE: 20 USC 1066 et seq., 1068 et seq.>> by
redesignating sections 351, 352, 353, 354, 356, 357, 358, and
360 (20 U.S.C. 1066, 1067, 1068, 1069, 1069b, 1069c, 1069d, and
1069f) as sections 391, 392, 393, 394, 395, 396, 397, and 399,
respectively;
(3) <<NOTE: 20 USC 1132 et seq., 1066 et seq.>> by
transferring part B of title VII (20 U.S.C. 1132c et seq.) to
title III to follow part C of title III (20 U.S.C. 1065 et
seq.), and redesignating such part B as part D;
(4) <<NOTE: 20 USC 1132 et seq., 1066 et seq.>> by
redesignating sections 721 through 728 (20 U.S.C. 1132c and
1132c-7) as sections 341 through 348, respectively;
(5) <<NOTE: 20 USC 1135b et seq., 1067a et seq.>> by
transferring subparts 1 and 3 of part B of title X (20 U.S.C.
1135b et seq. and 1135d et seq.) to title III to follow part D
of title III (as redesignated by paragraph (3)), and
redesignating such subpart 3 as subpart 2;
(6) by inserting after part D of title III (as redesignated
by paragraph (3)) the following:
``PART E--MINORITY SCIENCE AND ENGINEERING IMPROVEMENT PROGRAM'';
(7) <<NOTE: 20 USC 1135b et seq., 1067a et seq.>> by
redesignating sections 1021 through 1023 (20 U.S.C. 1135b and
1135b-2), and sections 1041, 1042, 1043, 1044, 1046, and 1047
(20 U.S.C. 1135d, 1135d-1, 1135d-2, 1135d-3, 1135d-5, and 1135d-
6) as sections 351 through 353, and sections 361, 362, 363, 364,
365, and 366, respectively; and
(8) by repealing section 366 <<NOTE: 20 USC 1067l.>> (as
redesignated by paragraph (7)) (20 U.S.C. 1135d-6).
(b) Conforming Amendments.--Section 361 <<NOTE: 20 USC 1067g.>> (as
redesignated by subsection (a)(7)) (20 U.S.C. 1135d) is amended--
(1) in paragraph (1), by inserting ``and'' after the
semicolon;
(2) in paragraph (2), by striking ``; and'' and inserting a
period; and
(3) by striking paragraph (3).
(c) Cross References.--Title III (20 U.S.C. 1051 et seq.) is
amended--
(1) in section 311(b) (20 U.S.C. 1057(b)), by striking
``360(a)(1)'' and inserting ``399(a)(1)'';
(2) in section 312 (20 U.S.C. 1058)--
(A) in subsection (b)(1)(B), by striking ``352(b)''
and inserting ``392(b)''; and
(B) in subsection (c)(2), by striking ``352(a)'' and
inserting ``392(a)'';
[[Page 112 STAT. 1637]]
(3) in section 313(b) (20 U.S.C. 1059(b)), by striking
``354(a)(1)'' and inserting ``394(a)(1)'';
(4) in section 342 <<NOTE: 20 USC 1066a.>> (as redesignated
by subsection (a)(4)) (20 U.S.C. 1132c-1)--
(A) in paragraph (3), by striking ``723(b)'' and
inserting ``343(b)'';
(B) in paragraph (4), by striking ``723'' and
inserting ``343'';
(C) in the matter preceding subparagraph (A) of
paragraph (5), by striking ``724(b)'' and inserting
``344(b)'';
(D) in paragraph (8), by striking ``725(1)'' and
inserting ``345(1)''; and
(E) in paragraph (9), by striking ``727'' and
inserting ``347'';
(5) in section 343 <<NOTE: 20 USC 1066b.>> (as redesignated
by subsection (a)(4)) (20 U.S.C. 1132c-2)--
(A) in subsection (a), by striking ``724'' and
inserting ``344''; and
(B) in subsection (b)--
(i) in the matter preceding paragraph (1), by
striking ``725(1) and 726'' and inserting ``345(1)
and 346'';
(ii) in paragraph (10), by striking ``724''
and inserting ``344''; and
(iii) in subsection (d), by striking
``723(c)(1)'' and inserting ``343(c)(1)'';
(6) in section 345(2) <<NOTE: 20 USC 1066d.>> (as
redesignated by subsection (a)(4)) (20 U.S.C. 1132c-4(2)), by
striking ``723'' and inserting ``343'';
(7) in section 348 <<NOTE: 20 USC 1066g.>> (as redesignated
by subsection (a)(4)) (20 U.S.C. 1132c-7), by striking
``725(1)'' and inserting ``345(1)'';
(8) in section 353(a) <<NOTE: 20 USC 1067c.>> (as
redesignated by subsection (a)(7)) (20 U.S.C. 1135b-2(a))--
(A) in paragraph (1), by striking ``1046(6)'' and
inserting ``365(6)'';
(B) in paragraph (2), by striking ``1046(7)'' and
inserting ``365(7)'';
(C) in paragraph (3), by striking ``1046(8)'' and
inserting ``365(8)''; and
(D) in paragraph (4), by striking ``1046(9)'' and
inserting ``365(9)'';
(9) in section 361(1) <<NOTE: 20 USC 1067g.>> (as
redesignated by subsection (a)(7)) (20 U.S.C. 1135d(1)), by
striking ``1046(3)'' and inserting ``365(3)'';
(10) in section 362(a) <<NOTE: 20 USC 1067h.>> (as
redesignated by subsection (a)(7)) (20 U.S.C. 1135d-1(a))--
(A) in the matter preceding paragraph (1), by
striking ``1041'' and inserting ``361''; and
(B) in paragraph (1), by striking ``1021(b)'' and
inserting ``351(b)''; and
(11) in section 391(b)(6) <<NOTE: 20 USC 1068.>> (as
redesignated by subsection (a)(2)), by striking ``357'' and
inserting ``396''.
SEC. 302. FINDINGS.
Section 301(a) (20 U.S.C. 1051(a)) is amended--
(1) by redesignating paragraphs (3) through (7) as
paragraphs (4) through (8), respectively; and
(2) by inserting after paragraph (2) the following:
[[Page 112 STAT. 1638]]
``(3) in order to be competitive and provide a high-quality
education for all, institutions of higher education should
improve their technological capacity and make effective use of
technology;''.
SEC. 303. STRENGTHENING INSTITUTIONS.
(a) Grants.--Section 311 (20 U.S.C. 1057) is amended by
adding at the end the following:
``(c) Authorized Activities.--Grants awarded under this
section shall be used for 1 or more of the following activities:
``(1) Purchase, rental, or lease of scientific or laboratory
equipment for educational purposes, including instructional and
research purposes.
``(2) Construction, maintenance, renovation, and improvement
in classrooms, libraries, laboratories, and other instructional
facilities, including the integration of computer technology
into institutional facilities to create smart buildings.
``(3) Support of faculty exchanges, faculty development, and
faculty fellowships to assist in attaining advanced degrees in
the field of instruction of the faculty.
``(4) Development and improvement of academic programs.
``(5) Purchase of library books, periodicals, and other
educational materials, including telecommunications program
material.
``(6) Tutoring, counseling, and student service programs
designed to improve academic success.
``(7) Funds management, administrative management, and
acquisition of equipment for use in strengthening funds
management.
``(8) Joint use of facilities, such as laboratories and
libraries.
``(9) Establishing or improving a development office to
strengthen or improve contributions from alumni and the private
sector.
``(10) Establishing or improving an endowment fund.
``(11) Creating or improving facilities for Internet or
other distance learning academic instruction capabilities,
including purchase or rental of telecommunications technology
equipment or services.
``(12) Other activities proposed in the application
submitted pursuant to subsection (c) that--
``(A) contribute to carrying out the purposes of the
program assisted under this part; and
``(B) are approved by the Secretary as part of the
review and acceptance of such application.
``(d) Endowment Fund.--
``(1) In general.--An eligible institution may use not more
than 20 percent of the grant funds provided under this part to
establish or increase an endowment fund at such institution.
``(2) Matching requirement.--In order to be eligible to use
grant funds in accordance with paragraph (1), the eligible
institution shall provide matching funds from non-Federal
sources, in an amount equal to or greater than the Federal funds
used in accordance with paragraph (1), for the establishment or
increase of the endowment fund.
``(3) <<NOTE: Applicability.>> Comparability.--The
provisions of part C, regarding the establishment or increase of
an endowment fund, that
[[Page 112 STAT. 1639]]
the Secretary determines are not inconsistent with this
subsection, shall apply to funds used under paragraph (1).''.
(b) Endowment Fund Definition.--Section 312 (as amended by section
301(c)(2)) (20 U.S.C. 1058) is amended--
(1) by redesignating subsections (c) through (f ) as
subsections (d) through (g), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Endowment Fund.--For the purpose of this part, the term
`endowment fund' means a fund that--
``(1) is established by State law, by an institution of
higher education, or by a foundation that is exempt from Federal
income taxation;
``(2) is maintained for the purpose of generating income for
the support of the institution; and
``(3) does not include real estate.''.
(c) Duration of Grant.--Section 313 (20 U.S.C. 1059) is amended--
(1) in subsection (b), by inserting ``subsection (c) and a
grant under'' before ``section 394(a)(1)''; and
(2) by adding at the end the following:
``(d) Wait-Out-Period.--Each eligible institution that received a
grant under this part for a 5-year period shall not be eligible to
receive an additional grant under this part until 2 years after the date
on which the 5-year grant period terminates.''.
(d) Applications.--Title III is amended by striking section 314 (20
U.S.C. 1059a) and inserting the following:
``SEC. 314. APPLICATIONS. <<NOTE: 20 USC 1059a.>>
``Each eligible institution desiring to receive assistance under
this part shall submit an application in accordance with the
requirements of section 391.''.
(e) American Indian Tribally Controlled Colleges and Universities.--
Section 316 (20 U.S.C. 1059c) is amended to read as follows:
``SEC. 316. AMERICAN INDIAN TRIBALLY CONTROLLED COLLEGES AND
UNIVERSITIES.
``(a) Program Authorized.--The Secretary shall provide grants and
related assistance to Indian Tribal Colleges and Universities to enable
such institutions to improve and expand their capacity to serve Indian
students.
``(b) Definitions.--In this section:
``(1) Indian.--The term `Indian' has the meaning given the
term in section 2 of the Tribally Controlled College or
University Assistance Act of 1978.
``(2) Indian tribe.--The term `Indian tribe' has the meaning
given the term in section 2 of the Tribally Controlled College
or University Assistance Act of 1978.
``(3) Tribal college or university.--The term `Tribal
College or University' has the meaning give the term `tribally
controlled college or university' in section 2 of the Tribally
Controlled College or University Assistance Act of 1978, and
includes an institution listed in the Equity in Educational Land
Grant Status Act of 1994.
``(4) Institution of higher education.--The term
`institution of higher education' means an institution of higher
education as defined in section 101(a), except that paragraph
(2) of such section shall not apply.
[[Page 112 STAT. 1640]]
``(c) Authorized Activities.--
``(1) In general.--Grants awarded under this section shall
be used by Tribal Colleges or Universities to assist such
institutions to plan, develop, undertake, and carry out
activities to improve and expand such institutions' capacity to
serve Indian students.
``(2) Examples of authorized activities.--The activities
described in paragraph (1) may include--
``(A) purchase, rental, or lease of scientific or
laboratory equipment for educational purposes, including
instructional and research purposes;
``(B) construction, maintenance, renovation, and
improvement in classrooms, libraries, laboratories, and
other instructional facilities, including purchase or
rental of telecommunications technology equipment or
services;
``(C) support of faculty exchanges, faculty
development, and faculty fellowships to assist in
attaining advanced degrees in the faculty's field of
instruction;
``(D) academic instruction in disciplines in which
Indians are underrepresented;
``(E) purchase of library books, periodicals, and
other educational materials, including
telecommunications program material;
``(F) tutoring, counseling, and student service
programs designed to improve academic success;
``(G) funds management, administrative management,
and acquisition of equipment for use in strengthening
funds management;
``(H) joint use of facilities, such as laboratories
and libraries;
``(I) establishing or improving a development office
to strengthen or improve contributions from alumni and
the private sector;
``(J) establishing or enhancing a program of teacher
education designed to qualify students to teach in
elementary schools or secondary schools, with a
particular emphasis on teaching Indian children and
youth, that shall include, as part of such program,
preparation for teacher certification;
``(K) establishing community outreach programs that
encourage Indian elementary school and secondary school
students to develop the academic skills and the interest
to pursue postsecondary education; and
``(L) other activities proposed in the application
submitted pursuant to subsection (d) that--
``(i) contribute to carrying out the
activities described in subparagraphs (A) through
(K); and
``(ii) are approved by the Secretary as part
of the review and acceptance of such application.
``(3) Endowment fund.--
``(A) In general.--A Tribal College or University
may use not more than 20 percent of the grant funds
provided under this section to establish or increase an
endowment fund at the institution.
``(B) Matching requirement.--In order to be eligible
to use grant funds in accordance with subparagraph (A),
the Tribal College or University shall provide matching
[[Page 112 STAT. 1641]]
funds, in an amount equal to the Federal funds used in
accordance with subparagraph (A), for the establishment
or increase of the endowment fund.
``(C) <<NOTE: Applicability.>> Comparability.--The
provisions of part C regarding the establishment or
increase of an endowment fund, that the Secretary
determines are not inconsistent with this paragraph,
shall apply to funds used under subparagraph (A).
``(d) Application Process.--
``(1) Institutional eligibility.--To be eligible to receive
assistance under this section, a Tribal College or University
shall be an eligible institution under section 312(b).
``(2) Application.--Any Tribal College or University
desiring to receive assistance under this section shall submit
an application to the Secretary at such time, and in such
manner, as the Secretary may by regulation reasonably require.
Each such application shall include--
``(A) a 5-year plan for improving the assistance
provided by the Tribal College or University to Indian
students, increasing the rates at which Indian secondary
school students enroll in higher education, and
increasing overall postsecondary retention rates for
Indian students; and
``(B) such enrollment data and other information and
assurances as the Secretary may require to demonstrate
compliance with paragraph (1).
``(3) Special rule.--For the purposes of this part, no
Tribal College or University that is eligible for and receives
funds under this section may concurrently receive other funds
under this part or part B.''.
(f ) Alaska Native and Native Hawaiian-Serving Institutions.--Part A
of title III (20 U.S.C. 1057 et seq.) is amended by adding at the end
the following:
``SEC. 317. <<NOTE: 20 USC 1059d.>> ALASKA NATIVE AND NATIVE HAWAIIAN-
SERVING INSTITUTIONS.
``(a) Program Authorized.--The Secretary shall provide grants and
related assistance to Alaska Native-serving institutions and Native
Hawaiian-serving institutions to enable such institutions to improve and
expand their capacity to serve Alaska Natives and Native Hawaiians.
``(b) Definitions.--For the purpose of this section--
``(1) the term `Alaska Native' has the meaning given the
term in section 9308 of the Elementary and Secondary Education
Act of 1965;
``(2) the term `Alaska Native-serving institution' means an
institution of higher education that--
``(A) is an eligible institution under section
312(b); and
``(B) at the time of application, has an enrollment
of undergraduate students that is at least 20 percent
Alaska Native students;
``(3) the term `Native Hawaiian' has the meaning given the
term in section 9212 of the Elementary and Secondary Education
Act of 1965; and
``(4) the term `Native Hawaiian-serving institution' means
an institution of higher education which--
``(A) is an eligible institution under section
312(b); and
[[Page 112 STAT. 1642]]
``(B) at the time of application, has an enrollment
of undergraduate students that is at least 10 percent
Native Hawaiian students.
``(c) Authorized Activities.--
``(1) Types of activities authorized.--Grants awarded under
this section shall be used by Alaska Native-serving institutions
and Native Hawaiian-serving institutions to assist such
institutions to plan, develop, undertake, and carry out
activities to improve and expand such institutions' capacity to
serve Alaska Natives or Native Hawaiians.
``(2) Examples of authorized activities.--Such programs may
include--
``(A) purchase, rental, or lease of scientific or
laboratory equipment for educational purposes, including
instructional and research purposes;
``(B) renovation and improvement in classroom,
library, laboratory, and other instructional facilities;
``(C) support of faculty exchanges, and faculty
development and faculty fellowships to assist in
attaining advanced degrees in the faculty's field of
instruction;
``(D) curriculum development and academic
instruction;
``(E) purchase of library books, periodicals,
microfilm, and other educational materials;
``(F) funds and administrative management, and
acquisition of equipment for use in strengthening funds
management;
``(G) joint use of facilities such as laboratories
and libraries; and
``(H) academic tutoring and counseling programs and
student support services.
``(d) Application Process.--
``(1) Institutional eligibility.--Each Alaska Native-serving
institution and Native Hawaiian-serving institution desiring to
receive assistance under this section shall submit to the
Secretary such enrollment data as may be necessary to
demonstrate that the institution is an Alaska Native-serving
institution or a Native Hawaiian-serving institution as defined
in subsection (b), along with such other information and data as
the Secretary may by regulation require.
``(2) Applications.--Any institution which is determined by
the Secretary to be an Alaska Native-serving institution or a
Native Hawaiian-serving institution may submit an application
for assistance under this section to the Secretary. Such
application shall include--
``(A) a 5-year plan for improving the assistance
provided by the Alaska Native-serving institution or the
Native Hawaiian-serving institution to Alaska Native or
Native Hawaiian students; and
``(B) such other information and assurance as the
Secretary may require.
``(e) Special Rule.--For the purposes of this section, no Alaska
Native-serving institution or Native Hawaiian-serving institution which
is eligible for and receives funds under this section may concurrently
receive other funds under this part or part B.''.
SEC. 304. STRENGTHENING HBCU's.
(a) Grants.--Section 323 (20 U.S.C. 1062) is amended--
[[Page 112 STAT. 1643]]
(1) by redesignating subsection (b) as subsection (c);
(2) by inserting after subsection (a) the following:
``(b) Endowment Fund.--
``(1) In general.--An institution may use not more than 20
percent of the grant funds provided under this part to establish
or increase an endowment fund at the institution.
``(2) Matching requirement.--In order to be eligible to use
grant funds in accordance with paragraph (1), the eligible
institution shall provide matching funds from non-Federal
sources, in an amount equal to or greater than the Federal funds
used in accordance with paragraph (1), for the establishment or
increase of the endowment fund.
``(3) <<NOTE: Applicability.>> Comparability.--The
provisions of part C regarding the establishment or increase of
an endowment fund, that the Secretary determines are not
inconsistent with this subsection, shall apply to funds used
under paragraph (1).''; and
(3) in subsection (c) (as redesignated by paragraph (1)), by
striking paragraph (3).
(b) Professional or Graduate Institutions.--
(1) General authorization.--Section 326(a) (20 U.S.C.
1063b(a)) is amended--
(A) in subsection (a)--
(i) in paragraph (1), by inserting ``in
mathematics, engineering, or the physical or
natural sciences'' after ``graduate education
opportunities''; and
(ii) in paragraph (2)--
(I) by striking ``$500,000'' and
inserting ``$1,000,000''; and
(II) by striking ``except that'' and
all that follows and inserting the
following: ``, except that no
institution shall be required to match
any portion of the first $1,000,000 of
the institution's award from the
Secretary. After funds are made
available to each eligible institution
under the funding rules described in
subsection (f ), the Secretary shall
distribute, on a pro rata basis, any
amounts which were not so made available
(by reason of the failure of an
institution to comply with the matching
requirements of this paragraph) among
the institutions that have complied with
such matching requirement.''; and
(B) in subsection (d)(2), by striking ``$500,000''
and inserting ``$1,000,000''.
(2) Use of funds.--Section 326(c) (20 U.S.C. 1063b(c)) is
amended by striking paragraphs (1) through (3) and inserting the
following:
``(1) purchase, rental or lease of scientific or laboratory
equipment for educational purposes, including instructional and
research purposes;
``(2) construction, maintenance, renovation, and improvement
in classroom, library, laboratory, and other instructional
facilities, including purchase or rental of telecommunications
technology equipment or services;
``(3) purchase of library books, periodicals, technical and
other scientific journals, microfilm, microfiche, and other
educational materials, including telecommunications program
materials;
[[Page 112 STAT. 1644]]
``(4) scholarships, fellowships, and other financial
assistance for needy graduate and professional students to
permit the enrollment of the students in and completion of the
doctoral degree in medicine, dentistry, pharmacy, veterinary
medicine, law, and the doctorate degree in the physical or
natural sciences, engineering, mathematics, or other scientific
disciplines in which African Americans are underrepresented;
``(5) establish or improve a development office to
strengthen and increase contributions from alumni and the
private sector;
``(6) assist in the establishment or maintenance of an
institutional endowment to facilitate financial independence
pursuant to section 331; and
``(7) funds and administrative management, and the
acquisition of equipment, including software, for use in
strengthening funds management and management information
systems.''.
(3) Eligibility.--Section 326(e) (20 U.S.C. 1063b(e)) is
amended--
(A) in paragraph (1)--
(i) by striking ``include--'' and inserting
``are the following'';
(ii) by inserting ``and other qualified
graduate programs'' before the semicolon at the
end of subparagraphs (E) through (J);
(iii) by striking ``and'' at the end of
subparagraph (O); and
(iv) in subparagraph (P)--
(I) by inserting ``University''
after ``State''; and
(II) by striking the period and
inserting a semicolon; and
(III) by adding at the end the
following:
``(Q) Norfolk State University qualified graduate
programs; and
``(R) Tennessee State University qualified graduate
programs.'';
(B) by striking paragraphs (2) and (3) and inserting
the following:
``(2) Qualified graduate program.--(A) For the purposes of
this section, the term `qualified graduate program' means a
graduate or professional program that provides a program of
instruction in the physical or natural sciences, engineering,
mathematics, or other scientific discipline in which African
Americans are underrepresented and has students enrolled in such
program at the time of application for a grant under this
section.
``(B) Notwithstanding the enrollment requirement contained
in subparagraph (A), an institution may use an amount equal to
not more than 10 percent of the institution's grant under this
section for the development of a new qualified graduate program.
``(3) Special rule.--Institutions that were awarded grants
under this section prior to October 1, 1998, shall continue to
receive such grants, subject to the availability of appropriated
funds, regardless of the eligibility of the institutions
described in subparagraphs (Q) and (R) of paragraph (1).''; and
(C) by adding at the end the following:
[[Page 112 STAT. 1645]]
``(5) Institutional choice.--The president or chancellor of
the institution may decide which graduate or professional school
or qualified graduate program will receive funds under the grant
in any 1 fiscal year, if the allocation of funds among the
schools or programs is delineated in the application for funds
submitted to the Secretary under this section.''.
(4) Funding rule.--Section 326(f ) (20 U.S.C. 1063b(f )) is
amended--
(A) by striking ``Of the amount appropriated'' and
inserting ``Subject to subsection (g), of the amount
appropriated'';
(B) in paragraph (1)--
(i) by striking ``$12,000,000'' and inserting
``$26,600,000''; and
(ii) by striking ``(A) through (E)'' and
inserting ``(A) through (P)'';
(C) by striking paragraph (2) and inserting the
following:
``(2) any amount in excess of $26,600,000, but not in excess
of $28,600,000, shall be available for the purpose of making
grants to institutions or programs described in subparagraphs
(Q) and (R) of subsection (e)(1); and
``(3) any amount in excess of $28,600,000, shall be made
available to each of the institutions or programs identified in
subparagraphs (A) through (R) pursuant to a formula developed by
the Secretary that uses the following elements:
``(A) The ability of the institution to match
Federal funds with non-Federal funds.
``(B) The number of students enrolled in the
programs for which the eligible institution received
funding under this section in the previous year.
``(C) The average cost of education per student, for
all full-time graduate or professional students (or the
equivalent) enrolled in the eligible professional or
graduate school, or for doctoral students enrolled in
the qualified graduate programs.
``(D) The number of students in the previous year
who received their first professional or doctoral degree
from the programs for which the eligible institution
received funding under this section in the previous
year.
``(E) The contribution, on a percent basis, of the
programs for which the institution is eligible to
receive funds under this section to the total number of
African Americans receiving graduate or professional
degrees in the professions or disciplines related to the
programs for the previous year.''.
(5) Hold harmless rule.--Section 326 is further amended by
adding at the end the following new subsection:
``(g) Hold Harmless Rule.--Notwithstanding paragraphs (2) and (3) of
subsection (f ), no institution or qualified program identified in
subsection (e)(1) that received a grant for fiscal year 1998 and that is
eligible to receive a grant in a subsequent fiscal year shall receive a
grant amount in any such subsequent fiscal year that is less than the
grant amount received for fiscal year 1998, unless the amount
appropriated is not sufficient to provide such
[[Page 112 STAT. 1646]]
grant amounts to all such institutions and programs, or the institution
cannot provide sufficient matching funds to meet the requirements of
this section.''.
SEC. 305. ENDOWMENT CHALLENGE GRANTS.
Section 331(b) (20 U.S.C. 1065(b)) is amended--
(1) in paragraph (1), by striking ``360'' and inserting
``399''; and
(2) in paragraph (2), by striking subparagraphs (B) and (C)
and inserting the following:
``(B) The Secretary may make a grant under this part to an eligible
institution in any fiscal year if the institution--
``(i) applies for a grant in an amount not exceeding
$500,000; and
``(ii) has deposited in the eligible institution's endowment
fund established under this section an amount which is equal to
\1/2\ of the amount of such grant.
``(C) An eligible institution of higher education that is awarded a
grant under subparagraph (B) shall not be eligible to receive an
additional grant under subparagraph (B) until 10 years after the date on
which the grant period terminates.''.
SEC. 306. HBCU CAPITAL FINANCING.
(a) Definition.--Section 342(5) <<NOTE: 20 USC 1066a.>> (as
redesignated by section 301(a)(4)) (20 U.S.C. 1132c-1(5)) is amended--
(1) by redesignating subparagraphs (B), (C), and (D) as
subparagraphs (C), (G), and (H), respectively;
(2) by inserting after subparagraph (A) the following:
``(B) a facility for the administration of an
educational program, or a student center or student
union, except that not more than 5 percent of the loan
proceeds provided under this part may be used for the
facility, center or union if the facility, center or
union is owned, leased, managed, or operated by a
private business, that, in return for such use, makes a
payment to the eligible institution;'';
(3) in subparagraph (C) (as redesignated by paragraph (1)),
insert ``technology,'' after ``instructional equipment'';
(4) by inserting after subparagraph (C) (as redesignated by
paragraph (1)) the following:
``(D) a maintenance, storage, or utility facility
that is essential to the operation of a facility, a
library, a dormitory, equipment, instrumentation, a
fixture, real property or an interest therein, described
in this paragraph;
``(E) a facility designed to provide primarily
outpatient health care for students or faculty;
``(F) physical infrastructure essential to support
the projects authorized under this paragraph, including
roads, sewer and drainage systems, and water, power,
lighting, telecommunications, and other utilities;'';
and
(5) in subparagraph (H) (as redesignated by paragraph (2)),
by striking ``(C)'' and inserting ``(G)''.
(b) Responsibilities.--Section 343 <<NOTE: 20 USC 1066b.>> (as
redesignated by section 301(a)(4)) (20 U.S.C. 1132c-2) is amended--
(1) in subsection (b)(8) (as redesignated by section
301(a)(4)) (20 U.S.C. 1132c-2(b)(8)), by striking ``10 percent''
each place the term appears and inserting ``5 percent''; and
(2) by adding at the end the following:
[[Page 112 STAT. 1647]]
``(e) Notwithstanding any other provision of law, a qualified bond
guaranteed under this part may be sold to any party that offers terms
that the Secretary determines are in the best interest of the eligible
institution.''.
(c) Technical Assistance.--Section 345 <<NOTE: 20 USC 1066d.>> (as
redesignated by section 301(a)(4)) (20 U.S.C. 1132c-4) is amended--
(1) in paragraph (5), by striking ``and'' after the
semicolon;
(2) in paragraph (6), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(7) may, directly or by grant or contract, provide
technical assistance to eligible institutions to prepare the
institutions to qualify, apply for, and maintain a capital
improvement loan, including a loan under this part.''.
(d) Prohibition.--Section 346 <<NOTE: 20 USC 1066e.>> (as
redesignated by section 301(a)(4)) (20 U.S.C. 1132c-5) is repealed.
(e) Advisory Board.--Section 347 <<NOTE: 20 USC 1066f.>> (as
redesignated by section 301(a)(4)) (20 U.S.C. 1132c-6) is amended--
(1) in subsection (b)--
(A) in subparagraph (D), by inserting ``, or the
president's designee.'' after the period; and
(B) in subparagraph (E), by inserting ``, or the
designee of the Association'' before the period; and
(2) by striking subsection (c).
SEC. 307. MINORITY SCIENCE AND ENGINEERING IMPROVEMENT
PROGRAM.
(a) Minority Science and Engineering Improvement
Program Findings.--Subpart 1 of part E of title III (as redesignated by
paragraphs (6) and (7) of section 301) (20 U.S.C. 1135b et seq.) is
amended by inserting after the subpart heading the following:
``SEC. 350. FINDINGS. <<NOTE: 20 USC 1067.>>
``Congress makes the following findings:
``(1) It is incumbent on the Federal Government to support
the technological and economic competitiveness of the United
States by improving and expanding the scientific and
technological capacity of the United States. More and better
prepared scientists, engineers, and technical experts are needed
to improve and expand such capacity.
``(2) As the Nation's population becomes more diverse, it is
important that the educational and training needs of all
Americans are met. Underrepresentation of minorities in science
and technological fields diminishes our Nation's competitiveness
by impairing the quantity of well prepared scientists,
engineers, and technical experts in these fields.
``(3) Despite significant limitations in resources, minority
institutions provide an important educational opportunity for
minority students, particularly in science and engineering
fields. Aid to minority institutions is a good way to address
the underrepresentation of minorities in science and
technological fields.
``(4) There is a strong Federal interest in improving
science and engineering programs at minority institutions as
such programs lag behind in program offerings and in student
enrollment compared to such programs at other institutions of
higher education.''.
[[Page 112 STAT. 1648]]
(b) Eligibility for Grants.--Section 361 (as redesignated by section
301(a)(7)) (20 U.S.C. 1135d) is amended to read as follows:
``SEC. 361. ELIGIBILITY FOR GRANTS. <<NOTE: 20 USC 1067g.>>
``Eligibility to receive grants under this part is limited to--
``(1) public and private nonprofit institutions of higher
education that--
``(A) award baccalaureate degrees; and
``(B) are minority institutions;
``(2) public or private nonprofit institutions of higher
education that--
``(A) award associate degrees; and
``(B) are minority institutions that--
``(i) have a curriculum that includes science
or engineering subjects; and
``(ii) enter into a partnership with public or
private nonprofit institutions of higher education
that award baccalaureate degrees in science and
engineering;
``(3) nonprofit science-oriented organizations, professional
scientific societies, and institutions of higher education that
award baccalaureate degrees, that--
``(A) provide a needed service to a group of
minority institutions; or
``(B) provide in-service training for project
directors, scientists, and engineers from minority
institutions; or
``(4) consortia of organizations, that provide needed
services to one or more minority institutions, the membership of
which may include--
``(A) institutions of higher education which have a
curriculum in science or engineering;
``(B) institutions of higher education that have a
graduate or professional program in science or
engineering;
``(C) research laboratories of, or under contract
with, the Department of Energy;
``(D) private organizations that have science or
engineering facilities; or
``(E) quasi-governmental entities that have a
significant scientific or engineering mission.''.
(c) Definitions.--Section 365(4) <<NOTE: 20 USC 1067k.>> (as
redesignated by section 301(a)(7)) (20 U.S.C. 1135d-5(4)) is amended by
inserting ``behavioral,'' after ``physical,''.
(d) Conforming amendments.--The heading for subpart 1 of part E of
title III (as redesignated by paragraphs (6) and (7) of section 301(a))
is amended by inserting ``and Engineering'' before ``Improvement
Program''.
SEC. 308. GENERAL PROVISIONS.
(a) Applications for Assistance.--Subsection (a) of section
391(a) <<NOTE: 20 USC 1068.>> (as redesignated by section 301(a)(2)) (20
U.S.C. 1066(a)) is amended to read as follows:
``(a) Applications.--
``(1) Applications required.--Any institution which is
eligible for assistance under this title shall submit to the
Secretary an application for assistance at such time, in such
form, and containing such information, as may be necessary to
enable the Secretary to evaluate the institution's need for the
assistance. Subject to the availability of appropriations to
carry out
[[Page 112 STAT. 1649]]
this title, the Secretary may approve an application for
assistance under this title only if the Secretary determines
that--
``(A) the application meets the requirements of
subsection (b);
``(B) the applicant is eligible for assistance in
accordance with the part of this title under which the
assistance is sought; and
``(C) the applicant's performance goals are
sufficiently rigorous as to meet the purposes of this
title and the performance objectives and indicators for
this title established by the Secretary pursuant to the
Government Performance and Results Act of 1993 and the
amendments made by such Act.
``(2) Preliminary applications.--In carrying out paragraph
(1), the Secretary may develop a preliminary application for use
by eligible institutions applying under part A prior to the
submission of the principal application.''.
(b) Applications.--Paragraph (1) of section 391(b) <<NOTE: 20 USC
1068.>> (as redesignated by section 301(a)(2)) (20 U.S.C. 1066(b)) is
amended by inserting ``, D or E'' after ``part C''.
(c) Contents of Applications.--Section 391(b)(6) (as redesignated by
section 301(a)(2)) is amended by inserting before the semicolon the
following: ``, except that for purposes of section 316, paragraphs (2)
and (3) of section 396 shall not apply''.
(d) Waivers.--Section 392(a) <<NOTE: 20 USC 1068a.>> (as
redesignated by section 301(a)(2)) (20 U.S.C. 1067(a)) is amended--
(1) by striking ``or'' at the end of paragraph (5);
(2) by redesignating paragraph (6) as paragraph (7); and
(3) by inserting after paragraph (5) the following new
paragraph:
``(6) that is a tribally controlled college or university as
defined in section 2 of the Tribally Controlled College or
University Assistance Act of 1978; or''.
(e) Application Review Process.--Section 393(a) <<NOTE: 20 USC
1068b.>> (as redesignated by section 301(a)(2)) (20 U.S.C. 1068(a)) is
amended--
(1) in paragraph (2), by striking ``Native American colleges
and universities'' and inserting ``Tribal Colleges and
Universities''; and
(2) by adding at the end the following:
``(d) Exclusion.--The provisions of this section shall not apply to
applications submitted under part D.''.
(f ) Waivers.--Paragraph (2) of section 395(b) <<NOTE: 20 USC
1068d.>> (as redesignated by section 301(a)(2)) (20 U.S.C. 1069b(b)) is
amended by striking ``title IV, VII, or VIII'' and inserting ``part D or
title IV''.
(g) Continuation Awards.--Part F of title III is amended by
inserting after section 397 (as redesignated by section 301(a)(2)) (20
U.S.C. 1069d) the following:
``SEC. 398. CONTINUATION AWARDS. <<NOTE: 20 USC 1068g.>>
``The Secretary shall make continuation awards under this title for
the second and succeeding years of a grant only after determining that
the recipient is making satisfactory progress in carrying out the
grant.''.
(h) Authorization of Appropriations.--Section 399(a) <<NOTE: 20 USC
1068h.>> (as redesignated by section 301(a)(2)) (20 U.S.C. 1069f) is
amended--
(1) in paragraph (1)--
[[Page 112 STAT. 1650]]
(A) in subparagraph (A), by striking ``1993'' and
inserting ``1999'';
(B) in subparagraph (B)--
(i) in clause (i), by striking ``$45,000,000
for fiscal year 1993'' and inserting ``$10,000,000
for fiscal year 1999'';
(ii) by striking clause (ii); and
(iii) by striking ``(B)(i) There'' and
inserting ``(B) There''; and
(C) by adding at the end the following:
``(C) There are authorized to be appropriated to carry out
section 317, $5,000,000 for fiscal year 1999 and such sums as
may be necessary for each of the 4 succeeding fiscal years.'';
(2) in paragraph (2)--
(A) in subparagraph (A), by striking ``1993'' and
inserting ``1999''; and
(B) in subparagraph (B), by striking ``$20,000,000
for fiscal year 1993'' and inserting ``$35,000,000 for
fiscal year 1999'';
(3) in paragraph (3), by striking ``$50,000,000 for fiscal
year 1993'' and inserting ``$10,000,000 for fiscal year 1999'';
(4) by adding at the end the following:
``(4) Part d.--(A) There are authorized to be appropriated
to carry out part D (other than section 345(7), but including
section 347), $110,000 for fiscal year 1999, and such sums as
may be necessary for each of the 4 succeeding fiscal years.
``(B) There are authorized to be appropriated to carry out
section 345(7), such sums as may be necessary for fiscal year
1999 and each of the 4 succeeding fiscal years.
``(5) Part e.--There are authorized to be appropriated to
carry out part E, $10,000,000 for fiscal year 1999, and such
sums as may be necessary for each of the 4 succeeding fiscal
years.''; and
(5) by striking subsections (c), (d), and (e).
TITLE IV--STUDENT ASSISTANCE
PART A--GRANTS TO STUDENTS
SEC. 401. FEDERAL PELL GRANTS.
(a) Extension of Authority.--Section 401(a)(1) (20 U.S.C.
1070a(a)(1)) is amended--
(1) in the first sentence, by striking ``The Secretary
shall, during the period beginning July 1, 1972, and ending
September 30, 1998,'' and inserting ``For each fiscal year
through fiscal year 2004, the Secretary shall''; and
(2) <<NOTE: Federal Register, publication.>> in the second
sentence, by inserting ``until such time as the Secretary
determines and publishes in the Federal Register with an
opportunity for comment, an alternative payment system that
provides payments to institutions in an accurate and timely
manner,'' after ``pay eligible students''.
(b) Amount of Grant.--Paragraph (2)(A) of section 401(b) is amended
to read as follows:
``(2)(A) The amount of the Federal Pell Grant for a student eligible
under this part shall be--
``(i) $4,500 for academic year 1999-2000;
[[Page 112 STAT. 1651]]
``(ii) $4,800 for academic year 2000-2001;
``(iii) $5,100 for academic year 2001-2002;
``(iv) $5,400 for academic year 2002-2003; and
``(v) $5,800 for academic year 2003-2004,
less an amount equal to the amount determined to be the expected family
contribution with respect to that student for that year.''.
(c) Relation of Maximum Grant to Tuition and Expenses.--Paragraph
(3) of section 401(b) <<NOTE: 20 USC 1070a.>> is amended to read as
follows:
``(3)(A) For any academic year for which an appropriation Act
provides a maximum basic grant in an amount in excess of $2,700, the
amount of a student's basic grant shall equal $2,700 plus--
``(i) one-half of the amount by which such maximum basic
grant exceeds $2,700; plus
``(ii) the lesser of--
``(I) the remaining one-half of such excess; or
``(II) the sum of the student's tuition and, if the
student has dependent care expenses (as described in
section 472(8)) or disability-related expenses (as
described in section 472(9)), an allowance determined by
the institution for such expenses.
``(B) An institution that charged only fees in lieu of tuition as of
October 1, 1998, may include in the institution's determination of
tuition charged, fees that would normally constitute tuition.''.
(d) Regulations for Multiple Awards.--Section 401(b)(6) is amended--
(1) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively;
(2) by inserting ``(A)'' after the paragraph designation;
and
(3) by adding at the end the following:
``(B) <<NOTE: Regulations.>> The Secretary shall promulgate
regulations implementing this paragraph.''.
(e) Time Limit To Receive Grants.--Section 401(c) is amended by
adding at the end the following:
``(4) Notwithstanding paragraph (1), the Secretary may allow, on a
case-by-case basis, a student to receive a basic grant if the student--
``(A) is carrying at least one-half the normal full-time
work load for the course of study the student is pursuing, as
determined by the institution of higher education; and
``(B) is enrolled or accepted for enrollment in a
postbaccalaureate program that does not lead to a graduate
degree, and in courses required by a State in order for the
student to receive a professional certification or licensing
credential that is required for employment as a teacher in an
elementary school or secondary school in that State,
except that this paragraph shall not apply to a student who is enrolled
in an institution of higher education that offers a baccalaureate degree
in education.''.
(f ) Institutional Ineligibility Based on Default Rates.--Section
401 is amended by adding at the end the following:
``( j) Institutional Ineligibility Based on Default Rates.--
``(1) In general.--No institution of higher education shall
be an eligible institution for purposes of this subpart if such
institution of higher education is ineligible to participate in
a loan program under part B or D as a result of a final default
rate determination made by the Secretary under part
[[Page 112 STAT. 1652]]
B or D after the final publication of cohort default rates for
fiscal year 1996 or a succeeding fiscal year.
``(2) <<NOTE: Regulations.>> Sanctions subject to appeal
opportunity.--No institution may be subject to the terms of this
subsection unless the institution has had the opportunity to
appeal the institution's default rate determination under
regulations issued by the Secretary for the loan program
authorized under part B or D, as applicable. This subsection
shall not apply to an institution that was not participating in
the loan program authorized under part B or D on the date of
enactment of the Higher Education Amendments of 1998, unless the
institution subsequently participates in the loan programs.''.
(g) Conforming Amendments.--
(1) Section 400(a)(1) (20 U.S.C. 1070(a)(1)) is amended by
striking ``basic educational opportunity grants'' and inserting
``Federal Pell Grants''.
(2) The heading of subpart 1 of part A of title IV (20
U.S.C. 1070a et seq.) is amended to read as follows:
``Subpart 1--Federal Pell Grants''.
(3) Section 401 is amended-- <<NOTE: 20 USC 1070a.>>
(A) in the heading of the section, by striking
``basic educational opportunity'' and inserting
``federal pell'';
(B) in subsection (a)(3), by striking ``Basic
grants'' and inserting ``Grants'';
(C) by striking ``basic grant'' each place the term
appears and inserting ``Federal Pell Grant''; and
(D) by striking ``basic grants'' each place the term
appears and inserting ``Federal Pell Grants''.
(4) Section 401(f )(3) is amended by striking ``Education
and Labor'' and inserting ``Education and the Workforce''.
(5) Section 452(c) (20 U.S.C. 1087b(c)) is amended by
striking ``basic grants'' and inserting ``Federal Pell Grants''.
(6) Subsections ( j)(2) and (k)(3) of section 455 (20 U.S.C.
1087e) are each amended by striking ``basic grants'' and
inserting ``Federal Pell Grants''.
SEC. 402. FEDERAL TRIO PROGRAMS.
(a) Program Authority; Authorization of Appropriations.--
(1) Duration of grants.--Section 402A(b)(2) (20 U.S.C.
1070a-11(b)(2)) is amended--
(A) by striking ``and'' at the end of subparagraph
(A);
(B) by striking the period at the end of
subparagraph (B) and inserting ``; and''; and
(C) by inserting after subparagraph (B) the
following new subparagraph:
``(C) grants under section 402H shall be awarded for
a period determined by the Secretary.''.
(2) Minimum grants.--Section 402A(b)(3) is amended to read
as follows:
``(3) Minimum grants.--Unless the institution or agency
requests a smaller amount, individual grants under this chapter
shall be no less than--
``(A) $170,000 for programs authorized by sections
402D and 402G;
[[Page 112 STAT. 1653]]
``(B) $180,000 for programs authorized by sections
402B and 402F; and
``(C) $190,000 for programs authorized by sections
402C and 402E.''.
(3) Procedures for awarding grants and contracts.--
Subsection (c) of section 402A is amended <<NOTE: 20 USC 1070a-
11.>> to read as follows:
``(c) Procedures for Awarding Grants and Contracts.--
``(1) Application requirements.--An eligible entity that
desires to receive a grant or contract under this chapter shall
submit an application to the Secretary in such manner and form,
and containing such information and assurances, as the Secretary
may reasonably require.
``(2) Prior experience.--In making grants under this
chapter, the Secretary shall consider each applicant's prior
experience of service delivery under the particular program for
which funds are sought. The level of consideration given the
factor of prior experience shall not vary from the level of
consideration given such factor during fiscal years 1994 through
1997, except that grants made under section 402H shall not be
given prior experience consideration.
``(3) <<NOTE: Grants. Contracts.>> Order of awards; program
fraud.--(A) Except with respect to grants made under sections
402G and 402H and as provided in subparagraph (B), the Secretary
shall award grants and contracts under this chapter in the order
of the scores received by the application for such grant or
contract in the peer review process required under paragraph (4)
and adjusted for prior experience in accordance with paragraph
(2) of this subsection.
``(B) The Secretary is not required to provide assistance to
a program otherwise eligible for assistance under this chapter,
if the Secretary has determined that such program has involved
the fraudulent use of funds under this chapter.
``(4) Peer review process.--(A) The Secretary shall ensure
that, to the extent practicable, members of groups
underrepresented in higher education, including African
Americans, Hispanics, Native Americans, Alaska Natives, Asian
Americans, and Native American Pacific Islanders (including
Native Hawaiians), are represented as readers of applications
submitted under this chapter. The Secretary shall also ensure
that persons from urban and rural backgrounds are represented as
readers.
``(B) The Secretary shall ensure that each application
submitted under this chapter is read by at least three readers
who are not employees of the Federal Government (other than as
readers of applications).
``(5) Number of applications for grants and contracts.--The
Secretary shall not limit the number of applications submitted
by an entity under any program authorized under this chapter if
the additional applications describe programs serving different
populations or campuses.
``(6) Coordination with other programs for disadvantaged
students.--The Secretary shall encourage coordination of
programs assisted under this chapter with other programs for
disadvantaged students operated by the sponsoring institution or
agency, regardless of the funding source of such programs. The
Secretary shall not limit an entity's eligibility to receive
funds under this chapter because such entity sponsors
[[Page 112 STAT. 1654]]
a program similar to the program to be assisted under this
chapter, regardless of the funding source of such program. The
Secretary shall permit the Director of a program receiving funds
under this chapter to administer one or more additional programs
for disadvantaged students operated by the sponsoring
institution or agency, regardless of the funding sources of such
programs.
``(7) Application status.--The Secretary shall inform each
entity operating programs under this chapter regarding the
status of their application for continued funding at least 8
months prior to the expiration of the grant or contract. The
Secretary, in the case of an entity that is continuing to
operate a successful program under this chapter, shall ensure
that the start-up date for a new grant or contract for such
program immediately follows the termination of the preceding
grant or contract so that no interruption of funding occurs for
such successful reapplicants. The Secretary shall inform each
entity requesting assistance under this chapter for a new
program regarding the status of their application at least 8
months prior to the proposed startup date of such program.''.
(4) Authorization of appropriations.--Section 402A(f ) is
amended <<NOTE: 20 USC 1070a-11.>> by striking ``$650,000,000
for fiscal year 1993'' and inserting ``$700,000,000 for fiscal
year 1999''.
(5) Waiver.--Section 402A(g) is amended by adding at the end
the following:
``(4) Waiver.--The Secretary may waive the service
requirements in subparagraph (A) or (B) of paragraph (3) if the
Secretary determines the application of the service requirements
to a veteran will defeat the purpose of a program under this
chapter.''.
(b) Talent Search.--Section 402B(b) (20 U.S.C. 1070a-12(b)) is
amended--
(1) by striking paragraph (4) and inserting the following:
``(4) guidance on and assistance in secondary school
reentry, entry to general educational development (GED)
programs, other alternative education programs for secondary
school dropouts, or postsecondary education;'';
(2) in paragraph (5), by inserting ``, or activities
designed to acquaint individuals from disadvantaged backgrounds
with careers in which the individuals are particularly
underrepresented'' before the semicolon;
(3) in paragraph (8), by striking ``parents'' and inserting
``families''; and
(4) in paragraph (9), by inserting ``or counselors'' after
``teachers''.
(c) Upward Bound.--Section 402C (20 U.S.C. 1070a-13) is amended--
(1) in subsection (b)--
(A) in paragraph (2), by striking ``personal
counseling'' and inserting ``counseling and workshops'';
(B) in paragraph (9)--
(i) by inserting ``or counselors'' after
``teachers''; and
(ii) by striking ``and'' after the semicolon;
(C) by redesignating paragraph (10) as paragraph
(12);
(D) by inserting after paragraph (9) the following:
[[Page 112 STAT. 1655]]
``(10) work-study positions where youth participating in the
project are exposed to careers requiring a postsecondary degree;
``(11) special services to enable veterans to make the
transition to postsecondary education; and''; and
(E) in paragraph (12) (as redesignated by
subparagraph (C)), by striking ``(9)'' and inserting
``(11)''; and
(2) in subsection (e), by striking ``and not in excess of
$40 per month during the remaining period of the year.'' and
inserting ``except that youth participating in a work-study
position under subsection (b)(10) may be paid a stipend of $300
per month during June, July, and August. Youths participating in
a project proposed to be carried out under any application may
be paid stipends not in excess of $40 per month during the
remaining period of the year.''.
(d) Student Support Services.--Paragraph (6) of section 402D(c) (20
U.S.C. 1070a-14(c)(6)) is amended to read as follows:
``(6) consider, in addition to such other criteria as the
Secretary may prescribe, the institution's effort, and where
applicable past history, in--
``(A) providing sufficient financial assistance to
meet the full financial need of each student in the
project; and
``(B) maintaining the loan burden of each such
student at a manageable level.''.
(e) Postbaccalaureate Achievement Program.--Section 402E(e)(1) (20
U.S.C. 1070a-15(e)(1)) is amended by striking ``$2,400'' and inserting
``$2,800''.
(f ) Staff Development Activities.--Section 402G (20 U.S.C. 1070a-
17) is amended--
(1) in subsection (a), by inserting ``participating in,''
after ``leadership personnel employed in,''; and
(2) in subsection (b), by inserting after paragraph (3) the
following new paragraph:
``(4) The use of appropriate educational technology in the
operation of projects assisted under this chapter.''.
(g) Evaluation and Dissemination.--Section 402H (20 U.S.C. 1070a-18)
is amended to read as follows:
``SEC. 402H. EVALUATIONS AND GRANTS FOR PROJECT IMPROVEMENT AND
DISSEMINATION PARTNERSHIP PROJECTS.
``(a) Evaluations.--
``(1) In general.--For the purpose of improving the
effectiveness of the programs and projects assisted under this
chapter, the Secretary may make grants to or enter into
contracts with institutions of higher education and other public
and private institutions and organizations to evaluate the
effectiveness of the programs and projects assisted under this
chapter.
``(2) Practices.--The evaluations described in paragraph (1)
shall identify institutional, community, and program or project
practices that are particularly effective in enhancing the
access of low-income individuals and first-generation college
students to postsecondary education, the preparation of the
individuals and students for postsecondary education, and the
success of the individuals and students in postsecondary
education. Such evaluations shall also investigate the
effectiveness of alternative and innovative methods within
Federal TRIO
[[Page 112 STAT. 1656]]
programs of increasing access to, and retention of, students in
postsecondary education.
``(b) Grants.--The Secretary may award grants to institutions of
higher education or other private and public institutions and
organizations, that are carrying out a program or project assisted under
this chapter prior to the date of enactment of the Higher Education
Amendments of 1998, to enable the institutions and organizations to
expand and leverage the success of such programs or projects by working
in partnership with other institutions, community-based organizations,
or combinations of such institutions and organizations, that are not
receiving assistance under this chapter and are serving low-income
students and first generation college students, in order to--
``(1) disseminate and replicate best practices of programs
or projects assisted under this chapter; and
``(2) provide technical assistance regarding programs and
projects assisted under this chapter.
``(c) Results.--In order to improve overall program or project
effectiveness, the results of evaluations and grants described in this
section shall be disseminated by the Secretary to similar programs or
projects assisted under this subpart, as well as other individuals
concerned with postsecondary access for and retention of low-income
individuals and first-generation college students.''.
SEC. 403. GEAR UP PROGRAM.
Chapter 2 of subpart 2 of part A of title IV (20 U.S.C. 1070a-21 et
seq.) is amended to read as follows:
``CHAPTER 2--GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE
PROGRAMS
``SEC. 404A. <<NOTE: 20 USC 1070a-21.>> EARLY INTERVENTION AND COLLEGE
AWARENESS PROGRAM AUTHORIZED.
``(a) Program Authorized.--The Secretary is authorized, in
accordance with the requirements of this chapter, to establish a program
that--
``(1) encourages eligible entities to provide or maintain a
guarantee to eligible low-income students who obtain a secondary
school diploma (or its recognized equivalent), of the financial
assistance necessary to permit the students to attend an
institution of higher education; and
``(2) supports eligible entities in providing--
``(A) additional counseling, mentoring, academic
support, outreach, and supportive services to elementary
school, middle school, and secondary school students who
are at risk of dropping out of school; and
``(B) information to students and their parents
about the advantages of obtaining a postsecondary
education and the college financing options for the
students and their parents.
``(b) Awards.--
``(1) In general.--From funds appropriated under section
404H for each fiscal year, the Secretary shall make awards
[[Page 112 STAT. 1657]]
to eligible entities described in paragraphs (1) and (2) of
subsection (c) to enable the entities to carry out the program
authorized under subsection (a).
``(2) Priority.--In making awards to eligible entities
described in paragraph (c)(1), the Secretary shall--
``(A) give priority to eligible entities that--
``(i) on the day before the date of enactment
of the Higher Education Amendments of 1998,
carried out successful educational opportunity
programs under this chapter (as this chapter was
in effect on such day); and
``(ii) have a prior, demonstrated commitment
to early intervention leading to college access
through collaboration and replication of
successful strategies;
``(B) ensure that students served under this chapter
on the day before the date of enactment of the Higher
Education Amendments of 1998 continue to receive
assistance through the completion of secondary school.
``(c) Definition of Eligible Entity.--For the purposes of this
chapter, the term `eligible entity' means--
``(1) a State; or
``(2) a partnership consisting of--
``(A) one or more local educational agencies acting
on behalf of--
``(i) one or more elementary schools or
secondary schools; and
``(ii) the secondary schools that students
from the schools described in clause (i) would
normally attend;
``(B) one or more degree granting institutions of
higher education; and
``(C) at least two community organizations or
entities, such as businesses, professional associations,
community-based organizations, philanthropic
organizations, State agencies, institutions or agencies
sponsoring programs authorized under subpart 4, or other
public or private agencies or organizations.
``SEC. 404B. REQUIREMENTS. <<NOTE: 20 USC 1070a-22.>>
``(a) Funding Rules.--
``(1) Continuation awards.--From the amount appropriated
under section 404H for a fiscal year, the Secretary shall
continue to award grants to States under this chapter (as this
chapter was in effect on the day before the date of enactment of
the Higher Education Amendments of 1998) in accordance with the
terms and conditions of such grants.
``(2) Distribution.--From the amount appropriated under
section 404H that remains after making continuation awards under
paragraph (1) for a fiscal year, the Secretary shall--
``(A) make available--
``(i) not less than 33 percent of the amount
to eligible entities described in section
404A(c)(1); and
``(ii) not less than 33 percent of the amount
to eligible entities described in section
404A(c)(2); and
``(B) award the remainder of the amount to eligible
entities described in paragraph (1) or (2) of section
404A(c).
``(3) Special rule.--The Secretary shall annually reevaluate
the distribution of funds described in paragraph
[[Page 112 STAT. 1658]]
(2)(B) based on number, quality, and promise of the applications
and adjust the distribution accordingly.''.
``(b) Limitation.--Each eligible entity described in section
404A(c)(1), and each eligible entity described in section 404A(c)(2)
that conducts a scholarship component under section 404E, shall use not
less than 25 percent and not more than 50 percent of grant funds
received under this chapter for the early intervention component of an
eligible entity's program under this chapter, except that the Secretary
may waive the 50 percent limitation if the eligible entity demonstrates
that the eligible entity has another means of providing the students
with financial assistance that is described in the plan submitted under
section 404C.
``(c) Coordination.--Each eligible entity shall ensure that the
activities assisted under this chapter are, to the extent practicable,
coordinated with, and complement and enhance--
``(1) services under this chapter provided by other eligible
entities serving the same school district or State; and
``(2) related services under other Federal or non-Federal
programs.
``(d) Designation of Fiscal Agent.--An eligible entity described in
section 404A(c)(2) shall designate an institution of higher education or
a local educational agency as the fiscal agent for the eligible entity.
``(e) Coordinators.--An eligible entity described in section
404A(c)(2) shall have a full-time program coordinator or a part-time
program coordinator, whose primary responsibility is a project under
section 404C.
``(f ) Displacement.--An eligible entity described in 404A(c)(2)
shall ensure that the activities assisted under this chapter will not
displace an employee or eliminate a position at a school assisted under
this chapter, including a partial displacement such as a reduction in
hours, wages or employment benefits.
``(g) Cohort Approach.--
``(1) In general.--The Secretary shall require that eligible
entities described in section 404A(c)(2)--
``(A) provide services under this chapter to at
least one grade level of students, beginning not later
than 7th grade, in a participating school that has a 7th
grade and in which at least 50 percent of the students
enrolled are eligible for free or reduced-price lunch
under the National School Lunch Act (or, if an eligible
entity determines that it would promote the
effectiveness of a program, an entire grade level of
students, beginning not later than the 7th grade, who
reside in public housing as defined in section 3(b)(1)
of the United States Housing Act of 1937); and
``(B) ensure that the services are provided through
the 12th grade to students in the participating grade
level.
``(2) Coordination requirement.--In order for the Secretary
to require the cohort approach described in paragraph (1), the
Secretary shall, where applicable, ensure that the cohort
approach is done in coordination and collaboration with existing
early intervention programs and does not duplicate the services
already provided to a school or community.
``SEC. 404C. ELIGIBLE ENTITY PLANS. <<NOTE: 20 USC 1070a-23.>>
``(a) Plan Required for Eligibility.--
[[Page 112 STAT. 1659]]
``(1) In general.--In order for an eligible entity to
qualify for a grant under this chapter, the eligible entity
shall submit to the Secretary a plan for carrying out the
program under this chapter. Such plan shall provide for the
conduct of a scholarship component if required or undertaken
pursuant to section 404E and an early intervention component
required pursuant to section 404D.
``(2) Contents.--Each plan submitted pursuant to paragraph
(1) shall be in such form, contain or be accompanied by such
information or assurances, and be submitted at such time as the
Secretary may require by regulation. Each such plan shall--
``(A) describe the activities for which assistance
under this chapter is sought; and
``(B) provide such additional assurances as the
Secretary determines necessary to ensure compliance with
the requirements of this chapter.
``(b) Matching Requirement.--
``(1) In general.--The Secretary shall not approve a plan
submitted under subsection (a) unless such plan--
``(A) provides that the eligible entity will
provide, from State, local, institutional, or private
funds, not less than 50 percent of the cost of the
program, which matching funds may be provided in cash or
in kind;
``(B) specifies the methods by which matching funds
will be paid; and
``(C) includes provisions designed to ensure that
funds provided under this chapter shall supplement and
not supplant funds expended for existing programs.
``(2) Special rule.--Notwithstanding the matching
requirement described in paragraph (1)(A), the Secretary may by
regulation modify the percentage requirement described in
paragraph (1)(A) for eligible entities described in section
404A(c)(2).
``(c) Methods for Complying With Matching Requirement.--An eligible
entity may count toward the matching requirement described in subsection
(b)(1)(A)--
``(1) the amount of the financial assistance paid to
students from State, local, institutional, or private funds
under this chapter;
``(2) the amount of tuition, fees, room or board waived or
reduced for recipients of financial assistance under this
chapter; and
``(3) the amount expended on documented, targeted, long-term
mentoring and counseling provided by volunteers or paid staff of
nonschool organizations, including businesses, religious
organizations, community groups, postsecondary educational
institutions, nonprofit and philanthropic organizations, and
other organizations.
``(d) Peer Review Panels.--The Secretary shall convene peer review
panels to assist in making determinations regarding the awarding of
grants under this chapter.
``SEC. 404D. EARLY INTERVENTION. <<NOTE: 20 USC 1070a-24.>>
``(a) Services.--
``(1) In general.--In order to receive a grant under this
chapter, an eligible entity shall demonstrate to the
satisfaction of the Secretary, in the plan submitted under
section 404C,
[[Page 112 STAT. 1660]]
that the eligible entity will provide comprehensive mentoring,
counseling, outreach, and supportive services to students
participating in programs under this chapter. Such counseling
shall include--
``(A) financial aid counseling and information
regarding the opportunities for financial assistance
under this title; and
``(B) activities or information regarding--
``(i) fostering and improving parent
involvement in promoting the advantages of a
college education, academic admission
requirements, and the need to take college
preparation courses;
``(ii) college admissions and achievement
tests; and
``(iii) college application procedures.
``(2) Methods.--The eligible entity shall
demonstrate in such plan, pursuant to regulations of the
Secretary, the methods by which the eligible entity will
target services on priority students described in
subsection (c), if applicable.
``(b) Uses of Funds.--
``(1) <<NOTE: Regulations.>> In general.--The Secretary
shall, by regulation, establish criteria for determining whether
comprehensive mentoring, counseling, outreach, and supportive
services programs may be used to meet the requirements of
subsection (a).
