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[86 STAT.

academic facility is not constructed, the construction of such a facility may be considered, for the purposes of this section, to result in an expansion of the institution's student enrollment capacity. aBASIC CRITERIA FOR DETERMINING PRIORITIES A N D FEDERAL SHARE

Limitation. 80 Stat. 383.

"SEC. 706. (a)(1) The Commissioner shall, by regulation, prescribe basic criteria to which the provisions of State plans, setting forth standards and methods for determining relative priorities of eligible construction projects, and the application of such standards and methods to such projects under such plans, shall be subject. "(2) Such basic criteria shall, at least^— " (A) be such as will best tend to achieve the objectives of this part, while leaving opportunity and flexibility to State Commissions for the development of State plan standards and methods that will best accommodate the varied needs of institutions in the several States; " (B) give special consideration to the expansion of undergraduate enrollment capacity; and " (C) give consideration to the expansion of capacity to provide needed health care to students and institutional personnel. "(3) Subject to paragraph (2), such regulations may establish additional and appropriate basic criteriaj including— " (A) provision for considering the degree to which applicant institutions are effectively utilizing existing facilities; " (B) provision for allowing State plans to group, or to allow grouping, in a reasonable manner, facilities or institutions according to functional or educational type for priority purposes; and " (C) in view of the national objectives of this title, provision for considering the degree to which applicant institutions serve students from two or more States or from outside the United States. "(4) In no event shall such basic criteria permit the readiness of an institution to admit out-of-State students to be considered as a priority adverse to such institution. " (b)(1) The Commissioner shall prescribe, by regulation, the base criteria for determining the Federal share of the development cost of any eligible project under this part within a State, to which criteria the applicable standards and methods set forth in the State plan for such State shall conform. " (2) I n uo case shall such basic criteria permit the Federal share to exceed 50 per centum of the development cost of a project, "(c) Section 653 of title 5, United States Code, shall apply to the prescription of regulations under this section, notwithstanding clause (2) of subsection (a) thereof. "APrLICAlTONS FOR (JRANTS; AMOIN'J' OK (J){.\NJ'S

"SEC. 707. (a)(1) Any institution of higher education which desires to receive a grant under this part shall submit an application therefor at such time or times, in such manner, and containing such information as the Commissioner shall prescribe by regulation. "(2) The Commissioner shall approve an application for a con.«;truction project under this part if he determines that— " (A) it meets the requirements prescribed under paragraph (1); " (B) the project for which assistance is sought is an eligible ]iroject under section 705;

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" (C) such project has been submitted through, and been approved and recommended by, the appropriate State Commission; " (D) such State Commission has certified to the Commissioner, in accordance with the State plan, the Federal share of the development cost of the project, and sufficient funds to pay such Federal share are available from the applicable apportionment of the State; " (E) suchprojecthas, pursuant to the State plan, been assigned a priority that is higher than that assigned to all other projects within the State which are chargeable to the same apportionment, and meet the requirements of this section, and for which Federal funds have not yet been reserved; " (F) the construction to be carried out under the application will be undertaken in a timely and economic manner and will not be of elaborate or extravagant design or materials; " (G) in the case of a student health care facility, no assistance will be provided for such facility under title IV of the Housing Act of 1950; and 64 Stat. 77. " (H) the application contains assurances or is supported by 174^9 noti.'"**' satisfactory assurances— " (i) that title to the site is in accordance with regulations of the Commissioner relating thereto, "(ii) that Federal funds received by the applicant will be solely used for defraying the development cost of the project covered by the application, " (iii) that sufficient funds will be available to meet the nonFederal portion of such cost and to provide for the effective use of the academic facility upon completion, and ' '* '**"' "'• "(iv) that the facility will be used as an academic facility for at least the period of the Federal interest therein, as provided in section 781. Post. p. 300. " (b) Amendments to applications submitted under this section shall, except as the Commissioner may otherwise provide by regulations, be subject to approval in the same manner as original applications. " (c)(1) Upon his approval of any application under this section, the Commissioner shall reserve from the applicable allotment available therefor, the amount of such grant, which shall be equal to the Federal share of the development cost of the project covered by the application. The Commissioner shall pay such reserved amount, in advance or by way of reimbursement, and in such installments consistent with construction progress, as he may determine. "(2) Upon approval of an amendment of an application, or revision of the estimated development cost of a project, for which there has been a reservation made under paragraph (1), the Commissioner may adjust the amount so reserved, accordingly. I f an adjustment under the first sentence of this paragraph results in a greater amount being reserved, he may reserve the Federal share of the added cost only from the ajjplicable allotment available at the time of such approval. "ADMINISTRATION or STATE PLANS; JUDICIAL REVIEW

"SEC. 708. (a)(1) The Commissioner shall not finally disapprove any State plan submitted under this part, or any modification thereof, without first affording the State Commission submitting the plan reasonable notice and opportunity for a hearing. "(2) Whenever the Commissioner, after reasonable notice and opportunity for hearing to the State Commission administering a State plan approved under this part, finds—

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62 Stat. 928.

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

" (A) that the State plan has been so changed that it no longer complies with the provisions of section 704, or " (B) that in the administration of the plan there is a failure to comply substantially with any such provision, the Commissioner shall notify such State Commission that the State will not be regarded as eligible to participate in the program under this part until he is satisfied that there is no longer any such failure to comply. " (b)(1) If any State is dissatisfied with the Commissioner's final action with respect to the approval of its State plan submitted under section 704, or with his final action under subsection (a), such State may appeal to the United States court of appeals for the circuit in which such State is located. The summons and notice of appeal may be served at any place in the United States. The Commissioner shall forthwith certify and file in the court the transcript of the proceedings and the record on which he based his action. "(2) The findings of fact by the Commissioner if supported by substantial evidence, shall be conclusive; but the court, for good cause shown, may remand the case to the Commissioner to take further evidence, and the Commissioner may thereupon make new or modified findings of fact and may modify his previous action, and shall certify to the court the transcript and record of the further proceedings. Such new or modified findings of fact shall likewise be conclusive if supported by substantial evidence. " (3) The court shall have jurisdiction to affirm the action of the Commissioner or to set it aside, in whole or in part. The judgment of the court shall be subject to review by the Supreme Court of the United States upon certiorari or certification as provided in title 28, United ^^^ates Code, section 1254. " P A R T B — G R A N T S FOR CONSTRUCTION OF GRADUATE ACADEMIC FACILITIES a AUTHORIZATION

"SEC. 721. (a) The Commissioner shall carry out a program of making grants to institutions of higher education to assist them in improving existing graduate schools and cooperative graduate centers, and in establishing graduate schools and cooperative graduate centers of excellence, in order to increase the supply of highly qualified personnel needed by communities, industries, and governments and for teaching and research. "(b) For the purpose of making grants under this part, there are authorized to be appropriated $20,000,000 for the fiscal year ending June 80, 1972, $40,000,000 for the fiscal year ending June 30, 1973, $60,000,000 for the fiscal year ending June 30, 1974, and $80,000,000 for the fiscal year ending June 30, 1975. "APPLICATION FOR, AND AMOUNT OF, GRANTS

"SEC. 722. (a)(1) Any institution of higher education desiring to receive a grant under this part shall submit an application therefor at such time, in such manner, and containing such information as the Commissioner may require. "(2) I n determining whether to approve applications under this section, the order in which to approve such applications, and the amount of grants, the Commissioner shall give consideration to the extent to which the projects for which assistance is sought will contribute toward achieving the objectives of this part, and the extent to

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which they will aid in attaining a wider distribution of graduate schools and cooperative graduate centers throughout the States. I n no case shall the total of the payments from appropriations for any fiscal year pursuant to section 721 made with respect to projects in any State exceed an amount equal to 121/^ per centum of such appropriations. " (3) For the purposes of this section, the term 'institution of higher education' includes cooperative graduate center boards. " (b) The Commissioner shall not approve any application under this section until he has obtained the advice and recommendations of a panel of specialists who are not regular full-time employees of the Federal Government and who are competent to evaluate such application. "(c) No grant under this part may be in an amount in excess of 50 per centum of the development cost of the project covered by the application.

295

" Institution of higher education.'

Limitation.

