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	<form>

		<congress>109th CONGRESS *********** THIS BILL HAS BEEN CONVERTED TO XML

		  USING THE CONVERSION PROGRAM &amp; HAS NOT BEEN PROOFREAD

		  ******************</congress>

		<session>1st Session</session>

		<legis-num>S. 1932</legis-num>

		<current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber>

		<legis-type>AN ACT</legis-type>

		<official-title>To provide for reconciliation pursuant to section 202(a)

		  of the concurrent resolution on the budget for fiscal year 2006 (H. Con. Res.

		  95).</official-title>

	</form>

	<legis-body>

		<section id="ID2C33737EDDF843938BF33D168DD3D76A" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote>Deficit

			 Reduction Omnibus Reconciliation Act of 2005</quote>.</text>

		</section><section id="ID674C423791284B14B8AAE0065B8A6E4A"><enum>2.</enum><header>Table of

			 Contents</header><text display-inline="no-display-inline">The table of contents

			 for this Act is as follows:</text>

			<toc regeneration="no-regeneration">

				<toc-entry level="section">Sec. 1. Short title</toc-entry>

				<toc-entry level="section">Sec. 2. Table of Contents</toc-entry>

				<toc-entry level="title">TITLE I—COMMITTEE ON AGRICULTURE, NUTRITION,

				AND FORESTRY</toc-entry>

				<toc-entry level="section">Sec. 1001. Short title</toc-entry>

				<toc-entry level="subtitle">Subtitle A—Commodity Programs</toc-entry>

				<toc-entry level="section">Sec. 1101. Reduction of commodity program

				payments</toc-entry>

				<toc-entry level="section">Sec. 1102. Forfeiture penalty for

				nonrecourse sugar loans</toc-entry>

				<toc-entry level="section">Sec. 1103. Cotton competitiveness

				provisions</toc-entry>

				<toc-entry level="section">Sec. 1104. National dairy market loss

				payments</toc-entry>

				<toc-entry level="section">Sec. 1105. Advance direct

				payments</toc-entry>

				<toc-entry level="subtitle">Subtitle B—Conservation</toc-entry>

				<toc-entry level="section">Sec. 1201. Conservation reserve

				program</toc-entry>

				<toc-entry level="section">Sec. 1202. Conservation security

				program</toc-entry>

				<toc-entry level="section">Sec. 1203. Environmental quality

				incentives program</toc-entry>

				<toc-entry level="subtitle">Subtitle C—Miscellaneous</toc-entry>

				<toc-entry level="section">Sec. 1301. Initiative for future

				agriculture and food systems</toc-entry>

				<toc-entry level="title">TITLE II—COMMITTEE ON BANKING, HOUSING, AND

				URBAN AFFAIRS</toc-entry>

				<toc-entry level="subtitle">Subtitle A—Merger of the Deposit

				Insurance Funds</toc-entry>

				<toc-entry level="section">Sec. 2001. Short title</toc-entry>

				<toc-entry level="section">Sec. 2002. Definitions</toc-entry>

				<toc-entry level="section">Sec. 2003. Merger of BIF and

				SAIF</toc-entry>

				<toc-entry level="section">Sec. 2004. Establishment of the Deposit

				Insurance Fund</toc-entry>

				<toc-entry level="section">Sec. 2005. Technical and conforming

				amendments to the <act-name parsable-cite="FDIA">Federal Deposit Insurance

				Act</act-name></toc-entry>

				<toc-entry level="section">Sec. 2006. Other technical and conforming

				amendments</toc-entry>

				<toc-entry level="section">Sec. 2007. Effective date</toc-entry>

				<toc-entry level="subtitle">Subtitle B—Deposit Insurance

				Modernization and Improvement</toc-entry>

				<toc-entry level="section">Sec. 2011. Short title</toc-entry>

				<toc-entry level="section">Sec. 2012. Changes to Federal deposit

				insurance coverage</toc-entry>

				<toc-entry level="section">Sec. 2013. Designated reserve

				ratio</toc-entry>

				<toc-entry level="section">Sec. 2014. Assessment credits and

				dividends</toc-entry>

				<toc-entry level="section">Sec. 2015. Assessments-related records

				retention and statute of limitations</toc-entry>

				<toc-entry level="section">Sec. 2016. Increase in fees for late

				assessment payments</toc-entry>

				<toc-entry level="section">Sec. 2017. Regulations

				required</toc-entry>

				<toc-entry level="section">Sec. 2018. Studies of potential changes to

				the Federal deposit insurance system</toc-entry>

				<toc-entry level="section">Sec. 2019. Effective date</toc-entry>

				<toc-entry level="subtitle">Subtitle C—FHA Asset

				Disposition</toc-entry>

				<toc-entry level="section">Sec. 2021. Short title</toc-entry>

				<toc-entry level="section">Sec. 2022. Definitions</toc-entry>

				<toc-entry level="section">Sec. 2023. Appropriated funds requirement

				for below market sales</toc-entry>

				<toc-entry level="section">Sec. 2024. Up-front grants</toc-entry>

				<toc-entry level="section">Sec. 2025. Authorization of

				appropriations</toc-entry>

				<toc-entry level="subtitle">Subtitle D—Adaptive Housing

				Assistance</toc-entry>

				<toc-entry level="section">Sec. 2031. Short title</toc-entry>

				<toc-entry level="section">Sec. 2032. Adoptive housing assistance for

				disabled veterans residing temporarily in housing owned by a family

				member</toc-entry>

				<toc-entry level="section">Sec. 2033. GAO reports</toc-entry>

				<toc-entry level="title">TITLE III—COMMITTEE ON COMMERCE, SCIENCE,

				AND TRANSPORTATION</toc-entry>

				<toc-entry level="section">Sec. 3001. Short title</toc-entry>

				<toc-entry level="section">Sec. 3002. Analog spectrum recovery; hard

				deadline</toc-entry>

				<toc-entry level="section">Sec. 3003. Auction of recovered

				spectrum</toc-entry>

				<toc-entry level="section">Sec. 3004. Supplemental license

				fees</toc-entry>

				<toc-entry level="section">Sec. 3005. Digital Transition and Public

				Safety Fund</toc-entry>

				<toc-entry level="section">Sec. 3005A. Communication system

				grants</toc-entry>

				<toc-entry level="section">Sec. 3006. Essential air service

				program</toc-entry>

				<toc-entry level="title">TITLE IV—ENERGY AND NATURAL

				RESOURCES</toc-entry>

				<toc-entry level="section">Sec. 4001. Oil and gas leasing

				program</toc-entry>

				<toc-entry level="title">TITLE V—COMMITTEE ON ENVIRONMENT AND PUBLIC

				WORKS</toc-entry>

				<toc-entry level="section">Sec. 5001. Technical corrections to

				SAFETEA–LU</toc-entry>

				<toc-entry level="title">TITLE VI—COMMITTEE ON FINANCE</toc-entry>

				<toc-entry level="section">Sec. 6000. Amendments to

				<act-name parsable-cite="SSA">Social Security Act</act-name></toc-entry>

				<toc-entry level="subtitle">Subtitle A—Medicaid</toc-entry>

				<toc-entry level="chapter">Chapter 1—Payment For Prescription Drugs

				Under Medicaid</toc-entry>

				<toc-entry level="section">Sec. 6001. Pharmacy

				reimbursement</toc-entry>

				<toc-entry level="section">Sec. 6002. Increase in rebates for covered

				outpatient drugs</toc-entry>

				<toc-entry level="section">Sec. 6003. Improved regulation of

				authorized generic drugs</toc-entry>

				<toc-entry level="section">Sec. 6004. Collection of rebates for

				certain physician administered drugs</toc-entry>

				<toc-entry level="chapter">Chapter 2—Long-Term Care Under

				Medicaid</toc-entry>

				<toc-entry level="section">Sec. 6011. Reform of Medicaid asset

				transfer rules</toc-entry>

				<toc-entry level="section">Sec. 6012. State long-term care

				partnerships</toc-entry>

				<toc-entry level="chapter">Chapter 3—Eliminating Fraud, Waste, and

				Abuse in Medicaid</toc-entry>

				<toc-entry level="section">Sec. 6021. Enhancing third party

				recovery</toc-entry>

				<toc-entry level="section">Sec. 6022. Limitation on use of

				contingency fee arrangements</toc-entry>

				<toc-entry level="section">Sec. 6023. Encouraging the enactment of

				State False Claims Acts</toc-entry>

				<toc-entry level="section">Sec. 6024. Employee education about False

				Claims Recovery</toc-entry>

				<toc-entry level="section">Sec. 6025. Prohibition on restocking and

				double billing of prescription drugs</toc-entry>

				<toc-entry level="section">Sec. 6026. Medicaid Integrity

				Program</toc-entry>

				<toc-entry level="chapter">Chapter 4—State Financing Under

				Medicaid</toc-entry>

				<toc-entry level="section">Sec. 6031. Reforms of targeted case

				management</toc-entry>

				<toc-entry level="section">Sec. 6032. Temporary Federal matching

				payments for Federal assistance</toc-entry>

				<toc-entry level="section">Sec. 6033. Managed care organization

				provider tax reform</toc-entry>

				<toc-entry level="section">Sec. 6034. Inclusion of podiatrists as

				physicians</toc-entry>

				<toc-entry level="section">Sec. 6035. DSH allotment for the District

				of Columbia</toc-entry>

				<toc-entry level="section">Sec. 6036. Demonstration project regarding

				Medicaid reimbursement for stabilization of emergency medical conditions by

				non-publicly owned or operated institutions for mental diseases</toc-entry>

				<toc-entry level="section">Sec. 6037. Limitation on severe reduction

				in the Medicaid FMAP for fiscal year 2006</toc-entry>

				<toc-entry level="section">Sec. 6038. Extension of prescription drug

				rebates to enrollees in Medicaid managed care organizations</toc-entry>

				<toc-entry level="section">Sec. 6039. Extension of the Medicare Part

				A and B payment holiday</toc-entry>

				<toc-entry level="section">Sec. 6039A. Sense of the

				Senate</toc-entry>

				<toc-entry level="section">Sec. 6039B. Authority to continue

				providing certain adult day health care services or medical adult day care

				services</toc-entry>

				<toc-entry level="section">Sec. 6039C. Demonstration project

				regarding Medicaid coverage of low-income HIV-infected individuals</toc-entry>

				<toc-entry level="section">Sec. 6039D. Additional increase in rebate

				for single source and innovator multiple source drugs</toc-entry>

				<toc-entry level="chapter">Chapter 5—Improving the Medicaid and State

				Children’s Health Insurance Programs</toc-entry>

				<toc-entry level="subchapter">SUBCHAPTER A—FAMILY OPPORTUNITY

				ACT</toc-entry>

				<toc-entry level="section">Sec. 6041. Short title of

				subchapter</toc-entry>

				<toc-entry level="section">Sec. 6042. Opportunity for families of

				disabled children to purchase Medicaid coverage for such children</toc-entry>

				<toc-entry level="section">Sec. 6043. Demonstration projects

				regarding home and community-based alternatives to psychiatric residential

				treatment facilities for children</toc-entry>

				<toc-entry level="section">Sec. 6044. Development and support of

				family-to-family health information centers</toc-entry>

				<toc-entry level="section">Sec. 6045. Restoration of Medicaid

				eligibility for certain SSI beneficiaries</toc-entry>

				<toc-entry level="subchapter">SUBCHAPTER B—STATE CHILDREN’S HEALTH

				INSURANCE PROGRAM</toc-entry>

				<toc-entry level="section">Sec. 6051. Rules for availability,

				redistribution, and extended availability of allotments for fiscal years 2003,

				2004, and 2005</toc-entry>

				<toc-entry level="section">Sec. 6052. Authority to use up to 10

				percent of fiscal year 2006 and 2007 allotments for outreach</toc-entry>

				<toc-entry level="section">Sec. 6053. Prohibition against covering

				nonpregnant childless adults with SCHIP funds</toc-entry>

				<toc-entry level="section">Sec. 6054. Continued authority for

				qualifying States to use certain funds for Medicaid expenditures</toc-entry>

				<toc-entry level="section">Sec. 6055. Grants to promote innovative

				outreach and enrollment under Medicaid and SCHIP</toc-entry>

				<toc-entry level="subchapter">SUBCHAPTER C—MONEY FOLLOWS THE PERSON

				REBALANCING DEMONSTRATION</toc-entry>

				<toc-entry level="section">Sec. 6061. Money Follows the Person

				Rebalancing Demonstration</toc-entry>

				<toc-entry level="chapter">Chapter 6—Option for Hurricane Katrina

				Disaster States To Delay Application</toc-entry>

				<toc-entry level="section">Sec. 6071. Option for Hurricane Katrina

				disaster States to delay application</toc-entry>

				<toc-entry level="subtitle">Subtitle B—Medicare</toc-entry>

				<toc-entry level="section">Sec. 6101. Improvements to the

				Medicare-dependent hospital (MDH) program</toc-entry>

				<toc-entry level="section">Sec. 6102. Reduction in payments to

				skilled nursing facilities for bad debt</toc-entry>

				<toc-entry level="section">Sec. 6103. Two-year extension of the 50

				percent compliance threshold used to determine whether a hospital or unit of a

				hospital is an inpatient rehabilitation facility under the Medicare

				program</toc-entry>

				<toc-entry level="section">Sec. 6104. Prohibition on physician self

				referrals to physician owned, limited service hospitals</toc-entry>

				<toc-entry level="section">Sec. 6105. Minimum update for physicians’

				services for 2006</toc-entry>

				<toc-entry level="section">Sec. 6106. One-year extension of hold

				harmless provisions for small rural hospitals and sole community hospitals

				under the prospective payment system for hospital outpatient department

				services</toc-entry>

				<toc-entry level="section">Sec. 6107. Update to the composite rate

				component of the basic case-mix adjusted prospective payment system for

				dialysis services</toc-entry>

				<toc-entry level="section">Sec. 6108. One-year extension of

				moratorium on therapy caps</toc-entry>

				<toc-entry level="section">Sec. 6109. Transfer of title of certain

				DME to patient after 13-month rental</toc-entry>

				<toc-entry level="section">Sec. 6110. Establishment of Medicare

				value-based purchasing programs</toc-entry>

				<toc-entry level="section">Sec. 6111. Phase-out of risk adjustment

				budget neutrality in determining the amount of payments to Medicare Advantage

				organizations</toc-entry>

				<toc-entry level="section">Sec. 6112. Elimination of Medicare

				Advantage regional plan stabilization fund</toc-entry>

				<toc-entry level="section">Sec. 6113. Rural PACE provider grant

				program</toc-entry>

				<toc-entry level="section">Sec. 6114. Waiver of part B late

				enrollment penalty for certain international volunteers</toc-entry>

				<toc-entry level="section">Sec. 6115. Delivery of services at

				federally qualified health centers</toc-entry>

				<toc-entry level="section">Sec. 6116. Technical correction regarding

				purchase agreements for power-driven wheelchairs</toc-entry>

				<toc-entry level="section">Sec. 6117. Medicare coverage of ultrasound

				screening for abdominal aortic aneurysms; national educational and information

				campaign</toc-entry>

				<toc-entry level="section">Sec. 6118. Improving patient access to,

				and utilization of, colorectal cancer screening under medicare</toc-entry>

				<toc-entry level="section">Sec. 6119. Coverage of marriage and family

				therapist services and mental health counselor services under part b of the

				medicare program</toc-entry>

				<toc-entry level="section">Sec. 6120. Quality measurement systems

				amendments</toc-entry>

				<toc-entry level="title">TITLE VII—COMMITTEE ON HEALTH, EDUCATION,

				LABOR, AND PENSIONS</toc-entry>

				<toc-entry level="subtitle">Subtitle A—Education

				Provisions</toc-entry>

				<toc-entry level="chapter">Chapter 1—Education</toc-entry>

				<toc-entry level="section">Sec. 7101. Provisional grant assistance

				program</toc-entry>

				<toc-entry level="section">Sec. 7102. National smart

				grants</toc-entry>

				<toc-entry level="section">Sec. 7103. Loan limits</toc-entry>

				<toc-entry level="section">Sec. 7104. Plus loan interest rates and

				zero special allowance payment</toc-entry>

				<toc-entry level="section">Sec. 7105. Reduction of lender insurance

				reimbursement rates</toc-entry>

				<toc-entry level="section">Sec. 7106. Guaranty agency origination

				fee</toc-entry>

				<toc-entry level="section">Sec. 7107. Deferment of student loans for

				military service</toc-entry>

				<toc-entry level="section">Sec. 7108. Recovery through

				consolidation</toc-entry>

				<toc-entry level="section">Sec. 7109. Single holder rule</toc-entry>

				<toc-entry level="section">Sec. 7110. Default reduction

				program</toc-entry>

				<toc-entry level="section">Sec. 7111. Requirements for disbursements

				of student loans</toc-entry>

				<toc-entry level="section">Sec. 7112. Special insurance and

				reinsurance rules</toc-entry>

				<toc-entry level="section">Sec. 7113. School as lender

				moratorium</toc-entry>

				<toc-entry level="section">Sec. 7114. Permanent reduction of special

				allowance payments for loans from the proceeds of tax exempt issues</toc-entry>

				<toc-entry level="section">Sec. 7115. Special allowances</toc-entry>

				<toc-entry level="section">Sec. 7116. Origination fee</toc-entry>

				<toc-entry level="section">Sec. 7117. Income contingent repayment for

				public sector employees</toc-entry>

				<toc-entry level="section">Sec. 7118. Family contribution for

				dependent students</toc-entry>

				<toc-entry level="section">Sec. 7119. Family contribution for

				independent students without dependents other than a spouse</toc-entry>

				<toc-entry level="section">Sec. 7120. Family contribution for

				independent students with dependents other than a spouse</toc-entry>

				<toc-entry level="section">Sec. 7121. Regulations; updated

				tables</toc-entry>

				<toc-entry level="section">Sec. 7122. Simplified need test and

				automatic zero improvements</toc-entry>

				<toc-entry level="section">Sec. 7123. Loan forgiveness for

				teachers</toc-entry>

				<toc-entry level="section">Sec. 7124. Effective date</toc-entry>

				<toc-entry level="chapter">Chapter 2—Hurricane Katrina Higher

				Education Recovery</toc-entry>

				<toc-entry level="section">Sec. 7151. Short title</toc-entry>

				<toc-entry level="section">Sec. 7152. Definitions</toc-entry>

				<toc-entry level="section">Sec. 7153. Waiver authority and

				modifications to certain provisions of the <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name></toc-entry>

				<toc-entry level="section">Sec. 7154. General waiver authority and

				required consultation</toc-entry>

				<toc-entry level="section">Sec. 7155. Notice of waivers,

				modifications, or extensions</toc-entry>

				<toc-entry level="section">Sec. 7156. Regulatory requirements

				inapplicable</toc-entry>

				<toc-entry level="section">Sec. 7157. Department of Education

				Inspector General audit and report</toc-entry>

				<toc-entry level="section">Sec. 7158. Sunset provision</toc-entry>

				<toc-entry level="subtitle">Subtitle B—Pension Benefit Guaranty

				Corporation Premiums</toc-entry>

				<toc-entry level="section">Sec. 7201. Amendments to the

				<act-name parsable-cite="ERISA">Employee Retirement Income Security Act of

				1974</act-name></toc-entry>

				<toc-entry level="subtitle">Subtitle C—Higher Education

				Reauthorization</toc-entry>

				<toc-entry level="chapter">Chapter 1—Short Title; References; General

				Effective Date</toc-entry>

				<toc-entry level="section">Sec. 7301. Short title</toc-entry>

				<toc-entry level="section">Sec. 7302. References</toc-entry>

				<toc-entry level="section">Sec. 7303. General effective

				date</toc-entry>

				<toc-entry level="chapter">Chapter 2—General Provisions</toc-entry>

				<toc-entry level="section">Sec. 7311. Additional

				definitions</toc-entry>

				<toc-entry level="section">Sec. 7312. General definition of

				institution of higher education</toc-entry>

				<toc-entry level="section">Sec. 7313. Definition of institution of

				higher education for purposes of title IV programs</toc-entry>

				<toc-entry level="section">Sec. 7314. Protection of student speech

				and association rights</toc-entry>

				<toc-entry level="section">Sec. 7315. National advisory committee on

				institutional quality and integrity</toc-entry>

				<toc-entry level="section">Sec. 7316. Drug and alcohol abuse

				prevention</toc-entry>

				<toc-entry level="section">Sec. 7317. Prior rights and

				obligations</toc-entry>

				<toc-entry level="section">Sec. 7318. Cost of higher

				education</toc-entry>

				<toc-entry level="section">Sec. 7319. Performance-based organization

				for the delivery of Federal student financial assistance</toc-entry>

				<toc-entry level="section">Sec. 7320. Procurement

				flexibility</toc-entry>

				<toc-entry level="chapter">Chapter 3—Teacher Quality

				Enhancement</toc-entry>

				<toc-entry level="section">Sec. 7331. Teacher quality enhancement

				grants for States and partnerships</toc-entry>

				<toc-entry level="chapter">Chapter 4—Institutional Aid</toc-entry>

				<toc-entry level="section">Sec. 7341. Program purpose</toc-entry>

				<toc-entry level="section">Sec. 7342. Definitions;

				eligibility</toc-entry>

				<toc-entry level="section">Sec. 7343. American Indian tribally

				controlled colleges and universities</toc-entry>

				<toc-entry level="section">Sec. 7344. Alaska Native and Native

				Hawaiian-serving institutions</toc-entry>

				<toc-entry level="section">Sec. 7345. Native American-serving,

				nontribal institutions</toc-entry>

				<toc-entry level="section">Sec. 7346. Part B definitions</toc-entry>

				<toc-entry level="section">Sec. 7347. Grants to

				institutions</toc-entry>

				<toc-entry level="section">Sec. 7348. Allotments to

				institutions</toc-entry>

				<toc-entry level="section">Sec. 7349. Professional or graduate

				institutions</toc-entry>

				<toc-entry level="section">Sec. 7350. Authorization of

				appropriations</toc-entry>

				<toc-entry level="section">Sec. 7351. Technical

				corrections</toc-entry>

				<toc-entry level="chapter">Chapter 5—Student Assistance</toc-entry>

				<toc-entry level="subchapter">SUBCHAPTER A—GRANTS TO STUDENTS IN

				ATTENDANCE AT INSTITUTIONS OF HIGHER EDUCATION</toc-entry>

				<toc-entry level="section">Sec. 7361. Federal Pell Grants</toc-entry>

				<toc-entry level="section">Sec. 7362. Federal TRIO

				Programs</toc-entry>

				<toc-entry level="section">Sec. 7363. Gaining Early Awareness and

				Readiness for Undergraduate Programs</toc-entry>

				<toc-entry level="section">Sec. 7364. Academic Achievement Incentive

				Scholarships</toc-entry>

				<toc-entry level="section">Sec. 7365. Federal Supplemental

				Educational Opportunity Grants</toc-entry>

				<toc-entry level="section">Sec. 7366. Leveraging Educational

				Assistance Partnership Program</toc-entry>

				<toc-entry level="section">Sec. 7367. Special programs for students

				whose families are engaged in migrant and seasonal farmwork</toc-entry>

				<toc-entry level="section">Sec. 7368. Robert C. Byrd Honors

				Scholarship Program</toc-entry>

				<toc-entry level="section">Sec. 7369. Child care access means parents

				in school</toc-entry>

				<toc-entry level="section">Sec. 7370. Learning anytime anywhere

				partnerships</toc-entry>

				<toc-entry level="subchapter">SUBCHAPTER B—FEDERAL FAMILY EDUCATION

				LOAN PROGRAM</toc-entry>

				<toc-entry level="section">Sec. 7381. Extension of

				authorities</toc-entry>

				<toc-entry level="section">Sec. 7382. Federal payments to reduce

				student interest costs</toc-entry>

				<toc-entry level="section">Sec. 7383. Federal consolidation

				loans</toc-entry>

				<toc-entry level="section">Sec. 7384. Default reduction

				program</toc-entry>

				<toc-entry level="section">Sec. 7385. Requirements for disbursement

				of student loans</toc-entry>

				<toc-entry level="section">Sec. 7386. Reports to credit bureaus and

				institutions of higher education</toc-entry>

				<toc-entry level="section">Sec. 7387. Common forms and

				formats</toc-entry>

				<toc-entry level="section">Sec. 7388. Student loan information by

				eligible borrowers</toc-entry>

				<toc-entry level="section">Sec. 7389. Consumer education

				information</toc-entry>

				<toc-entry level="section">Sec. 7390. Definition of eligible

				lender</toc-entry>

				<toc-entry level="section">Sec. 7390A. Repayment by the Secretary of

				loans of bankrupt, deceased, or disabled borrowers; treatment of borrowers

				attending schools that fail to provide a refund, attending closed schools, or

				falsely certified as eligible to borrow</toc-entry>

				<toc-entry level="subchapter">SUBCHAPTER C—FEDERAL WORK-STUDY

				PROGRAMS</toc-entry>

				<toc-entry level="section">Sec. 7391. Authorization of

				appropriations</toc-entry>

				<toc-entry level="section">Sec. 7392. Allowance for books and

				supplies</toc-entry>

				<toc-entry level="section">Sec. 7393. Grants for Federal work-study

				programs</toc-entry>

				<toc-entry level="section">Sec. 7394. Job location and development

				programs</toc-entry>

				<toc-entry level="section">Sec. 7395. Work colleges</toc-entry>

				<toc-entry level="subchapter">SUBCHAPTER D—WILLIAM D. FORD FEDERAL

				DIRECT LOAN PROGRAM</toc-entry>

				<toc-entry level="section">Sec. 7401. Funds for administrative

				expenses</toc-entry>

				<toc-entry level="subchapter">SUBCHAPTER E—FEDERAL PERKINS

				LOANS</toc-entry>

				<toc-entry level="section">Sec. 7411. Program authority</toc-entry>

				<toc-entry level="section">Sec. 7412. Terms of loans</toc-entry>

				<toc-entry level="section">Sec. 7413. Cancellation of loans for

				certain public service</toc-entry>

				<toc-entry level="section">Sec. 7414. Federal capital contribution

				recovery</toc-entry>

				<toc-entry level="subchapter">SUBCHAPTER F—NEED ANALYSIS</toc-entry>

				<toc-entry level="section">Sec. 7421. Cost of attendance</toc-entry>

				<toc-entry level="section">Sec. 7422. Discretion of student financial

				aid administrators</toc-entry>

				<toc-entry level="section">Sec. 7423. Definitions</toc-entry>

				<toc-entry level="subchapter">SUBCHAPTER G—GENERAL PROVISIONS

				RELATING TO STUDENT ASSISTANCE</toc-entry>

				<toc-entry level="section">Sec. 7431. Definitions</toc-entry>

				<toc-entry level="section">Sec. 7432. Compliance calendar</toc-entry>

				<toc-entry level="section">Sec. 7433. Forms and

				regulations</toc-entry>

				<toc-entry level="section">Sec. 7434. Student eligibility</toc-entry>

				<toc-entry level="section">Sec. 7435. Statute of limitations and

				State court judgments</toc-entry>

				<toc-entry level="section">Sec. 7436. Institutional

				refunds</toc-entry>

				<toc-entry level="section">Sec. 7437. Institutional and financial

				assistance for students</toc-entry>

				<toc-entry level="section">Sec. 7438. National student loan data

				system</toc-entry>

				<toc-entry level="section">Sec. 7439. Early awareness of financial

				aid eligibility</toc-entry>

				<toc-entry level="section">Sec. 7440. College access

				initiative</toc-entry>

				<toc-entry level="section">Sec. 7441. Program participation

				agreements</toc-entry>

				<toc-entry level="section">Sec. 7442. Regulatory relief and

				improvement</toc-entry>

				<toc-entry level="section">Sec. 7443. Transfer of

				allotments</toc-entry>

				<toc-entry level="section">Sec. 7444. Wage garnishment

				requirement</toc-entry>

				<toc-entry level="section">Sec. 7445. Purpose of administrative

				payments</toc-entry>

				<toc-entry level="section">Sec. 7446. Advisory committee on student

				financial assistance</toc-entry>

				<toc-entry level="section">Sec. 7447. Regional meetings</toc-entry>

				<toc-entry level="section">Sec. 7448. Year 2000 requirements at the

				department</toc-entry>

				<toc-entry level="subchapter">SUBCHAPTER H—PROGRAM

				INTEGRITY</toc-entry>

				<toc-entry level="section">Sec. 7451. Recognition of accrediting

				agency or association</toc-entry>

				<toc-entry level="section">Sec. 7452. Administrative capacity

				standard</toc-entry>

				<toc-entry level="section">Sec. 7453. Program review and

				data</toc-entry>

				<toc-entry level="chapter">Chapter 6—Developing

				Institutions</toc-entry>

				<toc-entry level="section">Sec. 7501. Definitions</toc-entry>

				<toc-entry level="section">Sec. 7502. Authorized

				activities</toc-entry>

				<toc-entry level="section">Sec. 7503. Duration of grant</toc-entry>

				<toc-entry level="section">Sec. 7504. Postbaccalaureate opportunities

				for Hispanic Americans</toc-entry>

				<toc-entry level="section">Sec. 7505. Applications</toc-entry>

				<toc-entry level="section">Sec. 7506. Cooperative

				arrangements</toc-entry>

				<toc-entry level="section">Sec. 7507. Authorization of

				appropriations</toc-entry>

				<toc-entry level="chapter">Chapter 7—International Education

				Programs</toc-entry>

				<toc-entry level="section">Sec. 7601. Findings</toc-entry>

				<toc-entry level="section">Sec. 7602. Graduate and undergraduate

				language and area centers and programs</toc-entry>

				<toc-entry level="section">Sec. 7603. Undergraduate international

				studies and foreign language programs</toc-entry>

				<toc-entry level="section">Sec. 7604. Research; studies</toc-entry>

				<toc-entry level="section">Sec. 7605. Technological innovation and

				cooperation for foreign information access</toc-entry>

				<toc-entry level="section">Sec. 7606. Selection of certain grant

				recipients</toc-entry>

				<toc-entry level="section">Sec. 7607. American overseas research

				centers</toc-entry>

				<toc-entry level="section">Sec. 7608. Authorization of appropriations

				for international and foreign language studies</toc-entry>

				<toc-entry level="section">Sec. 7609. Centers for international

				business education</toc-entry>

				<toc-entry level="section">Sec. 7610. Education and training

				programs</toc-entry>

				<toc-entry level="section">Sec. 7611. Authorization of appropriations

				for business and international education programs</toc-entry>

				<toc-entry level="section">Sec. 7612. Minority foreign service

				professional development program</toc-entry>

				<toc-entry level="section">Sec. 7613. Institutional

				development</toc-entry>

				<toc-entry level="section">Sec. 7614. Study abroad

				program</toc-entry>

				<toc-entry level="section">Sec. 7615. Advanced degree in

				international relations</toc-entry>

				<toc-entry level="section">Sec. 7616. Internships</toc-entry>

				<toc-entry level="section">Sec. 7617. Financial

				assistance</toc-entry>

				<toc-entry level="section">Sec. 7618. Report</toc-entry>

				<toc-entry level="section">Sec. 7619. Gifts and donations</toc-entry>

				<toc-entry level="section">Sec. 7620. Authorization of appropriations

				for the institute for international public policy</toc-entry>

				<toc-entry level="section">Sec. 7621. Definitions</toc-entry>

				<toc-entry level="section">Sec. 7622. Assessment and

				enforcement</toc-entry>

				<toc-entry level="chapter">Chapter 8—Graduate And Postsecondary

				Improvement Programs</toc-entry>

				<toc-entry level="section">Sec. 7701. Purpose</toc-entry>

				<toc-entry level="section">Sec. 7702. Allocation of Jacob K. Javits

				fellowships</toc-entry>

				<toc-entry level="section">Sec. 7703. Stipends</toc-entry>

				<toc-entry level="section">Sec. 7704. Authorization of appropriations

				for the Jacob K. Javits Fellowship Program</toc-entry>

				<toc-entry level="section">Sec. 7705. Institutional eligibility under

				the graduate assistance in areas of national need program</toc-entry>

				<toc-entry level="section">Sec. 7706. Awards to graduate

				students</toc-entry>

				<toc-entry level="section">Sec. 7707. Additional assistance for cost

				of education</toc-entry>

				<toc-entry level="section">Sec. 7708. Authorization of appropriations

				for the graduate assistance in areas of national need program</toc-entry>

				<toc-entry level="section">Sec. 7709. Authorization of appropriations

				for the Thurgood Marshall Legal Educational Opportunity Program</toc-entry>

				<toc-entry level="section">Sec. 7710. Fund for the improvement of

				postsecondary education</toc-entry>

				<toc-entry level="section">Sec. 7711. Special projects</toc-entry>

				<toc-entry level="section">Sec. 7712. Authorization of appropriations

				for the fund for the improvement of postsecondary education</toc-entry>

				<toc-entry level="section">Sec. 7713. Repeal of the urban community

				service program</toc-entry>

				<toc-entry level="section">Sec. 7714. Grants authorized for

				demonstration projects to ensure students with disabilities receive a quality

				higher education</toc-entry>

				<toc-entry level="section">Sec. 7715. Applications for demonstration

				projects to ensure students with disabilities receive a quality higher

				education</toc-entry>

				<toc-entry level="section">Sec. 7716. Authorization of appropriations

				for the demonstration projects to ensure students with disabilities receive a

				quality higher education</toc-entry>

				<toc-entry level="chapter">Chapter 9—Miscellaneous</toc-entry>

				<toc-entry level="section">Sec. 7801. Miscellaneous</toc-entry>

				<toc-entry level="chapter">Chapter 10—Amendments to Other

				Laws</toc-entry>

				<toc-entry level="subchapter">SUBCHAPTER A—EDUCATION OF THE DEAF ACT

				OF 1986</toc-entry>

				<toc-entry level="section">Sec. 7901. Laurent Clerc National Deaf

				Education Center</toc-entry>

				<toc-entry level="section">Sec. 7902. Agreement with Gallaudet

				University</toc-entry>

				<toc-entry level="section">Sec. 7903. Agreement for the National

				Technical Institute for the Deaf</toc-entry>

				<toc-entry level="section">Sec. 7904. Cultural experiences

				grants</toc-entry>

				<toc-entry level="section">Sec. 7905. Audit</toc-entry>

				<toc-entry level="section">Sec. 7906. Reports</toc-entry>

				<toc-entry level="section">Sec. 7907. Monitoring, evaluation, and

				reporting</toc-entry>

				<toc-entry level="section">Sec. 7908. Liaison for educational

				programs</toc-entry>

				<toc-entry level="section">Sec. 7909. Federal endowment programs for

				Gallaudet University and the National Technical Institute for the

				Deaf</toc-entry>

				<toc-entry level="section">Sec. 7910. Oversight and effect of

				agreements</toc-entry>

				<toc-entry level="section">Sec. 7911. International

				students</toc-entry>

				<toc-entry level="section">Sec. 7912. Research priorities</toc-entry>

				<toc-entry level="section">Sec. 7913. Authorization of

				appropriations</toc-entry>

				<toc-entry level="subchapter">SUBCHAPTER B—UNITED STATES INSTITUTE OF

				PEACE ACT</toc-entry>

				<toc-entry level="section">Sec. 7921. United States Institute of

				Peace Act</toc-entry>

				<toc-entry level="subchapter">SUBCHAPTER C—THE HIGHER EDUCATION

				AMENDMENTS OF 1998</toc-entry>

				<toc-entry level="section">Sec. 7931. Repeals</toc-entry>

				<toc-entry level="section">Sec. 7932. Grants to States for workplace

				and community transition training for incarcerated youth offenders</toc-entry>

				<toc-entry level="subchapter">SUBCHAPTER D—INDIAN

				EDUCATION</toc-entry>

				<toc-entry level="part">Part I—Tribal Colleges and

				Universities</toc-entry>

				<toc-entry level="section">Sec. 7941. Reauthorization of the Tribally

				Controlled College or University Assistance Act of 1978</toc-entry>

				<toc-entry level="part">Part II—Navajo Higher Education</toc-entry>

				<toc-entry level="section">Sec. 7945. Short title</toc-entry>

				<toc-entry level="section">Sec. 7946. Reauthorization of Navajo

				Community College Act</toc-entry>

				<toc-entry level="subtitle">Subtitle D—Hurricane Relief</toc-entry>

				<toc-entry level="section">Sec. 7947. Findings</toc-entry>

				<toc-entry level="section">Sec. 7948. Immediate aid to restart school

				operations</toc-entry>

				<toc-entry level="section">Sec. 7949. Hold harmless for local

				educational agencies serving major disaster areas</toc-entry>

				<toc-entry level="section">Sec. 7950. Teacher and paraprofessional

				reciprocity; delay</toc-entry>

				<toc-entry level="section">Sec. 7951. Assistance for homeless

				youth</toc-entry>

				<toc-entry level="section">Sec. 7952. Temporary emergency impact aid

				for displaced students</toc-entry>

				<toc-entry level="section">Sec. 7953. Origination fees for student

				loans</toc-entry>

				<toc-entry level="section">Sec. 7954. Authorization and appropriation

				of funds</toc-entry>

				<toc-entry level="section">Sec. 7955. Sunset provision</toc-entry>

				<toc-entry level="title">TITLE VIII—COMMITTEE ON THE

				JUDICIARY</toc-entry>

				<toc-entry level="section">Sec. 8001. Recapture of unused visa

				numbers</toc-entry>

				<toc-entry level="section">Sec. 8002. Fees with respect to

				immigration services for intracompany transferees</toc-entry>

				<toc-entry level="section">Sec. 8003. Justice programs</toc-entry>

				<toc-entry level="section">Sec. 8004. Copyright program</toc-entry>

				<toc-entry level="division">DIVISION A—AMTRAK

				REAUTHORIZATION</toc-entry>

				<toc-entry level="section">Sec. 1. Short title</toc-entry>

				<toc-entry level="section">Sec. 2. Amendment of Title 49, United

				States Code</toc-entry>

				<toc-entry level="title">TITLE I—AUTHORIZATIONS</toc-entry>

				<toc-entry level="section">Sec. 101. Authorization for Amtrak capital

				and operating expenses and State capital grants</toc-entry>

				<toc-entry level="section">Sec. 102. Authorization for the Federal

				Railroad Administration</toc-entry>

				<toc-entry level="section">Sec. 103. Repayment of long-term debt and

				capital leases</toc-entry>

				<toc-entry level="section">Sec. 104. Excess railroad

				retirement</toc-entry>

				<toc-entry level="section">Sec. 105. Other authorizations</toc-entry>

				<toc-entry level="title">TITLE II—AMTRAK REFORM AND OPERATIONAL

				IMPROVEMENTS</toc-entry>

				<toc-entry level="section">Sec. 201. National railroad passenger

				transportation system defined</toc-entry>

				<toc-entry level="section">Sec. 202. Amtrak board of

				directors</toc-entry>

				<toc-entry level="section">Sec. 203. Establishment of improved

				financial accounting system</toc-entry>

				<toc-entry level="section">Sec. 204. Development of 5-year financial

				plan</toc-entry>

				<toc-entry level="section">Sec. 205. Establishment of grant

				process</toc-entry>

				<toc-entry level="section">Sec. 206. State-supported

				routes</toc-entry>

				<toc-entry level="section">Sec. 207. Independent auditor to establish

				methodologies for Amtrak route and service planning decisions</toc-entry>

				<toc-entry level="section">Sec. 208. Metrics and

				standards</toc-entry>

				<toc-entry level="section">Sec. 209. Passenger train

				performance</toc-entry>

				<toc-entry level="section">Sec. 210. Long distance routes</toc-entry>

				<toc-entry level="section">Sec. 211. Alternate passenger rail service

				program</toc-entry>

				<toc-entry level="section">Sec. 212. Employee transition

				assistance</toc-entry>

				<toc-entry level="section">Sec. 213. Northeast corridor

				state-of-good-repair plan</toc-entry>

				<toc-entry level="section">Sec. 214. Northeast corridor

				infrastructure and operations improvements</toc-entry>

				<toc-entry level="section">Sec. 215. Restructuring long-term debt and

				capital leases</toc-entry>

				<toc-entry level="section">Sec. 216. Study of compliance requirements

				at existing intercity rail stations</toc-entry>

				<toc-entry level="section">Sec. 217. Incentive pay</toc-entry>

				<toc-entry level="section">Sec. 218. Access to Amtrak equipment and

				services</toc-entry>

				<toc-entry level="section">Sec. 219. General Amtrak

				provisions</toc-entry>

				<toc-entry level="section">Sec. 220. Private sector funding of

				passenger trains</toc-entry>

				<toc-entry level="section">Sec. 221. On-board service

				improvements</toc-entry>

				<toc-entry level="section">Sec. 222. Amtrak management

				accountability</toc-entry>

				<toc-entry level="title">TITLE III—INTERCITY PASSENGER RAIL

				POLICY</toc-entry>

				<toc-entry level="section">Sec. 301. Capital assistance for intercity

				passenger rail service</toc-entry>

				<toc-entry level="section">Sec. 302. State rail plans</toc-entry>

				<toc-entry level="section">Sec. 303. Next generation corridor train

				equipment pool</toc-entry>

				<toc-entry level="section">Sec. 304. Federal rail policy</toc-entry>

				<toc-entry level="section">Sec. 305. Rail cooperation research

				program</toc-entry>

				<toc-entry level="title">TITLE IV—PASSENGER RAIL SECURITY AND

				SAFETY</toc-entry>

				<toc-entry level="section">Sec. 401. Systemwide Amtrak security

				upgrades</toc-entry>

				<toc-entry level="section">Sec. 402. Fire and life-safety

				improvements</toc-entry>

				<toc-entry level="section">Sec. 403. Amtrak plan to assist families

				of passengers involved in rail passenger accidents</toc-entry>

				<toc-entry level="section">Sec. 404. Northern border rail passenger

				report</toc-entry>

				<toc-entry level="section">Sec. 405. Passenger, baggage, and cargo

				screening</toc-entry>

			</toc>

		</section><title id="ID0483A8B8F26C443FA1CEE690F4C9D194"><enum>I</enum><header>COMMITTEE ON

			 AGRICULTURE, NUTRITION, AND FORESTRY</header>

			<section id="IDBA3028DF0DC24530805DAD11DFECD4B5"><enum>1001.</enum><header>Short

			 title</header><text display-inline="no-display-inline">This title may be cited

			 as the <quote>Agricultural Reconciliation Act of 2005</quote>.</text>

			</section><subtitle id="ID6973231159FE4CF891A26D427632585F"><enum>A</enum><header>Commodity

