S. 1882 (105th): Higher Education Amendments of 1998

105th Congress, 1997–1998. Text as of May 04, 1998 (Reported by Senate Committee).

Status & Summary | PDF | Source: GPO

S 1882 RS

Calendar No. 354

105th CONGRESS

2d Session

S. 1882

[Report No. 105-181]

To reauthorize the Higher Education Act of 1965, and for other purposes.

IN THE SENATE OF THE UNITED STATES

March 30, 1998

Mr. JEFFORDS (for himself, Mr. KENNEDY, Mr. COATS, Mr. DODD, Ms. COLLINS, and Mr. DEWINE) introduced the following bill; which was read twice and referred to the Committee on Labor and Human Resources

May 4, 1998

Reported by Mr. JEFFORDS, with an amendment

[Strike out all after the enacting clause and insert the part printed in italic]


A BILL

To reauthorize the Higher Education Act of 1965, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

[Struck out->] SECTION 1. SHORT TITLE. [<-Struck out]

    [Struck out->] This Act may be cited as the ‘Higher Education Amendments of 1998’. [<-Struck out]

[Struck out->] SEC. 2. REFERENCES. [<-Struck out]

    [Struck out->] Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment 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.). [<-Struck out]

[Struck out->]

TITLE I--GENERAL PROVISIONS

[<-Struck out]

[Struck out->] SEC. 101. GENERAL PROVISIONS. [<-Struck out]

    [Struck out->] (a) REPEAL; TRANSFER AND REDESIGNATION- The Act (20 U.S.C. 1001 et seq.) is amended-- [<-Struck out]

      [Struck out->] (1) by repealing title I (20 U.S.C. 1001 et seq.); [<-Struck out]

      [Struck out->] (2) by repealing sections 1203, 1206, 1211, and 1212 (20 U.S.C. 1143, 1145a, 1145e, and 1145f); [<-Struck out]

      [Struck out->] (3) by striking the heading for title XII (20 U.S.C. 1141 et seq.); [<-Struck out]

      [Struck out->] (4) by inserting before title III (20 U.S.C. 1051 et seq.) the following: [<-Struck out]

[Struck out->]

‘TITLE I--GENERAL PROVISIONS’;

[<-Struck out]

      [Struck out->] (5) by transferring sections 1201, 1202, 1204 (as renumbered by Public Law 90-575), 1204 (as added by Public Law 96-374), 1205, 1207, 1208, 1209, 1210, and 1213 (20 U.S.C. 1141, 1142, 1144, 1144a, 1145, 1145b, 1145c, 1145d, 1145d-1, and 1145g) to follow the heading for title I (as inserted by paragraph (4)); and [<-Struck out]

      [Struck out->] (6) by redesignating sections 1201, 1202, 1204 (as renumbered by Public Law 90-575), 1204 (as added by Public Law 96-374), 1205, 1207, 1208, 1209, 1210, and 1213 as sections 101, 102, 103, 104, 105, 106, 107, 108, 109, and 110, respectively. [<-Struck out]

[Struck out->] SEC. 102. FEDERAL CONTROL OF EDUCATION PROHIBITED. [<-Struck out]

    [Struck out->] Section 103 (as redesignated by section 101(a)(6)) (20 U.S.C. 1144) is amended by striking ‘(b)’. [<-Struck out]

[Struck out->] SEC. 103. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND INTEGRITY. [<-Struck out]

    [Struck out->] Section 105 (as redesignated by section 101(a)(6)) (20 U.S.C. 1145) is amended-- [<-Struck out]

      [Struck out->] (1) by striking the last sentence of subsection (a); [<-Struck out]

      [Struck out->] (2) by redesignating subsections (c) through (f) as subsections (d) through (g), respectively; [<-Struck out]

      [Struck out->] (3) by inserting after subsection (b) the following: [<-Struck out]

    [Struck out->]

    ‘(c) PUBLIC NOTICE- The Secretary shall-- [<-Struck out]

      [Struck out->]

      ‘(1) 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 [<-Struck out]

      [Struck out->]

      ‘(2) publicly solicit nominations for each vacant position or expiring term of office on the Committee.’; [<-Struck out]

      [Struck out->] (4) in subsection (d) (as redesignated by paragraph (2))-- [<-Struck out]

        [Struck out->] (A) by striking paragraph (6); and [<-Struck out]

        [Struck out->] (B) by redesignating paragraphs (7) and (8) as paragraphs (6) and (7), respectively; and [<-Struck out]

      [Struck out->] (5) in subsection (g) (as redesignated by paragraph (2)), by striking ‘1998’ and inserting ‘2004’. [<-Struck out]

[Struck out->] SEC. 104. PRIOR RIGHTS AND OBLIGATIONS; RECOVERY OF PAYMENTS. [<-Struck out]

    [Struck out->] Title I (20 U.S.C. 1001 et seq.) is amended by adding after section 110 (as redesignated by section 101(a)(6)) the following: [<-Struck out]

[Struck out->]
‘SEC. 111. PRIOR RIGHTS AND OBLIGATIONS. [<-Struck out]

    [Struck out->]

    ‘(a) AUTHORIZATION OF APPROPRIATIONS- [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

      [Struck out->]

      ‘(2) POST-1992 AND PRE-1998 PART C OF TITLE VII- There are authorized to be appropriated such [<-Struck out]

[Struck out->] 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-- [<-Struck out]

        [Struck out->]

        ‘(A) after the effective date of the Higher Education Amendments of 1992; and [<-Struck out]

        [Struck out->]

        ‘(B) prior to the date of enactment of the Higher Education Amendments of 1998. [<-Struck out]

    [Struck out->]

    ‘(b) LEGAL RESPONSIBILITIES- [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

      [Struck out->]

      ‘(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-- [<-Struck out]

        [Struck out->]

        ‘(A) after the effective date of the Higher Education Amendments of 1992; and [<-Struck out]

        [Struck out->]

        ‘(B) prior to the date of enactment of the Higher Education Amendments of 1998, [<-Struck out]

      [Struck out->] shall be subject to the requirements of such part as such part was in effect during such period. [<-Struck out]

[Struck out->]
‘SEC. 112. RECOVERY OF PAYMENTS. [<-Struck out]

    [Struck out->]

    ‘(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 such 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 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. [<-Struck out]

    [Struck out->]

    ‘(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-- [<-Struck out]

      [Struck out->]

      ‘(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 [<-Struck out]

      [Struck out->]

      ‘(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, [<-Struck out]

    [Struck out->] 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. [<-Struck out]

    [Struck out->]

    ‘(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.’. [<-Struck out]

[Struck out->] SEC. 105. TECHNICAL AND CONFORMING AMENDMENTS. [<-Struck out]

    [Struck out->] (a) CONFORMING AMENDMENTS CORRECTING REFERENCES TO SECTION 1201- [<-Struck out]

      [Struck out->] (1) AGRICULTURE- [<-Struck out]

        [Struck out->] (A) STUDENT INTERNSHIP PROGRAMS- Section 922 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 2279c) is amended-- [<-Struck out]

          [Struck out->] (i) in subsection (a)(1)(B)-- [<-Struck out]

            [Struck out->] (I) by striking ‘1201’ and inserting ‘101’; and [<-Struck out]

            [Struck out->] (II) by striking ‘(20 U.S.C. 1141)’; and [<-Struck out]

          [Struck out->] (ii) in subsection (b)(1)-- [<-Struck out]

            [Struck out->] (I) by striking ‘1201’ and inserting ‘101’; and [<-Struck out]

            [Struck out->] (II) by striking ‘(20 U.S.C. 1141)’. [<-Struck out]

        [Struck out->] (B) AGRICULTURAL SCIENCES EDUCATION- Section 1417(h)(1)(A) of the National Agricultural Research, Extension, and [<-Struck out]

[Struck out->] Teaching Policy Act of 1977 (7 U.S.C. 3152(h)(1)(A)) is amended-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

      [Struck out->] (2) ARMED FORCES- [<-Struck out]

        [Struck out->] (A) SCIENCE AND MATHEMATICS EDUCATION IMPROVEMENT PROGRAM- Section 2193(c)(1) of title 10, United States Code, is amended-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (B) SUPPORT OF SCIENCE, MATHEMATICS, AND ENGINEERING EDUCATION- Section 2199(2) of title 10, United States Code, is amended-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (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-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (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-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (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-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (F) ENVIRONMENTAL SCHOLARSHIP AND FELLOWSHIP PROGRAMS- Section 4451(b)(1) of the National Defense Authorization Act for 1993 (10 U.S.C. 2701 note) is amended-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

      [Struck out->] (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-- [<-Struck out]

        [Struck out->] (A) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

        [Struck out->] (B) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

      [Struck out->] (4) 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(a)’. [<-Struck out]

      [Struck out->] (5) EDUCATION- [<-Struck out]

        [Struck out->] (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’. [<-Struck out]

        [Struck out->] (B) PART F DEFINITIONS- Section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088) is amended-- [<-Struck out]

          [Struck out->] (i) in subsection (a)-- [<-Struck out]

            [Struck out->] (I) in the matter preceding paragraph (1)(A), by striking ‘1201(a)’ and inserting ‘101(a)’; [<-Struck out]

            [Struck out->] (II) in paragraph (1)(C), by striking ‘1201(a)’ and inserting ‘101(a)’; [<-Struck out]

            [Struck out->] (III) in the first sentence of the matter preceding clause (i) of paragraph (2)(A), by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

            [Struck out->] (IV) in the matter following paragraph (2)(B)(ii), by striking ‘1201(a)’ and inserting ‘101(a)’; [<-Struck out]

          [Struck out->] (ii) in subsection (b)-- [<-Struck out]

            [Struck out->] (I) in the first sentence-- [<-Struck out]

[Struck out->] (aa) in paragraph (2), by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

[Struck out->] (bb) in paragraph (3), by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

            [Struck out->] (II) in the second sentence, by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (iii) in subsection (c)-- [<-Struck out]

            [Struck out->] (I) in the first sentence, by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

            [Struck out->] (II) in the second sentence, by striking ‘1201(a)’ and inserting ‘101(a)’. [<-Struck out]

        [Struck out->] (C) 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)’. [<-Struck out]

        [Struck out->] (D) SMALL STATE TEACHING INITIATIVE- Section 591(d)(2) of the Higher Education Act of 1965 (20 U.S.C. 1115(d)(2)) is amended by striking ‘1201(a)’ and inserting ‘101(a)’. [<-Struck out]

        [Struck out->] (E) INTERNATIONAL EDUCATION PROGRAMS- Section 631(a)(8) of the Higher Education Act of 1965 (20 U.S.C. 1132(a)(8)) is amended by striking ‘1201(a)’ each place it appears and inserting ‘101(a)’. [<-Struck out]

        [Struck out->] (F) DWIGHT D. EISENHOWER LEADERSHIP PROGRAM- Section 1081(d) of the Higher Education Act of 1965 (20 U.S.C. 1135f(d)) is amended by striking ‘1201’ and inserting ‘101’. [<-Struck out]

        [Struck out->] (G) 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(a)’. [<-Struck out]

        [Struck out->] (H) 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(a)’. [<-Struck out]

        [Struck out->] (I) 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(a)’. [<-Struck out]

        [Struck out->] (J) 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(a)’. [<-Struck out]

        [Struck out->] (K) JAMES MADISON MEMORIAL FELLOWSHIPS- Section 815 of the James Madison Memorial Fellowship Act (20 U.S.C. 4514) is amended-- [<-Struck out]

          [Struck out->] (i) in paragraph (3), by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (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’. [<-Struck out]

        [Struck out->] (L) BARRY GOLDWATER SCHOLARSHIPS- Section 1403(4) of the Barry Goldwater Scholarship and Excellence in Education Act (20 U.S.C. 4702(4)) is amended-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (M) 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(a)’. [<-Struck out]

        [Struck out->] (N) 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(a)’. [<-Struck out]

        [Struck out->] (O) 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(a)’. [<-Struck out]

        [Struck out->] (P) 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(a)’. [<-Struck out]

      [Struck out->] (6) FOREIGN RELATIONS- [<-Struck out]

        [Struck out->] (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(a)’. [<-Struck out]

        [Struck out->] (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-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (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(a)’. [<-Struck out]

        [Struck out->] (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(a)’. [<-Struck out]

      [Struck out->] (7) INDIANS- [<-Struck out]

        [Struck out->] (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’. [<-Struck out]

        [Struck out->] (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(a)’. [<-Struck out]

        [Struck out->] (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-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (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(a)’. [<-Struck out]

      [Struck out->] (8) LABOR- [<-Struck out]

        [Struck out->] (A) REHABILITATION DEFINITIONS- Section 7(32) of the Rehabilitation Act of 1973 (29 U.S.C. 706(32)) is amended-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (B) STATE PLANS- Section 101(a)(7)(A)(iv)(II) of the Rehabilitation Act of 1973 (29 U.S.C. 721(a)(7)(A)(iv)(II)) is amended-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (C) JTPA DEFINITIONS- Section 4(12) of the Job Training Partnership Act (29 U.S.C. 1503(12)) is amended by striking ‘1201(a)’ and inserting ‘101(a)’. [<-Struck out]

        [Struck out->] (D) TUITION CHARGES- Section 141(d)(3)(B) of the Job Training Partnership Act (29 U.S.C. 1551(d)(3)(B)) is amended-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

      [Struck out->] (9) 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(a)’. [<-Struck out]

      [Struck out->] (10) 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’. [<-Struck out]

      [Struck out->] (11) POSTAL SERVICE- Section 3626(b)(3) of title 39, United States Code, is amended-- [<-Struck out]

        [Struck out->] (A) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

        [Struck out->] (B) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

      [Struck out->] (12) BLOCK GRANTS TO STATES- Section 404(h)(5)(A)(i) of the Social Security Act (42 U.S.C. 604(h)(5)(A)(i)) is amended-- [<-Struck out]

        [Struck out->] (A) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

        [Struck out->] (B) by striking ‘(20 U.S.C. 1088(a)(1) or 1141(a))’. [<-Struck out]

      [Struck out->] (13) PUBLIC HEALTH AND WELFARE- [<-Struck out]

        [Struck out->] (A) SCIENTIFIC AND TECHNICAL EDUCATION- Section 3(g) of the Scientific and Advanced-Technology Act of 1992 (42 U.S.C. 1862i(g)) is amended-- [<-Struck out]

          [Struck out->] (i) in paragraph (2)-- [<-Struck out]

            [Struck out->] (I) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

            [Struck out->] (II) by striking ‘(20 U.S.C. 1141(a))’; and [<-Struck out]

          [Struck out->] (ii) in paragraph (3)-- [<-Struck out]

            [Struck out->] (I) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

            [Struck out->] (II) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (B) OLDER AMERICANS- Section 102(32) of the Older Americans Act of 1965 (42 U.S.C. 3002(32)) is amended-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (C) 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-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (D) 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-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (E) 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-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (F) HEAD START- Section 649(c)(3) of the Head Start Act (42 U.S.C. 9844(c)(3)) is amended-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (G) 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(a)’. [<-Struck out]

        [Struck out->] (H) 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(a)’. [<-Struck out]

        [Struck out->] (I) DRUG ABUSE EDUCATION- Section 3601(7) of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11851(7)) is amended-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (J) NATIONAL AND COMMUNITY SERVICE- Section 101(13) of the National and Community Service Act of 1990 (42 U.S.C. 12511(13)) is amended-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (K) CIVILIAN COMMUNITY CORPS- Section 166(6) of the National and Community Service Act of 1990 (42 U.S.C. 12626(6)) is amended-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (L) 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-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201’ each place it appears and inserting ‘101’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(i))’. [<-Struck out]

        [Struck out->] (M) POLICE CORPS- The definition of institution of higher education in section 200103 of the Police Corps Act (42 U.S.C. 14092) is amended-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

        [Struck out->] (N) 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-- [<-Struck out]

          [Struck out->] (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

      [Struck out->] (14) TELECOMMUNICATIONS- Section 223(h)(4) of the Telecommunications Act of 1934 (47 U.S.C. 223(h)(4)) is amended-- [<-Struck out]

        [Struck out->] (A) by striking ‘1201’ and inserting ‘101’; and [<-Struck out]

        [Struck out->] (B) by striking ‘(20 U.S.C. 1141)’. [<-Struck out]

      [Struck out->] (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-- [<-Struck out]

        [Struck out->] (A) by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

        [Struck out->] (B) by striking ‘(20 U.S.C. 1141(a))’. [<-Struck out]

    [Struck out->] (b) CROSS REFERENCES- The Act (20 U.S.C. 1001 et seq.) is amended-- [<-Struck out]

      [Struck out->] (1) in section 402A(c)(2) (20 U.S.C. 1070a-11(c)(2)), by striking ‘1210’ and inserting ‘110’; [<-Struck out]

      [Struck out->] (2) in section 481 (20 U.S.C. 1088)-- [<-Struck out]

        [Struck out->] (A) in subsection (a)-- [<-Struck out]

          [Struck out->] (i) in paragraph (1)-- [<-Struck out]

            [Struck out->] (I) in the matter preceding subparagraph (A), by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

            [Struck out->] (II) in subparagraph (C), by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

          [Struck out->] (ii) in paragraph (2)-- [<-Struck out]

            [Struck out->] (I) in the matter preceding clause (i) of subparagraph (A), by striking ‘1201(a)’ and inserting ‘101(a)’; and [<-Struck out]

            [Struck out->] (II) in the matter following clause (ii) of subparagraph (B), by striking ‘1201(a)’ and inserting ‘101(a)’; [<-Struck out]

        [Struck out->] (B) in subsection (b), by striking ‘1201(a)’ each place the term appears and inserting ‘101(a)’; and [<-Struck out]

        [Struck out->] (C) in subsection (c), by striking ‘1201(a)’ each place the term appears and inserting ‘101(a)’; [<-Struck out]

      [Struck out->] (3) in section 485(f)(1)(I) (20 U.S.C. 1092(f)(1)(I)), by striking ‘1213’ and inserting ‘111’; [<-Struck out]

      [Struck out->] (4) in section 498(j)(2) (20 U.S.C. 1099c(j)(2)), by striking ‘1201(a)(2)’ and inserting ‘101(a)(2)’; [<-Struck out]

      [Struck out->] (5) in section 591(d)(2) (20 U.S.C. 1115(d)(2)), by striking ‘1201(a)’ and inserting ‘101(a)’; [<-Struck out]

      [Struck out->] (6) in section 631(a)(8) (20 U.S.C. 1132(a)(8))-- [<-Struck out]

        [Struck out->] (A) by striking ‘section 1201(a)’ each place the term appears and inserting ‘section 101(a)’; and [<-Struck out]

        [Struck out->] (B) by striking ‘of 1201(a)’ and inserting ‘of section 101(a)’; and [<-Struck out]

      [Struck out->] (7) in section 1081(d) (20 U.S.C. 1135f(d)), by striking ‘1201’ and inserting ‘101(a)’. [<-Struck out]

[Struck out->]

TITLE II--IMPROVING TEACHER QUALITY

[<-Struck out]

[Struck out->] SEC. 201. IMPROVING TEACHER QUALITY. [<-Struck out]

    [Struck out->] The Act (20 U.S.C. 1001) is amended by inserting after section 112 (as added by section 104) the following: [<-Struck out]

[Struck out->]

‘TITLE II--IMPROVING TEACHER QUALITY

[<-Struck out]

[Struck out->]
‘SEC. 201. PURPOSES. [<-Struck out]

    [Struck out->]

    ‘The purpose of this title is to-- [<-Struck out]

      [Struck out->]

      ‘(1) improve student achievement; [<-Struck out]

      [Struck out->]

      ‘(2) improve the quality of the current and future teaching force by improving the preparation of prospective teachers and enhancing professional development activities; and [<-Struck out]

      [Struck out->]

      ‘(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, including training in the effective uses of technologies in the classroom. [<-Struck out]

[Struck out->]
‘PART A--TEACHER QUALITY [<-Struck out]

[Struck out->]
‘Subpart 1--Teacher Quality Enhancement Grants [<-Struck out]

[Struck out->]
‘SEC. 211. GRANTS AUTHORIZED. [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- The Secretary is authorized to award grants to States to enable the States to carry out the activities described in section 212. Each grant may be awarded for a period of not more than 5 years. [<-Struck out]

    [Struck out->]

    ‘(b) STATE DESIGNATION- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- A State desiring a grant under this subpart shall, consistent with State law, designate the chief individual or entity in the State responsible for the State supervision of education, to administer the activities assisted under this subpart. [<-Struck out]

      [Struck out->]

      ‘(2) CONSULTATION- The individual or entity designated under paragraph (1) shall consult with the Governor, State board of education, or State educational agency, as appropriate. [<-Struck out]

      [Struck out->]

      ‘(3) CONSTRUCTION- Nothing in this subpart 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. [<-Struck out]

    [Struck out->]

    ‘(c) MATCHING REQUIREMENT- Each State receiving a grant under this subpart shall provide, from non-Federal sources, an amount equal to 1/2 of the amount of the grant, in cash or in kind, to carry out the activities supported through the grant. [<-Struck out]

[Struck out->]
‘SEC. 212. USE OF FUNDS. [<-Struck out]

    [Struck out->]

    ‘A State that receives a grant under this subpart 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: [<-Struck out]

      [Struck out->]

      ‘(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, 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. [<-Struck out]

      [Struck out->]

      ‘(2) CERTIFICATION OR LICENSURE REQUIREMENTS- Reforming teacher certification or licensure requirements to ensure that new teachers have the necessary teaching skills and academic content knowledge in the subject areas in which teachers are assigned to teach. [<-Struck out]

      [Struck out->]

      ‘(3) ALTERNATIVES TO TRADITIONAL PREPARATION FOR TEACHING- Providing prospective teachers alternatives to traditional preparation for teaching through programs at colleges of arts and sciences or at nonprofit organizations. [<-Struck out]

      [Struck out->]

      ‘(4) ALTERNATIVE ROUTES- Funding programs that establish, expand, or improve alternative routes to State certification for highly qualified individuals from other occupations and recent college graduates with records of academic distinction, including support during the initial teaching experience. [<-Struck out]

      [Struck out->]

      ‘(5) RECRUITMENT; PAY; REMOVAL- Developing and implementing effective mechanisms to ensure that 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 remove teachers who are not qualified. [<-Struck out]

      [Struck out->]

      ‘(6) INNOVATIVE EFFORTS- Development and implementation of innovative efforts aimed at reducing the shortage of highly qualified teachers in high poverty urban and rural areas, that may include the recruitment of highly qualified individuals from other occupations through alternative certification programs. [<-Struck out]

      [Struck out->]

      ‘(7) 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. [<-Struck out]

[Struck out->]
‘SEC. 213. COMPETITIVE AWARDS. [<-Struck out]

    [Struck out->]

    ‘(a) ANNUAL AWARDS; COMPETITIVE BASIS- The Secretary shall award grants under this subpart annually and on a competitive basis. [<-Struck out]

    [Struck out->]

    ‘(b) PEER REVIEW PANEL- The Secretary shall provide the applications submitted by States under section 214 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. [<-Struck out]

    [Struck out->]

    ‘(c) PRIORITY- In recommending applications for funding to the Secretary, the panel shall give priority to applications from States that describe activities that-- [<-Struck out]

      [Struck out->]

      ‘(1) 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 areas in which the teachers plan to teach; and [<-Struck out]

      [Struck out->]

      ‘(2) involve the development of innovative efforts aimed at reducing the shortage of highly qualified teachers in high poverty urban and rural areas. [<-Struck out]

[Struck out->]
‘SEC. 214. APPLICATIONS. [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- Each State desiring a grant under this subpart shall submit an application to the Secretary at such time, in such manner and accompanied by such information as the Secretary may require. [<-Struck out]

    [Struck out->]

    ‘(b) CONTENT OF APPLICATIONS- Such application shall include a description of how the State intends to use funds provided under this subpart. [<-Struck out]

[Struck out->]
‘Subpart 2--Teacher Training Partnerships Grants [<-Struck out]

[Struck out->]
‘SEC. 221. GRANTS AUTHORIZED. [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- The Secretary is authorized to award grants to teacher training partnerships to enable the partnerships to carry out the activities described in section 222. Each grant may be awarded for a period of not more than 5 years. [<-Struck out]

    [Struck out->]

    ‘(b) TEACHER TRAINING PARTNERSHIPS- For the purpose of this part the term ‘teacher training partnership’ means a partnership that-- [<-Struck out]

      [Struck out->]

      ‘(1) shall include a school of arts and sciences, a school or program of education, a local educational agency, and a kindergarten through grade 12 school; and [<-Struck out]

      [Struck out->]

      ‘(2) may include a State educational agency, a pre-kindergarten program, a nonprofit group, a business, or a teacher organization. [<-Struck out]

    [Struck out->]

    ‘(c) PRIORITY- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- In awarding grants under this subpart the Secretary shall give priority to partnerships that-- [<-Struck out]

        [Struck out->]

        ‘(A) involve businesses; or [<-Struck out]

        [Struck out->]

        ‘(B) include a high need local educational agency, elementary school or secondary school. [<-Struck out]

      [Struck out->]

      ‘(2) HIGH NEED- A local educational agency, elementary school or secondary school shall be considered high need for purposes of paragraph (1)(B) if the agency or school serves an area within a State in which there is-- [<-Struck out]

        [Struck out->]

        ‘(A) a large number of individuals from families with incomes below the poverty line; [<-Struck out]

        [Struck out->]

        ‘(B) a high percentage of teachers not teaching in the content area in which the teachers were trained to teach; or [<-Struck out]

        [Struck out->]

        ‘(C) a high teacher turnover. [<-Struck out]

    [Struck out->]

    ‘(d) CONSIDERATION- In awarding grants under this subpart the Secretary will take into consideration-- [<-Struck out]

      [Struck out->]

      ‘(1) providing an equitable geographic distribution of the grants throughout the United States; and [<-Struck out]

      [Struck out->]

      ‘(2) the proposed project’s potential for creating improvement and positive change. [<-Struck out]

    [Struck out->]

    ‘(e) MATCHING FUNDS- Each partnership receiving a grant under this subpart shall provide, from sources other than this subpart, an amount equal to 25 percent of the grant in the first year, 35 percent in the second such year, and 50 percent in each succeeding such year, of the amount of the grant, in cash or in kind, to carry out the activities supported by the grant. [<-Struck out]

    [Struck out->]

    ‘(f) ONE-TIME AWARD- A partnership may receive a grant under this section only once. [<-Struck out]

[Struck out->]
‘SEC. 222. USE OF FUNDS. [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- Grant funds under this part shall be used to-- [<-Struck out]

      [Struck out->]

      ‘(1) coordinate with the activities of the Governor, State board of education, and State educational agency, as appropriate; [<-Struck out]

      [Struck out->]

      ‘(2) provide sustained and high quality preservice clinical experiences including the mentoring of prospective teachers by veteran teachers; [<-Struck out]

      [Struck out->]

      ‘(3) work with a school of arts and sciences to provide increased academic study in a proposed teaching specialty area, through activities such as-- [<-Struck out]

        [Struck out->]

        ‘(A) restructuring curriculum; [<-Struck out]

        [Struck out->]

        ‘(B) changing core course requirements; [<-Struck out]

        [Struck out->]

        ‘(C) increasing liberal arts focus; [<-Struck out]

        [Struck out->]

        ‘(D) providing preparation for board certification; and [<-Struck out]

        [Struck out->]

        ‘(E) assessing and improving alternative certification, including mentoring and induction support; [<-Struck out]

      [Struck out->]

      ‘(4) substantially increasing interaction and 2-way collaboration between-- [<-Struck out]

        [Struck out->]

        ‘(A) faculty at institutions of higher education; and [<-Struck out]

        [Struck out->]

        ‘(B) new and experienced teachers, principals, and other administrators at elementary schools or secondary schools; [<-Struck out]

      [Struck out->]

      ‘(5) prepare teachers to use technology effectively in the classroom; [<-Struck out]

      [Struck out->]

      ‘(6) integrate reliable research-based teaching methods into the curriculum; [<-Struck out]

      [Struck out->]

      ‘(7) broadly disseminate information on effective practices used by the partnership; and [<-Struck out]

      [Struck out->]

      ‘(8) provide support, including preparation time, for interaction between faculty at an institution of higher education and classroom teachers. [<-Struck out]

    [Struck out->]

    ‘(b) SPECIAL RULE- No individual member of a partnership shall retain more than 50 percent of the funds made available to the partnership under this subpart. [<-Struck out]

[Struck out->]
‘SEC. 223. APPLICATIONS. [<-Struck out]

    [Struck out->]

    ‘Each teacher training partnership desiring a grant under this subpart 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-- [<-Struck out]

      [Struck out->]

      ‘(1) describe the composition of the partnership and the involvement of each partner in the development of the application; [<-Struck out]

      [Struck out->]

      ‘(2) contain a needs assessment that includes an analysis of the needs of all the partners with respect to teaching and learning; [<-Struck out]

      [Struck out->]

      ‘(3) contain a resource assessment that includes-- [<-Struck out]

        [Struck out->]

        ‘(A) an analysis of resources available to the partnership; [<-Struck out]

        [Struck out->]

        ‘(B) a description of the intended use of the grant funds; [<-Struck out]

        [Struck out->]

        ‘(C) a description of how the partnership will coordinate with other teacher training or professional development programs, including Federal, State, local, private, and other programs; [<-Struck out]

        [Struck out->]

        ‘(D) a description of how the activities assisted under this subpart are consistent with educational reform activities that promote student achievement; and [<-Struck out]

        [Struck out->]

        ‘(E) a description of the commitment of the resources of the partnership to the activities assisted under this subpart, including financial support, faculty participation, and time commitments; [<-Struck out]

      [Struck out->]

      ‘(4) describe how the partnership will include the participation of the schools, colleges, or departments of arts and sciences within an institution of higher education to ensure the integration of teaching techniques and content in teaching preparation; [<-Struck out]

      [Struck out->]

      ‘(5) describe how the partnership will restructure and improve teaching, teacher training, and development programs, and how such systemic changes will contribute to increased student achievement; [<-Struck out]

      [Struck out->]

      ‘(6) describe how the partnership will prepare teachers to work with diverse student populations, including individuals with disabilities and limited English proficient individuals; [<-Struck out]

      [Struck out->]

      ‘(7) describe how the partnership will prepare teachers to use technology; [<-Struck out]

      [Struck out->]

      ‘(8) contain a dissemination plan regarding knowledge and information with respect to effective teaching practices, and a description of how such knowledge and information will be implemented in elementary schools or secondary schools as well as institutions of higher education; [<-Struck out]

      [Struck out->]

      ‘(9) describe the commitment of the partnership to continue the activities assisted under this subpart without grant funds provided under this subpart; and [<-Struck out]

      [Struck out->]

      ‘(10) describe how the partnership will involve and include parents in the reform process. [<-Struck out]

[Struck out->]
‘Subpart 3--General Provisions [<-Struck out]

[Struck out->]
‘SEC. 231. ACCOUNTABILITY AND EVALUATION. [<-Struck out]

    [Struck out->]

    ‘(a) TEACHER QUALITY ENHANCEMENT GRANTS- [<-Struck out]

      [Struck out->]

      ‘(1) ACCOUNTABILITY REPORT- A State that receives a grant under subpart 1 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 State, in using funds provided under subpart 1, has made substantial progress in meeting the following goals: [<-Struck out]

        [Struck out->]

        ‘(A) STUDENT ACHIEVEMENT- Increasing student achievement for all students, as measured by increased graduation rates, decreased dropout rates, or higher scores on local, State or other assessments. [<-Struck out]

        [Struck out->]

        ‘(B) RAISING STANDARDS- Raising the State academic standards required to enter the teaching profession, including, where appropriate, incentives to incorporate the requirement of an academic major in the subject, or related discipline, in which the teacher plans to teach. [<-Struck out]

        [Struck out->]

        ‘(C) INITIAL CERTIFICATION OR LICENSURE- Increasing success in the passage rate for initial State teacher certification or licensure, or increasing numbers of highly qualified individuals being certified or licensed as teachers through alternative programs. [<-Struck out]

        [Struck out->]

        ‘(D) CORE ACADEMIC SUBJECTS- Increasing the percentage of classes taught in core academic subject areas by teachers highly competent in those subject areas. [<-Struck out]

        [Struck out->]

        ‘(E) DECREASING SHORTAGES FOR PROFESSIONAL DEVELOPMENT- Decreasing shortages of qualified teachers in poor urban and rural areas. [<-Struck out]

        [Struck out->]

        ‘(F) INCREASING OPPORTUNITIES- 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 to teach or in which the teachers are working toward certification to teach. [<-Struck out]

        [Struck out->]

        ‘(G) TECHNOLOGY INTEGRATION- Increasing the number of teachers prepared to integrate technology in the classroom. [<-Struck out]

      [Struck out->]

      ‘(2) TEACHER QUALIFICATIONS PROVIDED TO PARENT UPON REQUEST- Any local educational agency that benefits from the activities assisted under subpart 1 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 qualifications 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. [<-Struck out]

    [Struck out->]

    ‘(b) TEACHER TRAINING PARTNERSHIP EVALUATION PLAN- Each teacher training partnership receiving a grant under subpart 2 shall establish an evaluation plan that includes strong performance objectives established in negotiation with the Secretary at the time of the grant award. The plan shall include objectives and measures for-- [<-Struck out]

      [Struck out->]

      ‘(1) increased student achievement for all students as measured by increased graduation rates, decreased dropout rates, or higher scores on local, State, or other assessments for a year compared to student achievement as determined by the rates or scores, as the case may be, for the year prior to the year for which a grant under this part is received; [<-Struck out]

      [Struck out->]

      ‘(2) increased teacher retention in the first 3 years of a teacher’s career; [<-Struck out]

      [Struck out->]

      ‘(3) increased success in the passage rate for initial State certification or licensure of teachers; [<-Struck out]

      [Struck out->]

      ‘(4) increased number of academic courses taken in core subject areas; [<-Struck out]

      [Struck out->]

      ‘(5) increased integration of technology in teacher preparation and in classroom instruction; [<-Struck out]

      [Struck out->]

      ‘(6) restructuring or change of methodology courses to reflect best practices learned from elementary schools, secondary schools or other entities; [<-Struck out]

      [Struck out->]

      ‘(7) increased dissemination of information about effective teaching strategies and practices; and [<-Struck out]

      [Struck out->]

      ‘(8) other effects of increased integration among members of the partnership. [<-Struck out]

[Struck out->]
‘SEC. 232. REVOCATION OF GRANT. [<-Struck out]

    [Struck out->]

    ‘Each State or teacher training partnership receiving a grant under this part shall report annually on progress toward meeting the purposes of this part, and the goals, objectives and measures described in section 231. If the Secretary, after consultation with the peer review panel described in section 213(b) determines that the State or partnership is not making substantial progress in meeting the purposes, goals, objectives and measures, as appropriate, by the end of the second year of the grant, the grant shall not be continued for the third year of the grant. [<-Struck out]

[Struck out->]
‘SEC. 233. EVALUATION AND DISSEMINATION. [<-Struck out]

    [Struck out->]

    ‘The Secretary shall evaluate the activities funded under this part and report the Secretary’s findings 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 the States and teacher training partnerships under this part, and shall broadly disseminate information regarding such practices so developed that were found to be ineffective. [<-Struck out]

[Struck out->]
‘SEC. 234. INTERNATIONAL STUDY AND REPORT. [<-Struck out]

    [Struck out->]

    ‘(a) STUDY- The Secretary shall conduct a study through the National Center for Education Statistics regarding the ways teachers are trained and the extent to which teachers in the United States and other comparable countries are teaching in areas other than the teachers’ field of study or expertise. The study will examine specific fields and will outline the nature and extent of the problem of out-of-field teaching in the United States and in other countries that are considered comparable to the United States. The study shall include, at a minimum, all the countries that participated in the Third International Mathematics and Science Study (TIMSS). [<-Struck out]

    [Struck out->]

    ‘(b) REPORT- The Secretary shall report to Congress regarding the results of the study described in subsection (a). [<-Struck out]

[Struck out->]
‘SEC. 235. AUTHORIZATION OF APPROPRIATIONS. [<-Struck out]

    [Struck out->]

    ‘There are authorized to be appropriated to carry out this part $300,000,000 for fiscal year 1999 and such sums as necessary for each of the 4 succeeding fiscal years, of which-- [<-Struck out]

      [Struck out->]

      ‘(1) 50 percent shall be available for each fiscal year to carry out subpart 1; and [<-Struck out]

      [Struck out->]

      ‘(2) 50 percent shall be available for each fiscal year to carry out subpart 2. [<-Struck out]

[Struck out->]
‘PART B--RECRUITING NEW TEACHERS FOR UNDERSERVED AREAS [<-Struck out]

[Struck out->]
‘SEC. 251. STATEMENT OF PURPOSE. [<-Struck out]

    [Struck out->]

    ‘It is the purpose of this part to-- [<-Struck out]

      [Struck out->]

      ‘(1) provide scholarships and, as necessary, support services for students with high potential to become effective teachers, particularly minority students; [<-Struck out]

      [Struck out->]

      ‘(2) increase the quality and number of new teachers nationally; and [<-Struck out]

      [Struck out->]

      ‘(3) increase the ability of schools in underserved areas to recruit a qualified teaching staff. [<-Struck out]

[Struck out->]
‘SEC. 252. DEFINITIONS. [<-Struck out]

    [Struck out->]

    ‘In this part-- [<-Struck out]

      [Struck out->]

      ‘(1) ELIGIBLE PARTNERSHIP- [<-Struck out]

        [Struck out->]

        ‘(A) IN GENERAL- The term ‘eligible partnership’ means a partnership consisting of-- [<-Struck out]

          [Struck out->]

          ‘(i) an institution of higher education that awards baccalaureate degrees and prepares teachers for their initial entry into the teaching profession; and [<-Struck out]

          [Struck out->]

          ‘(ii) one or more local educational agencies that serve underserved areas. [<-Struck out]

        [Struck out->]

        ‘(B) ADDITIONAL PARTNERS- Such a partnership may also include-- [<-Struck out]

          [Struck out->]

          ‘(i) 2-year institutions of higher education that operate teacher preparation programs and maintain articulation agreements, with the institutions of higher education that award baccalaureate degrees for the transfer of credits in teacher preparation; [<-Struck out]

          [Struck out->]

          ‘(ii) State agencies that have responsibility for policies related to teacher preparation and teacher certification or licensure; and [<-Struck out]

          [Struck out->]

          ‘(iii) other public and private, nonprofit agencies and organizations that serve, or are located in, communities served by the local educational agencies in the partnership, and that have an interest in teacher recruitment, preparation, and induction. [<-Struck out]

      [Struck out->]

      ‘(2) SUPPORT SERVICES- The term ‘support services’ means-- [<-Struck out]

        [Struck out->]

        ‘(A) academic advice and counseling; [<-Struck out]

        [Struck out->]

        ‘(B) tutorial services; [<-Struck out]

        [Struck out->]

        ‘(C) mentoring; and [<-Struck out]

        [Struck out->]

        ‘(D) child care and transportation, if funding for those services cannot be arranged from other sources. [<-Struck out]

      [Struck out->]

      ‘(3) UNDERSERVED AREA- The term ‘underserved area’ means-- [<-Struck out]

        [Struck out->]

        ‘(A) the area served by the 3 local educational agencies in the State that have the highest numbers of children, ages 5 through 17, from families below the poverty level (based on data satisfactory to the Secretary); and [<-Struck out]

        [Struck out->]

        ‘(B) the area served by any other local educational agency in which the percentage of such children is at least 20 percent, or the number of such children is at least 10,000. [<-Struck out]

[Struck out->]
‘SEC. 253. GRANT AUTHORITY AND CONDITIONS. [<-Struck out]

    [Struck out->]

    ‘(a) GRANTS AUTHORIZED- [<-Struck out]

      [Struck out->]

      ‘(1) GRANTS- [<-Struck out]

        [Struck out->]

        ‘(A) IN GENERAL- From amounts appropriated under section 262 the Secretary shall award grants, on a competitive basis, to eligible partnerships to enable the eligible partnerships to pay the Federal share of the cost of carrying out the activities described in section 255. [<-Struck out]

        [Struck out->]

        ‘(B) DURATION- Each grant awarded under subparagraph (A) shall be awarded for a period not to exceed 5 years. [<-Struck out]

      [Struck out->]

      ‘(2) CONTINUING ELIGIBILITY; REVIEW OF PROGRESS- The Secretary shall-- [<-Struck out]

        [Struck out->]

        ‘(A) continue to make grant payments for the second and succeeding years of a grant awarded under this part, only after determining that the eligible partnership is making satisfactory progress in carrying out the activities under the grant; and [<-Struck out]

        [Struck out->]

        ‘(B) conduct an intensive review of the eligible partnerships’s progress under the grant, with the assistance of outside experts, before making grant payments for the fourth year of the grant. [<-Struck out]

      [Struck out->]

      ‘(3) MAXIMUM NUMBER- No eligible partnership may receive more than 2 grants under this subsection. [<-Struck out]

    [Struck out->]

    ‘(b) MATCHING REQUIREMENT- [<-Struck out]

      [Struck out->]

      ‘(1) FEDERAL SHARE- The Federal share of the cost of activities carried out under a grant made under subsection (a) shall not exceed-- [<-Struck out]

        [Struck out->]

        ‘(A) 70 percent of the cost in the first year of the grant; [<-Struck out]

        [Struck out->]

        ‘(B) 60 percent in the second year; [<-Struck out]

        [Struck out->]

        ‘(C) 60 percent in the third year; [<-Struck out]

        [Struck out->]

        ‘(D) 50 percent in the fourth year; and [<-Struck out]

        [Struck out->]

        ‘(E) 50 percent in the fifth year and any succeeding year (including each year of the second grant, if any). [<-Struck out]

      [Struck out->]

      ‘(2) NON-FEDERAL SHARE- The non-Federal share of activities carried out with a grant under subsection (a) may be provided in cash or in kind, fairly evaluated, and may be obtained from any non-Federal public or private source. [<-Struck out]

    [Struck out->]

    ‘(c) PLANNING GRANTS- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- The Secretary may award planning grants to eligible partnerships that are not ready to implement programs under subsection (a). [<-Struck out]

      [Struck out->]

      ‘(2) DURATION- Each planning grant shall be for a period of not more than 1 year, which shall be in addition to the period of any grant under subsection (a). [<-Struck out]

      [Struck out->]

      ‘(3) REQUIREMENT- Any recipient of a planning grant under this subsection that wishes to receive a grant under subsection (a)(1) shall separately apply for a grant under that subsection. [<-Struck out]

[Struck out->]
‘SEC. 254. GRANT APPLICATIONS. [<-Struck out]

    [Struck out->]

    ‘(a) APPLICATIONS REQUIRED- Any eligible partnership desiring to receive a grant under this part shall submit an application to the Secretary at such time, in such form, and containing such information as the Secretary may require. [<-Struck out]

    [Struck out->]

    ‘(b) APPLICATION CONTENTS- Each application for a grant under section 253(a) shall include-- [<-Struck out]

      [Struck out->]

      ‘(1) a designation of the institution or agency, within the eligible partnership, that will serve as the fiscal agent for the grant; [<-Struck out]

      [Struck out->]

      ‘(2) information on the quality of the teacher preparation program of the institution of higher education participating in the eligible partnership and how the eligible partnership will ensure, through improvements in the eligible partnership’s teacher preparation practices or other appropriate strategies, that scholarship recipients will receive high-quality preparation; [<-Struck out]

      [Struck out->]

      ‘(3) a description of the assessment the members of the eligible partnership have undertaken-- [<-Struck out]

        [Struck out->]

        ‘(A) to determine-- [<-Struck out]

          [Struck out->]

          ‘(i) the most critical needs of the local educational agencies, particularly the needs of schools in high-poverty areas, for new teachers (which may include teachers in particular subject areas or at certain grade levels); and [<-Struck out]

          [Struck out->]

          ‘(ii) how the project carried out under the grant will address those needs; and [<-Struck out]

        [Struck out->]

        ‘(B) that reflects the input of all significant entities in the community (including organizations representing teachers and parents) that have an interest in teacher recruitment, preparation, and induction; [<-Struck out]

      [Struck out->]

      ‘(4) a description of the project the eligible partnership will carry out with the grant, including information regarding-- [<-Struck out]

        [Struck out->]

        ‘(A) the recruitment and outreach efforts the eligible partnership will undertake to publicize the availability of scholarships and other assistance under the program; [<-Struck out]

        [Struck out->]

        ‘(B)(i) the number and types of students that the eligible partnership will serve under the program, which may include education paraprofessionals seeking to achieve full teacher certification or licensure; teachers whom the partner local educational agencies have hired under emergency certification or licensure procedures; or former military personnel, mid-career professionals, or AmeriCorps or Peace Corps volunteers, who desire to enter teaching; and [<-Struck out]

        [Struck out->]

        ‘(ii) the criteria that the eligible partnership will use in selecting the students, including criteria to determine whether individuals have the capacity to benefit from the program, complete teacher certification requirements, and become effective teachers; [<-Struck out]

        [Struck out->]

        ‘(C) the activities the eligible partnership will carry out under the grant, including a description of, and justification for, any support services the institution of higher education participating in the eligible partnership will offer to participating students; [<-Struck out]

        [Struck out->]

        ‘(D) the number and funding range of the scholarships the institution will provide to students; and [<-Struck out]

        [Struck out->]

        ‘(E) the procedures the institution will establish for entering into, and enforcing, agreements with scholarship recipients regarding the recipients’ fulfillment of the service commitment described in section 259; [<-Struck out]

      [Struck out->]

      ‘(5) a description of how the institution will use funds provided under the grant only-- [<-Struck out]

        [Struck out->]

        ‘(A) to increase the number of students-- [<-Struck out]

          [Struck out->]

          ‘(i) with high potential to be effective teachers; [<-Struck out]

          [Struck out->]

          ‘(ii) participating in the institution’s teacher preparation programs; or [<-Struck out]

          [Struck out->]

          ‘(iii) in the particular type or types of preparation programs that the grant will support; or [<-Struck out]

        [Struck out->]

        ‘(B) to increase the number of graduates, who are minority individuals, with high potential to be effective teachers; [<-Struck out]

      [Struck out->]

      ‘(6) a description of the commitments, by the local educational agencies participating in the partnership, to hire qualified scholarship recipients in the schools served by the agencies and in the subject areas or grade levels for which the scholarship recipients will be trained, and a description of the actions the participating institution of higher education, the participating local educational agencies, and the other partners will take to facilitate the successful transition of the recipients into teaching; and [<-Struck out]

      [Struck out->]

      ‘(7) a description of the eligible partnership’s plan for institutionalizing the activities the partnership is carrying out under this part, so that the activities will continue once Federal funding ceases. [<-Struck out]

[Struck out->]
‘SEC. 255. USES OF FUNDS. [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- Each eligible partnership receiving a grant under section 523(a) shall use the grant funds for the following: [<-Struck out]

      [Struck out->]

      ‘(1) SCHOLARSHIPS- Scholarships to help students pay the costs of tuition, room, board, and other expenses of completing a teacher preparation program. [<-Struck out]

      [Struck out->]

      ‘(2) SUPPORT SERVICES- Support services, if needed to enable scholarship recipients to complete postsecondary education programs. [<-Struck out]

      [Struck out->]

      ‘(3) FOLLOWUP SERVICES- Followup services provided to former scholarship recipients during the recipients’ first 3 years of teaching. [<-Struck out]

      [Struck out->]

      ‘(4) PAYMENTS- Payments to partner local educational agencies, if needed to enable the agencies to permit paraprofessional staff to participate in teacher preparation programs (such as the cost of release time for the staff). [<-Struck out]

      [Struck out->]

      ‘(5) ADDITIONAL COURSES- If appropriate, and if no other funds are available for, paying the costs of additional courses taken by former scholarship recipients during the recipients’ initial 3 years of teaching. [<-Struck out]

    [Struck out->]

    ‘(b) PLANNING GRANTS- A recipient of a planning grant under section 253(c) shall use the grant funds for the costs of planning for the implementation of a grant under section 253(a). [<-Struck out]

[Struck out->]
‘SEC. 256. SELECTION OF APPLICANTS. [<-Struck out]

    [Struck out->]

    ‘(a) PEER REVIEW- The Secretary, using a peer review process, shall select eligible partnerships to receive funding under this part on the basis of-- [<-Struck out]

      [Struck out->]

      ‘(1) the quality of the teacher preparation program offered by the institution participating in the partnership; [<-Struck out]

      [Struck out->]

      ‘(2) the quality of the program carried out under the application; and [<-Struck out]

      [Struck out->]

      ‘(3) the capacity of the partnership to carry out the grant successfully. [<-Struck out]

    [Struck out->]

    ‘(b) CRITERIA- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- In awarding grants under section 253(a), the Secretary shall seek to ensure that-- [<-Struck out]

        [Struck out->]

        ‘(A) in the aggregate, eligible partnerships carry out a variety of approaches to preparing new teachers; and [<-Struck out]

        [Struck out->]

        ‘(B) there is an equitable geographic distribution of the grants. [<-Struck out]

      [Struck out->]

      ‘(2) SPECIAL CONSIDERATION- In addition to complying with paragraph (1), the Secretary shall give special consideration to-- [<-Struck out]

        [Struck out->]

        ‘(A) applications most likely to result in the preparation of increased numbers of individuals with high potential for effective teaching who are minority individuals; and [<-Struck out]

        [Struck out->]

        ‘(B) applications from partnerships that have as members of the partnerships historically Black colleges and universities, Hispanic-serving institutions, and Tribal Colleges and Universities. [<-Struck out]

    [Struck out->]

    ‘(c) SECOND FIVE-YEAR GRANTS- In selecting eligible partnerships to receive second year grant payments under this part, the Secretary shall give a preference to eligible partnerships whose projects have resulted in-- [<-Struck out]

      [Struck out->]

      ‘(1) the placement and retention of a substantial number of high-quality graduates in teaching positions in underserved, high-poverty schools; [<-Struck out]

      [Struck out->]

      ‘(2) the adoption of effective programs that meet the teacher preparation needs of high-poverty urban and rural areas; and [<-Struck out]

      [Struck out->]

      ‘(3) effective partnerships with elementary schools and secondary schools that are supporting improvements in student achievement. [<-Struck out]

[Struck out->]
‘SEC. 257. DURATION AND AMOUNT OF ASSISTANCE; RELATION TO OTHER ASSISTANCE. [<-Struck out]

    [Struck out->]

    ‘(a) DURATION OF ASSISTANCE- No individual may receive scholarship assistance under this part-- [<-Struck out]

      [Struck out->]

      ‘(1) for more than 5 years of postsecondary education; and [<-Struck out]

      [Struck out->]

      ‘(2) unless that individual satisfies the requirements of section 484(a)(5). [<-Struck out]

    [Struck out->]

    ‘(b) AMOUNT OF ASSISTANCE- No individual may receive a scholarship awarded under this part that exceeds the cost of attendance, as defined in section 472, at the institution of higher education the individual is attending. [<-Struck out]

    [Struck out->]

    ‘(c) RELATION TO OTHER ASSISTANCE- A scholarship awarded under this part-- [<-Struck out]

      [Struck out->]

      ‘(1) shall not be reduced on the basis of the individual’s receipt of other forms of Federal student financial assistance; and [<-Struck out]

      [Struck out->]

      ‘(2) shall be regarded as other financial assistance available to the student, within the meaning of sections 471(3) and 480(j)(1), in determining the student’s eligibility for grant, loan, or work assistance under title IV. [<-Struck out]

[Struck out->]
‘SEC. 258. SCHOLARSHIP CONDITIONS. [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- A recipient of a scholarship under this part shall continue to receive the scholarship assistance only as long as the recipient is-- [<-Struck out]

      [Struck out->]

      ‘(1) enrolled as a full-time student and pursuing a course of study leading to teacher certification, unless the recipient is working in a public school (as a paraprofessional, or as a teacher under emergency credentials) while participating in the program; and [<-Struck out]

      [Struck out->]

      ‘(2) maintaining satisfactory progress as determined by the institution of higher education participating in the partnership. [<-Struck out]

    [Struck out->]

    ‘(b) SPECIAL RULE- Each eligible partnership shall modify the application of section 257(a)(1) and of subsection (a)(1) to the extent necessary to accommodate the rights of individuals with disabilities under section 504 of the Rehabilitation Act of 1973. [<-Struck out]

[Struck out->]
‘SEC. 259. SERVICE REQUIREMENTS. [<-Struck out]

    [Struck out->]

    ‘(a) REQUIREMENT- Each eligible partnership receiving a grant under this part shall enter into an agreement, with each student to whom the partnership awards a scholarship under this part, providing that a scholarship recipient who completes a teacher preparation program under this part shall, within 7 years of completing that program, teach full-time for at least 5 years in a high-poverty school in an underserved geographic area or repay the amount of the scholarship, under the terms and conditions established by the Secretary. [<-Struck out]

    [Struck out->]

    ‘(b) REGULATIONS- The Secretary shall prescribe regulations relating to the requirements of subsection (a), including any provisions for waiver of those requirements. [<-Struck out]

[Struck out->]
‘SEC. 260. EVALUATION. [<-Struck out]

    [Struck out->]

    ‘The Secretary shall provide for an evaluation of the program carried out under this part, which shall asses such issues as-- [<-Struck out]

      [Struck out->]

      ‘(1) whether institutions participating in the eligible partnerships are successful in preparing scholarship recipients to teach to high State and local standards; [<-Struck out]

      [Struck out->]

      ‘(2) whether scholarship recipients are successful in completing teacher preparation programs, becoming fully certified teachers, and obtaining teaching positions in underserved areas, and whether the recipients continue teaching in those areas over a period of years; [<-Struck out]

      [Struck out->]

      ‘(3) the national impact of the program in assisting local educational agencies in underserved areas to recruit, prepare, and retain diverse, high-quality teachers in the areas in which the agencies have the greatest needs; [<-Struck out]

      [Struck out->]

      ‘(4) the long-term impact of the grants on teacher preparation programs conducted by institutions of higher education participating in the eligible partnership and on the institutions’ relationships with their partner local educational agencies and other members of the partnership; and [<-Struck out]

      [Struck out->]

      ‘(5) the relative effectiveness of different approaches for preparing new teachers to teach in underserved areas, including their effectiveness in preparing new teachers to teach to high content and performance standards. [<-Struck out]

[Struck out->]
‘SEC. 261. NATIONAL ACTIVITIES. [<-Struck out]

    [Struck out->]

    ‘The Secretary may reserve not more than 5 percent of the funds appropriated for this part for any fiscal year for-- [<-Struck out]

      [Struck out->]

      ‘(1) peer review of applications; [<-Struck out]

      [Struck out->]

      ‘(2) conducting the evaluation required under section 260; and [<-Struck out]

      [Struck out->]

      ‘(3) technical assistance. [<-Struck out]

[Struck out->]
‘SEC. 262. AUTHORIZATION OF APPROPRIATIONS. [<-Struck out]

    [Struck out->]

    ‘There are authorized to be appropriated to carry out this part $37,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years.’. [<-Struck out]

[Struck out->]

TITLE III--INSTITUTIONAL AID

[<-Struck out]

[Struck out->] SEC. 301. TRANSFERS AND REDESIGNATIONS. [<-Struck out]

    [Struck out->] (a) IN GENERAL- Title III (20 U.S.C. 1051 et seq.) is amended-- [<-Struck out]

      [Struck out->] (1) by redesignating part D as part F; [<-Struck out]

      [Struck out->] (2) 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 398, respectively; [<-Struck out]

      [Struck out->] (3) 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; [<-Struck out]

      [Struck out->] (4) by redesignating sections 721 through 728 (20 U.S.C. 1132c and 1132c-7) as sections 341 through 348, respectively; [<-Struck out]

      [Struck out->] (5) 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; [<-Struck out]

      [Struck out->] (6) by inserting after part D of title III (as redesignated by paragraph (3)) the following: [<-Struck out]

[Struck out->]
‘PART E--MINORITY SCIENCE IMPROVEMENT PROGRAM’; [<-Struck out]

      [Struck out->] (7) by redesignating sections 1021 through 1024 (20 U.S.C. 1135b and 1135b-3), 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 354, and sections 361, 362, 363, 364, 365, and 366, respectively; and [<-Struck out]

      [Struck out->] (8) by repealing section 366 (as redesignated by paragraph (7)) (20 U.S.C. 1135d-6). [<-Struck out]

    [Struck out->] (b) CONFORMING AMENDMENT- Section 361 (as redesignated by subsection (a)(7)) (20 U.S.C. 1135d) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (1), by inserting ‘and’ after the semicolon; [<-Struck out]

      [Struck out->] (2) in paragraph (2), by striking ‘; and’ and inserting a period; and [<-Struck out]

      [Struck out->] (3) by striking paragraph (3). [<-Struck out]

    [Struck out->] (c) CROSS REFERENCES- Title III (20 U.S.C. 1051 et seq.) is amended-- [<-Struck out]

      [Struck out->] (1) in section 311(b) (20 U.S.C. 1057(b)), by striking ‘360(a)(1)’ and inserting ‘398(a)(1)’; [<-Struck out]

      [Struck out->] (2) in section 312 (20 U.S.C. 1058)-- [<-Struck out]

        [Struck out->] (A) in subsection (b)(1)(B), by striking ‘352(b)’ and inserting ‘392(b)’; and [<-Struck out]

        [Struck out->] (B) in subsection (c)(2), by striking ‘352(a)’ and inserting ‘392(a)’; [<-Struck out]

      [Struck out->] (3) in section 313(b) (20 U.S.C. 1059(b)), by striking ‘354(a)(1)’ and inserting ‘394(a)(1)’; [<-Struck out]

      [Struck out->] (4) in section 342 (as redesignated by subsection (a)(4)) (20 U.S.C. 1132c-1)-- [<-Struck out]

        [Struck out->] (A) in paragraph (3), by striking ‘723(b)’ and inserting ‘343(b)’; [<-Struck out]

        [Struck out->] (B) in paragraph (4), by striking ‘723’ and inserting ‘343’; [<-Struck out]

        [Struck out->] (C) in the matter preceding subparagraph (A) of paragraph (5), by striking ‘724(b)’ and inserting ‘344(b)’; [<-Struck out]

        [Struck out->] (D) in paragraph (8), by striking ‘725(1)’ and inserting ‘345(1)’; and [<-Struck out]

        [Struck out->] (E) in paragraph (9), by striking ‘727’ and inserting ‘347’; [<-Struck out]

      [Struck out->] (5) in section 343 (as redesignated by subsection (a)(4)) (20 U.S.C. 1132c-2)-- [<-Struck out]

        [Struck out->] (A) in subsection (a), by striking ‘724’ and inserting ‘344’; and [<-Struck out]

        [Struck out->] (B) in subsection (b)-- [<-Struck out]

          [Struck out->] (i) in the matter preceding paragraph (1), by striking ‘725(1) and 726’ and inserting ‘345(1) and 346’; [<-Struck out]

          [Struck out->] (ii) in paragraph (10), by striking ‘724’ and inserting ‘344’; and [<-Struck out]

          [Struck out->] (iii) in subsection (d), by striking ‘723(c)(1)’ and inserting ‘343(c)(1)’; [<-Struck out]

      [Struck out->] (6) in section 345(2) (as redesignated by subsection (a)(4)) (20 U.S.C. 1132c-4(2)), by striking ‘723’ and inserting ‘343’; [<-Struck out]

      [Struck out->] (7) in section 348 (as redesignated by subsection (a)(4)) (20 U.S.C. 1132c-7), by striking ‘725(1)’ and inserting ‘345(1)’; [<-Struck out]

      [Struck out->] (8) in section 353(a) (as redesignated by subsection (a)(7)) (20 U.S.C. 1135b-2(a))-- [<-Struck out]

        [Struck out->] (A) in paragraph (1), by striking ‘1046(6)’ and inserting ‘365(6)’; [<-Struck out]

        [Struck out->] (B) in paragraph (2), by striking ‘1046(7)’ and inserting ‘365(7)’; [<-Struck out]

        [Struck out->] (C) in paragraph (3), by striking ‘1046(8)’ and inserting ‘365(8)’; and [<-Struck out]

        [Struck out->] (D) in paragraph (4), by striking ‘1046(9)’ and inserting ‘365(9)’; [<-Struck out]

      [Struck out->] (9) in section 361(1) (as redesignated by subsection (a)(7)) (20 U.S.C. 1135d(1)), by striking ‘1046(3)’ and inserting ‘365(3)’; [<-Struck out]

      [Struck out->] (10) in section 362(a) (as redesignated by subsection (a)(7)) (20 U.S.C. 1135d-1(a))-- [<-Struck out]

