[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 541 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 541

To establish a National Foundation for Excellence to award scholarships 
  to outstanding students who are committed to careers in teaching in 
                public education and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 10 (legislative day, March 3), 1993

   Mr. Boren introduced the following bill; which was read twice and 
         referred to the Committee on Labor and Human Resources

_______________________________________________________________________

                                 A BILL


 
To establish a National Foundation for Excellence to award scholarships 
  to outstanding students who are committed to careers in teaching in 
                public education and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Foundation for Excellence 
Act''.

SEC. 2. PURPOSE.

    It is the purpose of this Act to establish a National Foundation 
for Excellence to carry out a scholarship program for outstanding 
students who are committed to careers in teaching in public education.

SEC. 3. DEFINITIONS.

    As used in this Act, the term--
            (1) ``Board'' means the Board of Directors of the National 
        Foundation for Excellence;
            (2) ``Foundation'' means the National Foundation for 
        Excellence established pursuant to section 4(a);
            (3) ``Fund'' means the National Foundation for Excellence 
        Fund established pursuant to section 12(b);
            (4) ``institution of higher education'' has the same 
        meaning given to such term by section 1201(a) of the Higher 
        Education Act of 1965;
            (5) ``State'' means each of the 50 States, the District of 
        Columbia, the Commonwealth of Puerto Rico, and considered as a 
        single entity, Guam, the Virgin Islands, American Samoa, the 
        Republic of the Marshall Islands, the Federated States of 
        Micronesia, and the Republic of Palau; and
            (6) ``Secretary'', unless otherwise specified, means the 
        Secretary of the Treasury.

SEC. 4. ESTABLISHMENT OF THE NATIONAL FOUNDATION FOR EXCELLENCE.

    (a) Establishment.--There is established, as an independent 
establishment of the executive branch of the United States Government, 
the National Foundation for Excellence.
    (b) Board of Directors.--
            (1) In general.--The Foundation shall be subject to the 
        supervision and direction of a Board of Directors. The Board 
        shall be composed of--
                    (A) 11 members to be appointed by the President by 
                and with the advice and consent of the Senate, 1 of 
                whom shall serve as Chairman;
                    (B) 2 members of the Senate;
                    (C) 2 members of the House of Representatives; and
                    (D) the Executive Director of the Foundation, who 
                shall serve ex officio as a member of the Board, but 
                shall not be eligible to vote.
            (2) Appointment.--
                    (A) In carrying out the provisions of paragraph 
                (1)(A), the President shall appoint at least 6 
                individuals with 10 years experience as educators, not 
                more than 3 of whom shall be of the same political 
                party. Two of the 6 individuals shall be classroom 
                teachers.
                    (B) In carrying out the provisions of paragraph 
                (1)(B), the Majority Leader of the Senate shall appoint 
                1 member of the Board and the Minority Leader of the 
                Senate shall appoint 1 member of the Board.
                    (C) In carrying out the provisions of paragraph 
                (1)(C), the Speaker of the House of Representatives 
                shall appoint 1 member of the Board and the Minority 
                Leader of the House of Representatives shall appoint 1 
                member of the Board.
    (c) Compensation of the Board.--Members of the Board shall serve 
without pay, but shall be entitled to reimbursement for travel, 
subsistence, and other necessary expenses incurred in the performance 
of their duties.

SEC. 5. SCHOLARSHIPS.

    (a) Programs Authorized.--
            (1) In general.--The Foundation is authorized to--
                    (A) award scholarships to outstanding students who 
                are committed to careers in teaching in public 
                education in accordance with the provisions of this Act 
                (other than section 11); and
                    (B) award grants to States in accordance with 
                section 11.
            (2) Limitation.--No student shall receive a scholarship 
        from the Foundation pursuant to paragraph (1)(A) and a 
        scholarship from a State in accordance with section 11.
    (b) Course of Study Rule.--A student awarded a scholarship under 
this Act may attend any institution of higher education offering 
courses of study, training, or other educational activities which the 
Foundation, pursuant to criteria developed in consultation with the 
Secretary of Education, determines is designed to prepare a recipient 
for a career in teaching in public education.
    (c) Duration of Scholarship Assistance.--Scholarship assistance 
under this Act shall be awarded for such periods as the Foundation may 
prescribe but not to exceed 4 academic years. In the case of graduate 
study, scholarship assistance may be awarded for a period of study not 
to exceed 2 academic years.

SEC. 6. ELIGIBILITY AND SELECTION OF FOUNDATION SCHOLARS.