" P A R T C — L O A X S FOR CONSTRUCTIOX OF ACADEMIC FACILITIES "AUTHORIZATION

"SEC. 741. (a)(1) The Commissioner shall carry out a program of making and insuring loans, in accordance with the provisions of this part. "(2) The Commissioner is authorized to make loans to institutions of higher education and to higher education building agencies for the construction of academic facilities and to insure loans. " (b) For the purpose of making payments into the fund established under section 744, there are hereby authorized to be appropriated $50,000,000 for the fiscal year ending June 30, 1972, $100,000,000 for the fiscal year ending June 30, 1973, $150,000,000 for the fiscal year ending June 30, 1974, and $200,000,000 for the jfiscal year ending June 30, 1975. Sums appropriated pursuant to this subsection for any fiscal year shall be available without fiscal year limitations. " E L I G I B I L I T Y C O N D I T I O N S, A M O U N T S, A N D T E R M S OF LOAXS

"SEC. 742. (a) No loan pursuant to this part shall be made unless the Commissioner finds (1) that not less than 20 per centum of the development cost of the facility will be financed from non-Federal sources, (2) that the applicant is unable to secure the amount of such loan from other sources upon terms and conditions equally as favorable as the terms and conditions applicable to loans under this part, (3) that the construction will be undertaken in an economical manner and that it will not be of elaborate or extravagant design or materials, and (4) that, in the case of a project to construct an infirmary or other facility designed to provide primarily for outpatient care of students and institutional personnel, no financial assistance will be provided such project under title IV of the Housing Act of 1950. " (b) A loan pursuant to this part shall be secured in such manner and shall be repaid within such period not exceeding fifty years, as may be determined by the Commissioner; and it shall bear interest at (1) a rate determined by the Commissioner which shall not be less than a per annum rate that is one-quarter of 1 percentage point above the average annual interest rate on all interest-bearing obligations of the United States forming a part of the public debt as computed at the end of the preceding fiscal year, adjusted to the nearest one-eighth of X per centum, or (2) the rate of 3 per centum per annum, whichever is the lesser.

82-081 O - 73 - 22

64 Stat. 77. 12 USC prec. 174 9 note.

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''•GP:XERAL PROVISIOX FOR LOAX TROGRAM

acfioM^ ''""*

Rules and regulations.

**"

^^80 Stat. 612, 62 Stat. 984; 75 Stat. 53 9; 80 tat. 307.

,;> Posf, p. 3 01.

"SEC. 743. (a) Financial transactions of the Commissioner under this part, except with respect to administrative expenses, shall be final and conclusive on all officers of the Government and shall not be reviewable by any court. "(b) I n the performance of, and with respect to, the functions, powers, and duties vested in him by this part, the Connnissioner may— "(1) prescHbe such rules and regulations as may be necessary ^^ carry out the purposes of this part; "(2) sue and be sued in any court of record of a State having general jurisdiction or in any district court of the United States, and such district courts shall have jurisdiction of civil actions arising under this part without regard to the amount in controversy, and any action instituted under this subsection by or against the Commissioner shall survive notwithstanding any change in the person occupying the office of the Commissioner or any vacancy in such office; but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Commissioner or property under his control, and nothing herein shall be construed to except litigation arising out of activities under this part from the application of sections 507(b) and 517 and 2679 of title 28, United States Code: "(3) forcclose ou ally property or commence any action to protect Or euforce any right conferred upon him by any law, contract, Qj, other agreement, and bid for and purchase at any foreclosure or any other sale any property in connection with which he has made a loan pursuant to this part; and, in the event of any such acquisition (and notwithstanding any other provisions of law relating to the ac(iuisition, handling, or disposal of real property hj the United States), complete, administer, remodel and convert, dispose of, lease, and otherwise deal with, such property; except that (1) such action shall not preclude any other action by him to recover any deficiency in the amounts loaned and (2) any such acquisition of real property shall not deprive any State or political subdivision thereof of its civil or criminal jurisdiction in and over such property or impair the civil rights under the State or, local laws of the inhabitants on such property; "(4) sell or exchange at public or private sale, or lease, real or personal property, and sell or exchange any securities or obligations, upon such terms as he may fix; "(5) subject to the specific limitations in this part, consent to the modification, with respect to the rate of interest, time of payment of any installment of principal or interest, security, or any other term of any contract or agreement to which he is a party or which has been transferred to him pursuant to this section; and "(6) include in any contract or instrument made pursuant to this part such other covenants, conditions, or provisions (including provisions designed to assure against use of the facility, constructed with the aid of a loan under this part, for purposes described in section 782(1)), as he may deem necessary to assure that the purpose of this part will be achieved. " R E V O L VIX G L O A N F U N D A N D INSURANCE FUND

"SEC. 744. (a) There is hereby created within the Treasury a separate fund for higher education academic facilities loans and loan insurance (hereafter in this section called the 'fund') which shall be available to the Commissioner without fiscal year limitation as a

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fevolving fund for the purposes of making loans and insuring loans • • ' ' under this i^art. The total of any loans made from the fund in any fiscal year- shall not exceed limitations specified in appropriation acts. " ( ' b)(l) The Commissioner shall transfer to the fund available appropriations provided under section 741(b) to provide capital for the fund. All amounts received by the Commissioner as interest payments or repayments of principal on loans, and any other moneys, property, or assets derived by him from his operations in connection with this part, including any moneys derived directly or indirexjtly from the sale of assets, or beneficial interests or participations in assets of the fund, shall be deposited in the fund. "(2) All loans, expenses, and payments pursuant to operations of the Commissioner mider this part shall be paid from the fund, including (but not limited to) expenses and payments of the Commissioner in connection with sale, under section 302(c) of the Federal National Mortgage Association Charter Act, of participations in obligations ^s Stat. soo; acquired under this part. From time to time, and at least at the close of *'\2 USC ni7. each fiscal year, the Commissioner' shall pay from the fund into the interest payTreasury as miscellaneous receipts interest on the cumulative amount '"*"'*• of appropriations paid out for loans under this part or available as capital to the fund, less the average undisbursed cash balance in the fund duT'ing the year. The I'ate of such interest shall be determined by the Secretary of the Treasury, taking into consideration the average market yield during the month preceding each fiscal year on outstanding Treasury obligations of maturity comparable to the average inaturity of loans macle from the fund. Interest payments may be Deferral. deferred with the approval of the Secretary of the Treasury, but any interest payments so deferred shall themselves beai- interest. If at any time the Commissionei' determines that moneys in the fund exceed the present and any reasonably prospective future requirements of the fund, such excess may be transferred to the general fund of the Treasury. •' • '

"ANNUAL INTEREST GRANTS

745. (a) To assist institutions of higher education and higheieducation building agencies to reduce the cost of borrowing from other sources for the construction of academic facilities, the Commissioner may make annual interest grants to such institutions and agencies. ''(b) Annual interest grants to an institution of higher education or higher education building agency with respect to any academic facility shall be made over a fixed period not exceeding forty years, and provision for such grants shall be embodied in a contract guaranteeing their payment over such period. Each such grant shall be in an amount not greater than the difference between (1) the average annual debt service which would be required to be paid, during the life of the loan, on the amount borrowed from other sources for the construction of such facilities, and (2) the average annual debt service which the institution would have been req^uired to pay, during the life of the loan, with respect to such amounts if the applicable interest rate were the luaxinium rate specified in section 744(b)(2). The amount on which such grant is based shall be approved by the Secretary. " (c)(1) There are hereby authorized to be appropriated to the Commissioner such sums as may be necessary for the payment of annual interest grants to institutions of higher education and higher education building agencies in accordance with this section. •'SEC.

Appropriation.

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Rh, never distinctly and nakedly behold it. They speak of moving society, but have no resting-place without it. They may be men of a certain experience and discrimination, and have no doubt invented ingenious and even useful systems, for which we sincerely thank them; but all their wit and usefulness lie within certain not very wide limits. They are wont to forget that the world is not governed by policy and expediency. Webster never goes behind government, and so cannot speak with authority about it. His words are wisdom to those legislators who contemplate no essential reform in the existing government; but for thinkers, and those who legislate for all time, he never once glances at the subject. I know of those whose serene and wise speculations on this theme would soon reveal the limits of his mind's range and hospitality. Yet, compared with the cheap professions of most reformers, and the still cheaper wisdom and eloquence of politicians in general, his are almost the only sensible and valuable words, and we thank Heaven for him. Comparatively, he is always strong, original, and, above all, practical. Still his quality is not wisdom, but prudence. The lawyer's truth is not Truth, but consistency, or a consistent expediency. Truth is always in harmony with herself, and is not concerned chiefly to reveal the justice that may consist with wrong-doing. He well deserves to be called, as he has been called, the Defender of the Constitution. There are really no blows to be given by him but defensive ones. He is not a leader, but a follower. His leaders are the men of '87. "I have never made an effort," he says, "and never propose to make an effort; I have never countenanced an effort, and never mean to countenance an effort, to disturb the arrangement as originally made, by which the various States came into the Union." Still thinking of the sanction which the Constitution gives to slavery, he says, "Because it was a part of the original compact,—let it stand." Notwithstanding his special acuteness and ability, he is unable to take a fact out of its merely political relations, and behold it as it lies absolutely to be disposed of by the intellect,—what, for instance, it behoves a man to do here in America to-day with regard to slavery, but ventures, or is driven, to 27

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Limitations.

••'"•'-

ft< ahr^ii.q4

[86 STAT.

