[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3408 Introduced in House (IH)]






108th CONGRESS
  1st Session
                                H. R. 3408

  To amend the Higher Education Act of 1965 to improve college access 
                    through experiential education.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 30, 2003

 Mr. Bishop of New York (for himself, Mr. George Miller of California, 
 Mr. Payne, Mr. Holt, Mr. Kildee, Mr. Case, Mr. Grijalva, Mr. Ryan of 
Ohio, Mr. Davis of Illinois, Mr. Andrews, Mr. Van Hollen, Ms. McCollum, 
 Mr. Owens, Mr. Kucinich, Mr. Hinojosa, Ms. Majette, Mrs. McCarthy of 
  New York, and Mr. Tierney) introduced the following bill; which was 
        referred to the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
  To amend the Higher Education Act of 1965 to improve college access 
                    through experiential 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 ``College and Job Opportunities for 
the Future Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Over 15 million students are enrolled in institutions 
        of higher education.
            (2) It is projected that the number of students enrolling 
        in higher education will increase by 20 percent by the year 
        2011. At that time, more students will be attending college 
        than in any other time in history.
            (3) Of those students already enrolled in undergraduate 
        higher education, 55 percent receive some type of student aid 
        averaging $6,265 per year, with 72 percent of full-time 
        undergraduates receiving some type of aid averaging $8,580 per 
        year.
            (4) Average tuition at both public and private four-year 
        colleges and universities rose 38 percent over the past ten 
        years, while educational grants, such as the Pell Grant, have 
        essentially remained stagnant.
            (5) In 1974, the maximum Pell Grant of $1,050 covered 31 
        percent of tuition and fees at a private, 4-year college and 60 
        percent at a public school. Today, the $4,050 maximum will 
        cover only 17 percent of private college costs and 42 percent 
        at a public college.
            (6) The average 4-year college graduate accumulates over 
        $16,000 in debt, with monthly payments of almost $200.
            (7) The nations' unemployment rate has risen to 6.4 
        percent, the highest level in 9 years, making it increasingly 
        difficult for college graduates to find jobs.
            (8) Cooperative education, a program that allows students 
        to work in paid, full- or part-time jobs, most often for 
        academic credit, offers college students a number of resources 
        to offset this admittedly adverse climate.
            (9) Salaries earned by students working on cooperative 
        education placements may be used to defray education-related 
        expenses, and reduce amounts students may be required to 
        borrow. In this way, cooperative education addresses, in a very 
        positive fashion, the important issues of access and 
        affordability.
            (10) Many, many studies have demonstrated that students who 
        participate in cooperative education placements persist through 
        to graduation in greater numbers than those who have not.
            (11) The skilled job training that cooperative education 
        students receive, coupled with their general exposure to the 
        world of work, makes students more attractive to potential 
        employers when they enter the job market. In fact, 
        approximately 80 percent of co-op students are offered 
        permanent positions by their cooperative education employer 
        upon graduation.
            (12) There are a number of goals associated with 
        reauthorization of the Higher Education Act. These goals 
        include improving access and affordability, improving 
        graduation rates, and improving employment prospects for 
        graduates. Cooperative education assists students in all of 
        these areas in a very positive and cost effective fashion.
            (13) Cooperative education is cost effective, in that it 
        represents a relatively modest expenditure of Federal resources 
        which provides students with access to more substantial private 
        resources.

SEC. 3. REENACTMENT OF TITLE VIII: COOPERATIVE EDUCATION.

    The Higher Education Act of 1965 (20 U.S.C. 1101 et seq.) is 
amended by adding at the end the following title:

                  ``TITLE VIII--COOPERATIVE EDUCATION

``SEC. 801. STATEMENT OF PURPOSE; DEFINITION.

    ``(a) Purpose.--It is the purpose of this title to award grants to 
institutions of higher education or combinations of such institutions 
to encourage such institutions to develop and make available to as many 
of their students as possible work experience that will aid such 
students in future careers and will enable such students to support 
themselves financially while in school.
    ``(b) Definition.--For the purpose of this title the term 
`cooperative education' means the provision of alternating or parallel 
periods of academic study and public or private employment in order to 
give students work experiences related to their academic or 
occupational objectives and an opportunity to earn the funds necessary 
for continuing and completing their education.

