[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3919 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3919

   To provide financial aid grants for college and technical school 
                               education.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 30, 1996

 Mr. Obey (for himself, Mr. Clay, Mr. Miller of California, Mr. Yates, 
Mr. Brown of California, Mr. Frost, Mr. Lipinski, Ms. DeLauro, and Mr. 
   Hinchey) introduced the following bill; which was referred to the 
          Committee on Economic and Educational Opportunities

_______________________________________________________________________

                                 A BILL


 
   To provide financial aid grants for college and technical school 
                               education.

    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 ``American Opportunity Grant Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) An educated citizenry is fundamental both for a 
        democratic society and for a productive economy.
            (2) In today's world a high school education is only the 
        foundation of the lifelong learning process which will permit 
        individuals and nations to prosper in the highly changing 
        international economy of the 21st century. A college education 
        remains an excellent investment both for students and for 
        America.
            (3) The right of every American to a free, publicly 
        financed education through high school and the responsibility 
        of State and local governments to provide this education is 
        recognized by the basic laws of every State and Commonwealth 
        within the United States. Approximately, 90 percent of all 
        Americans receive their basic education through the locally 
        governed and managed public schools.
            (4) Postsecondary education, in contrast, is delivered 
        through a diverse system of public and private institutions. 
        Students, families, the Federal Government, States, and the 
        private sector provide the funds for this education through a 
        system which is neither rational nor adequate. A new 
        partnership is necessary which redefines and makes more 
        rational the respective roles of students, families, 
        government, nonprofit, and the private sector in ensuring 
        financial access to the high quality educational opportunities 
        which students are academically prepared to undertake.
            (5) At the same time that the need for postsecondary 
        education is becoming universal, the cost of this education has 
        increased, causing financial strain for all but the most 
        affluent American families to afford.
            (6) The interstate mobility of the modern workforce and the 
        integrated nature of the American economy make it appropriate 
        for the national government to expand its contribution to the 
        financing of postsecondary education so that it is a more equal 
        partner with State governments and families in financing 
        postsecondary education.
            (7) It is therefore important that adequate financial 
        resources are available to assure that every high school 
        graduate has access to the postsecondary training which his or 
        her efforts have qualified them for academically.
            (8) As the Federal contribution increases, however, it will 
        be necessary to ensure that future increases in the cost of 
        attendance for students, including tuition charges, is 
        constrained so that Federal assistance is directed to the 
        students rather than to the institutions or to State 
        governments. The principle must be that additional Federal 
        support is intended to supplement public resources for 
        education not to substitute Federal dollars for existing State 
        expenditures.
            (9) It is appropriate that the Federal Government in 
        exchange for the financial assistance provided, require that 
        students meet appropriate academic standards both for initial 
        eligibility and for continuing support.

SEC. 3. AMERICAN OPPORTUNITY GRANTS.

    (a) Designation of Program; Eligible Institutions.--Section 401(a) 
of the Higher Education Act of 1965 (20 U.S.C. 1070a(a)) is amended by 
striking paragraph (3) and inserting the following:
    ``(3) Basic grants made under this subpart shall be known as 
`American Opportunity Grants'.
    ``(4) Notwithstanding section 481, for purposes of this section the 
terms `eligible institution' and `institution of higher education' have 
the meaning given the term `institution of higher education' by section 
1201 of this Act.''.
    (b) Revision of Grant Program.--Section 401(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1070a(b)) is amended by striking 
paragraphs (2) through (5) and inserting the following:
            ``(2) Determination of amount of grant.--The amount of the 
        basic grant for a student eligible under this part for academic 
        year 1998-1999 is determined on the basis of the adjusted 
        income of the student's family and is equal to the sum of the 
        basic award, the `B' average merit award, and the public 
        service award as determined under the following table:


----------------------------------------------------------------------------------------------------------------
                                                                                     The ``B''      The public  
                   If the adjusted income is--                       The basic     average merit   service award
                                                                    award is--      award is--         is--     
----------------------------------------------------------------------------------------------------------------
Less than $10,000...............................................          $3,000          $1,000          $1,000
10,001 to 15,000................................................           2,950             900           1,000
15,001 to 20,000................................................           2,900             800           1,000
20,001 to 25,000................................................           2,850             800           1,000
25,001 to 30,000................................................           2,800             700           1,000
30,001 to 35,000................................................           2,750             600           1,000
35,001 to 40,000................................................           2,700             500           1,000
40,001 to 45,000................................................           2,650             500           1,000
45,001 to 50,000................................................           2,600             500           1,000
50,001 to 55,000................................................           2,550             500           1,000
55,001 to 60,000................................................           2,450             500           1,000
60,001 to 65,000................................................           2,200             500           1,000
65,001 to 70,000................................................           1,700             500           1,000
70,001 to 75,000................................................           1,000             500           1,000
75,001 to 80,000................................................             500             500           1,000
80,001 to 90,000................................................               0             500           1,000
More than 90,000................................................               0               0               0
----------------------------------------------------------------------------------------------------------------

