[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3519 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 3519
To address rising college tuition by strengthening the compact between
the States, the Federal Government, and institutions of higher
education to make college more affordable.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 19, 2003
Mr. Tierney (for himself, Ms. McCollum, Mr. George Miller of
California, Mr. Kildee, Mr. Owens, Mr. Payne, Mr. Andrews, Ms. Woolsey,
Mr. Hinojosa, Mrs. McCarthy of New York, Mr. Kucinich, Mr. Wu, Mr.
Holt, Mr. Davis of Illinois, Mr. Case, Mr. Grijalva, Mr. Van Hollen,
Mr. Ryan of Ohio, Mr. Bishop of New York, Mr. Emanuel, and Ms. Pelosi)
introduced the following bill; which was referred to the Committee on
Education and the Workforce
_______________________________________________________________________
A BILL
To address rising college tuition by strengthening the compact between
the States, the Federal Government, and institutions of higher
education to make college more affordable.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``College
Affordability and Accountability Act''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. References; effective date.
Sec. 3. Findings.
Sec. 4. State commitment to affordable college education.
Sec. 5. Cost containment strategies.
Sec. 6. Pell Plus.
Sec. 7. Cooperative education rewards for institutions that restrain
tuition increases.
Sec. 8. Study.
Sec. 9. Articulation agreement demonstration program.
Sec. 10. Advisory Committee on Student Financial Assistance.
SEC. 2. REFERENCES; EFFECTIVE DATE.
(a) Reference.--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.).
(b) Effective Date.--Except as otherwise provided in this Act, the
amendments made by this Act shall take effect on the date of enactment
of this Act.
SEC. 3. FINDINGS.
The Congress finds the following:
(1) A quality college degree is the cornerstone of the
American dream, opening the door to job opportunity and
professional fulfillment, while increasing earning power by
more than a million dollars over a lifetime; therefore, States
and the Federal Government should do more to make it affordable
and accessible to all qualified students because--
(A) recent shifts in the economy have increased the
demand for college-educated workers and increased the
wage gap between college-educated workers and those
without a degree (workers with a bachelor's degree earn
75 percent more than workers with just a high school
diploma);
(B) jobs requiring some postsecondary education are
expected to account for about 42 percent of total job
growth from 2000 through 2010;
(C) low-income, college-qualified high school
graduates have an annual unmet need for student
financial assistance of $3,800 in college expenses,
expenses not covered by grants, loans, work, or family
savings;
(D) 46 percent of all students who work in addition
to being full-time students report 25 hours or more a
week of employment; and
(E) 50 percent of those employed more than 25 hours
a week report that working hurts their grades and
retention in college, and students who work more than
35 hours a week are considerably less likely to
complete a year of college than those who work less
than 15 hours a week.
(2) State spending on higher education has decreased
dramatically over time, and as a result, students and their
families, particularly working class and middle class families,
have to pay a larger portion of college costs:
(A) In 2003-2004, tuition and fees increased at
colleges and universities across the country. Tuition
increased by 14.1 percent at four-year public
institutions, 13.8 percent at two-year public
institutions, and 6.0 percent at four-year private
institutions.
(B) While 70 percent of all students pay $8,000 or
less in tuition each year, low-income students continue
to fall far behind in accessing a college education.
(C) The ratio of a low-income family's earnings
used to pay for tuition increased to 71 percent, while
this ratio held steady for middle-income families at 17
percent and 6 percent for those with the highest
incomes.
(3) Federal student aid is too focused on loans instead of
grant aid because--
(A) although approximately $55,000,000,000 is made
available annually in direct and indirect Federal aid
to postsecondary education students and their families,
in 2002, 60 percent of such Federal student aid was in
the form of loans while only 40 percent was in the form
of grants, a reversal of the distribution 20 years ago;
(B) the purchasing power of the maximum Pell Grant
has declined, as Pell Grants now cover only about 40
percent of average fixed costs at 4-year public
colleges, about half of what they covered 25 years ago;
and
(C) average student indebtedness is $17,000, and
reaches over $120,000 for professional school
graduates.
SEC. 4. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.
Title I is amended by inserting after section 131 (20 U.S.C. 1015)
the following new section:
``SEC. 132. STATE COMMITMENT TO AFFORDABLE COLLEGE EDUCATION.