    (a) Eligibility.--An individual is eligible to receive a 
scholarship under this Act if the individual--
            (1) ranks in the top 10 percent of the graduating class of 
        the secondary school of the individual;
            (2) scores in the top 10 percent of students taking the 
        Scholastic Aptitude Test or the American College Test;
            (3) maintains a 3.2 grade point average (on a 4.0 maximum 
        grade point average scale) in an institution of higher 
        education; and
            (4) enters into an agreement with the Foundation, pursuant 
        to section 8(c), that the student will pursue a teaching career 
        after graduation from an institution of higher education.
    (b) Selection of Foundation Scholarship Recipients.--
            (1) Nationwide competition.--The Foundation is authorized, 
        either directly or by contract, to provide for the conduct of a 
        nationwide competition for selecting Foundation scholarship 
        recipients.
            (2) Selection procedures.--The Foundation shall adopt 
        selection procedures which assure that at least 50 Foundation 
        scholarship recipients shall be selected in each fiscal year 
        from each State in which there is at least 50 students who meet 
        the eligibility requirements described in subsection (a), and 
        in the case of a State in which there are less than 50 such 
        students, such procedures shall assure that the number of such 
        recipients shall be equal to the number of students who meet 
        such requirements.
            (3) Basis.--The Foundation shall attempt to award 
        scholarships to students in each State on the basis of the 
        number of secondary school students in the State compared to 
        the total number of secondary school students in all States.

SEC. 7. STIPENDS.

    (a) In General.--Each student awarded a scholarship under this Act 
shall receive a stipend which shall not exceed the cost to the student 
of tuition, fees, books, and room and board at the institution of 
higher education such student will attend.
    (b) Limitation.--In no event shall the total amount of scholarship 
assistance awarded to any recipient under this Act exceed $70,000.

SEC. 8. SCHOLARSHIP CONDITIONS.

    (a) In General.--A student awarded a scholarship under the 
provisions of this Act shall continue to receive the payments provided 
under this Act only during such periods as the Foundation finds that 
the student is--
            (1) maintaining a 3.2 grade point average (on a 4.0 maximum 
        grade point average scale);
            (2) maintaining a class rank in the top 10 percent of the 
        class, if such class ranking is available to the student; and
            (3) devoting full time to study or research designed to 
        prepare the student for a career in teaching in public 
        education and is not otherwise engaging in gainful employment 
        other than employment approved by the Foundation pursuant to 
        regulation.
    (b) Reports.--The Foundation is authorized to require reports 
containing such information in such form and to be filed at such times 
as the Foundation determines to be necessary from any student awarded a 
scholarship under this Act. Each such report shall be accompanied by a 
certificate from any appropriate official at the institution of higher 
education, approved by the Foundation, stating that such student is 
making satisfactory progress in, and is devoting essentially full time 
to, study or research, except as otherwise provided in subsection (a).
    (c) Student Agreement.--
            (1) In general.--A student awarded a scholarship under the 
        provisions of this Act shall enter into an agreement with the 
        Foundation to teach in a public elementary or secondary school 
        for the period required under paragraph (2).
            (2) Teaching commitment.--For the purpose of determining 
        the duration of the teaching commitment required in paragraph 
        (1), the following schedule shall apply:

      Total Amount of                                          Teaching
        Scholarship Awarded                                  Commitment
          $20,000 or less.........................              2 years
          $20,000 to $28,000......................              3 years
          $28,000 to $36,000......................              4 years
          $36,000 to $50,000......................              5 years
          $50,000 to $70,000......................             6 years.

SEC. 9. SCHOLARSHIP REPAYMENT PROVISIONS.

    Each Foundation scholar found by the Foundation to be in 
noncompliance with the provisions of this Act shall be required to 
repay--
            (1) the total amount of scholarships awarded under this Act 
        plus interest equal to the sum of the rate of interest of 91-
        day Treasury bills auctioned for the 3-month period for which 
        the determination of noncompliance is made;
            (2) 20 percent of the total amount calculated under 
        paragraph (1); and
            (3) where applicable, reasonable collection fees.

SEC. 10. EXCEPTIONS TO REPAYMENT PROVISIONS.