        [Struck out->] (A) in the matter preceding paragraph (1), by striking ‘1041’ and inserting ‘361’; and [<-Struck out]

        [Struck out->] (B) in paragraph (1), by striking ‘1021(b)’ and inserting ‘351(b)’; and [<-Struck out]

      [Struck out->] (11) in section 391(b)(6) (as redesignated by subsection (a)(2)), by striking ‘357’ and inserting ‘396’. [<-Struck out]

[Struck out->] SEC. 302. FINDINGS. [<-Struck out]

    [Struck out->] Section 301(a) (20 U.S.C. 1051(a)) is amended-- [<-Struck out]

      [Struck out->] (1) by redesignating paragraphs (3) through (7) as paragraphs (4) through (8), respectively; and [<-Struck out]

      [Struck out->] (2) by inserting after paragraph (2) the following: [<-Struck out]

      [Struck out->]

      ‘(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;’. [<-Struck out]

[Struck out->] SEC. 303. STRENGTHENING INSTITUTIONS. [<-Struck out]

    [Struck out->] (a) GRANTS- Section 311 (20 U.S.C. 1057) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (b)(3)(D), by inserting ‘, including high technology equipment,’ after ‘equipment’; and [<-Struck out]

      [Struck out->] (2) by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(c) ENDOWMENT FUND- [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

      [Struck out->]

      ‘(2) MATCHING REQUIREMENT- In order to be eligible to use grant funds in accordance with paragraph (1), the eligible institution shall provide matching funds, in an amount equal to the Federal funds used in accordance with paragraph (1), for the establishment or increase of the endowment fund. [<-Struck out]

      [Struck out->]

      ‘(3) 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).’. [<-Struck out]

    [Struck out->] (b) DURATION OF GRANT- Section 313 (20 U.S.C. 1059) is amended by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(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.’. [<-Struck out]

    [Struck out->] (c) HISPANIC-SERVING INSTITUTIONS- Section 316 (20 U.S.C. 1059c) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (b)(1), by amending subparagraph (C) to read as follows: [<-Struck out]

        [Struck out->]

        ‘(C) provides assurances that not less than 50 percent of the institution’s Hispanic students are low-income individuals who are first generation college students;’; [<-Struck out]

      [Struck out->] (2) in subsection (c), by adding at the end the following: [<-Struck out]

      [Struck out->]

      ‘(3) ENDOWMENT FUND- [<-Struck out]

        [Struck out->]

        ‘(A) IN GENERAL- A Hispanic-serving 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. [<-Struck out]

        [Struck out->]

        ‘(B) MATCHING REQUIREMENT- In order to be eligible to use grant funds in accordance with subparagraph (A), the Hispanic-serving institution shall provide matching funds, in an amount equal to the Federal funds used in accordance with paragraph (1), for the establishment or increase of the endowment fund. [<-Struck out]

        [Struck out->]

        ‘(C) 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).’; and [<-Struck out]

      [Struck out->] (3) in subsection (d)(3)-- [<-Struck out]

        [Struck out->] (A) by inserting ‘or community-based organization’ after ‘educational agency’; and [<-Struck out]

        [Struck out->] (B) by inserting ‘or organization’ after ‘such agency’. [<-Struck out]

[Struck out->] SEC. 304. STRENGTHENING HBCU’s. [<-Struck out]

    [Struck out->] (a) GRANTS- Section 323 (20 U.S.C. 1062) is amended-- [<-Struck out]

      [Struck out->] (1) by redesignating subsection (b) as subsection (c); and [<-Struck out]

      [Struck out->] (2) by inserting after subsection (a) the following: [<-Struck out]

    [Struck out->]

    ‘(b) ENDOWMENT FUND- [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

      [Struck out->]

      ‘(2) MATCHING REQUIREMENT- In order to be eligible to use grant funds in accordance with paragraph (1), the eligible institution shall provide matching funds, in an amount equal to the Federal funds used in accordance with paragraph (1), for the establishment or increase of the endowment fund. [<-Struck out]

      [Struck out->]

      ‘(3) 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).’. [<-Struck out]

    [Struck out->] (b) PROFESSIONAL OR GRADUATE INSTITUTIONS- Section 326 (20 U.S.C. 1063b) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a), by adding at the end of paragraph (2) the following: ‘If a grant of less than $500,000 is made under this section, matching funds provided from non-Federal sources are not required. If a grant equal to or in excess of $500,000 is made under this section, matching funds provided from non-Federal sources are required only with respect to the amount of the grant that exceeds $500,000.’; and [<-Struck out]

      [Struck out->] (2) in subsection (e)(1)-- [<-Struck out]

        [Struck out->] (A) in subparagraph (E), by inserting ‘, and any Tuskegee University qualified graduate program’ before the semicolon; [<-Struck out]

        [Struck out->] (B) in subparagraph (F), by inserting ‘, and any Xavier University qualified graduate program’ before the semicolon; [<-Struck out]

        [Struck out->] (C) in subparagraph (G), by inserting ‘, and any Southern University qualified graduate program’ before the semicolon; [<-Struck out]

        [Struck out->] (D) in subparagraph (H), by inserting ‘, and any Texas Southern University qualified graduate program’ before the semicolon; [<-Struck out]

        [Struck out->] (E) in subparagraph (I), by inserting ‘, and any Florida A&M University qualified graduate program’ before the semicolon; and [<-Struck out]

        [Struck out->] (F) in subparagraph (J), by inserting ‘, and any North Carolina Central University qualified graduate program’ before the semicolon. [<-Struck out]

[Struck out->] SEC. 305. ENDOWMENT CHALLENGE GRANTS. [<-Struck out]

    [Struck out->] Paragraph (2) of section 331(b) (20 U.S.C. 1065(b)) is amended by striking subparagraphs (B) and (C) and inserting the following: [<-Struck out]

    [Struck out->]

    ‘(B) The Secretary may make a grant under this part to an eligible institution in any fiscal year in which the amount appropriated to carry out this part is less than $15,000,000, if the institution-- [<-Struck out]

      [Struck out->]

      ‘(i) applies for a grant in an amount not exceeding $500,000; and [<-Struck out]

      [Struck out->]

      ‘(ii) has deposited in its endowment fund established under this section an amount which is equal to 1/2 of the amount of such grant. [<-Struck out]

    [Struck out->]

    ‘(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.’. [<-Struck out]

[Struck out->] SEC. 306. HBCU CAPITAL FINANCING. [<-Struck out]

    [Struck out->] (a) DEFINITION- Section 342(5) (as redesignated by section 301(a)(4)) (20 U.S.C. 1132c-1(5)) is amended-- [<-Struck out]

      [Struck out->] (1) by redesignating subparagraphs (B), (C), and (D) as subparagraphs (C), (F), and (G); [<-Struck out]

      [Struck out->] (2) by inserting after subparagraph (A) the following: [<-Struck out]

        [Struck out->]

        ‘(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;’; [<-Struck out]

      [Struck out->] (3) by inserting after subparagraph (C) (as redesignated by paragraph (1)) the following: [<-Struck out]

        [Struck out->]

        ‘(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; [<-Struck out]

        [Struck out->]

        ‘(E) a facility designed to provide primarily outpatient health care for students or faculty;’; and [<-Struck out]

      [Struck out->] (4) in subparagraph (G) (as redesignated by paragraph (2)), by striking ‘(C)’ and inserting ‘(F)’. [<-Struck out]

    [Struck out->] (b) FULL FAITH AND CREDIT- Section 343 (as redesignated by section 301(a)(4)) (20 U.S.C. 1132c-2) is amended by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(e) Notwithstanding any other provision of law, the Secretary may sell a qualified bond guaranteed under this part to any party that offers terms that the Secretary determines are in the best interest of the eligible institution.’. [<-Struck out]

[Struck out->] SEC. 307. MINORITY SCIENCE AND ENGINEERING IMPROVEMENT PROGRAM. [<-Struck out]

    [Struck out->] Section 365(4) (as redesignated by section 301(a)(7)) (20 U.S.C. 1135d-5(4)) is amended by inserting ‘behavioral,’ after ‘physical,’. [<-Struck out]

[Struck out->] SEC. 308. GENERAL PROVISIONS. [<-Struck out]

    [Struck out->] (a) APPLICATIONS- Paragraph (1) of section 391(b) (as redesignated by section 301(a)(2)) (20 U.S.C. [<-Struck out]

[Struck out->] 1066(b)) is amended by inserting ‘, D or E’ after ‘part C’. [<-Struck out]

    [Struck out->] (b) APPLICATION REVIEW PROCESS- Section 393 (as redesignated by section 301(a)(2)) (20 U.S.C. 1068) is amended by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(d) EXCLUSION- The provisions of this section shall not apply to applications submitted under part D.’. [<-Struck out]

    [Struck out->] (c) WAIVERS- Paragraph (2) of section 395(b) (as redesignated by section 301(a)(2)) (20 U.S.C. 1069b(b)) is amended by striking ‘title II, IV, VII, or VIII’ and inserting ‘part D, title IV, or title VIII’. [<-Struck out]

    [Struck out->] (d) AUTHORIZATION OF APPROPRIATIONS- Section 398(a) (as redesignated by section 301(a)(2)) (20 U.S.C. 1069f) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (1)-- [<-Struck out]

        [Struck out->] (A) in subparagraph (A), by striking ‘1993’ and inserting ‘1999’; and [<-Struck out]

        [Struck out->] (B) in subparagraph (B)-- [<-Struck out]

          [Struck out->] (i) in clause (i), by striking ‘1993’ and inserting ‘1999’; [<-Struck out]

          [Struck out->] (ii) by striking clause (ii); and [<-Struck out]

          [Struck out->] (iii) by striking ‘(B)(i) There’ and inserting ‘(B) There’; [<-Struck out]

      [Struck out->] (2) in paragraph (2)-- [<-Struck out]

        [Struck out->] (A) in subparagraph (A), by striking ‘1993’ and inserting ‘1999’; and [<-Struck out]

        [Struck out->] (B) in subparagraph (B), by striking ‘$20,000,000 for fiscal year 1993’ and inserting ‘$30,000,000 for fiscal year 1999’; [<-Struck out]

      [Struck out->] (3) in paragraph (3), by striking ‘$50,000,000 for fiscal year 1993’ and inserting ‘$10,000,000 for fiscal year 1999’; and [<-Struck out]

      [Struck out->] (4) by adding at the end the following: [<-Struck out]

      [Struck out->]

      ‘(4) PART D- There are authorized to be appropriated to carry out part D, $110,000 for fiscal year 1999, and such sums as may be necessary for each of the 4 succeeding fiscal years. [<-Struck out]

      [Struck out->]

      ‘(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.’. [<-Struck out]

[Struck out->]

TITLE IV--STUDENT ASSISTANCE

[<-Struck out]

[Struck out->] PART A--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER EDUCATION [<-Struck out]

[Struck out->] SEC. 411. REPEALS AND REDESIGNATIONS. [<-Struck out]

    [Struck out->] Title IV (20 U.S.C. 1070 et seq.) is amended-- [<-Struck out]

      [Struck out->] (1) in part A (20 U.S.C. 1070 et seq.)-- [<-Struck out]

        [Struck out->] (A) in subpart 2 (20 U.S.C. 1070a-11), by repealing chapters 3 through 8 (20 U.S.C. 1070a-31 et seq. and 1070a-81 et seq.); and [<-Struck out]

        [Struck out->] (B) by repealing subpart 8 (20 U.S.C. 1070f); and [<-Struck out]

      [Struck out->] (2) in part H (20 U.S.C. 1099a et seq.)-- [<-Struck out]

        [Struck out->] (A) by repealing subpart 1 (20 U.S.C. 1099a et seq.); and [<-Struck out]

        [Struck out->] (B) by redesignating subparts 2 and 3 (20 U.S.C. 1099b et seq. and 1099c et seq.) as subparts 1 and 2, respectively. [<-Struck out]

[Struck out->] SEC. 412. FEDERAL PELL GRANTS. [<-Struck out]

    [Struck out->] (a) AMENDMENT TO SUBPART HEADING- The heading for subpart 1 of part A of title IV (20 U.S.C. 1070a et seq.) is amended by striking ‘Basic Educational Opportunity Grants’ and inserting ‘Federal Pell Grants’. [<-Struck out]

    [Struck out->] (b) FEDERAL PELL GRANTS- Section 401 (20 U.S.C. 1070a) is amended-- [<-Struck out]

      [Struck out->] (1) in the section heading, by striking ‘basic educational opportunity grants’ and inserting ‘federal pell grants’; [<-Struck out]

      [Struck out->] (2) in subsection (a)(1)-- [<-Struck out]

        [Struck out->] (A) in the first sentence, by striking ‘shall, during the period beginning July 1, 1972, and ending September 30, 1998,’ and inserting ‘, for each fiscal year through fiscal year 2004, shall’; and [<-Struck out]

        [Struck out->] (B) 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’; [<-Struck out]

      [Struck out->] (3) in subsection (b)-- [<-Struck out]

        [Struck out->] (A) in paragraph (2)(A), by striking clauses (i) through (v), and inserting the following: [<-Struck out]

          [Struck out->]

          ‘(i) $5,000 for academic year 1999-2000; [<-Struck out]

          [Struck out->]

          ‘(ii) $5,200 for academic year 2000-2001; [<-Struck out]

          [Struck out->]

          ‘(iii) $5,400 for academic year 2001-2002; [<-Struck out]

          [Struck out->]

          ‘(iv) $5,600 for academic year 2002-2003; and [<-Struck out]

          [Struck out->]

          ‘(v) $5,800 for academic year 2003-2004.’; [<-Struck out]

        [Struck out->] (B) by amending paragraph (3) to read as follows: [<-Struck out]

      [Struck out->]

      ‘(3) For any academic year for which an appropriation Act provides a maximum basic grant in an amount in excess of $2,400, the amount of a student’s basic grant shall equal $2,400 plus-- [<-Struck out]

        [Struck out->]

        ‘(A) one-half of the amount by which such maximum basic grant exceeds $2,400; plus [<-Struck out]

        [Struck out->]

        ‘(B) the lesser of-- [<-Struck out]

          [Struck out->]

          ‘(i) the remaining one-half of such excess; or [<-Struck out]

          [Struck out->]

          ‘(ii) the sum of the student’s tuition, fees, 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.’; and [<-Struck out]

        [Struck out->] (C) in paragraph (5), by striking ‘$400, except’ and all that follows through ‘grant of $400’ and insert ‘$200’; and [<-Struck out]

      [Struck out->] (4) in subsection (c)-- [<-Struck out]

        [Struck out->] (A) by amending paragraph (1) to read as follows: ‘(1)(A) Except as provided in subparagraph (B), the period during which a student may receive a basic grant shall be the period, required for the completion of the first undergraduate baccalaureate course of study pursued by the student at the institution at which the student is in attendance, that does not exceed 150 percent of the period normally required by a full-time student (or the equivalent period, in the case of a part-time student) to complete the course of study at the institution, as determined by the institution. [<-Struck out]

        [Struck out->]

        ‘(B) A student may receive basic grants under this subpart for a period that exceeds the period described in subparagraph (A) to the extent the institution in which the student is enrolled determines necessary to accommodate the rights of students with disabilities under section 504 of the Rehabilitation Act of 1973.’; and [<-Struck out]

        [Struck out->] (B) in paragraph (2)-- [<-Struck out]

          [Struck out->] (i) by striking ‘Nothing’ and inserting ‘(A) Except as provided in subparagraph (B), nothing’; [<-Struck out]

          [Struck out->] (ii) by striking ‘or, in the case’ and all that follows through ‘or skills’; and [<-Struck out]

          [Struck out->] (iii) by adding at the end the following: [<-Struck out]

        [Struck out->]

        ‘(B)(i) A student may receive a basic grant to attend English language instruction that is a separate course of instruction only if-- [<-Struck out]

          [Struck out->]

          ‘(I) students enrolled in such a course are required to take an independently administered standardized test of English language proficiency upon completion of the course; and [<-Struck out]

          [Struck out->]

          ‘(II) not less than a minimum percentage of such students achieve a passing score on that test. [<-Struck out]

        [Struck out->]

        ‘(ii) The Secretary shall promulgate regulations that specify 1 or more standardized tests of English proficiency, the minimum percentage of students who must achieve a passing score on the tests, and such other requirements as the Secretary determines are necessary to implement clause (i).’. [<-Struck out]

[Struck out->] SEC. 413. TRIO PROGRAMS. [<-Struck out]

    [Struck out->] (a) PROGRAM AUTHORITY- Section 402A (20 U.S.C. 1070a-11) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (b)(3)-- [<-Struck out]

        [Struck out->] (A) in subparagraph (A), by striking ‘$170,000 for fiscal year 1993’ and inserting ‘$190,000 for each fiscal year’; [<-Struck out]

        [Struck out->] (B) in subparagraph (B), by striking ‘$180,000 for fiscal year 1994’ and inserting ‘$200,000 for each fiscal year’; and [<-Struck out]

        [Struck out->] (C) in subparagraph (C), by striking ‘$190,000 for fiscal year 1995’ and inserting ‘$210,000 for each fiscal year’; [<-Struck out]

      [Struck out->] (2) in subsection (c)(6), by amending the last sentence to read as follows: ‘The Secretary shall permit a Director of a program assisted under this chapter to also administer 1 or more additional programs for disadvantaged students operated by the sponsoring entity regardless of the funding source of such additional program.’; and [<-Struck out]

      [Struck out->] (3) in subsection (f), by striking ‘$650,000,000 for fiscal year 1993’ and inserting ‘$700,000,000 for fiscal year 1999’. [<-Struck out]

    [Struck out->] (b) TALENT SEARCH- Section 402B(b)(5) (20 U.S.C. 1070a-12(b)(5)) is amended by inserting ‘, or activities designed to acquaint individuals from disadvantaged backgrounds with careers in which the individuals are particularly underrepresented’ before the semicolon. [<-Struck out]

    [Struck out->] (c) UPWARD BOUND- Section 402C (20 U.S.C. 1070a-13) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (b)-- [<-Struck out]

        [Struck out->] (A) in paragraph (9), by striking ‘and’ after the semicolon; [<-Struck out]

        [Struck out->] (B) by redesignating paragraph (10) as paragraph (11); [<-Struck out]

        [Struck out->] (C) by inserting after paragraph (9) the following: [<-Struck out]

      [Struck out->]

      ‘(10) work-study positions where youth participating in the project are exposed to careers requiring a postsecondary degree; and’; and [<-Struck out]

        [Struck out->] (D) in paragraph (11) (as redesignated by subparagraph (B)), by striking ‘(9)’ and inserting ‘(10)’; and [<-Struck out]

      [Struck out->] (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.’. [<-Struck out]

    [Struck out->] (d) STUDENT SUPPORT SERVICES- Paragraph (6) of section 402D(c) (20 U.S.C. 1070a-14(c)(6)) is amended to read as follows: [<-Struck out]

      [Struck out->]

      ‘(6) consider, in addition to such other criteria as the Secretary may prescribe, the institution’s effort, and where applicable past history, in-- [<-Struck out]

        [Struck out->]

        ‘(A) providing sufficient financial assistance to meet the full financial need of each student at the institution; and [<-Struck out]

        [Struck out->]

        ‘(B) maintaining the loan burden of each such student at a manageable level.’. [<-Struck out]

    [Struck out->] (e) EVALUATION AND DISSEMINATION- Section 402H (20 U.S.C. 1070a-18) is amended to read as follows: [<-Struck out]

[Struck out->]
‘SEC. 402H. EVALUATIONS AND GRANTS FOR PROJECT IMPROVEMENT AND DISSEMINATION PARTNERSHIP PROJECTS. [<-Struck out]

    [Struck out->]

    ‘(a) EVALUATIONS- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- For the purpose of improving the effectiveness of the programs and projects assisted under this subpart, 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 subpart. [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

    [Struck out->]

    ‘(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 subpart 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 subpart and are serving low-income students and first generation college students, in order to-- [<-Struck out]

      [Struck out->]

      ‘(1) disseminate and replicate best practices of programs or projects assisted under this subpart; and [<-Struck out]

      [Struck out->]

      ‘(2) provide technical assistance regarding programs and projects assisted under this subpart. [<-Struck out]

    [Struck out->]

    ‘(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.’. [<-Struck out]

[Struck out->] SEC. 414. NATIONAL EARLY INTERVENTION SCHOLARSHIP AND PARTNERSHIP PROGRAM. [<-Struck out]

    [Struck out->] Section 404G (20 U.S.C. 1070a-27) is amended by striking ‘1993’ and inserting ‘1999’. [<-Struck out]

[Struck out->] SEC. 415. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS. [<-Struck out]

    [Struck out->] (a) AUTHORIZATION OF APPROPRIATIONS- Section 413A(b) (20 U.S.C. 1070b) is amended by striking ‘$675,000,000 for fiscal year 1993’ and inserting ‘$700,000,000 for fiscal year 1999’. [<-Struck out]

    [Struck out->] (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: [<-Struck out]

    [Struck out->]

    ‘(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, a reasonable proportion of the allocation shall be made available to such students.’. [<-Struck out]

    [Struck out->] (c) CARRYOVER, CARRYBACK, AND REALLOCATION- Subpart 3 of part A of title IV (20 U.S.C. 1070b et seq.) is amended by adding at the end the following: [<-Struck out]

[Struck out->]
‘SEC. 413E. CARRYOVER, CARRYBACK, AND REALLOCATION. [<-Struck out]

    [Struck out->]

    ‘(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. [<-Struck out]

    [Struck out->]

    ‘(b) CARRYBACK 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, be used by the institution for expenditure for the fiscal year preceding the fiscal year for which the sums were appropriated. [<-Struck out]

    [Struck out->]

    ‘(c) REALLOCATION- Any of the sums made available to an eligible institution under this subpart for a fiscal year that are not needed by the institution to award supplemental grants during that fiscal year, that the institution does not wish to use during the succeeding fiscal year as authorized in subsection (a), and that the institution does not wish to use for the preceding fiscal year as authorized in subsection (b), shall be made available to the Secretary for reallocation under section 413D(e) until the end of the second fiscal year after the fiscal year for which such sums were appropriated.’. [<-Struck out]

[Struck out->] SEC. 416. LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM. [<-Struck out]

    [Struck out->] (a) AUTHORIZATION OF APPROPRIATIONS- Section 415A(b) (20 U.S.C. 1070c(b)) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (1), by striking ‘1993’ and inserting ‘1999’; [<-Struck out]

      [Struck out->] (2) by redesignating paragraph (2) as paragraph (3); and [<-Struck out]

      [Struck out->] (3) by inserting after paragraph (1) the following: [<-Struck out]

      [Struck out->]

      ‘(2) RESERVATION- For any fiscal year for which the amount appropriated under paragraph (1) exceeds $35,000,000, the excess shall be available to carry out section 415E.’. [<-Struck out]

    [Struck out->] (b) SPECIAL LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM- Subpart 4 of part A of title IV (20 U.S.C. 1070c et seq.) is amended-- [<-Struck out]

      [Struck out->] (1) by redesignating section 415E as 415F; [<-Struck out]

      [Struck out->] (2) by inserting after section 415D the following: [<-Struck out]

[Struck out->]
‘SEC. 415E. SPECIAL LEVERAGING EDUCATIONAL ASSISTANCE PARTNERSHIP PROGRAM. [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- From amounts reserved under section 415A(b)(2) for each fiscal year, the Secretary shall-- [<-Struck out]

      [Struck out->]

      ‘(1) make allotments among States in the same manner as the Secretary makes allotments among States under section 415B; and [<-Struck out]

      [Struck out->]

      ‘(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). [<-Struck out]

    [Struck out->]

    ‘(b) APPLICABILITY RULE- The provisions of this subpart which are not inconsistent with this section shall apply to the program authorized by this section. [<-Struck out]

    [Struck out->]

    ‘(c) AUTHORIZED ACTIVITIES- Each State receiving a grant under this section may use the grant funds for-- [<-Struck out]

      [Struck out->]

      ‘(1) increasing the dollar amount of grants awarded under section 415B to eligible students who demonstrate financial need; [<-Struck out]

      [Struck out->]

      ‘(2) carrying out transition programs from secondary school to postsecondary education for eligible students who demonstrate financial need; [<-Struck out]

      [Struck out->]

      ‘(3) making funds available for community service work-study activities for eligible students who demonstrate financial need; [<-Struck out]

      [Struck out->]

      ‘(4) creating a postsecondary scholarship program for eligible students who demonstrate financial need and wish to enter teaching; [<-Struck out]

      [Struck out->]

      ‘(5) 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; [<-Struck out]

      [Struck out->]

      ‘(6) carrying out early intervention programs, mentoring programs, and career education programs for eligible students who demonstrate financial need; and [<-Struck out]

      [Struck out->]

      ‘(7) awarding merit or academic scholarships to eligible students who demonstrate financial need. [<-Struck out]

    [Struck out->]

    ‘(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. [<-Struck out]

    [Struck out->]

    ‘(e) FEDERAL SHARE- The Federal share of the cost of the authorized activities described in subsection (c) for any fiscal year shall be 33 1/3 percent.’; and [<-Struck out]

      [Struck out->] (3) by adding at the end the following: [<-Struck out]

[Struck out->]
‘SEC. 415G. FEDERAL-STATE RELATIONSHIPS; STATE AGREEMENTS. [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- Any State that desires to receive assistance under this subpart shall enter into an agreement with the Secretary pursuant to subsection (b) setting forth the terms and conditions for the relationship between the Federal Government and that State for the purposes set forth under this subpart. [<-Struck out]

    [Struck out->]

    ‘(b) CONTENTS- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- Such agreement shall consist of assurances by the State, including a description of the means to be used by the State to fulfill the assurances, that-- [<-Struck out]

        [Struck out->]

        ‘(A) the State will provide for such methods of administration as are necessary for the proper and efficient administration of the program under this subpart in keeping with the purposes set forth under this subpart; [<-Struck out]

        [Struck out->]

        ‘(B) the State will provide for such fiscal control and fund accounting procedures as may be necessary to ensure proper disbursement of, and accounting for, Federal funds paid to the State under this subpart; [<-Struck out]

        [Struck out->]

        ‘(C) the State will follow policies and practices of administration that will ensure that non-Federal funds will not be supplanted by Federal funds, and that equitable and appropriate criteria will be used in evaluation of applications or proposals for grants under this subpart; and [<-Struck out]

        [Struck out->]

        ‘(D) the State has a comprehensive planning or policy formulation process that-- [<-Struck out]

          [Struck out->]

          ‘(i) considers the relation between State administration of the program under this subpart, and administration of similar State programs or processes; [<-Struck out]

          [Struck out->]

          ‘(ii) encourages State policies designed to consider effects on declining enrollments on all sectors of postsecondary education in the State; [<-Struck out]

          [Struck out->]

          ‘(iii) considers the postsecondary education needs of unserved and underserved individuals within the State, including individuals beyond the traditional college age; [<-Struck out]

          [Struck out->]

          ‘(iv) considers the resources of institutions, organizations, or agencies (both public and private) within the State capable of providing postsecondary educational opportunities in the State; and [<-Struck out]

          [Struck out->]

          ‘(v) provides for direct, equitable, and active participation in the comprehensive planning or policy formulation process or processes of representatives of institutions of higher education (including community colleges, proprietary institutions, and independent colleges and universities), students, other providers of postsecondary education services, and the general public in the State. [<-Struck out]

      [Struck out->]

      ‘(2) SPECIAL RULE- Participation under paragraph (1)(D)(v) shall, consistent with State law, be achieved through membership on State planning commissions, State advisory councils, or other State [<-Struck out]

[Struck out->] entities established by the State to conduct federally assisted comprehensive planning or policy formulation. [<-Struck out]

    [Struck out->]

    ‘(c) SPECIAL RULE- The information and assurances provided by a State in accordance with subparagraphs (A), (B), and (C) of subsection (b)(1), and regulations issued by the Secretary related directly to such assurances, shall be satisfactory for the purposes of, and shall be considered in lieu of, any comparable requirements for information and assurances in any program under this subpart. [<-Struck out]

    [Struck out->]

    ‘(d) AGREEMENT DURATION; COMPLIANCE- [<-Struck out]

      [Struck out->]

      ‘(1) AGREEMENT DURATION- An agreement of a State shall remain in effect subject to modification as changes in information or circumstances require. [<-Struck out]

      [Struck out->]

      ‘(2) COMPLIANCE- Whenever the Secretary, after reasonable notice and opportunity for a hearing has been given to the State, finds that there is a failure to comply substantially with the assurances required in subparagraph (A), (B), or (C) of subsection (b)(1), the Secretary shall notify the State that the State is no longer eligible to participate in the program under this subpart until the Secretary is satisfied that there is no longer any such failure to comply. [<-Struck out]

    [Struck out->]

    ‘(e) SPECIAL RULES- [<-Struck out]

      [Struck out->]

      ‘(1) ENTITIES ENTERING INTO AGREEMENTS- For the purpose of this section, the selection of the State entity or entities authorized to act on behalf of the State for the purpose of entering into an agreement with the Secretary shall be in accordance with the State law of each individual State with respect to the authority to make legal agreements between the State and the Federal Government. [<-Struck out]

      [Struck out->]

      ‘(2) CONSTRUCTION- [<-Struck out]

        [Struck out->]

        ‘(A) STATE STRUCTURE- Nothing in this section shall be construed to authorize the Secretary to require any State to adopt, as a condition for entering into an agreement, or for participation in a program under this subpart, a specific State organizational structure for achieving participation in the planning, or administration of programs, or for statewide planning, coordination, governing, regulating, or administering of postsecondary education agencies, institutions, or programs in the State. [<-Struck out]

        [Struck out->]

        ‘(B) STATE AUTHORITY- Nothing in this section shall be construed as a limitation on the authority of any State to adopt a State organizational structure for postsecondary education agencies, institutions, or programs that is appropriate to the needs, traditions, and circumstances of that State, or as a limitation on the authority of a State entering into an agreement pursuant to this section to modify the State organizational structure at any time subsequent to entering into such an agreement.’. [<-Struck out]

    [Struck out->] (c) TECHNICAL AND CONFORMING AMENDMENTS- [<-Struck out]

      [Struck out->] (1) PURPOSE- Subsection (a) of section 415A (20 U.S.C. 1070c(a)) is amended to read as follows: [<-Struck out]

    [Struck out->]

    ‘(a) PURPOSE OF SUBPART- It is the purpose of this subpart to make incentive grants available to States to assist States in-- [<-Struck out]

      [Struck out->]

      ‘(1) providing grants to-- [<-Struck out]

        [Struck out->]

        ‘(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 [<-Struck out]

        [Struck out->]

        ‘(B) eligible students for campus-based community service work-study; and [<-Struck out]

      [Struck out->]

      ‘(2) carrying out the activities described in section 415F.’. [<-Struck out]

      [Struck out->] (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)’. [<-Struck out]

[Struck out->] SEC. 417. HEP AND CAMP. [<-Struck out]

    [Struck out->] Section 418A(g) (20 U.S.C. 1070d-2(g)) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (1), by striking ‘$15,000,000 for fiscal year 1993’ and inserting ‘$25,000,000 for fiscal year 1999’; and [<-Struck out]

      [Struck out->] (2) in paragraph (2), by striking ‘$5,000,000 for fiscal year 1993’ and inserting ‘$10,000,000 for fiscal year 1999’. [<-Struck out]

[Struck out->] SEC. 418. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM. [<-Struck out]

    [Struck out->] 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’. [<-Struck out]

[Struck out->] SEC. 419. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL. [<-Struck out]

    [Struck out->] 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: [<-Struck out]

[Struck out->]
‘Subpart 7--Child Care Access Means Parents in School [<-Struck out]

[Struck out->]
‘SEC. 419N. CHILD CARE ACCESS MEANS PARENTS IN SCHOOL. [<-Struck out]

    [Struck out->]

    ‘(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. [<-Struck out]

    [Struck out->]

    ‘(b) PROGRAM AUTHORIZED- [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

      [Struck out->]

      ‘(2) AMOUNT OF GRANTS- [<-Struck out]

        [Struck out->]

        ‘(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 amount of all Federal Pell Grant funds awarded to students enrolled at the institution of higher education for the preceding fiscal year. [<-Struck out]

        [Struck out->]

        ‘(B) MINIMUM- A grant under this section shall be awarded in an amount that is not less than $10,000. [<-Struck out]

      [Struck out->]

      ‘(3) DURATION; RENEWAL; AND PAYMENTS- [<-Struck out]

        [Struck out->]

        ‘(A) DURATION- The Secretary shall award a grant under this section for a period of 3 years. [<-Struck out]

        [Struck out->]

        ‘(B) RENEWAL- A grant under this section may be renewed for a period of 3 years. [<-Struck out]

        [Struck out->]

        ‘(C) PAYMENTS- Subject to subsection (d)(2), the Secretary shall make annual grant payments under this section. [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

      [Struck out->]

      ‘(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 serving the needs of low-income students enrolled at the institution of higher education. [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

    [Struck out->]

    ‘(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-- [<-Struck out]

      [Struck out->]

      ‘(1) demonstrate that the institution is an eligible institution described in subsection (b)(4); [<-Struck out]

      [Struck out->]

      ‘(2) specify the amount of funds requested; [<-Struck out]

      [Struck out->]

      ‘(3) demonstrate the need of low-income students at the institution for campus-based child care services by including in the application student demographics and other relevant data; [<-Struck out]

      [Struck out->]

      ‘(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; [<-Struck out]

      [Struck out->]

      ‘(5) identify the resources the institution will draw upon to support 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; [<-Struck out]

      [Struck out->]

      ‘(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; [<-Struck out]

      [Struck out->]

      ‘(7) in the case of an institution seeking assistance for a new child care program-- [<-Struck out]

        [Struck out->]

        ‘(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; [<-Struck out]

        [Struck out->]

        ‘(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 [<-Struck out]

        [Struck out->]

        ‘(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; [<-Struck out]

      [Struck out->]

      ‘(8) 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 [<-Struck out]

      [Struck out->]

      ‘(9) 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. [<-Struck out]

    [Struck out->]

    ‘(d) REPORTING REQUIREMENTS; CONTINUING ELIGIBILITY- [<-Struck out]

      [Struck out->]

      ‘(1) REPORTING REQUIREMENTS- [<-Struck out]

        [Struck out->]

        ‘(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. [<-Struck out]

        [Struck out->]

        ‘(B) CONTENTS- The report shall include-- [<-Struck out]

          [Struck out->]

          ‘(i) data on the population served under this section; [<-Struck out]

          [Struck out->]

          ‘(ii) information on campus and community resources and funding used to help low-income students access child care services; [<-Struck out]

          [Struck out->]

          ‘(iii) information on progress made toward accreditation of any child care facility; and [<-Struck out]

          [Struck out->]

          ‘(iv) information on the impact of the grant on the quality, availability, and affordability of campus-based child care services. [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

    [Struck out->]

    ‘(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this section $60,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years.’. [<-Struck out]

[Struck out->] PART B--FEDERAL FAMILY EDUCATION LOAN PROGRAM [<-Struck out]

[Struck out->] SEC. 421. ADVANCES FOR RESERVE FUNDS. [<-Struck out]

    [Struck out->] Section 422 (20 U.S.C. 1072) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (c)-- [<-Struck out]

        [Struck out->] (A) in paragraph (6)(B)(i), by striking ‘written’ and inserting ‘written, electronic’; and [<-Struck out]

        [Struck out->] (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’; [<-Struck out]

      [Struck out->] (2) in the matter preceding subparagraph (A) of subsection (g)(1), by striking ‘or the program authorized by part D of this title’ each place the term appears; and [<-Struck out]

      [Struck out->] (3) by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(i) Additional Recall of Reserves- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- Notwithstanding any other provision of law and subject to paragraph (4), the Secretary shall recall $40,000,000 for each of the fiscal years 1999, 2000, 2001, 2002, and 2003 from reserve funds held in the Federal Student Loan Reserve Funds established under section 422A by guaranty agencies. [<-Struck out]

      [Struck out->]

      ‘(2) DEPOSIT- Funds recalled by the Secretary under this subsection shall be deposited in the Treasury. [<-Struck out]

      [Struck out->]

      ‘(3) REQUIRED SHARE- The Secretary shall require each guaranty agency to return reserve funds under paragraph (1) annually on the basis of 1/5 of the agency’s required share. For purposes of this paragraph, a guaranty agency’s required share shall be determined as follows: [<-Struck out]

        [Struck out->]

        ‘(A) EQUAL PERCENTAGE- The Secretary shall require each guaranty agency to return an equal percentage reduction in the amount of reserve funds held by the agency on September 30, 1996. [<-Struck out]

        [Struck out->]

        ‘(B) CALCULATION- The equal percentage reduction shall be the percentage obtained by dividing-- [<-Struck out]

          [Struck out->]

          ‘(i) $200,000,000, by [<-Struck out]

          [Struck out->]

          ‘(ii) the total amount of all guaranty agencies’ reserve funds held on September 30, 1996. [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

      [Struck out->]

      ‘(5) DEFINITION OF RESERVE FUNDS- The term ‘reserve funds’ when used with respect to a guaranty agency-- [<-Struck out]

        [Struck out->]

        ‘(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 [<-Struck out]

        [Struck out->]

        ‘(B) does not include buildings, equipment, or other nonliquid assets.’. [<-Struck out]

[Struck out->] SEC. 422. FEDERAL STUDENT LOAN RESERVE FUND. [<-Struck out]

    [Struck out->] Part B of title IV (20 U.S.C. 1071 et seq.) is amended by inserting after section 422 (20 U.S.C. 1072) the following: [<-Struck out]

[Struck out->]
‘SEC. 422A. FEDERAL STUDENT LOAN RESERVE FUND. [<-Struck out]

    [Struck out->]

    ‘(a) ESTABLISHMENT- Each guaranty agency shall, not later than 45 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 referred to as the ‘Federal Fund’), in an account of a type selected by the agency, with the approval of the Secretary. [<-Struck out]

    [Struck out->]

    ‘(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 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. [<-Struck out]

    [Struck out->]

    ‘(c) ADDITIONAL DEPOSITS- After the establishment of the Federal Fund, a guaranty agency shall deposit into the Federal Fund-- [<-Struck out]

      [Struck out->]

      ‘(1) all amounts received from the Secretary as payment of reinsurance on loans pursuant to section 428(c)(1); [<-Struck out]

      [Struck out->]

      ‘(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 with respect to the defaulted loan pursuant to section 428(c)(6)(A)(i); and [<-Struck out]

      [Struck out->]

      ‘(3) the amount of the insurance premium collected from borrowers pursuant to section 428(b)(1)(H). [<-Struck out]

    [Struck out->]

    ‘(d) USES OF FUNDS- Subject to subsection (f), the Federal Fund may only be used by a guaranty agency-- [<-Struck out]

      [Struck out->]

      ‘(1) to pay lender claims pursuant to sections 428(b)(1)(G), 428(j), 437, and 439(q); and [<-Struck out]

      [Struck out->]

      ‘(2) to pay into the Agency Operating Fund established pursuant to section 422B a default prevention fee in accordance with section 428(l). [<-Struck out]

    [Struck out->]

    ‘(e) OWNERSHIP OF FEDERAL FUND- The Federal Fund administered by the guaranty agency, regardless of who holds or controls the reserve funds or assets, and any nonliquid assets that were purchased with Federal reserve funds, shall be considered to be the property of the United States to be used in the operation of the program authorized by this part, as provided in subsection (d). The Secretary may direct a guaranty agency, or such agency’s officers or directors, to cease any activity involving expenditure, use, or transfer of the Federal Fund administered by the guaranty agency that the Secretary determines is a misapplication, misuse, or improper expenditure of such funds or assets. [<-Struck out]

    [Struck out->]

    ‘(f) TRANSITION- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- In order to establish the Agency Operating Fund established by section 422B, each agency may transfer not more than 180 days cash expenses for normal operating expenses, as a working capital reserve as defined in Office of Management and Budget Circular A-87 (Cost Accounting Standards) for use in the performance of the agency’s duties under this part. Such transfers may occur during the first 3 years following the establishment of the Agency Operating Fund, except that no agency may transfer in excess of 40 percent of the Federal Fund balance to the agency’s Agency Operating Fund during any fiscal year. In determining the amount necessary for transfer, the agency shall assure that sufficient funds remain in the Federal Fund to pay lender claims within the required time periods and to meet the reserve funds recall requirements of subsection (b). [<-Struck out]

      [Struck out->]

      ‘(2) REPAYMENT PROVISIONS- Each guaranty agency shall begin repayment of sums transferred pursuant to this subsection not later than 3 years after the establishment of the Agency Operating Fund, and shall repay all sums transferred not later than 5 years from the date of the establishment of the Agency Operating Fund. The guaranty agency shall provide to the Secretary a 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. [<-Struck out]

      [Struck out->]

      ‘(3) 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. [<-Struck out]

      [Struck out->]

      ‘(4) WAIVER- The Secretary may waive the requirements of paragraph (3) for a guaranty agency described in such paragraph if the Secretary determines there are extenuating circumstances beyond the control of the agency that justify such a waiver. [<-Struck out]

      [Struck out->]

      ‘(5) INVESTMENT OF FEDERAL FUNDS- Funds transferred from the Federal Fund to the Agency 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. [<-Struck out]

      [Struck out->]

      ‘(6) SPECIAL RULE- In applying 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.’. [<-Struck out]

[Struck out->] SEC. 423. AGENCY OPERATING FUND. [<-Struck out]

    [Struck out->] Part B of title IV (20 U.S.C. 1071 et seq.) is amended further by inserting after section 422A (as added by section 422) the following: [<-Struck out]

[Struck out->]
‘SEC. 422B. AGENCY OPERATING FUND. [<-Struck out]

    [Struck out->]

    ‘(a) ESTABLISHMENT- Each guaranty agency shall, not later than 45 days after the date of enactment of this section, establish a fund designated as the Agency Operating Fund (in this section referred to as the ‘Operating Fund’). [<-Struck out]

    [Struck out->]

    ‘(b) INVESTMENT OF FUNDS- Funds deposited into the Operating Fund, with the exception of funds transferred from the Federal Student Loan Reserve Fund pursuant to section 422A(f), shall be invested at the discretion of the guaranty agency. [<-Struck out]

    [Struck out->]

    ‘(c) ADDITIONAL DEPOSITS- After the establishment of the Operating Fund, the guaranty agency shall deposit into the Operating Fund-- [<-Struck out]

      [Struck out->]

      ‘(1) the loan processing and issuance fee paid by the Secretary pursuant to section 428(f); [<-Struck out]

      [Struck out->]

      ‘(2) the portfolio maintenance fee paid by the Secretary in accordance with section 458; [<-Struck out]

      [Struck out->]

      ‘(3) the default prevention fee paid in accordance with section 428(l); and [<-Struck out]

      [Struck out->]

      ‘(4) amounts remaining pursuant to section 428(c)(6)(A)(ii) from collection on defaulted loans held by the agency, after payment of the Secretary’s equitable share, excluding amounts deposited in the Federal Student Loan Reserve Fund pursuant to section 422A(c)(2). [<-Struck out]

    [Struck out->]

    ‘(d) USES OF FUNDS- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- Funds in the Operating Fund shall be used for application processing, loan disbursement, enrollment and repayment status management, default prevention activities (including those described in section 422(h)(8), default collection activities, school and lender training, compliance monitoring, and other student financial aid related activities as determined by the Secretary. [<-Struck out]

      [Struck out->]

      ‘(2) SPECIAL RULE- The guaranty agency may, in the agency’s discretion, transfer funds from the Operating Fund to the Federal Student Loan Reserve 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. [<-Struck out]

      [Struck out->]

      ‘(3) DEFINITIONS- For purposes of this subsection: [<-Struck out]

        [Struck out->]

        ‘(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 attributable compensation of collection personnel (and in the case of personnel who perform several functions for such an agency only the portion of the compensation attributable to the collection activity), attorney’s fees, fees paid to collection agencies, postage, equipment, supplies, telephone, and similar charges. [<-Struck out]

        [Struck out->]

        ‘(B) DEFAULT PREVENTION ACTIVITIES- The term ‘default prevention activities’ means activities of a guaranty agency, including those described in section 422(h)(8), that are directly related to providing collection assistance to the lender on a delinquent loan, prior to the loan’s being in a default status, including the attributable compensation of appropriate personnel (and in the case of personnel who perform several functions for such an agency only the portion of compensation attributable to the default prevention activity), fees paid to locate a missing borrower, postage, equipment, supplies, telephone, and similar charges. [<-Struck out]

        [Struck out->]

        ‘(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 title. [<-Struck out]

    [Struck out->]

    ‘(e) OWNERSHIP OF OPERATING FUND- The Operating Fund, with the exception of funds transferred from the Federal Student Loan Reserve Fund in accordance with section 422A(f), shall be considered to be the property of the guaranty agency. 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). However, during any period in which funds are owed to the Federal Student Loan Reserve Fund as a result of transfer under 422A(f), moneys in the Operating Fund may only be used for expenses related to the student loan programs authorized under this part. [<-Struck out]

    [Struck out->]

    ‘(f) AUTHORITY OF SECRETARY TO DISPOSE OF NONLIQUID ASSETS- The Secretary may allow a guaranty agency to purchase nonliquid assets of the agency originally acquired with student loan reserve funds, except that an agency may not purchase any nonliquid assets during any period in which funds are owed to the Federal Student Loan Reserve Fund as a result of a transfer under section 422A(f). The purchase amount shall be available for expenditure under section 458.’. [<-Struck out]

[Struck out->] SEC. 424. APPLICABLE INTEREST RATES. [<-Struck out]

    [Struck out->] (a) APPLICABLE INTEREST RATES- [<-Struck out]

      [Struck out->] (1) AMENDMENT- Section 427A (20 U.S.C. 1077a et seq.) is amended to read as follows: [<-Struck out]

[Struck out->]
‘SEC. 427A. APPLICABLE INTEREST RATES. [<-Struck out]

    [Struck out->]

    ‘(a) INTEREST RATES FOR NEW LOANS ON OR AFTER JULY 1, 1998- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- Subject to paragraph (2), 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 July 1, 1998, 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-- [<-Struck out]

        [Struck out->]

        ‘(A) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus [<-Struck out]

        [Struck out->]

        ‘(B) 2.3 percent, [<-Struck out]

      [Struck out->] except that such rate shall not exceed 8.25 percent. [<-Struck out]

      [Struck out->]

      ‘(2) IN SCHOOL AND GRACE PERIOD RULES- 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 July 1, 1998, the applicable rate of interest for interest which accrues-- [<-Struck out]

        [Struck out->]

        ‘(A) prior to the beginning of the repayment period of the loan; or [<-Struck out]

        [Struck out->]

        ‘(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 428(b)(1)(M) or 427(a)(2)(C), [<-Struck out]

      [Struck out->] shall be determined under paragraph (1) by substituting ‘1.7 percent’ for ‘2.3 percent’. [<-Struck out]

      [Struck out->]

      ‘(3) PLUS LOANS- With respect to any loan under section 428B for which the first disbursement is made on or after July 1, 1998, the applicable rate of interest shall be determined under paragraph (1)-- [<-Struck out]

        [Struck out->]

        ‘(A) by substituting ‘3.1 percent’ for ‘2.3 percent’; and [<-Struck out]

        [Struck out->]

        ‘(B) by substituting ‘9.0 percent’ for ‘8.25 percent’. [<-Struck out]

    [Struck out->]

    ‘(b) LESSER RATES PERMITTED- Nothing in this section or section 428C shall be construed to prohibit a lender from charging a borrower interest at a rate less than the rate which is applicable under this part. [<-Struck out]

    [Struck out->]

    ‘(c) CONSULTATION- The Secretary shall determine the applicable rate of interest under this section 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.’. [<-Struck out]

      [Struck out->] (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(a)(3)’. [<-Struck out]

    [Struck out->] (b) SPECIAL ALLOWANCES- [<-Struck out]

      [Struck out->] (1) AMENDMENT- Section 438(b)(2)(F) (20 U.S.C. 1087-1(b)(2)(F)) is amended to read as follows: [<-Struck out]

      [Struck out->]

      ‘(F) LOANS DISBURSED AFTER JULY 1, 1998- [<-Struck out]

        [Struck out->]

        ‘(i) IN GENERAL- Subject to paragraph (4) and clauses (ii), (iii), and (iv) of this subparagraph, the special allowance paid pursuant to this subsection on loans for which the first disbursement is made on or after July 1, 1998, shall be computed-- [<-Struck out]

          [Struck out->]

          ‘(I) by determining the average of the bond equivalent rates of 91-day Treasury bills auctioned for such 3-month period; [<-Struck out]

          [Struck out->]

          ‘(II) by subtracting the applicable interest rates on such loans from such average bond equivalent rate; [<-Struck out]

          [Struck out->]

          ‘(III) by adding 2.8 percent to the resultant percent; and [<-Struck out]

          [Struck out->]

          ‘(IV) by dividing the resultant percent by 4. [<-Struck out]

        [Struck out->]

        ‘(ii) IN SCHOOL AND GRACE PERIOD- In the case of any loan for which the first disbursement is made on or after July 1, 1998, and for which the applicable rate of interest is described in section 427A(a)(2), clause (i)(III) of this subparagraph shall be applied by substituting ‘2.2 percent’ for ‘2.8 percent’. [<-Struck out]

        [Struck out->]

        ‘(iii) PLUS LOANS- In the case of any loan for which the first disbursement is made on or after July 1, 1998, and for which the applicable rate of interest is described in section 427A(a)(3), clause (i)(III) of this subparagraph shall be applied by substituting ‘3.1 percent’ for ‘2.8 percent’, subject to clause (iv) of this subparagraph. [<-Struck out]

        [Struck out->]

        ‘(iv) LIMITATION ON SPECIAL ALLOWANCES FOR PLUS LOANS- In the case of loans disbursed on or after July 1, 1998, for which the interest rate is determined under section 427A(a)(3), a special allowance shall not be paid for a loan made under section 428B unless the rate determined for any 12-month period under section 427A(a)(3) exceeds 9 percent.’. [<-Struck out]

      [Struck out->] (2) CONFORMING AMENDMENT- Section 438(b)(2)(C)(ii) is amended by striking ‘In the case’ and inserting ‘Subject to subparagraph (F), in the case’. [<-Struck out]

    [Struck out->] (c) 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 July 1, 1998. [<-Struck out]

[Struck out->] SEC. 425. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS. [<-Struck out]

    [Struck out->] (a) FEDERAL INTEREST SUBSIDIES- Section 428(a) (20 U.S.C. 1078(a)) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (2)-- [<-Struck out]

        [Struck out->] (A) in subparagraph (A)-- [<-Struck out]

          [Struck out->] (i) in clause (i), by striking subclauses (I), (II), and (III) and inserting the following: [<-Struck out]

          [Struck out->]

          ‘(I) sets forth the loan amount for which the student shows financial need; and [<-Struck out]

          [Struck out->]

          ‘(II) sets forth a schedule for disbursement of the proceeds of the loan in installments, consistent with the requirements of section 428G; and’; and [<-Struck out]

          [Struck out->] (ii) by amending clause (ii) to read as follows: [<-Struck out]

        [Struck out->]

        ‘(ii) meets the requirements of subparagraph (B); and’; [<-Struck out]

        [Struck out->] (B) by amending subparagraph (B) to read as follows: [<-Struck out]

      [Struck out->]

      ‘(B) For the purpose of clause (ii) of subparagraph (A), a student shall qualify for a portion of an interest payment under paragraph (1) (and a loan amount pursuant to section 428H) 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, the expected family contribution (as determined under part F), subject to the provisions of subparagraph (D).’; and [<-Struck out]

        [Struck out->] (C) by amending subparagraph (C) to read as follows: [<-Struck out]

      [Struck out->]

      ‘(C) For the purpose of subparagraph (B) and this paragraph-- [<-Struck out]

        [Struck out->]

        ‘(i) a student’s cost of attendance shall be determined under section 472; [<-Struck out]

        [Struck out->]

        ‘(ii) a student’s estimated financial assistance means, for the period for which the loan is sought, 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, parts C and E, and any veterans’ education benefits paid because of enrollment in a postsecondary education institution, including veterans’ education benefits (as defined in section 480(c)), plus other scholarship, grant, or loan assistance; and [<-Struck out]

        [Struck out->]

        ‘(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, with the exception of loans made under section 428H, be calculated in accordance with part F.’; and [<-Struck out]

      [Struck out->] (2) in paragraph (3)(A)(v)-- [<-Struck out]

        [Struck out->] (A) in subclause (I), by inserting ‘by the institution’ after ‘disbursement’; and [<-Struck out]

        [Struck out->] (B) in clause (II), by inserting ‘by the institution’ after ‘disbursement’. [<-Struck out]

    [Struck out->] (b) INSURANCE PROGRAM AGREEMENTS- Section 428(b) (20 U.S.C. 1078(b)) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (1)-- [<-Struck out]

        [Struck out->] (A) in subparagraph (A)-- [<-Struck out]

          [Struck out->] (i) in the matter preceding clause (i), by inserting ‘, as defined in section 481(d)(2),’ after ‘academic year’; [<-Struck out]

          [Struck out->] (ii) in clause (iv), by striking ‘and’ after the semicolon; [<-Struck out]

          [Struck out->] (iii) in clause (v), by inserting ‘and’ after the semicolon; and [<-Struck out]

          [Struck out->] (iv) by inserting before the matter following clause (v) the following: [<-Struck out]

          [Struck out->]

          ‘(vi) in the case of a student enrolled in coursework specified in sections 484(b)(3)(B) and 484(b)(4)(B)-- [<-Struck out]

            [Struck out->]

            ‘(I) $2,625 for coursework necessary for enrollment in an undergraduate degree or certificate program, and $5,500 for coursework necessary for enrollment in a graduate or professional degree or certification program; and [<-Struck out]

            [Struck out->]

            ‘(II) $5,500 for coursework necessary for a professional credential or certification from a State required for employment as a teacher in an elementary or secondary school;’; [<-Struck out]

        [Struck out->] (B) by amending subparagraph (E) to read as follows: [<-Struck out]

        [Struck out->]

        ‘(E) subject to subparagraphs (D) and (L), and except as provided by subparagraph (M), provides that-- [<-Struck out]

          [Struck out->]

          ‘(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 graduated, income-sensitive, or extended repayment schedule (as described in paragraph (9)) established by the lender in accordance with regulations provided by the Secretary; and [<-Struck out]

          [Struck out->]

          ‘(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)’; [<-Struck out]

        [Struck out->] (C) in subparagraph (L)(i), 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 [<-Struck out]

        [Struck out->] (D) in subparagraph (U)(iii)(I), by inserting ‘that originates or holds more than $5,000,000 in loans made under this title for any fiscal year,’ before ‘at least once a year’; and [<-Struck out]

      [Struck out->] (2) by adding at the end the following: [<-Struck out]

      [Struck out->]

      ‘(9) REPAYMENT PLANS- [<-Struck out]

        [Struck out->]

        ‘(A) 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 described in this subparagraph for repayment of such loan, including principal and interest thereon. Except as provided in paragraph (1)(L)(i), no plan may require a borrower to repay a loan in less than 5 years. The borrower may choose from-- [<-Struck out]

          [Struck out->]

          ‘(i) a standard repayment plan, with a fixed annual repayment amount paid over a fixed period of time, not to exceed 10 years; [<-Struck out]

          [Struck out->]

          ‘(ii) a graduated repayment plan paid over a fixed period of time, not to exceed 10 years; [<-Struck out]

          [Struck out->]

          ‘(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 [<-Struck out]

          [Struck out->]

          ‘(iv) for first-time borrowers on or after the date of enactment of the Higher Education Amendments of 1998 with 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 (2)(L). [<-Struck out]

        [Struck out->]

        ‘(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). [<-Struck out]

        [Struck out->]

        ‘(C) CHANGES IN SELECTION- The borrower of a loan made under this part may change the borrower’s selection of a repayment plan under subparagraph (B), as the case may be, under such conditions as may be prescribed by the Secretary in regulation. [<-Struck out]

        [Struck out->]

        ‘(D) ACCELERATION PERMITTED- Under any of the plans described in this paragraph, the borrower shall be entitled to accelerate, without penalty, repayment on the borrower’s loans under this part.’. [<-Struck out]

    [Struck out->] (c) GUARANTY AGREEMENTS FOR REIMBURSING LOSSES- Section 428(c) (20 U.S.C. 1078(c)) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (1)-- [<-Struck out]

        [Struck out->] (A) in the fourth sentence of subparagraph (A), by striking ‘as reimbursement under this subsection shall be equal to 98 percent’ and inserting ‘as reimbursement for loans for which the first disbursement is made on or after the date of enactment of the Higher Education Amendments of 1998 shall be equal to 95 percent’; [<-Struck out]

        [Struck out->] (B) in subparagraph (B)-- [<-Struck out]

          [Struck out->] (i) in clause (i), by striking ‘88 percent of the amount of such excess’ and inserting ‘85 percent of the amount of such excess for loans for which the first disbursement is made on or after the date of enactment of the Higher Education Amendments of 1998’; and [<-Struck out]

          [Struck out->] (ii) in clause (ii), by striking ‘78 percent of the amount of such excess’ and inserting ‘75 percent of the amount of such excess for loans for which the first disbursement is made on or after the date of enactment of the Higher Education Amendments of 1998’; [<-Struck out]

        [Struck out->] (C) in subparagraph (E)-- [<-Struck out]

          [Struck out->] (i) in clause (i), by striking ‘98 percent’ and inserting ‘95 percent’; [<-Struck out]

          [Struck out->] (ii) in clause (ii), by striking ‘88 percent’ and inserting ‘85 percent’; and [<-Struck out]

          [Struck out->] (iii) in clause (iii), by striking ‘78 percent’ and inserting ‘75 percent’; and [<-Struck out]

        [Struck out->] (D) in subparagraph (F)-- [<-Struck out]

          [Struck out->] (i) in clause (i), by striking ‘98 percent’ and inserting ‘95 percent’; and [<-Struck out]

          [Struck out->] (ii) in clause (ii), by striking ‘88 percent’ and inserting ‘85 percent’; [<-Struck out]

      [Struck out->] (2) in paragraph (3)-- [<-Struck out]

        [Struck out->] (A) in subparagraph (A)(i), by inserting ‘or electronic’ after ‘written’; [<-Struck out]

        [Struck out->] (B) in subparagraph (B), by striking ‘and’ after the semicolon; [<-Struck out]

        [Struck out->] (C) in subparagraph (C), by striking the period and inserting ‘; and’; and [<-Struck out]

        [Struck out->] (D) by inserting before the matter following subparagraph (C) the following: [<-Struck out]

        [Struck out->]

        ‘(D) shall contain provisions that specify that forbearance for a period not to exceed 60 days may be granted if the lender determines that such a suspension of collection activity is warranted following a borrower’s request for forbearance in order to collect or process appropriate supporting documentation related to the request, and that during such period interest shall not be capitalized.’; [<-Struck out]

      [Struck out->] (3) by amending paragraph (6) to read as follows: [<-Struck out]

      [Struck out->]

      ‘(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-- [<-Struck out]

        [Struck out->]

        ‘(A) a percentage amount equal to the complement of the reinsurance percentage in effect when payment in effect when payment under the guaranty agreement was made with respect to the loan; and [<-Struck out]

        [Struck out->]

        ‘(B) an amount equal to 24 percent of such payments for use in accordance with section 422B.’; [<-Struck out]

      [Struck out->] (4) in paragraph (8)-- [<-Struck out]

        [Struck out->] (A) by striking ‘(A) If’ and inserting ‘If’; and [<-Struck out]

        [Struck out->] (B) by striking subparagraph (B); and [<-Struck out]

      [Struck out->] (5) in paragraph (9)-- [<-Struck out]

        [Struck out->] (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’; [<-Struck out]

        [Struck out->] (B) in subparagraph (C)-- [<-Struck out]

          [Struck out->] (i) by striking ‘80 percent’ and inserting ‘78 percent’; [<-Struck out]

          [Struck out->] (ii) by striking ‘, as appropriate,’; and [<-Struck out]

          [Struck out->] (iii) by striking ‘30 working’ and inserting ‘45 working’; [<-Struck out]

        [Struck out->] (C) in subparagraph (E)-- [<-Struck out]

          [Struck out->] (i) in clause (iv), by inserting ‘or’ after the semicolon; [<-Struck out]

          [Struck out->] (ii) in clause (v), by striking ‘; or’ and inserting a period; and [<-Struck out]

          [Struck out->] (iii) by striking clause (vi); [<-Struck out]

        [Struck out->] (D) in subparagraph (F), by amending clause (vii) to read as follows: [<-Struck out]

        [Struck out->]