``(a) Maintenance of Effort Required.--No State shall reduce the
total amount provided by the State for public institutions of higher
education in such State for any academic year beginning on or after
July 1, 2003, to an amount which is less than the average amount
provided by such State to such institutions of higher education during
the academic years between July 1, 1998, and July 1, 2003.
``(b) Withholding of All Education Administrative Funds for
Violations.--Notwithstanding any other provision of law, the Secretary
of Education shall withhold from any State that violates subsection (a)
any amount that would otherwise be available to the State for
administrative expenses and costs under any Federal education program
until such State has corrected such violation.''.
SEC. 5. COST CONTAINMENT STRATEGIES.
Title I is further amended by inserting after section 132 (as added
by section 4) the following new section:
``SEC. 133. COST CONTAINMENT STRATEGIES.
``(a) Requirements.--Each institution of higher education shall in
accordance with the requirements of this section engage in, and report
upon, cost containment strategies. Such strategies may include (but are
not limited to) the following activities:
``(1) bulk purchasing;
``(2) joint faculty appointments;
``(3) streamlining administration;
``(4) energy conservation and savings;
``(5) technological innovations; and
``(6) joint degree offerings.
``(b) Five-Year Plans.--Within 2 years after the enactment of the
Act, each institution of higher education shall submit a 5-year plan on
their cost containment strategies and any progress made to date to the
Secretary of Education.
``(c) Research Into Cost Containment Methods.--
``(1) Research authorized.--From the funds appropriated
under paragraph (2), the Secretary is authorized--
``(A) to conduct or provide for the conduct of
research to identify methods of cost containment
currently utilized by institutions of higher education
and systems of such institutions, and research into
other possible methods of cost containment;
``(B) to disseminate--
``(i) the information obtained by such
research to such institutions and systems; and
``(ii) other research that has identified
successful methods of cost containment;
``(C) to publicly recognize institutions of higher
education that are doing an effective job at cost
containment; and
``(D) to work together with such institutions and
systems to implement these methods.
``(2) Authorization of appropriations.--There are
authorized to be appropriated to carry out this subsection
$1,000,000 for fiscal year 2004 and such sums as may be
necessary for each of the 4 succeeding fiscal years.
``(d) Consumer Information.--
``(1) Annual report required.--
``(A) Contents of report.--The Secretary shall
annually prepare and publish a report on college
affordability in America. The college affordability
report shall provide, at a minimum, comprehensive
information on--
``(i) the sticker price, total price of
attendance, net tuition price, and net access
price for every institution of higher education
that participates in the Federal student aid
programs under title IV of this Act;
``(ii) the percentage change in the listed
sticker price, total price of attendance, net
tuition price, and net access price over a 3-,
5-, and 10-year time period for each such
institution; and
``(iii) the level of Federal and State
support for higher education per capita and per
pupil.
``(B) Advisory group.--To ensure that the annual
college affordability in America report provides
consumer-friendly information, the Secretary shall
convene an advisory group of students, parents, and
college officials to help determine the information
that shall be included in the report.
``(2) Data dissemination.--The Secretary shall make
publicly available the data collected pursuant to this section,
including an institution's net price tuition index as
calculated in accordance with subsection (e). Such data shall
be made available in a manner that permits the review and
comparison of data submissions of individual institutions of
higher education. Such data shall be presented in a form that
is easily accessible and understandable and allows parents and
students to make informed decisions based on the average prices
for full-time undergraduate students and the institution's rate
of increase in the sticker price, total price of attendance,
net tuition price, and net access price.
``(3) Website enhancement.--
``(A) Website information.--In order to further
enhance public knowledge and understanding of college
affordability, the Secretary shall modify the college
opportunities on line (COOL) web site. The goal of such
changes shall be to make the website the single best
source of information about applying to and paying for
a postsecondary education. Such changes shall make the
website more user friendly and facilitate the
comparison of multiple institutions at the same time.
Such website shall provide detailed tuition and student
aid data for each institution (including data from the
annual college affordability in America report). As
part of improving the website, the Secretary shall
establish an advisory board of students and parents to
guide the redesign. The college price calculator
required by paragraph (4) shall be included on the COOL
website.