``(2) Permissible activities.--Examples of activities that
meet the requirements of subsection (a) include the following:
``(A) Providing eligible students in preschool
through grade 12 with a continuing system of mentoring
and advising that--
``(i) is coordinated with the Federal and
State community service initiatives; and
``(ii) may include such support services as
after school and summer tutoring, assistance in
obtaining summer jobs, career mentoring, and
academic counseling.
``(B) Requiring each student to enter into an
agreement under which the student agrees to achieve
certain academic milestones, such as completing a
prescribed set of courses and maintaining satisfactory
progress described in section 484(c), in exchange for
receiving tuition assistance for a period of time to be
established by each eligible entity.
``(C) Activities designed to ensure secondary school
completion and college enrollment of at-risk children,
such as identification of at-risk children, after school
and summer tutoring, assistance in obtaining summer
jobs, academic counseling, volunteer and parent
involvement, providing former or current scholarship
recipients as mentor or peer counselors, skills
assessment, providing access to rigorous core courses
that reflect challenging academic standards, personal
counseling, family counseling and home visits, staff
development, and programs and activities described in
this subparagraph that are specially designed for
students of limited English proficiency.
``(D) Summer programs for individuals who are in
their sophomore or junior years of secondary school or
are planning to attend an institution of higher
education in the succeeding academic year that--
[[Page 112 STAT. 1661]]
``(i) are carried out at an institution of
higher education that has programs of academic
year supportive services for disadvantaged
students through projects authorized under section
402D or through comparable projects funded by the
State or other sources;
``(ii) provide for the participation of the
individuals who are eligible for assistance under
section 402D or who are eligible for comparable
programs funded by the State;
``(iii)(I) provide summer instruction in
remedial, developmental or supportive courses;
``(II) provide such summer services as
counseling, tutoring, or orientation; and
``(III) provide financial assistance to the
individuals to cover the individuals' summer costs
for books, supplies, living costs, and personal
expenses; and
``(iv) provide the individuals with financial
assistance during each academic year the
individuals are enrolled at the participating
institution after the summer program.
``(E) Requiring eligible students to meet other
standards or requirements as the State determines
necessary to meet the purposes of this section.
``(c) Priority Students.--For eligible entities not using a cohort
approach, the eligible entity shall treat as priority students any
student in preschool through grade 12 who is eligible--
``(1) to be counted under section 1124(c) of the Elementary
and Secondary Education Act of 1965;
``(2) for free or reduced price meals under the National
School Lunch Act; or
``(3) for assistance pursuant to part A of title IV of the
Social Security Act.
``(d) Allowable Providers.--In the case of eligible entities
described in section 404A(c)(1), the activities required by this section
may be provided by service providers such as community-based
organizations, schools, institutions of higher education, public and
private agencies, nonprofit and philanthropic organizations, businesses,
institutions and agencies sponsoring programs authorized under subpart
4, and other organizations the State deems appropriate.
``SEC. 404E. SCHOLARSHIP COMPONENT. <<NOTE: 20 USC 1070a-25.>>
``(a) In General.--
``(1) States.--In order to receive a grant under this
chapter, an eligible entity described in section 404A(c)(1)
shall establish or maintain a financial assistance program that
awards scholarships to students in accordance with the
requirements of this section. The Secretary shall encourage the
eligible entity to ensure that a scholarship provided pursuant
to this section is available to an eligible student for use at
any institution of higher education.
``(2) Partnerships.--An eligible entity described in section
404A(c)(2) may award scholarships to eligible students in
accordance with the requirements of this section.
``(b) Grant Amounts.--The maximum amount of a scholarship that an
eligible student shall be eligible to receive under this section shall
be established by the eligible entity. The minimum
[[Page 112 STAT. 1662]]
amount of the scholarship for each fiscal year shall not be less than
the lesser of--
``(1) <<NOTE: Regulations.>> 75 percent of the average cost
of attendance for an in-State student, in a 4-year program of
instruction, at public institutions of higher education in such
State, as determined in accordance with regulations prescribed
by the Secretary; or
``(2) the maximum Federal Pell Grant funded under section
401 for such fiscal year.
``(c) Relation to Other Assistance.--Scholarships provided under
this section shall not be considered for the purpose of awarding Federal
grant assistance under this title, except that in no case shall the
total amount of student financial assistance awarded to a student under
this title exceed such student's total cost of attendance.
``(d) Eligible Students.--A student eligible for assistance under
this section is a student who--
``(1) is less than 22 years old at time of first scholarship
award under this section;
``(2) receives a secondary school diploma or its recognized
equivalent on or after January 1, 1993;
``(3) is enrolled or accepted for enrollment in a program of
undergraduate instruction at an institution of higher education
that is located within the State's boundaries, except that, at
the State's option, an eligible entity may offer scholarship
program portability for recipients who attend institutions of
higher education outside such State; and
``(4) who participated in the early intervention component
required under section 404D.
``(e) Priority.--The Secretary shall ensure that each eligible
entity places a priority on awarding scholarships to students who will
receive a Federal Pell Grant for the academic year for which the
scholarship is awarded under this section.
``(f ) Special Rule.--An eligible entity may consider students who
have successfully participated in programs funded under chapter 1 to
have met the requirements of subsection (d)(4).
``SEC. 404F. 21ST CENTURY SCHOLAR CERTIFICATES. <<NOTE: 20 USC 1070a-
26.>>
``(a) Authority.--The Secretary, using funds appropriated under
section 404H that do not exceed $200,000 for a fiscal year--
``(1) shall ensure that certificates, to be known as 21st
Century Scholar Certificates, are provided to all students
participating in programs under this chapter; and
``(2) may, as practicable, ensure that such certificates are
provided to all students in grades 6 through 12 who attend
schools at which at least 50 percent of the students enrolled
are eligible for a free or reduced price lunch under the
National School Lunch Act.
``(b) Information Required.--A 21st Century Scholar Certificate
shall be personalized for each student and indicate the amount of
Federal financial aid for college which a student may be eligible to
receive.
``SEC. 404G. EVALUATION AND REPORT. <<NOTE: 20 USC 1070a-27.>>
``(a) Evaluation.--Each eligible entity receiving a grant under this
chapter shall biennially evaluate the activities assisted under
[[Page 112 STAT. 1663]]
this chapter in accordance with the standards described in subsection
(b) and shall submit to the Secretary a copy of such evaluation. The
evaluation shall permit service providers to track eligible student
progress during the period such students are participating in the
activities and shall be consistent with the standards developed by the
Secretary pursuant to subsection (b).
``(b) Evaluation Standards.--The Secretary shall prescribe standards
for the evaluation described in subsection (a). Such standards shall--
``(1) provide for input from eligible entities and service
providers; and
``(2) ensure that data protocols and procedures are
consistent and uniform.
``(c) Federal Evaluation.--In order to evaluate and improve the
impact of the activities assisted under this chapter, the Secretary
shall, from not more than 0.75 percent of the funds appropriated under
section 404H for a fiscal year, award one or more grants, contracts, or
cooperative agreements to or with public and private institutions and
organizations, to enable the institutions and organizations to evaluate
the effectiveness of the program and, as appropriate, disseminate the
results of the evaluation.
``(d) Report.--The Secretary shall biennially report to Congress
regarding the activities assisted under this chapter and the evaluations
conducted pursuant to this section.
``SEC. 404H. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 1070a-
28.>>
``There are authorized to be appropriated to carry out this chapter
$200,000,000 for fiscal year 1999 and such sums as may be necessary for
each of the 4 succeeding fiscal years.''.
SEC. 404. ACADEMIC ACHIEVEMENT INCENTIVE SCHOLARSHIPS.
Chapter 3 of subpart 2 of part A of title IV (20 U.S.C. 1070a-31 et
seq.) is amended to read as follows:
``CHAPTER 3--ACADEMIC ACHIEVEMENT INCENTIVE SCHOLARSHIPS
``SEC. 406A. SCHOLARSHIPS AUTHORIZED. <<NOTE: 20 USC 1070a-31.>>
``The Secretary is authorized to award scholarships to students who
graduate from secondary school after May 1, 2000, to enable the students
to pay the cost of attendance at an institution of higher education
during the students first 2 academic years of undergraduate education,
if the students--
``(1) are eligible to receive Federal Pell Grants for the
year in which the scholarships are awarded; and
``(2) demonstrate academic achievement by graduating in the
top 10 percent of their secondary school graduating class.
``SEC. 406B. SCHOLARSHIP PROGRAM REQUIREMENTS. <<NOTE: 20 USC 1070a-
32.>>
``(a) Amount of Award.--
``(1) In general.--Except as provided in paragraph (2), the
amount of a scholarship awarded under this chapter for any
academic year shall be equal to 100 percent of the amount of the
Federal Pell Grant for which the recipient is eligible for the
academic year.
``(2) Adjustment for insufficient appropriations.--If, after
the Secretary determines the total number of eligible applicants
for an academic year in accordance with section
[[Page 112 STAT. 1664]]
406C, funds available to carry out this chapter for the academic
year are insufficient to fully fund all awards under this
chapter for the academic year, the amount of the scholarship
paid to each student under this chapter shall be reduced
proportionately.
``(b) Assistance Not To Exceed Cost of Attendance.--A scholarship
awarded under this chapter to any student, in combination with the
Federal Pell Grant assistance and other student financial assistance
available to such student, may not exceed the student's cost of
attendance.
``SEC. 406C. ELIGIBILITY OF SCHOLARS. <<NOTE: 20 USC 1070a-33.>>
``(a) Procedures Established by Regulation.--The Secretary shall
establish by regulation procedures for the determination of eligibility
of students for the scholarships awarded under this chapter. Such
procedures shall include measures to prevent any secondary school from
certifying more than 10 percent of the school's students for eligibility
under this section.
``(b) Coordination.--In prescribing procedures under subsection (a),
the Secretary shall ensure that the determination of eligibility and the
amount of the scholarship is determined in a timely and accurate manner
consistent with the requirements of section 482 and the submission of
the financial aid form required by section 483. For such purposes, the
Secretary may provide that, for the first academic year of a student's 2
academic years of eligibility under this chapter, class rank may be
determined prior to graduation from secondary school, at such time and
in such manner as the Secretary may specify in regulations prescribed
under this chapter.
``SEC. 406D. STUDENT REQUIREMENTS. <<NOTE: 20 USC 1070a-34.>>
``(a) In General.--Each eligible student desiring a scholarship
under this chapter shall submit an application to the Secretary at such
time, in such manner, and containing such information as the Secretary
may reasonably require.
``(b) Continuing Eligibility.--In order for a student to continue to
be eligible to receive a scholarship under this chapter for the second
year of undergraduate education, the eligible student shall maintain
eligibility to receive a Federal Pell Grant for that year, including
fulfilling the requirements for satisfactory progress described in
section 484(c).
``SEC. 407E. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 1070a-
35.>>
``There are authorized to be appropriated to carry out this chapter
$200,000,000 for fiscal year 1999 and such sums as may be necessary for
each of the 4 succeeding fiscal years.''.
SEC. 405. REPEALS.
Chapters 4 through 8 of subpart 2 of part A of title IV (20 U.S.C.
1070a-41 et seq. and 1070a-81 et seq.) <<NOTE: 20 USC 1070a-41 et seq.,
1070a-51 et seq., 1070a-61, 1070a-71, 1070a-81.>> are repealed.
SEC. 406. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.
(a) Authorization of Appropriations.--Section 413A(b)(1) (20 U.S.C.
1070b(b)(1)) is amended by striking ``1993'' and inserting ``1999''.
[[Page 112 STAT. 1665]]
(b) Use of Funds for Less-Than-Full-Time Students.--Subsection (d)
of section 413C (20 U.S.C. 1070b-2) is amended to read as follows:
``(d) Use of Funds for Less-Than-Full-Time Students.--If the
institution's allocation under this subpart is directly or indirectly
based in part on the financial need demonstrated by students who are
independent students or attending the institution on less than a full-
time basis, then a reasonable proportion of the allocation shall be made
available to such students.''.
(c) Allocation of Funds.--
(1) Updating the base period.--Section 413D(a) (20 U.S.C.
1070b-3(a)) is amended--
(A) in paragraph (1), by striking ``received and
used under this part for fiscal year 1985'' and
inserting ``received under subsections (a) and (b) of
this section for fiscal year 1999 (as such subsections
were in effect with respect to allocations for such
fiscal year)'';
(B) in paragraph (2)--
(i) in subparagraphs (A) and (B), by striking
``1985'' each place the term appears and inserting
``1999''; and
(ii) in subparagraph (C)(i), by striking
``1986'' and inserting ``2000''.
(2) Elimination of pro rata share.--Section 413D is further
amended--
(A) by striking subsection (b);
(B) in subsection (c)(1), by striking ``three-
quarters of the remainder'' and inserting ``the
remainder'';
(C) in subsection (c)(2)(A)(i), by striking
``subsection (d)'' and inserting ``subsection (c)''; and
(D) by redesignating subsections (c), (d), (e), and
(f ) as subsections (b), (c), (d), and (e),
respectively.
(3) <<NOTE: Applicability. 20 USC 1070b-3 note.>> Effective
Date.--The amendments made by this subsection shall apply with
respect to allocations of amounts appropriated pursuant to
section 413A(b) of the Higher Education Act of 1965 for fiscal
year 2000 or any succeeding fiscal year.
(d) Carryover and Carryback Authority.--Subpart 3 of part A of title
IV (20 U.S.C. 1070b et seq.) is amended by adding at the end the
following:
``SEC. 413E. CARRYOVER AND CARRYBACK AUTHORITY. <<NOTE: 20 USC 1070b-
4.>>
``(a) Carryover Authority.--Of the sums made available to an
eligible institution under this subpart for a fiscal year, not more than
10 percent may, at the discretion of the institution, remain available
for expenditure during the succeeding fiscal year to carry out the
program under this subpart.
``(b) Carryback Authority.--
``(1) In general.--Of the sums made available to an eligible
institution under this subpart for a fiscal year, not more than
10 percent may, at the discretion of the institution, be used by
the institution for expenditure for the fiscal year preceding
the fiscal year for which the sums were appropriated.
``(2) Use of carried-back funds.--An eligible institution
may make grants to students after the end of the academic year,
but prior to the beginning of the succeeding fiscal year, from
such succeeding fiscal year's appropriations.''.
[[Page 112 STAT. 1666]]
SEC. 407. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM.
(a) Amendment to Subpart Heading.--
(1) In general.--The heading for subpart 4 of part A of
title IV (20 U.S.C. 1070c et seq.) is amended to read as
follows:
``Subpart 4--Leveraging Educational Assistance Partnership Program''.
(2) Conforming amendments.--Subpart 4 of part A of title IV
(20 U.S.C. 1070c et seq.) is amended--
(A) in section 415B(b) (20 U.S.C. 1070c-1(b)), by
striking ``State student grant incentive'' and inserting
``leveraging educational assistance partnership''; and
(B) in the heading for section 415C (20 U.S.C.
1070c-2), by striking ``state student incentive grant''
and inserting ``leveraging educational assistance
partnership''.
(b) Authorization of Appropriations.--Section 415A(b) (20 U.S.C.
1070c(b)) is amended--
(1) in paragraph (1), by striking ``1993'' and inserting
``1999'';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) Reservation.--For any fiscal year for which the amount
appropriated under paragraph (1) exceeds $30,000,000, the excess
shall be available to carry out section 415E.''.
(c) Special Leveraging Educational Assistance Partnership Program.--
Subpart 4 of part A of title IV (20 U.S.C. 1070c et seq.) is amended--
(1) by redesignating section 415E <<NOTE: 20 USC 1070c-
4.>> as 415F; and
(2) by inserting after section 415D the following:
``SEC. 415E. <<NOTE: 20 USC 1070c-3a.>> SPECIAL LEVERAGING EDUCATIONAL
ASSISTANCE PARTNERSHIP PROGRAM.
``(a) In General.--From amounts reserved under section 415A(b)(2)
for each fiscal year, the Secretary shall--
``(1) make allotments among States in the same manner as the
Secretary makes allotments among States under section 415B; and
``(2) award grants to States, from allotments under
paragraph (1), to enable the States to pay the Federal share of
the cost of the authorized activities described in subsection
(c).
``(b) Applicability Rule.--The provisions of this subpart which are
not inconsistent with this section shall apply to the program authorized
by this section.
``(c) Authorized Activities.--Each State receiving a grant under
this section may use the grant funds for--
``(1) increasing the dollar amount of grants awarded under
section 415B to eligible students who demonstrate financial
need;
``(2) carrying out transition programs from secondary school
to postsecondary education for eligible students who demonstrate
financial need;
[[Page 112 STAT. 1667]]
``(3) carrying out a financial aid program for eligible
students who demonstrate financial need and wish to enter
careers in information technology, or other fields of study
determined by the State to be critical to the State's workforce
needs;
``(4) making funds available for community service work-
study activities for eligible students who demonstrate financial
need;
``(5) creating a postsecondary scholarship program for
eligible students who demonstrate financial need and wish to
enter teaching;
``(6) creating a scholarship program for eligible students
who demonstrate financial need and wish to enter a program of
study leading to a degree in mathematics, computer science, or
engineering;
``(7) carrying out early intervention programs, mentoring
programs, and career education programs for eligible students
who demonstrate financial need; and
``(8) awarding merit or academic scholarships to eligible
students who demonstrate financial need.
``(d) Maintenance of Effort Requirement.--Each State receiving a
grant under this section for a fiscal year shall provide the Secretary
an assurance that the aggregate amount expended per student or the
aggregate expenditures by the State, from funds derived from non-Federal
sources, for the authorized activities described in subsection (c) for
the preceding fiscal year were not less than the amount expended per
student or the aggregate expenditures by the State for the activities
for the second preceding fiscal year.
``(e) Federal Share.--The Federal share of the cost of the
authorized activities described in subsection (c) for any fiscal year
shall be not more than 33\1/3\ percent.''.
(c) Technical and Conforming Amendments.--
(1) Purpose.--Subsection (a) of section 415A (20 U.S.C.
1070c(a)) is amended to read as follows:
``(a) Purpose of Subpart.--It is the purpose of this subpart to make
incentive grants available to States to assist States in--
``(1) providing grants to--
``(A) eligible students attending institutions of
higher education or participating in programs of study
abroad that are approved for credit by institutions of
higher education at which such students are enrolled;
and
``(B) eligible students for campus-based community
service work-study; and
``(2) carrying out the activities described in section
415F.''.
(2) Allotment.--Section 415B(a)(1) (20 U.S.C. 1070c-1(a)(1))
is amended by inserting ``and not reserved under section
415A(b)(2)'' after ``415A(b)(1)''.
SEC. 408. SPECIAL PROGRAMS FOR STUDENTS WHOSE FAMILIES ARE ENGAGED IN
MIGRANT AND SEASONAL FARMWORK.
(a) Coordination.--Section 418A(d) (20 U.S.C. 1070d-2(d)) is amended
by inserting after ``contains assurances'' the following: ``that the
grant recipient will coordinate the project, to the extent feasible,
with other local, State, and Federal programs to maximize the resources
available for migrant students, and''.
[[Page 112 STAT. 1668]]
(b) <<NOTE: 20 USC 1070d-2.>> Authorization of Appropriations.--
Section 418A(g) is amended by striking ``1993'' each place the term
appears and inserting ``1999''.
(c) Data Collection.--Section 418A is amended--
(1) by redesignating subsection (g) (as amended by
subsection (b)) as subsection (h); and
(2) by inserting after subsection (f ) the following:
``(g) Data Collection.--The National Center for Education Statistics
shall collect postsecondary education data on migrant students.''.
(d) Technical Amendment.--Section 418A(e) is amended by striking
``authorized by subpart 4 of this part in accordance with section
417A(b)(2)'' and inserting ``in accordance with section 402A(c)(1)''.
SEC. 409. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.
(a) FAS Eligibility.--Section 419D (20 U.S.C. 1070d-34) is amended
by adding at the end thereof the following:
``(e) FAS Eligibility.--
``(1) Fiscal years 2000 through 2004.--Notwithstanding any
other provision of this subpart, in the case of students from
the Freely Associated States who may be selected to receive a
scholarship under this subpart for the first time for any of the
fiscal years 2000 through 2004--
``(A) there shall be 10 scholarships in the
aggregate awarded to such students for each of the
fiscal years 2000 through 2004; and
``(B) the Pacific Regional Educational Laboratory
shall administer the program under this subpart in the
case of scholarships for students in the Freely
Associated States.
``(2) Termination of eligibility.--A student from the Freely
Associated States shall not be eligible to receive a scholarship
under this subpart after September 30, 2004.''.
(b) Authorization of Appropriations.--Section 419K (20 U.S.C. 1070d-
41) is amended by striking ``$10,000,000 for fiscal year 1993'' and
inserting ``$45,000,000 for fiscal year 1999''.
SEC. 410. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL.
Part A of title IV (20 U.S.C. 1070 et seq.) is amended by inserting
after subpart 6 (20 U.S.C. 1070d-31 et seq.) the following:
``Subpart 7--Child Care Access Means Parents in School
``SEC. 419N. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL. <<NOTE: 20 USC
1070e.>>
``(a) Purpose.--The purpose of this section is to support the
participation of low-income parents in postsecondary education through
the provision of campus-based child care services.
``(b) Program Authorized.--
``(1) Authority.--The Secretary may award grants to
institutions of higher education to assist the institutions in
providing campus-based child care services to low-income
students.
``(2) Amount of grants.--
``(A) In general.--The amount of a grant awarded to
an institution of higher education under this section
for a fiscal year shall not exceed 1 percent of the
total
[[Page 112 STAT. 1669]]
amount of all Federal Pell Grant funds awarded to
students enrolled at the institution of higher education
for the preceding fiscal year.
``(B) Minimum.--A grant under this section shall be
awarded in an amount that is not less than $10,000.
``(3) Duration; renewal; and payments.--
``(A) Duration.--The Secretary shall award a grant
under this section for a period of 4 years.
``(B) Payments.--Subject to subsection (e)(2), the
Secretary shall make annual grant payments under this
section.
``(4) Eligible institutions.--An institution of higher
education shall be eligible to receive a grant under this
section for a fiscal year if the total amount of all Federal
Pell Grant funds awarded to students enrolled at the institution
of higher education for the preceding fiscal year equals or
exceeds $350,000.
``(5) Use of funds.--Grant funds under this section shall be
used by an institution of higher education to support or
establish a campus-based child care program primarily serving
the needs of low-income students enrolled at the institution of
higher education. Grant funds under this section may be used to
provide before and after school services to the extent necessary
to enable low-income students enrolled at the institution of
higher education to pursue postsecondary education.
``(6) Construction.--Nothing in this section shall be
construed to prohibit an institution of higher education that
receives grant funds under this section from serving the child
care needs of the community served by the institution.
``(7) Definition of low-income student.--For the purpose of
this section, the term ``low-income student'' means a student
who is eligible to receive a Federal Pell Grant for the fiscal
year for which the determination is made.
``(c) Applications.--An institution of higher education desiring a
grant under this section shall submit an application to the Secretary at
such time, in such manner, and accompanied by such information as the
Secretary may require. Each application shall--
``(1) demonstrate that the institution is an eligible
institution described in subsection (b)(4);
``(2) specify the amount of funds requested;
``(3) demonstrate the need of low-income students at the
institution for campus-based child care services by including in
the application--
``(A) information regarding student demographics;
``(B) an assessment of child care capacity on or
near campus;
``(C) information regarding the existence of waiting
lists for existing child care;
``(D) information regarding additional needs created
by concentrations of poverty or by geographic isolation;
and
``(E) other relevant data;
``(4) contain a description of the activities to be
assisted, including whether the grant funds will support an
existing child care program or a new child care program;
``(5) identify the resources, including technical expertise
and financial support, the institution will draw upon to support
[[Page 112 STAT. 1670]]
the child care program and the participation of low-income
students in the program, such as accessing social services
funding, using student activity fees to help pay the costs of
child care, using resources obtained by meeting the needs of
parents who are not low-income students, and accessing
foundation, corporate or other institutional support, and
demonstrate that the use of the resources will not result in
increases in student tuition;
``(6) contain an assurance that the institution will meet
the child care needs of low-income students through the
provision of services, or through a contract for the provision
of services;
``(7) describe the extent to which the child care program
will coordinate with the institution's early childhood education
curriculum, to the extent the curriculum is available, to meet
the needs of the students in the early childhood education
program at the institution, and the needs of the parents and
children participating in the child care program assisted under
this section;
``(8) in the case of an institution seeking assistance for a
new child care program--
``(A) provide a timeline, covering the period from
receipt of the grant through the provision of the child
care services, delineating the specific steps the
institution will take to achieve the goal of providing
low-income students with child care services;
``(B) specify any measures the institution will take
to assist low-income students with child care during the
period before the institution provides child care
services; and
``(C) include a plan for identifying resources
needed for the child care services, including space in
which to provide child care services, and technical
assistance if necessary;
``(9) contain an assurance that any child care facility
assisted under this section will meet the applicable State or
local government licensing, certification, approval, or
registration requirements; and
``(10) contain a plan for any child care facility assisted
under this section to become accredited within 3 years of the
date the institution first receives assistance under this
section.
``(d) Priority.--The Secretary shall give priority in awarding
grants under this section to institutions of higher education that
submit applications describing programs that--
``(1) leverage significant local or institutional resources,
including in-kind contributions, to support the activities
assisted under this section; and
``(2) utilize a sliding fee scale for child care services
provided under this section in order to support a high number of
low-income parents pursuing postsecondary education at the
institution.
``(e) Reporting Requirements; Continuing Eligibility.--
``(1) Reporting requirements.--
``(A) Reports.--Each institution of higher education
receiving a grant under this section shall report to the
Secretary 18 months, and 36 months, after receiving the
first grant payment under this section.
[[Page 112 STAT. 1671]]
``(B) Contents.--The report shall include--
``(i) data on the population served under this
section;
``(ii) information on campus and community
resources and funding used to help low-income
students access child care services;
``(iii) information on progress made toward
accreditation of any child care facility; and
``(iv) information on the impact of the grant
on the quality, availability, and affordability of
campus-based child care services.
``(2) Continuing eligibility.--The Secretary shall make the
third annual grant payment under this section to an institution
of higher education only if the Secretary determines, on the
basis of the 18-month report submitted under paragraph (1), that
the institution is making a good faith effort to ensure that
low-income students at the institution have access to
affordable, quality child care services.
``(f ) Construction.--No funds provided under this section shall be
used for construction, except for minor renovation or repair to meet
applicable State or local health or safety requirements.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $45,000,000 for fiscal year 1999
and such sums as may be necessary for each of the 4 succeeding fiscal
years.''.
SEC. 411. LEARNING ANYTIME ANYWHERE PARTNERSHIPS.
Subpart 8 of part A of title IV (20 U.S.C. 1070 et seq.) is amended
to read as follows:
``Subpart 8--Learning Anytime Anywhere Partnerships
``SEC. 420D. FINDINGS. <<NOTE: 20 USC 1070f.>>
``Congress makes the following findings:
``(1) The nature of postsecondary education delivery is
changing, and new technology and other related innovations can
provide promising education opportunities for individuals who
are currently not being served, particularly for individuals
without easy access to traditional campus-based postsecondary
education or for whom traditional courses are a poor match with
education or training needs.
``(2) Individuals, including individuals seeking basic or
technical skills or their first postsecondary experience,
individuals with disabilities, dislocated workers, individuals
making the transition from welfare-to-work, and individuals who
are limited by time and place constraints can benefit from
nontraditional, noncampus-based postsecondary education
opportunities and appropriate support services.
``(3) The need for high-quality, nontraditional, technology-
based education opportunities is great, as is the need for skill
competency credentials and other measures of educational
progress and attainment that are valid and widely accepted, but
neither need is likely to be adequately addressed by the
uncoordinated efforts of agencies and institutions acting
independently and without assistance.
[[Page 112 STAT. 1672]]
``(4) Partnerships, consisting of institutions of higher
education, community organizations, or other public or private
agencies or organizations, can coordinate and combine
institutional resources--
``(A) to provide the needed variety of education
options to students; and
``(B) to develop new means of ensuring
accountability and quality for innovative education
methods.
``SEC. 420E. PURPOSE; PROGRAM AUTHORIZED. <<NOTE: 20 USC 1070f-1.>>
``(a) Purpose.--It is the purpose of this subpart to enhance the
delivery, quality, and accountability of postsecondary education and
career-oriented lifelong learning through technology and related
innovations.
``(b) Program Authorized.--
``(1) Grants.--
``(A) In general.--The Secretary may, from funds
appropriated under section 420J make grants to, or enter
into contracts or cooperative agreements with, eligible
partnerships to carry out the authorized activities
described in section 420G.
``(B) Duration.--Grants under this subpart shall be
awarded for periods that do not exceed 5 years.
``(2) Definition of eligible partnership.--For purposes of
this subpart, the term `eligible partnership' means a
partnership consisting of 2 or more independent agencies,
organizations, or institutions. The agencies, organizations, or
institutions may include institutions of higher education,
community organizations, and other public and private
institutions, agencies, and organizations.
``SEC. 420F. APPLICATION. <<NOTE: 20 USC 1070f-2.>>
``(a) Requirement.--An eligible partnership desiring to receive a
grant under this subpart shall submit an application to the Secretary,
in such form and containing such information, as the Secretary may
require.
``(b) Contents.--Each application shall include--
``(1) the name of each partner and a description of the
responsibilities of the partner, including the designation of a
nonprofit organization as the fiscal agent for the partnership;
``(2) a description of the need for the project, including a
description of how the project will build on any existing
services and activities;
``(3) a listing of human, financial (other than funds
provided under this subpart), and other resources that each
member of the partnership will contribute to the partnership,
and a description of the efforts each member of the partnership
will make in seeking additional resources; and
``(4) a description of how the project will operate,
including how funds awarded under this subpart will be used to
meet the purpose of this subpart.
``SEC. 420G. AUTHORIZED ACTIVITIES. <<NOTE: 20 USC 1070f-3.>>
``Funds awarded to an eligible partnership under this subpart shall
be used to--
``(1) develop and assess model distance learning programs or
innovative educational software;
[[Page 112 STAT. 1673]]
``(2) develop methodologies for the identification and
measurement of skill competencies;
``(3) develop and assess innovative student support
services; or
``(4) support other activities that are consistent with the
purpose of this subpart.
``SEC. 420H. MATCHING REQUIREMENT. <<NOTE: 20 USC 1070f-4.>>
``Federal funds shall provide not more than 50 percent of the cost
of a project under this subpart. The non-Federal share of project costs
may be in cash or in kind, fairly evaluated, including services,
supplies, or equipment.
``SEC. 420I. PEER REVIEW. <<NOTE: 20 USC 1070f-5.>>
``The Secretary shall use a peer review process to review
applications under this subpart and to make recommendations for funding
under this subpart to the Secretary.
``SEC. 420J. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 1070f-6.>>
``There are authorized to be appropriated to carry out this subpart
$10,000,000 for fiscal year 1999 and such sums as may be necessary for
each of the 4 succeeding fiscal years.''.
PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM
SEC. 411. LIMITATION REPEALED.
Section 421 (20 U.S.C. 1071) is amended by striking subsection (d).
SEC. 412. ADVANCES TO RESERVE FUNDS.
Section 422 (20 U.S.C. 1072) is amended--
(1) in subsection (a)(2), by striking ``428(c)(10)(E)'' and
inserting ``428(c)(9)(E)'';
(2) in subsection (c)--
(A) in paragraph (6)(B)(i), by striking ``written''
and inserting ``written, electronic,'';
(B) in paragraph (7)(A), by striking ``during the
transition from the Federal Family Education Loan
Program under this part to the Federal Direct Student
Loan Program under part D of this title''; and
(C) in paragraph (7)(B), by striking
``428(c)(10)(F)(v)'' and inserting ``428(c)(9)(F)(v)'';
(3) in the first and second sentences of subsection (g)(1),
by striking ``or the program authorized by part D of this
title'' each place it appears; and
(4) by adding at the end the following:
``(i) Additional Recall of Reserves.--
``(1) In general.--Notwithstanding any other provision of
law and subject to paragraph (4), the Secretary shall recall,
from reserve funds held in the Federal Student Loan Reserve
Funds established under section 422A by guaranty agencies--
``(A) $85,000,000 in fiscal year 2002;
``(B) $82,500,000 in fiscal year 2006; and
``(C) $82,500,000 in fiscal year 2007.
``(2) Deposit.--Funds recalled by the Secretary under this
subsection shall be deposited in the Treasury.
[[Page 112 STAT. 1674]]
``(3) Required share.--The Secretary shall require each
guaranty agency to return reserve funds under paragraph (1) on
the basis of the agency's required share. For purposes of this
paragraph, a guaranty agency's required share shall be
determined as follows:
``(A) Equal percentage.--The Secretary shall require
each guaranty agency to return an amount representing an
equal percentage reduction in the amount of reserve
funds held by the agency on September 30, 1996.
``(B) Calculation.--The equal percentage reduction
shall be the percentage obtained by dividing--
``(i) $250,000,000, by
``(ii) the total amount of all guaranty
agencies' reserve funds held on September 30,
1996, less any amounts subject to recall under
subsection (h).
``(C) Special rule.--Notwithstanding subparagraphs
(A) and (B), the percentage reduction under subparagraph
(B) shall not result in the depletion of the reserve
funds of any agency which charges the 1.0 percent
insurance premium pursuant to section 428(b)(1)(H) below
an amount equal to the amount of lender claim payments
paid during the 90 days prior to the date of the return
under this subsection. If any additional amount is
required to be returned after deducting the total of the
required shares under subparagraph (B) and as a result
of the preceding sentence, such additional amount shall
be obtained by imposing on each guaranty agency to which
the preceding sentence does not apply, an equal
percentage reduction in the amount of the agency's
remaining reserve funds.
``(4) Offset of required shares.--If any guaranty agency
returns to the Secretary any reserve funds in excess of the
amount required under this subsection or subsection (h), the
total amount required to be returned under paragraph (1) shall
be reduced by the amount of such excess reserve funds returned.
``(5) Definition of reserve funds.--The term `reserve funds'
when used with respect to a guaranty agency--
``(A) includes any reserve funds in cash or liquid
assets held by the guaranty agency, or held by, or under
the control of, any other entity; and
``(B) does not include buildings, equipment, or
other nonliquid assets.''.
SEC. 413. GUARANTY AGENCY REFORMS.
(a) Federal Student Loan Reserve Fund.--Part B of title IV is
amended by inserting after section 422 (20 U.S.C. 1072) the following
new section:
``SEC. 422A. FEDERAL STUDENT LOAN RESERVE FUND. <<NOTE: 20 USC 1072a.>>
``(a) <<NOTE: Deadline.>> Establishment.--Each guaranty agency
shall, not later than 60 days after the date of enactment of this
section, deposit all funds, securities, and other liquid assets
contained in the reserve fund established pursuant to section 422 into a
Federal Student Loan Reserve Fund (in this section and section 422B
referred to as the `Federal Fund'), which shall be an account of a type
selected by the agency, with the approval of the Secretary.
``(b) Investment of Funds.--Funds transferred to the Federal Fund
shall be invested in obligations issued or guaranteed by the United
States or a State, or in other similarly low-risk securities
[[Page 112 STAT. 1675]]
selected by the guaranty agency, with the approval of the Secretary.
Earnings from the Federal Fund shall be the sole property of the Federal
Government.
``(c) Additional Deposits.--After the establishment of the Federal
Fund, a guaranty agency shall deposit into the Federal Fund--
``(1) all amounts received from the Secretary as payment of
reinsurance on loans pursuant to section 428(c)(1);
``(2) from amounts collected on behalf of the obligation of
a defaulted borrower, a percentage amount equal to the
complement of the reinsurance percentage in effect when payment
under the guaranty agreement was made--
``(A) with respect to the defaulted loan pursuant to
sections 428(c)(6)(A) and 428F(a)(1)(B); and
``(B) with respect to a loan that the Secretary has
repaid or discharged under section 437;
``(3) insurance premiums collected from borrowers pursuant
to sections 428(b)(1)(H) and 428H(h);
``(4) all amounts received from the Secretary as payment for
supplemental preclaims activity performed prior to the date of
enactment of this section;
``(5) 70 percent of amounts received after such date of
enactment from the Secretary as payment for administrative cost
allowances for loans upon which insurance was issued prior to
such date of enactment; and
``(6) other receipts as specified in regulations of the
Secretary.
``(d) Uses of Funds.--Subject to subsection (f ), the Federal Fund
may only be used by a guaranty agency--
``(1) to pay lender claims pursuant to sections
428(b)(1)(G), 428( j), 437, and 439(q); and
``(2) to pay into the Agency Operating Fund established
pursuant to section 422B (in this section and section 422B
referred to as the ``Operating Fund'') a default aversion fee in
accordance with section 428(l).
``(e) Ownership of Federal Fund.--The Federal Fund, and any
nonliquid asset (such as a building or equipment) developed or purchased
by the guaranty agency in whole or in part with Federal reserve funds,
regardless of who holds or controls the Federal reserve funds or such
asset, shall be considered to be the property of the United States,
prorated based on the percentage of such asset developed or purchased
with Federal reserve funds, which property shall be used in the
operation of the program authorized by this part, as provided in
subsection (d). The Secretary may restrict or regulate the use of such
asset only to the extent necessary to reasonably protect the Secretary's
prorated share of the value of such asset. The Secretary may direct a
guaranty agency, or such agency's officers or directors, to cease any
activity involving expenditures, use, or transfer of the Federal Fund
administered by the guaranty agency that the Secretary determines is a
misapplication, misuse, or improper expenditure of the Federal Fund or
the Secretary's share of such asset.
``(f ) Transition.--
``(1) In general.--In order to establish the Operating Fund,
each guaranty agency may transfer not more than 180 days' cash
expenses for normal operating expenses (not including claim
payments) as a working capital reserve as defined in
[[Page 112 STAT. 1676]]
Office of Management and Budget Circular A-87 (Cost Accounting
Standards) from the Federal Fund for deposit into the Operating
Fund for use in the performance of the guaranty agency's duties
under this part. Such transfers may occur during the first 3
years following the establishment of the Operating Fund.
However, no agency may transfer in excess of 45 percent of the
balance, as of September 30, 1998, of the agency's Federal Fund
to the agency's Operating Fund during such 3-year period. In
determining the amount that may be transferred, the agency shall
ensure that sufficient funds remain in the Federal Fund to pay
lender claims within the required time periods and to meet the
reserve recall requirements of this section and subsections (h)
and (i) of section 422.
``(2) Special rule.--A limited number of guaranty agencies
may transfer interest earned on the Federal Fund to the
Operating Fund during the first 3 years after the date of
enactment of this section if the guaranty agency demonstrates to
the Secretary that--
``(A) the cash flow in the Operating Fund will be
negative without the transfer of such interest; and
``(B) the transfer of such interest will
substantially improve the financial circumstances of the
guaranty agency.
``(3) Repayment provisions.--Each guaranty agency shall
begin repayment of sums transferred pursuant to this subsection
not later than the start of the fourth year after the
establishment of the Operating Fund, and shall repay all amounts
transferred not later than 5 years from the date of the
establishment of the Operating Fund. With respect to amounts
transferred from the Federal Fund, the guaranty agency shall not
be required to repay any interest on the funds transferred and
subsequently repaid. The guaranty agency shall provide to the
Secretary a reasonable schedule for repayment of the sums
transferred and an annual financial analysis demonstrating the
agency's ability to comply with the schedule and repay all
outstanding sums transferred.
``(4) Prohibition.--If a guaranty agency transfers funds
from the Federal Fund in accordance with this section, and fails
to make scheduled repayments to the Federal Fund, the agency may
not receive any other funds under this part until the Secretary
determines that the agency has made such repayments. The
Secretary shall pay to the guaranty agency any funds withheld in
accordance with this paragraph immediately upon making the
determination that the guaranty agency has made all such
repayments.
``(5) Waiver.--The Secretary may--
``(A) waive the requirements of paragraph (3), but
only with respect to repayment of interest that was
transferred in accordance with paragraph (2); and
``(B) waive paragraph (4);
for a guaranty agency, if the Secretary determines that there
are extenuating circumstances (such as State constitutional
prohibitions) beyond the control of the agency that justify such
a waiver.
``(6) Extension of repayment period for interest.--
[[Page 112 STAT. 1677]]
``(A) Extension permitted.--The Secretary shall
extend the period for repayment of interest that was
transferred in accordance with paragraph (2) from 2
years to 5 years if the Secretary determines that--
``(i) the cash flow of the Operating Fund will
be negative as a result of repayment as required
by paragraph (3);
``(ii) the repayment of the interest
transferred will substantially diminish the
financial circumstances of the guaranty agency;
and
``(iii) the guaranty agency has demonstrated--
``(I) that the agency is able to
repay all transferred funds by the end
of the 8th year following the date of
establishment of the Operating Fund; and
``(II) that the agency will be
financially sound on the completion of
repayment.
``(B) Repayment of income on transferred funds.--All
repayments made to the Federal Fund during the 6th, 7th,
and 8th years following the establishment of the
Operating Fund of interest that was transferred shall
include the sums transferred plus any income earned from
the investment of the sums transferred after the 5th
year.
``(7) Investment of federal funds.--Funds transferred from
the Federal Fund to the Operating Fund for operating expenses
shall be invested in obligations issued or guaranteed by the
United States or a State, or in other similarly low-risk
securities selected by the guaranty agency, with the approval of
the Secretary.
``(8) Special rule.--In calculating the minimum reserve
level required by section 428(c)(9)(A), the Secretary shall
include all amounts owed to the Federal Fund by the guaranty
agency in the calculation.''.
(b) Agency Operating Fund Established.--Part B of title IV is
further amended by inserting after section 422A (as added by subsection
(a)) the following new section:
``SEC. 422B. AGENCY OPERATING FUND. <<NOTE: 20 USC 1072b.>>
``(a) <<NOTE: Deadline.>> Establishment.--Each guaranty agency
shall, not later than 60 days after the date of enactment of this
section, establish a fund designated as the Operating Fund.
``(b) Investment of Funds.--Funds deposited into the Operating Fund
shall be invested at the discretion of the guaranty agency in accordance
with prudent investor standards.
``(c) Additional Deposits.--After the establishment of the Operating
Fund, the guaranty agency shall deposit into the Operating Fund--
``(1) the loan processing and issuance fee paid by the
Secretary pursuant to section 428(f );
``(2) 30 percent of amounts received after the date of
enactment of this section from the Secretary as payment for
administrative cost allowances for loans upon which insurance
was issued prior to such date of enactment;
``(3) the account maintenance fee paid by the Secretary in
accordance with section 458;
``(4) the default aversion fee paid in accordance with
section 428(l);
[[Page 112 STAT. 1678]]
``(5) amounts remaining pursuant to section 428(c)(6)(B)
from collection on defaulted loans held by the agency, after
payment of the Secretary's equitable share, excluding amounts
deposited in the Federal Fund pursuant to section 422A(c)(2);
and
``(6) other receipts as specified in regulations of the
Secretary.
``(d) Uses of Funds.--
``(1) In general.--Funds in the Operating Fund shall be used
for application processing, loan disbursement, enrollment and
repayment status management, default aversion activities
(including those described in section 422(h)(8)), default
collection activities, school and lender training, financial aid
awareness and related outreach activities, compliance
monitoring, and other student financial aid related activities,
as selected by the guaranty agency.
``(2) Special rule.--The guaranty agency may, in the
agency's discretion, transfer funds from the Operating Fund to
the Federal Fund for use pursuant to section 422A. Such transfer
shall be irrevocable, and any funds so transferred shall become
the sole property of the United States.
``(3) Definitions.--For purposes of this subsection:
``(A) Default collection activities.--The term
`default collection activities' means activities of a
guaranty agency that are directly related to the
collection of the loan on which a default claim has been
paid to the participating lender, including the due
diligence activities required pursuant to regulations of
the Secretary.
``(B) Default aversion activities.--The term
`default aversion activities' means activities of a
guaranty agency that are directly related to providing
collection assistance to the lender on a delinquent
loan, prior to the loan's being legally in a default
status, including due diligence activities required
pursuant to regulations of the Secretary.
``(C) Enrollment and repayment status management.--
The term `enrollment and repayment status management'
means activities of a guaranty agency that are directly
related to ascertaining the student's enrollment status,
including prompt notification to the lender of such
status, an audit of the note or written agreement to
determine if the provisions of that note or agreement
are consistent with the records of the guaranty agency
as to the principal amount of the loan guaranteed, and
an examination of the note or agreement to assure that
the repayment provisions are consistent with the
provisions of this part.
``(e) Ownership and Regulation of Operating Fund.--
``(1) Ownership.--The Operating Fund, with the exception of
funds transferred from the Federal Fund in accordance with
section 422A(f ), shall be considered to be the property of the
guaranty agency.
``(2) Regulation.--Except as provided in paragraph (3), the
Secretary may not regulate the uses or expenditure of moneys in
the Operating Fund, but the Secretary may require such necessary
reports and audits as provided in section 428(b)(2).
[[Page 112 STAT. 1679]]
``(3) Exception.--Notwithstanding paragraphs (1) and (2),
during any period in which funds are owed to the Federal Fund as
a result of transfer under section 422A(f )--
``(A) moneys in the Operating Fund may only be used
for expenses related to the student loan programs
authorized under this part; and
``(B) the Secretary may regulate the uses or
expenditure of moneys in the Operating Fund.''.
SEC. 414. SCOPE AND DURATION OF FEDERAL LOAN INSURANCE PROGRAM.
Section 424(a) (20 U.S.C. 1074(a)) is amended--
(1) by striking ``October 1, 2002'' and inserting ``October
1, 2004''; and
(2) by striking ``September 30, 2006'' and inserting
``September 30, 2008''.
SEC. 415. LIMITATIONS ON INDIVIDUAL FEDERALLY INSURED LOANS AND FEDERAL
LOAN INSURANCE.
Section 425(a)(1)(A) (20 U.S.C. 1075(a)(1)(A)) is amended--
(1) in clause (i)--
(A) by inserting ``and'' after the semicolon at the
end of subclause (I); and
(B) by striking subclauses (II) and (III) and
inserting the following:
``(II) if such student is enrolled in a
program of undergraduate education which is less
than one academic year, the maximum annual loan
amount that such student may receive may not
exceed the amount that bears the same ratio to the
amount specified in subclause (I) as the length of
such program measured in semester, trimester,
quarter, or clock hours bears to one academic
year;''; and
(2) by inserting ``and'' after the semicolon at the end of
clause (iii).
SEC. 416. APPLICABLE INTEREST RATES.
(a) Applicable Interest Rates.--
(1) Amendment.--Section 427A (20 U.S.C. 1077a) is amended--
(A) by redesignating subsections (k) and (l) as
subsections (l) and (m), respectively; and
(B) by inserting after subsection ( j) the
following:
``(k) Interest Rates for New Loans on or After October 1, 1998, and
Before July 1, 2003.--
``(1) In general.--Notwithstanding subsection (h) and
subject to paragraph (2) of this subsection, with respect to any
loan made, insured, or guaranteed under this part (other than a
loan made pursuant to section 428B or 428C) for which the first
disbursement is made on or after October 1, 1998, and before
July 1, 2003, the applicable rate of interest shall, during any
12-month period beginning on July 1 and ending on June 30, be
determined on the preceding June 1 and be equal to--
``(A) the bond equivalent rate of 91-day Treasury
bills auctioned at the final auction held prior to such
June 1; plus
``(B) 2.3 percent,
[[Page 112 STAT. 1680]]
except that such rate shall not exceed 8.25 percent.
``(2) In school and grace period rules.--Notwithstanding
subsection (h), with respect to any loan under this part (other
than a loan made pursuant to section 428B or 428C) for which the
first disbursement is made on or after October 1, 1998, and
before July 1, 2003, the applicable rate of interest for
interest which accrues--
``(A) prior to the beginning of the repayment period
of the loan; or
``(B) during the period in which principal need not
be paid (whether or not such principal is in fact paid)
by reason of a provision described in section
427(a)(2)(C) or 428(b)(1)(M),
shall be determined under paragraph (1) by substituting `1.7
percent' for `2.3 percent'.
``(3) PLUS loans.--Notwithstanding subsection (h), with
respect to any loan under section 428B for which the first
disbursement is made on or after October 1, 1998, and before
July 1, 2003, the applicable rate of interest shall be
determined under paragraph (1)--
``(A) by substituting `3.1 percent' for `2.3
percent'; and
``(B) by substituting `9.0 percent' for `8.25
percent'.
``(4) Consolidation loans.--With respect to any
consolidation loan under section 428C for which the application
is received by an eligible lender on or after October 1, 1998,
and before July 1, 2003, the applicable rate of interest shall
be at an annual rate on the unpaid principal balance of the loan
that is equal to the lesser of--
``(A) the weighted average of the interest rates on
the loans consolidated, rounded to the nearest higher
one-eighth of 1 percent; or
``(B) 8.25 percent.
``(5) <<NOTE: Federal Register,
publication.>> Consultation.--The Secretary shall determine the
applicable rate of interest under this subsection after
consultation with the Secretary of the Treasury and shall
publish such rate in the Federal Register as soon as practicable
after the date of determination.''.
(2) Conforming amendment.--Section 428B(d)(4) (20 U.S.C.
1078-2(d)(4)) is amended by striking ``section 427A(c)'' and
inserting ``section 427A''.
(b) Special Allowances.--
(1) Amendment.--Section 438(b)(2) (20 U.S.C. 1087-1(b)(2))
is amended by adding at the end the following:
``(H) Loans disbursed on or after october 1, 1998,
and before july 1, 2003.--
``(i) In general.--Subject to paragraph (4)
and clauses (ii), (iii), and (iv) of this
subparagraph, and except as provided in
subparagraph (B), the special allowance paid
pursuant to this subsection on loans for which the
first disbursement is made on or after October 1,
1998, and before July 1, 2003, shall be computed--
``(I) by determining the average of
the bond equivalent rates of 91-day
Treasury bills auctioned for such 3-
month period;
[[Page 112 STAT. 1681]]
``(II) by subtracting the applicable
interest rates on such loans from such
average bond equivalent rate;
``(III) by adding 2.8 percent to the
resultant percent; and
``(IV) by dividing the resultant
percent by 4.
``(ii) In school and grace period.--In the
case of any loan for which the first disbursement
is made on or after October 1, 1998, and before
July 1, 2003, and for which the applicable rate of
interest is described in section 427A(k)(2),
clause (i)(III) of this subparagraph shall be
applied by substituting `2.2 percent' for `2.8
percent'.
``(iii) PLUS loans.--In the case of any loan
for which the first disbursement is made on or
after October 1, 1998, and before July 1, 2003,
and for which the applicable rate of interest is
described in section 427A(k)(3), clause (i)(III)
of this subparagraph shall be applied by
substituting `3.1 percent' for `2.8 percent',
subject to clause (v) of this subparagraph.
``(iv) Consolidation loans.--In the case of
any consolidation loan for which the application
is received by an eligible lender on or after
October 1, 1998, and before July 1, 2003, and for
which the applicable interest rate is determined
under section 427A(k)(4), clause (i)(III) of this
subparagraph shall be applied by substituting `3.1
percent' for `2.8 percent', subject to clause (vi)
of this subparagraph.
``(v) Limitation on special allowances for
plus loans.--In the case of PLUS loans made under
section 428B and first disbursed on or after
October 1, 1998, and before July 1, 2003, for
which the interest rate is determined under
section 427A(k)(3), a special allowance shall not
be paid for such loan during any 12-month period
beginning on July 1 and ending on June 30 unless,
on the June 1 preceding such July 1--
``(I) the bond equivalent rate of
91-day Treasury bills auctioned at the
final auction held prior to such June 1
(as determined by the Secretary for
purposes of such section); plus
``(II) 3.1 percent,
exceeds 9.0 percent.
``(vi) Limitation on special allowances for
consolidation loans.--In the case of consolidation
loans made under section 428C and for which the
application is received on or after October 1,
1998, and before July 1, 2003, for which the
interest rate is determined under section
427A(k)(4), a special allowance shall not be paid
for such loan during any 3-month period ending
March 31, June 30, September 30, or December 31
unless--
``(I) the average of the bond
equivalent rate of 91-day Treasury bills
auctioned for such 3-month period; plus
``(II) 3.1 percent,
exceeds the rate determined under section
427A(k)(4).''.
[[Page 112 STAT. 1682]]
(2) Consolidation loans.--Section 428C(c)(1) (20 U.S.C.
1078-3(c)(1)) is amended by striking everything preceding
subparagraph (B) and inserting the following:
``(1) Interest rate.--(A) Notwithstanding subparagraphs (B)
and (C), with respect to any loan made under this section for
which the application is received by an eligible lender on or
after October 1, 1998, and before July 1, 2003, the applicable
interest rate shall be determined under section 427A(k)(4).''.
(3) Conforming amendment.--Section 438(b)(2) (20 U.S.C.
1087-1(b)(2)(C)(ii)) is amended--
(A) in subparagraph (A), by striking ``(F), and
(G)'' and inserting ``(F), (G), and (H)'';
(B) in subparagraph (B)(iv), by striking ``(F), or
(G)'' and inserting ``(F), (G), or (H)''; and
(C) in subparagraph (C)(ii), by striking
``subparagraph (G)'' and inserting ``subparagraphs (G)
and (H)''.
(c) <<NOTE: Applicability. 20 USC 1077a note.>> Effective Date.--The
amendments made by this section shall apply with respect to any loan
made, insured, or guaranteed under part B of title IV of the Higher
Education Act of 1965 for which the first disbursement is made on or
after October 1, 1998, and before July 1, 2003, except that such
amendments shall apply with respect to any loan made under section 428C
of such Act for which the application is received by an eligible lender
on or after October 1, 1998, and before July 1, 2003.
SEC. 417. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.
(a) Federal Interest Subsidies.--
(1) Requirements to receive subsidy.--Section 428(a)(2) (20
U.S.C. 1078(a)(2)) is amended--
(A) in subparagraph (A)(i), by striking subclauses
(I), (II), and (III) and inserting the following:
``(I) sets forth the loan amount for which the
student shows financial need; and
``(II) sets forth a schedule for disbursement
of the proceeds of the loan in installments,
consistent with the requirements of section 428G;
and''; and
(B) by amending subparagraph (B) to read as follows:
``(B) For the purpose of clause (ii) of subparagraph (A), a
student shall qualify for a portion of an interest payment under
paragraph (1) if the eligible institution has determined and
documented the student's amount of need for a loan based on the
student's estimated cost of attendance, estimated financial
assistance, and, for the purpose of an interest payment pursuant
to this section, expected family contribution (as determined
under part F), subject to the provisions of subparagraph (D).'';
(C) by amending subparagraph (C) to read as follows:
``(C) For the purpose of subparagraph (B) and this
paragraph--
``(i) a student's cost of attendance shall be
determined under section 472;
``(ii) a student's estimated financial assistance
means, for the period for which the loan is sought--
``(I) the amount of assistance such student
will receive under subpart 1 of part A (as
determined in accordance with section 484(b)),
subpart 3 of part A, and parts C and E;
[[Page 112 STAT. 1683]]
``(II) any veterans' education benefits paid
because of enrollment in a postsecondary education
institution, including veterans' education
benefits (as defined in section 480(c), but
excluding benefits described in paragraph (2)(E)
of such section); plus
``(III) other scholarship, grant, or loan
assistance, but excluding any national service
education award or post-service benefit under
title I of the National and Community Service Act
of 1990; and
``(iii) the determination of need and of the amount
of a loan by an eligible institution under subparagraph
(B) with respect to a student shall be calculated in
accordance with part F.''; and
(D) by striking subparagraph (F).
(2) Duration of authority.--Section 428(a)(5) is
amended-- <<NOTE: 20 USC 1078.>>
(A) by striking ``September 30, 2002'' and inserting
``September 30, 2004''; and
(B) by striking ``September 30, 2006'' and inserting
``September 30, 2008''.
(b) Insurance Program Agreements.--
(1) Annual loan limits.--Section 428(b)(1)(A) is
amended--
(A) in the matter preceding clause (i), by inserting
``, as defined in section 481(a)(2),'' after ``academic
year'';
(B) in clause (i)--
(i) in subclause (I), by striking ``length (as
determined under section 481);'' and inserting
``length; and''; and
(ii) by striking subclauses (II) and (III) and
inserting the following:
``(II) if such student is enrolled
in a program of undergraduate education
which is less than 1 academic year, the
maximum annual loan amount that such
student may receive may not exceed the
amount that bears the same ratio to the
amount specified in subclause (I) as the
length of such program measured in
semester, trimester, quarter, or clock
hours bears to 1 academic year;'';
(C) in clause (iv), by striking ``and'' after the
semicolon;
(D) in clause (v), by inserting ``and'' after the
semicolon; and
(E) by inserting before the matter following clause
(v) the following:
``(vi) in the case of a student enrolled in
coursework specified in sections 484(b)(3)(B) and
484(b)(4)(B)--
``(I) $2,625 for coursework
necessary for enrollment in an
undergraduate degree or certificate
program, and, in the case of a student
who has obtained a baccalaureate degree,
$5,500 for coursework necessary for
enrollment in a graduate or professional
degree or certification program; and
``(II) in the case of a student who
has obtained a baccalaureate degree,
$5,500 for coursework necessary for a
professional credential or certification
from a State required for employment as
a teacher in an elementary school or
secondary school;''.
[[Page 112 STAT. 1684]]
(2) Selection of repayment plans.--Clause (ii) of section
428(b)(1)(D) <<NOTE: 20 USC 1078.>> is amended to read as
follows: ``(ii) the student borrower may annually change the
selection of a repayment plan under this part, and''.
(3) Repayment plans.--Subparagraph (E) of section 428(b)(1)
is amended to read as follows:
``(E) subject to subparagraphs (D) and (L), and
except as provided by subparagraph (M), provides that--
``(i) not more than 6 months prior to the date
on which the borrower's first payment is due, the
lender shall offer the borrower of a loan made,
insured, or guaranteed under this section or
section 428H, the option of repaying the loan in
accordance with a standard, graduated, income-
sensitive, or extended repayment schedule (as
described in paragraph (9)) established by the
lender in accordance with regulations of the
Secretary; and
``(ii) repayment of loans shall be in
installments in accordance with the repayment plan
selected under paragraph (9) and commencing at the
beginning of the repayment period determined under
paragraph (7);'';
(4) Coinsurance.--Section 428(b)(1)(G) is amended by
striking ``not less than''.
(5) Payment amounts.--Section 428(b)(1)(L)(i) is
amended--
(A) by inserting ``except as otherwise provided by a
repayment plan selected by the borrower under clause
(ii) or (iii) of paragraph (9)(A),'' before ``during
any''; and
(B) by inserting ``, notwithstanding any payment
plan under paragraph (9)(A)'' after ``due and payable''.
(6) Deferments.--Section 428(b)(1)(M) is amended--
(A) in clause (i)(I), by inserting before the
semicolon the following: ``, except that no borrower,
notwithstanding the provisions of the promissory note,
shall be required to borrow an additional loan under
this title in order to be eligible to receive a
deferment under this clause''; and
(B) in clause (ii), by inserting before the
semicolon the following: ``, except that no borrower who
provides evidence of eligibility for unemployment
benefits shall be required to provide additional
paperwork for a deferment under this clause''.
(7) Limitation, suspension, and termination.--Section
428(b)(1)(U) is amended--
(A) by striking ``emergency action,,'' each place
the term appears and inserting ``emergency action,'';
and
(B) in clause (iii)(I), by inserting ``that
originates or holds more than $5,000,000 in loans made
under this title for any lender fiscal year (except that
each lender described in section 435(d)(1)(A)(ii)(III)
shall annually submit the results of an audit required
by this clause),'' before ``at least once a year''.
(8) Additional insurance program requirements.--
Section 428(b)(1) is further amended--
(A) by striking ``and'' at the end of subparagraph
(W);
(B) in subparagraph (X)--
[[Page 112 STAT. 1685]]
(i) by striking ``428(c)(10)'' and inserting
``428(c)(9)''; and
(ii) by striking the period at the end and
inserting ``; and'';
(C) by adding at the end the following new sub-
paragraph:
``(Y) provides that--
``(i) the lender shall determine the
eligibility of a borrower for a deferment
described in subparagraph (M)(i) based on receipt
of--
``(I) a request for deferment from
the borrower and documentation of the
borrower's eligibility for the
deferment;
``(II) a newly completed loan
application that documents the
borrower's eligibility for a deferment;
or
``(III) student status information
received by the lender that the borrower
is enrolled on at least a half-time
basis; and
``(ii) the lender will notify the borrower of
the granting of any deferment under clause (i)(II)
or (III) of this subparagraph and of the option to
continue paying on the loan.''.