        ‘(vii) take any other action the Secretary determines necessary to avoid disruption of the student loan program, to ensure the continued [<-Struck out]

[Struck out->] availability of loans made under this part to residents of each State in which the guaranty agency did business, to ensure the full honoring of all guarantees issued by the guaranty agency prior to the Secretary’s assumption of the functions of such agency, and to ensure the proper servicing of loans guaranteed by the guaranty agency prior to the Secretary’s assumption of the functions of such agency.’; and [<-Struck out]

        [Struck out->] (E) in subparagraph (K), by striking ‘and the progress of the transition from the loan programs under this part to the direct student loan programs under part D of this title’. [<-Struck out]

    [Struck out->] (d) PAYMENT FOR LENDER REFERRAL SERVICES- Subsection (e) of section 428 (20 U.S.C. 1078) is repealed. [<-Struck out]

    [Struck out->] (e) PAYMENT OF CERTAIN COSTS- Subsection (f) of section 428 (20 U.S.C. 1078) is amended to read as follows: [<-Struck out]

    [Struck out->]

    ‘(f) PAYMENTS OF CERTAIN COSTS- [<-Struck out]

      [Struck out->]

      ‘(1) PAYMENT FOR CERTAIN ACTIVITIES- [<-Struck out]

        [Struck out->]

        ‘(A) IN GENERAL- The Secretary, for loans originated on or after October 1, 1998, and in accordance with the provisions of this paragraph, shall pay to each guaranty agency, a loan processing and issuance fee equal to 0.65 percent of the total principal amount of the loans on which insurance was issued under this part during such fiscal year by such agency. [<-Struck out]

        [Struck out->]

        ‘(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 subparagraph. Payments shall be made promptly and without administrative delay to any guaranty agency submitting an accurate and complete application therefore under this subparagraph.’. [<-Struck out]

    [Struck out->] (f) LENDERS-OF-LAST-RESORT- Paragraph (3) of section 428(j) (20 U.S.C. 1078(j)) is amended-- [<-Struck out]

      [Struck out->] (1) in the paragraph heading, by striking ‘DURING TRANSITION TO DIRECT LENDING’; and [<-Struck out]

      [Struck out->] (2) in subparagraph (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’; [<-Struck out]

    [Struck out->] (g) DEFAULT AVERSION ASSISTANCE- Subsection (l) of section 428 (20 U.S.C. 1078) is amended to read as follows: [<-Struck out]

    [Struck out->]

    ‘(l) DEFAULT AVERSION ASSISTANCE- [<-Struck out]

      [Struck out->]

      ‘(1) ASSISTANCE REQUIRED- Upon receipt of a proper request from the lender not earlier than the 60th nor later than the 90th 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. [<-Struck out]

      [Struck out->]

      ‘(2) DEFAULT PREVENTION FEE REQUIRED- [<-Struck out]

        [Struck out->]

        ‘(A) IN GENERAL- A guaranty agency, in accordance with the provisions of this paragraph, may transfer from the Federal Student Loan Reserve Fund to the Agency Operating Fund a default prevention fee. Such fee shall be paid for any loan on which a claim for default has not been presented that the guaranty agency successfully brings into current repayment status on or before the 210th day after the loan becomes 60 days delinquent. [<-Struck out]

        [Struck out->]

        ‘(B) AMOUNT- The default prevention fee shall be equal to 1 percent of the total unpaid principal and accrued interest on the loan calculated at the time the request is submitted by the lender. Such fee shall not be paid more than once on any loan for which the guaranty [<-Struck out]

[Struck out->] agency averts the default unless the borrower remained current in payments for at least 24 months prior to the subsequent delinquency. A guaranty agency may transfer such fees earned under this subsection not more frequently than monthly. [<-Struck out]

        [Struck out->]

        ‘(C) DEFINITION OF CURRENT REPAYMENT STATUS- For the purpose of this paragraph, the term ‘current repayment status’ means that the borrower is not delinquent, in any respect, in the payment of principal and interest on the loan at the time the guaranty agency qualifies for the default prevention fee.’. [<-Struck out]

    [Struck out->] (h) STATE SHARE OF DEFAULT COSTS- Subsection (n) of section 428 (20 U.S.C. 1078) is repealed. [<-Struck out]

[Struck out->] SEC. 426. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY AGENCIES. [<-Struck out]

    [Struck out->] 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: [<-Struck out]

[Struck out->]
‘SEC. 428A. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY AGENCIES. [<-Struck out]

    [Struck out->]

    ‘(a) VOLUNTARY AGREEMENTS- [<-Struck out]

      [Struck out->]

      ‘(1) AUTHORITY- The Secretary may enter into a voluntary, flexible agreement, subject to paragraph (2), with guaranty agencies 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 any statutory requirement pertaining to the terms and conditions attached to student loans, default claim payments made to lenders, or the prohibitions on inducements contained in section 428(b)(3). [<-Struck out]

      [Struck out->]

      ‘(2) 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) 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 similar agreement with the Secretary. [<-Struck out]

      [Struck out->]

      ‘(3) 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-- [<-Struck out]

        [Struck out->]

        ‘(A) a description of each voluntary flexible agreement and the performance goals established by the Secretary for each agreement; [<-Struck out]

        [Struck out->]

        ‘(B) a list of participating guaranty agencies and the specific statutory or regulatory waivers provided to each guaranty agency; [<-Struck out]

        [Struck out->]

        ‘(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 [<-Struck out]

        [Struck out->]

        ‘(D) an analysis of the fees paid by the Secretary, and the costs and efficiencies achieved under each voluntary agreement. [<-Struck out]

    [Struck out->]

    ‘(b) TERMS OF AGREEMENT- An agreement between the Secretary and a guaranty agency under this section-- [<-Struck out]

      [Struck out->]

      ‘(1) shall be developed by the Secretary, in consultation with the guaranty agency, on a case-by case basis; [<-Struck out]

      [Struck out->]

      ‘(2) may be secured by the parties; [<-Struck out]

      [Struck out->]

      ‘(3) may include provisions-- [<-Struck out]

        [Struck out->]

        ‘(A) specifying the responsibilities of the guaranty agency under the agreement, such as-- [<-Struck out]

          [Struck out->]

          ‘(i) administering the issuance of insurance on loans made under this part on behalf of the Secretary; [<-Struck out]

          [Struck out->]

          ‘(ii) monitoring insurance commitments made under this part; [<-Struck out]

          [Struck out->]

          ‘(iii) default aversion activities; [<-Struck out]

          [Struck out->]

          ‘(iv) review of default claims made by lenders; [<-Struck out]

          [Struck out->]

          ‘(v) payment of default claims; [<-Struck out]

          [Struck out->]

          ‘(vi) collection of defaulted loans; [<-Struck out]

          [Struck out->]

          ‘(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; [<-Struck out]

          [Struck out->]

          ‘(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; [<-Struck out]

          [Struck out->]

          ‘(ix) monitoring of institutions and lenders participating in the program under this part; [<-Struck out]

          [Struck out->]

          ‘(x) the performance of other program functions by the guaranty agency or the agency’s affiliates; and [<-Struck out]

          [Struck out->]

          ‘(xi) informational outreach to schools and students in support of access to higher education; [<-Struck out]

        [Struck out->]

        ‘(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 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; [<-Struck out]

        [Struck out->]

        ‘(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; [<-Struck out]

        [Struck out->]

        ‘(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 one or more performance standards; [<-Struck out]

        [Struck out->]

        ‘(E) regarding the circumstances in which a guaranty agency’s agreement under this section may be ended in advance of the agency’s expiration date; [<-Struck out]

        [Struck out->]

        ‘(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 [<-Struck out]

        [Struck out->]

        ‘(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; and [<-Struck out]

      [Struck out->]

      ‘(4) shall provide for uniform lender participation with the guaranty agency under the terms of the agreement. [<-Struck out]

    [Struck out->]

    ‘(c) 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.’. [<-Struck out]

[Struck out->] SEC. 427. FEDERAL PLUS LOANS. [<-Struck out]

    [Struck out->] Section 428B (20 U.S.C. 1078-2) is amended-- [<-Struck out]

      [Struck out->] (1) by amending subsection (a) to read as follows: [<-Struck out]

    [Struck out->]

    ‘(a) AUTHORITY TO BORROW- [<-Struck out]

      [Struck out->]

      ‘(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-- [<-Struck out]

        [Struck out->]

        ‘(A) the parents do not have an adverse credit history as determined pursuant to regulations promulgated by the Secretary; and [<-Struck out]

        [Struck out->]

        ‘(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. [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

      [Struck out->]

      ‘(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 [<-Struck out]

      [Struck out->] (2) by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(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-- [<-Struck out]

      [Struck out->]

      ‘(1) immigration status in the same manner as immigration status is verified for students under section 484(g); and [<-Struck out]

      [Struck out->]

      ‘(2) social security number in the same manner as social security numbers are verified for students under section 484(p).’. [<-Struck out]

[Struck out->] SEC. 428. FEDERAL CONSOLIDATION LOANS. [<-Struck out]

    [Struck out->] Section 428C(a)(3) (20 U.S.C. 1078-3(a)(3)) is amended-- [<-Struck out]

      [Struck out->] (1) by amending subparagraph (A) to read as follows: ‘(A) For the purpose of this section, the term ‘eligible borrower’ means a borrower who-- [<-Struck out]

        [Struck out->]

        ‘(i) is not subject to a judgment secured through litigation or an order for wage garnishment under section 488A; or [<-Struck out]

        [Struck out->]

        ‘(ii) at the time of application for a consolidation loan-- [<-Struck out]

          [Struck out->]

          ‘(I) is in repayment status; [<-Struck out]

          [Struck out->]

          ‘(II) is in a grace period preceding repayment; or [<-Struck out]

          [Struck out->]

          ‘(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.’; and [<-Struck out]

      [Struck out->] (2) in subparagraph (B)(i)-- [<-Struck out]

        [Struck out->] (A) in subclause (I), by striking ‘and’ after the semicolon; [<-Struck out]

        [Struck out->] (B) by redesignating subclause (II) as subclause (III); [<-Struck out]

        [Struck out->] (C) by inserting after subclause (I) the following: [<-Struck out]

        [Struck out->]

        ‘(II) with respect to eligible student loans received prior to the date of consolidation that the borrower may wish to include with eligible loans specified in subclause (I) in a later consolidation loan; and’; and [<-Struck out]

        [Struck out->] (D) in subclause (III) (as redesignated by subparagraph (B)-- [<-Struck out]

          [Struck out->] (i) by striking ‘that loans’ and inserting ‘with respect to loans’; and [<-Struck out]

          [Struck out->] (ii) by inserting ‘that’ before ‘may be added’. [<-Struck out]

[Struck out->] SEC. 429. REQUIREMENTS FOR DISBURSEMENTS OF STUDENT LOANS. [<-Struck out]

    [Struck out->] Section 428G (20 U.S.C. 1078G) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a)(1), by striking ‘The proceeds’ and inserting ‘Except for a loan made for the final period of enrollment, that is less than an academic year, in a student’s baccalaureate program of study, at an institution with a cohort default rate (as calculated under section 435(m)) that is 5 percent or less, the proceeds’; and [<-Struck out]

      [Struck out->] (2) in subsection (b)(1), by striking ‘The first’ and inserting ‘Except for a loan made to a student borrower entering an institution with a cohort default rate (as calculated under section 435(m)) of less than 5 percent, the first’. [<-Struck out]

[Struck out->] SEC. 430. DEFAULT REDUCTION PROGRAM. [<-Struck out]

    [Struck out->] 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’. [<-Struck out]

[Struck out->] SEC. 431. UNSUBSIDIZED LOANS. [<-Struck out]

    [Struck out->] Section 428H (20 U.S.C. 1078-8) is amended-- [<-Struck out]

      [Struck out->] (1) by amending subsection (b) to read as follows: [<-Struck out]

    [Struck out->]

    ‘(b) 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 Stafford loan if the eligible institution at which the student has been accepted for enrollment, or at which the student is in attendance, has-- [<-Struck out]

      [Struck out->]

      ‘(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 financial assistance, including a loan which qualifies for interest subsidy payments under section 428; and [<-Struck out]

      [Struck out->]

      ‘(2) provided the lender a statement-- [<-Struck out]

        [Struck out->]

        ‘(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 [<-Struck out]

        [Struck out->]

        ‘(B) setting forth a schedule for disbursement of the proceeds of the loan in installments, consistent with the requirements of section 428G.’; [<-Struck out]

      [Struck out->] (2) in subsection (d)-- [<-Struck out]

        [Struck out->] (A) in paragraph (2)-- [<-Struck out]

          [Struck out->] (i) in the matter preceding subparagraph (A)-- [<-Struck out]

            [Struck out->] (I) by inserting ‘, as defined in section 481(d)(2),’ after ‘academic year’; and [<-Struck out]

            [Struck out->] (II) by striking ‘or in any period of 7 consecutive months, whichever is longer,’; [<-Struck out]

          [Struck out->] (ii) in subparagraph (C), by inserting ‘and’ after the semicolon; and [<-Struck out]

          [Struck out->] (iii) by inserting before the matter following subparagraph (C) the following: [<-Struck out]

        [Struck out->]

        ‘(D) in the case of a student enrolled in coursework specified in sections 484(b)(3)(B) and 484(b)(4)(B)-- [<-Struck out]

          [Struck out->]

          ‘(i) $4,000 for coursework necessary for enrollment in an undergraduate degree or certificate program, and $5,000 for coursework necessary for enrollment in a graduate or professional program; and [<-Struck out]

          [Struck out->]

          ‘(ii) $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 [<-Struck out]

        [Struck out->] (B) in paragraph (3), by adding at the end the following: ‘The maximum aggregate amount shall not include interest capitalized from an in-school period.’; and [<-Struck out]

      [Struck out->] (3) in subsection (e)(6), by striking ‘10 year repayment period under section 428(b)(1)(D)’ and inserting ‘repayment period under section 428(b)(9)’. [<-Struck out]

[Struck out->] SEC. 432. LOAN FORGIVENESS FOR TEACHERS. [<-Struck out]

    [Struck out->] Section 428J (20 U.S.C. 1078-10) is amended to read as follows: [<-Struck out]

[Struck out->]
‘SEC. 428J. LOAN FORGIVENESS FOR TEACHERS. [<-Struck out]

    [Struck out->]

    ‘(a) STATEMENT OF PURPOSE- It is the purpose of this section to encourage individuals to enter and continue in the teaching profession. [<-Struck out]

    [Struck out->]

    ‘(b) PROGRAM AUTHORIZED- The Secretary is authorized to carry out a program, through the holder of the loan, of assuming the obligation to repay a loan made under section 428 that is eligible for interest subsidy, for any new borrower on or after the date of enactment of the Higher Education Amendments of 1998, who-- [<-Struck out]

      [Struck out->]

      ‘(1) has been employed as a full-time teacher for 3 consecutive complete school years-- [<-Struck out]

        [Struck out->]

        ‘(A) in a school that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such schools; [<-Struck out]

        [Struck out->]

        ‘(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 [<-Struck out]

        [Struck out->]

        ‘(C) if employed as an elementary school teacher, has demonstrated, in accordance with State teacher certification or licensing requirements and 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 [<-Struck out]

      [Struck out->]

      ‘(2) is not in default on a loan for which the borrower seeks forgiveness. [<-Struck out]

    [Struck out->]

    ‘(c) REGULATIONS- The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section. [<-Struck out]

    [Struck out->]

    ‘(d) LOAN REPAYMENT DURING CONTINUING TEACHING SERVICE- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- The Secretary shall assume the obligation to repay through reimbursement to the holder-- [<-Struck out]

        [Struck out->]

        ‘(A) 30 percent of the total outstanding amount and applicable interest of subsidized Federal Stafford loans owed by the student borrower after the completion of the fourth or fifth complete school year of service described in subsection (b); [<-Struck out]

        [Struck out->]

        ‘(B) 40 percent of such total amount after the completion of the sixth complete school year of such service; and [<-Struck out]

        [Struck out->]

        ‘(C) a total amount for any borrower that shall not exceed $10,000. [<-Struck out]

      [Struck out->]

      ‘(2) CONSTRUCTION- Nothing in this section shall be construed to authorize any refunding of any repayment of a loan. [<-Struck out]

    [Struck out->]

    ‘(e) 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. [<-Struck out]

    [Struck out->]

    ‘(f) CONTINUED ELIGIBILITY- Any teacher who performs service in a school that-- [<-Struck out]

      [Struck out->]

      ‘(1) meets the requirements of subsection (b)(1)(A) in any year during such service; and [<-Struck out]

      [Struck out->]

      ‘(2) 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).’. [<-Struck out]

[Struck out->] SEC. 433. COMMON FORMS AND FORMATS. [<-Struck out]

    [Struck out->] Section 432(m)(1) (20 U.S.C. 1082(m)(1)) is amended-- [<-Struck out]

      [Struck out->] (1) in subparagraph (A), by striking ‘a common application form and promissory note’ and inserting ‘common application forms and promissory notes, or multiyear promissory notes,’; [<-Struck out]

      [Struck out->] (2) by striking subparagraph (C); [<-Struck out]

      [Struck out->] (3) by redesignating subparagraph (D) as subparagraph (C); and [<-Struck out]

      [Struck out->] (4) in subparagraph (C) (as redesignated by paragraph (3))-- [<-Struck out]

        [Struck out->] (A) by inserting ‘, application and other’ after ‘electronic’; and [<-Struck out]

        [Struck out->] (B) by adding at the end the following: ‘Guaranty agencies, borrowers, and lenders may use electronically printed versions of common forms approved for use by the Secretary.’. [<-Struck out]

[Struck out->] SEC. 434. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS. [<-Struck out]

    [Struck out->] Section 433 (20 U.S.C. 1083) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a), by amending the matter preceding paragraph (1) to read as follows: [<-Struck out]

    [Struck out->]

    ‘(a) REQUIRED DISCLOSURE BEFORE DISBURSEMENT- Each eligible lender shall, 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), provide thorough and accurate loan information on such loan to the borrower. 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 a telephone number, and may provide an electronic address, to each borrower through which additional loan information can be obtained. The disclosure shall include--’; and [<-Struck out]

      [Struck out->] (2) in subsection (b), by amending the matter preceding paragraph (1) to read as follows: [<-Struck out]

    [Struck out->]

    ‘(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. Each eligible lender shall provide a telephone number, and may provide an electronic address, to each borrower 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--’. [<-Struck out]

[Struck out->] SEC. 435. DEFINITIONS. [<-Struck out]

    [Struck out->] (a) ELIGIBLE INSTITUTION- Section 435(a) (20 U.S.C. 1085(a)) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (2)-- [<-Struck out]

        [Struck out->] (A) by adding after the matter following subparagraph (A)(ii) the following: [<-Struck out]

      [Struck out->]

      ‘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. In order to continue to participate during an appeal under this paragraph, the institution shall provide a letter of credit in favor of the Secretary or other third-party financial guarantees satisfactory to the Secretary in an amount determined by the Secretary to be sufficient to satisfy the institution’s potential liability on such loans under the preceding sentence.’; and [<-Struck out]

        [Struck out->] (B) by amending subparagraph (C) to read as follows: [<-Struck out]

      [Struck out->]

      ‘(C)(i) This paragraph shall not apply to any institution described in clause (ii), and any such institution that exceeds the threshold percentage in subparagraph (A)(ii) for 2 consecutive years shall submit to the Secretary a default management plan satisfactory to the Secretary and containing criteria designed, in accordance with the regulations of the Secretary, to demonstrate continuous improvement by the institution in the institution’s cohort default rate. If the institution fails to submit the required plan, or to satisfy the criteria in the plan, the institution shall be subject to a loss of eligibility in accordance with this paragraph, except as the Secretary may otherwise specify in regulations. [<-Struck out]

      [Struck out->]

      ‘(ii) An institution referred to in clause (i) is-- [<-Struck out]

        [Struck out->]

        ‘(I) a part B institution within the meaning of section 322(2); [<-Struck out]

        [Struck out->]

        ‘(II) a tribally controlled community college within the meaning of section 2(a)(4) of the Tribally Controlled Community College Assistance Act of 1978; or [<-Struck out]

        [Struck out->]

        ‘(III) a Navajo Community College under the Navajo Community College Act.’; [<-Struck out]

      [Struck out->] (2) in the matter following subparagraph (C)-- [<-Struck out]

        [Struck out->] (A) by inserting ‘for a reasonable period of time, not to exceed 30 days,’ after ‘access’; and [<-Struck out]

        [Struck out->] (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’; and [<-Struck out]

      [Struck out->] (3) by adding at the end the following: [<-Struck out]

      [Struck out->]

      ‘(4) PARTICIPATION RATE INDEX- [<-Struck out]

        [Struck out->]

        ‘(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 applicable participation rate indices 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 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. [<-Struck out]

        [Struck out->]

        ‘(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. [<-Struck out]

        [Struck out->]

        ‘(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).’. [<-Struck out]

    [Struck out->] (b) COHORT DEFAULT RATE- Section 435(m)(1)(B) (20 U.S.C. 1085(m)(1)(B)) is amended 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,’. [<-Struck out]

[Struck out->] SEC. 436. DELEGATION OF FUNCTIONS. [<-Struck out]

    [Struck out->] Section 436 (20 U.S.C. 1086) is amended to read as follows: [<-Struck out]

[Struck out->]
‘SEC. 436. DELEGATION OF FUNCTIONS. [<-Struck out]

    [Struck out->]

    ‘(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-- [<-Struck out]

      [Struck out->]

      ‘(1) shall not be relieved of the lender’s or agency’s duty to comply with the requirements of this title; and [<-Struck out]

      [Struck out->]

      ‘(2) shall monitor the activities of such other entity for compliance with such requirements. [<-Struck out]

    [Struck out->]

    ‘(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.’. [<-Struck out]

[Struck out->] SEC. 437. SPECIAL ALLOWANCES. [<-Struck out]

    [Struck out->] (a) AMENDMENTS- Section 438 (20 U.S.C. 1087-1) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (c), by amending paragraph (1) to read as follows: [<-Struck out]

      [Struck out->]

      ‘(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-- [<-Struck out]

        [Struck out->]

        ‘(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 [<-Struck out]

        [Struck out->]

        ‘(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. [<-Struck out]

      [Struck out->]

      ‘(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.’; [<-Struck out]

      [Struck out->] (2) in subsection (d), by amending paragraph (1) to read as follows: [<-Struck out]

      [Struck out->]

      ‘(1) DEDUCTION FROM INTEREST AND SPECIAL ALLOWANCE SUBSIDIES- [<-Struck out]

        [Struck out->]

        ‘(A) IN GENERAL- Notwithstanding subsection (b), the Secretary shall collect a loan fee in an amount determined in accordance with paragraph (2)-- [<-Struck out]

          [Struck out->]

          ‘(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 [<-Struck out]

          [Struck out->]

          ‘(ii) directly from the holder of the loan, if the lender-- [<-Struck out]

            [Struck out->]

            ‘(I) fails or is not required to bill the Secretary for interest and special allowance payments; or [<-Struck out]

            [Struck out->]

            ‘(II) withdraws from the program with unpaid loan fees. [<-Struck out]

        [Struck out->]

        ‘(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.’; and [<-Struck out]

      [Struck out->] (3) in subsection (e)-- [<-Struck out]

        [Struck out->] (A) by striking paragraphs (1) and (2); and [<-Struck out]

        [Struck out->] (B) by redesignating paragraphs (3) and (4) as paragraphs (1) and (2), respectively. [<-Struck out]

    [Struck out->] (b) CONFORMING AMENDMENT- Section 432(f)(1)(D) is amended by striking ‘required to file a plan for doing business under section 438(d)’ and inserting ‘that meets the requirements of section 438(e)’. [<-Struck out]

[Struck out->] SEC. 438. STUDY OF MARKET-BASED MECHANISMS FOR DETERMINING STUDENT LOAN INTEREST RATES. [<-Struck out]

    [Struck out->] (a) STUDY REQUIRED- [<-Struck out]

      [Struck out->] (1) IN GENERAL- The Secretary of the Treasury shall conduct a study of the feasibility of employing market-based mechanisms, including some form of auction, for determining student loan interest rates under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.). The study shall include-- [<-Struck out]

        [Struck out->] (A) analysis of the potential impact of the mechanisms on the delivery of student financial aid; [<-Struck out]

        [Struck out->] (B) analysis of the implications of the mechanisms with respect to student and institutional access to student loan capital; [<-Struck out]

        [Struck out->] (C) analysis of the potential impact of the mechanisms on the costs of the programs under such title for students and the Federal Government; and [<-Struck out]

        [Struck out->] (D) a plan for structuring and implementing the mechanisms in such a manner that ensures the cost-effective availability of student loans for students and their families. [<-Struck out]

    [Struck out->] (b) CONSULTATION- In conducting the study described in paragraph (1), the Secretary shall consult with lenders, secondary markets, guaranty agencies, institutions of higher education, student loan borrowers, and other participants in the student loan programs under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.). [<-Struck out]

    [Struck out->] (c) REPORT TO CONGRESS- The Secretary of the Treasury 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). [<-Struck out]

[Struck out->] PART C--FEDERAL WORK-STUDY PROGRAMS [<-Struck out]

[Struck out->] SEC. 441. AUTHORIZATION OF APPROPRIATIONS; COMMUNITY SERVICES. [<-Struck out]

    [Struck out->] Section 441 (20 U.S.C. 2751) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (b), by striking ‘$800,000,000 for fiscal year 1993’ and inserting ‘$900,000,000 for fiscal year 1999’; and [<-Struck out]

      [Struck out->] (2) in subsection (c)-- [<-Struck out]

        [Struck out->] (A) in paragraph (1), by inserting ‘(including child care services provided on campus)’ after ‘child care’; and [<-Struck out]

        [Struck out->] (B) in paragraph (3), by inserting ‘, including students with disabilities who are enrolled at the institution’ before the semicolon. [<-Struck out]

[Struck out->] SEC. 442. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS. [<-Struck out]

    [Struck out->] Section 443(b) (20 U.S.C. 2753(b)) is amended-- [<-Struck out]

      [Struck out->] (1) by amending paragraph (3) to read as follows: [<-Struck out]

      [Struck out->]

      ‘(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 of this title 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 allocation shall be made available to such students;’; [<-Struck out]

      [Struck out->] (2) in paragraph (5)-- [<-Struck out]

        [Struck out->] (A) by striking ‘provide that’ and inserting ‘(A) provide that’; [<-Struck out]

        [Struck out->] (B) by striking ‘1993-1994’ and inserting ‘1999-2000’; [<-Struck out]

        [Struck out->] (C) by inserting ‘and’ after the semicolon; and [<-Struck out]

        [Struck out->] (D) by adding at the end the following: [<-Struck out]

      [Struck out->]

      ‘(B) provide that the Federal share of the compensation of students employed in community service shall not exceed 90 percent;’; and [<-Struck out]

      [Struck out->] (3) in paragraph (6), by striking ‘, and to make’ and all that follows through ‘such employment’. [<-Struck out]

[Struck out->] SEC. 443. WORK COLLEGES. [<-Struck out]

    [Struck out->] Section 448 (20 U.S.C. 2756b) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (b)(2)-- [<-Struck out]

        [Struck out->] (A) in subparagraph (C), by striking ‘and’ after the semicolon; [<-Struck out]

        [Struck out->] (B) in subparagraph (D)(ii), by striking the period and inserting a semicolon; and [<-Struck out]

        [Struck out->] (C) by adding at the end the following: [<-Struck out]

        [Struck out->]

        ‘(E) coordinate and carry out joint projects and activities to promote work service learning; and [<-Struck out]

        [Struck out->]

        ‘(F) carry out a comprehensive, longitudinal study of student academic progress and academic and career outcomes, relative to student self-sufficiency in financing their 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 [<-Struck out]

      [Struck out->] (2) in subsection (f), by striking ‘$5,000,000 for fiscal year 1993’ and inserting ‘$7,000,000 for fiscal year 1999’. [<-Struck out]

[Struck out->] PART D--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM [<-Struck out]

[Struck out->] SEC. 451. SELECTION OF INSTITUTIONS. [<-Struck out]

    [Struck out->] Section 453(c) (20 U.S.C. 1087c(c)) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (2)-- [<-Struck out]

        [Struck out->] (A) in the paragraph heading, by striking ‘TRANSITION’; [<-Struck out]

        [Struck out->] (B) by striking subparagraph (E); and [<-Struck out]

        [Struck out->] (C) by redesignating subparagraphs (F), (G), and (H) as subparagraphs (E), (F), and (G), respectively; and [<-Struck out]

      [Struck out->] (2) in paragraph (3)-- [<-Struck out]

        [Struck out->] (A) in the paragraph heading, by striking ‘AFTER TRANSITION’; and [<-Struck out]

        [Struck out->] (B) by striking ‘For academic year 1995-1996 and subsequent academic years, the’ and inserting ‘The’. [<-Struck out]

[Struck out->] SEC. 452. TERMS AND CONDITIONS. [<-Struck out]

    [Struck out->] (a) INTEREST RATES- Section 455(b) (20 U.S.C. 1087e(b)) is amended to read as follows: [<-Struck out]

    [Struck out->]

    ‘(b) INTEREST RATE- [<-Struck out]

      [Struck out->]

      ‘(1) RATES FOR FDSL AND FDUSL- For Federal Direct Stafford/Ford Loans and Federal Direct Unsubsidized Stafford/Ford Loans for which the first disbursement is made on or after July 1, 1998, 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-- [<-Struck out]

        [Struck out->]

        ‘(A) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus [<-Struck out]

        [Struck out->]

        ‘(B) 2.3 percent, [<-Struck out]

      [Struck out->] except that such rate shall not exceed 8.25 percent. [<-Struck out]

      [Struck out->]

      ‘(2) IN SCHOOL AND GRACE PERIOD RULES- With respect to any Federal Direct Stafford/Ford Loan or Federal Direct Unsubsidized Stafford/Ford Loan for which the first disbursement is made on or after July 1, 1995, the applicable rate of interest for interest which accrues-- [<-Struck out]

        [Struck out->]

        ‘(A) prior to the beginning of the repayment period of the loan; or [<-Struck out]

        [Struck out->]

        ‘(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 428(b)(1)(M) or 427(a)(2)(C), [<-Struck out]

      [Struck out->] shall be determined under paragraph (1) by substituting ‘1.7 percent’ for ‘2.3 percent’. [<-Struck out]

      [Struck out->]

      ‘(3) PLUS LOANS- With respect to Federal Direct PLUS Loan for which the first disbursement is made on or after July 1, 1998, the applicable rate of interest shall be determined under paragraph (1)-- [<-Struck out]

        [Struck out->]

        ‘(A) by substituting ‘3.1 percent’ for ‘2.3 percent’; and [<-Struck out]

        [Struck out->]

        ‘(B) by substituting ‘9.0 percent’ for ‘8.25 percent’. [<-Struck out]

      [Struck out->]

      ‘(4) PUBLICATION- The Secretary shall determine the applicable rates 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.’. [<-Struck out]

    [Struck out->] (b) EFFECTIVE DATE- The amendments made by this section 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 July 1, 1998. [<-Struck out]

[Struck out->] SEC. 453. CONTRACTS. [<-Struck out]

    [Struck out->] Section 456(b) (20 U.S.C. 1087f(b)) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (3), by inserting ‘and’ after the semicolon; [<-Struck out]

      [Struck out->] (2) by striking paragraph (4); and [<-Struck out]

      [Struck out->] (3) by redesignating paragraph (5) as paragraph (4). [<-Struck out]

[Struck out->] SEC. 454. FUNDS FOR ADMINISTRATIVE EXPENSES. [<-Struck out]

    [Struck out->] Section 458 (20 U.S.C. 1087h) is amended-- [<-Struck out]

      [Struck out->] (1) by amending subsection (a) to read as follows: [<-Struck out]

    [Struck out->]

    ‘(a) ADMINISTRATIVE EXPENSES- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- Each fiscal year there shall be available to the Secretary, from funds not otherwise appropriated, funds to be obligated for-- [<-Struck out]

        [Struck out->]

        ‘(A) administrative costs under this part and part B, including the costs of the direct student loan programs under this part; and [<-Struck out]

        [Struck out->]

        ‘(B) account maintenance fees payable to guaranty agencies under part B and calculated in accordance with paragraph (2), not to exceed (from such funds not otherwise appropriated) $626,000,000 in fiscal year 1999, $726,000,000 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. [<-Struck out]

      [Struck out->]

      ‘(2) ACCOUNT MAINTENANCE FEES- Account maintenance fees under subparagraph (B) shall be paid quarterly and deposited in the Agency Operating Fund established under section 422B. [<-Struck out]

      [Struck out->]

      ‘(3) CARRYOVER- The Secretary may carry over funds made available under this section to a subsequent fiscal year.’; and [<-Struck out]

      [Struck out->] (2) by amending subsection (b) to read as follows: [<-Struck out]

    [Struck out->]

    ‘(b) CALCULATION BASIS- Account maintenance fees payable to guaranty agencies under paragraph (1)(B) shall be calculated-- [<-Struck out]

      [Struck out->]

      ‘(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 [<-Struck out]

      [Struck out->]

      ‘(2) for fiscal year 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.’. [<-Struck out]

[Struck out->] SEC. 455. LOAN CANCELLATION FOR TEACHERS. [<-Struck out]

    [Struck out->] Part D of title IV (20 U.S.C. 1087a et seq.) is amended by adding at the end the following: [<-Struck out]

[Struck out->]
‘SEC. 459. LOAN CANCELLATION FOR TEACHERS. [<-Struck out]

    [Struck out->]

    ‘(a) STATEMENT OF PURPOSE- It is the purpose of this section to encourage individuals to enter and continue in the teaching profession. [<-Struck out]

    [Struck out->]

    ‘(b) PROGRAM AUTHORIZED- The Secretary is authorized to carry out a program of canceling the obligation to repay a Federal Direct Stafford/Ford Loan made under this part that is eligible for an interest subsidy, for any new borrower on or after the date of enactment of the Higher Education Amendments of 1998, who-- [<-Struck out]

      [Struck out->]

      ‘(1) has been employed as a full-time teacher for 3 consecutive complete school years-- [<-Struck out]

        [Struck out->]

        ‘(A) in a school that qualifies under section 465(a)(2)(A) for loan cancellation for Perkins loan recipients who teach in such schools; [<-Struck out]

        [Struck out->]

        ‘(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 non-profit private secondary school in which the borrower is employed; and [<-Struck out]

        [Struck out->]

        ‘(C) if employed as an elementary school teacher, has demonstrated, in accordance with State teacher certification or licensing requirements and 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 [<-Struck out]

      [Struck out->]

      ‘(2) is not in default on a loan for which the borrower seeks forgiveness. [<-Struck out]

    [Struck out->]

    ‘(c) REGULATIONS- The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section. [<-Struck out]

    [Struck out->]

    ‘(d) LOAN CANCELLATION DURING CONTINUING TEACHING SERVICE- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- The Secretary shall cancel the obligation to repay-- [<-Struck out]

        [Struck out->]

        ‘(A) 30 percent of the total outstanding amount and applicable interest of subsidized Federal Direct Stafford/Ford loans owed by the student borrower after the completion of the fourth or fifth complete school year of service described in subsection (b); [<-Struck out]

        [Struck out->]

        ‘(B) 40 percent of such total amount after the completion of the sixth complete school year of such service; and [<-Struck out]

        [Struck out->]

        ‘(C) a total amount for any borrower that shall not exceed $ 10,000. [<-Struck out]

      [Struck out->]

      ‘(2) CONSTRUCTION- Nothing in this section shall be construed to authorize any refunding of any canceled loan. [<-Struck out]

    [Struck out->]

    ‘(e) 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. [<-Struck out]

    [Struck out->]

    ‘(f) CONTINUED ELIGIBILITY- Any teacher who performs service in a school that-- [<-Struck out]

      [Struck out->]

      ‘(1) meets the requirements of subsection (b)(1)(A) in any year during such service; and [<-Struck out]

      [Struck out->]

      ‘(2) 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).’. [<-Struck out]

[Struck out->] PART E--FEDERAL PERKINS LOANS [<-Struck out]

[Struck out->] SEC. 461. AUTHORIZATION OF APPROPRIATIONS. [<-Struck out]

    [Struck out->] Subsection (b) of section 461 (20 U.S.C. 1087aa) is amended by striking ‘1993’ and inserting ‘1999’. [<-Struck out]

[Struck out->] SEC. 462. ALLOCATION OF FUNDS. [<-Struck out]

    [Struck out->] (a) AMENDMENTS- Section 462 (20 U.S.C. 1087bb) is amended-- [<-Struck out]

      [Struck out->] (1) in the matter preceding subparagraph (A) of subsection (d)(3), by striking ‘the Secretary, for’ and all that follows through ‘years,’; [<-Struck out]

      [Struck out->] (2) by amending subsection (f) to read as follows: [<-Struck out]

    [Struck out->]

    ‘(f) DEFAULT PENALTIES- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- For fiscal year 1998 and any succeeding fiscal year, any institution with a cohort default rate (as defined under subsection (h)) that equals or exceeds 25 percent shall have a default penalty of zero. [<-Struck out]

      [Struck out->]

      ‘(2) INELIGIBILITY- [<-Struck out]

        [Struck out->]

        ‘(A) IN GENERAL- For fiscal year 1998 and any succeeding fiscal year, any institution with a cohort default rate (as defined in subsection (h)) 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-- [<-Struck out]

          [Struck out->]

          ‘(i) the institution demonstrates to the satisfaction of the Secretary that the Secretary’s 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 [<-Struck out]

          [Struck out->]

          ‘(ii) there are, in the judgment of the Secretary, exceptional mitigating circumstances such as a small number of borrowers entering repayment, that would make the application of this subparagraph inequitable. [<-Struck out]

        [Struck out->]

        ‘(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. [<-Struck out]

        [Struck out->]

        ‘(C) 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.’; [<-Struck out]

      [Struck out->] (3) by amending paragraph (1) of subsection (g) to read as follows: ‘(1) For award year 1998 and subsequent years, the maximum cohort default rate is 25 percent.’; and [<-Struck out]

      [Struck out->] (4) in subsection (h)-- [<-Struck out]

        [Struck out->] (A) in the subsection heading, by striking ‘DEFINITIONS OF DEFAULT RATE AND’ and inserting ‘DEFINITION OF’; [<-Struck out]

        [Struck out->] (B) by striking paragraphs (1) and (2); [<-Struck out]

        [Struck out->] (C) by redesignating paragraphs (3) and (4) as paragraphs (1) and (2), respectively; [<-Struck out]

        [Struck out->] (D) in paragraph (1) (as redesignated by subparagraph (C)-- [<-Struck out]

          [Struck out->] (i) by striking subparagraph (B); and [<-Struck out]

          [Struck out->] (ii) by redesignating subparagraphs (C) through (G) as subparagraphs (B) through (F), respectively; and [<-Struck out]

        [Struck out->] (E) in the matter preceding subparagraph (A) of paragraph (2) (as redesignated by subparagraph (C)), by striking ‘A loan’ and inserting ‘For purposes of calculating the cohort default rate under this subsection, a loan’. [<-Struck out]

    [Struck out->] (b) CONFORMING AMENDMENTS- Section 462 (20 U.S.C. 1087bb) is amended-- [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (2) in the matter following paragraphs (2)(B) and (3)(C) of subsection (c), by inserting ‘cohort’ before ‘default’ each place the term appears; [<-Struck out]

      [Struck out->] (3) in subsection (e)(2), by inserting ‘cohort’ before ‘default’; and [<-Struck out]

      [Struck out->] (4) in subsection (h)(1)(F) (as redesignated by subparagraphs (C) and (D)(ii) of subsection (a)(4)), by inserting ‘cohort’ before ‘default’. [<-Struck out]

[Struck out->] SEC. 463. AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION. [<-Struck out]

    [Struck out->] Section 463 (20 U.S.C. 1087cc) is amended-- [<-Struck out]

      [Struck out->] (1) by amending subparagraph (B) of subsection (a)(2) to read as follows: [<-Struck out]

        [Struck out->]

        ‘(B) a capital contribution by an institution in an amount equal to one-third of the Federal capital contributions described in subparagraph (A);’; [<-Struck out]

      [Struck out->] (2) in subsection (c)-- [<-Struck out]

        [Struck out->] (A) in paragraph (2)-- [<-Struck out]

          [Struck out->] (i) 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--’; [<-Struck out]

          [Struck out->] (ii) by amending subparagraph (A) to read as follows: [<-Struck out]

        [Struck out->]

        ‘(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;’; [<-Struck out]

          [Struck out->] (iii) in subparagraph (B)-- [<-Struck out]

            [Struck out->] (I) by inserting ‘the repayment and’ after ‘concerning’; and [<-Struck out]

            [Struck out->] (II) by striking ‘any defaulted’ and inserting ‘such’; and [<-Struck out]

          [Struck out->] (iv) in subparagraph (C), by inserting ‘, or upon cancellation or discharge of the borrower’s obligation on the loan for any reason’ before the period; [<-Struck out]

        [Struck out->] (B) in paragraph (3)-- [<-Struck out]

          [Struck out->] (i) in the matter preceding subparagraph (A), by striking ‘until--’ and inserting ‘until the loan is paid in full.’; and [<-Struck out]

          [Struck out->] (ii) by striking subparagraphs (A) and (B); and [<-Struck out]

        [Struck out->] (C) by amending paragraph (4) to read as follows: [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

      [Struck out->]

      ‘(B) The Secretary may promulgate regulations establishing criteria under which an institution of higher education may cease reporting the information described in paragraph (2) before a loan is paid in full.’. [<-Struck out]

[Struck out->] SEC. 464. TERMS OF LOANS. [<-Struck out]

    [Struck out->] Section 464 (20 U.S.C. 1087dd) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a), by amending paragraph (2) to read as follows: [<-Struck out]

      [Struck out->]

      ‘(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-- [<-Struck out]

        [Struck out->]

        ‘(i) $4,000, in the case of a student who has not successfully completed a program of undergraduate education; or [<-Struck out]

        [Struck out->]

        ‘(ii) $6,000, in the case of a graduate or professional student (as defined in regulations issued by the Secretary). [<-Struck out]

      [Struck out->]

      ‘(B) Except as provided in paragraph (4), the aggregate of the loans for all years made to a student by institutions of higher education from loan funds established pursuant to agreements under this part may not exceed-- [<-Struck out]

        [Struck out->]

        ‘(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); [<-Struck out]

        [Struck out->]

        ‘(ii) $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 [<-Struck out]

        [Struck out->]

        ‘(iii) $8,000, in the case of any other student. [<-Struck out]

      [Struck out->]

      ‘(C)(i) The total of loans made to a student described in clause (ii) in any academic year or its equivalent by an institution of higher education from loan funds established pursuant to agreements under this part may not exceed-- [<-Struck out]

        [Struck out->]

        ‘(I) $8,000 for each of the third and fourth years of the program of instruction leading to a bachelor’s degree; or [<-Struck out]

        [Struck out->]

        ‘(II) $10,000 for the first year of graduate study (as defined in regulations issued by the Secretary). [<-Struck out]

      [Struck out->]

      ‘(ii) A student referred to in clause (i) is any student-- [<-Struck out]

        [Struck out->]

        ‘(I) who is a junior in a program of instruction leading to a bachelor’s degree; [<-Struck out]

        [Struck out->]

        ‘(II) who states in writing that the student will pursue a course of study to become an elementary or secondary school teacher; and [<-Struck out]

        [Struck out->]

        ‘(III) who states in writing that the student intends to become a full-time teacher in a school which meets the requirements of section 465(a)(2)(A). [<-Struck out]

      [Struck out->]

      ‘(iii) Each institution shall provide a report to the Secretary annually containing the number of loans under this subparagraph that are made, the amount of each loan, and whether students benefiting from the higher loan limits met the requirements for receiving those loans. [<-Struck out]

      [Struck out->]

      ‘(iv) If 3 years after the date of enactment of the Higher Education Amendments of 1998, the Secretary determines that an institution has engaged in a pattern of abuse of this subparagraph, the Secretary may reduce or terminate the institution’s Federal capital contribution.’; [<-Struck out]

      [Struck out->] (2) in subsection (b), by amending paragraph (2) to read as follows: [<-Struck out]

      [Struck out->]

      ‘(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, a reasonable portion of the loans made from the institution’s student loan fund containing the contribution shall be made available to such students.’; [<-Struck out]

      [Struck out->] (3) in subsection (c)(1)-- [<-Struck out]

        [Struck out->] (A) in subparagraph (D), by striking ‘(i) 3 percent’ and all that follows through ‘or (iii)’; [<-Struck out]

        [Struck out->] (B) by redesignating subparagraphs (H) and (I) as subparagraphs (I) and (J), respectively; and [<-Struck out]

        [Struck out->] (C) by inserting after subparagraph (G) the following: [<-Struck out]

        [Struck out->]

        ‘(H) shall provide that, in the case of a loan made on or after July 1, 1999, the loan shall be considered in default (except as otherwise provided in section 462(h)) if the borrower of a loan made under this part fails to make an installment payment when due, or to meet any other term of the promissory note or written repayment agreement, and such failure persists for-- [<-Struck out]

          [Struck out->]

          ‘(i) 180 days in the case of a loan that is repayable in monthly installments; or [<-Struck out]

          [Struck out->]

          ‘(ii) 240 days in the case of a loan that is repayable in less frequent installments;’; and [<-Struck out]

      [Struck out->] (4) by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(g) DISCHARGE- [<-Struck out]

      [Struck out->]

      ‘(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) by repaying the amount owed on the loan 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). [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

      [Struck out->]

      ‘(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 would be otherwise eligible (but for the default on the discharged loan). The amount discharged under this subsection shall not be considered income for purposes of the Internal Revenue Code of 1986. [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

    [Struck out->]

    ‘(h) REHABILITATION OF LOANS- [<-Struck out]

      [Struck out->]

      ‘(1) REHABILITATION- [<-Struck out]

        [Struck out->]

        ‘(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, 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 instruct any credit bureau organization or credit reporting agency to which the default was reported to remove the default from the borrower’s credit history. [<-Struck out]

        [Struck out->]

        ‘(B) COMPARABLE CONDITIONS- As long as the borrower continues to make scheduled [<-Struck out]

[Struck out->] 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. [<-Struck out]

        [Struck out->]

        ‘(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. [<-Struck out]

        [Struck out->]

        ‘(D) LIMITATIONS- A borrower only once may obtain the benefit of this paragraph with respect to rehabilitating a loan under this part. [<-Struck out]

      [Struck out->]

      ‘(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. A borrower only once may obtain the benefit of this paragraph with respect to restored eligibility. [<-Struck out]

    [Struck out->]

    ‘(i) INCENTIVE REPAYMENT PROGRAM- [<-Struck out]

      [Struck out->]

      ‘(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-- [<-Struck out]

        [Struck out->]

        ‘(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; [<-Struck out]

        [Struck out->]

        ‘(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 of the unpaid principal balance due on the loan at the time the early repayment is made; and [<-Struck out]

        [Struck out->]

        ‘(C) include such other incentive repayment options as the institution determines will carry out the objectives of this subsection. [<-Struck out]

      [Struck out->]

      ‘(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, nor can an incentive repayment option be paid for with institutional funds from the student loan fund.’. [<-Struck out]

[Struck out->] SEC. 465. DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS. [<-Struck out]

    [Struck out->] Section 466 (20 U.S.C. 1087ff) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a)-- [<-Struck out]

        [Struck out->] (A) in the matter preceding paragraph (1)-- [<-Struck out]

          [Struck out->] (i) by striking ‘1996’ and inserting ‘2003’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘1997’ and inserting ‘2004’; and [<-Struck out]

        [Struck out->] (B) in paragraph (1), by striking ‘1996’ and inserting ‘2003’; [<-Struck out]

      [Struck out->] (2) in subsection (b)-- [<-Struck out]

        [Struck out->] (A) by striking ‘2005’ and inserting ‘2012’; and [<-Struck out]

        [Struck out->] (B) by striking ‘1996’ and inserting ‘2003’; and [<-Struck out]

      [Struck out->] (3) in subsection (c), by striking ‘1997’ and inserting ‘2004’. [<-Struck out]

[Struck out->] SEC. 466. PERKINS REVOLVING FUND. [<-Struck out]

    [Struck out->] (a) REPEAL- Section 467 (20 U.S.C. 1087gg) is repealed. [<-Struck out]

    [Struck out->] (b) TRANSFER OF BALANCE- Any funds in the Perkins Revolving Loan Fund on the date of enactment of this Act shall be transferred to and deposited in the Treasury. [<-Struck out]

[Struck out->] PART F--NEED ANALYSIS [<-Struck out]

[Struck out->] SEC. 471. COST OF ATTENDANCE. [<-Struck out]

    [Struck out->] Section 472 (20 U.S.C. 1087ll) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (3)-- [<-Struck out]

        [Struck out->] (A) in subparagraph (A), by striking ‘of not less than $1,500’ and inserting ‘determined by the institution’; and [<-Struck out]

        [Struck out->] (B) in subparagraph (C), by striking ‘, except that the amount may not be less than $2,500’; and [<-Struck out]

      [Struck out->] (2) in paragraph (11), by striking ‘placed’ and inserting ‘engaged’. [<-Struck out]

[Struck out->] SEC. 472. FAMILY CONTRIBUTION FOR DEPENDENT STUDENTS. [<-Struck out]

    [Struck out->] Section 475 (20 U.S.C. 1087oo) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (g)-- [<-Struck out]

        [Struck out->] (A) in paragraph (2)-- [<-Struck out]

          [Struck out->] (i) in subparagraph (D)-- [<-Struck out]

            [Struck out->] (I) by striking ‘$1,750’ and inserting ‘$2,200’; and [<-Struck out]

            [Struck out->] (II) by striking ‘and’ after the semicolon; [<-Struck out]

          [Struck out->] (ii) in subparagraph (E), by striking the period and inserting ‘; and’; and [<-Struck out]

          [Struck out->] (iii) by adding at the end the following: [<-Struck out]

        [Struck out->]

        ‘(F) an allowance for parents’ negative available income, determined in accordance with paragraph (6).’; and [<-Struck out]

        [Struck out->] (B) by adding at the end the following: [<-Struck out]

      [Struck out->]

      ‘(6) ALLOWANCE FOR PARENTS’ NEGATIVE AVAILABLE INCOME- The allowance for parents’ negative available income is the negative amount, if any, remaining after all allowances have been subtracted from parents’ total income under subsection (c)(1).’; and [<-Struck out]

      [Struck out->] (2) by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(j) ADJUSTMENTS TO STUDENTS 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 determined under such subsection by 9, and multiplying the result by the number of months in the period of enrollment.’. [<-Struck out]

[Struck out->] SEC. 473. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITHOUT DEPENDENTS OTHER THAN A SPOUSE. [<-Struck out]

    [Struck out->] Section 476(b)(1)(A)(iv) (20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended-- [<-Struck out]

      [Struck out->] (1) in subclause (I), by striking ‘$3,000’ and inserting ‘$4,250’; [<-Struck out]

      [Struck out->] (2) in subclause (II), by striking ‘$3,000’ and inserting ‘$4,250’; and [<-Struck out]

      [Struck out->] (3) in subclause (III), by striking ‘$6,000’ and inserting ‘$7,250’. [<-Struck out]

[Struck out->] SEC. 474. REGULATIONS; UPDATED TABLES AND AMOUNTS. [<-Struck out]

    [Struck out->] Section 478(b) (20 U.S.C. 1087rr(b)) is amended-- [<-Struck out]

      [Struck out->] (1) by striking ‘For each academic year’ and inserting the following: [<-Struck out]

      [Struck out->]

      ‘(1) REVISED TABLES- For each academic year’; and [<-Struck out]

      [Struck out->] (2) by adding at the end the following new paragraph: [<-Struck out]

      [Struck out->]

      ‘(2) REVISED AMOUNTS- For each academic year after academic year 1997-1998, 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 1996 and the December next preceding the beginning of such academic year, and rounding the result to the nearest $10.’. [<-Struck out]

[Struck out->] SEC. 475. REFUSAL OR ADJUSTMENT OF LOAN CERTIFICATIONS. [<-Struck out]

    [Struck out->] Subsection (c) of section 479A (20 U.S.C. 1087tt) is amended to read as follows: [<-Struck out]

    [Struck out->]

    ‘(c) REFUSAL OR ADJUSTMENT OF LOAN CERTIFICATIONS- An eligible institution may refuse to certify a statement that permits a student to receive a loan under part B, or refuse to make a loan under part 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 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.’. [<-Struck out]

[Struck out->] PART G--GENERAL PROVISIONS [<-Struck out]

[Struck out->] SEC. 481. MASTER CALENDAR. [<-Struck out]

    [Struck out->] Section 482 (20 U.S.C. 1089) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a), by adding at the end the following: [<-Struck out]

      [Struck out->]

      ‘(3) To the extent feasible, the Secretary shall notify eligible institutions and vendors by December 1 prior to the start of an award year of minimal hardware and software requirements necessary to administer programs under this title.’; and [<-Struck out]

      [Struck out->] (2) by amending subsection (c) to read as follows: [<-Struck out]

    [Struck out->]

    ‘(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. [<-Struck out]

    [Struck out->]

    ‘(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 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 Secretary shall publish any designation under this subparagraph in the Federal Register. [<-Struck out]

    [Struck out->]

    ‘(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.’. [<-Struck out]

[Struck out->] SEC. 482. FORMS AND REGULATIONS. [<-Struck out]

    [Struck out->] Section 483 (20 U.S.C. 1090) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a)-- [<-Struck out]

        [Struck out->] (A) in the subsection heading, by striking ‘FORM’ and inserting ‘FORM DEVELOPMENT’; [<-Struck out]

        [Struck out->] (B) by amending paragraph (1) to read as follows: [<-Struck out]

      [Struck out->]

      ‘(1) SINGLE FORM REQUIREMENTS- The Secretary, in cooperation with representatives of agencies and organizations involved in student financial assistance, shall produce, distribute, and process free of charge a common financial reporting form (which shall include electronic versions of the form) to be used-- [<-Struck out]

        [Struck out->]

        ‘(A) to determine the need (including the expected family contribution and, if appropriate, cost of attendance) and eligibility of a [<-Struck out]

[Struck out->] student for financial assistance under parts A, C, D, and E; and [<-Struck out]

        [Struck out->]

        ‘(B) to determine the need (including the expected family contribution and cost of attendance) of a student for the purposes of part B. [<-Struck out]

      [Struck out->]

      ‘(2) STATE DATA ITEMS- The Secretary shall include on the form developed under this subsection such data items, selected in consultation with the States to assist the States in awarding State student financial assistance, as the Secretary determines are appropriate for inclusion. [<-Struck out]

      [Struck out->]

      ‘(3) PARENT’S SOCIAL SECURITY NUMBER- The Secretary shall include on the form developed under this paragraph space for the social security number of parents of dependent students seeking financial assistance under this title. [<-Struck out]

      [Struck out->]

      ‘(4) USE- The Secretary shall require that the form developed under this paragraph be used for the purpose of collecting eligibility and other data for purposes of part B, including the applicant’s choice of lender.’; and [<-Struck out]

        [Struck out->] (C) in paragraph (3)-- [<-Struck out]

          [Struck out->] (i) by striking ‘Institutions of higher education and States shall receive’ and inserting ‘The Secretary shall provide’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘by the Secretary’; and [<-Struck out]

      [Struck out->] (2) by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(g) PAYMENT FOR DATA- The Secretary may pay such charges as the Secretary determines are necessary to obtain data that the Secretary considers essential to the efficient administration of the programs under this title. [<-Struck out]

    [Struck out->]

    ‘(h) MULTIYEAR PROMISSORY NOTE- The Secretary shall require, for loans made under this title for periods of enrollment beginning on or after July 1, 2000, the use of a promissory note applicable to more than 1 academic year, or more than 1 type of loan made under this title. Prior to implementing this subsection, the Secretary shall develop and test such a promissory note on a limited or pilot basis.’. [<-Struck out]

[Struck out->] SEC. 483. STUDENT ELIGIBILITY. [<-Struck out]

    [Struck out->] Section 484 (20 U.S.C. 1091) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (d)-- [<-Struck out]

        [Struck out->] (A) in the matter preceding paragraph (1), by striking ‘either’; and [<-Struck out]

        [Struck out->] (B) by adding at the end the following: [<-Struck out]

      [Struck out->]

      ‘(3) The student has completed a high school education in a home school setting and has met any State requirements with respect to such education in a home school setting.’; and [<-Struck out]

      [Struck out->] (2) by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(q) VERIFICATION OF IRS RETURN INFORMATION- The Secretary shall verify the information reported by all applicants for assistance on the form prescribed under section 483 with the return information (as defined in section 6103 of the Internal Revenue Code of 1986) available to the Secretary of the Treasury. Notwithstanding section 6103 of such Code the Secretary of the Treasury shall provide the return information to the Secretary. In the case of a dependent student the return information shall include the return information of the parent of the student. The form prescribed by the Secretary under section 483 shall contain a prominent notice of the verification of the information and a warning to all the applicants of the penalties for misrepresentation, with respect to the information, under the United States Code. [<-Struck out]

[Struck out->] SEC. 484. INSTITUTIONAL REFUNDS. [<-Struck out]

    [Struck out->] Section 484B (20 U.S.C. 1091b) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (b)-- [<-Struck out]

        [Struck out->] (A) in paragraph (1), by inserting ‘or’ after the semicolon; [<-Struck out]

        [Struck out->] (B) by striking paragraph (2); and [<-Struck out]

        [Struck out->] (C) by redesignating paragraph (3) as paragraph (2); and [<-Struck out]

      [Struck out->] (2) in subsection (c)-- [<-Struck out]

        [Struck out->] (A) in paragraph (1), by striking ‘last day of attendance by the student’ and inserting ‘day the student withdrew’; [<-Struck out]

        [Struck out->] (B) in subparagraph (A) of paragraph (2), by striking ‘last recorded day of attendance by the student’ and inserting ‘day the student withdrew’; and [<-Struck out]

        [Struck out->] (C) by adding at the end the following: [<-Struck out]

      [Struck out->]

      ‘(3) For the purpose of this section, the term ‘day a student withdrew’-- [<-Struck out]

        [Struck out->]

        ‘(A) is the date that was the last recorded day of attendance by the student; or [<-Struck out]

        [Struck out->]

        ‘(B) in instances where attendance is not recorded, is the date on which-- [<-Struck out]

          [Struck out->]

          ‘(i) the student began the withdrawal process prescribed by the institution; or [<-Struck out]

          [Struck out->]

          ‘(ii) the student otherwise provided notification to the institution of the intent to withdraw.’. [<-Struck out]

[Struck out->] SEC. 485. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR STUDENTS. [<-Struck out]

    [Struck out->] (a) INFORMATION DISSEMINATION ACTIVITIES- Section 485(a) (20 U.S.C. 1092(a)) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (1)-- [<-Struck out]

        [Struck out->] (A) in the second sentence, by striking ‘and mailings, to all current’ and inserting ‘, mailings, and electronic media, to all enrolled’; and [<-Struck out]

        [Struck out->] (B) by inserting after the second sentence the following: ‘Each eligible institution annually shall provide to all students enrolled at the institution, a list of the information that is required by this section, together with a statement of the procedures required to obtain the information.’; [<-Struck out]

      [Struck out->] (2) in paragraph (2), by inserting ‘an application for’ after ‘concerning’; and [<-Struck out]

      [Struck out->] (3) in paragraph (3)-- [<-Struck out]

        [Struck out->] (A) in the matter preceding subparagraph (A)-- [<-Struck out]

          [Struck out->] (i) by inserting ‘(graduation rates)’ after ‘this subsection’; and [<-Struck out]

          [Struck out->] (ii) by inserting ‘(student right-to-know)’ after ‘subsection (e)’; and [<-Struck out]

        [Struck out->] (B) by amending subparagraph (A) to read as follows: [<-Struck out]

        [Struck out->]

        ‘(A) shall be made available by July 1 each year to current and prospective students prior to enrolling or entering into any financial obligation; and’. [<-Struck out]

    [Struck out->] (b) EXIT COUNSELING FOR BORROWERS- Section 485(b) (20 U.S.C. 1092(b)) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (1)(A), by striking ‘(individually or in groups)’; and [<-Struck out]

      [Struck out->] (2) in paragraph (2), by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(C) Nothing in this subsection shall be construed to prohibit an institution of higher education from utilizing electronic means to provide personalized exit counseling.’. [<-Struck out]

    [Struck out->] (c) DISCLOSURES REQUIRED WITH RESPECT TO ATHLETICALLY RELATED STUDENT AID- Section 485(e) (20 U.S.C. 1092(e)) is amended-- [<-Struck out]