``(B) Availability in other form.--In addition, the
Secretary shall publish all of the institutional
information found on the COOL website, minus the
college price calculator, and instruct all local
educational agencies to notify all their secondary
schools of the publication of the COOL web site, both
on-line and in-print, and of the steps necessary to
procure such information both on-line and in-print.
``(4) College price calculator.--
``(A) Establishment.--The Secretary shall establish
a system for reporting to prospective students and
families on the net tuition price of institutions of
higher education. Using the most recent data available,
the Secretary shall make available the amount of aid
typically granted for students based on family income
and college attended. Such information shall be made
available in the form of a web site price calculator
that permits students to be able to enter an
institution of higher education and their family income
and be presented the sticker price, net tuition price,
and net access price for students in their income
bracket in order to determine the approximate cost of
attending such a school. The calculator shall include a
clear disclaimer that financial aid decisions are made
on a case-by-case basis and that the included
calculations are based on previous years' data and can
therefore serve only as general guidelines for the
financial aid that a student may expect to receive.
``(B) Information distribution by institutions.--
Each institution of higher education shall make
available its sticker price, total price of attendance,
net tuition price, and net access price and list
examples of what families in each of the quartile
income brackets might be expected to pay in the net
tuition price for the most recent academic year. This
information shall be provided in written form and
distributed to all students and applicants and made
widely available to the public.
``(e) Net Tuition Price Index.--
``(1) In general.--The Secretary shall, on the basis of the
data submitted under subsection (a), calculate a net tuition
price index for each institution of higher education submitting
such data and shall make the index available in accordance with
subsection (b) as soon as operationally possible on the
Department's college opportunity on line (COOL) website.
``(2) Calculation of index.--The net tuition price index
shall be equal to the percentage increase in the net tuition
price charged for a first-time, full-time, full-year
undergraduate student between a preceding academic year and the
most recent academic year for which satisfactory data are
available.
``(f) Definitions.--For the purposes of this section:
``(1) Net access price.--The term `net access price' means
the average total price of attendance for full-time
undergraduate students, minus the average grants, loans, and
work-study provided to such students, for any academic year.
``(2) Net tuition price.-- The term `net tuition price'
means the average tuition and fees charged to full-time
undergraduate students, minus the average grants provided to
such students, for any academic year.
``(3) Sticker price.--The term `sticker price' means the
average tuition and fees charged to full-time undergraduate
students by an institution of higher education for any academic
year.
``(4) Total price of attendance.--The term `total price of
attendance' means the average tuition and fees charged to full-
time undergraduate students, as well as the average of the
other expenses of such students related to obtaining a higher
education, including housing (room and board if the student
lives on campus, or rent or related housing costs if the
student does not live on campus), books, transportation, for
any academic year.
``(5) Tuition.--The term `tuition' means the average price
of or payment for actual instruction of full-time undergraduate
students at an institution of higher education, for any
academic year.''.
SEC. 6. PELL PLUS.
Subpart 1 of part A of title IV is amended by inserting after
section 401 (20 U.S.C. 1070a) the following new section:
``SEC. 401A. INCENTIVES AND REWARDS: PELL PLUS.
``(a) Rewards for Low Tuition.--For any institution of higher
education that, for academic year 2003-2004 or any succeeding academic
year, such institution's annual net tuition price increase (expressed
as a percentage) for the most recent academic year for which
satisfactory data is available is equal to or less than the percentage
change in the higher education price index for such academic year, the
Secretary shall, notwithstanding any other provision of the law,
provide such institution an amount sufficient to provide a 25 percent
increase under subpart 1 of part A of title IV to each Pell Grant
recipient attending such institution for the next award year beginning
after the date of such determination. Each such institution shall
distribute any amounts received under this subsection among such Pell
Grant recipients by increasing the amount of their Pell Grant awards by
25 percent.
``(b) Rewards for Guaranteed Tuition.--
``(1) Bonus.--For each institution of higher education that
the Secretary of Education determines complies with the
requirements of paragraph (2) or paragraph (3) of this
subsection, the Secretary shall, notwithstanding any other
provision of the law, provide such institution an amount
sufficient to provide a 10 percent increase under subpart 1 of
part A of title IV to each Pell Grant recipient attending such
institution for the next award year beginning after the date of
such determination. Each such institution shall distribute any
amounts received under this subsection among such Pell Grant
recipients by increasing the amount of their Pell Grant awards
by 10 percent.