(9) Restrictions on inducements.--Section 428(b)(3) is
amended-- <<NOTE: 20 USC 1078.>>
(A) by striking subparagraph (C) and inserting the
following:
``(C) conduct unsolicited mailings of student loan
application forms to students enrolled in secondary
school or a postsecondary institution, or to parents of
such students, except that applications may be mailed to
borrowers who have previously received loans guaranteed
under this part by the guaranty agency; or''; and
(B) by adding at the end the following new sentence:
``It shall not be a violation of this paragraph for a guaranty
agency to provide assistance to institutions of higher education
comparable to the kinds of assistance provided to institutions
of higher education by the Department of Education.''.
(10) Delay in commencement of repayment period.--Section
428(b)(7) is amended by adding at the end the following:
``(D) There shall be excluded from the 6-month period that
begins on the date on which a student ceases to carry at least
one-half the normal full-time academic workload as described in
subparagraph (A)(i) any period not to exceed 3 years during
which a borrower who is a member of a reserve component of the
Armed Forces named in section 10101 of title 10, United States
Code, is called or ordered to active duty for a period of more
than 30 days (as defined in section 101(d)(2) of such title).
Such period of exclusion shall include the period necessary to
resume enrollment at the borrower's next available regular
enrollment period.''.
(11) Repayment plans.--Section 428(b) is amended by
adding at the end the following:
``(9) Repayment plans.--
``(A) <<NOTE: Regulations.>> Design and selection.--
In accordance with regulations promulgated by the
Secretary, the lender shall offer a borrower of a loan
made under this part the plans
[[Page 112 STAT. 1686]]
described in this subparagraph for repayment of such
loan, including principal and interest thereon. No plan
may require a borrower to repay a loan in less than 5
years unless the borrower, during the 6 months
immediately preceding the start of the repayment period,
specifically requests that repayment be made over of a
shorter period. The borrower may choose from--
``(i) a standard repayment plan, with a fixed
annual repayment amount paid over a fixed period
of time, not to exceed 10 years;
``(ii) a graduated repayment plan paid over a
fixed period of time, not to exceed 10 years;
``(iii) an income-sensitive repayment plan,
with income-sensitive repayment amounts paid over
a fixed period of time, not to exceed 10 years,
except that the borrower's scheduled payments
shall not be less than the amount of interest due;
and
``(iv) for new borrowers on or after the date
of enactment of the Higher Education Amendments of
1998 who accumulate (after such date) outstanding
loans under this part totaling more than $30,000,
an extended repayment plan, with a fixed annual or
graduated repayment amount paid over an extended
period of time, not to exceed 25 years, except
that the borrower shall repay annually a minimum
amount determined in accordance with paragraph
(1)(L)(i).
``(B) Lender selection of option if borrower does
not select.--If a borrower of a loan made under this
part does not select a repayment plan described in
subparagraph (A), the lender shall provide the borrower
with a repayment plan described in subparagraph
(A)(i).''.
(c) Guarantee Agreements.--
(1) Reinsurance payments.--
(A) Amendments.--Section 428(c)(1) (20 U.S.C.
1078(c)(1)) is amended--
(i) in subparagraph (A), by striking ``98
percent'' and inserting ``95 percent'';
(ii) in subparagraph (B)(i), by striking ``88
percent'' and inserting ``85 percent'';
(iii) in subparagraph (B)(ii), by striking
``78 percent'' and inserting ``75 percent'';
(iv) in subparagraph (E)--
(I) in clause (i), by striking ``98
percent'' and inserting ``95 percent'';
(II) in clause (ii), by striking
``88 percent'' and inserting ``85
percent''; and
(III) in clause (iii), by striking
``78 percent'' and inserting ``75
percent''; and
(v) in subparagraph (F)--
(I) in clause (i), by striking ``98
percent'' and inserting ``95 percent'';
(II) in clause (ii), by striking
``88 percent'' and inserting ``85
percent''; and
(III) in clause (iii), by striking
``78 percent'' and inserting ``75
percent''.
[[Page 112 STAT. 1687]]
(B) <<NOTE: Applicability. 20 USC 1078
note.>> Effective date.--The amendments made by
subparagraph (A) of this paragraph apply to loans for
which the first disbursement is made on or after October
1, 1998.
(2) Notice to institutions of defaults.--Section 428(c)(2)
is amended-- <<NOTE: 20 USC 1078.>>
(A) in subparagraph (A), by striking ``proof that
reasonable attempts were made'' and inserting ``proof
that the institution was contacted and other reasonable
attempts were made''; and
(B) in subparagraph (G), by striking ``certifies to
the Secretary that diligent attempts have been made''
and inserting ``certifies to the Secretary that diligent
attempts, including contact with the institution, have
been made''.
(3) Guaranty agency information to eligible institutions.--
Section 428(c)(2)(H)(ii) is amended to read as follows:
``(ii) the guaranty agency shall not require
the payment from the institution of any fee for
such information; and''.
(4) Forbearance.--Section 428(c)(3) is amended--
(A) in subparagraph (A)(i), by striking ``written'';
(B) in subparagraph (B), by striking ``and'' after
the semicolon;
(C) in subparagraph (C), by striking the period and
inserting ``; and''; and
(D) by inserting before the matter following
subparagraph (C) the following:
``(D) shall contain provisions that specify that--
``(i) forbearance for a period not to exceed
60 days may be granted if the lender reasonably
determines that such a suspension of collection
activity is warranted following a borrower's
request for deferment, forbearance, a change in
repayment plan, or a request to consolidate loans,
in order to collect or process appropriate
supporting documentation related to the request,
and
``(ii) during such period interest shall
accrue but not be capitalized.''.
(5) Equitable share.--Paragraph (6) of section 428(c) is
amended to read as follows:
``(6) Secretary's equitable share.--For the purpose of
paragraph (2)(D), the Secretary's equitable share of payments
made by the borrower shall be that portion of the payments
remaining after the guaranty agency with which the Secretary has
an agreement under this subsection has deducted from such
payments--
``(A) a percentage amount equal to the complement of
the reinsurance percentage in effect when payment under
the guaranty agreement was made with respect to the
loan; and
``(B) <<NOTE: Effective date. Applicability.>> an
amount equal to 24 percent of such payments for use in
accordance with section 422B, except that, beginning on
October 1, 2003, this subparagraph shall be applied by
substituting `23 percent' for `24 percent'.''.
(6) Assignment.--Section 428(c)(8) is amended--
(A) by striking ``(A) If'' and inserting ``If''; and
(B) by striking subparagraph (B).
[[Page 112 STAT. 1688]]
<<NOTE: 20 USC 1078.>> (7) Guaranty agency reserve level;
agency termination.--Section 428(c)(9) is amended--
(A) in subparagraph (A), by striking ``maintain a
current minimum reserve level of at least .5 percent''
and inserting ``maintain in the agency's Federal Student
Loan Reserve Fund established under section 422A a
current minimum reserve level of at least 0.25
percent'';
(B) in subparagraph (C)--
(i) by striking ``80 percent pursuant to
section 428(c)(1)(B)(ii)'' and inserting ``85
percent pursuant to paragraph (1)(B)(i)'';
(ii) by striking ``, as appropriate,''; and
(iii) by striking ``30 working days'' and
inserting ``45 working days'';
(C) in subparagraph (E)--
(i) by inserting ``or'' at the end of clause
(iv);
(ii) by striking ``; or'' at the end of clause
(v) and inserting a period; and
(iii) by striking clause (vi);
(D) in subparagraph (F)(vii), by striking ``to avoid
disruption'' and everything that follows and inserting
``and to avoid disruption of the student loan
program.'';
(E) in subparagraph (I), by inserting ``that, if
commenced after September 24, 1998, shall be on the
record'' after ``for a hearing''; and
(F) in subparagraph (K)--
(i) by striking ``and Labor'' and inserting
``and the Workforce''; and
(ii) by striking everything after ``guaranty
agency system'' and inserting a period.
(d) Payment for Lender Referral Services; Income-Sensitive
Repayment.--Subsection (e) of section 428 is amended to read as follows:
``(e) <<NOTE: Regulations.>> Notice of Availability of Income-
Sensitive Repayment Option.--At the time of offering a borrower a loan
under this part, and at the time of offering the borrower the option of
repaying a loan in accordance with this section, the lender shall
provide the borrower with a notice that informs the borrower, in a form
prescribed by the Secretary by regulation--
``(1) that all borrowers are eligible for income-sensitive
repayment, including through loan consolidation under section
428C;
``(2) the procedures by which the borrower may elect income-
sensitive repayment; and
``(3) where and how the borrower may obtain additional
information concerning income-sensitive repayment.''.
(e) Payment of Certain Costs.--Subsection (f ) of section 428 is
amended to read as follows:
``(f ) Payments of Certain Costs.--
``(1) Payment for certain activities.--
``(A) In general.--The Secretary--
``(i) for loans originated during fiscal years
beginning on or after October 1, 1998, and before
October 1, 2003, and in accordance with the
provisions of this paragraph, shall, except as
provided in subparagraph (C), pay to each guaranty
agency, a loan processing and issuance fee equal
to 0.65 percent of the total
[[Page 112 STAT. 1689]]
principal amount of the loans on which insurance
was issued under this part during such fiscal year
by such agency; and
``(ii) for loans originated during fiscal
years beginning on or after October 1, 2003, and
in accordance with the provisions of this
paragraph, shall, except as provided in
subparagraph (C), pay to each guaranty agency, a
loan processing and issuance fee equal to 0.40
percent of the total principal amount of the loans
on which insurance was issued under this part
during such fiscal year by such agency.
``(B) Payment.--The payment required by subparagraph
(A) shall be paid on a quarterly basis. The guaranty
agency shall be deemed to have a contractual right
against the United States to receive payments according
to the provisions of this paragraph. Payments shall be
made promptly and without administrative delay to any
guaranty agency submitting an accurate and complete
application under this subparagraph.
``(C) Requirement for payment.--No payment may be
made under this paragraph for loans for which the
disbursement checks have not been cashed or for which
electronic funds transfers have not been completed.''.
(f ) Action on Agreements.--Section 428(g) is amended <<NOTE: 20 USC
1078.>> by striking ``and Labor'' and inserting ``and the Workforce''.
(g) Lenders-of-Last-Resort.--Paragraph (3) of section 428( j) is
amended--
(1) in the paragraph heading, by striking ``during
transition to direct lending'';
(2) in subparagraph (A)--
(A) by striking ``during the transition from the
Federal Family Education Loan Program under this part to
the Federal Direct Student Loan Program under part D of
this title,'' and inserting a comma;
(B) by inserting ``designated for a State'' after
``a
guaranty agency''; and
(C) by inserting ``subparagraph (C) and'' before
``section 422(c)(7),''; and
(3) by adding at the end thereof the following:
``(C) The Secretary shall exercise the authority described
in subparagraph (A) only if the Secretary determines that
eligible borrowers are seeking and are unable to obtain loans
under this part, and that the guaranty agency designated for
that State has the capability to provide lender-of-last-resort
loans in a timely manner, in accordance with the guaranty
agency's obligations under paragraph (1), but cannot do so
without advances provided by the Secretary under this paragraph.
If the Secretary makes the determinations described in the
preceding sentence and determines that it would be cost-
effective to do so, the Secretary may provide advances under
this paragraph to such guaranty agency. If the Secretary
determines that such guaranty agency does not have such
capability, or will not provide such loans in a timely fashion,
the Secretary may provide such advances to enable another
guaranty agency, that the Secretary determines to have such
capability, to make lender-of-last-resort loans to eligible
borrowers in that State who are experiencing loan access
problems.''.
[[Page 112 STAT. 1690]]
(h) Default Aversion Assistance.--Subsection (l) of section 428 is
amended to <<NOTE: 20 USC 1078.>> read as follows:
``(l) Default Aversion Assistance.--
``(1) Assistance required.--Upon receipt of a complete
request from a lender received not earlier than the 60th day of
delinquency, a guaranty agency having an agreement with the
Secretary under subsection (c) shall engage in default aversion
activities designed to prevent the default by a borrower on a
loan covered by such agreement.
``(2) Reimbursement.--
``(A) In general.--A guaranty agency, in accordance
with the provisions of this paragraph, may transfer from
the Federal Student Loan Reserve Fund under section 422A
to the Agency Operating Fund under section 422B a
default aversion fee. Such fee shall be paid for any
loan on which a claim for default has not been paid as a
result of the loan being brought into current repayment
status by the guaranty agency on or before the 300th day
after the loan becomes 60 days delinquent.
``(B) Amount.--The default aversion fee shall be
equal to 1 percent of the total unpaid principal and
accrued interest on the loan at the time the request is
submitted by the lender. A guaranty agency may transfer
such fees earned under this subsection not more
frequently than monthly. Such a fee shall not be paid
more than once on any loan for which the guaranty agency
averts the default unless--
``(i) at least 18 months has elapsed between
the date the borrower entered current repayment
status and the date the lender filed a subsequent
default aversion assistance request; and
``(ii) during the period between such dates,
the borrower was not more than 30 days past due on
any payment of principal and interest on the loan.
``(C) Definition.--For the purpose of earning the
default aversion fee, the term `current repayment
status' means that the borrower is not delinquent in the
payment of any principal or interest on the loan.''.
(i) Income Contingent Repayment.--Section 428(m) is amended by
striking ``shall require at least 10 percent of the borrowers'' and
inserting ``may require borrowers''.
( j) State Share of Default Costs.--Subsection (n) of section 428 is
repealed.
(k) Blanket Certificate of Guaranty.--Section 428 is amended by
adding at the end the following:
``(n) Blanket Certificate of Loan Guaranty.--
``(1) In general.--Subject to paragraph (3), any guaranty
agency that has entered into or enters into any insurance
program agreement with the Secretary under this part may--
``(A) offer eligible lenders participating in the
agency's guaranty program a blanket certificate of loan
guaranty that permits the lender to make loans without
receiving prior approval from the guaranty agency of
individual loans for eligible borrowers enrolled in
eligible programs at eligible institutions; and
``(B) provide eligible lenders with the ability to
transmit electronically data to the agency concerning
loans the
[[Page 112 STAT. 1691]]
lender has elected to make under the agency's insurance
program via standard reporting formats, with such
reporting to occur at reasonable and standard intervals.
``(2) Limitations on blanket certificate of guaranty.--(A)
An eligible lender may not make a loan to a borrower under this
section after such lender receives a notification from the
guaranty agency that the borrower is not an eligible borrower.
``(B) A guaranty agency may establish limitations or
restrictions on the number or volume of loans issued by a lender
under the blanket certificate of guaranty.
``(3) Participation level.--During fiscal years 1999 and
2000, the Secretary may permit, on a pilot basis, a limited
number of guaranty agencies to offer blanket certificates of
guaranty under this subsection. Beginning in fiscal year 2001,
any guaranty agency that has an insurance program agreement with
the Secretary may offer blanket certificates of guaranty under
this subsection.
``(4) Report required.--The Secretary shall, at the
conclusion of the pilot program under paragraph (3), provide a
report to the Committee on Education and the Workforce of the
House of Representatives and the Committee on Labor and Human
Resources of the Senate on the impact of the blanket
certificates of guaranty on program efficiency and integrity.''.
SEC. 418. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY
AGENCIES.
Part B of title IV (20 U.S.C. 1071 et seq.) is amended by inserting
after section 428 (20 U.S.C. 1078) the following:
``SEC. 428A. <<NOTE: 20 USC 1078-1.>> VOLUNTARY FLEXIBLE AGREEMENTS WITH
GUARANTY AGENCIES.
``(a) Voluntary Agreements.--
``(1) Authority.--Subject to paragraph (2), the Secretary
may enter into a voluntary, flexible agreement with a guaranty
agency under this section, in lieu of agreements with a guaranty
agency under subsections (b) and (c) of section 428. The
Secretary may waive or modify any requirement under such
subsections, except that the Secretary may not waive--
``(A) any statutory requirement pertaining to the
terms and conditions attached to student loans or
default claim payments made to lenders; or
``(B) the prohibitions on inducements contained in
section 428(b)(3) unless the Secretary determines that
such a waiver is consistent with the purposes of this
section and is limited to activities of the guaranty
agency within the State or States for which the guaranty
agency serves as the designated guarantor.
``(2) Special rule.--If the Secretary grants a waiver
pursuant to paragraph (1)(B), any guaranty agency doing business
within the affected State or States may request, and the
Secretary shall grant, an identical waiver to such guaranty
agency under the same terms and conditions (including service
area limitations) as govern the original waiver.
``(3) Eligibility.--During fiscal years 1999, 2000, and
2001, the Secretary may enter into a voluntary, flexible
agreement with not more than 6 guaranty agencies that had 1 or
more agreements with the Secretary under subsections (b) and (c)
[[Page 112 STAT. 1692]]
of section 428 as of the day before the date of enactment of the
Higher Education Amendments of 1998. Beginning in fiscal year
2002, any guaranty agency or consortium thereof may enter into a
voluntary flexible agreement with the Secretary.
``(4) <<NOTE: Deadline.>> Report required.--Not later than
September 30, 2001, the Secretary shall report to the Committee
on Labor and Human Resources of the Senate and the Committee on
Education and the Workforce of the House of Representatives
regarding the impact that the voluntary flexible agreements have
had upon program integrity, program and cost efficiencies, and
the availability and delivery of student financial aid. Such
report shall include--
``(A) a description of each voluntary flexible
agreement and the performance goals established by the
Secretary for each agreement;
``(B) <<NOTE: Records.>> a list of participating
guaranty agencies and the specific statutory or
regulatory waivers provided to each guaranty agency and
any waivers provided to other guaranty agencies under
paragraph (2);
``(C) a description of the standards by which each
agency's performance under the agency's voluntary
flexible agreement was assessed and the degree to which
each agency achieved the performance standards; and
``(D) an analysis of the fees paid by the Secretary,
and the costs and efficiencies achieved under each
voluntary agreement.
``(b) Terms of Agreement.--An agreement between the Secretary and a
guaranty agency under this section--
``(1) shall be developed by the Secretary, in consultation
with the guaranty agency, on a case-by-case basis;
``(2) may only include provisions--
``(A) specifying the responsibilities of the
guaranty agency under the agreement, with respect to--
``(i) administering the issuance of insurance
on loans made under this part on behalf of the
Secretary;
``(ii) monitoring insurance commitments made
under this part;
``(iii) default aversion activities;
``(iv) review of default claims made by
lenders;
``(v) payment of default claims;
``(vi) collection of defaulted loans;
``(vii) adoption of internal systems of
accounting and auditing that are acceptable to the
Secretary, and reporting the result thereof to the
Secretary in a timely manner, and on an accurate,
and auditable basis;
``(viii) timely and accurate collection and
reporting of such other data as the Secretary may
require to carry out the purposes of the programs
under this title;
``(ix) monitoring of institutions and lenders
participating in the program under this part; and
``(x) informational outreach to schools and
students in support of access to higher education;
``(B) regarding the fees the Secretary shall pay, in
lieu of revenues that the guaranty agency may otherwise
receive under this part, to the guaranty agency under
[[Page 112 STAT. 1693]]
the agreement, and other funds that the guaranty agency
may receive or retain under the agreement, except that
in no case may the cost to the Secretary of the
agreement, as reasonably projected by the Secretary,
exceed the cost to the Secretary, as similarly
projected, in the absence of the agreement;
``(C) regarding the use of net revenues, as
described in the agreement under this section, for such
other activities in support of postsecondary education
as may be agreed to by the Secretary and the guaranty
agency;
``(D) regarding the standards by which the guaranty
agency's performance of the agency's responsibilities
under the agreement will be assessed, and the
consequences for a guaranty agency's failure to achieve
a specified level of performance on 1 or more
performance standards;
``(E) regarding the circumstances in which a
guaranty agency's agreement under this section may be
ended in advance of the agreement's expiration date;
``(F) regarding such other businesses, previously
purchased or developed with reserve funds, that relate
to the program under this part and in which the
Secretary permits the guaranty agency to engage; and
``(G) such other provisions as the Secretary may
determine to be necessary to protect the United States
from the risk of unreasonable loss and to promote the
purposes of this part;
``(3) shall provide for uniform lender participation with
the guaranty agency under the terms of the agreement; and
``(4) shall not prohibit or restrict borrowers from
selecting a lender of the borrower's choosing, subject to the
prohibitions and restrictions applicable to the selection under
this Act.
``(c) Public Notice.--
``(1) <<NOTE: Federal Register, publication.>> In general.--
The Secretary shall publish in the
Federal Register a notice to all guaranty agencies that sets
forth--
``(A) an invitation for the guaranty agencies to
enter into agreements under this section; and
``(B) the criteria that the Secretary will use for
selecting the guaranty agencies with which the Secretary
will enter into agreements under this section.
``(2) Agreement notice.--The Secretary shall notify the
Chairperson and the Ranking Minority Member of the Committee on
Labor and Human Resources of the Senate and the Committee on
Education and the Workforce of the House of Representatives not
later than 30 days prior to concluding an agreement under this
section. The notice shall contain--
``(A) a description of the voluntary flexible
agreement and the performance goals established by the
Secretary for the agreement;
``(B) <<NOTE: Records.>> a list of participating
guaranty agencies and the specific statutory or
regulatory waivers provided to each guaranty agency;
``(C) a description of the standards by which each
guaranty agency's performance under the agreement will
be assessed; and
``(D) a description of the fees that will be paid to
each participating guaranty agency.
[[Page 112 STAT. 1694]]
``(3) <<NOTE: Deadline.>> Waiver notice.--The Secretary
shall notify the Chairperson and the Ranking Minority Member of
the Committee on Labor and Human Resources of the Senate and the
Committee on Education and the Workforce of the House of
Representatives not later than 30 days prior to the granting of
a waiver pursuant to subsection (a)(2) to a guaranty agency that
is not a party to a voluntary flexible agreement.
``(4) Public availability.--The text of any voluntary
flexible agreement, and any subsequent revisions, and any
waivers related to section 428(b)(3) that are not part of such
an agreement, shall be readily available to the public.
``(5) Modification notice.--The Secretary shall notify the
Chairperson and the Ranking Minority Members of the Committee on
Labor and Human Resources of the Senate and the Committee on
Education and the Workforce of the House of Representatives 30
days prior to any modifications to an agreement under this
section.
``(d) Termination.--At the expiration or early termination of an
agreement under this section, the Secretary shall reinstate the guaranty
agency's prior agreements under subsections (b) and (c) of section 428,
subject only to such additional requirements as the Secretary determines
to be necessary in order to ensure the efficient transfer of
responsibilities between the agreement under this section and the
agreements under subsections (b) and (c) of section 428, and including
the guaranty agency's compliance with reserve requirements under
sections 422 and 428.''.
SEC. 419. FEDERAL PLUS LOANS.
Section 428B (20 U.S.C. 1078-2) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Authority To Borrow.--
``(1) Authority and eligibility.--Parents of a dependent
student shall be eligible to borrow funds under this section in
amounts specified in subsection (b), if--
``(A) the parents do not have an adverse credit
history as determined pursuant to regulations
promulgated by the Secretary; and
``(B) the parents meet such other eligibility
criteria as the Secretary may establish by regulation,
after consultation with guaranty agencies, eligible
lenders, and other organizations involved in student
financial assistance.
``(2) Terms, conditions, and benefits.--Except as provided
in subsections (c), (d), and (e), loans made under this section
shall have the same terms, conditions, and benefits as all other
loans made under this part.
``(3) Special rule.--Whenever necessary to carry out the
provisions of this section, the terms `student' and `borrower'
as used in this part shall include a parent borrower under this
section.''; and
(2) by adding at the end the following:
``(f ) Verification of Immigration Status and Social
Security Number.--A parent who wishes to borrow funds under this section
shall be subject to verification of the parent's--
``(1) immigration status in the same manner as immigration
status is verified for students under section 484(g); and
[[Page 112 STAT. 1695]]
``(2) social security number in the same manner as social
security numbers are verified for students under section
484(p).''.
SEC. 420. FEDERAL CONSOLIDATION LOANS.
(a) Definition of Eligible Borrower.--Section 428C(a)(3) (20 U.S.C.
1078-3(a)(3)) is amended by striking everything preceding subparagraph
(C) and inserting the following:
``(3) Definition of eligible borrower.--(A) For the
purpose of this section, the term `eligible borrower' means a
borrower who--
``(i) is not subject to a judgment secured through
litigation with respect to a loan under this title or to
an order for wage garnishment under section 488A; and
``(ii) at the time of application for a
consolidation loan--
``(I) is in repayment status;
``(II) is in a grace period preceding repay-
ment; or
``(III) is a defaulted borrower who has made
arrangements to repay the obligation on the
defaulted loans satisfactory to the holders of the
defaulted loans.
``(B)(i) An individual's status as an eligible borrower
under this section terminates upon receipt of a consolidation
loan under this section, except that--
``(I) an individual who receives eligible student
loans after the date of receipt of the consolidation
loan may receive a subsequent consolidation loan;
``(II) loans received prior to the date of the
consolidation loan may be added during the 180-day
period following the making of the consolidation loan;
``(III) loans received following the making of the
consolidation loan may be added during the 180-day
period following the making of the consolidation loan;
and
``(IV) loans received prior to the date of the first
consolidation loan may be added to a subsequent
consolidation loan.''.
(b) Definition of Eligible Student Loan.--Section 428C(a)(4) is
amended by striking subparagraph (C) and inserting the
following:
``(C) made under part D of this title;''.
(c) Contents of Agreements.--Section 428C(b) is amended--
(1) in paragraph (1)(A)(i), by inserting ``except that this
clause shall not apply in the case of a borrower with multiple
holders of loans under this part,'' after ``under this
section,'';
(2) in paragraph (4)(C)(ii)--
(A) in the matter preceding subclause (I), by
inserting ``during any such period'' after ``and be
paid'';
(B) in subclause (I), by striking ``, or on or after
October 1, 1998,''; and
(C) in subclause (II), by striking ``and before
October 1, 1998,'';
(3) in paragraph (6)(A), by inserting before the semicolon
at the end the following: ``, except that a lender is not
required to consolidate loans described in subparagraph (D) or
(E) of subsection (a)(4) or subsection (d)(1)(C)(ii)''.
[[Page 112 STAT. 1696]]
(d) Extension of Authority.--Section 428C(e) <<NOTE: 20 USC 1078-
3.>> is amended by striking ``September 30, 2002'' and inserting
``September 30, 2004''.
(e) Special Rule.--Section 428C(f ) is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following:
``(2) Special rule.--For consolidation loans based on
applications received during the period from October 1, 1998
through January 31, 1999, inclusive, the rebate described in
paragraph (1) shall be equal to 0.62 percent of the principal
plus accrued unpaid interest on such loan.''.
SEC. 421. DEFAULT REDUCTION PROGRAM.
The heading for subsection (b) of section 428F (20 U.S.C. 1078-6) is
amended by striking ``Special Rule'' and inserting ``Satisfactory
Repayment Arrangements To Renew Eligibility''.
SEC. 422. REQUIREMENTS FOR DISBURSEMENTS OF STUDENT LOANS.
(a) Special Rule.--Section 428G(a) (20 U.S.C. 1078-7(a)) is amended
by adding at the end the following:
``(3) Special rule.--An institution whose cohort default
rate (as determined under section 435(m)) for each of the 3 most
recent fiscal years for which data are available is less than 10
percent may disburse any loan made, insured, or guaranteed under
this part in a single installment for any period of enrollment
that is not more than 1 semester, 1 trimester, 1 quarter, or 4
months.''.
(b) Disbursement.--Section 428G(b)(1) is amended by adding at the
end the following new sentence: ``An institution whose cohort default
rate (as determined under section 435(m)) for each of the three most
recent fiscal years for which data are available is less than 10 percent
shall be exempt from the requirements of this paragraph.''.
(c) Exclusions.--Section 428G(e) is amended--
(1) by striking ``or made'' and inserting ``, made''; and
(2) by inserting ``, or made to a student to cover the cost
of attendance in a program of study abroad approved by the home
eligible institution if the home eligible institution has a
cohort default rate (as calculated under section 435(m)) of less
than 5 percent'' before the period.
(d) <<NOTE: Termination date. 20 USC 1078-7 note.>> Effective
Date.--The amendments made by subsections (a) and (b) shall be effective
during the period beginning on October 1, 1998, and ending on September
30, 2002.
SEC. 423. UNSUBSIDIZED LOANS.
(a) Eligible Borrowers.--Subsection (b) of section 428H (20
U.S.C.1078-8(b)) is amended to read as follows:
``(b) <<NOTE: Regulations.>> Eligible Borrowers.--Any student
meeting the requirements for student eligibility under section 484
(including graduate and professional students as defined in regulations
promulgated by the Secretary) shall be entitled to borrow an
unsubsidized Federal Stafford Loan if the eligible institution at which
the student has been accepted for enrollment, or at which the student is
in attendance, has--
``(1) determined and documented the student's need for the
loan based on the student's estimated cost of attendance (as
determined under section 472) and the student's estimated
[[Page 112 STAT. 1697]]
financial assistance, including a loan which qualifies for
interest subsidy payments under section 428; and
``(2) provided the lender a statement--
``(A) certifying the eligibility of the student to
receive a loan under this section and the amount of the
loan for which such student is eligible, in accordance
with subsection (c); and
``(B) setting forth a schedule for disbursement of
the proceeds of the loan in installments, consistent
with the requirements of section 428G.''.
(b) Loan Limits.--Section 428H(d) is amended-- <<NOTE: 20 USC 1078-
8.>>
(1) in paragraph (2)--
(A) in the matter preceding subparagraph (A)--
(i) by inserting ``(as defined in section
481(a)(2))'' after ``academic year''; and
(ii) by striking ``or in any period of 7
consecutive months, whichever is longer,'';
(B) in subparagraph (A)--
(i) in clause (i), by striking ``length (as
determined under section 481);'' and inserting
``length; and''; and
(ii) by striking clauses (ii) and (iii) and
inserting the following:
``(ii) if such student is enrolled in a
program of undergraduate education which is less
than one academic year, the maximum annual loan
amount that such student may receive may not
exceed the amount that bears the same ratio to the
amount specified in clause (i) as the length of
such program measured in semester, trimester,
quarter, or clock hours bears to one academic
year;''.
(C) in subparagraph (C), by inserting ``and'' after
the semicolon; and
(D) by inserting before the matter following
subparagraph (C) the following:
``(D) in the case of a student enrolled in
coursework specified in sections 484(b)(3)(B) and
484(b)(4)(B)--
``(i) $4,000 for coursework necessary for
enrollment in an undergraduate degree or
certificate program, and, in the case of a student
who has obtained a baccalaureate degree, $5,000
for coursework necessary for enrollment in a
graduate or professional program; and
``(ii) in the case of a student who has
obtained a baccalaureate degree, $5,000 for
coursework necessary for a professional credential
or certification from a State required for
employment as a teacher in an elementary or
secondary school;''; and
(2) in paragraph (3), by adding at the end the following:
``Interest capitalized shall not be deemed to exceed such
maximum aggregate amount.''.
(c) Capitalization of Interest.--Paragraph (2) of section 428H(e) is
amended to read as follows:
``(2) Capitalization of interest.--(A) Interest on loans
made under this section for which payments of principal are not
required during the in-school and grace periods or for which
payments are deferred under sections 427(a)(2)(C) and
[[Page 112 STAT. 1698]]
428(b)(1)(M) shall, if agreed upon by the borrower and the
lender--
``(i) be paid monthly or quarterly; or
``(ii) be added to the principal amount of the loan
by the lender only--
``(I) when the loan enters repayment;
``(II) at the expiration of a grace period, in
the case of a loan that qualifies for a grace
period;
``(III) at the expiration of a period of
deferment or forbearance; or
``(IV) when the borrower defaults.
``(B) The capitalization of interest described in
subparagraph (A) shall not be deemed to exceed the annual
insurable limit on account of the student.''.
(d) Extended Repayment Plan.--Section 428H(e)(6) is
amended <<NOTE: 20 USC 1078-8.>> by striking ``10 year repayment period
under section 428(b)(1)(D)'' and inserting ``repayment period under
section 428(b)(9)''.
(e) Qualification.--Section 428H(e) is amended by adding at the end
the following:
``(7) Qualification for forbearance.--A lender may grant the
borrower of a loan under this section a forbearance for a period
not to exceed 60 days if the lender reasonably determines that
such a forbearance from collection activity is warranted
following a borrower's request for forbearance, deferment, or a
change in repayment plan, or a request to consolidate loans in
order to collect or process appropriate supporting documentation
related to the request. During any such period, interest on the
loan shall accrue but not be capitalized.''.
(f ) Repeal.--Subsection (f ) of section 428H is repealed.
SEC. 424. LOAN FORGIVENESS FOR TEACHERS.
Section 428J (20 U.S.C. 1078-10) is amended to read as follows:
``SEC. 428J. LOAN FORGIVENESS FOR TEACHERS.
``(a) Statement of Purpose.--It is the purpose of this section to
encourage individuals to enter and continue in the teaching profession.
``(b) Program Authorized.--The Secretary shall carry out a program,
through the holder of the loan, of assuming the obligation to repay a
qualified loan amount for a loan made under section 428 or 428H, in
accordance with subsection (c), for any new borrower on or after October
1, 1998, who--
``(1) has been employed as a full-time teacher for 5
consecutive complete school years--
``(A) in a school that qualifies under section
465(a)(2)(A) for loan cancellation for Perkins loan
recipients who teach in such schools;
``(B) if employed as a secondary school teacher, is
teaching a subject area that is relevant to the
borrower's academic major as certified by the chief
administrative officer of the public or nonprofit
private secondary school in which the borrower is
employed; and
``(C) if employed as an elementary school teacher,
has demonstrated, as certified by the chief
administrative officer of the public or nonprofit
private elementary school in which the borrower is
employed, knowledge and teaching
[[Page 112 STAT. 1699]]
skills in reading, writing, mathematics, and other areas
of the elementary school curriculum; and
``(2) is not in default on a loan for which the borrower
seeks forgiveness.
``(c) Qualified Loans Amount.--
``(1) In general.--The Secretary shall repay not more than
$5,000 in the aggregate of the loan obligation on a loan made
under section 428 or 428H that is outstanding after the
completion of the fifth complete school year of teaching
described in subsection (b)(1). No borrower may receive a
reduction of loan obligations under both this section and
section 460.
``(2) <<NOTE: Regulations.>> Treatment of consolidation
loans.--A loan amount for a loan made under section 428C may be
a qualified loan amount for the purposes of this subsection only
to the extent that such loan amount was used to repay a Federal
Direct Stafford Loan, a Federal Direct Unsubsidized Stafford
Loan, or a loan made under section 428 or 428H for a borrower
who meets the requirements of subsection (b), as determined in
accordance with regulations prescribed by the Secretary.
``(d) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of this
section.
``(e) Construction.--Nothing in this section shall be construed to
authorize any refunding of any repayment of a loan.
``(f ) List.--If the list of schools in which a teacher may perform
service pursuant to subsection (b) is not available before May 1 of any
year, the Secretary may use the list for the year preceding the year for
which the determination is made to make such service determination.
``(g) Additional Eligibility Provisions.--
``(1) Continued eligibility.--Any teacher who performs
service in a school that--
``(A) meets the requirements of subsection (b)(1)(A)
in any year during such service; and
``(B) in a subsequent year fails to meet the
requirements of such subsection,
may continue to teach in such school and shall be eligible for
loan forgiveness pursuant to subsection (b).
``(2) Prevention of double benefits.--No borrower may, for
the same service, receive a benefit under both this subsection
and subtitle D of title I of the National and Community Service
Act of 1990 (42 U.S.C. 12571 et seq.).
``(h) Definition.--For purposes of this section, the term `year',
where applied to service as a teacher, means an academic year as defined
by the Secretary.''.
SEC. 425. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS.
Part B (20 U.S.C. 1071 et seq.) is amended by inserting after
section 428J (20 U.S.C. 1078-10) the following:
``SEC. 428K. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS. <<NOTE: 20 USC
1078-11.>>
``(a) Purpose.--It is the purpose of this section--
``(1) to bring more highly trained individuals into the
early child care profession; and
``(2) to keep more highly trained child care providers in
the early child care field for longer periods of time.
``(b) Definitions.--In this section:
[[Page 112 STAT. 1700]]
``(1) Child care facility.--The term `child care facility'
means a facility, including a home, that--
``(A) provides child care services; and
``(B) meets applicable State or local government
licensing, certification, approval, or registration
requirements, if any.
``(2) Child care services.--The term `child care services'
means activities and services provided for the education and
care of children from birth through age 5 by an individual who
has a degree in early childhood education.
``(3) Degree.--The term `degree' means an associate's or
bachelor's degree awarded by an institution of higher education.
``(4) Early childhood education.--The term `early childhood
education' means education in the areas of early child
education, child care, or any other educational area related to
child care that the Secretary determines appropriate.
``(5) Institution of higher education.--Notwithstanding
section 102, the term `institution of higher education' has the
meaning given the term in section 101.
``(c) Demonstration Program.--
``(1) In general.--The Secretary may carry out a
demonstration program of assuming the obligation to repay,
pursuant to subsection (d), a loan made, insured, or guaranteed
under this part or part D (excluding loans made under sections
428B and 428C or comparable loans made under part D) for any new
borrower after the date of enactment of the Higher Education
Amendments of 1998, who--
``(A) completes a degree in early childhood
education;
``(B) obtains employment in a child care facility;
and
``(C) has worked full time for the 2 consecutive
years preceding the year for which the determination is
made as a child care provider in a low-income community.
``(2) Low-income community.--For the purposes of this
subsection, the term `low-income community' means a community in
which 70 percent of households within the community earn less
than 85 percent of the State median household income.
``(3) Award basis; priority.--
``(A) Award basis.--Subject to subparagraph (B),
loan repayment under this section shall be on a first-
come, first-served basis and subject to the availability
of appropriations.
``(B) Priority.--The Secretary shall give priority
in providing loan repayment under this section for a
fiscal year to student borrowers who received loan
repayment under this section for the preceding fiscal
year.
``(4) Regulations.--The Secretary is authorized to prescribe
such regulations as may be necessary to carry out the provisions
of this section.
``(d) Loan Repayment.--
``(1) In general.--The Secretary shall assume the obligation
to repay--
``(A) after the second consecutive year of
employment described in subparagraphs (B) and (C) of
subsection (c)(1), 20 percent of the total amount of all
loans made after date of enactment of the Higher
Education Amendments of 1998, to a student under this
part or part D;
[[Page 112 STAT. 1701]]
``(B) after the third consecutive year of such
employment, 20 percent of the total amount of all such
loans; and
``(C) after each of the fourth and fifth consecutive
years of such employment, 30 percent of the total amount
of all such loans.
``(2) Construction.--Nothing in this section shall be
construed to authorize the refunding of any repayment of a loan
made under this part or part D.
``(3) Interest.--If a portion of a loan is repaid by the
Secretary under this section for any year, the proportionate
amount of interest on such loan which accrues for such year
shall be repaid by the Secretary.
``(4) Special rule.--In the case where a student borrower
who is not participating in loan repayment pursuant to this
section returns to an institution of higher education after
graduation from an institution of higher education for the
purpose of obtaining a degree in early childhood education, the
Secretary is authorized to assume the obligation to repay the
total amount of loans made under this part or part D incurred
for a maximum of two academic years in returning to an
institution of higher education for the purpose of obtaining a
degree in early childhood education. Such loans shall only be
repaid for borrowers who qualify for loan repayment pursuant to
the provisions of this section, and shall be repaid in
accordance with the provisions of paragraph (1).
``(5) Ineligibility of national service award recipients.--
No student borrower may, for the same volunteer service, receive
a benefit under both this section and subtitle D of title I of
the National and Community Service Act of 1990 (42 U.S.C. 12601
et seq.).
``(e) Repayment to Eligible Lenders.--The Secretary shall pay to
each eligible lender or holder for each fiscal year an amount equal to
the aggregate amount of loans which are subject to repayment pursuant to
this section for such year.
``(f ) Application for Repayment.--
``(1) In general.--Each eligible individual desiring loan
repayment under this section shall submit a complete and
accurate application to the Secretary at such time, in such
manner, and containing such information as the Secretary may
require.
``(2) Conditions.--An eligible individual may apply for loan
repayment under this section after completing each year of
qualifying employment. The borrower shall receive forbearance
while engaged in qualifying employment unless the borrower is in
deferment while so engaged.
``(g) Evaluation.--
``(1) In general.--The Secretary shall conduct, by grant or
contract, an independent national evaluation of the impact of
the demonstration program assisted under this section on the
field of early childhood education.
``(2) Competitive basis.--The grant or contract described in
subsection (b) shall be awarded on a competitive basis.
``(3) Contents.--The evaluation described in this subsection
shall--
[[Page 112 STAT. 1702]]
``(A) determine the number of individuals who were
encouraged by the demonstration program assisted under
this section to pursue early childhood education;
``(B) determine the number of individuals who remain
employed in a child care facility as a result of
participation in the program;
``(C) identify the barriers to the effectiveness of
the program;
``(D) assess the cost-effectiveness of the program
in improving the quality of--
``(i) early childhood education; and
``(ii) child care services;
``(E) identify the reasons why participants in the
program have chosen to take part in the program;
``(F) identify the number of individuals
participating in the program who received an associate's
degree and the number of such individuals who received a
bachelor's degree; and
``(G) identify the number of years each individual
participates in the program.
``(4) <<NOTE: Deadline.>> Interim and final evaluation
reports.--The Secretary shall prepare and submit to the
President and the Congress such interim reports regarding the
evaluation described in this subsection as the Secretary deems
appropriate, and shall prepare and so submit a final report
regarding the evaluation by January 1, 2002.
``(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $10,000,000 for fiscal year 1999,
and such sums as may be necessary for each of the 4 succeeding fiscal
years.''.
SEC. 426. NOTICE TO SECRETARY AND PAYMENT OF LOSS.
The third sentence of section 430(a) (20 U.S.C. 1080(a)) is amended
by inserting ``the institution was contacted and other'' after ``submit
proof that''.
SEC. 427. LEGAL POWERS AND RESPONSIBILITIES.
(a) Audit of Financial Transactions.--Section 432(f )(1) is
amended-- <<NOTE: 20 USC 1082.>>
(1) in subparagraph (B), by striking ``section 435(d)(1)
(D), (F), or (H);'' and inserting ``section 435(d)(1); and'';
(2) in subparagraph (C)--
(A) by striking ``and Labor'' and inserting ``and
the Workforce''; and
(B) by striking ``; and'' inserting a period; and
(3) by striking subparagraph (D).
(b) Program of Assistance.--Section 432(k)(3) is amended by striking
``Within 1 year'' and everything that follows through ``1992, the'' and
inserting ``The''.
(c) Common Forms and Formats.--Section 432(m) is
amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``a common
application form and promissory note'' and inserting
``common application forms and promissory notes, or
master promissory notes,'';
(B) in subparagraph (B)--
[[Page 112 STAT. 1703]]
(i) by striking ``The form'' and inserting
``The forms'';
(ii) by striking clause (iii); and
(C) by amending subparagraph (C) to read as follows:
``(C) Free application form.--For academic year
1999-2000 and succeeding academic years, the Secretary
shall prescribe the form developed under section 483 as
the application form under this part, other than for
loans under sections 428B and 428C.'';
(D) by amending subparagraph (D) to read as follows:
``(D) Master promissory note.--
``(i) In general.--The Secretary shall develop
and require the use of master promissory note
forms for loans made under this part and part
D. <<NOTE: Deadline.>> Such forms shall be
available for periods of enrollment beginning not
later than July 1, 2000. Each form shall allow
eligible borrowers to receive, in addition to
initial loans, additional loans for the same or
subsequent periods of enrollment through a student
confirmation process approved by the Secretary.
Such forms shall be used for loans made under this
part or part D as directed by the Secretary.
``(ii) Consultation.--In developing the master
promissory note under this subsection, the
Secretary shall consult with representatives of
guaranty agencies, eligible lenders, institutions
of higher education, students, and organizations
involved in student financial assistance.
``(iii) Sale; assignment; enforceability.--
Notwithstanding any other provision of law, each
loan made under a master promissory note under
this subsection may be sold or assigned
independently of any other loan made under the
same promissory note and each such loan shall be
separately enforceable in all Federal and State
courts on the basis of an original or copy of the
master promissory note in accordance with the
terms of the master promissory note.
``(iv) Perfection of security interests in
student loans.--Notwithstanding the provisions of
any State law to the contrary, including the
Uniform Commercial Code as in effect in any State,
a security interest in loans made under this part
created on behalf of any eligible lender as
defined in section 435(d) may be perfected either
through the taking of possession of such loans
(which can be through taking possession of an
original or copy of the master promissory note) or
by the filing of notice of such security interest
in such loans in the manner provided by such State
law for perfection of security interests in
accounts.''; and
(2) by adding at the end the following:
``(4) Electronic forms.--Nothing in this section shall be
construed to limit the development and use of electronic forms
and procedures.''.
(d) Default Reduction Management.--Section 432(n) is amended--
<<NOTE: 20 USC 1082.>>
[[Page 112 STAT. 1704]]
(1) in paragraph (1), by striking ``1993'' and inserting
``1999''; and
(2) in paragraph (3), by striking ``and Labor'' and
inserting ``and the Workforce''.
(e) Reporting Requirement.--Section 432(p) is amended <<NOTE: 20 USC
1082.>> by striking ``State postsecondary reviewing entities designated
under subpart 1 of part H,''.
SEC. 428. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.
(a) Required Disclosure Before Disbursement.--Section 433(a) (20
U.S.C. 1083(a)) is amended by amending the matter preceding paragraph
(1) to read as follows:
``(a) Required Disclosure Before Disbursement.--Each eligible
lender, at or prior to the time such lender disburses a loan that is
insured or guaranteed under this part (other than a loan made under
section 428C), shall provide thorough and accurate loan information on
such loan to the borrower in simple and understandable terms. Any
disclosure required by this subsection may be made by an eligible lender
by written or electronic means, including as part of the application
material provided to the borrower, as part of the promissory note
evidencing the loan, or on a separate written form provided to the
borrower. Each lender shall provide to each borrower a telephone number,
and may provide an electronic address, through which additional loan
information can be obtained. The disclosure shall include--''.
(b) Required Disclosure Before Repayment.--Section 433(b) is amended
by amending the matter preceding paragraph (1) to read as follows:
``(b) Required Disclosure Before Repayment.--Each eligible lender
shall, at or prior to the start of the repayment period of the student
borrower on loans made, insured, or guaranteed under this part, disclose
to the borrower by written or electronic means the information required
under this subsection in simple and understandable terms. Each eligible
lender shall provide to each borrower a telephone number, and may
provide an electronic address, through which additional loan information
can be obtained. For any loan made, insured, or guaranteed under this
part, other than a loan made under section 428B or 428C, such disclosure
required by this subsection shall be made not less than 30 days nor more
than 240 days before the first payment on the loan is due from the
borrower. The disclosure shall include--''.
SEC. 429. DEFINITIONS.
(a) Cohort Default Rate.--Section 435(a) (20 U.S.C. 1085(a)) is
amended--
(1) in paragraph (2)--
(A) in subparagraph (A)--
(i) by striking ``or'' at the end of clause
(i);
(ii) by striking clause (ii) and inserting the
following:
``(ii) there are exceptional mitigating
circumstances within the meaning of paragraph (4); or
``(iii) there are, in the judgment of the Secretary,
other exceptional mitigating circumstances that would
make the application of this paragraph inequitable.'';
and
(iii) by adding after the matter following
clause (iii) (as added by clause (ii)) the
following:
[[Page 112 STAT. 1705]]
``If an institution continues to participate in a program under
this part, and the institution's appeal of the loss of
eligibility is unsuccessful, the institution shall be required
to pay to the Secretary an amount equal to the amount of
interest, special allowance, reinsurance, and any related
payments made by the Secretary (or which the Secretary is
obligated to make) with respect to loans made under this part to
students attending, or planning to attend, that institution
during the pendency of such appeal.''; and
(B) in subparagraph (C), by striking ``July 1,
1998,'' and inserting ``July 1, 1999,'';
(2) in the matter following subparagraph (C) of para-
graph (3)--
(A) by inserting ``for a reasonable period of time,
not to exceed 30 days,'' after ``access''; and
(B) by striking ``of the affected guaranty agencies
and loan servicers for a reasonable period of time, not
to exceed 30 days'' and inserting ``used by a guaranty
agency in determining whether to pay a claim on a
defaulted loan or by the Department in determining an
institution's default rate in the loan program under
part D of this title''; and
(3) by adding at the end the following new paragraphs:
``(4) Definition of mitigating circumstances.--(A) For
purposes of paragraph (2)(A)(ii), an institution of higher
education shall be treated as having exceptional mitigating
circumstances that make application of that paragraph
inequitable if such institution, in the opinion of an
independent auditor, meets the following criteria:
``(i) For a 12-month period that ended during the 6
months immediately preceding the fiscal year for which
the cohort of borrowers used to calculate the
institution's cohort default rate is determined, at
least two-thirds of the students enrolled on at least a
half-time basis at the institution--
``(I) are eligible to receive a Federal Pell
Grant award that is at least equal to one-half the
maximum Federal Pell Grant award for which a
student would be eligible based on the student's
enrollment status; or
``(II) have an adjusted gross income that when
added with the adjusted gross income of the
student's parents (unless the student is an
independent student), of less than the poverty
level, as determined by the Department of Health
and Human Services.
``(ii) In the case of an institution of higher
education that offers an associate, baccalaureate,
graduate or professional degree, 70 percent or more of
the institution's regular students who were initially
enrolled on a full-time basis and were scheduled to
complete their programs during the same 12-month period
described in clause (i)--
``(I) completed the educational programs in
which the students were enrolled;
``(II) transferred from the institution to a
higher level educational program;
[[Page 112 STAT. 1706]]
``(III) at the end of the 12-month period,
remained enrolled and making satisfactory progress
toward completion of the student's educational
programs; or
``(IV) entered active duty in the Armed Forces
of the United States.
``(iii)(I) In the case of an institution of higher
education that does not award a degree described in
clause (ii), had a placement rate of 44 percent or more
with respect to the institution's former regular
students who--
``(aa) remained in the program beyond the
point the students would have received a 100
percent tuition refund from the institution;
``(bb) were initially enrolled on at least a
half-time basis; and
``(cc) were originally scheduled, at the time
of enrollment, to complete their educational
programs during the same 12-month period described
in clause (i).
``(II) The placement rate shall not include students
who are still enrolled and making satisfactory progress
in the educational programs in which the students were
originally enrolled on the date following 12 months
after the date of the student's last date of attendance
at the institution.
``(III) The placement rate is calculated by
determining the percentage of all those former regular
students who--
``(aa) are employed, in an occupation for
which the institution provided training, on the
date following 12 months after the date of their
last day of attendance at the institution;
``(bb) were employed, in an occupation for
which the institution provided training, for at
least 13 weeks before the date following 12 months
after the date of their last day of attendance at
the institution; or
``(cc) entered active duty in the Armed Forces
of the United States.
``(IV) The placement rate shall not include as
placements a student or former student for whom the
institution is the employer.
``(B) For purposes of determining a rate of completion and a
placement rate under this paragraph, a student is originally
scheduled, at the time of enrollment, to complete the
educational program on the date when the student will have been
enrolled in the program for the amount of time normally required
to complete the program. The amount of time normally required to
complete the program for a student who is initially enrolled
full-time is the period of time specified in the institution's
enrollment contract, catalog, or other materials, for completion
of the program by a full-time student. For a student who is
initially enrolled less than full-time, the period is the amount
of time it would take the student to complete the program if the
student remained enrolled at that level of enrollment throughout
the program.
``(5) Reduction of default rates at certain minority
institutions.--
[[Page 112 STAT. 1707]]
``(A) Beneficiaries of exception required to
establish management plan.--After July 1, 1999, any
institution that has a cohort default rate that equals
or exceeds 25 percent for each of the three most recent
fiscal years for which data are available and that
relies on the exception in subparagraph (B) to continue
to be an eligible institution shall--
``(i) submit to the Secretary a default
management plan which the Secretary, in the
Secretary's discretion, after consideration of the
institution's history, resources, dollars in
default, and targets for default reduction,
determines is acceptable and provides reasonable
assurance that the institution will, by July 1,
2002, have a cohort default rate that is less than
25 percent;
``(ii) engage an independent third party
(which may be paid with funds received under
section 317 or part B of title III) to provide
technical assistance in implementing such default
management plan; and
``(iii) provide to the Secretary, on an annual
basis or at such other intervals as the Secretary
may require, evidence of cohort default rate
improvement and successful implementation of such
default management plan.
``(B) Discretionary eligibility conditioned on
improvement.--Notwithstanding the expiration of the
exception in paragraph (2)(C), the Secretary may, in the
Secretary's discretion, continue to treat an institution
described in subparagraph (A) of this paragraph as an
eligible institution for each of the 1-year periods
beginning on July 1 of 1999, 2000, and 2001, only if the
institution submits by the beginning of such period
evidence satisfactory to the Secretary that--
``(i) such institution has complied and is
continuing to comply with the requirements of
subparagraph (A); and
``(ii) such institution has made substantial
improvement, during each of the preceding 1-year
periods, in the institution's cohort default rate.
``(6) Participation rate index.--
``(A) In general.--An institution that demonstrates
to the Secretary that the institution's participation
rate index is equal to or less than 0.0375 for any of
the 3 most recent fiscal years for which data is
available shall not be subject to paragraph (2). The
participation rate index shall be determined by
multiplying the institution's cohort default rate for
loans under part B or D, or weighted average cohort
default rate for loans under parts B and D, by the
percentage of the institution's regular students,
enrolled on at least a half-time basis, who received a
loan made under part B or D for a 12-month period ending
during the 6 months immediately preceding the fiscal
year for which the cohort of borrowers used to calculate
the institution's cohort default rate is determined.
[[Page 112 STAT. 1708]]
``(B) Data.--An institution shall provide the
Secretary with sufficient data to determine the
institution's participation rate index within 30 days
after receiving an initial notification of the
institution's draft cohort default rate.
``(C) Notification.--Prior to publication of a final
cohort default rate for an institution that provides the
data described in subparagraph (B), the Secretary shall
notify the institution of the institution's compliance
or noncompliance with subparagraph (A).''.
(b) Eligible Lender.--Section 435(d) (20 U.S.C. 1085(d)) is
amended--
(1) in paragraph (1)--
(A) in subparagraph (A)(ii)--
(i) by striking ``or'' after ``1992,''; and
(ii) by inserting before the semicolon the
following: ``, or (III) it is a bank (as defined
in section 3(a)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(a)(1)) that is a
wholly owned subsidiary of a nonprofit foundation,
the foundation is described in section 501(c)(3)
of the Internal Revenue Code of 1986 and exempt
from taxation under section 501(1) of such Code,
and the bank makes loans under this part only to
undergraduate students who are age 22 or younger
and has a portfolio of such loans that is not more
than $5,000,000'';
(B) by striking ``and'' at the end of subparagraph
(I);
(C) by striking the period at the end of
subparagraph (J) and inserting ``; and''; and
(D) by adding at the end the following new
subparagraph:
``(K) a consumer finance company subsidiary of a
national bank which, as of the date of enactment of this
subparagraph, through one or more subsidiaries: (i) acts
as a small business lending company, as determined under
regulations of the Small Business Administration under
section 120.470 of title 13, Code of Federal Regulations
(as such section is in effect on the date of enactment
of this subparagraph); and (ii) participates in the
program authorized by this part pursuant to subparagraph
(C), provided the national bank and all of the bank's
direct and indirect subsidiaries taken together as a
whole, do not have, as their primary consumer credit
function, the making or holding of loans made to
students under this part.''; and
(2) in paragraph (5), by adding at the end the following new
sentence:
``It shall not be a violation of this paragraph for a lender to
provide assistance to institutions of higher education
comparable to the kinds of assistance provided to institutions
of higher education by the Department of Education.''.
(c) Definition of Default.--
(1) Amendment.--Section 435(l) is amended--
(A) by striking ``180 days'' and inserting ``270
days''; and
(B) <<NOTE: Applicability. 20 USC 1085 note.>> by
striking ``240 days'' and inserting ``330 days''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply with respect to loans for which the first day
[[Page 112 STAT. 1709]]
of delinquency occurs on or after the date of enactment of this
Act.
(d) Cohort Default Rate.--Section 435(m) is amended-- <<NOTE: 20 USC
1085.>>
(1) in paragraph (1)(B), by striking ``insurance, and, in
considering appeals with respect to cohort default rates
pursuant to subsection (a)(3), exclude'' and inserting
``insurance. In considering appeals with respect to cohort
default rates pursuant to subsection (a)(3), the Secretary shall
exclude, from the calculation of the number of students who
entered repayment and from the calculation of the number of
students who default,''; and
(2) in paragraph (2)(C), by adding at the end the following:
``The Secretary may require guaranty agencies to collect data
with respect to defaulted loans in a manner that will permit the
identification of any defaulted loan for which (i) the borrower
is currently making payments and has made not less than 6
consecutive on-time payments by the end of such following fiscal
year, and (ii) a guaranty agency has renewed the borrower's
title IV eligibility as provided in section 428F(b).''; and
(3) in paragraph (4), by adding at the end the following:
``(D) <<NOTE: Publication. Deadline.>> The Secretary shall
publish the report described in subparagraph (C) by September 30
of each year.''.
SEC. 430. DELEGATION OF FUNCTIONS.
Section 436 (20 U.S.C. 1086) is amended to read as follows:
``SEC. 436. DELEGATION OF FUNCTIONS.
``(a) In General.--An eligible lender or guaranty agency that
contracts with another entity to perform any of the lender's or agency's
functions under this title, or otherwise delegates the performance of
such functions to such other entity--
``(1) shall not be relieved of the lender's or agency's duty
to comply with the requirements of this title; and
``(2) shall monitor the activities of such other entity for
compliance with such requirements.
``(b) Special Rule.--A lender that holds a loan made under part B in
the lender's capacity as a trustee is responsible for complying with all
statutory and regulatory requirements imposed on any other holder of a
loan made under this part.''.
SEC. 431. DISCHARGE.
Section 437(c)(1) (20 U.S.C. 1087(c)(1)) is amended--
(1) by inserting after ``falsely certified by the eligible
institution,'' the following: ``or if the institution failed to
make a refund of loan proceeds which the institution owed to
such student's lender,''; and
(2) by adding at the end the following new sentences: ``In
the case of a discharge based upon a failure to refund, the
amount of the discharge shall not exceed that portion of the
loan which should have been refunded. <<NOTE: Reports.>> The
Secretary shall report to the Committee on Education and the
Workforce of the House of Representatives and the Committee on
Labor and Human Resources of the Senate annually as to the
dollar amount of loan discharges attributable to failures to
make refunds.''.
[[Page 112 STAT. 1710]]
SEC. 432. DEBT MANAGEMENT OPTIONS.
Section 437A (20 U.S.C. 1087-0) is repealed.
SEC. 433. SPECIAL ALLOWANCES.
(a) Deduction From Interest and Special Allowance
Subsidies.--Paragraph (1) of section 438(c) (20 U.S.C. 1087-1) is
amended to read as follows:
``(1) Deduction from interest and special allowance
subsidies.--(A) Notwithstanding subsection (b), the Secretary
shall collect the amount the lender is authorized to charge as
an origination fee in accordance with paragraph (2) of this
subsection--
``(i) by reducing the total amount of interest and
special allowance payable under section 428(a)(3)(A) and
subsection (b) of this section, respectively, to any
holder; or
``(ii) directly from the holder of the loan, if the
lender fails or is not required to bill the Secretary
for interest and special allowance or withdraws from the
program with unpaid loan origination fees.
``(B) If the Secretary collects the origination fee under
this subsection through the reduction of interest and special
allowance, and the total amount of interest and special
allowance payable under section 428(a)(3)(A) and subsection (b)
of this section, respectively, is less than the amount the
lender was authorized to charge borrowers for origination fees
in that quarter, the Secretary shall deduct the excess amount
from the subsequent quarters' payments until the total amount
has been deducted.''.
(b) Origination Fees.--Section 438(c) is amended--
(1) in paragraph (2)--
(A) by striking ``(other than'' and inserting
``(including loans made under section 428H, but
excluding''; and
(B) by adding at the end the following new sentence:
``Except as provided in paragraph (8), a lender that
charges an origination fee under this paragraph shall
assess the same fee to all student borrowers.''; and
(2) by adding at the end the following new paragraph:
``(8) Exception.--Notwithstanding paragraph (2), a lender
may assess a lesser origination fee for a borrower demonstrating
greater financial need as determined by such borrower's adjusted
gross family income.''.
(c) Collection of Fees.--Paragraph (1) of section 438(d) is amended
to read as follows:
``(1) Deduction from interest and special allowance
subsidies.--
``(A) In general.--Notwithstanding subsection (b),
the Secretary shall collect a loan fee in an amount
determined in accordance with paragraph (2)--
``(i) by reducing the total amount of interest
and special allowance payable under section
428(a)(3)(A) and subsection (b), respectively, to
any holder of a loan; or
``(ii) directly from the holder of the loan,
if the lender--
``(I) fails or is not required to
bill the Secretary for interest and
special allowance payments; or
[[Page 112 STAT. 1711]]
``(II) withdraws from the program
with unpaid loan fees.