    (a) Deferral During Certain Periods.--A Foundation scholar shall 
not be considered to be in violation of the provisions of this Act 
during any period in which the Foundation scholar--
            (1) is serving, not in excess of 3 years, as a member of 
        the armed services of the United States;
            (2) is temporarily totally disabled for a period of time 
        not to exceed 3 years as established by the sworn affidavit of 
        a qualified physician;
            (3) is unable to secure employment for a period not to 
        exceed 12 months by reason of the care required by a spouse who 
        is disabled;
            (4) is seeking and unable to find full-time employment as a 
        teacher in a public elementary or secondary school for a single 
        period not to exceed 12 months; or
            (5) satisfies the provisions of additional repayment 
        exceptions that may be prescribed by the Secretary in 
        regulations issued pursuant to this Act.
    (b) Forgiveness if Permanently Totally Disabled.--A Foundation 
scholar shall be excused from repayment of any scholarship assistance 
received under this Act if the scholar becomes permanently totally 
disabled as established by the sworn affidavit of a qualified 
physician.

SEC. 11. GRANTS TO STATES FOR FOUNDATION SCHOLARS.

    (a) State Grants.--The Foundation is authorized to award grants to 
States to enable such States to pay the Federal share of the cost 
establishing State scholarship programs that award scholarships to 
students in accordance with the provisions of this section.
    (b) Agreement.--Each State desiring to conduct a State scholarship 
program under this section shall enter into an agreement with the 
Foundation, at such time, in such manner, and containing or accompanied 
by such information as the Foundation may reasonably require. Each such 
agreement shall contain--
            (1) an assurance that the State will conduct the State 
        scholarship program in substantial compliance with the 
        provisions of this Act, unless the Foundation and State agree 
        otherwise;
            (2) an assurance that the State will pay the non-Federal 
        share of the cost of the State scholarship program from non-
        Federal sources;
            (3) an assurance that each student receiving a scholarship 
        under this section shall fulfill such student's teaching 
        commitment in a public elementary or secondary school located 
        in the State which awards the scholarship;
            (4) a description of any additional teaching commitment to 
        which a student may be subject upon graduation from an 
        institution of higher education under the State scholarship 
        program;
            (5) an assurance that if a student is selected to receive a 
        scholarship from the Foundation and a scholarship from the 
        State pursuant to this section, then such student shall have 
        the option of deciding which one of the two scholarships to 
        accept; and
            (6) such additional assurances as the Foundation determines 
        are essential to ensure compliance with the provisions of this 
        Act.
    (c) Federal Share.--The Federal share of the cost of each State 
scholarship program established under this section shall be 50 percent.

SEC. 12. NATIONAL FOUNDATION FOR EXCELLENCE FUND.

    (a) Establishment.--
            (1) In general.--There is established in the Treasury of 
        the United States a trust fund to be known as the National 
        Foundation for Excellence Trust Fund.
            (2) Funds.--The Fund shall consist of--
                    (A) amounts appropriated to, and deposited in, the 
                Fund pursuant to section 15;
                    (B) amounts raised from non-Federal sources by the 
                Foundation, which shall be credited to and form part of 
                the Fund; and
                    (C) the interest on, and the proceeds from the sale 
                or redemption of, any obligations held in the Fund, 
                which shall be credited to and form a part of the Fund.
    (b) Investment Authority.--It shall be the duty of the Secretary to 
invest in full amounts appropriated to the Fund. Such investments may 
be made only in interest-bearing obligations of the United States or in 
obligations guaranteed as to both principal and interest by the United 
States. For such purpose, such obligations may be acquired (1) on 
original issue at the issue price, or (2) by purchase of outstanding 
obligations at the market place. The purposes for which obligations of 
the United States may be issued under the Second Liberty Bond Act, as 
amended, are hereby extended to authorize the issuance at par of 
special obligations exclusively to the Fund. Such special obligations 
shall bear interest at a rate equal to the average rate of interest, 
computed as to the end of the calendar month next preceding the date of 
such issue, borne by all marketable interest-bearing obligations of the 
United States then forming a part of the public debt; except that where 
such average rate is not a multiple of one-eighth of 1 percent, the 
rate of interest of such special obligations shall be the multiple of 
one-eighth of 1 percent next lower than such average rate. Such special 
obligations shall be issued only if the Secretary determines that the 
purchase of other interest-bearing obligations of the United States, or 
of obligations guaranteed as to both principal and interest by the 
United States on original issue or at the market price, is not in the 
public interest.
    (c) Sale and Redemption.--Any obligation acquired by the Fund 
(except special obligations issued exclusively to the Fund) may be sold 
by the Secretary at the market price, and such special obligations may 
be redeemed at par plus accrued interest.

SEC. 13. EXPENDITURES FROM THE FUND.