      
            ``(3) Limitations on calculations.--
                    ``(A) Cost of attendance limitations on 
                calculations.--Notwithstanding paragraph (2)--
                            ``(i) the basic award determined under the 
                        table contained in such paragraph shall not 
                        exceed 50 percent of the cost of attendance for 
                        the eligible student; and
                            ``(ii) the `B' average merit award 
                        determined under such table shall not exceed 15 
                        percent of such cost of attendance.
                    ``(B) Grade recognition.--A student is eligible for 
                a `B' average merit award for any academic year 
                immediately following an academic year for which the 
                student has maintained a grade average of `B' or better 
                (or the equivalent of such a grade as determined in 
                accordance with regulations prescribed by the 
                Secretary), except that no institution may grant such a 
                merit award to more than one-half of its students for 
                any academic year.
                    ``(C) Service recognition.--A student is eligible 
                for a public service award for any academic year 
                immediately following an academic year in which the 
                student has performed 195 or more hours of qualifying 
                public service (as determined in accordance with 
                regulations prescribed by the Secretary).
                    ``(D) Determination of adjusted income.--For 
                purposes of subparagraph (A), a family's adjusted 
                income is equal to the sum of--
                            ``(i) the family's adjusted gross income; 
                        and
                            ``(ii) a contribution from assets 
                        determined by--
                                    ``(I) determining net worth in the 
                                manner required by sections 475(d)(2), 
                                476(c)(2), and 477(c)(2);
                                    ``(II) subtracting any portion of 
                                such net worth that is attributable to 
                                farm assets, a tax-deferred retirement 
                                savings account or plan (as defined by 
                                the Secretary by regulation); and
                                    ``(III) subtracting $50,000;
                        except that such contribution from assets shall 
                        not be less than zero.
            ``(3) Baseline expenditure and revenue limitations.--
                    ``(A) In general.--In order to be an eligible 
                institution under the American Opportunity Grant 
                program, the governing authority of the institution of 
                higher education shall certify to the Secretary that--
                            ``(i) the institution has maintained--
                                    ``(I) an average annual expenditure 
                                for the applicable academic year that 
                                is at least equal to the average annual 
                                expenditure per full-time equivalent 
                                student for the 3 preceding academic 
                                years; or
                                    ``(II) an annual education and 
                                general expenses expenditure for the 
                                applicable academic year that is at 
                                least equal to the average annual 
                                education and general expenses 
                                expenditure for the 3 preceding 
                                academic years; and
                            ``(ii) the tuition increase (if any) for 
                        the applicable academic year does not exceed 
120 percent the average annual tuition increase for all similar 
institutions for the 3 preceding academic years, as determined in 
accordance with regulations prescribed by the Secretary.
                    ``(B) Review of certification.--The review of such 
                certification by the Secretary shall be limited to such 
                criteria which the Secretary believes necessary to 
                assure that enhanced Federal assistance has not been 
                used to supplant existing funding by the institution.
                    ``(C) Waivers.--The Secretary may waive the 
                requirements of this paragraph if the review conducted 
                under subparagraph (B) demonstrates that the failure to 
                comply was caused by extraordinary and compelling 
                circumstances.
            ``(4) Part-time study.--In any case where a student attends 
        an institution of higher education on less than a full-time 
        basis (excluding a student who attends an institution of higher 
        education on less than a half-time basis) during any academic 
        year, the amount of the basic grant to which that student is 
        entitled shall be reduced in proportion to the degree to which 
        that student is not so attending on a full-time basis, in 
        accordance with a schedule of reductions established by the 
        Secretary for the purposes of this division, computed in 
        accordance with this subpart. Such schedule of reductions shall 
        be established by regulation and published in the Federal 
        Register in accordance with section 482 of this Act.
    (c) Period of Eligibility.--Section 401(c) of the Higher Education 
Act of 1965 (20 U.S.C. 1070a(c)) is amended to read as follows:
    ``(c) Period of Eligibility.--
            ``(1) Baccalaureate degree students.--An undergraduate 
        student enrolled full-time in a program leading to a 
        baccalaureate degree shall be entitled to 4 academic years of 
        support, if the student is certified prior to the beginning of 
        each academic term as making satisfactory progress toward such 
        degree. The Secretary shall promulgate regulations for 
        providing an equivalent period of support for less than full-
        time students.
            ``(2) Nonbaccalaureate degree students.--An undergraduate 
        student who is not enrolled full-time in a program leading to a 
        baccalaureate degree shall be entitled to up to 2 terms of 
        support, each of which may not exceed 1 year in length. The 
        Secretary shall promulgate regulations for providing an 
        equivalent period of support for less than full-time students.
            ``(3) Single grant.--No student is entitled to receive a 
        basic grant concurrently from more than 1 institution for any 
        academic year.
    (d) Effective Dates.--Except as provided in section 4, the 
amendments made by this section shall be effective with respect to 
grants to students for academic years beginning on or after July 1, 
1998.