``(B) Special rule.--If the Secretary collects loan
fees under this subsection through the reduction of
interest and special allowance payments, and the total
amount of interest and special allowance payable under
section 428(a)(3)(A) and subsection (b), respectively,
is less than the amount of such loan fees, then the
Secretary shall deduct the amount of the loan fee
balance from the amount of interest and special
allowance payments that would otherwise be payable, in
subsequent quarterly increments until the balance has
been deducted.''.
(d) Lending From Proceeds of Tax-Exempt Obligations.--
(1) Amendment.--Subsection (e) of section 438 <<NOTE: 20 USC
1087-1.>> is amended to read as follows:
``(e) Nondiscrimination.--In order for the holders of loans which
were made or purchased with funds obtained by the holder from an
Authority issuing obligations, the income from which is exempt from
taxation under the Internal Revenue Code of 1986, to be eligible to
receive a special allowance under subsection (b)(2) on any such loans,
the Authority shall not engage in any pattern or practice which results
in a denial of a borrower's access to loans under this part because of
the borrower's race, sex, color, religion, national origin, age,
disability status, income, attendance at a particular eligible
institution within the area served by the Authority, length of the
borrower's educational program, or the borrower's academic year in
school.''.
(2) <<NOTE: 20 USC 1087-1 note.>> Effective date.--The
amendment made by paragraph (1) shall be effective as of the
date the plan required by section 438(e)(1) (as such section was
in effect prior to such amendment) was approved by the Secretary
or the Governor (whichever was the case). No Authority shall
have a right or cause of action against the Secretary for any
amounts paid to or offset by the Secretary pursuant to a final
settlement agreement entered into prior to July 1, 1998,
resolving any audit or program review findings alleging
violations of any provision of section 438(e) (as in effect
prior to such amendment).
SEC. 434. FEDERAL FAMILY EDUCATION LOAN INSURANCE FUND. <<NOTE: 20 USC
1081 note.>>
Any funds in the insurance fund, as established under section 431 of
the Higher Education Act of 1965 (20 U.S.C. 1081), on the date of
enactment of this Act shall be transferred to and deposited in the
Treasury. All funds received by the Secretary of Education under
subsection (a) of such section after the date of enactment of this Act
shall be deposited into the fund in accordance with such subsection.
PART C--FEDERAL WORK-STUDY PROGRAMS
SEC. 441. AUTHORIZATION OF APPROPRIATIONS; COMMUNITY
SERVICES.
(a) Authorization of Appropriations.--Section 441(b) (42 U.S.C.
2751(b)) is amended by striking ``$800,000,000 for fiscal year 1993''
and inserting ``$1,000,000,000 for fiscal year 1999''.
(b) Definition of Community Services.--Section 441(c) is amended--
[[Page 112 STAT. 1712]]
(1) in paragraph (1), by inserting ``(including child care
services provided on campus that are open and accessible to the
community)'' after ``child care''; and
(2) in paragraph (3), by inserting ``, including students
with disabilities who are enrolled at the institution'' before
the semicolon.
SEC. 442. ALLOCATION OF FUNDS.
(a) Updating the Base Period.--Section 442(a) <<NOTE: 42 USC
2752.>> (20 U.S.C. 2752(a)) is amended--
(1) in paragraph (1), by striking ``received and used under
this part for fiscal year 1985'' and inserting ``received under
subsections (a) and (b) for fiscal year 1999 (as such
subsections were in effect with respect to allocations for such
fiscal year)'';
(2) in paragraph (2)--
(A) in subparagraphs (A) and (B), by striking
``1985'' each place the term appears and inserting
``1999''; and
(B) in subparagraph (C)(i), by striking ``1986'' and
inserting ``2000''.
(b) Elimination of Pro Rata Share.--Section 442 is
amended--
(1) by striking subsection (b);
(2) by redesignating subsections (c) through (f ) as
subsections (b) through (e), respectively;
(3) in subsection (b)(1) (as redesignated by paragraph (2)),
by striking ``three-quarters of'';
(4) in subsection (b)(2)(A)(i) (as so redesignated), by
striking ``subsection (d)'' and inserting ``subsection (c)'';
(5) in subsection (c)(3) (as so redesignated), by striking
``the Secretary, for academic year 1988-1989 shall use the
procedures employed for academic year 1986-1987, and, for any
subsequent academic years,''; and
(6) in subsection (d)(1) (as so redesignated)--
(A) by striking ``10 percent'' and inserting ``5
percent'';
(B) by striking ``in community service'' and
inserting ``in tutoring in reading and family literacy
activities''; and
(C) by striking ``subsection (c)'' and inserting
``subsection (b)''.
(c) <<NOTE: Applicability. 42 USC 2752 note.>> Effective Date.--The
amendments made by this section shall apply with respect to allocations
of amounts appropriated pursuant to section 441(b) for fiscal year 2000
or any succeeding fiscal year.
SEC. 443. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.
(a) Eligible Employment.--Section 443(b)(1) (42 U.S.C. 2753(b)(1))
is amended by inserting ``, including internships, practica, or research
assistantships as determined by the Secretary,'' after ``part-time
employment''.
(b) Community Service.--Section 443(b)(2)(A) is amended--
(1) by striking ``in fiscal year 1994 and succeeding fiscal
years,'' and inserting ``for fiscal year 1999,''; and
(2) by inserting ``(including a reasonable amount of time
spent in travel or training directly related to such community
service)'' after ``community service''.
(c) Tutoring and Literacy Activities.--Section 443 is
amended--
(1) in subsection (b)(2)--
(A) by striking ``and'' at the end of subparagraph
(A);
[[Page 112 STAT. 1713]]
(B) by redesignating subparagraph (B) as
subparagraph (C); and
(C) by inserting after subparagraph (A) the
following:
``(B) for fiscal year 2000 and succeeding fiscal
years, an institution shall use at least 7 percent of
the total amount of funds granted to such institution
under this section for such fiscal year to compensate
students employed in community service, and shall ensure
that not less than 1 tutoring or family literacy project
(as described in subsection (d)) is included in meeting
the requirement of this subparagraph, except that the
Secretary may waive this subparagraph if the Secretary
determines that enforcing this subparagraph would cause
hardship for students at the institution; and''; and
(2) by adding at the end the following new subsection:
``(d) Tutoring and Literacy Activities.--
``(1) Use of funds.--In any academic year to which
subsection (b)(2)(B) applies, an institution shall ensure that
funds granted to such institution under this section are used in
accordance with such subsection to compensate (including
compensation for time spent in training and travel directly
related to tutoring in reading and family literacy activities)
students--
``(A) employed as reading tutors for children who
are preschool age or are in elementary school; or
``(B) employed in family literacy projects.
``(2) Priority for schools.--To the extent practicable, an
institution shall--
``(A) give priority to the employment of students in
the provision of tutoring in reading in schools that are
participating in a reading reform project that--
``(i) is designed to train teachers how to
teach reading on the basis of scientifically-based
research on reading; and
``(ii) is funded under the Elementary and
Secondary Education Act of 1965; and
``(B) ensure that any student compensated with the
funds described in paragraph (1) who is employed in a
school participating in a reading reform project
described in subparagraph (A) receives training from the
employing school in the instructional practices used by
the school.
``(3) Federal share.--The Federal share of the compensation
of work-study students compensated under this subsection may
exceed 75 percent.''.
(d) Use of Funds for Independent and Less Than Full-Time Students.--
Paragraph (3) of section 443(b) is amended <<NOTE: 42 USC 2753.>> to
read as follows:
``(3) provide that in the selection of students for
employment under such work-study program, only students who
demonstrate financial need in accordance with part F and meet
the requirements of section 484 will be assisted, except that if
the institution's grant under this part is directly or
indirectly based in part on the financial need demonstrated by
students who are (A) attending the institution on less than a
full-time basis, or (B) independent students, a reasonable
portion of the grant shall be made available to such
students;''.
(e) Federal Share.--Paragraph (5) of section 443(b) is
amended to read as follows:
[[Page 112 STAT. 1714]]
``(5) provide that the Federal share of the compensation of
students employed in the work-study program in accordance with
the agreement shall not exceed 75 percent, except that--
``(A) the Federal share may exceed 75 percent, but
not exceed 90 percent, if, consistent with regulations
of the Secretary--
``(i) the student is employed at a nonprofit
private organization or a government agency that--
``(I) is not a part of, and is not
owned, operated, or controlled by, or
under common ownership, operation, or
control with, the institution;
``(II) is selected by the
institution on an individual case-by-
case basis for such student; and
``(III) would otherwise be unable to
afford the costs of such employment; and
``(ii) not more than 10 percent of the
students compensated through the institution's
grant under this part during the academic year are
employed in positions for which the Federal share
exceeds 75 percent; and
``(B) the Federal share may exceed 75 percent if the
Secretary determines, pursuant to regulations
promulgated by the Secretary establishing objective
criteria for such determinations, that a Federal share
in excess of such amounts is required in furtherance of
the purpose of this part;''.
(f ) Availability of Employment.--Section 443(b)(6) is
amended <<NOTE: 42 USC 2753.>> by striking ``, and to make'' and all
that follows through ``such employment''.
(g) Academic Relevance.--Section 443(c)(4) is amended by inserting
before the semicolon at the end the following: ``, to the maximum extent
practicable''.
SEC. 444. FLEXIBLE USE OF FUNDS.
Section 445 (42 U.S.C. 2755) is amended by adding at the end the
following:
``(c) Flexible Use of Funds.--An eligible institution may, upon the
request of a student, make payments to the student under this part by
crediting the student's account at the institution or by making a direct
deposit to the student's account at a depository institution. An
eligible institution may only credit the student's account at the
institution for (1) tuition and fees, (2) in the case of institutionally
owned housing, room and board, and (3) other institutionally provided
goods and services.''.
SEC. 445. WORK COLLEGES.
Section 448 (42 U.S.C. 2756b) is amended--
(1) in subsection (b)(2)--
(A) in subparagraph (C), by striking ``and'' after
the semicolon;
(B) in subparagraph (D)(ii), by striking the period
and inserting a semicolon; and
(C) by adding at the end the following:
``(E) coordinate and carry out joint projects and
activities to promote work service learning; and
``(F) carry out a comprehensive, longitudinal study
of student academic progress and academic and career
outcomes, relative to student self-sufficiency in
financing their
[[Page 112 STAT. 1715]]
higher education, repayment of student loans, continued
community service, kind and quality of service
performed, and career choice and community service
selected after graduation.''; and
(2) in subsection (f ), by striking ``1993'' and inserting
``1999''.
PART D--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM
SEC. 451. SELECTION OF INSTITUTIONS.
(a) General Authority.--Section 453(a) (20 U.S.C. 1087c(a)) is
amended--
(1) by striking ``Phase-In'' and everything that follows
through ``General authority.--'' and inserting ``General
Authority.--''; and
(2) by striking paragraphs (2), (3), and (4).
(b) Selection Criteria.--Section 453(b)(2) is amended by striking
``prescribe,'' and everything that follows through the end of
subparagraph (B) and inserting ``prescribe.''.
(c) Origination.--Section 453(c) is amended--
(1) in paragraph (2)--
(A) in the heading, by striking ``Transition
selection criteria'' and inserting ``Selection
criteria'';
(B) by striking ``For academic year 1994-1995, the
Secretary'' and inserting ``The Secretary'';
(C) by striking subparagraph (A);
(D) by striking subparagraph (E); and
(E) by redesignating subparagraphs (B), (C), (D),
(F), (G), and (H) as subparagraphs (A) through (F),
respectively; and
(2) in paragraph (3)--
(A) in the paragraph heading, by striking ``After
transition''; and
(B) by striking ``For academic year 1995-1996 and
subsequent academic years, the'' and inserting ``The''.
SEC. 452. TERMS AND CONDITIONS.
(a) Direct Loan Interest Rates.--
(1) Amendment.--Section 455(b) (20 U.S.C. 1087e(b)) is
amended by adding at the end the following:
``(6) Interest rate provision for new loans on or after
october 1, 1998, and before july 1, 2003.--
``(A) Rates for fdsl and fdusl.--Notwithstanding the
preceding paragraphs of this subsection, for Federal
Direct Stafford Loans and Federal Direct Unsubsidized
Stafford Loans for which the first disbursement is made
on or after October 1, 1998, and before July 1, 2003,
the applicable rate of interest shall, during any 12-
month period beginning on July 1 and ending on June 30,
be determined on the preceding June 1 and be equal to--
``(i) the bond equivalent rate of 91-day
Treasury bills auctioned at the final auction held
prior to such June 1; plus
``(ii) 2.3 percent,
except that such rate shall not exceed 8.25 percent.
[[Page 112 STAT. 1716]]
``(B) In school and grace period rules.--
Notwithstanding the preceding paragraphs of this
subsection, with respect to any Federal Direct Stafford
Loan or Federal Direct Unsubsidized Stafford Loan for
which the first disbursement is made on or after October
1, 1998, and before July 1, 2003, the applicable rate of
interest for interest which accrues--
``(i) prior to the beginning of the repayment
period of the loan; or
``(ii) during the period in which principal
need not be paid (whether or not such principal is
in fact paid) by reason of a provision described
in section 428(b)(1)(M) or 427(a)(2)(C),
shall be determined under subparagraph (A) by
substituting `1.7 percent' for `2.3 percent'.
``(C) PLUS loans.--Notwithstanding the preceding
paragraphs of this subsection, with respect to Federal
Direct PLUS Loan for which the first disbursement is
made on or after October 1, 1998, and before July 1,
2003, the applicable rate of interest shall be
determined under subparagraph (A)--
``(i) by substituting `3.1 percent' for `2.3
percent'; and
``(ii) by substituting `9.0 percent' for `8.25
percent'.
``(D) Consolidation loans.--Notwithstanding the
preceding paragraphs of this subsection, any Federal
Direct Consolidation loan for which the application is
received on or after February 1, 1999, and before July
1, 2003, shall bear interest at an annual rate on the
unpaid principal balance of the loan that is equal to
the lesser of--
``(i) the weighted average of the interest
rates on the loans consolidated, rounded to the
nearest higher one-eighth of one percent; or
``(ii) 8.25 percent.
``(E) Temporary rules for consolidation loans.--
Notwithstanding the preceding paragraphs of this
subsection, any Federal Direct Consolidation loan for
which the application is received on or after October 1,
1998, and before February 1, 1999, shall bear interest
at an annual rate on the unpaid principal balance of the
loan that is equal to--
``(i) the bond equivalent rate of 91-day
Treasury bills auctioned at the final auction held
prior to such June 1; plus
``(ii) 2.3 percent,
except that such rate shall not exceed 8.25 percent.''.
(2) <<NOTE: 20 USC 1087e note.>> Limitation on consolidation
loans during temporary interest rate.--Notwithstanding section
455(g) of the Higher Education Act of 1965, a borrower who is
enrolled or accepted for enrollment in an institution of higher
education may not consolidate loans under such section during
the period beginning October 1, 1998, and ending February 1,
1999, unless the borrower certifies that the borrower has no
outstanding loans made, insured, or guaranteed under title IV of
such Act other than loans made under part D of such title.
(b) Repayment Incentives.--Section 455(b) (20 U.S.C. 1087e(b)) is
further amended by adding at the end the following:
[[Page 112 STAT. 1717]]
``(7) Repayment incentives.--
``(A) <<NOTE: Regulations.>> In general.--
Notwithstanding any other provision of this part, the
Secretary is authorized to prescribe by regulation such
reductions in the interest rate paid by a borrower of a
loan made under this part as the Secretary determines
appropriate to encourage on-time repayment of the loan.
Such reductions may be offered only if the Secretary
determines the reductions are cost neutral and in the
best financial interest of the Federal Government. Any
increase in subsidy costs resulting from such reductions
shall be completely offset by corresponding savings in
funds available for the William D. Ford Federal Direct
Loan Program in that fiscal year from section 458 and
other administrative accounts.
``(B) Accountability.--Prior to publishing
regulations proposing repayment incentives, the
Secretary shall ensure the cost neutrality of such
reductions. <<NOTE: Reports.>> The Secretary shall not
prescribe such regulations in final form unless an
official report from the Director of the Office of
Management and Budget to the Secretary and a comparable
report from the Director of the Congressional Budget
Office to the Congress each certify that any such
reductions will be completely cost
neutral. <<NOTE: Deadline.>> Such reports shall be
transmitted to the Committee on Labor and Human
Resources of the Senate and the Committee on Education
and the Workforce of the House of Representatives not
less than 60 days prior to the publication of
regulations proposing such reductions.''.
(c) Consolidation Loans.--The first sentence of section 455(g) is
amended <<NOTE: 20 USC 1087e.>> by striking everything after ``section
428C(a)(4)'' and inserting a period.
(d) <<NOTE: Applicability. 20 USC 1087e note.>> Effective Date.--The
amendments made by subsection (a) shall apply with respect to any loan
made under part D of title IV of the Higher Education Act of 1965 for
which the first disbursement is made on or after October 1, 1998, and
before July 1, 2003, except that such amendments shall apply with
respect to a Federal Direct Consolidation Loan for which the application
is received on or after October 1, 1998, and before July 1, 2003.
SEC. 453. CONTRACTS.
Section 456(b) (20 U.S.C. 1087f(b)) is amended--
(1) in paragraph (3), by inserting ``and'' after the
semicolon;
(2) by striking paragraph (4); and
(3) by redesignating paragraph (5) as paragraph (4).
SEC. 454. FUNDS FOR ADMINISTRATIVE EXPENSES.
Section 458 (20 U.S.C. 1087h) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Administrative Expenses.--
``(1) In general.--Each fiscal year there shall be available
to the Secretary, from funds not otherwise appropriated, funds
to be obligated for--
``(A) administrative costs under this part and part
B, including the costs of the direct student loan
programs under this part; and
``(B) account maintenance fees payable to guaranty
agencies under part B and calculated in accordance with
subsections (b) and (c),
[[Page 112 STAT. 1718]]
not to exceed (from such funds not otherwise appropriated)
$617,000,000 in fiscal year 1999, $735,000,000 in fiscal year
2000, $770,000,000 in fiscal year 2001, $780,000,000 in fiscal
year 2002, and $795,000,000 in fiscal year 2003.
``(2) Account maintenance fees.--Account maintenance fees
under paragraph (1)(B) shall be paid quarterly and deposited in
the Agency Operating Fund established under section 422B.
``(3) Carryover.--The Secretary may carry over funds made
available under this section to a subsequent fiscal year.'';
(2) by amending subsection (b) to read as follows:
``(b) Calculation Basis.--Except as provided in subsection (c),
account maintenance fees payable to guaranty agencies under paragraph
(1)(B) shall be calculated--
``(1) for fiscal years 1999 and 2000, on the basis of 0.12
percent of the original principal amount of outstanding loans on
which insurance was issued under part B; and
``(2) for fiscal years 2001, 2002, and 2003, on the basis of
0.10 percent of the original principal amount of outstanding
loans on which insurance was issued under part B.'';
(3) by striking subsection (d);
(4) by redesignating subsection (c) as subsection (d); and
(5) by inserting after subsection (b) the following:
``(c) Special Rules.--
``(1) Fee cap.--The total amount of account maintenance fees
payable under this section--
``(A) for fiscal year 1999, shall not exceed
$177,000,000;
``(B) for fiscal year 2000, shall not exceed
$180,000,000;
``(C) for fiscal year 2001, shall not exceed
$170,000,000;
``(D) for fiscal year 2002, shall not exceed
$180,000,000; and
``(E) for fiscal year 2003, shall not exceed
$195,000,000.
``(2) Insufficient funding.--
``(A) In general.--If the amounts set forth in
paragraph (1) are insufficient to pay the account
maintenance fees payable to guaranty agencies pursuant
to subsection (b) for a fiscal year, the Secretary shall
pay the insufficiency by requiring guaranty agencies to
transfer funds from the Federal Student Loan Reserve
Funds under section 422A to the Agency Operating Funds
under section 422B.
``(B) Entitlement.--A guaranty agency shall be
deemed to have a contractual right against the United
States to receive payments according to the provisions
of subparagraph (A).''.
SEC. 455. AUTHORITY TO SELL LOANS.
Part D of title IV (20 U.S.C. 1087a et seq.) is amended by adding at
the end the following:
``SEC. 459. AUTHORITY TO SELL LOANS. <<NOTE: 20 USC 1087i.>>
``The Secretary, in consultation with the Secretary of the Treasury,
is authorized to sell loans made under this part on such terms as the
Secretary determines are in the best interest of the United States,
except that any such sale shall not result in any cost to the Federal
Government. Notwithstanding any other provision of law, the proceeds of
any such sale may be used by the Secretary to offer reductions in the
interest rate paid by a borrower
[[Page 112 STAT. 1719]]
of a loan made under this part as the Secretary determines appropriate
to encourage on-time repayment in accordance with section 455(b)(7).
Such reductions may be offered only if the Secretary determines the
reductions are in the best financial interests of the Federal
Government.''.
SEC. 456. LOAN CANCELLATION FOR TEACHERS.
Part D of title IV (20 U.S.C. 1087a et seq.) is further amended by
adding after section 459 (as added by section 455) the following:
``SEC. 460. LOAN CANCELLATION FOR TEACHERS. <<NOTE: 20 USC 1087j.>>
``(a) Statement of Purpose.--It is the purpose of this section to
encourage individuals to enter and continue in the teaching profession.
``(b) Program Authorized.--
``(1) In general.--The Secretary shall carry out a program
of canceling the obligation to repay a qualified loan amount in
accordance with subsection (c) for Federal Direct Stafford Loans
and Federal Direct Unsubsidized Stafford Loans made under this
part for any new borrower on or after October 1, 1998, who--
``(A) has been employed as a full-time teacher for 5
consecutive complete school years--
``(i) in a school that qualifies under section
465(a)(2)(A) for loan cancellation for Perkins
loan recipients who teach in such schools;
``(ii) if employed as a secondary school
teacher, is teaching a subject area that is
relevant to the borrower's academic major as
certified by the chief administrative officer of
the public or non-profit private secondary school
in which the borrower is employed; and
``(iii) if employed as an elementary school
teacher, has demonstrated, as certified by the
chief administrative officer of the public or
nonprofit private elementary school in which the
borrower is employed, knowledge and teaching
skills in reading, writing, mathematics and other
areas of the elementary school curriculum; and
``(B) is not in default on a loan for which the
borrower seeks forgiveness.
``(2) Special rule.--No borrower may obtain a reduction of
loan obligations under both this section and section 428J.
``(c) Qualified Loan Amounts.--
``(1) In general.--The Secretary shall cancel not more than
$5,000 in the aggregate of the loan obligation on a Federal
Direct Stafford Loan or a Federal Direct Unsubsidized Stafford
Loan that is outstanding after the completion of the fifth
complete school year of teaching described in subsection
(b)(1)(A).
``(2) <<NOTE: Regulations.>> Treatment of consolidation
loans.--A loan amount for a Federal Direct Consolidation Loan
may be a qualified loan amount for the purposes of this
subsection only to the extent that such loan amount was used to
repay a Federal Direct Stafford Loan, a Federal Direct
Unsubsidized Stafford Loan, or a loan made under section 428 or
428H, for a borrower who meets the requirements of subsection
(b), as determined in accordance with regulations prescribed by
the Secretary.
[[Page 112 STAT. 1720]]
``(d) Regulations.--The Secretary is authorized to issue such
regulations as may be necessary to carry out the provisions of this
section.
``(e) Construction.--Nothing in this section shall be construed to
authorize any refunding of any canceled loan.
``(f ) List.--If the list of schools in which a teacher may perform
service pursuant to subsection (b) is not available before May 1 of any
year, the Secretary may use the list for the year preceding the year for
which the determination is made to make such service determination.
``(g) Additional Eligibility Provisions.--
``(1) Continued eligibility.--Any teacher who performs
service in a school that--
``(A) meets the requirements of subsection (b)(1)(A)
in any year during such service; and
``(B) in a subsequent year fails to meet the
requirements of such subsection, may continue to teach
in such school and shall be eligible for loan
cancellation pursuant to subsection (b).
``(2) Prevention of double benefits.--No borrower may, for
the same volunteer service, receive a benefit under both this
section and subtitle D of title I of the National and Community
Service Act of 1990 (42 U.S.C. 12571 et seq.).
``(h) Definition.--For the purpose of this section, the term `year'
where applied to service as a teacher means an academic year as defined
by the Secretary.''.
PART E--FEDERAL PERKINS LOANS
SEC. 461. AUTHORIZATION OF APPROPRIATIONS.
Subsection (b) of section 461 (20 U.S.C. 1087aa) is amended--
(1) in paragraph (1), by striking ``1993'' and inserting
``1999''; and
(2) in paragraph (2), by striking ``1997'' each place the
term appears and inserting ``2003''.
SEC. 462. ALLOCATION OF FUNDS.
(a) Changes in Allocation Formula.--
(1) Updating the base period.--Section 462(a) (20 U.S.C.
1087bb(a)) is amended--
(A) in paragraph (1)(A), by striking ``the amount of
the Federal capital contribution allocated to such
institution under this part for fiscal year 1985'' and
inserting ``the amount received under subsections (a)
and (b) of this section for fiscal year 1999 (as such
subsections were in effect with respect to allocations
for such fiscal year)'';
(B) in paragraph (2)--
(i) in subparagraphs (A) and (B), by striking
``1985'' each place the term appears and inserting
``1999''; and
(ii) in subparagraph (C)(i), by striking
``1986'' and inserting ``2000''.
(2) Elimination of pro rata share.--Section 462 is further
amended--
(A) in subsection (a)--
(i) in paragraph (1)(B), by striking
``subsection (f )'' and inserting ``subsection
(e)'';
[[Page 112 STAT. 1721]]
(ii) in the matter following paragraph (1)(B),
by striking ``subsection (g)'' and inserting
``subsection (f)'';
(iii) in paragraph (2)(D)(ii), by striking
``subsection (f)'' and inserting ``subsection
(e)''; and
(iv) in the matter following paragraph
(2)(D)(ii), by striking ``subsection (g)'' and
inserting ``subsection (f)'';
(B) by striking subsection (b);
(C) in subsection (c)(1), by striking ``three-
quarters of the remainder'' and inserting ``the
remainder'';
(D) in the matter following subsection (c)(2)(B), by
striking ``subsection (g)'' and inserting ``subsection
(f )'';
(E) in subsection (c)(3)--
(i) in subparagraph (A), by striking
``subsection (d)'' and inserting ``subsection
(c)'';
(ii) in subparagraph (C), by striking
``subsection (f )'' and inserting ``subsection
(e)''; and
(iii) in the matter following subparagraph
(C), by striking ``subsection (g)'' and inserting
``subsection (f )'';
(F) in subsection ( j)(1)(B)(i), by striking
``1985'' and inserting ``1999'';
(G) in subsection ( j)(2)--
(i) in subparagraph (A), by striking
``paragraph (3) of subsection (c)'' and inserting
``subsection (b)(3)''; and
(ii) in subparagraph (B), by striking
``subsection (c) of section 462'' and inserting
``subsection (b)''; and
(H) by redesignating subsections (c) through ( j) as
subsections (b) through (i), respectively.
(3) <<NOTE: Applicability. 20 USC 1087bb note.>> Effective
Date.--The amendments made by this subsection shall apply with
respect to allocations of amounts appropriated pursuant to
section 461(b) for fiscal year 2000 or any succeeding fiscal
year.
(b) Self-Help Need.--The matter preceding subparagraph (A) of
section 462(c)(3) (as redesignated by subsection (a)(2)(G)) is
amended <<NOTE: 20 USC 1087bb.>> by striking ``the Secretary, for'' and
all that follows through ``years,''.
(c) Default Penalties.--Subsections (e) and (f ) of section 462 (as
redesignated by subsection (a)(2)(G)) are amended to read as follows:
``(e) Default Penalties.--
``(1) Years preceding fiscal year 2000.--For any fiscal year
preceding fiscal year 2000, any institution with a cohort
default rate that--
``(A) <<NOTE: Regulations.>> equals or exceeds 15
percent, shall establish a default reduction plan
pursuant to regulations prescribed by the Secretary,
except that such plan shall not be required with respect
to an institution that has a default rate of less than
20 percent and that has less than 100 students who have
loans under this part in such academic year;
``(B) equals or exceeds 20 percent, but is less than
25 percent, shall have a default penalty of 0.9;
``(C) equals or exceeds 25 percent, but is less than
30 percent, shall have a default penalty of 0.7; and
``(D) equals or exceeds 30 percent shall have a
default penalty of zero.
[[Page 112 STAT. 1722]]
``(2) Years following fiscal year 2000.--For fiscal year
2000 and any succeeding fiscal year, any institution with a
cohort default rate (as defined under subsection (g)) that
equals or exceeds 25 percent shall have a default penalty of
zero.
``(3) Ineligibility.--
``(A) <<NOTE: Deadlines.>> In general.--For fiscal
year 2000 and any succeeding fiscal year, any
institution with a cohort default rate (as defined in
subsection (g)) that equals or exceeds 50 percent for
each of the 3 most recent years for which data are
available shall not be eligible to participate in a
program under this part for the fiscal year for which
the determination is made and the 2 succeeding fiscal
years, unless, within 30 days of receiving notification
from the Secretary of the loss of eligibility under this
paragraph, the institution appeals the loss of
eligibility to the Secretary. The Secretary shall issue
a decision on any such appeal within 45 days after the
submission of the appeal. Such decision may permit the
institution to continue to participate in a program
under this part if--
``(i) the institution demonstrates to the
satisfaction of the Secretary that the calculation
of the institution's cohort default rate is not
accurate, and that recalculation would reduce the
institution's cohort default rate for any of the 3
fiscal years below 50 percent; or
``(ii) there are, in the judgment of the
Secretary, such a small number of borrowers
entering repayment that the application of this
subparagraph would be inequitable.
``(B) Continued participation.--During an appeal
under subparagraph (A), the Secretary may permit the
institution to continue to participate in a program
under this part.
``(C) <<NOTE: Deadline.>> Return of funds.--Within
90 days after the date of any termination pursuant to
subparagraph (A), or the conclusion of any appeal
pursuant to subparagraph (B), whichever is later, the
balance of the student loan fund established under this
part by the institution that is the subject of the
termination shall be distributed as follows:
``(i) The Secretary shall first be paid an
amount which bears the same ratio to such balance
(as of the date of such distribution) as the total
amount of Federal capital contributions to such
fund by the Secretary under this part bears to the
sum of such Federal capital contributions and the
capital contributions to such fund made by the
institution.
``(ii) The remainder of such student loan fund
shall be paid to the institution.
``(D) Use of returned funds.--Any funds returned to
the Secretary under this paragraph shall be reallocated
to institutions of higher education pursuant to
subsection (i).
``(E) Definition.--For the purposes of subparagraph
(A), the term `loss of eligibility' shall be defined as
the mandatory liquidation of an institution's student
loan fund, and assignment of the institution's
outstanding loan portfolio to the Secretary.
``(f ) Applicable Maximum Cohort Default Rate.--
[[Page 112 STAT. 1723]]
``(1) Award years prior to 2000.--For award years prior to
award year 2000, the applicable maximum cohort default rate is
30 percent.
``(2) Award year 2000 and succeeding award years.--For award
year 2000 and subsequent years, the applicable maximum cohort
default rate is 25 percent.''.
(d) Cohort Default Rate Definition.--Section 462(g) (as redesignated
by subsection (a)(2)(G)) is amended-- <<NOTE: 20 USC 1087bb.>>
(1) by striking the subsection heading and paragraphs (1)
and (2) and inserting the following:
``(g) Definition of Cohort Default Rate.--'';
(2) by striking ``(3)(A) For award year 1994 and any
succeeding award year, the term'' and inserting the following:
``(1)(A) The term'';
(3) in paragraph (1) (as redesignated by paragraph (2))--
(A) by striking subparagraphs (B) and (E); and
(B) by redesignating subparagraphs (C), (D), (F),
and (G) as subparagraphs (B), (C), (D), and (F),
respectively;
(C) by inserting after subparagraph (D) (as
redesignated by subparagraph (B)) the following:
``(E) In determining the number of students who default
before the end of such award year, the institution, in
calculating the cohort default rate, shall exclude--
``(i) any loan on which the borrower has, after the
time periods specified in paragraph (2)--
``(I) voluntarily made 6 consecutive payments;
``(II) voluntarily made all payments currently
due;
``(III) repaid in full the amount due on the
loan; or
``(IV) received a deferment or forbearance,
based on a condition that began prior to such time
periods;
``(ii) any loan which has, after the time periods
specified in paragraph (2), been rehabilitated or
canceled; and
``(iii) any other loan that the Secretary determines
should be excluded from such determination.''; and
(4) by striking paragraph (4) and inserting the following:
``(2) For purposes of calculating the cohort default rate
under this subsection, a loan shall be considered to be in
default--
``(A) 240 days (in the case of a loan repayable
monthly), or
``(B) 270 days (in the case of a loan repayable
quarterly),
after the borrower fails to make an installment payment when due
or to comply with other terms of the promissory note.''.
(e) Conforming Amendments.--Section 462 (20 U.S.C. 1087bb) is
amended--
(1) in the matter following paragraphs (1)(B) and (2)(D)(ii)
of subsection (a), by inserting ``cohort'' before ``default''
each place the term appears;
(2) in the matter following paragraphs (2)(B) and (3)(C) of
subsection (b) (as redesignated by subsection (a)(2)(G)), by
inserting ``cohort'' before ``default'' each place the term
appears;
(3) in subsection (d)(2) (as redesignated by subsection
(a)(2)(G)), by inserting ``cohort'' before ``default''; and
(4) in subsection (g)(1)(F) (as redesignated by subsections
(a)(2)(G) and (d)(3)(B)), by inserting ``cohort'' before
``default''.
[[Page 112 STAT. 1724]]
SEC. 463. AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION.
(a) Contents of Agreements.--Section 463(a) (20 U.S.C. 1087cc(a)) is
amended--
(1) by amending subparagraph (B) of paragraph (2) to read as
follows:
``(B) a capital contribution by an institution in an
amount equal to one-third of the Federal capital
contributions described in subparagraph (A);'';
(2) by striking paragraph (4); and
(3) by redesignating paragraphs (5) through (10) as
paragraphs (4) through (9);
(b) Agreements With Credit Bureaus.--Section 463(c) is amended--
(1) in paragraph (1)--
(A) by striking ``the Secretary shall'' and
inserting ``the Secretary and each institution of higher
education participating in the program under this part
shall''; and
(B) by inserting ``and regarding loans held by the
Secretary or an institution'' after ``section 467'';
(2) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by
striking ``by the Secretary'' and all that follows
through ``of--'' and inserting ``by the Secretary or an
institution, as the case may be, to such organizations,
with respect to any loan held by the Secretary or the
institution, respectively, of--'';
(B) by amending subparagraph (A) to read as follows:
``(A) the date of disbursement and the amount of
such loans made to any borrower under this part at the
time of disbursement of the loan;'';
(C) in subparagraph (B)--
(i) by inserting ``the repayment and'' after
``concerning''; and
(ii) by striking ``any defaulted'' and
inserting ``such''; and
(D) in subparagraph (C), by inserting ``, or upon
cancellation or discharge of the borrower's obligation
on the loan for any reason'' before the period;
(3) in paragraph (3)--
(A) in the matter preceding subparagraph (A)--
(i) by inserting ``or an institution'' after
``from the Secretary''; and
(ii) by striking ``until--'' and inserting
``until the loan is paid in full.''; and
(B) by striking subparagraphs (A) and (B);
(4) by amending paragraph (4) to read as follows:
``(4)(A) Except as provided in subparagraph (B), an institution of
higher education, after consultation with the Secretary and pursuant to
the agreements entered into under paragraph (1), shall disclose at least
annually to any credit bureau organization with which the Secretary has
such an agreement the information set forth in paragraph (2), and shall
disclose promptly to such credit bureau organization any changes to the
information previously disclosed.
``(B) The Secretary may promulgate regulations establishing criteria
under which an institution of higher education may cease
[[Page 112 STAT. 1725]]
reporting the information described in paragraph (2) before a loan is
paid in full.''; and
(4) by inserting after paragraph (4) the following:
``(5) <<NOTE: Notification.>> Each institution of higher education
shall notify the appropriate credit bureau organizations whenever a
borrower of a loan that is made and held by the institution and that is
in default makes 6 consecutive monthly payments on such loan, for the
purpose of encouraging such organizations to update the status of
information maintained with respect to that borrower.''.
(c) Conforming Amendment.--Section 463(d) is
amended by <<NOTE: 20 USC 1087cc.>> striking ``subsection (a)(10)'' and
inserting ``subsection (a)(9)''.
SEC. 464. TERMS OF LOANS.
(a) Terms and Conditions; Annual Limits.--Paragraph (2) of section
464(a) (20 U.S.C. 1087dd(a)) is amended to read as follows:
``(2)(A) Except as provided in paragraph (4), the total of loans
made to a student in any academic year or its equivalent by an
institution of higher education from a loan fund established pursuant to
an agreement under this part shall not exceed--
``(i) $4,000, in the case of a student who has not
successfully completed a program of undergraduate education; or
``(ii) <<NOTE: Regulations.>> $6,000, in the case of a
graduate or professional student (as defined in regulations
issued by the Secretary).
``(B) Except as provided in paragraph (4), the aggregate unpaid
principal amount for all loans made to a student by institutions of
higher education from loan funds established pursuant to agreements
under this part may not exceed--
``(i) $40,000, in the case of any graduate or professional
student (as defined by regulations issued by the Secretary, and
including any loans from such funds made to such person before
such person became a graduate or professional student);
``(ii) <<NOTE: Regulations.>> $20,000, in the case of a
student who has successfully completed 2 years of a program of
education leading to a bachelor's degree but who has not
completed the work necessary for such a degree (determined under
regulations issued by the Secretary), and including any loans
from such funds made to such person before such person became
such a student; and
``(iii) $8,000, in the case of any other student.''.
(b) Need and Eligibility.--Section 464(b) is amended--
(1) in paragraph (1), by adding at the end the following:
``A student who is in default on a loan under this part shall
not be eligible for an additional loan under this part unless
such loan meets one of the conditions for exclusion under
section 462(g)(1)(E).''; and
(2) by amending paragraph (2) to read as follows:
``(2) If the institution's capital contribution under section 462 is
directly or indirectly based in part on the financial need demonstrated
by students who are (A) attending the institution less than full time,
or (B) independent students, then a reasonable portion of the loans made
from the institution's student loan fund containing the contribution
shall be made available to such students.''.
(c) Contents of Loan Agreement.--Section 464(c) is
amended--
[[Page 112 STAT. 1726]]
(1) in paragraph (1)(D)--
(A) by striking ``(i) 3 percent'' and all that
follows through ``or (iii)''; and
(B) by striking ``subparagraph (A)(i)'' and
inserting ``paragraph (2)(A)(i)'';
(2) in the matter following clause (iv) of paragraph (2)(A),
by striking ``subparagraph (B)'' and inserting ``subparagraph
(A) of paragraph (1)'';
(3) by adding at the end of paragraph (2) the following:
``(C) An individual with an outstanding loan balance who meets the
eligibility criteria for a deferment described in subparagraph (A) as in
effect on the date of enactment of this subparagraph shall be eligible
for deferment under this paragraph notwithstanding any contrary
provision of the promissory note under which the loan or loans were
made, and notwithstanding any amendment (or effective date provision
relating to any amendment) to this section made prior to the date of
such deferment.''; and
(4) by adding at the end the following:
``(7) There shall be excluded from the 9-month period that begins on
the date on which a student ceases to carry at least one-half the normal
full-time academic workload (as described in paragraph (1)(A)) any
period not to exceed 3 years during which a borrower who is a member of
a reserve component of the Armed Forces named in section 10101 of title
10, United States Code, is called or ordered to active duty for a period
of more than 30 days (as defined in section 101(d)(2) of such title).
Such period of exclusion shall include the period necessary to resume
enrollment at the borrower's next available regular enrollment
period.''.
(d) Discharge; Rehabilitation; Incentive Repayment.--
Section 464 is amended <<NOTE: 20 USC 1087dd.>> by adding at the end the
following:
``(g) Discharge.--
``(1) In general.--If a student borrower who received a loan
made under this part on or after January 1, 1986, is unable to
complete the program in which such student is enrolled due to
the closure of the institution, then the Secretary shall
discharge the borrower's liability on the loan (including the
interest and collection fees) and shall subsequently pursue any
claim available to such borrower against the institution and the
institution's affiliates and principals, or settle the loan
obligation pursuant to the financial responsibility standards
described in section 498(c).
``(2) Assignment.--A borrower whose loan has been discharged
pursuant to this subsection shall be deemed to have assigned to
the United States the right to a loan refund in an amount that
does not exceed the amount discharged against the institution
and the institution's affiliates and principals.
``(3) Eligibility for additional assistance.--The period
during which a student was unable to complete a course of study
due to the closing of the institution shall not be considered
for purposes of calculating the student's period of eligibility
for additional assistance under this title.
``(4) Special rule.--A borrower whose loan has been
discharged pursuant to this subsection shall not be precluded,
because of that discharge, from receiving additional grant,
loan, or work assistance under this title for which the borrower
[[Page 112 STAT. 1727]]
would be otherwise eligible (but for the default on the
discharged loan). The amount discharged under this subsection
shall be treated as an amount canceled under section 465(a).
``(5) Reporting.--The Secretary or institution, as the case
may be, shall report to credit bureaus with respect to loans
that have been discharged pursuant to this subsection.
``(h) Rehabilitation of Loans.--
``(1) Rehabilitation.--
``(A) In general.--If the borrower of a loan made
under this part who has defaulted on the loan makes 12
ontime, consecutive, monthly payments of amounts owed on
the loan, as determined by the institution, or by the
Secretary in the case of a loan held by the Secretary,
the loan shall be considered rehabilitated, and the
institution that made that loan (or the Secretary, in
the case of a loan held by the Secretary) shall request
that any credit bureau organization or credit reporting
agency to which the default was reported remove the
default from the borrower's credit history.
``(B) Comparable conditions.--As long as the
borrower continues to make scheduled repayments on a
loan rehabilitated under this paragraph, the
rehabilitated loan shall be subject to the same terms
and conditions, and qualify for the same benefits and
privileges, as other loans made under this part.
``(C) Additional assistance.--The borrower of a
rehabilitated loan shall not be precluded by section 484
from receiving additional grant, loan, or work
assistance under this title (for which the borrower is
otherwise eligible) on the basis of defaulting on the
loan prior to such rehabilitation.
``(D) Limitations.--A borrower only once may obtain
the benefit of this paragraph with respect to
rehabilitating a loan under this part.
``(2) Restoration of eligibility.--If the borrower of a loan
made under this part who has defaulted on that loan makes 6
ontime, consecutive, monthly payments of amounts owed on such
loan, the borrower's eligibility for grant, loan, or work
assistance under this title shall be restored to the extent that
the borrower is otherwise eligible. A borrower only once may
obtain the benefit of this paragraph with respect to restored
eligibility.
``(i) Incentive Repayment Program.--
``(1) In general.--Each institution of higher education may
establish, with the approval of the Secretary, an incentive
repayment program designed to reduce default and to replenish
student loan funds established under this part. Each such
incentive repayment program may--
``(A) offer a reduction of the interest rate on a
loan on which the borrower has made 48 consecutive,
monthly repayments, but in no event may the rate be
reduced by more than 1 percent;
``(B) provide for a discount on the balance owed on
a loan on which the borrower pays the principal and
interest in full prior to the end of the applicable
repayment period, but in no event may the discount
exceed 5 percent
[[Page 112 STAT. 1728]]
of the unpaid principal balance due on the loan at the
time the early repayment is made; and
``(C) include such other incentive repayment options
as the institution determines will carry out the
objectives of this subsection.
``(2) Limitation.--No incentive repayment option under an
incentive repayment program authorized by this subsection may be
paid for with Federal funds, including any Federal funds from
the student loan fund, or with institutional funds from the
student loan fund.''.
SEC. 465. CANCELLATION FOR PUBLIC SERVICE.
Section 465 (20 U.S.C. 1087ee) is amended--
(1) in subsection (a)--
(A) in paragraph (2)(C), by striking ``section
676(b)(9)'' and inserting ``section 635(a)(10)'';
(B) in the last sentence of paragraph (2), by
striking ``section 602(a)(1)'' and inserting ``section
602''; and
(C) by adding at the end the following new
paragraph:
``(7) An individual with an outstanding loan obligation under this
part who performs service of any type that is described in paragraph (2)
as in effect on the date of enactment of this paragraph shall be
eligible for cancellation under this section for such service
notwithstanding any contrary provision of the promissory note under
which the loan or loans were made, and notwithstanding any amendment (or
effective date provision relating to any amendment) to this section made
prior to the date of such service.''; and
(2) <<NOTE: Deadline.>> in subsection (b), by adding at the
end the following new sentence: ``To the extent feasible, the
Secretary shall pay the amounts for which any institution
qualifies under this subsection not later than 3 months after
the institution files an institutional application for campus-
based funds.''.
SEC. 466. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS.
Section 466 (20 U.S.C. 1087ff) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1)--
(i) by striking ``1996'' and inserting
``2003''; and
(ii) by striking ``1997'' and inserting
``2004''; and
(B) in paragraph (1), by striking ``1996'' and
inserting ``2003'';
(2) in subsection (b)--
(A) by striking ``2005'' and inserting ``2012''; and
(B) by striking ``1996'' and inserting ``2003''; and
(3) in subsection (c), by striking ``1997'' and inserting
``2004''.
SEC. 467. PERKINS LOAN REVOLVING FUND.
(a) Repeal.--Subsection (c) of section 467 (20 U.S.C. 1087gg(c)) is
repealed.
(b) <<NOTE: 20 USC 1087gg note.>> Transfer of Balance.--Any funds in
the Perkins Loan Revolving Fund on the date of enactment of this Act
shall be transferred to and deposited in the Treasury.
[[Page 112 STAT. 1729]]
PART F--NEED ANALYSIS
SEC. 471. COST OF ATTENDANCE.
Section 472 (20 U.S.C. 1087ll) is amended--
(1) in paragraph (2), by inserting after ``personal
expenses'' the following: ``, including a reasonable allowance
for the documented rental or purchase of a personal computer,'';
(2) in paragraph (3)--
(A) in subparagraph (A), by striking ``of not less
than $1,500'' and inserting ``determined by the
institution''; and
(B) in subparagraph (C), by striking ``, except that
the amount may not be less than $2,500'';
(3) in paragraph (10), by striking everything after
``determining costs'' and inserting a semicolon; and
(4) in paragraph (11), by striking ``placed'' and inserting
``engaged''.
SEC. 472. DATA ELEMENTS.
Section 474(b)(3) (20 U.S.C. 1087nn(b)(3)) is amended by
inserting ``, excluding the student's parents,'' after ``family of the
student''.
SEC. 473. FAMILY CONTRIBUTION FOR DEPENDENT STUDENTS.
(a) Parents' Contribution from Adjusted Available Income.--Section
475(b)(3) (20 U.S.C. 1087oo(b)(3)) is amended by inserting ``, excluding
the student's parents,'' after ``number of family members''.
(b) Student Contribution From Available Income.--Section 475(g) is
amended--
(1) in paragraph (2)--
(A) in subparagraph (D), by striking ``$1,750; and''
and inserting ``$2,200 (or a successor amount prescribed
by the Secretary under section 478);'';
(B) by striking the period at the end of
subparagraph (E) and inserting ``; and''; and
(C) by inserting after subparagraph (E) the
following new subparagraph:
``(F) an allowance for parents' negative available
income, determined in accordance with paragraph (6).'';
and
(2) by adding at the end the following new paragraph:
``(6) Allowance for parents' negative available income.--The
allowance for parents' negative available income is the amount,
if any, by which the sum of the amounts deducted under
subparagraphs (A) through (F) of subsection (c)(1) exceeds the
sum of the parents' total income (as defined in section 480) and
the parents' contribution from assets (as determined in
accordance with subsection (d)).''.
(c) Adjustments to Student's Contribution for Enrollment Periods
Other Than Nine Months.--Section 475 is amended by adding at the end the
following:
``( j) Adjustments to Student's Contribution for Enrollment Periods
of Less Than Nine Months.--For periods of enrollment of less than 9
months, the student's contribution from adjusted available income (as
determined under subsection (g)) is determined, for purposes other than
subpart 2 of part A, by dividing the amount
[[Page 112 STAT. 1730]]
determined under such subsection by 9, and multiplying the result by the
number of months in the period of enrollment.''.
SEC. 474. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITHOUT
DEPENDENTS OTHER THAN A SPOUSE.
(a) Adjustments for Enrollment Periods of Less Than Nine Months.--
Section 476(a) (20 U.S.C. 1087pp(a)) is amended--
(1) by striking ``and'' at the end of paragraph (1)(B);
(2) by inserting ``and'' after the semicolon at the end of
paragraph (2); and
(3) by inserting after paragraph (2) the following new
paragraph:
``(3) for periods of enrollment of less than 9 months, for
purposes other than subpart 2 of part A--
``(A) dividing the quotient resulting under
paragraph (2) by 9; and
``(B) multiplying the result by the number of months
in the period of enrollment;''.
(b) Contribution from Available Income.--Section 476(b)(1)(A)(iv) is
amended--
(1) by striking ``allowance of--'' and inserting ``allowance
of the following amount (or a successor amount prescribed by the
Secretary under section 478)--'';
(2) in subclauses (I) and (II), by striking ``$3,000'' each
place the term appears and inserting ``$5,000''; and
(3) in subclause (III), by striking ``$6,000'' and inserting
``$8,000''.
SEC. 475. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITH DEPENDENTS
OTHER THAN A SPOUSE.
Section 477(a) (20 U.S.C. 1087qq(a)) is amended--
(1) by striking ``and'' at the end of paragraph (2);
(2) by inserting ``and'' after the semicolon at the end of
paragraph (3); and
(3) by inserting after paragraph (3) the following new
paragraph:
``(4) for periods of enrollment of less than 9 months, for
purposes other than subpart 2 of part A--
``(A) dividing the quotient resulting under
paragraph (3) by 9; and
``(B) multiplying the result by the number of months
in the period of enrollment;''.
SEC. 476. REGULATIONS; UPDATED TABLES AND AMOUNTS.
Section 478(b) (20 U.S.C. 1087rr(b)) is amended--
(1) by striking ``For each academic year'' and inserting the
following:
``(1) Revised tables.--For each academic year''; and
(2) by adding at the end the following new paragraph:
``(2) <<NOTE: Federal Register, publication.>> Revised
amounts.--For each academic year after academic year 2000-2001,
the Secretary shall publish in the Federal Register revised
income protection allowances for the purpose of sections
475(g)(2)(D) and 476(b)(1)(A)(iv). Such revised allowances shall
be developed by increasing each of the dollar amounts contained
in such section by a percentage equal to the estimated
percentage increase in the Consumer Price Index (as determined
by the Secretary) between December 1999 and
[[Page 112 STAT. 1731]]
the December next preceding the beginning of such academic year,
and rounding the result to the nearest $10.''.
SEC. 477. SIMPLIFIED NEEDS TEST; ZERO EXPECTED FAMILY CONTRIBUTION.
Section 479 (20 U.S.C. 1087ss) is amended--
(1) in subsection (b)(3)--
(A) in the matter preceding subparagraph (A), by
striking ``this paragraph'' and inserting ``this
subsection, or subsection (c), as the case may be,'';
(B) in subparagraph (A), by striking ``or'' at the
end thereof;
(C) by redesignating subparagraph (B) as
subparagraph (C); and
(D) by inserting after subparagraph (A) the
following new subparagraph:
``(B) a form 1040 (including any prepared or
electronic version of such form) required pursuant to
the Internal Revenue Code of 1986, except that such form
shall be considered a qualifying form only if the
student or family files such form in order to take a tax
credit under section 25A of the Internal Revenue Code of
1986, and would otherwise be eligible to file a form
described in subparagraph (A); or'';
(2) in subsection (c)--
(A) by amending paragraph (1)(A) to read as follows:
``(A) the student's parents file, or are eligible to
file, a form described in subsection (b)(3), or certify
that the parents are not required to file an income tax
return and the student files, or is eligible to file,
such a form, or certifies that the student is not
required to file an income tax return; and''; and
(B) by amending paragraph (2)(A) to read as follows:
``(A) the student (and the student's spouse, if any)
files, or is eligible to file, a form described in
subsection (b)(3), or certifies that the student (and
the student's spouse, if any) is not required to file an
income tax return; and''.
SEC. 478. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS.
Section 479A (20 U.S.C. 1087tt) is amended--
(1) in subsection (a), by inserting after the second
sentence the following: ``Special circumstances may include
tuition expenses at an elementary or secondary school, medical
or dental expenses not covered by insurance, unusually high
child care costs, recent unemployment of a family member, the
number of parents enrolled at least half-time in a degree,
certificate, or other program leading to a recognized
educational credential at an institution with a program
participation agreement under section 487, or other changes in a
family's income, a family's assets, or a student's status.'';
and
(2) by amending subsection (c) to read as follows:
``(c) Refusal or Adjustment of Loan Certifications.--On a case-by-
case basis, an eligible institution may refuse to certify a statement
that permits a student to receive a loan under part B or D, or may
certify a loan amount or make a loan that is less than the student's
determination of need (as determined under this part), if the reason for
the action is documented and provided
[[Page 112 STAT. 1732]]
in written form to the student. No eligible institution shall
discriminate against any borrower or applicant in obtaining a loan on
the basis of race, national origin, religion, sex, marital status, age,
or disability status.''.
SEC. 479. TREATMENT OF OTHER FINANCIAL ASSISTANCE.
Section 480( j) (20 U.S.C. 1087vv( j)) is amended--
(1) in paragraph (1), by inserting before the period at the
end the following: ``, and national service educational awards
or post-service benefits under title I of the National and
Community Service Act of 1990 (42 U.S.C. 12571 et seq.)'';
(2) by striking paragraph (3); and
(3) by redesignating paragraph (4) as paragraph (3).
SEC. 480. CLERICAL AMENDMENTS.
(a) Amount of Need.--Section 471 (20 U.S.C. 1087kk) is amended by
striking ``or 4'' and inserting ``or 2''.
(b) Family Contribution.--Section 473 (20 U.S.C. 1087mm) is amended
by striking ``subpart 4'' and inserting ``subpart 2''.
SEC. 480A. EFFECTIVE DATES. <<NOTE: 20 USC 1087kk note.>>
(a) In General.--Except as provided in subsection (b), the
amendments made by this part are effective on the date of enactment of
this Act.
(b) <<NOTE: Applicability.>> Provisions Effective for Academic Year
2000-2001, and Thereafter.--The amendments made by sections 472, 473,
474, and 475 shall apply with respect to determinations of need under
part F of title IV of the Higher Education Act of 1965 for academic
years beginning on or after July 1, 2000.
PART G--GENERAL PROVISIONS
SEC. 481. MASTER CALENDAR.
(a) Required Schedule.--Section 482(a) (20 U.S.C. 1089(a)) is
amended by adding at the end the following:
``(3) <<NOTE: Notification.>> The Secretary shall, to the
extent practicable, notify eligible institutions, guaranty
agencies, lenders, interested software providers, and, upon
request, other interested parties, by December 1 prior to the
start of an award year of minimal hardware and software
requirements necessary to administer programs under this title.
``(4) The Secretary shall attempt to conduct training
activities for financial aid administrators and others in an
expeditious and timely manner prior to the start of an award
year in order to ensure that all participants are informed of
all administrative requirements.''.
(b) Delay of Effective Date of Late Publications.--Subsection (c) of
section 482 is amended to read as follows:
``(c) Delay of Effective Date of Late Publications.--(1) Except as
provided in paragraph (2), any regulatory changes initiated by the
Secretary affecting the programs under this title that have not been
published in final form by November 1 prior to the start of the award
year shall not become effective until the beginning of the second award
year after such November 1 date.
``(2)(A) The Secretary may designate any regulatory provision that
affects the programs under this title and is published in final form
after November 1 as one that an entity subject to the provision may, in
the entity's discretion, choose to implement prior
[[Page 112 STAT. 1733]]
to the effective date described in paragraph (1). The Secretary may
specify in the designation when, and under what conditions, an entity
may implement the provision prior to that effective date.
The <<NOTE: Federal Register, publication.>> Secretary shall publish any
designation under this subparagraph in the Federal Register.
``(B) If an entity chooses to implement a regulatory provision prior
to the effective date described in paragraph (1), as permitted by
subparagraph (A), the provision shall be effective with respect to that
entity in accordance with the terms of the Secretary's designation.''.
SEC. 482. FORMS AND REGULATIONS.
(a) Common Financial Aid Form Development.--Section 483(a) (20
U.S.C. 1090(a)) is amended--
(1) in the subsection heading, by striking ``Form'' and
inserting ``Form Development'';
(2) in paragraph (1)--
(A) by striking ``A, C, D, and E'' and inserting ``A
through E'';
(B) by striking ``and to determine the need of a
student for the purpose of part B of this title'';
(C) by striking the second sentence and inserting
the following: ``The Secretary shall include on the form
developed under this subsection such data items as the
Secretary determines are appropriate for inclusion. Such
items shall be selected in consultation with States to
assist in the awarding of State financial assistance. In
no case shall the number of such data items be less than
the number included on the form on the date of enactment
of the Higher Education Amendments of 1998.''; and
(D) by striking the last sentence;
(3) in paragraph (2)--
(A) by striking ``A, C, D, and E'' each place the
term appears and inserting ``A through E'';
(B) by striking ``and the need of a student for the
purpose of part B of this title,''; and
(C) by striking ``or have the student's need
established for the purpose of part B of this title'';
(4) by amending paragraph (3) to read as follows:
``(3) Distribution of data.--Institutions of higher
education, guaranty agencies, and States shall receive, without
charge, the data collected by the Secretary using the form
developed pursuant to this section for the purposes of
processing loan applications and determining need and
eligibility for institutional and State financial aid awards.
Entities designated by institutions of higher education,
guaranty agencies, or States to receive such data shall be
subject to all the requirements of this section, unless such
requirements are waived by the Secretary.'';
(5) by adding at the end the following:
``(5) Electronic forms.--(A) The Secretary, in cooperation
with representatives of agencies and organizations involved in
student financial assistance, including private computer
software providers, shall develop an electronic version of the
form described in paragraph (1). As permitted by the Secretary,
such an electronic version shall not require a signature to be
collected at the time such version is submitted, if a signature
[[Page 112 STAT. 1734]]
is subsequently submitted by the
applicant. <<NOTE: Deadline.>> The Secretary shall prescribe
such version not later than 120 days after the date of enactment
of the Higher Education Amendments of 1998.
``(B) Nothing in this section shall be construed to prohibit
the use of the form developed by the Secretary pursuant to
subparagraph (A) by an eligible institution, eligible lender,
guaranty agency, State grant agency, private computer software
providers, a consortium thereof, or such other entities as the
Secretary may designate.
``(C) No fee shall be charged to students in connection with
the use of the electronic version of the form, or of any other
electronic forms used in conjunction with such form in applying
for Federal or State student financial assistance.
``(D) <<NOTE: Privacy.>> The Secretary shall ensure that
data collection complies with section 552a of title 5, United
States Code, and that any entity using the electronic version of
the form developed by the Secretary pursuant to subparagraph (A)
shall maintain reasonable and appropriate administrative,
technical, and physical safeguards to ensure the integrity and
confidentiality of the information, and to protect against
security threats, or unauthorized uses or disclosures of the
information provided on the electronic version of the form. Data
collected by such version of the form shall be used only for the
application, award, and administration of aid awarded under this
title, State aid, or aid awarded by eligible institutions or
such entities as the Secretary may designate. No data collected
by such version of the form shall be used for making final aid
awards under this title until such data have been processed by
the Secretary or a contractor or designee of the Secretary.
``(6) Third party servicers and private software
providers.--To the extent practicable and in a timely manner,
the Secretary shall provide, to private organizations and
consortia that develop software used by eligible institutions
for the administration of funds under this title, all the
necessary specifications that the organizations and consortia
must meet for the software the organizations and consortia
develop, produce, and distribute (including any diskette, modem,
or network communications) which are so used. The specifications
shall contain record layouts for required data. The Secretary
shall develop in advance of each processing cycle an annual
schedule for providing such specifications. The Secretary, to
the extent practicable, shall use means of providing such
specifications, including conferences and other meetings,
outreach, and technical support mechanisms (such as training and
printed reference materials). The Secretary shall, from time to
time, solicit from such organizations and consortia means of
improving the support provided by the Secretary.
``(7) Parent's social security number and birth date.--The
Secretary is authorized to include on the form developed under
this subsection space for the social security number and birth
date of parents of dependent students seeking financial
assistance under this title.''.