" (^) CoiitrHcts foi' Huiiual interest g-rants under this section shall not be entered into in an aggregate amount greater than is authorized in appropriation Acts; and in any event the total amount of annual interest grants which may be paid to institutions of higher education and higher education building agencies in any year pursuant to contracts entered into under this section shall not exceed $5,0(K), which amount shall be increased by $6,750,(X) on July 1, 19B9, and by $13,50, on July 1. 1970 and on July 1 of each of the four succeeding yearS. ' (d) Not more than 121/^ per centum of the funds provided for in this section for grants may he used within any one State. '' (e) No annual interest grant pursuant to this section shall be made unless the (Commissioner finds (1) that not less than 10 per centum of the development costs of the facility will be financed from non-Federal sourcies, (2) that the applicant is unable to secure a loan in the amount of the loan with respect to which the annual interest grant is to be made, fix>m other sources upon terms and conditions equally as favorable as the terms and conditions applicable to loans under this title, and (3) that the construction will be undertaken in an economical manner and that it will not be of ela;borat« or extravagant design or materials. For purposes of this section, a loan with respect to which an interest grant is made under this section shall not be considered financing from a non-Federal source. For purposes of the other provisions of this title, such a loan shall be considered financing from a nonFederal source. "ACADKMIC

FACILITIES LOAN

IXSFKAIfCE

"SEC. 746. (a)(1) I n order to assist nonprofit pr-ivate institutions of higher education and nonprofit private higher education building agencies to procure loans for the construction of academic facilities, the Commissioner may insure the payment of interest and principal on such loans if such institutions and agencies meet, with respect to such loans, criteria prescribed by or under section 745 for the making of annual interest grants under such section. ''(2) No loan insurance under paragraph (1) may apply to so much of the principal amount of any loan as exceeds 90 per centum of the development cost of the academic facility with respect to which such loan was made. ' ' (b)(1) The United States shall be entitled to recover from any institution or agency to which loan insurance has been issued under this sect'on the amount of any payment made pursuant to that insurance, unless the Commissioner for good cause waives its right of recovery. T^'^pon making any such payment, the Ignited States shall be subrogated to all of the rights of the recipient of the payment with respect to which the payment was made. "(2) Any insurance issued by the Commissioner pursuant to subsection (a) shall be incontestable in the hands of the institution or agency on whose behalf such insurance is issued, and as to any agency, organization, or individual who makes or contracts to make a loan to such institution or agency in reliance thereon, except for fraud or misrepresentation on the part of such institution or agency or on the part of the agency, organization. or individual who makes or- contracts to make such loan. "(c) Insurance may be issued by the Conunissioner under subsection (a) only if he determines that the terms, conditions, maturity, security (if any), and schedule and amounts of repayments with respect to the loan are sufficient to protect the financial interests of the United States and are otherwise reasonable and in accord with regulations,

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including a determination that the rate of interest does not exceed such per centum per annum on the principal obligation outstanding as the Commissioner determines to be reasonable, taking into account the range of interest rates prevailing in the private market for similar loans and the risks assumed by the United States. The Commissioner may charge a premium for such insurance in an amount reasonably determined by him to be necessary to cover administrative expenses and probable losses under subsections (a) and (b). Such insurance shall be subject to such further terms and conditions as the Commissioner determines to be necessary. "PART D—ASSISTANCE IN MAJOR DISASTER AREAS •'AUTHORIZATION

"SEC. 761. (a) The (Commissioner shall carry out a program of financial assistance to public institutions of higher education, in accordance with the provisions of this part. "(b) There are authorized to be appropriated for each fiscal year such sums as may be necessary to carry out the provisions of this part. "ASSISTANCE FOR CONSTRUCTION OF ACADEMIC FACILITIES

"SEC. 762. (a) If the Director of the Office of Emergency Planning determines that a public institution of higher education is, in whole or in part, within an area which, after June 30, 1971, and before July 1, 1975, has suffered a disaster which is a major disaster, and if the Commissioner determines with respect to such institution that— "(1) the academic facilities of such institution have been destroyed or seriously damaged as a result of the disaster; "(2) such institution is exercising due diligence in availing itself of State and other financial assistance available for restoration or replacement of such facilities; and "(3) the institution does not have sufficient funds available from such other sources, including proceeds of insurance on the facilities, to provide for the restoration or replacement of such facilities; the Commissioner is authorized to provide such assistance to such institution as is provided in subsection (b). " (b)(1) Assistance under this section shall be a grant to an eligible institution, as determined under subsection (a), of an amount necessary to enable the institution to carry out the construction necessary to restore or replace the academic facilities determined under clause (1) of subsection (a) to be damaged or destroyed. "(2) The maximum amount of a grant under this section shall not exceed the cost of construction incident to the restoration or replacement of the facilities determined to be damaged or destroyed under clause (1) of subsection (a) less the amount of additional assistance determined under clause (3) of subsection (a) to be available. " (c)(1) Assistance under this section may include a grant of an amount necessary to enable the institution to lease, or otherwise obtain the use of, such facilities as are needed to replace, temporarily, facilities which have been made unavailable as a result of a major disastei-. "(2) An institution shall be eligible for assistance under this subsection if it qualifies for assistance under subsection (a), whether or not it receives assistance under subsection (b).

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'"EQUIPMENT A N D SUPPLIES

"SEC. 763. If an institution is eligible for assistance under section 762(a), the Commissioner is authorized, whether or not such institution receives assistance under section 762(b), to make a grant to such institution of not in excess of an amount he determines necessary to replace equipment, maintenance supplies, and instructional supplies (including books, and curricular and program materials) destroyed or seriously damaged as a result of the major disaster. "REPAYABLE ASSISTANCE IN LIEU OF A GRANT

"SEC. 764. If the Commissioner's determinations under clauses (2) and (3) of section 762(a) indicate that financial resources will become available to an institution otherwise qualified for assistance under section 762 at some future date or dates, he is authorized, subject to such terms and conditions as may be in the public interest, to extend assistance to such institution under section 762(b). 762(c), or 768 (or all such sections) with an agreement with such institution which provides that the institution will repay part or all of the funds received by it under this pait. "APPLICATIONS

 * ^ "i"^!

"SEC. 765. Xo payment may be made to a public institution of higher education for academic facilities under section 762 or for assistance under section 763 unless an application therefor is submitted through the appropriate State Commission and is filed with the Commissioner in accordance with regulations prescribed by him. In determining the order in which such applications shall be approved, the Commissioner shall consider the relative educational and financial needs of the institutions which have submitted approvable applications. Xo payment may be made under section 762(b) unless the Commissioner hiids after' consultation with the State Commission, that the project or projects with res^^ect to which it is made are noi: inconsistent with overall State plans, submitted under section 704(a), for the construction of academic facilities. All determinations made by the Commissioner under this part shall be made only after consultation with the appropriate State Commission. - •.— n:Mm iii 'rji}-n'i>.ii^i,,u H».. •?; "DEFINITIONS

84'stari759^''

"(1) the term 'major disaster' means a disaster determined to be a major disaster as defined in section 2(a) of the Act of September 30, 1950 (42 U.S.C. 1855a(a)); and "(2) an institution of higher education shall be deemed to be a 'public institution of higher education' if such institution is found by the Commissioner to be under public supervision and control. "PART E—GENERAL "RECOVERY OF PAYMENTS
 * "SEC. 766. For the purposes of this part—

"SEC. 781. (a) The Congress hereby finds and declares that, if a facility constructed with the aid of a grant or grants under part A or B of this title is used as an academic facility for twenty years following completion of such construction, the public benefit accruing to the United States from such use will equal in value the amount of such grant or grants. The period of twenty years after completion of such construction shall therefore be deemed to be the period of Federal interest in such facility for the purposes of this title.

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" (b) If. within twenty years after completion of construction of an academic facility which has been constructed in part with a grant or grants under part A or B of this title— " (1) the applicant (or its 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", 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 then value of the facility (or so much thereof as constituted an approved project or projects) the same ratio as the amount of such Federal grant or grants bore to the development cost of the facility financed with the aid of such grant or grants. Such 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) Notwithstanding the provisions of subsections (a) and (b), no facility constructed with assistance under this title shall ever be used for religious worship or a sectarian activity or for a school or department of divinity.

Prohibition.

"DEFINITIONS

"SEC. 782. The following definitions apply to terms used in this title: "(1)(A) Except as provided in subparagraph (B) of this paragraph, the term 'academic facilities' means structures suitable for use as classrooms, laboratories, libraries, and related facilities necessary or appropriate for instruction of students, or for research, or for administration of the educational or research programs, of an institution of higher education, and maintenance, storage, or utility facilities essential to operation of the foregoing facilities. For purposes of parts A, C, and D, such term includes infirmaries or other facilities designed to provide primarily for outpatient care of student and instructional personnel. Plans for such facilities shall be in compliance with such standards as the Secretary of Health, Education, and Welfare may prescribe or approve in order to insure that facilities constructed with the use of Federal funds under this title shall be, to the extent appropriate in view of the uses to be made of the facilities, accessible to and usable by handicapped persons. " (B) The term "academic facilities' shall not include (i) any facility intended primarily for e_vents for which admission is to be charged to the general public, or (ii) any gymnasium or other facility specially designed for athletic or recreational activities, other than for an academic course in physical education or where the Commissioner finds that the physical integration of such facilities with other academic facilities included under this title is required to carry out the objectives of this title, or (iii) any facility used or to be used for sectarian instruction or as a place for religious worship, or (iv) any facility wiich (although not a facility described in the preceding clause) is used or to be used primarily in connection with any part of the program of a school or department of divinity, or (v) any facility used or to be used by a school of medicine, school of dentistry, school of osteopathy, school of pharmacy, school of optometry, school of podiatry, or school of public health as these terms are defined in section 724 of the Public Health Service Act, or a school of nursing as defined in section 843 of that Act.