``(2) 4-year institutions.--An institution of higher
education that provides a program of instruction for which it
awards a bachelor's degree complies with the requirements of
this paragraph if such institution guarantees that for any
academic year beginning on or after July 1, 2003, and for each
of the 4 succeeding continuous academic years, the net tuition
price charged to an undergraduate student will not exceed--
``(A) the amount that the student was charged for
an academic year at the time he or she first enrolled
in the institution of higher education, plus
``(B) the product of the percentage increase in the
higher education price index for the prior academic
year, or the most recent prior academic year for which
data is available, multiplied by the amount determined
under subparagraph (A).
``(3) Less-than 4-year institutions.--An institution of
higher education that does not provide a program of instruction
for which it awards a bachelor's degree complies with the
requirements of this paragraph if such institution guarantees
that for any academic year (or the equivalent) beginning on or
after July 1, 2003, and for each of the 1.5 succeeding
continuous academic years, the net tuition price charged to an
undergraduate student will not exceed--
``(A) the amount that the student was charged for
an academic year at the time he or she first enrolled
in the institution of higher education, plus
``(B) the product of the percentage increase in the
higher education price index for the prior academic
year, or the most recent prior academic year for which
data is available, multiplied by the amount determined
under subparagraph (A).
``(c) Maintaining Affordable Tuition.--For any institution of
higher education whose increase in the annual net tuition price
(expressed as a percentage), for the most recent academic year for
which satisfactory data is available, is greater than the percentage
increase in the higher education price index for such academic year,
the Secretary shall require such institution to submit to the Secretary
the following information, within 6 months of such determination:
``(1) a detailed report on the exact causes for the net
tuition price increase that outlines revenues and expenditures;
and
``(2) cost containment strategies to lower net tuition
prices.
``(d) Definitions.--
``(1) Net tuition price.--The term `net tuition price' has
the same meaning as provided in section 133(f).
``(2) Higher education price index.--The term `higher
education price index' means a statistical measure of change
over time in the prices of a fixed market basket of goods and
services purchased by colleges and universities through current
fund educational and general expenditures (excluding
expenditures for research), as developed by the Bureau of Labor
Statistics pursuant to section 131(c)(4).''.
SEC. 7. COOPERATIVE EDUCATION REWARDS FOR INSTITUTIONS THAT RESTRAIN
TUITION INCREASES.
The Higher Education Act of 1965 (20 U.S.C. 1101 et seq.) is
amended by adding at the end the following title:
``TITLE VIII--COOPERATIVE EDUCATION REWARDS FOR INSTITUTIONS THAT
RESTRAIN TUITION INCREASES
``SEC. 801. STATEMENT OF PURPOSE; ELIGIBLE INSTITUTIONS.
``(a) Purpose.--It is the purpose of this title to award grants to
institutions of higher education or combinations of such institutions
that have restrained their net tuition price increases in order to
encourage such institutions to develop and make available to as many of
their students as possible work experience that will aid such students
in future careers and will enable such students to support themselves
financially while in school.
``(b) Eligible Institutions.--An institution of higher education
shall be eligible to apply for a grant under this title if such
institution, and a combination of such institutions shall be eligible
to apply for such a grant if each institution in such combination--
``(1) for the academic year for which the institution is
applying, keeps such institution's annual net tuition price
increase (expressed as a percentage) for the most recent
academic year for which satisfactory data is available equal to
or less than the percentage change in the higher education
price index for such year; and
``(2) for such academic year, provides the guarantee
required by paragraph (2) or (3) of section 401A(b).
``(c) Definitions.--
``(1) Cooperative education.--For the purpose of this title
the term `cooperative education' means the provision of
alternating or parallel periods of academic study and public or
private employment in order to give students work experiences
related to their academic or occupational objectives and an
opportunity to earn the funds necessary for continuing and
completing their education.
``(2) Higher education price index and net tuition price.--
The terms `higher education price index' and `net tuition
price' have the same meaning as provided in section 133(f).
``SEC. 802. AUTHORIZATION OF APPROPRIATIONS; RESERVATIONS.
``(a) Appropriations Authorized.--There are authorized to be
appropriated to carry out this title $30,000,000 for fiscal year 2004
and such sums as may be necessary for each of the 5 succeeding fiscal
years.