(b) Streamlined Reapplication Process.--Section 483(b)(1) is
amended <<NOTE: 20 USC 1090.>> by striking ``, within 240 days'' and all
that follows through ``of 1992,''.
(c) Information to Committees.--Section 483(c) is amended by
striking ``and Labor'' and inserting ``and the Workforce''.
[[Page 112 STAT. 1735]]
<<NOTE: 20 USC 1090.>> (d) Toll-Free Information.--Section 483(d)
is amended by striking ``section 633(c)'' and inserting ``section
685(d)(2)(C)''.
(e) Repeal.--Subsection (f ) of section 483 is repealed.
SEC. 483. STUDENT ELIGIBILITY.
(a) In General.--Section 484(a) (20 U.S.C. 1091(a)) is
amended--
(1) in paragraph (4), by striking ``the institution'' and
everything that follows through ``lender), a document'' and
inserting ``the Secretary, as part of the original financial aid
application process, a certification,''; and
(2) in paragraph (5), by striking ``or a permanent resident
of the Trust Territory of the Pacific Islands, Guam, or the
Northern Mariana Islands'' and inserting ``a citizen of any one
of the Freely Associated States''.
(b) Home-Schooled Students.--Section 484(d) is amended--
(1) in the matter preceding paragraph (1), by striking
``either''; and
(2) by adding at the end the following:
``(3) The student has completed a secondary school education
in a home school setting that is treated as a home school or
private school under State law.''.
(c) Termination of Eligibility.--Section 484( j) is amended to read
as follows:
``( j) Assistance Under Subparts 1 and 3 of Part A, and Part C.--
Notwithstanding any other provision of law, a student shall be eligible
until September 30, 2004, for assistance under subparts 1 and 3 of part
A, and part C, if the student is otherwise qualified and--
``(1) is a citizen of any one of the Freely Associated
States and attends an institution of higher education in a State
or a public or nonprofit private institution of higher education
in the Freely Associated States; or
``(2) meets the requirements of subsection (a)(5) and
attends a public or nonprofit private institution of higher
education in any one of the Freely Associated States.''.
(d) Correspondence Courses.--Paragraph (1) of section 484(l) is
amended to read as follows:
``(1) Relation to correspondence courses.--
``(A) In general.--A student enrolled in a course of
instruction at an institution of higher education that
is offered in whole or in part through
telecommunications and leads to a recognized certificate
for a program of study of 1 year or longer, or a
recognized associate, baccalaureate, or graduate degree,
conferred by such institution, shall not be considered
to be enrolled in correspondence courses unless the
total amount of telecommunications and correspondence
courses at such institution equals or exceeds 50 percent
of the total amount of all courses at the institution.
``(B) Requirement.--An institution of higher
education referred to in subparagraph (A) is an
institution of higher education--
``(i) that is not an institute or school
described in section 521(4)(C) of the Carl D.
Perkins Vocational and Applied Technology
Education Act; and
[[Page 112 STAT. 1736]]
``(ii) for which at least 50 percent of the
programs of study offered by the institution lead
to the award of a recognized associate,
baccalaureate, or graduate degree.''.
(e) Verification of Income Data.--Section 484 <<NOTE: 20 USC
1091.>> is amended by adding at the end the following:
``(q) Verification of Income Data.--
``(1) Confirmation with irs.--The Secretary of Education, in
cooperation with the Secretary of the Treasury, is authorized to
confirm with the Internal Revenue Service the adjusted gross
income, Federal income taxes paid, filing status, and exemptions
reported by applicants (including parents) under this title on
their Federal income tax returns for the purpose of verifying
the information reported by applicants on student financial aid
applications.
``(2) <<NOTE: Procedures.>> Notification.--The Secretary
shall establish procedures under which an applicant is notified
that the Internal Revenue Service will disclose to the Secretary
tax return information as authorized under section 6103(l)(13)
of the Internal Revenue Code of 1986.''.
(f ) Suspension of Eligibility for Drug-Related Offenses.--
(1) Amendment.--Section 484 is amended by adding at the end
thereof the following:
``(r) Suspension of Eligibility for Drug-Related Offenses.--
``(1) In general.--A student who has been convicted of any
offense under any Federal or State law involving the possession
or sale of a controlled substance shall not be eligible to
receive any grant, loan, or work assistance under this title
during the period beginning on the date of such conviction and
ending after the interval specified in the following table:
``If convicted of an offense involving:
The possession of a con-
trolled substance: Ineligibility period is:
First offense..... 1 year
Second offense.... 2 years
Third offense..... Indefinite.
The sale of a cont lled
substance: Ineligibility period is:
First offense..... 2 years
Second offense.... Indefinite.
``(2) Rehabilitation.--A student whose eligibility has been
suspended under paragraph (1) may resume eligibility before the
end of the ineligibility period determined under such paragraph
if--
``(A) the student satisfactorily completes a drug
rehabilitation program that--
``(i) complies with such criteria as the
Secretary shall prescribe in regulations for
purposes of this paragraph; and
``(ii) includes two unannounced drug tests; or
``(B) the conviction is reversed, set aside, or
otherwise rendered nugatory.
``(3) Definitions.--In this subsection, the term `controlled
substance' has the meaning given the term in section 102(6) of
the Controlled Substances Act (21 U.S.C. 802(6)).''.
[[Page 112 STAT. 1737]]
(2) <<NOTE: Applicability. 20 USC 1091 note.>> Effective
date.--The amendment made by paragraph (1), regarding suspension
of eligibility for drug-related offenses, shall apply with
respect to financial assistance to cover the costs of attendance
for periods of enrollment beginning after the date of enactment
of this Act.
SEC. 484. STATE COURT JUDGMENTS.
Section 484A (20 U.S.C. 1091a) is amended--
(1) in the heading of the section by inserting ``, and state
court judgments'' after ``limitations''; and
(2) by adding at the end the following:
``(c) State Court Judgments.--A judgment of a State court for the
recovery of money provided as grant, loan, or work assistance under this
title that has been assigned or transferred to the Secretary under this
title may be registered in any district court of the United States by
filing a certified copy of the judgment and a copy of the assignment or
transfer. A judgment so registered shall have the same force and effect,
and may be enforced in the same manner, as a judgment of the district
court of the district in which the judgment is registered.''.
SEC. 485. INSTITUTIONAL REFUNDS.
Section 484B (20 U.S.C. 1091b) is amended to read as follows:
``SEC. 484B. INSTITUTIONAL REFUNDS.
``(a) Return of Title IV Funds.--
``(1) In general.--If a recipient of assistance under this
title withdraws from an institution during a payment period or
period of enrollment in which the recipient began attendance,
the amount of grant or loan assistance (other than assistance
received under part C) to be returned to the title IV programs
is calculated according to paragraph (3) and returned in
accordance with subsection (b).
``(2) Leave of absence.--
``(A) Leave not treated as withdrawal.--In the case
of a student who takes a leave of absence from an
institution for not more than a total of 180 days in any
12-month period, the institution may consider the
student as not having withdrawn from the institution
during the leave of absence, and not calculate the
amount of grant and loan assistance provided under this
title that is to be returned in accordance with this
section if--
``(i) the institution has a formal policy
regarding leaves of absence;
``(ii) the student followed the institution's
policy in requesting a leave of absence; and
``(iii) the institution approved the student's
request in accordance with the institution's
policy.
``(B) Consequences of failure to return.--If a
student does not return to the institution at the
expiration of an approved leave of absence that meets
the requirements of subparagraph (A), the institution
shall calculate the amount of grant and loan assistance
provided under this title that is to be returned in
accordance with this section based on the day the
student withdrew (as determined under subsection (c)).
``(3) Calculation of amount of title iv assistance earned.--
[[Page 112 STAT. 1738]]
``(A) In general.--The amount of grant or loan
assistance under this title that is earned by the
recipient for purposes of this section is calculated
by--
``(i) determining the percentage of grant and
loan assistance under this title that has been
earned by the student, as described in
subparagraph (B); and
``(ii) applying such percentage to the total
amount of such grant and loan assistance that was
disbursed (and that could have been disbursed) to
the student, or on the student's behalf, for the
payment period or period of enrollment for which
the assistance was awarded, as of the day the
student withdrew.
``(B) Percentage earned.--For purposes of
subparagraph (A)(i), the percentage of grant or loan
assistance under this title that has been earned by the
student is--
``(i) equal to the percentage of the payment
period or period of enrollment for which
assistance was awarded that was completed (as
determined in accordance with subsection (d)) as
of the day the student withdrew, provided that
such date occurs on or before the completion of 60
percent of the payment period or period of
enrollment; or
``(ii) 100 percent, if the day the student
withdrew occurs after the student has completed 60
percent of the payment period or period of
enrollment.
``(C) Percentage and amount not earned.--For
purposes of subsection (b), the amount of grant and loan
assistance awarded under this title that has not been
earned by the student shall be calculated by--
``(i) determining the complement of the
percentage of grant or loan assistance under this
title that has been earned by the student
described in subparagraph (B); and
``(ii) applying the percentage determined
under clause (i) to the total amount of such grant
and loan assistance that was disbursed (and that
could have been disbursed) to the student, or on
the student's behalf, for the payment period or
period of enrollment, as of the day the student
withdrew.
``(4) Differences between amounts earned and amounts
received.--
``(A) <<NOTE: Regulations.>> In general.--If the
student has received less grant or loan assistance than
the amount earned as calculated under subparagraph (A)
of paragraph (3), the institution of higher education
shall comply with the procedures for late disbursement
specified by the Secretary in regulations.
``(B) Return.--If the student has received more
grant or loan assistance than the amount earned as
calculated under paragraph (3)(A), the unearned funds
shall be returned by the institution or the student, or
both, as may be required under paragraphs (1) and (2) of
subsection (b), to the programs under this title in the
order specified in subsection (b)(3).
``(b) Return of Title IV Program Funds.--
[[Page 112 STAT. 1739]]
``(1) Responsibility of the institution.--The institution
shall return, in the order specified in paragraph (3), the
lesser of--
``(A) the amount of grant and loan assistance
awarded under this title that has not been earned by the
student, as calculated under subsection (a)(3)(C); or
``(B) an amount equal to--
``(i) the total institutional charges incurred
by the student for the payment period or period of
enrollment for which such assistance was awarded;
multiplied by
``(ii) the percentage of grant and loan
assistance awarded under this title that has not
been earned by the student, as described in
subsection (a)(3)(C)(i).
``(2) Responsibility of the student.--
``(A) In general.--The student shall return
assistance that has not been earned by the student as
described in subsection (a)(3)(C)(ii) in the order
specified in paragraph (3) minus the amount the
institution is required to return under paragraph (1).
``(B) Special rule.--The student (or parent in the
case of funds due to a loan borrowed by a parent under
part B or D) shall return or repay, as appropriate, the
amount determined under subparagraph (A) to--
``(i) a loan program under this title in
accordance with the terms of the loan; and
``(ii) a grant program under this title, as an
overpayment of such grant and shall be subject
to--
``(I) repayment arrangements
satisfactory to the institution; or
``(II) overpayment collection
procedures prescribed by the Secretary.
``(C) Requirement.--Notwithstanding subparagraphs
(A) and (B), a student shall not be required to return
50 percent of the grant assistance received by the
student under this title, for a payment period or period
of enrollment, that is the responsibility of the student
to repay under this section.
``(3) Order of return of title iv funds.--
``(A) In general.--Excess funds returned by the
institution or the student, as appropriate, in
accordance with paragraph (1) or (2), respectively,
shall be credited to outstanding balances on loans made
under this title to the student or on behalf of the
student for the payment period or period of enrollment
for which a return of funds is required. Such excess
funds shall be credited in the following order:
``(i) To outstanding balances on loans made
under section 428H for the payment period or
period of enrollment for which a return of funds
is required.
``(ii) To outstanding balances on loans made
under section 428 for the payment period or period
of enrollment for which a return of funds is
required.
``(iii) To outstanding balances on
unsubsidized loans (other than parent loans) made
under part D for the payment period or period of
enrollment for which a return of funds is
required.
[[Page 112 STAT. 1740]]
``(iv) To outstanding balances on subsidized
loans made under part D for the payment period or
period of enrollment for which a return of funds
is required.
``(v) To outstanding balances on loans made
under part E for the payment period or period of
enrollment for which a return of funds is
required.
``(vi) To outstanding balances on loans made
under section 428B for the payment period or
period of enrollment for which a return of funds
is required.
``(vii) To outstanding balances on parent
loans made under part D for the payment period or
period of enrollment for which a return of funds
is required.
``(B) Remaining excesses.--If excess funds remain
after repaying all outstanding loan amounts, the
remaining excess shall be credited in the following
order:
``(i) To awards under subpart 1 of part A for
the payment period or period of enrollment for
which a return of funds is required.
``(ii) To awards under subpart 3 of part A for
the payment period or period of enrollment for
which a return of funds is required.
``(iii) To other assistance awarded under this
title for which a return of funds is required.
``(c) Withdrawal Date.--
``(1) In general.--In this section, the term `day the
student withdrew'--
``(A) is the date that the institution determines--
``(i) the student began the withdrawal process
prescribed by the institution;
``(ii) the student otherwise provided official
notification to the institution of the intent to
withdraw; or
``(iii) in the case of a student who does not
begin the withdrawal process or otherwise notify
the institution of the intent to withdraw, the
date that is the mid-point of the payment period
for which assistance under this title was
disbursed or a later date documented by the
institution; or
``(B) for institutions required to take attendance,
is determined by the institution from such attendance
records.
``(2) Special rule.--Notwithstanding paragraph (1), if the
institution determines that a student did not begin the
withdrawal process, or otherwise notify the institution of the
intent to withdraw, due to illness, accident, grievous personal
loss, or other such circumstances beyond the student's control,
the institution may determine the appropriate withdrawal date.
``(d) Percentage of the Payment Period or Period of Enrollment
Completed.--For purposes of subsection (a)(3)(B)(i), the percentage of
the payment period or period of enrollment for which assistance was
awarded that was completed, is determined--
``(1) in the case of a program that is measured in credit
hours, by dividing the total number of calendar days comprising
the payment period or period of enrollment for which assistance
is awarded into the number of calendar days completed in that
period as of the day the student withdrew; and
``(2) in the case of a program that is measured in clock
hours, by dividing the total number of clock hours comprising
[[Page 112 STAT. 1741]]
the payment period or period of enrollment for which assistance
is awarded into the number of clock hours--
``(A) completed by the student in that period as of
the day the student withdrew; or
``(B) <<NOTE: Regulations.>> scheduled to be
completed as of the day the student withdrew, if the
clock hours completed in the period are not less than a
percentage, to be determined by the Secretary in
regulations, of the hours that were scheduled to be
completed by the student in the period.
``(e) Effective Date.--The provisions of this section shall take
effect 2 years after the date of enactment of the Higher Education
Amendments of 1998. An institution of higher education may choose to
implement such provisions prior to that date.''.
SEC. 486. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR
STUDENTS.
(a) Information Dissemination Activities.--Section 485(a) (20 U.S.C.
1092(a)) is amended--
(1) in paragraph (1)--
(A) in the second sentence, by striking ``, through
appropriate publications and mailings, to all current
students, and to any prospective student upon request''
and inserting ``upon request, through appropriate
publications, mailings, and electronic media, to an
enrolled student and to any prospective student'';
(B) by inserting after the second sentence the
following: ``Each eligible institution shall, on an
annual basis, provide to all enrolled students a list of
the information that is required to be provided by
institutions to students by this section and section 444
of the General Education Provisions Act (also referred
to as the Family Educational Rights and Privacy Act of
1974), together with a statement of the procedures
required to obtain such information.'';
(C) by amending subparagraph (F) to read as follows:
``(F) a statement of--
``(i) the requirements of any refund policy with
which the institution is required to comply;
``(ii) the requirements under section 484B for the
return of grant or loan assistance provided under this
title; and
``(iii) the requirements for officially withdrawing
from the institution;''; and
(D) by striking ``and'' at the end of subparagraph
(M);
(E) by striking the period at the end of
subparagraph (N) and inserting ``; and''; and
(F) by adding at the end the following:
``(O) the campus crime report prepared by the institution
pursuant to subsection (f ), including all required reporting
categories.'';
(2) in paragraph (3), by amending subparagraph (A) to read
as follows:
``(A) shall be made available by July 1 each year to
enrolled students and prospective students prior to the students
enrolling or entering into any financial obligation; and''; and
(3) by adding at the end the following:
``(6) Each institution may provide supplemental information to
enrolled and prospective students showing the completion or
[[Page 112 STAT. 1742]]
graduation rate for students described in paragraph (4) or for students
transferring into the institution or information showing the rate at
which students transfer out of the institution.''.
(b) Exit Counseling for Borrowers.--Section 485(b) (20 U.S.C.
1092(b)) is amended--
(1) in paragraph (1)(A), by striking ``(individually or in
groups)''; and
(2) in paragraph (2), by adding at the end the following:
``(C) Nothing in this subsection shall be construed to prohibit an
institution of higher education from utilizing electronic means to
provide personalized exit counseling.''.
(c) Departmental Publications.--Section 485(d) is amended--
(1) by striking ``(1) assist'' and inserting ``(A) assist'';
(2) by striking ``(2) assist'' and inserting ``(B) assist'';
(3) by inserting ``(1)'' before ``The Secretary'' the first
place the term appears; and
(4) by adding at the end the following:
``(2) <<NOTE: Records.>> The Secretary, to the extent the
information is available, shall compile information describing State and
other prepaid tuition programs and savings programs and disseminate such
information to States, eligible institutions, students, and parents in
departmental publications.
``(3) <<NOTE: Internet.>> The Secretary, to the extent practicable,
shall update the Department's Internet site to include direct links to
databases that contain information on public and private financial
assistance programs. The Secretary shall only provide direct links to
databases that can be accessed without charge and shall make reasonable
efforts to verify that the databases included in a direct link are not
providing fraudulent information. The Secretary shall prominently
display adjacent to any such direct link a disclaimer indicating that a
direct link to a database does not constitute an endorsement or
recommendation of the database, the provider of the database, or any
services or products of such provider. The Secretary shall provide
additional direct links to information resources from which students may
obtain information about fraudulent and deceptive practices in the
provision of services related to student financial aid.''.
(d) Disclosures.--Section 485(e) is amended--
(1) in paragraph (2)--
(A) by striking ``his parents, his guidance'' and
inserting ``the student's parents, guidance''; and
(B) by adding at the end the following: ``If the
institution is a member of a national collegiate
athletic association that compiles graduation rate data
on behalf of the association's member institutions that
the Secretary determines is substantially comparable to
the information described in paragraph (1), the
distribution of the compilation of such data to all
secondary schools in the United States shall fulfill the
responsibility of the institution to provide information
to a prospective student athlete's guidance counselor
and coach.''; and
(2) by amending paragraph (9) to read as follows:
``(9) <<NOTE: Reports. Deadline.>> The reports required by this
subsection shall be due each July 1 and shall cover the 1-year period
ending August 31 of the preceding year.''.
(e) Disclosure of Campus Security Policy and Campus Crime
Statistics.--Section 485(f ) (20 U.S.C. 1092(f )) is amended--
[[Page 112 STAT. 1743]]
(1) in paragraph (1)--
(A) by amending subparagraph (F) to read as follows:
``(F) Statistics concerning the occurrence on campus, in or
on noncampus buildings or property, and on public property
during the most recent calendar year, and during the 2 preceding
calendar years for which data are available--
``(i) of the following criminal offenses reported to
campus security authorities or local police agencies:
``(I) murder;
``(II) sex offenses, forcible or nonforcible;
``(III) robbery;
``(IV) aggravated assault;
``(V) burglary;
``(VI) motor vehicle theft;
``(VII) manslaughter;
``(VIII) arson; and
``(IX) arrests or persons referred for campus
disciplinary action for liquor law violations,
drug-related violations, and weapons possession;
and
``(ii) of the crimes described in subclauses (I)
through (VIII) of clause (i), and other crimes involving
bodily injury to any person in which the victim is
intentionally selected because of the actual or
perceived race, gender, religion, sexual orientation,
ethnicity, or disability of the victim that are reported
to campus security authorities or local police agencies,
which data shall be collected and reported according to
category of prejudice.'';
(B) by striking subparagraph (H); and
(C) by redesignating subparagraph (I) as
subparagraph (H);
(2) in paragraph (4)--
(A) by striking ``Upon request of the Secretary,
each'' and inserting ``On an annual basis, each'';
(B) by striking ``paragraphs (1)(F) and (1)(H)'' and
inserting ``paragraph (1)(F)'';
(C) by striking ``and Labor'' and inserting ``and
the Workforce'';
(D) by striking ``1995'' and inserting ``2000'';
(E) by striking ``and'' at the end of subparagraph
(A);
(F) by redesignating subparagraph (B) as
subparagraph (C); and
(G) by inserting after subparagraph (A) the
following:
``(B) <<NOTE: Public information.>> make copies of the
statistics submitted to the Secretary available to the public;
and'';
(3) by amending paragraph (5)(A) to read as follows:
``(5)(A) In this subsection:
``(i) The term `campus' means--
``(I) any building or property owned or controlled
by an institution of higher education within the same
reasonably contiguous geographic area of the institution
and used by the institution in direct support of, or in
a manner related to, the institution's educational
purposes, including residence halls; and
``(II) property within the same reasonably
contiguous geographic area of the institution that is
owned by the institution but controlled by another
person, is used by
[[Page 112 STAT. 1744]]
students, and supports institutional purposes (such as a
food or other retail vendor).
``(ii) The term `noncampus building or property' means--
``(I) any building or property owned or controlled
by a student organization recognized by the institution;
and
``(II) any building or property (other than a branch
campus) owned or controlled by an institution of higher
education that is used in direct support of, or in
relation to, the institution's educational purposes, is
used by students, and is not within the same reasonably
contiguous geographic area of the institution.
``(iii) The term `public property' means all public property
that is within the same reasonably contiguous geographic area of
the institution, such as a sidewalk, a street, other
thoroughfare, or parking facility, and is adjacent to a facility
owned or controlled by the institution if the facility is used
by the institution in direct support of, or in a manner related
to the institution's educational purposes.'';
(4) in paragraph (6)--
(A) by striking ``paragraphs (1)(F) and (1)(H)'' and
inserting ``paragraph (1)(F)''; and
(B) by adding at the end the following: ``Such
statistics shall not identify victims of crimes or
persons accused of crimes.'';
(5) by redesignating paragraphs (4) through (7) as
paragraphs (5) through (8), respectively;
(6) by inserting after paragraph (3) the following:
``(4)(A) <<NOTE: Records.>> Each institution participating in any
program under this title that maintains a police or security department
of any kind shall make, keep, and maintain a daily log, written in a
form that can be easily understood, recording all crimes reported to
such police or security department, including--
``(i) the nature, date, time, and general location of each
crime; and
``(ii) the disposition of the complaint, if known.
``(B)(i) <<NOTE: Public information.>> All entries that are required
pursuant to this paragraph shall, except where disclosure of such
information is prohibited by law or such disclosure would jeopardize the
confidentiality of the victim, be open to public inspection within two
business days of the initial report being made to the department or a
campus security authority.
``(ii) <<NOTE: Deadline.>> If new information about an entry into a
log becomes available to a police or security department, then the new
information shall be recorded in the log not later than two business
days after the information becomes available to the police or security
department.
``(iii) If there is clear and convincing evidence that the release
of such information would jeopardize an ongoing criminal investigation
or the safety of an individual, cause a suspect to flee or evade
detection, or result in the destruction of evidence, such information
may be withheld until that damage is no longer likely to occur from the
release of such information.''; and
(7) by adding at the end the following:
``(9) The Secretary shall provide technical assistance in complying
with the provisions of this section to an institution of higher
education who requests such assistance.
[[Page 112 STAT. 1745]]
``(10) Nothing in this section shall be construed to require the
reporting or disclosure of privileged information.
``(11) <<NOTE: Reports.>> The Secretary shall report to the
appropriate committees of Congress each institution of higher education
that the Secretary determines is not in compliance with the reporting
requirements of this subsection.
``(12) For purposes of reporting the statistics with respect to
crimes described in paragraph (1)(F), an institution of higher education
shall distinguish, by means of separate categories, any criminal
offenses that occur--
``(A) on campus;
``(B) in or on a noncampus building or property;
``(C) on public property; and
``(D) in dormitories or other residential facilities for
students on campus.
``(13) Upon a determination pursuant to section 487(c)(3)(B) that an
institution of higher education has substantially misrepresented the
number, location, or nature of the crimes required to be reported under
this subsection, the Secretary shall impose a civil penalty upon the
institution in the same amount and pursuant to the same procedures as a
civil penalty is imposed under section 487(c)(3)(B).
``(14)(A) Nothing in this subsection may be construed to--
``(i) create a cause of action against any institution of
higher education or any employee of such an institution for any
civil liability; or
``(ii) establish any standard of care.
``(B) Notwithstanding any other provision of law, evidence regarding
compliance or noncompliance with this subsection shall not be admissible
as evidence in any proceeding of any court, agency, board, or other
entity, except with respect to an action to enforce this subsection.
``(15) <<NOTE: Short title.>> This subsection may be cited as the
`Jeanne Clery Disclosure of Campus Security Policy and Campus Crime
Statistics Act'.''.
(f ) Data Required.--Section 485(g) is amended-- <<NOTE: 20 USC
1092.>>
(1) in paragraph (1), by adding at the end the following:
``(I)(i) The total revenues, and the revenues from
football, men's basketball, women's basketball, all
other men's sports combined and all other women's sports
combined, derived by the institution from the
institution's intercollegiate athletics activities.
``(ii) For the purpose of clause (i), revenues from
intercollegiate athletics activities allocable to a
sport shall include (without limitation) gate receipts,
broadcast revenues, appearance guarantees and options,
concessions, and advertising, but revenues such as
student activities fees or alumni contributions not so
allocable shall be included in the calculation of total
revenues only.
``(J)(i) The total expenses, and the expenses
attributable to football, men's basketball, women's
basketball, all other men's sports combined, and all
other women's sports combined, made by the institution
for the institution's intercollegiate athletics
activities.
``(ii) For the purpose of clause (i), expenses for
intercollegiate athletics activities allocable to a
sport shall include (without limitation) grants-in-aid,
salaries, travel, equipment, and supplies, but expenses
such as general
[[Page 112 STAT. 1746]]
and administrative overhead not so allocable shall be
included in the calculation of total expenses only.'';
and
(2) by striking paragraph (5);
(3) by redesignating paragraph (4) as paragraph (5); and
(4) by inserting after paragraph (3) the following:
``(4) <<NOTE: Deadlines.>> Submission; report; information
availability.--(A) On an annual basis, each institution of
higher education described in paragraph (1) shall provide to the
Secretary, within 15 days of the date that the institution makes
available the report under paragraph (1), the information
contained in the report.
``(B) The Secretary shall prepare a report regarding the
information received under subparagraph (A) and submit such
report to the Committee on Education and the Workforce of the
House of Representatives and the Committee on Labor and Human
Resources of the Senate by April 1, 2000. The report shall--
``(i) summarize the information and identify trends
in the information;
``(ii) aggregate the information by divisions of the
National Collegiate Athletic Association; and
``(iii) contain information on each individual
institution of higher education.
``(C) <<NOTE: Public information.>> The Secretary shall
ensure that the reports described in subparagraph (A) and the
report to Congress described in subparagraph (B) are made
available to the public within a reasonable period of time.
``(D) <<NOTE: Deadline. Notification.>> Not later than 180
days after the date of enactment of the Higher Education
Amendments of 1998, the Secretary shall notify all secondary
schools in all States regarding the availability of the
information reported under subparagraph (B) and the information
made available under paragraph (1), and how such information may
be accessed.''.
SEC. 487. NATIONAL STUDENT LOAN DATA SYSTEM.
Section 485B(a) (20 U.S.C. 1092b(a)) is amended by inserting before
the period at the end of the third sentence the following: ``not later
than one year after the date of enactment of the Higher Education
Amendments of 1998''.
SEC. 488. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.
Section 486 (20 U.S.C. 1083) <<NOTE: 20 USC 1093.>> is amended to
read as follows:
``SEC. 486. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.
``(a) Purpose.--It is the purpose of this section--
``(1) to allow demonstration programs that are strictly
monitored by the Department of Education to test the quality and
viability of expanded distance education programs currently
restricted under this Act;
``(2) to provide for increased student access to higher
education through distance education programs; and
``(3) to help determine--
``(A) the most effective means of delivering quality
education via distance education course offerings;
``(B) the specific statutory and regulatory
requirements which should be altered to provide greater
access to high quality distance education programs; and
[[Page 112 STAT. 1747]]
``(C) the appropriate level of Federal assistance
for students enrolled in distance education programs.
``(b) Demonstration Programs Authorized.--
``(1) In general.--In accordance with the provisions of
subsection (d), the Secretary is authorized to select
institutions of higher education, systems of such institutions,
or consortia of such institutions for voluntary participation in
a Distance Education Demonstration Program that provides
participating institutions with the ability to offer distance
education programs that do not meet all or a portion of the
sections or regulations described in paragraph (2).
``(2) Waivers.--The Secretary is authorized to waive for any
institution of higher education, system of institutions of
higher education, or consortium participating in a Distance
Education Demonstration Program, the requirements of section
472(5) as the section relates to computer costs, sections 481(a)
and 481(b) as such sections relate to requirements for a minimum
number of weeks of instruction, sections 102(a)(3)(A),
102(a)(3)(B), and 484(l)(1), or one or more of the regulations
prescribed under this part or part F which inhibit the operation
of quality distance education programs.
``(3) Eligible applicants.--
``(A) Eligible institutions.--Except as provided in
subparagraphs (B), (C), and (D), only an institution of
higher education that is eligible to participate in
programs under this title shall be eligible to
participate in the demonstration program authorized
under this section.
``(B) Prohibition.--An institution of higher
education described in section 102(a)(1)(C) shall not be
eligible to participate in the demonstration program
authorized under this section.
``(C) Special rule.--Subject to subparagraph (B), an
institution of higher education that meets the
requirements of subsection (a) of section 102, other
than the requirement of paragraph (3)(A) or (3)(B) of
such subsection, and that provides a 2-year or 4-year
program of instruction for which the institution awards
an associate or baccalaureate degree, shall be eligible
to participate in the demonstration program authorized
under this section.
``(D) Requirement.--Notwithstanding any other
provision of this paragraph, Western Governors
University shall be considered eligible to participate
in the demonstration program authorized under this
section. In addition to the waivers described in
paragraph (2), the Secretary may waive the provisions of
title I and parts G and H of this title for such
university that the Secretary determines to be
appropriate because of the unique characteristics of
such university. In carrying out the preceding sentence,
the Secretary shall ensure that adequate program
integrity and accountability measures apply to such
university's participation in the demonstration program
authorized under this section.
``(c) Application.--
``(1) In general.--Each institution, system, or consortium
of institutions desiring to participate in a demonstration
program under this section shall submit an application to the
[[Page 112 STAT. 1748]]
Secretary at such time and in such manner as the Secretary may
require.
``(2) Contents.--Each application shall include--
``(A) a description of the institution, system, or
consortium's consultation with a recognized accrediting
agency or association with respect to quality assurances
for the distance education programs to be offered;
``(B) a description of the statutory and regulatory
requirements described in subsection (b)(2) or, if
applicable, subsection (b)(3)(D) for which a waiver is
sought and the reasons for which the waiver is sought;
``(C) a description of the distance education
programs to be offered;
``(D) a description of the students to whom distance
education programs will be offered;
``(E) an assurance that the institution, system, or
consortium will offer full cooperation with the ongoing
evaluations of the demonstration program provided for in
this section; and
``(F) such other information as the Secretary may
require.
``(d) Selection.--
``(1) In general.--For the first year of the demonstration
program authorized under this section, the Secretary is
authorized to select for participation in the program not more
than 15 institutions, systems of institutions, or consortia of
institutions. For the third year of the demonstration program
authorized under this section, the Secretary may select not more
than 35 institutions, systems, or consortia, in addition to the
institutions, systems, or consortia selected pursuant to the
preceding sentence, to participate in the demonstration program
if the Secretary determines that such expansion is warranted
based on the evaluations conducted in accordance with
subsections (f ) and (g).
``(2) Considerations.--In selecting institutions to
participate in the demonstration program in the first or
succeeding years of the program, the Secretary shall take into
account--
``(A) the number and quality of applications
received;
``(B) the Department's capacity to oversee and
monitor each institution's participation;
``(C) an institution's--
``(i) financial responsibility;
``(ii) administrative capability; and
``(iii) program or programs being offered via
distance education; and
``(D) ensuring the participation of a diverse group
of institutions with respect to size, mission, and
geographic distribution.
``(e) Notification.--The Secretary shall make available to the
public and to the Committee on Labor and Human Resources of the Senate
and the Committee on Education and the Workforce of the House of
Representatives a list of institutions, systems or consortia selected to
participate in the demonstration program authorized by this section.
Such notice shall include a listing of the specific statutory and
regulatory requirements being waived for each institution, system or
consortium and a description of the distance education courses to be
offered.
[[Page 112 STAT. 1749]]
``(f ) Evaluations and Reports.--
``(1) Evaluation.--The Secretary shall evaluate the
demonstration programs authorized under this section on an
annual basis. Such evaluations specifically shall review--
``(A) the extent to which the institution, system or
consortium has met the goals set forth in its
application to the Secretary, including the measures of
program quality assurance;
``(B) the number and types of students participating
in the programs offered, including the progress of
participating students toward recognized certificates or
degrees and the extent to which participation in such
programs increased;
``(C) issues related to student financial assistance
for distance education;
``(D) effective technologies for delivering distance
education course offerings; and
``(E) the extent to which statutory or regulatory
requirements not waived under the demonstration program
present difficulties for students or institutions.
``(2) Policy analysis.--The Secretary shall review current
policies and identify those policies that present impediments to
the development and use of distance education and other
nontraditional methods of expanding access to education.
``(3) Reports.--
``(A) <<NOTE: Deadline.>> In general.--Within 18
months of the initiation of the demonstration program,
the Secretary shall report to the Committee on Labor and
Human Resources of the Senate and the Committee on
Education and the Workforce of the House of
Representatives with respect to--
``(i) the evaluations of the demonstration
programs authorized under this section; and
``(ii) any proposed statutory changes designed
to enhance the use of distance education.
``(B) Additional reports.--The Secretary shall
provide additional reports to the Committee on Labor and
Human Resources of the Senate and the Committee on
Education and the Workforce of the House of
Representatives on an annual basis regarding--
``(i) the demonstration programs authorized
under this section; and
``(ii) the number and types of students
receiving assistance under this title for
instruction leading to a recognized certificate,
as provided for in section 484(l)(1), including
the progress of such students toward recognized
certificates and the degree to which participation
in such programs leading to such certificates
increased.
``(g) Oversight.--In conducting the demonstration program authorized
under this section, the Secretary shall, on a continuing basis--
``(1) assure compliance of institutions, systems or
consortia with the requirements of this title (other than the
sections and regulations that are waived under subsections
(b)(2) and (b)(3)(D));
``(2) provide technical assistance;
[[Page 112 STAT. 1750]]
``(3) monitor fluctuations in the student population
enrolled in the participating institutions, systems or
consortia; and
``(4) consult with appropriate accrediting agencies or
associations and appropriate State regulatory authorities.
``(h) Definition.--For the purpose of this section, the term
`distance education' means an educational process that is characterized
by the separation, in time or place, between instructor and student.
Such term may include courses offered principally through the use of--
``(1) television, audio, or computer transmission, such as
open broadcast, closed circuit, cable, microwave, or satellite
transmission;
``(2) audio or computer conferencing;
``(3) video cassettes or discs; or
``(4) correspondence.''.
SEC. 489. PROGRAM PARTICIPATION AGREEMENTS.
(a) Required Content.--Section 487(a) (20 U.S.C. 1094(a)) is
amended--
(1) in paragraph (3)--
(A) by striking subparagraph (B); and
(B) by redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C), respectively;
(2) in paragraph (4), by striking ``subsection (b)'' and
inserting ``subsection (c)'';
(3) in paragraph (9), by striking ``part B'' and inserting
``part B or D'';
(4) in paragraph (14)--
(A) in subparagraph (A), by striking ``part B'' and
inserting ``part B or D''; and
(B) in subparagraph (B), by striking ``part B'' and
inserting ``part B or D''; and
(C) by adding at the end the following:
``(C) This paragraph shall not apply in the case of an
institution in which (i) neither the parent nor the subordinate
institution has a cohort default rate in excess of 10 percent,
and (ii) the new owner of such parent or subordinate institution
does not, and has not, owned any other institution with a cohort
default rate in excess of 10 percent.'';
(5) in paragraph (15), by striking ``State review entities''
and inserting ``the State agencies'';
(6) by amending paragraph (18) to read as follows:
``(18) The institution will meet the requirements
established pursuant to section 485(g).''; and
(7) by amending paragraph (21) to read as follows:
``(21) The institution will meet the requirements
established by the Secretary and accrediting agencies or
associations, and will provide evidence to the Secretary that
the institution has the authority to operate within a State.''.
(b) Provision of Voter Registration Forms.--
(1) Program participation requirement.--Section 487(a) (20
U.S.C. 1094(a)) is amended by adding at the end the
following:
``(23)(A) The institution, if located in a State to which
section 4(b) of the National Voter Registration Act (42 U.S.C.
1973gg-2(b)) does not apply, will make a good faith effort to
distribute a mail voter registration form, requested and
[[Page 112 STAT. 1751]]
received from the State, to each student enrolled in a degree or
certificate program and physically in attendance at the
institution, and to make such forms widely available to students
at the institution.
``(B) The institution shall request the forms from the State
120 days prior to the deadline for registering to vote within
the State. If an institution has not received a sufficient
quantity of forms to fulfill this section from the State within
60 days prior to the deadline for registering to vote in the
State, the institution shall not be held liable for not meeting
the requirements of this section during that election year.
``(C) <<NOTE: Applicability.>> This paragraph shall apply to
elections as defined in section 301(1) of the Federal Election
Campaign Act of 1971 (2 U.S.C. 431(1)), and includes the
election for Governor or other chief executive within such
State).''.
(2) <<NOTE: 20 USC 1094 note.>> Regulation prohibited.--No
officer of the executive branch is authorized to instruct the
institution in the manner in which the amendment made by this
subsection is carried out.
(c) Audits; Financial Responsibility.--Section 487(c) <<NOTE: 20 USC
1094.>> is amended--
(1) in paragraph (1)(A)--
(A) in clause (i)--
(i) by striking ``clause (ii)'' and inserting
``clauses (ii) and (iii)'';
(ii) by striking ``State review entities
referred to in'' and inserting ``appropriate State
agency notifying the Secretary under''; and
(iii) by striking ``or'' after the semicolon;
(B) in clause (ii), by inserting ``or'' after the
semicolon; and
(C) by adding at the end the following:
``(iii) at the discretion of the Secretary, with regard to
an eligible institution (other than an eligible institution
described in section 102(a)(1)(C)) that has obtained less than
$200,000 in funds under this title during each of the 2 award
years that precede the audit period and submits a letter of
credit payable to the Secretary equal to not less than \1/2\ of
the annual potential liabilities of such institution as
determined by the Secretary, deeming an audit conducted every 3
years to satisfy the requirements of clause (i), except for the
award year immediately preceding renewal of the institution's
eligibility under section 498(g);'';
(2) in paragraph (4), by striking ``, after consultation
with each State review entity designated under subpart 1 of part
H,''; and
(3) in paragraph (5), by striking ``State review entities
designated'' and inserting ``State agencies notifying the
Secretary''.
SEC. 490. REGULATORY RELIEF AND IMPROVEMENT.
Section 487A (20 U.S.C. 1094a) is amended to read as follows:
``SEC. 487A. REGULATORY RELIEF AND IMPROVEMENT.
``(a) Quality Assurance Program.--
``(1) In general.--The Secretary is authorized to select
institutions for voluntary participation in a Quality Assurance
[[Page 112 STAT. 1752]]
Program that provides participating institutions with an
alternative management approach through which individual schools
develop and implement their own comprehensive systems, related
to processing and disbursement of student financial aid,
verification of student financial aid application data, and
entrance and exit interviews, thereby enhancing program
integrity within the student aid delivery system.
``(2) Criteria and consideration.--The Quality Assurance
Program authorized by this section shall be based on criteria
that include demonstrated institutional performance, as
determined by the Secretary, and shall take into consideration
current quality assurance goals, as determined by the Secretary.
The selection criteria shall ensure the participation of a
diverse group of institutions of higher education with respect
to size, mission, and geographical distribution.
``(3) Waiver.--The Secretary is authorized to waive for any
institution participating in the Quality Assurance Program any
regulations dealing with reporting or verification requirements
in this title that are addressed by the institution's
alternative management system, and may substitute such quality
assurance reporting as the Secretary determines necessary to
ensure accountability and compliance with the purposes of the
programs under this title. The Secretary shall not modify or
waive any statutory requirements pursuant to this paragraph.
``(4) Determination.--The Secretary is authorized to
determine--
``(A) when an institution that is unable to
administer the Quality Assurance Program shall be
removed from such program; and
``(B) when institutions desiring to cease
participation in such program will be required to
complete the current award year under the requirements
of the Quality Assurance Program.
``(5) Review and evaluation.--The Secretary shall review and
evaluate the Quality Assurance Program conducted by each
participating institution and, on the basis of that evaluation,
make recommendations regarding amendments to this Act that will
streamline the administration and enhance the integrity of
Federal student assistance programs. Such recommendations shall
be submitted to the Committee on Labor and Human Resources of
the Senate and the Committee on Education and the Workforce of
the House of Representatives.
``(b) Regulatory Improvement and Streamlining Experiments.--
``(1) In general.--The Secretary may continue any
experimental sites in existence on the date of enactment of the
Higher Education Amendments of 1998. <<NOTE: Termination
date.>> Any activities approved by the Secretary prior to such
date that are inconsistent with this section shall be
discontinued not later than June 30, 1999.
``(2) <<NOTE: Deadline.>> Report.--The Secretary shall
review and evaluate the experience of institutions participating
as experimental sites during the period of 1993 through 1998
under this section (as such section was in effect on the day
before the date of enactment of the Higher Education Amendments
of 1998), and shall submit a report based on this review and
evaluation to the Committee on Labor and Human Resources of the
Senate and the Committee on Education and the Workforce of the
[[Page 112 STAT. 1753]]
House of Representatives not later than 6 months after the
enactment of the Higher Education Amendments of 1998. Such
report shall include--
``(A) a list of participating institutions and the
specific statutory or regulatory waivers granted to each
institution;
``(B) the findings and conclusions reached regarding
each of the experiments conducted; and
``(C) recommendations for amendments to improve and
streamline this Act, based on the results of the
experiment.
``(3) Selection.--
``(A) In general.--Upon the submission of the report
required by paragraph (2), the Secretary is authorized
to select a limited number of additional institutions
for voluntary participation as experimental sites to
provide recommendations to the Secretary on the impact
and effectiveness of proposed regulations or new
management initiatives.
``(B) Consultation.--Prior to approving any
additional experimental sites, the Secretary shall
consult with the Committee on Labor and Human Resources
of the Senate and the Committee on Education and the
Workforce of the House of Representatives and shall
provide to such Committees--
``(i) <<NOTE: Records.>> a list of
institutions proposed for participation in the
experiment and the specific statutory or
regulatory waivers proposed to be granted to each
institution;
``(ii) a statement of the objectives to be
achieved through the experiment; and
``(iii) an identification of the period of
time over which the experiment is to be conducted.
``(C) Waivers.--The Secretary is authorized to
waive, for any institution participating as an
experimental site under subparagraph (A), any
requirements in this title, or regulations prescribed
under this title, that will bias the results of the
experiment, except that the Secretary shall not waive
any provisions with respect to award rules, grant and
loan maximum award amounts, and need analysis
requirements.
``(c) Definitions.--For purposes of this section, the term `current
award year' means the award year during which the participating
institution indicates the institution's intention to cease
participation.''.
SEC. 490A. GARNISHMENT REQUIREMENTS.
Section 488A (20 U.S.C. 1095a) is amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
``(d) No Attachment of Student Assistance.--Except as authorized in
this section, notwithstanding any other provision of Federal or State
law, no grant, loan, or work assistance awarded under this title, or
property traceable to such assistance, shall be subject to garnishment
or attachment in order to satisfy any debt owed by the student awarded
such assistance, other than a debt owed to the Secretary and arising
under this title.''.
[[Page 112 STAT. 1754]]
SEC. 490B. ADMINISTRATIVE SUBPOENA AUTHORITY.
Part G of title IV is further amended by inserting immediately after
section 490 (20 U.S.C. 1097) the following:
``SEC. 490A. ADMINISTRATIVE SUBPOENAS. <<NOTE: 20 USC 1097a.>>
``(a) Authority.--To assist the Secretary in the conduct of
investigations of possible violations of the provisions of this title,
the Secretary is authorized to require by subpoena the production of
information, documents, reports, answers, records, accounts, papers, and
other documentary evidence pertaining to participation in any program
under this title. The production of any such records may be required
from any place in a State.
``(b) Enforcement.--In case of contumacy by, or refusal to obey a
subpoena issued to, any person, the Secretary may request the Attorney
General to invoke the aid of any court of the United States where such
person resides or transacts business for a court order for the
enforcement of this section.''.
SEC. 490C. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.
Section 491 (20 U.S.C. 1098) is amended--
(1) in subsection (b)--
(A) in the second sentence, by striking ``and
expenditures'' and inserting ``, expenditures and
staffing levels''; and
(B) by inserting after the third sentence the
following: ``Reports, publications, and other documents
of the Advisory Committee, including such reports,
publications, and documents in electronic form, shall
not be subject to review by the Secretary.'';
(2) in subsection (e)--
(A) by redesignating paragraphs (3), (4), and (5),
as paragraphs (4), (5), and (6), respectively; and
(B) by inserting after paragraph (2) the following:
``(3) No officers or full-time employees of the Federal Government
shall serve as members of the Advisory Committee.'';
(3) in subsection (g), by striking ``(1) Members'' and all
that follows through ``of the United States may each'' and
inserting ``Members of the Advisory Committee may each'';
(4) in subsection (h)(1)--
(A) by inserting ``determined'' after ``as may be'';
and
(B) by adding at the end the following: ``The
Advisory Committee may appoint not more than 1 full-time
equivalent, nonpermanent, consultant without regard to
the provisions of title 5, United States Code. The
Advisory Committee shall not be required by the
Secretary to reduce personnel to meet agency personnel
reduction goals.'';
(5) in subsection (i), by striking ``$750,000'' and
inserting ``$800,000'';
(6) by amending subsection ( j) to read as follows:
``( j) Special Analyses and Activities.--The Advisory
Committee shall--
``(1) <<NOTE: Reports.>> monitor and evaluate the
modernization of student financial aid systems and delivery
processes, including the implementation of a performance-based
organization within the
[[Page 112 STAT. 1755]]
Department, and report to Congress regarding such modernization
on not less than an annual basis, including recommendations for
improvement;
``(2) assess the adequacy of current methods for
disseminating information about programs under this title and
recommend improvements, as appropriate, regarding early needs
assessment and information for first-year secondary school
students;
``(3) assess and make recommendations concerning the
feasibility and degree of use of appropriate technology in the
application for, and delivery and management of, financial
assistance under this title, as well as policies that promote
use of such technology to reduce cost and enhance service and
program integrity, including electronic application and
reapplication, just-in-time delivery of funds, reporting of
disbursements and reconciliation;
``(4) assess the implications of distance education on
student eligibility and other requirements for financial
assistance under this title, and make recommendations that will
enhance access to postsecondary education through distance
education while maintaining access, through on-campus
instruction at eligible institutions, and program integrity; and
``(5) make recommendations to the Secretary regarding
redundant or outdated provisions of and regulations under this
Act, consistent with the Secretary's requirements under section
498B.'';
(7) in subsection (k), by striking ``1998'' and inserting
``2004''; and
(8) by repealing subsection (l).
SEC. 490D. MEETINGS AND NEGOTIATED RULEMAKING.
(a) Meetings.--Section 492(a) (20 U.S.C. 1098a) is amended--
(1) in paragraph (1)--
(A) by striking ``convene regional meetings to'';
(B) by striking ``parts B, G, and H of this title,''
and inserting ``this title;''; and
(C) by striking ``Such meetings shall include'' and
inserting ``The Secretary shall obtain the advice of and
recommendations from''; and
(2) in paragraph (2)--
(A) by striking ``During such meetings the'' and
inserting ``The'';
(B) by striking ``parts B, G, and H'' and inserting
``this title'';
(C) by striking ``1992'' and inserting ``1998
through such mechanisms as regional meetings and
electronic exchanges of information''; and
(D) by striking ``at such meetings'' and inserting
``through such mechanisms''.
(b) Draft Regulations.--Section 492(b) is amended--
(1) by striking ``After'' and inserting the following:
``(1) In general.--After'';
(2) in paragraph (1) (as redesignated by paragraph (1))--
(A) by striking ``holding regional meetings'' and
inserting ``obtaining the advice and recommendations
described in subsection (a)(1)'';
(B) by striking ``parts B, G, and H of this title''
and inserting ``this title'';
[[Page 112 STAT. 1756]]
(C) by striking ``1992'' and inserting ``1998'';
(D) by striking ``The Secretary shall follow the
guidance provided in sections 305.82-4 and 305.85-5 of
chapter 1, Code of Federal Regulations, and any
successor recommendation, regulation, or law.'';
(E) by striking ``participating in the regional
meetings'';
(F) by striking ``240-day'' and inserting ``360-
day''; and
(G) by striking ``section 431(g)'' and inserting
``section 437(e)''; and
(3) by adding at the end the following:
``(2) <<NOTE: Federal Register, publication.>> Expansion of
negotiated rulemaking.--All regulations pertaining to this title
that are promulgated after the date of enactment of this
paragraph shall be subject to a negotiated rulemaking (including
the selection of the issues to be negotiated), unless the
Secretary determines that applying such a requirement with
respect to given regulations is impracticable, unnecessary, or
contrary to the public interest (within the meaning of section
553(b)(3)(B) of title 5, United States Code), and publishes the
basis for such determination in the Federal Register at the same
time as the proposed regulations in question are first
published. All published proposed regulations shall conform to
agreements resulting from such negotiated rulemaking unless the
Secretary reopens the negotiated rulemaking process or provides
a written explanation to the participants in that process why
the Secretary has decided to depart from such agreements. Such
negotiated rulemaking shall be conducted in accordance with the
provisions of paragraph (1), and the Secretary shall ensure that
a clear and reliable record of agreements reached during the
negotiations process is maintained.''.
SEC. 490E. YEAR 2000 REQUIREMENTS AT THE DEPARTMENT OF
EDUCATION.
Part G of title IV (20 U.S.C. 1088 et seq.) is amended by adding at
the end the following:
``SEC. 493A. YEAR 2000 REQUIREMENTS AT THE DEPARTMENT. <<NOTE: 20 USC
1098c.>>
``(a) Preparations for Year 2000.--In order to ensure that the
processing, delivery, and administration of grant, loan, and work
assistance provided under this title is not interrupted due to
operational problems related to the inability of computer systems to
indicate accurately dates after December 31, 1999, the Secretary of
Education shall--
``(1) take such actions as are necessary to ensure that all
internal and external systems, hardware, and data exchange
infrastructure administered by the Department that are necessary
for the processing, delivery, and administration of the grant,
loan, and work assistance are Year 2000 compliant by March 31,
1999, such that there will be no business interruption after
December 31, 1999;
``(2) ensure that the Robert T. Stafford Federal Student
Loan Program and the William D. Ford Federal Direct Loan Program
are equal in level of priority with respect to addressing, and
that resources are managed to equally provide for successful
resolution of, the Year 2000 computer problem in both programs
by December 31, 1999;
``(3) <<NOTE: Reports. Deadline.>> work with the
Department's various data exchange partners under this title to
fully test all data exchange routes
[[Page 112 STAT. 1757]]
for Year 2000 compliance via end-to-end testing, and submit a
report describing the parameters and results of such tests to
the Comptroller General not later than March 31, 1999;
``(4) <<NOTE: Publication. Public information. Deadline.>>
ensure that the Inspector General of the Department (or an
external, independent entity selected by the Inspector General)
performs and publishes a risk assessment of the systems and
hardware under the Department's management, that has been
reviewed by an independent entity, and make such assessment
publicly available not later than 60 days after the date of
enactment of the Higher Education Amendments of 1998;
``(5) <<NOTE: Deadline. Reports.>> not later than June 30,
1999, ensure that the Inspector General (or an external,
independent entity selected by the Inspector General) conducts a
review of the Department's Year 2000 compliance for the
processing, delivery, and administration of grant, loan, and
work assistance, and submits a report reflecting the results of
that review to the Chairperson of the Committee on Labor and
Human Resources of the Senate and the Chairperson of the
Committee on Education and the Workforce of the House of
Representatives;
``(6) develop a contingency plan to ensure the programs
under this title will continue to run uninterrupted in the event
of widespread disruptions in the flow of accurate computerized
data, which contingency plan shall include a prioritization of
mission critical systems and strategies to allow data partners
to transfer data through alternate means; and
``(7) alert Congress at the earliest possible time if
mission critical deadlines will not be met.
``(b) Postponement Authority for the Year 2000.--
``(1) Purpose.--It is the purpose of this subsection to
provide the Secretary with the flexibility necessary to--
``(A) ensure that the resources and capabilities of
institutions, lenders, and guaranty agencies are not
overburdened by the combination of student aid
processing and delivery requirements added or modified
by the amendments made by the Higher Education
Amendments of 1998 and by the changes required to ensure
that the systems of the institutions, lenders and
guaranty agencies are Year 2000 compliant; and
``(B) avoid the disruption of grant, loan, or work
assistance funds awarded to students because of Year
2000 compliance problems at a substantial number of
institutions, lenders, and guaranty agencies.
``(2) Authority to postpone.--The Secretary may postpone,
for a period of time described in paragraph (3), the
implementation of any requirements under part B, D, E, or G that
are added or modified by the amendments made by the Higher
Education Amendments of 1998 related to the processing or
delivery of grant, loan, and work assistance (which shall not
include the determination of need for such assistance) provided
under this title, if the Secretary--
``(A) determines that--
``(i) implementation of such requirements
would require extensive changes to the existing
systems of institutions, lenders, or guaranty
agencies; and
``(ii) postponement is necessary to avoid
jeopardizing the ability of a substantial number
of institutions,
[[Page 112 STAT. 1758]]
lenders, or guaranty agencies to ensure that all
of the systems of the institutions, lenders, or
guaranty agencies related to the processing or
delivery of such assistance function successfully
after December 31, 1999; and
``(B) <<NOTE: Federal Register,
publication. Records. Notification.>> promptly publishes
in the Federal Register a list of, and notifies Congress
of, any provisions, the implementation of which the
Secretary intends to postpone, with the reasons for such
postponement.
``(3) Exceptions to authority.--The Secretary may not
postpone the implementation of one or more provisions described
in this subsection longer than the earlier of--
``(A) the period of time that the Secretary
determines necessary to ensure that the processing and
delivery systems of the institutions, lenders, and
guaranty agencies referred to in paragraph (1)(A)(ii)
are capable of functioning successfully after December
31, 1999; or
``(B) one award year after the effective date
applicable to such provision under the Higher Education
Amendments of 1998.''.
SEC. 490F. PROCEDURES FOR CANCELLATIONS AND DEFERMENTS FOR ELIGIBLE
DISABLED VETERANS.
Part G of title IV (20 U.S.C. 1088 et seq.) is amended by adding
after section 493A (as added by section 490E) the following:
``SEC. 493B. <<NOTE: 20 USC 1098d.>> PROCEDURES FOR CANCELLATIONS AND
DEFERMENTS FOR ELIGIBLE DISABLED VETERANS.
``The Secretary, in consultation with the Secretary of Veterans
Affairs, shall develop and implement a procedure to permit Department of
Veterans Affairs physicians to provide the certifications and affidavits
needed to enable disabled veterans enrolled in the Department of
Veterans Affairs health care system to document such veterans'
eligibility for deferments or cancellations of student loans made,
insured, or guaranteed under this
title. <<NOTE: Deadline. Reports.>> Not later than 6 months after the
date of enactment of the Higher Education Amendments of 1998, the
Secretary and the Secretary of Veterans Affairs jointly shall report to
Congress on the progress made in developing and implementing the
procedure.''.
PART H--PROGRAM INTEGRITY
SEC. 491. STATE ROLE AND RESPONSIBILITIES.
Part H of title IV (20 U.S.C. 1099a et seq.) is amended by--
(1) striking the heading of such part and inserting the
following:
``PART H--PROGRAM INTEGRITY'';
and
(2) by amending subpart 1 (20 U.S.C. 1099a et seq.) to read
as follows:
[[Page 112 STAT. 1759]]
``Subpart 1--State Role
``SEC. 495. STATE RESPONSIBILITIES. <<NOTE: 20 USC 1099a.>>
``(a) <<NOTE: Notification.>> State Responsibilities.--As part of
the integrity program authorized by this part, each State, through one
State agency or several State agencies selected by the State, shall--
``(1) furnish the Secretary, upon request, information with
respect to the process for licensing or other authorization for
institutions of higher education to operate within the State;
``(2) notify the Secretary promptly whenever the State
revokes a license or other authority to operate an institution
of higher education; and
``(3) notify the Secretary promptly whenever the State has
credible evidence that an institution of higher education within
the State--
``(A) has committed fraud in the administration of
the student assistance programs authorized by this
title; or
``(B) has substantially violated a provision of this
title.
``(b) Institutional Responsibility.--Each institution of higher
education shall provide evidence to the Secretary that the institution
has authority to operate within a State at the time the institution is
certified under subpart 3.''.
SEC. 492. ACCREDITING AGENCY RECOGNITION.
(a) Recognition.--
(1) Subpart heading.--The heading of subpart 2 of part H is
amended by striking ``Approval'' and inserting ``Recognition''.
(2) Section 496 heading.--The heading of section
496 <<NOTE: 20 USC 1099b.>> is amended by striking ``approval''
and inserting ``recognition''.
(b) Standards.--Section 496(a) (20 U.S.C. 1099b(a)) is
amended--
(1) in the subsection heading, by striking ``Standards'' and
inserting ``Criteria'';
(2) in the matter preceding paragraph (1), by striking
``standards'' each place the term appears and inserting
``criteria'';
(3) in paragraph (4)--
(A) by striking ``at the institution'' and inserting
``offered by the institution''; and
(B) by inserting ``, including distance education
courses or programs,'' after ``higher education''; and
(4) in paragraph (5)--
(A) by striking ``of accreditation'' and inserting
``for accreditation'';
(B) by striking subparagraphs (H), (I), and (J);
(C) by redesignating subparagraphs (A) through (G)
as subparagraphs (B) through (H), respectively;
(D) by redesignating subparagraphs (K) and (L) as
subparagraphs (I) and (J), respectively;
(E) by inserting before subparagraph (B) the
following:
``(A) success with respect to student achievement in
relation to the institution's mission, including, as
appropriate, consideration of course completion, State
licensing examinations, and job placement rates;'';
[[Page 112 STAT. 1760]]
(F) in subparagraph (H) (as redesignated by
subparagraph (C)), by striking ``program length and
tuition and fees in relation to the subject matters
taught'' and inserting ``measures of program length'';
(G) in subparagraph (J) (as redesignated by
subparagraph (D))--
(i) by inserting ``record of'' before
``compliance'';
(ii) by striking ``Act, including any'' and
inserting ``Act based on the most recent student
loan default rate data provided by the Secretary,
the''; and
(iii) by inserting ``any'' after ``reviews,
and''; and
(H) in the matter following subparagraph (J) (as
redesignated by subparagraph (D)), by striking ``(G),
(H), (I), (J), and (L)'' and inserting ``(A), (H), and
(J)'';
(5) in paragraph (7), by striking ``State postsecondary
review entity'' and inserting ``State licensing or authorizing
agency''; and
(6) in paragraph (8), by striking ``State postsecondary''
and everything that follows through ``is located'' and inserting
``State licensing or authorizing agency''.
(c) Operating Procedures.--Section 496(c) <<NOTE: 20 USC 1099b.>> is
amended--
(1) by striking ``approved by the Secretary'' and inserting
``recognized by the Secretary''; and
(2) in paragraph (1), by striking ``(at least'' and
everything that follows through ``unannounced),'' and inserting
``(which may include unannounced site visits)''.