42 USC 293d. 42 USC 298b.

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J

[86 STAT.

"(2) The term 'construction' means (A) erection of new or expansion of existing structures, and the acquisition and installation of initial equipment therefor; or (B) acquisition of existing structures not owned by the institution involved; or (C) rehabilitation, alteration, conversion, or improvement (including the acquisition and installation of initial equipment, or modernization or replacement of built-in equipment) of existing structures; or (D) a combination of any two or more of the foregoing. For the purposes of the preceding sentence, the term 'equipment' includes, in addition to machinery, utilities, and built-in equipment and any necessary enclosures or structures to house them, all other items necessary for the functioning of a particular facility as an academic facility, including necessary furniture, except books, curricular and program materials, and items of current operating expense such as fuel, supplies, and the like; the term 'initial equipment' means equipment acquired and installed in connection with construction as defined in paragraph (2)(A) or (B) or, in cases referred to in paragraph (2)(C), equipment acquired and installed as part of the rehabilitation, alteration, conversion, or improvement of an existing structure, which structure would otherwise not be adequate for use as an academic facility; and the terms 'equipment', 'initial equipment', and 'built-in equipment' shall be more particularly defined by the Commissioner by regulation. For the purposes of clause (C) in the first sentence of this paragraph, the term 'rehabilitation, alteration, conversion, or improvement' includes such action as may be necessary to provide for the architectural needs of, or to remove architectural barriers to, handicapped persons with a view toward increasing the accessibility to, and use of, academic facilities by such persons. "(3)(A) The term 'development cost', with respect to an academic facility, means the amount found by the Commissioner to be the cost, to the applicant for a grant or loan under this title, of the construction involved and the cost of necessary acquisition of the land on which the facility is located and of necessary site improvements to permit its use for such facility. There shall be excluded from the development cost— " (i) in determining the amount of any grant under part A or B, an amount equal to the sum of (I) any Federal grant which the institution has obtained, or is assured of obtaining, under any law other than this title, with respect to the construction that is to be financed with the aid of a grant under part A or B, and ( II) the amount of any non-Federal funds required to be expended as a condition of such other Federal grant; and "(ii) in determining the amount of any loan under part C, an amount equal to the amount of any Federal financial assistance which the institution has obtained, or is assured of obtaining, under any law other than this title, with respect to the construction that is to be financed with the aid of a loan under part C. " (B) I n determining the development cost with respect to an academic facility, the Commissioner may include expenditures for works of art for the facility of not to exceed 1 per centum of the total cost (including such expenditures) to the applicant of construction of, and land acquisition and site improvements for, such facility. "(4) The term 'Federal share' means, except as provided in section 706(b)(2), in the case of any project a percentage (as determined under the applicable State plan) not in excess of 50 per centum of its development cost. " (5) The term 'higher education building agency' means (A) an agency, public authority, or other instrumentality of a State authorized U) provide, or finance the construction of, academic facilities for

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institutions of higher education (whether or not also authorized to provide or finance other facilities for such or other educational institutions, or for their students or faculty), or (B) any corporation (no part of the net earnings of which inures or may lawfully inure to the benefit of any private shareholder or individual)(I) established by an institution of higher education for the sole purpose of providing academic facilities for the use of such institution, and ( II) upon dissolution of which, all title to any property purchased or built from the proceeds of any loan made under part C will pass to such institution. " (6) The term 'public comnmnity college and public technical institute' means an institution of higher education which is under public super-vision and control, and is organized and administered principally to provide a two-year program which is acceptable for full credit toward a bachelor's degree, or a two-year program in engineering, mathematics, or the physical or biological sciences which is designed to prepare the student to work as a technician and at a semiprofessional level in engineering, scientific, or other technological fields which require the understanding and application of basic engineering, scientific, or mathematical principles or knowledge; and the term includes a branch of an institution of higher education offering four or more year's of higher education which is located in a comnmnity different from that in which its parent institution is located. "(T) The term 'cooperative graduate center'means an institution or program created by two or more institutions of higher education which, will offer to the students of the participating institutions of higher education graduate work which could not be offered with the same proficiency or economy (or both) at the individual institution of higher education. The center may be located or the program carried out on the campus of any of the participating institutions or at a separate location. " (8) The term 'cooperative graduate center board'means a duly constituted board established to construct and maintain the cooperative graduate center and coordinate academic programs. The board shall be composed of representatives of each of the institutions of higher education participating in the center and of the community involved. At least one-third of the board's members shall be community representatives. The board shall elect by a majority vote a chairman from among its membership. "(9) The term 'public educational institution' does not include a school or institution of any agency of the United States. "(10) The term 'State' includes, in addition to the several States of the Union, the Commonwealth of Puerto Eico, the District of Columbia, Guam, American Samoa, the Virgin Islands, and the Trust Territory of the Pacific Islands.". (b)(1) The programs authorized by title VII of the Higher Education Act of 1965 shall be deemed to be a continuation of the comparable programs authorized by the Higher Education Facilities Act of 1963. (2) Effective July 1, 1972, the Higher Education Facilities Act of 1963 is amended by striking out titles I and II thereof. (3) Effective July 1, 1972, such Act is amended by striking out section 306 thereof. (4) The revolving fund created by section 744 of the Higher Education Act of 1965 shall be deemed to be a continuation of the revolving fund created by section 305 of the Higher Education Facilities Act of 1963. Any sums in the fund for higher education academic facilities created by such section 305 on the date of enactment of this Act shall be transferred to the fund created by section 744 of the Higher Education

303

,

..,,;

^"'®' P- ^^^• 77 Stat. 3 6 3.

20 USC

701

note. Effective dates 20 USC 7 1 1, 731. 20 USC 746. Ante,

p 296.

80 Stat. 166. 20 USC 745.

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 304 Ante, p. 296.

77 Stat. 372; 82 Stat. 1059

2o'usc 743*. 20 USC 741. Ante, p. 295.

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

s^^^^ of 1965, and all such funds shall be deemed to have been made available for such fund. Notwithstanding any other provision of law, unless enacted in specific limitation of the provisions of this sentence, any sums appropriated pursuant to section 303(c) of the Higher Education Facilities Act of 1963 for any fiscal year ending prior to July 1, 1973, which have not been loaned under title III of that Act of 1963 shall be deemed to have been appropriated pursuant to section 741(b) of tho Higher Education Act of 1965 for the fiscal year ending,Tune 30. 1973. PART H—NETWORKS FOR KNOWLEDGE EXTENSIONEXTENSION OF AUTHORIZATION OF APPROPRIATIONS

90 V^r iit^'

SEC. 171. Effective after June 30, 1971, section 802 of the Higher Education Act of 1965 is amended by inserting before the period at the end thereof "$5,000,000 for the fiscal year ending June 30, 1972, $10,000,000 for the fiscal year ending June 30, 1973, and $15,000,000 for earn of the fiscal years ending June 30, 1974., and June 30, 1975". I N C L U S I O N o r LAW A N D GRADUATE PROFESSIONAL SCHOOLS

20 USC 1133.

Effective date.

SEC. 172 (a)(1) Section 801(a) of the Higher Education Act of 1965 is amended by striking out the first sentence thereof and inserting in lieu thereof the following: "The Commissioner shall carry out a program of encouraging institutions of higher education (including law and other graduate professional schools) to share, to the optimal extent, through cooperative arrangements, their technical and other educational and administrative facilities and resources, and to test and demonstrate the effectiveness and efficiency of a variety of such arrangements, in accordance with this title. The Commissioner is authorized to make grants to, and contracts with, institutions of higher education to pay all or part of the cost of cooperative arrangements and of pilot or demonstration projects designed to accomplish the purpose set forth in the first sentence of this subsection.". (2) Clause (1)(A) of section 801(b) of such Act is amended by inserting after "libraries" a comma and "including law libraries", and by inserting after "collections" a comma and "including law library collections,". (j^^ ^\^Q amendments made by subsection (a) shall be effective after June 30, 1972. PART I—GRADUATE PROGRAMS N E W TITLE IX OF THE H I G H E R EDUCATION ACT OF 1!)G5 PROGRAMS)

20 u*sc / m '

(GRADUATE

SEC. 181. (a) The Higher Education Act of 1965 is amended by striking out title IX and inserting in lieu thereof the following: "TITLE IX—GRADUATE PROGRAMS "PART A—GRANTS TO INSTITUTIONS OF HIGHER EDI'CATION "PURPOSES; AUTHORIZATION

"SEC. 901. (a) I t is the purpose of this part to make financial assistance available to institutions of higher education— "(1) to strengthen, improve and where necessary expand the quality of graduate and professional programs leading to an advanced degree (other than a medical degree) in such institutions;

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"(2) to establish, strengthen, and improve programs d e s i r e d to prepare graduate and professional students for public service; and "(3) to assist in strengthening undergraduate programs of instruction in the areas described in clauses (2), (3), and (4), whenever the Commissioner determines that strengthened undergraduate programs of instruction will contribute to the purposes of such clauses. " (b) The Commissioner shall carry out a program of making grants to institutions of higher education to carry out the purposes set forth in subsection (a). "(c) There are authorized to be appropriated $30,000,000 for the fiscal year ending June 30, 1973, $40,000,000 for the fiscal year ending June 30, 1974, and $50,000,000 for the fiscal year ending June 30, 1975, for the purposes of this part.