``(b) Reservations.--Of the amount appropriated in each fiscal
year--
``(1) not less than 50 percent shall be available for
carrying out grants to institutions of higher education and
combinations of such institutions described in section
803(a)(1)(A) for cooperative education under section 803;
``(2) not less than 25 percent shall be available for
carrying out grants to institutions of higher education
described in section 803(a)(1)(B) for cooperative education
under section 803;
``(3) not to exceed 11 percent shall be available for
demonstration projects under paragraph (1) of section 804(a);
``(4) not to exceed 11 percent shall be available for
training and resource centers under paragraph (2) of section
804(a); and
``(5) not to exceed 3 percent shall be available for
research under paragraph (3) of section 804(a).
``(c) Availability of Appropriations.--Appropriations under this
title shall not be available for the payment of compensation of
students for employment by employers under arrangements pursuant to
this title.
``SEC. 803. GRANTS FOR COOPERATIVE EDUCATION.
``(a) Grants Authorized.--
``(1) In general.--The Secretary is authorized--
``(A) from the amount available under section
802(b)(1) in each fiscal year and in accordance with
the provisions of this title, to make grants to
institutions of higher education or combinations of
such institutions that have not received a grant under
this paragraph in the 10-year period preceding the date
for which a grant under this section is requested to
pay the Federal share of the cost of planning,
establishing, expanding, or carrying out programs of
cooperative education by such institutions or
combinations of institutions; and
``(B) from the amount available under section
802(b)(2) in each fiscal year and in accordance with
the provisions of this title, to make grants to
institutions of higher education that are operating an
existing cooperative education program as determined by
the Secretary to pay the cost of planning,
establishing, expanding, or carrying out programs of
cooperative education by such institutions.
``(2) Program requirement.--Cooperative education programs
assisted under this section shall provide alternating or
parallel periods of academic study and of public or private
employment, giving students work experience related to their
academic or occupational objectives and the opportunity to earn
the funds necessary for continuing and completing their
education.
``(3) Amount of grants.--
``(A) The amount of each grant awarded pursuant to
paragraph (1)(A) to any institution of higher education
or combination of such institutions in any fiscal year
shall not exceed $500,000.
``(B)(i) Except as provided in clauses (ii) and
(iii), the Secretary shall award grants in each fiscal
year to each institution of higher education described
in paragraph (1)(B) that has an application approved
under subsection (b) in an amount which bears the same
ratio to the amount reserved pursuant to section
802(b)(2) for such fiscal year as the number of
unduplicated students placed in cooperative education
jobs during the preceding fiscal year (other than
cooperative education jobs under section 804 and as
determined by the Secretary) by such institution of
higher education bears to the total number of all such
students placed in such jobs during the preceding
fiscal year by all such institutions.
``(ii) No institution of higher education shall
receive a grant pursuant to paragraph (1)(B) in any
fiscal year in an amount which exceeds 25 percent of
such institution's cooperative education program's
personnel and operating budget for the preceding fiscal
year.
``(iii) The minimum annual grant amount which an
institution of higher education is eligible to receive
under paragraph (1)(B) is $1,000 and the maximum annual
grant amount is $75,000.
``(4) Limitation.--The Secretary shall not award grants
pursuant to paragraphs (1)(A) and (1)(B) to the same
institution of higher education or combination of such
institution in any one fiscal year.
``(5) Uses.--Grants under paragraph (1)(B) shall be used
exclusively--
``(A) to expand the quality and participation of a
cooperative education program;
``(B) for outreach in new curricular areas; and
``(C) for outreach to potential participants
including underrepresented and nontraditional
populations.
