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 100 STAT. 1520

PUBLIC LAW 99-498—OCT. 17, 1986

"(3) changes which should be made in the operation of programs under this part to ensure that the attention of scholars is attracted to problems of critical concern to United States international relations; "(4) emerging trends within various segments (pre-college, undergraduate, graduate, and postgraduate) of the interj J <: national education community; "(5) administrative and staffing requirements of international education programs in the Department; and "(6) special needs with regard to the programs operated under part B. "(d) The Advisory Board shall advise the Secretary and the Congress on adequate budget levels for parts A and B of this title.". SEC. 614. DEFINITIONS.
 * )c

20 USC 1132.

'

Section 622 of the Act is amended— " (1) by striking out "and" at the end of paragraph (3); (2) by striking out the period at the end of paragraph (4) and inserting in lieu thereof a semicolon; and (3) by inserting at the end thereof the following: "(5) the term 'comprehensive language and area center' means an administrative unit of a university that contributes significantly to the national interest in advanced research and scholarship, employs a critical mass of scholars in diverse disciplines related to a geographic concentration, offers intensive language training in languages of its area specialization, maintains important library collections related to the area, and makes training available in language and area studies to a graduate, postgraduate, and undergraduate clientele; and "(6) the term 'undergraduate language and area center' means an administrative unit of an institution of higher education, including but not limited to 4-year colleges, that contributes significantly to the national interest through the education and training of students who matriculate into advanced language an area studies programs, professional school programs, or incorporates substantial international and foreign language content into baccalaureate degree programs, engages in research, curriculum development and community outreach activities designed to broaden international and foreign language knowledge, employs faculty with strong language, area, and international studies credentials, maintains library holdings, including basic reference works, journals, and works in translation, and makes training available predominantly to undergraduate students.". ic

TITLE VII—CONSTRUCTION AND RENOVATION

SEC. 701. REVISION OF TITLE VII.

Title VII of the Act is amended to read as follows: "TITLE VII—CONSTRUCTION, RECONSTRUCTION, AND RENOVATION OF ACADEMIC FACILITIES r-'-i-j-'f..'

20 USC ll32a.

"PURPOSES

-'?•>'"-'S '.

"SEC. 701. (a) IN GENERAL.—The Secretary shall carry out programs of financial assistance to institutions of higher education and

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to higher education building agencies for the construction, reconstruction, or renovation of academic facilities and the acquisition and maintenance of special research and instructional instrumentation and equipment if the primary purpose of such assistance is to enable such institutions— "(1) to bring their facilities into conformity with the requirements of— "(A) the Act of August 12, 1968, commonly known as the Architectural Barriers Act of 1968; "(B) section 504 of the Rehabilitation Act of 1973; "(C) environmental protection or health and safety programs mandated by Federal, State, or local law, if such requirements were not in effect at the time such facilities were constructed; or "(D) hazardous waste disposal, treatment, and storage ' "'• requirements mandated by the Resource Conservation and Recovery Act of 1976, or similar State statutes; "(2) to more efficiently use available energy resources, especially coal, solar power, and other renewable energy resources; "(3) to detect, remove, or otherwise contain asbestos hazards in academic and other facilities used by students, in accordance with regulations prescribed by the Secretary; "(4) to construct, reconstruct, or renovate the Nation's academic research and instructional instrumentation and facilities, including libraries, and to acquire and maintain special research and instructional instrumentation and equipment; "(5) to provide facilities for advanced skill training programs that relate to emerging technologies and skill needs; "(6) with unusual increases in enrollment or with significant internal programmatic enrollment shifts (according to data and criteria established by the Secretary) to construct, reconstruct, or renovate their facilities; or "(7) to preserve significant architecture. "(b) PRIORITY ON RENOVATION.—In the awarding of grants under this title, priority shall be given to projects involving the renovation of facilities.

42 USC 4151 note. 29 USC 794.

42 USC 6901 note. Energy. Asbestos. Libraries.

Historic preservation.

"APPROPRIATIONS AUTHORIZED "SEC. 702. (a) PARTS A AND B.—There are authorized to be appro-

priated— "(1) $15,000,000 for part A for fiscal year 1987, "(2) $10,000,000 for part B for such fiscal year, and "(3) such sums as may be necessary for parts A and B for each of the 4 succeeding fiscal years, except that no funds may be appropriated for parts A and B for any such fiscal year unless at least $20,000,000 is appropriated for part E of this title for such fiscal year. "(b) OTHER PROGRAMS.—There are authorized

to be appro-

priated— "(1) $25,000,000 for fiscal year 1987 and such sums as may be necessary for each of the 4 succeeding fiscal years for part C; "(2) $25,000,000 for fiscal year 1987 and such sums as may be necessary for each of the 4 succeeding fiscal years for part D; and "(3) $20,000,000 for fiscal year 1987 and such sums as may be necessary for each of the 4 succeeding fiscal years for part E.

20 USC 1132a-l.

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 100 STAT. 1522

PUBLIC LAW 99-498—OCT. 17, 1986 "PART A—GRANTS FOR THE CONSTRUCTION, RECONSTRUCTION, AND RENOVATION OF UNDERGRADUATE ACADEMIC FACILITIES "STATE PLAN

20 USC 1132b.

!

^ ' '

711. (a) SUBMISSION AND CONTENTS OF PLAN.—Any State desiring to participate in the grant program authorized by this part shall have an agreement pursuant to section 1203 and submit annually to the Secretary, through the State agency designated in such agreement, a State plan which shall— "(1) provide that the plan shall be administered by the State entity having an agreement under section 1203; "(2) set forth objective standards and methods which are consistent with basic criteria established under section 712, for— "(A) determining the relative priorities of eligible projects submitted by institutions of higher education within the State, and "(B) certifying the Federal share of the cost of each project; "(3) provide for every applicant an opportunity for a hearing before the State agency regarding the priority assigned to such ,, project, or any other decision by the State agency adversely ' affecting such applicant; and "(4) provide for accounting procedures necessary to assure proper disbursement of Federal funds. "SEC.

"(b) HEARING REQUIRED BEFORE DISAPPROVAL.—The Secretary

shall not disapprove any State plan, or modification thereof, without first affording the State agency reasonable notice and opportunity for a hearing. "(c) SUSPENSION FOR NONCOMPUANCE.—Whenever the Secretary

finds that the State plan substantially fails to comply with this section, the Secretary shall notify the State that it is ineligible to participate in the program under this part until a determination is made that there is no longer a failure to comply. BASIC CRITERIA State and local governments. Regulations. 20 USC 1132b-l.

"^

M

"SEC. 712. (a) SECRETARY To PRESCRIBE CRITERIA.—The Secretary

shall, by regulation, prescribe basic criteria for the consideration of State plans which ensure— "(1) flexibility for States to accommodate the varied needs of institutions in the States; "(2) consideration of the degree to which applicant institutions are effectively using existing facilities; and "(3) that the Federal share shall not exceed 50 percent of the development costs of a project. "(b) RULEMAKING PROCEDURES REQUIRED.—Section 553 of title 5, United States Code, shall apply to the prescription of regulations under this section. "ALLOTMENT OF FUNDS

State and local governments. Grants. 20 USC 1132b-2.

"SEC. 713. (a) USE FOR PUBLIC COMMUNITY COLLEGES AND TECHNICAL INSTITUTES; OTHERS.—From the sums appropriated pursuant

to section 702 to carry out the purposes of this part, not less than 24 percent shall be allotted to States under subsection (b) for public community colleges and public technical institutes. The remainder

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of such sums shall be allotted to States under subsection (c) for all other institutions of higher education. "(b) ALLOTMENT FOR PUBLIC COMMUNITY COLLEGES AND TECHNICAL

INSTITUTES.—(1) For the purpose of making grants to public community colleges and public technical institutes, the Secretary shall allot to each State an amount which bears the same ratio to the amount available for allotment under this subsection as the product of— "(A) the number of persons in the State who have graduated from high school or received an equivalent certificate during the previous school year, and "(B) the State's allotment ratio, bears to the sum of the corresponding products for all the States. "(2)(A) Except as provided in subparagraph (B), the allotment ratio shall be 1.00 less the product of— H.f.