Hi

,

a APPLICATIONS FOR GRAXT8

"SEC. 902. (a) The Commissioner is authorized to make grants to institutions of higher education in accordance with the provisions of this part. An institution of higher education desiring to receive a grant under this part shall submit to the Commissioner an application therefor at such time or times, in such manner, and containing such information as the Commissioner may prescribe by regulation. Such, application shall set forth a program of activities for carrying out one or more of the purposes set forth in section 901(a) in such detail as will enable the Commissioner to determine the degree to which such program will accomplish such purpose or purposes, and such other policies, procedures, and assurances as the Commissioner may require by regulation. "(b) The Commissioner shall approve an application only if he determines that the application sets forth a program of activities which are likely to make substantial progress toward achieving the purposes of this part. uAUTHORIZED

ACTIVITIES

"SEC. 903. (a) The funds appropriated pursuant to section 901(c) may be used for such purposes as the Commissioner determines will best accomplish the purposes of this part. " (b) Such funds may be used solely for the purposes set forth in an application approved under section 902 and solely for the purpose of accomplishing the purposes stated in section 901(a), and to that end such funds may be used for— " Q) faculty improvement; "(2) the expansion of graduate and professional programs of study; " (3 ^ the acquisition of appropriate instructional equipment and materials; "(4) cooperative arrangements among graduate and professional schools; and "(5) the strengthening of graduate and professional school administration. "(c) No sums granted under this part may be used— "(1) for payment in excess of 66% per centum of the total cost of such project or activity; "(2) for payment in excess of 50 per centum of the cost of the purchase or rental of books, audiovisual aids, scientific apparatus, or other materials or equipment, less any per centum of such cost.

Prohibitions.

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[86 STAT.

as determined by the Coniiiiissioner, that is paid from sums received (other than under this part) as Federal financial assistance; or '"(B) for sectarian instruction or religious worship, or primarily in connection with any p a i t of the program of a school or de]>artment of divinity. "KKSEAKCH A N D STVDIES

"SKC. 904. The Commissioner is authorized, directly or by contract, ro conduct studies and research activities in coioiection with the need for, and improvement of, graduate programs in various fields of study in institutions of higher education throughout the United States. "PART 1^—(TKADI AJT-: FELLOWSHIPS FOR (3ARF:ERS IN P(>S'J\SE('XI)ARY EDUCATION "AITROPRIATIONS AVTJIORIZED

921. There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this pait. •'SEC.

•'NUMBER or FELLOWSHIPS

922. (a) During the fiscal year ending June 80, 1973, and each of the two succeeding fiscal years, the Commissioner is authorized C award not to exceed seven thousand five hundred fellowships to be O used for study in graduate programs at institutions of higher" education. Such fellowships may be awarded for such period of study as the Commissioner may determine, but not in excess of three academic years, except (1) that where a fellowship holder pursues his studies as a regularly enrolled student at the institution during periods outside the regular sessions of the graduate program of the institution, a fellowship may be awarded for a period not in excess of three calendar years, and (2) that the Commissioner may provide by regulation for- the granting of such fellowships for a period of study not to exceed one academic year (or one calendar year in the case of fellowships to which clause (1) applies) in addition to the maximum period otherwise applicable, under special circumstances in which the purposes of this part would most effectively be served thereby. "(b) I n addition to the number of fellowships authorized to be awarded by subsection (a) of this section, the Commissioner is authorized to award fellowships equal to the number previously awarded during any fiscal year under this section but vacated prior to the end of the period for which they were awarded; except that each fellowship awar-ded under- this subsection shall be for such period of study, not in excess of the remainder of the period for which the fellowship which it replaces was awarded, as the Commissioner may determine. ••SEC.

• ' A W A R D OF F E L L O W S H I P S A N D APPROVAL OF INSTITUTIONS •'C-. 'SEC.

923. (a) Of the total number of fellowships authorized by section 922(a) to be awarded during a fiscal year (1) not less than onethird shall be awarded to individuals accepted for study in graduate programs approved by the Commissioner under this section, and (2) the remainder shall be awarded on such bases as he may determine, subject to the provisions of subsection (c). The Commissioner shall approve a graduate program of an institution of higher education only upon application by the institution and only upon his finding that the

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application contains satisfactory assurance that the institution will provide special orientation and practical experiences designed to prepare its fellowship recipients for academic careers at some level of education beyond the high school. " (b) I n determining priorities and procedures for the award of fellowships under this section, the Commissioner shall— "(1) take into account present and projected needs for highly trained teachers in all areas of education beyond the high school, "(2) give special attention to those institutions which have developed new doctoral-level programs especially tailored to pre-, pare classroom teachers, "(3) consider the need to prepare a larger number of teachers and other academic leaders from minority groups, but nothingcontained in this clause shall be interpreted to require any educational institution to grant preference or disparate treatment to the members of one minority group on account of an imbalance which may exist with respect to the total number or percentage of persons of that group participating in or receiving the benefits of this program, in comparison with the total number or percentage of persons of that group in any community. State, section, or other area, "(4) assure that at least one-half of all new fellowship recipients have demonstrated their competence outside of a higher education setting for at least two years subsequent to the completion of their undergraduate studies, "(5) allow a fellowship recipient to interrupt his studies for up to one year for the purpose of work, travel, or independent study away from the campus, except that no stipend or travel expenses may be paid for such period, and "(6) seek to achieve a reasonably equitable geographical distribution of graduate programs approved under this section, based upon such factors as student enrollments in institutions of higher education and population. "(c) Recipients of fellowships under this part shall be persons who are interested in an academic career in educational programs beyond the high school level and are pursuing, or intend to pursue, a course of study leading to a degree of doctor of philosophy, doctor of arts, oi- an equivalent degree. school or department of divinity. ''FELLOWSHIP STIPENDS
 * '(d) No fellowship shall be awarded under this part for study at a P'-ohibition.

"SEC. 924. (a) The Commissioner shall pay to persons awarded fellowships under this part such stipends (including such allowances for subsistence and other expenses for such persons and their dependents) as he may determine to be consistent with prevailing practices under comparable federally supported programs. •'(b) The Commissioner shall (in addition to the stipends paid to persons under subsection (a)) pay to the institution of higher education at which such person is pursuing his course, of study, in lieu of tuition charged such person, such amounts as the Commissioner may determine to be consistent with prevailing practices under comparable federally supported programs, except that such amount shall not exceed $4,000 per academic year for any such person. "FELLOWSHIP CONDITIONS

"SEC. 925. (a) A person awarded a fellowship under the provisions of this part shall continue to receive the payments provided in section

307

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^^p°'-^^-

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[86 STAT.

^^'^ V^^^y during such periods as the Coiiiinissioner finds that lie is maintaining satisfactory proficiency in, and devoting essentially full time to, study or research in the field in which such fellowship was awarded, in an institution of higher education, and is not engaging in gainful employment other than part-time employment by such institution in teaching, research, or similar activities, approved by the Commissioner. "(b) The Commissioner is authorized to require reports containing such information in such form and to be filed at such times as he determines necessary from any person awarded a fellowship under the provisions of this part. Such reports shall be accompanied by a certificate from an appropriate official at the institution of higher education, library, archive, or other research center approved by the Commissioner, stating that such person is making satisfactory progress in, and is devoting essentially full time to, the program for Avnich the fellowship was awarded. "PART C—PujiLic SERVICE FELLOWSHIPS " A W A R D OF PL'BLIC SERVICE F E L L O W S H I P S

Appropriation.

"SEC. 941. (a) During the fiscal year ending June 30, 1973, and each of the two succeeding fiscal years, the Commissioner is authorized to award not to exceed five hundred fellowships in accordance with the provisions of this part for graduate or professional study for j^ersons who plan to pursue a career in public service. Such fellowships shall be awarded for such periods as the Commissioner may determine but not to exceed three academic years. a ^^^ Thcrc are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this part. "ALLOCATIOX or

FELLOWSHIPS

^ "SEC. 942. The Commissioner shall allocate fellowships under this pait among institutions of higher education with programs approved under the provisions of this part for the use of individuals accepted into such programs, in such manner and according to such plan as will insofar as practicable— "'(l) provide an equitable distribution of such fellowships throughout the United States; and " (2) attract recent college graduates to pursue a career in public service. "APPROVAL or PROGRAMS

<

"SEC. 943. The Connnissioner shall approve a graduate or professional program of an institution of higher education only upon application by the institution and only upon his findings— "(1) that such program has as a principal or significant objective the education of persons for the public service, or the education of persons in a profession or vocation for whose practitioners there is a significant continuing need in the public service as determined by the Commissioner after such consultation with other agencies as may be appropriate; "(2) that such program is in effect and of high quality, or can readily be put into effect and may reasonably be expected to be of high quality; "(3) that the application describes the relation of such program to any program, activity, research, or development set forth by the applicant in an application, if any, submitted pursuant to section 901(a)(2); and