(d) Conforming Amendments.--Section 496 is further
amended--
(1) in subsection (d)--
(A) by striking ``Approval'' in the heading of such
subsection and inserting ``Recognition''; and
(B) by striking ``approved'' and inserting
``recognized'';
(2) in subsection (f ), by striking ``approved'' and
inserting ``recognized'';
(3) in subsection (g)--
(A) in the heading of such subsection, by striking
``Standards'' and inserting ``Criteria''; and
(B) by striking ``standards'' the first place such
term appears and inserting ``criteria'';
(4) in subsection (k)--
(A) in the matter preceding paragraph (1), by
striking ``section 481'' and inserting ``section 102'';
and
(B) in paragraph (2), by striking ``standards'' and
inserting ``criteria'';
(5) in subsection (l), by striking everything preceding
paragraph (2) and inserting the following:
``(l) Limitation, Suspension, or Termination of Recognition.--(1) If
the Secretary determines that an accrediting agency or association has
failed to apply effectively the criteria in this section, or is
otherwise not in compliance with the requirements of this section, the
Secretary shall--
``(A) <<NOTE: Notice.>> after notice and opportunity for a
hearing, limit, suspend, or terminate the recognition of the
agency or association; or
``(B) require the agency or association to take appropriate
action to bring the agency or association into compliance with
[[Page 112 STAT. 1761]]
such requirements within a timeframe specified by the Secretary,
except that--
``(i) such timeframe shall not exceed 12 months
unless the Secretary extends such period for good cause;
and
``(ii) <<NOTE: Notice.>> if the agency or
association fails to bring the agency or association
into compliance within such timeframe, the Secretary
shall, after notice and opportunity for a hearing,
limit, suspend, or terminate the recognition of the
agency or association.''; and
(6) in subsection (n)--
(A) by striking ``standards'' each place the term
appears and inserting ``criteria'';
(B) in paragraph (3)--
(i) by striking ``approval process'' and
inserting ``recognition process'';
(ii) by striking ``approval or disapproval''
and inserting ``recognition or denial of
recognition''; and
(iii) by adding at the end the following:
``When the Secretary decides to recognize an
accrediting agency or association, the Secretary
shall determine the agency or association's scope
of recognition. If the agency or association
reviews institutions offering distance education
courses or programs and the Secretary determines
that the agency or association meets the
requirements of this section, then the agency
shall be recognized and the scope of recognition
shall include accreditation of institutions
offering distance education courses or
programs.''; and
(C) by striking paragraph (4) and inserting the
following:
``(4) <<NOTE: Records. Public information.>> The Secretary shall
maintain sufficient documentation to support the conclusions reached in
the recognition process, and, if the Secretary does not recognize any
accreditation agency or association, shall make publicly available the
reason for denying recognition, including reference to the specific
criteria under this section which have not been fulfilled.''.
SEC. 493. ELIGIBILITY AND CERTIFICATION PROCEDURES.
(a) Single Application Form.--Section 498(b) (20 U.S.C. 1099c(b)) is
amended--
(1) in paragraph (1), by striking ``and capability'' and
inserting ``financial responsibility, and administrative
capability'';
(2) by amending paragraph (3) to read as follows:
``(3) requires--
``(A) a description of the third party servicers of
an institution of higher education; and
``(B) the institution to maintain a copy of any
contract with a financial aid service provider or loan
servicer, and provide a copy of any such contract to the
Secretary upon request;'';
(3) in paragraph (4), by striking the period and inserting
``; and''; and
(4) by adding at the end the following:
``(5) provides, at the option of the institution, for
participation in one or more of the programs under part B or
D.''.
(b) Financial Responsibility Standards.--Section 498(c) is amended--
[[Page 112 STAT. 1762]]
(1) in paragraph (2)--
(A) in the first sentence, by striking ``with
respect to operating losses, net worth, asset to
liabilities ratios, or operating fund deficits'' and
inserting ``regarding ratios that demonstrate financial
responsibility,''; and
(B) in the second sentence, by inserting ``,
public,'' after ``for profit'';
(2) in paragraph (3)(A), by inserting ``that the Secretary
determines are reasonable'' after ``guarantees''; and
(3) in paragraph (4)--
(A) in the matter preceding subparagraph (A), by
striking ``ratio of current assets to current
liabilities'' and inserting ``criteria''; and
(B) in subparagraph (C), by striking ``current
operating ratio requirement'' and inserting
``criteria''.
(c) Financial Guarantees From Owners.--
(1) Amendment.--Section 498(e) <<NOTE: 20 USC 1099c.>> is
amended by adding at the end the following:
``(6) Notwithstanding any other provision of law, any individual
who--
``(A) the Secretary determines, in accordance with paragraph
(2), exercises substantial control over an institution
participating in, or seeking to participate in, a program under
this title;
``(B) is required to pay, on behalf of a student or
borrower, a refund of unearned institutional charges to a
lender, or to the Secretary; and
``(C) willfully fails to pay such refund or willfully
attempts in any manner to evade payment of such refund,
shall, in addition to other penalties provided by law, be liable to the
Secretary for the amount of the refund not paid, to the same extent with
respect to such refund that such an individual would be liable as a
responsible person for a penalty under section 6672(a) of Internal
Revenue Code of 1986 with respect to the nonpayment of taxes.''.
(2) <<NOTE: 20 USC 1099c note.>> Effective date.--The
amendment made by paragraph (1) shall be effective with respect
to any unpaid refunds that were first required to be paid to a
lender or to the Secretary on or after 90 days after the date of
enactment of this Act.
(d) Applications and Site Visits.--Section 498(f ) is
amended--
(1) in the subsection heading, by striking ``; Site Visits
and Fees'' and inserting ``and Site Visits'';
(2) in the second sentence, by striking ``shall'' and
inserting ``may'';
(3) in the third sentence--
(A) by striking ``may establish'' and insert ``shall
establish''; and
(B) by striking ``may coordinate'' and inserting
``shall, to the extent practicable, coordinate''; and
(4) by striking the fourth sentence.
(e) Time Limitations on, and Renewal of, Eligibility.--Subsection
(g) of section 498 is amended to read as follows:
``(g) Time Limitations on, and Renewal of, Eligibility.--
``(1) General rule.--After the expiration of the
certification of any institution under the schedule prescribed
under this section (as this section was in effect prior to the
enactment
[[Page 112 STAT. 1763]]
of the Higher Education Act Amendments of 1998), or upon request
for initial certification from an institution not previously
certified, the Secretary may certify the eligibility for the
purposes of any program authorized under this title of each such
institution for a period not to exceed 6 years.
``(2) <<NOTE: Deadline.>> Notification.--The Secretary shall
notify each institution of higher education not later than 6
months prior to the date of the expiration of the institution's
certification.
``(3) <<NOTE: Regulations.>> Institutions outside the united
states.--The
Secretary shall promulgate regulations regarding the
recertification requirements applicable to an institution of
higher education outside of the United States that meets the
requirements of section 102(a)(1)(C) and received less than
$500,000 in funds under part B for the most recent year for
which data are available.''.
(f ) Provisional Certification.--Section 498(h)(2) is <<NOTE: 20 USC
1099c.>>
amended--
(1) by striking ``the approval'' and inserting ``the
recognition''; and
(2) by striking ``of approval'' and inserting ``of
recognition''.
(g) Change in Ownership.--Section 498(i) is amended by
adding at the end the following:
``(4)(A) The Secretary may provisionally certify an institution
seeking approval of a change in ownership based on the preliminary
review by the Secretary of a materially complete application that is
received by the Secretary within 10 business days of the transaction for
which the approval is sought.
``(B) <<NOTE: Termination date.>> A provisional certification under
this paragraph shall expire not later than the end of the month
following the month in which the transaction occurred, except that if
the Secretary has not issued a decision on the application for the
change of ownership within that period, the Secretary may continue such
provisional certification on a month-to-month basis until such decision
has been issued.''.
(h) Treatment of Branches.--The second sentence of section 498(
j)(1) is amended by inserting ``after the branch is certified by the
Secretary as a branch campus participating in a program under this
title,'' after ``2 years''.
SEC. 494. PROGRAM REVIEW AND DATA.
Section 498A (20 U.S.C. 1099c-1) is amended--
(1) in subsection (a)--
(A) in paragraph (2)--
(i) in the matter preceding subparagraph (A),
by striking ``may'' and inserting ``shall'';
(ii) by amending subparagraph (C) to read as
follows:
``(C) institutions with a significant fluctuation in
Federal Stafford Loan volume, Federal Direct Stafford/
Ford Loan volume, or Federal Pell Grant award volume, or
any combination thereof, in the year for which the
determination is made, compared to the year prior to
such year, that are not accounted for by changes in the
Federal Stafford Loan program, the Federal Direct
Stafford/Ford Loan program, or the Pell Grant program,
or any combination thereof;'';
[[Page 112 STAT. 1764]]
(iii) by amending subparagraph (D) to read as
follows:
``(D) institutions reported to have deficiencies or
financial aid problems by the State licensing or
authorizing agency, or by the appropriate accrediting
agency or association;'';
(iv) in subparagraph (E), by inserting ``and''
after the semicolon; and
(v) by striking subparagraphs (F) and (G) and
inserting the following:
``(F) such other institutions that the Secretary
determines may pose a significant risk of failure to
comply with the administrative capability or financial
responsibility provisions of this title; and''; and
(B) in paragraph (3)(A), by inserting ``relevant''
after ``all''; and
(2) by amending subsection (b) to read as follows:
``(b) Special Administrative Rules.--In carrying out paragraphs (1)
and (2) of subsection (a) and any other relevant provisions of this
title, the Secretary shall--
``(1) establish guidelines designed to ensure uniformity of
practice in the conduct of program reviews of institutions of
higher education;
``(2) make available to each institution participating in
programs authorized under this title complete copies of all
review guidelines and procedures used in program reviews;
``(3) permit the institution to correct or cure an
administrative, accounting, or recordkeeping error if the error
is not part of a pattern of error and there is no evidence of
fraud or misconduct related to the error;
``(4) base any civil penalty assessed against an institution
of higher education resulting from a program review or audit on
the gravity of the violation, failure, or misrepresentation; and
``(5) inform the appropriate State and accrediting agency or
association whenever the Secretary takes action against an
institution of higher education under this section, section 498,
or section 432.''.
SEC. 495. REVIEW OF REGULATIONS.
Part H of title IV is further amended by adding at the end the
following:
``SEC. 498B. REVIEW OF REGULATIONS. <<NOTE: 20 USC 1099c-2.>>
``(a) Review Required.--The Secretary shall review each regulation
issued under this title that is in effect at the time of the review and
applies to the operations or activities of any participant in the
programs assisted under this title. The review shall include a
determination of whether the regulation is duplicative, or is no longer
necessary. The review may involve one or more of the following:
``(1) An assurance of the uniformity of interpretation and
application of such regulations.
``(2) The establishment of a process for ensuring that
eligibility and compliance issues, such as institutional audit,
program review, and recertification, are considered
simultaneously.
``(3) A determination of the extent to which unnecessary
costs are imposed on institutions of higher education as a
[[Page 112 STAT. 1765]]
consequence of the applicability to the facilities and equipment
of such institutions of regulations prescribed for purposes of
regulating industrial and commercial enterprises.
``(b) Regulatory and Statutory Relief for Small Volume
Institutions.--The Secretary shall review and evaluate ways in which
regulations under and provisions of this Act affecting institution of
higher education (other than institutions described in section
102(a)(1)(C)), that have received in each of the two most recent award
years prior to the date of the enactment of the Higher Education
Amendments of 1998 less than $200,000 in funds through this title, may
be improved, streamlined, or eliminated.
``(c) Consultation.--In carrying out subsections (a) and (b), the
Secretary shall consult with relevant representatives of institutions
participating in the programs authorized by this title.
``(d) Reports to Congress.-- <<NOTE: Deadlines.>>
``(1) In general.--The Secretary shall submit, not later
than 1 year after the date of the enactment of the Higher
Education Amendments of 1998, a report to the Committee on Labor
and Human Resources of the Senate and the Committee on Education
and the Workforce of the House of Representatives detailing the
Secretary's findings and recommendations based on the reviews
conducted under subsections (a) and (b), including a timetable
for implementation of any recommended changes in regulations and
a description of any recommendations for legislative changes.
``(2) Additional reports.--Not later than January 1, 2003,
the Secretary shall submit a report to the Committee on Labor
and Human Resources of the Senate and the Committee on Education
and the Workforce of the House of Representatives detailing the
Secretary's findings and recommendations based on the review
conducted under subsection (a), including a timetable for
implementation of any recommended changes in regulations and a
description of any recommendations for legislative changes.''.
TITLE V--DEVELOPING INSTITUTIONS
SEC. 501. ESTABLISHMENT OF NEW TITLE V.
Title V (20 U.S.C. 1101 et seq.) is amended to read as follows:
``TITLE V--DEVELOPING INSTITUTIONS
``PART A--HISPANIC-SERVING INSTITUTIONS
``SEC. 501. FINDINGS; PURPOSE; AND PROGRAM AUTHORITY. <<NOTE: 20 USC
1101.>>
``(a) Findings.--Congress makes the following findings:
``(1) Hispanic Americans are at high risk of not enrolling
or graduating from institutions of higher education.
``(2) Disparities between the enrollment of non-Hispanic
white students and Hispanic students in postsecondary education
are increasing. Between 1973 and 1994, enrollment of white
secondary school graduates in 4-year institutions of higher
education increased at a rate two times higher than that of
Hispanic secondary school graduates.
[[Page 112 STAT. 1766]]
``(3) Despite significant limitations in resources,
Hispanic-serving institutions provide a significant proportion
of postsecondary opportunities for Hispanic students.
``(4) Relative to other institutions of higher education,
Hispanic-serving institutions are underfunded. Such institutions
receive significantly less in State and local funding, per full-
time equivalent student, than other institutions of higher
education.
``(5) Hispanic-serving institutions are succeeding in
educating Hispanic students despite significant resource
problems that--
``(A) limit the ability of such institutions to
expand and improve the academic programs of such
institutions; and
``(B) could imperil the financial and administrative
stability of such institutions.
``(6) There is a national interest in remedying the
disparities described in paragraphs (2) and (4) and ensuring
that Hispanic students have an equal opportunity to pursue
postsecondary opportunities.
``(b) Purpose.--The purpose of this title is to--
``(1) expand educational opportunities for, and improve the
academic attainment of, Hispanic students; and
``(2) expand and enhance the academic offerings, program
quality, and institutional stability of colleges and
universities that are educating the majority of Hispanic college
students and helping large numbers of Hispanic students and
other low-income individuals complete postsecondary degrees.
``(c) Program Authority.--The Secretary shall provide grants and
related assistance to Hispanic-serving institutions to enable such
institutions to improve and expand their capacity to serve Hispanic
students and other low-income individuals.
``SEC. 502. DEFINITIONS; ELIGIBILITY. <<NOTE: 20 USC 1101a.>>
``(a) Definitions.--For the purpose of this title:
``(1) Educational and general expenditures.--The term
`educational and general expenditures' means the total amount
expended by an institution for instruction, research, public
service, academic support (including library expenditures),
student services, institutional support, scholarships and
fellowships, operation and maintenance expenditures for the
physical plant, and any mandatory transfers that the institution
is required to pay by law.
``(2) Eligible institution.--The term `eligible institution'
means--
``(A) an institution of higher education--
``(i) that has an enrollment of needy students
as required by subsection (b);
``(ii) except as provided in section 512(b),
the average educational and general expenditures
of which are low, per full-time equivalent
undergraduate student, in comparison with the
average educational and general expenditures per
full-time equivalent undergraduate student of
institutions that offer similar instruction;
``(iii) that is--
[[Page 112 STAT. 1767]]
``(I) legally authorized to provide,
and provides within the State, an
educational program for which the
institution awards a bachelor's degree;
or
``(II) a junior or community
college;
``(iv) that is accredited by a nationally
recognized accrediting agency or association
determined by the Secretary to be reliable
authority as to the quality of training offered or
that is, according to such an agency or
association, making reasonable progress toward
accreditation;
``(v) that meets such other requirements as
the Secretary may prescribe; and
``(vi) that is located in a State; and
``(B) any branch of any institution of higher
education described under subparagraph (A) that by
itself satisfies the requirements contained in clauses
(i) and (ii) of such subparagraph.
For purposes of the determination of whether an institution is
an eligible institution under this paragraph, the factor
described under subparagraph (A)(i) shall be given twice the
weight of the factor described under subparagraph (A)(ii).
``(3) Endowment fund.--The term `endowment fund' means a
fund that--
``(A) is established by State law, by a Hispanic-
serving institution, or by a foundation that is exempt
from Federal income taxation;
``(B) is maintained for the purpose of generating
income for the support of the institution; and
``(C) does not include real estate.
``(4) Full-time equivalent students.--The term `full-time
equivalent students' means the sum of the number of students
enrolled full time at an institution, plus the full-time
equivalent of the number of students enrolled part time
(determined on the basis of the quotient of the sum of the
credit hours of all part-time students divided by 12) at such
institution.
``(5) Hispanic-serving institution.--The term `Hispanic-
serving institution' means an institution of higher education
that--
``(A) is an eligible institution;
``(B) at the time of application, has an enrollment
of undergraduate full-time equivalent students that is
at least 25 percent Hispanic students; and
``(C) provides assurances that not less than 50
percent of the institution's Hispanic students are low-
income individuals.
``(6) Junior or community college.--The term `junior or
community college' means an institution of higher education--
``(A) that admits as regular students persons who
are beyond the age of compulsory school attendance in
the State in which the institution is located and who
have the ability to benefit from the training offered by
the institution;
``(B) that does not provide an educational program
for which the institution awards a bachelor's degree (or
an equivalent degree); and
``(C) that--
[[Page 112 STAT. 1768]]
``(i) provides an educational program of not
less than 2 years in duration that is acceptable
for full credit toward such a degree; or
``(ii) offers a 2-year program in engineering,
mathematics, or the physical or biological
sciences, designed to prepare a student to work as
a technician or at the semiprofessional level in
engineering, scientific, or other technological
fields requiring the understanding and application
of basic engineering, scientific, or mathematical
principles of knowledge.
``(7) Low-income individual.--The term `low-income
individual' means an individual from a family whose taxable
income for the preceding year did not exceed 150 percent of an
amount equal to the poverty level determined by using criteria
of poverty established by the Bureau of the Census.
``(b) Enrollment of Needy Students.--For the purpose of this title,
the term `enrollment of needy students' means an enrollment at an
institution with respect to which--
``(1) at least 50 percent of the degree students so enrolled
are receiving need-based assistance under title IV in the second
fiscal year preceding the fiscal year for which the
determination is made (other than loans for which an interest
subsidy is paid pursuant to section 428); or
``(2) a substantial percentage of the students so enrolled
are receiving Federal Pell Grants in the second fiscal year
preceding the fiscal year for which determination is made,
compared to the percentage of students receiving Federal Pell
Grants at all such institutions in the second fiscal year
preceding the fiscal year for which the determination is made,
unless the requirement of this paragraph is waived under section
512(a).
``SEC. 503. AUTHORIZED ACTIVITIES. <<NOTE: 20 USC 1101b.>>
``(a) Types of Activities Authorized.--Grants awarded under this
title shall be used by Hispanic-serving institutions of higher education
to assist the institutions to plan, develop, undertake, and carry out
programs to improve and expand the institutions' capacity to serve
Hispanic students and other low-income students.
``(b) Authorized Activities.--Grants awarded under this section
shall be used for one or more of the following activities:
``(1) Purchase, rental, or lease of scientific or laboratory
equipment for educational purposes, including instructional and
research purposes.
``(2) Construction, maintenance, renovation, and improvement
in classrooms, libraries, laboratories, and other instructional
facilities.
``(3) Support of faculty exchanges, faculty development,
curriculum development, academic instruction, and faculty
fellowships to assist in attaining advanced degrees in the
fellow's field of instruction.
``(4) Purchase of library books, periodicals, and other
educational materials, including telecommunications program
material.
``(5) Tutoring, counseling, and student service programs
designed to improve academic success.
[[Page 112 STAT. 1769]]
``(6) Funds management, administrative management, and
acquisition of equipment for use in strengthening funds
management.
``(7) Joint use of facilities, such as laboratories and
libraries.
``(8) Establishing or improving a development office to
strengthen or improve contributions from alumni and the private
sector.
``(9) Establishing or improving an endowment fund.
``(10) Creating or improving facilities for Internet or
other distance learning academic instruction capabilities,
including purchase or rental of telecommunications technology
equipment or services.
``(11) Establishing or enhancing a program of teacher
education designed to qualify students to teach in public
elementary schools and secondary schools.
``(12) Establishing community outreach programs that will
encourage elementary school and secondary school students to
develop the academic skills and the interest to pursue
postsecondary education.
``(13) Expanding the number of Hispanic and other
underrepresented graduate and professional students that can be
served by the institution by expanding courses and institutional
resources.
``(14) Other activities proposed in the application
submitted pursuant to section 504 that--
``(A) contribute to carrying out the purposes of
this title; and
``(B) are approved by the Secretary as part of the
review and acceptance of such application.
``(c) Endowment Fund Limitations.--
``(1) Portion of grant.--A Hispanic-serving institution may
not use more than 20 percent of the grant funds provided under
this title for any fiscal year for establishing or improving an
endowment fund.
``(2) Matching required.--A Hispanic-serving institution
that uses any portion of the grant funds provided under this
title for any fiscal year for establishing or improving an
endowment fund shall provide from non-Federal funds an amount
equal to or greater than the portion.
``(3) Comparability.--The provisions of part C of title III
regarding the establishment or increase of an endowment fund,
that the Secretary determines are not inconsistent with this
subsection, shall apply to funds used under paragraph (1).
``SEC. 504. DURATION OF GRANT. <<NOTE: 20 USC 1101c.>>
``(a) Award Period.--
``(1) In general.--The Secretary may award a grant to a
Hispanic-serving institution under this title for 5 years.
``(2) Waitout period.--A Hispanic-serving institution shall
not be eligible to secure a subsequent 5-year grant award under
this title until 2 years have elapsed since the expiration of
the institution's most recent 5-year grant award under this
title, except that for the purpose of this subsection a grant
under section 514(a) shall not be considered a grant under this
title.
``(b) Planning Grants.--Notwithstanding subsection (a), the
Secretary may award a grant to a Hispanic-serving institution
[[Page 112 STAT. 1770]]
under this title for a period of 1 year for the purpose of preparation
of plans and applications for a grant under this title.
``SEC. 505. SPECIAL RULE. <<NOTE: 20 USC 1101d.>>
``No Hispanic-serving institution that is eligible for and receives
funds under this title may receive funds under part A or B of title III
during the period for which funds under this title are awarded.
``PART B--GENERAL PROVISIONS
``SEC. 511. ELIGIBILITY; APPLICATIONS. <<NOTE: 20 USC 1103.>>
``(a) Institutional Eligibility.--Each Hispanic-serving institution
desiring to receive assistance under this title shall submit to the
Secretary such enrollment data as may be necessary to demonstrate that
the institution is a Hispanic-serving institution as defined in section
502, along with such other data and information as the Secretary may by
regulation require.
``(b) Applications.--
``(1) Applications required.--Any institution which is
eligible for assistance under this title shall submit to the
Secretary an application for assistance at such time, in such
form, and containing such information, as may be necessary to
enable the Secretary to evaluate the institution's need for
assistance. Subject to the availability of appropriations to
carry out this title, the Secretary may approve an application
for a grant under this title only if the Secretary determines
that--
``(A) the application meets the requirements of
subsection (b); and
``(B) the institution is eligible for assistance in
accordance with the provisions of this title under which
the assistance is sought.
``(2) Preliminary applications.--In carrying out paragraph
(1), the Secretary may develop a preliminary application for use
by Hispanic-serving institutions applying under this title prior
to the submission of the principal application.
``(c) Contents.--A Hispanic-serving institution, in the
institution's application for a grant, shall--
``(1) set forth, or describe how the institution will
develop, a comprehensive development plan to strengthen the
institution's academic quality and institutional management, and
otherwise provide for institutional self-sufficiency and growth
(including measurable objectives for the institution and the
Secretary to use in monitoring the effectiveness of activities
under this title);
``(2) include a 5-year plan for improving the assistance
provided by the Hispanic-serving institution to Hispanic
students and other low-income individuals;
``(3) set forth policies and procedures to ensure that
Federal funds made available under this title for any fiscal
year will be used to supplement and, to the extent practical,
increase the funds that would otherwise be made available for
the purposes of section 501(b), and in no case supplant those
funds;
``(4) set forth policies and procedures for evaluating the
effectiveness in accomplishing the purpose of the activities for
which a grant is sought under this title;
[[Page 112 STAT. 1771]]
``(5) provide for such fiscal control and fund accounting
procedures as may be necessary to ensure proper disbursement of
and accounting for funds made available to the institution under
this title;
``(6) provide that the institution will comply with the
limitations set forth in section 516;
``(7) describe in a comprehensive manner any proposed
project for which funds are sought under the application and
include--
``(A) a description of the various components of the
proposed project, including the estimated time required
to complete each such component;
``(B) in the case of any development project that
consists of several components (as described by the
institution pursuant to subparagraph (A)), a statement
identifying those components which, if separately
funded, would be sound investments of Federal funds and
those components which would be sound investments of
Federal funds only if funded under this title in
conjunction with other parts of the development project
(as specified by the institution);
``(C) an evaluation by the institution of the
priority given any proposed project for which funds are
sought in relation to any other projects for which funds
are sought by the institution under this title, and a
similar evaluation regarding priorities among the
components of any single proposed project (as described
by the institution pursuant to subparagraph (A));
``(D) a detailed budget showing the manner in which
funds for any proposed project would be spent by the
institution; and
``(E) a detailed description of any activity which
involves the expenditure of more than $25,000, as
identified in the budget referred to in subparagraph
(D);
``(8) <<NOTE: Reports.>> provide for making reports, in such
form and containing such information, as the Secretary may
require to carry out the Secretary's functions under this title,
including not less than one report annually setting forth the
institution's progress toward achieving the objectives for which
the funds were awarded and for keeping such records and
affording such access to such records, as the Secretary may find
necessary to assure the correctness and verification of such
reports; and
``(9) include such other information as the Secretary may
prescribe.
``(d) Priority.--With respect to applications for assistance under
this section, the Secretary shall give priority to an application that
contains satisfactory evidence that the Hispanic-serving institution has
entered into or will enter into a collaborative arrangement with at
least one local educational agency or community-based organization to
provide such agency or organization with assistance (from funds other
than funds provided under this title) in reducing dropout rates for
Hispanic students, improving rates of academic achievement for Hispanic
students, and increasing the rates at which Hispanic secondary school
graduates enroll in higher education.
``(e) Eligibility Data.--The Secretary shall use the most recent and
relevant data concerning the number and percentage of students receiving
need-based assistance under title IV in making
[[Page 112 STAT. 1772]]
eligibility determinations and shall advance the base-year for the
determinations forward following each annual grant cycle.
``SEC. 512. WAIVER AUTHORITY AND REPORTING REQUIREMENT. <<NOTE: 20 USC
1103a.>>
``(a) Waiver Requirements; Need-Based Assistance Students.--The
Secretary may waive the requirements set forth in section
502(a)(2)(A)(i) in the case of an institution--
``(1) that is extensively subsidized by the State in which
the institution is located and charges low or no tuition;
``(2) that serves a substantial number of low-income
students as a percentage of the institution's total student
population;
``(3) that is contributing substantially to increasing
higher education opportunities for educationally disadvantaged,
underrepresented, or minority students, who are low-income
individuals;
``(4) which is substantially increasing higher educational
opportunities for individuals in rural or other isolated areas
which are unserved by postsecondary institutions; or
``(5) wherever located, if the Secretary determines that the
waiver will substantially increase higher education
opportunities appropriate to the needs of Hispanic Americans.
``(b) Waiver Determinations; Expenditures.--
``(1) Waiver determinations.--The Secretary may waive the
requirements set forth in section 502(a)(2)(A)(ii) if the
Secretary determines, based on persuasive evidence submitted by
the institution, that the institution's failure to meet the
requirements is due to factors which, when used in the
determination of compliance with the requirements, distort such
determination, and that the institution's designation as an
eligible institution under part A is otherwise consistent with
the purposes of this title.
``(2) <<NOTE: Reports.>> Expenditures.--The Secretary shall
submit to Congress every other year a report concerning the
institutions that, although not satisfying the requirements of
section 502(a)(2)(A)(ii), have been determined to be eligible
institutions under part A. Such report shall--
``(A) identify the factors referred to in paragraph
(1) that were considered by the Secretary as factors
that distorted the determination of compliance with
clauses (i) and (ii) of section 502(a)(2)(A); and
``(B) <<NOTE: Records.>> contain a list of each
institution determined to be an eligible institution
under part A including a statement of the reasons for
each such determination.
``SEC. 513. APPLICATION REVIEW PROCESS. <<NOTE: 20 USC 1103b.>>
``(a) Review Panel.--All applications submitted under this title by
Hispanic-serving institutions shall be read by a panel of readers
composed of individuals who are selected by the Secretary and who
include individuals representing Hispanic-serving institutions. The
Secretary shall ensure that no individual assigned under this section to
review any application has any conflict of interest with regard to the
application that might impair the impartiality with which the individual
conducts the review under this section.
``(b) Instruction.--All readers selected by the Secretary shall
receive thorough instruction from the Secretary regarding the evaluation
process for applications submitted under this title that are consistent
with the provisions of this title, including--
[[Page 112 STAT. 1773]]
``(1) an enumeration of the factors to be used to determine
the quality of applications submitted under this title; and
``(2) an enumeration of the factors to be used to determine
whether a grant should be awarded for a project under this
title, the amount of any such grant, and the duration of any
such grant.
``(c) Recommendations of Panel.--In awarding grants under this
title, the Secretary shall take into consideration the recommendations
of the panel made under subsection (a).
``(d) <<NOTE: Deadline.>> Notification.--Not later than June 30 of
each year, the Secretary shall notify each Hispanic-serving institution
making an application under this title of--
``(1) the scores given the institution by the panel pursuant
to this section;
``(2) the recommendations of the panel with respect to such
application; and
``(3) the reasons for the decision of the Secretary in
awarding or refusing to award a grant under this title, and any
modifications, if any, in the recommendations of the panel made
by the Secretary.
``SEC. 514. COOPERATIVE ARRANGEMENTS. <<NOTE: 20 USC 1103c.>>
``(a) General Authority.--The Secretary may make grants to encourage
cooperative arrangements with funds available to carry out this title,
between Hispanic-serving institutions eligible for assistance under this
title, and between such institutions and institutions not receiving
assistance under this title, for the activities described in section 503
so that the resources of the cooperating institutions might be combined
and shared in order to achieve the purposes of this title, to avoid
costly duplicative efforts, and to enhance the development of Hispanic-
serving institutions.
``(b) Priority.--The Secretary shall give priority to grants for the
purposes described under subsection (a) whenever the Secretary
determines that the cooperative arrangement is geographically and
economically sound or will benefit the applicant Hispanic-serving
institution.
``(c) Duration.--Grants to Hispanic-serving institutions having a
cooperative arrangement may be made under this section for a period
determined under section 505.
``SEC. 515. ASSISTANCE TO INSTITUTIONS UNDER OTHER PROGRAMS. <<NOTE: 20
USC 1103d.>>
``(a) Assistance Eligibility.--Each Hispanic-serving institution
that the Secretary determines to be an institution eligible under this
title may be eligible for waivers in accordance with subsection (b).
``(b) Waiver Applicability.--
``(1) In general.--Subject to, and in accordance with,
regulations promulgated for the purpose of this section, in the
case of any application by a Hispanic-serving institution
referred to in subsection (a) for assistance under any programs
specified in paragraph (2), the Secretary is authorized, if such
application is otherwise approvable, to waive any requirement
for a non-Federal share of the cost of the program or project,
or, to the extent not inconsistent with other law, to give, or
require to be given, priority consideration of the application
in relation to applications from other institutions.
``(2) Programs.--The provisions of this section shall apply
to any program authorized by title IV or section 604.
[[Page 112 STAT. 1774]]
``(c) Limitation.--The Secretary shall not waive, under subsection
(b), the non-Federal share requirement for any program for applications
which, if approved, would require the expenditure of more than 10
percent of the appropriations for the program for any fiscal year.
``SEC. 516. LIMITATIONS. <<NOTE: 20 USC 1103e.>>
``The funds appropriated under section 518 may not be used--
``(1) for a school or department of divinity or any
religious worship or sectarian activity;
``(2) for an activity that is inconsistent with a State plan
for desegregation of higher education applicable to a Hispanic-
serving institution;
``(3) for an activity that is inconsistent with a State plan
of higher education applicable to a Hispanic-serving
institution; or
``(4) for purposes other than the purposes set forth in the
approved application under which the funds were made available
to a Hispanic-serving institution.
``SEC. 517. PENALTIES. <<NOTE: 20 USC 1103f.>>
``Whoever, being an officer, director, agent, or employee of, or
connected in any capacity with, any recipient of Federal financial
assistance or grant pursuant to this title embezzles, willfully
misapplies, steals, or obtains by fraud any of the funds that are the
subject of such grant or assistance, shall be fined not more than
$10,000 or imprisoned for not more than 2 years, or both.
``SEC. 518. AUTHORIZATIONS OF APPROPRIATIONS. <<NOTE: 20 USC 1103g.>>
``(a) Authorizations.--There are authorized to be appropriated to
carry out this title $62,500,000 for fiscal year 1999 and such sums as
may be necessary for each of the 4 succeeding fiscal years.
``(b) Use of Multiple Year Awards.--In the event of a multiple year
award to any Hispanic-serving institution under this title, the
Secretary shall make funds available for such award from funds
appropriated for this title for the fiscal year in which such funds are
to be used by the institution.''.
TITLE VI--INTERNATIONAL EDUCATION PROGRAMS
SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUDIES.
Part A of title VI (20 U.S.C. 1121 et seq.) is amended to read as
follows:
``PART A--INTERNATIONAL AND FOREIGN LANGUAGE STUDIES
``SEC. 601. FINDINGS AND PURPOSES. <<NOTE: 20 USC 1121.>>
``(a) Findings.--Congress finds as follows:
``(1) The security, stability, and economic vitality of the
United States in a complex global era depend upon American
experts in and citizens knowledgeable about world regions,
foreign languages, and international affairs, as well as upon a
strong research base in these areas.
[[Page 112 STAT. 1775]]
``(2) Advances in communications technology and the growth
of regional and global problems make knowledge of other
countries and the ability to communicate in other languages more
essential to the promotion of mutual understanding and
cooperation among nations and their peoples.
``(3) Dramatic post-Cold War changes in the world's
geopolitical and economic landscapes are creating needs for
American expertise and knowledge about a greater diversity of
less commonly taught foreign languages and nations of the world.
``(4) Systematic efforts are necessary to enhance the
capacity of institutions of higher education in the United
States for--
``(A) producing graduates with international and
foreign language expertise and knowledge; and
``(B) research regarding such expertise and
knowledge.
``(5) Cooperative efforts among the Federal Government,
institutions of higher education, and the private sector are
necessary to promote the generation and dissemination of
information about world regions, foreign languages, and
international affairs throughout education, government,
business, civic, and nonprofit sectors in the United States.
``(b) Purposes.--The purposes of this part are--
``(1)(A) to support centers, programs, and fellowships in
institutions of higher education in the United States for
producing increased numbers of trained personnel and research in
foreign languages, area studies, and other international
studies;
``(B) to develop a pool of international experts to meet
national needs;
``(C) to develop and validate specialized materials and
techniques for foreign language acquisition and fluency,
emphasizing (but not limited to) the less commonly taught
languages;
``(D) to promote access to research and training overseas;
and
``(E) to advance the internationalization of a variety of
disciplines throughout undergraduate and graduate education;
``(2) to support cooperative efforts promoting access to and
the dissemination of international and foreign language
knowledge, teaching materials, and research, throughout
education, government, business, civic, and nonprofit sectors in
the United States, through the use of advanced technologies; and
``(3) to coordinate the programs of the Federal Government
in the areas of foreign language, area studies, and other
international studies, including professional international
affairs education and research.
``SEC. <<NOTE: 20 USC 1122.>> 602. GRADUATE AND UNDERGRADUATE LANGUAGE
AND AREA CENTERS AND PROGRAMS.
``(a) National Language and Area Centers and Programs Authorized.--
``(1) Centers and programs.--
``(A) In general.--The Secretary is authorized--
``(i) to make grants to institutions of higher
education, or combinations thereof, for the
purpose of establishing, strengthening, and
operating comprehensive foreign language and area
or international studies centers and programs; and
[[Page 112 STAT. 1776]]
``(ii) to make grants to such institutions or
combinations for the purpose of establishing,
strengthening, and operating a diverse network of
undergraduate foreign language and area or
international studies centers and programs.
``(B) National resources.--The centers and programs
referred to in paragraph (1) shall be national resources
for--
``(i) teaching of any modern foreign language;
``(ii) instruction in fields needed to provide
full understanding of areas, regions, or countries
in which such language is commonly used;
``(iii) research and training in international
studies, and the international and foreign
language aspects of professional and other fields
of study; and
``(iv) instruction and research on issues in
world affairs that concern one or more countries.
``(2) Authorized activities.--Any such grant may be used to
pay all or part of the cost of establishing or operating a
center or program, including the cost of--
``(A) teaching and research materials;
``(B) curriculum planning and development;
``(C) establishing and maintaining linkages with
overseas institutions of higher education and other
organizations that may contribute to the teaching and
research of the center or program;
``(D) bringing visiting scholars and faculty to the
center to teach or to conduct research;
``(E) professional development of the center's
faculty and staff;
``(F) projects conducted in cooperation with other
centers addressing themes of world regional, cross-
regional, international, or global importance;
``(G) summer institutes in the United States or
abroad designed to provide language and area training in
the center's field or topic; and
``(H) support for faculty, staff, and student travel
in foreign areas, regions, or countries, and for the
development and support of educational programs abroad
for students.
``(3) Grants to maintain library collections.--The Secretary
may make grants to centers described in paragraph (1) having
important library collections, as determined by the Secretary,
for the maintenance of such collections.
``(4) Outreach grants and summer institutes.--The
Secretary may make additional grants to centers described in
paragraph (1) for any one or more of the following purposes:
``(A) Programs of linkage or outreach between
foreign language, area studies, or other international
fields, and professional schools and colleges.
``(B) Programs of linkage or outreach with 2- and 4-
year colleges and universities.
``(C) Programs of linkage or outreach with
departments or agencies of Federal and State
governments.
``(D) Programs of linkage or outreach with the news
media, business, professional, or trade associations.
``(E) Summer institutes in foreign area, foreign
language, and other international fields designed to
carry
[[Page 112 STAT. 1777]]
out the programs of linkage and outreach described in
subparagraphs (A), (B), (C), and (D).
``(b) Graduate Fellowships for Foreign Language and Area or
International Studies.--
``(1) In general.--The Secretary is authorized to make
grants to institutions of higher education or combinations of
such institutions for the purpose of paying stipends to
individuals undergoing advanced training in any center or
program approved by the Secretary.
``(2) Eligible students.--Students receiving stipends
described in paragraph (1) shall be individuals who are engaged
in an instructional program with stated performance goals for
functional foreign language use or in a program developing such
performance goals, in combination with area studies,
international studies, or the international aspects of a
professional studies program, including predissertation level
studies, preparation for dissertation research, dissertation
research abroad, and dissertation writing.
``(c) Special Rule With Respect to Travel.--No funds may be expended
under this part for undergraduate travel except in accordance with rules
prescribed by the Secretary setting forth policies and procedures to
assure that Federal funds made available for such travel are expended as
part of a formal program of supervised study.
``(d) Allowances.--Stipends awarded to graduate level recipients may
include allowances for dependents and for travel for research and study
in the United States and abroad.
``SEC. 603. LANGUAGE RESOURCE CENTERS.
``(a) <<NOTE: Contracts. 20 USC 1123.>> Language Resource Centers
Authorized.--The Secretary is authorized to make grants to and enter
into contracts with institutions of higher education, or combinations of
such institutions, for the purpose of establishing, strengthening, and
operating a small number of national language resource and training
centers, which shall serve as resources to improve the capacity to teach
and learn foreign languages effectively.
``(b) Authorized Activities.--The activities carried out by the
centers described in subsection (a)--
``(1) shall include effective dissemination efforts,
whenever appropriate; and
``(2) may include--
``(A) the conduct and dissemination of research on
new and improved teaching methods, including the use of
advanced educational technology;
``(B) the development and dissemination of new
teaching materials reflecting the use of such research
in effective teaching strategies;
``(C) the development, application, and
dissemination of performance testing appropriate to an
educational setting for use as a standard and comparable
measurement of skill levels in all languages;
``(D) the training of teachers in the administration
and interpretation of performance tests, the use of
effective teaching strategies, and the use of new
technologies;
``(E) a significant focus on the teaching and
learning needs of the less commonly taught languages,
including an assessment of the strategic needs of the
United States,
[[Page 112 STAT. 1778]]
the determination of ways to meet those needs
nationally, and the publication and dissemination of
instructional materials in the less commonly taught
languages;
``(F) the development and dissemination of materials
designed to serve as a resource for foreign language
teachers at the elementary and secondary school levels;
and
``(G) the operation of intensive summer language
institutes to train advanced foreign language students,
to provide professional development, and to improve
language instruction through preservice and inservice
language training for teachers.
``(c) Conditions for Grants.--Grants under this section shall be
made on such conditions as the Secretary determines to be necessary to
carry out the provisions of this section.
``SEC. 604. <<NOTE: 20 USC 1124.>> UNDERGRADUATE INTERNATIONAL STUDIES
AND FOREIGN LANGUAGE PROGRAMS.
``(a) Incentives for the Creation of New Programs and the
Strengthening of Existing Programs in Undergraduate International
Studies and Foreign Language Programs.--
``(1) Authority.--The Secretary is authorized to make grants
to institutions of higher education, combinations of such
institutions, or partnerships between nonprofit educational
organizations and institutions of higher education, to assist
such institutions, combinations or partnerships in planning,
developing, and carrying out programs to improve undergraduate
instruction in international studies and foreign languages. Such
grants shall be awarded to institutions, combinations or
partnerships seeking to create new programs or to strengthen
existing programs in foreign languages, area studies, and other
international fields.
``(2) Use of funds.--Grants made under this section may be
used for Federal share of the cost of projects and activities
which are an integral part of such a program, such as--
``(A) planning for the development and expansion of
undergraduate programs in international studies and
foreign languages;
``(B) teaching, research, curriculum development,
faculty training in the United States or abroad, and
other related activities, including--
``(i) the expansion of library and teaching
resources; and
``(ii) preservice and inservice teacher
training;
``(C) expansion of opportunities for learning
foreign languages, including less commonly taught
languages;
``(D) programs under which foreign teachers and
scholars may visit institutions as visiting faculty;
``(E) programs designed to develop or enhance
linkages between 2- and 4-year institutions of higher
education, or baccalaureate and post-baccalaureate
programs or institutions;
``(F) the development of undergraduate educational
programs--
``(i) in locations abroad where such
opportunities are not otherwise available or that
serve students for whom such opportunities are not
otherwise available; and
[[Page 112 STAT. 1779]]
``(ii) that provide courses that are closely
related to on-campus foreign language and
international curricula;
``(G) the integration of new and continuing
education abroad opportunities for undergraduate
students into curricula of specific degree programs;
``(H) the development of model programs to enrich or
enhance the effectiveness of educational programs
abroad, including predeparture and postreturn programs,
and the integration of educational programs abroad into
the curriculum of the home institution;
``(I) the development of programs designed to
integrate professional and technical education with
foreign languages, area studies, and other international
fields;
``(J) the establishment of linkages overseas with
institutions of higher education and organizations that
contribute to the educational programs assisted under
this subsection;
``(K) the conduct of summer institutes in foreign
area, foreign language, and other international fields
to provide faculty and curriculum development, including
the integration of professional and technical education
with foreign area and other international studies, and
to provide foreign area and other international
knowledge or skills to government personnel or private
sector professionals in international activities;
``(L) the development of partnerships between--
``(i) institutions of higher education; and
``(ii) the private sector, government, or
elementary and secondary education institutions,
in order to enhance international knowledge and skills;
and
``(M) the use of innovative technology to increase
access to international education programs.
``(3) Non-federal share.--The non-Federal share of the cost
of the programs assisted under this subsection--
``(A) may be provided in cash from the private
sector corporations or foundations in an amount equal to
one-third of the total cost of the programs assisted
under this section; or
``(B) may be provided as an in-cash or in-kind
contribution from institutional and noninstitutional
funds, including State and private sector corporation or
foundation contributions, equal to one-half of the total
cost of the programs assisted under this section.
``(4) Special rule.--The Secretary may waive or reduce the
required non-Federal share for institutions that--
``(A) are eligible to receive assistance under part
A or B of title III or under title V; and
``(B) have submitted a grant application under this
section.
``(5) Priority.--In awarding grants under this section, the
Secretary shall give priority to applications from institutions
of higher education, combinations or partnerships that require
entering students to have successfully completed at least 2
years of secondary school foreign language instruction or that
[[Page 112 STAT. 1780]]
require each graduating student to earn 2 years of postsecondary
credit in a foreign language (or have demonstrated equivalent
competence in the foreign language) or, in the case of a 2-year
degree granting institution, offer 2 years of postsecondary
credit in a foreign language.
``(6) Grant conditions.--Grants under this subsection shall
be made on such conditions as the Secretary determines to be
necessary to carry out this subsection.
``(7) Application.--Each application for assistance under
this subsection shall include--
``(A) evidence that the applicant has conducted
extensive planning prior to submitting the application;
``(B) an assurance that the faculty and
administrators of all relevant departments and programs
served by the applicant are involved in ongoing
collaboration with regard to achieving the stated
objectives of the application;
``(C) an assurance that students at the applicant
institutions, as appropriate, will have equal access to,
and derive benefits from, the program assisted under
this subsection; and
``(D) an assurance that each institution,
combination or partnership will use the Federal
assistance provided under this subsection to supplement
and not supplant non-Federal funds the institution
expends for programs to improve undergraduate
instruction in international studies and foreign
languages.
``(8) Evaluation.--The Secretary may establish requirements
for program evaluations and require grant recipients to submit
annual reports that evaluate the progress and performance of
students participating in programs assisted under this
subsection.
``(b) Programs of National Significance.--The Secretary may also
award grants to public and private nonprofit agencies and organizations,
including professional and scholarly associations, whenever the
Secretary determines such grants will make an especially significant
contribution to improving undergraduate international studies and
foreign language programs.
``(c) Funding Support.--The Secretary may use not more than 10
percent of the total amount appropriated for this part for carrying out
the purposes of this section.
``SEC. 605. RESEARCH; STUDIES; ANNUAL REPORT. <<NOTE: 20 USC 1125.>>
``(a) Authorized Activities.--The Secretary may, directly or through
grants or contracts, conduct research and studies that contribute to
achieving the purposes of this part. Such research and studies may
include--
``(1) studies and surveys to determine needs for increased
or improved instruction in foreign language, area studies, or
other international fields, including the demand for foreign
language, area, and other international specialists in
government, education, and the private sector;
``(2) studies and surveys to assess the utilization of
graduates of programs supported under this title by
governmental, educational, and private sector organizations and
other studies assessing the outcomes and effectiveness of
programs so supported;
[[Page 112 STAT. 1781]]
``(3) evaluation of the extent to which programs assisted
under this title that address national needs would not otherwise
be offered;
``(4) comparative studies of the effectiveness of strategies
to provide international capabilities at institutions of higher
education;
``(5) research on more effective methods of providing
instruction and achieving competency in foreign languages, area
studies, or other international fields;
``(6) the development and publication of specialized
materials for use in foreign language, area studies, and other
international fields, or for training foreign language, area,
and other international specialists;
``(7) studies and surveys of the uses of technology in
foreign language, area studies, and international studies
programs;
``(8) studies and evaluations of effective practices in the
dissemination of international information, materials, research,
teaching strategies, and testing techniques throughout the
education community, including elementary and secondary schools;
and
``(9) the application of performance tests and standards
across all areas of foreign language instruction and classroom
use.
``(b) <<NOTE: Publication.>> Annual Report.--The Secretary shall
prepare, publish, and announce an annual report listing the books and
research materials produced with assistance under this section.
``SEC. 606. <<NOTE: 20 USC 1126.>> TECHNOLOGICAL INNOVATION AND
COOPERATION FOR FOREIGN INFORMATION ACCESS.
``(a) Authority.--The Secretary is authorized to make grants to
institutions of higher education, public or nonprofit private libraries,
or consortia of such institutions or libraries, to develop innovative
techniques or programs using new electronic technologies to collect,
organize, preserve, and widely disseminate information on world regions
and countries other than the United States that address our Nation's
teaching and research needs in international education and foreign
languages.
``(b) Authorized Activities.--Grants under this section may be
used--
``(1) to facilitate access to or preserve foreign
information resources in print or electronic forms;
``(2) to develop new means of immediate, full-text document
delivery for information and scholarship from abroad;
``(3) to develop new means of shared electronic access to
international data;
``(4) to support collaborative projects of indexing,
cataloging, and other means of bibliographic access for scholars
to important research materials published or distributed outside
the United States;
``(5) to develop methods for the wide dissemination of
resources written in non-Roman language alphabets;
``(6) to assist teachers of less commonly taught languages
in acquiring, via electronic and other means, materials suitable
for classroom use; and
``(7) to promote collaborative technology based projects in
foreign languages, area studies, and international studies among
grant recipients under this title.
[[Page 112 STAT. 1782]]
``(c) Application.--Each institution or consortium desiring a grant
under this section shall submit an application to the Secretary at such
time, in such manner, and accompanied by such information and assurances
as the Secretary may reasonably require.
``(d) Match Required.--The Federal share of the total cost of
carrying out a program supported by a grant under this section shall not
be more than 66\2/3\ percent. The non-Federal share of such cost may be
provided either in-kind or in cash, and may include contributions from
private sector corporations or foundations.''.
``SEC. 607. SELECTION OF CERTAIN GRANT RECIPIENTS. <<NOTE: 20 USC
1127.>>
``(a) Competitive Grants.--The Secretary shall award grants under
section 602 competitively on the basis of criteria that
separately, but not less rigorously, evaluates the applications for
comprehensive and undergraduate language and area centers and programs.
``(b) Selection Criteria.--The Secretary shall set criteria for
grants awarded under section 602 by which a determination of excellence
shall be made to meet the differing objectives of graduate and
undergraduate institutions.
``(c) Equitable Distribution of Grants.--The Secretary shall, to the
extent practicable, award grants under this part (other than section
602) in such manner as to achieve an equitable distribution of the grant
funds throughout the United States, based on the merit of a proposal as
determined pursuant to a peer review process involving broadly
representative professionals.
``SEC. 608. EQUITABLE DISTRIBUTION OF CERTAIN FUNDS. <<NOTE: 20 USC
1128.>>
``(a) Selection Criteria.--The Secretary shall make excellence the
criterion for selection of grants awarded under section 602.
``(b) Equitable Distribution.--To the extent practicable and
consistent with the criterion of excellence, the Secretary shall award
grants under this part (other than section 602) in such a manner as will
achieve an equitable distribution of funds throughout the United States.
``(c) Support for Undergraduate Education.--The Secretary shall also
award grants under this part in such manner as to ensure that an
appropriate portion of the funds appropriated for this part (as
determined by the Secretary) are used to support undergraduate
education.
``SEC. 609. AMERICAN OVERSEAS RESEARCH CENTERS. <<NOTE: 20 USC 1128a.>>
``(a) <<NOTE: Contracts.>> Centers Authorized.--The Secretary is
authorized to make grants to and enter into contracts with any American
overseas research center that is a consortium of institutions of higher
education (hereafter in this section referred to as a ``center'') to
enable such center to promote postgraduate research, exchanges and area
studies.
``(b) Use of Grants.--Grants made and contracts entered into
pursuant to this section may be used to pay all or a portion of the cost
of establishing or operating a center or program,
including--
``(1) the cost of faculty and staff stipends and salaries;
``(2) the cost of faculty, staff, and student travel;
``(3) the cost of the operation and maintenance of overseas
facilities;
``(4) the cost of teaching and research materials;
[[Page 112 STAT. 1783]]
``(5) the cost of acquisition, maintenance, and preservation
of library collections;
``(6) the cost of bringing visiting scholars and faculty to
a center to teach or to conduct research;
``(7) the cost of organizing and managing conferences; and
``(8) the cost of publication and dissemination of material
for the scholarly and general public.
``(c) Limitation.--The Secretary shall only award grants to and
enter into contracts with centers under this section that--
``(1) receive more than 50 percent of their funding from
public or private United States sources;
``(2) have a permanent presence in the country in which the
center is located; and
``(3) are organizations described in section 501(c)(3) of
the Internal Revenue Code of 1986 which are exempt from taxation
under section 501(a) of such Code.
``(d) Development Grants.--The Secretary is authorized to make
grants for the establishment of new centers. The grants may be used to
fund activities that, within 1 year, will result in the creation of a
center described in subsection (c).
``SEC. 610. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 1128b.>>
``There are authorized to be appropriated to carry out this part
$80,000,000 for fiscal year 1999, and such sums as may be necessary for
each of the 4 succeeding fiscal years.''.
SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS.
(a) Amendment to Heading.--The heading for section 611 (20 U.S.C.
1130) is amended to read as follows:
``SEC. 611. FINDINGS AND PURPOSES.''.
(b) Centers.--Section 612 (20 U.S.C. 1130-1) is amended--
(1) in subsection (c)--
(A) in paragraph (1)--
(i) in subparagraph (B), by striking
``advanced''; and
(ii) in subparagraph (C), by striking
``evening or summer''; and
(B) in paragraph (2)(C), by inserting ``foreign
language studies,'' after ``area studies,''; and
(2) in subsection (d)(2)(G), by inserting ``, such as a
representative of a community college in the region served by
the center'' before the period.
(c) Authorization of Appropriations.--Section 614 (20 U.S.C. 1130b)
is amended--
(1) in subsection (a), by striking ``1993'' and inserting
``1999''; and
(2) in subsection (b), by striking ``1993'' and inserting
``1999''.
SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY.
(a) Minority Foreign Service Professional Development Program.--
Section 621(e) (20 U.S.C. 1131(e)) is amended by striking ``one-fourth''
and inserting ``one-half''.
(b) Institutional Development.--Part C of title VI (20 U.S.C. 1131
et seq.) is amended--
[[Page 112 STAT. 1784]]
(1) by redesignating sections 622 through 627 (20 U.S.C.
1131a through 1131f) as sections 623 through 628, respectively;
and
(2) by inserting after section 621 (20 U.S.C. 1131) the
following:
``SEC. 622. INSTITUTIONAL DEVELOPMENT. <<NOTE: Minorities. 20 USC 1131-
1.>>
``(a) In General.--The Institute shall award grants, from amounts
available to the Institute for each fiscal year, to historically Black
colleges and universities, Hispanic-serving institutions, Tribally
Controlled Colleges or Universities, and minority institutions, to
enable such colleges, universities, and institutions to strengthen
international affairs programs.
``(b) Application.--No grant may be made by the Institute unless an
application is made by the college, university, or institution at such
time, in such manner, and accompanied by such information as the
Institute may require.
``(c) Definitions.--In this section--
``(1) the term `historically Black college and university'
has the meaning given the term in section 322;
``(2) the term `Hispanic-serving institution' has the
meaning given the term in section 502;
``(3) the term `Tribally Controlled College or University'
has the meaning given the term in section 2 of the Tribally
Controlled College or University Assistance Act of 1978 (25
U.S.C. 1801); and
``(4) the term `minority institution' has the meaning given
the term in section 365.''.
(c) Study Abroad Program.--Section 623 (as redesignated by
subsection(b)(1)) (20 U.S.C. 1131a)--
(1) in the section heading, by striking ``junior year'' and
inserting ``study'';
(2) in subsection (b)(2)--
(A) by inserting ``, or completing the third year of
study in the case of a summer abroad program,'' after
``study''; and
(B) by striking ``junior year'' and inserting
``study''; and
(3) in subsection (c)--
(A) in the matter preceding paragraph (1), by
striking ``junior year'' and inserting ``study'';
(B) in paragraph (1), by striking ``junior year''
and inserting ``study''; and
(C) in paragraph (2)--
(i) by striking ``one-half'' and inserting
``one-third''; and
(ii) by striking ``junior year'' and inserting
``study''.
(d) Internships.--Section 625 <<NOTE: 20 USC 1131c.>> (as
redesignated by subsection (b)(1)) (20 U.S.C. 1132c)--
(1) by striking ``The Institute'' and inserting ``(a) In
General.--The Institute''; and
(2) by adding at the end the following:
``(b) <<NOTE: Contracts.>> Postbaccalaureate Internships.--The
Institute shall enter into agreements with institutions of higher
education described in the first sentence of subsection (a) to conduct
internships for students who have completed study for a baccalaureate
[[Page 112 STAT. 1785]]
degree. The internship program authorized by this subsection shall--
``(1) assist the students to prepare for a master's degree
program;
``(2) be carried out with the assistance of the Woodrow
Wilson International Center for Scholars;
``(3) contain work experience for the students designed to
contribute to the students' preparation for a master's degree
program; and
``(4) be assisted by the Interagency Committee on Minority
Careers in International Affairs established under subsection
(c).
``(c) Interagency Committee on Minority Careers in International
Affairs.--
``(1) Establishment.--There is established in the executive
branch of the Federal Government an Interagency Committee on
Minority Careers in International Affairs composed of not less
than 7 members, including--
``(A) the Under Secretary for Farm and Foreign
Agricultural Services of the Department of Agriculture,
or the Under Secretary's designee;
``(B) the Assistant Secretary and Director General,
of the United States and Foreign Commercial Service of
the Department of Commerce, or the Assistant Secretary
and Director General's designee;
``(C) the Under Secretary of Defense for Personnel
and Readiness of the Department of Defense, or the Under
Secretary's designee;
``(D) the Assistant Secretary for Postsecondary
Education in the Department of Education, or the
Assistant Secretary's designee;
``(E) the Director General of the Foreign Service of
the Department of State, or the Director General's
designee;
``(F) the General Counsel of the Agency for
International Development, or the General Counsel's
designee; and
``(G) the Associate Director for Educational and
Cultural Affairs of the United States Information
Agency, or the Associate Director's designee.
``(2) Functions.--The Interagency Committee established by
this section shall--
``(A) on an annual basis inform the Secretary and
the Institute regarding ways to advise students
participating in the internship program assisted under
this section with respect to goals for careers in
international affairs;
``(B) locate for students potential internship
opportunities in the Federal Government related to
international affairs; and
``(C) promote policies in each department and agency
participating in the Committee that are designed to
carry out the objectives of this part.''.
(f ) Conforming Amendment.--Section 627 (as redesignated by
subsection (b)(1)) (20 U.S.C. 1131e) is amended by striking ``625'' and
inserting ``626''.
[[Page 112 STAT. 1786]]
(g) Authorization of Appropriations.--Section 628 (as redesignated
by subsection (b)(1)) (20 U.S.C. 1131f ), by striking ``1993'' and
inserting ``1999''.
SEC. 604. GENERAL PROVISIONS.
(a) Definitions.--Section 631(a) (20 U.S.C. 1132(a)) is
amended--
(1) by striking ``and'' at the end of paragraph (7);
(2) by striking the period at the end of paragraph (8) and
inserting ``; and''; and
(3) by inserting after paragraph (8) the following:
``(9) the term `educational programs abroad' means programs
of study, internships, or service learning outside the United
States which are part of a foreign language or other
international curriculum at the undergraduate or graduate
education levels.''.
(b) Repeal.--Section 632 (20 U.S.C. 1132-1) is repealed.
TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
SEC. 701. REVISION OF TITLE VII.
Title VII (20 U.S.C. 1132a et seq.) is amended to read as follows:
``TITLE VII--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS
``SEC. 700. PURPOSE. <<NOTE: 20 USC 1133.>>
``It is the purpose of this title--
``(1) to authorize national graduate fellowship programs--
``(A) in order to attract students of superior
ability and achievement, exceptional promise, and
demonstrated financial need, into high-quality graduate
programs and provide the students with the financial
support necessary to complete advanced degrees; and
``(B) that are designed to--
``(i) sustain and enhance the capacity for
graduate education in areas of national need; and
``(ii) encourage talented students to pursue
scholarly careers in the humanities, social
sciences, and the arts; and
``(2) to promote postsecondary programs.
``PART A--GRADUATE EDUCATION PROGRAMS
``Subpart 1--Jacob K. Javits Fellowship Program
``SEC. 701. AWARD OF JACOB K. JAVITS FELLOWSHIPS. <<NOTE: 20 USC
1134.>>
``(a) Authority and Timing of Awards.--The Secretary is authorized
to award fellowships in accordance with the provisions
[[Page 112 STAT. 1787]]
of this subpart for graduate study in the arts, humanities, and social
sciences by students of superior ability selected on the basis of
demonstrated achievement, financial need, and exceptional promise. The
fellowships shall be awarded to students who are eligible to receive any
grant, loan, or work assistance pursuant to section 484 and intend to
pursue a doctoral degree, except that fellowships may be granted to
students pursuing a master's degree in those fields in which the
master's degree is the terminal highest degree awarded in the area of
study. All funds appropriated in a fiscal year shall be obligated and
expended to the students for fellowships for use in the academic year
beginning after July 1 of the fiscal year following the fiscal year for
which the funds were appropriated. The fellowships shall be awarded for
only 1 academic year of study and shall be renewable for a period not to
exceed 4 years of study.