      [Struck out->] (1) by amending paragraph (2) to read as follows: [<-Struck out]

      [Struck out->]

      ‘(2) When an institution described in paragraph (1) offers a potential student athlete athletically related student aid, such institution shall provide to the student, the student’s parents, the student’s guidance counselor, and the student’s coach the information contained in the report submitted by such institution pursuant to paragraph (1). If the institution is a member of a national collegiate athletic association that compiles graduation rate data on behalf of its member institutions, that the Secretary determines is substantially comparable to the information described in the previous sentence, the distribution of the compilation to all secondary schools shall fulfill the responsibility of the institution to provide the information to a prospective student athlete’s guidance counselor and coach.’; and [<-Struck out]

      [Struck out->] (2) by amending paragraph (9) to read as follows: [<-Struck out]

      [Struck out->]

      ‘(9) 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.’. [<-Struck out]

    [Struck out->] (d) DISCLOSURE OF CAMPUS SECURITY POLICY AND CAMPUS CRIME STATISTICS- Section 485(f) (20 U.S.C. 1092(f)) is amended-- [<-Struck out]

      [Struck out->] (1) by amending subparagraph (F) of paragraph (1) to read as follows: [<-Struck out]

        [Struck out->]

        ‘(F) Statistics concerning the occurrence on campus, during the most recent calendar year, and during the 2 preceding calendar years for which data are available-- [<-Struck out]

          [Struck out->]

          ‘(i) of the following criminal offenses reported to campus security authorities or local police agencies-- [<-Struck out]

            [Struck out->]

            ‘(I) homicide, including murder or nonnegligent manslaughter or negligent manslaughter; [<-Struck out]

            [Struck out->]

            ‘(II) sex offenses, forcible or nonforcible; [<-Struck out]

            [Struck out->]

            ‘(III) robbery; [<-Struck out]

            [Struck out->]

            ‘(IV) aggravated assault; [<-Struck out]

            [Struck out->]

            ‘(V) burglary; [<-Struck out]

            [Struck out->]

            ‘(VI) motor vehicle theft; and [<-Struck out]

            [Struck out->]

            ‘(VII) arson; [<-Struck out]

          [Struck out->]

          ‘(ii) of the crimes described in subclauses (I) through (VII), and vandalism and simple assault, that manifest evidence of prejudice based on actual or perceived race, gender, religion, sexual orientation, ethnicity, or disability that are reported to campus security authorities or local police agencies, which data shall be collected and reported according to category of prejudice.’; [<-Struck out]

      [Struck out->] (2) by redesignating paragraphs (4) through (7) as paragraphs (5) through (8), respectively; [<-Struck out]

      [Struck out->] (3) by inserting after paragraph (3) the following: [<-Struck out]

      [Struck out->]

      ‘(4)(A) Each institution participating in any program under this title which maintains either 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-- [<-Struck out]

        [Struck out->]

        ‘(i) the nature, date, time, and general location of each crime; and [<-Struck out]

        [Struck out->]

        ‘(ii) the disposition of the complaint, if known. [<-Struck out]

      [Struck out->]

      ‘(B)(i) 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 2 business days of the initial report being made to the department or a campus security authority. [<-Struck out]

      [Struck out->]

      ‘(ii) 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 2 business days after the information becomes available to the police or security department. [<-Struck out]

      [Struck out->]

      ‘(iii) Where 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. [<-Struck out]

      [Struck out->]

      ‘(iv) Notwithstanding clause (iii), an institution of higher education shall record all criminal incidents occurring on campus and shall make the reports open to public inspection not later than 2 business days after the requirements of clause (iii) are met.’; [<-Struck out]

      [Struck out->] (4) in paragraph (7) (as redesignated by subparagraph (B)), by inserting at the end the following: ‘Such statistics shall not identify victims of crimes or persons accused of crimes, except as permitted by State or local law.’; and [<-Struck out]

      [Struck out->] (5) by adding at the end the following: [<-Struck out]

      [Struck out->]

      ‘(9) STUDY- [<-Struck out]

        [Struck out->]

        ‘(A) IN GENERAL- The Secretary, in consultation with the Attorney General, shall provide for a national study to examine procedures undertaken after an institution of higher education receives a report of sexual assault. [<-Struck out]

        [Struck out->]

        ‘(B) REPORT- The study required by subparagraph (A) shall include an analysis of-- [<-Struck out]

          [Struck out->]

          ‘(i) the existence and publication of the institution of higher education’s and State’s definition of sexual assault; [<-Struck out]

          [Struck out->]

          ‘(ii) the existence and publication of the institution’s policy for campus sexual assaults; [<-Struck out]

          [Struck out->]

          ‘(iii) the individuals to whom reports of sexual assault are given most often and-- [<-Struck out]

            [Struck out->]

            ‘(I) how the individuals are trained to respond to the reports; and [<-Struck out]

            [Struck out->]

            ‘(II) the extent to which the individuals are trained; [<-Struck out]

          [Struck out->]

          ‘(iv) the reporting options that are articulated to the victim or victims of the sexual assault regarding-- [<-Struck out]

            [Struck out->]

            ‘(I) on-campus reporting and procedure options; and [<-Struck out]

            [Struck out->]

            ‘(II) off-campus reporting and procedure options; [<-Struck out]

          [Struck out->]

          ‘(v) the resources available for victims’ safety, support, medical health, and confidentiality, including-- [<-Struck out]

            [Struck out->]

            ‘(I) how well the resources are articulated both specifically to the victim of sexual assault and generally to the campus at large; and [<-Struck out]

            [Struck out->]

            ‘(II) the security of the resources in terms of confidentiality or reputation; [<-Struck out]

          [Struck out->]

          ‘(vi) 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; [<-Struck out]

          [Struck out->]

          ‘(vii) policies and practices found successful in aiding the report and any ensuing investigation or prosecution of a campus sexual assault; [<-Struck out]

          [Struck out->]

          ‘(viii) the on-campus procedures for investigation and disciplining the perpetrator of a sexual assault, including-- [<-Struck out]

            [Struck out->]

            ‘(I) the format for collecting evidence; and [<-Struck out]

            [Struck out->]

            ‘(II) 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 [<-Struck out]

          [Struck out->]

          ‘(ix) types of punishment for offenders, including-- [<-Struck out]

            [Struck out->]

            ‘(I) whether the case is directed outside for further punishment; and [<-Struck out]

            [Struck out->]

            ‘(II) how the institution punishes perpetrators. [<-Struck out]

        [Struck out->]

        ‘(C) SUBMISSION OF REPORT- The report required by subparagraph (B) shall be submitted to Congress not later than September 1, 1999. [<-Struck out]

        [Struck out->]

        ‘(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. [<-Struck out]

        [Struck out->]

        ‘(E) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to carry out this section $1,000,000 for fiscal year 1999.’. [<-Struck out]

    [Struck out->] (e) DATA REQUIRED- Section 485(g) (20 U.S.C. 1092(g)) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (1), by adding at the end the following: [<-Struck out]

        [Struck out->]

        ‘(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. [<-Struck out]

        [Struck out->]

        ‘(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, except that revenues such as student activities fees or alumni contributions not so allocable shall be included in the calculation of total revenues only. [<-Struck out]

        [Struck out->]

        ‘(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. [<-Struck out]

        [Struck out->]

        ‘(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, except that expenses such as general and administrative overhead not so allocable shall be included in the calculation of total expenses only. [<-Struck out]

        [Struck out->]

        ‘(K) A statement of any reduction that will, or is likely to, occur during the ensuing 4 academic years in the number of athletes that will be permitted to participate in any collegiate sport, or in the financial resources that the institution will make available for any such sport, and the reasons for any such reduction, to the extent the reduction is known at the time of the preparation of the report.’; and [<-Struck out]

      [Struck out->] (2) by striking paragraph (5).’. [<-Struck out]

    [Struck out->] (f) GEPA AMENDMENT- Section 444(a)(4)(B) of the General Education Provisions Act (20 U.S.C. 1232g(a)(4)(B)) is amended-- [<-Struck out]

      [Struck out->] (1) by redesignating clauses (iii) and (iv) as clauses (iv) and (v), respectively; and [<-Struck out]

      [Struck out->] (2) by inserting after clause (ii) the following: [<-Struck out]

          [Struck out->]

          ‘(iii) records that are maintained by local police or campus security officers of an educational agency or institution about-- [<-Struck out]

            [Struck out->]

            ‘(I) individuals who have been found guilty of, or have pled guilty to, committing or participating in any criminal activity as defined in Federal, State, or local law that has occurred while the individual was a student in attendance, including audit or noncredit, at an educational institution; and [<-Struck out]

            [Struck out->]

            ‘(II) findings of guilt of criminal misconduct and related sanctions from any previously attended educational agencies or institutions where such records were created on or after September 1, 1999, and that are maintained by the institution currently or most recently attended by the individual;’. [<-Struck out]

[Struck out->] SEC. 486. NATIONAL STUDENT LOAN DATA BANK SYSTEM. [<-Struck out]

    [Struck out->] Section 485B (20 U.S.C. 1092b) is amended by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(h) STUDENT STATUS CONFIRMATION REPORT- In order to reduce unnecessary paperwork and to increase the efficient administration, the Secretary shall assure that borrowers under part E are included in the Student Status Confirmation Report in the same manner as borrowers under parts B and D.’. [<-Struck out]

[Struck out->] SEC. 487. TRAINING IN FINANCIAL AID SERVICES. [<-Struck out]

    [Struck out->] Section 486 (20 U.S.C. 1093) is amended to read as follows: [<-Struck out]

[Struck out->]
‘SEC. 486. INFORMATION ON THE COSTS OF HIGHER EDUCATION. [<-Struck out]

    [Struck out->]

    ‘(a) IN GENERAL- For the purpose of providing comparative information to families about the costs of higher education-- [<-Struck out]

      [Struck out->]

      ‘(1) the National Center for Education Statistics shall-- [<-Struck out]

        [Struck out->]

        ‘(A) develop a standard definition for the following data elements: [<-Struck out]

          [Struck out->]

          ‘(i) Tuition and fees. [<-Struck out]

          [Struck out->]

          ‘(ii) Total cost of attendance, including costs such as housing, books, supplies, and transportation. [<-Struck out]

          [Struck out->]

          ‘(iii) Average amount of financial assistance received by a student who attends an institution of higher education, in terms of the following: [<-Struck out]

            [Struck out->]

            ‘(I) Grants and loans. [<-Struck out]

            [Struck out->]

            ‘(II) Institutional and other assistance. [<-Struck out]

          [Struck out->]

          ‘(iv) Percentage of students receiving student financial assistance, in terms of the following: [<-Struck out]

            [Struck out->]

            ‘(I) Grants and loans. [<-Struck out]

            [Struck out->]

            ‘(II) Institutional and other assistance; [<-Struck out]

        [Struck out->]

        ‘(B) report the definitions to each institution of higher education and 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 90 days after the date of enactment of the Higher Education Amendments of 1998; [<-Struck out]

        [Struck out->]

        ‘(C) collect information regarding the data elements described in subparagraph (A) with respect to all institutions of higher education, and make available the information each year in a timely fashion through the integrated postsecondary education data system, beginning with the information from the 1999-2000 academic year; [<-Struck out]

        [Struck out->]

        ‘(D) provide the public notice when the information described in subparagraph (C) is available for public inspection; and [<-Struck out]

        [Struck out->]

        ‘(E) publish in a timely fashion a report after the third year of collection of the information described in subparagraph (C) that compares the information described in subparagraph (C) longitudinally by institution, which information shall be presented in a form that is easily understandable, including clear definitions of the data elements described in subparagraph (A), to allow parents and students to make informed decisions about attending college; and [<-Struck out]

      [Struck out->]

      ‘(2) institutions of higher education shall provide information regarding each data element described in paragraph (1)(A) to the National Center for Education Statistics by March 1 of each year, beginning in the year 2000. [<-Struck out]

    [Struck out->]

    ‘(b) STUDY- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- In consultation with the Bureau of Labor Statistics, the National Center for Education Statistics shall conduct a national study of expenditures at institutions of higher education. Such study shall include information about-- [<-Struck out]

        [Struck out->]

        ‘(A) expenditures for-- [<-Struck out]

          [Struck out->]

          ‘(i) faculty salaries and benefits; [<-Struck out]

          [Struck out->]

          ‘(ii) administrative salaries, benefits, and expenses; [<-Struck out]

          [Struck out->]

          ‘(iii) academic support services; [<-Struck out]

          [Struck out->]

          ‘(iv) research; [<-Struck out]

          [Struck out->]

          ‘(v) construction; and [<-Struck out]

          [Struck out->]

          ‘(vi) technology; [<-Struck out]

        [Struck out->]

        ‘(B) how such expenditures change over time; and [<-Struck out]

        [Struck out->]

        ‘(C) how such expenditures relate to college costs. [<-Struck out]

      [Struck out->]

      ‘(2) FINAL REPORT- The National Center for Education Statistics shall submit a report regarding the findings of the study required by paragraph (1) 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, 2001. [<-Struck out]

    [Struck out->]

    ‘(c) HIGHER EDUCATION MARKET BASKET- In consultation with the Bureau of Labor Statistics, the National Center for Education Statistics shall develop a Higher Education Market Basket that identifies the items that comprise the costs of higher education. The National Center for Education Statistics shall provide a report on the 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.’. [<-Struck out]

[Struck out->] SEC. 488. PROGRAM PARTICIPATION AGREEMENTS. [<-Struck out]

    [Struck out->] Section 487 (20 U.S.C. 1094) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a)-- [<-Struck out]

        [Struck out->] (A) in paragraph (3)-- [<-Struck out]

          [Struck out->] (i) by striking subparagraph (B); and [<-Struck out]

          [Struck out->] (ii) by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively; [<-Struck out]

        [Struck out->] (B) in paragraph (9), by striking ‘part B’ and inserting ‘part B or D’; [<-Struck out]

        [Struck out->] (C) in paragraph (14)-- [<-Struck out]

          [Struck out->] (i) in subparagraph (A), by striking ‘part B’ and inserting ‘part B or D’; and [<-Struck out]

          [Struck out->] (ii) in subparagraph (B)-- [<-Struck out]

            [Struck out->] (I) by inserting ‘for-profit’ after ‘Any’; [<-Struck out]

            [Struck out->] (II) by striking ‘and any eligible institution which’ and inserting ‘or’; and [<-Struck out]

            [Struck out->] (III) by striking ‘part B’ and inserting ‘part B or D’; [<-Struck out]

        [Struck out->] (D) in paragraph (15), by striking ‘State review entities’ and inserting ‘the State agencies’; and [<-Struck out]

        [Struck out->] (E) by amending paragraph (21) to read as follows: [<-Struck out]

      [Struck out->]

      ‘(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.’; and [<-Struck out]

      [Struck out->] (2) in subsection (c)-- [<-Struck out]

        [Struck out->] (A) in paragraph (1)(A)(i), by striking ‘State review entities referred to in’ and inserting ‘appropriate State agency notifying the Secretary under’; [<-Struck out]

        [Struck out->] (B) in paragraph (4), by striking ‘, after consultation with each State review entity designated under subpart 1 of part H,’; and [<-Struck out]

        [Struck out->] (C) in paragraph (5), by striking ‘State review entities designated’ and inserting ‘State agencies notifying the Secretary’. [<-Struck out]

[Struck out->] SEC. 489. REGULATORY RELIEF AND IMPROVEMENT. [<-Struck out]

    [Struck out->] Section 487A (20 U.S.C. 1094a) is amended to read as follows: [<-Struck out]

[Struck out->]
‘SEC. 487A. REGULATORY RELIEF AND IMPROVEMENT. [<-Struck out]

    [Struck out->]

    ‘(a) QUALITY ASSURANCE PROGRAM- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- The Secretary is authorized to select institutions for voluntary participation in a Quality Assurance Program that provides participating institutions with an alternative management approach through which individual schools develop and implement their own comprehensive systems, including 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. 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. [<-Struck out]

      [Struck out->]

      ‘(2) 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. [<-Struck out]

      [Struck out->]

      ‘(3) DETERMINATION- The Secretary is authorized to determine-- [<-Struck out]

        [Struck out->]

        ‘(A) when an institution that is unable to administer the Quality Assurance Program shall be removed from such program; and [<-Struck out]

        [Struck out->]

        ‘(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. [<-Struck out]

      [Struck out->]

      ‘(4) 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. [<-Struck out]

    [Struck out->]

    ‘(b) REGULATORY IMPROVEMENT AND STREAMLINING EXPERIMENTS- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- 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 House of Representatives not later than 6 months after the enactment of the Higher Education Amendments of 1998. Such report shall include-- [<-Struck out]

        [Struck out->]

        ‘(A) a list of participating institutions and the specific statutory or regulatory waivers granted to each institution; [<-Struck out]

        [Struck out->]

        ‘(B) the findings and conclusions reached regarding each of the experiments conducted; and [<-Struck out]

        [Struck out->]

        ‘(C) recommendations for amendments to improve and streamline this Act, based on the results of the experiment. [<-Struck out]

      [Struck out->]

      ‘(2) SELECTION- [<-Struck out]

        [Struck out->]

        ‘(A) IN GENERAL- The Secretary is authorized to select a limited number of 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, except that additional institutions may not be selected by the Secretary until the report required by subsection (b)(1) has been submitted to Congress. [<-Struck out]

        [Struck out->]

        ‘(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-- [<-Struck out]

          [Struck out->]

          ‘(i) a list of institutions proposed for participation in the experiment and the specific statutory or regulatory waivers proposed to be granted to each institution; [<-Struck out]

          [Struck out->]

          ‘(ii) the objectives to be achieved through the experiment; and [<-Struck out]

          [Struck out->]

          ‘(iii) the period of time over which the experiment is to be conducted. [<-Struck out]

        [Struck out->]

        ‘(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 experimental results. [<-Struck out]

    [Struck out->]

    ‘(c) DEFINITIONS- For purposes of this section, the term ‘current award year’ is defined as the award year during which the participating institution indicates the institution’s intention to cease participation.’. [<-Struck out]

[Struck out->] SEC. 489A. DISTANCE EDUCATION DEMONSTRATION PROGRAMS. [<-Struck out]

    [Struck out->] Part G (20 U.S.C. 1088 et seq.) is amended by inserting after section 487B (20 U.S.C. 1094a) the following: [<-Struck out]

[Struck out->]
‘SEC. 487C. DISTANCE EDUCATION DEMONSTRATION PROGRAMS. [<-Struck out]

    [Struck out->]

    ‘(a) PURPOSE- It is the purpose of this section-- [<-Struck out]

      [Struck out->]

      ‘(1) to allow demonstration programs that are strictly monitored by the Department to test the quality and viability of expanded distance education programs currently restricted under this Act; [<-Struck out]

      [Struck out->]

      ‘(2) to help determine the specific statutory and regulatory requirements which should be altered to provide greater access to high quality distance education programs; and [<-Struck out]

      [Struck out->]

      ‘(3) to help determine the appropriate level of Federal assistance for students enrolled in distance education programs. [<-Struck out]

    [Struck out->]

    ‘(b) DEMONSTRATION PROGRAMS AUTHORIZED- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- The Secretary, in accordance with the provisions of subsection (d), is authorized to select institutions of higher education 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). [<-Struck out]

      [Struck out->]

      ‘(2) WAIVERS- The Secretary is authorized to waive, for any institution or consortia participating in a Distance Education Demonstration Program, 1 or more of the requirements of section 472(5) as the section relates to computer costs, sections 472(10), 481(a)(3)(A), 481(a)(3)(B), 484(l)(1), or 1 or more of the regulations prescribed for distance education under part F or G. [<-Struck out]

      [Struck out->]

      ‘(3) SPECIAL RULE- An institution of higher education, as defined in section 481(a), is eligible to participate in the demonstration program authorized under this section if such institution awards a degree, except that-- [<-Struck out]

        [Struck out->]

        ‘(A) such institutions that are described in section 481(a)(1)(C) shall not be eligible to participate; and [<-Struck out]

        [Struck out->]

        ‘(B) subject to subparagraph (A), such institutions that meet the requirements of subsection (a) of section 481, other than the requirements of paragraph (3)(A) or (3)(B) of such subsection, shall be eligible to participate. [<-Struck out]

    [Struck out->]

    ‘(c) APPLICATION- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- Each institution or consortia of institutions desiring to participate in a demonstration program under this section shall submit an application to the Secretary at such time and in such manner as the Secretary may require. [<-Struck out]

      [Struck out->]

      ‘(2) CONTENTS- Each application shall include-- [<-Struck out]

        [Struck out->]

        ‘(A) a description of the institution or consortium’s consultation with a recognized accrediting agency or association with respect to quality assurances for the distance education programs to be offered; [<-Struck out]

        [Struck out->]

        ‘(B) a description of the statutory and regulatory requirements described in subsection (b)(2) for which a waiver is sought and the reasons for which the waiver is sought; [<-Struck out]

        [Struck out->]

        ‘(C) a description of the distance education programs to be offered; [<-Struck out]

        [Struck out->]

        ‘(D) a description of the students to whom distance education programs will be offered; [<-Struck out]

        [Struck out->]

        ‘(E) an assurance that the institution or consortium will offer full cooperation with the ongoing evaluations of the demonstration program provided for in this section; and [<-Struck out]

        [Struck out->]

        ‘(F) such other information as the Secretary may require. [<-Struck out]

    [Struck out->]

    ‘(d) SELECTION- The Secretary is authorized to select not more than 5 institutions or consortia to participate in the initial year of the demonstration program authorized under this section. If expansion of the demonstration program can be supported on the basis of the evaluations conducted pursuant to subsections (f) and (g), the Secretary may select not more than 10 additional institutions or consortia, taking into account the number and quality of applications received and the Department’s capacity to oversee and monitor each demonstration program. To the extent feasible, the Secretary shall select a representative sample of institutions for participation. In selecting institutions for participation, the Secretary shall take into consideration the institution’s financial and administrative capability and the type of program or programs being offered via distance education course offerings. [<-Struck out]

    [Struck out->]

    ‘(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 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 or consortia and a description of the distance education courses to be offered. [<-Struck out]

    [Struck out->]

    ‘(f) EVALUATIONS AND REPORTS- [<-Struck out]

      [Struck out->]

      ‘(1) EVALUATION- The Secretary, on an annual basis, shall evaluate the demonstration programs authorized under this section. Such evaluations shall specifically review-- [<-Struck out]

        [Struck out->]

        ‘(A) the number and types of students participating in the programs being offered, including the progress of participating students toward recognized associate, bachelor’s, or graduate degrees, and the degree to which participation in such programs increased; [<-Struck out]

        [Struck out->]

        ‘(B) issues related to student financial assistance for distance education; and [<-Struck out]

        [Struck out->]

        ‘(C) the extent to which statutory or regulatory requirements not waived under the demonstration program present difficulties for students or institutions. [<-Struck out]

      [Struck out->]

      ‘(2) POLICY ANALYSIS- In addition, the Secretary shall review current policies and identify those policies which present impediments to the development and use of distance learning and other nontraditional methods of expanding access to education. [<-Struck out]

      [Struck out->]

      ‘(3) REPORTS- [<-Struck out]

        [Struck out->]

        ‘(A) 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 [<-Struck out]

[Struck out->] and the Committee on Education and the Workforce of the House of Representatives with respect to-- [<-Struck out]

          [Struck out->]

          ‘(i) the evaluations of the demonstration programs authorized under this section; and [<-Struck out]

          [Struck out->]

          ‘(ii) any proposed statutory changes designed to enhance the use of distance education. [<-Struck out]

        [Struck out->]

        ‘(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 the demonstration programs authorized under this section. [<-Struck out]

    [Struck out->]

    ‘(g) INDEPENDENT EVALUATION- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- The Secretary shall enter into a contract with the National Academy of Sciences to study the quality of and student learning outcomes in distance education programs. Such study shall include-- [<-Struck out]

        [Struck out->]

        ‘(A) identification of the elements by which quality in distance education can be assessed, such as subject matter, interactivity, and student outcomes; and [<-Struck out]

        [Struck out->]

        ‘(B) identification of the types of students which can most benefit from distance education in areas such as access to higher education, persistence, and graduation. [<-Struck out]

      [Struck out->]

      ‘(2) SCOPE- Such study shall include distance education programs offered by the institutions or consortia participating in the demonstration program authorized by this section, as well as the distance education programs offered by other institutions. [<-Struck out]

      [Struck out->]

      ‘(3) INTERIM AND FINAL REPORTS- The Secretary shall request that the National Academy of Sciences submit an interim 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 not later than December 31, 2000, and a final report not later than December 31, 2002, regarding the study. [<-Struck out]

      [Struck out->]

      ‘(4) FUNDING- The Secretary shall make available not more than $1,000,000 for the study required by this subsection. [<-Struck out]

    [Struck out->]

    ‘(h) OVERSIGHT- In conducting the demonstration program authorized under this section, the Secretary shall, on a continuing basis-- [<-Struck out]

      [Struck out->]

      ‘(1) assure compliance of institutions or consortia with the requirements of this title (other than the sections and regulations that are waived under subsection (b)(2)); [<-Struck out]

      [Struck out->]

      ‘(2) provide technical assistance; [<-Struck out]

      [Struck out->]

      ‘(3) monitor fluctuations in the student population enrolled in the participating institutions or consortia; and [<-Struck out]

      [Struck out->]

      ‘(4) consult with appropriate accrediting agencies or associations and appropriate State regulatory authorities. [<-Struck out]

    [Struck out->]

    ‘(i) DEFINITION- For the purpose of this section, the term ‘distance learning’ means an educational process that is characterized by the separation, in time or place, between instructor and student. Distance learning may include courses offered principally through the use of-- [<-Struck out]

      [Struck out->]

      ‘(1) television, audio, or computer transmission, such as open broadcast, closed circuit, cable, microwave, or satellite transmission; [<-Struck out]

      [Struck out->]

      ‘(2) audio or computer conferencing; [<-Struck out]

      [Struck out->]

      ‘(3) video cassettes or discs; or [<-Struck out]

      [Struck out->]

      ‘(4) correspondence.’. [<-Struck out]

[Struck out->] SEC. 489B. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE. [<-Struck out]

    [Struck out->] Section 491 (20 U.S.C. 1098) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (b)-- [<-Struck out]

        [Struck out->] (A) in the second sentence, by striking ‘and expenditures’ and inserting ‘, expenditures and staffing levels’; and [<-Struck out]

        [Struck out->] (B) by inserting after the third sentence the following: ‘Reports, publications, and other documents, including such reports, publications, and documents in electronic form, shall not be subject to review by the Secretary.’; [<-Struck out]

      [Struck out->] (2) in subsection (e)-- [<-Struck out]

        [Struck out->] (A) by redesignating paragraphs (3), (4), and (5), as paragraphs (4), (5), and (6), respectively; and [<-Struck out]

        [Struck out->] (B) by inserting after paragraph (2) the following: [<-Struck out]

      [Struck out->]

      ‘(3) No officers or full-time employees of the Federal Government shall serve as members of the Advisory Committee.’; [<-Struck out]

      [Struck out->] (3) in subsection (g), by striking ‘(1) Members’ and all that follows through ‘of the United States may’ and inserting ‘Members of the Advisory Committee may’; [<-Struck out]

      [Struck out->] (4) in subsection (h)(1)-- [<-Struck out]

        [Struck out->] (A) by inserting ‘determined’ after ‘as may be’; and [<-Struck out]

        [Struck out->] (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.’; [<-Struck out]

      [Struck out->] (5) in subsection (i), by striking ‘$750,000’ and inserting ‘$800,000’; [<-Struck out]

      [Struck out->] (6) by amending subsection (j) to read as follows: [<-Struck out]

    [Struck out->]

    ‘(j) SPECIAL ANALYSES AND ACTIVITIES- The Advisory Committee shall-- [<-Struck out]

      [Struck out->]

      ‘(1) monitor and evaluate the modernization of student financial aid systems and delivery processes, including the implementation of a performance-based organization within the Department, and report to Congress regarding such modernization on not less than an annual basis, including recommendations for improvement; [<-Struck out]

      [Struck out->]

      ‘(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; [<-Struck out]

      [Struck out->]

      ‘(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; [<-Struck out]

      [Struck out->]

      ‘(4) assess the implications of distance learning on student eligibility and other requirements for financial assistance under this title, and make recommendations that will enhance access to postsecondary education through distance learning while maintaining access, through on-campus instruction at eligible institutions, and program integrity; and [<-Struck out]

      [Struck out->]

      ‘(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 498A(b)(3).’; [<-Struck out]

      [Struck out->] (7) in subsection (k), by striking ‘1998’ and inserting ‘2004’; and [<-Struck out]

      [Struck out->] (8) by repealing subsection (l). [<-Struck out]

[Struck out->] SEC. 489C. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING. [<-Struck out]

    [Struck out->] Section 492 (20 U.S.C. 1098a) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a)-- [<-Struck out]

        [Struck out->] (A) in paragraph (1)-- [<-Struck out]

          [Struck out->] (i) by inserting ‘, after the enactment of each Act to reauthorize this Act that contains an amendment to this title,’ after ‘The Secretary’; and [<-Struck out]

          [Struck out->] (ii) by inserting ‘D,’ after ‘B,’; and [<-Struck out]

        [Struck out->] (B) in paragraph (2)-- [<-Struck out]

          [Struck out->] (i) by inserting ‘D,’ after ‘B,’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘1992’ and inserting ‘1998, and for the implementation of this title as amended by each Act to reauthorize this Act enacted after the date of enactment of the Higher Education Amendments of 1998 that contains an amendment to this title’; and [<-Struck out]

      [Struck out->] (2) in subsection (b)-- [<-Struck out]

        [Struck out->] (A) by striking ‘After’ and inserting the following: [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- After’; [<-Struck out]

        [Struck out->] (B) in paragraph (1) (as redesignated by subparagraph (A))-- [<-Struck out]

          [Struck out->] (i) by inserting ‘D,’ after ‘B,’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘1992’ and inserting ‘1998, and for the implementation of this title as amended by each Act to reauthorize this Act enacted after the date of enactment of the Higher Education Amendments of 1998 that contains an amendment to this title,’; and [<-Struck out]

        [Struck out->] (C) by adding at the end the following: [<-Struck out]

      [Struck out->]

      ‘(2) EXPANSION OF NEGOTIATED RULEMAKING IN STUDENT LOAN PROGRAMS- All regulations pertaining to the student assistance programs in parts B, D, G, and H, that are promulgated after the date of enactment of this paragraph, shall be subject to the negotiated rulemaking process, unless the Secretary determines that exceptional circumstances exist making negotiated rulemaking impractical with respect to given regulations and publishes the basis for such determination in the Federal Register at the same time as the proposed regulations in questions are first published. All published proposed regulations shall conform, unless impracticable, to agreements resulting from such negotiated rulemaking. Such negotiated rulemaking shall be conducted in accordance with the provisions of paragraph (1).’. [<-Struck out]

[Struck out->] PART H--PROGRAM INTEGRITY TRIAD [<-Struck out]

[Struck out->] SEC. 491. STATE ROLE AND RESPONSIBILITIES. [<-Struck out]

    [Struck out->] Subpart 1 of part H of title IV (20 U.S.C. 1099a et seq.) is amended to read as follows: [<-Struck out]

[Struck out->]
‘Subpart 1--State Role [<-Struck out]

[Struck out->]
‘SEC. 495. STATE RESPONSIBILITIES. [<-Struck out]

    [Struck out->]

    ‘(a) STATE RESPONSIBILITIES- As part of the integrity program authorized by this part, each State, through 1 State agency or several State agencies selected by the State, shall-- [<-Struck out]

      [Struck out->]

      ‘(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; [<-Struck out]

      [Struck out->]

      ‘(2) notify the Secretary promptly whenever the State revokes a license or other authority to operate an institution of higher education; and [<-Struck out]

      [Struck out->]

      ‘(3) notify the Secretary promptly whenever the State has credible evidence that an institution of higher education within the State-- [<-Struck out]

        [Struck out->]

        ‘(A) has committed fraud in the administration of the student assistance programs authorized by this title; or [<-Struck out]

        [Struck out->]

        ‘(B) has substantially violated a provision of this title. [<-Struck out]

    [Struck out->]

    ‘(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.’. [<-Struck out]

[Struck out->] SEC. 492. ACCREDITING AGENCY RECOGNITION. [<-Struck out]

    [Struck out->] (a) AMENDMENTS TO HEADINGS- Subpart 2 of part H of title IV (20 U.S.C. 1099b et seq.) is amended-- [<-Struck out]

      [Struck out->] (1) in the subpart heading, by striking ‘Approval’ and inserting ‘Recognition’; and [<-Struck out]

      [Struck out->] (2) in the heading for section 496, by striking ‘approval’ and inserting ‘recognition’. [<-Struck out]

    [Struck out->] (b) RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION- Section 496 (20 U.S.C. 1099b) is amended-- [<-Struck out]

      [Struck out->] (1) in the heading for subsection (a), by striking ‘STANDARDS’ and inserting ‘CRITERIA’; [<-Struck out]

      [Struck out->] (2) in subsection (a)-- [<-Struck out]

        [Struck out->] (A) in the matter preceding paragraph (1), by striking ‘standards’ each place the term appears and inserting ‘criteria’; [<-Struck out]

        [Struck out->] (B) in paragraph (4)-- [<-Struck out]

          [Struck out->] (i) by striking ‘at the institution’ and inserting ‘offered by the institution’; and [<-Struck out]

          [Struck out->] (ii) by inserting ‘, including distance education courses or programs,’ after ‘higher education’; and [<-Struck out]

        [Struck out->] (C) in paragraph (5)-- [<-Struck out]

          [Struck out->] (i) by striking subparagraph (I); [<-Struck out]

          [Struck out->] (ii) by redesignating subparagraphs (A) through (H) as subparagraphs (B) through (I), respectively; [<-Struck out]

          [Struck out->] (iii) by inserting before subparagraph (B) the following: [<-Struck out]

        [Struck out->]

        ‘(A) success with respect to student achievement in relation to the institution’s mission, including, as appropriate, consideration of course completion, State licensing examination, and job placement rates;’; [<-Struck out]

          [Struck out->] (iv) in subparagraph (I) (as redesignated by clause (ii)), by striking ‘in clock hours or credit hours’; and [<-Struck out]

          [Struck out->] (v) in subparagraph (L)-- [<-Struck out]

            [Struck out->] (I) by inserting ‘record of’ before ‘compliance’; [<-Struck out]

            [Struck out->] (II) by striking ‘Act, including any’ and inserting ‘Act based on the’; [<-Struck out]

            [Struck out->] (III) by inserting ‘any’ after ‘reviews, and’; and [<-Struck out]

            [Struck out->] (IV) in the matter following subparagraph (L), by striking ‘(G),’; [<-Struck out]

      [Struck out->] (3) by amending paragraph (1) of subsection (l) to read as follows: ‘(1)(A)(i) If the Secretary determines that an accrediting agency or association has failed to apply effectively the standards in this section, or is otherwise not in compliance with the requirements of this section, the Secretary shall-- [<-Struck out]

        [Struck out->]

        ‘(I) after notice and opportunity for a hearing, limit, suspend, or terminate the approval of the agency or association; or [<-Struck out]

        [Struck out->]

        ‘(II) require the agency or association to take appropriate action to bring the agency or association into compliance with such requirements within a timeframe specified by the Secretary, except that-- [<-Struck out]

          [Struck out->]

          ‘(aa) such timeframe shall not exceed 12 months unless the Secretary extends such period for good cause; and [<-Struck out]

          [Struck out->]

          ‘(bb) 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 approval of the agency or association.’; and [<-Struck out]

      [Struck out->] (4) in subsection (n)(3), 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.’. [<-Struck out]

[Struck out->] SEC. 493. ELIGIBILITY AND CERTIFICATION PROCEDURES. [<-Struck out]

    [Struck out->] (a) SINGLE APPLICATION FORM- Section 498(b) (20 U.S.C. 1099c(b)) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (1), by striking ‘and capability’ and inserting ‘financial responsibility, and administrative capability’; [<-Struck out]

      [Struck out->] (2) by amending paragraph (3) to read as follows: [<-Struck out]

      [Struck out->]

      ‘(3) requires-- [<-Struck out]

        [Struck out->]

        ‘(A) a description of the third party servicers of an institution of higher education; and [<-Struck out]

        [Struck out->]

        ‘(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;’; [<-Struck out]

      [Struck out->] (3) in paragraph (4), by striking the period and inserting ‘; and’; and [<-Struck out]

      [Struck out->] (4) by adding at the end the following: [<-Struck out]

      [Struck out->]

      ‘(5) provides, at the option of the institution, for participation in 1 or more of the programs under part B.’. [<-Struck out]

    [Struck out->] (b) FINANCIAL RESPONSIBILITY STANDARDS- Section 498(c) (20 U.S.C. 1099c(c)) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (2), 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,’; [<-Struck out]

      [Struck out->] (2) in paragraph (3)(A), by striking ‘Secretary third party’ and all that follows through ‘payable to the Secretary’ and inserting ‘Secretary any third party guarantees, which the Secretary determines are reasonable, that’; and [<-Struck out]

      [Struck out->] (3) in paragraph (4)-- [<-Struck out]

        [Struck out->] (A) in the matter preceding subparagraph (A), by striking ‘ratio of current assets to current liabilities’ and inserting ‘criteria’; and [<-Struck out]

        [Struck out->] (B) in subparagraph (C), by striking ‘current operating ratio requirement’ and inserting ‘criteria’. [<-Struck out]

    [Struck out->] (c) FINANCIAL GUARANTEES FROM OWNERS- Section 498(e) (20 U.S.C. 1099c(e)) is amended-- [<-Struck out]

      [Struck out->] (1) in the subsection heading, by inserting ‘OF FOR-PROFIT INSTITUTIONS’ after ‘OWNERS’; [<-Struck out]

      [Struck out->] (2) in paragraph (1)(A), by inserting ‘from an’ and inserting ‘from a for-profit’; [<-Struck out]

      [Struck out->] (3) in paragraph (2)-- [<-Struck out]

        [Struck out->] (A) in the matter preceding clause (i) of subparagraph (A), by inserting ‘for-profit’ after ‘or more’; [<-Struck out]

        [Struck out->] (B) in subparagraph (B), by inserting ‘for-profit’ after ‘or more’; and [<-Struck out]

      [Struck out->] (4) in paragraph (3), by striking ‘operation of, an institution or’ and inserting ‘operation of, a for-profit institution or the’. [<-Struck out]

    [Struck out->] (d) APPLICATIONS AND SITE VISITS- Section 498(f) (20 U.S.C. 1099c(f)) is amended-- [<-Struck out]

      [Struck out->] (1) in the subsection heading by striking ‘; SITE VISITS AND FEES’ and inserting ‘AND SITE VISITS’; [<-Struck out]

      [Struck out->] (2) in the second sentence, by striking ‘shall’ and inserting ‘may’; [<-Struck out]

      [Struck out->] (3) in the third sentence, strike ‘may’ and insert ‘shall’; and [<-Struck out]

      [Struck out->] (4) by striking the fourth sentence. [<-Struck out]

    [Struck out->] (e) TIME LIMITATIONS ON, AND RENEWAL OF, ELIGIBILITY- Subsection (g) of section 498 (20 U.S.C. 1099c) is amended to read as follows: [<-Struck out]

    [Struck out->]

    ‘(g) TIME LIMITATIONS ON, AND RENEWAL OF, ELIGIBILITY- [<-Struck out]

      [Struck out->]

      ‘(1) GENERAL RULE- After the expiration of the certification of any institution under the schedule prescribed under this section (as in effect prior to the enactment 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. [<-Struck out]

      [Struck out->]

      ‘(2) 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. [<-Struck out]

      [Struck out->]

      ‘(3) 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 481(a)(1)(C) and received less than $500,000 in funds under part B for the most recent year for which data are available. [<-Struck out]

    [Struck out->] (f) PROVISIONAL CERTIFICATION- Section 498(h) (20 U.S.C. 1099c(h)) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (1)(B)(ii), by striking ‘an eligible’ and inserting ‘a for-profit eligible’; and [<-Struck out]

      [Struck out->] (2) in paragraph (2), by striking ‘the approval’ and inserting ‘the recognition’. [<-Struck out]

    [Struck out->] (g) TREATMENT OF CHANGES OF OWNERSHIP- Section 498(i) (20 U.S.C. 1099c(i)) is amended-- [<-Struck out]

      [Struck out->] (1) in the subsection heading, by inserting ‘OF FOR-PROFIT INSTITUTIONS’ after ‘OWNERSHIP’; and [<-Struck out]

      [Struck out->] (2) in paragraph (2)-- [<-Struck out]

        [Struck out->] (A) in subparagraph (A), by inserting ‘for-profit’ before ‘institution’; [<-Struck out]

        [Struck out->] (B) in subparagraph (C), by striking ‘two’ and inserting ‘a for-profit institution with one’; [<-Struck out]

        [Struck out->] (C) in subparagraph (D), by inserting ‘for-profit’ before ‘institutions’; [<-Struck out]

        [Struck out->] (D) in subparagraph (E), by inserting ‘for-profit’ before ‘institutions’; and [<-Struck out]

        [Struck out->] (E) in subparagraph (F), by inserting ‘for-profit’ before ‘institution’. [<-Struck out]

    [Struck out->] (h) TREATMENT OF BRANCHES- The second sentence of section 498(j)(1) (20 U.S.C. 1099c(j)(1)) is amended by inserting ‘after the branch is certified by the Secretary as a branch campus participating in a program under title IV,’ after ‘2 years’. [<-Struck out]

[Struck out->] SEC. 494. PROGRAM REVIEW AND DATA. [<-Struck out]

    [Struck out->] Section 498A (20 U.S.C. 1099c-1) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a)-- [<-Struck out]

        [Struck out->] (A) in paragraph (2)-- [<-Struck out]

          [Struck out->] (i) in the matter preceding subparagraph (A), by striking ‘may’ and inserting ‘shall’; [<-Struck out]

          [Struck out->] (ii) by amending subparagraph (C) to read as follows: [<-Struck out]

        [Struck out->]

        ‘(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;’; [<-Struck out]

          [Struck out->] (iii) by amending subparagraph (D) to read as follows: [<-Struck out]

        [Struck out->]

        ‘(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;’; [<-Struck out]

          [Struck out->] (iv) in subparagraph (E), by inserting ‘and’ after the semicolon; and [<-Struck out]

          [Struck out->] (v) by striking subparagraphs (F) and (G), and inserting the following: [<-Struck out]

        [Struck out->]

        ‘(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 [<-Struck out]

        [Struck out->] (B) in paragraph (3)(A), by inserting ‘relevant’ after ‘all’; and [<-Struck out]

      [Struck out->] (2) by amending subsection (b) to read as follows: [<-Struck out]

    [Struck out->]

    ‘(b) SPECIAL ADMINISTRATIVE RULES- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- In carrying out paragraphs (1) and (2) of subsection (a) and any other relevant provisions of this title, the Secretary shall-- [<-Struck out]

        [Struck out->]

        ‘(A) establish guidelines designed to ensure uniformity of practice in the conduct of program reviews of institutions of higher education; [<-Struck out]

        [Struck out->]

        ‘(B) make available to each institution participating in programs authorized under this title complete copies of all review guidelines and procedures used in program reviews; [<-Struck out]

        [Struck out->]

        ‘(C) 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; [<-Struck out]

        [Struck out->]

        ‘(D) 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 [<-Struck out]

        [Struck out->]

        ‘(E) 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. [<-Struck out]

      [Struck out->]

      ‘(2) UNIFORMITY OF APPLICATION OF REGULATIONS- The Secretary shall review the regulations of the Department and the application of such regulations to ensure the uniformity of interpretation and application of the regulations. [<-Struck out]

      [Struck out->]

      ‘(3) NONDUPLICATION AND COORDINATION- The Secretary shall establish a process for ensuring that eligibility and compliance issues, such as institutional audit, program review, and recertification, are considered simultaneously, and shall establish a process for identifying unnecessary duplication of reporting and related regulatory requirements. In developing such processes, the Secretary shall consult with relevant representatives of institutions participating in the programs authorized by this title.’. [<-Struck out]

[Struck out->] PART I--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL ASSISTANCE [<-Struck out]

[Struck out->] SEC. 495. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL STUDENT FINANCIAL ASSISTANCE. [<-Struck out]

    [Struck out->] Title IV (20 U.S.C. 1070 et seq.) is amended by adding at the end the following: [<-Struck out]

[Struck out->]
‘PART I--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL ASSISTANCE [<-Struck out]

[Struck out->]
‘SEC. 499. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL STUDENT FINANCIAL ASSISTANCE. [<-Struck out]

    [Struck out->]

    ‘(a) ESTABLISHMENT- The Secretary shall establish in the Department a performance-based organization (hereafter in this part referred to as the ‘PBO’) to administer various functions relating to student financial assistance programs authorized under this title. [<-Struck out]

    [Struck out->]

    ‘(b) OVERSIGHT AND AUTHORITY- [<-Struck out]

      [Struck out->]

      ‘(1) POLICY OVERSIGHT AND DIRECTION- The Secretary shall maintain responsibility for the policy relating to functions managed by the PBO, and the [<-Struck out]

[Struck out->] PBO shall remain subject to the Secretary’s oversight and direction. [<-Struck out]

      [Struck out->]

      ‘(2) 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. [<-Struck out]

      [Struck out->]

      ‘(3) CHANGES- [<-Struck out]

        [Struck out->]

        ‘(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 (e). [<-Struck out]

        [Struck out->]

        ‘(B) REVISIONS TO AGREEMENT- The Secretary and the Chief Operating Officer may revise the annual performance agreement described in subsection (f)(2) in light of policy, market, or other changes that occur after the Secretary and the PBO enter into the agreement. [<-Struck out]

    [Struck out->]

    ‘(c) PURPOSES OF PBO- The purposes of the PBO are-- [<-Struck out]

      [Struck out->]

      ‘(1) to improve service to students and other participants in the student financial assistance programs authorized under this title, including making those programs more understandable to students and their parents; [<-Struck out]

      [Struck out->]

      ‘(2) to reduce the costs of administering those programs; [<-Struck out]

      [Struck out->]

      ‘(3) to increase the accountability of the officials responsible for administering those programs; [<-Struck out]

      [Struck out->]

      ‘(4) to provide greater flexibility in the administration of those programs; [<-Struck out]

      [Struck out->]

      ‘(5) to improve and integrate the information and delivery systems that support those programs; and [<-Struck out]

      [Struck out->]

      ‘(6) to develop and maintain a student financial assistance system that contains complete, accurate, and timely data to ensure program integrity. [<-Struck out]

    [Struck out->]

    ‘(d) FUNCTIONS- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- Subject to subsection (b) of this section, the PBO shall be responsible for administration of the information and financial systems that support student financial assistance programs authorized under this title, including-- [<-Struck out]

        [Struck out->]

        ‘(A) collecting, processing, and transmitting applicant data to students, institutions, and authorized third parties, as provided for in section 483; [<-Struck out]

        [Struck out->]

        ‘(B) contracting for the information and financial systems supporting student financial assistance programs under this title; [<-Struck out]

        [Struck out->]

        ‘(C) developing technical specifications for software and systems that support those programs; and [<-Struck out]

        [Struck out->]

        ‘(D) providing all customer service, training, and user support related to systems that support those programs. [<-Struck out]

      [Struck out->]

      ‘(2) ADDITIONAL FUNCTIONS- The Secretary may allocate to the PBO such additional functions as the Secretary determines necessary or appropriate to achieve the purposes of the PBO. [<-Struck out]

    [Struck out->]

    ‘(e) PERFORMANCE PLAN AND REPORT- [<-Struck out]

      [Struck out->]

      ‘(1) PERFORMANCE PLAN- [<-Struck out]

        [Struck out->]

        ‘(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. [<-Struck out]

        [Struck out->]

        ‘(B) CONSULTATION- In developing the 5-year performance plan, the Secretary and the Chief Operating Officer shall consult with students, institutions of higher education, Congress, lenders, and other interested parties not less than 30 days prior to the implementation of the performance plan. [<-Struck out]

        [Struck out->]

        ‘(C) AREAS- The plan shall address the PBO’s responsibilities in the following areas: [<-Struck out]

          [Struck out->]

          ‘(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. [<-Struck out]

          [Struck out->]

          ‘(ii) REDUCING COSTS- Reducing the costs of administering those programs. [<-Struck out]

          [Struck out->]

          ‘(iii) IMPROVEMENT AND INTEGRATION OF SUPPORT SYSTEMS- Improving and integrating the information and delivery systems that support those programs. [<-Struck out]

          [Struck out->]

          ‘(iv) DELIVERY AND INFORMATION SYSTEM- Developing an open, common, and integrated delivery and information system for programs authorized under this title. [<-Struck out]

          [Struck out->]

          ‘(v) OTHER AREAS- Any other areas identified by the Secretary. [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

    [Struck out->]

    ‘(f) CHIEF OPERATING OFFICER- [<-Struck out]

      [Struck out->]

      ‘(1) APPOINTMENT- [<-Struck out]

        [Struck out->]

        ‘(A) IN GENERAL- 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. [<-Struck out]

        [Struck out->]

        ‘(B) BASIS- The appointment shall be made on the basis of demonstrated ability in management and experience in information technology or financial services, without regard to political affiliation or activity. [<-Struck out]

        [Struck out->]

        ‘(C) 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 (2), is satisfactory. [<-Struck out]

      [Struck out->]

      ‘(2) PERFORMANCE AGREEMENT- [<-Struck out]

        [Struck out->]

        ‘(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. [<-Struck out]

        [Struck out->]

        ‘(B) TRANSMITTAL- 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. [<-Struck out]

      [Struck out->]

      ‘(3) COMPENSATION- [<-Struck out]

        [Struck out->]

        ‘(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)(C) of such title. [<-Struck out]

        [Struck out->]

        ‘(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). [<-Struck out]

        [Struck out->]

        ‘(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 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. [<-Struck out]

      [Struck out->]

      ‘(4) REMOVAL- The Chief Operating Officer shall be removable-- [<-Struck out]

        [Struck out->]

        ‘(A) by the President; or [<-Struck out]

        [Struck out->]

        ‘(B) by the Secretary for misconduct or failure to meet the goals set forth in the performance agreement described in paragraph (2). [<-Struck out]

    [Struck out->]

    ‘(g) SENIOR MANAGEMENT- [<-Struck out]

      [Struck out->]

      ‘(1) APPOINTMENT- [<-Struck out]

        [Struck out->]

        ‘(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. [<-Struck out]

        [Struck out->]

        ‘(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. [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

      [Struck out->]

      ‘(3) COMPENSATION- [<-Struck out]

        [Struck out->]

        ‘(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 5. [<-Struck out]

        [Struck out->]

        ‘(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). [<-Struck out]

      [Struck out->]

      ‘(4) REMOVAL- A senior manager shall be removable by the Secretary or by the Chief Operating Officer. [<-Struck out]

    [Struck out->]

    ‘(h) 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 section, including transition costs.’. [<-Struck out]

[Struck out->]

TITLE V--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

[<-Struck out]

[Struck out->] SEC. 501. REPEALS, TRANSFERS, AND REDESIGNATIONS. [<-Struck out]

    [Struck out->] (a) IN GENERAL- Title V (20 U.S.C. 1101 et seq.) is amended-- [<-Struck out]

      [Struck out->] (1) by amending the title heading to read as follows: [<-Struck out]

[Struck out->]

‘TITLE V--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS’;

[<-Struck out]

      [Struck out->] (2) by repealing parts A, B, C, D, E, and F of title V (20 U.S.C. 1102 et seq., 1103 et seq., 1104 et seq., 1107 et seq., 1111 et seq., and 1113 et seq.); [<-Struck out]

      [Struck out->] (3) by transferring part C of title IX, part D of title IX, part A of title XI, and part A of title X (20 U.S.C. 1134h et seq., 1134l et seq., 1136 et seq., and 1135 et seq.) to title V and redesignating such parts as parts A, B, C, and D, respectively; [<-Struck out]

      [Struck out->] (4) by redesignating sections 931 through 935 (20 U.S.C. 1134h et seq. and 1134k-1 et seq.) as sections 511 through 515, respectively; [<-Struck out]

      [Struck out->] (5) by redesignating sections 941 through 947 (20 U.S.C. 1134l and 1134q-1) as section 521 through 527, respectively; [<-Struck out]

      [Struck out->] (6) by redesignating sections 1101 through 1109 (20 U.S.C. 1136 through 1136h) as sections 531 through 539, respectively; and [<-Struck out]

      [Struck out->] (7) by redesignating sections 1001, 1002, 1003, 1004, and 1011 (20 U.S.C. 1135, 1135a-1, 1135a-2, 1135a-3, and 1135a-11) as sections 541, 542, 543, 544, and 551, respectively. [<-Struck out]

    [Struck out->] (b) Cross Reference Conforming Amendments- [<-Struck out]

      [Struck out->] (1) JACOB K. JAVITS FELLOWSHIP PROGRAM- Section 514(a) (as redesignated by subsection (a)(4)) (20 U.S.C. 1134k(a)) is amended by striking ‘933’ and inserting ‘513’. [<-Struck out]

      [Struck out->] (2) GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED- Part B of title V (as redesignated by paragraphs (3) and (5) of subsection (a)) (20 U.S.C. 1134l et seq.) is amended-- [<-Struck out]

        [Struck out->] (A) in section 524(b)(7) (as redesignated by subsection (a)(5)) (20 U.S.C. 1134o(b)(7)), by striking ‘945’ and inserting ‘525’; and [<-Struck out]

        [Struck out->] (B) in section 525(c) (as redesignated by subsection (a)(5)) (20 U.S.C. 1134p(c))-- [<-Struck out]

          [Struck out->] (i) by striking ‘946(a)’ and inserting ‘526(a)’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘944(b)(2)’ and inserting ‘524(b)(2)’. [<-Struck out]

      [Struck out->] (3) URBAN AND COMMUNITY SERVICE- Part C of title V (as redesignated by paragraphs (3) and (6) of subsection (a)) (20 U.S.C. 1136 et seq.) is amended-- [<-Struck out]

        [Struck out->] (A) in section 532(b) (20 U.S.C. 1136a(b)), by striking ‘1104’ and inserting ‘534’; [<-Struck out]

        [Struck out->] (B) in section 534(12) (20 U.S.C. 1136c(12)), by striking ‘1103(a)(2)(B)’ and inserting ‘533(a)(2)(B)’; and [<-Struck out]

        [Struck out->] (C) in section 538(1) (20 U.S.C. 1136g(1)), by striking ‘1103’ and inserting ‘533’. [<-Struck out]

      [Struck out->] (4) FIPSE- Subsections (b) and (c) of section 544 (as redesignated by subsection (a)(7)) (20 U.S.C. 1135a-3) each are amended by striking ‘1001(b)’ and inserting ‘541(b)’. [<-Struck out]

[Struck out->] SEC. 502. PURPOSE. [<-Struck out]

    [Struck out->] Section 500 (20 U.S.C. 1101) is amended to read as follows: [<-Struck out]

[Struck out->]
‘SEC. 500. PURPOSE. [<-Struck out]

    [Struck out->]

    ‘It is the purpose of this title-- [<-Struck out]

      [Struck out->]

      ‘(1) to authorize national graduate fellowship programs-- [<-Struck out]

        [Struck out->]

        ‘(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 [<-Struck out]

        [Struck out->]

        ‘(B) that are designed to-- [<-Struck out]

          [Struck out->]

          ‘(i) sustain and enhance the capacity for graduate education in areas of national need; and [<-Struck out]

          [Struck out->]

          ‘(ii) encourage talented students to pursue scholarly careers in the humanities, social sciences, and the arts; and [<-Struck out]

      [Struck out->]

      ‘(2) to promote postsecondary programs.’. [<-Struck out]

[Struck out->] PART A--JACOB K. JAVITS FELLOWSHIP PROGRAM [<-Struck out]

[Struck out->] SEC. 511. AWARD OF FELLOWSHIPS. [<-Struck out]

    [Struck out->] (a) AWARD OF JACOB K. JAVITS FELLOWSHIPS- Section 511 (as redesignated by section 501(4)) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a)-- [<-Struck out]

        [Struck out->] (A) in the first sentence, by inserting ‘, financial need,’ after ‘demonstrated achievement’; [<-Struck out]

        [Struck out->] (B) in the second sentence-- [<-Struck out]

          [Struck out->] (i) by striking ‘students intending’ and inserting ‘students who are eligible to receive any grant, loan, or work assistance pursuant to section 484 and intend’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘commonly accepted’ and all that follows through ‘degree-granting institution’ and inserting ‘the terminal highest degree awarded in the area of study’; and [<-Struck out]

        [Struck out->] (C) in the third sentence, by inserting ‘following the fiscal year’ after ‘July 1 of the fiscal year’; and [<-Struck out]

      [Struck out->] (2) by adding at the end the following: [<-Struck out]

    [Struck out->]

    ‘(d) 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. [<-Struck out]

    [Struck out->]

    ‘(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.’. [<-Struck out]

    [Struck out->] (b) ALLOCATION OF FELLOWSHIPS- Section 512 (as redesignated by section 501(4)) (20 U.S.C. 1134i) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a)-- [<-Struck out]

        [Struck out->] (A) in the third sentence of paragraph (1), by striking ‘knowledgeable about and have experience’ and inserting ‘representative of a range of disciplines’; and [<-Struck out]

        [Struck out->] (B) in paragraph (2)-- [<-Struck out]

          [Struck out->] (i) by amending subparagraph (B) to read as follows: [<-Struck out]

        [Struck out->]

        ‘(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 a nongovernmental entity to administer the program assisted under this part, by such nongovernmental entity;’; and [<-Struck out]

          [Struck out->] (ii) in subparagraph (C), by inserting ‘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’ before the semicolon; and [<-Struck out]

      [Struck out->] (2) in the first sentence of subsection (b), by inserting ‘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’ before the period. [<-Struck out]

    [Struck out->] (c) STIPENDS- Section 513 (as redesignated by section 501(4)) (20 U.S.C. 1134j) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a)-- [<-Struck out]

        [Struck out->] (A) by striking ‘1993-1994’ and inserting ‘1999-2000’; and [<-Struck out]

        [Struck out->] (B) by striking ‘according to measurements of need approved by the Secretary’ and inserting ‘determined in accordance with part F of title IV’; and [<-Struck out]

      [Struck out->] (2) in subsection (b)(1)(A)-- [<-Struck out]

        [Struck out->] (A) in clause (i)-- [<-Struck out]

          [Struck out->] (i) by striking ‘$6,000’ and inserting ‘$10,000’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘1993-1994’ and inserting ‘1999-2000’; and [<-Struck out]

        [Struck out->] (B) in clause (ii)-- [<-Struck out]

          [Struck out->] (i) in the matter preceding subclause (I), by striking ‘1993-1994’ and inserting ‘1999-2000’; [<-Struck out]

          [Struck out->] (ii) in subclause (I), by striking ‘$9,000 for the academic year 1993-1994’ and inserting ‘$10,000 for the academic year 1999-2000’; and [<-Struck out]

          [Struck out->] (iii) in subclause (II), by striking ‘$9,000’ and inserting ‘$10,000’. [<-Struck out]

    [Struck out->] (d) AUTHORIZATION OF APPROPRIATIONS- Section 515 (as redesignated by section 501(4)) (20 U.S.C. 1134k-1) is amended by striking ‘1993’ and inserting ‘1999’. [<-Struck out]

[Struck out->] PART B--GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED [<-Struck out]

[Struck out->] SEC. 521. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED. [<-Struck out]

    [Struck out->] (a) DESIGNATION OF AREAS OF NATIONAL NEED- Subsection (b) of section 523 (as redesignated by section 501(5)) (20 U.S.C. 1134n) is amended to read as follows: [<-Struck out]

    [Struck out->]

    ‘(b) DESIGNATION OF AREAS OF NATIONAL NEED- After consultation with the National Science Foundation, the National Academy of Sciences, and other appropriate Federal and nonprofit agencies and organizations, the Secretary shall designate areas of national need. In making such designations, the Secretary shall take into consideration-- [<-Struck out]

      [Struck out->]

      ‘(1) the extent to which the national interest in the area is compelling; [<-Struck out]

      [Struck out->]

      ‘(2) the extent to which other Federal programs support postbaccalaureate study in the area concerned; and [<-Struck out]

      [Struck out->]

      ‘(3) an assessment of how the program may achieve the most significant impact with available resources.’. [<-Struck out]

    [Struck out->] (b) CONTENT OF APPLICATIONS- Section 524(b) (as redesignated by section 501(5)) (20 U.S.C. 1134o(b)) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (2)-- [<-Struck out]