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"(4) that the application contains satisfactory assurance that (A) the institution will recommend to the Commissioner, for the award of fellowships under this part, for study in such program, only persons of superior promise who have demonstrated to the satisfaction of the institution a serious intent to enter the public service upon completing the program, and (B) the institution will make reasonable continuing efforts to encourage recipients of fellowships under this part, enrolled in such programs, to enter the public service upon completing the program. "STIPENDS

"SEC. 944. (a) The Commissioner shall pay to persons awarded fellowships under this part such stipends (including such allowances for subsistence and other expenses for such persons and their dependents) as he may determine to be consistent with prevailing practices under comparable federally supported programs. " (b) The Commissioner shall (in addition to the stipends paid to persons under subsection (a)) pay to the institution of higher education at which such person is pursuing his course of study such amount as the Commissioner may determine to be consistent with prevailing practices under comparable federally supported programs. "FELLOWSHIP CONDITIOXS

"SEC. 945. (a) A person awarded a fellowship under the provisions of this part shall continue to receive the payments provided in this part only during such periods as the Commissioner finds that he is maintaining satisfactory proficiency and devoting full time to study or research in the field in which such fellowship was awarded in an institution of higher education, and is not engaging in gainful employment other than employment approved by the Commissioner by or pursuant to regulation. "(b) The Commissioner is authorized to require reports containing such information in such form and to be filed at such times as he determines necessary from any person awarded a fellowship under the provisions of this part. Such reports shall be accompanied by a certificate from an appropriate official at the institution of higher education, library, archive, or other research center approved by the Commissioner, stating that such person is making satisfactory progress in, and is devoting essentially full time to, the program for which the fellowship was awarded. "(c) No fellowship shall be awarded under this part for study at a school or department of divinity.

Reports.

Prohibition.

" P A R T D—FELLOWSHIPS FOR OTHER PURPOSES "PROGRAM

AUTHORIZED

"SEC. 961. (a) I t is the purpose of this part to provide fellowships— "(1) to assist graduate students of exceptional albility who demonstrate a financial need for advanced study in domestic mining and mineral and mineral fuel conservation including oil, gas, coal, oil shale, and uranium; and "(2) for persons of ability from disadvantaged backgrounds, as determined by the Commissioner, undertaking graduate or professional study. The demonstration of financial need shall be determined in accordance with regulations prescribed by the Commissioner.

Regulations.

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Limitation. Post, p. 311.

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[86 STAT.

"(b)(1) The Commissioner is authorized to award mider the provisions of this part not to exceed five hmidred fellowships for the fiscal year ending June 30, 1973, and for each of the two succeeding fiscal years. Appropriations made pursuant to section 965 for fellowships awarded under clause (2) of subsection (a) of this section may not exceed $1,000,000 in any fiscal year. "(2) I n addition to the number of fellowships authorized to be awarded under paragraph (1), the Commissioner is authorized to award fellowships equal to the number previously awarded during any fiscal year under this part but vacated prior to the end of the period for- which they were awarded except that each fellowship awarded under this paragraph shall be for such period of graduate or professional work or research not in excess of the remainder of the period for which the fellow-ship it replaces was awarded as the Commissioner may determine. "(c) Fellowships awarded under this part shall be for graduate and professional study leading to an advanced degree or research incident to the presentation of a doctoral dissertation. Such fellowships may be awarded for graduate and professional study and research at any institution of higher education or any other research center approved for such purpose by the Commissioner. Such fellowships shall be awarded for such periods as the Commissioner may determine but not to exceed three years. " A W A R D o r FELLOWSHIPS

"SEC. 962. Recipients of fellowships under this part shall be— " (1) persons who have been accepted by an institution of higher education for graduate study leading to an advanced degree or for a professional degree, or "(2) persons who have completed all course work required for granting of a doctoral degree or an equivalent degree (except such course work credited on the dissertation) and comprehensive examinations where appropriate, and whose doctoral dissertation (or other equivalent dissertation) proposal has been approved by appropriate officials of an institution of higher education. u STIPENDS AND INSTITUTION OF HIGHER EDUCATION ALLOWANCES

Travel allowance.

"SEC. 963. (a) The Commissioner shall pay to persons awarded fellowships under this part such stipends as he may determine to be consistent with prevailing practices under comparable federally supported programs, except that the stipend shall not be less than $2,800 for each academic year study. An additional amount of $300 for each such year shall be paid to each such person on account of each of his dependents, not to exceed the amount of $1,500 per academic year. "(b) In addition to the amount paid to persons pursuant to subsection (a) there shall be paid to the institution of higher education at which each such person is pursuing his course of study an amount equal to 150 per centum of the amount paid to such person, less the amount paid on account of each of such person's dependents, to such person, less any amount charged such person for tuition. "(c) The Commissioner shall reimburse any person awarded a fellowship pursuant to this part for actual and necessary traveling expenses of such person and his dependents from his ordinary place of residence to the institution of higher education, library, archive, or other research center where he will pursue his studies under such fellowship, and to return to such residence.

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311

"FELLOWSHIP CONDITIONS

"SEC. 964. (a) A person awarded a fellowship under the provisions of this part shall continue to receive the payments provided in this part only during such periods as the Commissioner finds that he is maintaining satisfactory proficiency and devoting full time to study or research in the field in which such fellowship was awarded in an institution of higher education, and is not engaging in gainful employment other than employment approved by the Commissioner by or pursuant to regulation. " (b) The Commissioner is authorized to require reports containing such information in such form and to be filed at such times as he determines necessary from any person awarded a fellowship under the provisions of this part. Such reports shall be accompanied by a certificate from an appropriate official at the institution of higher education, library, archive, or other research center approved by the Commissioner, stating that such person is making satisfactory progress in, and is devoting essentially full time to, the program for which the fellowship was awarded. "(c) No fellowship shall be awarded under this title for study at a school or department of divinity.

Reports.

Prohibition.

"APPROPRIATIONS AUTHORIZED

"SEC. 965. There are authorized to be appropriated such sums as may be necessary for the purposes of this part.". E X T E N S I O N A N D E X P A N S I O N OF TITLE VI OF THE N A T I O N A L D E F E N S E EDUCATION ACT

SEC. 182. (a) Section 601 of the National Defense Education Act of 1958 is amended to read as follows:

72 Stat. 1 5 9 3. 20 USC 5 1 1.

" L A N G U A G E A N D AREA CENTERS xVND PROGRAMS

"SEC. 601. (a) The Secretary is authorized to make grants to or contracts with institutions of higher education for the purposes of establishing, equipping, and operating graduate and undergraduate centers and programs for the teaching of any modern foreign language, for instruction in other fields needed to provide a full understanding of the areas, regions, or countries in which such language is commonly used, or for research and training in international studies and the international aspects of professional and other fields of study. Any such grant or contract may cover all or part of the cost of the establishment or operation of a center or program, including the costs of faculty, stafi', and student travel in foreign areas, regions, or countries, and the costs of travel of foreign scholars to teach or conduct research, and shall be made on such conditions as the Secretary finds necessary to carry out the purposes of this section. " (b) The Secretary is also authorized to pay stipends to individuals undergoing advanced training in any center or under any program receiving Federal financial assistance under this title, including allowances for dependents and for travel for research and study here and abroad, but only upon reasonable assurance that the recipients of such stipends will, on completion of their training, be available for teaching service in an institution of higher education or elementary or secondary school, or such other service of a public nature as may be permitted in the regulations of the Secretary. 82-081 O - 73 - 23

Contract authority.

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Restriction.

sa^statVoV?"^' 20 USC 513.

[86 STAT.

"(e) Xo fuiids luay be expended under this title for undergraduate travel except in accordance with rules prescribed by the Secretary settinj>- foith policies and procedures to assure that Federal funds made available for such travel are expended as part of a foraial prx)gram of supervised study.". ^^) Section 603 of such Act is amended by striking out "and $38,500,000 for the fiscal year ending June 30, 1971," and by inserting in lieu thereof the following: "$38,500,000 for each of the fiscal years ending June 30, 1971, and June 30, 1972, $50,000,000 for the fiscal year ending June 30, 1973, and $75,000,000 for each of the fiscal years ending June 30, 1974, and June 30, 1975,". KXTEXSION OF THE INTERNATIONAL EDUCATION ACT OF 1»6

82*statVo62^^' 20 USC 1176.

iii'il('A-''^i.

SEC. 183. Section 105(a) of the International Education Act of 1966 is amended by inserting after the second sentence thereof the following new sentence: "There are authorized to be appropriated $20,000,000 for the fiscal year ending June 30, 1973, $30,000,000 for the fiscal year ending June 30, 1974, and $40,000,000 for the fiscal year ending June 30, 1975, for the purpose of carrying out the provisions of this title.". P A R T J — IMPROVEMENT OF COMMUNITY COLLEGES AND OCCUPATIONAL EDUCATION AMENDMENT TO THE TITLE X OF THE H I G H E R EDUCATION ACT o r 1965

82 Stat. 1047. 20 USC 1135.

SEC. 186. (a)(1) Title X of the Higher Education Act of 1965 is amended to read as follows;. > ,• •

'a-e ^V;

-

" TITLE X — COMMUNITY C O L L E G E S AND OCCUPATIONAL EDUCATION

" P A R T A—ESTABLISHMENT AND EXPANSION OF COMMUNITY COLLEGES

.H.odtis Post. p. 324.