``(b) Designation of Fellows.--Students receiving awards under this
subpart shall be known as `Jacob K. Javits Fellows'.
``(c) Interruptions of Study.--The institution of higher education
may allow a fellowship recipient to interrupt periods of study for a
period not to exceed 12 months for the purpose of work, travel, or
independent study away from the campus, if such independent study is
supportive of the fellowship recipient's academic program and shall
continue payments for those 12-month periods during which the student is
pursuing travel or independent study supportive of the recipient's
academic program.
``(d) <<NOTE: Deadlines.>> Process and Timing of Competition.--The
Secretary shall make applications for fellowships under this part
available not later than October 1 of the academic year preceding the
academic year for which fellowships will be awarded, and shall announce
the recipients of fellowships under this section not later than March 1
of the academic year preceding the academic year for which the
fellowships are awarded.
``(e) Authority To Contract.--The Secretary is authorized to enter
into a contract with a nongovernmental agency to administer the program
assisted under this part if the Secretary determines that entering into
the contract is an efficient means of carrying out the program.
``SEC. 702. ALLOCATION OF FELLOWSHIPS. <<NOTE: 20 USC 1134a.>>
``(a) Fellowship Board.--
``(1) Appointment.--The Secretary shall appoint a Jacob K.
Javits Fellows Program Fellowship Board (hereinafter in this
subpart referred to as the `Board') consisting of 9 individuals
representative of both public and private institutions of higher
education who are especially qualified to serve on the Board. In
making appointments, the Secretary shall give due consideration
to the appointment of individuals who are highly respected in
the academic community. The Secretary shall assure that
individuals appointed to the Board are broadly representative of
a range of disciplines in graduate education in arts,
humanities, and social sciences.
``(2) Duties.--The Board shall--
``(A) establish general policies for the program
established by this subpart and oversee the program's
operation;
``(B) establish general criteria for the award of
fellowships in academic fields identified by the Board,
or, in the event that the Secretary enters into a
contract with
[[Page 112 STAT. 1788]]
a nongovernmental entity to administer the program
assisted under this subpart, by such nongovernmental
entity;
``(C) appoint panels of academic scholars with
distinguished backgrounds in the arts, humanities, and
social sciences for the purpose of selecting fellows,
except that, in the event that the Secretary enters into
a contract with a nongovernmental entity to administer
the program, such panels may be appointed by such
nongovernmental entity; and
``(D) <<NOTE: Reports.>> prepare and submit to the
Congress at least once in every 3-year period a report
on any modifications in the program that the Board
determines are appropriate.
``(3) Consultations.--In carrying out its responsibilities,
the Board shall consult on a regular basis with representatives
of the National Science Foundation, the National Endowment for
the Humanities, the National Endowment for the Arts, and
representatives of institutions of higher education and
associations of such institutions, learned societies, and
professional organizations.
``(4) Term.--The term of office of each member of the Board
shall be 4 years, except that any member appointed to fill a
vacancy shall serve for the remainder of the term for which the
predecessor of the member was appointed. No member may serve for
a period in excess of 6 years.
``(5) Initial meeting; vacancy.--The Secretary shall call
the first meeting of the Board, at which the first order of
business shall be the election of a Chairperson and a Vice
Chairperson, who shall serve until 1 year after the date of the
appointment of the Chairperson and Vice Chairperson. Thereafter
each officer shall be elected for a term of 2 years. In case a
vacancy occurs in either office, the Board shall elect an
individual from among the members of the Board to fill such
vacancy.
``(6) Quorum; additional meetings.--(A) A majority of the
members of the Board shall constitute a quorum.
``(B) The Board shall meet at least once a year or more
frequently, as may be necessary, to carry out the Board's
responsibilities.
``(7) Compensation.--Members of the Board, while serving on
the business of the Board, shall be entitled to receive
compensation at rates fixed by the Secretary, but not exceeding
the rate of basic pay payable for level IV of the Executive
Schedule, including travel time, and while so serving away from
their homes or regular places of business, the members may be
allowed travel expenses, including per diem in lieu of
subsistence, as authorized by section 5703 of title 5, United
States Code, for persons in Government service employed
intermittently.
``(b) Use of Selection Panels.--The recipients of fellowships shall
be selected in each designated field from among all applicants
nationwide in each field by distinguished panels appointed by the Board
to make such selections under criteria established by the Board, except
that, in the event that the Secretary enters into a contract with a
nongovernmental entity to administer the program, such panels may be
appointed by such nongovernmental entity. The number of recipients in
each field in each year shall
[[Page 112 STAT. 1789]]
not exceed the number of fellows allocated to that field for that year
by the Board.
``(c) Fellowship Portability.--Each recipient shall be entitled to
use the fellowship in a graduate program at any accredited institution
of higher education in which the recipient may decide to enroll.
``SEC. 703. STIPENDS. <<NOTE: 20 USC 1134b.>>
``(a) Award by Secretary.--The Secretary shall pay to individuals
awarded fellowships under this subpart such stipends as the Secretary
may establish, reflecting the purpose of this program to encourage
highly talented students to undertake graduate study as described in
this subpart. In the case of an individual who receives such
individual's first stipend under this subpart in academic year 1999-2000
or any succeeding academic year, such stipend shall be set at a level of
support equal to that provided by the National Science Foundation
graduate fellowships, except such amount shall be adjusted as necessary
so as not to exceed the fellow's demonstrated level of need determined
in accordance with part F of title IV.
``(b) Institutional Payments.--
``(1) In general.--(A) The Secretary shall (in addition to
stipends paid to individuals under this subpart) pay to the
institution of higher education, for each individual awarded a
fellowship under this subpart at such institution, an
institutional allowance. Except as provided in subparagraph (B),
such allowance shall be, for 1999-2000 and succeeding academic
years, the same amount as the institutional payment made for
1998-1999 under section 933(b) (as such section was in effect on
the day before the date of enactment of the Higher Education
Amendments of 1998) adjusted for 1999-2000 and annually
thereafter in accordance with inflation as determined by the
Department of Labor's Consumer Price Index for the previous
calendar year.
``(B) The institutional allowance paid under subparagraph
(A) shall be reduced by the amount the institution charges and
collects from a fellowship recipient for tuition and other
expenses as part of the recipient's instructional program.
``(2) <<NOTE: Effective date.>> Special rules.--(A)
Beginning March 1, 1992, any applicant for a fellowship under
this subpart who has been notified in writing by the Secretary
that such applicant has been selected to receive such a
fellowship and is subsequently notified that the fellowship
award has been withdrawn, shall receive such fellowship unless
the Secretary subsequently makes a determination that such
applicant submitted fraudulent information on the application.
``(B) Subject to the availability of appropriations, amounts
payable to an institution by the Secretary pursuant to this
subsection shall not be reduced for any purpose other than the
purposes specified under paragraph (1).
``SEC. 704. FELLOWSHIP CONDITIONS. <<NOTE: 20 USC 1134c.>>
``(a) Requirements for Receipt.--An individual awarded a fellowship
under the provisions of this subpart shall continue to receive payments
provided in section 703 only during such periods as the Secretary finds
that such individual is maintaining satisfactory proficiency in, and
devoting essentially full time to, study or research in the field in
which such fellowship was awarded,
[[Page 112 STAT. 1790]]
in an institution of higher education, and is not engaging in gainful
employment other than part-time employment by such institution in
teaching, research, or similar activities, approved by the Secretary.
``(b) Reports From Recipients.--The Secretary is authorized to
require reports containing such information in such form and filed at
such times as the Secretary determines necessary from any person awarded
a fellowship under the provisions of this subpart. The reports shall be
accompanied by a certificate from an appropriate official at the
institution of higher education, library, archive, or other research
center approved by the Secretary, stating that such individual is making
satisfactory progress in, and is devoting essentially full time to the
program for which the fellowship was awarded.
``SEC. 705. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 1134d.>>
``There are authorized to be appropriated $30,000,000 for fiscal
year 1999 and such sums as may be necessary for each of the 4 succeeding
fiscal years to carry out this subpart.
``Subpart 2--Graduate Assistance in Areas of National Need
``SEC. 711. <<NOTE: 20 USC 1135.>> GRANTS TO ACADEMIC DEPARTMENTS AND
PROGRAMS OF INSTITUTIONS.
``(a) Grant Authority.--
``(1) In general.--The Secretary shall make grants to
academic departments, programs and other academic units of
institutions of higher education that provide courses of study
leading to a graduate degree in order to enable such
institutions to provide assistance to graduate students in
accordance with this subpart.
``(2) Additional grants.--The Secretary may also make grants
to such departments, programs and other academic units of
institutions of higher education granting graduate degrees which
submit joint proposals involving nondegree granting institutions
which have formal arrangements for the support of doctoral
dissertation research with degree-granting institutions.
Nondegree granting institutions eligible for awards as part of
such joint proposals include any organization which--
``(A) is described in section 501(c)(3) of the
Internal Revenue Code of 1986, and is exempt from tax
under section 501(a) of such Code;
``(B) is organized and operated substantially to
conduct scientific and cultural research and graduate
training programs;
``(C) is not a private foundation;
``(D) has academic personnel for instruction and
counseling who meet the standards of the institution of
higher education in which the students are enrolled; and
``(E) has necessary research resources not otherwise
readily available in such institutions to such students.
``(b) Award and Duration of Grants.--
``(1) Awards.--The principal criterion for the award of
grants shall be the relative quality of the graduate programs
presented in competing applications. Consistent with an
allocation of awards based on quality of competing applications,
[[Page 112 STAT. 1791]]
the Secretary shall, in awarding such grants, promote an
equitable geographic distribution among eligible public and
private institutions of higher education.
``(2)Duration and Amount.--
``(A) Duration.--The Secretary shall award a grant
under this subpart for a period of 3 years.
``(B) Amount.--The Secretary shall award a grant to
an academic department, program or unit of an
institution of higher education under this subpart for a
fiscal year in an amount that is not less than $100,000
and not greater than $750,000.
``(3) Reallotment.--Whenever the Secretary determines that
an academic department, program or unit of an institution of
higher education is unable to use all of the amounts available
to the department, program or unit under this subpart, the
Secretary shall, on such dates during each fiscal year as the
Secretary may fix, reallot the amounts not needed to academic
departments, programs and units of institutions which can use
the grants authorized by this subpart.
``(c) Preference To Continuing Grant Recipients.--
``(1) In general.--The Secretary shall make new grant awards
under this subpart only to the extent that each previous grant
recipient under this subpart has received continued funding in
accordance with subsection (b)(2)(A).
``(2) Ratable reduction.--To the extent that appropriations
under this subpart are insufficient to comply with paragraph
(1), available funds shall be distributed by ratably reducing
the amounts required to be awarded under subsection (b)(2)(A).
``SEC. 712. INSTITUTIONAL ELIGIBILITY. <<NOTE: 20 USC 1135a.>>
``(a) Eligibility Criteria.--Any academic department, program or
unit of an institution of higher education that offers a program of
postbaccalaureate study leading to a graduate degree in an area of
national need (as designated under subsection (b)) may apply for a grant
under this subpart. No department, program or unit shall be eligible for
a grant unless the program of postbaccalaureate study has been in
existence for at least 4 years at the time of application for assistance
under this subpart.
``(b) Designation of Areas of National Need.--After consultation
with appropriate Federal and nonprofit agencies and organizations, the
Secretary shall designate areas of national need. In making such
designations, the Secretary shall take into account the extent to which
the interest in the area is compelling, the extent to which other
Federal programs support postbaccalaureate study in the area concerned,
and an assessment of how the program could achieve the most significant
impact with available resources.
``SEC. 713. CRITERIA FOR APPLICATIONS. <<NOTE: 20 USC 1135b.>>
``(a) Selection of Applications.--The Secretary shall make grants to
academic departments, programs and units of institutions of higher
education on the basis of applications submitted in accordance with
subsection (b). Applications shall be ranked on program quality by
review panels of nationally recognized scholars and evaluated on the
quality and effectiveness of the academic program and the achievement
and promise of the students to be served. To the extent possible
(consistent with other provisions of this
[[Page 112 STAT. 1792]]
section), the Secretary shall make awards that are consistent with
recommendations of the review panels.
``(b) Contents of Applications.--An academic department, program or
unit of an institution of higher education, in the department, program
or unit's application for a grant, shall--
``(1) describe the current academic program of the applicant
for which the grant is sought;
``(2) provide assurances that the applicant will provide,
from other non-Federal sources, for the purposes of the
fellowship program under this subpart an amount equal to at
least 25 percent of the amount of the grant received under this
subpart, which contribution may be in cash or in kind, fairly
valued;
``(3) set forth policies and procedures to assure that, in
making fellowship awards under this subpart, the institution
will seek talented students from traditionally underrepresented
backgrounds, as determined by the Secretary;
``(4) describe the number, types, and amounts of the
fellowships that the applicant intends to offer with grant funds
provided under this part;
``(5) set forth policies and procedures to assure that, in
making fellowship awards under this subpart, the institution
will make awards to individuals who--
``(A) have financial need, as determined under part
F of title IV;
``(B) have excellent academic records in their
previous programs of study; and
``(C) plan to pursue the highest possible degree
available in their course of study;
``(6) set forth policies and procedures to ensure that
Federal funds made available under this subpart for any fiscal
year will be used to supplement and, to the extent practical,
increase the funds that would otherwise be made available for
the purpose of this subpart and in no case to supplant those
funds;
``(7) provide assurances that, in the event that funds made
available to the academic department, program or unit under this
subpart are insufficient to provide the assistance due a student
under the commitment entered into between the academic
department, program or unit and the student, the academic
department, program or unit will, from any funds available to
the department, program or unit, fulfill the commitment to the
student;
``(8) provide that the applicant will comply with the
limitations set forth in section 715;
``(9) provide assurances that the academic department will
provide at least 1 year of supervised training in instruction
for students; and
``(10) include such other information as the Secretary may
prescribe.
``SEC. 714. AWARDS TO GRADUATE STUDENTS. <<NOTE: 20 USC 1135c.>>
``(a) Commitments to Graduate Students.--
``(1) In general.--An academic department, program or unit
of an institution of higher education shall make commitments to
graduate students who are eligible students under section 484
(including students pursuing a doctoral degree after having
completed a master's degree program at an institution
[[Page 112 STAT. 1793]]
of higher education) at any point in their graduate study to
provide stipends for the length of time necessary for a student
to complete the course of graduate study, but in no case longer
than 5 years.
``(2) Special rule.--No such commitments shall be made to
students under this subpart unless the academic department,
program or unit has determined adequate funds are available to
fulfill the commitment from funds received or anticipated under
this subpart, or from institutional funds.
``(b) Amount of Stipends.--The Secretary shall make payments to
institutions of higher education for the purpose of paying stipends to
individuals who are awarded fellowships under this subpart. The stipends
the Secretary establishes shall reflect the purpose of the program under
this subpart to encourage highly talented students to undertake graduate
study as described in this subpart. In the case of an individual who
receives such individual's first stipend under this subpart in academic
year 1999-2000 or any succeeding academic year, such stipend shall be
set at a level of support equal to that provided by the National Science
Foundation graduate fellowships, except such amount shall be adjusted as
necessary so as not to exceed the fellow's demonstrated level of need as
determined under part F of title IV.
``(c) Treatment of Institutional Payments.--An institution of higher
education that makes institutional payments for tuition and fees on
behalf of individuals supported by fellowships under this subpart in
amounts that exceed the institutional payments made by the Secretary
pursuant to section 716(a) may count such excess toward the amounts the
institution is required to provide pursuant to section 714(b)(2).
``(d) Academic Progress Required.--Notwithstanding the provisions of
subsection (a), no student shall receive an award--
``(1) except during periods in which such student is
maintaining satisfactory progress in, and devoting essentially
full time to, study or research in the field in which such
fellowship was awarded; or
``(2) if the student is engaging in gainful employment other
than part-time employment involved in teaching, research, or
similar activities determined by the institution to be in
support of the student's progress towards a degree.
``SEC. 715. ADDITIONAL ASSISTANCE FOR COST OF EDUCATION. <<NOTE: 20 USC
1135d.>>
``(a) Institutional Payments.--
``(1) In general.--The Secretary shall (in addition to
stipends paid to individuals under this subpart) pay to the
institution of higher education, for each individual awarded a
fellowship under this subpart at such institution, an
institutional allowance. Except as provided in paragraph (2),
such allowance shall be, for 1999-2000 and succeeding academic
years, the same amount as the institutional payment made for
1998-1999 adjusted annually thereafter in accordance with
inflation as determined by the Department of Labor's Consumer
Price Index for the previous calendar year.
``(2) Reduction.--The institutional allowance paid under
paragraph (1) shall be reduced by the amount the institution
charges and collects from a fellowship recipient for tuition and
other expenses as part of the recipient's instructional program.
[[Page 112 STAT. 1794]]
``(b) Use for Overhead Prohibited.--Funds made available pursuant to
this subpart may not be used for the general operational overhead of the
academic department or program.
``SEC. 716. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 1135ee.>>
``There are authorized to be appropriated $35,000,000 for fiscal
year 1999 and such sums as may be necessary for each of the 4 succeeding
fiscal years to carry out this subpart.
``Subpart 3--Thurgood Marshall Legal Educational Opportunity Program
``SEC. 721. LEGAL EDUCATIONAL OPPORTUNITY PROGRAM. <<NOTE: 20 USC
1136.>>
``(a) Program Authority.--The Secretary shall carry out a program to
be known as the `Thurgood Marshall Legal Educational Opportunity
Program' designed to provide low-income, minority, or disadvantaged
college students with the information, preparation, and financial
assistance to gain access to and complete law school study.
``(b) Eligibility.--A college student is eligible for assistance
under this section if the student is--
``(1) from a low-income family;
``(2) a minority; or
``(3) from an economically or otherwise disadvantaged
background.
``(c) Contract or Grant Authorized.--The Secretary is authorized to
enter into a contract with, or make a grant to, the Council on Legal
Education Opportunity, for a period of not less than 5 years--
``(1) to identify college students who are from low-income
families, are minorities, or are from disadvantaged backgrounds
described in subsection (b)(3);
``(2) to prepare such students for study at accredited law
schools;
``(3) to assist such students to select the appropriate law
school, make application for entry into law school, and receive
financial assistance for such study;
``(4) to provide support services to such students who are
first-year law students to improve retention and success in law
school studies; and
``(5) to motivate and prepare such students with respect to
law school studies and practice in low-income communities.
``(d) Services Provided.--In carrying out the purposes described in
subsection (c), the contract or grant shall provide for the delivery of
services through prelaw information resource centers, summer institutes,
midyear seminars, and other educational activities, conducted under this
section. Such services may include--
``(1) information and counseling regarding--
``(A) accredited law school academic programs,
especially tuition, fees, and admission requirements;
``(B) course work offered and required for
graduation;
``(C) faculty specialties and areas of legal
emphasis; and
``(D) undergraduate preparatory courses and
curriculum selection;
[[Page 112 STAT. 1795]]
``(2) tutoring and academic counseling, including assistance
in preparing for bar examinations;
``(3) prelaw mentoring programs, involving law school
faculty, members of State and local bar associations, and
retired and sitting judges, justices, and magistrates;
``(4) assistance in identifying preparatory courses and
material for the law school aptitude or admissions tests;
``(5) summer institutes for Thurgood Marshall Fellows that
expose the Fellows to a rigorous curriculum that emphasizes
abstract thinking, legal analysis, research, writing, and
examination techniques; and
``(6) midyear seminars and other educational activities that
are designed to reinforce reading, writing, and studying skills
of Thurgood Marshall Fellows.
``(e) Duration of the Provision of Services.--The services described
in subsection (d) may be provided--
``(1) prior to the period of law school study;
``(2) during the period of law school study; and
``(3) during the period following law school study and prior
to taking a bar examination.
``(f ) Subcontracts and Subgrants.--For the purposes of planning,
developing, or delivering one or more of the services described in
subsection (d), the Council on Legal Education Opportunity shall enter
into subcontracts with, and make subgrants to, institutions of higher
education, law schools, public and private agencies and organizations,
and combinations of such institutions, schools, agencies, and
organizations.
``(g) Stipends.--The Secretary shall annually establish the maximum
stipend to be paid (including allowances for participant travel and for
the travel of the dependents of the participant) to Thurgood Marshall
Fellows for the period of participation in summer institutes and midyear
seminars. A Fellow may be eligible for such a stipend only if the
Thurgood Marshall Fellow maintains satisfactory academic progress toward
the Juris Doctor or Bachelor of Laws degree, as determined by the
respective institutions.
``(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $5,000,000 for fiscal year 1999
and each of the 4 succeeding fiscal years.
``Subpart 4--General Provisions
``SEC. 731. ADMINISTRATIVE PROVISIONS FOR SUBPARTS 1, 2, AND
3. <<NOTE: 20 USC 1137.>>
``(a) Coordinated Administration.--In carrying out the purpose
described in section 700(1), the Secretary shall provide for coordinated
administration and regulation of graduate programs assisted under
subparts 1, 2, and 3 with other Federal programs providing assistance
for graduate education in order to minimize duplication and improve
efficiency to ensure that the programs are carried out in a manner most
compatible with academic practices and with the standard timetables for
applications for, and notifications of acceptance to, graduate programs.
``(b) Hiring Authority.--For purposes of carrying out subparts 1, 2,
and 3, the Secretary shall appoint, without regard to the provisions of
title 5, United States Code, that govern appointments in the competitive
service, such administrative and technical employees, with the
appropriate educational background, as shall
[[Page 112 STAT. 1796]]
be needed to assist in the administration of such parts. The employees
shall be paid without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of such title relating to classification
and General Schedule pay rates.
``(c) Use for Religious Purposes Prohibited.--No institutional
payment or allowance under section 703(b) or 715(a) shall be paid to a
school or department of divinity as a result of the award of a
fellowship under subpart 1 or 2, respectively, to an individual who is
studying for a religious vocation.
``(d) Evaluation.--The Secretary shall evaluate the success of
assistance provided to individuals under subpart 1, 2, or 3 with respect
to graduating from their degree programs, and placement in faculty and
professional positions.
``(e) Continuation Awards.--The Secretary, using funds appropriated
to carry out subparts 1 and 2, and before awarding any assistance under
such parts to a recipient that did not receive assistance under part C
or D of title IX (as such parts were in effect prior to the date of
enactment of the Higher Education Amendments of 1998) shall continue to
provide funding to recipients of assistance under such part C or D (as
so in effect), as the case may be, pursuant to any multiyear award of
such assistance.
``PART B--FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION
``SEC. 741. <<NOTE: 20 USC 1138.>> FUND FOR THE IMPROVEMENT OF
POSTSECONDARY
EDUCATION.
``(a) Authority.--The Secretary is authorized to make grants to, or
enter into contracts with, institutions of higher education,
combinations of such institutions, and other public and private
nonprofit institutions and agencies, to enable such institutions,
combinations, and agencies to improve postsecondary education
opportunities by--
``(1) encouraging the reform, innovation, and improvement of
postsecondary education, and providing equal educational
opportunity for all;
``(2) the creation of institutions, programs, and joint
efforts involving paths to career and professional training, and
combinations of academic and experiential learning;
``(3) the establishment of institutions and programs based
on the technology of communications;
``(4) the carrying out, in postsecondary educational
institutions, of changes in internal structure and operations
designed to clarify institutional priorities and purposes;
``(5) the design and introduction of cost-effective methods
of instruction and operation;
``(6) the introduction of institutional reforms designed to
expand individual opportunities for entering and reentering
institutions and pursuing programs of study tailored to
individual needs;
``(7) the introduction of reforms in graduate education, in
the structure of academic professions, and in the recruitment
and retention of faculties; and
``(8) the creation of new institutions and programs for
examining and awarding credentials to individuals, and the
introduction of reforms in current institutional practices
related thereto.
[[Page 112 STAT. 1797]]
``(b) Planning Grants.--The Secretary is authorized to make planning
grants to institutions of higher education for the development and
testing of innovative techniques in postsecondary education. Such grants
shall not exceed $20,000.
``SEC. 742. <<NOTE: 20 USC 1138a.>> BOARD OF THE FUND FOR THE
IMPROVEMENT OF POSTSECONDARY EDUCATION.
``(a) Establishment.--There is established a National Board of the
Fund for the Improvement of Postsecondary Education (in this part
referred to as the `Board'). The Board shall consist of 15 members
appointed by the Secretary for overlapping 3-year terms. A majority of
the Board shall constitute a quorum. Any member of the Board who has
served for 6 consecutive years shall thereafter be ineligible for
appointment to the Board during a 2-year period following the expiration
of such sixth year.
``(b) Membership.--
``(1) In general.--The Secretary shall designate one of the
members of the Board as Chairperson of the Board. A majority of
the members of the Board shall be public interest
representatives, including students, and a minority shall be
educational representatives. All members selected shall be
individuals able to contribute an important perspective on
priorities for improvement in postsecondary education and
strategies of educational and institutional change.
``(2) Appointment of director.--The Secretary shall appoint
the Director of the Fund for the Improvement of Postsecondary
Education (hereafter in this part referred to as the
`Director').
``(c) Duties.--The Board shall--
``(1) advise the Secretary and the Director on priorities
for the improvement of postsecondary education and make such
recommendations as the Board may deem appropriate for the
improvement of postsecondary education and for the evaluation,
dissemination, and adaptation of demonstrated improvements in
postsecondary educational practice;
``(2) advise the Secretary and the Director on the operation
of the Fund for the Improvement of Postsecondary Education,
including advice on planning documents, guidelines, and
procedures for grant competitions prepared by the Fund; and
``(3) meet at the call of the Chairperson, except that the
Board shall meet whenever one-third or more of the members
request in writing that a meeting be held.
``(d) Information and Assistance.--The Director shall make available
to the Board such information and assistance as may be necessary to
enable the Board to carry out its functions.
``SEC. 743. ADMINISTRATIVE PROVISIONS. <<NOTE: 20 USC 1138b.>>
``(a) Technical Employees.--The Secretary may appoint, for terms not
to exceed 3 years, without regard to the provisions of title 5, United
States Code, governing appointments in the competitive service, not more
than 7 technical employees to administer this part who may be paid
without regard to the provisions of chapter 51 and subchapter III of
chapter 53 of such title relating to classification and General Schedule
pay rates.
``(b) Procedures.--The Director shall establish procedures for
reviewing and evaluating grants and contracts made or entered into under
this part. Procedures for reviewing grant applications or contracts for
financial assistance under this section may not
[[Page 112 STAT. 1798]]
be subject to any review outside of officials responsible for the
administration of the Fund for the Improvement of Postsecondary
Education.
``SEC. 744. SPECIAL PROJECTS. <<NOTE: 20 USC 1138c.>>
``(a) Grant Authority.--The Director is authorized to make grants to
institutions of higher education, or consortia thereof, and such other
public agencies and nonprofit organizations as the Director deems
necessary for innovative projects concerning one or more areas of
particular national need identified by the Director.
``(b) Application.--No grant shall be made under this part unless an
application is made at such time, in such manner, and contains or is
accompanied by such information as the Secretary may require.
``(c) Areas of National Need.--Areas of national need shall
initially include, but shall not be limited to, the following:
``(1) Institutional restructuring to improve learning and
promote productivity, efficiency, quality improvement, and cost
and price control.
``(2) Articulation between 2- and 4-year institutions of
higher education, including developing innovative methods for
ensuring the successful transfer of students from 2- to 4-year
institutions of higher education.
``(3) Evaluation and dissemination of model programs.
``(4) International cooperation and student exchange among
postsecondary educational institutions.
``SEC. 745. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 1138d.>>
``There are authorized to be appropriated to carry out this part
$30,000,000 for fiscal year 1999 and such sums as may be necessary for
each of the 4 succeeding fiscal years.
``PART C--URBAN COMMUNITY SERVICE
``SEC. 751. FINDINGS. <<NOTE: 20 USC 1139.>>
``The Congress finds that--
``(1) the Nation's urban centers are facing increasingly
pressing problems and needs in the areas of economic
development, community infrastructure and service, social
policy, public health, housing, crime, education, environmental
concerns, planning and work force preparation;
``(2) there are, in the Nation's urban institutions, people
with underutilized skills, knowledge, and experience who are
capable of providing a vast range of services toward the
amelioration of the problems described in paragraph (1);
``(3) the skills, knowledge and experience in these urban
institutions, if applied in a systematic and sustained manner,
can make a significant contribution to the solution of such
problems; and
``(4) the application of such skills, knowledge and
experience is hindered by the limited funds available to
redirect attention to solutions to such urban problems.
``SEC. 752. PURPOSE; PROGRAM AUTHORIZED. <<NOTE: 20 USC 1139a.>>
``(a) Purpose.--It is the purpose of this part to provide incentives
to urban academic institutions to enable such institutions
[[Page 112 STAT. 1799]]
to work with private and civic organizations to devise and implement
solutions to pressing and severe problems in their communities.
``(b) Program Authorized.--The Secretary is authorized to carry out
a program of providing assistance to eligible institutions to enable
such institutions to carry out the activities described in section 754
in accordance with the provisions of this part.
``SEC. 753. APPLICATION FOR URBAN COMMUNITY SERVICE GRANTS. <<NOTE: 20
USC 1139b.>>
``(a) Application.--
``(1) In general.--An eligible institution seeking
assistance under this part shall submit to the Secretary an
application at such time, in such form, and containing or
accompanied by such information and assurances as the Secretary
may require by regulation.
``(2) Contents.--Each application submitted pursuant to
paragraph (1) shall--
``(A) describe the activities and services for which
assistance is sought; and
``(B) include a plan that is agreed to by the
members of a consortium that includes, in addition to
the eligible institution, one or more of the following
entities:
``(i) A community college.
``(ii) An urban school system.
``(iii) A local government.
``(iv) A business or other employer.
``(v) A nonprofit institution.
``(3) Waiver.--The Secretary may waive the consortium
requirements described in paragraph (2) for any applicant who
can demonstrate to the satisfaction of the Secretary that the
applicant has devised an integrated and coordinated plan which
meets the purpose of this part.
``(b) Priority in Selection of Applications.--The Secretary shall
give priority to applications that propose to conduct joint projects
supported by other local, State, and Federal programs. In addition, the
Secretary shall give priority to eligible institutions submitting
applications that demonstrate the eligible institution's commitment to
urban community service.
``(c) <<NOTE: Regulations. Federal Register,
publication.>> Selection Procedures.--The Secretary shall, by
regulation, develop a formal procedure for the submission of
applications under this part and shall publish in the Federal Register
an announcement of that procedure and the availability of funds under
this part.
``SEC. 754. ALLOWABLE ACTIVITIES. <<NOTE: 20 USC 1139c.>>
``Funds made available under this part shall be used to support
planning, applied research, training, resource exchanges or technology
transfers, the delivery of services, or other activities the purpose of
which is to design and implement programs to assist urban communities to
meet and address their pressing and severe problems, such as the
following:
``(1) Work force preparation.
``(2) Urban poverty and the alleviation of such poverty.
``(3) Health care, including delivery and access.
``(4) Underperforming school systems and students.
``(5) Problems faced by the elderly and individuals with
disabilities in urban settings.
``(6) Problems faced by families and children.
[[Page 112 STAT. 1800]]
``(7) Campus and community crime prevention, including
enhanced security and safety awareness measures as well as
coordinated programs addressing the root causes of crime.
``(8) Urban housing.
``(9) Urban infrastructure.
``(10) Economic development.
``(11) Urban environmental concerns.
``(12) Other problem areas which participants in the
consortium described in section 753(a)(2)(B) concur are of high
priority in the urban area.
``(13)(A) Problems faced by individuals with disabilities
regarding accessibility to institutions of higher education and
other public and private community facilities.
``(B) Amelioration of existing attitudinal barriers that
prevent full inclusion by individuals with disabilities in their
community.
``(14) Improving access to technology in local communities.
``SEC. 755. PEER REVIEW. <<NOTE: 20 USC 1139d.>>
``The Secretary shall designate a peer review panel to review
applications submitted under this part and make recommendations for
funding to the Secretary. In selecting the peer review panel, the
Secretary may consult with other appropriate Cabinet-level officials and
with non-Federal organizations, to ensure that the panel will be
geographically balanced and be composed of representatives from public
and private institutions of higher education, labor, business, and State
and local government, who have expertise in urban community service or
in education.
``SEC. 756. DISBURSEMENT OF FUNDS. <<NOTE: 20 USC 1139e.>>
``(a) Multiyear Availability.--Subject to the availability of
appropriations, grants under this part may be made on a multiyear basis,
except that no institution, individually or as a participant in a
consortium of such institutions, may receive such a grant for more than
5 years.
``(b) Equitable Geographic Distribution.--The Secretary shall award
grants under this part in a manner that achieves an equitable geographic
distribution of such grants.
``(c) Matching Requirement.--An applicant under this part and the
local governments associated with the application shall contribute to
the conduct of the program supported by the grant an amount from non-
Federal funds equal to at least one-fourth of the amount of the grant,
which contribution may be in cash or in kind.
``SEC. 757. DESIGNATION OF URBAN GRANT INSTITUTIONS. <<NOTE: 20 USC
1139f.>>
``The <<NOTE: Publication. Records. Establishment.>> Secretary shall
publish a list of eligible institutions under this part and shall
designate these institutions of higher education as `Urban Grant
Institutions'. The Secretary shall establish a national network of Urban
Grant Institutions so that the results of individual projects achieved
in one metropolitan area can then be generalized, disseminated,
replicated, and applied throughout the Nation. The information developed
as a result of this section shall be made available to Urban Grant
Institutions and to any other interested institution of higher education
by any appropriate means.
[[Page 112 STAT. 1801]]
``SEC. 758. DEFINITIONS. <<NOTE: 20 USC 1139g.>>
``As used in this part:
``(1) Urban area.--The term `urban area' means a
metropolitan statistical area having a population of not less
than 350,000, or two contiguous metropolitan statistical areas
having a population of not less than 350,000, or, in any State
which does not have a metropolitan statistical area which has
such a population, the eligible entity in the State submitting
an application under section 753, or, if no such entity submits
an application, the Secretary, shall designate one urban area
for the purposes of this part.
``(2) Eligible institution.--The term `eligible institution'
means--
``(A) a nonprofit municipal university, established
by the governing body of the city in which it is
located, and operating as of the date of enactment of
the Higher Education Amendments of 1992 under that
authority; or
``(B) an institution of higher education, or a
consortium of such institutions any one of which meets
all of the requirements of this paragraph, which--
``(i) is located in an urban area;
``(ii) draws a substantial portion of its
undergraduate students from the urban area in
which such institution is located, or from
contiguous areas;
``(iii) carries out programs to make
postsecondary educational opportunities more
accessible to residents of such urban area, or
contiguous areas;
``(iv) has the present capacity to provide
resources responsive to the needs and priorities
of such urban area and contiguous areas;
``(v) offers a range of professional,
technical, or graduate programs sufficient to
sustain the capacity of such institution to
provide such resources; and
``(vi) has demonstrated and sustained a sense
of responsibility to such urban area and
contiguous areas and the people of such areas.
``SEC. 759. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 1139h.>>
``There are authorized to be appropriated $20,000,000 for fiscal
year 1999 and such sums as may be necessary for each of the 4 succeeding
fiscal years to carry out this part.
``PART D--DEMONSTRATION PROJECTS TO ENSURE STUDENTS WITH DISABILITIES
RECEIVE A QUALITY HIGHER EDUCATION
``SEC. 761. PURPOSES. <<NOTE: 20 USC 1140.>>
``It is the purpose of this part to support model demonstration
projects to provide technical assistance or professional development for
faculty and administrators in institutions of higher education in order
to provide students with disabilities a quality postsecondary education.
``SEC. 762. GRANTS AUTHORIZED. <<NOTE: 20 USC 1140a.>>
``(a) Competitive Grants Authorized.--The Secretary may award
grants, contracts, and cooperative agreements, on a competitive basis,
to institutions of higher education, of which at least
[[Page 112 STAT. 1802]]
two such grants shall be awarded to institutions that provide
professional development and technical assistance in order for students
with learning disabilities to receive a quality postsecondary education.
``(b) Duration; Activities.--
``(1) Duration.--Grants under this part shall be awarded for
a period of 3 years.
``(2) Authorized activities.--Grants under this part shall
be used to carry out one or more of the following activities:
``(A) Teaching methods and strategies.--The
development of innovative, effective, and efficient
teaching methods and strategies to provide faculty and
administrators with the skills and supports necessary to
teach students with disabilities. Such methods and
strategies may include inservice training, professional
development, customized and general technical
assistance, workshops, summer institutes, distance
learning, and training in the use of assistive and
educational technology.
``(B) Synthesizing research and information.--
Synthesizing research and other information related to
the provision of postsecondary educational services to
students with disabilities.
``(C) Professional development and training
sessions.--Conducting professional development and
training sessions for faculty and administrators from
other institutions of higher education to enable the
faculty and administrators to meet the postsecondary
educational needs of students with disabilities.
``(3) Mandatory evaluation and dissemination.--Grants under
this part shall be used for evaluation, and dissemination to
other institutions of higher education, of the information
obtained through the activities described in subparagraphs (A)
through (C).
``(c) Considerations in Making Awards.--In awarding grants,
contracts, or cooperative agreements under this section, the Secretary
shall consider the following:
``(1) Geographic distribution.--Providing an equitable
geographic distribution of such grants.
``(2) Rural and urban areas.--Distributing such grants to
urban and rural areas.
``(3) Range and type of institution.--Ensuring that the
activities to be assisted are developed for a range of types and
sizes of institutions of higher education.
``(4) Prior experience or exceptional programs.--
Institutions of higher education with demonstrated prior
experience in, or exceptional programs for, meeting the
postsecondary educational needs of students with disabilities.
``SEC. 763. APPLICATIONS. <<NOTE: 20 USC 1140b.>>
``Each institution of higher education desiring to receive a grant,
contract, or cooperative agreement under this part shall submit an
application to the Secretary at such time, in such manner, and
accompanied by such information as the Secretary may require. Each
application shall include--
``(1) a description of how such institution plans to address
each of the activities required under this part;
[[Page 112 STAT. 1803]]
``(2) a description of how the institution consulted with a
broad range of people within the institution to develop
activities for which assistance is sought; and
``(3) a description of how the institution will coordinate
and collaborate with the office that provides services to
students with disabilities within the institution.
``SEC. 764. RULE OF CONSTRUCTION. <<NOTE: 20 USC 1140c.>>
``Nothing in this part shall be construed to impose any additional
duty, obligation, or responsibility on an institution of higher
education or on the institution's faculty, administrators, or staff than
are required by section 504 of the Rehabilitation Act of 1973 and the
Americans with Disabilities Act of 1990.
``SEC. 765. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 1140d.>>
``There are authorized to be appropriated for this part $10,000,000
for fiscal year 1999 and such sums as may be necessary for each of the 4
succeeding fiscal years.''.
SEC. 702. REPEALS.
Except as otherwise provided in section 301(a), titles VIII (20
U.S.C. 1133 et seq.), IX (20 U.S.C. 1134 et seq.), X (20 U.S.C. 1135 et
seq.), XI (20 U.S.C. 1136), and XII (20 U.S.C. 1141) are repealed.
TITLE VIII--STUDIES, REPORTS, AND RELATED PROGRAMS
PART A--STUDIES
SEC. 801. <<NOTE: 20 USC 1018 note.>> STUDY OF MARKET MECHANISMS IN
FEDERAL STUDENT LOAN PROGRAMS.
(a) Study Required.--The Comptroller General and the Secretary of
Education shall convene a study group including the Secretary of the
Treasury, the Director of the Office of Management and Budget, the
Director of the Congressional Budget Office, representatives of entities
making loans under part B of title IV of the Higher Education Act of
1965, representatives of other entities in the financial services
community, representatives of other participants in the student loan
programs, and such other individuals as the Comptroller General and the
Secretary may designate. The Comptroller General and Secretary, in
consultation with the study group, shall design and conduct a study to
identify and evaluate means of establishing a market mechanism for the
delivery of loans made pursuant to such title IV.
(b) Design of Study.--The study required under this section shall
identify not fewer than 3 different market mechanisms for use in
determining lender return on student loans while continuing to meet the
other objectives of the programs under parts B and D of such title IV,
including the provision of loans to all eligible students. Consideration
may be given to the use of auctions and to the feasibility of
incorporating income-contingent repayment options into the student loan
system and requiring borrowers to repay through income tax withholding.
(c) Evaluation of Market Mechanisms.--The mechanisms identified
under subsection (b) shall be evaluated in terms of the following areas:
[[Page 112 STAT. 1804]]
(1) The cost or savings of loans to or for borrowers,
including parent borrowers.
(2) The cost or savings of the mechanism to the Federal
Government.
(3) The cost, effect, and distribution of Federal subsidies
to or for participants in the program.
(4) The ability of the mechanism to accommodate the
potential distribution of subsidies to students through an
income-contingent repayment option.
(5) The effect on the simplicity of the program, including
the effect of the plan on the regulatory burden on students,
institutions, lenders, and other program participants.
(6) The effect on investment in human capital and resources,
loan servicing capability, and the quality of service to the
borrower.
(7) The effect on the diversity of lenders, including
community-based lenders, originating and secondary market
lenders.
(8) The effect on program integrity.
(9) The degree to which the mechanism will provide market
incentives to encourage continuous improvement in the delivery
and servicing of loans.
(10) The availability of loans to students by region, income
level, and by categories of institutions.
(11) The proposed Federal and State role in the operation of
the mechanism.
(12) A description of how the mechanism will be administered
and operated.
(13) Transition procedures, including the effect on loan
availability during a transition period.
(14) Any other areas the study group may include.
(d) <<NOTE: Deadlines. Public information.>> Preliminary Findings
and Publication of Study.--Not later than November 15, 2000, the study
group shall make the group's preliminary findings, including any
additional or dissenting views, available to the public with a 60-day
request for public comment. The study group shall review these comments
and the Comptroller General and the Secretary shall transmit a final
report, including any additional or dissenting views, to the Committee
on Education and the Workforce of the House of Representatives, the
Committee on Labor and Human Resources of the Senate, and the Committees
on the Budget of the House of Representatives and the Senate not later
than May 15, 2001.
SEC. 802. STUDY OF THE FEASIBILITY OF ALTERNATIVE FINANCIAL INSTRUMENTS
FOR DETERMINING LENDER YIELDS.
(a) Study Required.--The Comptroller General and the Secretary of
Education shall convene a study group including the Secretary of the
Treasury, the Director of the Office of Management and Budget, the
Director of the Congressional Budget Office, representatives of entities
making loans under part B of title IV of the Higher Education Act of
1965, representatives of other entities in the financial services
community, representatives of other participants in the student loan
programs, and such other individuals as the Comptroller General and the
Secretary of Education may designate. The Comptroller General and the
Secretary of Education, in consultation with the study group, shall
evaluate the 91-day Treasury bill, 30-day and 90-day commercial paper,
and
[[Page 112 STAT. 1805]]
the 90-day London Interbank Offered Rate (in this section referred to as
``LIBOR'') in terms of the following:
(1) The historical liquidity of the market for each, and a
historical comparison of the spread between: (A) the 30-day and
90-day commercial paper rate, respectively, and the 91-day
Treasury bill rate; and (B) the spread between the LIBOR and the
91-day Treasury bill rate.
(2) The historical volatility of the rates and projections
of future volatility.
(3) Recent changes in the liquidity of the market for each
such instrument in a balanced Federal budget environment and a
low-interest rate environment, and projections of future
liquidity assuming the Federal budget remains in balance.
(4) The cost or savings to lenders with small, medium, and
large student loan portfolios of basing lender yield on either
the 30-day or 90-day commercial paper rate or the LIBOR while
continuing to base the borrower rate on the 91-day Treasury
bill, and the effect of such change on the diversity of lenders
participating in the program.
(5) The cost or savings to the Federal Government of basing
lender yield on either the 30-day or 90-day commercial paper
rate or the LIBOR while continuing to base the borrower rate on
the 91-day Treasury bill.
(6) Any possible risks or benefits to the student loan
programs under the Higher Education Act of 1965 and to student
borrowers.
(7) Any other areas the Comptroller General and the
Secretary of Education agree to include.
(b) <<NOTE: Deadline.>> Report Required.--Not later than 6 months
after the date of enactment of this Act, the Comptroller General and the
Secretary shall submit a final report regarding the findings of the
study group to the Committee on Education and the Workforce of the House
of Representatives and the Committee on Labor and Human Resources of the
Senate.
SEC. 803. STUDENT-RELATED DEBT STUDY REQUIRED. <<NOTE: 20 USC 1015
note.>>
(a) In General.--The Secretary of Education shall conduct a study
that analyzes the distribution and increase in student-related debt in
terms of--
(1) demographic characteristics, such as race or ethnicity,
and family income;
(2) type of institution and whether the institution is a
public or private institution;
(3) loan source, such as Federal, State, institutional or
other, and, if the loan source is Federal, whether the loan is
or is not subsidized;
(4) academic field of study;
(5) parent loans, and whether the parent loans are federally
guaranteed, private, or property-secured such as home equity
loans; and
(6) relation of student debt or anticipated debt to--
(A) students' decisions about whether and where to
enroll in college and whether or how much to borrow in
order to attend college;
(B) the length of time it takes students to earn
baccalaureate degrees;
[[Page 112 STAT. 1806]]
(C) students' decisions about whether and where to
attend graduate school;
(D) graduates' employment decisions;
(E) graduates' burden of repayment as reflected by
the graduates' ability to save for retirement or invest
in a home; and
(F) students' future earnings.
(b) <<NOTE: Deadline.>> Report.--After conclusion of the study
required by subsection (a), the Secretary of Education shall submit a
final report regarding the findings of the study to the Committee on
Labor and Human Resources of the Senate and the Committee on Education
and the Workforce of the House of Representatives not later than 18
months after the date of enactment of the Higher Education Amendments of
1998.
(c) Information.--After the study and report under this section are
concluded, the Secretary of Education shall determine which information
described in subsection (a) would be useful for families to know and
shall include such information as part of the comparative information
provided to families about the costs of higher education under the
provisions of part C of title I.
SEC. 804. STUDY OF TRANSFER OF CREDITS. <<NOTE: 20 USC 1099b note.>>
(a) Study Required.--The Secretary of Education shall conduct a
study to evaluate policies or practices instituted by recognized
accrediting agencies or associations regarding the treatment of the
transfer of credits from one institution of higher education to another,
giving particular attention to--
(1) adopted policies regarding the transfer of credits
between institutions of higher education which are accredited by
different agencies or associations and the reasons for such
policies;
(2) adopted policies regarding the transfer of credits
between institutions of higher education which are accredited by
national agencies or associations and institutions of higher
education which are accredited by regional agencies and
associations and the reasons for such policies;
(3) the effect of the adoption of such policies on students
transferring between such institutions of higher education,
including time required to matriculate, increases to the student
of tuition and fees paid, and increases to the student with
regard to student loan burden;
(4) the extent to which Federal financial aid is awarded to
such students for the duplication of coursework already
completed at another institution; and
(5) the aggregate cost to the Federal Government of the
adoption of such policies.
(b) <<NOTE: Deadline.>> Report.--Not later than one year after the
date of enactment of this Act, the Secretary of Education shall submit a
report to the Chairman and Ranking Minority Member of the Committee on
Education and the Workforce of the House of Representatives and the
Committee on Labor and Human Resources of the Senate detailing the
Secretary's findings regarding the study conducted under subsection (a).
The Secretary's report shall include such recommendation with respect to
the recognition of accrediting agencies or associations as the Secretary
deems advisable.
[[Page 112 STAT. 1807]]
SEC. 805. STUDY OF <<NOTE: 20 USC 1001 note.>> OPPORTUNITIES FOR
PARTICIPATION IN ATHLETICS PROGRAMS.
(a) Study.--The Comptroller General shall conduct a study of the
opportunities for participation in intercollegiate athletics. The study
shall address issues including--
(1) the extent to which the number of--
(A) secondary school athletic teams has increased or
decreased in the 20 years preceding 1998 (in aggregate
terms); and
(B) intercollegiate athletic teams has increased or
decreased in the 20 years preceding 1998 (in aggregate
terms) at 2-year and 4-year institutions of higher
education;
(2) the extent to which participation by student-athletes in
secondary school and intercollegiate athletics has increased or
decreased in the 20 years preceding 1998 (in aggregate terms);
(3) over the 20-year period preceding 1998, a list of the
men's and women's secondary school and intercollegiate sports,
ranked in order of the sports most affected by increases or
decreases in levels of participation and numbers of teams (in
the aggregate);
(4) all factors that have influenced campus officials to add
or discontinue sports teams at secondary schools and
institutions of higher education, including--
(A) institutional mission and priorities;
(B) budgetary pressures;
(C) institutional reforms and restructuring;
(D) escalating liability insurance premiums;
(E) changing student and community interest in a
sport;
(F) advancement of diversity among students;
(G) lack of necessary level of competitiveness of
the sports program;
(H) club level sport achieving a level of
competitiveness to make the sport a viable varsity level
sport;
(I) injuries or deaths; and
(J) conference realignment;
(5) the actions that institutions of higher education have
taken when decreasing the level of participation in
intercollegiate sports, or the number of teams, in terms of
providing information, advice, scholarship maintenance,
counseling, advance warning, and an opportunity for student-
athletes to be involved in the decisionmaking process;
(6) the administrative processes and procedures used by
institutions of higher education when determining whether to
increase or decrease intercollegiate athletic teams or
participation by student-athletes;
(7) the budgetary or fiscal impact, if any, of a decision by
an institution of higher education--
(A) to increase or decrease the number of
intercollegiate athletic teams or the participation of
student-athletes; or
(B) to be involved in a conference realignment; and
(8) the alternatives, if any, institutions of higher
education have pursued in lieu of eliminating, or severely
reducing the funding for, anintercollegiate sport, and the
success of such alternatives.
[[Page 112 STAT. 1808]]
(b) Report.--The Comptroller General shall submit a report regarding
the results of the study to the Committee on Labor and Human Resources
of the Senate and the Committee on Education and the Workforce of the
House of Representatives.
SEC. 806. STUDY OF THE EFFECTIVENESS OF COHORT DEFAULT RATES FOR
INSTITUTIONS WITH FEW STUDENT LOAN BORROWERS.
(a) Study Required.--The Secretary of Education shall conduct a
study of the effectiveness of cohort default rates as an indicator of
administrative capability and program quality for institutions of higher
education at which less than 15 percent of students eligible to borrow
participate in the Federal student loan programs under title IV of the
Higher Education Act of 1965 and fewer than 30 borrowers enter repayment
in any fiscal year. At a minimum, the study shall include--
(1) identification of the institutions included in the study
and of the student populations the institutions serve;
(2) analysis of cohort default rates as indicators of
administrative shortcomings and program quality at the
institutions;
(3) analysis of the effectiveness of cohort default rates as
a means to prevent fraud and abuse in the programs assisted
under such title;
(4) analysis of the extent to which the institutions with
high cohort default rates are no longer participants in the
Federal student loan programs under such title; and
(5) analysis of the costs incurred by the Department of
Education for the calculation, publication, correction, and
appeal of cohort default rates for the institutions in relation
to any benefits to taxpayers.
(b) Consultation.--In conducting the study described in subsection
(a), the Secretary of Education shall consult with institutions of
higher education.
(c) <<NOTE: Deadline.>> Report to Congress.--The Secretary of
Education shall report to the Committee on Labor and Human Resources of
the Senate and the Committee on Education and the Workforce of the House
of Representatives not later than September 30, 1999, regarding the
results of the study described in subsection (a).
PART B--ADVANCED PLACEMENT INCENTIVE PROGRAM
SEC. 810. ADVANCED PLACEMENT INCENTIVE PROGRAM. <<NOTE: 20 USC 1070a-11
note.>>
(a) Program Established.--The Secretary of Education is authorized
to make grants to States having applications approved under subsection
(c) to enable the States to reimburse low-income individuals to cover
part or all of the cost of advanced placement test fees, if the low-
income individuals--
(1) are enrolled in an advanced placement class; and
(2) plan to take an advanced placement test.
(b) Information Dissemination.--The State educational agency shall
disseminate information regarding the availability of test fee payments
under this section to eligible individuals through secondary school
teachers and guidance counselors.
(c) Requirements for Approval of Applications.--In approving
applications for grants the Secretary of Education shall--
[[Page 112 STAT. 1809]]
(1) require that each such application contain a description
of the advanced placement test fees the State will pay on behalf
of individual students;
(2) require an assurance that any funds received under this
section, other than funds used in accordance with subsection
(d), shall be used only to pay advanced placement test fees;
(3) contain such information as the Secretary may require to
demonstrate that the State will ensure that a student is
eligible for payments under this section, including the
documentation required by chapter 1 of subpart 2 of part A of
title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a-11
et seq.); and
(4) consider the number of children eligible to be counted
under section 1124(c) of the Elementary and Secondary Education
Act of 1965 in the State in relation to the number of such
children in all the States in determining grant award amounts.
(d) Funding Rules.--
(1) Use of funds.--A State educational agency in a State in
which no eligible low-income individual is required to pay more
than a nominal fee to take advanced placement tests in core
subjects may use any grant funds provided to that State
educational agency, that remain after fees have been paid on
behalf of all eligible low-income individuals, for activities
directly related to increasing--
(A) the enrollment of low-income individuals in
advanced placement courses;
(B) the participation of low-income individuals in
advanced placement tests; and
(C) the availability of advanced placement courses
in schools serving high poverty areas.
(2) Supplement, not supplant, rule.--Funds provided under
this section shall supplement and not supplant other non-Federal
funds that are available to assist low-income individuals in
paying advanced placement test fees.
(e) Regulations.--The Secretary of Education shall prescribe such
regulations as are necessary to carry out this section.
(f ) Report.--Each State annually shall report to the Secretary of
Education regarding--
(1) the number of low-income individuals in the State who
receive assistance under this section; and
(2) the activities described in subsection (d)(1), if
applicable.
(g) Definition.--In this section:
(1) Advanced placement test.--The term ``advanced placement
test'' includes only an advanced placement test approved by the
Secretary of Education for the purposes of this section.
(2) Low-income individual.--The term ``low-income
individual'' has the meaning given the term in section
402A(g)(2) of the Higher Education Act of 1965 (20 U.S.C. 1070a-
11(g)(2)).
(h) Authorization of Appropriations.--There are authorized to be
appropriated $6,800,000 for fiscal year 1999 and such sums as may be
necessary for each of the 4 succeeding fiscal years to carry out this
section.
[[Page 112 STAT. 1810]]
PART C <<NOTE: Community Scholarship Mobilization Act.>> --COMMUNITY
SCHOLARSHIP MOBILIZATION
SEC. 811. SHORT TITLE. <<NOTE: 20 USC 1070 note.>>
This part may be cited as the ``Community Scholarship Mobilization
Act''.
SEC. 812. FINDINGS. <<NOTE: 20 USC 1070 note.>>
Congress finds that--
(1) the local community, when properly organized and
challenged, is one of the best sources of academic support,
motivation toward achievement, and financial resources for
aspiring postsecondary students;
(2) local communities, working to complement or augment
services currently offered by area schools and colleges, can
raise the educational expectations and increase the rate of
postsecondary attendance of their youth by forming locally-based
organizations that provide both academic support (including
guidance, counseling, mentoring, tutoring, encouragement, and
recognition) and tangible, locally raised, effectively targeted,
publicly recognized, financial assistance;
(3) proven methods of stimulating these community efforts
can be promoted through Federal support for the establishment of
regional, State, or community program centers to organize and
challenge community efforts to develop educational incentives
and support for local students; and
(4) using Federal funds to leverage private contributions to
help students from low-income families attain educational and
career goals is an efficient and effective investment of scarce
taxpayer-provided resources.
SEC. 813. DEFINITIONS. <<NOTE: 20 USC 1070 note.>>
In this part:
(1) Regional, state, or community program center.--The term
``regional, State, or community program center'' means an
organization that--
(A) is a division or member of, responsible to, and
overseen by, a national organization; and
(B) is staffed by professionals trained to create,
develop, and sustain local entities in towns, cities,
and neighborhoods.
(2) Local entity.--The term ``local entity'' means an
organization that--
(A) is a nonprofit organization that is described in
section 501(c)(3) of the Internal Revenue Code of 1986,
and exempt from taxation under section 501(a) of such
Code (or shall meet this criteria through affiliation
with the national organization);
(B) is formed for the purpose of providing
educational scholarships and academic support for
residents of the local community served by such
organization;
(C) solicits broad-based community support in its
academic support and fund-raising activities;
(D) is broadly representative of the local community
in the structures of its volunteer-operated organization
and has a board of directors that includes leaders from
local neighborhood organizations and neighborhood
residents,
[[Page 112 STAT. 1811]]
such as school or college personnel, parents, students,
community agency representatives, retirees, and
representatives of the business community;
(E) awards scholarships without regard to age, sex,
marital status, race, creed, color, religion, national
origin, or disability; and
(F) gives priority to awarding scholarships for
postsecondary education to deserving students from low-
income families in the local community.
(3) National organization.--The term ``national
organization'' means an organization that--
(A) has the capacity to create, develop and sustain
local entities and affiliated regional, State, or
community program centers;
(B) has the capacity to sustain newly created local
entities in towns, cities, and neighborhoods through
ongoing training support programs;
(C) is described in section 501(c)(3) of the
Internal Revenue Code of 1986, and exempt from taxation
under section 501(a) of such Code;
(D) is a publicly supported organization within the
meaning of section 170(b)(1)(A)(iv) of such Code;
(E) ensures that each of the organization's local
entities meet the criteria described in subparagraphs
(C) and (D); and
(F) has a program for or experience in cooperating
with secondary and postsecondary institutions in
carrying out the organization's scholarship and academic
support activities.
(4) High poverty area.--The term ``high poverty area'' means
a community with a higher percentage of children from low-income
families than the national average of such percentage and a
lower percentage of children pursuing postsecondary education
than the national average of such percentage.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Education.
(6) Students from low-income families.--The term ``students
from low-income families'' means students determined, pursuant
to part F of title IV of the Higher Education Act of 1965 (20
U.S.C. 1087kk et seq.), to be eligible for a Federal Pell Grant
under subpart 1 of part A of title IV of such Act (20 U.S.C.
1070a).
SEC. 814. PURPOSE; ENDOWMENT GRANT AUTHORITY. <<NOTE: 20 USC 1070
note.>>
(a) Purpose.--It is the purpose of this part to establish and
support regional, State or community program centers to enable such
centers to foster the development of local entities in high poverty
areas that promote higher education goals for students from low-income
families by--
(1) providing academic support, including guidance,
counseling, mentoring, tutoring, and recognition; and
(2) providing scholarship assistance for the cost of
postsecondary education.
(b) Endowment Grant Authority.--From the funds appropriated pursuant
to the authority of section 816, the Secretary shall award an endowment
grant, on a competitive basis, to a national organization to enable such
organization to support the
[[Page 112 STAT. 1812]]
establishment or ongoing work of regional, State or community program
centers that foster the development of local entities in high poverty
areas to improve secondary school graduation rates and postsecondary
attendance through the provision of academic support services and
scholarship assistance for the cost of postsecondary education.
SEC. 815. GRANT AGREEMENT AND REQUIREMENTS. <<NOTE: 20 USC 1070 note.>>
(a) In General.--The Secretary shall award one or more endowment
grants described in section 814(b) pursuant to an agreement between the
Secretary and a national organization. Such agreement shall--
(1) require a national organization to establish an
endowment fund in the amount of the grant, the corpus of which
shall remain intact and the interest income from which shall be
used to support the activities described in paragraphs (2) and
(3);
(2) require a national organization to use 70 percent of the
interest income from the endowment fund in any fiscal year to
support the establishment or ongoing work of regional, State or
community program centers to enable such centers to work with
local communities to establish local entities in high poverty
areas and provide ongoing technical assistance, training
workshops, and other activities to help ensure the ongoing
success of the local entities;
(3) require a national organization to use 30 percent of the
interest income from the endowment fund in any fiscal year to
provide scholarships for postsecondary education to students
from low-income families, which scholarships shall be matched on
a dollar-for-dollar basis from funds raised by the local
entities;
(4) require that at least 50 percent of all the interest
income from the endowment be allocated to establish new local
entities or support regional, State or community program centers
in high poverty areas;
(5) require a national organization to submit, for each
fiscal year in which such organization uses the interest from
the endowment fund, a report to the Secretary that contains--
(A) a description of the programs and activities
supported by the interest on the endowment fund;
(B) the audited financial statement of the national
organization for the preceding fiscal year;
(C) a plan for the programs and activities to be
supported by the interest on the endowment fund as the
Secretary may require;
(D) an evaluation of the programs and activities
supported by the interest on the endowment fund as the
Secretary may require; and
(E) data indicating the number of students from low-
income families who receive scholarships from local
entities, and the amounts of such scholarships;
(6) contain such assurances as the Secretary may require
with respect to the management and operation of the endowment
fund; and
(7) contain an assurance that if the Secretary determines
that such organization is not in substantial compliance with the
provisions of this part, then the national organization shall
[[Page 112 STAT. 1813]]
pay to the Secretary an amount equal to the corpus of the
endowment fund plus any accrued interest on such fund that is
available to the national organization on the date of such
determination.