        [Struck out->] (A) by striking ‘funds’ and inserting ‘sources’; and [<-Struck out]

        [Struck out->] (B) by inserting ‘, which contribution may be in cash or in kind, fairly valued’ before the semicolon; [<-Struck out]

      [Struck out->] (2) by redesignating paragraphs (4) through (9) as paragraphs (5) through (10), respectively; [<-Struck out]

      [Struck out->] (3) by inserting after paragraph (3) the following: [<-Struck out]

      [Struck out->]

      ‘(4) describe the number, types, and amounts of the fellowships that the applicant intends to offer with grant funds provided under this part;’ and [<-Struck out]

      [Struck out->] (4) in paragraph (5)(A) (as redesignated by paragraph (2)), by striking ‘criteria developed by the institution’ and inserting ‘part F of title IV’. [<-Struck out]

    [Struck out->] (c) AWARDS- Section 525 (as redesignated by section 501(5)) (20 U.S.C. 1134p) is amended-- [<-Struck out]

      [Struck out->] (1) in the third sentence of subsection (b)-- [<-Struck out]

        [Struck out->] (A) by striking ‘1993-1994’ and inserting ‘1999-2000’; and [<-Struck out]

        [Struck out->] (B) by striking ‘according to measurements of need approved by the Secretary’ and inserting ‘determined in accordance with part F of title IV’; and [<-Struck out]

      [Struck out->] (2) in subsection (c), by striking ‘such payments’ and inserting ‘such excess’. [<-Struck out]

    [Struck out->] (d) INSTITUTIONAL PAYMENTS- Section 526(a)(1) (as redesignated by section 501(5)) (20 U.S.C. 1134q(a)(1)) is amended-- [<-Struck out]

      [Struck out->] (1) in subparagraph (A)-- [<-Struck out]

        [Struck out->] (A) by striking ‘$6,000 annually’ and inserting ‘$10,000 for each academic year,’; and [<-Struck out]

        [Struck out->] (B) by striking ‘1993-1994’ and inserting ‘1999-2000’; and [<-Struck out]

      [Struck out->] (2) in subparagraph (B)-- [<-Struck out]

        [Struck out->] (A) in the matter preceding clause (i), by striking ‘1993-1994’ and inserting ‘1999-2000’; [<-Struck out]

        [Struck out->] (B) in clause (i), by striking ‘$9,000 for the academic year 1993-1994’ and inserting ‘$10,000 for the academic year 1999-2000’; and [<-Struck out]

        [Struck out->] (C) in clause (ii), by striking ‘$9,000’ and inserting ‘$10,000’. [<-Struck out]

    [Struck out->] (e) AUTHORIZATION OF APPROPRIATIONS- Section 527 (as redesignated by section 501(5)) (20 U.S.C. 1134q-1) is amended by striking ‘$40,000,000 for fiscal year 1993’ and inserting ‘$30,000,000 for fiscal year 1999’. [<-Struck out]

[Struck out->] PART C--URBAN COMMUNITY SERVICE [<-Struck out]

[Struck out->] SEC. 531. URBAN COMMUNITY SERVICE. [<-Struck out]

    [Struck out->] (a) PRIORITY- Section 533(b) (as redesignated by section 501(a)(6)) (20 U.S.C. 1136b(b)) is amended by adding at the end the following: ‘In addition, the Secretary shall give priority to eligible institutions submitting applications that demonstrate the eligible institution’s commitment to urban community service.’. [<-Struck out]

    [Struck out->] (b) AUTHORIZATION OF APPROPRIATIONS- Section 539 (as redesignated by section 501(a)(6)) (20 U.S.C. 1136h) is amended by striking ‘1993’ and inserting ‘1999’. [<-Struck out]

[Struck out->] PART D--FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION [<-Struck out]

[Struck out->] SEC. 541. FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION. [<-Struck out]

    [Struck out->] (a) AUTHORITY- Section 541(a) (as redesignated by section 501(a)(7)) (20 U.S.C. 1135(a)) is amended-- [<-Struck out]

      [Struck out->] (1) in the matter preceding paragraph (1)-- [<-Struck out]

        [Struck out->] (A) by striking ‘or combinations of such institutions’ and inserting ‘, combinations of such institutions,’; and [<-Struck out]

        [Struck out->] (B) by striking ‘institutions and combinations of such institutions’ and inserting ‘institutions, combinations, and agencies’; and [<-Struck out]

      [Struck out->] (2) in paragraph (2)-- [<-Struck out]

        [Struck out->] (A) by striking ‘and programs involving new’ and inserting ‘, programs and joint efforts involving’; and [<-Struck out]

        [Struck out->] (B) by striking ‘new combinations’ and inserting ‘combinations’. [<-Struck out]

    [Struck out->] (b) TECHNICAL EMPLOYEES- Section 543(a) (as redesignated by section 501(a)(7)) (20 U.S.C. 1135a-2(a)) is amended by striking ‘5 technical’ and inserting ‘7 technical’. [<-Struck out]

    [Struck out->] (c) AUTHORIZATION OF APPROPRIATIONS- Section 544 (as redesignated by section 501(a)(7)) (20 U.S.C. 1135a-3) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (a), by striking ‘$20,000,000 for fiscal year 1993’ and inserting ‘$26,000,000 for fiscal year 1999’; and [<-Struck out]

      [Struck out->] (2) in subsection (b), by striking ‘1993’ and inserting ‘1999’. [<-Struck out]

    [Struck out->] (d) AREAS OF NATIONAL NEED- [<-Struck out]

      [Struck out->] (1) AREAS- Section 551(c) (as redesignated by section 501(a)(7)) (20 U.S.C. 1135a-11(c)) is amended-- [<-Struck out]

        [Struck out->] (A) in paragraph (2), by striking ‘Campus climate and culture’ and inserting ‘Institutional restructuring to improve learning and promote cost efficiencies’; [<-Struck out]

        [Struck out->] (B) in paragraph (3), by inserting ‘of model programs’ after ‘dissemination’; and [<-Struck out]

        [Struck out->] (C) by adding at the end the following: [<-Struck out]

      [Struck out->]

      ‘(4) Articulation between 2-year and 4-year institutions of higher education, including developing innovative methods for ensuring the successful transfer of students from 2-year to 4-year institutions of higher education.’. [<-Struck out]

      [Struck out->] (2) AUTHORIZATION OF APPROPRIATIONS- Section 551(d) (as redesignated by section 501(a)(7)) (20 U.S.C. 1135a-11(d)) is amended by striking ‘1993’ and inserting ‘1999’. [<-Struck out]

[Struck out->] PART E--HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES; GENERAL PROVISIONS [<-Struck out]

[Struck out->] SEC. 551. HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES; GENERAL PROVISIONS. [<-Struck out]

    [Struck out->] Title V (20 U.S.C. 1101 et seq.) is amended further by adding at the end the following: [<-Struck out]

[Struck out->]
‘PART F--HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES [<-Struck out]

[Struck out->]
‘SEC. 571. HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES. [<-Struck out]

    [Struck out->]

    ‘(a) PURPOSE- It is the purpose of this part-- [<-Struck out]

      [Struck out->]

      ‘(1) to support the development of model programs to provide technical assistance or training, and professional development, for faculty and [<-Struck out]

[Struck out->] administrators in institutions of higher education, as defined in section 481(a), to provide the faculty and administrators with the skills and assistance to teach effectively students with disabilities; and [<-Struck out]

      [Struck out->]

      ‘(2) to ensure effective evaluation and dissemination of such model programs. [<-Struck out]

    [Struck out->]

    ‘(b) GRANTS AUTHORIZED- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- The Secretary is authorized to award grants to institutions of higher education to carry out the purposes of this part. [<-Struck out]

      [Struck out->]

      ‘(2) MODEL PROGRAMS- To the extent feasible, the model programs developed under this part shall be developed for a range of types and sizes of institutions of higher education. [<-Struck out]

      [Struck out->]

      ‘(3) GEOGRAPHIC DISTRIBUTION- In awarding grants under this part, the Secretary shall consider-- [<-Struck out]

        [Struck out->]

        ‘(A) providing an equitable geographic distribution of such grants; and [<-Struck out]

        [Struck out->]

        ‘(B) distributing such grants to urban and rural areas. [<-Struck out]

      [Struck out->]

      ‘(4) APPROACHES- The Secretary shall award grants under this part for a range of approaches to providing support to faculty and administrators, such as in-service training, professional development, customized and general technical assistance, workshops, summer institutes, distance learning and the use of educational technology. [<-Struck out]

    [Struck out->]

    ‘(c) DISSEMINATION OF GRANTS- The Secretary may award grants to institutions of higher education that have demonstrated exceptional programs for students with disabilities under this part in order to disseminate those programs. [<-Struck out]

    [Struck out->]

    ‘(d) APPLICATIONS- Each institution of higher education desiring a grant 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 such application shall include-- [<-Struck out]

      [Struck out->]

      ‘(1) a plan to assess the needs of the institution of higher education in order to meet the purposes of this part, in consultation with a broad range of persons within that institution; and [<-Struck out]

      [Struck out->]

      ‘(2) a plan for coordinating with or collaborating with the office within the institution that provides services to students with disabilities, and the equal opportunity office within the institution, if the offices exist. [<-Struck out]

    [Struck out->]

    ‘(e) USE OF FUNDS- Any institution of higher education receiving a grant under this part-- [<-Struck out]

      [Struck out->]

      ‘(1) shall use the grant funds to-- [<-Struck out]

        [Struck out->]

        ‘(A) meet the purposes of this section; and [<-Struck out]

        [Struck out->]

        ‘(B) ensure that projects assisted under this part include components for model development, demonstration, evaluation, and dissemination to other institutions of higher education; and [<-Struck out]

      [Struck out->]

      ‘(2) may include, to the extent practicable, graduate teaching assistants in the services provided under the grant. [<-Struck out]

    [Struck out->]

    ‘(f) GRANT AWARDS- The Secretary shall award grants under this part for a period of 3 years. [<-Struck out]

    [Struck out->]

    ‘(g) CONSTRUCTION- Nothing in this section shall be construed to impose any additional duty, obligation, or responsibility on an institution of higher education, or on the institution’s administrators, faculty, or staff, in addition to the requirements of section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990. [<-Struck out]

    [Struck out->]

    ‘(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. [<-Struck out]

[Struck out->]
‘PART G--GENERAL PROVISIONS [<-Struck out]

[Struck out->]
‘SEC. 581. ADMINISTRATIVE PROVISIONS FOR PARTS A AND B. [<-Struck out]

    [Struck out->]

    ‘(a) COORDINATED ADMINISTRATION- In carrying out the purpose described in section 500(1), the Secretary shall provide for coordinated administration and regulation of graduate programs assisted under parts A and B 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. [<-Struck out]

    [Struck out->]

    ‘(b) HIRING AUTHORITY- For purposes of carrying out parts A and B, 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 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. [<-Struck out]

    [Struck out->]

    ‘(c) USE FOR RELIGIOUS PURPOSES PROHIBITED- No institutional payment or allowance under section 513(b) or 526 shall be paid to a school or department of divinity as a result of the award of a fellowship under part A or B, respectively, to an individual who is studying for a religious vocation. [<-Struck out]

    [Struck out->]

    ‘(d) EVALUATION- The Secretary shall evaluate the success of assistance provided to individuals under part A or B with respect to graduating from their degree programs, and placement in faculty and professional positions. [<-Struck out]

    [Struck out->]

    ‘(e) CONTINUATION AWARDS- The Secretary, using funds appropriated to carry out parts A and B, 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.’. [<-Struck out]

[Struck out->]

TITLE VI--INTERNATIONAL EDUCATION PROGRAMS

[<-Struck out]

[Struck out->] SEC. 601. INTERNATIONAL AND FOREIGN LANGUAGE STUDIES. [<-Struck out]

    [Struck out->] Part A of title VI (20 U.S.C. 1121 et seq.) is amended to read as follows: [<-Struck out]

[Struck out->]
‘PART A--INTERNATIONAL AND FOREIGN LANGUAGE STUDIES [<-Struck out]

[Struck out->]
‘SEC. 601. FINDINGS AND PURPOSES. [<-Struck out]

    [Struck out->]

    ‘(a) FINDINGS- The Congress finds that-- [<-Struck out]

      [Struck out->]

      ‘(1) the well-being of the United States, its economy and long-range security, is dependent on the education and training of Americans in international and foreign language studies and on a strong research base in these areas; [<-Struck out]

      [Struck out->]

      ‘(2) knowledge of other countries and the ability to communicate in other languages is essential to the promotion of mutual understanding and cooperation among nations; and [<-Struck out]

      [Struck out->]

      ‘(3) systematic efforts are necessary to enhance the capacity of institutions of higher education in the United States for-- [<-Struck out]

        [Struck out->]

        ‘(A) producing graduates with international and foreign language expertise and knowledge; and [<-Struck out]

        [Struck out->]

        ‘(B) research regarding such expertise and knowledge. [<-Struck out]

    [Struck out->]

    ‘(b) PURPOSES- It is the purpose of this part-- [<-Struck out]

      [Struck out->]

      ‘(1) to assist in the development of knowledge, international study, resources and trained personnel; [<-Struck out]

      [Struck out->]

      ‘(2) to stimulate the attainment of foreign language acquisition and fluency; [<-Struck out]

      [Struck out->]

      ‘(3) to develop a pool of international experts to meet national needs; and [<-Struck out]

      [Struck out->]

      ‘(4) to coordinate the programs of the Federal Government in the areas of foreign language, area and other international studies, including professional international affairs education, and research. [<-Struck out]

[Struck out->]
‘SEC. 602. GRADUATE AND UNDERGRADUATE LANGUAGE AND AREA CENTERS AND PROGRAMS. [<-Struck out]

    [Struck out->]

    ‘(a) NATIONAL LANGUAGE AND AREA CENTERS AND PROGRAMS AUTHORIZED- [<-Struck out]

      [Struck out->]

      ‘(1) CENTERS AND PROGRAMS- [<-Struck out]

        [Struck out->]

        ‘(A) IN GENERAL- The Secretary is authorized-- [<-Struck out]

          [Struck out->]

          ‘(i) to make grants to institutions of higher education, or combinations thereof, for the purpose of establishing, strengthening, and operating comprehensive language and area centers and programs; and [<-Struck out]

          [Struck out->]

          ‘(ii) to make grants to such institutions or combinations for the purpose of establishing, strengthening, and operating a diverse network of undergraduate language and area centers and programs. [<-Struck out]

        [Struck out->]

        ‘(B) NATIONAL RESOURCES- The centers and programs referred to in paragraph (1) shall be national resources for-- [<-Struck out]

          [Struck out->]

          ‘(i) teaching of any modern foreign language; [<-Struck out]

          [Struck out->]

          ‘(ii) instruction in fields needed to provide full understanding of areas, regions, or countries in which such language is commonly used; [<-Struck out]

          [Struck out->]

          ‘(iii) research and training in international studies, and the international and foreign language aspects of professional and other fields of study; and [<-Struck out]

          [Struck out->]

          ‘(iv) instruction and research on issues in world affairs which concern one or more countries. [<-Struck out]

      [Struck out->]

      ‘(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-- [<-Struck out]

        [Struck out->]

        ‘(A) faculty, staff, and student travel in foreign areas, regions, or countries; [<-Struck out]

        [Struck out->]

        ‘(B) teaching and research materials; [<-Struck out]

        [Struck out->]

        ‘(C) curriculum planning and development; [<-Struck out]

        [Struck out->]

        ‘(D) bringing visiting scholars and faculty to the center to teach or to conduct research; [<-Struck out]

        [Struck out->]

        ‘(E) 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; and [<-Struck out]

        [Struck out->]

        ‘(F) training and improvement of the staff, for the purpose of, and subject to such conditions as the Secretary finds necessary for, carrying out this section. [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

      [Struck out->]

      ‘(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: [<-Struck out]

        [Struck out->]

        ‘(A) Programs of linkage or outreach between foreign language, area studies, and other international fields and professional schools and colleges. [<-Struck out]

        [Struck out->]

        ‘(B) Programs of linkage or outreach with 2-year and 4-year colleges and universities. [<-Struck out]

        [Struck out->]

        ‘(C) Programs of linkage or outreach with departments or agencies of Federal and State Governments. [<-Struck out]

        [Struck out->]

        ‘(D) Programs of linkage or outreach with the news media, business, professional, or trade associations. [<-Struck out]

        [Struck out->]

        ‘(E) Summer institutes in foreign area, foreign language, and other international fields designed to carry out the programs of linkage and outreach in subparagraphs (A), (B), (C), and (D). [<-Struck out]

    [Struck out->]

    ‘(b) STIPENDS FOR FOREIGN LANGUAGE AND AREA STUDIES- [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

      [Struck out->]

      ‘(2) REQUIREMENTS- 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. [<-Struck out]

      [Struck out->]

      ‘(3) 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. [<-Struck out]

    [Struck out->]

    ‘(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. [<-Struck out]

[Struck out->]
‘SEC. 603. LANGUAGE RESOURCE CENTERS. [<-Struck out]

    [Struck out->]

    ‘(a) 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. [<-Struck out]

    [Struck out->]

    ‘(b) AUTHORIZED ACTIVITIES- The activities carried out by the centers described in subsection (a)-- [<-Struck out]

      [Struck out->]

      ‘(1) shall include effective dissemination efforts, whenever appropriate; and [<-Struck out]

      [Struck out->]

      ‘(2) may include-- [<-Struck out]

        [Struck out->]

        ‘(A) the conduct and dissemination of research on new and improved teaching methods, including the use of advanced educational technology; [<-Struck out]

        [Struck out->]

        ‘(B) the development and dissemination of new teaching materials reflecting the use of such research in effective teaching strategies; [<-Struck out]

        [Struck out->]

        ‘(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; [<-Struck out]

        [Struck out->]

        ‘(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; [<-Struck out]

        [Struck out->]

        ‘(E) the publication and dissemination to individuals and organizations in the foreign language field of instructional materials in the less commonly taught languages; [<-Struck out]

        [Struck out->]

        ‘(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 [<-Struck out]

        [Struck out->]

        ‘(G) the operation of intensive summer language institutes to train advanced foreign language students, provide professional development, and improve language instruction through preservice and inservice language training for teachers. [<-Struck out]

    [Struck out->]

    ‘(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. [<-Struck out]

[Struck out->]
‘SEC. 604. UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN LANGUAGE PROGRAMS. [<-Struck out]

    [Struck out->]

    ‘(a) INCENTIVES FOR THE CREATION OF NEW PROGRAMS AND THE STRENGTHENING OF EXISTING PROGRAMS IN UNDERGRADUATE INTERNATIONAL STUDIES AND FOREIGN LANGUAGES- [<-Struck out]

      [Struck out->]

      ‘(1) AUTHORITY- The Secretary is authorized to make grants to institutions of higher education, combinations of such institutions, or partnerships between nonprofit educational institutions 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 area studies, foreign languages, and other international fields. [<-Struck out]

      [Struck out->]

      ‘(2) FEDERAL SHARE AND USE OF FUNDS- Grants made under this section may be used to pay not more than 50 percent of the cost of projects and activities which are an integral part of such a program, such as-- [<-Struck out]

        [Struck out->]

        ‘(A) planning for the development and expansion of undergraduate programs in international studies and foreign languages; [<-Struck out]

        [Struck out->]

        ‘(B) teaching, research, curriculum development, faculty training in the United States or abroad, and other related activities, including the expansion of library and teaching resources; [<-Struck out]

        [Struck out->]

        ‘(C) expansion of opportunities for learning foreign languages, including less commonly taught languages; [<-Struck out]

        [Struck out->]

        ‘(D) programs under which foreign teachers and scholars may visit institutions as visiting faculty; [<-Struck out]

        [Struck out->]

        ‘(E) programs designed to develop or enhance linkages between 2-year and 4-year institutions of higher education, or baccalaureate and post-baccalaureate programs or institutions; [<-Struck out]

        [Struck out->]

        ‘(F) the development of undergraduate study abroad programs in locations abroad in which such study opportunities are not otherwise available and the integration of these programs into specific on-campus degree programs; [<-Struck out]

        [Struck out->]

        ‘(G) the development of model programs to enhance the effectiveness of study abroad, including predeparture and post return programs; [<-Struck out]

        [Struck out->]

        ‘(H) the development of programs designed to integrate professional and technical education with area studies, foreign languages, and other international fields; [<-Struck out]

        [Struck out->]

        ‘(I) the conduct of summer institutes in foreign area, foreign language, and other international fields for purposes that are consistent with the projects and activities described in this subsection; and [<-Struck out]

        [Struck out->]

        ‘(J) the development of partnerships between institutions of higher education and the private sector, government, and elementary and secondary education institutions to enhance international knowledge. [<-Struck out]

      [Struck out->]

      ‘(3) NON-FEDERAL SHARE- The non-Federal share of the cost of the programs assisted under this subsection may be provided either in cash or in kind. Such assistance may be composed of institutional and noninstitutional funds, including State, private sector, corporation, or foundation contributions. [<-Struck out]

      [Struck out->]

      ‘(4) 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 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. [<-Struck out]

      [Struck out->]

      ‘(5) GRANT CONDITIONS- Grants under this subsection shall be made on such conditions as the Secretary determines to be necessary to carry out this subsection. [<-Struck out]

      [Struck out->]

      ‘(6) APPLICATION- Each application for assistance under this subsection shall include-- [<-Struck out]

        [Struck out->]

        ‘(A) evidence that the applicant has conducted extensive planning prior to submitting the application; [<-Struck out]

        [Struck out->]

        ‘(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; [<-Struck out]

        [Struck out->]

        ‘(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 [<-Struck out]

        [Struck out->]

        ‘(D) an assurance that each institution, combination or partnership will use the Federal assistance provided under this subsection to supplement and not supplant funds expended by the institution, prior to the receipt of the Federal assistance, for programs to improve undergraduate instruction in international studies and foreign languages. [<-Struck out]

      [Struck out->]

      ‘(7) 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. [<-Struck out]

    [Struck out->]

    ‘(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. [<-Struck out]

[Struck out->]
‘SEC. 605. RESEARCH; STUDIES; ANNUAL REPORT. [<-Struck out]

    [Struck out->]

    ‘(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-- [<-Struck out]

      [Struck out->]

      ‘(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; [<-Struck out]

      [Struck out->]

      ‘(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; [<-Struck out]

      [Struck out->]

      ‘(3) evaluation of the extent to which programs assisted under this title that address national needs would not otherwise be offered; [<-Struck out]

      [Struck out->]

      ‘(4) comparative studies of the effectiveness of strategies to provide international capabilities at institutions of higher education; [<-Struck out]

      [Struck out->]

      ‘(5) research on more effective methods of providing instruction and achieving competency in foreign languages; [<-Struck out]

      [Struck out->]

      ‘(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; [<-Struck out]

      [Struck out->]

      ‘(7) 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 [<-Struck out]

      [Struck out->]

      ‘(8) the application of performance tests and standards across all areas of foreign language instruction and classroom use. [<-Struck out]

    [Struck out->]

    ‘(b) ANNUAL REPORT- The Secretary shall prepare, publish, and announce an annual report listing the books and research materials produced with assistance under this section. [<-Struck out]

[Struck out->]
‘SEC. 606. SELECTION OF CERTAIN GRANT RECIPIENTS. [<-Struck out]

    [Struck out->]

    ‘(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. [<-Struck out]

    [Struck out->]

    ‘(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. [<-Struck out]

    [Struck out->]

    ‘(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. [<-Struck out]

[Struck out->]
‘SEC. 607. EQUITABLE DISTRIBUTION OF CERTAIN FUNDS. [<-Struck out]

    [Struck out->]

    ‘(a) SELECTION CRITERIA- The Secretary shall make excellence the criterion for selection of grants awarded under section 602. [<-Struck out]

    [Struck out->]

    ‘(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. [<-Struck out]

    [Struck out->]

    ‘(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. [<-Struck out]

[Struck out->]
‘SEC. 608. AMERICAN OVERSEAS RESEARCH CENTERS. [<-Struck out]

    [Struck out->]

    ‘(a) 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. [<-Struck out]

    [Struck out->]

    ‘(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-- [<-Struck out]

      [Struck out->]

      ‘(1) the cost of faculty and staff stipends and salaries; [<-Struck out]

      [Struck out->]

      ‘(2) the cost of faculty, staff, and student travel; [<-Struck out]

      [Struck out->]

      ‘(3) the cost of the operation and maintenance of overseas facilities; [<-Struck out]

      [Struck out->]

      ‘(4) the cost of teaching and research materials; [<-Struck out]

      [Struck out->]

      ‘(5) the cost of acquisition, maintenance, and preservation of library collections; [<-Struck out]

      [Struck out->]

      ‘(6) the cost of bringing visiting scholars and faculty to a center to teach or to conduct research; [<-Struck out]

      [Struck out->]

      ‘(7) the cost of organizing and managing conferences; and [<-Struck out]

      [Struck out->]

      ‘(8) the cost of publication and dissemination of material for the scholarly and general public. [<-Struck out]

    [Struck out->]

    ‘(c) LIMITATION- The Secretary shall only award grants to and enter into contracts with centers under this section that-- [<-Struck out]

      [Struck out->]

      ‘(1) receive more than 50 percent of their funding from public or private United States sources; [<-Struck out]

      [Struck out->]

      ‘(2) have a permanent presence in the country in which the center is located; and [<-Struck out]

      [Struck out->]

      ‘(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. [<-Struck out]

    [Struck out->]

    ‘(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). [<-Struck out]

[Struck out->]
‘SEC. 609. AUTHORIZATION OF APPROPRIATIONS. [<-Struck out]

    [Struck out->]

    ‘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.’. [<-Struck out]

[Struck out->] SEC. 602. BUSINESS AND INTERNATIONAL EDUCATION PROGRAMS. [<-Struck out]

    [Struck out->] Part B of title VI (20 U.S.C. 1130 et seq.) is amended-- [<-Struck out]

      [Struck out->] (1) in section 612 (20 U.S.C. 1130-1)-- [<-Struck out]

        [Struck out->] (A) in subsection (c)-- [<-Struck out]

          [Struck out->] (i) in paragraph (1)-- [<-Struck out]

            [Struck out->] (I) in subparagraph (B), by striking ‘advanced’; and [<-Struck out]

            [Struck out->] (II) in subparagraph (C), by striking ‘evening or summer’; and [<-Struck out]

          [Struck out->] (ii) in paragraph (2)(C), by inserting ‘foreign language,’ after ‘studies,’; and [<-Struck out]

        [Struck out->] (B) 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; and [<-Struck out]

      [Struck out->] (2) in section 614 (20 U.S.C. 1130b)-- [<-Struck out]

        [Struck out->] (A) in subsection (a), by striking ‘1993’ and inserting ‘1999’; and [<-Struck out]

        [Struck out->] (B) in subsection (b), by striking ‘1993’ and inserting ‘1999’. [<-Struck out]

[Struck out->] SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY. [<-Struck out]

    [Struck out->] Part C of title VI (20 U.S.C. 1131 et seq.) is amended-- [<-Struck out]

      [Struck out->] (1) in section 621(e) (20 U.S.C. 1131(e))-- [<-Struck out]

        [Struck out->] (A) by striking ‘one-fourth’ and inserting ‘one-half’; and [<-Struck out]

        [Struck out->] (B) by adding at the end the following: ‘The non-Federal contribution shall be made from private sector sources.’; [<-Struck out]

      [Struck out->] (2) by redesignating sections 622 through 627 (20 U.S.C. 1131a and 1131f) as sections 623 through 628, respectively; and [<-Struck out]

      [Struck out->] (3) by inserting after section 621 (20 U.S.C. 1131) the following: [<-Struck out]

[Struck out->]
‘SEC. 622. INSTITUTIONAL DEVELOPMENT. [<-Struck out]

    [Struck out->]

    ‘(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 community colleges, and minority institutions, to enable such colleges, universities, and institutions to strengthen international affairs programs. [<-Struck out]

    [Struck out->]

    ‘(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. [<-Struck out]

    [Struck out->]

    ‘(c) DEFINITIONS- In this section-- [<-Struck out]

      [Struck out->]

      ‘(1) the term ‘historically Black college and university’ has the meaning given the term in section 322; [<-Struck out]

      [Struck out->]

      ‘(2) the term ‘Hispanic-serving institution’ has the meaning given the term in section 316(b); [<-Struck out]

      [Struck out->]

      ‘(3) the term ‘tribally controlled community college’ has the meaning given the term in section 2 of the Tribally Controlled Community College Assistance Act of 1978 (25 U.S.C. 1801); and [<-Struck out]

      [Struck out->]

      ‘(4) the term ‘minority institution’ has the meaning given the term in section 1046.’; [<-Struck out]

      [Struck out->] (4) in section 623 (as redesignated by paragraph (2))-- [<-Struck out]

        [Struck out->] (A) in the section heading, by striking ‘junior year’ and inserting ‘study’; [<-Struck out]

        [Struck out->] (B) in subsection (b)(2)-- [<-Struck out]

          [Struck out->] (i) by inserting ‘, or completing the third year of study in the case of a summer abroad program,’ after ‘study’; and [<-Struck out]

          [Struck out->] (ii) by striking ‘junior year’ and inserting ‘study’; [<-Struck out]

        [Struck out->] (C) in subsection (c)-- [<-Struck out]

          [Struck out->] (i) in the matter preceding paragraph (1), by striking ‘junior year’ and inserting ‘study’; [<-Struck out]

          [Struck out->] (ii) in paragraph (1), by striking ‘junior year’ and inserting ‘study’; and [<-Struck out]

          [Struck out->] (iii) in paragraph (2)-- [<-Struck out]

            [Struck out->] (I) by striking ‘one-half’ and inserting ‘one-third’; and [<-Struck out]

            [Struck out->] (II) by striking ‘junior year’ and inserting ‘study’; [<-Struck out]

      [Struck out->] (5) in section 627 (as redesignated by paragraph (2)) (20 U.S.C. 1131e), by striking ‘625’ and inserting ‘626’; and [<-Struck out]

      [Struck out->] (6) in section 628 (as redesignated by paragraph (2)) (20 U.S.C. 1131f), by striking ‘1993’ and inserting ‘1999’. [<-Struck out]

[Struck out->] SEC. 604. GENERAL PROVISIONS. [<-Struck out]

    [Struck out->] Section 632 (20 U.S.C. 1132-1) is repealed. [<-Struck out]

[Struck out->]

TITLE VII--RELATED PROGRAMS AND AMENDMENTS TO OTHER ACTS

[<-Struck out]

[Struck out->] PART A--INDIAN EDUCATION PROGRAMS [<-Struck out]

[Struck out->] SEC. 711. TRIBALLY CONTROLLED COMMUNITY COLLEGE ASSISTANCE ACT OF 1978. [<-Struck out]

    [Struck out->] (a) REAUTHORIZATION- [<-Struck out]

      [Struck out->] (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’. [<-Struck out]

      [Struck out->] (2) AUTHORIZATION OF APPROPRIATIONS- [<-Struck out]

        [Struck out->] (A) TITLE I- Section 110(a) of the Tribally Controlled Community College Assistance Act of 1978 (25 U.S.C. 1810(a)) is amended-- [<-Struck out]

          [Struck out->] (i) in paragraph (1), by striking ‘1993’ and inserting ‘1999’; [<-Struck out]

          [Struck out->] (ii) in paragraph (2), by striking ‘$30,000,000 for fiscal year 1993’ and inserting ‘$40,000,000 for fiscal year 1999’; [<-Struck out]

          [Struck out->] (iii) in paragraph (3), by striking ‘1993’ and inserting ‘1999’; and [<-Struck out]

          [Struck out->] (iv) in paragraph (4), by striking ‘1993’ and inserting ‘1999’. [<-Struck out]

        [Struck out->] (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’. [<-Struck out]

        [Struck out->] (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’. [<-Struck out]

    [Struck out->] (b) NAME CHANGE- The Tribally Controlled Community College Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is amended-- [<-Struck out]

      [Struck out->] (1) by striking ‘community college’ each place the term appears and inserting ‘college or university’; [<-Struck out]

      [Struck out->] (2) by striking ‘Community College’ each place the term appears (other than when such term is preceded by the term ‘Navajo’) and inserting ‘College or University’; [<-Struck out]

      [Struck out->] (3) by striking ‘community colleges’ each place the term appears and inserting ‘colleges or universities’; [<-Struck out]

      [Struck out->] (4) by striking ‘such college’ each place the term appears and inserting ‘such college or university’; and [<-Struck out]

      [Struck out->] (5) by striking ‘community college’s’ and inserting ‘college or university’s’. [<-Struck out]

[Struck out->] SEC. 712. AMERICAN INDIAN, ALASKA NATIVE, AND NATIVE HAWAIIAN CULTURE AND ART DEVELOPMENT. [<-Struck out]

    [Struck out->] Section 1531 of the American Indian, Alaska Native, and Native Hawaiian Culture and Art Development Act (20 U.S.C. 4451) is amended to read as follows: [<-Struck out]

[Struck out->]
‘SEC. 1531. AUTHORIZATION OF APPROPRIATIONS. [<-Struck out]

    [Struck out->]

    ‘There is authorized to be appropriated to carry out part A $5,000,000 for fiscal year 1999.’. [<-Struck out]

[Struck out->] PART B--ADVANCED PLACEMENT INCENTIVE PROGRAM [<-Struck out]

[Struck out->] SEC. 721. ADVANCED PLACEMENT INCENTIVE PROGRAM. [<-Struck out]

    [Struck out->] (a) PROGRAM ESTABLISHED- The Secretary of Education is authorized to make grants to States having applications approved under subsection (d), from allotments under subsection (b), 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-- [<-Struck out]

      [Struck out->] (1) are enrolled in an advanced placement class; and [<-Struck out]

      [Struck out->] (2) plan to take an advanced placement test. [<-Struck out]

    [Struck out->] (b) ALLOTMENT- From the sum appropriated under subsection (j) for a fiscal year, the Secretary shall allot to each State an amount that bears the same relation to the sum as the number of low-income individuals in the State bears to the number of low-income individuals in all States. [<-Struck out]

    [Struck out->] (c) INFORMATION DISSEMINATION- The State educational agency may use not more than 5 percent of grant funds received for a fiscal year to disseminate information regarding the availability of test fee payments under this section to eligible individuals through secondary school teachers and guidance counselors. [<-Struck out]

    [Struck out->] (d) REQUIREMENTS FOR APPROVAL OF APPLICATIONS- In approving applications for grants the Secretary of Education shall-- [<-Struck out]

      [Struck out->] (1) require that each such application contain a description of the advance placement test fees the State will pay on behalf of individual students; [<-Struck out]

      [Struck out->] (2) require an assurance that any funds received under this section, other than funds used in accordance with subsection (c), shall be used only to pay advanced placement test fees; and [<-Struck out]

      [Struck out->] (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.). [<-Struck out]

    [Struck out->] (e) FUNDING RULE- Funds provided under this section shall be used to supplement and not supplant other Federal, State, local or private funds available to assist low-income individuals in paying for advanced placement testing, except that such funds may be used to supplant the funds so available if the funds used to supplant are used to increase the participation of low-income individuals in advanced placement courses through teacher training and other activities directly related to increasing the availability of advanced placement courses. [<-Struck out]

    [Struck out->] (f) SPECIAL RULE- The Secretary of Education shall only award grants under this section for a fiscal year if the amount the College Board spends for the College Board’s fee assistance program for low-income students for the fiscal year is not less than the amount the College Board spent for such program for the preceding fiscal year. [<-Struck out]

    [Struck out->] (g) REGULATIONS- The Secretary of Education shall prescribe such regulations as are necessary to carry out this section. [<-Struck out]

    [Struck out->] (h) REPORT- Each State annually shall report to the Secretary of Education regarding-- [<-Struck out]

      [Struck out->] (1) the number of low-income individuals in the State who receive assistance under this section; and [<-Struck out]

      [Struck out->] (2) the teacher training and other activities described in subsection (e). [<-Struck out]

    [Struck out->] (i) DEFINITION- In this section: [<-Struck out]

      [Struck out->] (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. [<-Struck out]

      [Struck out->] (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)). [<-Struck out]

    [Struck out->] (j) AUTHORIZATION OF APPROPRIATIONS- 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 to carry out this section. [<-Struck out]

[Struck out->] PART C--INSTITUTE FOR PEACE [<-Struck out]

[Struck out->] SEC. 731. AUTHORITIES OF THE UNITED STATES INSTITUTE OF PEACE. [<-Struck out]

    [Struck out->] The United States Institute of Peace Act (22 U.S.C. 4601 et seq.) is amended-- [<-Struck out]

      [Struck out->] (1) in section 1705 (22 U.S.C. 4604)-- [<-Struck out]

        [Struck out->] (A) in subsection (f), by inserting ‘personal service and other’ after ‘may enter into’; and [<-Struck out]

        [Struck out->] (B) in subsection (o), by inserting after ‘Services’ the following: ‘and use all sources of supply and services of the General Services Administration’; [<-Struck out]

      [Struck out->] (2) in section 1706(e)(4) (22 U.S.C. 4605(e)(4)), by adding at the end the following: ‘Service under an appointment of less than 4 years shall not be treated as a term for purposes of this paragraph.’; [<-Struck out]

      [Struck out->] (3) in section 1710(a)(1) (22 U.S.C. 4609(a)(1)), by striking ‘1993’ and inserting ‘1999’; and [<-Struck out]

      [Struck out->] (4) in the second and third sentences of section 1712 (22 U.S.C. 4611), by striking ‘shall’ each place it appears and inserting ‘may’. [<-Struck out]

[Struck out->] PART D--COMMUNITY SCHOLARSHIP MOBILIZATION [<-Struck out]

[Struck out->] SEC. 741. SHORT TITLE. [<-Struck out]

    [Struck out->] This part may be cited as the ‘Community Scholarship Mobilization Act.’ [<-Struck out]

[Struck out->] SEC. 742. FINDINGS. [<-Struck out]

    [Struck out->] Congress finds that-- [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (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 [<-Struck out]

      [Struck out->] (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. [<-Struck out]

[Struck out->] SEC. 743. DEFINITIONS. [<-Struck out]

    [Struck out->] In this part: [<-Struck out]

      [Struck out->] (1) REGIONAL, STATE OR COMMUNITY PROGRAM CENTER- The term ‘regional, State or community program center’ means an organization that-- [<-Struck out]

        [Struck out->] (A) is a division of, responsible to, and overseen by, the national organization; and [<-Struck out]

        [Struck out->] (B) is staffed by professionals trained to create, develop, and sustain local entities in towns, cities, and neighborhoods. [<-Struck out]

      [Struck out->] (2) LOCAL ENTITY- The term ‘local entity’ means an organization that-- [<-Struck out]

        [Struck out->] (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); [<-Struck out]

        [Struck out->] (B) is formed for the purpose of providing educational scholarships and academic support for residents of the local community served by such organization; [<-Struck out]

        [Struck out->] (C) solicits broad-based community support in its academic support and fund-raising activities; [<-Struck out]

        [Struck out->] (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, such as school or college personnel, parents, students, community agency representatives, retirees, and representatives of the business community; [<-Struck out]

        [Struck out->] (E) awards scholarships without regard to age, sex, marital status, race, creed, color, religion, national origin or disability; and [<-Struck out]

        [Struck out->] (F) gives priority to awarding scholarships for postsecondary education to deserving students from low-income families in the local community. [<-Struck out]

      [Struck out->] (3) NATIONAL ORGANIZATION- The term ‘national organization’ means an organization that-- [<-Struck out]

        [Struck out->] (A) has the capacity to create, develop and sustain local entities and affiliated regional, State or community program centers; [<-Struck out]

        [Struck out->] (B) has the capacity to sustain newly created local entities in towns, cities, and neighborhoods through ongoing training support programs; [<-Struck out]

        [Struck out->] (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; [<-Struck out]

        [Struck out->] (D) is a publicly supported organization within the meaning of section 170(b)(1)(A)(iv) of such Code; [<-Struck out]

        [Struck out->] (E) ensures that each of the organization’s local entities meet the criteria described in subparagraphs (C) and (D); and [<-Struck out]

        [Struck out->] (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. [<-Struck out]

      [Struck out->] (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. [<-Struck out]

      [Struck out->] (5) 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). [<-Struck out]

[Struck out->] SEC. 744. PURPOSE, ENDOWMENT GRANT AUTHORITY. [<-Struck out]

    [Struck out->] (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-- [<-Struck out]

      [Struck out->] (1) providing academic support, including guidance, counseling, mentoring, tutoring, and recognition; and [<-Struck out]

      [Struck out->] (2) providing scholarship assistance for the cost of postsecondary education. [<-Struck out]

    [Struck out->] (b) ENDOWMENT GRANT AUTHORITY- From the funds appropriated pursuant to the authority of section 746, the Secretary shall award an endowment grant, on a competitive basis, to a national organization to enable such organization to support the establishment or ongoing work of regional, State or community program centers that foster the development of local entities in high poverty areas to improve high school graduation rates and postsecondary attendance through the provision of academic support services and scholarship assistance for the cost of postsecondary education. [<-Struck out]

[Struck out->] SEC. 745. GRANT AGREEMENT AND REQUIREMENTS. [<-Struck out]

    [Struck out->] (a) IN GENERAL- The Secretary shall award one or more endowment grants described in section 744(b) pursuant to an agreement between the Secretary and a national organization. Such agreement shall-- [<-Struck out]

      [Struck out->] (1) require the 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); [<-Struck out]

      [Struck out->] (2) require the 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; [<-Struck out]

      [Struck out->] (3) require the 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; [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (5) require the 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-- [<-Struck out]

        [Struck out->] (A) a description of the programs and activities supported by the interest on the endowment fund; [<-Struck out]

        [Struck out->] (B) the audited financial statement of the national organization for the preceding fiscal year; [<-Struck out]

        [Struck out->] (C) a plan for the programs and activities to be supported by the interest on the endowment fund as the Secretary may require; and [<-Struck out]

        [Struck out->] (D) an evaluation of the programs and activities supported by the interest on the endowment fund as the Secretary may require; and [<-Struck out]

        [Struck out->] (E) data indicating the number of students from low-income families who receive scholarships from local entities, and the amounts of such scholarships; [<-Struck out]

      [Struck out->] (6) contain such assurances as the Secretary may require with respect to the management and operation of the endowment fund; and [<-Struck out]

      [Struck out->] (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 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. [<-Struck out]

    [Struck out->] (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.). [<-Struck out]

[Struck out->] SEC. 746. AUTHORIZATION OF APPROPRIATIONS. [<-Struck out]

    [Struck out->] There are authorized to be appropriated to carry out this part $10,000,000 for fiscal year 2000. [<-Struck out]

[Struck out->] PART E--GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION TRAINING FOR INCARCERATED YOUTH OFFENDERS [<-Struck out]

[Struck out->] SEC. 751. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION TRAINING FOR INCARCERATED YOUTH OFFENDERS. [<-Struck out]

    [Struck out->] (a) FINDINGS- Congress makes the following findings: [<-Struck out]

      [Struck out->] (1) Over 150,000 youth offenders age 21 and younger are incarcerated in the Nation’s jails, juvenile facilities, and prisons. [<-Struck out]

      [Struck out->] (2) Most youth offenders who are incarcerated have been sentenced as first-time adult felons. [<-Struck out]

      [Struck out->] (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. [<-Struck out]

      [Struck out->] (4) The average incarcerated youth has attended school only through grade 10. [<-Struck out]

      [Struck out->] (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. [<-Struck out]

      [Struck out->] (6) If not involved with educational programs while incarcerated, almost all of these youths will return to a life of crime upon release. [<-Struck out]

      [Struck out->] (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. [<-Struck out]

      [Struck out->] (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. [<-Struck out]

      [Struck out->] (9) Research consistently shows that the vast majority of incarcerated youths will not return to the public schools to complete their education. [<-Struck out]

      [Struck out->] (10) There is a need for alternative educational opportunities during incarceration and after release. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (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 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. [<-Struck out]

    [Struck out->] (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-- [<-Struck out]

      [Struck out->] (1) identifies the scope of the problem, including the number of incarcerated youths in need of postsecondary education and vocational training; [<-Struck out]

      [Struck out->] (2) lists the accredited public or private educational institution or institutions that will provide postsecondary educational services; [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (4) describes the evaluation methods and performance measures that the State correctional education agency will employ, which methods and measures-- [<-Struck out]

        [Struck out->] (A) shall be appropriate to meet the goals and objectives of the proposal; and [<-Struck out]

        [Struck out->] (B) shall include measures of-- [<-Struck out]

          [Struck out->] (i) program completion; [<-Struck out]

          [Struck out->] (ii) student academic and vocational skill attainment; [<-Struck out]

          [Struck out->] (iii) success in job placement and retention; and [<-Struck out]

          [Struck out->] (iv) recidivism; [<-Struck out]

      [Struck out->] (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; [<-Struck out]

      [Struck out->] (6) addresses the educational needs of youth offenders who are in alternative programs (such as boot camps); and [<-Struck out]

      [Struck out->] (7) describes how students will be selected so that only youth offenders eligible under subsection (f) will be enrolled in postsecondary programs. [<-Struck out]

    [Struck out->] (e) PROGRAM REQUIREMENTS- Each State correctional education agency receiving a grant under this section shall-- [<-Struck out]

      [Struck out->] (1) integrate activities carried out under the grant with the objectives and activities of the school-to-work programs of such State, including-- [<-Struck out]

        [Struck out->] (A) work experience or apprenticeship programs; [<-Struck out]

        [Struck out->] (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; [<-Struck out]

        [Struck out->] (C) placement services in occupations that the students are preparing to enter; [<-Struck out]

        [Struck out->] (D) employment-based learning programs; and [<-Struck out]

        [Struck out->] (E) programs that address State and local labor shortages; [<-Struck out]

      [Struck out->] (2) annually report to the Secretary and the Attorney General on the results of the evaluations conducted using the methods and performance measures contained in the proposal; and [<-Struck out]

      [Struck out->] (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. [<-Struck out]

    [Struck out->] (f) STUDENT ELIGIBILITY- A youth offender shall be eligible for participation in a program receiving a grant under this section if the youth offender-- [<-Struck out]

      [Struck out->] (1) is eligible to be released within 5 years (including a youth offender who is eligible for parole within such time); and [<-Struck out]

      [Struck out->] (2) is 25 years of age or younger. [<-Struck out]

    [Struck out->] (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. Educational and related services shall start during the period of incarceration in prison or prerelease and may continue during the period of parole. [<-Struck out]

    [Struck out->] (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. [<-Struck out]

    [Struck out->] (i) ALLOCATION OF FUNDS- From the amounts appropriated pursuant to subsection (j), 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. [<-Struck out]

    [Struck out->] (j) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this section $14,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years. [<-Struck out]

[Struck out->] PART F--EDUCATION OF THE DEAF [<-Struck out]

[Struck out->] SEC. 761. SHORT TITLE. [<-Struck out]

    [Struck out->] This part may be cited as the ‘Education of the Deaf Amendments of 1998’. [<-Struck out]

[Struck out->] SEC. 762. ELEMENTARY AND SECONDARY EDUCATION PROGRAMS. [<-Struck out]

    [Struck out->] Section 104(b) of the Education of the Deaf Act of 1986 (20 U.S.C. 4034(b)) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (1)-- [<-Struck out]

        [Struck out->] (A) in subparagraph (A), by inserting ‘and’ after the semicolon; [<-Struck out]

        [Struck out->] (B) in subparagraph (B), by striking ‘; and’ and inserting a period; and [<-Struck out]

        [Struck out->] (C) by striking subparagraph (C); [<-Struck out]

      [Struck out->] (2) in the matter preceding subparagraph (A) of paragraph (2)-- [<-Struck out]

        [Struck out->] (A) by striking ‘paragraph (1)’ and inserting ‘paragraph (1)(B)’; and [<-Struck out]

        [Struck out->] (B) by striking ‘section 618(b)’ and inserting ‘section 618(a)(1)(A)’; [<-Struck out]

      [Struck out->] (3) in paragraph (3), by striking ‘intermediate educational unit’ and inserting ‘educational service agency’; [<-Struck out]

      [Struck out->] (4) in paragraph (4)-- [<-Struck out]

        [Struck out->] (A) in subparagraph (A), by striking ‘intermediate educational unit’ and inserting ‘educational service agency’; and [<-Struck out]

        [Struck out->] (B) in subparagraph (B), by striking ‘intermediate educational units’ and inserting ‘educational service agencies’; and [<-Struck out]

      [Struck out->] (5) by amending subparagraph (C) to read as follows: [<-Struck out]

        [Struck out->]

        ‘(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: [<-Struck out]

          [Struck out->]

          ‘(i) paragraphs (1), and (3) through (6), of subsection (b). [<-Struck out]

          [Struck out->]

          ‘(ii) Subsections (c) through (g). [<-Struck out]

          [Struck out->]

          ‘(iii) Subsection (h), except for the matter in paragraph (4) pertaining to transmission of findings and decisions to a State advisory panel. [<-Struck out]

          [Struck out->]

          ‘(iv) Paragraphs (1) and (2) of subsection (i). [<-Struck out]

          [Struck out->]

          ‘(v) Subsection (j)-- [<-Struck out]

            [Struck out->]

            ‘(I) except that such subsection shall not be applicable to a decision by the University to refuse to admit a child; or [<-Struck out]

            [Struck out->]

            ‘(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). [<-Struck out]

          [Struck out->]

          ‘(vi) Subsections (k) through (m).’. [<-Struck out]

[Struck out->] SEC. 763. AGREEMENT WITH GALLAUDET UNIVERSITY. [<-Struck out]

    [Struck out->] Section 105(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 4305(a)) is amended-- [<-Struck out]

      [Struck out->] (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 [<-Struck out]

      [Struck out->] (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.’. [<-Struck out]

[Struck out->] SEC. 764. AGREEMENT FOR THE NATIONAL TECHNICAL INSTITUTE FOR THE DEAF. [<-Struck out]

    [Struck out->] 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: [<-Struck out]

    [Struck out->]

    ‘(2) The Secretary and the institution of higher education with which the Secretary has an agreement under this section-- [<-Struck out]

      [Struck out->]

      ‘(A) shall periodically assess the need for modification of the agreement; and [<-Struck out]

      [Struck out->]

      ‘(B) shall periodically update the agreement as determined necessary by the Secretary or the institution.’. [<-Struck out]

[Struck out->] SEC. 765. DEFINITIONS. [<-Struck out]

    [Struck out->] Section 201 of the Education of the Deaf Act of 1986 (20 U.S.C. 4351) is amended-- [<-Struck out]

      [Struck out->] (1) in paragraph (1)(C), by striking ‘Palau (but only until the Compact of Free Association with Palau takes effect),’; and [<-Struck out]

      [Struck out->] (2) in paragraph (5)-- [<-Struck out]

        [Struck out->] (A) by inserting ‘and’ after ‘Virgin Islands,’; and [<-Struck out]

        [Struck out->] (B) by striking ‘, and Palau (but only until the Compact of Free Association with Palau takes effect)’. [<-Struck out]

[Struck out->] SEC. 766. GIFTS. [<-Struck out]

    [Struck out->] 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: [<-Struck out]

    [Struck out->]

    ‘(b) INDEPENDENT FINANCIAL AND COMPLIANCE AUDIT- [<-Struck out]

      [Struck out->]

      ‘(1) 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. [<-Struck out]

      [Struck out->]

      ‘(2) COMPLIANCE- As used in paragraph (1), compliance means compliance with sections 102(b), 105(b)(4), 112(b)(5), 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. [<-Struck out]

      [Struck out->]

      ‘(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.’. [<-Struck out]

[Struck out->] SEC. 767. REPORTS. [<-Struck out]

    [Struck out->] Section 204(3) of the Education of the Deaf Act of 1986 (20 U.S.C. 4354(3)) is amended-- [<-Struck out]

      [Struck out->] (1) in subparagraph (A), by striking ‘The annual’ and inserting ‘A summary of the annual’; and [<-Struck out]

      [Struck out->] (2) in subparagraph (B), by striking ‘the annual’ and inserting ‘a summary of the annual’. [<-Struck out]

[Struck out->] SEC. 768. MONITORING, EVALUATION, AND REPORTING. [<-Struck out]

    [Struck out->] 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’. [<-Struck out]

[Struck out->] SEC. 769. INVESTMENTS. [<-Struck out]

    [Struck out->] Section 207 of the Education of the Deaf Act of 1986 (20 U.S.C. 4357) is amended-- [<-Struck out]

      [Struck out->] (1) in subsection (c)(1), by inserting ‘the Federal contribution of’ after ‘shall invest’; [<-Struck out]

      [Struck out->] (2) in subsection (d)(3)(A), by striking ‘prior’ and inserting ‘current’; and [<-Struck out]

      [Struck out->] (3) in subsection (h)-- [<-Struck out]

        [Struck out->] (A) in paragraph (1), by striking ‘1993 through 1997’ and inserting ‘1998 through 2003’; and [<-Struck out]

        [Struck out->] (B) in paragraph (2), by striking ‘1993 through 1997’ and inserting ‘1998 through 2003’. [<-Struck out]

[Struck out->] SEC. 770. INTERNATIONAL STUDENTS. [<-Struck out]

    [Struck out->] Section 210(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 4359a(a)) is amended by inserting before the period ‘, 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’. [<-Struck out]

[Struck out->] SEC. 771. RESEARCH PRIORITIES. [<-Struck out]

    [Struck out->] Section 211 of the Education of the Deaf Act of 1986 (20 U.S.C. 4360) is amended to read as follows: [<-Struck out]

[Struck out->]
‘SEC. 211. RESEARCH PRIORITIES. [<-Struck out]

    [Struck out->]

    ‘(a) RESEARCH PRIORITIES- Gallaudet University and the National Technical Institute for the Deaf shall each establish and disseminate priorities, 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. [<-Struck out]

    [Struck out->]

    ‘(b) 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-- [<-Struck out]

      [Struck out->]

      ‘(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 [<-Struck out]

      [Struck out->]

      ‘(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.’. [<-Struck out]

[Struck out->] SEC. 772. AUTHORIZATION OF APPROPRIATIONS. [<-Struck out]

    [Struck out->] Title II of the Education of the Deaf Act of 1986 (20 U.S.C. 4351 et seq.) is amended by adding at the end the following: [<-Struck out]

[Struck out->]
‘SEC. 212. AUTHORIZATION OF APPROPRIATIONS. [<-Struck out]

    [Struck out->]

    ‘(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 titles I and II, relating to-- [<-Struck out]

      [Struck out->]

      ‘(1) Gallaudet University; [<-Struck out]

      [Struck out->]

      ‘(2) Kendall Demonstration Elementary School; and [<-Struck out]

      [Struck out->]

      ‘(3) the Model Secondary School for the Deaf. [<-Struck out]

    [Struck out->]

    ‘(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 titles I and II relating to the National Technical Institute for the Deaf.’. [<-Struck out]

[Struck out->] SEC. 773. COMMISSION ON EDUCATION OF THE DEAF. [<-Struck out]

    [Struck out->] The Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.) is amended by adding at the end the following: [<-Struck out]

[Struck out->]

‘TITLE III--COMMISSION ON EDUCATION OF THE DEAF

[<-Struck out]

[Struck out->]
‘SEC. 301. COMMISSION ESTABLISHED. [<-Struck out]

    [Struck out->]

    ‘(a) ESTABLISHMENT- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- The Secretary shall establish a Commission on the Education of the Deaf to identify those education-related factors in the lives of individuals who are deaf that result in barriers to successful postsecondary education experiences and employment, and those education-related factors in the lives of individuals who are deaf that contribute to successful postsecondary education experiences and employment. [<-Struck out]

      [Struck out->]

      ‘(2) DEFINITION OF INDIVIDUALS WHO ARE DEAF- In this title, the term ‘individuals who are deaf’ means all persons with hearing impairments, including those who are hard-of-hearing, those deafened later in life, and those who are profoundly deaf. [<-Struck out]

    [Struck out->]

    ‘(b) COMPOSITION- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- The Commission shall be composed of 13 members appointed by the Secretary from recommendations made by the National Association of the Deaf, the American Society for Deaf Children, the Alexander Graham Bell Association, the President of Gallaudet, the Vice President of the National Technical Institute for the Deaf, State Schools for the Deaf, projects to train teachers of the deaf funded under section 673(b) of the Individuals with Disabilities Education Act, parent training and information centers funded under section 682 of such Act, the Regional Centers on Postsecondary Education for Individuals who are Deaf funded [<-Struck out]

[Struck out->] under section 672 of such Act, Self-Help for Hard of Hearing People, and the Cothe Council on Education of the Deaf. [<-Struck out]

      [Struck out->]

      ‘(2) QUALIFICATIONS- [<-Struck out]

        [Struck out->]

        ‘(A) IN GENERAL- Members of the Commission shall be appointed from among individuals who have broad experience and expertise in deafness, program evaluation, education, rehabilitation, and job training generally, which expertise and experience shall be directly relevant to the issues to be addressed by the Commission. [<-Struck out]

        [Struck out->]

        ‘(B) DEAF INDIVIDUALS- At least 1/3 of members of the Commission shall be individuals who are deaf. [<-Struck out]

        [Struck out->]

        ‘(C) CHAIRPERSON- The chairperson of the Commission shall be elected by a simple majority of the Commission. [<-Struck out]

        [Struck out->]

        ‘(D) ASSISTANT SECRETARY- One member of the Commission shall be the Assistant Secretary for Special Education and Rehabilitative Services. [<-Struck out]

      [Struck out->]

      ‘(3) DATE- Members of the Commission shall be appointed not later than 90 days after the date of enactment of the Education of the Deaf Amendments of 1998. [<-Struck out]

[Struck out->]
‘SEC. 302. DUTIES, REPORT, AND DURATION OF THE COMMISSION. [<-Struck out]

    [Struck out->]

    ‘(a) IDENTIFICATION OF FACTORS- The Commission shall identify, with respect to individuals who are deaf, factors that pose barriers to or factors that facilitate-- [<-Struck out]

      [Struck out->]

      ‘(1) educational performance and progress of students who are deaf in high school; [<-Struck out]

      [Struck out->]

      ‘(2) educational performance and progress of students who are deaf in postsecondary education; [<-Struck out]

      [Struck out->]

      ‘(3) career exploration and selection; [<-Struck out]

      [Struck out->]

      ‘(4) job performance and satisfaction in initial postsecondary employment; and [<-Struck out]

      [Struck out->]

      ‘(5) career advancement and satisfaction. [<-Struck out]

    [Struck out->]

    ‘(b) REPORT- The Commission shall report to the President and Congress such interim reports that the Commission deems appropriate, and not later than 18 months after the date of enactment of the Education of the Deaf Amendments of 1998, a final report containing the findings of the Commission with respect to the factors identified under subsection (a). The final report shall include recommendations, including legislative proposals, that the Commission deems advisable. [<-Struck out]

    [Struck out->]

    ‘(c) TERMINATION- The Commission shall terminate 90 days after the date on which the Commission submits the Commission’s final report described in subsection (b). [<-Struck out]

[Struck out->]
‘SEC. 303. ADMINISTRATIVE PROVISIONS. [<-Struck out]

    [Struck out->]

    ‘(a) PERSONNEL- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- The Commission may appoint such personnel, including a staff director, as the Commission deems necessary without regard to the provisions of title 5, United States Code, except that the rate pay for any employee of the Commission may not exceed the rate payable for level V of the Executive Schedule under section 5316 of title 5, United States Code. [<-Struck out]

      [Struck out->]

      ‘(2) 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 which 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. [<-Struck out]

    [Struck out->]

    ‘(b) HEARINGS; QUORUM- [<-Struck out]

      [Struck out->]

      ‘(1) HEARINGS- The Commission or, with the authorization of the Commission, any committee of the Commission, may, for the purpose of carrying out the provisions of this title, hold such hearings, sit, and act at such times and such places in the United States as the Commission or such committee may deem advisable. [<-Struck out]

      [Struck out->]

      ‘(2) QUORUM- Seven members of the Commission shall constitute a quorum, but 2 or more members may conduct hearings. [<-Struck out]

      [Struck out->]

      ‘(3) HEARINGS AND PUBLIC INPUT- In conducting hearings and acquiring public input under this title, the Commission may use various telecommunications media, including teleconferencing, video-conferencing, the Internet, and other media. [<-Struck out]

    [Struck out->]

    ‘(c) CONSULTATION; INFORMATION AND STATISTICS; AGENCY COOPERATION- [<-Struck out]

      [Struck out->]

      ‘(1) IN GENERAL- In carrying out the Commission’s duties under this title and to the extent not prohibited by Federal law, the Commission is authorized to secure consultation, information, statistics, and cooperation from Federal agencies, entities funded by the Federal Government, and other entities the Commission deems advisable. [<-Struck out]

      [Struck out->]

      ‘(2) SPECIAL RULE- The Commission is authorized to use, with their consent, the services, personnel, information, and facilities of other Federal, [<-Struck out]

[Struck out->] State, local, and private agencies with or without reimbursement. [<-Struck out]

[Struck out->]
‘SEC. 304. COMPENSATION OF MEMBERS. [<-Struck out]

    [Struck out->]

    ‘(a) UNITED STATES OFFICER AND EMPLOYEE MEMBERS- Members of the Commission who are officers or full-time 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; but may 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. [<-Struck out]

    [Struck out->]

    ‘(b) PUBLIC MEMBERS- Members of the Commission who are not officers or full-time employees of the United States shall receive compensation at a rate that does not exceed the daily rate payable for level V of the Executive Schedule under section 5316 of title 5, United States Code, for each day (including travel time) during which such members are engaged in the actual performance of the duties of the Commission. In addition, such members may 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. [<-Struck out]

[Struck out->]
‘SEC. 305. AUTHORIZATIONS OF APPROPRIATIONS. [<-Struck out]

    [Struck out->]

    ‘There is authorized to be appropriated to carry out this title such sums as may be necessary for each of the fiscal years 1999 and 2000.’. [<-Struck out]

[Struck out->] PART G--REPEALS [<-Struck out]

[Struck out->] SEC. 781. REPEALS. [<-Struck out]

    [Struck out->] (a) HIGHER EDUCATION ACT OF 1965- The following provisions of the Act (20 U.S.C. 1001 et seq.) are repealed: [<-Struck out]

      [Struck out->] (1) The heading for, sections 701 and 702 of, and parts A, C, D, and E of, title VII (20 U.S.C. 1132a, 1132a-1, 1132b et seq., 1132d et seq., 1132f et seq., and 1132i et seq.). [<-Struck out]

      [Struck out->] (2) Title VIII (20 U.S.C. 1133 et seq.). [<-Struck out]

      [Struck out->] (3) The heading for, section 901 of, and parts A, B, E, F, and G of, title IX (20 U.S.C. 1134, 1134a et seq., 1134d et seq., 1134r et seq., 20 U.S.C. 1134s et seq., and 1134u et seq.). [<-Struck out]

      [Struck out->] (4) The heading for, subpart 2 of part B of, and parts C, D and E of, title X (20 U.S.C. 1135c et seq., 1135e et seq., 1135f, and 1135g et seq.). [<-Struck out]

      [Struck out->] (5) The heading for, and part B of, title XI (20 U.S.C. 1137 et seq.). [<-Struck out]

    [Struck out->] (b) HIGHER EDUCATION AMENDMENTS OF 1992- The following provisions of the Higher Education Amendments of 1992 (Public Law 102-325; 106 Stat 448) are repealed: [<-Struck out]

      [Struck out->] (1) Parts E, F, and G of title XIII of the Higher Education Amendments of 1992 (25 U.S.C. 3332 et seq., 3351 et seq., 3371) are repealed. [<-Struck out]

      [Struck out->] (2) Title XIV. [<-Struck out]

      [Struck out->] (3) Title XV. [<-Struck out]

[Struck out->] PART H--MISCELLANEOUS [<-Struck out]

[Struck out->] SEC. 791. YEAR 2000 COMPUTER PROBLEM. [<-Struck out]

    [Struck out->] (a) SENSE OF CONGRESS- With the year 2000 fast approaching, it is the sense of Congress that the Department of Education should-- [<-Struck out]

      [Struck out->] (1) assess immediately the extent of the risk to the operations of the student financial aid system posed by the year 2000 computer problem; [<-Struck out]

      [Struck out->] (2) give the highest priority to correcting all 2-digit date-related problems in the Department’s computer systems to ensure that those systems continue to operate effectively in the year 2000 and beyond; and [<-Struck out]

      [Struck out->] (3) develop contingency plans, with respect to the year 2000 computer problem, for those computer systems that the Department is unable to correct in time. [<-Struck out]

    [Struck out->] (b) REPORT REQUIRED- Not later than March 1, 1999, the Secretary of Education shall provide 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 describing the compliance status of all mission critical systems at the Department, and contingency plans for those computer systems in the Department that the Department will be unable to correct in time, with respect to the year 2000 computer problem. [<-Struck out]

SECTION 1. 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.