``(b) Applications.--Each institution of higher education or
combination of such institutions desiring to receive a grant under this
section shall submit an application to the Secretary at such time and
in such manner as the Secretary shall prescribe. Each such application
shall--
``(1) set forth the program or activities for which a grant
is authorized under this section;
``(2) specify each portion of such program or activities
which will be performed by a nonprofit organization or
institution other than the applicant and the compensation to be
paid for such performance;
``(3) provide that the applicant will expend during such
fiscal year for the purpose of such program or activities not
less than the amount expended for such purpose during the
previous fiscal year;
``(4) describe the plans which the applicant will carry out
to assure, and contain a formal statement of the institution's
commitment which assures, that the applicant will continue the
cooperative education program beyond the 5-year period of
Federal assistance described in subsection (c)(1) at a level
which is not less than the total amount expended for such
program during the first year such program was assisted under
this section;
``(5) provide that, in the case of an institution of higher
education that provides a 2-year program which is acceptable
for full credit toward a bachelor's degree, the cooperative
education program will be available to students who are
certificate or associate degree candidates and who carry at
least one-half the normal full-time academic workload;
``(6) provide that the applicant will--
``(A) make such reports as may be essential to
ensure that the applicant is complying with the
provisions of this section, including the reports for
the second and each succeeding fiscal year for which
the applicant receives a grant with respect to the
impact of the cooperative education program in the
previous fiscal year, including--
``(i) the number of unduplicated student
applicants in the cooperative education
program;
``(ii) the number of unduplicated students
placed in cooperative education jobs;
``(iii) the number of employers who have
hired cooperative education students;
``(iv) the income for students derived from
working in cooperative education jobs; and
``(v) the increase or decrease in the
number of unduplicated students placed in
cooperative education jobs in each fiscal year
compared to the previous fiscal year; and
``(B) keep such records as are essential to ensure
that the applicant is complying with the provisions of
this title, including the notation of cooperative
education employment on the student's transcript;
``(7) describe the extent to which programs in the academic
discipline for which the application is made have had a
favorable reception by public and private sector employers;
``(8) describe the extent to which the institution is
committed to extending cooperative education on an institution-
wide basis for all students who can benefit;
``(9) describe the plans that the applicant will carry out
to evaluate the applicant's cooperative education program at
the end of the grant period;
``(10) provide for such fiscal control and fund accounting
procedures as may be necessary to assure proper disbursement
of, and accounting for, Federal funds paid to the applicant
under this title;
``(11) demonstrate a commitment to serving all underserved
populations; and
``(12) include such other information as is essential to
carry out the provisions of this title.
``(c) Duration of Grants; Federal Share.--
``(1) Duration of grants.--No individual institution of
higher education may receive, individually or as a participant
in a combination of such institutions--
``(A) a grant pursuant to subsection (a)(1)(A) for
more than 5 fiscal years; or
``(B) a grant pursuant to subsection (a)(1)(B) for
more than 5 fiscal years.
``(2) Federal share.--The Federal share of a grant under
section 803(a)(1)(A) may not exceed--
``(A) 85 percent of the cost of carrying out the
program or activities described in the application in
the first year the applicant receives a grant under
this section;
``(B) 70 percent of such cost in the second such
year;
``(C) 55 percent of such cost in the third such
year;
``(D) 40 percent of such cost in the fourth such
year; and
``(E) 25 percent of such cost in the fifth such
year.
``(3) Special rule.--Any provision of law to the contrary
notwithstanding, the Secretary shall not waive the provisions
of this subsection.
``(d) Maintenance of Effort.--If the Secretary determines that a
recipient of funds under this section has failed to maintain the fiscal
effort described in subsection (b)(3), then the Secretary may elect not
to make grant payments under this section to such recipient.
``(e) Factors for Special Consideration of Applications.--
``(1) In general.--In approving applications under this
section, the Secretary shall give special consideration to
applications from institutions of higher education or
combinations of such institutions for programs which show the
greatest promise of success because of--
``(A) the extent to which programs in the academic
discipline with respect to which the application is
made have had a favorable reception by public and
private sector employers;
``(B) the strength of the commitment of the
institution of higher education or combination of such
institutions to cooperative education as demonstrated
by the plans and formalized institutional commitment
statement which such institution or combination has
made to continue the program after the termination of
Federal financial assistance,
``(C) the extent to which the institution or
combination is committed to extending cooperative
education for all students who can benefit, and
``(D) such other factors as are consistent with the
purposes of this section.
``(2) Additional special consideration.--The Secretary
shall also give special consideration to applications from
institutions of higher education or combinations of such
institutions which demonstrate a commitment to serving all
underserved populations.
``SEC. 804. DEMONSTRATION AND INNOVATION PROJECTS; TRAINING AND
RESOURCE CENTERS; AND RESEARCH.