"(i) 0.50, and

"(ii) the quotient obtained by dividing the income per person for the State by the income per person for all States (not including Puerto Rico, the Virgin Islands, American Samoa, the Trust Territory of the Pacific Islands, and Guam). "(B) Notwithstanding subparagraph (A)— r: "(i) the allotment ratio shall in no case be less than 0.33 1/3 or more than 0.66 2/3; t "(ii) the allotment ratio for Puerto Rico, the Virgin Islands, Puerto Rico. I American Samoa, the Trust Territory of the Pacific Islands, and Virgin Islands. American Guam shall be 0.66 2/3; and Samoa. "(iii) the allotment ratio of any State shall be 0.50 for any Trust Territory fiscal year if the Secretary finds that the cost of school construc- of the Pacific tion in such State exceeds twice the median of such costs in all Islands. the States as determined by the Secretary on the basis of Guam. statistics and data as the Secretary shall deem adequate and appropriate. "(C) Allotment ratios shall be promulgated annually by the Secretary on the basis of the average personal income in the State and in all the States for the three most recent consecutive calendar years for which data are available from the Department of Commerce. "(c) ALLOTMENT FOR OTHER INSTITUTIONS.—For the purpose of making grants to all other institutions of higher education, the Secretary shall allot to each State— "(1) an amount which bears the same ratio to 50 percent of the amount available for allotment under this subsection as the number of students enrolled in institutions of higher education in such State bears to the number of students so enrolled in all States; and "(2) an amount which bears the same ratio to 50 percent of the amount available for allotment under this subsection as the number of students enrolled in grades 9 through 12 of schools in such State bears to the total number of students so enrolled in all the States. "(d) AGGREGATE LIMITS AND RATABLE REDUCTIONS.—The aggregate

amount allotted to any State under subsections (b) and (c) for any fiscal year shall not be less than $100,000. If the sums appropriated pursuant to section 702 are not sufficient to make payments to each State, then the amount of each State's allotment shall be ratably reduced. "(e) REALLOCATION.—(1) Any portion of a State's allotment under subsections (b) and (c) for any fiscal year for which applications from

71-19A 0 -

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PUBLIC LAW 99-498—OCT. 17, 1986

qualified institutions have not been received by the State agency prior to January 1 of such fiscal year shall, by request, be available for payment of the Federal share of cost of other approved projects. "(2) Amounts allotted under this section for any fiscal year which are not used by the close of the fiscal year shall be reallotted by the Secretary among the States which are able to use the funds without delay during the next fiscal year. "(f)

s

USE FOR CONSTRUCTION, RECONSTRUCTION, RENOVATION.—

Funds available under this part may be used for construction, reconstruction, or renovation of undergraduate facilities and combined graduate and undergraduate facilities. "(g) USE FOR MAINTENANCE.—In addition, an amount less than or equal to 10 percent of that portion of an award granted under this part which is allotted by the recipient to meet costs of— "(1) research or instructional instrumentation and equipment, and "(2) equipment and structural changes necessary to ensure Jut' the proper functioning of such research or instructional instrumentation and equipment, may be allocated by the recipient for maintenance of equipment and changes described in paragraphs (1) and (2). Part or all of this percentage may also be applied to costs of upgrading such equipment and structural changes within three years of the date of initial use, if the recipient deems such upgrading essential to the continued utility (usefulness) of such research or instructional instrumentation and equipment. "PART B—GRANTS FOR CONSTRUCTION, RECONSTRUCTION, AND RENOVATION OF GRADUATE ACADEMIC FACILITIES "GRANTS

20 USC 1132c.

721. (a) GRANT TO INSTITUTIONS; STATE LIMITATION.—(1) Funds available for this part shall be used by the Secretary to make grants to graduate institutions of higher education whose applications for assistance are consistent with the objectives of this title. "(2) The total payment for any fiscal year made to institutions of higher education in any State shall not exceed 12.5 percent of sums appropriated for this part. "(b) PEER REVIEW REQUIRED.—In making grants under this section, the Secretary shall utilize a national peer review panel. The National Peer Review Panel shall be broadly representative of all types and cleisses of institutions of higher education in the United States. Such panel shall make recommendations to the Secretary based on their assessment of^ "(1) the effectiveness of the program in the proposed use of Federal assistance; and in "(2) the extent to which the receipt of the grant will assist the institution in overcoming deficiencies in existing equipment and facilities. "(c) COST LIMITATIONS.—The amount of the grant shall not exceed 50 percent of the development cost of the project. No funds or resources provided through Federal programs shall be used to meet the institution's share of the program supported under this section. "(d) USE FOR MAINTENANCE.—An amount less than or equal to 10 percent of that portion of an award granted under this part which is allotted by the recipient to meet costs of— "SEC.

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"(1) research or instructional instrumentation and equipment, and "(2) equipment and structural changes necessary to ensure the proper functioning of such research or instructional instrumentation and equipment, may be allocated by the recipient for maintenance of equipment and changes described in paragraphs (1) and (2). Part or all of this percentage may also be applied to costs of upgrading such equipment and structural changes within three years of the date of initial use, if the recipient deems such upgrading essential to the continued utility (usefulness) of such research or instructional instrumentation and equipment.

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K i tsif 7#55!

'

)

"PART C—LOANS FOR CONSTRUCTION, RECONSTRUCTION, AND RENOVATION OF ACADEMIC FACILITIES "ELIGIBILITY CONDITIONS, AMOUNTS, AND TERMS

731, (a) SELECTION OF RECIPIENTS.—From the sums available 20 USC ll32d. for this part, the Secretary shall make and insure loans to institutions of higher education and to higher education building agencies for programs consistent with the purposes of this title. No loan shall be made unless the Secretary finds that— "(1) not less than 20 percent of the development cost of the project will be financed from non-Federal sources; "(2) the applicant is unable to secure the loan from other sources upon terms and conditions equally as favorable as those applicable to loans under this part; "(3) the project will be undertaken in an economical manner; and "(4) for any project with regard to an infirmary or other outpatient care facility for students and institutional personnel, gissistance will not be provided under part F of this title. "(b) TERMS OF LOANS.—Loans shall be repaid within 50 years and 'shall bear interest at (1) a rate annually determined by the Sec^ retary which shall be not more than 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 1 percent, or (2) the rate of 5.5 percent per year, whichever is less. ^ i^u i. "(c) USE FOR MAINTENANCE.—An amount less than or equal to 10 percent of that portion of a loan granted under this part which is allotted by the recipient to meet costs of— "(1) research or instructional instrumentation and equipment, and "(2) equipment and structural changes necessary to ensure the proper functioning of such research or instructional instrumentation and equipment, may be allocated by the recipient for maintenance of equipment and changes described in paragraphs (1) and (2). Part or all of this percentage may also be applied to costs of upgrading such equipment and structural changes within three years of the date of initial use, if the recipient deems such upgrading essential to the continued utility (usefulness) of such research or instructional instrumentation and equipment. "SEC.

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 100 STAT. 1526 '

20 USC ii32d-i.

PUBLIC LAW 99-498—OCT. 17, 1986 '- '

'*

GENERAL PROVISIONS FOR LOAN PROGRAM

"SEC. 732. (a) CONCLUSIVENESS OF SECRETARY'S TRANSACTIONS.—

Financial transactions of the Secretary, 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) GENERAL AUTHORITY.—In the performance of, and with respect to, the functions vested in the Secretary by this part, the Secretary may— Regulations. "(1) prescribe such rules and regulations as may be necessary to carry out the purposes of this part; Courts, U.S. "(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 Secretary shall survive notwithstanding any change in the person occupying the office of the Secretary or any - ' ly. vacancy in such office; but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Secretary 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) foreclose on any property and bid for and purchase at any foreclosure, or any other sale, any property in connection with which the Secretary has made a loan pursuant to this part; in the event of such an acquisition, notwithstanding any other provisions of law relating to the acquisition, handling, or disposal of real property by the United States, the Secretary may complete, administer, remodel and convert, dispose of, lease, and otherwise deal with, such property; except that (A) such action shall not preclude any other action by the Secretary to State and local recover any deficiency in the amounts loaned, and (B) any such governments. 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, exchange, or lease real or personal property and securities or obligations; Contracts. "(5) modify, with respect to the rate of interest, the time of. payment of principal, interest, security, or any other term of ^ any contract or agreement to which the Secretary is a party, including— "(A) granting a moratorium on the repayment of principal or interest to a party temporarily unable to make such repayment without undue financial hardship provided the
 * .;f
 * 'M}k.<

applicant files, and the Secretary approves, a plan to make repayment; and "(B) granting to a borrower of a loan made before October 1, 1986, the option of repaying the loan at a discount computed in accordance with subsection (c) if the Secretary has received satisfactory assurances that the facilities financed with the loan will continue to be used for purposes related to the educational institution for the original term of the loan, and the prepayment is (i) made from non-Federal sources, (ii) not derived from proceeds of obliga-

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100 STAT. 1527

tions the income of which is exempt from taxation under the Internal Revenue Code of 1954, (iii) made on a loan that 26 USC l et seq. has been outstanding for at least 5 years, and (iv) is made prior to October 1, 1991; and "(6) include in any contract such other covenants, conditions. Contracts. '• or provisions necessary to ensure that the purposes of this title will be achieved. "(c) COMPUTATION OF ALLOWABLE DISCOUNTS.—The Secretary shall compute the discount which may be offered to a borrower as an inducement to early repayment under subsection (b)(5) in an amount determined by the Secretary to be in the best financial interests of the Government, taking into account the yield on outstanding marketable obligations of the United States having maturities comparable to the remaining term of such loan. "(d) NONDISCRIMINATION BETWEEN BORROWERS IN OFFERING DISCOUNTED PREPAYMENT.—(1) If the Secretary offers a discount as an

inducement to early repayment under subsection (b)(5), such offer shall be available without regard to whether the borrower is delinquent or in default on the loan on or before October 1, 1986, but the Secretary shall refuse to make such offer to a borrower that becomes delinquent or goes into default after that date. "(2) The discount offered shall apply, in the case of a borrower that complies with paragraph (1), to the entire amount outstanding on the loan (including any amount owed with respect to payments that are overdue). REVOLVING LOAN AND INSURANCE FUND