TITLE I--GENERAL PROVISIONS

      Sec. 101. General provisions.

      Sec. 102. Federal control of education prohibited.

      Sec. 103. National Advisory Committee on Institutional Quality and Integrity.

      Sec. 104. Prior rights and obligations; recovery of payments.

      Sec. 105. Technical and conforming amendments.

TITLE II--IMPROVING TEACHER QUALITY

      Sec. 201. Improving teacher quality.

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 in Attendance at Institutions of Higher Education

      Sec. 411. Repeals and redesignations.

      Sec. 412. Federal Pell grants.

      Sec. 413. TRIO programs.

      Sec. 414. National early intervention scholarship and partnership program.

      Sec. 415. Federal supplemental educational opportunity grants.

      Sec. 416. Leveraging educational assistance partnership program.

      Sec. 417. HEP and CAMP.

      Sec. 418. Robert C. Byrd honors scholarship program.

      Sec. 419. Child care access means parents in school.

Part B--Federal Family Education Loan Program

      Sec. 421. Advances for reserve funds.

      Sec. 422. Federal Student Loan Reserve Fund.

      Sec. 423. Agency Operating Fund.

      Sec. 424. Applicable interest rates.

      Sec. 425. Federal payments to reduce student interest costs.

      Sec. 426. Voluntary flexible agreements with guaranty agencies.

      Sec. 427. Federal PLUS loans.

      Sec. 428. Federal consolidation loans.

      Sec. 429. Requirements for disbursements of student loans.

      Sec. 430. Default reduction program.

      Sec. 431. Unsubsidized loans.

      Sec. 432. Loan forgiveness for teachers.

      Sec. 433. Loan forgiveness for child care providers.

      Sec. 434. Common forms and formats.

      Sec. 435. Student loan information by eligible lenders.

      Sec. 436. Definitions.

      Sec. 437. Delegation of functions.

      Sec. 438. Special allowances.

      Sec. 439. Study of market-based mechanisms for determining student loan interest rates.

Part C--Federal Work-Study Programs

      Sec. 441. Authorization of appropriations; community services.

      Sec. 442. Grants for Federal work-study programs.

      Sec. 443. 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. 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. Distribution of assets from student loan funds.

      Sec. 466. Perkins Loan Revolving Fund.

Part F--Need Analysis

      Sec. 471. Cost of attendance.

      Sec. 472. Family contribution for dependent students.

      Sec. 473. Family contribution for independent students without dependents other than a spouse.

      Sec. 474. Regulations; updated tables and amounts.

      Sec. 475. Refusal or adjustment of loan certifications.

Part G--General Provisions

      Sec. 481. Master calendar.

      Sec. 482. Forms and regulations.

      Sec. 483. Student eligibility.

      Sec. 484. Institutional refunds.

      Sec. 485. Institutional and financial assistance information for students.

      Sec. 486. National student loan data bank system.

      Sec. 487. Training in financial aid services.

      Sec. 488. Program participation agreements.

      Sec. 489. Regulatory relief and improvement.

      Sec. 489A. Distance education demonstration programs.

      Sec. 489B. Advisory Committee on Student Financial Assistance.

      Sec. 489C. Regional meetings and negotiated rulemaking.

Part H--Program Integrity Triad

      Sec. 491. State role and responsibilities.

      Sec. 492. Accrediting agency recognition.

      Sec. 493. Eligibility and certification procedures.

      Sec. 494. Program review and data.

Part I--Administrative Provisions for Delivery of Student Financial Assistance

      Sec. 495. Performance-based organization for the delivery of Federal student financial assistance.

TITLE V--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

      Sec. 501. Repeals, transfers, and redesignations.

      Sec. 502. Purpose.

Part A--Jacob K. Javits Fellowship Program

      Sec. 511. Award of fellowships.

Part B--Graduate Assistance in Areas of National Need

      Sec. 521. Graduate assistance in areas of national need.

Part C--Urban Community Service

      Sec. 531. Urban community service.

Part D--Fund for the Improvement of Postsecondary Education

      Sec. 541. Fund for the improvement of postsecondary education.

Part E--Higher Education Access for Students With Disabilities; Hispanic-Serving Institutions; General Provisions

      Sec. 551. Higher education access for students with disabilities; Hispanic-serving institutions; general provisions.

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--RELATED PROGRAMS AND AMENDMENTS TO OTHER ACTS

Part A--Indian Education Programs

      Sec. 711. Tribally Controlled Community College Assistance Act of 1978.

      Sec. 712. American Indian, Alaska Native, and Native Hawaiian culture and art development.

Part B--Advanced Placement Incentive Program

      Sec. 721. Advanced placement incentive program.

Part C--United States Institute of Peace

      Sec. 731. Authorities of the United States Institute of Peace.

Part D--Community Scholarship Mobilization

      Sec. 741. Short title.

      Sec. 742. Findings.

      Sec. 743. Definitions.

      Sec. 744. Purpose, endowment grant authority.

      Sec. 745. Grant agreement and requirements.

      Sec. 746. Authorization of appropriations.

Part E--Grants to States for Workplace and Community Transition Training for Incarcerated Youth Offenders

      Sec. 751. Grants to States for workplace and community transition training for incarcerated youth offenders.

Part F--Education of the Deaf

      Sec. 761. Short title.

      Sec. 762. Elementary and secondary education programs.

      Sec. 763. Agreement with Gallaudet University.

      Sec. 764. Agreement for the National Technical Institute for the Deaf.

      Sec. 765. Definitions.

      Sec. 766. Gifts.

      Sec. 767. Reports.

      Sec. 768. Monitoring, evaluation, and reporting.

      Sec. 769. Investments.

      Sec. 770. International students.

      Sec. 771. Research priorities.

      Sec. 772. Authorization of appropriations.

      Sec. 773. Commission on Education of the Deaf.

Part G--Repeals

      Sec. 781. Repeals.

Part H--Miscellaneous

      Sec. 791. Year 2000 computer problem.

SEC. 2. REFERENCES.

    Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment 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.).

TITLE I--GENERAL PROVISIONS

SEC. 101. GENERAL PROVISIONS.

    (a) REPEAL; TRANSFER AND REDESIGNATION- The Act (20 U.S.C. 1001 et seq.) is amended--

      (1) by repealing title I (20 U.S.C. 1001 et seq.);

      (2) by repealing sections 1203, 1206, 1211, and 1212 (20 U.S.C. 1143, 1145a, 1145e, and 1145f);

      (3) by striking the heading for title XII (20 U.S.C. 1141 et seq.);

      (4) by inserting before title III (20 U.S.C. 1051 et seq.) the following:

‘TITLE I--GENERAL PROVISIONS’;

      (5) by transferring sections 1201, 1202, 1204 (as renumbered by Public Law 90-575), 1204 (as added by Public Law 96-374), 1205, 1207, 1208, 1209, 1210, and 1213 (20 U.S.C. 1141, 1142, 1144, 1144a, 1145, 1145b, 1145c, 1145d, 1145d-1, and 1145g) to follow the heading for title I (as inserted by paragraph (4)); and

      (6) by redesignating sections 1201, 1202, 1204 (as renumbered by Public Law 90-575), 1204 (as added by Public Law 96-374), 1205, 1207, 1208, 1209, 1210, and 1213 as sections 101, 102, 103, 104, 105, 106, 107, 108, 109, and 110, respectively.

SEC. 102. FEDERAL CONTROL OF EDUCATION PROHIBITED.

    Section 103 (as redesignated by section 101(a)(6)) (20 U.S.C. 1144) is amended by striking ‘(b)’.

SEC. 103. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND INTEGRITY.

    Section 105 (as redesignated by section 101(a)(6)) (20 U.S.C. 1145) is amended--

      (1) by striking the last sentence of subsection (a);

      (2) by redesignating subsections (c) through (f) as subsections (d) through (g), respectively;

      (3) by inserting after subsection (b) the following:

    ‘(c) PUBLIC NOTICE- The Secretary shall--

      ‘(1) 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.’;

      (4) in subsection (d) (as redesignated by paragraph (2))--

        (A) by striking paragraph (6); and

        (B) by redesignating paragraphs (7) and (8) as paragraphs (6) and (7), respectively; and

      (5) in subsection (g) (as redesignated by paragraph (2)), by striking ‘1998’ and inserting ‘2004’.

SEC. 104. PRIOR RIGHTS AND OBLIGATIONS; RECOVERY OF PAYMENTS.

    Title I (20 U.S.C. 1001 et seq.) is amended by adding after section 110 (as redesignated by section 101(a)(6)) the following:

‘SEC. 111. PRIOR RIGHTS AND OBLIGATIONS.

    ‘(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. 112. RECOVERY OF PAYMENTS.

    ‘(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 such 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 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.’.

SEC. 105. TECHNICAL AND 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(h)(1)(A) of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3152(h)(1)(A)) is amended--

          (i) by striking ‘1201(a)’ and inserting ‘101(a)’; 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(a)’; 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(a)’; 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(a)’; 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(a)’; 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(a)’; and

          (ii) by striking ‘(20 U.S.C. 1141(a))’.

        (F) ENVIRONMENTAL SCHOLARSHIP AND FELLOWSHIP PROGRAMS- Section 4451(b)(1) of the National Defense Authorization Act for 1993 (10 U.S.C. 2701 note) is amended--

          (i) by striking ‘1201(a)’ and inserting ‘101(a)’; 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(a)’; and

        (B) by striking ‘(20 U.S.C. 1141(a))’.

      (4) 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(a)’.

      (5) 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) PART F DEFINITIONS- Section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088) is amended--

          (i) in subsection (a)--

            (I) in the matter preceding paragraph (1)(A), by striking ‘1201(a)’ and inserting ‘101(a)’;

            (II) in paragraph (1)(C), by striking ‘1201(a)’ and inserting ‘101(a)’;

            (III) in the first sentence of the matter preceding clause (i) of paragraph (2)(A), by striking ‘1201(a)’ and inserting ‘101(a)’; and

            (IV) in the matter following paragraph (2)(B)(ii), by striking ‘1201(a)’ and inserting ‘101(a)’;

          (ii) in subsection (b)--

            (I) in the first sentence--

(aa) in paragraph (2), by striking ‘1201(a)’ and inserting ‘101(a)’; and

(bb) in paragraph (3), by striking ‘1201(a)’ and inserting ‘101(a)’; and

            (II) in the second sentence, by striking ‘1201(a)’ and inserting ‘101(a)’; and

          (iii) in subsection (c)--

            (I) in the first sentence, by striking ‘1201(a)’ and inserting ‘101(a)’; and

            (II) in the second sentence, by striking ‘1201(a)’ and inserting ‘101(a)’.

        (C) 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)’.

        (D) INTERNATIONAL EDUCATION PROGRAMS- Section 631(a)(8) of the Higher Education Act of 1965 (20 U.S.C. 1132(a)(8)) is amended by striking ‘1201(a)’ each place it appears and inserting ‘101(a)’.

        (E) DWIGHT D. EISENHOWER LEADERSHIP PROGRAM- Section 1081(d) of the Higher Education Act of 1965 (20 U.S.C. 1135f(d)) is amended by striking ‘1201’ and inserting ‘101’.

        (F) 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(a)’.

        (G) 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(a)’.

        (H) 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(a)’.

        (I) 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(a)’.

        (J) 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(a)’; 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’.

        (K) 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(a)’; and

          (ii) by striking ‘(20 U.S.C. 1141(a))’.

        (L) 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(a)’.

        (M) 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(a)’.

        (N) 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(a)’.

        (O) 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(a)’.

      (6) 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(a)’.

        (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(a)’; 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(a)’.

        (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(a)’.

      (7) 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(a)’.

        (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(a)’; 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(a)’.

      (8) LABOR-

        (A) REHABILITATION DEFINITIONS- Section 7(32) of the Rehabilitation Act of 1973 (29 U.S.C. 706(32)) is amended--

          (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and

          (ii) by striking ‘(20 U.S.C. 1141(a))’.

        (B) STATE PLANS- Section 101(a)(7)(A)(iv)(II) of the Rehabilitation Act of 1973 (29 U.S.C. 721(a)(7)(A)(iv)(II)) is amended--

          (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and

          (ii) by striking ‘(20 U.S.C. 1141(a))’.

        (C) JTPA DEFINITIONS- Section 4(12) of the Job Training Partnership Act (29 U.S.C. 1503(12)) is amended by striking ‘1201(a)’ and inserting ‘101(a)’.

        (D) TUITION CHARGES- Section 141(d)(3)(B) of the Job Training Partnership Act (29 U.S.C. 1551(d)(3)(B)) is amended--

          (i) by striking ‘1201(a)’ and inserting ‘101(a)’; and

          (ii) by striking ‘(20 U.S.C. 1141(a))’.

      (9) 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(a)’.

      (10) 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’.

      (11) POSTAL SERVICE- Section 3626(b)(3) of title 39, United States Code, is amended--

        (A) by striking ‘1201(a)’ and inserting ‘101(a)’; and

        (B) by striking ‘(20 U.S.C. 1141(a))’.

      (12) PUBLIC HEALTH AND WELFARE-

        (A) 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(a)’; and

            (II) by striking ‘(20 U.S.C. 1141(a))’; and

          (ii) in paragraph (3)--

            (I) by striking ‘1201(a)’ and inserting ‘101(a)’; and

            (II) by striking ‘(20 U.S.C. 1141(a))’.

        (B) 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(a)’; and

          (ii) by striking ‘(20 U.S.C. 1141(a))’.

        (C) 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(a)’; and

          (ii) by striking ‘(20 U.S.C. 1141(a))’.

        (D) 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(a)’; and

          (ii) by striking ‘(20 U.S.C. 1141(a))’.

        (E) 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(a)’; and

          (ii) by striking ‘(20 U.S.C. 1141(a))’.

        (F) 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(a)’; and

          (ii) by striking ‘(20 U.S.C. 1141(a))’.

        (G) 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(a)’.

        (H) 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(a)’.

        (I) 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(a)’; and

          (ii) by striking ‘(20 U.S.C. 1141(a))’.

        (J) 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(a)’; and

          (ii) by striking ‘(20 U.S.C. 1141(a))’.

        (K) 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(a)’; and

          (ii) by striking ‘(20 U.S.C. 1141(a))’.

        (L) 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 it appears and inserting ‘101’; and

          (ii) by striking ‘(20 U.S.C. 1141(i))’.

        (M) 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(a)’; and

          (ii) by striking ‘(20 U.S.C. 1141(a))’.

        (N) 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(a)’; and

          (ii) by striking ‘(20 U.S.C. 1141(a))’.

      (13) 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)’.

      (14) 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(a)’; and

        (B) by striking ‘(20 U.S.C. 1141(a))’.

    (b) 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 ‘110’;

      (2) in section 481 (20 U.S.C. 1088)--

        (A) in subsection (a)--

          (i) in paragraph (1)--

            (I) in the matter preceding subparagraph (A), by striking ‘1201(a)’ and inserting ‘101(a)’; and

            (II) in subparagraph (C), by striking ‘1201(a)’ and inserting ‘101(a)’; and

          (ii) in paragraph (2)--

            (I) in the matter preceding clause (i) of subparagraph (A), by striking ‘1201(a)’ and inserting ‘101(a)’; and

            (II) in the matter following clause (ii) of subparagraph (B), by striking ‘1201(a)’ and inserting ‘101(a)’;

        (B) in subsection (b), by striking ‘1201(a)’ each place the term appears and inserting ‘101(a)’; and

        (C) in subsection (c), by striking ‘1201(a)’ each place the term appears and inserting ‘101(a)’;

      (3) in section 485(f)(1)(I) (20 U.S.C. 1092(f)(1)(I)), by striking ‘1213’ and inserting ‘111’;

      (4) in section 498(j)(2) (20 U.S.C. 1099c(j)(2)), by striking ‘1201(a)(2)’ and inserting ‘101(a)(2)’;

      (5) in section 591(d)(2) (20 U.S.C. 1115(d)(2)), by striking ‘1201(a)’ and inserting ‘101(a)’;

      (6) 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(a)’; and

        (B) by striking ‘of 1201(a)’ and inserting ‘of section 101(a)’; and

      (7) in section 1081(d) (20 U.S.C. 1135f(d)), by striking ‘1201’ and inserting ‘101(a)’.

TITLE II--IMPROVING TEACHER QUALITY

SEC. 201. IMPROVING TEACHER QUALITY.

    The Act (20 U.S.C. 1001) is amended by inserting after section 112 (as added by section 104) the following:

‘TITLE II--IMPROVING TEACHER QUALITY

‘SEC. 201. PURPOSES.

    ‘The purpose of this title is 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; and

      ‘(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, including training in the effective uses of technologies in the classroom.

‘PART A--TEACHER QUALITY

‘Subpart 1--Teacher Quality Enhancement Grants

‘SEC. 211. GRANTS AUTHORIZED.

    ‘(a) IN GENERAL- The Secretary is authorized to award grants to States to enable the States to carry out the activities described in section 212. Each grant may be awarded for a period of not more than 5 years.

    ‘(b) STATE DESIGNATION-

      ‘(1) IN GENERAL- A State desiring a grant under this subpart shall, consistent with State law, designate the chief individual or entity in the State responsible for the State supervision of education, to administer the activities assisted under this subpart.

      ‘(2) CONSULTATION- The individual or entity designated under paragraph (1) shall consult with the Governor, State board of education, or State educational agency, as appropriate.

      ‘(3) CONSTRUCTION- Nothing in this subpart 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) MATCHING REQUIREMENT- Each State receiving a grant under this subpart shall provide, from non-Federal sources, an amount equal to 1/2 of the amount of the grant, in cash or in kind, to carry out the activities supported through the grant.

‘SEC. 212. USE OF FUNDS.

    ‘A State that receives a grant under this subpart 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, 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 new 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 alternatives to traditional preparation for teaching through programs at colleges of arts and sciences or at nonprofit educational organizations.

      ‘(4) ALTERNATIVE ROUTES- Funding programs that establish, expand, or improve alternative routes to State certification for highly qualified individuals from other occupations and recent college graduates with records of academic distinction, including support during the initial teaching experience.

      ‘(5) RECRUITMENT; PAY; REMOVAL- Developing and implementing effective mechanisms to ensure that 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 remove teachers who are not qualified.

      ‘(6) INNOVATIVE EFFORTS- Development and implementation of innovative efforts aimed at reducing the shortage of highly qualified teachers in high poverty urban and rural areas, that may include the recruitment of highly qualified individuals from other occupations through alternative certification programs.

      ‘(7) 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.

‘SEC. 213. COMPETITIVE AWARDS.

    ‘(a) ANNUAL AWARDS; COMPETITIVE BASIS- The Secretary shall award grants under this subpart annually and on a competitive basis.

    ‘(b) PEER REVIEW PANEL- The Secretary shall provide the applications submitted by States under section 214 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.

    ‘(c) PRIORITY- In recommending applications for funding to the Secretary, the panel shall give priority to applications from States that describe activities that--

      ‘(1) 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 areas in which the teachers plan to teach; and

      ‘(2) involve the development of innovative efforts aimed at reducing the shortage of highly qualified teachers in high poverty urban and rural areas.

‘SEC. 214. APPLICATIONS.

    ‘(a) IN GENERAL- Each State desiring a grant under this subpart shall submit an application to the Secretary at such time, in such manner and accompanied by such information as the Secretary may require.

    ‘(b) CONTENT OF APPLICATIONS- Such application shall include a description of how the State intends to use funds provided under this subpart.

‘Subpart 2--Teacher Training Partnerships Grants

‘SEC. 221. GRANTS AUTHORIZED.

    ‘(a) IN GENERAL- The Secretary is authorized to award grants to teacher training partnerships to enable the partnerships to carry out the activities described in section 222. Each grant may be awarded for a period of not more than 5 years.

    ‘(b) DEFINITIONS- In this part:

      ‘(1) TEACHER TRAINING PARTNERSHIPS-

        ‘(A) IN GENERAL- The term ‘teacher training partnership’ means a partnership that--

          ‘(i) shall include a school of arts and sciences, a school or program of education, a local educational agency, and a kindergarten through grade 12 school;

          ‘(ii) shall include a high need local educational agency or kindergarten through grade 12 school; and

          ‘(iii) may include a State educational agency, a pre-kindergarten program, a nonprofit educational organization, a business, or a teacher organization.

        ‘(B) HIGH NEED- A local educational agency or kindergarten through grade 12 school shall be considered high need for purposes of subparagraph (A)(ii) if the agency or school serves an area within a State in which there is--

          ‘(i) a large number of individuals from families with incomes below the poverty line;

          ‘(ii) a high percentage of teachers not teaching in the content area in which the teachers were trained to teach; or

          ‘(iii) a high teacher turnover rate.

      ‘(2) KINDERGARTEN THROUGH GRADE 12 SCHOOL- The term ‘kindergarten through grade 12 school’ means a school having any one of the grades kindergarten through grade 12.

    ‘(c) PRIORITY- In awarding grants under this subpart the Secretary shall give priority to partnerships that involve businesses.

    ‘(d) CONSIDERATION- In awarding grants under this subpart the Secretary shall take into consideration--

      ‘(1) providing an equitable geographic distribution of the grants throughout the United States; and

      ‘(2) the proposed project’s potential for creating improvement and positive change.

    ‘(e) MATCHING FUNDS- Each partnership receiving a grant under this subpart shall provide, from sources other than this subpart, an amount equal to 25 percent of the grant in the first year, 35 percent in the second such year, and 50 percent in each succeeding such year, of the amount of the grant, in cash or in kind, to carry out the activities supported by the grant.

    ‘(f) ONE-TIME AWARD- A partnership may receive a grant under this section only once.

‘SEC. 222. USE OF FUNDS.

    ‘(a) IN GENERAL- Grant funds under this part shall be used to--

      ‘(1) coordinate with the activities of the Governor, State board of education, and State educational agency, as appropriate;

      ‘(2) provide sustained and high quality preservice clinical experiences including the mentoring of prospective teachers by veteran teachers;

      ‘(3) work with a school of arts and sciences to provide increased academic study in a proposed teaching specialty area, through activities such as--

        ‘(A) restructuring curriculum;

        ‘(B) changing core course requirements;

        ‘(C) increasing liberal arts focus;

        ‘(D) providing preparation for board certification; and

        ‘(E) assessing and improving alternative certification, including mentoring and induction support;

      ‘(4) substantially increasing interaction and 2-way collaboration between--

        ‘(A) faculty at institutions of higher education; and

        ‘(B) new and experienced teachers, principals, and other administrators at elementary schools or secondary schools;

      ‘(5) prepare teachers to use technology effectively in the classroom;

      ‘(6) integrate reliable research-based teaching methods into the curriculum;

      ‘(7) broadly disseminate information on effective practices used by the partnership; and

      ‘(8) provide support, including preparation time, for interaction between faculty at an institution of higher education and classroom teachers.

    ‘(b) SPECIAL RULE- No individual member of a partnership shall retain more than 50 percent of the funds made available to the partnership under this subpart.

‘SEC. 223. APPLICATIONS.

    ‘Each teacher training partnership desiring a grant under this subpart 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) describe the composition of the partnership and the involvement of each partner in the development of the application;

      ‘(2) contain a needs assessment that includes an analysis of the needs of all the partners with respect to teaching and learning;

      ‘(3) contain a resource assessment that includes--

        ‘(A) an analysis of resources available to the partnership;

        ‘(B) a description of the intended use of the grant funds;

        ‘(C) a description of how the partnership will coordinate with other teacher training or professional development programs, including Federal, State, local, private, and other programs;

        ‘(D) a description of how the activities assisted under this subpart are consistent with educational reform activities that promote student achievement; and

        ‘(E) a description of the commitment of the resources of the partnership to the activities assisted under this subpart, including financial support, faculty participation, and time commitments;

      ‘(4) describe how the partnership will include the participation of the schools, colleges, or departments of arts and sciences within an institution of higher education to ensure the integration of teaching techniques and content in teaching preparation;

      ‘(5) describe how the partnership will restructure and improve teaching, teacher training, and development programs, and how such systemic changes will contribute to increased student achievement;

      ‘(6) describe how the partnership will prepare teachers to work with diverse student populations, including individuals with disabilities and limited English proficient individuals;

      ‘(7) describe how the partnership will prepare teachers to use technology;

      ‘(8) contain a dissemination plan regarding knowledge and information with respect to effective teaching practices, and a description of how such knowledge and information will be implemented in elementary schools or secondary schools as well as institutions of higher education;

      ‘(9) describe the commitment of the partnership to continue the activities assisted under this subpart without grant funds provided under this subpart; and

      ‘(10) describe how the partnership will involve and include parents in the reform process.

‘Subpart 3--General Provisions

‘SEC. 231. ACCOUNTABILITY AND EVALUATION.

    ‘(a) TEACHER QUALITY ENHANCEMENT GRANTS-

      ‘(1) ACCOUNTABILITY REPORT- A State that receives a grant under subpart 1 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 State, in using funds provided under subpart 1, has made substantial progress in meeting the following goals:

        ‘(A) STUDENT ACHIEVEMENT- Increasing student achievement for all students, as measured by increased graduation rates, decreased dropout rates, or higher scores on local, State or other assessments.

        ‘(B) RAISING STANDARDS- Raising the State academic standards required to enter the teaching profession, including, where appropriate, incentives to incorporate the requirement of an academic major in the subject, or related discipline, in which the teacher plans to teach.

        ‘(C) INITIAL CERTIFICATION OR LICENSURE- Increasing success in the passage rate for initial State teacher certification or licensure, or increasing numbers of highly qualified individuals being certified or licensed as teachers through alternative programs.

        ‘(D) CORE ACADEMIC SUBJECTS- (i) 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 high levels of competence through experience in relevant content areas.

        ‘(ii) Increasing the percentage of elementary school classes taught by teachers--

          ‘(I) with academic majors in the arts and sciences; or

          ‘(II) who can demonstrate high levels of competence through experience in relevant content areas.

        ‘(E) DECREASING SHORTAGES FOR PROFESSIONAL DEVELOPMENT- Decreasing shortages of qualified teachers in poor urban and rural areas.

        ‘(F) INCREASING OPPORTUNITIES- 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 to teach or in which the teachers are working toward certification to teach.

        ‘(G) TECHNOLOGY INTEGRATION- Increasing the number of teachers prepared to integrate technology in the classroom.

      ‘(2) TEACHER QUALIFICATIONS PROVIDED TO PARENT UPON REQUEST- Any local educational agency that benefits from the activities assisted under subpart 1 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 qualifications 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.

    ‘(b) TEACHER TRAINING PARTNERSHIP EVALUATION PLAN- Each teacher training partnership receiving a grant under subpart 2 shall establish an evaluation plan that includes strong performance objectives established in negotiation with the Secretary at the time of the grant award. The plan shall include objectives and measures for--

      ‘(1) increased student achievement for all students as measured by increased graduation rates, decreased dropout rates, or higher scores on local, State, or other assessments for a year compared to student achievement as determined by the rates or scores, as the case may be, for the year prior to the year for which a grant under this part is received;

      ‘(2) increased teacher retention in the first 3 years of a teacher’s career;

      ‘(3) increased success in the passage rate for initial State certification or licensure of teachers;

      ‘(4) increased percentages of secondary school classes taught in core academic subject areas by teachers--

        ‘(A) with academic majors in those areas or in a related field;

        ‘(B) who can demonstrate a high level of competence through rigorous academic subject area tests; and

        ‘(C) increasing the percentage of elementary school classes taught by teachers with academic majors in the arts and sciences;

      ‘(5) increased integration of technology in teacher preparation and in classroom instruction;

      ‘(6) restructuring or change of methodology courses to reflect best practices learned from elementary schools, secondary schools or other entities;

      ‘(7) increased dissemination of information about effective teaching strategies and practices; and

      ‘(8) other effects of increased integration among members of the partnership.

‘SEC. 232. REVOCATION OF GRANT.

    ‘Each State or teacher training partnership receiving a grant under this part shall report annually on progress toward meeting the purposes of this part, and the goals, objectives and measures described in section 231. If the Secretary, after consultation with the peer review panel described in section 213(b) determines that the State or partnership is not making substantial progress in meeting the purposes, goals, objectives and measures, as appropriate, by the end of the second year of the grant, the grant shall not be continued for the third year of the grant.

‘SEC. 233. EVALUATION AND DISSEMINATION.

    ‘The Secretary shall evaluate the activities funded under this part and report the Secretary’s findings 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 the States and teacher training partnerships under this part, and shall broadly disseminate information regarding such practices so developed that were found to be ineffective.

‘SEC. 234. INTERNATIONAL STUDY AND REPORT.

    ‘(a) STUDY- The Secretary shall conduct a study through the National Center for Education Statistics regarding the ways teachers are trained and the extent to which teachers in the United States and other comparable countries are teaching in areas other than the teachers’ field of study or expertise. The study will examine specific fields and will outline the nature and extent of the problem of out-of-field teaching in the United States and in other countries that are considered comparable to the United States. The study shall include, at a minimum, all the countries that participated in the Third International Mathematics and Science Study (TIMSS).

    ‘(b) REPORT- The Secretary shall report to Congress regarding the results of the study described in subsection (a).

‘SEC. 235. AUTHORIZATION OF APPROPRIATIONS.

    ‘There are authorized to be appropriated to carry out this part $300,000,000 for fiscal year 1999 and such sums as necessary for each of the 4 succeeding fiscal years, of which--

      ‘(1) 50 percent shall be available for each fiscal year to carry out subpart 1; and

      ‘(2) 50 percent shall be available for each fiscal year to carry out subpart 2.

‘PART B--RECRUITING NEW TEACHERS FOR UNDERSERVED AREAS

‘SEC. 251. STATEMENT OF PURPOSE.

    ‘It is the purpose of this part to--

      ‘(1) provide scholarships and, as necessary, support services for students with high potential to become effective teachers, particularly minority students;

      ‘(2) increase the quality and number of new teachers nationally; and

      ‘(3) increase the ability of schools in underserved areas to recruit a qualified teaching staff.

‘SEC. 252. DEFINITIONS.

    ‘In this part--

      ‘(1) ELIGIBLE PARTNERSHIP-

        ‘(A) IN GENERAL- The term ‘eligible partnership’ means a partnership consisting of--

          ‘(i) an institution of higher education that awards baccalaureate degrees and prepares teachers for their initial entry into the teaching profession; and

          ‘(ii) one or more local educational agencies that serve underserved areas.

        ‘(B) ADDITIONAL PARTNERS- Such a partnership may also include--

          ‘(i) 2-year institutions of higher education that operate teacher preparation programs and maintain articulation agreements, with the institutions of higher education that award baccalaureate degrees for the transfer of credits in teacher preparation;

          ‘(ii) State agencies that have responsibility for policies related to teacher preparation and teacher certification or licensure; and

          ‘(iii) other public and private, nonprofit agencies and organizations that serve, or are located in, communities served by the local educational agencies in the partnership, and that have an interest in teacher recruitment, preparation, and induction.

      ‘(2) SUPPORT SERVICES- The term ‘support services’ means--

        ‘(A) academic advice and counseling;

        ‘(B) tutorial services;

        ‘(C) mentoring; and

        ‘(D) child care and transportation, if funding for those services cannot be arranged from other sources.

      ‘(3) UNDERSERVED AREA- The term ‘underserved area’ means--

        ‘(A) the area served by the 3 local educational agencies in the State that have the highest numbers of children, ages 5 through 17, from families below the poverty level (based on data satisfactory to the Secretary); and

        ‘(B) the area served by any other local educational agency in which the percentage of such children is at least 20 percent, or the number of such children is at least 10,000.

‘SEC. 253. GRANT AUTHORITY AND CONDITIONS.

    ‘(a) GRANTS AUTHORIZED-

      ‘(1) GRANTS-

        ‘(A) IN GENERAL- From amounts appropriated under section 262 the Secretary shall award grants, on a competitive basis, to eligible partnerships to enable the eligible partnerships to pay the Federal share of the cost of carrying out the activities described in section 255.

        ‘(B) DURATION- Each grant awarded under subparagraph (A) shall be awarded for a period not to exceed 5 years.

      ‘(2) CONTINUING ELIGIBILITY; REVIEW OF PROGRESS- The Secretary shall--

        ‘(A) continue to make grant payments for the second and succeeding years of a grant awarded under this part, only after determining that the eligible partnership is making satisfactory progress in carrying out the activities under the grant; and

        ‘(B) conduct an intensive review of the eligible partnerships’s progress under the grant, with the assistance of outside experts, before making grant payments for the fourth year of the grant.

      ‘(3) MAXIMUM NUMBER- No eligible partnership may receive more than 2 grants under this subsection.

    ‘(b) MATCHING REQUIREMENT-

      ‘(1) FEDERAL SHARE- The Federal share of the cost of activities carried out under a grant made under subsection (a) shall not exceed--

        ‘(A) 70 percent of the cost in the first year of the grant;

        ‘(B) 60 percent in the second year;

        ‘(C) 60 percent in the third year;

        ‘(D) 50 percent in the fourth year; and

        ‘(E) 50 percent in the fifth year and any succeeding year (including each year of the second grant, if any).

      ‘(2) NON-FEDERAL SHARE- The non-Federal share of activities carried out with a grant under subsection (a) may be provided in cash or in kind, fairly evaluated, and may be obtained from any non-Federal public or private source.

    ‘(c) PLANNING GRANTS-

      ‘(1) IN GENERAL- The Secretary may award planning grants to eligible partnerships that are not ready to implement programs under subsection (a).

      ‘(2) DURATION- Each planning grant shall be for a period of not more than 1 year, which shall be in addition to the period of any grant under subsection (a).

      ‘(3) REQUIREMENT- Any recipient of a planning grant under this subsection that wishes to receive a grant under subsection (a)(1) shall separately apply for a grant under that subsection.

‘SEC. 254. GRANT APPLICATIONS.

    ‘(a) APPLICATIONS REQUIRED- Any eligible partnership desiring to receive a grant under this part shall submit an application to the Secretary at such time, in such form, and containing such information as the Secretary may require.

    ‘(b) APPLICATION CONTENTS- Each application for a grant under section 253(a) shall include--

      ‘(1) a designation of the institution or agency, within the eligible partnership, that will serve as the fiscal agent for the grant;

      ‘(2) information on the quality of the teacher preparation program of the institution of higher education participating in the eligible partnership and how the eligible partnership will ensure, through improvements in the eligible partnership’s teacher preparation practices or other appropriate strategies, that scholarship recipients will receive high-quality preparation;

      ‘(3) a description of the assessment the members of the eligible partnership have undertaken--

        ‘(A) to determine--

          ‘(i) the most critical needs of the local educational agencies, particularly the needs of schools in high-poverty areas, for new teachers (which may include teachers in particular subject areas or at certain grade levels); and

          ‘(ii) how the project carried out under the grant will address those needs; and

        ‘(B) that reflects the input of all significant entities in the community (including organizations representing teachers and parents) that have an interest in teacher recruitment, preparation, and induction;

      ‘(4) a description of the project the eligible partnership will carry out with the grant, including information regarding--

        ‘(A) the recruitment and outreach efforts the eligible partnership will undertake to publicize the availability of scholarships and other assistance under the program;

        ‘(B)(i) the number and types of students that the eligible partnership will serve under the program, which may include education paraprofessionals seeking to achieve full teacher certification or licensure; teachers whom the partner local educational agencies have hired under emergency certification or licensure procedures; or former military personnel, mid-career professionals, or AmeriCorps or Peace Corps volunteers, who desire to enter teaching; and

        ‘(ii) the criteria that the eligible partnership will use in selecting the students, including criteria to determine whether individuals have the capacity to benefit from the program, complete teacher certification requirements, and become effective teachers;

        ‘(C) the activities the eligible partnership will carry out under the grant, including a description of, and justification for, any support services the institution of higher education participating in the eligible partnership will offer to participating students;

        ‘(D) the number and funding range of the scholarships the institution will provide to students; and

        ‘(E) the procedures the institution will establish for entering into, and enforcing, agreements with scholarship recipients regarding the recipients’ fulfillment of the service commitment described in section 259;

      ‘(5) a description of how the institution will use funds provided under the grant only--

        ‘(A) to increase the number of students--

          ‘(i) with high potential to be effective teachers;

          ‘(ii) participating in the institution’s teacher preparation programs; or

          ‘(iii) in the particular type or types of preparation programs that the grant will support; or

        ‘(B) to increase the number of graduates, who are minority individuals, with high potential to be effective teachers;

      ‘(6) a description of the commitments, by the local educational agencies participating in the partnership, to hire qualified scholarship recipients in the schools served by the agencies and in the subject areas or grade levels for which the scholarship recipients will be trained, and a description of the actions the participating institution of higher education, the participating local educational agencies, and the other partners will take to facilitate the successful transition of the recipients into teaching; and

      ‘(7) a description of the eligible partnership’s plan for institutionalizing the activities the partnership is carrying out under this part, so that the activities will continue once Federal funding ceases.

‘SEC. 255. USES OF FUNDS.

    ‘(a) IN GENERAL- Each eligible partnership receiving a grant under section 523(a) shall use the grant funds for the following:

      ‘(1) SCHOLARSHIPS- Scholarships to help students pay the costs of tuition, room, board, and other expenses of completing a teacher preparation program.

      ‘(2) SUPPORT SERVICES- Support services, if needed to enable scholarship recipients to complete postsecondary education programs.

      ‘(3) FOLLOWUP SERVICES- Followup services provided to former scholarship recipients during the recipients’ first 3 years of teaching.

      ‘(4) PAYMENTS- Payments to partner local educational agencies, if needed to enable the agencies to permit paraprofessional staff to participate in teacher preparation programs (such as the cost of release time for the staff).

      ‘(5) ADDITIONAL COURSES- If appropriate, and if no other funds are available for, paying the costs of additional courses taken by former scholarship recipients during the recipients’ initial 3 years of teaching.

    ‘(b) PLANNING GRANTS- A recipient of a planning grant under section 253(c) shall use the grant funds for the costs of planning for the implementation of a grant under section 253(a).

‘SEC. 256. SELECTION OF APPLICANTS.

    ‘(a) PEER REVIEW- The Secretary, using a peer review process, shall select eligible partnerships to receive funding under this part on the basis of--

      ‘(1) the quality of the teacher preparation program offered by the institution participating in the partnership;

      ‘(2) the quality of the program carried out under the application; and

      ‘(3) the capacity of the partnership to carry out the grant successfully.

    ‘(b) CRITERIA-

      ‘(1) IN GENERAL- In awarding grants under section 253(a), the Secretary shall seek to ensure that--

        ‘(A) in the aggregate, eligible partnerships carry out a variety of approaches to preparing new teachers; and

        ‘(B) there is an equitable geographic distribution of the grants.

      ‘(2) SPECIAL CONSIDERATION- In addition to complying with paragraph (1), the Secretary shall give special consideration to--

        ‘(A) applications most likely to result in the preparation of increased numbers of individuals with high potential for effective teaching who are minority individuals; and

        ‘(B) applications from partnerships that have as members of the partnerships historically Black colleges and universities, Hispanic-serving institutions, and Tribal Colleges and Universities.

    ‘(c) SECOND FIVE-YEAR GRANTS- In selecting eligible partnerships to receive second year grant payments under this part, the Secretary shall give a preference to eligible partnerships whose projects have resulted in--

      ‘(1) the placement and retention of a substantial number of high-quality graduates in teaching positions in underserved, high-poverty schools;

      ‘(2) the adoption of effective programs that meet the teacher preparation needs of high-poverty urban and rural areas; and

      ‘(3) effective partnerships with elementary schools and secondary schools that are supporting improvements in student achievement.

‘SEC. 257. DURATION AND AMOUNT OF ASSISTANCE; RELATION TO OTHER ASSISTANCE.

    ‘(a) DURATION OF ASSISTANCE- No individual may receive scholarship assistance under this part--

      ‘(1) for more than 5 years of postsecondary education; and

      ‘(2) unless that individual satisfies the requirements of section 484(a)(5).

    ‘(b) AMOUNT OF ASSISTANCE- No individual may receive a scholarship awarded under this part that exceeds the cost of attendance, as defined in section 472, at the institution of higher education the individual is attending.

    ‘(c) RELATION TO OTHER ASSISTANCE- A scholarship awarded under this part--

      ‘(1) shall not be reduced on the basis of the individual’s receipt of other forms of Federal student financial assistance; and

      ‘(2) shall be regarded as other financial assistance available to the student, within the meaning of sections 471(3) and 480(j)(1), in determining the student’s eligibility for grant, loan, or work assistance under title IV.

‘SEC. 258. SCHOLARSHIP CONDITIONS.

    ‘(a) IN GENERAL- A recipient of a scholarship under this part shall continue to receive the scholarship assistance only as long as the recipient is--

      ‘(1) enrolled as a full-time student and pursuing a course of study leading to teacher certification, unless the recipient is working in a public school (as a paraprofessional, or as a teacher under emergency credentials) while participating in the program; and

      ‘(2) maintaining satisfactory progress as determined by the institution of higher education participating in the partnership.

    ‘(b) SPECIAL RULE. Each eligible partnership shall modify the application of section 257(a)(1) and of subsection (a)(1) to the extent necessary to accommodate the rights of individuals with disabilities under section 504 of the Rehabilitation Act of 1973.

‘SEC. 259. SERVICE REQUIREMENTS.

    ‘(a) REQUIREMENT- Each eligible partnership receiving a grant under this part shall enter into an agreement, with each student to whom the partnership awards a scholarship under this part, providing that a scholarship recipient who completes a teacher preparation program under this part shall, within 7 years of completing that program, teach full-time for at least 5 years in a high-poverty school in an underserved geographic area or repay the amount of the scholarship, under the terms and conditions established by the Secretary.

    ‘(b) REGULATIONS. The Secretary shall prescribe regulations relating to the requirements of subsection (a), including any provisions for waiver of those requirements.

‘SEC. 260. EVALUATION.

    ‘The Secretary shall provide for an evaluation of the program carried out under this part, which shall asses such issues as--

      ‘(1) whether institutions participating in the eligible partnerships are successful in preparing scholarship recipients to teach to high State and local standards;

      ‘(2) whether scholarship recipients are successful in completing teacher preparation programs, becoming fully certified teachers, and obtaining teaching positions in underserved areas, and whether the recipients continue teaching in those areas over a period of years;

      ‘(3) the national impact of the program in assisting local educational agencies in underserved areas to recruit, prepare, and retain diverse, high-quality teachers in the areas in which the agencies have the greatest needs;

      ‘(4) the long-term impact of the grants on teacher preparation programs conducted by institutions of higher education participating in the eligible partnership and on the institutions’ relationships with their partner local educational agencies and other members of the partnership; and

      ‘(5) the relative effectiveness of different approaches for preparing new teachers to teach in underserved areas, including their effectiveness in preparing new teachers to teach to high content and performance standards.

‘SEC. 261. NATIONAL ACTIVITIES.

    ‘The Secretary may reserve not more than 5 percent of the funds appropriated for this part for any fiscal year for--

      ‘(1) peer review of applications;

      ‘(2) conducting the evaluation required under section 260; and

      ‘(3) technical assistance.

‘SEC. 262. AUTHORIZATION OF APPROPRIATIONS.

    ‘There are authorized to be appropriated to carry out this part $37,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years.’.

TITLE III--INSTITUTIONAL AID

SEC. 301. TRANSFERS AND REDESIGNATIONS.

    (a) IN GENERAL- Title III (20 U.S.C. 1051 et seq.) is amended--

      (1) by redesignating part D as part F;

      (2) 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 398, respectively;

      (3) 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) by redesignating sections 721 through 728 (20 U.S.C. 1132c and 1132c-7) as sections 341 through 348, respectively;

      (5) 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 IMPROVEMENT PROGRAM’;

      (7) by redesignating sections 1021 through 1024 (20 U.S.C. 1135b and 1135b-3), 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 354, and sections 361, 362, 363, 364, 365, and 366, respectively; and

      (8) by repealing section 366 (as redesignated by paragraph (7)) (20 U.S.C. 1135d-6).

    (b) CONFORMING AMENDMENT- Section 361 (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 ‘398(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)’;

      (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 (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 (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) (as redesignated by subsection (a)(4)) (20 U.S.C. 1132c-4(2)), by striking ‘723’ and inserting ‘343’;

      (7) in section 348 (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) (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) (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) (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) (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:

      ‘(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--

      (1) in subsection (b)(3)(D), by inserting ‘, including high technology equipment,’ after ‘equipment’; and

      (2) by adding at the end the following:

    ‘(c) 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, in an amount equal to the Federal funds used in accordance with paragraph (1), for the establishment or increase of the endowment fund.

      ‘(3) 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).’.

    (b) DURATION OF GRANT- Section 313 (20 U.S.C. 1059) is amended 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.

    (c) 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 American 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 1201(a), except that paragraph (2) of such section shall not apply.

    ‘(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 American 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 American Indian children and youth, that shall include, as part of such program, preparation for teacher certification;

        ‘(K) establishing community outreach programs that encourage American Indian elementary school and secondary school students to develop the academic skills and the interest to pursue postsecondary education;

        ‘(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 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) 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 institution that--

        ‘(A) is an eligible institution under section 312(b);

        ‘(B) is eligible to receive assistance under the Tribally Controlled College or University Assistance Act of 1978; or

        ‘(C) is eligible to receive funds under the Equity in Educational Land Grant Status Act of 1994.

      ‘(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 subparagraph (A) or (B) of 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.’.

SEC. 304. STRENGTHENING HBCU’s.

    (a) GRANTS- Section 323 (20 U.S.C. 1062) is amended--

      (1) by redesignating subsection (b) as subsection (c); and

      (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, in an amount equal to the Federal funds used in accordance with paragraph (1), for the establishment or increase of the endowment fund.

      ‘(3) 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).’.

    (b) PROFESSIONAL OR GRADUATE INSTITUTIONS- Section 326 (20 U.S.C. 1063b) is amended--

      (1) in subsection (a), by adding at the end of paragraph (2) the following: ‘If a grant of less than $500,000 is made under this section, matching funds provided from non-Federal sources are not required. If a grant equal to or in excess of $500,000 is made under this section, match funds provided from non-Federal sources are required only with respect to the amount of the grant that exceeds $500,000.’; and

      (2) in subsection (e)(1)--

        (A) in subparagraph (E), by inserting ‘, and any Tuskegee University qualified graduate program’ before the semicolon;

        (B) in subparagraph (F), by inserting ‘, and any Xavier University qualified graduate program’ before the semicolon;

        (C) in subparagraph (G), by inserting ‘, and any Southern University qualified graduate program’ before the semicolon;

        (D) in subparagraph (H), by inserting ‘, and any Texas Southern University qualified graduate program’ before the semicolon;

        (E) in subparagraph (I), by inserting ‘, and any Florida A&M University qualified graduate program’ before the semicolon; and

        (F) in subparagraph (J), by inserting ‘, and any North Carolina Central University qualified graduate program’ before the semicolon.

SEC. 305. ENDOWMENT CHALLENGE GRANTS.

    Paragraph (2) of section 331(b) (20 U.S.C. 1065(b)) is amended 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) (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), (F), and (G);

      (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) 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;’; and

      (4) in subparagraph (G) (as redesignated by paragraph (2)), by striking ‘(C)’ and inserting ‘(F)’.

    (b) FULL FAITH AND CREDIT- Section 343 (as redesignated by section 301(a)(4)) (20 U.S.C. 1132c-2) is amended by adding at the end the following:

    ‘(e) Notwithstanding any other provision of law, the Secretary may sell a qualified bond guaranteed under this part to any party that offers terms that the Secretary determines are in the best interest of the eligible institution.’.

SEC. 307. MINORITY SCIENCE AND ENGINEERING IMPROVEMENT PROGRAM.

    Section 365(4) (as redesignated by section 301(a)(7)) (20 U.S.C. 1135d-5(4)) is amended by inserting ‘behavioral,’ after ‘physical,’.

SEC. 308. GENERAL PROVISIONS.

    (a) APPLICATIONS- Paragraph (1) of section 391(b) (as redesignated by section 301(a)(2)) (20 U.S.C. 1066(b)) is amended by inserting ‘, D or E’ after ‘part C’.

    (b) APPLICATION REVIEW PROCESS- Section 393 (as redesignated by section 301(a)(2)) (20 U.S.C. 1068) is amended by adding at the end the following:

    ‘(d) EXCLUSION- The provisions of this section shall not apply to applications submitted under part D.’.

    (c) WAIVERS- Paragraph (2) of section 395(b) (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’.

    (d) AUTHORIZATION OF APPROPRIATIONS- Section 398(a) (as redesignated by section 301(a)(2)) (20 U.S.C. 1069f) is amended--

      (1) in paragraph (1)--

        (A) in subparagraph (A), by striking ‘1993’ and inserting ‘1999’; and

        (B) in subparagraph (B)--

          (i) in clause (i), by striking ‘$45,000,000 for fiscal year 1993’ and inserting ‘$5,000,000 for fiscal year 1999’;

          (ii) by striking clause (ii); and

          (iii) by striking ‘(B)(i) There’ and inserting ‘(B) There’;

      (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 ‘$30,000,000 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’; and

      (4) by adding at the end the following:

      ‘(4) PART D- There are authorized to be appropriated to carry out part D, $110,000 for fiscal year 1999, and such sums as may be necessary for 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.’.

TITLE IV--STUDENT ASSISTANCE

PART A--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER EDUCATION

SEC. 411. REPEALS AND REDESIGNATIONS.

    Title IV (20 U.S.C. 1070 et seq.) is amended--

      (1) in part A (20 U.S.C. 1070 et seq.)--

        (A) in subpart 2 (20 U.S.C. 1070a-11), by repealing chapters 3 through 8 (20 U.S.C. 1070a-31 et seq. and 1070a-81 et seq.); and

        (B) by repealing subpart 8 (20 U.S.C. 1070f); and

      (2) in part H (20 U.S.C. 1099a et seq.)--

        (A) by repealing subpart 1 (20 U.S.C. 1099a et seq.); and

        (B) by redesignating subparts 2 and 3 (20 U.S.C. 1099b et seq. and 1099c et seq.) as subparts 1 and 2, respectively.

SEC. 412. FEDERAL PELL GRANTS.

    (a) AMENDMENT TO SUBPART HEADING- The heading for subpart 1 of part A of title IV (20 U.S.C. 1070a et seq.) is amended by striking ‘Basic Educational Opportunity Grants’ and inserting ‘Federal Pell Grants’.

    (b) FEDERAL PELL GRANTS- Section 401 (20 U.S.C. 1070a) is amended--

      (1) in the section heading, by striking ‘basic educational opportunity grants’ and inserting ‘federal pell grants’;

      (2) in subsection (a)(1)--

        (A) in the first sentence, by striking ‘shall, during the period beginning July 1, 1972, and ending September 30, 1998,’ and inserting ‘, for each fiscal year through fiscal year 2004, shall’; and

        (B) 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’;

      (3) in subsection (b)--

        (A) in paragraph (2)(A), by striking clauses (i) through (v), and inserting the following:

          ‘(i) $5,000 for academic year 1999-2000;

          ‘(ii) $5,200 for academic year 2000-2001;

          ‘(iii) $5,400 for academic year 2001-2002;

          ‘(iv) $5,600 for academic year 2002-2003; and

          ‘(v) $5,800 for academic year 2003-2004.’;

        (B) by amending paragraph (3) to read as follows:

      ‘(3) For any academic year for which an appropriation Act provides a maximum basic grant in an amount in excess of $2,400, the amount of a student’s basic grant shall equal $2,400 plus--

        ‘(A) one-half of the amount by which such maximum basic grant exceeds $2,400; plus

        ‘(B) the lesser of--

          ‘(i) the remaining one-half of such excess; or

          ‘(ii) the sum of the student’s tuition, fees, 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.’;

        (C) in paragraph (5), by striking ‘$400, except’ and all that follows through ‘grant of $400’ and insert ‘$200’; and

        (D) in paragraph (6)--

          (i) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively;

          (ii) by inserting ‘(A)’ after the paragraph designation; and

          (iii) by adding at the end the following:

        ‘(B) The Secretary shall promulgate regulations implementing this paragraph.’; and

      (4) in subsection (c)--

        (A) by amending paragraph (1) to read as follows: ‘(1)(A) Except as provided in subparagraph (B), the period during which a student may receive a basic grant shall be the period, required for the completion of the first undergraduate baccalaureate course of study pursued by the student at the institution at which the student is in attendance, that does not exceed 150 percent of the period normally required by a full-time student (or the equivalent period, in the case of a part-time student) to complete the course of study at the institution, as determined by the institution.

        ‘(B) A student may receive basic grants under this subpart for a period that exceeds the period described in subparagraph (A) to the extent the institution in which the student is enrolled determines necessary to accommodate the rights of students with disabilities under section 504 of the Rehabilitation Act of 1973.’; and

        (B) in paragraph (2)--

          (i) by striking ‘Nothing’ and inserting ‘(A) Except as provided in subparagraph (B), nothing’;

          (ii) by striking ‘or, in the case’ and all that follows through ‘or skills’; and

          (iii) by adding at the end the following:

        ‘(B)(i) A student may receive a basic grant to attend English language instruction that is a separate course of instruction only if--

          ‘(I) students enrolled in such a course are required to take an independently administered standardized test of English language proficiency upon completion of the course; and

          ‘(II) not less than a minimum percentage of such students achieve a passing score on that test.

        ‘(ii) The Secretary shall promulgate regulations that specify 1 or more standardized tests of English proficiency, the minimum percentage of students who must achieve a passing score on the tests, and such other requirements as the Secretary determines are necessary to implement clause (i).’.

SEC. 413. TRIO PROGRAMS.

    (a) PROGRAM AUTHORITY- Section 402A (20 U.S.C. 1070a-11) is amended--

      (1) in subsection (b)(3)--

        (A) in subparagraph (A), by striking ‘$170,000 for fiscal year 1993’ and inserting ‘$190,000 for each fiscal year’;

        (B) in subparagraph (B), by striking ‘$180,000 for fiscal year 1994’ and inserting ‘$200,000 for each fiscal year’; and

        (C) in subparagraph (C), by striking ‘$190,000 for fiscal year 1995’ and inserting ‘$210,000 for each fiscal year’;

      (2) in subsection (c)(6), by amending the last sentence to read as follows: ‘The Secretary shall permit a Director of a program assisted under this chapter to also administer 1 or more additional programs for disadvantaged students operated by the sponsoring entity regardless of the funding source of such additional program.’; and

      (3) in subsection (f), by striking ‘$650,000,000 for fiscal year 1993’ and inserting ‘$700,000,000 for fiscal year 1999’.

    (b) TALENT SEARCH- Section 402B(b)(5) (20 U.S.C. 1070a-12(b)(5)) is amended by inserting ‘, or activities designed to acquaint individuals from disadvantaged backgrounds with careers in which the individuals are particularly underrepresented’ before the semicolon.

    (c) UPWARD BOUND- Section 402C (20 U.S.C. 1070a-13) is amended--

      (1) in subsection (b)--

        (A) in paragraph (9), by striking ‘and’ after the semicolon;

        (B) by redesignating paragraph (10) as paragraph (11);

        (C) by inserting after paragraph (9) the following:

      ‘(10) work-study positions where youth participating in the project are exposed to careers requiring a postsecondary degree; and’; and

        (D) in paragraph (11) (as redesignated by subparagraph (B)), by striking ‘(9)’ and inserting ‘(10)’; 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 at the institution; and

        ‘(B) maintaining the loan burden of each such student at a manageable level.’.

    (e) 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 subpart, 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 subpart.

      ‘(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.

    ‘(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 subpart 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 subpart 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 subpart; and

      ‘(2) provide technical assistance regarding programs and projects assisted under this subpart.

    ‘(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. 414. NATIONAL EARLY INTERVENTION SCHOLARSHIP AND PARTNERSHIP PROGRAM.

    Section 404G (20 U.S.C. 1070a-27) is amended by striking ‘1993’ and inserting ‘1999’.

SEC. 415. FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS.

    (a) AUTHORIZATION OF APPROPRIATIONS- Section 413A(b) (20 U.S.C. 1070b) is amended by striking ‘$675,000,000 for fiscal year 1993’ and inserting ‘$700,000,000 for fiscal year 1999’.

    (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, a reasonable proportion of the allocation shall be made available to such students.’.

    (c) CARRYOVER, CARRYBACK, AND REALLOCATION- 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, CARRYBACK, AND REALLOCATION.