``(a) Authorization.--The Secretary is authorized, in accordance
with the provisions of this section, to make grants and enter into
contracts for--
``(1) the conduct of demonstration projects designed to
demonstrate or determine the feasibility or value of innovative
methods of cooperative education from the amounts available in
each fiscal year under section 802(b)(3);
``(2) the conduct of training and resource centers designed
to--
``(A) train personnel in the field of cooperative
education;
``(B) improve materials used in cooperative
education programs if such improvement is conducted in
conjunction with other activities described in this
paragraph;
``(C) furnish technical assistance to institutions
of higher education to increase the potential of the
institution to continue to conduct a cooperative
education program without Federal assistance;
``(D) encourage model cooperative education
programs which furnish education and training in
occupations in which there is a national need;
``(E) support partnerships under which an
institution carrying out a comprehensive cooperative
education program joins with one or more institutions
of higher education in order to (i) assist the
institution other than the comprehensive cooperative
education institution to develop and expand an existing
program of cooperative education, or (ii) establish and
improve or expand comprehensive cooperative education
programs; and
``(F) encourage model cooperative education
programs in the fields of science and mathematics for
women and minorities who are underrepresented in such
fields
from the amounts available in each fiscal year under section
802(b)(4); and
``(3) the conduct of research relating to cooperative
education, from the amounts available in each fiscal year under
section 802(b)(5).
``(b) Administrative Provision.--
``(1) In general.--To carry out this section, the Secretary
may--
``(A) make grants to or contracts with institutions
of higher education, or combinations of such
institutions; and
``(B) make grants to or contracts with other public
or private nonprofit agencies or organizations,
whenever such grants or contracts will make an
especially significant contribution to attaining the
objectives of this section.
``(2) Limitation.--
``(A) The Secretary may not use more than 3 percent
of the amount appropriated to carry out this section in
each fiscal year to enter into contracts described in
paragraph (1)(A).
``(B) The Secretary may use not more than 3 percent
of the amount appropriated to carry out this section in
each fiscal year to enter into contracts described in
paragraph (1)(B).
``(c) Supplement not Supplant.--A recipient of a grant or contract
under this section may use the funds provided only so as to supplement
and, to the extent possible, increase the level of funds that would, in
the absence of such funds, be made available from non-Federal sources
to carry out the activities supported by such grant or contract, and in
no case to supplant such funds from non-Federal sources.''.
SEC. 8. STUDY.
(a) In General.--The Secretary of Education shall commission the
National Research Council to conduct a national study to determine the
viability of developing and implementing standards in environmental,
health, and safety areas to provide for differential regulation of
industrial laboratories and facilities, on the one hand, and research
and teaching laboratories on the other. The National Research Council
shall make specific recommendations for statutory and regulatory
changes that are needed to develop such a differential approach.
(b) Report.--The Secretary of Education shall submit the list of
those regulations that impose the greatest compliance costs on
institutions of higher education and make recommendations for statutory
changes to ease the compliance burden to the Committee on Health,
Education, Labor, and Pensions of the Senate and the Committee on
Education and the Workforce of the House of Representatives.
SEC. 9. ARTICULATION AGREEMENT DEMONSTRATION PROGRAM.
Part G of title IV is amended by inserting after section 486 (20
U.S.C. 1093) the following new section:
``SEC. 486A. ARTICULATION AGREEMENT DEMONSTRATION PROGRAM.
``(a) Purpose; Definition.----
``(1) Purpose.--It is the purpose of this section to allow
demonstration programs that are monitored by the Department of
Education to encourage institutions of higher education to
enter into articulation agreements or consortia groups, as a
means to lower tuition prices to students.
``(2) Definition.--For the purposes of this section, the
term `articulation agreement' means an agreement between
institutions of higher education that specifies the
acceptability of courses in transfer toward meeting specific
degree requirements.
``(b) Demonstration Programs Authorized.--
``(1) In general.--The Secretary is authorized to select
institutions of higher education, systems of such institutions,
or consortia of such institutions for voluntary participation
in an articulation agreement demonstration program.
``(2) Eligible applicants.--
``(A) Eligible institutions.--Except as provided in
subparagraphs (B), (C), and (D), only an institution of
higher education that is eligible to participate in
programs under this title shall be eligible to
participate in the articulation program authorized
under this section.