			 Programs</header>

				<section id="ID365D5726A0DC41548B3DBE625D101AA2"><enum>1101.</enum><header>Reduction of

			 commodity Program payments</header>

					<subsection id="IDFC0574DD791747A596C561505BF853AD"><enum>(a)</enum><header>In

			 General</header><text>Subtitle F of title I of the Farm Security and Rural

			 Investment Act of 2002 (7 U.S.C. 7991 et seq.) is amended by adding at the end

			 the following:</text>

						<quoted-block id="ID452F09EEC37844579948E769E29E78A0" style="OLC">

							<section id="ID0B410FD92EDB47BF95C3ED8A56A1597C"><enum>1619.</enum><header>Reduction of

				commodity Program payments</header>

								<subsection id="IDBF012EE7B7D846BFADB5F950A0BB036C"><enum>(a)</enum><header>Definition of

				Commodity Program Payments</header><text>In this section, the term

				<term>commodity program payments</term> means—</text>

									<paragraph id="ID6CEB55813CBF46ECAF70288B89A826F7"><enum>(1)</enum><text>direct

				payments;</text>

									</paragraph><paragraph id="IDD24917B6A2E34B8699857B44698D3CC0"><enum>(2)</enum><text>counter-cyclical

				payments; and</text>

									</paragraph><paragraph id="ID63209E6AD19B4532931A7583B797C3B0"><enum>(3)</enum><text>payments and

				benefits associated with the loan program, including gains from the forfeiture

				of any commodity pledged as collateral for loans and gains from in-kind

				payments described in section 166 of the Federal Agriculture Improvement and

				Reform Act of 1996 (7 U.S.C. 7286), as determined by the Secretary.</text>

									</paragraph></subsection><subsection id="IDD32246F4000E47C480BD17195C7B7988"><enum>(b)</enum><header>Reduction</header>

									<paragraph id="ID5A0D0D21C1B04683B8A6050B23A7A794"><enum>(1)</enum><header>In

				general</header><text>Notwithstanding any other provision of this title, for

				each of the 2006 through 2010 crop years for wheat, corn, grain sorghum,

				barley, oats, upland cotton, extra long staple cotton, rice, soybeans, other

				oilseeds, wool, mohair, honey, dry peas, lentils, small chickpeas, unshorn

				pelts, silage, hay, and peanuts, the Secretary shall reduce the total amount of

				commodity program payments received by the producers on a farm for those

				commodities for that crop year by an amount equal to 2.5 percent of that

				amount.</text>

									</paragraph><paragraph id="IDDCB0AC7464C840D0A1739A2A737AE348"><enum>(2)</enum><header>Milk</header><text>During

				the period beginning on October 1, 2005, and ending on September 30, 2007, the

				Secretary shall reduce the total amount of payments received by producers

				pursuant to section 1502 by an amount equal to 2.5 percent of that

				amount.</text>

									</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="ID99FA21B868F44266AAE1778915974350"><enum>(b)</enum><header>Commodities</header>

						<paragraph id="ID25A754F9BEDA4534B86AB42343F39ADB"><enum>(1)</enum><header>In

			 general</header><text>Title I of the Farm Security and Rural Investment Act of

			 2002 (7 U.S.C. 7901 et seq.), including each amendment made by that title, is

			 amended by striking <quote>2007</quote> each place it appears (other than in

			 sections 1104(f), 1304(g), and 1307(a)(6) and amendments made by this title)

			 and inserting <quote>2011</quote>.</text>

						</paragraph><paragraph id="ID5B04D2F73A5E458EBAA7C7E834D1E4E2"><enum>(2)</enum><header>Cotton</header><text>Sections

			 1204(e)(1) and 1208(a) of the Farm Security and Rural Investment Act of 2002 (7

			 U.S.C. 7934(e)(1), 7938(a)) are amended by striking <quote>2008</quote> each

			 place it appears and inserting <quote>2012</quote>.</text>

						</paragraph></subsection></section><section id="ID16DBE0FAC94D41DFA513DFF796BA9048"><enum>1102.</enum><header>Forfeiture

			 penalty for nonrecourse sugar loans</header><text display-inline="no-display-inline">Section 156 of the Federal Agriculture

			 Improvement and Reform Act of 1996 (7 U.S.C. 7272) is amended—</text>

					<paragraph id="ID8C3FE19D42CE4E25B1DE3234C892D9FD"><enum>(1)</enum><text>by redesignating

			 subsections (h), (i), and (j) as subsections (i), (j), and (k), respectively;

			 and</text>

					</paragraph><paragraph id="IDBA15AD64C7544F86AA479E8D44559319"><enum>(2)</enum><text>by inserting

			 after subsection (g) the following:</text>

						<quoted-block id="ID81114C18D552482DB3B92233195D9094" style="OLC">

							<subsection id="IDAF46F73350D34E5CA04D81CE99C1A848"><enum>(h)</enum><header>Forfeiture

				Penalty</header>

								<paragraph id="ID68605B1199264CEC89519824A8D60CE8"><enum>(1)</enum><header>In

				general</header><text>In the case of each of the 2006 through 2010 crops of

				sugar beets and sugarcane, a penalty shall be assessed on the forfeiture of any

				sugar pledged as collateral for a nonrecourse loan under this section.</text>

								</paragraph><paragraph id="ID89B5CB1F6A754F3AB6D1C432DBA7F938"><enum>(2)</enum><header>Amount</header><text>The

				penalty for sugarcane and sugar beets under this subsection shall be 1.2

				percent of the loan rate established for sugarcane and sugar beets under

				subsections (a) and (b), respectively.</text>

								</paragraph><paragraph id="ID214F4B3A45364D01930134C2F5BF3C01"><enum>(3)</enum><header>Effect of

				forfeiture</header><text>Any payments owed producers by a processor that

				forfeits any sugar pledged as collateral for a nonrecourse loan shall be

				reduced in proportion to the loan forfeiture penalty incurred by the

				processor.</text>

								</paragraph><paragraph id="IDEE9836CC3C4346A29CAFD649879DBDF8"><enum>(4)</enum><header>Crops</header><text>This

				subsection shall apply only to the 2006 through 2010 crops of sugar beets and

				sugarcane.</text>

								</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

					</paragraph></section><section id="ID048FD6E90D2342D6868FFBAA202261F5"><enum>1103.</enum><header>Cotton

			 competitiveness provisions</header>

					<subsection id="IDA764A4180561495A95A26375D6A3CD70"><enum>(a)</enum><header>In

			 General</header><text>Section 1207 of the Farm Security and Rural Investment

			 Act of 2002 (7 U.S.C. 7937) is amended—</text>

						<paragraph id="IDA078297B2C2840FEBCA105D181B303F9"><enum>(1)</enum><text>by striking the

			 section heading and inserting the following: <quote><header-in-text>upland

			 cotton import quotas.</header-in-text></quote>;</text>

						</paragraph><paragraph id="ID2432D799AEB84722AB59700D56E36F19"><enum>(2)</enum><text>by striking

			 subsection (a);</text>

						</paragraph><paragraph id="ID39FC5A4361604216B6F2B092C5B1D892"><enum>(3)</enum><text>by redesignating

			 subsections (b) and (c) as subsections (a) and (b), respectively;</text>

						</paragraph><paragraph id="IDA7DAAEC2787745378A59AE27E4E7D194"><enum>(4)</enum><text>in subsection (a)

			 (as so redesignated)—</text>

							<subparagraph id="IDE8250610ED304D5C980A19AE9C42B6E5"><enum>(A)</enum><text>in paragraph

			 (1)—</text>

								<clause id="ID23854F3906184BC8BA9A69C208F70C0A"><enum>(i)</enum><text>in

			 subparagraph (B), by striking <quote>, adjusted for the value of any

			 certificate issued under subsection (a),</quote>; and</text>

								</clause><clause id="IDAF159D9918004BE496862EFEDB778C4E"><enum>(ii)</enum><text>in

			 subparagraph (C), by striking <quote>, for the value of any certificates issued

			 under subsection (a)</quote>; and</text>

								</clause></subparagraph><subparagraph id="IDED3DD61BDB22414A875B081925FD658F"><enum>(B)</enum><text>in paragraph (4),

			 by striking <quote>subsection (c)</quote> and inserting <quote>subsection

			 (b)</quote>; and</text>

							</subparagraph></paragraph><paragraph id="ID8AC765C664A34B799512F7C0C0C8A6CE"><enum>(5)</enum><text>in subsection

			 (b)(2) (as so redesignated), by striking <quote>subsection (b)</quote> and

			 inserting <quote>subsection (a)</quote>.</text>

						</paragraph></subsection><subsection id="ID1C6F6A57BE9545D290C56B8C203BFA99"><enum>(b)</enum><header>FAIR</header><text>Section

			 136 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.

			 7236) is repealed.</text>

					</subsection><subsection id="ID5A29973F1869427691E39550B5A6620C"><enum>(c)</enum><header>Effective

			 Date</header><text>The amendments made by this section take effect on August 1,

			 2006.</text>

					</subsection></section><section id="ID399610386819437887B9106122579A98"><enum>1104.</enum><header>National

			 dairy market loss payments</header>

					<subsection id="IDD88AE97679AB4C5E9B0EDDD1ADEC6E1C"><enum>(a)</enum><header>Amount</header><text>Section

			 1502(c) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.

			 7982(c)) is amended by striking paragraph (3) and inserting the

			 following:</text>

						<quoted-block id="ID977A56AF827245DE8F969F19F9667F6B" style="OLC">

							<paragraph id="ID6DB195632F1D44828BB247169605BD04"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID3181263A44E840A59892AA72EC39340E"><enum>(A)</enum><text>during the period

				beginning on the first day of the month the producers on a dairy farm enter

				into a contract under this section and ending on September 30, 2005, 45

				percent; and</text>

								</subparagraph><subparagraph id="ID3955E1B5CC2E4F279701DE5D806713CF" indent="up1"><enum>(B)</enum><text>during the period beginning on October

				1, 2005, and ending on September 30, 2007, 34

				percent.</text>

								</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="ID2D5A98215E8E45D9BE588B904EED16FE"><enum>(b)</enum><header>Duration</header><text>Section

			 1502 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7982) is

			 amended by striking <quote>2005</quote> each place it appears in subsections

			 (f) and (g)(1) and inserting <quote>2007</quote>.</text>

					</subsection><subsection id="ID00A1A5D40D1F4AD09EAAD475A7F7D963"><enum>(c)</enum><header>Conforming

			 Amendments</header><text>Section 1502 of the Farm Security and Rural Investment

			 Act of 2002 (7 U.S.C. 7982) is amended—</text>

						<paragraph id="IDA5E0D552931A42E1B2F51B2C840CE131"><enum>(1)</enum><text>in subsection

			 (g)(1), by striking <quote>and subsection (h)</quote>; and</text>

						</paragraph><paragraph id="IDAC1C8B6EFE9C48C88316AC5E9A744750"><enum>(2)</enum><text>by striking

			 subsection (h).</text>

						</paragraph></subsection></section><section id="ID2A06D7D52AA34C4190919BCF989CBB98"><enum>1105.</enum><header>Advance

			 direct payments</header>

					<subsection id="ID32216FC7D95844649FFA370D5ED9C41A"><enum>(a)</enum><header>In

			 General</header><text>Section 1103(d)(2) of the Farm Security and Rural

			 Investment Act of 2002 (7 U.S.C. 7913(d)(2)) is amended in the first sentence

			 by striking <quote>2007 crops years</quote> and inserting <quote>2005 crop

			 years, up to 40 percent of the direct payment for a covered commodity for the

			 2006 crop year, and up to 29 percent of the direct payment for a covered

			 commodity for any of the 2007 through 2011 crop years,</quote>.</text>

					</subsection><subsection id="IDD0A3A19E46B04275B404B529CBBD96DA"><enum>(b)</enum><header>Peanuts</header><text>Section

			 1303(e)(2) of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.

			 7953(e)(2)) is amended in the first sentence by striking <quote>2007 crops

			 years</quote> and inserting <quote>2005 crop years, up to 40 percent of the

			 direct payment for the 2006 crop year, and up to 29 percent of the direct

			 payment for any of the 2007 through 2011 crop years,</quote>.</text>

					</subsection></section></subtitle><subtitle id="ID0059D1119DD94F789AF4C4F589451BEE"><enum>B</enum><header>Conservation</header>

				<section id="ID93B74187F01142FFBDF5C1483E745455"><enum>1201.</enum><header>Conservation

			 Reserve Program</header>

					<subsection id="ID47320DEDB70B471298A35E6E0A0E2B33"><enum>(a)</enum><header>In

			 General</header><text>Section 1231 of the Food Security Act of 1985 (16 U.S.C.

			 3831) is amended—</text>

						<paragraph id="IDF56C0C67C8584B2ABF0D5162185C6701"><enum>(1)</enum><text>in subsection

			 (a), by striking <quote>2007</quote> and inserting <quote>2011</quote>;</text>

						</paragraph><paragraph id="ID1D0B33420912485CA2B0C0FEF35BA764"><enum>(2)</enum><text>in subsection

			 (d), by striking <quote>up</quote> and all that follows through

			 <quote>years</quote> and inserting <quote>in the conservation reserve at any 1

			 time 36,400,000 acres during the 2002 through 2010 calendar years and

			 38,300,000 acres in the 2011 calendar year</quote>; and</text>

						</paragraph><paragraph id="ID61C1E427141C47229DC418F2ECF3FA48"><enum>(3)</enum><text>in subsection

			 (h)(1)(A), by striking <quote>2007</quote> and inserting

			 <quote>2011</quote>.</text>

						</paragraph></subsection><subsection id="IDE22C229B17904A81B661119CF24F4282"><enum>(b)</enum><header>Funding</header><text>Section

			 1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a)) is amended—</text>

						<paragraph id="ID2415E2D699124B51AFFA2B29D9C7A0B7"><enum>(1)</enum><text>in the matter

			 before paragraph (1), by striking <quote>For</quote> and inserting

			 <quote>Except as otherwise provided in this subsection, for</quote>; and</text>

						</paragraph><paragraph id="ID1B4B0E7A1B52497DB5F427B53CC3CA34"><enum>(2)</enum><text>in paragraph (1),

			 by striking <quote>The conservation</quote> and inserting <quote>For fiscal

			 years 2002 through 2011, the conservation</quote>.</text>

						</paragraph></subsection><subsection id="IDC6DDF326CB4C423A81926DC25249E8CB"><enum>(c)</enum><header>Implementation</header><text>In

			 implementing the amendments made by this section, the Secretary of Agriculture

			 shall achieve the new maximum acreage enrollment limit not later than 2 years

			 after the date of enactment of this Act without affecting conservation reserve

			 existing contracts.</text>

					</subsection></section><section id="IDF3F68486139049B7AEC880681F7951FA"><enum>1202.</enum><header>Conservation

			 security Program</header>

					<subsection id="IDD69E55D11EB347F1B1D5C13A0EB903F8"><enum>(a)</enum><header>In

			 General</header><text>Section 1238A(a) of the Food Security Act of 1985 (16

			 U.S.C. 3838a(a)) is amended by striking <quote>2007</quote> and inserting

			 <quote>2011</quote>.</text>

					</subsection><subsection id="ID99FE51C7BC1C48C498257ADAC10E7C25"><enum>(b)</enum><header>Funding</header><text>Section

			 1241(a)(3) of the Food Security Act of 1985 (16 U.S.C. 3841(a)(3)) is amended

			 by striking “not more than $6,037,000,000” and all that follows through “2014.”

			 and inserting the following: “not more than—</text>

						<quoted-block id="IDFD67BB63756343D0AAB2BFF5FAFDD5A7" style="OLC">

							<subparagraph id="ID4A7120833950446F8979F9717AD4C4DF"><enum>(A)</enum><text>$1,954,000,000

				for the period of fiscal years 2006 through 2010; and</text>

							</subparagraph><subparagraph id="ID770186DCA8204E0B9F51CDABE8278560"><enum>(B)</enum><text>$5,200,000,000

				for the period of fiscal years 2006 through

				2015.</text>

							</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection></section><section id="IDEE70C200C04342058A1ABA7C5478DB85"><enum>1203.</enum><header>Environmental

			 quality incentives Program</header>

					<subsection id="IDED828150BAC64CFD969A170BFA48B97C"><enum>(a)</enum><header>In

			 General</header><text>Section 1240B(a)(1) of the Food Security Act of 1985 (16

			 U.S.C. 3839aa–2(a)(1)) is amended by striking <quote>2007</quote> and inserting

			 <quote>2011</quote>.</text>

					</subsection><subsection id="ID2F959072252B4D1697F2B56AF9282A2B"><enum>(b)</enum><header>Limitation on

			 Payments</header><text>Section 1240G of the Food Security Act of 1985 (16

			 U.S.C. 3839aa–7) is amended by striking <quote>2007</quote> and inserting

			 <quote>2011</quote>.</text>

					</subsection><subsection id="IDD9F8818A5A124042A8C3C3C255A18C51"><enum>(c)</enum><header>Funding</header><text>Section

			 1241(a)(6) of the Food Security Act of 1985 (16 U.S.C. 3841(a)(6)) is amended

			 by striking subparagraphs (D) and (E) and inserting the following:</text>

						<quoted-block id="ID8A385B432DE443B98E629851D3423104" style="OLC">

							<subparagraph id="IDA783C09C19ED429B9AF2B0D835E04CA5"><enum>(D)</enum><text>$1,017,000,000 in

				fiscal year 2005;</text>

							</subparagraph><subparagraph id="ID6786517C775244F8826012836BBA87BD"><enum>(E)</enum><text>$1,185,000,000 in

				fiscal year 2006;</text>

							</subparagraph><subparagraph id="IDC30736448D0046E5A1C787DE7FDF97F1"><enum>(F)</enum><text>$1,270,000,000 in

				each of fiscal years 2007 through 2010; and</text>

							</subparagraph><subparagraph id="IDBEE923FF32ED4AE68C6A78A2F6E95A4B"><enum>(G)</enum><text>$1,300,000,000 in

				fiscal year

				2011.</text>

							</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection></section></subtitle><subtitle id="ID325B1767A303403CA67FCF26BCBBA2F5"><enum>C</enum><header>Miscellaneous</header>

				<section id="ID418B7773EE154A9BA859276B88CF225B"><enum>1301.</enum><header>Initiative

			 for future agriculture and food systems</header>

					<subsection id="ID23216DBDB11C4F719791CD63DBEE27DB"><enum>(a)</enum><header>In

			 General</header><text>Section 401(b)(3) of the Agricultural Research,

			 Extension, and Education Reform Act of 1998 (7 U.S.C. 7621(b)(3)) is

			 amended—</text>

						<paragraph id="IDA6259F357E664633A8A4A230F34ABF16"><enum>(1)</enum><text>in subparagraph

			 (C), by striking <quote>$160,000,000; and</quote> and inserting

			 <quote>$104,000,000;</quote>;</text>

						</paragraph><paragraph id="ID9ABE7FA0977340298D419A85C7B2C861"><enum>(2)</enum><text>by redesignating

			 subparagraph (D) as subparagraph (E);</text>

						</paragraph><paragraph id="IDD2F0FA4283414729B843763046EE635C"><enum>(3)</enum><text>by inserting

			 after subparagraph (C) the following:</text>

							<quoted-block id="ID7236D75E854840F8AFC3C36828A8A258" style="OLC">

								<subparagraph id="IDB0E965BF8EBF48C5974DE3A02EB794F7"><enum>(D)</enum><text>on October 1,

				2006, and each October 1 thereafter through October 1, 2009, $130,000,000;

				and</text>

								</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

						</paragraph><paragraph id="ID9DB0A2C6DD1B436190CD764F719C721E"><enum>(4)</enum><text>in subparagraph

			 (E) (as so redesignated), by striking <quote>2006</quote> and inserting

			 <quote>2010</quote>.</text>

						</paragraph></subsection><subsection id="ID42EC7F97A4A248359E2953F49D188AB2"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendments made by subsection (a) take effect on October

			 1, 2005.</text>

					</subsection></section></subtitle></title><title id="IDF94DE39DD3944AE2A81EC1561B982A71"><enum>II</enum><header>COMMITTEE ON

			 BANKING, HOUSING, AND URBAN AFFAIRS</header>

			<subtitle id="ID3F328F793DE84043AE8D8ED037196E0B"><enum>A</enum><header>Merger of the

			 Deposit Insurance Funds</header>

				<section id="IDB839DBC64C6E4FA5B0F28E1279D01E33"><enum>2001.</enum><header>Short

			 title</header><text display-inline="no-display-inline">This subtitle may be

			 cited as the <quote>Safe and Fair Deposit Insurance Act of 2005</quote>.</text>

				</section><section id="IDFFC01D943B1F48A0B2782D1BA2D6B56F"><enum>2002.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle—</text>

					<paragraph id="ID20FF725AB6AC4477A68F7996509FD420"><enum>(1)</enum><text>the term

			 <term>Administration</term> means the National Credit Union

			 Administration;</text>

					</paragraph><paragraph id="ID043E0FAD4CD64DBEAC8998FE6302CB55"><enum>(2)</enum><text>the term

			 <term>Board</term> means the Board of Directors of the Federal Deposit

			 Insurance Corporation (other than in connection with the National Credit Union

			 Administration Board);</text>

					</paragraph><paragraph id="ID14F05F674938405794F0F0604C453363"><enum>(3)</enum><text>the term

			 <term>Corporation</term> means the Federal Deposit Insurance

			 Corporation;</text>

					</paragraph><paragraph id="ID03FDC20F200442DF8B6A1627D53CB66F"><enum>(4)</enum><text>the term

			 <term>designated reserve ratio</term> means the reserve ratio designated by the

			 Board under section 7(b)(3) of the <act-name parsable-cite="FDIA">Federal

			 Deposit Insurance Act</act-name>, as amended by this subtitle;</text>

					</paragraph><paragraph id="IDFFBD15E0FF6E4D7A938EC8850D8725C3"><enum>(5)</enum><text>the terms

			 <term>Fund</term> and <term>Deposit Insurance Fund</term> mean the Deposit

			 Insurance Fund established under section 11(a)(4) of the

			 <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name>, as

			 amended by this subtitle;</text>

					</paragraph><paragraph id="ID12FF73BB811F46B0BA6A3849D0FD7F95"><enum>(6)</enum><text>the terms

			 <term>depository institution</term> and <term>insured depository

			 institution</term> have the same meanings as in section 3 of the

			 <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name>;

			 and</text>

					</paragraph><paragraph id="IDEEF674FA4CE9487DB9E164EDA58D73BD"><enum>(7)</enum><text>the term

			 <term>reserve ratio</term> means the ratio of the fund balance of the Deposit

			 Insurance Fund to aggregate estimated insured deposits held in all insured

			 depository institutions.</text>

					</paragraph></section><section id="ID90A155A24B8A4585B87A4C66E19C9D9A"><enum>2003.</enum><header>Merger of BIF

			 and SAIF</header>

					<subsection id="ID41038C178ED440969FF13EEB175D553C"><enum>(a)</enum><header>In

			 General</header>

						<paragraph id="ID690C882F20EF4C12A70A0568FA37A3B8"><enum>(1)</enum><header>Merger</header><text>The

			 Bank Insurance Fund and the Savings Association Insurance Fund shall be merged

			 into the Deposit Insurance Fund.</text>

						</paragraph><paragraph id="IDBEB85948D89D47C283AC0DD23813332C"><enum>(2)</enum><header>Disposition of

			 assets and liabilities</header><text>All assets and liabilities of the Bank

			 Insurance Fund and the Savings Association Insurance Fund shall be transferred

			 to the Deposit Insurance Fund.</text>

						</paragraph><paragraph id="ID089BD78034B142D589A115C9652EC359"><enum>(3)</enum><header>No separate

			 existence</header><text>The separate existence of the Bank Insurance Fund and

			 the Savings Association Insurance Fund shall cease on the effective date of the

			 merger thereof under this section.</text>

						</paragraph></subsection><subsection id="ID935E370525604FC89D3811991863CFC3"><enum>(b)</enum><header>Repeal of

			 Outdated Merger Provision</header><text>Section 2704 of the

			 <act-name parsable-cite="DIFA96">Deposit Insurance Funds Act of 1996</act-name>

			 (12 U.S.C. 1821 note) is repealed.</text>

					</subsection></section><section id="ID31278C2C8B8A4AA299ADA1F056F06DDF"><enum>2004.</enum><header>Establishment

			 of the Deposit Insurance Fund</header>

					<subsection id="ID29BB2BE6A00B440697A0F1E2C72B5642"><enum>(a)</enum><header>In

			 General</header><text>Section 11(a)(4) of the <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12 U.S.C.

			 1821(a)(4)) is amended—</text>

						<paragraph id="ID69DA6962923A475E8E7AAD565E98AE21"><enum>(1)</enum><text>by redesignating

			 subparagraph (B) as subparagraph (C);</text>

						</paragraph><paragraph id="ID2C75F4605F7C40519632773BFA82A028"><enum>(2)</enum><text>by striking

			 subparagraph (A) and inserting the following:</text>

							<quoted-block id="IDFBDD21A0671541BB993144422D62A33B" style="OLC">

								<subparagraph id="IDC7E531A6466D421191519A8B75EE6BE5"><enum>(A)</enum><header>Establishment</header><text>There

				is established the Deposit Insurance Fund, which the Corporation shall—</text>

									<clause id="ID5989EEB786284BA289C5579BD1FF8E1C"><enum>(i)</enum><text>maintain and

				administer;</text>

									</clause><clause id="ID58F7421E63FE46AB9D796157000DA63F"><enum>(ii)</enum><text>use to carry out

				its insurance purposes, in the manner provided by this subsection; and</text>

									</clause><clause id="ID255DEBB394BA420BA78BEFE03361FAE3"><enum>(iii)</enum><text>invest in

				accordance with section 13(a).</text>

									</clause></subparagraph><subparagraph id="ID33C7582FFED64EB8955DF27B231B4CF6"><enum>(B)</enum><header>Uses</header><text>The

				Deposit Insurance Fund shall be available to the Corporation for use with

				respect to Deposit Insurance Fund

				members.</text>

								</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>

						</paragraph><paragraph id="ID228A9D4EC952422C920780CDEB1ACABF"><enum>(3)</enum><text>by striking

			 <quote>(4) <header-in-text>General provisions relating to

			 funds</header-in-text>.—</quote> and inserting the following:</text>

							<quoted-block id="ID8BE972111F7D420FB595B413E10382A1" style="OLC">

								<paragraph id="ID7408AB2EE62645799A3B9945992C6518"><enum>(4)</enum><header>Establishment

				of the deposit insurance

				fund</header>

								</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

						</paragraph><paragraph id="ID5392B0EB3C254D15AA6CAF62834B4284"><enum>(4)</enum><text>in subparagraph

			 (C), as redesignated by paragraph (1) of this subsection, by striking

			 <quote>Bank Insurance Fund and the Savings Association Insurance Fund</quote>

			 and inserting <quote>Deposit Insurance Fund</quote>; and</text>

						</paragraph><paragraph id="ID25806F7B95E54F24962E51BB6E5DA55B"><enum>(5)</enum><text>by adding at the

			 end the following:</text>

							<quoted-block id="ID562CC15FFCA04FE183BC1E569DFAD112" style="OLC">

								<subparagraph id="IDAA3FFAD2E26549EFA6DE13332D5BB693"><enum>(D)</enum><header>Deposits</header><text>All

				amounts assessed against insured depository institutions by the Corporation

				shall be deposited in the Deposit Insurance

				Fund.</text>

								</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></subsection><subsection id="IDD36AECB55313445FB9B83F025482E0FD"><enum>(b)</enum><header>Merger-Related

			 Amendments to the <act-name parsable-cite="FDIA">Federal Deposit Insurance

			 Act</act-name></header>

						<paragraph id="ID0716A6AFC6E344BBB0B05E12953B0D73"><enum>(1)</enum><header>Definitions</header><text>Section

			 3(y) of the <act-name parsable-cite="FDIA">Federal Deposit Insurance

			 Act</act-name> (12 U.S.C. 1813(y)) is amended to read as follows:</text>

							<quoted-block act-name="Federal Deposit Insurance Act" id="ID5F7C90CA68224D1BB2D7CC34961208FD" style="OLC">

								<subsection id="IDECC0736B918F43CE8198DE0D07DDD109"><enum>(y)</enum><header>Definitions

				Relating to the Deposit Insurance Fund</header>

									<paragraph id="IDDC6ED89116314C19B43670F825FF5C50"><enum>(1)</enum><header>Deposit

				insurance fund</header><text>The terms <term>Deposit Insurance Fund</term> and

				<term>Fund</term> mean the fund established under section

				11(a)(4).</text>

									</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph><paragraph id="IDA30C32E3DA144399BCEDF02E59321579"><enum>(2)</enum><header>Assessments</header><text>Section

			 7 of the <act-name parsable-cite="FDIA">Federal Deposit Insurance

			 Act</act-name> (12 U.S.C. 1817) is amended—</text>

							<subparagraph id="IDFBC1AA501DB74477AB85A1C1281DFD10"><enum>(A)</enum><text>by striking

			 subsection (l);</text>

							</subparagraph><subparagraph id="ID3DF0C0CABBB7436ABD7657B15416BC0C"><enum>(B)</enum><text>by redesignating

			 subsections (m) and (n) as subsections (l) and (m), respectively; and</text>

							</subparagraph><subparagraph id="ID1F7A3CE3B11C47C784FDE4580BF0BE1C"><enum>(C)</enum><text>in subsection

			 (b), by striking paragraph (2) and inserting the following:</text>

								<quoted-block id="ID1C3000AC104E49A994A752E9C83B0544" style="OLC">

									<paragraph id="IDBE522B4A523D4A34A5BF525589CEAA83"><enum>(2)</enum><header>Assessments</header>

										<subparagraph id="ID3357B39D26964799B766693A5A0BE050"><enum>(A)</enum><header>In

				general</header><text>Each insured depository institution shall pay assessments

				to the Corporation in such amounts and at such time or times as the Board of

				Directors may require.</text>

										</subparagraph><subparagraph id="IDB269E35D55BF483284AEF8BDB6CE371A"><enum>(B)</enum><header>Factors to be

				considered</header><text>In setting assessments for insured depository

				institutions, the Board of Directors shall consider—</text>

											<clause id="ID264E0ADC0D9446B299A258E178756593"><enum>(i)</enum><text>the estimated

				operating expenses of the Deposit Insurance Fund;</text>

											</clause><clause id="ID5604373B463C47578D658F29C77FDB24"><enum>(ii)</enum><text>the estimated

				case resolution expenditures and income of the Deposit Insurance Fund;</text>

											</clause><clause id="IDB49F7B153BC54F0C8B1E1A7DEBF0C999"><enum>(iii)</enum><text>the projected

				effects of assessments on the earnings and capital of insured depository

				institutions;</text>

											</clause><clause id="ID194A4B868656445586A6F9FC2EF00CD8"><enum>(iv)</enum><text>the need to

				maintain a risk-based assessment system under paragraph (1); and</text>

											</clause><clause id="ID9271C832CD3E41BFAAA7A6DAA1752135"><enum>(v)</enum><text>any other factors

				that the Board of Directors may determine to be appropriate.</text>

											</clause></subparagraph><subparagraph id="IDF61754D2140143CAB53ED81D1DD7FABC"><enum>(C)</enum><header>Notice of

				assessments</header><text>The Corporation shall notify each insured depository

				institution of assessments charged to that institution.</text>

										</subparagraph><subparagraph id="IDC9F15EF5734F4E40B24395F3473AB0A9"><enum>(D)</enum><header>Newly insured

				institutions</header><text>To facilitate the administration of this section,

				the Board of Directors may waive the requirements of subsection (c)(1) and

				subparagraph (A) of this paragraph for any assessment period in which a

				depository institution becomes

				insured.</text>

										</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="IDAA4E0F7D421E4AFA8F860A1B442DE886"><enum>(3)</enum><header>Repeal of

			 separate funds provisions</header><text>Section 11(a) of the

			 <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12

			 U.S.C. 1821(a)) is amended—</text>

							<subparagraph id="IDA18834A5C5AB4195B1847A88DE8ED246"><enum>(A)</enum><text>by striking

			 paragraphs (5), (6), and (7); and</text>

							</subparagraph><subparagraph id="IDC8CCEA4961F84A8B92C3B9359F059A53"><enum>(B)</enum><text>by redesignating

			 paragraph (8) as paragraph (5).</text>

							</subparagraph></paragraph></subsection></section><section id="ID03AA7B14E20844F0982B59ACD8DE7040"><enum>2005.</enum><header>Technical and

			 conforming amendments to the <act-name parsable-cite="FDIA">Federal Deposit

			 Insurance Act</act-name></header>

					<subsection id="IDBC5B6AEFF18A48EFBD9F782E051BE7B2"><enum>(a)</enum><header>In

			 General</header><text>The <act-name parsable-cite="FDIA">Federal Deposit

			 Insurance Act</act-name> (12 U.S.C. 1811 et seq.) is amended—</text>

						<paragraph id="ID070CE614743B4AB39168126DFE991B7A"><enum>(1)</enum><text>in section

			 3(a)(1) (12 U.S.C. 1813(a)(1)), by striking subparagraph (B) and inserting the

			 following:</text>

							<quoted-block id="ID9E97F73672074482B1043FD1C4F953BE" style="OLC">

								<subparagraph id="IDB66342D61B6542FF90CC3086620C766A"><enum>(B)</enum><text>includes any

				former savings

				association.</text>

								</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>

						</paragraph><paragraph id="IDE137516EA488476DAB5BFF970866A09B"><enum>(2)</enum><text>in section

			 5(b)(5) (12 U.S.C. 1815(b)(5)), by striking <quote>the Bank Insurance Fund or

			 the Savings Association Insurance Fund;</quote> and inserting <quote>the

			 Deposit Insurance Fund,</quote>;</text>

						</paragraph><paragraph id="IDA3CD57652951405DAB0DF6C57B0D7C34"><enum>(3)</enum><text>in section

			 5(c)(4), by striking <quote>deposit insurance fund</quote> and inserting

			 <quote>Deposit Insurance Fund</quote>;</text>

						</paragraph><paragraph id="IDD7F8BFF06A8E411FBEB5971140FDFD77"><enum>(4)</enum><text>in section 5(d)

			 (12 U.S.C. 1815(d)), by striking paragraphs (2) and (3);</text>

						</paragraph><paragraph id="IDC0D5C8242B564E27982DA7B831373B87"><enum>(5)</enum><text>in section

			 5(d)(1) (12 U.S.C. 1815(d)(1))—</text>

							<subparagraph id="ID8758E632A7AB4508B8B63EB7503A7B6C"><enum>(A)</enum><text>in subparagraph

			 (A), by striking <quote>reserve ratios in the Bank Insurance Fund and the

			 Savings Association Insurance Fund as required by section 7</quote> and

			 inserting <quote>the reserve ratio of the Deposit Insurance

			 Fund</quote>;</text>

							</subparagraph><subparagraph id="ID3BD965FFCD864AF79E606804A39B26BF"><enum>(B)</enum><text>by striking

			 subparagraph (B) and inserting the following:</text>

								<quoted-block id="ID6B8EADC11C0A42F5ABE0252AC3541008" style="OLC">

									<paragraph id="ID0CC332ECEE384E35AB8AB8DEE8778C11"><enum>(2)</enum><header>Fee credited to

				the deposit insurance fund</header><text>The fee paid by the depository

				institution under paragraph (1) shall be credited to the Deposit Insurance

				Fund.</text>

									</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="ID72DF67269B534F9FB11249FA96613E0B"><enum>(C)</enum><text>by striking

			 <quote><header-in-text>Uninsured institutions</header-in-text>.—</quote> and

			 all that follows through

			 <quote><header-in-text>general</header-in-text>.—</quote> and inserting

			 <quote><header-in-text>Uninsured institutions</header-in-text>.—</quote>;

			 and</text>

							</subparagraph><subparagraph id="IDB70575DEC0934F1EA68FA9246850AEC8"><enum>(D)</enum><text>by redesignating

			 subparagraph (C) as paragraph (3) and moving the margin 2 ems to the

			 left;</text>

							</subparagraph></paragraph><paragraph id="ID3F8847C56D964930BABD42BA823C5DBF"><enum>(6)</enum><text>in section 5(e)

			 (12 U.S.C. 1815(e))—</text>

							<subparagraph id="ID9004CC63EF3C4708AF4845D3D4DC5AA0"><enum>(A)</enum><text>in paragraph

			 (5)(A), by striking <quote>Bank Insurance Fund or the Savings Association

			 Insurance Fund</quote> and inserting <quote>Deposit Insurance

			 Fund</quote>;</text>

							</subparagraph><subparagraph id="ID6266052B57D241E3A67741E9538B403A"><enum>(B)</enum><text>by striking

			 paragraph (6); and</text>

							</subparagraph><subparagraph id="IDB55EF0BE17A1457DBE6F2463C7423BAA"><enum>(C)</enum><text>by redesignating

			 paragraphs (7), (8), and (9) as paragraphs (6), (7), and (8),

			 respectively;</text>

							</subparagraph></paragraph><paragraph id="ID44D72F4BAAB442399F9982C9730AA7D4"><enum>(7)</enum><text>in section 6(5)

			 (12 U.S.C. 1816(5)), by striking <quote>Bank Insurance Fund or the Savings

			 Association Insurance Fund</quote> and inserting <quote>Deposit Insurance

			 Fund</quote>;</text>

						</paragraph><paragraph id="IDD42DCC9931C141F3803E53AFD37BD2A0"><enum>(8)</enum><text>in section

			 7(a)(3) (12 U.S.C. 1817(a)(3))—</text>

							<subparagraph id="ID0B65F4ACB7C8462188C4A2EDC5073505"><enum>(A)</enum><text>by striking

			 <quote>in July</quote>; and</text>

							</subparagraph><subparagraph id="IDFB7D5BEF1B0343BC89C09C8A2EB71108"><enum>(B)</enum><text>by striking

			 <quote>in January</quote>;</text>

							</subparagraph></paragraph><paragraph id="IDD9AC07BE338643719CF60D03B192F67E"><enum>(9)</enum><text>in section 7(b)

			 (12 U.S.C. 1817(b))—</text>

							<subparagraph id="ID6ABEBD6BB914489DBF2077805329FBC5"><enum>(A)</enum><text>in paragraph

			 (1)—</text>

								<clause id="IDE0101B3E28AD4834BC9BEBF71FB65D07"><enum>(i)</enum><text>in

			 subparagraph (B)(ii), by striking <quote>institution’s semiannual

			 assessment</quote> and inserting <quote>assessments for that institution under

			 subsection (b)</quote>; and</text>

								</clause><clause id="IDEA21A29BE32F4CF989493CA2C5FC2EA6"><enum>(ii)</enum><text>in

			 subparagraph (C)—</text>

									<subclause id="ID544D8E79E5664F0B8F5484D036BF7ED6"><enum>(I)</enum><text>by striking

			 <quote>a depository institution’s semiannual assessment</quote> and inserting

			 <quote>assessments for a depository institution under subsection (b)</quote>;

			 and</text>

									</subclause><subclause id="IDFD570F8866B8478593DB82CA3BA6ED69"><enum>(II)</enum><text>by striking

			 <quote>deposit insurance fund</quote> each place that term appears and

			 inserting <quote>Deposit Insurance Fund</quote>;</text>

									</subclause></clause></subparagraph><subparagraph id="ID2DB0DEEFF82F4EC5A8AA25ED411A1EAA"><enum>(B)</enum><text>in paragraph

			 (1)(D), by striking <quote>each deposit insurance fund</quote> and inserting

			 <quote>the Deposit Insurance Fund</quote>;</text>

							</subparagraph><subparagraph id="ID207E388C578D46DDAB15C1E028B466EB"><enum>(C)</enum><text>by striking

			 paragraph (4) and redesignating paragraphs (5) through (7) as paragraphs (4)

			 through (6), respectively;</text>

							</subparagraph><subparagraph id="IDFB14985C5A454F01969AAE938BDE1846"><enum>(D)</enum><text>in paragraph (5),

			 as so redesignated—</text>

								<clause id="IDE90EC5888DDE4A48B7C4D0594CFBAF3E"><enum>(i)</enum><text>by

			 striking <quote>any such assessment</quote> and inserting <quote>any such

			 assessment is necessary</quote>;</text>

								</clause><clause id="ID14396EA691D140A3A2E8240DC2708B51"><enum>(ii)</enum><text>by

			 striking subparagraph (B);</text>

								</clause><clause id="IDBB7B7EDE4FFD4246B1660666A384D3AE"><enum>(iii)</enum><text>in subparagraph

			 (A)—</text>

									<subclause id="IDD4F106A38BEE4A65AE3831CC6695BE83"><enum>(I)</enum><text>by striking

			 <quote>(A) is necessary—</quote>;</text>

									</subclause><subclause id="ID5DA57ED7F1C8415DAFB4606506887E43"><enum>(II)</enum><text>by striking

			 <quote>Bank Insurance Fund members</quote> and inserting <quote>insured

			 depository institutions</quote>; and</text>

									</subclause><subclause id="IDF34E28BD036E4C0BAFFC36FBA2AED6C9"><enum>(III)</enum><text>by

			 redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C),

			 respectively, and moving the margins 2 ems to the left; and</text>

									</subclause></clause><clause id="ID6C0ED11BCDEF4368846AEA5D6D9B91C0"><enum>(iv)</enum><text>in

			 subparagraph (C) (as redesignated)—</text>

									<subclause id="IDB40C064232194865859154730B1A6D60"><enum>(I)</enum><text>by inserting

			 <quote>that</quote> before <quote>the Corporation</quote>; and</text>

									</subclause><subclause id="ID3F67F331A72D4513BC0E585092F582A1"><enum>(II)</enum><text>by striking

			 <quote>; and</quote> and inserting a period; and</text>

									</subclause></clause></subparagraph><subparagraph id="ID64EA712CF850448CA4CD8DFA3668D9FC"><enum>(E)</enum><text>in paragraph (6),

			 as so redesignated, by striking <quote>semiannual assessment</quote> and

			 inserting <quote>assessment under subsection (b)</quote>;</text>

							</subparagraph></paragraph><paragraph id="ID23A1FE085E2F4E58B7121EAD2C5E03AE"><enum>(10)</enum><text>in section 7(c)