Post, p. 315.

"Subpart 1—Statewide Plans "SEC. 1001. (a) Each State Commission (established or designated under section 1202) of each State which desires to receive assistance under this subpart shall develop a statewide plan for the expansion or improvement of postsecondary education programs in community colleges or both. Such plan shall among other things— "(1) designate areas, if any, of the State in which residents do not have access to at least two years of tuition-free or low-tuition postsecondary education within reasonable distance; "(2) set forth a comprehensive statewide plan for the establishment, or expansion, and improvement of community colleges, or both, which would achieve the goal of making available, to all residents of the State an opportunity to attend a community college (as defined in section 1018); " (3) establish priorities for the use of Federal and non-Federal financial and other resources which would be necessary to achieve the goal set forth in clause (2); "(4) make recommendations with respect to adequate State and local financial support, within the priorities set forth pursuant to cl ause (3), for community colleges; "(5) set forth a statement analyzing the duplications of postsecondary educational programs and make recommendations for the coordination of such programs in order to eliminate unnecessary or excessive duplications; and _ ^,

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" (6) set forth a plan for the use of existing and new educational resources in the State in order to achieve the goal set forth in clause (2), including recommendations for the modification of State plans for federally assisted vocational education, community services, and academic facilities as they may affect community colleges. In carrying out its responsibilities under this subsection, each State Commission shall establish an advisory council on community colleges which shall— " (A) be composed of— "(i) a substantial number of persons in the State (including representatives of State and local agencies) having responsibility for the operation of community colleges; "(ii) representatives of State agencies having responsibility for or an interest in postsecondary education; and " (iii) the general public; " (B) have responsibility for assisting and making recommendations to the State Commission in developing the statewide plan required under this section; " (C) conduct such hearings as the State Commission may deem advisable; and " (D) pursuant to requirements established by the State Commission, provide each State and local agency within the State responsible for postsecondary education an opportunity to review and make recommendations with respect to such plan. "(b)(1) There is hereby authorized to be appropriated $15,700,000 during the period beginning July 1, 1972, and ending June 30, 1974, to carry out the provisions of this section. "(2) Sums appropriated pursuant to paraarraph (1) shall be allotted by the (Jommissioner equally among the States, except that the amount allotted to Guam, American Samoa, and the Virgin Islands shall not exceed $100,000 each. Such sums shall remain available until expended. "(c) Each plan developed and adopted pursuant to subsection (a) shall be submitted to the Commissioner for his approval. The Commissioner shall not approve any plan unless he determines that it fulfills the requirements of this section.

313

Advisory counc i l s on community colleges.

Appropriation.

"Subpart 2—Establishment and Expansion of Community Colleges U

PROGRAM

AUTHORIZATION

"SEC. 1011. (a) In order to encourage and assist those States and localities which so desire in establishing or expanding community colleges, or both, the Commissioner shall carry out a program as provided in this subpart for making grants to community colleges in order to improve educational opportunities available through community colleges in such States. " (b) For the purpose of carrying out this subpart, there are authorized to be appropriated $50,000,000 for the fiscal year ending June 30.1973, $75,000,000 for the fiscal year ending June 30.1974, and S150,000,000 for the fiscal year ending June 30, 1975. ii

APPORTIONMENTS

"SEC. 1012. (a) From the sums appropriated pursuant to section 1011 (b) for each fiscal year the Commissioner shall apportion not more than 5 per centum thereof among Puerto Rico, Guam, American Samoa and the Virgin Islands according to their respective needs. From the

Appropriations.

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remainder of such sums the Commissioner shall apportion to each State aji amount which bears the same ratio to such remainder as the population aged eighteen and over in such State bears to the total of such population in all States. For the purpose of the second sentence of this subsection, the term 'State' does not include Puerto Rico, Guam, American Samoa and the Virgin Islands. "(b) The portion of any State's apportionment under subsection (a) for a fiscal year which the Commissioner determines will not be required, for the period such apportionment is available, for carrying out the purposes of this subpart shall be available for reapportionment from time to time, on such dates during such period as the Commissioner shall fix, to other States in proportion to the original apportionments to such States under subsection (a) for such year but with such proportionate amount for any of such other States being reduced to the extent it exceeds the sum which the Commissioner estimates such State needs and will be able to use for such period for carrying out such portion of its State plan referred to in section 1001(a)(2) approved under this subpart, and the total of such reductions shall be similarly reapportioned among the States whose proportionate amounts are not so reduced. Any amount reapportioned to a State under this subsection during a year shall be deemed part of its apportionment under subsection (a) for such year.

"State."

•'ESTABLISHMENT GRANTS

"SEC. 1013. (a) The Commissioner is authorized to make grants to new community colleges to assist them in planning, developing, establishing, and conducting initial operations of new xjommunity colleges in areas of the States in which there are no existing community colleges or in which existing community colleges cannot adequately provide postsecondary educational opportunities for all of the residents thereof who desire and can benefit from postsecondary education. "New com- ^ ^ " (jj) FoT the purposes of subsection (a), the term 'uew commuulty lum yco ege. (.Qllege' meaus a board of trustees or other governing board (or its equivalent) which is established by, or pursuant to, the law of a State, or local government, for the purpose of establishing a community colPosf, p. 315. lege, as defined in section 1018, or any existing board so established which has the authority to create, and is in the process of establishing, a new community college. " E X P A N S I O N GRANTS

- '

'

"SEC. 1014. The Commissioner is authorized to make grants to existing community colleges to assist them— "(1) in expanding their enrollment capacities, "(2) in establishing new campuses, and " (3) in altering or modifying their educational programs, in order that they may (A) more adequately meet the needs, interests, and potential benefits of the communities they serve, or (B) provide educational programs especially suited to the needs of educationally disadvantaged persons residing in such communities. ((LEASE

OF FACILITIES

"SEC. 1015. (a) The Commissioner is authorized to make grants to community colleges to enable them to lease facilities, for a period of not to exceed five years, in connection with activities carried out by them under section 1013 or section 1014.

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" (b) The Federal share of carrying out a project through a grant under this section shall not exceed— " (1) 70 per centum of the cost of such project for the first year of assistance under this section; "(2) 50 per centum thereof for the second such year; "(3) 30 per centum thereof for the third such year; and "(4) 10 per centum thereof for the fourth such year.

Federal share, limitations.

•'APPLICATIONS; FEDERAL SHARE

"SEC. 1016. (a)(1) Grants under sections 1013 and 1014 may be made only upon application to the Commissioner. Applications for assistance under such sections shall be submitted at such time, in such manner and form, and containing such information as the Commissioner shall require by regulation. "(2) Xo application submitted pursuant to paragraph (1) shall be approved unless the Commissioner determines that it is consistent with the plan approved by him under section 1001 from the State in which the applicant is located. " (b)(1) Xo application for assistance under section 1013 or 1014 shall be approved for a period of assistance in excess of four years. ''(2) The Federal share of the cost of carrying out the project for which assistance is sought in an application submitted pursuant to this section shall not exceed— " (A) 40 per centum of such cost for the first year of assistance: " (B) 30 per centum thereof for the second year of assistance; " (C) 20 per centum thereof for the third year of assistance; and •'(D) 10 per centum thereof for the fourth year of assistance. "(c)(1) Funds appropriated pursuant to section 1011 and granted under section 1013 or 1014 shall, subject to paragraph (2), be available for those activities the Commissioner determines to be necessary to carry out the purposes of such sections. "(2) Such funds may be used (A) to remodel or renovate existing facilities, or (B) to equip new and existing facilities, but such funds may not be used for the construction of new facilities or the acquisition of existing facilities. "PAYMENTS

"SEC. 1017. From the amount apportioned to each State pursuant to section 1012, the Commissioner shall pay to each applicant from that State which has had an application for assistance approved under this subpart the Federal share of the amount expended under such application. "DEFINITIONS

"SEC. 1018. As used in this title, the term 'community college' means any junior college, postsecondary vocational school, technical institute. or any other educational institution (which may include a four-year institution of higher education or a branch thereof) in any State which— "(1) is legally authorized within such State to provide a program of education beyond secondary education; "(2) admits as regular students persons who are high school graduates or the equivalent, or at least 18 years of age; "(3) provides a two-year postsecondary educational program leading to an associate degree, or acceptable for credit toward a bachelor's degree, and also provides programs of postsecondary vocational, technical, occupational, and specialized education; " (4) is a public or other nonprofit institution;

Limitations.

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"(5) is accredited as an institution by a nationally recognized accreaiting agency or association, or if not so accredited— " (A) is an institution that has obtained recognized preaccreditation status from a nationally recognized accrediting body, or ' ' (B) is an institution whose credits are accepted on transfer, by not less than three accredited institutions, for credit on the same basis as if transferred from an institution so accredited. "PART B—OCCUPATIONAL EDUCATION PROGRAMS;

'

"

"AUTHORIZATION OF APPROPRIATIONS

Post, p. 318.