    (a) In General.--The Secretary is authorized to pay to the 
Foundation from the interest and earnings of the Fund such sums as the 
Board determines are necessary and appropriate to enable the Foundation 
to carry out the provisions of the Act.
    (b) Audit.--The activities of the Foundation under this Act may be 
audited by the General Accounting Office under such rules and 
regulations as may be prescribed by the Comptroller General of the 
United States. The representatives of the General Accounting Office 
shall have access to all books, accounts, records, reports, and files 
and all other papers, things, or property belonging to or in use by the 
Foundation, pertaining to such activities as necessary to facilitate 
the audit.

SEC. 14. ADMINISTRATIVE PROVISIONS.

    (a) In General.--In order to carry out the provisions of this Act, 
the Foundation is authorized to--
            (1) appoint and fix the compensation of such personnel as 
        may be necessary to carry out the provisions of this Act, 
        except that in no case shall employees be compensated at a rate 
        to exceed the rate provided for employees in grade 15 of the 
        General Schedule set forth in section 5332 of title 5, United 
        States Code;
            (2) procure temporary and intermittent services of experts 
        and consultants as are necessary to the extent authorized by 
        section 3109 of title 5, United States Code, but at rates not 
        to exceed the rate specified at the time of such service for 
        grade GS-15 in section 5332 of such title;
            (3) prescribe such regulations as the Foundation deems 
        necessary governing the manner in which the Foundation's 
        functions shall be carried out;
            (4) receive money and other property donated, bequeathed, 
        or devised, without condition or restriction other than such 
        money or property be used for the purposes of the Foundation; 
        and to use, sell, or otherwise dispose of such property for the 
        purpose of carrying out the Foundation's functions;
            (5) accept and utilize the services of voluntary and 
        noncompensated personnel and reimburse such personnel for 
        travel expenses, including per diem, as authorized by section 
        5703 of title 5, United States Code;
            (6) enter into contracts, grants, or other arrangements, or 
        modifications thereof, to carry out the provisions of this Act, 
        and such contracts or modifications thereof may, with the 
        concurrence of two-thirds of the members of the Board, be 
        entered into without performance or other bonds, and without 
        regard to section 3709 of the Revised Statutes, as amended (41 
        U.S.C. 5);
            (7) make advances, progress, and other payments which the 
        Board deems necessary under this Act without regard to the 
        provisions of section 3648 of the Revised Statutes, as amended 
        (31 U.S.C. 3324);
            (8) rent office space in the District of Columbia; and
            (9) make other necessary expenditures.
    (b) Executive Director.--
            (1) In general.--There shall be an Executive Director of 
        the Foundation who shall be appointed by the Board. The 
        Executive Director shall be the chief executive officer of the 
        Foundation and shall carry out the functions of the Foundation 
        subject to the supervision and direction of the Board. The 
        Executive Director shall carry out such other functions 
        consistent with the provisions of this Act as the Board shall 
        delegate.
            (2) Compensation.--The Executive Director of the Foundation 
        shall be compensated at the rate specified for employees in 
        grade 15 of the General Schedule set forth in section 5332 of 
        title 5, United States Code.

SEC. 15. ANNUAL REPORT.

    The Board shall make an annual report of its operations under this 
Act to the Congress not later than April 1 of each year. Each such 
report shall include--
            (1) an analysis of the administration of the Foundation;
            (2) a description of the services provided by the 
        Foundation;
            (3) a statement of the finances of the Foundation;
            (4) a description of the plan and goals of the Foundation 
        for disbursing $500,000 per year in States with a population of 
        fewer than 2,000,000;
            (5) a description of the plan and goals of the Foundation 
        for disbursing $1,000,000 per year in States with a population 
        greater than 2,000,000; and
            (6) a description of the plan and goals of the Foundation 
        to award scholarships to at least 100 students in every State.

SEC. 16. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--
            (1) In general.--There are authorized to be appropriated 
        $200,000,000 to the Fund.
            (2) Operating and administrative expenses.--(A) There are 
        authorized to be appropriated $5,000,000 to the Foundation for 
        each of the fiscal years 1993 through 1998 for operating and 
        administrative expenses.
            (B) In any fiscal year in which funds appropriated pursuant 
        to the authority of subparagraph (A) remain unobligated at the 
        end of such fiscal year, such unobligated funds shall be 
        credited to and form part of the Fund.
    (b) Matching Funds.--Subject to subsection (c), there are 
authorized to be appropriated $200,000,000 to the Fund for the period 
beginning October 1, 1993, and ending September 30, 1998, to carry out 
section 11.
    (c) Availability.--The amount appropriated pursuant to the 
authority of subsection (b) shall only be made available in each fiscal 
year in an amount equal to the amount raised from non-Federal sources 
by the Foundation in each such fiscal year.

                                 <all>

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