"SEC. 733. (a) ESTABLISHMENT.—There is created within the Treas- 20 USC ll32d-2. ury a revolving loan fund for the purpose of making and insuring loans under this part (hereafter referred to as the 'fund') which shall be available to the Secretary without fiscal year limitation. The total of any loans made from the fund in any fiscal year shall not exceed limitations specified in appropriations Acts. "(b) MANAGEMENT OF FUND.—(1) The Secretary shall transfer to the fund appropriations provided under section 702 to provide capital for making loans. Interest and principal payments on loans, and any other moneys, property, or assets derived from activities under this part shall be deposited in the fund. "(2) All loans, expenses, and payments pursuant to operation of this part shall be paid from the fund, including expenses and payments in connection with sale, pursuant to section 302(c) of the Federal National Mortgage Association Charter Act, of participa- 12 USC 1717. tions in obligations acquired under this part. At the close of each fiscal year, the Secretary shall pay interest on the cumulative amount of funds paid out for loans under this part less the average undisbursed cash balance in the fund during the year. The interest rate shall be determined by the Secretary of the Treasury, taking into consideration the average market yield on outstanding Treasury obligations of maturity comparable to the average maturity of loans made from the fund during the month preceding each fiscal year. Interest payments may be deferred with the approval of the Secretary of the Treasury, but interest payments so deferred shall themselves bear interest. If the Secretary determines that moneys in the fund exceed the present and prospective needs of the fund, the excess may be transferred to the general fund of the Treasury.

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100 STAT. 1528 ...

 * j

1

'PART D—GRANTS TO PAY INTEREST ON DEBT ''

20 USC li32e.

5?-r£8ii i u

',

" A N N U A L INTEREST GRANTS

> ••'<•'•• ^f;.'

"SEC. 741. (a) GRANT AUTHORITY.—To assist institutions of higher education and higher education building agencies in reducing the cost of borrowing from other sources for projects under this part, the Secretary may make annual interest grants to such institutions and agencies with respect to any project made over a fixed period not exceeding 40 years, and provision for the grants shall be embodied in the contract guaranteeing their payment. Grants shall not be 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 or agency would have been required to pay during the life of the loan if the applicable interest rate had been determined by the Secretary in accordance with section 731(b). "flb) LIMITS ON GRANTS.—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 for such year under this section shall not exceed $13,500,000. "(c) STATE ALLOCATION LIMITS.—The total payment for any fiscal year made to institutions of higher education and higher education building agencies in any State shall not exceed 12.5 percent of sums appropriated for this section. "(d) REQUIREMENTS FOR GRANTS.—No annual interest grant shall ^® made unless (1) assurance is provided that not less than 10 percent of the costs of the project will be financed from non-Federal sources, (2) the applicant is unable to secure a loan from other sources upon terms and conditions as favorable as those applicable to loans under this title, and (3) the project will be undertaken in an economical manner. Loans for which an interest grant is made shall, for purposes of this section only, not be considered financing from a non-Federal source. "PART E—COLLEGE CONSTRUCTION LOAN INSURANCE ASSOCIATION, k

20 USC ii32f.

"CONGRESSIONAL DECLARATION OF PURPOSE; DEFINITION; .>

INCORPORATION

i

"SEC. 751. (a) PURPOSE.—The Congress hereby declares that it is the purpose of this part to authorize participation of the United States Government and the Student Loan Marketing Association in a private, for profit corporation to be known as the College Construction Loan Insurance Association (hereinafter referred to as the 'Corporation') which will, directly or indirectly, alone or in collaboration with others— "(1) guarantee, insure, and reinsure bonds, debentures, notes, evidences of debt, loans, and interests therein, the proceeds of which are to be used for an education facilities purpose; • "(2) guarantee and insure leases of personal, real, or mixed ' property to be used for an education facilities purpose; and "(3) issue letters of credit and undertake obligations and commitments as the Corporation deems necessary to carry out the purposes described in paragraphs (1) and (2).

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100 STAT. 1529

"(b) STATUS AS NON-GOVERNMENTAL ENTITY.—The Corporation shall not be an agency, instrumentality, or establishment of the United States Government and shall not be a 'Government corporation' nor a 'Government controlled corporation' as defined in section 103 of title 5, United States Code. No action under section 1491 of title 28, United States Code (commonly known as the Tucker Act) shall be allowable against the United States based on the actions of the Corporation. "(c) CORPORATE POWERS AND LIMITATIONS.—The Corporation shall be subject to the provisions of this part and, to the extent not inconsistent with this part, to the District of Columbia Business Corporation Act. The business activities of the Corporation shall 68 Stat. 177. always be limited to the purposes set forth in subsection (a) of this section. It shall have the powers conferred upon a corporation by the District of Columbia Business Corporation Act as from time to time in effect in order to conduct its corporate affairs and to carry out its purposes and activities incidental thereto. "(d) DEFINITION OF E D U C A T I O N FACILITIES P U R P O S E. — A s used in ,4« qieLCi this section, an 'education facilities purpose' includes any activity (including activities related to the payment of financing or transaction costs) relating to the construction, reconstruction, renovation, acquisition, or purchase of (1) education, training, or research facilities or housing for students, faculty, or staff, (2) any underlying real property or any interest therein, (3) furniture, fixtures, and equipment to be used in connection with any education or training facility or housing for students, faculty, or staff, and (4) instructional equipment and research instrumentation including site preparation for such equipment and instrumentation. "CRITERIA FOR GUARANTEES AND INSURANCE
 * '-•< r: >;

752. (a) GENERAL RULE.—The Corporation shall provide 20 USC ii32f-i. direct insurance, guarantees, and reinsurance on obligations issued for education facilities purposes only in accordance with the requirements of this section. "SEC.

"(b) ALLOCATION OF REINSURANCE CAPACITY.—

"(1) At least the percentages specified in paragraph (2) of the aggregate dollar amount of bond and debenture issues reinsured by the Corporation shall be issues which, without insurance, are listed by a nationally recognized statistical rating organization at a rating below the third highest rating of such organization. "(2) For the purpose of paragraph (1) of this subsection, the percentages specified in this paragraph shall be— "(A) 10 percent for the first full year of operation of the Corporation; "(B) 30 percent for the second full year of such operation; and "(C) 50 percent for the third full year of such operation and thereafter. "(3) No bond or debenture issue which is both reinsured and directly insured by the Corporation may be counted toward the fulfillment of the requirements of paragraph (1). "(c) DIRECT INSURANCE AND GUARANTEE ACTIVITIES; LIMITATIONS.—

"(1) All of the assets and obligations directly covered by primary insurance or guarantees issued by the Corporation shall be assets or obligations of institutions which are, without

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 100 STAT. 1530

PUBLIC LAW 99-498—OCT. 17, 1986

insurance or guarantee, listed by a nationally recognized statistical rating organization at a rating below the third highest rating of such organization. "(2) At least the percentages specified in paragraph (3) of the aggregate dollar amount of the assets and obligations reinsured, insured, and guaranteed by the Corporation under this section shall be in the direct insurance and guarantee activities specified in this subsection. "(3) For the purpose of paragraph (2) of this paragraph, the percentages specified in this paragraph shall be— "(A) 10 percent for the first full year of operation of the Corporation; 'I.1B*S ^^ "(B) 30 percent for the second full year of such operation; and "(C) 50 percent for the third full year of such operation 81 i and thereafter. Securities. "(4) For the purpose of paragraph (1), the assets and obligaReal property. tions which may be directly covered by primary insurance or guarantees issued by the Corporation are— "(A) bonds, debentures, notes, evidences of debt, loans, and interests therein, the proceeds of which are to be used for an education facilities purpose; and "(B) leases of personal, real, or mixed property to be used for an education facilities purpose. "(d) NOTICE OF SERVICES.—The Corporation shall take such steps as may be necessary to publicize the availability of its insurance and reinsurance programs under this section in a manner that assures that information concerning such programs will be available to each eligible institution. "(e) NONDISCRIMINATION REQUIRED.— oau fti

20 USC 1681.

'

^ Tr-H*-

"(1) The Corporation may not carry out any activities with respect to any educational facilities purpose of a participating institution if the institution discriminates on account of race, color, religion (subject to paragraph (2)), national origin, sex (to the extent provided in title IX of the Education Amendments of 1972), or handicapping condition. "(2) The prohibition with respect to religion shall not apply to an educational institution which is controlled by or which is closely identified with the tenets of a particular religious organization if the application of this section would not be consistent with the religious tenets of such organization. "(3) Each participating institution shall certify to the Corporation that the institution does not discriminate as required by the provisions of paragraph (1). PROCESS OF ORGANIZATION