			 (12 U.S.C. 1817(c))—</text>

							<subparagraph id="ID66D6DB95FE624FE78881A7EC3E36DF30"><enum>(A)</enum><text>in paragraph (1),

			 by striking <quote>institution’s semiannual assessment</quote> and inserting

			 <quote>assessments for that institution under subsection (b)</quote>;</text>

							</subparagraph><subparagraph id="ID603C6224C43146C6B7C1D13CB6B76B9A"><enum>(B)</enum><text>by striking

			 paragraphs (2) and (3); and</text>

							</subparagraph><subparagraph id="IDC0A85D02D4D043BCB199472B26938230"><enum>(C)</enum><text>by redesignating

			 paragraph (4) as paragraph (2);</text>

							</subparagraph></paragraph><paragraph id="ID6B9AF7049AC84BE6BC12A32740474A02"><enum>(11)</enum><text>in section

			 7(j)(7)(F) (12 U.S.C. 1817(j)(7)(F)), by striking <quote>Bank Insurance Fund or

			 the Savings Association Insurance Fund</quote> and inserting <quote>Deposit

			 Insurance Fund</quote>;</text>

						</paragraph><paragraph id="ID775B200CA0534B95BD58DE4AF88401AD"><enum>(12)</enum><text>in section 8 (12

			 U.S.C. 1818)—</text>

							<subparagraph id="ID727C5AB835424ECAAAD2F30AB0F036B1"><enum>(A)</enum><text>in subsection

			 (p), by striking <quote>semiannual</quote>;</text>

							</subparagraph><subparagraph id="ID49E73845E74740CB87662B345B9EF0C0"><enum>(B)</enum><text>in subsection

			 (q), by striking <quote>semiannual</quote> and inserting

			 <quote>assessment</quote>; and</text>

							</subparagraph><subparagraph id="ID1D65A611E71044D497EF0CA0CEF552DA"><enum>(C)</enum><text>in subsection

			 (t)(2)(C), by striking <quote>deposit insurance fund</quote> and inserting

			 <quote>Deposit Insurance Fund</quote>;</text>

							</subparagraph></paragraph><paragraph id="ID3D6E008A48D048D2B0F432A1029D9193"><enum>(13)</enum><text>in section 11

			 (12 U.S.C. 1821), by striking <quote>deposit insurance fund</quote> each place

			 that term appears and inserting <quote>Deposit Insurance Fund</quote>;</text>

						</paragraph><paragraph id="ID3B036FA2FAA847F68F1CB5868DDD071E"><enum>(14)</enum><text>in section

			 11(f)(1) (12 U.S.C. 1821(f)(1)), by striking <quote>, except that—</quote> and

			 all that follows through the end of the paragraph and inserting a

			 period;</text>

						</paragraph><paragraph id="ID5E78ECECC5824F408D5A8EED2D865A7C"><enum>(15)</enum><text>in section

			 11(i)(3) (12 U.S.C. 1821(i)(3))—</text>

							<subparagraph id="ID8CC814EF403248C8A835CF73E1ECD33D"><enum>(A)</enum><text>by striking

			 subparagraph (B);</text>

							</subparagraph><subparagraph id="IDD3D60A0589994721A35B9E3EA37F5727"><enum>(B)</enum><text>by redesignating

			 subparagraph (C) as subparagraph (B); and</text>

							</subparagraph><subparagraph id="ID18CBE534C44249E3A967C7AEC594B060"><enum>(C)</enum><text>in subparagraph

			 (B) (as redesignated), by striking <quote>subparagraphs (A) and (B)</quote> and

			 inserting <quote>subparagraph (A)</quote>;</text>

							</subparagraph></paragraph><paragraph id="ID087F9F3766D14A4785FD23FCA8E07F4F"><enum>(16)</enum><text>in section

			 11(p)(2)(B) (12 U.S.C. 1821(p)(2)(B)), by striking <quote>institution,

			 any</quote> and inserting <quote>institution, the</quote>;</text>

						</paragraph><paragraph id="ID36A8EE52F1554626A08A4698CC3AE0D7"><enum>(17)</enum><text>in section

			 12(f)(4)(E)(iv) (12 U.S.C. 1822(f)(4)(E)(iv)), by striking <quote>Federal

			 deposit insurance funds</quote> and inserting <quote>the Deposit Insurance

			 Fund, or any predecessor deposit insurance fund</quote>;</text>

						</paragraph><paragraph id="ID55EA9B3E8BB2420B9D9D2B8B1890643A"><enum>(18)</enum><text>in section 13

			 (12 U.S.C. 1823)—</text>

							<subparagraph id="IDE42DCD17CB694DDA9E30BADFBC00DD80"><enum>(A)</enum><text>by striking

			 <quote>deposit insurance fund</quote> each place that term appears and

			 inserting <quote>Deposit Insurance Fund</quote>;</text>

							</subparagraph><subparagraph id="ID5FC0B64A462B46F4A116FBAEDFB50539"><enum>(B)</enum><text>in subsection

			 (a)(1), by striking <quote>Bank Insurance Fund, the Savings Association

			 Insurance Fund,</quote> and inserting <quote>Deposit Insurance

			 Fund</quote>;</text>

							</subparagraph><subparagraph id="ID4D34E56059DA48AFBEFE24173C291D08"><enum>(C)</enum><text>in subsection

			 (c)(4)(E)—</text>

								<clause id="ID3DC266D745DF405D8FB4DF118EC75907"><enum>(i)</enum><text>in

			 the subparagraph heading, by striking <quote><header-in-text level="subparagraph">funds</header-in-text></quote> and inserting

			 <quote><header-in-text level="subparagraph">fund</header-in-text></quote>;

			 and</text>

								</clause><clause id="ID3EAEDF619D9045B58756E10C049FFEF8"><enum>(ii)</enum><text>in

			 clause (i), by striking <quote>any insurance fund</quote> and inserting

			 <quote>the Deposit Insurance Fund</quote>;</text>

								</clause></subparagraph><subparagraph id="IDEA2CB21C0B85471EBB5D20BE37F8F68D"><enum>(D)</enum><text>in subsection

			 (c)(4)(G)(ii)—</text>

								<clause id="ID7D49508897C9422BAF2C3893088B2850"><enum>(i)</enum><text>by

			 striking <quote>appropriate insurance fund</quote> and inserting <quote>Deposit

			 Insurance Fund</quote>;</text>

								</clause><clause id="ID74E98E3012574AC787EA7F2520E0C879"><enum>(ii)</enum><text>by

			 striking <quote>the members of the insurance fund (of which such institution is

			 a member)</quote> and inserting <quote>insured depository

			 institutions</quote>;</text>

								</clause><clause id="IDCFB23DF490DE44848EF9D59BA80CE5AD"><enum>(iii)</enum><text>by striking

			 <quote>each member’s</quote> and inserting <quote>each insured depository

			 institution’s</quote>;</text>

								</clause><clause id="ID03C1778C582D499188077E6A81AFB4C1"><enum>(iv)</enum><text>by

			 striking <quote>the member’s</quote> each place that term appears and inserting

			 <quote>the institution’s</quote>; and</text>

								</clause><clause id="ID742342E10F324E908E524345DDEB574B"><enum>(v)</enum><text>in

			 subclause (II), by striking <quote>semiannual</quote> and inserting

			 <quote>applicable assessment</quote>;</text>

								</clause></subparagraph><subparagraph id="ID0BB08B9F8A5F4E938127D4053FB74DD6"><enum>(E)</enum><text>in subsection

			 (c), by striking paragraph (11);</text>

							</subparagraph><subparagraph id="IDB0B2F7A1273E47CB8745F2873212D647"><enum>(F)</enum><text>in subsection

			 (h), by striking <quote>Bank Insurance Fund</quote> and inserting

			 <quote>Deposit Insurance Fund</quote>;</text>

							</subparagraph><subparagraph id="IDBB486D6CE86E49D7A51404EBFF421CB1"><enum>(G)</enum><text>in subsection

			 (k)(4)(B)(i), by striking <quote>Savings Association Insurance Fund

			 member</quote> and inserting <quote>savings association</quote>; and</text>

							</subparagraph><subparagraph id="ID5343B102347344E2BB190A9F7A57F784"><enum>(H)</enum><text>in subsection

			 (k)(5)—</text>

								<clause id="ID4AE675CB8D60481E88EF842770DECB43"><enum>(i)</enum><text>in

			 subparagraph (A), by striking <quote>Savings Association Insurance Fund

			 members</quote> and inserting <quote>savings associations</quote>;</text>

								</clause><clause id="ID391D529AF9AD4AE982524AEA186E4193"><enum>(ii)</enum><text>by

			 striking <quote>member’s</quote> each place that term appears and inserting

			 <quote>savings association’s</quote>; and</text>

								</clause><clause id="ID07A2A03BA3BD41399348FE7A17FF3891"><enum>(iii)</enum><text>by striking

			 <quote>member</quote> each place that term appears and inserting <quote>savings

			 association</quote>;</text>

								</clause></subparagraph></paragraph><paragraph id="IDB63CECF65D3E4041AE3B1F93648D3058"><enum>(19)</enum><text>in section 14(a)

			 (12 U.S.C. 1824(a)), in the 5th sentence—</text>

							<subparagraph id="IDEE0490AA5D8346AB8FB7B28319996142"><enum>(A)</enum><text>by striking

			 <quote>Bank Insurance Fund or the Savings Association Insurance Fund</quote>

			 and inserting <quote>Deposit Insurance Fund</quote>; and</text>

							</subparagraph><subparagraph id="ID6A882D9C3C8D4C29A9A1497AE0B8714D"><enum>(B)</enum><text>by striking

			 <quote>each such fund</quote> and inserting <quote>the Deposit Insurance

			 Fund</quote>;</text>

							</subparagraph></paragraph><paragraph id="IDA4C9104D2B7A4E01A1BF62FC513BC260"><enum>(20)</enum><text>in section 14(b)

			 (12 U.S.C. 1824(b)), by striking <quote>Bank Insurance Fund or Savings

			 Association Insurance Fund</quote> and inserting <quote>Deposit Insurance

			 Fund</quote>;</text>

						</paragraph><paragraph id="ID500848A8F44048A59FF4A0C5FF221D91"><enum>(21)</enum><text>in section 14(c)

			 (12 U.S.C. 1824(c))—</text>

							<subparagraph id="IDA2B901C4678A4D2CA91E19ED42869A93"><enum>(A)</enum><text>in paragraph

			 (2)(A), by striking <quote>(7)</quote> and inserting <quote>(6)</quote>;

			 and</text>

							</subparagraph><subparagraph id="ID71F983142F0248389E2C2CEE204284F3"><enum>(B)</enum><text>by striking

			 paragraph (3);</text>

							</subparagraph></paragraph><paragraph id="IDB4D70A225C484A86B4AA69F58493076F"><enum>(22)</enum><text>in section 14(d)

			 (12 U.S.C. 1824(d))—</text>

							<subparagraph id="ID5821C38DB1AD4AAA937852924B3B0195"><enum>(A)</enum><text>by striking

			 <quote>Bank Insurance Fund member</quote> each place that term appears and

			 inserting <quote>insured depository institution</quote>;</text>

							</subparagraph><subparagraph id="ID6D28C4A7C2F7433B8ED21067543D2E8F"><enum>(B)</enum><text>by striking

			 <quote>Bank Insurance Fund members</quote> each place that term appears and

			 inserting <quote>insured depository institutions</quote>;</text>

							</subparagraph><subparagraph id="IDAC2CE29ED5F6473AA5BE58BBA13507F9"><enum>(C)</enum><text>by striking

			 <quote>Bank Insurance Fund</quote> each place that term appears (other than in

			 connection with a reference to a Bank Insurance Fund member or members) and

			 inserting <quote>Deposit Insurance Fund</quote>;</text>

							</subparagraph><subparagraph id="ID6424F98D285F46438EF44B5336A50301"><enum>(D)</enum><text>by striking the

			 subsection heading and inserting the following:</text>

								<quoted-block id="IDA40AB552F3DF4B2AA7034CF0C623F528" style="OLC">

									<subsection id="ID88C2EF9B6BE74246912E6E0ABF4F5531"><enum>(d)</enum><header>Borrowing for

				the Deposit Insurance Fund From Insured Depository

				Institutions</header>

									</subsection><after-quoted-block>;</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="ID04ED5E0326184740A61D43C9E24768FF"><enum>(E)</enum><text>in paragraph (3),

			 in the paragraph heading, by striking <quote><header-in-text level="paragraph">bif</header-in-text></quote> and inserting

			 <quote><header-in-text level="paragraph">the deposit insurance

			 fund</header-in-text></quote>; and</text>

							</subparagraph><subparagraph id="ID774B661D97C6401EB3CAB69C45DC96EE"><enum>(F)</enum><text>in paragraph (5),

			 in the paragraph heading, by striking <quote><header-in-text level="paragraph">bif members</header-in-text></quote> and inserting

			 <quote><header-in-text level="paragraph">insured depository

			 institutions</header-in-text></quote>;</text>

							</subparagraph></paragraph><paragraph id="IDE32A5803287B4C8C9CCB8825A071244A"><enum>(23)</enum><text>in section 14

			 (12 U.S.C. 1824), by adding at the end the following:</text>

							<quoted-block id="IDA2A4124CF778459F9FDFAB71245F52B2" style="OLC">

								<subsection id="ID252E84C90FD444789EF9B38D58A11C38"><enum>(e)</enum><header>Borrowing for

				the Deposit Insurance Fund From Federal Home Loan Banks</header>

									<paragraph id="ID736A2BD597934D0085A7719B1381A163"><enum>(1)</enum><header>In

				general</header><text>The Corporation may borrow from the Federal home loan

				banks, with the concurrence of the Federal Housing Finance Board, such funds as

				the Corporation considers necessary for the use of the Deposit Insurance

				Fund.</text>

									</paragraph><paragraph id="ID439D0162DB5E4D26B4DC88B1F740D91A"><enum>(2)</enum><header>Terms and

				conditions</header><text>Any loan from any Federal home loan bank under

				paragraph (1) to the Deposit Insurance Fund shall—</text>

										<subparagraph id="ID4CC482BD87214616A116B8AED7ED3D94"><enum>(A)</enum><text>bear a rate of

				interest of not less than the current marginal cost of funds to that bank,

				taking into account the maturities involved;</text>

										</subparagraph><subparagraph id="ID53387021BA5E4E5BBB2FEEB3BA3DA330"><enum>(B)</enum><text>be adequately

				secured, as determined by the Federal Housing Finance Board; and</text>

										</subparagraph><subparagraph id="IDBFAF81583628412A8A5AC94BA35EF1FE"><enum>(C)</enum><text>be a direct

				liability of the Deposit Insurance

				Fund.</text>

										</subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>

						</paragraph><paragraph id="IDB73A98EDE8FC49BCBE5D715F41A86AE4"><enum>(24)</enum><text>in section

			 15(c)(5) (12 U.S.C. 1825(c)(5))—</text>

							<subparagraph id="ID242BBDF595594DB38016E8DAA74F3DB8"><enum>(A)</enum><text>by striking

			 <quote>the Bank Insurance Fund or Savings Association Insurance Fund,

			 respectively</quote> each place that term appears and inserting <quote>the

			 Deposit Insurance Fund</quote>; and</text>

							</subparagraph><subparagraph id="ID803CE83C27AF4F62A2D11886C5D259B7"><enum>(B)</enum><text>in subparagraph

			 (B), by striking <quote>the Bank Insurance Fund or the Savings Association

			 Insurance Fund, respectively</quote> and inserting <quote>the Deposit Insurance

			 Fund</quote>;</text>

							</subparagraph></paragraph><paragraph id="IDE76DE8F9DFB14116A36596627513BCDC"><enum>(25)</enum><text>in section 17(a)

			 (12 U.S.C. 1827(a))—</text>

							<subparagraph id="ID6D648AB4C7834692B04FD5346AEC3EDC"><enum>(A)</enum><text>in the subsection

			 heading, by striking <quote><header-in-text level="subsection">BIF,

			 SAIF,</header-in-text></quote> and inserting <quote><header-in-text level="subsection">the Deposit Insurance Fund</header-in-text></quote>;

			 and</text>

							</subparagraph><subparagraph id="ID426DECDD17674820A367CCEED4143D4B"><enum>(B)</enum><text>in paragraph

			 (1)—</text>

								<clause id="ID4A36077709134C029A4A230145251EF5"><enum>(i)</enum><text>by

			 striking <quote>the Bank Insurance Fund, the Savings Association Insurance

			 Fund,</quote> each place that term appears and inserting <quote>the Deposit

			 Insurance Fund</quote>; and</text>

								</clause><clause id="IDD1A385769F1B4675A1A1CAE6EAF3114B"><enum>(ii)</enum><text>in

			 subparagraph (D), by striking <quote>each insurance fund</quote> and inserting

			 <quote>the Fund</quote>;</text>

								</clause></subparagraph></paragraph><paragraph id="ID950B6B5004A942CD931F0F9228D1B58C"><enum>(26)</enum><text>in section 17(d)

			 (12 U.S.C. 1827(d)), by striking <quote>, the Bank Insurance Fund, the Savings

			 Association Insurance Fund,</quote> each place that term appears and inserting

			 <quote>the Deposit Insurance Fund</quote>;</text>

						</paragraph><paragraph id="ID9AF2C5BEEB574F3DAB9F32AD39EC5836"><enum>(27)</enum><text>in section 18(m)

			 (12 U.S.C. 1828(m))—</text>

							<subparagraph id="ID860217177BAE4D6D94D009D692F5C2F2"><enum>(A)</enum><text>in paragraph (2),

			 in the matter preceding subparagraph (A), by striking the colon and inserting a

			 dash;</text>

							</subparagraph><subparagraph id="ID8C3456D05BE24D008D52489A5D52368E"><enum>(B)</enum><text>in paragraph

			 (3)(A)—</text>

								<clause id="IDBA3556D31AD144458DF0EFC605917B46"><enum>(i)</enum><text>by

			 striking <quote>poses a serious threat to the Savings Association Insurance

			 Fund</quote> and inserting <quote>of an insured savings association poses a

			 serious threat to the Deposit Insurance Fund</quote>; and</text>

								</clause><clause id="IDA6204C73575145229091256C88E5195B"><enum>(ii)</enum><text>by

			 striking <quote>Savings Association Insurance Fund member</quote> and inserting

			 <quote>insured savings association</quote>; and</text>

								</clause></subparagraph><subparagraph id="ID9AC100130CFC451FA0DC984E015BF724"><enum>(C)</enum><text>in paragraph

			 (3)(C), by striking <quote>Savings Association Insurance Fund or the Bank

			 Insurance Fund</quote> and inserting <quote>Deposit Insurance

			 Fund</quote>;</text>

							</subparagraph></paragraph><paragraph id="ID6F9038FCAB4C4764919C0E2658CF57E9"><enum>(28)</enum><text>in section 18(o)

			 (12 U.S.C. 1828(o)), by striking <quote>deposit insurance funds</quote> and

			 <quote>deposit insurance fund</quote> each place those terms appear and

			 inserting <quote>Deposit Insurance Fund</quote>;</text>

						</paragraph><paragraph id="ID0573BE451D474DD0BF9E3A78B27A73F7"><enum>(29)</enum><text>in section 18(p)

			 (12 U.S.C. 1828(p)), by striking <quote>deposit insurance funds</quote> and

			 inserting <quote>Deposit Insurance Fund</quote>;</text>

						</paragraph><paragraph id="ID8A6E4632F0EE42DE97FA517746127DFD"><enum>(30)</enum><text>in section 24

			 (12 U.S.C. 1831a)—</text>

							<subparagraph id="ID5EFF12CA434C4238A07D647AFD6E2296"><enum>(A)</enum><text>in subsections

			 (a)(1) and (d)(1)(A), by striking <quote>appropriate deposit insurance

			 fund</quote> each place that term appears and inserting <quote>Deposit

			 Insurance Fund</quote>;</text>

							</subparagraph><subparagraph id="ID54DD964B48744AE0AB8709795480B189"><enum>(B)</enum><text>in subsection

			 (e)(2)(A), by striking <quote>risk to</quote> and all that follows through the

			 period and inserting <quote>risk to the Deposit Insurance Fund.</quote>;

			 and</text>

							</subparagraph><subparagraph id="ID5FE00C7B763D4F2AB7B8D5CAD59037C0"><enum>(C)</enum><text>in subsections

			 (e)(2)(B)(ii) and (f)(6)(B), by striking <quote>the insurance fund of which

			 such bank is a member</quote> each place that term appears and inserting

			 <quote>the Deposit Insurance Fund</quote>;</text>

							</subparagraph></paragraph><paragraph id="IDA2B67D87BE7C4FFD9F94FB09BB0C2AA5"><enum>(31)</enum><text>in section 28

			 (12 U.S.C. 1831e), by striking <quote>affected deposit insurance fund</quote>

			 each place that term appears and inserting <quote>Deposit Insurance

			 Fund</quote>;</text>

						</paragraph><paragraph id="ID179F4D5BFB5A42969A9E1DEAD44DEC97"><enum>(32)</enum><text>by striking

			 section 31 (12 U.S.C. 1831h);</text>

						</paragraph><paragraph id="IDE0ECFD752C2F49F0A80E59EF41A00E11"><enum>(33)</enum><text>in section

			 36(i)(3) (12 U.S.C. 1831m(i)(3)), by striking <quote>affected deposit insurance

			 fund</quote> and inserting <quote>Deposit Insurance Fund</quote>;</text>

						</paragraph><paragraph id="ID61478082D9DC4CED93243629C28D4C01"><enum>(34)</enum><text>in section

			 37(a)(1)(C) (12 U.S.C. 1831n(a)(1)(C)), by striking <quote>insurance

			 funds</quote> and inserting <quote>Deposit Insurance Fund</quote>;</text>

						</paragraph><paragraph id="IDD789CA9786B84133B1DC17D23CEA341D"><enum>(35)</enum><text>in section 38

			 (12 U.S.C. 1831o), by striking <quote>the deposit insurance fund</quote> each

			 place that term appears and inserting <quote>the Deposit Insurance

			 Fund</quote>;</text>

						</paragraph><paragraph id="IDBA2CDDD1FDA748B9800A5B04A99979F3"><enum>(36)</enum><text>in section 38(a)

			 (12 U.S.C. 1831o(a)), in the subsection heading, by striking

			 <quote><header-in-text level="subsection">Funds</header-in-text></quote> and

			 inserting <quote><header-in-text level="subsection">Fund</header-in-text></quote>;</text>

						</paragraph><paragraph id="ID29EA02039F484941B859903DBC8EA0C0"><enum>(37)</enum><text>in section 38(k)

			 (12 U.S.C. 1831o(k))—</text>

							<subparagraph id="ID95EA21DE08154B5E9CBCCF9BBC518862"><enum>(A)</enum><text>in paragraph (1),

			 by striking <quote>a deposit insurance fund</quote> and inserting <quote>the

			 Deposit Insurance Fund</quote>;</text>

							</subparagraph><subparagraph id="IDF007329BD9F44C41BC187D94553F5472"><enum>(B)</enum><text>in paragraph (2),

			 by striking <quote>A deposit insurance fund</quote> and inserting <quote>The

			 Deposit Insurance Fund</quote>; and</text>

							</subparagraph><subparagraph id="IDF821C72838D74DBA9CE447867EAB7785"><enum>(C)</enum><text>in paragraphs

			 (2)(A) and (3)(B), by striking <quote>the deposit insurance fund’s

			 outlays</quote> each place that term appears and inserting <quote>the outlays

			 of the Deposit Insurance Fund</quote>; and</text>

							</subparagraph></paragraph><paragraph id="ID864CD6E869684E35AEDE4B2F0F9EAE86"><enum>(38)</enum><text>in section 38(o)

			 (12 U.S.C. 1831o(o))—</text>

							<subparagraph id="IDFB1A8033102242C0A5323D6BF4F2DA99"><enum>(A)</enum><text>by striking

			 <quote><header-in-text>Associations</header-in-text>.—</quote> and all that

			 follows through <quote>Subsections (e)(2)</quote> in paragraph (2) and

			 inserting <quote><header-in-text>Associations</header-in-text>.—Subsections

			 (e)(2)</quote>;</text>

							</subparagraph><subparagraph id="ID72142FA7C4E849E2AE38FE46B24795CD"><enum>(B)</enum><text>by redesignating

			 subparagraphs (A), (B), and (C) as paragraphs (1), (2), and (3), respectively,

			 and moving the margins 2 ems to the left; and</text>

							</subparagraph><subparagraph id="IDC9B8C931808C498C8EDE404E6AE74F2A"><enum>(C)</enum><text>in paragraph (1)

			 (as so redesignated), by redesignating clauses (i) and (ii) as subparagraphs

			 (A) and (B), respectively, and moving the margins 2 ems to the left.</text>

							</subparagraph></paragraph></subsection><subsection id="IDDF822A973CA641D2B3F4F9B1529ED2B0"><enum>(b)</enum><header>Conforming

			 Transfer of Funds</header><text>Any funds resulting from the application of

			 section 7(d)(2) of the <act-name parsable-cite="FDIA">Federal Deposit Insurance

			 Act</act-name> prior to its repeal under subsection (a)(4) of this section

			 shall be deposited into the general fund of the Deposit Insurance Fund

			 established pursuant to this subtitle.</text>

					</subsection></section><section id="IDA79ABB4E24834DCB8D72CE2B219CED6E"><enum>2006.</enum><header>Other

			 technical and conforming amendments</header>

					<subsection id="ID6A27C55F55C84C3B98B793648FCC0D90"><enum>(a)</enum><header>Section

			 <enum-in-header>5136</enum-in-header> of the Revised Statutes</header><text>The

			 paragraph designated the <quote>Eleventh</quote> of section 5136 of the Revised

			 Statutes of the United States (12 U.S.C. 24) is amended in the 5th sentence, by

			 striking <quote>affected deposit insurance fund</quote> and inserting

			 <quote>Deposit Insurance Fund</quote>.</text>

					</subsection><subsection id="IDF6C28F41BA3E41F1BF09E695FA6107BB"><enum>(b)</enum><header>Investments

			 Promoting Public Welfare; Limitations on Aggregate

			 Investments</header><text>The 23d undesignated paragraph of section 9 of the

			 <act-name parsable-cite="FRA">Federal Reserve Act</act-name> (12 U.S.C. 338a)

			 is amended in the 4th sentence, by striking <quote>affected deposit insurance

			 fund</quote> and inserting <quote>Deposit Insurance Fund</quote>.</text>

					</subsection><subsection id="ID8A7997929D0A4B5FB44F9731EB7ADE44"><enum>(c)</enum><header>Advances to

			 Critically Undercapitalized Depository Institutions</header><text>Section

			 10B(b)(3)(A)(ii) of the <act-name parsable-cite="FRA">Federal Reserve

			 Act</act-name> (12 U.S.C. 347b(b)(3)(A)(ii)) is amended by striking <quote>any

			 deposit insurance fund in</quote> and inserting <quote>the Deposit Insurance

			 Fund of</quote>.</text>

					</subsection><subsection id="ID5172702D165349508DB7AB993B7A5279"><enum>(d)</enum><header>Amendments to

			 the <act-name parsable-cite="FHLBA">Federal Home Loan Bank

			 Act</act-name></header><text>The <act-name parsable-cite="FHLBA">Federal Home

			 Loan Bank Act</act-name> (12 U.S.C. 1421 et seq.) is amended—</text>

						<paragraph id="ID428BE568F7974EBEB11902551839A772"><enum>(1)</enum><text>in section 11(k)

			 (12 U.S.C. 1431(k))—</text>

							<subparagraph id="IDB1F153CD78C0473780DA305A24364A4C"><enum>(A)</enum><text>in the subsection

			 heading, by striking <quote><header-in-text level="subsection">SAIF</header-in-text></quote> and inserting

			 <quote><header-in-text level="subsection">the Deposit Insurance

			 Fund</header-in-text></quote>; and</text>

							</subparagraph><subparagraph id="IDDE0BEEA9ED594522913FCF980D4AD320"><enum>(B)</enum><text>by striking

			 <quote>Savings Association Insurance Fund</quote> each place that term appears

			 and inserting <quote>Deposit Insurance Fund</quote>;</text>

							</subparagraph></paragraph><paragraph id="IDB4E2786312824315ACAD3DECBBDB6D5C"><enum>(2)</enum><text>in section 21 (12

			 U.S.C. 1441)—</text>

							<subparagraph id="ID10BCC7CEB5B043B18ED25BC5B0A505C4"><enum>(A)</enum><text>in subsection

			 (f)(2), by striking <quote>, except that</quote> and all that follows through

			 the end of the paragraph and inserting a period; and</text>

							</subparagraph><subparagraph id="ID1F51FD7CC4054B4795B78509D64F18CC"><enum>(B)</enum><text>in subsection

			 (k), by striking paragraph (4);</text>

							</subparagraph></paragraph><paragraph id="IDB34D43C2A19C49C1971AAF13410E1270"><enum>(3)</enum><text>in section

			 21A(b)(4)(B) (12 U.S.C. 1441a(b)(4)(B)), by striking <quote>affected deposit

			 insurance fund</quote> and inserting <quote>Deposit Insurance Fund</quote>;

			 and</text>

						</paragraph><paragraph id="IDC97B3B1C543F4DDC91724957B1A4EEDE"><enum>(4)</enum><text>in section 21B(k)

			 (12 U.S.C. 1441b(k)) by inserting before the colon <quote>, the following

			 definitions shall apply</quote>.</text>

						</paragraph></subsection><subsection id="ID0BDD0B218FD04A60A6161076C0A50427"><enum>(e)</enum><header>Amendments to

			 the <act-name parsable-cite="HOLA">Home Owners’ Loan

			 Act</act-name></header><text>The <act-name parsable-cite="HOLA">Home Owners’

			 Loan Act</act-name> (12 U.S.C. 1461 et seq.) is amended—</text>

						<paragraph id="ID532E8C4611394DBBBBBDAB8BFF37CF2D"><enum>(1)</enum><text>in section 5 (12

			 U.S.C. 1464)—</text>

							<subparagraph id="ID5B38F8D801224D5DA940F37639D90261"><enum>(A)</enum><text>in subsection

			 (c)(6), by striking <quote>As used in this subsection—</quote> and inserting

			 <quote>For purposes of this subsection, the following definitions shall

			 apply:</quote>;</text>

							</subparagraph><subparagraph id="IDAC3C5C2671724EE8BC5194B74C746775"><enum>(B)</enum><text>in subsection

			 (o)(1), by striking <quote>that is a Bank Insurance Fund member</quote>;</text>

							</subparagraph><subparagraph id="IDDA256AF37A81442D9872876669C9D290"><enum>(C)</enum><text>in subsection

			 (o)(2)(A), by striking <quote>a Bank Insurance Fund member until such time as

			 it changes its status to a Savings Association Insurance Fund member</quote>

			 and inserting <quote>insured by the Deposit Insurance Fund</quote>;</text>

							</subparagraph><subparagraph id="IDFDB661399E9A4CD786FCAF94E9993402"><enum>(D)</enum><text>in subsection

			 (t)(5)(D)(iii)(II), by striking <quote>affected deposit insurance fund</quote>

			 and inserting <quote>Deposit Insurance Fund</quote>;</text>

							</subparagraph><subparagraph id="ID619049E7E86B4F468320DAAF8C77A61F"><enum>(E)</enum><text>in subsection

			 (t)(7)(C)(i)(I), by striking <quote>affected deposit insurance fund</quote> and

			 inserting <quote>Deposit Insurance Fund</quote>; and</text>

							</subparagraph><subparagraph id="ID4C33DB4A43004E39A431D1BEA9F76A10"><enum>(F)</enum><text>in subsection

			 (v)(2)(A)(i), by striking <quote>the Savings Association Insurance Fund</quote>

			 and inserting <quote>or the Deposit Insurance Fund</quote>; and</text>

							</subparagraph></paragraph><paragraph id="ID33AB2F7DED2E46339980C95AB03EA296"><enum>(2)</enum><text>in section 10 (12

			 U.S.C. 1467a)—</text>

							<subparagraph id="IDED2FEE2B7E7A4EB69681DB2A6D334FE3"><enum>(A)</enum><text>in subsection

			 (c)(6)(D), by striking <quote>this title</quote> and inserting <quote>this

			 Act</quote>;</text>

							</subparagraph><subparagraph id="ID173EF934043A4A509F17EAAD8A9BE5EE"><enum>(B)</enum><text>in subsection

			 (e)(1)(B), by striking <quote>Savings Association Insurance Fund or Bank

			 Insurance Fund</quote> and inserting <quote>Deposit Insurance

			 Fund</quote>;</text>

							</subparagraph><subparagraph id="ID20C4905B90514920898B1DD992A61570"><enum>(C)</enum><text>in subsection

			 (e)(2), by striking <quote>Savings Association Insurance Fund or the Bank

			 Insurance Fund</quote> and inserting <quote>Deposit Insurance

			 Fund</quote>;</text>

							</subparagraph><subparagraph id="IDA63E9F9AFFBC46C3B75C92AF83566E15"><enum>(D)</enum><text>in subsection

			 (e)(4)(B), by striking <quote>subsection (1)</quote> and inserting

			 <quote>subsection (l)</quote>;</text>

							</subparagraph><subparagraph id="ID8A439101B8E34A01BC3635ECA7B31092"><enum>(E)</enum><text>in subsection

			 (g)(3)(A), by striking <quote>(5) of this section</quote> and inserting

			 <quote>(5) of this subsection</quote>;</text>

							</subparagraph><subparagraph id="ID033633BBE0834792A5F306EF31F20EB7"><enum>(F)</enum><text>in subsection

			 (i), by redesignating paragraph (5) as paragraph (4);</text>

							</subparagraph><subparagraph id="IDABF0C8C5F199489DBC91F346C204525C"><enum>(G)</enum><text>in subsection

			 (m)(3), by striking subparagraph (E), and by redesignating subparagraphs (F),

			 (G), and (H) as subparagraphs (E), (F), and (G), respectively;</text>

							</subparagraph><subparagraph id="ID8392B17A7B134D63BCD20AB00F13C188"><enum>(H)</enum><text>in subsection

			 (m)(7)(A), by striking <quote>during period</quote> and inserting <quote>during

			 the period</quote>; and</text>

							</subparagraph><subparagraph id="ID9B234A9908C34279801D3F84AF634CAC"><enum>(I)</enum><text>in subsection

			 (o)(3)(D), by striking <quote>sections 5(s) and (t) of this Act</quote> and

			 inserting <quote>subsections (s) and (t) of section 5</quote>.</text>

							</subparagraph></paragraph></subsection><subsection id="ID390F995F10FB4817A457756346F840E4"><enum>(f)</enum><header>Amendments to

			 the <act-name parsable-cite="NHA">National Housing

			 Act</act-name></header><text>The <act-name parsable-cite="NHA">National Housing

			 Act</act-name> (12 U.S.C. 1701 et seq.) is amended—</text>

						<paragraph id="ID0A09529A93A24D69B3D9DEF24732D1CE"><enum>(1)</enum><text>in section

			 317(b)(1)(B) (12 U.S.C. 1723i(b)(1)(B)), by striking <quote>Bank Insurance Fund

			 for banks or through the Savings Association Insurance Fund for savings

			 associations</quote> and inserting <quote>Deposit Insurance Fund</quote>;

			 and</text>

						</paragraph><paragraph id="IDB409AEEBD49B4E3082A42C8CF42A218A"><enum>(2)</enum><text>in section

			 536(b)(1)(B)(ii) (12 U.S.C. 1735f–14(b)(1)(B)(ii)), by striking <quote>Bank

			 Insurance Fund for banks and through the Savings Association Insurance Fund for

			 savings associations</quote> and inserting <quote>Deposit Insurance

			 Fund</quote>.</text>

						</paragraph></subsection><subsection id="ID6F58A198F8DF4D13A197FFBD8C63CD5B"><enum>(g)</enum><header>Amendments to

			 the Financial Institutions Reform, Recovery, and Enforcement Act of

			 1989</header><text>The Financial Institutions Reform, Recovery, and Enforcement

			 Act of 1989 (12 U.S.C. 1811 note) is amended—</text>

						<paragraph id="IDAF0ABA18138041DFA22D8F879425ACE8"><enum>(1)</enum><text>in section

			 951(b)(3)(B) (12 U.S.C. 1833a(b)(3)(B)), by striking <quote>Bank Insurance

			 Fund, the Savings Association Insurance Fund,</quote> and inserting

			 <quote>Deposit Insurance Fund (or any predecessor deposit insurance

			 fund)</quote>; and</text>

						</paragraph><paragraph id="IDD408D4256D7F4D7A8315B117A10E783B"><enum>(2)</enum><text>in section

			 1112(c)(1)(B) (12 U.S.C. 3341(c)(1)(B)), by striking <quote>Bank Insurance

			 Fund, the Savings Association Insurance Fund,</quote> and inserting

			 <quote>Deposit Insurance Fund</quote>.</text>

						</paragraph></subsection><subsection id="ID5F31EFE05E024FCC8DEBAA92B6F5282B"><enum>(h)</enum><header>Amendment to

			 the <act-name parsable-cite="BHC65">Bank Holding Company Act of

			 1956</act-name></header><text>The <act-name parsable-cite="BHC65">Bank Holding

			 Company Act of 1956</act-name> (12 U.S.C. 1841 et seq.) is amended—</text>

						<paragraph id="IDC2064798D48844C9874FF3D53255C0B8"><enum>(1)</enum><text>in section

			 2(j)(2) (12 U.S.C. 1841(j)(2)), by striking <quote>Savings Association

			 Insurance Fund</quote> and inserting <quote>Deposit Insurance Fund</quote>;

			 and</text>

						</paragraph><paragraph id="ID83FBD7AC45E244AA9798EFA9D7C5D320"><enum>(2)</enum><text>in section

			 3(d)(1)(D)(iii) (12 U.S.C. 1842(d)(1)(D)(iii)), by striking <quote>appropriate

			 deposit insurance fund</quote> and inserting <quote>Deposit Insurance

			 Fund</quote>.</text>

						</paragraph></subsection><subsection id="ID22C835AAB3754232A2FD31F7A0303F33"><enum>(i)</enum><header>Amendments to

			 the Gramm-Leach-Bliley Act</header><text>Section 114 of the Gramm-Leach-Bliley

			 Act (12 U.S.C. 1828a) is amended in each of subsection (a)(1)(B), paragraphs

			 (2)(B) and (4)(B) of subsection (b), and subsection (c)(1)(B), by striking

			 <quote>any Federal deposit insurance fund</quote> and inserting <quote>the

			 Deposit Insurance Fund</quote>.</text>

					</subsection></section><section id="ID4DE0FC873A6D4F5FB72112A08C248C18"><enum>2007.</enum><header>Effective

			 date</header>

					<subsection id="IDB190FD32654248198654FED605298E40"><enum>(a)</enum><header>In

			 General</header><text>Except as otherwise provided in this subtitle, this

			 subtitle and the amendments made by this subtitle shall become effective not

			 later than the first day of the first calendar quarter that begins more than 90

			 days after the date of enactment of this Act.</text>

					</subsection><subsection id="ID2F85AC9D8022492F9B99AC1D9D71FC0E"><enum>(b)</enum><header>Earlier

			 Implementation</header>

						<paragraph id="ID93A6FD7A2F9748D5B384BFD164E48518"><enum>(1)</enum><header>Corporation

			 determination</header><text>If the Corporation determines that merger of the

			 deposit insurance funds should occur before the first day of the first calendar

			 quarter as described in subsection (a), the Corporation shall—</text>

							<subparagraph id="ID79682BADB49D45969DA03AF9DE3E7194"><enum>(A)</enum><text>announce such

			 determination publicly; and</text>

							</subparagraph><subparagraph id="ID2DBE08F9F44A46879802FF78570F00E6"><enum>(B)</enum><text>establish the

			 effective date of the merger.</text>

							</subparagraph></paragraph><paragraph id="ID87DD10EC2971409AA5512AD705D4EBE7"><enum>(2)</enum><header>Earlier

			 effective date</header><text>On the date established under paragraph (1)(B),

			 this subtitle and the amendments made by this subtitle shall become

			 effective.</text>

						</paragraph></subsection></section></subtitle><subtitle id="IDA6B232108BB144F882ED5C409B5467F7"><enum>B</enum><header>Deposit Insurance

			 Modernization and Improvement</header>

				<section id="ID7D4364E37DAC4138803831FF7A79DC59"><enum>2011.</enum><header>Short

			 title</header><text display-inline="no-display-inline">This subtitle may be

			 cited as the <quote>Deposit Insurance Reform Act of 2005</quote>.</text>

				</section><section id="ID160AED44C04348D7A8740DF01E9A9E07"><enum>2012.</enum><header>Changes to

			 Federal deposit insurance coverage</header>

					<subsection id="IDC26FFF35A5D946DEA9731A3E3B6840C9"><enum>(a)</enum><header>Insured

			 Depository Institutions</header>

						<paragraph id="IDBD73AAFE2BF440F0913B78E00498BC58"><enum>(1)</enum><header>In

			 general</header><text>Section 11(a)(1) of the <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12 U.S.C.