``SEC. 802. AUTHORIZATION OF APPROPRIATIONS; RESERVATIONS.

    ``(a) Appropriations Authorized.--There are authorized to be 
appropriated to carry out this title $30,000,000 for fiscal year 2004 
and such sums as may be necessary for each of the 5 succeeding fiscal 
years.
    ``(b) Reservations.--Of the amount appropriated in each fiscal 
year--
            ``(1) not less than 50 percent shall be available for 
        carrying out grants to institutions of higher education and 
        combinations of such institutions described in section 
        803(a)(1)(A) for cooperative education under section 803;
            ``(2) not less than 25 percent shall be available for 
        carrying out grants to institutions of higher education 
        described in section 803(a)(1)(B) for cooperative education 
        under section 803;
            ``(3) not to exceed 11 percent shall be available for 
        demonstration projects under paragraph (1) of section 804(a);
            ``(4) not to exceed 11 percent shall be available for 
        training and resource centers under paragraph (2) of section 
        804(a); and
            ``(5) not to exceed 3 percent shall be available for 
        research under paragraph (3) of section 804(a).
    ``(c) Availability of Appropriations.--Appropriations under this 
title shall not be available for the payment of compensation of 
students for employment by employers under arrangements pursuant to 
this title.

``SEC. 803. GRANTS FOR COOPERATIVE EDUCATION.