20 USC ii32f-2.

"SEC. 753. The Secretary of the Treasury, the Secretary, and the Student Loan Marketing Association shall each appoint 2 persons to be incorporators of the Corporation. If either the Secretary of the Treasury or the Secretary fail to appoint incorporators within 90 days after the date of enactment of the Higher Education Amendments of 1986, the Student Loan Marketing Association, after consultation with the Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives, shall have the authority to name the incorporators which have not been so appointed. The incorporators so appointed

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100 STAT. 1531

shall each sign the articles of incorporation and shall serve as the initial Board of Directors until the members of the first regular Board of Directors shall have been appointed and elected. Such incorporators shall take whatever actions are necessary or appropriate to establish the Corporation, including the filing of articles of incorporation. OPERATION AND ELECTION OF BOARD OF DIRECTORS

"SEC. 754. (a) IN GENERAL.—The Corporation shall have a Board of 20 USC ll32f-3. Directors which shall consist of 11 members, of whom one shall be elected annually by the Board to serve as chairman. Directors shall ^ ^" " serve for terms of one year or until their successors have been appointed and qualified, and any member so appointed to fill a vacancy shall be appointed only for the unexpired term of the Director whom he succeeds. Two Directors shall be appointed by the Secretary of the Treasury; 2 Directors shall be appointed by the Secretary; 3 Directors shall be appointed by the Student Loan Marketing Association; and the remaining 4 Directors shall be elected by the holders of the Corporation's voting common stock at least one of whom shall be a college or university administrator. The failure of the Secretary or the Secretary of the Treasury to make any one or more appointments to the Board of Directors of the " li..'ri oan c); Corporation shall not affect or diminish the right and power of (1) the other directors who have been appointed or elected to assume and carry out their duties as directors and (2) the Board so constituted to act for all purposes as the full Board of the Corporation. "(b) CUMULATIVE VOTING.—The articles of incorporation of the

Corporation shall provide for cumulative voting under section 27(d) of the District of Columbia Business Corporation Act (D.C. Code, sec. 29-327(d)). INITIAL CAPITAL

755. (a) AUTHORITY TO ISSUE COMMON STOCK.—The Corpora- 20 USC li32f-4. tion shall issue shares of voting common stock of no par value at such time within 6 months of its incorporation as shall be designated by the initial Board of Directors, and from time to time thereafter. "(h) SUBSCRIPTION BY SECRETARY.—The Secretary is authorized and directed to subscribe to and purchase, in each of the 5 years following the incorporation of the Corporation, voting common stock of the Corporation having an aggregate purchase price of not more than $20,000,000, subject to availability of appropriations. "(c) SUBSCRIPTION BY ASSOCIATION.—The Student Loan Marketing Association is authorized to subscribe to and purchase during the 5 years following the incorporation of the Corporation voting common stock of the Corporation having an aggregate purchase price of $25,000,000 or more. "(d) ANNUAL ISSUANCE.—The Corporation is authorized to offer for subscription and purcheise to the general public during the 5 years following the incorporation of the Corporation, voting common stock having an aggregate purchase price of $125,000,000. Not less than 40 percent of such stock shall be set aside for purchase by institutions of higher education prior to being offered to the general public. "SEC.

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Page:United States Statutes at Large Volume 100 Part 2.djvu/430

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1532 '"^ft?

20 USC 1132f-5.

ISSUE OF NONVOTING STOCK A N D DEBT TO THE PUBLIC

j

'ttdB

"SEC. 756. The Corporation may issue, without limitation as to amount or restriction as to ownership, such nonvoting common, preferred, and preference stock, debt, and such other securities and obligations, in such amounts, at such times, and having such terms and conditions as may be deemed necessary or appropriate by its Board of Directors. OBLIGATIONS NOT FEDERALLY GUARANTEED; NO FEDERAL PRIORITY

20 USC 1132f-6.

"SEC. 757. No obligation which is insured, guaranteed, or otherwise backed by the Corporation, shall be deemed to be an obligation which is guaranteed by the full faith and credit of the United States. No obligation which is insured, guaranteed, or otherwise backed by the Corporation shall be deemed to be an obligation which is guaranteed by the Student Loan Marketing Association. This section shall not affect the determination of whether such obligation is guaranteed for purposes of Federal income taxes. "AUTHORITY OF SECRETARY TO SELL COMMON STOCK; RIGHT OF FIRST REFUSAL

20 USC 1132f-7.

.i'-iSI,

"SEC.

758.

(a) AUTHORITY To

SELL.—The Secretary may,

at

any

time after a date which is 5 years after the date of incorporation of the Corporation, sell (in one or more transactions) the voting common stock of the Corporation owned by the Secretary. Prior to offering such common stock for sale to any other person, the Secretary shall offer such stock to the Student Loan Marketing Association at the price determined pursuant to subsection (b). Not later than 30 days prior to the sale of such stock, the Secretary shall advise, in writing, the Committee on Labor and Human Resources of the Senate and the Committee on Education and Labor of the House of Representatives of plans of the Secretary. "(b) PURCHASE PRICE.—The price at which the Secretary may sell the voting common stock of the Corporation under subsection (a) shall be the market value of such shares as determined by the Secretary, on the basis of an independent appraisal, but shall not be less than the value of such shares as shown on the books of account of the Corporation as of the date of closing of such purchase. In no event shall the purchase price be less than the original issuance price. "(c) BOARD OF DIRECTORS ELECTED AFTER MAJORITY BUY-OUT.—If

the Student Loan Marketing Association acquires from the Secretary sufficient voting common stock so as to own more than 50 percent of the issued and outstanding voting common stock of the Corporation, section 754 (except subsection (b)) shall be of no further force or effect and the Board of Directors of the Corporation shall thereafter be elected entirely by the voting common shareholders. "(d) RIGHT OF FIRST REFUSAL TO ASSOCIATION.—Until such time as the Student Loan Marketing Association acquires all of the voting common stock owned by the Secretary, the Student Loan Marketing Association shall have the right to purchase all, or any lesser portion it shall select, of each of the issues of equity securities or other securities convertible into equity of the Corporation as the Corporation may issue from time to time, on the same terms and conditions as such securities are to be offered to other persons.

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Page:U.S. Department of the Interior Annual Report 1880.djvu/66

64 reservation, and for the maintenance of free baths for the invalid poor of the United States.

By the provisions of this act the appraised valuation of awarded lands was reduced from $224,819 to $89,927.60, a reduction of $134,891.40.

The appraised valuation of the unawarded lands was $105,499. As the mountains reserved from sale by the act of June 16, 1880, were appraised at $62,200, the available aggregate of unawarded lands amounts to $43,299. The total valuation of awarded and unawarded lands, exclusive of the mountain reservations, is $133,226.60. As certificates for condemned buildings, amounting to $52,696, are receivable as money for payment of these lots, the cash returns, if all lots are sold at their present appraised valuation, will be $80,530.60.

The appropriation for salaries and other expenses of the Hot Springs Commission amounted to $82,000.

The dates and amounts of the separate appropriations were as follows: May 26, 1877, $27,500; December 22, 1877, $15,000; March 10, 1879, $12,000 (deficiency); March 10, 1879, $27,500.

The amount of money received from the rental of waters during the year ending June 30, 1880, was $2,774.03; expenditures during same period, $2,550.

The flow of hot water having been found insufficient to supply the daily demands made upon it during the few hours devoted to bathing, a reservoir has recently been constructed to store sufficient water to accommodate all the bath-houses now in operation or likely to be established for some years to come. It is a substantial structure, built of brick, and cost $3,034.86.

The building of the Utah and Northern Railroad has made the Yellowstone National Park more accessible; and it may be assumed that the number of visitors would now rapidly increase if the park itself were provided with facilities of travel. The original intention of Congress in reserving that interesting region from sale or other disposal was undoubtedly that it should become a popular place of resort by the people of the United States. This was a wise measure; but a personal inspection convinced me that very much remains to be done to give that measure the desired effect. The Yellowstone Park covers an area of over 3,000 square miles. Its western part contains the largest known geysers in the world, far grander than those of Iceland, California, New Zealand, and Formosa; and hot springs of signal beauty and remarkable mineral properties. It is in this respect certainly the most interesting region on this continent, and, perhaps, on the face of the earth; and the medicinal qualities of its waters, so far only in part analyzed and ascertained, may render it one of the most important restorative resorts for the afflicted. At the same time, it presents mountain scenery of peculiar beauty, north, west, and south of Yellowstone Lake; while the


text:
Page:United States Statutes at Large Volume 100 Part 2.djvu/431

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1533

"(e) AUTHORITY OF ASSOCIATION WITH RESPECT TO CORPORATION.—

The Student Loan Marketing Association is authorized and empowered to purchase stock and to carry out such other activities as are necessary and appropriate for carrying out the Association's obligations and responsibilities with respect to the Corporation. The Student Loan Marketing Association is also authorized to enter into such other transactions with the Corporation, including the acquisition of securities and obligations of the Corporation referred to in this section and sections 755 and 756, and arrangements for the provision of management and other services to the Corporation, as shall be approved by the Student Loan Marketing Association and the Corporation. "USE OF STOCK SALE PROCEEDS

"SEC. 759. The proceeds received by the Secretary upon the sale of any shares of the Corporation to the Student Loan Marketing Association or any other person shall be deposited in the general fund of the Treasury.