			 1821(a)(1)) is amended—</text>

							<subparagraph id="ID0D368AE2601944D594E8EFEA95E23F3B"><enum>(A)</enum><text>by striking

			 subparagraph (B) and inserting the following:</text>

								<quoted-block id="ID293C17098DCF449CB7990016EFB59E4C" style="OLC">

									<subparagraph id="IDAF90E4544B644A32984CA92E8176D355"><enum>(B)</enum><header>Net amount of

				insured deposits</header><text>The net amount of deposit insurance payable to

				any depositor at an insured depository institution shall not exceed the

				standard maximum deposit insurance amount, as determined in accordance with

				subparagraphs (C) through (M).</text>

									</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="IDDA397F831A0F43E0872761E38725B43B"><enum>(B)</enum><text>by striking

			 subparagraph (D) and inserting the following:</text>

								<quoted-block id="IDB271AB9895E24E2F9225213B3FB7383E" style="OLC">

									<subparagraph id="IDD99CF1CC48774955AEEDBFE3E4DC49C0"><enum>(D)</enum><header>Coverage for

				certain employee benefit plan deposits</header>

										<clause id="IDC2B5BCFBD024456EBC39D07DE8D58BE2"><enum>(i)</enum><header>Pass-through

				insurance</header><text>The Corporation shall provide pass-through deposit

				insurance for the deposits of any employee benefit plan.</text>

										</clause><clause id="ID5C3DBE4DA89C4F26A7EDC1A6ED9786F3"><enum>(ii)</enum><header>Prohibition on

				acceptance of benefit plan deposits</header><text>An insured depository

				institution that is not well capitalized or adequately capitalized may not

				accept employee benefit plan deposits.</text>

										</clause><clause id="IDAF153BFF7E6246C4AFBD9B0B54B906CB"><enum>(iii)</enum><header>Definitions</header><text>For

				purposes of this subparagraph, the following definitions shall apply:</text>

											<subclause id="IDE41A74EC360E4A0CBEAF50D515B666C2"><enum>(I)</enum><header>Capital

				standards</header><text>The terms <term>well capitalized</term> and

				<term>adequately capitalized</term> have the same meanings as in section

				38.</text>

											</subclause><subclause id="IDD1C8BD5750DF48DB860C9B2DBE9DB75E"><enum>(II)</enum><header>Employee

				benefit plan</header><text>The term <term>employee benefit plan</term> has the

				same meaning as in paragraph (5)(B)(ii), and includes any eligible deferred

				compensation plan described in section 457 of the Internal Revenue Code of

				1986.</text>

											</subclause><subclause id="IDDED70D717BA345669C0C001518AF5633"><enum>(III)</enum><header>Pass-through

				deposit insurance</header><text>The term <term>pass-through deposit

				insurance</term> means, with respect to an employee benefit plan, deposit

				insurance coverage based on the interest of each participant, in accordance

				with regulations issued by the Corporation.</text>

											</subclause></clause></subparagraph><subparagraph id="ID11F948AD283F4ED6BBC9CEA0945FDCEF"><enum>(E)</enum><header>Standard

				maximum deposit insurance amount defined</header><text>For purposes of this

				paragraph, the term <term>standard maximum deposit insurance amount</term>

				means, until April 1, 2010, $100,000.</text>

									</subparagraph><subparagraph id="IDE0895D76D9D347B7BA8091BD4AD741BC"><enum>(F)</enum><header>Determination

				regarding inflation adjustments</header>

										<clause id="IDC9B8C4217BF1423A9D7294DD349763B2"><enum>(i)</enum><header>Adjustments to

				standard maximum deposit insurance amount</header><text>Not later than April 1,

				2010, and the first day of each 5-year period thereafter, the Board of

				Directors shall determine whether to increase the standard maximum deposit

				insurance amount based on the factors set forth under subparagraph (G).</text>

										</clause><clause id="ID893D7DA3876049FF8B316915B3162D4B"><enum>(ii)</enum><header>Adjustments

				for certain retirement accounts</header><text>Not later than April 1, 2010, and

				the first day of each 5-year period thereafter, the Board of Directors shall

				determine whether to increase the amount of insurance available for retirement

				accounts under paragraph (3), based on the factors set forth under subparagraph

				(G).</text>

										</clause></subparagraph><subparagraph id="IDEED4ED19BCE6459DB9E0EE7FFAD9EA29"><enum>(G)</enum><header>Inflation

				adjustment considerations</header><text>In making any determination under

				subparagraph (F), the Board of Directors shall consider—</text>

										<clause id="ID63A24C4143DF4014B59AFD23A5C2B770"><enum>(i)</enum><text>the economic

				conditions affecting insured depository institutions;</text>

										</clause><clause id="ID9C25D5D9AEE645389AB2F9340BC38B25"><enum>(ii)</enum><text>the overall risk

				or risks to the Deposit Insurance Fund;</text>

										</clause><clause id="ID6CCA36DA6FB44597A56C2A8DC16BE7B9"><enum>(iii)</enum><text>a demonstrated

				need by depositors for the inflation adjustment increase;</text>

										</clause><clause id="IDB949EF30BB8E40C28D93F598DED61675"><enum>(iv)</enum><text>the ability of

				insured depository institutions to identify and obtain alternative funding

				sources;</text>

										</clause><clause id="IDEFAE40618B2043E9A9222AB16C5AA318"><enum>(v)</enum><text>the ability of

				insured depository institutions to meet the credit needs of their

				communities;</text>

										</clause><clause id="ID5EDD8AB8D0FC4FA4BD9DA7151AB9CD5B"><enum>(vi)</enum><text>potential

				problems affecting insured depository institutions generally or a specific

				group or type of insured depository institutions; and</text>

										</clause><clause id="ID4F8A516192F2449796E55568EBB57C7F"><enum>(vii)</enum><text>any other

				factors that the Board of Directors deems appropriate.</text>

										</clause></subparagraph><subparagraph id="ID99F0AF0705C0447D91A366259185B4C3"><enum>(H)</enum><header>Inflation

				adjustment calculations for 2010</header>

										<clause id="ID46EA06834F0C4F0E95FA38D273EA74FB"><enum>(i)</enum><header>Calculation for

				standard maximum deposit insurance amount</header><text>The amount provided for

				any increase in the standard maximum deposit insurance amount shall be, as of

				April 1, 2010, the product of—</text>

											<subclause id="IDD986F7D4072B49ED8578436CE7891CED"><enum>(I)</enum><text>$100,000;

				and</text>

											</subclause><subclause id="IDD19AF21C8D0E4AFB8BCEB268E3FD7B0B"><enum>(II)</enum><text>the ratio of the

				value of the Personal Consumption Expenditures Chain-Type Index (or any

				successor index thereto), published by the Department of Commerce, for December

				31 of the year preceding the year in which the adjustment is calculated under

				this subparagraph, to the value of such index for December 31 of the year

				preceding the effective date of the Safe and Fair Deposit Insurance Act of

				2005.</text>

											</subclause></clause><clause id="ID1BE7ACC3ABC44CF79A469CE139ACF9CF"><enum>(ii)</enum><header>Calculation

				for certain retirement accounts for 2010</header><text>The amount provided for

				any increase in the insurance for retirement accounts under paragraph (3) shall

				be, as of April 1, 2010, the product of—</text>

											<subclause id="ID1161A0B080684FB9AE07EA4755E957D9"><enum>(I)</enum><text>$250,000;

				and</text>

											</subclause><subclause id="ID34772D54E1F249699EF9E4589A1248A4"><enum>(II)</enum><text>the ratio of the

				value of the Personal Consumption Expenditures Chain-Type Index (or any

				successor index thereto), published by the Department of Commerce, for December

				31 of the year preceding the year in which the adjustment is calculated under

				this subparagraph, to the value of such index for December 31 of the year

				preceding the effective date of the Safe and Fair Deposit Insurance Act of

				2005.</text>

											</subclause><subclause id="IDE02BEAEE482D4FD59241BF1180A3D28E" indent="up2"><enum>(I)</enum><header>Inflation adjustment calculations

				after 2010</header>

											</subclause></clause><clause id="IDF2E3D9FB33984029B915834472D650EF"><enum>(i)</enum><header>Calculation for

				the standard maximum deposit insurance amount</header><text>The amount provided

				for any increase in the standard maximum deposit insurance amount shall be, as

				of the 1st day of each 5-year period beginning on April 1, 2015, the product

				of—</text>

											<subclause id="ID2A7601A2B3F447CC82751802E633E4AA"><enum>(I)</enum><text>the standard

				maximum deposit insurance amount; and</text>

											</subclause><subclause id="ID9CEA66836CED4066815669B5A120C30B"><enum>(II)</enum><text>the ratio of the

				value of the Personal Consumption Expenditures Chain-Type Index (or any

				successor index thereto), published by the Department of Commerce, for December

				31 of the year preceding the year in which the adjustment is calculated under

				this subparagraph, to the value of such index for December 31 of the 6 years

				prior to the year in which the adjustment is calculated under this

				subparagraph.</text>

											</subclause></clause><clause id="IDD98EBCA3C9D54AAA86EDC162DADB56C1"><enum>(ii)</enum><header>Calculation

				for certain retirement accounts</header><text>The amount provided for any

				increase in the insurance for retirement accounts under paragraph (3) shall be,

				as of the 1st day of each 5-year period beginning on April 1, 2015, the product

				of—</text>

											<subclause id="ID4BBD1BD5143B43F6891E335B2D6FAB9C"><enum>(I)</enum><text>the amount

				available for retirement accounts under paragraph (3), as adjusted pursuant to

				subparagraph (H) or this subparagraph, as appropriate; and</text>

											</subclause><subclause id="IDDA51808FAB9244E89B8E28FD3F6CE999"><enum>(II)</enum><text>the ratio of the

				value of the Personal Consumption Expenditures Chain-Type Index (or any

				successor index thereto), published by the Department of Commerce, for December

				31 of the year preceding the year in which the adjustment is calculated under

				this subparagraph, to the value of such index for December 31 of the 6 years

				prior to the year in which the adjustment is calculated under this

				subparagraph.</text>

											</subclause></clause></subparagraph><subparagraph id="ID626C9A62B317468586240844799213EF"><enum>(J)</enum><header>Determination

				of no inflation increases</header><text>If the Board cannot support an increase

				under subparagraph (F) after consideration of the factors in subparagraph (G),

				no inflation adjustment shall be made until reconsideration at the beginning of

				the next 5-year period.</text>

									</subparagraph><subparagraph id="IDA442FB82921946B6991F00878A2FB4F1"><enum>(K)</enum><header>Rounding</header><text>If

				the amount of increase determined for any period is not a multiple of $10,000,

				the amount so determined shall be rounded to the nearest $10,000.</text>

									</subparagraph><subparagraph id="IDAB1143BC69414E548877AC26C506B95D"><enum>(L)</enum><header>Publication</header><text>Not

				later than April 1, 2010, and not later than the first day of each 5-year

				period thereafter, the Board of Directors shall publish in the Federal Register

				the standard maximum deposit insurance amount and the amount of deposit

				insurance coverage that may be due to any depositor at any insured depository

				institution during the applicable 5-year period.</text>

									</subparagraph><subparagraph id="ID32DAA62352944FC2801E99B8A37F7DC4"><enum>(M)</enum><header>No inflation

				adjustments for public funds</header><text>Subparagraphs (E) through (L) shall

				not apply to any deposits of depositors described in paragraph (2), and the net

				amount due to any such depositor at an insured depository institution shall not

				exceed

				$100,000.</text>

									</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="IDF9F1781FAB8E459C806BEBD6A1F98AC5"><enum>(2)</enum><header>Deposit

			 insurance for retirement accounts</header><text>Section 11(a)(3)(A) of the

			 <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12

			 U.S.C. 1821(a)(3)(A)) is amended—</text>

							<subparagraph id="ID8F55FE271D564E6F8C097234315D8628"><enum>(A)</enum><text>by striking

			 <quote>$100,000</quote> and inserting <quote>$250,000</quote>; and</text>

							</subparagraph><subparagraph id="IDFEE47C21D88E4B6E9ECA7FB415473EE2"><enum>(B)</enum><text>by inserting

			 before the period at the end the following: <quote>which amount shall be

			 subject to inflation adjustments as provided in paragraph (1).</quote>.</text>

							</subparagraph></paragraph><paragraph id="IDA750E0B9151B46B4BA573CDE9964C635"><enum>(3)</enum><header>Technical and

			 conforming amendment relating to insurance of trust funds</header><text>Section

			 7(i) of the <act-name parsable-cite="FDIA">Federal Deposit Insurance

			 Act</act-name> (12 U.S.C. 1817(i)) is amended in each of paragraphs (1) and

			 (3), by striking <quote>$100,000</quote> each place it appears and inserting

			 <quote>the standard maximum deposit insurance amount (as determined under

			 section 11(a)(1))</quote>.</text>

						</paragraph><paragraph id="IDC3F5236FAE3645E289B1FB071FCC7367"><enum>(4)</enum><header>Other technical

			 and conforming amendments</header><text>The <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12 U.S.C. 1811

			 et seq.) is amended—</text>

							<subparagraph id="IDD35C19E31B384C888C990D65ED7200E9"><enum>(A)</enum><text>in section

			 11(m)(6) (12 U.S.C. 1821(m)(6)), by striking <quote>$100,000</quote> and

			 inserting <quote>the standard maximum deposit insurance amount (as determined

			 under subsection (a)(1))</quote>;</text>

							</subparagraph><subparagraph id="IDF69AAE75891149768884CF71837374B9"><enum>(B)</enum><text>in section 18 (12

			 U.S.C. 1828), by striking subsection (a) and inserting the following:</text>

								<quoted-block id="ID084F03EA0DC740CD804DA074DCC39300" style="OLC">

									<subsection id="ID78DEE22C6A404854AEDF44A5634AE55C"><enum>(a)</enum><header>Insurance

				Logo</header>

										<paragraph id="ID370A089C83EE46C9AACF5DDE75A858A7"><enum>(1)</enum><header>Insured

				depository institutions</header>

											<subparagraph id="ID2D78371C9FAE477CB8038F6C48E4C50B"><enum>(A)</enum><header>In

				general</header><text>Each insured depository institution shall display at each

				place of business maintained by that institution a sign or signs relating to

				the insurance of the deposits of the institution, in accordance with

				regulations to be prescribed by the Corporation.</text>

											</subparagraph><subparagraph id="ID5D1B56497E654EEF90CD66C6AE3F5F55"><enum>(B)</enum><header>Statement to be

				included</header><text>Each sign required under subparagraph (A) shall include

				a statement that insured deposits are backed by the full faith and credit of

				the United States Government.</text>

											</subparagraph></paragraph><paragraph id="ID5CFD4FF28D614640AC8D9FDCDA5744ED"><enum>(2)</enum><header>Regulations</header><text>The

				Corporation shall prescribe regulations to carry out this subsection, including

				regulations governing the substance of signs required by paragraph (1) and the

				manner of display or use of such signs.</text>

										</paragraph><paragraph id="ID0477718D28B14927BCFA52EB7CD86DCD"><enum>(3)</enum><header>Penalties</header><text>For

				each day that an insured depository institution continues to violate this

				subsection or any regulation issued under this subsection, it shall be subject

				to a penalty of not more than $100, which the Corporation may recover for its

				use.</text>

										</paragraph></subsection><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="ID517DC7C171F848EEB329840DEE3E4D2C"><enum>(C)</enum><text>in section 43(d)

			 (12 U.S.C. 1831t(d)), by striking <quote>$100,000</quote> and inserting

			 <quote>the standard maximum deposit insurance amount (as determined under

			 section 11(a)(1))</quote>.</text>

							</subparagraph></paragraph></subsection><subsection id="ID5649EDABA365422FA592B6611827192B"><enum>(b)</enum><header>Insured Credit

			 Unions</header>

						<paragraph id="ID599BF3D52B3B49D8B39010F6785B6665"><enum>(1)</enum><header>In

			 general</header><text>Section 207(k) of the <act-name parsable-cite="FCUA">Federal Credit Union Act</act-name> (12 U.S.C. 1787(k)) is

			 amended—</text>

							<subparagraph id="ID0CE7ED4EEF81460AA3E27F93039E4DF4"><enum>(A)</enum><text>by striking

			 <quote>(k)(1)</quote> and all that follows through the end of paragraph (1) and

			 inserting the following:</text>

								<quoted-block id="ID59B547258A154F8CAD9CCDFD4512B319" style="OLC">

									<subsection id="IDCE35DB1E91C44EBC8A190BC87E63E71A"><enum>(k)</enum><header>Insured Amounts

				Payable</header>

										<paragraph id="IDE977F5DBF3B64545A2B741EBB36563A9"><enum>(1)</enum><header>Net insured

				amount</header>

											<subparagraph id="IDA70BB9BBB31944D0A7C7495B2BA685A1"><enum>(A)</enum><header>In

				general</header><text>Subject to the provisions of paragraph (2), the net

				amount of share insurance payable to any member at an insured credit union

				shall not exceed the total amount of the shares or deposits in the name of the

				member (after deducting offsets), less any part thereof which is in excess of

				the standard maximum share insurance amount, as determined in accordance with

				this paragraph and paragraphs (5) and (6), and consistent with actions taken by

				the Federal Deposit Insurance Corporation under section 11(a) of the

				<act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name>.</text>

											</subparagraph><subparagraph id="ID59405BFE39E144B28BA295D0F52F0C9E"><enum>(B)</enum><header>Aggregation</header><text>Determination

				of the net amount of share insurance under subparagraph (A), shall be in

				accordance with such regulations as the Board may prescribe, and, in

				determining the amount payable to any member, there shall be added together all

				accounts in the credit union maintained by that member for that member’s own

				benefit, either in the member’s own name or in the names of others.</text>

											</subparagraph><subparagraph id="IDAD24A1A75B4746C2BE3FE0B51577FB95"><enum>(C)</enum><header>Authority to

				define the extent of coverage</header><text>The Board may define, with such

				classifications and exceptions as it may prescribe, the extent of the share

				insurance coverage provided for member accounts, including member accounts in

				the name of a minor, in trust, or in joint

				tenancy.</text>

											</subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="ID16A8603FE5B54B37BC65096CEF9C481F"><enum>(B)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="IDA3DAA71B15754910864597D45A767EF2" style="OLC">

									<paragraph id="ID8B316E19DFB34FE6B509021B0B0C92E8"><enum>(4)</enum><header>Coverage for

				certain employee benefit plan deposits</header>

										<subparagraph id="IDD2A9EF6A3F164BC290187BA1089C7FF2"><enum>(A)</enum><header>Pass-through

				insurance</header><text>The Administration shall provide pass-through share

				insurance for the deposits or shares of any employee benefit plan, subject to

				subparagraph (B).</text>

										</subparagraph><subparagraph id="ID0F64293120B1424F96E4EABEFD1D67E9"><enum>(B)</enum><header>Prohibition on

				acceptance of deposits</header><text>An insured credit union that is not well

				capitalized or adequately capitalized may not accept employee benefit plan

				deposits.</text>

										</subparagraph><subparagraph id="ID8EC8016A60C743439BA58ADFF1BEA9D5"><enum>(C)</enum><header>Definitions</header><text>For

				purposes of this paragraph, the following definitions shall apply:</text>

											<clause id="ID6F6D652D3E254FAF89F7163881F37485"><enum>(i)</enum><header>Capital

				standards</header><text>The terms <term>well capitalized</term> and

				<term>adequately capitalized</term> have the same meanings as in section

				216(c), as added by section 301 of the Credit Union Membership Access Act

				(Public Law 105–219, 112 Stat. 931).</text>

											</clause><clause id="ID0780F3A6428D416C8475D432C5FDACD6"><enum>(ii)</enum><header>Employee

				benefit plan</header><text>The term <term>employee benefit plan</term>—</text>

												<subclause id="ID1818505687A246E7A1202344361B9534"><enum>(I)</enum><text>has the same

				meaning as in section 3(3) of the <act-name parsable-cite="ERISA">Employee

				Retirement Income Security Act of 1974</act-name>;</text>

												</subclause><subclause id="ID0445371E69D6494F80D5003C8F294E42"><enum>(II)</enum><text>includes any

				plan described in section 401(d) of the Internal Revenue Code of 1986;

				and</text>

												</subclause><subclause id="IDA8983EC985A54570B2539879052F1DD3"><enum>(III)</enum><text>includes any

				eligible deferred compensation plan described in section 457 of the Internal

				Revenue Code of 1986.</text>

												</subclause></clause><clause id="IDD77C9CF54FAA485BAC75DF7321B88FA9"><enum>(iii)</enum><header>Pass-through

				share insurance</header><text>The term <term>pass-through share

				insurance</term> means, with respect to an employee benefit plan, insurance

				coverage based on the interest of each participant, in accordance with

				regulations issued by the Corporation.</text>

											</clause></subparagraph></paragraph><paragraph id="ID72E35FFDEEF34B1093A2F044DE3D8D72"><enum>(5)</enum><header>Standard

				maximum share insurance amount defined</header><text>For purposes of this

				subsection, the term <term>standard maximum share insurance amount</term>

				means, until April 1, 2010, $100,000.</text>

									</paragraph><paragraph id="ID05E737CF3AB045909387FC7B3D100FA1"><enum>(6)</enum><header>Determinations

				regarding inflation adjustments</header>

										<subparagraph id="ID6486702F98B14E4F9060716B8C4D923A"><enum>(A)</enum><header>Adjustments to

				standard maximum share insurance amount</header><text>Not later than April 1,

				2010, and the first day of each 5-year period thereafter, the Board shall

				determine whether to increase the standard maximum share insurance amount based

				on the factors set forth under paragraph (7).</text>

										</subparagraph><subparagraph id="IDE203495A7E904022B06A8CAD6ED4C622"><enum>(B)</enum><header>Adjustment for

				certain retirement accounts</header><text>Not later than April 1, 2010, and the

				first day of each 5-year period thereafter, the Board shall determine whether

				to increase the amount of insurance available for retirement accounts under

				paragraph (3), based on the factors set forth under paragraph (7).</text>

										</subparagraph></paragraph><paragraph id="IDEB97CACE3737483FA550FA7D3D755B7E"><enum>(7)</enum><header>Inflation

				adjustment considerations</header><text>In making any determination under

				paragraph (6), the Board shall consider—</text>

										<subparagraph id="ID843B23E1BC854215AFEFC14FA7153C6E"><enum>(A)</enum><text>the economic

				conditions affecting insured credit unions;</text>

										</subparagraph><subparagraph id="ID2A8D7A0639D544059CF3FEDBDADD0686"><enum>(B)</enum><text>the overall risk

				or risks to the National Credit Union Share Insurance Fund;</text>

										</subparagraph><subparagraph id="IDBFF75543F39A427D8685653F505E93F5"><enum>(C)</enum><text>a demonstrated

				need by members for the inflation adjustment increase;</text>

										</subparagraph><subparagraph id="IDAAAACA627B0A4CD38925DAC196CD6152"><enum>(D)</enum><text>the ability of

				insured credit unions to identify and obtain alternative funding

				sources;</text>

										</subparagraph><subparagraph id="ID5380F0EF00044157A17D11967DF5B9A6"><enum>(E)</enum><text>the ability of

				insured credit unions to meet the credit needs of their communities;</text>

										</subparagraph><subparagraph id="ID7B049131B113410ABD4AE04BE515CF7A"><enum>(F)</enum><text>potential

				problems affecting insured credit unions generally or a specific group or type

				of insured credit unions; and</text>

										</subparagraph><subparagraph id="IDBE88B33D5A0F42FAAC4896D1DCFB6B09"><enum>(G)</enum><text>any other factors

				that the Board deems appropriate.</text>

										</subparagraph></paragraph><paragraph id="ID01C4224FF8E1464F91BD6C33AD1BBC00"><enum>(8)</enum><header>Inflation

				adjustment calculations for 2010</header>

										<subparagraph id="IDFA4EAD6D863046E1A2810268DA3F846C"><enum>(A)</enum><header>Calculation for

				standard maximum share insurance amount</header><text>The amount provided for

				any increase in the standard maximum share insurance amount shall be, as of

				April 1, 2010, the product of—</text>

											<clause id="ID1CFD2F49EF1D459C90C60B08D619EE1B"><enum>(i)</enum><text>$100,000;

				and</text>

											</clause><clause id="IDDD679112C9ED4B9EA2536EB6E463A3A5"><enum>(ii)</enum><text>the ratio of the

				value of the Personal Consumption Expenditures Chain-Type Index (or any

				successor index thereto), published by the Department of Commerce, for December

				31 of the year preceding the year in which the adjustment is calculated under

				this paragraph, to the value of such index for December 31 of the year

				preceding the effective date of the Safe and Fair Deposit Insurance Act of

				2005.</text>

											</clause></subparagraph><subparagraph id="ID7FBEB88B00DC4DC780031311AA295F58"><enum>(B)</enum><header>Calculation for

				certain retirement accounts for 2010</header><text>The amount provided for any

				increase in the insurance for retirement accounts under paragraph (3) shall be,

				as of April 1, 2010, the product of—</text>

											<clause id="IDE7C019A63A9646A7A8FEB98BEC0CEA6F"><enum>(i)</enum><text>$250,000;

				and</text>

											</clause><clause id="ID34F0AC211C7647D8A85C2AF7C2536876"><enum>(ii)</enum><text>the ratio of the

				value of the Personal Consumption Expenditures Chain-Type Index (or any

				successor index thereto), published by the Department of Commerce, for December

				31 of the year preceding the year in which the adjustment is calculated under

				this paragraph, to the value of such index for December 31 of the year

				preceding the effective date of the Safe and Fair Deposit Insurance Act of

				2005.</text>

											</clause></subparagraph></paragraph><paragraph id="ID244877EC4E9B40E0AD369B9132813FB0"><enum>(9)</enum><header>Inflation

				adjustment calculations after 2010</header>

										<subparagraph id="ID799A9D9B15E9438F9B3CF83727CC31A0"><enum>(A)</enum><header>Calculation for

				the standard maximum share insurance amount</header><text>The amount provided

				for any increase in the standard maximum share insurance amount shall be, as of

				the 1st day of each 5-year period beginning on April 1, 2015, the product

				of—</text>

											<clause id="ID1602795F6B094AADA40147DE10205D55"><enum>(i)</enum><text>the standard

				maximum share insurance amount; and</text>

											</clause><clause id="IDD8A144927CEF45E484C0575C5730CC50"><enum>(ii)</enum><text>the ratio of the

				value of the Personal Consumption Expenditures Chain-Type Index (or any

				successor index thereto), published by the Department of Commerce, for December

				31 of the year preceding the year in which the adjustment is calculated under

				this paragraph, to the value of such index for December 31 of the 6 years prior

				to the year in which the adjustment is calculated under this paragraph.</text>

											</clause></subparagraph><subparagraph id="IDB7597208FE394105B6383D6715BCF46E"><enum>(B)</enum><header>Calculation for

				certain retirement accounts</header><text>The amount provided for any increase

				in the insurance for retirement accounts under paragraph (3) shall be, as of

				the 1st day of each 5-year period beginning on April 1, 2015, the product

				of—</text>

											<clause id="IDC9712A5A155844F99CF912E6C7569302"><enum>(i)</enum><text>the amount

				available for retirement accounts under paragraph (3), as adjusted pursuant to

				paragraph (8) or this paragraph, as appropriate; and</text>

											</clause><clause id="ID80E9BF2221474EE0B10E643488793B1F"><enum>(ii)</enum><text>the ratio of the

				value of the Personal Consumption Expenditures Chain-Type Index (or any

				successor index thereto), published by the Department of Commerce, for December

				31 of the year preceding the year in which the adjustment is calculated under

				this paragraph, to the value of such index for December 31 of the 6 years prior

				to the year in which the adjustment is calculated under this paragraph.</text>

											</clause></subparagraph></paragraph><paragraph id="IDE98E94C3DD1D4806B014FDB4C84049E5"><enum>(10)</enum><header>Determination

				of no inflation increase</header><text>If the Board cannot support an increase

				under paragraph (6) after consideration of the factors in paragraph (7), no

				inflation adjustment shall be made until reconsideration at the beginning of

				the next 5-year period.</text>

									</paragraph><paragraph id="ID75B1D791969B44C3B89A3798BF55D1C9"><enum>(11)</enum><header>Rounding</header><text>If

				the amount of increase determined for any period is not a multiple of $10,000,

				the amount so determined shall be rounded to the nearest $10,000.</text>

									</paragraph><paragraph id="ID319862E49EF04690904D9783C9B9AA4F"><enum>(12)</enum><header>Publication</header><text>Not

				later than April 1, 2010, and not later than the first day of each 5-year

				period thereafter, the Board shall publish in the Federal Register the standard

				maximum share insurance amount and the amount of share insurance coverage that

				may be due to any depositor at any insured credit union during the applicable

				5-year period.</text>

									</paragraph><paragraph id="ID4635AEF3C8E3415B80D0F81C63F05D4A"><enum>(13)</enum><header>No inflation

				adjustments for public funds</header><text>Paragraphs (5) through (12) shall

				not apply to any deposits of depositors described in paragraph (2), and the net

				amount due to any such depositor at an insured credit union shall not exceed

				$100,000.</text>

									</paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="ID62C8C502599446ED8066CC4F3078CADE"><enum>(C)</enum><text>in paragraph (3),

			 by striking <quote>$100,000 per account</quote> and inserting the following:

			 <quote>$250,000 per account, which amount shall be subject to inflation

			 adjustments as provided in paragraphs (6) through (12).</quote>.</text>

							</subparagraph></paragraph><paragraph id="IDDE2338512A9B4E45AF27C069D6066556"><enum>(2)</enum><header>Technical

			 amendment</header><text>Section 202(h) of the <act-name parsable-cite="FCUA">Federal Credit Union Act</act-name> (12 U.S.C. 1782(h)) is

			 amended by striking <quote>207(c)(1)</quote> and inserting

			 <quote>207(k)</quote>.</text>

						</paragraph></subsection><subsection id="ID3F24DDAE61FC4E70B33B13A509120C5D"><enum>(c)</enum><header>Effective

			 Date</header><text>Except as otherwise specifically provided in this section or

			 the amendments made by this section, this section and such amendments shall

			 become effective on the effective date of the regulations required under

			 section 2017(a)(2), relating to the implementation of deposit insurance changes

			 under this section.</text>

					</subsection></section><section id="ID99CCCAABD55D49A390FA6F981DC5C3E7"><enum>2013.</enum><header>Designated

			 Reserve ratio</header>

					<subsection id="ID12DEFC60250D4F00B32705C7CAB1FBDE"><enum>(a)</enum><header>Repeal of

			 Recapitalization Schedule</header>

						<paragraph id="IDF5ECD015DD4448F5A9882E5EC8E4E56C"><enum>(1)</enum><header>In

			 general</header><text>Section 7(b)(3) of the <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12 U.S.C.

			 1817(b)(3)) is amended to read as follows:</text>

							<quoted-block act-name="Federal Deposit Insurance Act" id="ID70C0BACC97E34865A2BD8CAE3ABF39E4" style="OLC">

								<paragraph id="IDACE32543543E47DEA8B3D87E838BD882"><enum>(3)</enum><header>Designated

				reserve ratio</header>

									<subparagraph id="ID257936D81673438EAEA80021D29E556F"><enum>(A)</enum><header>Action by the

				board</header>

										<clause id="ID7A530CFFA8EE4277B5537A2D8A724F08"><enum>(i)</enum><header>In

				general</header><text>Before the beginning of each calendar year, the Board of

				Directors shall, subject to clause (ii)—</text>

											<subclause id="ID3829757D2AB64B2594D5CF347A88FC57"><enum>(I)</enum><text>designate the

				reserve ratio applicable to the Deposit Insurance Fund for that year;

				and</text>

											</subclause><subclause id="ID1B13EE8456B941B39F1D422E01B2104E"><enum>(II)</enum><text>publish the

				reserve ratio so designated.</text>

											</subclause></clause><clause id="ID183FBC022CD8471480456C927FFF54B4"><enum>(ii)</enum><header>Rulemaking</header><text>Any

				change to the designated reserve ratio for any calendar year shall be made

				pursuant to section 553 of title 5, United States Code.</text>

										</clause></subparagraph><subparagraph id="ID2D45ABAF2A1F4E4B898DE6DECC133F04"><enum>(B)</enum><header>Range</header><text>The

				reserve ratio designated by the Board of Directors for any year—</text>

										<clause id="IDF4B12063EE7A419893909846146DE67E"><enum>(i)</enum><text>may not exceed

				1.50 percent; and</text>

										</clause><clause id="ID24E6CAA4A35A4FB89094D7B8747F77C9"><enum>(ii)</enum><text>may not be less

				than 1.15 percent.</text>

										</clause></subparagraph><subparagraph id="IDBA1C2F5B283347F98C9D5CB7E3826077"><enum>(C)</enum><header>Factors</header><text>In

				designating a reserve ratio for any year, the Board of Directors shall—</text>

										<clause id="ID01B24E00560E47FE9FCD9D05A6B63994"><enum>(i)</enum><text>take into account

				the risk of losses to the Deposit Insurance Fund in that year and in future

				years;</text>

										</clause><clause id="IDC6F48B20E169425AA6A616AEF1933F21"><enum>(ii)</enum><text>take into

				account economic conditions generally affecting insured depository

				institutions, to provide for an increase in the designated reserve ratio during

				more favorable economic conditions and to provide for a decrease in the

				designated reserve ratio during less favorable economic conditions,

				notwithstanding the increased risks of loss that may exist during such less

				favorable conditions, as determined to be appropriate by the Board;</text>

										</clause><clause id="ID142BBB01E2994013BFA6B21491167500"><enum>(iii)</enum><text>seek to prevent

				sharp swings in the assessment rates for insured depository institutions;

				and</text>

										</clause><clause id="ID0818A93BB19F4DE69B3A8B101F91EA65"><enum>(iv)</enum><text>take into

				account such other factors as the Board of Directors may determine to be

				appropriate, consistent with the requirements of this

				subparagraph.</text>

										</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph><paragraph id="IDA03FC97C3EF84AE8BC24611D727778CC"><enum>(2)</enum><header>Technical and

			 conforming amendments</header><text>Section 3(y) of the

			 <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12

			 U.S.C. 1813), as amended by this title, is amended by adding at the end the

			 following:</text>

							<quoted-block act-name="Federal Deposit Insurance Act" id="IDD7D8E421F55341B58025D04FB9D49040" style="OLC">

								<paragraph id="ID2E0BE3F0D12443A8892B72BF65FD9DAE"><enum>(2)</enum><header>Reserve

				ratio</header><text>The term <term>reserve ratio</term> means the ratio of the

				fund balance of the Deposit Insurance Fund to aggregate estimated insured

				deposits held in all insured depository institutions.</text>

								</paragraph><paragraph id="IDE4E6BAD0F2B04D42A0B80CEA433770AB"><enum>(3)</enum><header>Designated

				reserve ratio</header><text>The term <term>designated reserve ratio</term>

				means the reserve ratio designated by the Board of Directors under section

				7(b)(3).</text>

								</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph><paragraph id="ID47DFA8988665492082F5EE403BFE847B"><enum>(3)</enum><header>Effective

			 date</header><text>Subject to paragraph (4), and except as otherwise provided,

			 this subsection and the amendments made by this subsection shall become

			 effective on the effective date of the regulations required under section

			 2017(a)(1), relating to designation of the reserve ratio by the Board.</text>

						</paragraph><paragraph id="IDCB978A6C1BEF45C3AD7A465EF3A629F6"><enum>(4)</enum><header>Designation of

			 initial reserve ratio for deposit insurance fund</header><text>During the

			 period beginning on the effective date of the merger of the deposit insurance

			 funds under section 2003, and ending on the effective date of final regulations

			 designating the reserve ratio, as required by section 2017(a)(1), the

			 designated reserve ratio of the Deposit Insurance Fund shall continue to be

			 determined pursuant to section 7(b)(2)(A)(iv), as in effect on the day before

			 the effective date of the merger under section 2003.</text>

						</paragraph></subsection><subsection id="ID36590A7AB4E1468A981BADC72307DEBB"><enum>(b)</enum><header>Requirements

			 Applicable to Any Modification of the Risk-Based Assessment

			 System</header><text>Section 7(b)(1) of the <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12 U.S.C.

			 1817(b)(1)) is amended by adding at the end the following:</text>

						<quoted-block act-name="Federal Deposit Insurance Act" id="ID5E097B4DD6254D8AAD514C637E7C5D96" style="OLC">

							<subparagraph id="ID59FF26450D3F427D82A3FB782A351CC1"><enum>(E)</enum><header>Requirements

				applicable to any modification of the risk-based assessment system</header>

								<clause id="ID003C9ADCB60A4BF3AB8A65BA0666D215"><enum>(i)</enum><header>In

				general</header><text>In revising or modifying the risk-based assessment system

				at any time after the date of enactment of the Deposit Insurance Reform Act of

				2005, the Board of Directors—</text>

									<subclause id="IDB7FBCD59A21441B4BDD6EBE60F3A7ADA"><enum>(I)</enum><text>may not make any

				change to the information collected from or required to be retained by insured

				depository institutions solely for purposes of the assessment risk

				classification, as defined by regulations of the Board, if the change would

				result in the imposition of an overall greater regulatory or reporting burden

				on insured depository institutions than was the case before that date of

				enactment; and</text>

									</subclause><subclause id="IDE8BE9BE96E534E05BD0BBC03AE070EEF"><enum>(II)</enum><text>may implement

				any such revision or modification in final form only after notice and

				opportunity for comment.</text>

									</subclause></clause><clause id="ID00D7A33BC6FF4FE5A4A89C4B635ABBF4"><enum>(ii)</enum><header>Rule of

				construction</header><text>An increase in an assessment rate or a revision of

				the assessment base shall not be considered to be a revision or modification

				resulting in greater regulatory or reporting burden for purposes of this

				subparagraph.</text>

								</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection></section><section id="IDFD8346705C284303BE33D63057089AB6"><enum>2014.</enum><header>Assessment

			 credits and dividends</header>

					<subsection id="IDB18B5D237BE9463C85A98BBD418731FE"><enum>(a)</enum><header>In

			 General</header><text>Section 7(e)(2) of the <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12 U.S.C.