    ‘(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- 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.

    ‘(c) REALLOCATION- Any of the sums made available to an eligible institution under this subpart for a fiscal year that are not needed by the institution to award supplemental grants during that fiscal year, that the institution does not wish to use during the succeeding fiscal year as authorized in subsection (a), and that the institution does not wish to use for the preceding fiscal year as authorized in subsection (b), shall be made available to the Secretary for reallocation under section 413D(e) until the end of the second fiscal year after the fiscal year for which such sums were appropriated.’.

SEC. 416. 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 $35,000,000, 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 as 415F;

      (2) by inserting after section 415D the following:

‘SEC. 415E. 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;

      ‘(3) making funds available for community service work-study activities for eligible students who demonstrate financial need;

      ‘(4) creating a postsecondary scholarship program for eligible students who demonstrate financial need and wish to enter teaching;

      ‘(5) 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;

      ‘(6) carrying out early intervention programs, mentoring programs, and career education programs for eligible students who demonstrate financial need; and

      ‘(7) 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 33 1/3 percent.’; and

      (3) by adding at the end the following:

‘SEC. 415G. FEDERAL-STATE RELATIONSHIPS; STATE AGREEMENTS.

    ‘(a) IN GENERAL- Any State that desires to receive assistance under this subpart shall enter into an agreement with the Secretary pursuant to subsection (b) setting forth the terms and conditions for the relationship between the Federal Government and that State for the purposes set forth under this subpart.

    ‘(b) CONTENTS-

      ‘(1) IN GENERAL- Such agreement shall consist of assurances by the State, including a description of the means to be used by the State to fulfill the assurances, that--

        ‘(A) the State will provide for such methods of administration as are necessary for the proper and efficient administration of the program under this subpart in keeping with the purposes set forth under this subpart;

        ‘(B) the State will provide for such fiscal control and fund accounting procedures as may be necessary to ensure proper disbursement of, and accounting for, Federal funds paid to the State under this subpart;

        ‘(C) the State will follow policies and practices of administration that will ensure that non-Federal funds will not be supplanted by Federal funds, and that equitable and appropriate criteria will be used in evaluation of applications or proposals for grants under this subpart; and

        ‘(D) the State has a comprehensive planning or policy formulation process that--

          ‘(i) considers the relation between State administration of the program under this subpart, and administration of similar State programs or processes;

          ‘(ii) encourages State policies designed to consider effects on declining enrollments on all sectors of postsecondary education in the State;

          ‘(iii) considers the postsecondary education needs of unserved and underserved individuals within the State, including individuals beyond the traditional college age;

          ‘(iv) considers the resources of institutions, organizations, or agencies (both public and private) within the State capable of providing postsecondary educational opportunities in the State; and

          ‘(v) provides for direct, equitable, and active participation in the comprehensive planning or policy formulation process or processes of representatives of institutions of higher education (including community colleges, proprietary institutions, and independent colleges and universities), students, other providers of postsecondary education services, and the general public in the State.

      ‘(2) SPECIAL RULE- Participation under paragraph (1)(D)(v) shall, consistent with State law, be achieved through membership on State planning commissions, State advisory councils, or other State entities established by the State to conduct federally assisted comprehensive planning or policy formulation.

    ‘(c) SPECIAL RULE- The information and assurances provided by a State in accordance with subparagraphs (A), (B), and (C) of subsection (b)(1), and regulations issued by the Secretary related directly to such assurances, shall be satisfactory for the purposes of, and shall be considered in lieu of, any comparable requirements for information and assurances in any program under this subpart.

    ‘(d) AGREEMENT DURATION; COMPLIANCE-

      ‘(1) AGREEMENT DURATION- An agreement of a State shall remain in effect subject to modification as changes in information or circumstances require.

      ‘(2) COMPLIANCE- Whenever the Secretary, after reasonable notice and opportunity for a hearing

has been given to the State, finds that there is a failure to comply substantially with the assurances required in subparagraph (A), (B), or (C) of subsection (b)(1), the Secretary shall notify the State that the State is no longer eligible to participate in the program under this subpart until the Secretary is satisfied that there is no longer any such failure to comply.

    ‘(e) SPECIAL RULES-

      ‘(1) ENTITIES ENTERING INTO AGREEMENTS- For the purpose of this section, the selection of the State entity or entities authorized to act on behalf of the State for the purpose of entering into an agreement with the Secretary shall be in accordance with the State law of each individual State with respect to the authority to make legal agreements between the State and the Federal Government.

      ‘(2) CONSTRUCTION-

        ‘(A) STATE STRUCTURE- Nothing in this section shall be construed to authorize the Secretary to require any State to adopt, as a condition for entering into an agreement, or for participation in a program under this subpart, a specific State organizational structure for achieving participation in the planning, or administration of programs, or for statewide planning, coordination, governing, regulating, or administering of postsecondary education agencies, institutions, or programs in the State.

        ‘(B) STATE AUTHORITY- Nothing in this section shall be construed as a limitation on the authority of any State to adopt a State organizational structure for postsecondary education agencies, institutions, or programs that is appropriate to the needs, traditions, and circumstances of that State, or as a limitation on the authority of a State entering into an agreement pursuant to this section to modify the State organizational structure at any time subsequent to entering into such an agreement.’.

    (d) 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. 417. HEP AND CAMP.

    Section 418A(g) (20 U.S.C. 1070d-2(g)) is amended--

      (1) in paragraph (1), by striking ‘$15,000,000 for fiscal year 1993’ and inserting ‘$25,000,000 for fiscal year 1999’; and

      (2) in paragraph (2), by striking ‘$5,000,000 for fiscal year 1993’ and inserting ‘$10,000,000 for fiscal year 1999’.

SEC. 418. ROBERT C. BYRD HONORS SCHOLARSHIP PROGRAM.

    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. 419. 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.

    ‘(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 primarily 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 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 3 years.

        ‘(B) RENEWAL- A grant under this section may be renewed for a period of 3 years.

        ‘(C) 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.

      ‘(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 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.

        ‘(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 $60,000,000 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. 421. ADVANCES FOR RESERVE FUNDS.

    Section 422 (20 U.S.C. 1072) is amended--

      (1) in subsection (c)--

        (A) in paragraph (6)(B)(i), by striking ‘written’ and inserting ‘written, electronic’; and

        (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’;

      (2) in the matter preceding subparagraph (A) of subsection (g)(1), by striking ‘or the program authorized by part D of this title’ each place the term appears; and

      (3) 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 $40,000,000 for each of the fiscal years 1999, 2000, 2001, 2002, and 2003 from reserve funds held in the Federal Student Loan Reserve Funds established under section 422A by guaranty agencies.

      ‘(2) DEPOSIT- Funds recalled by the Secretary under this subsection shall be deposited in the Treasury.

      ‘(3) REQUIRED SHARE- The Secretary shall require each guaranty agency to return reserve funds under paragraph (1) annually on the basis of 1/5 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 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) $200,000,000, by

          ‘(ii) the total amount of all guaranty agencies’ reserve funds held on September 30, 1996.

      ‘(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. 422. FEDERAL STUDENT LOAN RESERVE FUND.

    Part B of title IV (20 U.S.C. 1071 et seq.) is amended by inserting after section 422 (20 U.S.C. 1072) the following:

‘SEC. 422A. FEDERAL STUDENT LOAN RESERVE FUND.

    ‘(a) ESTABLISHMENT- Each guaranty agency shall, not later than 45 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 referred to as the ‘Federal Fund’), in 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 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 with respect to the defaulted loan pursuant to section 428(c)(6)(A)(i); and

      ‘(3) the amount of the insurance premium collected from borrowers pursuant to section 428(b)(1)(H).

    ‘(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 a default prevention fee in accordance with section 428(l).

    ‘(e) OWNERSHIP OF FEDERAL FUND- The Federal Fund administered by the guaranty agency, regardless of who holds or controls the reserve funds or assets, and any nonliquid assets that were purchased with Federal reserve funds, shall be considered to be the property of the United States to be used in the operation of the program authorized by this part, as provided in subsection (d). The Secretary may direct a guaranty agency, or such agency’s officers or directors, to cease any activity involving expenditure, use, or transfer of the Federal Fund administered by the guaranty agency that the Secretary determines is a misapplication, misuse, or improper expenditure of such funds or assets.

    ‘(f) TRANSITION-

      ‘(1) IN GENERAL- In order to establish the Agency Operating Fund established by section 422B, each agency may transfer not more than 180 days cash expenses for normal operating expenses, as a working capital reserve as defined in Office of Management and Budget Circular A-87 (Cost Accounting Standards) for use in the performance of the agency’s duties under this part. Such transfers may occur during the first 3 years following the establishment of the Agency Operating Fund, except that no agency may transfer in excess of 40 percent of the Federal Fund balance to the agency’s Agency Operating Fund during any fiscal year. In determining the amount necessary for transfer, the agency shall assure that sufficient funds remain in the Federal Fund to pay lender claims within the required time periods and to meet the reserve funds recall requirements of subsection (b).

      ‘(2) REPAYMENT PROVISIONS- Each guaranty agency shall begin repayment of sums transferred pursuant to this subsection not later than 3 years

after the establishment of the Agency Operating Fund, and shall repay all sums transferred not later than 5 years from the date of the establishment of the Agency Operating Fund. The guaranty agency shall provide to the Secretary a 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.

      ‘(3) 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.

      ‘(4) WAIVER- The Secretary may waive the requirements of paragraph (3) for a guaranty agency described in such paragraph if the Secretary determines there are extenuating circumstances beyond the control of the agency that justify such a waiver.

      ‘(5) INVESTMENT OF FEDERAL FUNDS- Funds transferred from the Federal Fund to the Agency 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.

      ‘(6) SPECIAL RULE- In applying 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.’.

SEC. 423. AGENCY OPERATING FUND.

    Part B of title IV (20 U.S.C. 1071 et seq.) is amended further by inserting after section 422A (as added by section 422) the following:

‘SEC. 422B. AGENCY OPERATING FUND.

    ‘(a) ESTABLISHMENT- Each guaranty agency shall, not later than 45 days after the date of enactment of this section, establish a fund designated as the Agency Operating Fund (in this section referred to as the ‘Operating Fund’).

    ‘(b) INVESTMENT OF FUNDS- Funds deposited into the Operating Fund, with the exception of funds transferred from the Federal Student Loan Reserve Fund pursuant to section 422A(f), shall be invested at the discretion of the guaranty agency.

    ‘(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) the portfolio maintenance fee paid by the Secretary in accordance with section 458;

      ‘(3) the default prevention fee paid in accordance with section 428(l); and

      ‘(4) amounts remaining pursuant to section 428(c)(6)(A)(ii) from collection on defaulted loans held by the agency, after payment of the Secretary’s equitable share, excluding amounts deposited in the Federal Student Loan Reserve Fund pursuant to section 422A(c)(2).

    ‘(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 prevention activities (including those described in section 422(h)(8), default collection activities, school and lender training, compliance monitoring, and other student financial aid related activities as determined by the Secretary.

      ‘(2) SPECIAL RULE- The guaranty agency may, in the agency’s discretion, transfer funds from the Operating Fund to the Federal Student Loan Reserve 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 attributable compensation of collection personnel

(and in the case of personnel who perform several functions for such an agency only the portion of the compensation attributable to the collection activity), attorney’s fees, fees paid to collection agencies, postage, equipment, supplies, telephone, and similar charges.

        ‘(B) DEFAULT PREVENTION ACTIVITIES- The term ‘default prevention activities’ means activities of a guaranty agency, including those described in section 422(h)(8), that are directly related to providing collection assistance to the lender on a delinquent loan, prior to the loan’s being in a default status, including the attributable compensation of appropriate personnel (and in the case of personnel who perform several functions for such an agency only the portion of compensation attributable to the default prevention activity), fees paid to locate a missing borrower, postage, equipment, supplies, telephone, and similar charges.

        ‘(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 title.

    ‘(e) OWNERSHIP OF OPERATING FUND- The Operating Fund, with the exception of funds transferred from the Federal Student Loan Reserve Fund in accordance with section 422A(f), shall be considered to be the property of the guaranty agency. 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). However, during any period in which funds are owed to the Federal Student Loan Reserve Fund as a result of transfer under 422A(f), moneys in the Operating Fund may only be used for expenses related to the student loan programs authorized under this part.

    ‘(f) AUTHORITY OF SECRETARY TO DISPOSE OF NONLIQUID ASSETS- The Secretary may allow a guaranty agency to purchase nonliquid assets of the agency originally acquired with student loan reserve funds, except that an agency may not purchase any nonliquid assets during any period in which funds are owed to the Federal Student Loan Reserve Fund as a result of a transfer under section 422A(f). The purchase amount shall be available for expenditure under section 458.’.

SEC. 424. APPLICABLE INTEREST RATES.

    (a) APPLICABLE INTEREST RATES-

      (1) AMENDMENT- Section 427A (20 U.S.C. 1077a et seq.) is amended to read as follows:

‘SEC. 427A. APPLICABLE INTEREST RATES.

    ‘(a) INTEREST RATES FOR NEW LOANS ON OR AFTER JULY 1, 1998-

      ‘(1) IN GENERAL- Subject to paragraph (2), 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 July 1, 1998, 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,

      except that such rate shall not exceed 8.25 percent.

      ‘(2) IN SCHOOL AND GRACE PERIOD RULES- 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 July 1, 1998, 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 428(b)(1)(M) or 427(a)(2)(C),

      shall be determined under paragraph (1) by substituting ‘1.7 percent’ for ‘2.3 percent’.

      ‘(3) PLUS LOANS- With respect to any loan under section 428B for which the first disbursement is made on or after July 1, 1998, 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’.

    ‘(b) LESSER RATES PERMITTED- Nothing in this section or section 428C shall be construed to prohibit a lender from charging a borrower interest at a rate less than the rate which is applicable under this part.

    ‘(c) CONSULTATION- The Secretary shall determine the applicable rate of interest under this section 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(a)(3)’.

    (b) SPECIAL ALLOWANCES-

      (1) AMENDMENT- Section 438(b)(2)(F) (20 U.S.C. 1087-1(b)(2)(F)) is amended to read as follows:

      ‘(F) LOANS DISBURSED AFTER JULY 1, 1998-

        ‘(i) IN GENERAL- Subject to paragraph (4) and clauses (ii), (iii), and (iv) of this subparagraph, the special allowance paid pursuant to this subsection on loans for which the first disbursement is made on or after July 1, 1998, shall be computed--

          ‘(I) by determining the average of the bond equivalent rates of 91-day Treasury bills auctioned for such 3-month period;

          ‘(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 July 1, 1998, and for which the applicable rate of interest is described in section 427A(a)(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 July 1, 1998, and for which the applicable rate of interest is described in section 427A(a)(3), clause (i)(III) of this subparagraph shall be applied by substituting ‘3.1 percent’ for ‘2.8 percent’, subject to clause (iv) of this subparagraph.

        ‘(iv) LIMITATION ON SPECIAL ALLOWANCES FOR PLUS LOANS- In the case of loans disbursed on or after July 1, 1998, for which the interest rate is determined under section 427A(a)(3), a special allowance shall not be paid for a loan made under section 428B unless the rate determined for any 12-month period under section 427A(a)(3) exceeds 9 percent.’.

      (2) CONFORMING AMENDMENT- Section 438(b)(2)(C)(ii) is amended by striking ‘In the case’ and inserting ‘Subject to subparagraph (F), in the case’.

    (c) 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 July 1, 1998.

SEC. 425. FEDERAL PAYMENTS TO REDUCE STUDENT INTEREST COSTS.

    (a) FEDERAL INTEREST SUBSIDIES- Section 428(a) (20 U.S.C. 1078(a)) is amended--

      (1) in paragraph (2)--

        (A) in subparagraph (A)--

          (i) in clause (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

          (ii) by amending clause (ii) to read as follows:

        ‘(ii) meets the requirements of subparagraph (B); 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) (and a loan amount pursuant to section 428H) 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, the 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, 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, parts C and E, and any veterans’ education benefits paid because of enrollment in a postsecondary education institution, including veterans’ education benefits (as defined in section 480(c)), plus other scholarship, grant, or loan assistance; 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, with the exception of loans made under section 428H, be calculated in accordance with part F.’; and

        (D) by striking subparagraph (F); and

      (2) in paragraph (3)(A)(v)--

        (A) in subclause (I), by inserting ‘by the institution’ after ‘disbursement’; and

        (B) in clause (II), by inserting ‘by the institution’ after ‘disbursement’.

    (b) INSURANCE PROGRAM AGREEMENTS- Section 428(b) (20 U.S.C. 1078(b)) is amended--

      (1) in paragraph (1)--

        (A) in subparagraph (A)--

          (i) in the matter preceding clause (i), by inserting ‘, as defined in section 481(d)(2),’ after ‘academic year’;

          (ii) in clause (iv), by striking ‘and’ after the semicolon;

          (iii) in clause (v), by inserting ‘and’ after the semicolon; and

          (iv) 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 $5,500 for coursework necessary for enrollment in a graduate or professional degree or certification program; and

            ‘(II) $5,500 for coursework necessary for a professional credential or certification from a State required for employment as a teacher in an elementary or secondary school;’;

        (B) by amending subparagraph (E) 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 graduated, income-sensitive, or extended repayment schedule (as described in paragraph (9)) established by the lender in accordance with regulations provided by 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)’;

        (C) in subparagraph (L)(i), 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

        (D) in subparagraph (U)(iii)(I), by inserting ‘that originates or holds more than $5,000,000 in loans made under this title for any 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’; and

      (2) by adding at the end the following:

      ‘(9) REPAYMENT PLANS-

        ‘(A) 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 described in this subparagraph for repayment of such loan, including principal and interest thereon. Except as provided in paragraph (1)(L)(i), no plan may require a borrower to repay a loan in less than 5 years. 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 first-time borrowers on or after the date of enactment of the Higher Education Amendments of 1998 with 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 (2)(L).

        ‘(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) CHANGES IN SELECTION- The borrower of a loan made under this part may change the borrower’s selection of a repayment plan under subparagraph (B), as the case may be, under such conditions as may be prescribed by the Secretary in regulation.

        ‘(D) ACCELERATION PERMITTED- Under any of the plans described in this paragraph, the borrower shall be entitled to accelerate, without penalty, repayment on the borrower’s loans under this part.’.

    (c) GUARANTY AGREEMENTS FOR REIMBURSING LOSSES- Section 428(c) (20 U.S.C. 1078(c)) is amended--

      (1) in paragraph (1)--

        (A) in the fourth sentence of subparagraph (A), by striking ‘as reimbursement under this subsection shall be equal to 98 percent’ and inserting ‘as reimbursement for loans for which the first disbursement is made on or after the date of enactment of the Higher Education Amendments of 1998 shall be equal to 95 percent’;

        (B) in subparagraph (B)--

          (i) in clause (i), by striking ‘88 percent of the amount of such excess’ and inserting ‘85 percent of the amount of such excess for loans for which the first disbursement is made on or after the date of enactment of the Higher Education Amendments of 1998’; and

          (ii) in clause (ii), by striking ‘78 percent of the amount of such excess’ and inserting ‘75 percent of the amount of such excess for loans for which the first disbursement is made on or after the date of enactment of the Higher Education Amendments of 1998’;

        (C) 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

        (D) in subparagraph (F)--

          (i) in clause (i), by striking ‘98 percent’ and inserting ‘95 percent’; and

          (ii) in clause (ii), by striking ‘88 percent’ and inserting ‘85 percent’;

      (2) in paragraph (3)--

        (A) in subparagraph (A)(i), by inserting ‘or electronic’ after ‘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 forbearance for a period not to exceed 60 days may be granted if the lender determines that such a suspension of collection activity is warranted following a borrower’s request for forbearance in order to collect or process appropriate supporting documentation related to the request, and that during such period interest shall not be capitalized.’;

      (3) by amending paragraph (6) 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) an amount equal to 24 percent of such payments for use in accordance with section 422B.’;

      (4) in paragraph (8)--

        (A) by striking ‘(A) If’ and inserting ‘If’; and

        (B) by striking subparagraph (B); and

      (5) in paragraph (9)--

        (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’ and inserting ‘78 percent’;

          (ii) by striking ‘, as appropriate,’; and

          (iii) by striking ‘30 working’ and inserting ‘45 working’;

        (C) in subparagraph (E)--

          (i) in clause (iv), by inserting ‘or’ after the semicolon;

          (ii) in clause (v), by striking ‘; or’ and inserting a period; and

          (iii) by striking clause (vi);

        (D) in subparagraph (F), by amending clause (vii) to read as follows:

        ‘(vii) take any other action the Secretary determines necessary to avoid disruption of the student loan program, to ensure the continued availability of loans made under this part to residents of each State in which the guaranty agency did business, to ensure the full honoring of all guarantees issued by the guaranty agency prior to the Secretary’s assumption of the functions of such agency, and to ensure the proper servicing of loans guaranteed by the guaranty agency prior to the Secretary’s assumption of the functions of such agency.’; and

        (E) in subparagraph (K), by striking ‘and the progress of the transition from the loan programs under this part to the direct student loan programs under part D of this title’.

    (d) PAYMENT FOR LENDER REFERRAL SERVICES- Subsection (e) of section 428 (20 U.S.C. 1078) is repealed.

    (e) PAYMENT OF CERTAIN COSTS- Subsection (f) of section 428 (20 U.S.C. 1078) is amended to read as follows:

    ‘(f) PAYMENTS OF CERTAIN COSTS-

      ‘(1) PAYMENT FOR CERTAIN ACTIVITIES-

        ‘(A) IN GENERAL- The Secretary, for loans originated on or after October 1, 1998, and in accordance with the provisions of this paragraph, shall pay to each guaranty agency, a loan processing and issuance fee equal to 0.65 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 subparagraph. Payments shall be made promptly and without administrative delay to any guaranty agency submitting an accurate and complete application therefore under this subparagraph.’.

    (f) LENDERS-OF-LAST-RESORT- Paragraph (3) of section 428(j) (20 U.S.C. 1078(j)) is amended--

      (1) in the paragraph heading, by striking ‘DURING TRANSITION TO DIRECT LENDING’; and

      (2) in subparagraph (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’;

    (g) DEFAULT AVERSION ASSISTANCE- Subsection (l) of section 428 (20 U.S.C. 1078) is amended to read as follows:

    ‘(l) DEFAULT AVERSION ASSISTANCE-

      ‘(1) ASSISTANCE REQUIRED- Upon receipt of a proper request from the lender not earlier than the 60th nor later than the 90th 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) DEFAULT PREVENTION FEE REQUIRED-

        ‘(A) IN GENERAL- A guaranty agency, in accordance with the provisions of this paragraph, may transfer from the Federal Student Loan Reserve Fund to the Agency Operating Fund a default prevention fee. Such fee shall be paid for any loan on which a claim for default has not been presented that the guaranty agency successfully brings into current repayment status on or before the 210th day after the loan becomes 60 days delinquent.

        ‘(B) AMOUNT- The default prevention fee shall be equal to 1 percent of the total unpaid principal and accrued interest on the loan calculated at the time the request is submitted by the lender. Such fee shall not be paid more than once on any loan for which the guaranty agency averts the default unless the borrower remained current in payments for at least 24 months prior to the subsequent delinquency. A guaranty agency may transfer such fees earned under this subsection not more frequently than monthly.

        ‘(C) DEFINITION OF CURRENT REPAYMENT STATUS- For the purpose of this paragraph, the term ‘current repayment status’ means that the borrower is not delinquent, in any respect, in the payment of principal and interest on the loan at the time the guaranty agency qualifies for the default prevention fee.’.

    (h) STATE SHARE OF DEFAULT COSTS- Subsection (n) of section 428 (20 U.S.C. 1078) is repealed.

SEC. 426. 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. VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY AGENCIES.

    ‘(a) VOLUNTARY AGREEMENTS-

      ‘(1) AUTHORITY- The Secretary may enter into a voluntary, flexible agreement, subject to paragraph (2), with guaranty agencies 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 any statutory requirement pertaining to the terms and conditions attached to student loans, default claim payments made to lenders, or the prohibitions on inducements contained in section 428(b)(3).

      ‘(2) 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) 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 similar agreement with the Secretary.

      ‘(3) 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) 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 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 be secured by the parties;

      ‘(3) may include provisions--

        ‘(A) specifying the responsibilities of the guaranty agency under the agreement, such as--

          ‘(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;

          ‘(x) the performance of other program functions by the guaranty agency or the agency’s affiliates; and

          ‘(xi) 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 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 one 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; and

      ‘(4) shall provide for uniform lender participation with the guaranty agency under the terms of the agreement.

    ‘(c) 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. 427. 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

      ‘(2) social security number in the same manner as social security numbers are verified for students under section 484(p).’.

SEC. 428. FEDERAL CONSOLIDATION LOANS.

    Section 428C(a)(3) (20 U.S.C. 1078-3(a)(3)) is amended--

      (1) by amending subparagraph (A) to read as follows: ‘(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 or an order for wage garnishment under section 488A; or

        ‘(ii) at the time of application for a consolidation loan--

          ‘(I) is in repayment status;

          ‘(II) is in a grace period preceding repayment; 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.’; and

      (2) in subparagraph (B)(i)--

        (A) in subclause (I), by striking ‘and’ after the semicolon;

        (B) by redesignating subclause (II) as subclause (III);

        (C) by inserting after subclause (I) the following:

        ‘(II) with respect to eligible student loans received prior to the date of consolidation that the borrower may wish to include with eligible loans specified in subclause (I) in a later consolidation loan; and’; and

        (D) in subclause (III) (as redesignated by subparagraph (B)--

          (i) by striking ‘that loans’ and inserting ‘with respect to loans’; and

          (ii) by inserting ‘that’ before ‘may be added’.

SEC. 429. REQUIREMENTS FOR DISBURSEMENTS OF STUDENT LOANS.

    Section 428G (20 U.S.C. 1078G) is amended--

      (1) in subsection (a)(1), by striking ‘The proceeds’ and inserting ‘Except for a loan made for the final period of enrollment, that is less than an academic year, in a student’s baccalaureate program of study, at an institution with a cohort default rate (as calculated under section 435(m)) that is 5 percent or less, the proceeds’; and

      (2) in subsection (b)(1), by striking ‘The first’ and inserting ‘Except for a loan made to a student borrower entering an institution with a cohort default rate (as calculated under section 435(m)) of less than 5 percent, the first’.

SEC. 430. 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. 431. UNSUBSIDIZED LOANS.

    Section 428H (20 U.S.C. 1078-8) is amended--

      (1) by amending subsection (b) to read as follows:

    ‘(b) 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 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 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.’;

      (2) in subsection (d)--

        (A) in paragraph (2)--

          (i) in the matter preceding subparagraph (A)--

            (I) by inserting ‘, as defined in section 481(d)(2),’ after ‘academic year’; and

            (II) by striking ‘or in any period of 7 consecutive months, whichever is longer,’;

          (ii) in subparagraph (C), by inserting ‘and’ after the semicolon; and

          (iii) 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 $5,000 for coursework necessary for enrollment in a graduate or professional program; and

          ‘(ii) $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

        (B) in paragraph (3), by adding at the end the following: ‘The maximum aggregate amount shall not include interest capitalized from an in-school period.’; and

      (3) in subsection (e)(6), by striking ‘10 year repayment period under section 428(b)(1)(D)’ and inserting ‘repayment period under section 428(b)(9)’.

SEC. 432. 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 is authorized to carry out a program, through the holder of the loan, of assuming the obligation to repay a loan made under section 428 that is eligible for interest subsidy, for any new borrower on or after the date of enactment of the Higher Education Amendments of 1998, who--

      ‘(1) has been employed as a full-time teacher for 3 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, in accordance with State teacher certification or licensing requirements and 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

      ‘(2) is not in default on a loan for which the borrower seeks forgiveness.

    ‘(c) REGULATIONS- The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.

    ‘(d) LOAN REPAYMENT DURING CONTINUING TEACHING SERVICE-

      ‘(1) IN GENERAL- The Secretary shall assume the obligation to repay through reimbursement to the holder--

        ‘(A) 30 percent of the total outstanding amount and applicable interest of subsidized Federal Stafford loans owed by the student borrower after the completion of the fourth or fifth complete school year of service described in subsection (b);

        ‘(B) 40 percent of such total amount after the completion of the sixth complete school year of such service; and

        ‘(C) a total amount for any borrower that shall not exceed $10,000.

      ‘(2) CONSTRUCTION- Nothing in this section shall be construed to authorize any refunding of any repayment of a loan.

    ‘(e) 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.

    ‘(f) CONTINUED ELIGIBILITY- Any teacher who performs service in a school that--

      ‘(1) meets the requirements of subsection (b)(1)(A) in any year during such service; and

      ‘(2) 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).’.

SEC. 433. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS.

    Part B (20 U.S.C. 1071 et seq.) is amended by inserting after section 428J (as added by section 432) (20 U.S.C. 1078-10) the following:

‘SEC. 428K. LOAN FORGIVENESS FOR CHILD CARE PROVIDERS.

    ‘(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:

      ‘(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- 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) 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) is working full-time and is earning an amount which does not exceed the greater of an amount equal to 100 percent of the poverty line for a family of 2 as determined in accordance with section 673(2) of the Community Services Block Grant Act.

      ‘(2) 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.

      ‘(3) 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 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;

        ‘(B) after the third year of such employment, 20 percent of the total amount of all such loans; and

        ‘(C) after each of the fourth and fifth 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--

        ‘(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) 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. 434. COMMON FORMS AND FORMATS.

    Section 432 (20 U.S.C. 1082) is amended--

      (1) in subsection (m)(1)--

        (A) in subparagraph (A), by striking ‘a common application form and promissory note’ and inserting ‘common application forms and promissory notes, or multiyear promissory notes,’;

        (B) by striking subparagraph (C);

        (C) by redesignating subparagraph (D) as subparagraph (C); and

        (D) in subparagraph (C) (as redesignated by subparagraph (C))--

          (i) by inserting ‘, application and other’ after ‘electronic’; and

          (ii) by adding at the end the following: ‘Guaranty agencies, borrowers, and lenders may use electronically printed versions of common forms approved for use by the Secretary.’; and

      (2) in subsection (p), by striking ‘State postsecondary reviewing entities designated under subpart 1 of part H,’.

SEC. 435. STUDENT LOAN INFORMATION BY ELIGIBLE LENDERS.

    Section 433 (20 U.S.C. 1083) is amended--

      (1) in subsection (a), by amending the matter preceding paragraph (1) to read as follows:

    ‘(a) REQUIRED DISCLOSURE BEFORE DISBURSEMENT- Each eligible lender shall, 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), provide thorough and accurate loan information on such loan to the borrower. 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 a telephone number, and may provide an electronic address, to each borrower through which additional loan information can be obtained. The disclosure shall include--’; and

      (2) in subsection (b), 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. Each eligible lender shall provide a telephone number, and may provide an electronic address, to each borrower 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. 436. DEFINITIONS.

    (a) ELIGIBLE INSTITUTION- Section 435(a) (20 U.S.C. 1085(a)) is amended--

      (1) in paragraph (2)--

        (A) by adding after the matter following subparagraph (A)(ii) the following:

      ‘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. In order to continue to participate during an appeal under this paragraph, the institution shall provide a letter of credit in favor of the Secretary or other third-party financial guarantees satisfactory to the Secretary in an amount determined by the Secretary to be sufficient to satisfy the institution’s potential liability on such loans under the preceding sentence.’; and

        (B) by amending subparagraph (C) to read as follows:

      ‘(C)(i) This paragraph shall not apply to any institution described in clause (ii), and any such institution that exceeds the threshold percentage in subparagraph (A)(ii) for 2 consecutive years shall submit to the Secretary a default management plan satisfactory to the Secretary and containing criteria designed, in accordance with the regulations of the Secretary, to demonstrate continuous improvement by the institution in the institution’s cohort default rate. If the institution fails to submit the required plan, or to satisfy the criteria in the plan, the institution shall be subject to a loss of eligibility in accordance with this paragraph, except as the Secretary may otherwise specify in regulations.

      ‘(ii) An institution referred to in clause (i) is--

        ‘(I) a part B institution within the meaning of section 322(2);

        ‘(II) a Tribally Controlled College or University within the meaning of section 2(a)(4) of the Tribally Controlled College or University Assistance Act of 1978; or

        ‘(III) a Navajo Community College under the Navajo Community College Act.’;

      (2) in the matter following subparagraph (C)--

        (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’; and

      (3) by adding at the end the following:

      ‘(4) 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 applicable participation rate indices 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.

        ‘(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)(1)(A)(ii) (20 U.S.C. 1085(d)(1)(A)(ii) is amended--

      (1) by striking ‘or’ after ‘1992,’; and

      (2) 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’.

    (c) COHORT DEFAULT RATE- Section 435(m)(1)(B) (20 U.S.C. 1085(m)(1)(B)) is amended 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,’.

SEC. 437. 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. 438. SPECIAL ALLOWANCES.

    (a) AMENDMENTS- Section 438 (20 U.S.C. 1087-1) is amended--

      (1) in subsection (c), by amending paragraph (1) 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.’;

      (2) in subsection (d), by amending paragraph (1) 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

            ‘(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.’; and

      (3) in subsection (e)--

        (A) by striking paragraphs (1) and (2); and

        (B) by redesignating paragraphs (3) and (4) as paragraphs (1) and (2), respectively.

    (b) CONFORMING AMENDMENT- Section 432(f)(1)(D) is amended by striking ‘required to file a plan for doing business under section 438(d)’ and inserting ‘that meets the requirements of section 438(e)’.

SEC. 439. STUDY OF MARKET-BASED MECHANISMS FOR DETERMINING STUDENT LOAN INTEREST RATES.

    (a) STUDY REQUIRED-

      (1) IN GENERAL- The Secretary of the Treasury shall conduct a study of the feasibility of employing market-based mechanisms, including some form of auction, for determining student loan interest rates under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.). The study shall include--

        (A) analysis of the potential impact of the mechanisms on the delivery of student financial aid;

        (B) analysis of the implications of the mechanisms with respect to student and institutional access to student loan capital;

        (C) analysis of the potential impact of the mechanisms on the costs of the programs under such title for students and the Federal Government; and

        (D) a plan for structuring and implementing the mechanisms in such a manner that ensures the cost-effective availability of student loans for students and their families.

    (b) CONSULTATION- In conducting the study described in paragraph (1), the Secretary shall consult with lenders, secondary markets, guaranty agencies, institutions of higher education, student loan borrowers, and other participants in the student loan programs under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).

    (c) REPORT TO CONGRESS- The Secretary of the Treasury 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 C--FEDERAL WORK-STUDY PROGRAMS

SEC. 441. AUTHORIZATION OF APPROPRIATIONS; COMMUNITY SERVICES.

    Section 441 (20 U.S.C. 2751) is amended--

      (1) in subsection (b), by striking ‘$800,000,000 for fiscal year 1993’ and inserting ‘$900,000,000 for fiscal year 1999’; and

      (2) in subsection (c)--

        (A) in paragraph (1), by inserting ‘(including child care services provided on campus)’ after ‘child care’; and

        (B) in paragraph (3), by inserting ‘, including students with disabilities who are enrolled at the institution’ before the semicolon.

SEC. 442. GRANTS FOR FEDERAL WORK-STUDY PROGRAMS.

    Section 443(b) (20 U.S.C. 2753(b)) is amended--

      (1) in paragraph (1), by inserting ‘, including internships or research assistanceships as determined by the Secretary,’ after ‘part-time employment’;

      (2) by amending paragraph (3) 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 of this title 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 allocation shall be made available to such students;’;

      (3) in paragraph (5)--

        (A) by striking ‘provide that’ and inserting ‘(A) provide that’;

        (B) by striking ‘1993-1994’ and inserting ‘1999-2000’;

        (C) by inserting ‘and’ after the semicolon; and

        (D) by adding at the end the following:

      ‘(B) provide that the Federal share of the compensation of students employed in community service shall not exceed 90 percent;’; and

      (4) in paragraph (6), by striking ‘, and to make’ and all that follows through ‘such employment’.

SEC. 443. WORK COLLEGES.

    Section 448 (20 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 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 ‘$5,000,000 for fiscal year 1993’ and inserting ‘$7,000,000 for fiscal year 1999’.

PART D--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

SEC. 451. SELECTION OF INSTITUTIONS.

    Section 453(c) (20 U.S.C. 1087c(c)) is amended--

      (1) in paragraph (2)--

        (A) in the paragraph heading, by striking ‘TRANSITION’;

        (B) by striking subparagraph (E); and

        (C) by redesignating subparagraphs (F), (G), and (H) as subparagraphs (E), (F), and (G), 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) INTEREST RATES- Section 455(b) (20 U.S.C. 1087e(b)) is amended to read as follows:

    ‘(b) INTEREST RATE-

      ‘(1) RATES FOR FDSL AND FDUSL- For Federal Direct Stafford/Ford Loans and Federal Direct Unsubsidized Stafford/Ford Loans for which the first disbursement is made on or after July 1, 1998, 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,

      except that such rate shall not exceed 8.25 percent.

      ‘(2) IN SCHOOL AND GRACE PERIOD RULES- With respect to any Federal Direct Stafford/Ford Loan or Federal Direct Unsubsidized Stafford/Ford Loan for which the first disbursement is made on or after July 1, 1998, 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 428(b)(1)(M) or 427(a)(2)(C),

      shall be determined under paragraph (1) by substituting ‘1.7 percent’ for ‘2.3 percent’.

      ‘(3) PLUS LOANS- With respect to Federal Direct PLUS Loan for which the first disbursement is made on or after July 1, 1998, 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) PUBLICATION- The Secretary shall determine the applicable rates 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 the determination.

      ‘(5) REPAYMENT INCENTIVES-

        ‘(A) 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- The Secretary shall ensure the cost neutrality of such reductions by obtaining an official report from the Director of the Office of Management and Budget and the Director of the Congressional Budget Office that any such reductions will be completely cost neutral. The 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.’.

    (b) EFFECTIVE DATE- The amendments made by this section 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 July 1, 1998.

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 paragraph (2), not to exceed (from such funds not otherwise appropriated) $626,000,000 in fiscal year 1999, $726,000,000 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 subparagraph (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.’; and

      (2) by amending subsection (b) to read as follows:

    ‘(b) CALCULATION BASIS- 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 year 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.’.

SEC. 455. LOAN CANCELLATION FOR TEACHERS.

    Part D of title IV (20 U.S.C. 1087a et seq.) is amended by adding at the end the following:

‘SEC. 459. LOAN CANCELLATION 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 is authorized to carry out a program of canceling the obligation to repay a Federal Direct Stafford/Ford Loan made under this part that is eligible for an interest subsidy, for any new borrower on or after the date of enactment of the Higher Education Amendments of 1998, who--

      ‘(1) has been employed as a full-time teacher for 3 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 non-profit private secondary school in which the borrower is employed; and

        ‘(C) if employed as an elementary school teacher, has demonstrated, in accordance with State teacher certification or licensing requirements and 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

      ‘(2) is not in default on a loan for which the borrower seeks forgiveness.

    ‘(c) REGULATIONS- The Secretary is authorized to issue such regulations as may be necessary to carry out the provisions of this section.

    ‘(d) LOAN CANCELLATION DURING CONTINUING TEACHING SERVICE-

      ‘(1) IN GENERAL- The Secretary shall cancel the obligation to repay--

        ‘(A) 30 percent of the total outstanding amount and applicable interest of subsidized Federal Direct Stafford/Ford loans owed by the student borrower after the completion of the fourth or fifth complete school year of service described in subsection (b);

        ‘(B) 40 percent of such total amount after the completion of the sixth complete school year of such service; and

        ‘(C) a total amount for any borrower that shall not exceed $ 10,000.

      ‘(2) CONSTRUCTION- Nothing in this section shall be construed to authorize any refunding of any canceled loan.

    ‘(e) 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.

    ‘(f) CONTINUED ELIGIBILITY- Any teacher who performs service in a school that--

      ‘(1) meets the requirements of subsection (b)(1)(A) in any year during such service; and

      ‘(2) 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).’.

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) AMENDMENTS- Section 462 (20 U.S.C. 1087bb) is amended--

      (1) in the matter preceding subparagraph (A) of subsection (d)(3), by striking ‘the Secretary, for’ and all that follows through ‘years,’;

      (2) by amending subsection (f) to read as follows:

    ‘(f) DEFAULT PENALTIES-

      ‘(1) IN GENERAL- For fiscal year 1998 and any succeeding fiscal year, any institution with a cohort default rate (as defined under subsection (h)) that equals or exceeds 25 percent shall have a default penalty of zero.

      ‘(2) INELIGIBILITY-

        ‘(A) IN GENERAL- For fiscal year 1998 and any succeeding fiscal year, any institution with a cohort default rate (as defined in subsection (h)) 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, exceptional mitigating circumstances such as a small number of borrowers entering repayment, that would make the application of this subparagraph 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) 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.’;

      (3) by amending paragraph (1) of subsection (g) to read as follows: ‘(1) For award year 1998 and subsequent years, the maximum cohort default rate is 25 percent.’; and

      (4) in subsection (h)--

        (A) in the subsection heading, by striking ‘DEFINITIONS OF DEFAULT RATE AND’ and inserting ‘DEFINITION OF’;

        (B) by striking paragraphs (1) and (2);

        (C) by redesignating paragraphs (3) and (4) as paragraphs (1) and (2), respectively;

        (D) in paragraph (1) (as redesignated by subparagraph (C))--

          (i) by striking subparagraph (B); and

          (ii) by redesignating subparagraphs (C) through (G) as subparagraphs (B) through (F), respectively; and

        (E) in the matter preceding subparagraph (A) of paragraph (2) (as redesignated by subparagraph (C)), by striking ‘A loan’ and inserting ‘For purposes of calculating the cohort default rate under this subsection, a loan’.

    (b) 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 (c), by inserting ‘cohort’ before ‘default’ each place the term appears;

      (3) in subsection (e)(2), by inserting ‘cohort’ before ‘default’; and

      (4) in subsection (h)(1)(F) (as redesignated by subparagraphs (C) and (D)(ii) of subsection (a)(4)), by inserting ‘cohort’ before ‘default’.

SEC. 463. AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION.

    Section 463 (20 U.S.C. 1087cc) is amended--

      (1) by amending subparagraph (B) of subsection (a)(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) in subsection (c)--

        (A) in paragraph (2)--

          (i) 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--’;

          (ii) 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;’;

          (iii) in subparagraph (B)--

            (I) by inserting ‘the repayment and’ after ‘concerning’; and

            (II) by striking ‘any defaulted’ and inserting ‘such’; and

          (iv) in subparagraph (C), by inserting ‘, or upon cancellation or discharge of the borrower’s obligation on the loan for any reason’ before the period;

        (B) in paragraph (3)--

          (i) in the matter preceding subparagraph (A), by striking ‘until--’ and inserting ‘until the loan is paid in full.’; and

          (ii) by striking subparagraphs (A) and (B); and

        (C) 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 reporting the information described in paragraph (2) before a loan is paid in full.’.

SEC. 464. TERMS OF LOANS.

    Section 464 (20 U.S.C. 1087dd) is amended--

      (1) in subsection (a), by amending paragraph (2) 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) $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 of the loans for all years 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) $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.

      ‘(C)(i) The total of loans made to a student described in clause (ii) in any academic year or its equivalent by an institution of higher education from loan funds established pursuant to agreements under this part may not exceed--

        ‘(I) $8,000 for each of the third and fourth years of the program of instruction leading to a bachelor’s degree; or

        ‘(II) $10,000 for the first year of graduate study (as defined in regulations issued by the Secretary).

      ‘(ii) A student referred to in clause (i) is any student--

        ‘(I) who is a junior in a program of instruction leading to a bachelor’s degree;

        ‘(II) who states in writing that the student will pursue a course of study to become an elementary or secondary school teacher; and

        ‘(III) who states in writing that the student intends to become a full-time teacher in a school which meets the requirements of section 465(a)(2)(A).

      ‘(iii) Each institution shall provide a report to the Secretary annually containing the number of loans under this subparagraph that are made, the amount of each loan, and whether students benefiting from the higher loan limits met the requirements for receiving those loans.

      ‘(iv) If 3 years after the date of enactment of the Higher Education Amendments of 1998, the Secretary determines that an institution has engaged in a pattern of abuse of this subparagraph, the Secretary may reduce or terminate the institution’s Federal capital contribution.’;

      (2) in subsection (b), 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, a reasonable portion of the loans made from the institution’s student loan fund containing the contribution shall be made available to such students.’;

      (3) in subsection (c)(1)--

        (A) in subparagraph (D), by striking ‘(i) 3 percent’ and all that follows through ‘or (iii)’;

        (B) by redesignating subparagraphs (H) and (I) as subparagraphs (I) and (J), respectively; and

        (C) by inserting after subparagraph (G) the following:

        ‘(H) shall provide that, in the case of a loan made on or after July 1, 1999, the loan shall be considered in default (except as otherwise provided in section 462(h)) if the borrower of a loan made under this part fails to make an installment payment when due, or to meet any other term of the promissory note or written repayment agreement, and such failure persists for--

          ‘(i) 180 days in the case of a loan that is repayable in monthly installments; or

          ‘(ii) 240 days in the case of a loan that is repayable in less frequent installments;’; and

      (4) 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) by repaying the amount owed on the

loan 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 would be otherwise eligible (but for the default on the discharged loan). The amount discharged under this subsection shall not be considered income for purposes of the Internal Revenue Code of 1986.

      ‘(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, 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 instruct any credit bureau organization or credit reporting agency to which the default was reported to 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. 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 ontime, 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 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, nor can an incentive repayment option be paid for with institutional funds from the student loan fund.’.

SEC. 465. 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. 466. PERKINS LOAN REVOLVING FUND.

    (a) REPEAL- Subsection (c) of section 467 (20 U.S.C. 1087gg(c)) is repealed.

    (b) 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.

PART F--NEED ANALYSIS

SEC. 471. COST OF ATTENDANCE.

    Section 472 (20 U.S.C. 1087ll) is amended--

      (1) 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’; and

      (2) in paragraph (11), by striking ‘placed’ and inserting ‘engaged’.

SEC. 472. FAMILY CONTRIBUTION FOR DEPENDENT STUDENTS.

    Section 475 (20 U.S.C. 1087oo) is amended--

      (1) in subsection (g)--

        (A) in paragraph (2)--

          (i) in subparagraph (D)--

            (I) by striking ‘$1,750’ and inserting ‘$2,200’; and

            (II) by striking ‘and’ after the semicolon;

          (ii) in subparagraph (E), by striking the period and inserting ‘; and’; and

          (iii) by adding at the end the following:

        ‘(F) an allowance for parents’ negative available income, determined in accordance with paragraph (6).’; and

        (B) by adding at the end the following:

      ‘(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 paragraph (1) exceeds the parents’ total income (as defined in section 480).’; and

      (2) by adding at the end the following:

    ‘(j) ADJUSTMENTS TO STUDENTS 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 determined under such subsection by 9, and multiplying the result by the number of months in the period of enrollment.’.

SEC. 473. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITHOUT DEPENDENTS OTHER THAN A SPOUSE.

    Section 476(b)(1)(A)(iv) (20 U.S.C. 1087pp(b)(1)(A)(iv)) is amended--

      (1) in subclause (I), by striking ‘$3,000’ and inserting ‘$4,250’;

      (2) in subclause (II), by striking ‘$3,000’ and inserting ‘$4,250’; and

      (3) in subclause (III), by striking ‘$6,000’ and inserting ‘$7,250’.

SEC. 474. 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) REVISED AMOUNTS- For each academic year after academic year 1999-2000, 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 1998 and the December next preceding the beginning of such academic year, and rounding the result to the nearest $10.’.

SEC. 475. REFUSAL OR ADJUSTMENT OF LOAN CERTIFICATIONS.

    Subsection (c) of section 479A (20 U.S.C. 1087tt) is amended to read as follows:

    ‘(c) REFUSAL OR ADJUSTMENT OF LOAN CERTIFICATIONS- An eligible institution may refuse to certify a statement that permits a student to receive a loan under part B, or refuse to make a loan under part 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 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.’.

PART G--GENERAL PROVISIONS

SEC. 481. MASTER CALENDAR.

    Section 482 (20 U.S.C. 1089) is amended--

      (1) in subsection (a), by adding at the end the following:

      ‘(3) To the extent feasible, the Secretary shall notify eligible institutions and vendors by December 1 prior to the start of an award year of minimal hardware and software requirements necessary to administer programs under this title.’; and

      (2) by amending subsection (c) 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 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 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.

    Section 483 (20 U.S.C. 1090) is amended--

      (1) in subsection (a)--

        (A) in the subsection heading, by striking ‘FORM’ and inserting ‘FORM DEVELOPMENT’;

        (B) by amending paragraph (1) to read as follows:

      ‘(1) SINGLE FORM REQUIREMENTS- The Secretary, in cooperation with representatives of agencies and organizations involved in student financial assistance, shall produce, distribute, and process free of charge a common financial reporting form (which shall include electronic versions of the form) to be used--

        ‘(A) to determine the need (including the expected family contribution and, if appropriate, cost of attendance) and eligibility of a student for financial assistance under parts A, C, D, and E; and

        ‘(B) to determine the need (including the expected family contribution and cost of attendance) of a student for the purposes of part B.

      ‘(2) STATE DATA ITEMS- The Secretary shall include on the form developed under this subsection such data items, selected in consultation with the States to assist the States in awarding State student financial assistance, as the Secretary determines are appropriate for inclusion.

      ‘(3) PARENT’S SOCIAL SECURITY NUMBER- The Secretary shall include on the form developed under this paragraph space for the social security number of parents of dependent students seeking financial assistance under this title.

      ‘(4) USE- The Secretary shall require that the form developed under this paragraph be used for the purpose of collecting eligibility and other data for purposes of part B, including the applicant’s choice of lender.’; and

        (C) in paragraph (3)--

          (i) by striking ‘Institutions of higher education and States shall receive’ and inserting ‘The Secretary shall provide’; and

          (ii) by striking ‘by the Secretary’; and

      (2) by adding at the end the following:

    ‘(g) PAYMENT FOR DATA- The Secretary may pay such charges as the Secretary determines are necessary to obtain data that the Secretary considers essential to the efficient administration of the programs under this title.

    ‘(h) MULTIYEAR PROMISSORY NOTE- The Secretary shall require, for loans made under this title for periods of enrollment beginning on or after July 1, 2000, the use of a promissory note applicable to more than 1 academic year, or more than 1 type of loan made under this title. Prior to implementing this subsection, the Secretary shall develop and test such a promissory note on a limited or pilot basis.’.

SEC. 483. STUDENT ELIGIBILITY.

    (a) AMENDMENTS- Section 484 (20 U.S.C. 1091) is amended--

      (1) in subsection (d)--

        (A) in the matter preceding paragraph (1), by striking ‘either’; and

        (B) by adding at the end the following:

      ‘(3) The student has completed a high school education in a home school setting and has met any State requirements with respect to such education in a home school setting.’; and

      (2) by adding at the end the following:

    ‘(q) VERIFICATION OF IRS RETURN INFORMATION- The Secretary shall verify the information reported by all applicants for assistance on the form prescribed under section 483 with the return information (as defined in section 6103 of the Internal Revenue Code of 1986) available to the Secretary of the Treasury. Notwithstanding section 6103 of such Code the Secretary of the Treasury shall provide the return information to the Secretary. In the case of a dependent student the return information shall include the return information of the parent of the student. The form prescribed by the Secretary under section 483 shall contain a prominent notice of the verification of the information and a warning to all the applicants of the penalties for misrepresentation, with respect to the information, under the United States Code.

    ‘(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:

xlThe possession of a con-


xl trolled substance:


Ineligibility period is:

First offense


1 year

Second offense


2 years

Third offense


Indefinite.

xlThe sale of a controlled


xl 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 the student satisfactorily completes a drug rehabilitation program that complies with such criteria as the Secretary shall prescribe in regulations for purposes of this paragraph.

      ‘(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)).’.

    (b) EFFECTIVE DATE- The amendment made by subsection (a)(2) 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. INSTITUTIONAL REFUNDS.

    Section 484B (20 U.S.C. 1091b) is amended--

      (1) in subsection (b)--

        (A) in paragraph (1), by inserting ‘or’ after the semicolon;

        (B) by striking paragraph (2); and

        (C) by redesignating paragraph (3) as paragraph (2); and

      (2) in subsection (c)--

        (A) in paragraph (1), by striking ‘last day of attendance by the student’ and inserting ‘day the student withdrew’;

        (B) in subparagraph (A) of paragraph (2), by striking ‘last recorded day of attendance by the student’ and inserting ‘day the student withdrew’; and

        (C) by adding at the end the following:

      ‘(3) For the purpose of this section, the term ‘day a student withdrew’--

        ‘(A) is the date that was the last recorded day of attendance by the student; or

        ‘(B) in instances where attendance is not recorded, is the date on which--

          ‘(i) the student began the withdrawal process prescribed by the institution; or

          ‘(ii) the student otherwise provided notification to the institution of the intent to withdraw.’.

SEC. 485. 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 ‘and mailings, to all current’ and inserting ‘, mailings, and electronic media, to all enrolled’;

        (B) by inserting after the second sentence the following: ‘Each eligible institution annually shall provide to all students enrolled at the institution, a list of the information that is required by this section, together with a statement of the procedures required to obtain the information.’;

        (C) in subparagraph (M)(ii), by striking ‘and’ after the semicolon;

        (D) in subparagraph (N), by striking the period and inserting ‘; and’; and

        (E) by adding at the end the following:

        ‘(O) the requirements and procedures for student withdrawal prior to the end of a period of enrollment and the consequences to the student, with respect to receipt of a refund, of the student’s failing to provide notification of withdrawal.’;

      (2) in paragraph (2), by inserting ‘an application for’ after ‘concerning’; and

      (3) in paragraph (3), by amending subparagraph (A) to read as follows:

        ‘(A) shall be made available by July 1 each year to current and prospective students prior to enrolling or entering into any financial obligation; and’.

    (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) DISCLOSURES REQUIRED WITH RESPECT TO ATHLETICALLY RELATED STUDENT AID- Section 485(e) (20 U.S.C. 1092(e)) is amended--

      (1) by amending paragraph (2) to read as follows:

      ‘(2) When an institution described in paragraph (1) offers a potential student athlete athletically related student aid, such institution shall provide to the student, the student’s parents, the student’s guidance counselor, and the student’s coach the information contained in the report submitted by such institution pursuant to paragraph (1). If the institution is a member of a national collegiate athletic association that compiles graduation rate data on behalf of its member institutions, that the Secretary determines is substantially comparable to the information described in the previous sentence, the distribution of the compilation to all secondary schools shall fulfill the responsibility of the institution to provide the information to a prospective student athlete’s guidance counselor and coach.’; and

      (2) by amending paragraph (9) to read as follows:

      ‘(9) 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.’.

    (d) DISCLOSURE OF CAMPUS SECURITY POLICY AND CAMPUS CRIME STATISTICS- Section 485(f) (20 U.S.C. 1092(f)) is amended--

      (1) by amending subparagraph (F) of paragraph (1) to read as follows:

        ‘(F) Statistics concerning the occurrence on campus, 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) homicide, including murder or nonnegligent manslaughter or negligent manslaughter;

            ‘(II) sex offenses, forcible or nonforcible;

            ‘(III) robbery;

            ‘(IV) aggravated assault;

            ‘(V) burglary;

            ‘(VI) motor vehicle theft; and

            ‘(VII) arson;

          ‘(ii) of the crimes described in subclauses (I) through (VII), and vandalism and simple assault, that manifest evidence of prejudice based on actual or perceived race, gender, religion, sexual orientation, ethnicity, or disability that are reported to campus security authorities or local police agencies, which data shall be collected and reported according to category of prejudice.’;

      (2) by redesignating paragraphs (4) through (7) as paragraphs (5) through (8), respectively;

      (3) by inserting after paragraph (3) the following:

      ‘(4)(A) Each institution participating in any program under this title which maintains either 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) 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 2 business days of the initial report being made to the department or a campus security authority.

      ‘(ii) 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 2 business days after the information becomes available to the police or security department.

      ‘(iii) Where 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.

      ‘(iv) Notwithstanding clause (iii), an institution of higher education shall record all criminal incidents occurring on campus and shall make the reports open to public inspection not later than 2 business days after the requirements of clause (iii) are met.’;

      (4) in paragraph (7) (as redesignated by subparagraph (B)), by inserting at the end the following: ‘Such statistics shall not identify victims of crimes or persons accused of crimes, except as permitted by State or local law.’; and

      (5) by adding at the end the following:

      ‘(9) STUDY-

        ‘(A) IN GENERAL- The Secretary, in consultation with the Attorney General, 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 subparagraph (A) shall include an analysis of--

          ‘(i) the existence and publication of the institution of higher education’s and State’s definition of sexual assault;

          ‘(ii) the existence and publication of the institution’s policy for campus sexual assaults;

          ‘(iii) the individuals to whom reports of sexual assault are given most often and--

            ‘(I) how the individuals are trained to respond to the reports; and

            ‘(II) the extent to which the individuals are trained;

          ‘(iv) the reporting options that are articulated to the victim or victims of the sexual assault regarding--

            ‘(I) on-campus reporting and procedure options; and

            ‘(II) off-campus reporting and procedure options;

          ‘(v) the resources available for victims’ safety, support, medical health, and confidentiality, including--

            ‘(I) how well the resources are articulated both specifically to the victim of sexual assault and generally to the campus at large; and

            ‘(II) the security of the resources in terms of confidentiality or reputation;

          ‘(vi) 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;

          ‘(vii) policies and practices found successful in aiding the report and any ensuing investigation or prosecution of a campus sexual assault;

          ‘(viii) the on-campus procedures for investigation and disciplining the perpetrator of a sexual assault, including--

            ‘(I) the format for collecting evidence; and

            ‘(II) 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

          ‘(ix) types of punishment for offenders, including--

            ‘(I) whether the case is directed outside for further punishment; and

            ‘(II) how the institution punishes perpetrators.

        ‘(C) SUBMISSION OF REPORT- The report required by subparagraph (B) shall be submitted to Congress not later than September 1, 1999.

        ‘(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 1999.’.

    (e) DATA REQUIRED- Section 485(g) (20 U.S.C. 1092(g)) is amended--

      (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, except that 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, except that expenses such as general and administrative overhead not so allocable shall be included in the calculation of total expenses only.

        ‘(K) A statement of any reduction that will, or is likely to, occur during the ensuing 4 academic years in the number of athletes that will be permitted to participate in any collegiate sport, or in the financial resources that the institution will make available for any such sport, and the reasons for any such reduction, to the

        extent the reduction is known.’;

      (2) by striking paragraph (5);

      (3) by redesignating paragraph (4) as paragraph (5); and

      (4) by inserting after paragraph (3) the following:

      ‘(4) SUBMISSION; REPORT; INFORMATION AVAILABILITY- (A) 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) for each year by April 1 of the year. 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) The Secretary shall ensure that the report described in subparagraph (B) is made available on the Internet within a reasonable period of time.

      ‘(D) The Secretary shall notify, not later than 180 days after the date of enactment of the Higher Education Amendments of 1998, 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.’.

    (f) GEPA AMENDMENT- Section 444(a)(4)(B) of the General Education Provisions Act (20 U.S.C. 1232g(a)(4)(B)) is amended--

      (1) by redesignating clauses (iii) and (iv) as clauses (iv) and (v), respectively; and

      (2) by inserting after clause (ii) the following:

          ‘(iii) records that are maintained by local police or campus security officers of an educational agency or institution about--

            ‘(I) individuals who have been found guilty of, or have pled guilty to, committing or participating in any criminal activity as defined in Federal, State, or local law that has occurred while the individual was a student in attendance, including audit or noncredit, at an educational institution; and

            ‘(II) findings of guilt of criminal misconduct and related sanctions from any previously attended educational agencies or institutions where such records were created on or after September 1, 1999, and that are maintained by the institution currently or most recently attended by the individual;’.

SEC. 486. NATIONAL STUDENT LOAN DATA BANK SYSTEM.

    Section 485B (20 U.S.C. 1092b) is amended by adding at the end the following:

    ‘(h) STUDENT STATUS CONFIRMATION REPORT- In order to reduce unnecessary paperwork and to increase the efficient administration, the Secretary shall assure that borrowers under part E are included in the Student Status Confirmation Report in the same manner as borrowers under parts B and D.’.

SEC. 487. TRAINING IN FINANCIAL AID SERVICES.

    Section 486 (20 U.S.C. 1093) is amended to read as follows:

‘SEC. 486. INFORMATION ON THE COSTS OF HIGHER EDUCATION.

