[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3863 Enrolled Bill (ENR)]


        H.R.3863

                       One Hundred Ninth Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
            the fourth day of January, two thousand and five


                                 An Act


 
  To provide the Secretary of Education with waiver authority for the 
 reallocation rules in the Campus-Based Aid programs, and to extend the 
deadline by which funds have to be reallocated to institutions of higher 
                  education due to a natural disaster.

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

SECTION 1. SHORT TITLE; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Natural Disaster 
Student Aid Fairness Act''.
    (b) References.--References in this Act to ``the Act'' are 
references to the Higher Education Act of 1965 (20 U.S.C. 1001 et 
seq.).

SEC. 2. ALLOCATION AND USE OF CAMPUS-BASED HIGHER EDUCATION ASSISTANCE.

    (a) Waiver of Matching Requirements.--Notwithstanding sections 
413C(a)(2), 443(b)(5), and 463(a)(2) of the Act (20 U.S.C. 1070b-
2(a)(2); 42 U.S.C. 2753(b)(5); 20 U.S.C. 1087cc(a)(2)), with respect to 
funds made available for academic years 2004-2005 and 2005-2006--
        (1) in the case of an institution of higher education located 
    in an area affected by a Gulf hurricane disaster, the Secretary 
    shall waive the requirement that a participating institution of 
    higher education provide a non-Federal share or a capital 
    contribution, as the case may be, to match Federal funds provided 
    to the institution for the programs authorized pursuant to subpart 
    3 of part A, part C, and part E of title IV of the Act; and
        (2) in the case of an institution of higher education that has 
    accepted for enrollment any affected students, the Secretary may 
    waive that matching requirement after considering the institution's 
    student population and existing resources, using consistent and 
    objective criteria.
    (b) Waiver of Reallocation Rules.--
        (1) Authority to reallocate.--Notwithstanding sections 413D(d), 
    442(d), and 462(I) of the Act (20 U.S.C. 1070b-3(d); 42 U.S.C. 
    2752(d); 20 U.S.C. 1087bb(I)), the Secretary shall--
            (A) reallocate any funds returned under any of those 
        sections that were allocated to institutions of higher 
        education for award year 2004-2005 to an institution of higher 
        education that is eligible under paragraph (2) of this 
        subsection; and
            (B) waive the allocation reduction for award year 2006-2007 
        for an institution returning more than 10 percent of its 
        allocation under any of those sections.
        (2) Eligible institutions for reallocation.--An institution of 
    higher education may receive a reallocation of excess allocations 
    under this subsection if the institution--
            (A) participates in the program for which excess 
        allocations are being reallocated; and
            (B)(i) is located in an area affected by a Gulf hurricane 
        disaster; or
            (ii) has accepted for enrollment any affected students in 
        academic year 2005-2006.
        (3) Basis of reallocation.--The Secretary shall determine the 
    manner in which excess allocations shall be reallocated to 
    institutions under paragraph (1), and shall give additional 
    consideration to the needs of institutions located in an area 
    affected by a Gulf hurricane disaster.
        (4) Additional waiver authority.--Notwithstanding any other 
    provision of law, in order to carry out this subsection, the 
    Secretary may waive or modify any statutory or regulatory provision 
    relating to the reallocation of excess allocations under subpart 3 
    of part A, part C, or part E of title IV of the Act in order to 
    ensure that assistance is received by affected institutions for 
    affected students.
    (c) Availability of Funds Date Extension.--Notwithstanding any 
other provision of law--
        (1) any funds available to the Secretary under sections 413A, 
    441, and 461 of the Act (20 U.S.C. 1070b; 42 U.S.C. 2751; 20 U.S.C. 
    1087aa) for which the period of availability would otherwise expire 
    on September 30, 2005, shall be available for obligation by the 
    Secretary until September 30, 2006 for the purposes of the programs 
    authorized pursuant to subpart 3 of part A, part C, and part E of 
    title IV of the Act, respectively; and
        (2) the Secretary may recall any funds allocated to an 
    institution of higher education for award year 2004-2005 under 
    section 413D, 442, or 462 of the Act that, if not returned to the 
    Secretary as excess allocations pursuant to any of those sections, 
    would otherwise lapse on September 30, 2005, and reallocate those 
    funds in accordance with subsection (b)(1).

SEC. 3. EMERGENCY DESIGNATION.

    Section 2 of this Act is designated as an emergency requirement 
pursuant to section 402 of H. Con. Res. 95 (109th Congress).

SEC. 4. TERMINATION OF AUTHORITY.

    The provisions of this Act shall cease to be effective one year 
after the date of the enactment of this Act.

SEC. 5. DEFINITIONS.

    In this Act:
        (1) Secretary.--The term ``Secretary'' means the Secretary of 
    Education.
        (2) Affected student.--The term ``affected student'' means an 
    individual who has applied for or received student financial 
    assistance under title IV of the Act, and who--
            (A) was enrolled or accepted for enrollment, as of August 
        29, 2005, at an institution of higher education in an area 
        affected by a Gulf hurricane disaster;
            (B) was a dependent student enrolled or accepted for 
        enrollment at an institution of higher education that is not in 
        an area affected by a Gulf hurricane disaster, but whose 
        parents resided or were employed, as of August 29, 2005, in an 
        area affected by a Gulf hurricane disaster; or
            (C) suffered direct economic hardship as a direct result of 
        a Gulf hurricane disaster, as determined by the Secretary using 
        consistent and objective criteria.
        (3) Gulf hurricane disaster.--The term ``Gulf hurricane 
    disaster'' means a major disaster that the President declared to 
    exist, in accordance with section 401 of the Robert T. Stafford 
    Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170), and 
    that was caused by Hurricane Katrina or Hurricane Rita.
        (4) Area affected by a gulf hurricane disaster.--The term 
    ``area affected by a Gulf hurricane disaster'' means a county or 
    parish, in an affected State, that has been designated by the 
    Federal Emergency Management Agency for disaster assistance for 
    individuals and households as a result of Hurricane Katrina or 
    Hurricane Rita.
        (5) Affected state.--The term ``affected State'' means the 
    State of Alabama, Louisiana, Mississippi, or Texas.
        (6) Institution of higher education.--The term ``institution of 
    higher education'' has the meaning given that term in section 102 
    of the Higher Education Act of 1965 (20 U.S.C. 1002).

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.