			 1817(e)(2)) is amended to read as follows:</text>

						<quoted-block act-name="Federal Deposit Insurance Act" id="IDFFC165F46B4946EDB2A6665E9EDB4D1A" style="OLC">

							<paragraph id="ID86EA9BF755AA4E8891E10B7964C01FA7"><enum>(2)</enum><header>One-time credit

				based on total assessment base at year-end 1996</header>

								<subparagraph id="IDA3020E0160F54B7E820F7E2DAE156C1F"><enum>(A)</enum><header>In

				general</header><text>The Board of Directors shall, by regulation, provide for

				a credit to each insured depository institution that was in existence on

				December 31, 1996, and that had paid a deposit insurance assessment prior to

				that date (or a successor insured depository institution), based on the

				assessment base of the institution on that date, as compared to the combined

				aggregate assessment base of all such institutions, taking into account such

				factors as the Board may determine to be appropriate.</text>

								</subparagraph><subparagraph id="IDDE78015B14C647E889126CB84F420DAB"><enum>(B)</enum><header>Credit

				limit</header><text>The aggregate amount of credits available under

				subparagraph (A) to all insured depository institutions that are eligible for

				the credit shall not exceed the amount that the Corporation could collect if it

				imposed an assessment of 9 basis points on the combined assessment base of the

				Bank Insurance Fund and the Savings Association Insurance Fund as of December

				31, 2001.</text>

								</subparagraph><subparagraph id="ID25AEAC57D57D4D2899FDF6E9FD184A78"><enum>(C)</enum><header>Definition of

				successor</header><text>The Corporation shall define the term

				<term>successor</term> for purposes of this paragraph, by regulation, and may

				consider, among other factors and as the Board may deem appropriate, whether

				and to what extent, if any, an insured depository institution that acquires

				deposits from another insured depository institution may deemed to be a

				successor.</text>

								</subparagraph><subparagraph id="ID878947E4EF5F479A9E701B6481575787"><enum>(D)</enum><header>Application of

				credits</header><text>The amount of a credit to any insured depository

				institution under this paragraph may be applied by the Corporation to those

				portions of the assessments under subsection (b) applicable to that institution

				which become due for assessment periods beginning after the effective date of

				regulations required by subparagraph

				(A).</text>

								</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="ID5EBCC4611C3D4EBAB74EBA45B29112B0"><enum>(b)</enum><header>Amendments to

			 Section <enum-in-header>7</enum-in-header></header><text>Section 7(e) of the

			 <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12

			 U.S.C. 1817(e)) is amended by adding at the end the following new

			 paragraphs:</text>

						<quoted-block act-name="Federal Deposit Insurance Act" id="ID4405D8242BB44D4CB4F2A8AE390E47D6" style="OLC">

							<paragraph id="ID18B6A0F3A9A64A778AD30F6982F0F2AE"><enum>(3)</enum><header>Dividends</header>

								<subparagraph id="ID9344D176391D4EED8C76624FDBAF092E"><enum>(A)</enum><header>Reserve ratio

				in excess of 1.50 percent of estimated insured deposits</header><text>The

				Corporation shall provide cash dividends to insured depository institutions in

				accordance with this paragraph if the reserve ratio of the Deposit Insurance

				Fund exceeds the maximum amount established under subsection (b)(3)(B)(i), to

				the extent of that excess amount.</text>

								</subparagraph><subparagraph id="ID2489440CAC8645A299068D862D2FCBD0"><enum>(B)</enum><header>Amount equal to

				or in excess of 1.40 percent of estimated insured deposits and not more than

				1.50 percent</header><text>The Corporation shall provide cash dividends to

				insured depository institutions in accordance with this paragraph if the

				reserve ratio of the Deposit Insurance Fund equals or exceeds 1.40 and is not

				more than 1.50 percent, and that amount shall equal 50 percent of the amount in

				excess of the amount required to maintain the reserve ratio at 1.40 percent of

				the estimated insured deposits.</text>

								</subparagraph><subparagraph id="ID7852B763F6254858B39F8C8CECF37941"><enum>(C)</enum><header>Factors for

				consideration for allocation of dividends</header><text>In implementing the

				provisions of this paragraph, and in accordance with its regulations, the

				Corporation shall consider—</text>

									<clause id="ID5D38225F2EE14EAB88C92E105A511259"><enum>(i)</enum><text>the ratio of the

				assessment base of an insured depository institution (including any predecessor

				institution) on December 31, 1996, to the assessment base of all eligible

				insured depository institutions on such date;</text>

									</clause><clause id="ID4BFD47B8B507486DB45519B92F2690E1"><enum>(ii)</enum><text>the total amount

				of assessments paid on or after January 1, 1997, by an insured depository

				institution (including any predecessor institution) to the Deposit Insurance

				Fund (and any predecessor deposit insurance fund);</text>

									</clause><clause id="ID0F6C845A224A48BFA3E265E39042FA43"><enum>(iii)</enum><text>that portion of

				assessments paid by an insured depository institution (including any

				predecessor institution) that reflects higher levels of risk assumed by such

				institution; and</text>

									</clause><clause id="ID7E35E8079A9E410A9A53510346ADB303"><enum>(iv)</enum><text>such other

				factors as the Corporation determines appropriate.</text>

									</clause></subparagraph><subparagraph id="IDF73F0B54CEAF4B38800966800365D70A"><enum>(D)</enum><header>Limitation</header><text>The

				Board of Directors may suspend or limit dividends paid under subparagraph (B)

				if the Board determines in writing that—</text>

									<clause id="ID51D6169BF52A479F832E41451AC2C070"><enum>(i)</enum><text>a

				significant risk of losses to the Deposit Insurance Fund exists over the next

				one-year period; and</text>

									</clause><clause id="ID6EB8B8F5E8254E689F3A1C037DC310D5"><enum>(ii)</enum><text>it is likely

				that such losses will be sufficiently high as to justify a finding by the Board

				that the reserve ratio should temporarily be allowed—</text>

										<subclause id="IDC78E21265F1A427B862A6B38DCD6457D"><enum>(I)</enum><text>to grow without

				requiring dividends under subparagraph (B); or</text>

										</subclause><subclause id="IDC407A04E54564AD599E5DD3D92C900E8"><enum>(II)</enum><text>to exceed the

				maximum amount established under subsection (b)(3)(B)(i).</text>

										</subclause></clause></subparagraph><subparagraph id="ID0917884B67AA46578F2C942C71D605EA"><enum>(E)</enum><header>Considerations</header><text>In

				making a determination under subparagraph (D), the Board shall consider—</text>

									<clause id="ID1C49AC7945CD4DF090AFC5890DDB3237"><enum>(i)</enum><text>national and

				regional conditions and their impact on insured depository institutions;</text>

									</clause><clause id="ID7EA56C9C14934F7C886A79CECEBD1A58"><enum>(ii)</enum><text>potential

				problems affecting insured depository institutions or a specific group or type

				of depository institution;</text>

									</clause><clause id="ID10DDD62CB75441F58D964AACCAD4BE09"><enum>(iii)</enum><text>the degree to

				which the contingent liability of the Corporation for anticipated failures of

				insured institutions adequately addresses concerns over funding levels in the

				Deposit Insurance Fund; and</text>

									</clause><clause id="ID4482227DA02849BCAFFEAA31EFE2684C"><enum>(iv)</enum><text>any other

				factors that the Board determines are appropriate.</text>

									</clause></subparagraph><subparagraph id="ID32E7B154C86D4D6293C7A8D0EC2F4A8C"><enum>(F)</enum><header>Report to

				congress</header>

									<clause id="ID5347F7EBD2F14D5E88FE3BAEB3E7B8D2"><enum>(i)</enum><header>Submission</header><text>Any

				determination under subparagraph (D) shall be submitted to the Committee on

				Banking, Housing, and Urban Affairs of the Senate and the Committee on

				Financial Services of the House of Representatives, not later than 270 days

				after making such determination.</text>

									</clause><clause id="ID7B4828A8F58F4D8D9615DE947E636941"><enum>(ii)</enum><header>Content</header><text>The

				report submitted under clause (i) shall include—</text>

										<subclause id="ID91A9FB458EE74C709BFA0040956AD73C"><enum>(I)</enum><text>a detailed

				explanation for the determination; and</text>

										</subclause><subclause id="ID2ED8D23261C248B480EE362EB52E2144"><enum>(II)</enum><text>a discussion of

				the factors required to be considered under subparagraph (E).</text>

										</subclause></clause></subparagraph><subparagraph id="ID2C1859CDD24C45C0B09FA65000BBEB78"><enum>(G)</enum><header>Review of

				determination</header>

									<clause id="ID59A2DB7D302149C7B873BCAD493B8C39"><enum>(i)</enum><header>Annual

				review</header><text>A determination to suspend or limit dividends under

				subparagraph (D) shall be reviewed by the Board of Directors annually.</text>

									</clause><clause id="IDFAF3D99E33764223A9B5448FC4263312"><enum>(ii)</enum><header>Action by

				board</header><text>Based on each annual review under clause (i), the Board of

				Directors shall either renew or remove a determination to suspend or limit

				dividends under subparagraph (D), or shall make a new determination in

				accordance with this paragraph. Unless justified under the terms of the renewal

				or new determination, the Corporation shall be required to provide cash

				dividends under subparagraph (A) or (B), as appropriate.</text>

									</clause></subparagraph></paragraph><paragraph id="IDFFC5B383593245548365E3943C1C187A"><enum>(4)</enum><header>Challenges to

				credit or dividend amounts</header><text>The regulations required under this

				subsection shall include provisions allowing an insured depository institution

				a reasonable opportunity to challenge administratively the amount of its credit

				or dividend under this subsection. The determination of the Corporation of the

				amount of the credit or dividend following such challenge shall be final, and

				not subject to judicial

				review.</text>

							</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="IDC281BA00F0704626B1B991B97D546683"><enum>(c)</enum><header>Effective

			 Date</header><text>The amendments made by this section shall become effective

			 on the effective date of the regulations required to be issued under section

			 2017(a)(3), relating to implementation of the one-time assessment

			 credit.</text>

					</subsection></section><section id="ID9D6C071C1F26446E929D6D68ABB2DF28"><enum>2015.</enum><header>Assessments-related

			 records retention and statute of limitations</header>

					<subsection id="ID47B7E5D9078B41E0BE511D829FEE8717"><enum>(a)</enum><header>Records

			 Retention</header><text>Paragraph (5) of section 7(b) of the

			 <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12

			 U.S.C. 1817(b)) is amended to read as follows:</text>

						<quoted-block act-name="Federal Deposit Insurance Act" id="ID1D838E1B3C934CB790B4B1A66B3005AF" style="OLC">

							<paragraph id="ID40B7131C416F44148884EA1B3AC4DFE1"><enum>(5)</enum><header>Records to be

				maintained by insured depository institution</header><text>Each insured

				depository institution shall maintain all records that the Corporation may

				require for verifying the correctness of the institution’s assessments until

				the later of—</text>

								<subparagraph id="IDDE18575856C94DC9B5A6491E5A01E1A6"><enum>(A)</enum><text>3 years from the

				due date of each assessment payment; or</text>

								</subparagraph><subparagraph id="ID6E70A75A301A421C9E7DDE1721C9A4B0"><enum>(B)</enum><text>the date of the

				final determination of any dispute between the insured depository institution

				and the Corporation over the amount of any

				assessment.</text>

								</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="ID0C6A0EEEEC6E443D8468A6B198B8D787"><enum>(b)</enum><header>Statute of

			 Limitations for Assessment Actions</header><text>Subsection (g) of section 7 of

			 the <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12

			 U.S.C. 1817(g)) is amended to read as follows:</text>

						<quoted-block act-name="Federal Deposit Insurance Act" id="ID925CA193B75A4A909D6ACACFA768F46B" style="OLC">

							<subsection id="IDD69572864D6E49AEA333E6B3BC26A730"><enum>(g)</enum><header>Statute of

				Limitations for Assessment Actions</header><text>The Corporation, in any court

				of competent jurisdiction, shall be entitled to recover from any insured

				depository institution the amount of any unpaid assessment lawfully payable by

				such insured depository institution. Notwithstanding any other provision in

				Federal law, or the law of any State—</text>

								<paragraph id="ID1DA4616686974A3FAB44F4FBCAEF4BDC"><enum>(1)</enum><text>any action by an

				insured depository institution to recover from the Corporation the overpaid

				amount of any assessment shall be brought within 3 years after the date the

				assessment payment was due, subject to the exception in paragraph (5);</text>

								</paragraph><paragraph id="IDECE23DBD927F43ACA199EF22BE7BB807"><enum>(2)</enum><text>any action by the

				Corporation to recover from an insured depository institution the underpaid

				amount of any assessment shall be brought within 3 years after the date the

				assessment payment was due, subject to the exceptions in paragraphs (3) and

				(5);</text>

								</paragraph><paragraph id="IDA35925457915464ABFFD0ED5CA36AFC1"><enum>(3)</enum><text>if an insured

				depository institution has made a false or fraudulent statement with intent to

				evade any or all of its assessment, the Corporation shall have until 3 years

				after the date of discovery of the false or fraudulent statement in which to

				bring an action to recover the underpaid amount;</text>

								</paragraph><paragraph id="IDFAD005F95304410FB7AF46E64C16D15B"><enum>(4)</enum><text>assessment

				deposit information contained in records no longer required to be maintained

				pursuant to subsection (b)(5) shall be considered conclusive and not subject to

				change; and</text>

								</paragraph><paragraph id="ID5A49F00F0CD74DBA97D46BB283691BDE"><enum>(5)</enum><text>any action for

				the underpaid or overpaid amount of any assessment that became due prior to the

				effective date of this subsection shall be subject to the statute of

				limitations for assessments in effect at the time the assessment became

				due.</text>

								</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection></section><section id="ID662045E699D14C54AF917F42E17C9F87"><enum>2016.</enum><header>Increase in

			 fees for late assessment payments</header><text display-inline="no-display-inline">Subsection (h) of section 18 of the

			 <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12

			 U.S.C. 1828(h)) is amended—</text>

					<paragraph id="IDCF543747E80649F485AFD3AB8CBDE2D1"><enum>(1)</enum><text>by striking

			 <quote>Any insured depository institution</quote> and inserting <quote>(1)

			 <header-in-text>In general</header-in-text>.—Any insured depository

			 institution</quote>;</text>

					</paragraph><paragraph id="ID38F917592BC547968DEDC04E1D086464"><enum>(2)</enum><text>in paragraph (1),

			 as redesignated, by striking <quote>penalty of not more than $100</quote> and

			 inserting <quote>penalty in an amount of not more than 1 percent of the amount

			 of the assessment due</quote>; and</text>

					</paragraph><paragraph id="ID0BBDFAFF26214A4D9A2BBFF50F9227C1"><enum>(3)</enum><text>by inserting new

			 paragraphs (2) and (3) as follows:</text>

						<quoted-block id="IDBAD6CCC031B847DFB0E6369F0E99B411" style="OLC">

							<paragraph id="ID271BD4B452FA4A46A846F2A7CC2A6B0F"><enum>(2)</enum><header>Exception for

				small assessment amounts</header><text>Notwithstanding paragraph (1), if the

				amount of the assessment for an insured depository institution is less than

				$10,000 at the time such institution fails or refuses to pay the assessment,

				such institution shall be subject to a penalty of not more than $100 for each

				day that such violation continues.</text>

							</paragraph><paragraph id="ID55B1E1C09C2C4710A11C3379E7486744"><enum>(3)</enum><header>Authority to

				modify or remit penalty</header><text>The Corporation, in the sole discretion

				of the Corporation, may compromise, modify, or remit any penalty which the

				Corporation may assess or has already assessed under paragraph (1) or (2) upon

				a finding that good cause prevented the timely payment of an

				assessment.</text>

							</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</paragraph></section><section id="IDDCE1ADAF4C6D4678BFD0CC85B757582B"><enum>2017.</enum><header>Regulations

			 required</header>

					<subsection id="IDF2EC514EAC7048AB9B8F2A1DBEE524AC"><enum>(a)</enum><header>In

			 General</header><text>Not later than 270 days after the date of enactment of

			 this Act, the Board shall issue final regulations, in accordance with section

			 553 of chapter 5 of title 5, United States Code—</text>

						<paragraph id="ID1646EE7A5193491DB38A85BEF49315A7"><enum>(1)</enum><text>designating the

			 reserve ratio for the Deposit Insurance Fund, in accordance with section

			 7(b)(3) of the <act-name parsable-cite="FDIA">Federal Deposit Insurance

			 Act</act-name>, as amended by section 2013 of this subtitle, which regulations

			 shall become effective not later than 90 days after the date of their

			 publication in final form;</text>

						</paragraph><paragraph id="IDB84A87D6EA4042E2BBC42AE2F5114D07"><enum>(2)</enum><text>implementing

			 changes in deposit insurance coverage in accordance with the amendments made by

			 section 2012, which regulations shall become effective not later than 90 days

			 after the date of their publication in final form;</text>

						</paragraph><paragraph id="IDAE8F73E0F38C411A9A9BCA3AA83F965B"><enum>(3)</enum><text>implementing the

			 one-time assessment credit to certain insured depository institutions in

			 accordance with section 7(e)(2) of the <act-name parsable-cite="FDIA">Federal

			 Deposit Insurance Act</act-name>, as amended by section 2014 of this

			 subtitle;</text>

						</paragraph><paragraph id="ID7521D70363FF428981E5AC40F8847F62"><enum>(4)</enum><text>establishing the

			 qualifications and procedures under which the Corporation may provide dividends

			 under section 7(e)(3) of the <act-name parsable-cite="FDIA">Federal Deposit

			 Insurance Act</act-name>, as amended by section 2014 of this subtitle;

			 and</text>

						</paragraph><paragraph id="ID78D499A5780D44E7A73094B3E9312EFA"><enum>(5)</enum><text>providing for

			 assessments under section 7 of the <act-name parsable-cite="FDIA">Federal

			 Deposit Insurance Act</act-name>, as amended by this subtitle, which

			 regulations shall become effective on the effective date of the regulations

			 required by paragraph (3).</text>

						</paragraph></subsection><subsection id="ID6194E964192943B681FBAA564F98DF6F"><enum>(b)</enum><header>Savings

			 Clause</header>

						<paragraph id="ID0E5687C852404DEBA2F9E7947F63E90D"><enum>(1)</enum><header>In

			 general</header>

							<subparagraph id="ID23F10C5106F24B0DB42D57B4D68EA0A6"><enum>(A)</enum><header>Continuation of

			 existing assessment regulations</header><text>Nothing in this title or the

			 amendments made by this title shall be construed to affect the authority of the

			 Corporation with regard to the setting or collection of deposit insurance

			 assessments pursuant to any regulations in effect prior to the effective date

			 of any regulations required under subsection (a).</text>

							</subparagraph><subparagraph id="IDDEBB749EEB1D4D99B35A428BCE846780"><enum>(B)</enum><header>Treatment of

			 dif members under existing regulations</header><text>Assessment regulations in

			 effect prior to the date of enactment of this title shall be read as applying

			 to members of the Deposit Insurance Fund rather than members of the Bank

			 Insurance Fund or Savings Association Insurance Fund, effective on or after the

			 date on which merger of the deposit insurance funds becomes effective under

			 title I.</text>

							</subparagraph></paragraph><paragraph id="ID1C5A5896CA6C45AB94EB32EF1CE12D13"><enum>(2)</enum><header>Setting

			 assessments</header><text>Clause (i) of section 7(b)(2)(A) of the

			 <act-name parsable-cite="FDIA">Federal Deposit Insurance Act</act-name> (12

			 U.S.C. 1817(b)(2)(A)) is amended by striking <quote>necessary—</quote> and all

			 that follows through the period at the end and inserting

			 <quote>necessary.</quote>.</text>

						</paragraph></subsection></section><section id="ID87F04C9575CC4E25983ECE7FE094D524"><enum>2018.</enum><header>Studies of

			 potential changes to the Federal deposit insurance system</header>

					<subsection id="IDE887E106E8BB4ABB8D26C9B617AF6271"><enum>(a)</enum><header>Study and

			 Report by FDIC and NCUA</header>

						<paragraph id="IDF0FF41F060D64762B22ECC51DA9713F7"><enum>(1)</enum><header>Study</header><text>The

			 Board of Directors of the Federal Deposit Insurance Corporation and the

			 National Credit Union Administration Board shall each conduct a study

			 of—</text>

							<subparagraph id="ID0BA2B80228DA4BCBA7DFBD305857DC42"><enum>(A)</enum><text>the feasibility

			 of increasing the limit on deposit insurance for deposits of municipalities and

			 other units of general local government, and the potential benefits and the

			 potential adverse consequences that may result from any such increase;

			 and</text>

							</subparagraph><subparagraph id="IDCD34D156082D45DAA182AEABF6A14661"><enum>(B)</enum><text>the feasibility

			 of establishing a voluntary deposit insurance system for deposits in excess of

			 the maximum amount of deposit insurance for any depositor, and the potential

			 benefits and the potential adverse consequences that may result from the

			 establishment of any such system.</text>

							</subparagraph></paragraph><paragraph id="IDBC6A438FAF7946EEBC9E7499EEADA1D2"><enum>(2)</enum><header>Report</header><text>Not

			 later than 1 year after the date of enactment of this title, the Board of

			 Directors of the Federal Deposit Insurance Corporation and the National Credit

			 Union Administration Board shall each submit a report to the Congress on the

			 study required under paragraph (1), containing the findings and conclusions of

			 the reporting agency, together with such recommendations for legislative or

			 administrative changes as the agency may determine to be appropriate.</text>

						</paragraph></subsection><subsection id="ID34079088E35141F69E4F2BA9CF135166"><enum>(b)</enum><header>Study and

			 Report Regarding Appropriate Reserve Ratio</header>

						<paragraph id="ID7B8A77B37DC848F9948077D93BB5BBEE"><enum>(1)</enum><header>Study</header><text>The

			 Corporation shall conduct a study on the feasibility of using alternatives to

			 estimated insured deposits in calculating the reserve ratio of the Deposit

			 Insurance Fund.</text>

						</paragraph><paragraph id="IDB506290CC9C44C9EBA12165A96F2F3E1"><enum>(2)</enum><header>Report</header><text>Not

			 later than 1 year after the date of enactment of this title, the Board shall

			 submit a report to Congress on the results of the study required under

			 paragraph (1), together with such recommendations for legislative or

			 administrative actions as may be determined to be appropriate.</text>

						</paragraph></subsection></section><section id="IDD40725AA36D44D0CA0CB20987F1678CD"><enum>2019.</enum><header>Effective

			 date</header><text display-inline="no-display-inline">Except as otherwise

			 specifically provided in this subtitle, this subtitle and the amendments made

			 by this subtitle shall become effective on the date of enactment of this

			 Act.</text>

				</section></subtitle><subtitle id="ID2A9F49628270493FA1043FB3FEAF1406"><enum>C</enum><header>FHA Asset

			 Disposition</header>

				<section id="ID950EC8F85B2C430A816B58EF1900B2E8"><enum>2021.</enum><header>Short

			 title</header><text display-inline="no-display-inline">This subtitle may be

			 cited as the <quote>FHA Asset Disposition Act of 2005</quote>.</text>

				</section><section id="ID828872C1D3914DF0A8CD9DB4B24AD736"><enum>2022.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle—</text>

					<paragraph id="ID2BE76F58E3354776B55EBE9ECFF38635"><enum>(1)</enum><text>the term

			 <term>affordability requirement</term> means any requirement or restriction

			 imposed by the Secretary, at the time of sale, on any multifamily real property

			 or multifamily loan, including a use restriction, rent restriction, or

			 rehabilitation requirement;</text>

					</paragraph><paragraph id="IDA5720E374738430B80A82ADE159B49A6"><enum>(2)</enum><text>the term

			 <term>discount sale</term> means the sale of multifamily real property in a

			 transaction, including a negotiated sale, in which the sale price is—</text>

						<subparagraph id="IDAFE6132FAFAD4F82A3583BB47F942B9D"><enum>(A)</enum><text>lower than the

			 property market value; and</text>

						</subparagraph><subparagraph id="IDB9856C2039244DD8995E7C4EAEC45ADB"><enum>(B)</enum><text>set outside of a

			 competitive bidding process that has no affordability requirements;</text>

						</subparagraph></paragraph><paragraph id="ID6384937D63BC4945B23FD47D9D3FA655"><enum>(3)</enum><text>the term

			 <term>discount loan sale</term> means the sale of a multifamily loan in a

			 transaction, including a negotiated sale, in which the sale price is lower than

			 the loan market value and is set outside of a competitive bidding process that

			 has no affordability requirements;</text>

					</paragraph><paragraph id="IDEB432E3F992E4148B99834EF40E38CFD"><enum>(4)</enum><text>the term

			 <term>loan market value</term> means the value of a multifamily loan, without

			 taking into account any affordability requirements;</text>

					</paragraph><paragraph id="IDEBA86E5371CC4B0D9A5E98DB458F0267"><enum>(5)</enum><text>the term

			 <term>multifamily real property</term> means any rental or cooperative housing

			 project of 5 or more units owned by the Secretary that prior to acquisition by

			 the Secretary was security for a loan or loans insured under title II of the

			 <act-name parsable-cite="NHA">National Housing Act</act-name>;</text>

					</paragraph><paragraph id="ID046B0B564BB8496D955804BE7B6FE65D"><enum>(6)</enum><text>the term

			 <term>multifamily loan</term> means a loan held by the Secretary and secured by

			 a multifamily rental or cooperative housing project of 5 or more units that was

			 formerly insured under title II of the <act-name parsable-cite="NHA">National

			 Housing Act</act-name>;</text>

					</paragraph><paragraph id="ID9E8784E32CC9424E809D636F59035139"><enum>(7)</enum><text>the term

			 <term>property market value</term> means the value of any multifamily real

			 property for its current use, without taking into account any affordability

			 requirements; and</text>

					</paragraph><paragraph id="ID0DE34AEA653B48C5A5F4D1C3C60AAE48"><enum>(8)</enum><text>the term

			 <term>Secretary</term> means the Secretary of Housing and Urban

			 Development.</text>

					</paragraph></section><section id="IDB0AA41BF8D564682877066A28FDC1687"><enum>2023.</enum><header>Appropriated

			 funds requirement for below market sales</header>

					<subsection id="ID64BF7F5C195446D9A5C9758D2EA9D0F8"><enum>(a)</enum><header>Dispositions by

			 Secretary</header><text>Notwithstanding any other provision of law, other than

			 any statutory affordability requirement for the elderly and disabled,

			 disposition by the Secretary of any multifamily real property through a

			 discount sale under section 207(l) or 246 of the <act-name parsable-cite="NHA">National Housing Act</act-name>, section 203 of the Housing

			 and Community Development Amendments of 1978, or section 204 of the Departments

			 of Veterans Affairs and Housing and Urban Development, and Independent Agencies

			 Appropriations Act, 1997, shall be subject to the availability of

			 appropriations to the extent that the property value exceeds the sale proceeds.

			 If the multifamily real property is sold for an amount equal to or greater than

			 the property market value, the transaction is not subject to the availability

			 of appropriations.</text>

					</subsection><subsection id="ID3351B9AFFA154B16B22D3B27EFBBF3A5"><enum>(b)</enum><header>Discount Loan

			 Sales</header><text>Notwithstanding any other provision of law, and in

			 accordance with the Credit Reform Act of 1990, a discount loan sale under

			 207(k) of the <act-name parsable-cite="NHA">National Housing Act</act-name>,

			 section 203(k) of the Housing and Community Development Amendments of 1978, or

			 section 204(a) of the Departments of Veterans Affairs and Housing and Urban

			 Development, and Independent Agencies Appropriations Act, 1997, shall be

			 subject to the availability of appropriations, to the extent that the loan

			 value exceeds the sale proceeds. If the multifamily loan is sold for an amount

			 equal to or greater than the loan market value, then the transaction is not

			 subject to the availability of appropriations.</text>

					</subsection><subsection id="ID8584BF23B67D4562B13BDB5402E820FA"><enum>(c)</enum><header>Limitation</header><text>This

			 section shall not apply to any transaction that formally commences during the

			 1-year period preceding the date of enactment of this Act.</text>

					</subsection></section><section id="IDD4CCBDFC093A4DA6AF4A3B28D93CAFB5"><enum>2024.</enum><header>Up-front

			 grants</header>

					<subsection id="IDF98743CC47DC4984BF5C606630801718"><enum>(a)</enum><header>VA–HUD</header><text>Section

			 204(a) of the Departments of Veterans Affairs and Housing and Urban

			 Development, and Independent Agencies Appropriations Act, 1997 (12 U.S.C.

			 1715z–11a(a)) is amended by adding at the end the following: <quote>A grant

			 provided under this subsection shall be available only to the extent that

			 appropriations are made in advance for such purpose, and shall not be derived

			 from the General Insurance Fund.</quote>.</text>

					</subsection><subsection id="IDF466D44261A54BF0A2DCA92DB78E5399"><enum>(b)</enum><header>Other Grant

			 Authority</header><text>Section 203(f) of the Housing and Community Development

			 Amendments of 1978 (12 U.S.C. 1701z–11(f)) is amended—</text>

						<paragraph id="ID1E77D5006A334B069BE08AD6BD18AAE7"><enum>(1)</enum><text>by striking

			 paragraph (4); and</text>

						</paragraph><paragraph id="IDF904DD47AA594F49B9D5E969EC786F3F"><enum>(2)</enum><text>by redesignating

			 paragraphs (5) through (9) as paragraphs (4) through (8), respectively.</text>

						</paragraph></subsection><subsection id="ID42BC4A541577430E9AAA99073B874669"><enum>(c)</enum><header>Limitation</header><text>The

			 amendments made by this section shall not apply to any grant in connection with

			 any transaction that formally commences during the 1-year period preceding the

			 date of enactment of this Act.</text>

					</subsection></section><section id="ID24A96E691FE146609E0EDF93DF097A96"><enum>2025.</enum><header>Authorization

			 of appropriations</header><text display-inline="no-display-inline">There are

			 authorized to be appropriated for fiscal year 2006, $100,000,000 to carry out

			 this subtitle.</text>

				</section></subtitle><subtitle id="IDA555CFC8088349B3820A390147644674"><enum>D</enum><header>Adaptive Housing

			 Assistance</header>

				<section id="ID5AC2F0C278EA444C926B18A4A9C523D0"><enum>2031.</enum><header>Short

			 title</header><text display-inline="no-display-inline">This subtitle may be

			 cited as the <quote>Specially Adapted Housing Grants Improvements Act of

			 2005</quote>.</text>

				</section><section id="ID4F8A12F3D3C54D3A97910BDFFDCD515E"><enum>2032.</enum><header>Adaptive

			 housing assistance for disabled veterans residing temporarily in housing owned

			 by a family member</header>

					<subsection id="ID1B8D717F189B4EDF9DE288BA46C81907"><enum>(a)</enum><header>Assistance

			 Authorized</header><text>Chapter 21 of title 38, United States Code, is amended

			 by inserting after section 2102 the following new section:</text>

						<quoted-block id="ID016F2A8C3F72478EA02C1AE5222AF21F" style="USC">

							<section id="ID645A02ADB01B4782AEF31B1FB034EE79"><enum>2102A.</enum><header>Assistance

				for veterans residing temporarily in housing owned by a family member</header>

								<subsection id="ID49D90EF9A5B74C7F99C8EEF505B4275E"><enum>(a)</enum><header>Assistance

				Authorized</header><text>If a disabled veteran described in subsection (a)(2)

				or (b)(2) of section 2101 of this title resides, but does not intend to

				permanently reside, in a residence owned by a member of such veteran’s family,

				the Secretary may assist the veteran in acquiring such adaptations to such

				residence as are determined by the Secretary to be reasonably necessary because

				of the veteran’s disability.</text>

								</subsection><subsection id="ID1B201A15DB6F48D5A1A44AEF7F6EF950"><enum>(b)</enum><header>Limitation on

				Amount of Assistance</header><text>Subject to section 2102(d) of this title,

				the assistance authorized under subsection (a) may not exceed—</text>

									<paragraph id="ID7A25D46EB1024F86B71E5FF3ED35A692"><enum>(1)</enum><text>$10,000, in the

				case of a veteran described in section 2101(a)(2) of this title; or</text>

									</paragraph><paragraph id="ID87B012474E04485F81AE8D18D7A27728"><enum>(2)</enum><text>$2,000, in the

				case of a veteran described in section 2101(b)(2) of this title.</text>

									</paragraph></subsection><subsection id="ID74BB711CF96E4256842A375A117D3C26"><enum>(c)</enum><header>Limitation on

				Number of Residences Subject to Assistance</header><text>A veteran eligible for

				assistance authorized under subsection (a) may only be provided such assistance

				with respect to 1 residence.</text>

								</subsection><subsection id="ID3F1DFDB1759D4DBA9708D3DC6F170ABD"><enum>(d)</enum><header>Regulations</header><text>Assistance

				under this section shall be provided in accordance with such regulations as the

				Secretary may prescribe.</text>

								</subsection><subsection id="ID56147004021A4A40A6EBFFB3B45F0A49"><enum>(e)</enum><header>Termination of

				Authority</header><text>The authority to provide assistance under subsection

				(a) shall expire at the end of the 5-year period beginning on the date of

				enactment of the Specially Adapted Housing Grants Improvements Act of

				2005.</text>

								</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="IDA8034A38C4A649A694007069BE54FB59"><enum>(b)</enum><header>Limitations on

			 Adaptive Housing Assistance</header><text>Section 2102 of such title is

			 amended—</text>

						<paragraph id="ID85574773BEAF4BCC98F04675C7494AA0"><enum>(1)</enum><text>in subsection

			 (a), by striking <quote>The assistance authorized by section 2101(a)</quote>

			 and all that follows through <quote>any one case—</quote> and inserting

			 <quote>Subject to subsection (d), the assistance authorized under section

			 2101(a) of this title shall be afforded under 1 of the following plans, at the

			 election of the veteran—</quote>;</text>

						</paragraph><paragraph id="ID3A6644637A7746BCB98A0B32AA7C8E7F"><enum>(2)</enum><text>by amending

			 subsection (b) to read as follows:</text>

							<quoted-block id="ID3332AFA7F2524C80953A41225F1390F0" style="OLC">

								<subsection id="ID43B1440164144ABCA48F287C26978105"><enum>(b)</enum><text>Subject to

				subsection (d), and except as provided in section 2104(b) of this title, the

				assistance authorized by section 2101(b) of this title may not exceed the

				actual cost, or in the case of a veteran acquiring a residence already adapted

				with special features, the fair market value, of the adaptations determined by

				the Secretary under such section 2101(b) to be reasonably

				necessary.</text>

								</subsection><after-quoted-block>;

				and</after-quoted-block></quoted-block>

						</paragraph><paragraph id="ID935A674EF200404A941B889C13B6E3B0"><enum>(3)</enum><text>by adding at the

			 end the following new subsection:</text>

							<quoted-block id="IDDEF1FA7FC8A14D0CB08615377DBC16D2" style="OLC">

								<subsection id="ID259C261F111D473AB911FEF0A8EDBFEA"><enum>(d)</enum><paragraph commented="no" display-inline="yes-display-inline" id="ID9168E7CCB8F445F79C2E5C36D115246A"><enum>(1)</enum><text>The aggregate amount of

				assistance available to a veteran under sections 2101(a) and 2102A of this

				title shall be limited to $50,000.</text>

									</paragraph><paragraph id="ID3B227167D48F4482AB052B2598431677" indent="up1"><enum>(2)</enum><text>The aggregate amount of assistance

				available to a veteran under sections 2101(b) and 2102A of this title shall be

				limited to the lesser of—</text>

										<subparagraph id="IDBB3495E67486499BB85C04C4560477CC"><enum>(A)</enum><text>the sum of the cost or fair market

				value described in section 2102(b) of this title and the actual cost of

				acquiring the adaptations described in subsection (a); and</text>

										</subparagraph><subparagraph id="IDFD2E8D2D3FFF400F8A7A9CB01C6256BF"><enum>(B)</enum><text>$10,000.</text>

										</subparagraph></paragraph><paragraph id="IDCE328C90567C4CE6B8D0914080D8D27F" indent="up1"><enum>(3)</enum><text>No veteran may receive more than 3

				grants of assistance under this

				chapter.</text>

									</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></subsection><subsection id="IDA08EB8DFBAD24B24B7365BCD03D869C7"><enum>(c)</enum><header>Clerical

			 Amendment</header><text>The table of sections at the beginning of such chapter

			 of such title is amended by inserting after the item relating to section 2102

			 the following:</text>

						<quoted-block id="ID5D00F8C20DAA4B169CD741C05CE2D0D1" style="OLC">

							<toc regeneration="no-regeneration">

								<toc-entry level="section">2102A. Assistance for veterans residing

				temporarily in housing owned by family

				member</toc-entry>

							</toc>

							<after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection></section><section id="IDDDD72A1F58EB42FC8F48462B5429019D"><enum>2033.</enum><header>GAO

			 reports</header>

					<subsection id="IDD7C5673A4A49474AA74442839828116B"><enum>(a)</enum><header>Interim

			 Report</header><text>Not later than 3 years after the date of enactment of this

			 Act, the Comptroller General of the United States shall submit to Congress an

			 interim report on the implementation of section 2102A of title 38, United

			 States Code (as added by section 2(a)), by the Department of Veterans

			 Affairs.</text>

					</subsection><subsection id="IDEB7B1C5E6CB049D6B8ED5AE40B439316"><enum>(b)</enum><header>Final

			 Report</header><text>Not later than 5 years after the date of enactment of this

			 Act, the Comptroller General of the United States shall submit to Congress a

			 final report on the implementation of such section 2102A by the Department of

			 Veterans Affairs.</text>

					</subsection></section></subtitle></title><title id="IDC0971FF3DA12461EB7D592130F0D36E2"><enum>III</enum><header>COMMITTEE ON

			 COMMERCE, SCIENCE, AND TRANSPORTATION</header>

			<section id="ID06B124942CA1436E8604084CDF816B49"><enum>3001.</enum><header>Short

			 title</header><text display-inline="no-display-inline">This title may be cited

			 as the <quote>Digital Transition and Public Safety Act of 2005.</quote>.</text>

			</section><section id="ID7F0867397D464AEB9561737277FEDF2D"><enum>3002.</enum><header>Analog

			 spectrum recovery; hard deadline</header><text display-inline="no-display-inline">Section 309(j)(14) of the

			 <act-name parsable-cite="CA34">Communications Act of 1934</act-name> (47 U.S.C.

			 309(j)(14)) is amended—</text>

				<paragraph id="IDA35D03328DE0484AB7A26077159D6959"><enum>(1)</enum><text>by striking

			 <quote>December 31, 2006.</quote> in subparagraph (A) and inserting

			 <quote>April 7, 2009.</quote>;</text>

				</paragraph><paragraph id="IDD4D07FF6860D4B7C8EEB8B72ED6BBAE2"><enum>(2)</enum><text>by striking

			 subparagraph (B);</text>

				</paragraph><paragraph id="IDDC2B3BE16E394319BA172188E9701E43"><enum>(3)</enum><text>by striking

			 <quote>or (B)</quote> in subparagraph (C)(i)(I);</text>

				</paragraph><paragraph id="ID36C47D4F32E1456786B2B894FCEA6CFC"><enum>(4)</enum><text>by striking

			 <quote>(C)(i),</quote> in subparagraph (D) and inserting

			 <quote>(B)(i),</quote>; and</text>

				</paragraph><paragraph id="IDB6C36F39A1644A07A18CB257D135F73B"><enum>(5)</enum><text>by redesignating

			 subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively.</text>

				</paragraph></section><section id="ID5FCF7A1208874B8EAAF3BFFAC7C5CED9"><enum>3003.</enum><header>Auction of

			 recovered spectrum</header>

				<subsection id="ID98D51BE344094936BC5A905151574DFE"><enum>(a)</enum><header>Auction: Date,

			 Applicable Requirements</header><text>Section 309(j)(15)(C) of the

			 <act-name parsable-cite="CA34">Communications Act of 1934</act-name> (47 U.S.C.

			 309(j)(15)(C)) is amended by adding at the end the following:</text>

					<quoted-block act-name="Communications Act of 1934" id="ID0E1943EC82AD40349F17E68201F370BF" style="OLC">

						<clause id="IDB6A9D1D012504EB4B51F82C934DED213"><enum>(v)</enum><header>Additional

				deadlines for recovered analog spectrum</header><text>Notwithstanding

				subparagraph (B), the Commission shall—</text>

							<subclause id="IDD41A518822DC43A8B3D93DD5C0AD13BA"><enum>(I)</enum><text>conduct the

				auction of the licenses for recovered analog spectrum commencing January 28,

				2008;</text>

							</subclause><subclause id="ID8582E4BC35434A02823EA550F2AB2916"><enum>(II)</enum><text>not later than

				60 days after the end of the pleading cycle for long-form applications for such

				auction established pursuant to part 1 of title 47, Code of Federal

				Regulations, grant or deny such long-form applications and issue the licenses

				for such recovered analog spectrum to each successful bidder whose long-form

				application is granted; and</text>

							</subclause><subclause id="ID9814AF238972491090CB050F0DA3BB5E"><enum>(III)</enum><text>collect and

				deposit the proceeds of such auction in the Digital Transition and Public

				Safety Fund established by section 3005 of the Digital Transition and Public

				Safety Act of 2005.</text>

							</subclause></clause><clause id="ID153CC4F09B364E7CB1E30C976ABD67B0"><enum>(vi)</enum><header>Recovered

				analog spectrum</header><text>For purposes of this subparagraph, the term

				<term>recovered analog spectrum</term> means spectrum reclaimed from the analog

				television service under paragraph (14), except—</text>

							<subclause id="ID9AA7EE941BDA45629E2CA9A95B3598EE"><enum>(I)</enum><text>spectrum required

				by section 337 to be made available for public safety services; and</text>

							</subclause><subclause id="ID9B05BD65D9624834BD820422814ED9F2"><enum>(II)</enum><text>spectrum

				auctioned prior to the date of enactment of the Digital Transition and Public

				Safety Act of

				2005.</text>

							</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>

				</subsection><subsection id="IDF0CAFA6F6B5D4E4A8403874B913D5AF9"><enum>(b)</enum><header>Extension of

			 Auction Authority</header><text>Paragraph (11) of section 309(j) of the

			 <act-name parsable-cite="CA34">Communications Act of 1934</act-name> (47 U.S.C.

			 309(j)(11)) is amended by striking <quote>September 30, 2007.</quote> and

			 inserting <quote>September 30, 2009.</quote>.</text>

				</subsection></section><section id="ID0B4B94BACEDC4B9B86570A18B3F71821"><enum>3004.</enum><header>Supplemental

			 license fees</header><text display-inline="no-display-inline">In addition to

			 any fees assessed under the <act-name parsable-cite="CA34">Communications Act

			 of 1934</act-name> (47 U.S.C. 151 et seq.), the Commission shall assess

			 extraordinary fees for licenses in the aggregate amount of $10,000,000, which

			 shall be deposited in the Treasury during fiscal year 2006 as offsetting

			 receipts.</text>

			</section><section id="ID46DEABCDA8244B2DBD67B9F8D1483F3E"><enum>3005.</enum><header>Digital

			 Transition and Public Safety Fund</header>

				<subsection id="ID9C82A4D9AA4D4024B17BB42F14D8EF67"><enum>(a)</enum><header>Establishment</header><text>There

			 is established in the Treasury of the United States a fund called the Digital

			 Transition and Public Safety Fund.</text>

				</subsection><subsection id="ID9391359675E1486B8994A0A94F3A623B"><enum>(b)</enum><header>Deposit of

			 Auction Proceeds</header><text>The Commission shall deposit the proceeds of the

			 auction authorized by section 309(j)(15)(C)(v) of the

			 <act-name parsable-cite="CA34">Communications Act of 1934</act-name> (47 U.S.C.

			 309(j)(15)(C)(v)) in the Fund as required by item (III) of that section.</text>

				</subsection><subsection id="IDCC3D937351F04053BE4D2317BF46C3D1"><enum>(c)</enum><header>Payments

			 Authorized</header><text>The Secretary of Commerce or the Secretary’s designee

			 shall make payments from the Fund in the following amounts, for the following

			 programs, and in the following order:</text>

					<paragraph id="ID736EA47BCB1943D3B7605EF7D7D8F99C"><enum>(1)</enum><text>Not to exceed

			 $3,000,000,000 for a program to assist consumers in the purchase of converter

			 boxes that convert a digital television signal to an analog television signal,

			 and any amounts unexpended or unobligated at the conclusion of the program

			 shall be used for the program described in paragraph (3).</text>

					</paragraph><paragraph id="ID8AAFEB678076422E8E2351F3BB2BCE0C"><enum>(2)</enum><text>Not to exceed

			 $200,000,000 for a program to convert low-power television stations and

			 television translator stations from analog to digital, and any amounts

			 unexpended or unobligated at the conclusion of the program shall be used for

			 the program described in paragraph (3).</text>

					</paragraph><paragraph id="ID10DF44917B894AE0981E1BA534EB3D79"><enum>(3)</enum><text>Not to exceed

			 $1,250,000,000 for a program to facilitate emergency communications, of which

			 $1,000,000,000 shall be used for an interoperability fund and $250,000,000

			 shall be used to implement a national alert system, of which $50,000,000 shall

			 be used for tsunami warning and coastal vulnerability programs.</text>

					</paragraph><paragraph id="IDD1854A58F5914C0D91817ADDEA89902F"><enum>(4)</enum><text>Not to exceed

			 $250,000,000 for a program to implement the ENHANCE 911 Act of 2004 (47 U.S.C.