    ‘(a) IN GENERAL- For the purpose of providing comparative information to families about the costs of higher education--

      ‘(1) the National Center for Education Statistics shall--

        ‘(A) develop a standard definition for the following data elements:

          ‘(i) Tuition and fees.

          ‘(ii) Total cost of attendance, including costs such as housing, books, supplies, and transportation.

          ‘(iii) Average amount of financial assistance received by a student who attends an institution of higher education, in terms of the following:

            ‘(I) Grants and loans.

            ‘(II) Institutional and other assistance.

          ‘(iv) Percentage of students receiving student financial assistance, in terms of the following:

            ‘(I) Grants and loans.

            ‘(II) Institutional and other assistance;

        ‘(B) report the definitions to each institution of higher education and 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 90 days after the date of enactment of the Higher Education Amendments of 1998;

        ‘(C) collect information regarding the data elements described in subparagraph (A) with respect to all institutions of higher education, and make available the information each year in a timely fashion through the integrated postsecondary education data system, beginning with the information from the 1999-2000 academic year;

        ‘(D) provide the public notice when the information described in subparagraph (C) is available for public inspection; and

        ‘(E) publish in a timely fashion a report after the third year of collection of the information described in subparagraph (C) that compares the information described in subparagraph (C) longitudinally by institution, which information shall be presented in a form that is easily understandable, including clear definitions of the data elements described in subparagraph (A), to allow parents and students to make informed decisions about attending college; and

      ‘(2) institutions of higher education shall provide information regarding each data element described in paragraph (1)(A) to the National Center for Education Statistics by March 1 of each year, beginning in the year 2000.

    ‘(b) STUDY-

      ‘(1) IN GENERAL- In consultation with the Bureau of Labor Statistics, the National Center for Education Statistics shall conduct a national study of expenditures at institutions of higher education. Such study shall include information about--

        ‘(A) expenditures for--

          ‘(i) faculty salaries and benefits;

          ‘(ii) administrative salaries, benefits, and expenses;

          ‘(iii) academic support services;

          ‘(iv) research;

          ‘(v) construction; and

          ‘(vi) technology;

        ‘(B) how such expenditures change over time; and

        ‘(C) how such expenditures relate to college costs.

      ‘(2) FINAL REPORT- The National Center for Education Statistics shall submit a report regarding the findings of the study required by paragraph (1) 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, 2001.

    ‘(c) HIGHER EDUCATION MARKET BASKET- In consultation with the Bureau of Labor Statistics, the National Center for Education Statistics shall develop a Higher Education Market Basket that identifies the items that comprise the costs of higher education. The National Center for Education 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.

    ‘(d) FINES- In addition to the 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 failure to provide the information described in subsection (a)(2) in a timely or accurate manner, or for failure to otherwise cooperate with the National Center for Education Statistics regarding efforts to obtain data on the cost of higher education under such subsection.’.

SEC. 488. PROGRAM PARTICIPATION AGREEMENTS.

    Section 487 (20 U.S.C. 1094) is amended--

      (1) in subsection (a)--

        (A) in paragraph (3)--

          (i) by striking subparagraph (B); and

          (ii) by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively;

        (B) in paragraph (9), by striking ‘part B’ and inserting ‘part B or D’;

        (C) in paragraph (14)--

          (i) in subparagraph (A), by striking ‘part B’ and inserting ‘part B or D’; and

          (ii) in subparagraph (B)--

            (I) by inserting ‘for-profit’ after ‘Any’;

            (II) by striking ‘and any eligible institution which’ and inserting ‘or’; and

            (III) by striking ‘part B’ and inserting ‘part B or D’;

        (D) in paragraph (15), by striking ‘State review entities’ and inserting ‘the State agencies’;

        (E) by striking paragraph (18);

        (F) by redesignating paragraphs (19) through (22) as paragraphs (18) through (21), respectively; and

        (G) by amending paragraph (20) (as redesignated by subparagraph (F)) to read as follows:

      ‘(20) 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.’; and

      (2) in subsection (c)--

        (A) in paragraph (1)(A)(i), by striking ‘State review entities referred to in’ and inserting ‘appropriate State agency notifying the Secretary under’;

        (B) in paragraph (4), by striking ‘, after consultation with each State review entity designated under subpart 1 of part H,’; and

        (C) in paragraph (5), by striking ‘State review entities designated’ and inserting ‘State agencies notifying the Secretary’.

SEC. 489. 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 Program that provides participating institutions with an alternative management approach through which individual schools develop and implement their own comprehensive systems, including 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. 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.

      ‘(2) 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.

      ‘(3) 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.

      ‘(4) 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 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 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.

      ‘(2) SELECTION-

        ‘(A) IN GENERAL- The Secretary is authorized to select a limited number of 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, except that additional institutions may not be selected by the Secretary until the report required by subsection (b)(1) has been submitted to Congress.

        ‘(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--

          ‘(i) 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) the objectives to be achieved through the experiment; and

          ‘(iii) 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 experimental results.

    ‘(c) DEFINITIONS- For purposes of this section, the term ‘current award year’ is defined as the award year during which the participating institution indicates the institution’s intention to cease participation.’.

SEC. 489A. DISTANCE EDUCATION DEMONSTRATION PROGRAMS.

    Part G (20 U.S.C. 1088 et seq.) is amended by inserting after section 487B (20 U.S.C. 1094a) the following:

‘SEC. 487C. 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 to test the quality and viability of expanded distance education programs currently restricted under this Act;

      ‘(2) to help determine the specific statutory and regulatory requirements which should be altered to provide greater access to high quality distance education programs; and

      ‘(3) to help determine the appropriate level of Federal assistance for students enrolled in distance education programs.

    ‘(b) DEMONSTRATION PROGRAMS AUTHORIZED-

      ‘(1) IN GENERAL- The Secretary, in accordance with the provisions of subsection (d), is authorized to select institutions of higher education 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 or consortia participating in a Distance Education Demonstration Program, 1 or more of the requirements of section 472(5) as the section relates to computer costs, sections 472(10), 481(a)(3)(A), 481(a)(3)(B), 484(l)(1), or 1 or more of the regulations prescribed for distance education under part F or G.

      ‘(3) SPECIAL RULE- An institution of higher education, as defined in section 481(a), is eligible to participate in the demonstration program authorized under this section if such institution awards a degree, except that--

        ‘(A) such institutions that are described in section 481(a)(1)(C) shall not be eligible to participate; and

        ‘(B) subject to subparagraph (A), such institutions that meet the requirements of subsection (a) of section 481, other than the requirements of paragraph (3)(A) or (3)(B) of such subsection, shall be eligible to participate.

    ‘(c) APPLICATION-

      ‘(1) IN GENERAL- Each institution or consortia of institutions desiring to participate in a demonstration program under this section shall submit an application to the 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 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) 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 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- The Secretary is authorized to select not more than 5 institutions or consortia to participate in the initial year of the demonstration program authorized under this section. If expansion of the demonstration program can be supported on the basis of the evaluations conducted pursuant to subsections (f) and (g), the Secretary may select not more than 10 additional institutions or consortia, taking into account the number and quality of applications received and the Department’s capacity to oversee and monitor each demonstration program. To the extent feasible, the Secretary shall select a representative sample of institutions for participation. In selecting institutions for participation, the Secretary shall take into consideration the institution’s financial and administrative capability and the type of program or programs being offered via distance education course offerings.

    ‘(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 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 or consortia and a description of the distance education courses to be offered.

    ‘(f) EVALUATIONS AND REPORTS-

      ‘(1) EVALUATION- The Secretary, on an annual basis, shall evaluate the demonstration programs authorized under this section. Such evaluations shall specifically review--

        ‘(A) the number and types of students participating in the programs being offered, including the progress of participating students toward recognized associate, bachelor’s, or graduate degrees, and the degree to which participation in such programs increased;

        ‘(B) issues related to student financial assistance for distance education; and

        ‘(C) the extent to which statutory or regulatory requirements not waived under the demonstration program present difficulties for students or institutions.

      ‘(2) POLICY ANALYSIS- In addition, the Secretary shall review current policies and identify those policies which present impediments to the development and use of distance education and other nontraditional methods of expanding access to education.

      ‘(3) REPORTS-

        ‘(A) 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 the demonstration programs authorized under this section.

    ‘(g) INDEPENDENT EVALUATION-

      ‘(1) IN GENERAL- The Secretary shall enter into a contract with the National Academy of Sciences to study the quality of and student learning outcomes in distance education programs. Such study shall include--

        ‘(A) identification of the elements by which quality in distance education can be assessed, such as subject matter, interactivity, and student outcomes; and

        ‘(B) identification of the types of students which can most benefit from distance education in areas such as access to higher education, persistence, and graduation.

      ‘(2) SCOPE- Such study shall include distance education programs offered by the institutions or consortia participating in the demonstration program authorized by this section, as well as the distance education programs offered by other institutions.

      ‘(3) INTERIM AND FINAL REPORTS- The Secretary shall request that the National Academy of Sciences submit an interim 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 not later than December 31, 2000, and a final report not later than December 31, 2002, regarding the study.

      ‘(4) FUNDING- The Secretary shall make available not more than $1,000,000 for the study required by this subsection.

    ‘(h) OVERSIGHT- In conducting the demonstration program authorized under this section, the Secretary shall, on a continuing basis--

      ‘(1) assure compliance of institutions or consortia with the requirements of this title (other than the sections and regulations that are waived under subsection (b)(2));

      ‘(2) provide technical assistance;

      ‘(3) monitor fluctuations in the student population enrolled in the participating institutions or consortia; and

      ‘(4) consult with appropriate accrediting agencies or associations and appropriate State regulatory authorities.

    ‘(i) 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. Distance education 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. 489B. 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, 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’ and inserting ‘Members of the Advisory Committee may’;

      (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) monitor and evaluate the modernization of student financial aid systems and delivery processes, including the implementation of a performance-based organization within the 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 498A(b)(3).’;

      (7) in subsection (k), by striking ‘1998’ and inserting ‘2004’; and

      (8) by repealing subsection (l).

SEC. 489C. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.

    Section 492 (20 U.S.C. 1098a) is amended--

      (1) in subsection (a)--

        (A) in paragraph (1)--

          (i) by inserting ‘, after the enactment of each Act to reauthorize this Act that contains an amendment to this title,’ after ‘The Secretary’; and

          (ii) by inserting ‘D,’ after ‘B,’; and

        (B) in paragraph (2)--

          (i) by inserting ‘D,’ after ‘B,’; and

          (ii) by striking ‘1992’ and inserting ‘1998, and for the implementation of this title as amended by each Act to reauthorize this Act enacted after the date of enactment of the Higher Education Amendments of 1998 that contains an amendment to this title’; and

      (2) in subsection (b)--

        (A) by striking ‘After’ and inserting the following:

      ‘(1) IN GENERAL- After’;

        (B) in paragraph (1) (as redesignated by subparagraph (A))--

          (i) by inserting ‘D,’ after ‘B,’; and

          (ii) by striking ‘1992’ and inserting ‘1998, and for the implementation of this title as amended by each Act to reauthorize this Act enacted after the date of enactment of the Higher Education Amendments of 1998 that contains an amendment to this title,’; and

        (C) by adding at the end the following:

      ‘(2) EXPANSION OF NEGOTIATED RULEMAKING IN STUDENT LOAN PROGRAMS- All regulations pertaining to the student assistance programs in parts B, D, G, and H, that are promulgated after the date of enactment of this paragraph, shall be subject to the negotiated rulemaking process, unless the Secretary determines that exceptional circumstances exist making negotiated rulemaking impractical with respect to given regulations and publishes the basis for such determination in the Federal Register at the same time as the proposed regulations in questions are first published. All published proposed regulations shall conform, unless impracticable, to agreements resulting from such negotiated rulemaking. Such negotiated rulemaking shall be conducted in accordance with the provisions of paragraph (1).’.

PART H--PROGRAM INTEGRITY TRIAD

SEC. 491. STATE ROLE AND RESPONSIBILITIES.

    Subpart 1 of part H of title IV (20 U.S.C. 1099a et seq.) is amended to read as follows:

‘Subpart 1--State Role

‘SEC. 495. STATE RESPONSIBILITIES.

    ‘(a) STATE RESPONSIBILITIES- As part of the integrity program authorized by this part, each State, through 1 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) AMENDMENTS TO HEADINGS- Subpart 2 of part H of title IV (20 U.S.C. 1099b et seq.) is amended--

      (1) in the subpart heading, by striking ‘Approval’ and inserting ‘Recognition’; and

      (2) in the heading for section 496, by striking ‘approval’ and inserting ‘recognition’.

    (b) RECOGNITION OF ACCREDITING AGENCY OR ASSOCIATION- Section 496 (20 U.S.C. 1099b) is amended--

      (1) in the heading for subsection (a), by striking ‘STANDARDS’ and inserting ‘CRITERIA’;

      (2) in subsection (a)--

        (A) in the matter preceding paragraph (1), by striking ‘standards’ each place the term appears and inserting ‘criteria’;

        (B) in paragraph (4)--

          (i) by striking ‘at the institution’ and inserting ‘offered by the institution’; and

          (ii) by inserting ‘, including distance education courses or programs,’ after ‘higher education’; and

        (C) in paragraph (5)--

          (i) by striking subparagraph (I);

          (ii) by redesignating subparagraphs (A) through (H) as subparagraphs (B) through (I), respectively;

          (iii) 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 examination, and job placement rates;’;

          (iv) in subparagraph (I) (as redesignated by clause (ii)), by striking ‘in clock hours or credit hours’; and

          (v) in subparagraph (L)--

            (I) by inserting ‘record of’ before ‘compliance’;

            (II) by striking ‘Act, including any’ and inserting ‘Act based on the’;

            (III) by inserting ‘any’ after ‘reviews, and’; and

            (IV) in the matter following subparagraph (L), by striking ‘(G),’;

      (3) by amending paragraph (1) of subsection (l) to read as follows: ‘(1)(A)(i) If the Secretary determines that an accrediting agency or association has failed to apply effectively the standards in this section, or is otherwise not in compliance with the requirements of this section, the Secretary shall--

        ‘(I) after notice and opportunity for a hearing, limit, suspend, or terminate the approval of the agency or association; or

        ‘(II) require the agency or association to take appropriate action to bring the agency or association into compliance with such requirements within a timeframe specified by the Secretary, except that--

          ‘(aa) such timeframe shall not exceed 12 months unless the Secretary extends such period for good cause; and

          ‘(bb) 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 approval of the agency or association.’; and

      (4) in subsection (n)(3), 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.’.

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 1 or more of the programs under part B or D.’.

    (b) FINANCIAL RESPONSIBILITY STANDARDS- Section 498(c) (20 U.S.C. 1099c(c)) is amended--

      (1) in paragraph (2), 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,’;

      (2) in paragraph (3)(A), by striking ‘Secretary third party’ and all that follows through ‘payable to the Secretary’ and inserting ‘Secretary any third party guarantees, which the Secretary determines are reasonable, that’; 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- Section 498(e) (20 U.S.C. 1099c(e)) is amended--

      (1) in the subsection heading, by inserting ‘OF FOR-PROFIT INSTITUTIONS’ after ‘OWNERS’;

      (2) in paragraph (1)(A), by striking ‘from an’ and inserting ‘from a for-profit’;

      (3) in paragraph (2)--

        (A) in the matter preceding clause (i) of subparagraph (A), by inserting ‘for-profit’ after ‘or more’;

        (B) in subparagraph (B), by inserting ‘for-profit’ after ‘or more’; and

      (4) in paragraph (3), by striking ‘operation of, an institution or’ and inserting ‘operation of, a for-profit institution or the’.

    (d) APPLICATIONS AND SITE VISITS- Section 498(f) (20 U.S.C. 1099c(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, strike ‘may’ and insert ‘shall’; and

      (4) by striking the fourth sentence.

    (e) TIME LIMITATIONS ON, AND RENEWAL OF, ELIGIBILITY- Subsection (g) of section 498 (20 U.S.C. 1099c) 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 in effect prior to the enactment 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) 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) 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 481(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) (20 U.S.C. 1099c(h)) is amended--

      (1) in paragraph (1)(B)(ii), by striking ‘an eligible’ and inserting ‘a for-profit eligible’; and

      (2) in paragraph (2), by striking ‘the approval’ and inserting ‘the recognition’.

    (g) TREATMENT OF CHANGES OF OWNERSHIP- Section 498(i) (20 U.S.C. 1099c(i)) is amended--

      (1) in the subsection heading, by inserting ‘OF FOR-PROFIT INSTITUTIONS’ after ‘OWNERSHIP’; and

      (2) in paragraph (2)--

        (A) in subparagraph (A), by inserting ‘for-profit’ before ‘institution’;

        (B) in subparagraph (C), by striking ‘two’ and inserting ‘a for-profit institution with one’;

        (C) in subparagraph (D), by inserting ‘for-profit’ before ‘institutions’;

        (D) in subparagraph (E), by inserting ‘for-profit’ before ‘institutions’; and

        (E) in subparagraph (F), by inserting ‘for-profit’ before ‘institution’.

    (h) TREATMENT OF BRANCHES- The second sentence of section 498(j)(1) (20 U.S.C. 1099c(j)(1)) is amended by inserting ‘after the branch is certified by the Secretary as a branch campus participating in a program under title IV,’ 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;’;

          (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-

      ‘(1) IN GENERAL- In carrying out paragraphs (1) and (2) of subsection (a) and any other relevant provisions of this title, the Secretary shall--

        ‘(A) establish guidelines designed to ensure uniformity of practice in the conduct of program reviews of institutions of higher education;

        ‘(B) make available to each institution participating in programs authorized under this title complete copies of all review guidelines and procedures used in program reviews;

        ‘(C) 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;

        ‘(D) 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

        ‘(E) 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.

      ‘(2) UNIFORMITY OF APPLICATION OF REGULATIONS- The Secretary shall review the regulations of the Department and the application of such regulations to ensure the uniformity of interpretation and application of the regulations.

      ‘(3) NONDUPLICATION AND COORDINATION- The Secretary shall establish a process for ensuring that eligibility and compliance issues, such as institutional audit, program review, and recertification, are considered simultaneously, and shall establish a process for identifying unnecessary duplication of reporting and related regulatory requirements. In developing such processes, the Secretary shall consult with relevant representatives of institutions participating in the programs authorized by this title.’.

PART I--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL ASSISTANCE

SEC. 495. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL STUDENT FINANCIAL ASSISTANCE.

    Title IV (20 U.S.C. 1070 et seq.) is amended by adding at the end the following:

‘PART I--ADMINISTRATIVE PROVISIONS FOR DELIVERY OF STUDENT FINANCIAL ASSISTANCE

‘SEC. 499. PERFORMANCE-BASED ORGANIZATION FOR THE DELIVERY OF FEDERAL STUDENT FINANCIAL ASSISTANCE.

    ‘(a) ESTABLISHMENT- The Secretary shall establish in the Department a performance-based organization (hereafter in this part referred to as the ‘PBO’) to administer various functions relating to student financial assistance programs authorized under this title.

    ‘(b) OVERSIGHT AND AUTHORITY-

      ‘(1) POLICY OVERSIGHT AND DIRECTION- The Secretary shall maintain responsibility for the policy relating to functions managed by the PBO, and the PBO shall remain subject to the Secretary’s oversight and direction.

      ‘(2) 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.

      ‘(3) 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 (e).

        ‘(B) REVISIONS TO AGREEMENT- The Secretary and the Chief Operating Officer may revise the annual performance agreement described in subsection (f)(2) in light of policy, market, or other changes that occur after the Secretary and the PBO enter into the agreement.

    ‘(c) PURPOSES OF PBO- The purposes of the PBO are--

      ‘(1) to improve service to students and other participants in the student financial assistance programs authorized under this title, including making those programs more understandable to students and their parents;

      ‘(2) to reduce the costs of administering those programs;

      ‘(3) to increase the accountability of the officials responsible for administering those programs;

      ‘(4) to provide greater flexibility in the administration of those programs;

      ‘(5) to improve and integrate the information and delivery systems that support those programs; and

      ‘(6) to develop and maintain a student financial assistance system that contains complete, accurate, and timely data to ensure program integrity.

    ‘(d) FUNCTIONS-

      ‘(1) IN GENERAL- Subject to subsection (b) of this section, the PBO shall be responsible for administration of the information and financial systems that support student financial assistance programs authorized under this title, including--

        ‘(A) collecting, processing, and transmitting applicant data to students, institutions, and authorized third parties, as provided for in section 483;

        ‘(B) contracting for the information and financial systems supporting student financial assistance programs under this title;

        ‘(C) developing technical specifications for software and systems that support those programs; and

        ‘(D) providing all customer service, training, and user support related to systems that support those programs.

      ‘(2) ADDITIONAL FUNCTIONS- The Secretary may allocate to the PBO such additional functions as the Secretary determines necessary or appropriate to achieve the purposes of the PBO.

    ‘(e) 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, the Secretary and the Chief Operating Officer shall consult with students, institutions of higher education, Congress, lenders, and other interested parties not less than 30 days prior to the implementation of the performance plan.

        ‘(C) AREAS- 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.

    ‘(f) CHIEF OPERATING OFFICER-

      ‘(1) APPOINTMENT-

        ‘(A) IN GENERAL- 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.

        ‘(B) BASIS- The appointment shall be made on the basis of demonstrated ability in management and experience in information technology or financial services, without regard to political affiliation or activity.

        ‘(C) 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 (2), is satisfactory.

      ‘(2) 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) TRANSMITTAL- 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.

      ‘(3) 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)(C) 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 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.

      ‘(4) REMOVAL- The Chief Operating Officer shall be removable--

        ‘(A) by the President; or

        ‘(B) by the Secretary for misconduct or failure to meet the goals set forth in the performance agreement described in paragraph (2).

    ‘(g) 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.

      ‘(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 5.

        ‘(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 Secretary or by the Chief Operating Officer.

    ‘(h) 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 section, including transition costs.’.

TITLE V--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS

SEC. 501. REPEALS, TRANSFERS, AND REDESIGNATIONS.

    (a) IN GENERAL- Title V (20 U.S.C. 1101 et seq.) is amended--

      (1) by amending the title heading to read as follows:

‘TITLE V--GRADUATE AND POSTSECONDARY IMPROVEMENT PROGRAMS’;

      (2) by repealing parts A, B, C, D, E, and F of title V (20 U.S.C. 1102 et seq., 1103 et seq., 1104 et seq., 1107 et seq., 1111 et seq., and 1113 et seq.);

      (3) by transferring part C of title IX, part D of title IX, part A of title XI, and part A of title X (20 U.S.C. 1134h et seq., 1134l et seq., 1136 et seq., and 1135 et seq.) to title V and redesignating such parts as parts A, B, C, and D, respectively;

      (4) by redesignating sections 931 through 935 (20 U.S.C. 1134h et seq. and 1134k-1 et seq.) as sections 511 through 515, respectively;

      (5) by redesignating sections 941 through 947 (20 U.S.C. 1134l and 1134q-1) as section 521 through 527, respectively;

      (6) by redesignating sections 1101 through 1109 (20 U.S.C. 1136 through 1136h) as sections 531 through 539, respectively; and

      (7) by redesignating sections 1001, 1002, 1003, 1004, and 1011 (20 U.S.C. 1135, 1135a-1, 1135a-2, 1135a-3, and 1135a-11) as sections 541, 542, 543, 544, and 551, respectively.

    (b) Cross Reference Conforming Amendments-

      (1) JACOB K. JAVITS FELLOWSHIP PROGRAM- Section 514(a) (as redesignated by subsection (a)(4)) (20 U.S.C. 1134k(a)) is amended by striking ‘933’ and inserting ‘513’.

      (2) GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED- Part B of title V (as redesignated by paragraphs (3) and (5) of subsection (a)) (20 U.S.C. 1134l et seq.) is amended--

        (A) in section 524(b)(7) (as redesignated by subsection (a)(5)) (20 U.S.C. 1134o(b)(7)), by striking ‘945’ and inserting ‘525’; and

        (B) in section 525(c) (as redesignated by subsection (a)(5)) (20 U.S.C. 1134p(c))--

          (i) by striking ‘946(a)’ and inserting ‘526(a)’; and

          (ii) by striking ‘944(b)(2)’ and inserting ‘524(b)(2)’.

      (3) URBAN AND COMMUNITY SERVICE- Part C of title V (as redesignated by paragraphs (3) and (6) of subsection (a)) (20 U.S.C. 1136 et seq.) is amended--

        (A) in section 532(b) (20 U.S.C. 1136a(b)), by striking ‘1104’ and inserting ‘534’;

        (B) in section 534(12) (20 U.S.C. 1136c(12)), by striking ‘1103(a)(2)(B)’ and inserting ‘533(a)(2)(B)’; and

        (C) in section 538(1) (20 U.S.C. 1136g(1)), by striking ‘1103’ and inserting ‘533’.

      (4) FIPSE- Subsections (b) and (c) of section 544 (as redesignated by subsection (a)(7)) (20 U.S.C. 1135a-3) each are amended by striking ‘1001(b)’ and inserting ‘541(b)’.

SEC. 502. PURPOSE.

    Section 500 (20 U.S.C. 1101) is amended to read as follows:

‘SEC. 500. PURPOSE.

    ‘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--JACOB K. JAVITS FELLOWSHIP PROGRAM

SEC. 511. AWARD OF FELLOWSHIPS.

    (a) AWARD OF JACOB K. JAVITS FELLOWSHIPS- Section 511 (as redesignated by section 501(4)) is amended--

      (1) in subsection (a)--

        (A) in the first sentence, by inserting ‘, financial need,’ after ‘demonstrated achievement’;

        (B) in the second sentence--

          (i) by striking ‘students intending’ and inserting ‘students who are eligible to receive any grant, loan, or work assistance pursuant to section 484 and intend’; and

          (ii) by striking ‘commonly accepted’ and all that follows through ‘degree-granting institution’ and inserting ‘the terminal highest degree awarded in the area of study’; and

        (C) in the third sentence, by inserting ‘following the fiscal year’ after ‘July 1 of the fiscal year’; and

      (2) by adding at the end the following:

    ‘(d) 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.’.

    (b) ALLOCATION OF FELLOWSHIPS- Section 512 (as redesignated by section 501(4)) (20 U.S.C. 1134i) is amended--

      (1) in subsection (a)--

        (A) in the third sentence of paragraph (1), by striking ‘knowledgeable about and have experience’ and inserting ‘representative of a range of disciplines’; and

        (B) in paragraph (2)--

          (i) by amending subparagraph (B) to read as follows:

        ‘(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 a nongovernmental entity to administer the program assisted under this part, by such nongovernmental entity;’; and

          (ii) in subparagraph (C), by inserting ‘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’ before the semicolon; and

      (2) in the first sentence of subsection (b), by inserting ‘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’ before the period.

    (c) STIPENDS- Section 513 (as redesignated by section 501(4)) (20 U.S.C. 1134j) is amended--

      (1) in subsection (a)--

        (A) by striking ‘1993-1994’ and inserting ‘1999-2000’; and

        (B) by striking ‘according to measurements of need approved by the Secretary’ and inserting ‘determined in accordance with part F of title IV’; and

      (2) in subsection (b)(1)(A)--

        (A) in clause (i)--

          (i) by striking ‘$6,000’ and inserting ‘$10,000’; and

          (ii) by striking ‘1993-1994’ and inserting ‘1999-2000’; and

        (B) in clause (ii)--

          (i) in the matter preceding subclause (I), by striking ‘1993-1994’ and inserting ‘1999-2000’;

          (ii) in subclause (I), by striking ‘$9,000 for the academic year 1993-1994’ and inserting ‘$10,000 for the academic year 1999-2000’; and

          (iii) in subclause (II), by striking ‘$9,000’ and inserting ‘$10,000’.

    (d) AUTHORIZATION OF APPROPRIATIONS- Section 515 (as redesignated by section 501(4)) (20 U.S.C. 1134k-1) is amended by striking ‘1993’ and inserting ‘1999’.

PART B--GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED

SEC. 521. GRADUATE ASSISTANCE IN AREAS OF NATIONAL NEED.

    (a) DESIGNATION OF AREAS OF NATIONAL NEED- Subsection (b) of section 523 (as redesignated by section 501(5)) (20 U.S.C. 1134n) is amended to read as follows:

    ‘(b) DESIGNATION OF AREAS OF NATIONAL NEED- After consultation with the National Science Foundation, the National Academy of Sciences, and other appropriate Federal and nonprofit agencies and organizations, the Secretary shall designate areas of national need. In making such designations, the Secretary shall take into consideration--

      ‘(1) the extent to which the national interest in the area is compelling;

      ‘(2) the extent to which other Federal programs support postbaccalaureate study in the area concerned; and

      ‘(3) an assessment of how the program may achieve the most significant impact with available resources.’.

    (b) CONTENT OF APPLICATIONS- Section 524(b) (as redesignated by section 501(5)) (20 U.S.C. 1134o(b)) is amended--

      (1) in paragraph (2)--

        (A) by striking ‘funds’ and inserting ‘sources’; and

        (B) by inserting ‘, which contribution may be in cash or in kind, fairly valued’ before the semicolon;

      (2) by redesignating paragraphs (4) through (9) as paragraphs (5) through (10), respectively;

      (3) by inserting after paragraph (3) the following:

      ‘(4) describe the number, types, and amounts of the fellowships that the applicant intends to offer with grant funds provided under this part;’ and

      (4) in paragraph (5)(A) (as redesignated by paragraph (2)), by striking ‘criteria developed by the institution’ and inserting ‘part F of title IV’.

    (c) AWARDS- Section 525 (as redesignated by section 501(5)) (20 U.S.C. 1134p) is amended--

      (1) in the third sentence of subsection (b)--

        (A) by striking ‘1993-1994’ and inserting ‘1999-2000’; and

        (B) by striking ‘according to measurements of need approved by the Secretary’ and inserting ‘determined in accordance with part F of title IV’; and

      (2) in subsection (c), by striking ‘such payments’ and inserting ‘such excess’.

    (d) INSTITUTIONAL PAYMENTS- Section 526(a)(1) (as redesignated by section 501(5)) (20 U.S.C. 1134q(a)(1)) is amended--

      (1) in subparagraph (A)--

        (A) by striking ‘$6,000 annually’ and inserting ‘$10,000 for each academic year,’; and

        (B) by striking ‘1993-1994’ and inserting ‘1999-2000’; and

      (2) in subparagraph (B)--

        (A) in the matter preceding clause (i), by striking ‘1993-1994’ and inserting ‘1999-2000’;

        (B) in clause (i), by striking ‘$9,000 for the academic year 1993-1994’ and inserting ‘$10,000 for the academic year 1999-2000’; and

        (C) in clause (ii), by striking ‘$9,000’ and inserting ‘$10,000’.

    (e) AUTHORIZATION OF APPROPRIATIONS- Section 527 (as redesignated by section 501(5)) (20 U.S.C. 1134q-1) is amended by striking ‘$40,000,000 for fiscal year 1993’ and inserting ‘$30,000,000 for fiscal year 1999’.

PART C--URBAN COMMUNITY SERVICE

SEC. 531. URBAN COMMUNITY SERVICE.

    (a) PRIORITY- Section 533(b) (as redesignated by section 501(a)(6)) (20 U.S.C. 1136b(b)) is amended by adding at the end the following: ‘In addition, the Secretary shall give priority to eligible institutions submitting applications that demonstrate the eligible institution’s commitment to urban community service.’.

    (b) AUTHORIZATION OF APPROPRIATIONS- Section 539 (as redesignated by section 501(a)(6)) (20 U.S.C. 1136h) is amended by striking ‘1993’ and inserting ‘1999’.

PART D--FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION

SEC. 541. FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION.

    (a) AUTHORITY- Section 541(a) (as redesignated by section 501(a)(7)) (20 U.S.C. 1135(a)) is amended--

      (1) in the matter preceding paragraph (1)--

        (A) by striking ‘or combinations of such institutions’ and inserting ‘, combinations of such institutions,’; and

        (B) by striking ‘institutions and combinations of such institutions’ and inserting ‘institutions, combinations, and agencies’; and

      (2) in paragraph (2)--

        (A) by striking ‘and programs involving new’ and inserting ‘, programs and joint efforts involving’; and

        (B) by striking ‘new combinations’ and inserting ‘combinations’.

    (b) TECHNICAL EMPLOYEES- Section 543(a) (as redesignated by section 501(a)(7)) (20 U.S.C. 1135a-2(a)) is amended by striking ‘5 technical’ and inserting ‘7 technical’.

    (c) AUTHORIZATION OF APPROPRIATIONS- Section 544 (as redesignated by section 501(a)(7)) (20 U.S.C. 1135a-3) is amended--

      (1) in subsection (a), by striking ‘$20,000,000 for fiscal year 1993’ and inserting ‘$26,000,000 for fiscal year 1999’; and

      (2) in subsection (b), by striking ‘1993’ and inserting ‘1999’.

    (d) AREAS OF NATIONAL NEED-

      (1) AREAS- Section 551(c) (as redesignated by section 501(a)(7)) (20 U.S.C. 1135a-11(c)) is amended--

        (A) in paragraph (2), by striking ‘Campus climate and culture’ and inserting ‘Institutional restructuring to improve learning and promote cost efficiencies’;

        (B) in paragraph (3), by inserting ‘of model programs’ after ‘dissemination’; and

        (C) by adding at the end the following:

      ‘(4) Articulation between 2-year and 4-year institutions of higher education, including developing innovative methods for ensuring the successful transfer of students from 2-year to 4-year institutions of higher education.’.

      (2) AUTHORIZATION OF APPROPRIATIONS- Section 551(d) (as redesignated by section 501(a)(7)) (20 U.S.C. 1135a-11(d)) is amended by striking ‘1993’ and inserting ‘1999’.

PART E--HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES; HISPANIC-SERVING INSTITUTIONS; GENERAL PROVISIONS

SEC. 551. HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES; HISPANIC-SERVING INSTITUTIONS; GENERAL PROVISIONS.

    Title V (20 U.S.C. 1101 et seq.) is amended further by adding at the end the following:

‘PART E--HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES

‘SEC. 571. HIGHER EDUCATION ACCESS FOR STUDENTS WITH DISABILITIES.

    ‘(a) PURPOSE- It is the purpose of this part--

      ‘(1) to support the development of model programs to provide technical assistance or training, and professional development, for faculty and administrators in institutions of higher education, as defined in section 481(a), to provide the faculty and administrators with the skills and assistance to teach effectively students with disabilities; and

      ‘(2) to ensure effective evaluation and dissemination of such model programs.

    ‘(b) GRANTS AUTHORIZED-

      ‘(1) IN GENERAL- The Secretary is authorized to award grants to institutions of higher education to carry out the purposes of this part.

      ‘(2) MODEL PROGRAMS- To the extent feasible, the model programs developed under this part shall be developed for a range of types and sizes of institutions of higher education.

      ‘(3) GEOGRAPHIC DISTRIBUTION- In awarding grants under this part, the Secretary shall consider--

        ‘(A) providing an equitable geographic distribution of such grants; and

        ‘(B) distributing such grants to urban and rural areas.

      ‘(4) APPROACHES- The Secretary shall award grants under this part for a range of approaches to providing support to faculty and administrators, such as in-service training, professional development, customized and general technical assistance, workshops, summer institutes, distance learning and the use of educational technology.

    ‘(c) DISSEMINATION OF GRANTS- The Secretary may award grants to institutions of higher education that have demonstrated exceptional programs for students with disabilities under this part in order to disseminate those programs.

    ‘(d) APPLICATIONS- Each institution of higher education desiring a grant 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 such application shall include--

      ‘(1) a plan to assess the needs of the institution of higher education in order to meet the purposes of this part, in consultation with a broad range of persons within that institution; and

      ‘(2) a plan for coordinating with or collaborating with the office within the institution that provides services to students with disabilities, and the equal opportunity office within the institution, if the offices exist.

    ‘(e) USE OF FUNDS- Any institution of higher education receiving a grant under this part--

      ‘(1) shall use the grant funds to--

        ‘(A) meet the purposes of this section; and

        ‘(B) ensure that projects assisted under this part include components for model development, demonstration, evaluation, and dissemination to other institutions of higher education; and

      ‘(2) may include, to the extent practicable, graduate teaching assistants in the services provided under the grant.

    ‘(f) GRANT AWARDS- The Secretary shall award grants under this part for a period of 3 years.

    ‘(g) CONSTRUCTION- Nothing in this section shall be construed to impose any additional duty, obligation, or responsibility on an institution of higher education, or on the institution’s administrators, faculty, or staff, in addition to the requirements of section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990.

    ‘(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.

‘PART F--HISPANIC-SERVING INSTITUTIONS

‘SEC. 581. PURPOSE.

    ‘The purpose of this part 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.

‘SEC. 582. PROGRAM AUTHORIZED.

    ‘(a) IN GENERAL- 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.

    ‘(b) AUTHORIZED ACTIVITIES-

      ‘(1) TYPES OF ACTIVITIES AUTHORIZED- Grants awarded under this section shall be used by Hispanic-serving institutions of higher education to assist such institutions to plan, develop, undertake, and carry out programs to improve and expand such institutions’ capacity to serve Hispanic students and other low-income students.

      ‘(2) EXAMPLES OF AUTHORIZED ACTIVITIES- The programs 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) 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 their 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;

        ‘(H) academic tutoring and counseling programs and student support services; and

        ‘(I) 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.

      ‘(3) ENDOWMENT FUND-

        ‘(A) IN GENERAL- A Hispanic-serving 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.

        ‘(B) MATCHING REQUIREMENT- In order to be eligible to use grant funds in accordance with subparagraph (A), the Hispanic-serving institution shall provide matching 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) 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 paragraph, shall apply to funds used under subparagraph (A).

    ‘(c) WAIT-OUT-PERIOD- Each Hispanic-serving institution that receives a grant under this part shall not be eligible to receive an additional grant under this part until 2 years after the date on which the preceding grant period terminates.

‘SEC. 583. APPLICATION PROCESS.

    ‘(a) INSTITUTIONAL ELIGIBILITY- Each Hispanic-serving institution desiring to receive assistance under this part 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 585, along with such other data and information as the Secretary may by regulation require.

    ‘(b) APPLICATIONS- Any institution which is determined by the Secretary to be a Hispanic-serving institution (on the basis of the data and information submitted under subsection (a)) may submit an application for assistance under this part to the Secretary. Such application shall include--

      ‘(1) a 5-year plan for improving the assistance provided by the Hispanic-serving institution to Hispanic students and other low-income individuals; and

      ‘(2) such other information and assurance as the Secretary may require.

    ‘(c) 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 part) 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.

‘SEC. 584. SPECIAL RULE.

    ‘No Hispanic-serving institution that is eligible for and receives funds under this part may receive funds under part A or B of title III during the period for which funds under this part are awarded.

‘SEC. 585. DEFINITIONS.

    ‘For purposes of this part:

      ‘(1) HISPANIC-SERVING INSTITUTION- The term ‘Hispanic-serving institution’ means an institution of higher education which--

        ‘(A) is an eligible institution under section 312(b);

        ‘(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 its Hispanic students are low-income individuals.

      ‘(2) 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.

‘SEC. 586. AUTHORIZATION OF APPROPRIATIONS.

    ‘There are authorized to be appropriated to carry out this part $45,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years.

‘PART G--GENERAL PROVISIONS

‘SEC. 591. ADMINISTRATIVE PROVISIONS FOR PARTS A AND B.

    ‘(a) COORDINATED ADMINISTRATION- In carrying out the purpose described in section 500(1), the Secretary shall provide for coordinated administration and regulation of graduate programs assisted under parts A and B 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 parts A and B, 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 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 513(b) or 526 shall be paid to a school or department of divinity as a result of the award of a fellowship under part A or B, 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 part A or B 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 parts A and B, 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.’.

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.

    ‘(a) FINDINGS- The Congress finds that--

      ‘(1) the well-being of the United States, its economy and long-range security, is dependent on the education and training of Americans in international and foreign language studies and on a strong research base in these areas;

      ‘(2) knowledge of other countries and the ability to communicate in other languages is essential to the promotion of mutual understanding and cooperation among nations; and

      ‘(3) 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.

    ‘(b) PURPOSES- It is the purpose of this part--

      ‘(1) to assist in the development of knowledge, international study, resources and trained personnel;

      ‘(2) to stimulate the attainment of foreign language acquisition and fluency;

      ‘(3) to develop a pool of international experts to meet national needs; and

      ‘(4) to coordinate the programs of the Federal Government in the areas of foreign language, area and other international studies, including professional international affairs education, and research.

‘SEC. 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 language and area centers and programs; and

          ‘(ii) to make grants to such institutions or combinations for the purpose of establishing, strengthening, and operating a diverse network of undergraduate language and area 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 which 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) faculty, staff, and student travel in foreign areas, regions, or countries;

        ‘(B) teaching and research materials;

        ‘(C) curriculum planning and development;

        ‘(D) bringing visiting scholars and faculty to the center to teach or to conduct research;

        ‘(E) 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; and

        ‘(F) training and improvement of the staff, for the purpose of, and subject to such conditions as the Secretary finds necessary for, carrying out this section.

      ‘(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, and other international fields and professional schools and colleges.

        ‘(B) Programs of linkage or outreach with 2-year 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 out the programs of linkage and outreach in subparagraphs (A), (B), (C), and (D).

    ‘(b) STIPENDS FOR FOREIGN LANGUAGE AND AREA 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) REQUIREMENTS- 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.

      ‘(3) 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.

    ‘(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.

‘SEC. 603. LANGUAGE RESOURCE CENTERS.

    ‘(a) 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) the publication and dissemination to individuals and organizations in the foreign language field 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, provide professional development, and 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. 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 LANGUAGES-

      ‘(1) AUTHORITY- The Secretary is authorized to make grants to institutions of higher education, combinations of such institutions, or partnerships between nonprofit educational institutions 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 area studies, foreign languages, and other international fields.

      ‘(2) FEDERAL SHARE AND USE OF FUNDS- Grants made under this section may be used to pay not more than 50 percent 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 the expansion of library and teaching resources;

        ‘(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-year and 4-year institutions of higher education, or baccalaureate and post-baccalaureate programs or institutions;

        ‘(F) the development of undergraduate study abroad programs in locations abroad in which such study opportunities are not otherwise available and the integration of these programs into specific on-campus degree programs;

        ‘(G) the development of model programs to enhance the effectiveness of study abroad, including predeparture and post return programs;

        ‘(H) the development of programs designed to integrate professional and technical education with area studies, foreign languages, and other international fields;

        ‘(I) the conduct of summer institutes in foreign area, foreign language, and other international fields for purposes that are consistent with the projects and activities described in this subsection; and

        ‘(J) the development of partnerships between institutions of higher education and the private sector, government, and elementary and secondary education institutions to enhance international knowledge.

      ‘(3) NON-FEDERAL SHARE- The non-Federal share of the cost of the programs assisted under this subsection may be provided either in cash or in kind. Such assistance may be composed of institutional and noninstitutional funds, including State, private sector, corporation, or foundation contributions.

      ‘(4) 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 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.

      ‘(5) GRANT CONDITIONS- Grants under this subsection shall be made on such conditions as the Secretary determines to be necessary to carry out this subsection.

      ‘(6) 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 funds expended by the

institution, prior to the receipt of the Federal assistance, for programs to improve undergraduate instruction in international studies and foreign languages.

      ‘(7) 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.

‘SEC. 605. RESEARCH; STUDIES; ANNUAL REPORT.

    ‘(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;

      ‘(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;

      ‘(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 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

      ‘(8) the application of performance tests and standards across all areas of foreign language instruction and classroom use.

    ‘(b) 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. SELECTION OF CERTAIN GRANT RECIPIENTS.

    ‘(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. 607. EQUITABLE DISTRIBUTION OF CERTAIN FUNDS.

    ‘(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. 608. AMERICAN OVERSEAS RESEARCH CENTERS.

    ‘(a) 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;

      ‘(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. 609. AUTHORIZATION OF APPROPRIATIONS.

    ‘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.

    Part B of title VI (20 U.S.C. 1130 et seq.) is amended--

      (1) in section 612 (20 U.S.C. 1130-1)--

        (A) in subsection (c)--

          (i) in paragraph (1)--

            (I) in subparagraph (B), by striking ‘advanced’; and

            (II) in subparagraph (C), by striking ‘evening or summer’; and

          (ii) in paragraph (2)(C), by inserting ‘foreign language,’ after ‘studies,’; and

        (B) 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; and

      (2) in section 614 (20 U.S.C. 1130b)--

        (A) in subsection (a), by striking ‘1993’ and inserting ‘1999’; and

        (B) in subsection (b), by striking ‘1993’ and inserting ‘1999’.

SEC. 603. INSTITUTE FOR INTERNATIONAL PUBLIC POLICY.

    Part C of title VI (20 U.S.C. 1131 et seq.) is amended--

      (1) in section 621(e) (20 U.S.C. 1131(e))--

        (A) by striking ‘one-fourth’ and inserting ‘one-half’; and

        (B) by adding at the end the following: ‘The non-Federal contribution shall be made from private sector sources.’;

      (2) by redesignating sections 622 through 627 (20 U.S.C. 1131a and 1131f) as sections 623 through 628, respectively; and

      (3) by inserting after section 621 (20 U.S.C. 1131) the following:

‘SEC. 622. INSTITUTIONAL DEVELOPMENT.

    ‘(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 585;

      ‘(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.’;

      (4) in section 623 (as redesignated by paragraph (2))--

        (A) in the section heading, by striking ‘junior year’ and inserting ‘study’;

        (B) in subsection (b)(2)--

          (i) by inserting ‘, or completing the third year of study in the case of a summer abroad program,’ after ‘study’; and

          (ii) by striking ‘junior year’ and inserting ‘study’;

        (C) in subsection (c)--

          (i) in the matter preceding paragraph (1), by striking ‘junior year’ and inserting ‘study’;

          (ii) in paragraph (1), by striking ‘junior year’ and inserting ‘study’; and

          (iii) in paragraph (2)--

            (I) by striking ‘one-half’ and inserting ‘one-third’; and

            (II) by striking ‘junior year’ and inserting ‘study’;

      (5) in section 627 (as redesignated by paragraph (2)) (20 U.S.C. 1131e), by striking ‘625’ and inserting ‘626’; and

      (6) in section 628 (as redesignated by paragraph (2)) (20 U.S.C. 1131f), by striking ‘1993’ and inserting ‘1999’.

SEC. 604. GENERAL PROVISIONS.

    Section 632 (20 U.S.C. 1132-1) is repealed.

TITLE VII--RELATED PROGRAMS AND AMENDMENTS TO OTHER ACTS

PART A--INDIAN EDUCATION PROGRAMS

SEC. 711. TRIBALLY CONTROLLED COMMUNITY COLLEGE ASSISTANCE ACT OF 1978.

    (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) NAME CHANGE- The Tribally Controlled Community College Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is amended--

      (1) by striking ‘community college’ each place the term appears and inserting ‘college or university’;

      (2) by striking ‘Community College’ each place the term appears (other than when such term is preceded by the term ‘Navajo’) and inserting ‘College or University’;

      (3) by striking ‘community colleges’ each place the term appears and inserting ‘colleges or universities’;

      (4) by striking ‘such college’ each place the term appears and inserting ‘such college or university’; and

      (5) by striking ‘community college’s’ and inserting ‘college or university’s’.

SEC. 712. AMERICAN INDIAN, ALASKA NATIVE, AND NATIVE HAWAIIAN CULTURE AND ART DEVELOPMENT.

    Section 1531 of the American Indian, Alaska Native, and Native Hawaiian Culture and Art Development Act (20 U.S.C. 4451) is amended to read as follows:

‘SEC. 1531. AUTHORIZATION OF APPROPRIATIONS.

    ‘There is authorized to be appropriated to carry out part A $5,000,000 for fiscal year 1999.’.

PART B--ADVANCED PLACEMENT INCENTIVE PROGRAM

SEC. 721. ADVANCED PLACEMENT INCENTIVE PROGRAM.

    (a) PROGRAM ESTABLISHED- The Secretary of Education is authorized to make grants to States having applications approved under subsection (d), from allotments under subsection (b), 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) ALLOTMENT- From the sum appropriated under subsection (j) for a fiscal year, the Secretary shall allot to each State an amount that bears the same relation to the sum as the number of low-income individuals in the State bears to the number of low-income individuals in all States.

    (c) INFORMATION DISSEMINATION- The State educational agency may use not more than 5 percent of grant funds received for a fiscal year to disseminate information regarding the availability of test fee payments under this section to eligible individuals through secondary school teachers and guidance counselors.

    (d) REQUIREMENTS FOR APPROVAL OF APPLICATIONS- In approving applications for grants the Secretary of Education shall--

      (1) require that each such application contain a description of the advance 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 (c), shall be used only to pay advanced placement test fees; and

      (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.).

    (e) FUNDING RULE- Funds provided under this section shall be used to supplement and not supplant other Federal, State, local or private funds available to assist low-income individuals in paying for advanced placement testing, except that such funds may be used to supplant the funds so available if the funds used to supplant are used to increase the participation of low-income individuals in advanced placement courses through teacher training and other activities directly related to increasing the availability of advanced placement courses.

    (f) SPECIAL RULE- The Secretary of Education shall only award grants under this section for a fiscal year if the amount the College Board spends for the College Board’s fee assistance program for low-income students for the fiscal year is not less than the amount the College Board spent for such program for the preceding fiscal year.

    (g) REGULATIONS- The Secretary of Education shall prescribe such regulations as are necessary to carry out this section.

    (h) 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 teacher training and other activities described in subsection (e).

    (i) 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)).

    (j) AUTHORIZATION OF APPROPRIATIONS- 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 to carry out this section.

PART C--UNITED STATES INSTITUTE OF PEACE

SEC. 731. 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--COMMUNITY SCHOLARSHIP MOBILIZATION

SEC. 741. SHORT TITLE.

    This part may be cited as the ‘Community Scholarship Mobilization Act.’

SEC. 742. FINDINGS.

    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. 743. DEFINITIONS.

    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 of, responsible to, and overseen by, the 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, 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) 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. 744. PURPOSE, ENDOWMENT GRANT AUTHORITY.

    (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 746, the Secretary shall award an endowment grant, on a competitive basis, to a national organization to enable such organization to support the establishment or ongoing work of regional, State or community program centers that foster the development of local entities in high poverty areas to improve high school graduation rates and postsecondary attendance through the provision of academic support services and scholarship assistance for the cost of postsecondary education.

SEC. 745. GRANT AGREEMENT AND REQUIREMENTS.

    (a) IN GENERAL- The Secretary shall award one or more endowment grants described in section 744(b) pursuant to an agreement between the Secretary and a national organization. Such agreement shall--

      (1) require the 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 the 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 the 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 the 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; and

        (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 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. 746. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this part $10,000,000 for fiscal year 2000.

PART E--GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION TRAINING FOR INCARCERATED YOUTH OFFENDERS

SEC. 751. 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 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) annually report to the Secretary and the Attorney General on the results of the evaluations conducted using the 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. 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 amounts appropriated pursuant to subsection (j), 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 $14,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years.

PART F--EDUCATION OF THE DEAF

SEC. 761. SHORT TITLE.

    This part may be cited as the ‘Education of the Deaf Amendments of 1998’.

SEC. 762. ELEMENTARY AND SECONDARY EDUCATION PROGRAMS.

    Section 104(b) of the Education of the Deaf Act of 1986 (20 U.S.C. 4034(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

            ‘(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. 763. AGREEMENT WITH GALLAUDET UNIVERSITY.

    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. 764. 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. 765. 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. 766. 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) 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), 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. 767. 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. 768. 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. 769. INVESTMENTS.

    Section 207 of the Education of the Deaf Act of 1986 (20 U.S.C. 4357) is amended--

      (1) in subsection (c)(1), by inserting ‘the Federal contribution of’ after ‘shall invest’;

      (2) in subsection (d)(3)(A), by striking ‘prior’ and inserting ‘current’; and

      (3) 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. 770. INTERNATIONAL STUDENTS.

    Section 210(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 4359a(a)) is amended by inserting before the period ‘, 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’.

SEC. 771. RESEARCH PRIORITIES.

    Section 211 of the Education of the Deaf Act of 1986 (20 U.S.C. 4360) is amended to read as follows:

‘SEC. 211. RESEARCH PRIORITIES.

    ‘(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) 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. 772. 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 at the end the following:

‘SEC. 212. AUTHORIZATION OF APPROPRIATIONS.

    ‘(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 titles I and II, relating to--

      ‘(1) Gallaudet University;

      ‘(2) Kendall Demonstration Elementary School; and

      ‘(3) the Model Secondary School for the Deaf.

    ‘(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 titles I and II relating to the National Technical Institute for the Deaf.’.

SEC. 773. COMMISSION ON EDUCATION OF THE DEAF.

    The Education of the Deaf Act of 1986 (20 U.S.C. 4301 et seq.) is amended by adding at the end the following:

‘TITLE III--COMMISSION ON EDUCATION OF THE DEAF

‘SEC. 301. COMMISSION ESTABLISHED.

    ‘(a) ESTABLISHMENT-

      ‘(1) IN GENERAL- The Secretary shall establish a Commission on the Education of the Deaf to identify those education-related factors in the lives of individuals who are deaf that result in barriers to successful postsecondary education experiences and employment, and those education-related factors in the lives of individuals who are deaf that contribute to successful postsecondary education experiences and employment.

      ‘(2) DEFINITION OF INDIVIDUALS WHO ARE DEAF- In this title, the term ‘individuals who are deaf’ means all persons with hearing impairments, including those who are hard-of-hearing, those deafened later in life, and those who are profoundly deaf.

    ‘(b) COMPOSITION-

      ‘(1) IN GENERAL- The Commission shall be composed of 13 members appointed by the Secretary from recommendations made by the National Association of the Deaf, the American Society for Deaf Children, the Alexander Graham Bell Association, the President of Gallaudet, the Vice President of the National Technical Institute for the Deaf, State Schools for the Deaf, projects to train teachers of the deaf funded under section 673(b) of the Individuals with Disabilities Education Act, parent training and information centers funded under section 682 of such Act, the Regional Centers on Postsecondary Education for Individuals who are Deaf funded under section 672 of such Act, Self-Help for Hard of Hearing People, and the Cothe Council on Education of the Deaf.

      ‘(2) QUALIFICATIONS-

        ‘(A) IN GENERAL- Members of the Commission shall be appointed from among individuals who have broad experience and expertise in deafness, program evaluation, education, rehabilitation, and job training generally, which expertise and experience shall be directly relevant to the issues to be addressed by the Commission.

        ‘(B) DEAF INDIVIDUALS- At least 1/3 of members of the Commission shall be individuals who are deaf.

        ‘(C) CHAIRPERSON- The chairperson of the Commission shall be elected by a simple majority of the Commission.

        ‘(D) ASSISTANT SECRETARY- One member of the Commission shall be the Assistant Secretary for Special Education and Rehabilitative Services.

      ‘(3) DATE- Members of the Commission shall be appointed not later than 90 days after the date of enactment of the Education of the Deaf Amendments of 1998.

‘SEC. 302. DUTIES, REPORT, AND DURATION OF THE COMMISSION.

    ‘(a) IDENTIFICATION OF FACTORS- The Commission shall identify, with respect to individuals who are deaf, factors that pose barriers to or factors that facilitate--

      ‘(1) educational performance and progress of students who are deaf in high school;

      ‘(2) educational performance and progress of students who are deaf in postsecondary education;

      ‘(3) career exploration and selection;

      ‘(4) job performance and satisfaction in initial postsecondary employment; and

      ‘(5) career advancement and satisfaction.

    ‘(b) REPORT- The Commission shall report to the President and Congress such interim reports that the Commission deems appropriate, and not later than 18 months after the date of enactment of the Education of the Deaf Amendments of 1998, a final report containing the findings of the Commission with respect to the factors identified under subsection (a). The final report shall include recommendations, including legislative proposals, that the Commission deems advisable.

    ‘(c) TERMINATION- The Commission shall terminate 90 days after the date on which the Commission submits the Commission’s final report described in subsection (b).

‘SEC. 303. ADMINISTRATIVE PROVISIONS.

    ‘(a) PERSONNEL-

      ‘(1) IN GENERAL- The Commission may appoint such personnel, including a staff director, as the Commission deems necessary without regard to the provisions of title 5, United States Code, except that the rate pay for any employee of the Commission may not exceed the rate payable for level V of the Executive Schedule under section 5316 of title 5, United States Code.

      ‘(2) 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 which 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.

    ‘(b) HEARINGS; QUORUM-

      ‘(1) HEARINGS- The Commission or, with the authorization of the Commission, any committee of the Commission, may, for the purpose of carrying out the provisions of this title, hold such hearings, sit, and act at such times and such places in the United States as the Commission or such committee may deem advisable.

      ‘(2) QUORUM- Seven members of the Commission shall constitute a quorum, but 2 or more members may conduct hearings.

      ‘(3) HEARINGS AND PUBLIC INPUT- In conducting hearings and acquiring public input under this title, the Commission may use various telecommunications media, including teleconferencing, video-conferencing, the Internet, and other media.

    ‘(c) CONSULTATION; INFORMATION AND STATISTICS; AGENCY COOPERATION-

      ‘(1) IN GENERAL- In carrying out the Commission’s duties under this title and to the extent not prohibited by Federal law, the Commission is authorized to secure consultation, information, statistics, and cooperation from Federal agencies, entities funded by the Federal Government, and other entities the Commission deems advisable.

      ‘(2) SPECIAL RULE- The Commission is authorized to use, with their consent, the services, personnel, information, and facilities of other Federal, State, local, and private agencies with or without reimbursement.

‘SEC. 304. COMPENSATION OF MEMBERS.

    ‘(a) UNITED STATES OFFICER AND EMPLOYEE MEMBERS- Members of the Commission who are officers or full-time 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; but may 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.

    ‘(b) PUBLIC MEMBERS- Members of the Commission who are not officers or full-time employees of the United States shall receive compensation at a rate that does not exceed the daily rate payable for level V of the Executive Schedule under section 5316 of title 5, United States Code, for each day (including travel time) during which such members are engaged in the actual performance of the duties of the Commission. In addition, such members may 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.

‘SEC. 305. AUTHORIZATIONS OF APPROPRIATIONS.

    ‘There is authorized to be appropriated to carry out this title such sums as may be necessary for each of the fiscal years 1999 and 2000.’.

PART G--REPEALS

SEC. 781. REPEALS.

    (a) HIGHER EDUCATION ACT OF 1965- The following provisions of the Act (20 U.S.C. 1001 et seq.) are repealed:

      (1) The heading for, sections 701 and 702 of, and parts A, C, D, and E of, title VII (20 U.S.C. 1132a, 1132a-1, 1132b et seq., 1132d et seq., 1132f et seq., and 1132i et seq.).

      (2) Title VIII (20 U.S.C. 1133 et seq.).

      (3) The heading for, section 901 of, and parts A, B, E, F, and G of, title IX (20 U.S.C. 1134, 1134a et seq., 1134d et seq., 1134r et seq., 20 U.S.C. 1134s et seq., and 1134u et seq.).

      (4) The heading for, subpart 2 of part B of, and parts C, D and E of, title X (20 U.S.C. 1135c et seq., 1135e et seq., 1135f, and 1135g et seq.).

      (5) The heading for, and part B of, title XI (20 U.S.C. 1137 et seq.).

    (b) HIGHER EDUCATION AMENDMENTS OF 1992- The following provisions of the Higher Education Amendments of 1992 (Public Law 102-325; 106 Stat 448) are repealed:

      (1) Parts E, F, and G of title XIII of the Higher Education Amendments of 1992 (25 U.S.C. 3332 et seq., 3351 et seq., 3371) are repealed.

      (2) Title XIV.

      (3) Title XV.

PART H--MISCELLANEOUS

SEC. 791. YEAR 2000 COMPUTER PROBLEM.

    (a) SENSE OF CONGRESS- With the year 2000 fast approaching, it is the sense of Congress that the Department of Education should--

      (1) assess immediately the extent of the risk to the operations of the student financial aid system posed by the year 2000 computer problem;

      (2) give the highest priority to correcting all 2-digit date-related problems in the Department’s computer systems to ensure that those systems continue to operate effectively in the year 2000 and beyond; and

      (3) develop contingency plans, with respect to the year 2000 computer problem, for those computer systems that the Department is unable to correct in time.

    (b) REPORT REQUIRED- Not later than March 1, 1999, the Secretary of Education shall provide 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 describing the compliance status of all mission critical systems at the Department, and contingency plans for those computer systems in the Department that the Department will be unable to correct in time, with respect to the year 2000 computer problem.