``(B) Prohibition.--An institution of higher
education described in section 102(a)(1)(C) shall not
be eligible to participate in the articulation program
authorized under this section.
``(C) Special rule.--Subject to subparagraph (B),
an institution of higher education that meets the
requirements of subsection (a) of section 102, other
than the requirement of paragraph (3)(A) or (3)(B) of
such subsection, and that provides a 2-year or 4-year
program of instruction for which the institution awards
an associate or baccalaureate degree, shall be eligible
to participate in the demonstration program authorized
under this section.
``(c) Application.--
``(1) In general.--Each institution, system, or consortium
of institutions desiring to participate in a demonstration
program under this section shall submit an application to the
Secretary at such time and in such manner as the Secretary may
require.
``(2) Contents.--Each application shall include--
``(A) a description of the institution, system, or
consortium's consultation with a recognized accrediting
agency or association with respect to quality
assurances for the articulation programs to be offered;
``(B) a description of the articulation program to
be offered;
``(C) a description of the students to whom the
articulation programs will be offered;
``(D) an assurance that the institution, system, or
consortium will offer full cooperation with the ongoing
evaluations of the demonstration program provided for
in this section; and
``(E) such other information as the Secretary may
require.
``(d) Selection.--
``(1) In general.--For the first year of the demonstration
program authorized under this section, the Secretary is
authorized to select for participation in the program not more
than 100 institutions, systems of institutions, or consortia of
institutions. For the third year of the demonstration program
authorized under this section, the Secretary may select not
more than 250 institutions, systems, or consortia, in addition
to the institutions, systems, or consortia selected pursuant to
the preceding sentence, to participate in the demonstration
program if the Secretary determines that such expansion is
warranted based on the evaluations conducted in accordance with
subsections (f) and (g).
``(2) Considerations.--In selecting institutions to
participate in the articulation program in the first or
succeeding years of the program, the Secretary shall take into
account--
``(A) the number and quality of applications
received;
``(B) the Department's capacity to oversee and
monitor each institution's participation;
``(C) an applicant's--
``(i) financial responsibility;
``(ii) administrative capability; and
``(D) the need to ensure the participation of a
diverse group of institutions with respect to size,
mission, and geographic distribution.
``(3) Priority.--In selecting institutions to participate
in the articulation program in the first or succeeding years of
the program, the Secretary shall give priority to applicants
that involve a large number of schools; public and private
agreements; innovative technology to help reduce costs; and,
multi-state projects.
``(4) Notification.--The Secretary shall make available to
the public and to the Committee on Labor and Human Resources of
the Senate and the Committee on Education and the Workforce of
the House of Representatives a list of institutions, systems or
consortia selected to participate in the articulation program
authorized by this section.
``(e) Evaluations and Reports.----
``(1) Evaluation.--The Secretary shall evaluate the
demonstration programs authorized under this section on an
annual basis. Such evaluations specifically shall review--
``(A) the extent to which the institution, system
or consortium has met the goals set forth in its
application to the Secretary;
``(B) the number and types of institutions
participating in the programs offered;
``(C) the cost containment strategies pursued and
the success of such strategies; and
``(D) the effective use of technologies to keep
college prices low, while maintaining quality.
``(2) 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 the evaluations of the demonstration
programs authorized under this section.
``(B) Additional reports.--The Secretary shall
provide additional reports to the Committee on Labor
and Human Resources of the Senate and the Committee on
Education and the Workforce of the House of
Representatives on an annual basis regarding--
``(i) the demonstration programs authorized
under this section; and
``(ii) best practices to contain college
costs.''.
SEC. 10. ADVISORY COMMITTEE ON STUDENT FINANCIAL ASSISTANCE.
Section 491(j) (20 U.S.C. 1098(j)) is amended
(1) by striking ``and'' at the end of paragraph (4);
(2) by striking the period at the end of paragraph (5) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(6) convene a task force of experts, to be representative
of the key constituents in higher education--
``(A) to determine the best methods to finance
higher education in the long-term;
``(B) to help public institutions utilize long-term
budgeting to plan for the future;
``(C) to review the trends of financing of higher
education;
``(D) to define the role played by the States, the
Federal government, families, and outside entities in
financing higher education, and determine the best
methods to strengthen this partnership.''.
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