			 942 note).</text>

					</paragraph><paragraph id="IDB74C6A9D37934658AA6B9EEFF2E93131"><enum>(5)</enum><text>Not to exceed

			 $200,000,000 for a program to provide assistance to coastal States and Indian

			 tribes affected by hurricanes and other coastal disasters.</text>

					</paragraph></subsection><subsection id="ID3380A80D257846FCA9E37C0CA0E35129"><enum>(d)</enum><header>Transfer of

			 Amount to Treasury</header><text>On October 2, 2009, Secretary shall transfer

			 $5,000,000,000 from the Fund to the general fund of the Treasury.</text>

				</subsection><subsection id="ID62E26C7CBFB3401C92569800E636B77A"><enum>(e)</enum><header>Obligation Time

			 Period</header><text>Any amounts that are to be paid from the Fund under

			 subsection (c) shall be obligated no later than September 14, 2010. The

			 Secretary may not obligate any amounts from the Fund until the proceeds of the

			 auction authorized by section 309(j)(15)(C)(v) are actually deposited by the

			 Commission pursuant to subsection (b). Any amount in the Fund that is not

			 obligated under subsection (c) by that date shall be transferred to the general

			 fund of the Treasury.</text>

				</subsection><subsection id="ID6C10443322314089BC92F72F0FA72C9E"><enum>(f)</enum><header>Use of Excess

			 Proceeds</header><text>Any proceeds of the auction authorized by section

			 309(j)(15)(C)(v) of the <act-name parsable-cite="CA34">Communications Act of

			 1934</act-name>, as added by section 3003 of this Act, that exceed the sum of

			 the payments made from the Fund under subsection (c), the transfer from the

			 Fund under subsection (d), and any amount made available under section 3006

			 (referred to in this subsection as <quote>excess proceeds</quote>), shall be

			 distributed as follows:</text>

					<paragraph id="IDE0DEB0C821AA41A5A453F0163018BF5B"><enum>(1)</enum><text>The first

			 $1,000,000,000 of excess proceeds shall be transferred to and deposited in the

			 general fund of the Treasury as miscellaneous receipts.</text>

					</paragraph><paragraph id="IDC98BF309AC724DBC84932AEC2474DDE1"><enum>(2)</enum><text>After the

			 transfer under paragraph (1), the next $500,000,000 of excess proceeds shall be

			 transferred to the interoperability fund described in subsection (c)(3).</text>

					</paragraph><paragraph id="IDCF98AE0336124266A2C9EE06427D09EC"><enum>(3)</enum><text>After the

			 transfers under paragraphs (1) and (2), the next $1,200,000,000 of excess

			 proceeds shall be transferred to the assistance program described in subsection

			 (c)(5).</text>

					</paragraph><paragraph id="ID5FB0D4F1AB1548A8836C4AD5DA8B0787"><enum>(4)</enum><text>After the

			 transfers under paragraphs (1) through (3), any remaining excess proceeds shall

			 be transferred to and deposited in the general fund of the Treasury as

			 miscellaneous receipts.</text>

					</paragraph></subsection></section><section id="ID597F27CF2D6C42C08BCCA4612CA231D2"><enum>3005A.</enum><header>Communication

			 system grants</header>

				<subsection id="ID89996B2171674264A2B93E11ABAB62E2"><enum>(a)</enum><header>Definitions</header><text>In

			 this section—</text>

					<paragraph id="IDE1D48444ECFE416CBA0AE61B0D404830"><enum>(1)</enum><text>the term

			 <term>demonstration project</term> means the demonstration project established

			 under subsection (b)(1);</text>

					</paragraph><paragraph id="ID1AECFFAB89A9490D8C1BBB7B7790410B"><enum>(2)</enum><text>the term

			 <term>Department</term> means the Department of Homeland Security;</text>

					</paragraph><paragraph id="ID81E2322F2994445C81FD2087F3A6277A"><enum>(3)</enum><text>the term

			 <term>emergency response provider</term> has the meaning given that term in

			 section 2(6) the Homeland Security Act of 2002 (6 U.S.C. 101(6)); and</text>

					</paragraph><paragraph id="ID25ACC493146D4BE0B8F6E48C41491756"><enum>(4)</enum><text>the term

			 <term>Secretary</term> means the Secretary of Homeland Security.</text>

					</paragraph></subsection><subsection id="ID41973B03ED484943A132B46B119481C6"><enum>(b)</enum><header>In

			 General</header>

					<paragraph id="ID29B26BCBACA543C1A82E5AECA93E3CA3"><enum>(1)</enum><header>Establishment</header><text>There

			 is established in the Department an <quote>International Border Community

			 Interoperable Communications Demonstration Project</quote>.</text>

					</paragraph><paragraph id="ID7C65CFCF81504CBBA09C944FC97740D0"><enum>(2)</enum><header>Minimum number

			 of communities</header><text>The Secretary shall select not fewer than 2

			 communities to participate in a demonstration project.</text>

					</paragraph><paragraph id="IDF67EF2C2FED24985A089D089592BF379"><enum>(3)</enum><header>Location of

			 communities</header><text>Not fewer than 1 of the communities selected under

			 paragraph (2) shall be located on the northern border of the United States and

			 not fewer than 1 of the communities selected under paragraph (2) shall be

			 located on the southern border of the United States.</text>

					</paragraph></subsection><subsection id="ID12096385A7A34F17BEDCCA066E010B2D"><enum>(c)</enum><header>Project

			 Requirements</header><text>The demonstration projects shall—</text>

					<paragraph id="IDDCB9972DF6834D2F955C20260B458325"><enum>(1)</enum><text>address the

			 interoperable communications needs of police officers, firefighters, emergency

			 medical technicians, National Guard, and other emergency response

			 providers;</text>

					</paragraph><paragraph id="ID719CF4C2A4C240F18760968D87823FB4"><enum>(2)</enum><text>foster

			 interoperable communications—</text>

						<subparagraph id="ID4D986ECC43BB4344BA89A27F98A26B32"><enum>(A)</enum><text>among Federal,

			 State, local, and tribal government agencies in the United States involved in

			 preventing or responding to terrorist attacks or other catastrophic events;

			 and</text>

						</subparagraph><subparagraph id="ID6CE3B97CF9FE4A92A967FD6029FCE358"><enum>(B)</enum><text>with similar

			 agencies in Canada and Mexico;</text>

						</subparagraph></paragraph><paragraph id="ID13F70492A2964E38998AC41AADB9BAA0"><enum>(3)</enum><text>identify common

			 international cross-border frequencies for communications equipment, including

			 radio or computer messaging equipment;</text>

					</paragraph><paragraph id="ID6F2B6D72D80D4638B48C1DA32812A659"><enum>(4)</enum><text>foster the

			 standardization of interoperable communications equipment;</text>

					</paragraph><paragraph id="ID82CE60E1F00C4F738108F1969D2605D4"><enum>(5)</enum><text>identify

			 solutions that will facilitate communications interoperability across national

			 borders expeditiously;</text>

					</paragraph><paragraph id="ID971E862FDD2742D6904463C881F25450"><enum>(6)</enum><text>ensure that

			 emergency response providers can communicate with each another and the public

			 at disaster sites or in the event of a terrorist attack or other catastrophic

			 event;</text>

					</paragraph><paragraph id="IDE3D462D6AA65471CB882C048BD15CFF2"><enum>(7)</enum><text>provide training

			 and equipment to enable emergency response providers to deal with threats and

			 contingencies in a variety of environments; and</text>

					</paragraph><paragraph id="ID962CA0223CF048C1A427BAC94CDA0D2B"><enum>(8)</enum><text>identify and

			 secure appropriate joint-use equipment to ensure communications access.</text>

					</paragraph></subsection><subsection id="IDCC410D2444F148F3BE9A85E7948324E6"><enum>(d)</enum><header>Distribution of

			 Funds</header>

					<paragraph id="ID26968D53E0E7471486EF749369AEA0B5"><enum>(1)</enum><header>In

			 general</header><text>The Secretary shall distribute funds under this section

			 to each community participating in a demonstration project through the State,

			 or States, in which each community is located.</text>

					</paragraph><paragraph id="ID3E726FAB2F8F4062A05BBCA5B836847A"><enum>(2)</enum><header>Other

			 participants</header><text>Not later than 60 days after receiving funds under

			 paragraph (1), a State receiving funds under this section shall make the funds

			 available to the local governments and emergency response providers

			 participating in a demonstration project selected by the Secretary.</text>

					</paragraph></subsection><subsection id="ID63203C737A944B30923ACBCA473D1602"><enum>(e)</enum><header>Funding</header><text>Amounts

			 made available from the interoperability fund under section 3005(c)(3) shall be

			 available to carry out this section without appropriation.</text>

				</subsection><subsection id="ID188063F076634EC0A82A840E478225C7"><enum>(f)</enum><header>Reporting</header><text>Not

			 later than December 31, 2005, and each year thereafter in which funds are

			 appropriated for a demonstration project, the Secretary shall provide to the

			 Committee on Homeland Security and Governmental Affairs of the Senate and the

			 Committee on Homeland Security of the House of Representatives a report on the

			 demonstration projects under this section.</text>

				</subsection></section><section id="IDD6DAF2F3E51844D1B49E31F1C27FA0AF"><enum>3006.</enum><header>Essential air

			 service Program</header>

				<subsection id="ID480BA1C0E60E4348ABCDCE0B0F682165"><enum>(a)</enum><header>In

			 General</header><text>If the amount appropriated to carry out the essential air

			 service program under subchapter II of chapter 417 of title 49, United States

			 Code, equals or exceeds $110,000,000 for fiscal year 2006, 2007, 2008, 2009, or

			 2010, then the Secretary of Commerce shall make $15,000,000 available from the

			 Digital Transition and Public Safety Fund available to the Secretary of

			 Transportation for use in carrying out the essential air service program for

			 that fiscal year.</text>

				</subsection><subsection id="IDF91EE086F51043328C2B276E54F62CBF"><enum>(b)</enum><header>Application

			 with Other Funds</header><text>Amounts made available under subsection (a) for

			 any fiscal year shall be in addition to any amounts—</text>

					<paragraph id="ID69F067F7F0F543599E3834B1089B2C74"><enum>(1)</enum><text>appropriated for

			 that fiscal year; or</text>

					</paragraph><paragraph id="IDA63EF3DA16964953AB757ED9D2DB2EEA"><enum>(2)</enum><text>derived from fees

			 collected pursuant to section 45301(a)(1) of title 49, United States Code, that

			 are made available for obligation and expenditure to carry out the essential

			 air service program for that fiscal year.</text>

					</paragraph></subsection></section></title><title id="ID9FBAD0CFC45A41BC805E82EE6A04CCFD"><enum>IV</enum><header>ENERGY AND

			 NATURAL RESOURCES</header>

			<section id="ID869D8B0191674CF7ADD9A8AC91BA8651"><enum>4001.</enum><header>Oil and gas

			 leasing Program</header>

				<subsection id="ID04CA28FC87854D5CB616C3055840E215"><enum>(a)</enum><header>Definitions</header><text>In

			 this section:</text>

					<paragraph id="IDC052AD5A792E45CE991650825B3F1E7F"><enum>(1)</enum><header>Coastal

			 plain</header><text>The term <term>Coastal Plain</term> means the area

			 identified as the Coastal Plain on the map prepared by the United States

			 Geological Survey, entitled <quote>Arctic National Wildlife Refuge 1002 Coastal

			 Plain Area</quote>, dated September 2005, and on file with the United States

			 Geological Survey.</text>

					</paragraph><paragraph id="IDBE029092BFFE4E48A915BC9D0E2BAE39"><enum>(2)</enum><header>Secretary</header><text>The

			 term <term>Secretary</term> means the Secretary of the Interior, acting through

			 the Bureau of Land Management.</text>

					</paragraph></subsection><subsection id="ID9C0B4B66B2DE4FF4846D7F0439F73DBD"><enum>(b)</enum><header>Program</header>

					<paragraph id="IDB03AEB4C453B47868D8D9DF9BBF03CB2"><enum>(1)</enum><header>In

			 general</header><text>Congress—</text>

						<subparagraph id="ID2BA71221FD4249E0BC34A68B94261E5E"><enum>(A)</enum><text>authorizes the

			 leasing, development, production, and transportation of oil and gas in and from

			 the Coastal Plain; and</text>

						</subparagraph><subparagraph id="ID5D1D2C8D4F9547EEAB63D750E6EC093A"><enum>(B)</enum><text>directs the

			 Secretary to take such actions as are necessary to—</text>

							<clause id="ID46D386C4DBF74F0E94F47777DAB1B863"><enum>(i)</enum><text>establish and

			 implement an environmentally sound competitive oil and gas leasing program to

			 carry out the activities authorized under subparagraph (A); and</text>

							</clause><clause id="IDD89D6E941DAF405CB31C32599931425B"><enum>(ii)</enum><text>conduct 2 lease

			 sales before October 1, 2010.</text>

							</clause></subparagraph></paragraph><paragraph id="ID8274E76A66D542E78A9B539FFCF052CE"><enum>(2)</enum><header>Administration</header><text>The

			 Secretary shall administer this section through regulations, lease terms,

			 conditions, restrictions, prohibitions, stipulations, and other provisions that

			 ensure the oil and gas exploration, development, production, and transportation

			 activities on the Coastal Plain are carried out in a manner that will ensure

			 the receipt of fair market value by the public for the mineral resources to be

			 leased.</text>

					</paragraph></subsection><subsection id="IDFC144442A33044FCBE8900C4A33AAA2A"><enum>(c)</enum><header>Lease Sales

			 Before Fiscal Year 2011</header>

					<paragraph id="ID96CE84F1B6A745A992B080527EC953E3"><enum>(1)</enum><header>In

			 general</header><text>In order to enable the Secretary to hold 2 lease sales

			 before October 1, 2010, this subsection shall apply with respect to the oil and

			 gas leasing program established by the Secretary pursuant to this

			 section.</text>

					</paragraph><paragraph id="IDD155EBA852604A869078D902D6331074"><enum>(2)</enum><header>Purposes</header><text>For

			 purposes of the National Wildlife Refuge System Administration Act of 1966 (16

			 U.S.C. 668dd et seq.) and amendments made by that Act, the oil and gas leasing

			 program and activities authorized by this section in the Coastal Plain are

			 deemed to be compatible with the purposes for which the Arctic National

			 Wildlife Refuge was established, and no further findings or decisions are

			 required to implement this determination of compatibility.</text>

					</paragraph><paragraph id="ID12FCEE85EAEE4CEAA23F4779EA970303"><enum>(3)</enum><header>Prelease

			 activities</header><text>The Final Legislative Environmental Impact Statement

			 on the Coastal Plain dated April 1987 and prepared pursuant to section 1002 of

			 the Alaska National Interest Lands Conservation Act (16 U.S.C. 3142) and

			 section 102(2)(C) of the <act-name parsable-cite="NEPA69">National

			 Environmental Policy Act of 1969</act-name> (42 U.S.C. 4332(2)(C)) is deemed to

			 satisfy the requirements under the <act-name parsable-cite="NEPA69">National

			 Environmental Policy Act of 1969</act-name> (42 U.S.C. 4321 et seq.) that apply

			 with respect to prelease activities, including actions authorized to be taken

			 by the Secretary to develop and promulgate regulations for the establishment of

			 the leasing program authorized by this section before the conduct of the first

			 lease sale.</text>

					</paragraph><paragraph id="ID1E741D14BF84461BBAC87DC43476AF8E"><enum>(4)</enum><header>Preferred

			 action</header>

						<subparagraph id="ID8A7C09F73EB04E22A2907407AF050817"><enum>(A)</enum><header>Nonleasing

			 alternatives</header><text>With respect to any environmental impact statement

			 prepared by the Secretary under the <act-name parsable-cite="NEPA69">National

			 Environmental Policy Act of 1969</act-name> (42 U.S.C. 4321 et seq.) with

			 respect to any lease sale conducted under the leasing program authorized by

			 this section, the Secretary is not required to identify nonleasing alternative

			 courses of action or to analyze the environmental effects of those courses of

			 action.</text>

						</subparagraph><subparagraph id="IDE953A50348FA4455AEEC786623B2FF48"><enum>(B)</enum><header>Leasing

			 alternatives</header><text>The Secretary shall only identify a preferred action

			 for leasing and a single leasing alternative, and analyze the environmental

			 effects and potential mitigation measures for the preferred action and leasing

			 alternative.</text>

						</subparagraph><subparagraph id="IDF3BC371F0EB148B4B0AA7871B0CB21CB"><enum>(C)</enum><header>Deadline</header><text>The

			 identification and related analyses required by subparagraph (B) shall be

			 completed within 18 months after the date of enactment of this Act.</text>

						</subparagraph><subparagraph id="ID061CECFF095443D9BD642D6ADD71A9EC"><enum>(D)</enum><header>Public

			 comments</header><text>The Secretary shall only consider public comments that

			 are filed within 30 days after publication of an environmental analysis.</text>

						</subparagraph><subparagraph id="ID01D3BDA2C6BE4AA7A78388BE5EE717EB"><enum>(E)</enum><header>Compliance</header><text>Compliance

			 with this paragraph satisfies all requirements of section 102(2)(C) of the

			 <act-name parsable-cite="NEPA69">National Environmental Policy Act of

			 1969</act-name> (42 U.S.C. 4332(2)(C)) for the analysis and consideration of

			 the environmental effects of proposed leasing under this section.</text>

						</subparagraph></paragraph><paragraph id="ID6F2AD79E27D84443AE8995BE65E0C1A7"><enum>(5)</enum><header>Expedited

			 judicial review</header>

						<subparagraph id="ID41223F03859E4A63AD053E42E42E197E"><enum>(A)</enum><header>Venue;

			 deadline</header><text>Any complaint seeking judicial review of this section or

			 any action of the Secretary under this section shall be filed in the United

			 States Court of Appeals for the District of Columbia—</text>

							<clause id="ID1B322D7C3EC643F3AA617755D8FED6B0"><enum>(i)</enum><text>within the 90-day

			 period beginning on the date of the action being challenged; or</text>

							</clause><clause id="ID898778D24FF54361899C088DF1A67174"><enum>(ii)</enum><text>in

			 the case of a complaint based solely on grounds arising after that period,

			 within 90 days after the complainant knew or reasonably should have known of

			 the grounds for the complaint.</text>

							</clause></subparagraph><subparagraph id="ID3A0ACE30AC95430E85FE580562849F03"><enum>(B)</enum><header>Scope</header><text>Judicial

			 review of a decision of the Secretary to conduct a lease sale under this

			 section (including the environmental analysis of the decision) shall be—</text>

							<clause id="ID0D6B29CC698C49D19C5628F437EA3792"><enum>(i)</enum><text>limited to

			 whether the Secretary has complied with this section; and</text>

							</clause><clause id="IDFAE0DD65F1DE458391EF7743CC5AF07F"><enum>(ii)</enum><text>based on the

			 administrative record of that decision.</text>

							</clause></subparagraph></paragraph></subsection><subsection id="ID499A1F58BF194FD38B00A674B8B551E7"><enum>(d)</enum><header>Receipts</header><text>Notwithstanding

			 any other provision of law, of the amount of adjusted bonus, rental, and

			 royalty receipts derived from oil and gas leasing and operations authorized

			 under this section—</text>

					<paragraph id="ID748678D475B043FA837C7A0D2576D2CA"><enum>(1)</enum><text>50 percent shall

			 be paid to the State of Alaska; and</text>

					</paragraph><paragraph id="IDACEEFDD113014BF0A04C335428A278DE"><enum>(2)</enum><text>the balance shall

			 be deposited into the Treasury as miscellaneous receipts.</text>

					</paragraph></subsection><subsection id="ID495BDB7555194C2C82B3D6DA5DFD823F"><enum>(e)</enum><header>Rights-of-Way</header><text>For

			 purposes of section 1102(4)(A) of the Alaska National Interest Lands

			 Conservation Act (16 U.S.C. 3162(4)(A)), any rights-of-way or easements across

			 the Coastal Plain for the exploration, development, production, or

			 transportation of oil and gas shall be considered to be established incident to

			 the management of the Coastal Plain under this section.</text>

				</subsection><subsection id="IDDA95D95ADB3D41049C4F9DEFAA8B73F2"><enum>(f)</enum><header>Maximum Surface

			 Acreage</header><text>In administering this section, the Secretary shall ensure

			 that the maximum quantity of surface acreage covered by production and support

			 facilities (including airstrips and any area covered by gravel berms or piers

			 for support of pipelines) does not exceed 2,000 acres on the Coastal

			 Plain.</text>

				</subsection><subsection id="ID17D3F8C2B3F54A0DAADD087381030855"><enum>(g)</enum><header>Prohibition on

			 Exports</header><text>An oil or gas lease issued under this title shall

			 prohibit the exportation of oil or gas produced under the lease.</text>

				</subsection></section></title><title id="ID6DA941777A964710A7D04A8CD04B11BD"><enum>V</enum><header>COMMITTEE ON

			 ENVIRONMENT AND PUBLIC WORKS</header>

			<section id="ID1CDB6F094A2D4CEC9B6374FC7BFD6814"><enum>5001.</enum><header>Technical

			 corrections to safetea–lu</header>

				<subsection id="ID0A0D9054906E4C079C390669C4E57CC1"><enum>(a)</enum><paragraph commented="no" display-inline="yes-display-inline" id="ID4A30A49AB1E945438BC3283F8FA44F4F"><enum>(1)</enum><text>Notwithstanding any

			 other provision of law, the amount of $639,000,000 described in section

			 1102(b)(10) of the Safe, Accountable, Flexible, Efficient Transportation Equity

			 Act: A Legacy for Users (119 Stat. 1144), shall be considered to be—</text>

						<subparagraph id="ID331AEA5D1C0B444CB6F844ADFAB65764" indent="up1"><enum>(A)</enum><text>for fiscal year 2006 only,

			 $631,000,000; and</text>

						</subparagraph><subparagraph id="ID52C136C1851F46AE887461E3A98E3DB5" indent="up1"><enum>(B)</enum><text>for fiscal year 2007 only,

			 $647,000,000.</text>

						</subparagraph></paragraph><paragraph id="IDC97B28F8FF424A0CA0396C34F5E414C5" indent="up1"><enum>(2)</enum><text>Notwithstanding any other provision

			 of law, the amount of $2,639,000,000 described in section 1102(c)(6) of the

			 Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for

			 Users (119 Stat. 1144), shall be considered to be—</text>

						<subparagraph id="IDBB6308F55B8A44BBBA79FB0364E8C6E8"><enum>(A)</enum><text>for fiscal year 2006 only,

			 $2,631,000,000; and</text>

						</subparagraph><subparagraph id="ID82ED6565655545DBACF9A4D87506E245"><enum>(B)</enum><text>for fiscal year 2007 only,

			 $2,647,000,000.</text>

						</subparagraph></paragraph></subsection><subsection id="IDA9353C1D1A8B47318B3A1CE5D5B8D998"><enum>(b)</enum><text>Section 4409 of

			 the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy

			 for Users (119 Stat. 1144) is amended—</text>

					<paragraph id="IDE04A9F732E5647A1B183ED15103D6D62"><enum>(1)</enum><text>by striking

			 <quote>Section</quote> and inserting the following:</text>

						<quoted-block id="ID23027D65254D4DE1AD79A3E8018AEE04" style="OLC">

							<subsection id="ID3096ECC5462F4FF6B16DAAA89A57547C"><enum>(a)</enum><header>In

				General</header><text>Section</text>

							</subsection><after-quoted-block>;

				and</after-quoted-block></quoted-block>

					</paragraph><paragraph id="IDE1C577D92A084F5083921949B5EB54CE"><enum>(2)</enum><text>by adding at the

			 end the following:</text>

						<quoted-block id="IDEB54B8CDA911428096020B19B5900199" style="OLC">

							<subsection id="IDFF405EA5745041EC86FF186A3A5A810A"><enum>(b)</enum><header>Effective

				Date</header><text>The amendments made by this section shall take effect on

				December 31,

				2008.</text>

							</subsection><after-quoted-block>.</after-quoted-block></quoted-block>

					</paragraph></subsection></section></title><title id="ID490A97512E5E442CBF9BFF45151E1D95"><enum>VI</enum><header>COMMITTEE ON

			 FINANCE</header>

			<section id="ID59961D206DE540FDAB2E4FC3A915B6ED"><enum>6000.</enum><header>Amendments to

			 <act-name parsable-cite="SSA">Social Security Act</act-name></header>

				<subsection id="IDBD5D37F8F2AE4E0C84D54978669DC2DA"><enum>(a)</enum><header>Amendments to

			 <act-name parsable-cite="SSA">Social Security

			 Act</act-name></header><text>Except as otherwise specifically provided,

			 whenever in this title an amendment is expressed in terms of an amendment to or

			 repeal of a section or other provision, the reference shall be considered to be

			 made to that section or other provision of the <act-name parsable-cite="SSA">Social Security Act</act-name>.</text>

				</subsection><subsection id="IDFD14D700CF7341278156F6A1CC452E36"><enum>(b)</enum><header>References to

			 the Secretary</header><text>In this title, the term <term>Secretary</term>

			 means the Secretary of Health and Human Services.</text>

				</subsection></section><subtitle id="ID9876D1B80DA346A192755239FBF1BC81"><enum>A</enum><header>Medicaid</header>

				<chapter id="ID60524819529842BCBE32A0530B65A608"><enum>1</enum><header>PAYMENT FOR

			 PRESCRIPTION DRUGS UNDER MEDICAID</header>

					<section id="IDCE1A696E0CC84654BC49680F54E7F2B5"><enum>6001.</enum><header>Pharmacy

			 reimbursement</header>

						<subsection id="ID69E57C2B175D42D797B61DE77329CA8B"><enum>(a)</enum><header>Definition of

			 Average Manufacturer Price</header>

							<paragraph id="IDBB3E9DD3933847C2A9496BF89F989EAE"><enum>(1)</enum><header>In

			 general</header><text>Section 1927(k)(1) (42 U.S.C. 1396r–8(k)(1)) is

			 amended—</text>

								<subparagraph id="ID264DA94AB47643BFAC8DD531591D1A7A"><enum>(A)</enum><text>in the paragraph

			 heading, by striking <quote><header-in-text level="paragraph">price</header-in-text></quote> and inserting

			 <quote><header-in-text level="paragraph">price; weighted average manufacturer

			 price</header-in-text></quote>;</text>

								</subparagraph><subparagraph id="ID85708E6F55F949AC844685ECA68242FA"><enum>(B)</enum><text>by striking

			 <quote>The term</quote> and inserting the following:</text>

									<quoted-block id="ID2D5B0131613C4011A9604595900D05EF" style="OLC">

										<subparagraph id="IDBFF79716D0B1490C9FFE5DD444BE7866"><enum>(A)</enum><header>In

				general</header><text>The term</text>

										</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</subparagraph><subparagraph id="IDC6C7CE8446014FC7B5E236F4C9DD74AA"><enum>(C)</enum><text>by adding at the

			 end the following:</text>

									<quoted-block id="IDDB138E6AD08048CCBC726FE6B08393D1" style="OLC">

										<subparagraph id="ID92F2FD47E7FB47CDBE0A310D5BA778E4"><enum>(B)</enum><header>Calculation

				requirements</header><text>For purposes of subparagraph (A), the average

				manufacturer price shall be calculated according to the following:</text>

											<clause id="ID3DD259709F074998A1CD69E0E750BB87"><enum>(i)</enum><header>Sales exempted

				from computation</header><text>Without regard to—</text>

												<subclause id="IDEF4C9519D33F438595853798F2C72FAE"><enum>(I)</enum><text>sales exempt from

				inclusion in the determination of best price under subsection

				(c)(1)(C)(i);</text>

												</subclause><subclause id="ID82AFC0CF65E944189538D4C10E0D764C"><enum>(II)</enum><text>such other sales

				as the Secretary identifies as sales to an entity that are merely nominal in

				amount under subsection (c)(1)(C)(ii)(III); and</text>

												</subclause><subclause id="ID183D409CE8B44D8186231B473986A0B3"><enum>(III)</enum><text>bona fide

				service fees (as defined in subparagraph (E)) that are paid by a manufacturer

				to an entity, that represent fair market value for a bona fide service, and

				that are not passed on in whole or in part to a client or customer of an

				entity.</text>

												</subclause></clause><clause id="ID545293D748B5468399DDCF9B61B6EB8E"><enum>(ii)</enum><header>Sale price net

				of discounts</header><text>By including the following:</text>

												<subclause id="IDFBAFE645F4184D97BA21A50252383B2A"><enum>(I)</enum><text>Cash discounts

				and volume discounts.</text>

												</subclause><subclause id="ID9D1215EF9F294D1AB9B99D2966DE566E"><enum>(II)</enum><text>Free goods that

				are contingent upon any purchase requirement or agreement.</text>

												</subclause><subclause id="ID99B64483C11B40E4BC45C1687960D8ED"><enum>(III)</enum><text>Sales at a

				nominal price that are contingent upon any purchase requirement or

				agreement.</text>

												</subclause><subclause id="ID193519ACDD954354984A7582DC61D991"><enum>(IV)</enum><text>Chargebacks,

				rebates provided to a pharmacy (including a mail order pharmacy but excluding a

				pharmacy benefit manager), or any other direct or indirect discounts.</text>

												</subclause><subclause id="ID9EC6615B5A9B4A6B9B45FE1E206D512F"><enum>(V)</enum><text>Any other price

				concessions, which may be based on recommendations of the Inspector General of

				the Department of Health and Human Services, that would result in a reduction

				of the cost to the purchaser, but only if the Secretary provides notice of the

				Secretary’s intent to include such price concessions in accordance with section

				553 of title 5, United States Code.</text>

												</subclause></clause></subparagraph><subparagraph id="ID429519E8238540B2861D4947D405C345"><enum>(C)</enum><header>Weighted

				average manufacturer price</header><text>The term <term>weighted average

				manufacturer price</term> means, with respect to a rebate period and multiple

				source drug, the volume-weighted average of the average manufacturer prices

				reported under subsection (b)(3)(A)(i)(I) for all drug products described in

				paragraph (7)(A)(i) that are therapeutically equivalent and bioequivalent forms

				of the drug, determined by—</text>

											<clause id="IDBF9542B8F3B54AE5B490896106C4A7EB"><enum>(i)</enum><text>computing the sum

				of the products (for each National Drug Code assigned to such drug products)

				of—</text>

												<subclause id="ID3C11C96C001C4B3D93871D81D2E765B4"><enum>(I)</enum><text>the average

				manufacturer price; and</text>

												</subclause><subclause id="ID0BD9ADE67FE1405EA7BFD871C2B0454A"><enum>(II)</enum><text>the total number

				of units reported sold under subsection (b)(3)(A)(i)(I); and</text>

												</subclause></clause><clause id="ID16416F8B2F8E46AEBED31C4A48D69489"><enum>(ii)</enum><text>dividing the sum

				determined under clause (i) by the sum of the total number of units under

				clause (i)(II) for all National Drug Codes assigned to such drug

				products.</text>

											</clause></subparagraph><subparagraph id="IDC80ABBC6AC284781B08D9D76F64CAA0D"><enum>(D)</enum><header>Limitation on

				sales at a nominal price</header>

											<clause id="ID69BACC9A223144CFB4A0F905FBFE2618"><enum>(i)</enum><header>In

				general</header><text>For purposes of clauses (i)(II) and (ii)(III) of

				subparagraph (B), only sales by a manufacturer of covered outpatient drugs that

				are single source drugs, innovator multiple source drugs, or authorized generic

				drugs at nominal prices to the following shall be considered to be sales at a

				nominal price or merely nominal in amount:</text>

												<subclause id="IDE4A277099416462581AC7CD12581F53F"><enum>(I)</enum><text>A covered entity

				described in section 340B(a)(4) of the <act-name parsable-cite="PHSA">Public

				Health Service Act</act-name>.</text>

												</subclause><subclause id="ID6A1D5DFAF7BA46F7B7BE6CC6A1D915C1"><enum>(II)</enum><text>An intermediate

				care facility for the mentally retarded.</text>

												</subclause><subclause id="ID36F9468B77094A33B219D48BD13EF905"><enum>(III)</enum><text>A State-owned

				or operated nursing facility.</text>

												</subclause><subclause id="ID4596EB6C62D34D3183330301390F0918"><enum>(IV)</enum><text>Any other

				facility or entity that the Secretary determines is a safety net provider to

				which sales of such drugs at a nominal price would be appropriate based on the

				following factors:</text>

													<item id="ID58530E43A4C34ECDB454100A1A54BF4C"><enum>(aa)</enum><text>The type of

				facility.</text>

													</item><item id="IDDD49945B69A144FFA3D5C9E22AE941BB"><enum>(bb)</enum><text>The services

				provided by the facility.</text>

													</item><item id="ID6C2315A99E304187A310EE0DA7EBFF17"><enum>(cc)</enum><text>The patient

				population served by the facility.</text>

													</item><item id="ID498A252D06ED478DB73C8DDBE6C6100C"><enum>(dd)</enum><text>The number of

				other facilities eligible to purchase at nominal prices in the same service

				area.</text>

													</item></subclause></clause><clause id="ID0CD53E3FB3814975BC1B1B00637C7C09"><enum>(ii)</enum><header>Nonapplication</header><text>Clause

				(i) shall not apply with respect to sales by a manufacturer at a nominal price

				of covered outpatient drugs that are single source drugs, innovator multiple

				source drugs, or authorized generic drugs pursuant to a master agreement under

				section 8126 of title 38, United States Code.</text>

											</clause></subparagraph><subparagraph id="IDCD36A0655D054F9999A276D4AB3F0F71"><enum>(E)</enum><header>Bona fide

				service fees</header><text>For purposes of subparagraph (B)(i)(III), the term

				<term>bona fide service fees</term> means expenses that are for an itemized

				service actually performed by an entity on behalf of a manufacturer that would

				have generally been paid for by the manufacturer at the same rate had these

				services been performed by another

				entity.</text>

										</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

								</subparagraph></paragraph><paragraph id="IDF9ADB26CCFBF4C2BB5CA17CB2BD97430"><enum>(2)</enum><header>Conforming

			 amendments</header><text>Section 1927(b)(3)(A)(i) (42 U.S.C.

			 1396r–8(b)(3)(A)(i)), as amended by section 6003(a), is amended—</text>

								<subparagraph id="ID3D4A9EF65A2C4C548821CDC229641AC4"><enum>(A)</enum><text>in subclause

			 (I)—</text>

									<clause id="ID90AFEFFA1FB44706BA5465E23655E91A"><enum>(i)</enum><text>by

			 inserting <quote>and the total number of units sold</quote> after <quote>(as

			 defined in subsection (k)(1))</quote>; and</text>

									</clause><clause id="ID6EA5D36A6C9C45A289D6BD808E2B7218"><enum>(ii)</enum><text>by

			 striking <quote>and</quote> at the end;</text>

									</clause></subparagraph><subparagraph id="IDE67C786CA766465CACE28E0C19BE290D"><enum>(B)</enum><text>in subclause

			 (II), by adding <quote>and</quote> at the end; and</text>

								</subparagraph><subparagraph id="ID93D3AB276EFF4081B397F9FE31B26090"><enum>(C)</enum><text>by adding at the

			 end the following:</text>

									<quoted-block id="ID227EC77BA02A4B7E8F70A50E214E9B5D" style="OLC">

										<subclause id="IDC98D7F72AE834AC591611630A026E871"><enum>(III)</enum><text>information and

				data on any sales that were made during such period at a nominal price,

				including, with respect to each such sale, the purchaser, the name of the

				product, the amount or number of units of the product sold at a nominal price,

				and the nominal price

				paid;</text>

										</subclause><after-quoted-block>.</after-quoted-block></quoted-block>

								</subparagraph></paragraph><paragraph id="IDA60C39E56FBB46A29B852D7CCFAAA906"><enum>(3)</enum><header>Effective

			 date</header>

								<subparagraph id="ID483DABB12E454C828D7CE41D1367CEEA"><enum>(A)</enum><header>In

			 general</header><text>Except as provided in subparagraph (B), the amendments

			 made by this subsection shall take effect on January 1, 2006.</text>

								</subparagraph><subparagraph id="ID754980ABDB744984B19B6EC5EDD73BA2"><enum>(B)</enum><header>Exception</header><text>Subparagraph

			 (D) of section 1927(k)(1) of the <act-name parsable-cite="SSA">Social Security

			 Act</act-name> (42 U.S.C. 1396r–8(k)(1)) (as added by paragraph (1)) shall not

			 apply with respect to a contract in effect on the date of enactment of this Act

			 pursuant to which pharmaceutical products are or may be available at nominal

			 prices until the expiration date of such contract, or October 1, 2006,

			 whichever is earlier, and shall apply to sales made, and rebate periods

			 beginning, on or after that date.</text>

								</subparagraph></paragraph><paragraph id="ID6368D8891CD2403FAA7653D860DAAC50"><enum>(4)</enum><header>Exclusion of

			 discounts provided to mail order and nursing facility pharmacies from the

			 determination of average manufacturer price</header>

								<subparagraph id="ID2B6D6EAB05D5461F931D9658C08EC3ED"><enum>(A)</enum><header>In

			 general</header><text>Section 1927(k)(1)(B)(ii)(IV) (42 U.S.C.

			 1396r–8(k)(1)(B)(ii)(IV)), as added by paragraph (1)(C), is amended to read as

			 follows:</text>

									<quoted-block id="IDFD2EBEBD49E94420918E9904AECCE668" style="OLC">

										<subclause id="ID69772C74056D4E088B5EE43FFA355008"><enum>(IV)</enum><text>Chargebacks,

				rebates provided to a pharmacy (excluding a mail order pharmacy, a pharmacy at

				a nursing facility or home, and a pharmacy benefit manager), or any other

				direct or indirect

				discounts.</text>

										</subclause><after-quoted-block>.</after-quoted-block></quoted-block>

								</subparagraph><subparagraph id="IDF930E3FBCC5E4969A725CAAD45318E0C"><enum>(B)</enum><header>Effective

			 date</header><text>Paragraph (3) shall apply to the amendment made by

			 subparagraph (A).</text>

								</subparagraph></paragraph><paragraph id="ID90707C4D96174C1C8B68021EC844A9F1"><enum>(5)</enum><header>Extension of

			 prescription drug discounts to enrollees of medicaid managed care

			 organizations</header>

								<subparagraph id="ID3938262A57314960A7A76872E81C8534"><enum>(A)</enum><header>In

			 general</header><text>Section 1903(m)(2)(A) (42 U.S.C. 1396b(m)(2)(A)) is

			 amended—</text>

									<clause id="IDF3435877FA2647808E405B9FE38B6419"><enum>(i)</enum><text>in

			 clause (xi), by striking <quote>and</quote> at the end;</text>

									</clause><clause id="ID14C47AA5AFE346C08A6F1BC98CD245D1"><enum>(ii)</enum><text>in

			 clause (xii), by striking the period at the end and inserting <quote>;

			 and</quote>; and</text>

									</clause><clause id="IDCED79FEFAF784449B31B9593515C3CAA"><enum>(iii)</enum><text>by adding at

			 the end the following:</text>

										<quoted-block id="ID02FBB4C7C111483DB4ABB7FDDB035B2B" style="OLC">

											<clause id="IDF63571B7DB8B4A63882551C3394295E4" indent="up2"><enum>(xiii)</enum><text>such contract provides that payment

				for covered outpatient drugs dispensed to individuals eligible for medical

				assistance who are enrolled with the entity shall be subject to the same rebate

				agreement entered into under section 1927 as the State is subject to and that

				the State shall have the option of collecting rebates for the dispensing of

				such drugs by the entity directly from manufacturers or allowing the entity to

				collect such rebates from manufacturers in exchange for a reduction in the

				prepaid payments made to the entity for the enrollment of such

				individuals.</text>

											</clause><after-quoted-block>.</after-quoted-block></quoted-block>

									</clause></subparagraph><subparagraph id="IDDA68CBB470F94F6EA46851C7270CBD8B"><enum>(B)</enum><header>Conforming

			 amendment</header><text>Section 1927(j)(1) (42 U.S.C. 1396r–8(j)91)) is amended

			 by inserting <quote>other than for purposes of collection of rebates for the

			 dispensing of such drugs in accordance with the provisions of a contract under

			 section 1903(m) that meets the requirements of paragraph (2)(A)(xiii) of that

			 section</quote> before the period.</text>

								</subparagraph><subparagraph id="ID8317EA95DA3C4A3082E359975E46E1C5"><enum>(C)</enum><header>Effective

			 date</header><text>The amendments made by this paragraph take effect on the

			 date of enactment of this Act and apply to rebate agreements entered into or

			 renewed under section 1927 of the <act-name parsable-cite="SSA">Social Security

			 Act</act-name> (42 U.S.C. 1396r–8) on or after such date.</text>

								</subparagraph></paragraph></subsection><subsection id="ID4A68EC7B227F42609BC1AA057C2493E2"><enum>(b)</enum><header>Upper Payment

			 Limit for Ingredient Cost of Covered Outpatient Drugs</header>

							<paragraph id="ID63D4F84F814F49F48CD4B7CC188DA4EA"><enum>(1)</enum><header>In

			 general</header><text>Section 1927(e) (42 U.S.C. 1396r–8(e)) is amended to read

			 as follows:</text>

								<quoted-block id="IDAFD9E9BD7A6E4358BD69E3FD96150B89" style="OLC">

									<subsection id="ID14874F5E52EC45AA9F99544A504458CA"><enum>(e)</enum><header>Pharmacy