    ``(a) Grants Authorized.--
            ``(1) In general.--The Secretary is authorized--
                    ``(A) from the amount available under section 
                802(b)(1) in each fiscal year and in accordance with 
                the provisions of this title, to make grants to 
                institutions of higher education or combinations of 
                such institutions that have not received a grant under 
                this paragraph in the 10-year period preceding the date 
                for which a grant under this section is requested to 
                pay the Federal share of the cost of planning, 
                establishing, expanding, or carrying out programs of 
                cooperative education by such institutions or 
                combinations of institutions; and
                    ``(B) from the amount available under section 
                802(b)(2) in each fiscal year and in accordance with 
                the provisions of this title, to make grants to 
                institutions of higher education that are operating an 
                existing cooperative education program as determined by 
                the Secretary to pay the cost of planning, 
                establishing, expanding, or carrying out programs of 
                cooperative education by such institutions.
            ``(2) Program requirement.--Cooperative education programs 
        assisted under this section shall provide alternating or 
        parallel periods of academic study and of public or private 
        employment, giving students work experience related to their 
        academic or occupational objectives and the opportunity to earn 
        the funds necessary for continuing and completing their 
        education.
            ``(3) Amount of grants.--
                    ``(A) The amount of each grant awarded pursuant to 
                paragraph (1)(A) to any institution of higher education 
                or combination of such institutions in any fiscal year 
                shall not exceed $500,000.
                    ``(B) (i) Except as provided in clauses (ii) and 
                (iii), the Secretary shall award grants in each fiscal 
                year to each institution of higher education described 
                in paragraph (1)(B) that has an application approved 
                under subsection (b) in an amount which bears the same 
                ratio to the amount reserved pursuant to section 
                802(b)(2) for such fiscal year as the number of 
                unduplicated students placed in cooperative education 
                jobs during the preceding fiscal year (other than 
                cooperative education jobs under section 804 and as 
                determined by the Secretary) by such institution of 
                higher education bears to the total number of all such 
                students placed in such jobs during the preceding 
                fiscal year by all such institutions.
                    ``(ii) No institution of higher education shall 
                receive a grant pursuant to paragraph (1)(B) in any 
                fiscal year in an amount which exceeds 25 percent of 
                such institution's cooperative education program's 
                personnel and operating budget for the preceding fiscal 
                year.
                    ``(iii) The minimum annual grant amount which an 
                institution of higher education is eligible to receive 
                under paragraph (1)(B) is $1,000 and the maximum annual 
                grant amount is $75,000.
            ``(4) Limitation.--The Secretary shall not award grants 
        pursuant to paragraphs (1)(A) and (1)(B) to the same 
        institution of higher education or combination of such 
        institution in any one fiscal year.
            ``(5) Uses.--Grants under paragraph (1)(B) shall be used 
        exclusively--
                    ``(A) to expand the quality and participation of a 
                cooperative education program;
                    ``(B) for outreach in new curricular areas; and
                    ``(C) for outreach to potential participants 
                including underrepresented and nontraditional 
                populations.
    ``(b) Applications.--Each institution of higher education or 
combination of such institutions desiring to receive a grant under this 
section shall submit an application to the Secretary at such time and 
in such manner as the Secretary shall prescribe. Each such application 
shall--
            ``(1) set forth the program or activities for which a grant 
        is authorized under this section;
            ``(2) specify each portion of such program or activities 
        which will be performed by a nonprofit organization or 
        institution other than the applicant and the compensation to be 
        paid for such performance;
            ``(3) provide that the applicant will expend during such 
        fiscal year for the purpose of such program or activities not 
        less than the amount expended for such purpose during the 
        previous fiscal year;
            ``(4) describe the plans which the applicant will carry out 
        to assure, and contain a formal statement of the institution's 
        commitment which assures, that the applicant will continue the 
        cooperative education program beyond the 5-year period of 
        Federal assistance described in subsection (c)(1) at a level 
        which is not less than the total amount expended for such 
        program during the first year such program was assisted under 
        this section;
            ``(5) provide that, in the case of an institution of higher 
        education that provides a 2-year program which is acceptable 
        for full credit toward a bachelor's degree, the cooperative 
        education program will be available to students who are 
        certificate or associate degree candidates and who carry at 
        least one-half the normal full-time academic workload;
            ``(6) provide that the applicant will--
                    ``(A) make such reports as may be essential to 
                ensure that the applicant is complying with the 
                provisions of this section, including the reports for 
                the second and each succeeding fiscal year for which 
                the applicant receives a grant with respect to the 
                impact of the cooperative education program in the 
                previous fiscal year, including--
                            ``(i) the number of unduplicated student 
                        applicants in the cooperative education 
                        program;
                            ``(ii) the number of unduplicated students 
                        placed in cooperative education jobs;
                            ``(iii) the number of employers who have 
                        hired cooperative education students;
                            ``(iv) the income for students derived from 
                        working in cooperative education jobs; and
                            ``(v) the increase or decrease in the 
                        number of unduplicated students placed in 
                        cooperative education jobs in each fiscal year 
                        compared to the previous fiscal year; and
                    ``(B) keep such records as are essential to ensure 
                that the applicant is complying with the provisions of 
                this title, including the notation of cooperative 
                education employment on the student's transcript;
            ``(7) describe the extent to which programs in the academic 
        discipline for which the application is made have had a 
        favorable reception by public and private sector employers;
            ``(8) describe the extent to which the institution is 
        committed to extending cooperative education on an institution-
        wide basis for all students who can benefit;
            ``(9) describe the plans that the applicant will carry out 
        to evaluate the applicant's cooperative education program at 
        the end of the grant period;
            ``(10) provide for such fiscal control and fund accounting 
        procedures as may be necessary to assure proper disbursement 
        of, and accounting for, Federal funds paid to the applicant 
        under this title;
            ``(11) demonstrate a commitment to serving all underserved 
        populations; and
            ``(12) include such other information as is essential to 
        carry out the provisions of this title.
    ``(c) Duration of Grants; Federal Share.--
            ``(1) Duration of grants.--No individual institution of 
        higher education may receive, individually or as a participant 
        in a combination of such institutions--
                    ``(A) a grant pursuant to subsection (a)(1)(A) for 
                more than 5 fiscal years; or
                    ``(B) a grant pursuant to subsection (a)(1)(B) for 
                more than 5 fiscal years.
            ``(2) Federal share.--The Federal share of a grant under 
        section 803(a)(1)(A) may not exceed--
                    ``(A) 85 percent of the cost of carrying out the 
                program or activities described in the application in 
                the first year the applicant receives a grant under 
                this section;
                    ``(B) 70 percent of such cost in the second such 
                year;
                    ``(C) 55 percent of such cost in the third such 
                year;
                    ``(D) 40 percent of such cost in the fourth such 
                year; and
                    ``(E) 25 percent of such cost in the fifth such 
                year.
            ``(3) Special rule.--Any provision of law to the contrary 
        notwithstanding, the Secretary shall not waive the provisions 
        of this subsection.
    ``(d) Maintenance of Effort.--If the Secretary determines that a 
recipient of funds under this section has failed to maintain the fiscal 
effort described in subsection (b)(3), then the Secretary may elect not 
to make grant payments under this section to such recipient.
    ``(e) Factors for Special Consideration of Applications.--
            ``(1) In general.--In approving applications under this 
        section, the Secretary shall give special consideration to 
        applications from institutions of higher education or 
        combinations of such institutions for programs which show the 
        greatest promise of success because of--
                    ``(A) the extent to which programs in the academic 
                discipline with respect to which the application is 
                made have had a favorable reception by public and 
                private sector employers;
                    ``(B) the strength of the commitment of the 
                institution of higher education or combination of such 
                institutions to cooperative education as demonstrated 
                by the plans and formalized institutional commitment 
                statement which such institution or combination has 
                made to continue the program after the termination of 
                Federal financial assistance,
                    ``(C) the extent to which the institution or 
                combination is committed to extending cooperative 
                education for all students who can benefit, and
                    ``(D) such other factors as are consistent with the 
                purposes of this section.
            ``(2) Additional special consideration.--The Secretary 
        shall also give special consideration to applications from 
        institutions of higher education or combinations of such 
        institutions which demonstrate a commitment to serving all 
        underserved populations.