SEC. 4. PRESERVATION OF PELL GRANTS FOR PROPRIETARY SCHOOL STUDENTS.

    (a) In General.--Notwithstanding the amendments made by section 3 
of this Act, students attending proprietary institutions of higher 
education or postsecondary vocational institutions (as such terms are 
defined in section 481 of the Higher Education Act of 1965 (20 U.S.C. 
1088)) shall continue to be eligible to receive Pell grants in 
accordance with section 401 of such Act as in effect on the day before 
the date of enactment of this Act, except that the maximum grant under 
subsection (b)(2)(A) of such section 401 shall be $2,500.
    (b) GAO Evaluation.--Within 18 months after such date of enactment, 
the Comptroller General shall submit a report to the Economic and 
Educational Opportunities Committee of the House of Representatives and 
the Labor and Human Resources Committee of the Senate a report 
evaluating the financial aid needs of students attending the 
institutions described in subsection (a), and containing such 
alternatives and recommendations as the Comptroller General considers 
appropriate to address those financial aid needs.

SEC. 5. EVALUATION.

    Section 491 of the Higher Education Act of 1965 (20 U.S.C. 1098) is 
amended by adding at the end the following new subsection:
    ``(m) American Opportunity Grant Study.--The Advisory Committee 
shall conduct a study of the baseline expenditure and revenue 
limitations contained in section 401(b)(3) of this Act and the need for 
any modifications to such limitations. Such report shall include 
recommendations to restrain the annual rate of tuition increases and 
increases in the cost of attendance. The Advisory Committee shall 
submit a report on the results of such study to the Congress not later 
than December 31, 1998.''.

SEC. 6. COMMISSION ON CORPORATE WELFARE.

    (a) Purpose.--It is the purpose of this section to establish a 
Commission on Corporate Welfare.
    (b) Establishment.--There is hereby established an independent 
agency in the executive branch a commission to be known as the 
Commission on Corporate Welfare (hereafter in this section to be 
referred to as the ``Commission'').
    (c) Membership.--The Commission shall be composed of 7 members, 3 
whom shall be appointed by the President from the business community, 
one of whom shall be appointed by the Speaker of the House of 
Representatives, 1 of whom shall be appointed by the minority leader of 
the House of Representatives, one of whom shall be appointed by the 
majority leader of the Senate, and 1 of whom shall be appointed by the 
minority leader of the Senate. The members of the Commission shall be 
appointed not later than 30 days after enactment of this Act. Members 
of the Commission shall be appointed for the life of the Commission and 
any vacancy shall be filled in the manner of the original appointment. 
The Commission shall select a chairperson from among its members.
    (d) Meetings.--The Commission shall meet at the call of the chair, 
and 5 members shall constitute a quorum, but a lesser number may hold 
hearings.
    (e) Duties.--The Commission shall recommend changes in existing law 
relating to Federal expenditures and revenues that would reduce direct 
or indirect subsidies to corporations that in total produce a net 
savings that would fully offset the expenditures resulting from section 
3 of this Act, as determined by the Congressional Budget Office.
    (f) Report and Recommendations.--The Commission shall submit a 
final report to the President and the Congress on the Commission's 
recommendations within 6 months of the date of enactment of this Act.
    (g) Powers of the Commission.--
            (1) Hearings.--The Commission may hold hearings, sit and 
        act at such times and places, take such testimony, and receive 
        such evidence as the Commission considers advisable to carry 
        out the purposes of this part.
            (2) Information from federal agencies.--The Commission may 
        secure directly from any Federal department or agency such 
        information as the Commission considers necessary to carry out 
        the provisions of this section.
    (h) Authorization of Appropriations.--There are hereby authorized 
to be appropriated $1,000,000 to carry out this section for fiscal year 
1997. Amounts available under this section are authorized to remain 
available until expended.
    (i) Staff and Expenses.--The Chairperson of the Commission may 
without regard to the civil service laws and regulations, appoint and 
terminate an executive director and 6 staff members to enable the 
Commission to perform its duties. The employment of the executive 
director shall be subject to confirmation by the Commission. The 
Chairperson of the Commission shall fix the compensation of the 
executive director and staff members without regard to the provisions 
of chapter 51 and subchapter III of chapter 53 of title 5, United 
States Code, relating to classification of positions and General 
Schedule pay rates, except that the rate of pay for the executive 
director and such staff shall not exceed the rate payable for level 15 
of the General Schedule classified under section 5107 of such title.
    (j) Termination.--The Commission shall terminate 30 days after the 
completion of the final report.
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