				Reimbursement Limits</header>

										<paragraph id="ID4C47A7DC24AA48448F88A18BF9E072C5"><enum>(1)</enum><header>Upper payment

				limit for ingredient cost of covered outpatient drugs</header><text>No Federal

				financial participation shall be available for payment for the ingredient cost

				of a covered outpatient drug that exceeds the upper payment limit for that drug

				established under paragraph (2).</text>

										</paragraph><paragraph id="ID290515A4C17F4D378D5BB872B77A3EC3"><enum>(2)</enum><header>Upper payment

				limit</header>

											<subparagraph id="IDC41B749B0D804E69BDA32537D21781F9"><enum>(A)</enum><header>In

				general</header><text>Except as provided in subparagraphs (B) and (C), the

				upper payment limit established under this paragraph for the ingredient cost of

				a—</text>

												<clause id="ID3C881E3E6A9A40468B67ED0B029E4E29"><enum>(i)</enum><text>single source

				drug, is 105 percent of the average manufacturer price for that drug;

				and</text>

												</clause><clause id="IDF4C145752BD7464D8AB15016B85EFD51"><enum>(ii)</enum><text>multiple source

				drug, is 115 percent of the weighted average manufacturer price for that

				drug.</text>

												</clause></subparagraph><subparagraph id="ID8A6A424A86884508ADEF376CE9FAA015"><enum>(B)</enum><header>Exception for

				initial sales periods</header>

												<clause id="IDAE3AA2009B2C42A0B18E4B745AC8A43B"><enum>(i)</enum><header>In

				general</header><text>In the case of a covered outpatient drug during an

				initial sales period (not to exceed 2 calendar quarters) in which data on sales

				for the drug is not sufficiently available from the manufacturer to compute the

				average manufacturer price or the weighted average manufacturer price, the

				Secretary shall establish the upper payment limit for the ingredient cost of

				such drug to apply only during such period based on the following:</text>

													<subclause id="ID4EB4B40681184D949EF6B29F6B8E71C2"><enum>(I)</enum><text>In the case of a

				single source drug, such upper payment limit shall be the wholesale acquisition

				cost for the drug.</text>

													</subclause><subclause id="ID2AE33E14385144C29EDCDAC7189987AC"><enum>(II)</enum><text>In the case of a

				first noninnovator multiple source drug, such upper payment limit shall be the

				average manufacturer price for the single source drug that is rated as

				therapeutically equivalent and bioequivalent to such drug, minus 10

				percent.</text>

													</subclause><subclause id="ID43F17A1A66014E6C98CBE7F01D66F51E"><enum>(III)</enum><text>In the case of

				a subsequent noninnovator multiple source drug—</text>

														<item id="ID3BA36D4460F9446199F781EC1F17576E"><enum>(aa)</enum><text>if

				the Secretary has sufficient data to determine the weighted average

				manufacturer price for the drug, such upper payment limit shall be the weighted

				average manufacturer price determined for the therapeutically equivalent and

				bioequivalent form of the drug; and</text>

														</item><item id="IDCC27F3FC245F456A9F15B998AEEAD435"><enum>(bb)</enum><text>if

				the Secretary does not have sufficient data to determine the weighted average

				manufacturer price for the drug, such upper payment limit shall be the average

				manufacturer price for the single source drug that is rated as therapeutically

				equivalent and bioequivalent to the drug, minus 10 percent.</text>

														</item></subclause></clause><clause id="ID43B936E997194FC8A9E6D40C9CCD19D7"><enum>(ii)</enum><header>Definition of

				wholesale acquisition cost</header><text>For purposes of clause (i), the term

				<term>wholesale acquisition cost</term> means, with respect to a drug or

				biological, the manufacturer’s list price for the drug or biological to

				wholesalers or direct purchasers in the United States, not including prompt pay

				or other discounts, rebates, or reductions in price, for the most recent month

				for which the information is available, as reported in wholesale price guides

				or other publications of drug or biological pricing data.</text>

												</clause></subparagraph><subparagraph id="ID617FB6D28D4C4DF9B10BDF08678D2259"><enum>(C)</enum><header>Exception for

				certain innovator multiple source drugs</header><text>In the case of an

				innovator multiple source drug that a prescribing health care provider

				determines is necessary for treatment of a condition and that a noninnovator

				multiple source drug would not be as effective for the individual or would have

				adverse effects for the individual or both, and for which the provider obtains

				prior authorization in accordance with a program described in subsection

				(d)(5), the upper payment limit for the innovator multiple source drug shall be

				105 percent of the average manufacturer price for such drug.</text>

											</subparagraph><subparagraph id="IDBC1DF68AA6D7457F92E31B8C0EC8BD20"><enum>(D)</enum><header>Updates;

				availability of data</header>

												<clause id="ID3FA13785AC5A486C9BC07479D209D735"><enum>(i)</enum><header>Frequency of

				determination</header><text>The Secretary shall update the upper payment limits

				applicable under this paragraph on a quarterly basis, taking into account the

				most recent data collected for purposes of determining such limits and the Food

				and Drug Administration’s most recent publication of <quote>Approved Drug

				Products with Therapeutic Equivalence Evaluations</quote>.</text>

												</clause><clause id="ID912F22ECA1B449AAA759F9D1D673CD2E"><enum>(ii)</enum><header>Collection of

				data</header>

													<subclause id="IDC99BAD1B38E442D09618E765AD480E51"><enum>(I)</enum><header>In

				general</header><text>Beginning on January 1, 2006, the Secretary shall collect

				data with respect to the average manufacturer prices and volume of sales of

				covered outpatient drugs (or, in the case of covered outpatient drugs that are

				first marketed after such date, beginning with the first quarter during which

				the drugs are first marketed).</text>

													</subclause><subclause id="ID73F90D0263A84779B5F122D6E3C4FA1E"><enum>(II)</enum><header>Data reported

				for purposes of determining weighted average manufacturer

				price</header><text>Insofar as there is a lag in the reporting of the

				information on rebates and chargebacks so that adequate data are not available

				on a timely basis to update the weighted average manufacturer price for a

				multiple source drug, the manufacturer of such drug shall apply a methodology

				based on a 12-month rolling average for the manufacturer to estimate costs

				attributable to rebates and charge backs for such drug. For years after 2006,

				the Secretary shall establish a uniform methodology to estimate and apply such

				costs.</text>

													</subclause></clause><clause id="ID4F48B4D35EDA47389BD1592DEB8875BE"><enum>(iii)</enum><header>Availability

				of data to states</header><text>Notwithstanding subsection (b)(3)(D), beginning

				with the first quarter of fiscal year 2006 for which data is available, and for

				each fiscal year quarter thereafter, the Secretary shall make available to

				States the most recently reported average manufacturer prices for single source

				drugs and weighted average manufacturer prices for multiple source

				drugs.</text>

												</clause></subparagraph><subparagraph id="IDEA2AFFA086B946B98204B70C9F213172"><enum>(E)</enum><header>Authority to

				enter contracts</header><text>The Secretary may enter into contracts with

				appropriate entities to determine average manufacturer prices, volume, and

				other data necessary to calculate the upper payment limit for a covered

				outpatient drug established under this subsection and to calculate that payment

				limit.</text>

											</subparagraph></paragraph><paragraph id="ID761A8158B5A643778FED616774D8D41A"><enum>(3)</enum><header>State use of

				price data</header>

											<subparagraph id="ID716CA0CED5104D489FA0837EE5832650"><enum>(A)</enum><header>Distribution of

				data</header><text>The Secretary shall devise and implement a means for

				electronic distribution of the most recently calculated weighted average

				manufacturer price and the average manufacturer price for all covered

				outpatient drugs to each State agency designated under section 1902(a)(5) with

				responsibility for the administration or supervision of the administration of

				the State plan under this title.</text>

											</subparagraph><subparagraph id="IDC8F59CD13C884EB7BFBAE26494DA1EB5"><enum>(B)</enum><header>Authority to

				establish payment rates based on data</header><text>A State may use the price

				data received in accordance with subparagraph (A) in establishing payment rates

				for the ingredient costs and dispensing fees for covered outpatient drugs

				dispensed to individuals eligible for medical assistance under this

				title.</text>

											</subparagraph></paragraph><paragraph id="ID961E075BF8B741D2A9708E33E367E50A"><enum>(4)</enum><header>Reasonable

				dispensing fees required</header>

											<subparagraph id="ID3C9E8CC57E1749CEAAB4105E9E1ECF3F"><enum>(A)</enum><header>In

				general</header><text>A State which provides medical assistance for covered

				outpatient drugs shall pay a dispensing fee for each covered outpatient drug

				for which Federal financial participation is available in accordance with this

				section in accordance with the following:</text>

												<clause id="ID220429C4102D433996F32E34CFB3A766"><enum>(i)</enum><text>The dispensing

				fee for a noninnovator multiple source drug shall be greater than the

				dispensing fee for an innovator multiple source drug that is rated as

				therapeutically equivalent and bioequivalent to such drug.</text>

												</clause><clause id="IDB778ADEF17AA48D496FE5F66BC606B51"><enum>(ii)</enum><text>In establishing

				such dispensing fees, the State takes into consideration such requirements as

				the Secretary shall, by regulation, establish, and which shall include

				consideration of the following:</text>

													<subclause id="IDB2973F72808D4445B0D31B3B4B612B20"><enum>(I)</enum><text>Any reasonable

				costs associated with a pharmacist’s time in checking for information about an

				individual’s coverage or performing quality assurance activities.</text>

													</subclause><subclause id="IDE417772A044042A39FD3071FDAD5C646"><enum>(II)</enum><text>Costs associated

				with—</text>

														<item id="ID948A1AE575744A53B0A203AB9E6EA180"><enum>(aa)</enum><text>the measurement

				or mixing of a covered outpatient drug;</text>

														</item><item id="ID8226EE269A9443A1B5F71B2E66592376"><enum>(bb)</enum><text>filling the

				container for the drug;</text>

														</item><item id="IDF4EBFF06B03C4045B963C9E8917116D8"><enum>(cc)</enum><text>physically

				providing the completed prescription to an individual enrolled in the program

				under this title;</text>

														</item><item id="IDC862077E0101416A9A649F7DCA4023DB"><enum>(dd)</enum><text>delivery;</text>

														</item><item id="ID6D751FF10DF1456E96C342FD9C33D68E"><enum>(ee)</enum><text>special

				packaging;</text>

														</item><item id="ID3FE34C97AF32462E8FC306C6D1B797AD"><enum>(ff)</enum><text>overhead related

				to maintaining the facility and equipment necessary to operate the pharmacy,

				including the salaries of pharmacists and other pharmacy workers;</text>

														</item><item id="ID697295A04536401EB4DE8433B2477E9F"><enum>(gg)</enum><text>geographic

				factors that impact operational costs;</text>

														</item><item id="IDDDBE1CD37099420B9DC49517FCE7E2C7"><enum>(hh)</enum><text>patient

				counseling; and</text>

														</item><item id="IDD8CD6342BED849D58B807978797CF225"><enum>(ii)</enum><text>the dispensing

				of drugs requiring specialty pharmacy care management services (as determined

				by the Secretary in accordance with subparagraph (B)).</text>

														</item></subclause></clause></subparagraph><subparagraph id="IDB77F4C3CF02F4DF5879064C6310D3705"><enum>(B)</enum><header>Determination

				of drugs requiring specialty pharmacy care management services</header>

												<clause id="ID463D7EDAAB0C4B55A78D0FA577165122"><enum>(i)</enum><header>In

				general</header><text>Not later than 15 months after the date of enactment of

				the Deficit Reduction Omnibus Reconciliation Act of 2005, the Secretary shall

				establish a list of covered outpatient drugs which require specialty pharmacy

				care management services that includes only those drugs for which the Secretary

				determines that access by individuals eligible for medical assistance under

				this title would be seriously impaired without the provision of specialty

				pharmacy care management services.</text>

												</clause><clause id="ID03142B30EC2449259583CEBCEDCF7C22"><enum>(ii)</enum><header>Specialty

				pharmacy care management services defined</header><text>For purposes of this

				paragraph, the term <term>specialty pharmacy care management services</term>

				means services provided in connection with the dispensing or administration of

				a covered outpatient drug which the Secretary determines requires—</text>

													<subclause id="ID1BE455BAF8AB4C0D93F860E6CAA3C799"><enum>(I)</enum><text>significant

				caregiver and provider contact and education regarding the relevant disease

				state, prevention, treatment, drug indications, benefits, risks, complications,

				use, pharmacy counseling, and explanation of existing provider

				guidelines;</text>

													</subclause><subclause id="IDD31B17FA09F540879E10BD172D5540B1"><enum>(II)</enum><text>patient

				compliance services, including coordination of provider visits with drug

				delivery, compliance with a drug dosing regimen, mailing or telephone call

				reminders, compiling compliance data, and assisting providers in developing

				compliance programs; or</text>

													</subclause><subclause id="ID0B761C48CFD8469DBC117F6751DCAA70"><enum>(III)</enum><text>tracking

				services, including developing referral processes with providers, screening

				referrals, and tracking patient weight for dosing requirements.</text>

													</subclause></clause><clause id="ID22EA6B07A77D40D7BEFEE583CAD84E42"><enum>(iii)</enum><header>Quarterly

				updates</header><text>The Secretary shall update the list of covered outpatient

				drugs requiring specialty pharmacy management services on a quarterly

				basis.</text>

												</clause></subparagraph></paragraph><paragraph id="ID6A20BE8FE6A244BF9E24F365F70D31D3"><enum>(5)</enum><header>Rules

				applicable to critical access retail pharmacies</header>

											<subparagraph id="IDFF6309BC5744496D8E3E1D17F84F2959"><enum>(A)</enum><header>Reimbursement

				limits</header><text>Notwithstanding paragraph (2)(A), in the case of a

				critical access retail pharmacy (as defined in subparagraph (C)), the upper

				payment limit—</text>

												<clause id="ID86BA0381DF194876AA1D01B0E026E60C"><enum>(i)</enum><text>for the

				ingredient cost of a single source drug, is the lesser of—</text>

													<subclause id="ID6F21EE83522E4242A2182C3CBF92D726"><enum>(I)</enum><text>108 percent of

				the average manufacturer price for the drug; or</text>

													</subclause><subclause id="ID9E0EE8EB1E8B479BB552C305DB47D7CD"><enum>(II)</enum><text>the wholesale

				acquisition cost for the drug; and</text>

													</subclause></clause><clause id="ID896D24829CFC4768A89D68843D57E737"><enum>(ii)</enum><text>for the

				ingredient cost of a multiple source drug, is the lesser of—</text>

													<subclause id="ID582722D6234345459493DCCEF8C423C8"><enum>(II)</enum><text>140 percent of

				the weighted average manufacturer price for the drug; or</text>

													</subclause><subclause id="ID8D1EAC1E0289497EAB799F01541E5B8F"><enum>(II)</enum><text>the wholesale

				acquisition cost for the drug.</text>

													</subclause></clause></subparagraph><subparagraph id="IDCEA886D2FBC24196BC88A626C9285DFB"><enum>(B)</enum><header>Application of

				other provisions</header><text>The preceding provisions of this subsection

				shall apply with respect to reimbursement to a critical access retail pharmacy

				in the same manner as such provisions apply to reimbursement to other retail

				pharmacies except that, in establishing the dispensing fee for a critical

				access pharmacy the Secretary, in addition to the factors required under

				paragraph (4), shall include consideration of the costs associated with

				operating a critical access retail pharmacy.</text>

											</subparagraph><subparagraph id="ID95B45B847A864F85B6F28119CA6F7BDB"><enum>(C)</enum><header>Critical access

				retail pharmacy defined</header><text>For purposes of subparagraph (A), the

				term <term>critical access retail pharmacy</term> means an retail pharmacy that

				is not within a 20-mile radius of another retail

				pharmacy.</text>

											</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph><paragraph id="ID95FA86160B354A1F9F1796C2D3B69181"><enum>(2)</enum><header>Increase in

			 basic rebate for single source drugs and innovator multiple source

			 drugs</header><text>Section 1927(c)(1)(B)(i)(VI) (42 U.S.C.

			 1396r–8(c)(1)(B)(i)(VI), as added by section 6002(a)(3), is amended by striking

			 <quote>17</quote> and inserting <quote>18.1</quote>.</text>

							</paragraph><paragraph id="ID60CB9D123AEB49E484E527019AA3150C"><enum>(3)</enum><header>Conforming

			 amendments</header>

								<subparagraph id="IDCBE18DA78E884B62A312F211792F567D"><enum>(A)</enum><text>Section

			 1927(b)(3)(D)(i) (42 U.S.C. 1396r–8(b)(3)(D)(i)) is amended by inserting

			 <quote>(including with respect to the determination of weighted average

			 manufacturer prices under subsection (e)(2) and the distribution of weighted

			 average manufacturer prices and average manufacturer prices for covered

			 outpatient drugs to States under subsection (e)(3))</quote> after <quote>this

			 section</quote>.</text>

								</subparagraph><subparagraph id="ID4C6FB4DC1C444C1FA92EEC1D61567C8A"><enum>(B)</enum><text>Section

			 1903(i)(10) (42 U.S.C. 1396b(i)(10)) is amended—</text>

									<clause id="ID513C9DD9796441D1AC69BB245995941A"><enum>(i)</enum><text>in

			 subparagraph (A), by striking <quote>and</quote> at the end;</text>

									</clause><clause id="IDD10A22C91F804192BD9AA1713F31F05F"><enum>(ii)</enum><text>in

			 subparagraph (B), by striking <quote>or</quote> at the end and inserting

			 <quote>and</quote>; and</text>

									</clause><clause id="IDC3E18B940CB64A01810BC8981ED65BF4"><enum>(iii)</enum><text>by adding at

			 the end the following:</text>

										<quoted-block id="ID40FBD6FCDBD24C90B511A4F7477C4F03" style="OLC">

											<subclause id="IDC0933C54788A4E9D8ACF748578F2A49B" indent="up3"><enum>(C)</enum><text>with respect to any amount expended

				for the ingredient cost of a covered outpatient drug that exceeds the upper

				payment limit for that drug established under section 1927(e);

				or</text>

											</subclause><after-quoted-block>.</after-quoted-block></quoted-block>

									</clause></subparagraph></paragraph><paragraph id="ID99A93C9D362F4E1DB19E3F7716ED802F"><enum>(4)</enum><header>Effective

			 date</header><text>The amendments made by this subsection take effect with

			 respect to a State on the later of—</text>

								<subparagraph id="IDA099E164CAAB49E7891D295D4F2A7667"><enum>(A)</enum><text>January 1, 2007;

			 or</text>

								</subparagraph><subparagraph id="IDD36E6472D21A4C46A97211DD2EA5BF63"><enum>(B)</enum><text>the date that is

			 6 months after the close of the first regular session of the State legislature

			 that begins after the date of enactment of this Act.</text>

								</subparagraph></paragraph></subsection><subsection id="ID8AFC408E94204D5DADC843328F7EF253"><enum>(c)</enum><header>Interim Upper

			 Payment Limit</header>

							<paragraph id="ID5209226B335546CF80066D1FBB8238C1"><enum>(1)</enum><header>In

			 general</header><text>With respect to a State program under title XIX of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name>, during the period

			 that begins on January 1, 2006, and ends on the effective date applicable to

			 such State under subsection (b)(3), the Secretary shall—</text>

								<subparagraph id="IDFCE4F41908244087BE60F0447EB50B45"><enum>(A)</enum><text>apply the Federal

			 upper payment limit established under section 447.332(b) of title 42, Code of

			 Federal Regulations to the State by substituting <quote>125 percent</quote> for

			 <quote>150 percent</quote>; and</text>

								</subparagraph><subparagraph id="ID0BA6F27CEE334E80A87FA86262ABCABB"><enum>(B)</enum><text>in the case of

			 covered outpatient drugs under title XIX of such Act that are marketed as of

			 July 1, 2005, and are subject to Federal upper payment limits that apply under

			 section 447.332 of title 42, Code of Federal Regulations, use average wholesale

			 prices, direct prices, and wholesale acquisition costs for such drugs that do

			 not exceed such prices and costs as of such date to determine the Federal upper

			 payment limits that apply under section 447.332 of title 42, Code of Federal

			 Regulations to such drugs during such period.</text>

								</subparagraph></paragraph><paragraph id="ID51077025BB2E42589FE9A36927BE01E3"><enum>(2)</enum><header>Application to

			 new drugs</header><text>Paragraph (1)(A) shall apply to a covered outpatient

			 drug under title XIX of the <act-name parsable-cite="SSA">Social Security

			 Act</act-name> that is first marketed after July 1, 2005, but before January 1,

			 2007, and is subject to the Federal upper payment limit established under

			 section 447.332(b) of title 42, Code of Federal Regulations.</text>

							</paragraph></subsection></section><section id="IDA0B7649E089D4108B4EABCF6CA143E40"><enum>6002.</enum><header>Increase in

			 rebates for covered outpatient drugs</header>

						<subsection id="ID56C746B763F44099880DF10AFA6A86E4"><enum>(a)</enum><header>Increase in

			 Basic Rebate for Single Source Drugs and Innovator Multiple Source

			 Drugs</header><text>Section 1927(c)(1)(B)(i) (42 U.S.C. 1396r–8(c)(1)(B)(i)) is

			 amended—</text>

							<paragraph id="ID5614C3CB8F4D48B39369091CEA738973"><enum>(1)</enum><text>in subclause

			 (IV), by striking <quote>and</quote> after the semicolon;</text>

							</paragraph><paragraph id="IDAFB868D8CD04425B83F9D7185B5B228B"><enum>(2)</enum><text>in subclause

			 (V)—</text>

								<subparagraph id="ID4208D71483A643489287DDB6B83803FC"><enum>(A)</enum><text>by inserting

			 <quote>and before January 1, 2006,</quote> after <quote>1995,</quote>;

			 and</text>

								</subparagraph><subparagraph id="IDFB75603A5C57438A8D15C089D277038E"><enum>(B)</enum><text>by striking the

			 period and inserting <quote>; and</quote>; and</text>

								</subparagraph></paragraph><paragraph id="IDBEB2EEFA5A9047A1B965B485D9810AA8"><enum>(3)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="ID52B77DB1FB71464F916BD0936D6DE162" style="OLC">

									<subclause id="ID7AE079FB35554A8F86E65CD03DE2164B"><enum>(VI)</enum><text>after December

				31, 2005, is 17

				percent.</text>

									</subclause><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></subsection><subsection id="IDB968D39BC37045A1A2F088BD4961B41E"><enum>(b)</enum><header>Increase in

			 Rebate for Other Drugs</header><text>Section 1927(c)(3)(B) (42 U.S.C.

			 1396r–8(c)(3)(B)) is amended—</text>

							<paragraph id="IDF32CED95390A4C409C1F1534667CC282"><enum>(1)</enum><text>in clause (i), by

			 striking <quote>and</quote> at the end;</text>

							</paragraph><paragraph id="IDA1BD7260D32844D28A70DA0D861C93A1"><enum>(2)</enum><text>in clause

			 (ii)—</text>

								<subparagraph id="ID2ED22C31F2C84CA1825E3902118599BA"><enum>(A)</enum><text>by inserting

			 <quote>and before January 1, 2006,</quote> after <quote>December 31,

			 1993,</quote>; and</text>

								</subparagraph><subparagraph id="IDD9EF70AF98B94E50AA93C0594A58C511"><enum>(B)</enum><text>by striking the

			 period at the end and inserting <quote>; and</quote>; and</text>

								</subparagraph></paragraph><paragraph id="ID37907B25A78043FE95B6D1BEFBBDB8D2"><enum>(3)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="ID632D2394ACDD467A94823C5A4EA06B96" style="OLC">

									<clause id="ID14B1699AD7F448C4BE8C31D971D3EDFF"><enum>(iii)</enum><text>after December

				31, 2005, is 17

				percent.</text>

									</clause><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></subsection></section><section id="ID4303F00E570242099FA2F66708BF401F"><enum>6003.</enum><header>Improved

			 regulation of authorized generic drugs</header>

						<subsection id="ID055D13780450413AB1A0A926D7B5C2F1"><enum>(a)</enum><header>Inclusion With

			 Other Reported Average Manufacturer and Best Prices</header><text>Section

			 1927(b)(3)(A) (42 U.S.C. 1396r–8(b)(3)(A)) is amended—</text>

							<paragraph id="ID3EF0F117750948D2942669197608096A"><enum>(1)</enum><text>by striking

			 clause (i) and inserting the following:</text>

								<quoted-block id="ID9E86B8452264400C8643D24C207C6289" style="OLC">

									<clause id="ID350B78457D184EC79744F8C0730EBC17"><enum>(i)</enum><text>not later than 30

				days after the last day of each rebate period under the agreement—</text>

										<subclause id="ID043D128E2FF04BBB9B0A0F0A293D90E8"><enum>(I)</enum><text>on the average

				manufacturer price (as defined in subsection (k)(1)) for each covered

				outpatient drug for the rebate period under the agreement (including for each

				such drug that is an authorized generic drug or is any other drug sold under a

				new drug application approved under section 505(c) of the

				<act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic

				Act</act-name>); and</text>

										</subclause><subclause id="ID93475ECDDC4448CD9FDCD97F9DE427D2"><enum>(II)</enum><text>for each single

				source drug, innovator multiple source drug, authorized generic drug, and any

				other drug sold under a new drug application approved under section 505(c) of

				the <act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic

				Act</act-name>, on the manufacturer’s best price (as defined in subsection

				(c)(1)(C)) for such drug for the rebate period under the

				agreement;</text>

										</subclause></clause><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</paragraph><paragraph id="IDC09F5B2C248443478D88AE07E99181EF"><enum>(2)</enum><text>in clause (ii),

			 by inserting <quote>(including for such drugs that are authorized generic drugs

			 or are any other drugs sold under a new drug application approved under section

			 505(c) of the <act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic

			 Act</act-name>)</quote> after <quote>drugs</quote>.</text>

							</paragraph></subsection><subsection id="ID84EC8CC189E14362AA18B83168BAF6A3"><enum>(b)</enum><header>Conforming

			 Amendments</header><text>Section 1927 of such Act (42 U.S.C. 1396r–8) is

			 amended—</text>

							<paragraph id="IDC101158C21844F4BBD107A28FD2FF3A7"><enum>(1)</enum><text>in subsection

			 (c)(1)(C)—</text>

								<subparagraph id="ID90EE71FD829742B28818FCECB82980E7"><enum>(A)</enum><text>in clause (i), in

			 the matter preceding subclause (I), by striking <quote>or innovator multiple

			 source drug of a manufacturer</quote> and inserting <quote>, innovator multiple

			 source drug, or authorized generic drug of a manufacturer, or any other drug of

			 a manufacturer that is sold under a new drug application approved under section

			 505(c) of the <act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic

			 Act</act-name></quote>; and</text>

								</subparagraph><subparagraph id="ID026B8A9E24DA415C9276336E7D4F0D7B"><enum>(B)</enum><text>in clause

			 (ii)—</text>

									<clause id="ID28C46DA9CC244C789D68405EF2F90804"><enum>(i)</enum><text>in

			 subclause (II), by striking <quote>and</quote> at the end;</text>

									</clause><clause id="IDAE4BEDE301264169837343F2AF9102BC"><enum>(ii)</enum><text>in

			 subclause (III), by striking the period at the end and inserting <quote>;

			 and</quote>; and</text>

									</clause><clause id="ID9BF0FD31807049B383A6348D9BBD384E"><enum>(iii)</enum><text>by adding at

			 the end the following:</text>

										<quoted-block id="IDBE3DB07FCE394738A4A21CEE85136808" style="OLC">

											<subclause id="ID2E647B4279D346DC9988555A304CF9A0"><enum>(IV)</enum><text>in the case of a

				manufacturer that approves, allows, or otherwise permits an authorized generic

				drug or any other drug of the manufacturer to be sold under a new drug

				application approved under section 505(c) of the

				<act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic

				Act</act-name>, shall be inclusive of the lowest price for such authorized

				generic or other drug available from the manufacturer during the rebate period

				to any wholesaler, retailer, provider, health maintenance organization,

				nonprofit entity, or governmental entity within the United States, excluding

				those prices described in subclauses (I) through (IV) of clause

				(i).</text>

											</subclause><after-quoted-block>;

				and</after-quoted-block></quoted-block>

									</clause></subparagraph></paragraph><paragraph id="ID86879DF9D91A48DBA38AF0ED24EB1C6B"><enum>(2)</enum><text>in subsection

			 (k)—</text>

								<subparagraph id="IDCCDBE6CE6FC94A2D9294C69A97C6E771"><enum>(A)</enum><text>in paragraph (1),

			 as amended by section 6001(a)(1)(B), by adding at the end the following:</text>

									<quoted-block id="IDB8D5F22652444DA0937F22A05CC72591" style="OLC">

										<subparagraph id="ID338556055D46481AB4AAF52EB66B7C7D"><enum>(F)</enum><header>Inclusion of

				authorized generic drugs</header><text>In the case of a manufacturer that

				approves, allows, or otherwise permits an authorized generic drug or any other

				drug of the manufacturer to be sold under a new drug application approved under

				section 505(c) of the <act-name parsable-cite="FFDCA">Federal Food, Drug, and

				Cosmetic Act</act-name>, such term shall be inclusive of the average price paid

				for such authorized generic or other

				drug.</text>

										</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</subparagraph><subparagraph id="ID6BF29C3111FC420693E91999A441DC7A"><enum>(B)</enum><text>by adding at the

			 end the following:</text>

									<quoted-block id="ID9DF5E1511A254B328A009558CCA6D4A9" style="OLC">

										<paragraph id="ID697E80F1B7F447648336B9CA7FC13686"><enum>(10)</enum><header>Authorized

				generic drug</header><text>The term <term>authorized generic drug</term> means

				a listed drug (as that term is used in section 505(j) of the

				<act-name parsable-cite="FFDCA">Federal Food, Drug, and Cosmetic

				Act</act-name>) that—</text>

											<subparagraph id="ID65635DCB791143EBBE46CEA3B9B4DD77"><enum>(A)</enum><text>has been approved

				under section 505(c) of such Act; and</text>

											</subparagraph><subparagraph id="ID0A347DFDED1E4AA39BE94D81D4F66EA8"><enum>(B)</enum><text>is marketed,

				sold, or distributed directly or indirectly to the retail class of trade under

				a different labeling, packaging (other than repackaging as the listed drug in

				blister packs, unit doses, or similar packaging for use in institutions),

				product code, labeler code, trade name, or trade mark than the listed

				drug.</text>

											</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

								</subparagraph></paragraph></subsection><subsection id="ID8FB799B4A98C4601AF6ADA5D76423E52"><enum>(c)</enum><header>Effective

			 Date</header><text>The amendments made by this section take effect on January

			 1, 2006.</text>

						</subsection></section><section id="ID47F64ACA847D4B2CB6347C22F9690B4B"><enum>6004.</enum><header>Collection of

			 rebates for certain physician administered drugs</header>

						<subsection id="ID9DBAB2D6B3E244F591584290764CE2B1"><enum>(a)</enum><header>In

			 General</header><text>Section 1927(a) (42 U.S.C. 1396r–8(a)) is amended by

			 adding at the end the following:</text>

							<quoted-block id="ID2924DF7D7252452D93898BED23351843" style="OLC">

								<paragraph id="ID6137C925FCF7425BA8FE46FC72110319"><enum>(7)</enum><header>Requirement for

				submission of utilization data for certain physician-administered

				drugs</header><text>In order for payment to be available under section 1903(a)

				for a covered outpatient drug that is physician administered (as determined by

				the Secretary), and that is administered on or after January 1, 2006, the State

				shall provide for the submission of such utilization data and coding (including

				both J-codes and National Drug Code numbers) for each such drug as the

				Secretary may specify as necessary in order to secure rebates for payments made

				under this

				title.</text>

								</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</subsection><subsection id="IDCC402357538A4331BB8EF041D863611A"><enum>(b)</enum><header>Limitation on

			 Payment</header><text>Section 1903(i)(10) (42 U.S.C. 1396b(i)(10)), as amended

			 by section 6001(b)(2)(B), is amended—</text>

							<paragraph id="ID55CF9520DA2147D39E0E3B25E3736BC4"><enum>(1)</enum><text>in subparagraph

			 (B), by striking <quote>and</quote> at the end;</text>

							</paragraph><paragraph id="ID114E4392CA574B439301845F4D465F26"><enum>(2)</enum><text>in subparagraph

			 (C), by striking <quote>; or</quote> at the end and inserting <quote>,

			 and</quote>; and</text>

							</paragraph><paragraph id="ID8AF66C031A084BDBAB02BC150D1AB13B"><enum>(3)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="ID14C917E2553A4F5899B8D33923932CB1" style="OLC">

									<subparagraph id="ID406C8CD7C546426ABB040D8CD8B484F3" indent="up1"><enum>(D)</enum><text>with respect to covered outpatient

				drugs described in section 1927(a)(7), unless information with respect to

				utilization data and coding on such drugs is submitted in accordance with that

				section;

				or</text>

									</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></subsection></section></chapter><chapter id="ID912913345CC946E88C7D94327CF32A15"><enum>2</enum><header>LONG-TERM CARE

			 UNDER MEDICAID</header>

					<section id="ID493E014145084288B4450293947CEF8E"><enum>6011.</enum><header>Reform of

			 Medicaid asset transfer rules</header>

						<subsection id="ID8CDA3E5F3AA544F8BCEB83E8D308570F"><enum>(a)</enum><header>Requirement To

			 Impose Partial Months of Ineligibility</header><text>Section 1917(c)(1)(E) (42

			 U.S.C. 1396p(c)(1)(E)) is amended by adding at the end the following:</text>

							<quoted-block id="IDCBB85769BAED4D428C7CEF8586477508" style="OLC">

								<clause id="ID483F334D58CF4A99A1E41F5158E91B99" indent="up3"><enum>(iv)</enum><text>A State shall not round down, or

				otherwise disregard any fractional period of ineligibility determined under

				clause (i) or (ii) with respect to the disposal of

				assets.</text>

								</clause><after-quoted-block>.</after-quoted-block></quoted-block>

						</subsection><subsection id="ID02B3FE11FC394CE0BC2C41F5FDE6E1D5"><enum>(b)</enum><header>Authority for

			 States To Accumulate Multiple Transfers Into 1 Penalty

			 Period</header><text>Section 1917(c)(1) (42 U.S.C. 1396p(c)(1)) is amended by

			 adding at the end the following:</text>

							<quoted-block id="ID2808127B38424FAEB6183127CF535185" style="OLC">

								<subparagraph id="ID73CEB051E09747AD906D1B9ED03C7C7D" indent="up2"><enum>(F)</enum><text>Notwithstanding the preceding

				provisions of this paragraph, in the case of an individual (or individual’s

				spouse) who disposes of multiple assets in more than 1 month for less than fair

				market value on or after the applicable look-back date specified in

				subparagraph (B), a State may determine the period of ineligibility applicable

				to such individual under this paragraph by—</text>

									<clause id="ID27CC540075E1442A97F3A57CDF5D1146"><enum>(i)</enum><text>treating the total, cumulative

				uncompensated value of all assets transferred by the individual (or

				individual’s spouse) during all months on or after the look-back date specified

				in subparagraph (B) as 1 transfer for purposes of clause (i) or (ii) (as the

				case may be) of subparagraph (E); and</text>

									</clause><clause id="IDFCF6E8FB489848E98D72BF8B1C6AD305"><enum>(ii)</enum><text>beginning such period on the earliest

				date which would apply under subparagraph (D) to any of such

				transfers.</text>

									</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</subsection><subsection id="ID00F75D8E148548E6864C7E932A078F30"><enum>(c)</enum><header>Inclusion of

			 Transfer of Certain Notes and Loans Assets</header><text>Section 1917(c)(1) (42

			 U.S.C. 1396p(c)(1)), as amended by subsection (b), is amended by adding at the

			 end the following:</text>

							<quoted-block id="IDD2E5055C3C7341088560EC7B351CFFC6" style="OLC">

								<subparagraph id="ID44EE0799796642F085CCBC3A996EE920" indent="up2"><enum>(G)</enum><text>For purposes of this paragraph with

				respect to a transfer of assets, the term <term>assets</term> includes funds

				used to purchase a promissory note, loan, or mortgage unless such note, loan,

				or mortgage—</text>

									<clause id="ID0D91FBD07DD44FCEAB478E52B23D5F8F"><enum>(i)</enum><text>has a repayment term that is

				actuarially sound (as determined in accordance with actuarial publications of

				the Office of the Chief Actuary of the Social Security Administration);</text>

									</clause><clause id="ID1B6B810CE1E34071A2477176BAAD26CD"><enum>(ii)</enum><text>provides for payments to be made in

				equal amounts during the term of the loan, with no deferral and no balloon

				payments made; and</text>

									</clause><clause id="ID9D8C8FB86ED24C2389CE6CA18C32E586"><enum>(iii)</enum><text>prohibits the cancellation of the

				balance upon the death of the lender.</text>

									</clause></subparagraph><quoted-block-continuation-text quoted-block-continuation-text-level="subsection">In the

				case of a promissory note, loan, or mortgage that does not satisfy the

				requirements of clauses (i) through (iii), the value of such note, loan, or

				mortgage shall be the outstanding balance due as of the date of the

				individual’s application for medical assistance for services described in

				subparagraph

				(C).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>

						</subsection><subsection id="ID071080C1100248038B84EFA5E750EB5C"><enum>(d)</enum><header>Treatment of

			 Annuities</header>

							<paragraph id="ID40D1DA47A51C40309EC2F341174D2B9B"><enum>(1)</enum><header>Inclusion of

			 transfers to purchase balloon annuities</header><text>Section 1917(c)(1) (42

			 U.S.C. 1396p(c)(1)), as amended by subsection (c), is amended by adding at the

			 end the following:</text>

								<quoted-block id="IDF971AF9A20384C908F0EBE273CB389D5" style="OLC">

									<subparagraph id="ID6A219B861B524D5BA862AAD33FC0F27F" indent="up2"><enum>(H)</enum><text>For purposes of this paragraph with

				respect to a transfer of assets, the term <term>assets</term> includes an

				annuity purchased by or on behalf of an annuitant who has applied for medical

				assistance with respect to nursing facility services or other long-term care

				services under this title unless—</text>

										<clause id="IDD2A1497153D84370A7246C31131BB386"><enum>(i)</enum><text>the annuity is—</text>

											<subclause id="IDCD246304FA8F41F28EE2A6F58B99B9B4"><enum>(I)</enum><text>an annuity described in subsection

				(b) or (q) of section 408 of the Internal Revenue Code of 1986; or</text>

											</subclause><subclause id="ID377AD01485244A2AB15A42BD22D54209"><enum>(II)</enum><text>purchased with proceeds

				from—</text>

												<item id="ID31FFA761A6B6441E957D1F57310F5652"><enum>(aa)</enum><text>an account or trust described in

				subsection (a), (c), (p) of section 408 of such Code;</text>

												</item><item id="ID7061DB4A4962448D84528FADF1BD86F2"><enum>(bb)</enum><text>a simplified employee pension (within

				the meaning of section 408(k) of such Code); or</text>

												</item></subclause></clause><clause id="ID97895ED4B69A44409D09B2C29EC42306"><enum>(cc)</enum><text>a Roth IRA described in section 408A

				of such Code; or</text>

										</clause><clause id="ID87354284D74B4E22B33C268E153D738D"><enum>(ii)</enum><text>the annuity—</text>

											<subclause id="IDE65B0638DBA8442DAA680813EFEF15E8"><enum>(I)</enum><text>is irrevocable and

				nonassignable;</text>

											</subclause><subclause id="IDB65526B0F58947F8894785F2F625AACC"><enum>(II)</enum><text>is actuarially sound (as

				determined in accordance with actuarial publications of the Office of the Chief

				Actuary of the Social Security Administration); and</text>

											</subclause><subclause id="IDC054EC93CDBD4B4AA391AAD1A53A2657"><enum>(III)</enum><text>provides for payments in equal

				amounts during the term of the annuity, with no deferral and no balloon

				payments

				made.</text>

											</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph><paragraph id="IDBF7671B8FB564D21B755ED0BE88C4148"><enum>(2)</enum><header>Requirement for

			 state to be named as a remainder beneficiary</header><text>Section 1917(c)(1)

			 (42 U.S.C. 1396p(c)(1)), as amended by paragraph (1), is amended by adding at

			 the end the following:</text>

								<quoted-block id="ID186BE7D85F5D41FD8768BA415E961040" style="OLC">

									<subclause id="ID641C581339354558B872EDDF37330277" indent="up4"><enum>(I)</enum><text>For purposes of this paragraph, the

				purchase of an annuity shall be treated as the disposal of an asset for less

				than fair market value unless the State is named as the remainder beneficiary

				in the first position for at least the total amount of medical assistance paid

				on behalf of the annuitant under this title or is named as such a beneficiary

				in the second position after the community spouse and such spouse does not

				dispose of any such remainder for less than fair market

				value.</text>

									</subclause><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph><paragraph id="IDDE3917DB86E444E982AC634AB5104D07"><enum>(3)</enum><header>Inclusion of

			 certain annuities in an estate</header><text>Section 1917(b)(4) (42 U.S.C.

			 1396p(b)(4)) is amended—</text>

								<subparagraph id="IDBCB1A222490F4935836B9455024C86BD"><enum>(A)</enum><text>in subparagraph

			 (A), by striking <quote>and</quote> at the end;</text>

								</subparagraph><subparagraph id="IDABCA41A704234855825413073C915C49"><enum>(B)</enum><text>in subparagraph

			 (B), by striking the period at the end and inserting <quote>; and</quote>;

			 and</text>

								</subparagraph><subparagraph id="IDA4E6DEA90D1F4CC9851CCE44E782B6A0"><enum>(C)</enum><text>by adding at the

			 end the following:</text>

									<quoted-block id="IDF84EAD293D5A4607B4C44EA8F5E6ECB0" style="OLC">

										<subparagraph id="IDFFEA39B0D1E84E1D98036F33E7353EE2" indent="up1"><enum>(C)</enum><text>shall include an annuity unless the

				annuity was purchased from a financial institution or other business that sells

				annuities in the State as part of its regular

				business.</text>

										</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

								</subparagraph></paragraph></subsection><subsection id="ID541CCC8589734C0387DE61E61DC1BC28"><enum>(e)</enum><header>Inclusion of

			 Transfers To Purchase Life Estates</header><text>Section 1917(c)(1) (42 U.S.C.

