[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3863 Received in Senate (RDS)]


109th CONGRESS
  1st Session
                                H. R. 3863


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 28, 2005

                                Received

_______________________________________________________________________

                                 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).

            Passed the House of Representatives September 27, 2005.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.