20 USC 1132f-8.

"AUDITS; REPORTS TO THE PRESIDENT AND THE CONGRESS

"SEC. 760. (a) ACCOUNTING.—The books of account of the Corporation shall be maintained in accordance with generally accepted accounting principles and shall be subject to an annual audit by an independent public accountant. "(b) REPORTS.—The Corporation shall transmit to the President and the Congress, annually and at such other times as it deems desirable, a report of its operations and activities under this part, which annual report shall include a copy of the Corporation's financial statements and the opinion with respect thereto prepared by the independent public accountant reviewing such statements and a copy of any report made on an audit conducted under subsection (a). "The annual reports shall include such information and other evidence as is necessary to demonstrate that the Corporation has complied with the requirements of section 752.

20 USC 1132f-9.

"PART F—HOUSING AND OTHER EDUCATIONAL FACILITIES LOANS FEDERAL ASSISTANCE IN THE FORM OF LOANS

761. (a) AUTHORITY AND CONDITIONS FOR LOANS.—To assist 20 USC 1132g. undergraduate postsecondary educational institutions in the construction, reconstruction, or renovation of housing, undergraduate academic facilities, and other educational facilities for students and faculties, the Secretary may make loans of funds to such institutions for the construction, reconstruction, or renovation of such facilities. No such assistance shall be provided unless— "(1) the educational institution involved is unable to secure the necessary funds for the construction or purchase from other sources upon terms and conditions equally as favorable as the terms and conditions applicable to loans under this title; and "(2) the Secretary finds that any such construction will be undertaken in an economical manner, and that any such facilities are not or will not be of elaborate or extravagant design or materials. "SEC.

"(b)

U S E OF LOANS FOR PREVIOUSLY MADE CONTRACTS.—Any

undergraduate postsecondary educational institution which, prior to

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Page:United States Statutes at Large Volume 100 Part 2.djvu/432

 100 STAT. 1534

.H-1gfcft OBt! 0

Post, p. 1545.

Contracts.

Securities. 31 USC 3101 et seq.

PUBLIC LAW 99-498—OCT. 17, 1986

the date of enactment of this section, has contracted for housing or other educational facilities may, in connection therewith, receive loans authorized under this title, as the Secretary may determine. No such loan shall be made for any housing or other educational facilities, the construction of which was begun prior to the effective date of this section, or completed prior to the filing of an application under this title. "(c) AMOUNT AND CONDITIONS OF LOANS.—A loan to an undergraduate postsecondary educational institution— "(1) may be in an amount not exceeding the total development cost of the facility, as determined by the Secretary; "(2) shall be secured in such manner and be repaid within such period, not exceeding 50 years, as may be determined by the Secretary; and "(3) shall bear interest at a rate determined by the Secretary which shall be not more than the lower of (A) 5.5 percent per annum, or (B) the total of one-quarter of 1 percent per annum added to the rate of interest paid by the Secretary on funds obtained from the Secretary of the Treasury as provided in subsection (d). "(d) USE OF FUNDS FROM TITLE IV OF THE HOUSING ACT OF 1950.— Funds obtained pursuant to section 401(d) of the Housing Act of 1950 shall be available for the purposes of carrying out this part. For such purposes, the total amount of notes and obligations which the Secretary may continue to issue and have outstanding for purchase by the Secretary of the Treasury shall not exceed the amount issued and outstanding under such section 401(d) as of September 30, 1985. Such notes and other obligations shall be in such forms and denominations, have such maturities, and be subject to such terms and conditions as may be prescribed by the Secretary, with the approval of the Secretary of the Treasury. Such notes or other obligations issued to obtain funds for loan contracts entered into after the effective date of the Higher Education Act Amendments of 1986 shall bear interest at a rate determined by the Secretary of the Treasury which shall not be more than the average current yield on outstanding obligations of the United States of comparable maturities in the month preceding the month in which the contract for such loan is made. The Secretary of the Treasury is authorized and directed to purchase any notes and other obligations of the Secretary issued under this part and for such purpose is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under such chapter are extended to include any purchases of such notes and other obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired under this part. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. "(e) USE OF FUNDS.—Not less than 10 percent of the funds held by the Secretary under subsection (d) shall be made available for loans under this part for each fiscal year. "(1) APPROPRIATION TO COVER NOTES AND OBLIGATIONS NOT COVERED B LOAN REPAYMENT.—There are authorized to be approY

priated to the Secretary such sums as may be necessary, together with principal and interest payments made by postsecondary educational institutions gissisted with loans made under this part (or

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Page:United States Statutes at Large Volume 100 Part 2.djvu/433

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1535

under title IV of the Housing Act of 1950), for payment on notes and Post, p. 1545. obligations issued by the Secretary under this part or such title. GENERAL PROVISIONS "SEC. 762. (a) BUDGET AND ACCOUNTING.—In the performance of,

and with respect to, the functions, powers, and duties under this part, the Secretary notwithstanding the provisions of any other law, shall— "(1) prepare annually and submit a budget program as provided for wholly owned Government corporations by chapter 91 of title 31, United States Code; and "(2) maintain a set of accounts which shall be audited by the Comptroller General in accordance with the provisions of chapter 35 of title 31, United States Code, but such financial transactions of the Secretary, as the making of loans and vouchers approved by the Secretary, in connection with such financial transactions shall be final and conclusive upon all officers of the Government. "(b) USE OF FUNDS.—Funds made available to the Secretary pursuant to the provisions of this part shall be deposited in a checking account or accounts with the Treasurer of the United States. Receipts and assets obtained or held by the Secretary in connection with the performance of functions under this part, and all funds available for carrying out the functions of the Secretary under this part (including appropriations therefore, which are hereby authorized), shall be available, in such amounts as may from year to year be authorized by the Congress, for the administrative expenses of the Secretary in connection with the performance of such functions. "(c) LEGAL POWERS.—In the performance of, and with respect to, the functions, powers, and duties under this part, the Secretary, notwithstanding the provisions of any other law, may— "(1) prescribe such rules and regulations as may be necessary to carry out the purposes for this part; "(2) sue and be sued; "(3) foreclose on any property or commence any action to protect or enforce any right conferred upon him by any law, contract, or other agreement, and bid for and purchase at any foreclosure or any other sale any property in connection with which the Secretary has made a loan pursuant to this part; "(4) in the event of any such acquisition, notwithstanding any other provision of law relating to the acquisition, handling, or disposal of real property by the United States, complete, administer, remodel and convert, dispose of, lease, and otherwise deal with, such property, but 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; "(5) 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 the Secretary may fix; "(6) obtain insurance against loss in connection with property and other assets held; "(7) subject to the specific limitations in this part, consent to the modification, with respect to the rate of interest, time of

20 USC ii32g-i. ^ ^ 0-:i'j it > 3i use 9101 et ««93i use 3501 et s«9-

Real property,

,,,^-..., - '' < ^ j^^

insurance. contracts.

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Page:United States Statutes at Large Volume 100 Part 2.djvu/434

 100 STAT. 1536

PUBLIC LAW 99-498—OCT. 17, 1986

>, I payment of any installment of principal or interest, security, or .'pj any other term of any contract or agreement to which the Secretary is a party or which has been transferred to the Secretary pursuant to this part, granting to a borrower of a loan made before October 1, 1986, the option of repaying the loan at a discount computed in accordance with subsection (d) if the i)& .f--<: repayment is (A) made from non-Federal sources, (B) not derived from proceeds of obligations the income of which is 26 USC 1 et seq. exempt from taxation under the Internal Revenue Code of 1954, and (C) made on a loan that has been outstanding for at least 5 years; and Contracts.^' "(8) include in any contract or instrument made pursuant to be necessary to assure that the purposes of this part will be achieved. "(d)
 * H-i^ this title such other covenants, conditions, or provisions as may

COMPUTATION OF ALLOWABLE DISCOUNTS.—The Secretary

shall compute the discount which may be offered to a borrower as an inducement to early repayment under subsection (c)(7) in an amount determined by the Secretary to be in the best financial interests of the Government, taking into account the yield on outstanding marketable obligations of the United States having maturities comparable to the remaining term of such loan. "(e) NONDISCRIMINATION BETWEEN BORROWERS IN OFFERING DISCOUNTED PREPAYMENT.—(1) If the Secretary offers a discount as an

inducement to early repayment under subsection (c)(7), such offer shall be available without regard to whether the borrower is delinquent or in default on the loan on or before October 1, 1986, but the Secretary shall refuse to make such offer to a borrower that becomes delinquent or goes into default after that date. "(2) The discount offered shall apply, in the case of a borrower that complies with paragraph (1), to the entire amount outstanding on the loan (including any amount owed with respect to payments that are overdue). "(f) CONTRACTS FOR SUPPUES OR SERVICES.—Section 3709 of the Revised Statutes shall not apply to any contract for services or supplies on account of any property acquired pursuant to this part if the amount of such contract does not exceed $1,000. "(g) APPLICABILITY OF GOVERNMENT CORPORATION CONTROL ACT.—