``SEC. 804. DEMONSTRATION AND INNOVATION PROJECTS; TRAINING AND 
              RESOURCE CENTERS; AND RESEARCH.

    ``(a) Authorization.--The Secretary is authorized, in accordance 
with the provisions of this section, to make grants and enter into 
contracts for--
            ``(1) the conduct of demonstration projects designed to 
        demonstrate or determine the feasibility or value of innovative 
        methods of cooperative education from the amounts available in 
        each fiscal year under section 802(b)(3);
            ``(2) the conduct of training and resource centers designed 
        to--
                    ``(A) train personnel in the field of cooperative 
                education;
                    ``(B) improve materials used in cooperative 
                education programs if such improvement is conducted in 
                conjunction with other activities described in this 
                paragraph;
                    ``(C) furnish technical assistance to institutions 
                of higher education to increase the potential of the 
                institution to continue to conduct a cooperative 
                education program without Federal assistance;
                    ``(D) encourage model cooperative education 
                programs which furnish education and training in 
                occupations in which there is a national need;
                    ``(E) support partnerships under which an 
                institution carrying out a comprehensive cooperative 
                education program joins with one or more institutions 
                of higher education in order to (i) assist the 
                institution other than the comprehensive cooperative 
                education institution to develop and expand an existing 
                program of cooperative education, or (ii) establish and 
                improve or expand comprehensive cooperative education 
                programs; and
                    ``(F) encourage model cooperative education 
                programs in the fields of science and mathematics for 
                women and minorities who are underrepresented in such 
                fields
        from the amounts available in each fiscal year under section 
        802(b)(4); and
            ``(3) the conduct of research relating to cooperative 
        education, from the amounts available in each fiscal year under 
        section 802(b)(5).
    ``(b) Administrative Provision.--
            ``(1) In general.--To carry out this section, the Secretary 
        may--
                    ``(A) make grants to or contracts with institutions 
                of higher education, or combinations of such 
                institutions; and
                    ``(B) make grants to or contracts with other public 
                or private nonprofit agencies or organizations, 
                whenever such grants or contracts will make an 
                especially significant contribution to attaining the 
                objectives of this section.
            ``(2) Limitation.--
                    ``(A) The Secretary may not use more than 3 percent 
                of the amount appropriated to carry out this section in 
                each fiscal year to enter into contracts described in 
                paragraph (1)(A).
                    ``(B) The Secretary may use not more than 3 percent 
                of the amount appropriated to carry out this section in 
                each fiscal year to enter into contracts described in 
                paragraph (1)(B).
    ``(c) Supplement not Supplant.--A recipient of a grant or contract 
under this section may use the funds provided only so as to supplement 
and, to the extent possible, increase the level of funds that would, in 
the absence of such funds, be made available from non-Federal sources 
to carry out the activities supported by such grant or contract, and in 
no case to supplant such funds from non-Federal sources.''.
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