(b) Returned Funds.--All funds returned to the Secretary pursuant to
subsection (a)(7) shall be available to the Secretary to carry out any
scholarship or grant program assisted under title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070 et seq.).
SEC. 816. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 1070 note.>>
There are authorized to be appropriated to carry out this part
$10,000,000 for fiscal year 2000.
PART D--GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION TRAINING
FOR INCARCERATED YOUTH OFFENDERS
SEC. 821. <<NOTE: 20 USC 1151.>> GRANTS TO STATES FOR WORKPLACE AND
COMMUNITY TRANSITION TRAINING FOR INCARCERATED YOUTH
OFFENDERS.
(a) Findings.--Congress makes the following findings:
(1) Over 150,000 youth offenders age 21 and younger are
incarcerated in the Nation's jails, juvenile facilities, and
prisons.
(2) Most youth offenders who are incarcerated have been
sentenced as first-time adult felons.
(3) Approximately 75 percent of youth offenders are high
school dropouts who lack basic literacy and life skills, have
little or no job experience, and lack marketable skills.
(4) The average incarcerated youth has attended school only
through grade 10.
(5) Most of these youths can be diverted from a life of
crime into productive citizenship with available educational,
vocational, work skills, and related service programs.
(6) If not involved with educational programs while
incarcerated, almost all of these youths will return to a life
of crime upon release.
(7) The average length of sentence for a youth offender is
about 3 years. Time spent in prison provides a unique
opportunity for education and training.
(8) Even with quality education and training provided during
incarceration, a period of intense supervision, support, and
counseling is needed upon release to ensure effective
reintegration of youth offenders into society.
(9) Research consistently shows that the vast majority of
incarcerated youths will not return to the public schools to
complete their education.
(10) There is a need for alternative educational
opportunities during incarceration and after release.
(b) Definition.--For purposes of this part, the term ``youth
offender'' means a male or female offender under the age of 25, who is
incarcerated in a State prison, including a prerelease facility.
(c) Grant Program.--The Secretary of Education (in this section
referred to as the ``Secretary'') shall establish a program in
accordance with this section to provide grants to the State correctional
education agencies in the States, from allocations for the
[[Page 112 STAT. 1814]]
States under subsection (i), to assist and encourage incarcerated youths
to acquire functional literacy, life, and job skills, through the
pursuit of a postsecondary education certificate, or an associate of
arts or bachelor's degree while in prison, and employment counseling and
other related services which start during incarceration and continue
through prerelease and while on parole.
(d) Application.--To be eligible for a grant under this section, a
State correctional education agency shall submit to the Secretary a
proposal for a youth offender program that--
(1) identifies the scope of the problem, including the
number of incarcerated youths in need of postsecondary education
and vocational training;
(2) lists the accredited public or private educational
institution or institutions that will provide postsecondary
educational services;
(3) lists the cooperating agencies, public and private, or
businesses that will provide related services, such as
counseling in the areas of career development, substance abuse,
health, and parenting skills;
(4) describes the evaluation methods and performance
measures that the State correctional education agency will
employ, which methods and measures--
(A) shall be appropriate to meet the goals and
objectives of the proposal; and
(B) shall include measures of--
(i) program completion;
(ii) student academic and vocational skill
attainment;
(iii) success in job placement and retention;
and
(iv) recidivism;
(5) describes how the proposed programs are to be integrated
with existing State correctional education programs (such as
adult education, graduate education degree programs, and
vocational training) and State industry programs;
(6) addresses the educational needs of youth offenders who
are in alternative programs (such as boot camps); and
(7) describes how students will be selected so that only
youth offenders eligible under subsection (f ) will be enrolled
in postsecondary programs.
(e) Program Requirements.--Each State correctional education agency
receiving a grant under this section shall--
(1) integrate activities carried out under the grant with
the objectives and activities of the school-to-work programs of
such State, including--
(A) work experience or apprenticeship programs;
(B) transitional worksite job training for
vocational education students that is related to the
occupational goals of such students and closely linked
to classroom and laboratory instruction;
(C) placement services in occupations that the
students are preparing to enter;
(D) employment-based learning programs; and
(E) programs that address State and local labor
shortages;
(2) <<NOTE: Reports.>> annually report to the Secretary and
the Attorney
General on the results of the evaluations conducted using the
[[Page 112 STAT. 1815]]
methods and performance measures contained in the proposal; and
(3) provide to each State for each student eligible under
subsection (f ) not more than $1,500 annually for tuition,
books, and essential materials, and not more than $300 annually
for related services such as career development, substance abuse
counseling, parenting skills training, and health education, for
each eligible incarcerated youth.
(f ) Student Eligibility.--A youth offender shall be eligible for
participation in a program receiving a grant under this section if the
youth offender--
(1) is eligible to be released within 5 years (including a
youth offender who is eligible for parole within such time); and
(2) is 25 years of age or younger.
(g) Length of Participation.--A State correctional education agency
receiving a grant under this section shall provide educational and
related services to each participating youth offender for a period not
to exceed 5 years, 1 year of which may be devoted to study in a graduate
education degree program or to remedial education services for students
who have obtained a secondary school diploma or its recognized
equivalent. Educational and related services shall start during the
period of incarceration in prison or prerelease and may continue during
the period of parole.
(h) Education Delivery Systems.--State correctional education
agencies and cooperating institutions shall, to the extent practicable,
use high-tech applications in developing programs to meet the
requirements and goals of this section.
(i) Allocation of Funds.--From the funds appropriated pursuant to
subsection ( j) for each fiscal year, the Secretary shall allot to each
State an amount that bears the same relationship to such funds as the
total number of students eligible under subsection (f ) in such State
bears to the total number of such students in all States.
( j) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $17,000,000 for fiscal year 1999
and such sums as may be necessary for each of the 4 succeeding fiscal
years.
PART E--GRANTS TO COMBAT VIOLENT CRIMES AGAINST WOMEN ON CAMPUSES
SEC. 826. <<NOTE: 20 USC 1152.>> GRANTS TO COMBAT VIOLENT CRIMES AGAINST
WOMEN ON CAMPUSES.
(a) Grants Authorized.--
(1) In general.--The Attorney General is authorized to make
grants to institutions of higher education, for use by such
institutions or consortia consisting of campus personnel,
student organizations, campus administrators, security
personnel, and regional crisis centers affiliated with the
institution, to develop and strengthen effective security and
investigation strategies to combat violent crimes against women
on campuses, and to develop and strengthen victim services in
cases involving violent crimes against women on campuses, which
may include partnerships with local criminal justice authorities
and community-based victim services agencies.
[[Page 112 STAT. 1816]]
(2) <<NOTE: Contracts.>> Award basis.--The Attorney General
shall award grants and contracts under this section on a
competitive basis.
(3) Equitable participation.--The Attorney General shall
make every effort to ensure--
(A) the equitable participation of private and
public institutions of higher education in the
activities assisted under this section; and
(B) the equitable geographic distribution of grants
under this section among the various regions of the
United States.
(b) Use of Grant Funds.--Grant funds awarded under this section may
be used for the following purposes:
(1) To provide personnel, training, technical assistance,
data collection, and other equipment with respect to the
increased apprehension, investigation, and adjudication of
persons committing violent crimes against women on campus.
(2) To train campus administrators, campus security
personnel, and personnel serving on campus disciplinary or
judicial boards to more effectively identify and respond to
violent crimes against women on campus, including the crimes of
sexual assault, stalking, and domestic violence.
(3) To implement and operate education programs for the
prevention of violent crimes against women.
(4) To develop, enlarge, or strengthen support services
programs, including medical or psychological counseling, for
victims of sexual offense crimes.
(5) To create, disseminate, or otherwise provide assistance
and information about victims' options on and off campus to
bring disciplinary or other legal action.
(6) To develop and implement more effective campus policies,
protocols, orders, and services specifically devoted to prevent,
identify, and respond to violent crimes against women on campus,
including the crimes of sexual assault, stalking, and domestic
violence.
(7) To develop, install, or expand data collection and
communication systems, including computerized systems, linking
campus security to the local law enforcement for the purpose of
identifying and tracking arrests, protection orders, violations
of protection orders, prosecutions, and convictions with respect
to violent crimes against women on campus, including the crimes
of sexual assault, stalking, and domestic violence.
(8) To develop, enlarge, or strengthen victim services
programs for the campus and to improve delivery of victim
services on campus.
(9) To provide capital improvements (including improved
lighting and communications facilities but not including the
construction of buildings) on campuses to address violent crimes
against women on campus, including the crimes of sexual assault,
stalking, and domestic violence.
(10) To support improved coordination among campus
administrators, campus security personnel, and local law
enforcement to reduce violent crimes against women on campus.
(c) Applications.--
(1) In general.--In order to be eligible to be awarded a
grant under this section for any fiscal year, an institution of
higher education shall submit an application to the Attorney
[[Page 112 STAT. 1817]]
General at such time and in such manner as the Attorney General
shall prescribe.
(2) Contents.--Each application submitted under paragraph
(1) shall--
(A) describe the need for grant funds and the plan
for implementation for any of the purposes described in
subsection (b);
(B) describe how the campus authorities shall
consult and coordinate with nonprofit and other victim
services programs, including sexual assault and domestic
violence victim services programs;
(C) describe the characteristics of the population
being served, including type of campus, demographics of
the population, and number of students;
(D) provide measurable goals and expected results
from the use of the grant funds;
(E) provide assurances that the Federal funds made
available under this section shall be used to supplement
and, to the extent practical, increase the level of
funds that would, in the absence of Federal funds, be
made available by the institution for the purposes
described in subsection (b); and
(F) include such other information and assurances as
the Attorney General reasonably determines to be
necessary.
(3) Compliance with campus crime reporting required.--No
institution of higher education shall be eligible for a grant
under this section unless such institution is in compliance with
the requirements of section 485(f ) of the Higher Education Act
of 1965.
(d) General Terms and Conditions.--
(1) Nonmonetary assistance.--In addition to the assistance
provided under this section, the Attorney General may request
any Federal agency to use the agency's authorities and the
resources granted to the agency under Federal law (including
personnel, equipment, supplies, facilities, and managerial,
technical, and advisory services) in support of campus security,
and investigation and victim service efforts.
(2) Grantee reporting.--
(A) Annual report.--Each institution of higher
education receiving a grant under this section shall
submit an annual performance report to the Attorney
General. The Attorney General shall suspend funding
under this section for an institution of higher
education if the institution fails to submit an annual
performance report.
(B) Final report.--Upon completion of the grant
period under this section, the institution shall file a
performance report with the Attorney General and the
Secretary of Education explaining the activities carried
out under this section together with an assessment of
the effectiveness of those activities in achieving the
purposes described in subsection (b).
(3) <<NOTE: Deadline.>> Report to congress.--Not later than
180 days after the end of the fiscal year for which grants are
awarded under this section, the Attorney General shall submit to
the committees of the House of Representatives and the Senate
responsible
[[Page 112 STAT. 1818]]
for issues relating to higher education and crime, a report that
includes--
(A) the number of grants, and the amount of funds,
distributed under this section;
(B) a summary of the purposes for which the grants
were provided and an evaluation of the progress made
under the grant;
(C) a statistical summary of the persons served,
detailing the nature of victimization, and providing
data on age, sex, race, ethnicity, language, disability,
relationship to offender, geographic distribution, and
type of campus; and
(D) an evaluation of the effectiveness of programs
funded under this part, including information obtained
from reports submitted pursuant to section 485(f ) of
the Higher Education Act of 1965.
(4) <<NOTE: Deadlines. Publications.>> Regulations or
guidelines.--Not later than 120 days after the date of enactment
of this section, the Attorney General, in consultation with the
Secretary of Education, shall publish proposed regulations or
guidelines implementing this section. Not later than 180 days
after the date of enactment of this section, the Attorney
General shall publish final regulations or guidelines
implementing this section.
(f ) Definitions.--In this section--
(1) the term ``domestic violence'' includes acts or threats
of violence, not including acts of self defense, committed by a
current or former spouse of the victim, by a person with whom
the victim shares a child in common, by a person who is
cohabitating with or has cohabitated with the victim, by a
person similarly situated to a spouse of the victim under the
domestic or family violence laws of the jurisdiction, or by any
other person against a victim who is protected from that
person's acts under the domestic or family violence laws of the
jurisdiction;
(2) the term ``sexual assault'' means any conduct proscribed
by chapter 109A of title 18, United States Code, whether or not
the conduct occurs in the special maritime and territorial
jurisdiction of the United States or in a Federal prison,
including both assaults committed by offenders who are strangers
to the victim and assaults committed by offenders who are known
or related by blood or marriage to the victim; and
(3) the term ``victim services'' means a nonprofit,
nongovernmental organization that assists domestic violence or
sexual assault victims, including campus women's centers, rape
crisis centers, battered women's shelters, and other sexual
assault or domestic violence programs, including campus
counseling support and victim advocate organizations with
domestic violence, stalking, and sexual assault programs,
whether or not organized and staffed by students.
(g) Authorization of Appropriations.--For the purpose of carrying
out this part, there are authorized to be appropriated $10,000,000 for
fiscal year 1999 and such sums as may be necessary for each of the 4
succeeding fiscal years.
[[Page 112 STAT. 1819]]
SEC. 827. STUDY OF <<NOTE: 20 USC 1152 note.>> INSTITUTIONAL PROCEDURES
TO REPORT SEXUAL ASSAULTS.
(a) In General.--The Attorney General, in consultation with the
Secretary of Education, shall provide for a national study to examine
procedures undertaken after an institution of higher education receives
a report of sexual assault.
(b) Report.--The study required by subsection (a) shall include an
analysis of--
(1) the existence and publication of the institution of
higher education's and State's definition of sexual assault;
(2) the existence and publication of the institution's
policy for campus sexual assaults;
(3) the individuals to whom reports of sexual assault are
given most often and--
(A) how the individuals are trained to respond to
the reports; and
(B) the extent to which the individuals are trained;
(4) the reporting options that are articulated to the victim
or victims of the sexual assault regarding--
(A) on-campus reporting and procedure options; and
(B) off-campus reporting and procedure options;
(5) the resources available for victims' safety, support,
medical health, and confidentiality, including--
(A) how well the resources are articulated both
specifically to the victim of sexual assault and
generally to the campus at large; and
(B) the security of the resources in terms of
confidentiality or reputation;
(6) policies and practices that may prevent or discourage
the reporting of campus sexual assaults to local crime
authorities, or that may otherwise obstruct justice or interfere
with the prosecution of perpetrators of campus sexual assaults;
(7) policies and practices found successful in aiding the
report and any ensuing investigation or prosecution of a campus
sexual assault;
(8) the on-campus procedures for investigation and
disciplining the perpetrator of a sexual assault, including--
(A) the format for collecting evidence; and
(B) the format of the investigation and disciplinary
proceeding, including the faculty responsible for
running the disciplinary procedure and the persons
allowed to attend the disciplinary procedure; and
(9) types of punishment for offenders, including--
(A) whether the case is directed outside the
institution for further punishment; and
(B) how the institution punishes perpetrators.
(c) Submission of Report.--The report required by subsection (b)
shall be submitted to Congress not later than September 1, 2000.
(d) Definition.--For purposes of this section, the term ``campus
sexual assaults'' means sexual assaults occurring at institutions of
higher education and sexual assaults committed against or by students or
employees of such institutions.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $1,000,000 for fiscal year 2000.
[[Page 112 STAT. 1820]]
PART F--IMPROVING UNITED STATES UNDERSTANDING OF SCIENCE, ENGINEERING,
AND TECHNOLOGY IN EAST ASIA
SEC. 831. <<NOTE: 42 USC 1862 note.>> IMPROVING UNITED STATES
UNDERSTANDING OF SCIENCE, ENGINEERING, AND TECHNOLOGY IN
EAST ASIA.
(a) Establishment.--The Director of the National Science Foundation
is authorized, beginning in fiscal year 2000, to carry out an
interdisciplinary program of education and research on East Asian
science, engineering, and technology. The Director shall carry out the
interdisciplinary program in consultation with the Secretary of
Education.
(b) Purposes.--The purposes of the program established under this
section shall be to--
(1) increase understanding of East Asian research, and
innovation for the creative application of science and
technology to the problems of society;
(2) provide scientists, engineers, technology managers, and
students with training in East Asian languages, and with an
understanding of research, technology, and management of
innovation, in East Asian countries;
(3) provide program participants with opportunities to be
directly involved in scientific and engineering research, and
activities related to the management of scientific and
technological innovation, in East Asia; and
(4) create mechanisms for cooperation and partnerships among
United States industry, universities, colleges, not-for-profit
institutions, Federal laboratories (within the meaning of
section 4(6) of the Stevenson-Wydler Technology Innovation Act
of 1980 (15 U.S.C. 3703(6))), and government, to disseminate the
results of the program assisted under this section for the
benefit of United States research and innovation.
(c) Participation by Federal Scientists, Engineers, and Managers.--
Scientists, engineers, and managers of science and engineering programs
in Federal agencies and the Federal laboratories shall be eligible to
participate in the program assisted under this section on a reimbursable
basis.
(d) Requirement for Merit Review.--Awards made under the program
established under this section shall only be made using a competitive,
merit-based review process.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $10,000,000 for fiscal year 2000.
PART G--OLYMPIC SCHOLARSHIPS
SEC. 836. EXTENSION OF AUTHORIZATION.
Section 1543(d) of the Higher Education Amendments of 1992 is
amended by <<NOTE: 20 USC 1070 note.>> striking ``1993'' and inserting
``1999''.
PART H--UNDERGROUND RAILROAD
SEC. 841. <<NOTE: Historic preservation. 20 USC 1153.>> UNDERGROUND
RAILROAD EDUCATIONAL AND CULTURAL PROGRAM.
(a) Program Established.--The Secretary of Education, in
consultation and cooperation with the Secretary of the Interior,
[[Page 112 STAT. 1821]]
is authorized to make grants to 1 or more nonprofit educational
organizations that are established to research, display, interpret, and
collect artifacts relating to the history of the Underground Railroad.
(b) Grant Agreement.--Each nonprofit educational organization
awarded a grant under this section shall enter into an agreement with
the Secretary of Education. Each such agreement shall require the
organization--
(1) to establish a facility to house, display, and interpret
the artifacts related to the history of the Underground
Railroad, and to make the interpretive efforts available to
institutions of higher education that award a baccalaureate or
graduate degree;
(2) to demonstrate substantial private support for the
facility through the implementation of a public-private
partnership between a State or local public entity and a private
entity for the support of the facility, which private entity
shall provide matching funds for the support of the facility in
an amount equal to 4 times the amount of the contribution of the
State or local public entity, except that not more than 20
percent of the matching funds may be provided by the Federal
Government;
(3) to create an endowment to fund any and all shortfalls in
the costs of the on-going operations of the facility;
(4) to establish a network of satellite centers throughout
the United States to help disseminate information regarding the
Underground Railroad throughout the United States, if such
satellite centers raise 80 percent of the funds required to
establish the satellite centers from non-Federal public and
private sources;
(5) to establish the capability to electronically link the
facility with other local and regional facilities that have
collections and programs which interpret the history of the
Underground Railroad; and
(6) <<NOTE: Reports.>> to submit, for each fiscal year for
which the organization receives funding under this section, a
report to the Secretary of Education that contains--
(A) a description of the programs and activities
supported by the funding;
(B) the audited financial statement of the
organization for the preceding fiscal year;
(C) a plan for the programs and activities to be
supported by the funding as the Secretary may require;
and
(D) an evaluation of the programs and activities
supported by the funding as the Secretary may require.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $6,000,000 for fiscal year 1999,
$6,000,000 for fiscal year 2000, $6,000,000 for fiscal year 2001,
$3,000,000 for fiscal year 2002, and $3,000,000 for fiscal year 2003.
[[Page 112 STAT. 1822]]
PART I--SUMMER TRAVEL AND WORK PROGRAMS
SEC. 846. <<NOTE: 22 USC 1474 note.>> AUTHORITY TO ADMINISTER SUMMER
TRAVEL AND WORK PROGRAMS.
The Director of the United States Information Agency is authorized
to administer summer travel and work programs without regard to
preplacement requirements.
PART J <<NOTE: Web-Based Education Commission Act.>> --WEB-BASED
EDUCATION COMMISSION
SEC. 851. SHORT TITLE; DEFINITIONS.
(a) In General.--This part may be cited as the ``Web-Based Education
Commission Act''.
(b) Definitions.--In this part:
(1) Commission.--The term ``Commission'' means the Web-Based
Education Commission established under section 852.
(2) Information technology.--The term ``information
technology'' has the meaning given that term in section 5002 of
the Information Technology Management Reform Act of 1996 (110
Stat. 679).
(3) State.--The term ``State'' means each of the several
States of the United States and the District of Columbia.
SEC. 852. ESTABLISHMENT OF WEB-BASED EDUCATION COMMISSION.
(a) Establishment.--There is established a commission to be known as
the Web-Based Education Commission.
(b) Membership.--
(1) Composition.--The Commission shall be composed of 14
members, of which--
(A) <<NOTE: President.>> three members shall be
appointed by the President, from among individuals
representing the Internet technology industry;
(B) three members shall be appointed by the
Secretary, from among individuals with expertise in
accreditation, establishing statewide curricula, and
establishing information technology networks pertaining
to education curricula;
(C) two members shall be appointed by the Majority
Leader of the Senate;
(D) two members shall be appointed by the Minority
Leader of the Senate;
(E) two members shall be appointed by the Speaker of
the House of Representatives; and
(F) two members shall be appointed by the Minority
Leader of the House of Representatives.
(2) <<NOTE: Deadline.>> Date.--The appointments of the
members of the Commission shall be made not later than 45 days
after the date of enactment of this Act.
(c) Period of Appointment; Vacancies.--Members shall be appointed
for the life of the Commission. Any vacancy in the Commission shall not
affect its powers, but shall be filled in the same manner as the
original appointment.
(d) <<NOTE: Deadline.>> Initial Meeting.--Not later than 30 days
after the date on which all members of the Commission have been
appointed, the Commission shall hold the Commission's first meeting.
[[Page 112 STAT. 1823]]
(e) Meetings.--The Commission shall meet at the call of the
Chairperson.
(f ) Quorum.--A majority of the members of theCommission shall
constitute a quorum, but a lesser number of members may hold hearings.
(g) Chairperson and Vice Chairperson.--The Commission shall select a
chairperson and vice chairperson from among the members of the
Commission.
SEC. 853. DUTIES OF THE COMMISSION.
(a) Study.--
(1) In general.--The Commission shall conduct a thorough
study to assess the educational software available in retail
markets for secondary and postsecondary students who choose to
use such software.
(2) Public hearings.--As part of the study conducted under
this subsection, the Commission shall hold public hearings in
each region of the United States concerning the assessment
referred to in paragraph (1).
(3) Existing information.--To the extent practicable, in
carrying out the study under this subsection, the Commission
shall identify and use existing information related to the
assessment referred to in paragraph (1).
(b) <<NOTE: Deadline.>> Report.--Not later than 6 months after the
first meeting of the Commission, the Commission shall submit a report to
the President and Congress that shall contain a detailed statement of
the findings and conclusions of the Commission resulting from the study,
together with the Commission's recommendations--
(1) for such legislation and administrative actions as the
Commission considers to be appropriate; and
(2) regarding the appropriate Federal role in determining
quality educational software products.
(c) Facilitation of Exchange of Information.--In carrying out the
study under subsection (a), the Commission shall, to the extent
practicable, facilitate the exchange of information concerning the
issues that are the subject of the study among--
(1) officials of the Federal Government, and State
governments and political subdivisions of States; and
(2) educators from Federal, State, and local institutions of
higher education and secondary schools.
SEC. 854. POWERS OF THE COMMISSION.
(a) Hearings.--The Commission may hold such hearings, sit and act at
such times and places, take such testimony, and receive such evidence as
the Commission considers advisable to carry out the duties of the
Commission.
(b) Information From Federal Agencies.--The Commission may request
from the head of any Federal agency or instrumentality such information
as the Commission considers necessary to carry out the provisions of
this part. Each such agency or instrumentality shall, to the extent
permitted by law and subject to the exceptions set forth in section 552
of title 5, United States Code (commonly referred to as the Freedom of
Information Act), furnish such information to the Commission upon
request.
(c) Postal Services.--The Commission may use the United States mails
in the same manner and under the same conditions as other departments
and agencies of the Federal Government.
[[Page 112 STAT. 1824]]
(d) Gifts.--The Commission may accept, use, and dispose of gifts or
donations of services or property.
SEC. 855. COMMISSION PERSONNEL MATTERS.
(a) Compensation of Members.--Except as provided in subsection (b),
each member of the Commission who is not an officer or employee of the
Federal Government shall serve without compensation. All members of the
Commission who are officers or employees of the United States shall
serve without compensation in addition to that received for their
services as officers or employees of the United States.
(b) Travel Expenses.--The members of the Commission shall be allowed
travel expenses, including per diem in lieu of subsistence, at rates
authorized for employees of agencies under subchapter I of chapter 57 of
title 5, United States Code, while away from their homes or regular
places of business in the performance of services for the Commission.
(c) Staff.--
(1) In general.--The Chairperson of the Commission may,
without regard to the civil service laws and regulations,
appoint and terminate an executive director and such other
additional personnel as may be necessary to enable the
Commission to perform the Commission's duties. The employment of
an executive director shall be subject to confirmation by the
Commission.
(2) Compensation.--The Chairperson of the Commission may fix
the compensation of the executive director and other personnel
without regard to the provisions of chapter 51 and subchapter
III of chapter 53 of title 5, United States Code, relating to
classification of positions and General Schedule pay rates,
except that the rate of pay for the executive director and other
personnel may not exceed the rate payable for level V of the
Executive Schedule under section 5316 of such title.
(d) Detail of Government Employees.--Any Federal Government employee
may be detailed to the Commission without reimbursement, and such detail
shall be without interruption or loss of civil service status or
privilege.
(e) Procurement of Temporary and Intermittent Services.--The
Chairperson of the Commission may procure temporary and intermittent
services under section 3109(b) of title 5, United States Code, at rates
for individuals that do not exceed the daily equivalent of the annual
rate of basic pay prescribed for level V of the Executive Schedule under
section 5316 of such title.
SEC. 856. TERMINATION OF THE COMMISSION.
The Commission shall terminate on the date that is 90 days after the
date on which the Commission submits the Commission's report under
section 853(b).
SEC. 857. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated $450,000
for fiscal year 1999 to the Commission to carry out this part.
(b) Availability.--Any sums appropriated under the authorization
contained in this section shall remain available, without fiscal year
limitation, until expended.
[[Page 112 STAT. 1825]]
PART K--MISCELLANEOUS
SEC. 861. EDUCATION-WELFARE STUDY.
(a) Study.--The Comptroller General of the United States shall
conduct a study of the effectiveness of educational approaches
(including vocational and post-secondary education approaches) and rapid
employment approaches to helping welfare recipients and other low-income
adults become employed and economically self-sufficient. Such study
shall include--
(1) a survey of the available scientific evidence and
research data on the subject, including a comparison of the
effects of programs emphasizing a vocational or postsecondary
educational approach to programs emphasizing a rapid employment
approach, along with research on the impacts of programs which
emphasize a combination of such approaches;
(2) an examination of the research regarding the impact of
postsecondary education on the educational attainment of the
children of recipients who have completed a postsecondary
education program; and
(3) information regarding short and long-term employment,
wages, duration of employment, poverty rates, sustainable
economic self-sufficiency, prospects for career advancement or
wage increases, access to quality child care, placement in
employment with benefits including health care, life insurance
and retirement, and related program outcomes.
(b) <<NOTE: Deadline.>> Report.--Not later than August 1, 1999, the
Comptroller General of the United States shall prepare and submit to the
Committees on Ways and Means and on Education and the Workforce of the
House of Representatives and the Committees on Finance and on Labor and
Human Resources of the Senate, a report that contains the finding of the
study required by subsection (a).
SEC. 862. RELEASE OF CONDITIONS, COVENANTS, AND REVERSIONARY INTERESTS,
GUAM COMMUNITY COLLEGE CONVEYANCE, BARRIGADA, GUAM.
(a) Release.--The Secretary of Education shall release all
conditions and covenants that were imposed by the United States, and the
reversionary interests that were retained by the United States, as part
of the conveyance of a parcel of Federal surplus property located in
Barrigada, Guam, consisting of approximately 314.28 acres and known as
Naval Communications Area Master Station, WESTPAC, parcel IN, which was
conveyed to the Guam Community College pursuant to--
(1) the quitclaim deed dated June 8, 1990, conveying 61.45
acres, between the Secretary, acting through the Administrator
for Management Services, and the Guam Community College, acting
through its Board of Trustees; and
(2) the quitclaim deed dated June 8, 1990, conveying 252.83
acres, between the Secretary, acting through the Administrator
for Management Services, and the Guam Community College, acting
through its Board of Trustees, and the Governor of Guam.
(b) Consideration.--The Secretary shall execute the release of the
conditions, covenants, and reversionary interests under subsection (a)
without consideration.
[[Page 112 STAT. 1826]]
(c) Instrument of Release.--The Secretary shall execute and file in
the appropriate office or offices a deed of release, amended deed, or
other appropriate instrument effectuating the release of the conditions,
covenants, and reversionary interests under subsection (a).
SEC. 863. SENSE OF CONGRESS REGARDING GOOD CHARACTER.
(a) Findings.--Congress finds that--
(1) the future of our Nation and world will be determined by
the young people of today;
(2) record levels of youth crime, violence, teenage
pregnancy, and substance abuse indicate a growing moral crisis
in our society;
(3) character development is the long-term process of
helping young people to know, care about, and act upon such
basic values as trustworthiness, respect for self and others,
responsibility, fairness, compassion, and citizenship;
(4) these values are universal, reaching across cultural and
religious differences;
(5) a recent poll found that 90 percent of Americans support
the teaching of core moral and civic values;
(6) parents will always be children's primary character
educators;
(7) good moral character is developed best in the context of
the family;
(8) parents, community leaders, and school officials are
establishing successful partnerships across the Nation to
implement character education programs;
(9) character education programs also ask parents, faculty,
and staff to serve as role models of core values, to provide
opportunities for young people to apply these values, and to
establish high academic standards that challenge students to set
high goals, work to achieve the goals, and persevere in spite of
difficulty;
(10) the development of virtue and moral character, those
habits of mind, heart, and spirit that help young people to
know, desire, and do what is right, has historically been a
primary mission of colleges and universities; and
(11) the Congress encourages parents, faculty, and staff
across the Nation to emphasize character development in the
home, in the community, in our schools, and in our colleges and
universities.
(b) Sense of Congress.--It is the sense of Congress that Congress
should support and encourage character building initiatives in schools
across America and urge colleges and universities to affirm that the
development of character is one of the primary goals of higher
education.
SEC. 864. EDUCATIONAL MERCHANDISE LICENSING CODES OF CONDUCT.
It is the sense of Congress that all American colleges and
universities should adopt rigorous educational merchandise licensing
codes of conduct to assure that university and college licensed
merchandise is not made by sweatshop and exploited adult or child labor
either domestically or abroad, and that such codes should include at
least the following:
(1) Public reporting of the code and the companies adhering
to the code.
[[Page 112 STAT. 1827]]
(2) Independent monitoring of the companies adhering to the
code by entities not limited to major international accounting
firms.
(3) An explicit prohibition on the use of child labor.
(4) An explicit requirement that companies pay workers at
least the governing minimum wage and applicable overtime.
(5) An explicit requirement that companies allow workers the
right to organize without retribution.
(6) An explicit requirement that companies maintain a safe
and healthy workplace.
TITLE IX--AMENDMENTS TO OTHER LAWS
PART A--EXTENSION AND REVISION OF INDIAN HIGHER EDUCATION PROGRAMS
SEC. 901. TRIBALLY CONTROLLED COLLEGES AND UNIVERSITIES.
(a) Reauthorization.--
(1) Amount of grants.--Section 108(a)(2) of the Tribally
Controlled Community College Assistance Act of 1978 (25 U.S.C.
1808(a)(2)) is amended by striking ``$5,820'' and inserting
``$6,000''.
(2) Authorization of appropriations.--
(A) Title i.--Section 110(a) of the Tribally
Controlled Community College Assistance Act of 1978 (25
U.S.C. 1810(a)) is amended--
(i) in paragraph (1), by striking ``1993'' and
inserting ``1999'';
(ii) in paragraph (2), by striking
``$30,000,000 for fiscal year 1993'' and inserting
``$40,000,000 for fiscal year 1999'';
(iii) in paragraph (3), by striking ``1993''
and
inserting ``1999''; and
(iv) in paragraph (4), by striking ``1993''
and
inserting ``1999''.
(B) Title iii.--Section 306(a) of the Tribally
Controlled Community College Assistance Act of 1978 (25
U.S.C. 1836(a)) is amended by striking ``1993'' and
inserting ``1999''.
(C) Title iv.--Section 403 of the Tribal Economic
Development and Technology Related Education Assistance
Act of 1990 (25 U.S.C. 1852) is amended by striking
``1993'' and inserting ``1999''.
(b) Extension to Colleges and Universities.--The Tribally Controlled
Community College Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is
amended--
(1) in the first section (25 U.S.C. 1801 note), by striking
``Community College'' and inserting ``College or University'';
(2) in the heading for title I (25 U.S.C. 1802 et seq.), by
striking ``COMMUNITY COLLEGES'' and inserting ``COLLEGES OR
UNIVERSITIES'';
(3) in the heading for title III (25 U.S.C. 1831 et seq.),
by striking ``COMMUNITY COLLEGE'' and inserting ``COLLEGE OR
UNIVERSITY'';
[[Page 112 STAT. 1828]]
(4) in the heading for section 107, by striking ``community
colleges'' and inserting ``colleges or universities'';
(5) in sections 2(a)(4), 2(a)(7), 2(b)(4), 102(b), 103, 105,
106(b), 107(a), 107(b), 108(a), 108(b)(3)(A), 108(b)(3)(B),
108(b)(4), 109(b)(2), 109(b)(3), 109(d), 113(a), 113(b),
113(c)(1), 113(c)(2), 302(b), 303, 304, 305(a), and 305(b) (25
U.S.C. 1801(a)(4), 1801(a)(7), 1801(b)(4), 1803(b), 1804, 1805,
1806(b), 1807(a), 1807(b), 1808(a), 1808(b)(3)(A),
1808(b)(3)(B), 1808(b)(4), 1809(b)(2), 1809(b)(3), 1809(d),
1813(a), 1813(b), 1813(c)(1), 1813(c)(2), 1832(b), 1833, 1834,
1835(a), and 1835(b)), by striking ``community college'' each
place the term appears and inserting ``college or university'';
(6) in sections 101, 102(a), 104(a)(1), 107(a), 108(c)(2),
109(b)(1), 111(a)(2), 112(a), 112(a)(2), 112(c)(2)(B), 301,
302(a), and 402(a) (25 U.S.C. 1802, 1803(a), 1804a(a)(1),
1807(a), 1808(c)(2), 1809(b)(1), 1811(a)(2), 1812(a),
1812(a)(2), 1812(c)(2)(B), 1831, 1832(a), and 1851(a)), by
striking ``community colleges'' each place the term appears and
inserting ``colleges or universities'';
(7) in sections 108(a)(1), 108(a), 113(b)(2), 113(c)(2),
302(a), 302(b), 302(b)(2)(B), 302(b)(4), 303, 304, 305(a), and
305(b) (25 U.S.C. 1808(a)(1), 1808(a), 1813(b)(2), 1813(c)(2),
1832(a), 1832(b), 1832(b)(2)(B), 1832(b)(4), 1833, 1834,
1835(a), and 1835(b)), by striking ``such college'' each place
the term appears and inserting ``such college or university'';
(8) in sections 104(a)(2), 109(b)(1), and 111(a)(2) (25
U.S.C. 1804a(a)(2), 1809(b)(1), and 1811(a)(2)), by striking
``such colleges'' and inserting ``such colleges or
universities'';
(9) in section 2(b)(5) (25 U.S.C. 1801(b)(5)), by striking
``community college's'' and inserting ``college or
university's'';
(10) in section 109(a) (25 U.S.C. 1809(a)), by inserting
``or university'' after ``tribally controlled college'';
(11) in section 110(a)(4) (25 U.S.C. 1810(a)(4)), by
striking ``Tribally Controlled Community Colleges'' and
inserting ``tribally controlled colleges or universities'';
(12) in sections 102(b), 109(d), 113(c)(2)(E), 302(b)(6),
and 305(a) (25 U.S.C. 1803(b), 1809(d), 1813(c)(2)(E),
1832(b)(6), and 1835(a)), by striking ``the college'' and
inserting ``the college or university'';
(13) in section 112(c)(1) (25 U.S.C. 1812(c)(1)), by
striking ``colleges'' and inserting ``colleges or
universities'';
(14) in sections 302(b)(4) and 305(a) (25 U.S.C. 1832(b)(4)
and 1835(a)), by striking ``that college'' and inserting ``that
college or university''; and
(15) in section 302(b)(4) (25 U.S.C. 1832(b)(4)), by
striking ``other colleges'' and inserting ``other colleges or
universities''.
(c) <<NOTE: 25 USC 1801 note.>> Additional Conforming Amendments.--
(1) Recommended legislation.--The Secretary of Education
shall prepare and submit to Congress recommended legislation
containing technical and conforming amendments to reflect the
changes made by subsection (b).
(2) <<NOTE: Deadline.>> Submission to congress.--Not later
than 6 months after the effective date of this title, the
Secretary of Education shall submit the recommended legislation
referred to under paragraph (1).
(d) <<NOTE: 25 USC 1801 note.>> References.--Any reference to a
section or other provision of the Tribally Controlled Community College
Assistance Act of
[[Page 112 STAT. 1829]]
1978 shall be deemed to be a reference to the Tribally Controlled
College or University Assistance Act of 1978.
(e) Clerical Amendment.--Section 109 of the Tribally Controlled
Colleges or University Act of 1978 (as renamed by subsection (b)(1)) (25
U.S.C. 1809) is amended by redesignating subsection (d) as subsection
(c).
SEC. 902. REAUTHORIZATION OF NAVAJO COMMUNITY COLLEGE ACT.
Section 5(a)(1) of the Navajo Community College Act (25 U.S.C. 640c-
1) is amended by striking ``1993'' and inserting ``1999''.
PART B <<NOTE: Education of the Deaf Amendments of 1998.>> --EDUCATION
OF THE DEAF
SEC. 911. SHORT TITLE. <<NOTE: 20 USC 4301 note.>>
This part may be cited as the ``Education of the Deaf Amendments of
1998''.
SEC. 912. ELEMENTARY AND SECONDARY EDUCATION PROGRAMS.
Section 104(b) of the Education of the Deaf Act of 1986 (20 U.S.C.
4304(b)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by inserting ``and'' after
the semicolon;
(B) in subparagraph (B), by striking ``; and'' and
inserting a period; and
(C) by striking subparagraph (C);
(2) in the matter preceding subparagraph (A) of paragraph
(2)--
(A) by striking ``paragraph (1)'' and inserting
``paragraph (1)(B)''; and
(B) by striking ``section 618(b)'' and inserting
``section 618(a)(1)(A)'';
(3) in paragraph (3), by striking ``intermediate educational
unit'' and inserting ``educational service agency'';
(4) in paragraph (4)--
(A) in subparagraph (A), by striking ``intermediate
educational unit'' and inserting ``educational service
agency''; and
(B) in subparagraph (B), by striking ``intermediate
educational units'' and inserting ``educational service
agencies''; and
(5) by amending subparagraph (C) to read as follows:
``(C) provide the child a free appropriate public
education in accordance with part B of the Individuals
with Disabilities Education Act and procedural
safeguards in accordance with the following provisions
of section 615 of such Act:
``(i) Paragraphs (1), and (3) through (6) of
subsection (b).
``(ii) Subsections (c) through (g).
``(iii) Subsection (h), except for the matter
in paragraph (4) pertaining to transmission of
findings and decisions to a State advisory panel.
``(iv) Paragraphs (1) and (2) of subsection
(i).
``(v) Subsection ( j)--
``(I) except that such subsection
shall not be applicable to a decision by
the University to refuse to admit a
child; or
[[Page 112 STAT. 1830]]
``(II) to dismiss a child, except
that, before dismissing any child, the
University shall give at least 60 days
written notice to the child's parents
and to the local educational agency in
which the child resides, unless the
dismissal involves a suspension,
expulsion, or other change in placement
covered under section 615(k).
``(vi) Subsections (k) through (m).''.
SEC. 913. AGREEMENT WITH GALLAUDET UNIVERSITY. <<NOTE: District of
Columbia.>>
Section 105(a) of the Education of the Deaf Act of 1986 (20 U.S.C.
4305(a)) is amended--
(1) by striking ``within 1 year after enactment of the
Education of the Deaf Act Amendments of 1992, a new'' and
inserting ``and periodically update, an''; and
(2) by amending the second sentence to read as follows:
``The Secretary or the University shall determine the necessity
for the periodic update described in the preceding sentence.''.
SEC. 914. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE DEAF.
Paragraph (2) of section 112(a) of the Education of the Deaf Act of
1986 (20 U.S.C. 4332(a)) is amended to read as follows:
``(2) The Secretary and the institution of higher education with
which the Secretary has an agreement under this section--
``(A) shall periodically assess the need for modification of
the agreement; and
``(B) shall periodically update the agreement as determined
necessary by the Secretary or the institution.''.
SEC. 915. DEFINITIONS.
Section 201 of the Education of the Deaf Act of 1986 (20 U.S.C.
4351) is amended--
(1) in paragraph (1)(C), by striking ``Palau (but only until
the Compact of Free Association with Palau takes effect),''; and
(2) in paragraph (5)--
(A) by inserting ``and'' after ``Virgin Islands,'';
and
(B) by striking ``, and Palau (but only until the
Compact of Free Association with Palau takes effect)''.
SEC. 916. GIFTS.
Subsection (b) of section 203 of the Education of the Deaf Act of
1986 (20 U.S.C. 4353) is amended to read as follows:
``(b) Independent Financial and Compliance Audit.--
``(1) <<NOTE: Gallaudet University. District of
Columbia.>> In general.--Gallaudet University shall have an
annual independent financial and compliance audit made of the
programs and activities of the University, including the
national mission and school operations of the elementary and
secondary education programs at Gallaudet. The institution of
higher education with which the Secretary has an agreement under
section 112 shall have an annual independent financial and
compliance audit made of the programs and activities of such
institution of higher education, including NTID, and containing
specific schedules and analyses for all NTID funds, as
determined by the Secretary.
``(2) Compliance.--As used in paragraph (1), compliance
means compliance with sections 102(b), 105(b)(4), 112(b)(5),
[[Page 112 STAT. 1831]]
and 203(c), paragraphs (2) and (3) of section 207(b),
subsections (b)(2), (b)(3), and (c) through (f ), of section
207, and subsections (b) and (c) of section 210.
``(3) Submission of audits.--A copy of each audit described
in paragraph (1) shall be provided to the Secretary within 15
days of acceptance of the audit by the University or the
institution authorized to establish and operate the NTID under
section 112(a), as the case may be, but not later than January
10 of each year.''.
SEC. 917. REPORTS.
Section 204(3) of the Education of the Deaf Act of 1986 (20 U.S.C.
4354(3)) is amended--
(1) in subparagraph (A), by striking ``The annual'' and
inserting ``A summary of the annual''; and
(2) in subparagraph (B), by striking ``the annual'' and
inserting ``a summary of the annual''.
SEC. 918. MONITORING, EVALUATION, AND REPORTING.
Section 205(c) of the Education of the Deaf Act of 1986 (20 U.S.C.
4355(c)) is amended by striking ``1993, 1994, 1995, 1996, and 1997'' and
inserting ``1998 through 2003''.
SEC. 919. FEDERAL ENDOWMENT PROGRAMS.
Section 207 of the Education of the Deaf Act of 1986 (20 U.S.C.
4357) is amended--
(1) in subsection (b)--
(A) by amending paragraph (2) to read as follows:
``(2) Subject to the availability of appropriations, the Secretary
shall make payments to each Federal endowment fund in amounts equal to
sums contributed to the fund from non-Federal sources during the fiscal
year in which the appropriations are made available (excluding transfers
from other endowment funds of the institution involved).''; and
(B) by striking paragraph (3);
(2) in subsection (c)(1), by inserting ``the Federal
contribution of'' after ``shall invest'';
(3) in subsection (d)--
(A) in paragraph (2)(C), by striking ``Beginning on
October 1, 1992, the'' and inserting ``The''; and
(B) in paragraph (3)(A), by striking ``prior'' and
inserting ``current''; and
(4) in subsection (h)--
(A) in paragraph (1), by striking ``1993 through
1997'' and inserting ``1998 through 2003''; and
(B) in paragraph (2), by striking ``1993 through
1997'' and inserting ``1998 through 2003''.
SEC. 920. SCHOLARSHIP PROGRAM.
Section 208 of the Education of the Deaf Act of 1986 (20 U.S.C.
4358) is repealed.
SEC. 921. OVERSIGHT AND EFFECT OF AGREEMENTS.
Section 209 of the Education of the Deaf Act of 1986 (20 U.S.C.
4359) is amended--
(1) in subsection (a), by striking ``Committee on Education
and Labor'' and inserting ``Committee on Education and the
Workforce''; and
[[Page 112 STAT. 1832]]
(2) by redesignating such section as section 208. <<NOTE: 20
USC 4359.>>
SEC. 922. INTERNATIONAL STUDENTS.
(a) Amendment.--Section 210 of the Education of the Deaf Act of 1986
(20 U.S.C. 4359a) is amended--
(1) in subsection (a)--
(A) by striking ``10 percent'' and inserting ``15
percent''; and
(B) by inserting before the period the following:
``, except that in any school year no United States
citizen who is qualified to be admitted to the
University or NTID and applies for admission to the
University or NTID shall be denied admission because of
the admission of an international student''; and
(2) in subsection (b), by striking ``surcharge of 75 percent
for the academic year 1993-1994 and 90 percent beginning with
the academic year 1994-1995'' and inserting ``surcharge of 100
percent for the academic year 1999-2000 and any succeeding
academic year''.
(b) Conforming Amendment.--Section 210 of such Act (20 U.S.C. 4359a)
is amended by redesignating such section as section 209.
SEC. 923. RESEARCH PRIORITIES.
Title II of the Education of the Deaf Act of 1986 is amended by
striking section 211 (20 U.S.C. 4360) and inserting the following:
``SEC. 210. RESEARCH PRIORITIES. <<NOTE: Gallaudet University. National
Technical Institute for the Deaf. 20 USC 4359b.>>
``(a) Research Priorities.--Gallaudet University and the National
Technical Institute for the Deaf shall each establish and disseminate
priorities for their national mission with respect to deafness related
research, development, and demonstration activities, that reflect public
input, through a process that includes consumers, constituent groups,
and the heads of other federally funded programs. The priorities for the
University shall include activities conducted as part of the
University's elementary and secondary education programs under section
104.
``(b) <<NOTE: Deadline.>> Research Reports.--The University and NTID
shall each prepare and submit an annual research report, to the
Secretary, the Committee on Education and the Workforce of the House of
Representatives, and the Committee on Labor and Human Resources of the
Senate, not later than January 10 of each year, that shall include--
``(1) a summary of the public input received as part of the
establishment and dissemination of priorities required by
subsection (a), and the University's and NTID's response to the
input; and
``(2) a summary description of the research undertaken by
the University and NTID, the start and projected end dates for
each research project, the projected cost and source or sources
of funding for each project, and any products resulting from
research completed in the prior fiscal year.''.
SEC. 924. NATIONAL STUDY ON THE EDUCATION OF THE DEAF.
The Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.) is
amended by adding after section 210 (as inserted by section 923) the
following:
[[Page 112 STAT. 1833]]
``SEC. 211. NATIONAL STUDY ON THE EDUCATION OF THE DEAF. <<NOTE: 20 USC
4360.>>
``(a) Conduct of Study.--
``(1) In general.--The Secretary shall conduct a national
study on the education of the deaf, to identify education-
related barriers to successful postsecondary education
experiences and employment for individuals who are deaf, and
those education-related factors that contribute to successful
postsecondary education experiences and employment for
individuals who are deaf.
``(2) Definition.--In this section the term `deaf', when
used with respect to an individual, means an individual with a
hearing impairment, including an individual who is hard of
hearing, an individual deafened later in life, and an individual
who is profoundly deaf.
``(b) Public Input and Consultation.--
``(1) In general.--In conducting such study, the Secretary
shall obtain input from the public. To obtain such input, the
Secretary shall--
``(A) <<NOTE: Federal Register,
publication.>> publish a notice with an opportunity for
comment in the Federal Register;
``(B) consult with individuals and organizations
representing a wide range of perspectives on deafness-
related issues, including organizations representing
individuals who are deaf, parents of children who are
deaf, educators, and researchers; and
``(C) take such other action as the Secretary deems
appropriate, which may include holding public meetings.
``(2) Structured opportunities.--The Secretary shall
provide structured opportunities to receive and respond to the
viewpoints of the individuals and organizations described in
paragraph (1)(B).
``(c) <<NOTE: Deadline.>> Report.--The Secretary shall report to
Congress not later than 18 months after the date of enactment of the
Education of the Deaf Amendments of 1998 regarding the results of the
study. The report shall contain--
``(1) recommendations, including recommendations for
legislation, that the Secretary deems appropriate; and
``(2) a detailed summary of the input received under
subsection (b) and the ways in which the report addresses such
input.
``(d) Authorization of Appropriations.--There are authorized to be
appropriated $1,000,000 for each of the fiscal years 1999 and 2000 to
carry out the provisions of this section.''.
SEC. 925. AUTHORIZATION OF APPROPRIATIONS.
Title II of the Education of the Deaf Act of 1986 (20 U.S.C. 4351 et
seq.) is amended by adding after section 211 (as inserted by section
924) the following:
``SEC. 212. AUTHORIZATION OF APPROPRIATIONS. <<NOTE: 20 USC 4360a.>>
``(a) Gallaudet University.--There are authorized to be appropriated
such sums as may be necessary for each of the fiscal years 1998 through
2003 to carry out the provisions of title I and this title, relating
to--
``(1) Gallaudet University;
``(2) Kendall Demonstration Elementary School; and
``(3) the Model Secondary School for the Deaf.
[[Page 112 STAT. 1834]]
``(b) National Technical Institute for the Deaf.--There are
authorized to be appropriated such sums as may be necessary for each of
the fiscal years 1998 through 2003 to carry out the provisions of title
I and this title relating to the National Technical Institute for the
Deaf.''.
PART C--UNITED STATES INSTITUTE OF PEACE
SEC. 931. AUTHORITIES OF THE UNITED STATES INSTITUTE OF PEACE.
The United States Institute of Peace Act (22 U.S.C. 4601 et seq.) is
amended--
(1) in section 1705 (22 U.S.C. 4604)--
(A) in subsection (f ), by inserting ``personal
service and other'' after ``may enter into''; and
(B) in subsection (o), by inserting after
``Services'' the following: ``and use all sources of
supply and services of the General Services
Administration'';
(2) in section 1710(a)(1) (22 U.S.C. 4609(a)(1))--
(A) by striking ``1993'' and inserting ``1999''; and
(B) by striking ``6'' and inserting ``4''; and
(3) in the second and third sentences of section 1712 (22
U.S.C. 4611), by striking ``shall'' each place the term appears
and inserting ``may''.
PART D--VOLUNTARY RETIREMENT INCENTIVE PLANS
SEC. 941. VOLUNTARY RETIREMENT INCENTIVE PLANS.
(a) In General.--Section 4 of the Age Discrimination in Employment
Act of 1967 (29 U.S.C. 623) is amended by adding at the end the
following:
``(m) Notwithstanding subsection (f )(2)(B), it shall not be a
violation of subsection (a), (b), (c), or (e) solely because a plan of
an institution of higher education (as defined in section 101 of the
Higher Education Act of 1965) offers employees who are serving under a
contract of unlimited tenure (or similar arrangement providing for
unlimited tenure) supplemental benefits upon voluntary retirement that
are reduced or eliminated on the basis of age, if--
``(1) such institution does not implement with respect to
such employees any age-based reduction or cessation of benefits
that are not such supplemental benefits, except as permitted by
other provisions of this Act;
``(2) such supplemental benefits are in addition to any
retirement or severance benefits which have been offered
generally to employees serving under a contract of unlimited
tenure (or similar arrangement providing for unlimited tenure),
independent of any early retirement or exit-incentive plan,
within the preceding 365 days; and
``(3) any employee who attains the minimum age and satisfies
all non-age-based conditions for receiving a benefit under the
plan has an opportunity lasting not less than 180 days to elect
to retire and to receive the maximum benefit that could then be
elected by a younger but otherwise similarly
[[Page 112 STAT. 1835]]
situated employee, and the plan does not require retirement to
occur sooner than 180 days after such election.''.
(b) Plans Permitted.--Section 4(i)(6) of the Age Discrimination in
Employment Act of 1967 (29 U.S.C. 623(i)(6)) is amended by adding after
the word ``accruals'' the following: ``or it is a plan permitted by
subsection (m).''
(c) <<NOTE: 29 USC 623 note.>> Construction.--Nothing in the
amendment made by subsection (a) shall affect the application of section
4 of the Age Discrimination in Employment Act of 1967 (29 U.S.C. 623)
with respect to--
(1) any plan described in subsection (m) of section 4 of
such Act (as added by subsection (a)), for any period prior to
enactment of such Act;
(2) any plan not described in subsection (m) of section 4 of
such Act (as added by subsection (a)); or
(3) any employer other than an institution of higher
education (as defined in section 101 of the Higher Education Act
of 1965).
(d) Effective Date.-- <<NOTE: 29 USC 623 note.>>
(1) In general.--This section shall take effect on the date
of enactment of this Act.
(2) Effect on causes of action existing before date of
enactment.--The amendment made by subsection (a) shall not apply
with respect to any cause of action arising under the Age
Discrimination in Employment Act of 1967 prior to the date of
enactment of this Act.
PART E--GENERAL EDUCATION PROVISIONS ACT AMENDMENT
SEC. 951. AMENDMENT TO FAMILY EDUCATIONAL RIGHTS AND PRIVACY ACT OF 1974
Section 444(b) of the General Education Provisions Act (20 U.S.C.
1232g(b)), also known as the Family Educational Rights and Privacy Act
of 1974, is amended--
(1) in paragraph (1), by amending subparagraph (C) to read
as follows:
``(C)(i) authorized representatives of (I) the Comptroller
General of the United States, (II) the Secretary, or (III) State
educational authorities, under the conditions set forth in
paragraph (3), or (ii) authorized representatives of the
Attorney General for law enforcement purposes under the same
conditions as apply to the Secretary under paragraph (3);''; and
(2) in paragraph (6)--
(A) by inserting ``(A)'' after ``(6)'';
(B) in subparagraph (A), as designated by
subparagraph (A) of this paragraph--
(i) by striking ``the results'' and inserting
``or a nonforcible sex offense, the final
results''; and
(ii) by striking ``such crime'' each place the
term appears and inserting ``such crime or
offense''; and
(C) adding at the end thereof the following:
``(B) Nothing in this section shall be construed to prohibit an
institution of postsecondary education from disclosing the final results
of any disciplinary proceeding conducted by such institution against a
student who is an alleged perpetrator of any crime of violence (as that
term is defined in section 16 of title 18, United
[[Page 112 STAT. 1836]]
States Code), or a nonforcible sex offense, if the institution
determines as a result of that disciplinary proceeding that the student
committed a violation of the institution's rules or policies with
respect to such crime or offense.
``(C) For the purpose of this paragraph, the final results of any
disciplinary proceeding--
``(i) shall include only the name of the student, the
violation committed, and any sanction imposed by the institution
on that student; and
``(ii) may include the name of any other student, such as a
victim or witness, only with the written consent of that other
student.''.
SEC. 952. ALCOHOL OR DRUG POSSESSION DISCLOSURE.
Section 444 of the General Education Provisions Act (20 U.S.C.
1232g) is amended by adding at the end the following:
``(i) Drug and Alcohol Violation Disclosures.--
``(1) In general.--Nothing in this Act or the Higher
Education Act of 1965 shall be construed to prohibit an
institution of higher education from disclosing, to a parent or
legal guardian of a student, information regarding any violation
of any Federal, State, or local law, or of any rule or policy of
the institution, governing the use or possession of alcohol or a
controlled substance, regardless of whether that information is
contained in the student's education records, if--
``(A) the student is under the age of 21; and
``(B) the institution determines that the student
has committed a disciplinary violation with respect to
such use or possession.
``(2) State law regarding disclosure.--Nothing in paragraph
(1) shall be construed to supersede any provision of State law
that prohibits an institution of higher education from making
the disclosure described in subsection (a).''.
PART F--LIAISON FOR PROPRIETARY INSTITUTIONS OF HIGHER EDUCATION
SEC. 961. LIAISON FOR PROPRIETARY INSTITUTIONS OF HIGHER EDUCATION.
Title II of the Department of Education Organization Act (20 U.S.C.
3411 et seq.) is amended by adding at the end the following:
``SEC. 219. <<NOTE: 20 USC 3426.>> LIAISON FOR PROPRIETARY INSTITUTIONS
OF HIGHER EDUCATION.
``(a) Establishment.--There shall be in the Department a Liaison for
Proprietary Institutions of Higher Education, who shall be an officer of
the Department appointed by the Secretary.
``(b) <<NOTE: Deadline.>> Appointment.--The Secretary shall appoint,
not later than 6 months after the date of enactment of the Higher
Education Amendments of 1998 a Liaison for Proprietary Institutions of
Higher Education who shall be a person who--
``(1) has attained a certificate or degree from a
proprietary institution of higher education; or
``(2) has been employed in a proprietary institution setting
for not less than 5 years.
[[Page 112 STAT. 1837]]
``(c) Duties.--The Liaison for Proprietary Institutions of Higher
Education shall--
``(1) serve as the principal advisor to the Secretary on
matters affecting proprietary institutions of higher education;
``(2) provide guidance to programs within the Department
that involve functions affecting proprietary institutions of
higher education; and
``(3) work with the Federal Interagency Committee on
Education to improve the coordination of--
``(A) the outreach programs in the numerous Federal
departments and agencies that administer education and
job training programs;
``(B) collaborative business and education
partnerships; and
``(C) education programs located in, and involving,
rural areas.''.
PART G--AMENDMENTS TO OTHER STATUTES
SEC. 971. NONDISCHAREABILITY OF CERTAIN CLAIMS FOR EDUCATIONAL BENEFITS
PROVIDED TO OBTAIN HIGHER EDUCATION.
(a) Amendment.--Section 523(a)(8) of title 11, United States Code,
is amended by striking ``unless--'' and all that follows through ``(B)
excepting such debt'' and inserting ``unless excepting such debt''.
(b) <<NOTE: Applicability. 11 USC 523 note.>> Effective Date.--The
amendment made by subsection (a) shall apply only with respect to cases
commenced under title 11, United States Code, after the date of
enactment of this Act.
SEC. 972. GNMA GUARANTEE FEE.
(a) In General.--Section 306(g)(3)(A) of the National Housing Act
(12 U.S.C. 1721(g)(3)(A)) is amended by striking ``No fee or charge''
and all that follows through ``States)'' and inserting ``The Association
shall assess and collect a fee in an amount equal to nine basis
points''.
(b) <<NOTE: 12 USC 1721 note.>> Effective Date.--The amendment made
by this section shall take effect on October 1, 2004.
PART H--REPEALS
SEC. 981. REPEALS.
Section 4122 of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7132) is repealed.
Approved October 7, 1998.
LEGISLATIVE HISTORY--H.R. 6 (S. 1882):
---------------------------------------------------------------------------
HOUSE REPORTS: Nos. 105-481 (Comm. on Education and the Workforce) and
105-750 (Comm. of Conference).
SENATE REPORTS: No. 105-181 accompanying S. 1882 (Comm. on Labor and
Human Resources).
CONGRESSIONAL RECORD, Vol. 144 (1998):
Apr. 29, May 5, 6, considered and passed House.
July 9, considered and passed Senate, amended, in lieu of S.
1882.
Sept. 28, House agreed to conference report.
Sept. 29, Senate agreed to conference report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 34 (1998):
Oct. 7, Presidential remarks and statement.
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