31 USC 9101 et seq.

12 USC 1701k note.

40 USC 276a note.

.itosiiiK

The provisions of section 9107(a) of title 31, United States Code, which are applicable to corporations or agencies subject to chapter 91 of such title, shall also be applicable to the activities of the Secretary under this part. "(h) WAGE RATES.—The Secretary shall take such action as may be necessary to ensure that all laborers and mechanics employed by contractors or subcontractors or any project assisted under this part, the construction or rehabilitation of which was commenced after the date of enactment of the Housing Act of 1950— "(1) shall be paid wages at rates not less than those prevailing ^ on the same type of work on similar construction in the immediate locality as determined by the Secretary of Labor in accordance with the Act of March 3, 1931 (Davis-Bacon Act), as amended; and "(2) shall be employed not more than 40 hours in any one week unless the employee receives wages for his emplojmtient in excess of the hours specified above at a rate not less than one 5 and one-half times the regular rate at which he is employed;

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Page:United States Statutes at Large Volume 100 Part 2.djvu/435

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1537

but the Secretary may waive the application of this subsection in cases or classes of cases where laborers or mechanics, not otherwise employed at any time in the construction of such project, voluntarily donate their services without full compensation for the purpose of lowering the costs of construction and the Secretary determines that any amounts saved thereby are fully credited to the educational institution undertaking the construction. "(i) LIMITATION.—No loan may be made under this part for any facility on the campus of any undergraduate postsecondary educational institution until 10 years after the date on which a previous loan for another facility on such campus was made under this part. "APPORTIONMENT; PRIORITIES

"SEC. 763. (a) APPORTIONMENT.—Not more than 12.5 percent of the amount of the funds provided for in this part in the form of loans shall be made available to educational institutions within any one State.

20 USC ii32g-2. .-•>,'! eiYj

"(b) PRIORITIES.—In awarding loans under this part, the Secretary shall give priority— "(1) to loans for renovation or reconstruction of undergraduate academic facilities; and .,. "(2) to loans for renovation or reconstruction of older undergraduate academic facilities and undergraduate academic facilities that have gone without major renovation or reconstruction for an extended period. "DEFINITIONS

"SEC. 764. For the purpose of this part: "(a) HOUSING.—The term 'housing' means— "(1) new or existing structures suitable for dwelling use, including single-room dormitories and apartments; and "(2) dwelling facilities provided for rehabilitation, alteration, conversion, or improvement of existing structures which are otherwise inadequate for the proposed dwelling use. "(b) EDUCATIONAL INSTITUTION.—The term 'undergraduate postsecondary educational institution' means— "(1)(A) any educational institution which offers, or provides satisfactory assurance to the Secretary that it will offer within a reasonable time after completion of a facility for which assistance is requested under this part, at least a 2-year program -;.^, acceptable for full credit toward a baccalaureate degree (including any public educational institution, or any private educational institution no part of the net earnings of which inures to the benefit of any private shareholder or individual); or "(B) any public educational institution which— "(i) is administered by a college or university which is accredited by a nationally recognized accrediting agency or association; "(ii) offers technical or vocational instruction; and "(iii) provides residential facilities for some or all of the students receiving such instruction; "(2) any hospital operating a school of n u r s i n g beyond the level of high school approved by the appropriate State authority, or any hospital approved for internships, by recognized authority, if such hospital is either a public hospital or a private

20 USC ii32g-3.

>, -y )i f

- ui>H
 * >p'«sq

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Page:United States Statutes at Large Volume 100 Part 2.djvu/436

 100 STAT. 1538 f »' V k J: lpi

PUBLIC LAW 99-498—OCT. 17, 1986

hospital, no part of the net earnings of which inures to the benefit of any private shareholder or individual; "(3) any corporation (no part of the net earnings of which inures to the benefit of any private shareholder or individual)— "(A) established for the sole purpose of providing housing or other educational facilities for students or students and faculty of one or more institutions included in paragraph (1) V without regard to their membership in or affiliation with 1 any social, fraternal, or honorary society or organization; and "(B) upon dissolution of which all title to any property purchased or built from the proceeds of any loan which is made under section 761, will pass to such institution (or to anyone or more of such institutions) unless it is shown to -1^''' 0J m:?t' ic the satisfaction of the Secretary that such property or the " J proceeds from its sale will be used for some other nonprofit s educational purpose; Grants. "(4) any agency, public authority, or other instrumentality of V any State, established for the purpose of providing or financing housing or other educational facilities for students or faculty of ' any educational institution included in paragraph (1), but nothing in this paragraph shall require an institution included in paragraph (1) to obtain loans or grants through any instrumen-i tality included in this paragraph; and f"(5) any nonprofit student housing cooperative corporation established for the purpose of providing housing for students or students and faculty of any institution included in paragraph (1). In the case of any loan made under section 761 to a corporation «-gS fi 08"' rti described in paragraph (3) which was not established by the institution or institutions for whose students or students and faculty it would provide housing, or to a student housing cooperative corporation described in paragraph (5), and in the case of any loan which is obtained from other sources by such a corporation, the Secretary shall require that the note securing such loan be cosigned by such State and local institution (or by any one or more of such institutions). Where the governments. law of any State in effect on the date of enactment of the Housing 12 USC 1703 Act of 1964 prevents the institution or institutions, for whose stunote. dents or students and faculty housing is to be provided, from cosigning the note, the Secretary shall require the corporation and the proposed project to be approved by such institution (or by any one or more of such institutions) in lieu of such cosigning. "(c) UNDERGRADUATE ACADEMIC FACILITIES.—(1) Except as provided in paragraph (2), the term 'undergraduate academic facilities' means structures suitable for use as classrooms, laboratories, libraries, and related facilities, the primary purpose of which is the instruction of students pursuing a baccalaureate degree, or for administration of the educational programs serving such students, of an institution of higher education, and maintenance, storage, or utility facilities essential to operation of the foregoing facilities, as well as infirmaries or other facilities designed to provide primarily Handicapped for outpatient care of student and instructional personnel. Plans for persons. such facilities shall be in compliance with such standards as the Secretary may prescribe or approve in order to insure that projects assisted 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.

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Page:United States Statutes at Large Volume 100 Part 2.djvu/437

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1539

"(2) The term 'undergraduate academic facilities' shall not include (A) any facility intended primarily for events for which admission is to be charged to the general public, (B) any gymnasium or other facility specially designed for athletic or recreational activities, other than for an academic course in physical education or where the Secretary finds that the physical integration of such facilities with other undergraduate academic facilities included under this part is required to carry out the objectives of this part, (C) any facility used or to be used for sectarian instruction or as a place for religious worship, or (D) any facility which (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. "(d) DEVELOPMENT COST.—The term 'development cost' means costs of the construction of the housing or other educational facilities and the land on which it is located, including necessary site improvements to permit its use for housing or other educational facilities; except that in the case of the purchase of facilities such term means the cost as approved by the Secretary. "(e) FACULTIES.—The term 'faculties' means member of the faculty and their families. "(f) OTHER EDUCATIONAL FACILITIES.—The term 'other educational facilities' means (1) new or existing structures suitable for use as cafeterias or dining halls, student centers or student unions, infirmaries or other inpatient or outpatient health facilities, or for other essential service facilities, and (2) structures suitable for the above uses provided by rehabilitation, alteration, conversion, or improvement of existing structures which are otherwise inadequate for such uses. "PART G—SPECIAL PROGRAMS WELCH HALL

771. (a) PROGRAM AUTHORITY.—In recognition of the unique Michigan. architectural and historic significance to the education profession of 20 USC 1132h. Welch Hall, the Secretary is authorized, in accordance with the provisions of this section, to provide financial assistance to Eastern Michigan University in Ypsilanti, Michigan, for the purpose of the renovation and restoration of the physical facilities of Welch Hall. "(b) APPLICATION.—No financial assistance may be made available under this section except upon an application at such time, in such manner, and containing or accompanied by such information, as the Secretary may reasonably require. "(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated $2,000,000 to carry out the provisions of this section. Funds appropriated pursuant to this section shall remain available until expended. "SEC.

ACADEMIC HEALTH EDUCATION CENTER AUTHORIZED

•*rt.y

"SEC.

772. (a) ASSISTANCE AUTHORIZED.—The Secretary is

au-

thorized, in accordance with the provisions of this section, to provide financial assistance to the Rochester Institute of Technology located in Rochester, New York, to pay the Federal share of the cost of construction, and related costs (including equipment), for the Academic Health Education Center facility at the Rochester Institute of

New York. 20 USC 1132h-l.