Post, p. 319. Post. p. 321.

"SEC. 1051. For the purpose of carrying out this part, there are hereby authorized to be appropriated $100,000,000 for the fiscal year ending June 30, 1973, $250,000,000 for the fiscal year ending June 30. 1974, and $500,000,000 for the fiscal year ending June 30, 1975. Eighty per centum of the funds appropriated for the first year for which funds are appropriated under this section shall be available for the purposes of establishing administrative arrangements under section 1055, making planning grants under section 1056, and for initiating programs under section 1057 in those States which have complied with the planning requirements of section 1056; and 20 per centum shall be available only for technical assistance under section 1059(a). From the amount appropriated for each succeeding fiscal year 15 per centum shall be reserved to the Commissioner for grants and contracts pursuant to section 1059(b). "ALLOTMENTS AND REALLOTMENTS

AMONG

STATES

"SEC. 1052. (a) From the sums appropriated under section 1051 for the first year for which funds are appropriated under that section (other than funds available only for technical assistance), the Commissioner shall first allot such sums as they may require (but not to exceed $50,000 each) to American Samoa and the Trust Territory of the Pacific Islands. From the remainder of such sums he shall allot to each State an amount which bears the same ratio to such remainder as the number of persons sixteen years of age or older in such State bears to the number of such persons in all the States, except that the amount allotted to each State shall not be less than $100,000. "(b) From the sums appropriated for any succeeding fiscal year under such section (other than funds reserved to the Commissioner), the Commissioner shall first allot such sums as they may require (but not to exceed $500,000 each) to American Samoa and the Trust Territory of the Pacific Islands. From the remainder of such sums he shall allot to each State an amount which bears the same ratio to such remainder as the number of persons sixteen years of age or older in such State bears to the number of such persons in all the States, except that the amount allotted to each State shall not be less than $500,000. "(c) The portion of any State's allotment under subsection (a) or (b) for a fiscal year which the Commissioner determines will not be required, for the period such allotment is available, for carrying out the purposes of this part shall be available for reallotment from time to time, on such date or dates during such periods as the Commissioner may fix, to other States in proportion to the original allotments to such States under subsection (a) or (b) for such year, but with such proportionate amount for any of such other States being reduced to the extent it exceeds the sum which the Commissioner estimates such States need

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and will be able to use for such period, and the total of such reductions shall be similarly reallotted among the States whose proportionate amounts are not so reduced. Any amount reallotted to a State under this subsection during a year shall be deemed part of its allotment under subsection (a) or (b) for such year. "FEDERAL ADMINISTRATION

1058. The Secretary shall develop and carry out a program designed to promote and encourage occupational education, which program shall— "(1) provide for the administration b}^ the Commissioner of Education of grants to the States authorized by this part; . s-j "(2) assure that manpower needs in subprofessional occupations in education, health, rehabilitation, and community and welfare services are adequately considered in the development of programs under this part; "(3) promote and encourage the coordination of programs developed under this part with those supported under part A of this title, the Vocational Education Act of 1963, the Manpower 20 USC 1241 Development and Training Act of 1962, title I of the Economic "°42 USC 2571 Opportunity Act of 1964, the Public Health Service Act, and note. related activities administered by various departments and agen- '^^ ^^^ ^ru, 201 note. cies of the Federal Government; and "(4) proA^de for the continuous assessment of needs in occupational education and for the continuous evaluation of programs supported under the authority of this part and of related provisions of law. ''SEC.

" GENERAL R E S P O N S I B I L I T I E S OF COMMISSIONER O F EDUCATION

"SEC. 1054. The Commissioner shall, in addition to the specific responsibilities imposed by this part, develop and carry out a program •)f occupational education that will— "(1) coordinate all programs administered by the Commissioner which specifically relate to the provisions of this part so as to provide the maximum practicable support for the objectives of this part; "(2) promote and encourage occupational preparation, counseling and guidance, and job placement or placement in postsecondary occupational education programs as a responsibility of elementary and secondary schools; "(3) utilize research and demonstr-ation programs administer-ed by him to assist in the development of new and improved instructional methods and technology for occupational education and in the design and testing of models of schools or school systems which place occupational education on an equal footing with academic education; "(4) assure that the Education Professions Development Act and similar programs of general application will be so administered as to provide a degree of support for vocational, technical, and occupational education commensurate with national needs and more nearly representative of the relative size of the population to be served; and "(5) develop and disseminate accurate information on the status of occupational education in all parts of the Nation, at all levels of education, and in all types of institutions, together with information on occupational opportunities available to persons of all ag-es.

79 Stat. 1254; 81 Stat. 9 3. 20 USC 1091 note.

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''STATE ADMINISTRATION-

1055. (a) Any State desiring to participate in the prograni authorized by this part shall in accordance with State hnv establish a State agency or designate an existing State agency which will have sole responsibility for fiscal management and administration of the program, in accordance with the plan approved under this part, and which adopts administrative arrangements which will provide assurances satisfactory to the Commissioner that— "(1) the State Advisory Council on Vocational Education will be charged with the same responsibilities with respect to the program authorized by this part as it has with respect to programs authoHzed under the Vocational Education Act of 1963; "(2) there is adequate provision for individual institutions or groups of institutions and for local educational agencies to appeal and obtain a hearing from the State administrative agency with respect to policies, procedures, programs, or allocation of resources under this part with which such institution or institutions or such agencies disagree. " (b) The Commissioner shall approve any administrative arrangements which meet the requirements of subsection (a), and shall not finally disapprove any such arrangements without affording the State administrative agency a reasonable opportunity for a hearing. Upon the final disapproval of any arrangement, the provisions for judicial review set forth in section 1058(b) shall be applicable. '"SEC.

82 Stat. 1064. 20 USC 1241 note

Post, p. 320.

" P L A N N I N G G R A N T S FOR STATE OCCUPATIONAL EDUCATION PROGRAMS

Post, p. 324.

"SEC. 1056. (a) Upon the application of a State Commission (established or designated pursuant to section 1202), the Commissioner shall make available to the State the amount of its allotment under section 1052 for the following purposes— " (1) to str en^ hen the State Advisory Council on Vocational Education in order that it may effecti^-ely carry out the additional functions imposed by this part; and "(2) to enable the State Commission to initiate and conduct a comprehensive program of planning for the establishment of the program authorized by this part. "(b)(1) Planning activities initiated under clause (2) of subsection (a) shall include— " (A) an assessment of the existing capabilities and facilities for the provision of postsecondary occupational education, together with existing needs and projected needs for such education in all parts of the State; " (B) thorough consideration of the most effective means of utilizing all existing institutions within the State capable of providing the kinds of programs assisted under this part, including (but not limited to) both private and public community and junior colleges, area vocational schools, accredited private proprietary institutions, technical institutes, manpower skill centers, branch institutions of State colleges or universities, and public and private colleges and universities; " (C) the development of an administrative procedure which provides reasonable promise for resolving differences between vocational educators, community and junior college educators, college and university educators, elementary and secondary educators, and other interested groups with respect to the administration of the program authorized under this part; and

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" (D) the development of a long-range stnitegy for infusing occupational education (including general orientation, counseling and guidance, and placement either in a job or in postsecondary occupational programs) into elementary and secondary schools on an equal footing with traditional academic education, to the end that every child who leaves secondary school is prepared either to enter productive employment or to undertake additional education at the postsecondary level, but without being forced prematurely to make an irrevocable commitment to a particular educational or occupational choice; and " (E) the development of procedures to insure continuous pLanning and evaluation, including the regular collection of data which would be readily available to the State administrative agency, the State Advisory Council on Vocational Education, individual educational institutions, and other interested parties (including concerned private citizens). "(2) Planning activities carried on by the State Commission under this section shall involve the active participation of— " (A) the State board for vocational education; " (B) the State agency having responsibility for community and junior colleges; " (C) the State agency having responsibility for higher education institutions or programs; " (D) the State agency responsible for administering public elementary and secondary education; " (E) the State agency responsible for programs of adult basic education; " (F) representatives of all types of institutions in the State which are conducting or which have the capability and desire to conduct programs of postsecondary occupational education; " (G) representatives of private, nonprofit elementary and secondary schools: " (H) the State employment security agency, the State agency responsible for apprenticeship programs. and other agencies within the State having responsibility for administering manpower development and training programs; " (I) the State agency responsible for economic and industrial development; " (J) persons familiar with the occupational education needs of the disadvantaged, of the handicapped, and of minority groups; and " (K) representatives of business, industry, organized labor, agriculture, and the general public. "(c) The Commissioner shall not approve any application for a grant under section 1057 of this part unless he is reasonably satisfied that the planning described in this section (whether or not assisted by a grant under this section) has been carried out. "PROGRAM GRANTS FOR STATE OCCUPATIONAL EDUCATION PR06RA3IS

"SEC. 1057. (a) From the allotments available to the States under section 1052(b) (upon application by the State administrative agency designated or established under section 1055), the Commissioner shall make grants to any State which has satisfied the requirements of section 1058. Such grants may be used for the following purposes— "(1) assist the State administrative agency designated or established under section 1055;

319

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