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Page:United States Statutes at Large Volume 100 Part 2.djvu/438

 100 STAT. 1540

PUBLIC LAW 99-498—OCT. 17, 1986

Technology, to be used as a national model for the integration of student academic, counseling, health, and professional development activities. The Center will integrate students and programs developed for the hearing-impaired. "(b) TERMS AND CONDITIONS.—(1) No financial assistance may be

made available under this section except upon application at such time, in such manner, and containing or accompanied by such information as the Secretary may reasonably require. "(2) For the purpose of this section, the Federal share of the cost of the Academic Health Education Center facility at the Rochester Institute of Technology shall not exceed 50 percent. "(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums, not to exceed $1,800,000 to carry out the provisions of this section. Funds appropriated pursuant to this section shall remain available until expended. ESTEY HALL North Carolina. 20 USC 1132h-2.

.«:i* '<ff.

20 USC 1132h-3.

773. (a) PROGRAM AUTHORITY —In recognition of its historic and architectural significance as the first Black women's college dormitory, the Secretary is authorized, in accordance with the provisions of this section, to provide financial assistance to Shaw University of Raleigh, North Carolina, for the purpose of the renovation and restoration of the physical facilities of Estey Hall. "(b) APPLICATION—No financial assistance may be made under this section except upon an application at such time, in such manner, and containing or accompanied by such information, as the Secretary may reasonably require. "(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated $550,000 to carry out the provisions of this section. Funds appropriated pursuant to this section shall remain available until expended. , ^,,,,,, "SEC.

ELECTRONIC INSTRUCTIONAL NETWORK FOR GIFTED AND TALENTED STUDENTS "SEC.

774. (a) ASSISTANCE AUTHORIZED.—In recognition of the

benefits to be gained from applying existing and emerging technologies to classroom instruction, the Secretary is authorized, under the provisions of this section, to provide financial assistance to a 4year postsecondary institution in cooperation with school districts, for the purpose of renovating, constructing, and equipping a facility incorporating such technological advances as two-way interactive video communications to extend an existing electronic instructional network for providing college and advanced level courses to talented and gifted secondary school students. "(b) APPLICATION.—No financial assistance may be made available under this section except upon an application at such time, in such manner, and containing or accompanied by such information, as the Secretary may reasonably require. "(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated $2,000,000 to carry out the provisions of this section. Funds appropriated pursuant to this section shall remain available until expended.

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Page:United States Statutes at Large Volume 100 Part 2.djvu/439

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1541

MARY MCLEOD BETHUNE MEMORIAL FINE ARTS CENTER

775. (a) GENERAL AUTHORITY.—In recognition of the remark- Florida. able career of Mary McLeod Bethune, founder and president of 20 USC 1132h-4. Bethune-Cookman College, founder and first president of the National Council of Negro Women, and confidant and advisor to Presidents of the United States, and in order to enhance the ability of Bethune-Cookman College to carry on the unique quality of service to the community and to the Nation that characterizes the life of Mary McLeod Bethune, the Secretary shall, in accordance with the provisions of this section, provide financial assistance to the Bethune-Cookman College in Volusia County, Florida, to enable the Bethune-Cookman College to establish the Mary McLeod Bethune Memorial Fine Arts Center. "(b) APPLICATION.—No financial assistance may be made under this section except upon an application at such time, in f ^ h manner, and containing or accompanied by such information as the Secretary may reasonably require. "(c) USES.—The financial assistance made available pursuant to this section shall be used for the construction of the Mary McLeod Bethune Memorial Fine Arts Center building, the acquisition of necessary equipment, and the acquisition of necessary real property for the establishment of the Center. "(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums, not to exceed $6,200,000, as may be necessary to carry out the provisions of this section. Funds appropriated pursuant to this section shall remain available until expended. "SEC.

UNIVERSITY OF CONNECTICUT BEHAVIORAL SCIENCE FACILITY

776. (a) GENERAL AUTHORITY.—The Secretary is authorized 20 USC 1132h-5. to provide financial assistance, in accordance with the provisions of this section, to pay the costs of the Behavioral Science Facility at the University of Connecticut, located at Storrs, Connecticut, to enable the University of Connecticut to expand collaborative research for the benefit of the region. "(b) APPLICATION.—No financial assistance may be made under this section except upon an application at such time, in such manner, and containing or accompanied by such information, as the Secretary may reasonably require. "(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums, not to exceed $1,300,000, as may be necessary to carry out the provisions of this section. Funds appropriated pursuant to this section shall remain available until expended. "SEC.

UNIVERSITY OF RHODE ISLAND BUSINESS ADMINISTRATION PROGRAM

777. (a) GENERAL AUTHORITY.—The Secretary is authorized 20 USC ii32h-6. to provide financial assistance, in accordance with the provisions of this section, to pay the costs establishing a business administration program leading to a doctorate degree at the University of Rhode Island located at Kingston, Rhode Island, in order to enhance economic development of the southeastern New England region. "(b) APPLICATION.—No financial assistance may be made under this section except upon an application at such time, in such "SEC.

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PUBLIC LAW 99-498—OCT. 17, 1986

manner, and containing or accompanied by such information, as the Secretary may reasonably require. "(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated such sums, not to exceed $300,000, as may be necessary to carry out the provisions of this section. Funds appropriated pursuant to this section shall remain available until expended.

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"PART H—GENERAL '. --4 -.

20 USC 11321.

Grants.

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RECOVERY OF PAYMENTS

"SEC. 781. (a) PUBLIC BENEFIT.—The Congress declares that, if a facility constructed with the aid of a grant under part A or B of this title is used as an academic facility for 20 years following completion of such construction, the public benefit accruing to the United States will equal in value the amount of the grant. The period of 20 years after completion of such construction shall therefore be deemed to be the period of Federal interest in such facility for the purposes of this title. "(b) RECOVERY UPON CESSATION OF PUBLIC BENEFIT.—If, w i t h i n 2 0

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years after completion of construction of an academic facility which has been constructed, in part with a grant 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 value of the facility at that time (or so much thereof as constituted an approved project or projects) the same ratio as the amount of Federal grant bore to the cost of the facility financed with the aid of such grant. The value shall be determined by agreement of the parties or by action brought in the United States district court for the district in which such facility is situated. "(c) PROHIBITION ON USE FOR RELIGION.—Notwithstanding

the

provisions of subsections (a) and (b), no project assisted with funds under this title shall ever be used for religious worship or a sectarian activity or for a school or department of divinity. "DEFINITIONS

20 USC I132i-l.

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" S E C 782. The following definitions apply to terms used in this title: "(I)(A) Except as provided in subparagraph (B), 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 the purpose of part A or C, such term includes infirmaries or other facilities designed to provide primarily for outpatient care of student and instructional personnel. Plans for such

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facilities shall be in compliance with such standards as the Secretary may prescribe or approve in order to ensure that projects assisted 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 events 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 Secretary 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 which (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, except that the term 'academic facilities' may include any facility described in clause (v) to the degree that such facility is owned, operated, and maintained by the institution of higher education requesting the approval of a project; and that funds available for such facility under such project shall be used solely for the purpose of conversion or modernization of energy utilization techniques to economize on the use of energy resources; and that such project is not limited to facilities described in clause (v). "(2)(A) The term 'construction' means (i) erection of new or expansion of existing structures, and the acquisition and installation of initial equipment therefor; or (ii) acquisition of existing structures not owned by the institution involved; or (iii) a combination of either of the foregoing. For the purpose 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, but not including books, curricular, and program materials, and items of current and operating expense such as fuel, supplies, and the like; the term 'initial equipment' means equipment acquired and installed in connection with construction; and the terms 'equipment', 'initial equipment', and 'built-in equipment', shall be more particularly defined by the Secretary by regulation. "(B) The term 'reconstruction or renovation' means rehabilitation, alteration, conversion, or improvement (including the acquisition and installation of initial equipment, or modernization or replacement of such equipment) of existing structures. For the purpose 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

42 USC 293d.

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PUBLIC LAW 99-498—OCT. 17, 1986

furniture, but not including books, curricular, and program materials, and items of current and operating expense such as fuel, supplies, and the like; the term 'initial equipment' means equipment acquired and installed either in connection with construction as defined in paragraph (2)(A), or 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; the terms 'equipment', 'initial equipment', and 'built-in equipment' shall be more particularly defined by the Secretary by regulation; and 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 Secretary to be the cost, to the applicant for a grant or loan under this title, of the construction, reconstruction, or renovation 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, reconstruction, or renovation 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 ex1391 pended as a condition of such other Federal grant; and "(ii) in determining the amount of any loan under part C, to 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, reconstruction, or renovation that is to be financed with the aid of a loan under part C. "(B) In determining the development cost with respect to an academic facility, the Secretary may include expenditures for works of art for the facility not to exceed 1 percent of the total cost (including such expenditures) to the applicant of construction, reconstruction, or renovation of, and land acquisition and site improvements for, such facility. "(4) 'The term 'maintenance', with respect to instructional and research equipment obtained with funding under this title, shall mean the care necessary to the optimal functioning of such equipment. With respect to the equipment and structural changes related to obtaining and sustaining the necessary environment (ventilation, etc.) for proper functioning of instructional and research equipment, 'maintenance' shall mean that portion of care above and beyond normal overhead costs. "(5) The term 'Federal share' means in the case of any project a percentage (as determined under the applicable State plan) not in excess of 50 percent of its development cost. ''(6) The term 'higher education building agency' means (A) an agency, public authority, or other instrumentality of a State authorized to provide, or finance the construction, reconstruc-

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100 STAT. 1545

tion, or renovation of, academic facilities for 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), or (C) an institution of postsecondary education. "(7) The term 'public community college and public technical institute' means an institution of higher education which is under public supervision and control, and is organized and administered principally to provide a 2-year program which is acceptable for full credit toward a bachelor's degree, or a 2-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 4 or more years of higher education which is located in a community different from that in which its parent institution is located. "(8) The term 'public educational institution' does not include a school or institution of any agency of the United States. "(9) The term 'State' includes in addition to the several States of the Union, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the Virgin Islands, and the Trust Territory of the Pacific Islands.

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"SALES OF OBLIGATIONS REQUIRED

"SEC. 783. The Secretary shall sell, at public or private sale, obligations held under parts C and F of this title upon such terms as the Secretary may fix and in such amounts as the Secretary determines will carry out the directions in the concurrent resolution on the budget for the fiscal year 1987 (S. Con. Res. 120, 99th Congress, agreed to June 27, 1986), but the Secretary shall not sell obligations having a market value of more than $579,000,000 in fiscal year 1987 and more than $314,000,000 in fiscal year 1988.".

20 USC ii32i-2.

SEC. 702. CONFORMING PROVISION.

Title IV of the Housing Act of 1950 is repealed.

12 USC 17491749c.

TITLE VIII—COOPERATIVE EDUCATION SEC. 801. COOPERATIVE EDUCATION REAUTHORIZED.

Title VIII of the Act is amended to read as follows: •Ii.l1

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PUBLIC LAW 99-498—OCT. 17, 1986 V..«..

"TITLE VIII—CCX)PERATIVE EDUCATION

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"APPROPRIATIONS AUTHORIZED; RESERVATIONS -

20 USC 1133.

SOL (a) APPROPRIATIONS AUTHORIZED.—There are authorized to be appropriated to carry out this title $17,000,000 for fiscal year 1987, and such sums as may be necessary for each of the 4 succeeding fiscal years. "(b) RESERVATIONS.—Of the amounts appropriated in each fiscal year— "(1) not less than 75 percent shall be available for carrying out grants to institutions of higher education and combinations of such institutions for cooperative education under section 802; "(2) not to exceed 12V2 percent shall be available for demonstration projects under paragraph (1) of section 803(a); "(3) not to exceed 10 percent shall be available for training and resource centers under paragraph (2) of section 803(a); and "(4) not to exceed 2^2 percent shall be available for research under paragraph (3) of section 803(a). "(c) AvAiLABiliTY OF APPROPRIATIONS.—Appropriations under this title shall not be available for the payment of compensation of students for employment by employers under arrangements pursuant to this title. "SEC.

" G R A N T S FOR COOPERATIVE EDUCATION PROGRAMS

20 USC 1133a.

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802. (a) GRANTS AUTHORIZED; MAXIMUM AMOUNT OF GRANT.—(1) The Secretary is authorized, from the amount available under section 801(b)(l) in each fiscal year and in accordance with the provisions of this title, to make grants to institutions of higher education, or to combinations of such institutions, to pay the Federal share of the cost of planning, establishing, expanding, or carrying out programs of cooperative education by such institutions or combinations of institutions. "(2)(A) Cooperative education programs assisted under this section shall provide alternating or parallel periods of academic study and of public or private employment, giving work experience related to their academic or occupational objectives and the opportunity to earn the funds necessary for continuing and completing their education. "(B) The amount of each grant shall not exceed $500,000 to any institution of higher education or combination of such institutions in any fiscal year. "(b) APPLICATIONS.—Each institution of higher education, or combination of institutions desiring to receive a grant under this title shall submit an application to the Secretary at such time and in such manner as the Secretary shall prescribe. Each such application shall— "(1) set forth the program or activities for which a grant is authorized under this section; "(2) specify each portion of such program or activities which will be performed by a nonprofit organization or institution other than the applicant and the compensation to be paid for such performance; "(3) provide that the applicant will expend during such fiscal year for the purpose of such program or activities not less than "SEC.

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the amount expended for such purpose during the previous fiscal year; "(4) describe the plans which the applicant will carry out to assure that the applicant will continue the cooperative education program beyond the 5-year period of Federal assistance described in subsection (c)(D; "(5) provide that, in the case of an institution of higher education that provides a 2-year program which is acceptable for full credit toward a bachelor's degree, the cooperative education program will be available to students who are certificate candidates and who carry at least one-half the normal full time academic workload; "(6) provide that the applicant will— "(A) make such reports as may be essential to insure that 0* J the applicant is complying with the provisions of this section, including in the reports for the second and each Btlj succeeding fiscal 3^ear for which the applicant receives a grant data with respect to the impact of the cooperative ff? >' education program in the previous fiscal year, including— "(i) the number of students enrolled in the cooperative education program, "(ii) the number of employers involved in the program, "(iii) the income of the students enrolled, and "(iv) the increase or decrease of enrollment in the program in the second previous year compared to such previous fiscal year; and "(B) keep such records as are essential to insure that the applicant is complying with the provisions of this title; "(7) provide for such fiscal control and fund accounting procedures as may be necessary to assure proper disbursement of, and accounting for, Federal funds paid to the applicant under this title; and "(8) include such other information as is essential to carry out the provisions of this title. "(c) DURATION OF GRANTS; FEDERAL SHARE.—(1)(A) Except as provided in paragraph (3), no individual unit of an institution of higher education may receive, individually or as a participant in a combination of such institutions, grants under this section for more than 5 fiscal years. "(B) The limitation contained in subparagraph (A) shall apply to each institution of higher education or participant in a combination of such institutions whether the grant was received before or after the date of enactment of the Higher Education Amendments of 1986. "(2) The Federal share of a grant under this section may not exceed— "(A) 90 percent of the cost of carrying out the application in the first year the applicant receives a grant under this section; "(B) 80 percent of such cost in the second such year; "(C) 70 percent of such cost in the third such year; ' "(D) 60 percent of such cost in the fourth such year; and "(E) 30 percent of such cost in the fifth such year. "(3) Any institution of higher education, or participant in a combination of such institutions which— "(A) has received a grant for 5 fiscal years under this section;

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gj>^; "(B) ijag conducted without Federal assistance a cooperative education program for at least 2 academic years subsequent to the end of the fifth such fiscal year; "(C) has expended for the cooperative education program for each such subsequent academic year an amount at least equal to the total cost of the program in the fifth fiscal year in which the institution, or participant, received assistance under this section; and "(D) provides statistics in the application required under subsection (b) on the number of students enrolled in the cooperative education program, the number of institutional personnel, including faculty advisers and cooperative education coordinators, and the income of the students enrolled, for each such year; may apply under subsection (b) as an institution, or participant, to which subparagraph (A) of paragraph (2) applies. "(4) Any provision of law to the contrary notwithstanding, the Secretary shall not waive the provisions of this subsection. "(d) FACTORS FOR SPECIAL CONSIDERATION OF APPLICATIONS.—(1) In

Handicapped persons. Minorities.

approving applications under this section, the Secretary shall give special consideration to applications from institutions of higher education for programs which show the greatest promise of success because of^ "(A) the extent to which programs in the academic discipline with respect to which the application is made have had a favorable reception by public and private sector employers, "(B) the commitment of the institution of higher education to cooperative education has demonstrated by the plans which such institution has made to continue the program after the termination of Federal financial assistance, "(C) the extent to which the institution is committed to extending cooperative education on an institution-wide basis for all students who can benefit, and "(D) such other factors as are consistent with the purposes of this section. "(2) The Secretary shall also give special consideration to applications from institutions of higher education or combinations thereof which demonstrate a commitment to serving special populations such as women, the handicapped and Black, Mexican American Puerto Rican, Cuban, other Hispanic, American Indian, Alaska Native, Aleut, Native Hawaiian, American Samoan, Micronesian, Guamian (Chamorro), and Northern Marianian students. DEMONSTRATION AND INNOVATION PROJECTS; TRAINING AND RESOURCE CENTERS; A N D RESEARCH

Grants. Contracts. 20 USC 1133b.

.

"SEC. 803. (a) AUTHORIZATION.—The Secretary is authorized, in accordance with the provisions of this section, to make grants and enter into contracts for— "(1) the conduct of demonstration projects designed to demonstrate or determine the feasibility or value of innovative i, methods of cooperative education from the amounts available in each fiscal year under section 801(b)(2); a "(2) the conduct of training and resource centers designed to— "(A) train personnel in the field of cooperative education;
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