			 1396p(c)(1)), as amended by subsection (d)(2), is amended by adding at the end

			 the following:</text>

							<quoted-block id="ID12E4DE2C30514073A5A2C3C518C428A5" style="OLC">

								<subparagraph id="IDB657F651B5B54D8483B3F53D21507C5A" indent="up2"><enum>(J)</enum><text>For purposes of this paragraph with

				respect to a transfer of assets, the term <term>assets</term> includes the

				purchase of a life estate interest in another individual’s home unless the

				purchaser resides in the home for a period of at least 1 year after the date of

				the purchase.</text>

								</subparagraph><after-quoted-block></after-quoted-block></quoted-block>

						</subsection><subsection id="ID52453965BC4A4AB09D353B0D43745BB5"><enum>(f)</enum><header>Protection

			 Against Undue Hardship</header><text>Section 1917(c) (42 U.S.C. 1396p(c)) is

			 amended by adding at the end the following:</text>

							<quoted-block id="ID67FED73F90BC45C0BCE140E923FE23E5" style="OLC">

								<paragraph id="ID1C7736CED7BA4D2393DA48C805B41623" indent="up1"><enum>(6)</enum><text>For purposes of paragraph (2)(D) and

				subsection (d)(5), the procedures established by the State in accordance with

				standards specified by the Secretary shall provide for—</text>

									<subparagraph id="ID410BE672B19D4242A48341246E133C54"><enum>(A)</enum><text>notice, before application of the

				provisions of paragraph (1) or subsection (d), to an individual who is an

				applicant for medical assistance under this title who would be subject to such

				a penalty under such provisions that an undue hardship exception exists;</text>

									</subparagraph><subparagraph id="ID0522B23A5D544D8E817C984351D64E22"><enum>(B)</enum><text>a timely process before the imposition

				of a penalty for determining whether an undue hardship waiver will be granted

				for the individual;</text>

									</subparagraph><subparagraph id="ID165E8B54128F45D7BCA499940EC2DA06"><enum>(C)</enum><text>a process under which an adverse

				determination can be appealed; and</text>

									</subparagraph><subparagraph id="ID3BE308DEC708433D91B225E34EA3897B"><enum>(D)</enum><text>application of criteria that specifies

				that an undue hardship exists when application of the provisions of paragraph

				(1) or subsection (d) would deprive the individual of medical care such that

				the individual’s health or life would be endangered or when the application of

				such provisions would deprive the individual of food, clothing, shelter, or

				other necessities of

				life.</text>

									</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</subsection><subsection id="IDFF2EA359E4694F3196B8CD3E91E3D902"><enum>(g)</enum><header>Effective

			 Dates</header>

							<paragraph id="ID6465AD1C2BDA423F93E9A3E372365658"><enum>(1)</enum><header>In

			 general</header><text>Except as provided in paragraphs (2) and (3), the

			 amendments made by this section shall apply to payments under title XIX of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C. 1396 et

			 seq.) for calendar quarters beginning on or after the date of enactment of this

			 Act, without regard to whether or not final regulations to carry out such

			 amendments have been promulgated by such date.</text>

							</paragraph><paragraph id="IDD33289E4A7094D13AE52EF8C72D20E2F"><enum>(2)</enum><header>Exceptions</header><text>The

			 amendments made by this section shall not apply—</text>

								<subparagraph id="ID3AF81D649E0245AF9F43F492138228CF"><enum>(A)</enum><text>to medical

			 assistance provided for services furnished before the date of enactment;</text>

								</subparagraph><subparagraph id="ID0594041EFE284038A71CA1E91357D6BC"><enum>(B)</enum><text>with respect to

			 assets disposed of on or before the date of enactment of this Act; or</text>

								</subparagraph><subparagraph id="ID2D263EA7C6BA403FB8CD7E23768D3489"><enum>(C)</enum><text>with respect to

			 trusts established on or before the date of enactment of this Act.</text>

								</subparagraph></paragraph><paragraph id="ID97BDF4D492E04E32A0B5B32B963554B5"><enum>(3)</enum><header>Extension of

			 effective date for state law amendment</header><text>In the case of a State

			 plan under title XIX of the <act-name parsable-cite="SSA">Social Security

			 Act</act-name> (42 U.S.C. 1396 et seq.) which the Secretary of Health and Human

			 Services determines requires State legislation in order for the plan to meet

			 the additional requirements imposed by the amendments made by a provision of

			 this section, the State plan shall not be regarded as failing to comply with

			 the requirements of such title solely on the basis of its failure to meet these

			 additional requirements before the first day of the first calendar quarter

			 beginning after the close of the first regular session of the State legislature

			 that begins after the date of the enactment of this Act. For purposes of the

			 previous sentence, in the case of a State that has a 2-year legislative

			 session, each year of the session is considered to be a separate regular

			 session of the State legislature.</text>

							</paragraph></subsection></section><section id="IDD10945A262794FFE97B49BA4A62B30FF"><enum>6012.</enum><header>State

			 Long-Term care partnerships</header>

						<subsection id="ID3A5E0F6B03C749898B0E75F5BB4B4F81"><enum>(a)</enum><header>Expansion of

			 State Long-Term Care Partnerships</header>

							<paragraph id="ID86097C3A1E0945C7A863053263846AF6"><enum>(1)</enum><header>In

			 general</header><text>Section 1917(b)(1)(C)(ii) (42 U.S.C. 1396p(b)(1)(C)(ii))

			 is amended to read as follows:</text>

								<quoted-block id="IDCD40AF65A772468B9C10F698576D3C5F" style="OLC">

									<clause id="ID42E7EDFD7AC748E29C4C0335FA9E150A" indent="up2"><enum>(ii)</enum><text>Clause (i) shall not apply in the

				case of an individual who received medical assistance under—</text>

										<subclause id="ID397D678177234B1682AA0665EF9D57DD"><enum>(I)</enum><text>a Qualified State Long-Term Care

				Insurance Partnership (as defined in paragraph (5)); or</text>

										</subclause><subclause id="ID490C3438C3074AF4BDDFABE6074A8684"><enum>(II)</enum><text>under a State plan of a State

				which—</text>

											<item id="IDFF2A4ADC6B934A3BA5961789C392D5EB"><enum>(aa)</enum><text>had a State plan amendment approved as

				of May 14, 1993, which provided for the disregard of any assets or resources to

				the extent that payments are made under a long-term care insurance policy or

				because an individual has received (or is entitled to receive) benefits under a

				long-term care insurance policy; and</text>

											</item><item id="IDCA2F202AD14045F08144EB7029A8D37A"><enum>(bb)</enum><text>has a State plan amendment which

				satisfies the requirements of subparagraphs (B) through (G) of paragraph (5) in

				the case of any long-term care insurance policy sold under such plan amendment

				on or after the date that is 2 years after the date of enactment of such

				paragraph.</text>

											</item></subclause></clause><paragraph id="ID43E4AF1FD6D94A6A9A985F3AB1ACD9F2"><enum></enum><text>For purposes

				of this clause and paragraphs (5) and (6), the term <term>long-term care

				insurance policy</term> includes a certificate issued under a group insurance

				contract.</text>

									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph><paragraph id="ID49EF34D7B1654B3482B1D3E8B1C94D8F"><enum>(2)</enum><header>Satisfaction of

			 minimum federal standards, tax qualifications, inflation protection, and other

			 requirements for long-term care insurance partnerships</header><text>Section

			 1917(b) (42 U.S.C. 1396p(b)) is amended by inserting at the end the

			 following:</text>

								<quoted-block id="ID8EAC6F2634904C29BE803852C9B238B1" style="OLC">

									<paragraph id="IDD47260BFAD4D47A297D63EE4739D006B"><enum>(5)</enum><text>The term

				<term>Qualified State Long-Term Care Insurance Partnership</term> means a

				program offered in a State with an approved State plan amendment that provides

				for the following:</text>

										<subparagraph id="ID181AEF1827274CC5A47757BAB3108188"><enum>(A)</enum><text>Subject to the

				limit specified in subparagraph (D), the disregard of any assets or resources

				in an amount equal to the amount of payments made to, or on behalf of, an

				individual who is a beneficiary under any long-term care insurance policy sold

				under such plan amendment.</text>

										</subparagraph><subparagraph id="ID5FBE31CE19A0427083E515E2DFFDDF96"><enum>(B)</enum><text>A requirement

				that the State will treat benefits paid under any long-term care insurance

				policy sold under a plan amendment of another State that maintains a Qualified

				Long-Term Care Insurance Partnership or is described in subsection

				(b)(1)(C)(ii)(II) the same as the State treats benefits paid under such a

				policy sold under the State’s plan amendment.</text>

										</subparagraph><subparagraph id="IDE909658F8EC54CC28389527565182C55"><enum>(C)</enum><text>A requirement

				that any long-term care insurance policy sold under such plan amendment—</text>

											<clause id="ID97A92B7041A04A5FB54481D10E4DCA28"><enum>(i)</enum><text>be a qualified

				long-term care insurance contract within the meaning of section 7702B(b) of the

				Internal Revenue Code of 1986; and</text>

											</clause><clause id="ID64CFD59235CD42C38C4166FBE20282EC"><enum>(ii)</enum><text>meet the

				requirements described in paragraph (6).</text>

											</clause></subparagraph><subparagraph id="ID1523F9AA607A4F5A874DA19B7C6CAA45"><enum>(D)</enum><text>A requirement

				that any such policy sold under the State plan amendment shall provide

				for—</text>

											<clause id="ID669731C7013247CAAE44936DB29B3124"><enum>(i)</enum><text>compound annual

				inflation protection of at least 5 percent; and</text>

											</clause><clause id="IDF236F113C19F427D9A5E3DBC69875EE0"><enum>(ii)</enum><text>asset protection

				that does not exceed $250,000.</text>

											</clause><continuation-text continuation-text-level="subparagraph">The

				dollar amount specified in the preceding sentence shall be increased, beginning

				with 2007, from year to year based on the percentage increase in the medical

				care expenditure category of the Consumer Price Index for All Urban Consumers

				(United States city average), published by the Bureau of Labor Statistics,

				rounded to the nearest $100.</continuation-text></subparagraph><subparagraph id="ID3E7F5D075249446EA34298D15F92E6C3"><enum>(E)</enum><text>A requirement

				that an insurer may rescind a long-term care insurance policy sold under such

				State plan amendment that has been in effect for at least 2 years or deny an

				otherwise valid long-term care insurance claim under such a policy only upon a

				showing of misrepresentation that is material to the acceptance of coverage,

				pertains to the claim made, and could not have been known by the insurer at the

				time the policy was sold.</text>

										</subparagraph><subparagraph id="IDD6CB7F2FB3F54024AB0E52FE714FFCB6"><enum>(F)</enum><text>A requirement

				that any individual who sells such a policy receive training, and demonstrate

				evidence of an understanding of, the policy and how the policy relates to other

				public and private coverage of long-term care.</text>

										</subparagraph><subparagraph id="ID3787D22584C443AEB55AB2AFBDBEC4D1"><enum>(G)</enum><text>A requirement

				that the issuer of any such policy report—</text>

											<clause id="IDC430B62B7A084BBBBAEC5C848E477C2C"><enum>(i)</enum><text>to the Secretary,

				such information or data as the Secretary may require; and</text>

											</clause><clause id="ID8FE4BD4516E9421BBBD15C0DF465B0C8"><enum>(ii)</enum><text>to the State,

				the information or data reported to the Secretary (if any), the information or

				data required under the minimum reporting requirements developed under section

				6012(b)(2)(B) of the Deficit Reduction Omnibus Reconciliation Act of 2005, and

				such additional information or data as the State may require.</text>

											</clause></subparagraph><continuation-text continuation-text-level="paragraph">For

				purposes of applying this paragraph, if a long-term care insurance policy is

				exchanged for another such policy, the date coverage became effective under the

				first policy shall determine when coverage first becomes effective.</continuation-text></paragraph><paragraph id="ID421219E650D34AA89EAD75B57B4129B4"><enum>(6)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID7C1AFBD3600E46D2BE38E8AC1751A5D0"><enum>(A)</enum><text>For purposes of

				subparagraph (C)(ii) of paragraph (5), the requirements of this paragraph are

				met if a long-term care insurance policy sold under a plan amendment described

				in that paragraph meets—</text>

											<clause id="IDAFF6EE4406E2483AA1331FBBBCA89C39" indent="up1"><enum>(i)</enum><header>Model

				regulation</header><text>The following requirements of the model

				regulation:</text>

												<subclause id="IDC9495B4082A34885A762EBAE7722EB99"><enum>(I)</enum><text>Section 6A (relating to guaranteed

				renewal or noncancellability), other than paragraph (5) thereof, and the

				requirements of section 6B of the model Act relating to such section 6A.</text>

												</subclause><subclause id="ID21664EB454A54FE99FD6445FAE4F2F0E"><enum>(II)</enum><text>Section 6B (relating to prohibitions on

				limitations and exclusions) other than paragraph (7) thereof.</text>

												</subclause><subclause id="ID96330F476E2B4B8183CC21C19CD79553"><enum>(III)</enum><text>Section 6C (relating to extension of

				benefits).</text>

												</subclause><subclause id="ID8D7F90C64D044B2E942C6C35C665996A"><enum>(IV)</enum><text>Section 6D (relating to continuation or

				conversion of coverage).</text>

												</subclause><subclause id="IDFD19308D7C654AE8AFB22DEEF0D9D736"><enum>(V)</enum><text>Section 6E (relating to discontinuance

				and replacement of policies).</text>

												</subclause><subclause id="ID4B152159AAC44AA59599980A22DAD339"><enum>(VI)</enum><text>Section 7 (relating to unintentional

				lapse).</text>

												</subclause><subclause id="IDCA320D2D80A34881ADAA7CD4EE211204"><enum>(VII)</enum><text>Section 8 (relating to disclosure),

				other than sections 8F, 8G, 8H, and 8I thereof.</text>

												</subclause><subclause id="ID77360BDD3F5C466E985C6457AE409F38"><enum>(VIII)</enum><text>Section 9 (relating to required

				disclosure of rating practices to consumer).</text>

												</subclause><subclause id="ID5F477AB6B3854DD98CFDD93B11D64F90"><enum>(IX)</enum><text>Section 11 (relating to prohibitions

				against post-claims underwriting).</text>

												</subclause><subclause id="IDCF38345C5E564525AC8A2B57CBCBDA4E"><enum>(X)</enum><text>Section 12 (relating to minimum

				standards).</text>

												</subclause><subclause id="ID6CB3D2F1F6D54C5E80D3BC888C942A96"><enum>(XI)</enum><text>Section 14 (relating to application

				forms and replacement coverage).</text>

												</subclause><subclause id="IDF41989EA759D4E4EB988E188752750EB"><enum>(XII)</enum><text>Section 15 (relating to reporting

				requirements).</text>

												</subclause><subclause id="IDCB026EB2950F4ADDB4D7489BABCAEB93"><enum>(XIII)</enum><text>Section 22 (relating to filing

				requirements for marketing).</text>

												</subclause><subclause id="IDA7CD79261CF74F2C8B33D2F89FD10271"><enum>(XIV)</enum><text>Section 23 (relating to standards for

				marketing), including inaccurate completion of medical histories, other than

				paragraphs (1), (6), and (9) of section 23C.</text>

												</subclause><subclause id="ID47DC0E542D7942D19FA6871EC9787C8A"><enum>(XV)</enum><text>Section 25 (relating to prohibition

				against preexisting conditions and probationary periods in replacement policies

				or certificates).</text>

												</subclause><subclause id="ID23BDE29D844547019269A21AF6A75249"><enum>(XVI)</enum><text>The provisions of section 26 relating

				to contingent nonforfeiture benefits, if the policyholder declines the offer of

				a nonforfeiture provision described in paragraph (4).</text>

												</subclause><subclause id="ID46FB0290436C4C7C829CA7B1AB8F6226"><enum>(XVII)</enum><text>Section 29 (relating to standard

				format outline of coverage).</text>

												</subclause><subclause id="ID1F3C2C538DBF4B8E88D1E71C70F08F14"><enum>(XVIII)</enum><text>Section 30 (relating to requirement

				to deliver shopper’s guide).</text>

												</subclause></clause><clause id="ID0B43BCA1CE7A4E12B74A947776FB0A1B" indent="up1"><enum>(ii)</enum><header>Model act</header><text>The

				following requirements of the model Act:</text>

												<subclause id="ID41902C93CDC34A44A21BEED7D219A8AA"><enum>(I)</enum><text>Section 6C (relating to preexisting

				conditions).</text>

												</subclause><subclause id="ID63847496A38C4994B8E0CE613D098D33"><enum>(II)</enum><text>Section 6D (relating to prior

				hospitalization).</text>

												</subclause><subclause id="IDD6A52C6188D641D79BD245889A047C68"><enum>(III)</enum><text>The provisions of section 8 relating to

				contingent nonforfeiture benefits.</text>

												</subclause><subclause id="IDA311F862EB23427E895748629E05C6D9"><enum>(IV)</enum><text>Section 6F (relating to right to

				return).</text>

												</subclause><subclause id="ID2FF3E6F109244FA0AC3BA5BB270FE05E"><enum>(V)</enum><text>Section 6G (relating to outline of

				coverage).</text>

												</subclause><subclause id="IDB8BE5B2D7AC74186BC56BF0CA73942D2"><enum>(VI)</enum><text>Section 6H (relating to requirements for

				certificates under group plans).</text>

												</subclause><subclause id="ID11A13A67E93D4D2B8DD4F02D4B517127"><enum>(VII)</enum><text>Section 6J (relating to policy

				summary).</text>

												</subclause><subclause id="ID2A96709A6C2A4BF9B1B700094A0B6C55"><enum>(VIII)</enum><text>Section 6K (relating to monthly

				reports on accelerated death benefits).</text>

												</subclause></clause></subparagraph><subparagraph id="IDE3C25ECD8DD7468094AD9B34058BC9C4" indent="up1"><enum>(B)</enum><header>Definitions</header><text>For

				purposes of this paragraph—</text>

											<clause id="ID8BCF2FD38248447491C7D0292DE58B14"><enum>(i)</enum><header>Model

				provisions</header><text>The terms <term>model regulation</term> and

				<term>model Act</term> mean the long-term care insurance model regulation, and

				the long-term care insurance model Act, respectively, promulgated by the

				National Association of Insurance Commissioners (as adopted as of October

				2000).</text>

											</clause><clause id="ID8E973B3B8E1A4F73B45B1B512E1494EC"><enum>(ii)</enum><header>Coordination</header><text>Any

				provision of the model regulation or model Act listed under clause (i) or (ii)

				of subparagraph (A) shall be treated as including any other provision of such

				regulation or Act necessary to implement the provision.</text>

											</clause><clause id="IDB033A3BF945D487BBEF06535FCD0BBA3"><enum>(iii)</enum><header>Determination</header><text>For

				purposes of this paragraph, the determination of whether any requirement of a

				model regulation or the model Act has been met shall be made by the

				Secretary.</text>

											</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph><paragraph id="IDBCFAB17BB2914A24912AEB3DCD9EFEF8"><enum>(3)</enum><header>Effective

			 date</header><text>The amendments made by this subsection take effect on

			 October 1, 2007, and apply to long-term care insurance policies sold on or

			 after that date.</text>

							</paragraph></subsection><subsection id="ID89D65D364A5C4F56B79D0DF3DB638F2E"><enum>(b)</enum><header>Development of

			 Uniform Standards and Recommendations</header>

							<paragraph id="ID6AF4C2746F5C4B22BD1AB3D937CF6806"><enum>(1)</enum><header>In

			 general</header><text>Not later than 1 year after the date of enactment of this

			 Act, the Secretary, in consultation with the National Association of Insurance

			 Commissioners, issuers of long-term care insurance policies, States with

			 experience with long-term care insurance partnership plans, other States, and

			 representatives of consumers of long-term care insurance policies shall develop

			 the uniform standards described in paragraph (2) and submit recommendations to

			 Congress with respect to the issues identified in paragraph (3).</text>

							</paragraph><paragraph id="ID7B99103A965743B38AA312CD9339839E"><enum>(2)</enum><header>Uniform

			 standards</header><text>The uniform standards described in this paragraph are

			 the following:</text>

								<subparagraph id="ID8104A667973646EAB203FF3E70A4DFDB"><enum>(A)</enum><header>Reciprocity</header><text>Standards

			 for ensuring that long-term care insurance policies issued under a State

			 long-term care insurance partnership under section 1917(b)(1)(C)(ii) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1396p(b)(1)(C)(ii)) (as amended by subsection (a)) are portable to other States

			 with such a partnership.</text>

								</subparagraph><subparagraph id="ID373759C8A9864F298CB59FD21D0FC2BA"><enum>(B)</enum><header>Minimum

			 reporting requirements</header><text>Standards for minimum reporting

			 requirements for issuers of long-term care insurance policies under such State

			 long-term care insurance partnerships that shall specify the data and

			 information that each such issuer shall report to the State with which it has

			 such a partnership. The requirements developed in accordance with this

			 subparagraph shall specify the type and format of the data and information to

			 be reported and the frequency with which such reports are to be made.</text>

								</subparagraph><subparagraph id="ID30C6E983BB6D4C4FBDC60D870F523913"><enum>(C)</enum><header>Suitability</header><text>Suitability

			 standards for determining whether a long-term care insurance policy is

			 appropriate for the needs of an applicant, based on guidance of the National

			 Association of Insurance Commissioners regarding suitability.</text>

								</subparagraph></paragraph><paragraph id="ID09C86FCD539948FFBF139EBAA8F0BD1F"><enum>(3)</enum><header>Recommendations</header><text>The

			 recommendations described in this paragraph are the following:</text>

								<subparagraph id="ID23A0AD9ABC3B46A0910C6F4BB8C6B01F"><enum>(A)</enum><header>Incontestability</header><text>Recommendations

			 regarding whether the requirements relating to incontestability for long-term

			 care insurance policies sold under a State long-term care insurance partnership

			 program under section 1917(b)(1)(C)(ii) of the <act-name parsable-cite="SSA">Social Security Act</act-name> should be modified based on

			 guidance of the National Association of Insurance Commissioners regarding

			 incontestability.</text>

								</subparagraph><subparagraph id="ID7DD5A01BF8C449489F306B43ECB43D59"><enum>(B)</enum><header>Nonforfeiture</header><text>Recommendations

			 regarding whether requirements relating to nonforfeiture for issuers of

			 long-term care insurance policies under a State long-term care insurance

			 partnership program under section 1917(b)(1)(C)(ii) of such Act should be

			 modified to reflect changes in an insured’s financial circumstances.</text>

								</subparagraph><subparagraph id="ID8FDBF050D71F4C64B1468CBC74784A5C"><enum>(C)</enum><header>Independent

			 certification for benefits assessment</header><text>Recommendations regarding

			 whether uniform standards for requiring benefits assessment evaluations to be

			 conducted by independent entities should be established for issuers of

			 long-term care insurance policies under such a State partnership program and,

			 if so, what such standards should be.</text>

								</subparagraph><subparagraph id="ID97215790FEAD44F88BC0D9F9A1177805"><enum>(D)</enum><header>Rating

			 requirements</header><text>Recommendations regarding whether uniform standards

			 for the establishment of, and annual increases in, premiums for long-term care

			 insurance policies sold under such a State partnership program should be

			 established and, if so, what such standards should be.</text>

								</subparagraph><subparagraph id="IDC5DB6443065E4DD0B805B0620BAFB636"><enum>(E)</enum><header>Dispute

			 resolution</header><text>Recommendations regarding whether uniform standards

			 are needed to ensure fair adjudication of coverage disputes under long-term

			 care insurance policies sold under such a State partnership program and the

			 delivery of the benefits promised under such policies.</text>

								</subparagraph></paragraph><paragraph id="IDD4B1DAD4773E4DC8A55CEA6A9513889B"><enum>(4)</enum><header>State reporting

			 requirements</header><text>Nothing in paragraph (2)(B) shall be construed as

			 prohibiting a State from requiring an issuer of a long-term care insurance

			 policy sold in the State (regardless of whether the policy is issued under a

			 State long-term care insurance partnership under section 1917(b)(1)(C)(ii) of

			 the <act-name parsable-cite="SSA">Social Security Act</act-name>) to require

			 the issuer to report information or data to the State that is in addition to

			 the information or data required under the minimum reporting requirements

			 developed under that paragraph.</text>

							</paragraph></subsection><subsection id="ID3BF4612EEAA0416E84327DE3B6949932"><enum>(c)</enum><header>Annual Reports

			 to Congress</header><text>The Secretary of Health and Human Services shall

			 annually report to Congress on the long-term care insurance partnerships

			 established in accordance with section 1917(b)(1)(C)(ii) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1396p(b)(1)(C)(ii)) (as amended by subsection (a)(1)). Such reports shall

			 include analyses of the extent to which such partnerships expand or limit

			 access of individuals to long-term care and the impact of such partnerships on

			 Federal and State expenditures under the Medicare and Medicaid programs.</text>

						</subsection></section></chapter><chapter id="ID069EEB9CDD8D41FA8961C0E4303C4513"><enum>3</enum><header>ELIMINATING

			 FRAUD, WASTE, AND ABUSE IN MEDICAID</header>

					<section id="ID4EFF8ABD07204365A9CB60B575A72487"><enum>6021.</enum><header>Enhancing

			 third party recovery</header>

						<subsection id="ID150106FB4E1D4299B08F0DEBB2844F5D"><enum>(a)</enum><header>Clarification

			 of Right of Recovery Against Any Third Party Legally Responsible for Payment of

			 a Claim for a Health Care Item or Service</header><text>Section 1902(a)(25) (42

			 U.S.C. 1396a(a)(25)) is amended—</text>

							<paragraph id="ID9A26EB4BF7814F7FB088D268CCA0D9E1"><enum>(1)</enum><text>in subparagraph

			 (A), in the matter preceding clause (i)—</text>

								<subparagraph id="ID8E3284CB587F40B19167C6D3A3B2D9F0"><enum>(A)</enum><text>by inserting

			 <quote>, including self-insured plans</quote> after <quote>health

			 insurers</quote>; and</text>

								</subparagraph><subparagraph id="IDB3919DDB166F461A93245B292D14AAAF"><enum>(B)</enum><text>by striking

			 <quote>and health maintenance organizations</quote> and inserting <quote>health

			 maintenance organizations, pharmacy benefit managers, or other parties that

			 are, by statute, contract, or agreement, legally responsible for payment of a

			 claim for a health care item or service</quote>; and</text>

								</subparagraph></paragraph><paragraph id="ID418FE925AD054B7F9ABE43849D6626EA"><enum>(2)</enum><text>in subparagraph

			 (G)—</text>

								<subparagraph id="ID87B83FF8A2C34B8FBB0D8DFF1D82D6A4"><enum>(A)</enum><text>by inserting

			 <quote>a self-insured plan,</quote> after <quote>1974,</quote>; and</text>

								</subparagraph><subparagraph id="IDFD8D36F8AD854F83980887B7088958C9"><enum>(B)</enum><text>by striking

			 <quote>and a health maintenance organization</quote> and inserting <quote>a

			 health maintenance organization, a pharmacy benefit manager, or other party

			 that is, by statute, contract, or agreement, legally responsible for payment of

			 a claim for a health care item or service</quote>.</text>

								</subparagraph></paragraph></subsection><subsection id="ID9A301E1404044E6FBAA8ABC2F1A0CC83"><enum>(b)</enum><header>Requirement for

			 Third Parties To Provide the State With Coverage Eligibility and Claims

			 Data</header><text>Section 1902(a)(25) (42 U.S.C. 1396a(a)(25)) is

			 amended—</text>

							<paragraph id="IDDDFD73E207FF4EF0B2BE12FC98A9581A"><enum>(1)</enum><text>in subparagraph

			 (G), by striking <quote>and</quote> at the end;</text>

							</paragraph><paragraph id="IDF6F0E3367FA54E1B86F645ECBC48DF26"><enum>(2)</enum><text>in subparagraph

			 (H), by adding <quote>and</quote> after the semicolon at the end; and</text>

							</paragraph><paragraph id="IDC4E67BD0A6154965B2DE7FE3A63B5AEB"><enum>(3)</enum><text>by inserting

			 after subparagraph (H), the following:</text>

								<quoted-block id="ID239DAFF1325C42FA8EDA28F6E221C9F2" style="OLC">

									<subparagraph id="ID1E0DA23F01744CD490F44A922D760214"><enum>(I)</enum><text>that the State

				shall provide assurances satisfactory to the Secretary that the State has in

				effect laws requiring health insurers, including self-insured plans, group

				health plans (as defined in section 607(1) of the

				<act-name parsable-cite="ERISA">Employee Retirement Income Security Act of

				1974</act-name>), service benefit plans, health maintenance organizations,

				pharmacy benefit managers, or other parties that are, by statute, contract, or

				agreement, legally responsible for payment of a claim for a health care item or

				service, as a condition of doing business in the State, to—</text>

										<clause id="ID3D1B7B470BEC4587A410DC6617269EC2"><enum>(i)</enum><text>provide

				eligibility and claims payment data with respect to an individual who is

				eligible for, or is provided, medical assistance under the State plan, upon the

				request of the State;</text>

										</clause><clause id="IDA44E241AA37B4A7DB93E8439725E2B9B"><enum>(ii)</enum><text>accept the

				subrogation of the State to any right of an individual or other entity to

				payment from the party for an item or service for which payment has been made

				under the State plan;</text>

										</clause><clause id="ID030D95FAD7A24246A263A7259A87444F"><enum>(iii)</enum><text>respond to any

				inquiry by the State regarding a claim for payment for any health care item or

				service submitted not later than 3 years after the date of the provision of

				such health care item or service; and</text>

										</clause><clause id="IDA4866B5DBFC84F49B772C9661F871262"><enum>(iv)</enum><text>agree not to

				deny a claim submitted by the State solely on the basis of the date of

				submission of the

				claim;</text>

										</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></subsection><subsection id="ID8643754254654B8B8D473AEF1B57E815"><enum>(c)</enum><header>Effective

			 date</header><text>Except as provided in section 6026(e), the amendments made

			 by this section take effect on January 1, 2006.</text>

						</subsection></section><section id="ID14F21B0F110348EEA0073B130D420B6C"><enum>6022.</enum><header>Limitation on

			 use of contingency fee arrangements</header>

						<subsection id="ID619D49BA443348D99EC75F009AFEA19B"><enum>(a)</enum><header>In

			 General</header><text>Section 1903(i) (42 U.S.C. 1396b(i)), as amended by

			 section 104(b) of the QI, TMA, and Abstinence Programs Extension and Hurricane

			 Katrina Unemployment Relief Act of 2005 (Public Law 109–91), is amended—</text>

							<paragraph id="ID6EA2BED1F231401380EAD65F178B1D0C"><enum>(1)</enum><text>in paragraph

			 (19), by adding <quote>or</quote> at the end;</text>

							</paragraph><paragraph id="IDCD846376D4CC4DFEBB4DA8BB0CFAF27E"><enum>(2)</enum><text>by striking the

			 period at the end of paragraph (21) and inserting <quote>; or</quote>;

			 and</text>

							</paragraph><paragraph id="ID3E13D972F5E044638301FFC3AAF1A1A3"><enum>(3)</enum><text>by inserting

			 after paragraph (21), the following:</text>

								<quoted-block id="ID8BA050C5F868417F94ADABC68E04BAD1" style="OLC">

									<paragraph id="IDBA6C19761251486882EED29EA2106FB0"><enum>(22)</enum><text>with respect to

				any amount expended in connection with a contract or agreement (other than a

				risk contract under section 1903(m)) between the State agency under section

				1902(a)(5) (or any State or local agency designated by such agency to

				administer any portion of the State plan under this title) and a consultant or

				other contractor if the terms of compensation for the consultant or other

				contractor do not meet the standards established by the Inspector General of

				the Department of Health and Human Services under section 6022(b) of the

				Deficit Reduction Omnibus Reconciliation Act of

				2005.</text>

									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></subsection><subsection id="ID58409499C83F4DBFA414AF4D317C39CC"><enum>(b)</enum><header>Contingency Fee

			 Arrangement Standards</header><text>Not later than 6 months after the date of

			 enactment of this Act, the Inspector General of the Department of Health and

			 Human Services shall issue standards for the terms of compensation of

			 consultants and other individuals or entities contracting with State agencies

			 (or their designees) administering State Medicaid plans under title XIX of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> that ensure

			 prudent purchasing and program integrity with respect to Federal funds. The

			 Inspector General shall annually review and, as necessary, revise such

			 standards to promptly address new compensation arrangements that may present a

			 risk to program integrity under such title.</text>

						</subsection><subsection id="IDCFF2BCEAE9274CF3A95DD3E9D70F4189"><enum>(c)</enum><header>Effective

			 Date</header><text>Except as provided in section 6026(e), the amendments made

			 by subsection (a) take effect on January 1, 2007.</text>

						</subsection></section><section id="IDAA1D8609EAFE466B8E879A4A1FCF410A"><enum>6023.</enum><header>Encouraging

			 the enactment of State False Claims Acts</header>

						<subsection id="ID16F730CBACF0492AB546E5DBFC3B2FD6"><enum>(a)</enum><header>In

			 General</header><text>Title XIX (42 U.S.C. 1396 et seq.) is amended by

			 inserting after section 1908A the following:</text>

							<quoted-block id="ID7684188768A846E6BF7762EFBE549620" style="traditional"><section id="ID8B892CA47E194AE3811A381CB2448944"><enum>1909.</enum><header>State False Claims Act requirements for

		  increased State share of recoveries</header><subsection commented="no" display-inline="yes-display-inline" id="IDE77263DB89E148DB94AEAC51A3475232"><enum>(a)</enum><header>In

				General</header><text>Notwithstanding section 1905(b), if a State has in effect

				a law relating to false or fraudulent claims that meets the requirements of

				subsection (b), the Federal medical assistance percentage with respect to any

				amounts recovered under a State action brought under such law, shall be

				decreased by 10 percentage points.</text>

									</subsection><subsection id="IDBD10CF503DCF48CAB8F303DDE0E17374"><enum>(b)</enum><header>Requirements</header><text>For

				purposes of subsection (a), the requirements of this subsection are that the

				Inspector General of the Department of Health and Human Services, in

				consultation with the Attorney General, determines that the State has in effect

				a law that meets the following requirements:</text>

										<paragraph id="ID83263E63A75C495AA70B15DA7386FABF"><enum>(1)</enum><text>The law

				establishes liability to the State for false or fraudulent claims described in

				section 3729 of title 31, United States Code, with respect to any expenditure

				described in section 1903(a).</text>

										</paragraph><paragraph id="ID939E8F98C9C547E297AD450F2C39445F"><enum>(2)</enum><text>The law contains

				provisions that are at least as effective in rewarding and facilitating qui tam

				actions for false or fraudulent claims as those described in sections 3730

				through 3732 of title 31, United States Code.</text>

										</paragraph><paragraph id="ID59D89B3E1B9E49338CF5D0D2B6AD051E"><enum>(3)</enum><text>The law contains

				a requirement for filing an action under seal for 60 days with review by the

				State Attorney General.</text>

										</paragraph><paragraph id="IDD0D40CF0ED5D4ECCBB2E35692240BCDB"><enum>(4)</enum><text>The law contains

				a civil penalty that is not less than the amount of the civil penalty

				authorized under section 3729 of title 31, United States Code.</text>

										</paragraph><paragraph id="ID80F1D19B0ED94AD3B4B616D7BB9A7F2A"><enum>(5)</enum><text>The law contains

				provisions that are designed to prevent a windfall recovery for a qui tam

				relator in the event that the relator files a Federal and State action for the

				same false or fraudulent claim.</text>

										</paragraph></subsection><subsection id="ID523CFBDC5D0B4693AE0FE0772F154ACD"><enum>(c)</enum><header>Deemed

				Compliance</header><text>A State that, as of January 1, 2007, has a law in

				effect that meets the requirements of subsection (b) shall be deemed to be in

				compliance with such requirements for so long as the law continues to meet such

				requirements.</text>

									</subsection><subsection id="IDF2396A50EA044E5C8F181A2978398019"><enum>(d)</enum><header>No Preclusion

				of Broader Laws</header><text>Nothing in this section shall be construed as

				prohibiting a State that has in effect a law that establishes liability to the

				State for false or fraudulent claims described in section 3729 of title 31,

				United States Code, with respect to programs in addition to the State program

				under this title, or with respect to expenditures in addition to expenditures

				described in section 1903(a), from being considered to be in compliance with

				the requirements of subsection (a) so long as the law meets such

				requirements.</text>

									</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

						</subsection><subsection id="ID59860ED6578646CBB49E0528028D7CA9"><enum>(b)</enum><header>Effective

			 Date</header><text>Except as provided in section 6026(e), the amendments made

			 by this section take effect on January 1, 2007.</text>

						</subsection></section><section id="ID6202C80E1A604DAFBC5FCAA7105F4503"><enum>6024.</enum><header>Employee

			 education about False Claims Recovery</header>

						<subsection id="IDE0C28A834CCE4B6A92F121513B98030F"><enum>(a)</enum><header>In

			 General</header><text>Section 1902(a) (42 U.S.C. 1396a(a)) is amended—</text>

							<paragraph id="ID4EBEB0491A8C40499733B6F735287E79"><enum>(1)</enum><text>in paragraph

			 (66), by striking <quote>and</quote> at the end;</text>

							</paragraph><paragraph id="ID1A1E25D354F1470E95E3664E918C5431"><enum>(2)</enum><text>in paragraph (67)

			 by striking the period at the end and inserting <quote>; and</quote>;

			 and</text>

							</paragraph><paragraph id="IDC0E07A5D51DE4CE8B4C4D13C7E10AE22"><enum>(3)</enum><text>by inserting

			 after paragraph (67) the following:</text>

								<quoted-block id="ID79A40976440B4E318B097C44C80E71CC" style="OLC">

									<paragraph id="ID4FF886E6E21F4C449B34E37F38042E8F"><enum>(68)</enum><text>provide that any

				entity that receives or makes annual payments under the State plan of at least

				$1,000,000, as a condition of receiving such payments, shall—</text>

										<subparagraph id="ID4BAE258516664221957B4FD2C7CC4175"><enum>(A)</enum><text>establish written

				policies, procedures, and protocols for training of all employees of the entity

				(including management), and of any contractor or agent of the entity, that

				includes a detailed discussion of the False Claims Act established under

				sections 3729 through 3733 of title 31, United States Code, administrative

				remedies for false claims and statements established under chapter 38 of title

				31, United States Code, any State laws pertaining to civil or criminal

				penalties for false claims and statements, and whistleblower protections under

				such laws, with respect to the role of such laws in preventing and detecting

				fraud, waste, and abuse in Federal health care programs (as defined in section

				1128B(f));</text>

										</subparagraph><subparagraph id="ID10C4528AE35E4EBC9F9BD504A3593B13"><enum>(B)</enum><text>include as part

				of such written policies, procedures, and protocols, detailed provisions and

				training regarding the entity’s policies and procedures for detecting and

				preventing fraud, waste, and abuse;</text>

										</subparagraph><subparagraph id="ID80060C2C0EA24AE49A93861146C291A6"><enum>(C)</enum><text>include in any

				employee handbook for the entity, a specific discussion of the laws described

				in subparagraph (A), the rights of employees to be protected as whistleblowers,

				and the entity’s policies and procedures for detecting and preventing fraud,

				waste, and abuse; and</text>

										</subparagraph><subparagraph id="ID7D2D2EAFE63D49ABB67DDEA4864DB806"><enum>(D)</enum><text>require mandatory

				training for all employees of the entity and of any contractor or agent of the

				entity, at the time of hiring, with respect to the laws described in

				subparagraph (A) (including the whistleblower protections under such laws) and

				the entity’s policies and procedures for detecting fraud, waste, and

				abuse.</text>

										</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></subsection><subsection id="ID0A5103DE6E0844D4A0F01B72B67E2729"><enum>(b)</enum><header>Effective

			 Date</header><text>Except as provided in section 6026(e), the amendments made

			 by subsection (a) take effect on January 1, 2007.</text>

						</subsection></section><section id="ID07BB857477194090B885FD3CF24104AF"><enum>6025.</enum><header>Prohibition

			 on restocking and double billing of prescription drugs</header>

						<subsection id="IDEF3450181EA14C8A8AA0D8614802FC32"><enum>(a)</enum><header>In

			 General</header><text>Section 1903(i)(10) (42 U.S.C. 1396b(i)), as amended by

			 section 6004(b), is amended—</text>

							<paragraph id="ID01C1FED8A4944DB0A9A7B8D42B471DBC"><enum>(1)</enum><text>in subparagraph

			 (C), by striking <quote>and</quote> at the end;</text>

							</paragraph><paragraph id="ID72CC426A79764CECBFBFA616362144BC"><enum>(2)</enum><text>in subparagraph

			 (D), by striking <quote>; or</quote> at the end and inserting <quote>,

			 and</quote>; and</text>

							</paragraph><paragraph id="ID0D8C84F6939C472E91E8FB1FADD99E6E"><enum>(3)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="IDF0EE84947346467C80130AC1B2DE673D" style="OLC">

									<subparagraph id="ID24F32FCDBA3246D0AD906BE220798327" indent="up1"><enum>(E)</enum><text>with respect to any amount expended

				for reimbursement to a pharmacy under this title for the ingredient cost of a

				covered outpatient drug for which the pharmacy has already received payment

				under this title (other than with respect to a reasonable restocking fee for

				such drug);

				or</text>

									</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></subsection><subsection id="IDB3C879CCFDF643989557F518636F8B01"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendments made by subsection (a) take effect on the

			 first day of the first fiscal year quarter that begins after the date of

			 enactment of this Act.</text>

						</subsection></section><section id="IDDF7217C02E244F378A853B293706FA87"><enum>6026.</enum><header>Medicaid

			 Integrity Program</header>

						<subsection id="ID2750FA79612D4F3BB90E210C446A3A8C"><enum>(a)</enum><header>Establishment

			 of Medicaid Integrity Program; Medicaid CFO; Medicaid Program Integrity

			 Oversight Board</header><text>Title XIX (42 U.S.C. 1396 et seq.) is

			 amended—</text>

							<paragraph id="IDCBBA9010303142FDAED7BB16D9261BEA"><enum>(1)</enum><text>by redesignating

			 section 1936 as section 1938; and</text>

							</paragraph><paragraph id="ID344EFE3A37C04356AB32F3D3E03C4C87"><enum>(2)</enum><text>by inserting

			 after section 1935 the following:</text>

								<quoted-block id="IDC9F26B8B73E54B9A83373F352163014F" style="traditional"><section id="ID129CF196884D44779CB111D9EF44ADFD"><enum>1936.</enum><header>Medicaid Integrity

		  Program</header><subsection commented="no" display-inline="yes-display-inline" id="ID8D131FCFA7C44D6994BD399A5BCEDDC9"><enum>(a)</enum><header>In

				General</header><text>There is hereby established the Medicaid Integrity

				Program (in this section referred to as the <quote>Program</quote>) under which

				the Secretary shall promote the integrity of the program under this title by

				entering into contracts in accordance with this section with eligible entities

				to carry out the activities described in subsection (b).</text>

										</subsection><subsection id="ID9B2C7D4C43B34B8AAA36210195AC8706"><enum>(b)</enum><header>Activities

				Described</header><text>Activities described in this subsection are as

				follows:</text>

											<paragraph id="ID149EAE5EA0254C53BD2779F49DFE92F1"><enum>(1)</enum><text>Review of the

				actions of individuals or entities furnishing items or services (whether on a

				fee-for-service, risk, or other basis) for which payment may be made under a

				State plan approved under this title (or under any waiver of such plan approved

				under section 1115) to determine whether fraud, waste, or abuse has occurred,

				is likely to occur, or whether such actions have any potential for resulting in

				an expenditure of funds under this title in a manner which is not intended

				under the provisions of this title.</text>

											</paragraph><paragraph id="IDB2E2F8456B8D40B39A9CF142450EA28E"><enum>(2)</enum><text>Audit of claims

				for payment for items or services furnished, or administrative services

				rendered, under a State plan under this title, including—</text>

												<subparagraph id="IDDEBD67D426264248BE5ADD1434B9980C"><enum>(A)</enum><text>cost

				reports;</text>

												</subparagraph><subparagraph id="IDA51C1EF121BA4737BB5E69CFEEFB0A03"><enum>(B)</enum><text>consulting

				contracts; and</text>

												</subparagraph><subparagraph id="ID8CF95E4FF6214C8BBF991F0A84CE2444"><enum>(C)</enum><text>risk contracts

				under section 1903(m).</text>

												</subparagraph></paragraph><paragraph id="IDDEA6F7106BEA4EED9E8A04B86BC7F073"><enum>(3)</enum><text>Identification

				and recovery of overpayments to individuals or entities receiving Federal funds

				under this title.</text>

											</paragraph><paragraph id="IDD3F7F39E24B8414C98AA1EC1FBFE788E"><enum>(4)</enum><text>Education of

				providers of services, managed care entities, beneficiaries, and other

				individuals with respect to payment integrity and benefit quality assurance

				issues.</text>

											</paragraph></subsection><subsection id="IDDB1C1F97D5BC496299778D87B837CC37"><enum>(c)</enum><header>Eligible Entity

				and Contracting Requirements</header>

											<paragraph id="ID6547A85467FB4936B13317D810E26404"><enum>(1)</enum><header>In

				general</header><text>An entity is eligible to enter into a contract under the

				Program to carry out any of the activities described in subsection (b) if the

				entity satisfies the requirements of paragraphs (2) and (3).</text>

											</paragraph><paragraph id="ID513DFBCF7C924F979FA22D65779F4F0B"><enum>(2)</enum><header>Eligibility

				Requirements</header><text>The requirements of this paragraph are the

				following:</text>

												<subparagraph id="ID31A0DEDA04C04662A6668272B8AFF3FC"><enum>(A)</enum><text>The entity has

				demonstrated capability to carry out the activities described in subsection

				(b).</text>

												</subparagraph><subparagraph id="ID7E530EC636F54C1DADCE9D5684EF4BD2"><enum>(B)</enum><text>In carrying out

				such activities, the entity agrees to cooperate with the Inspector General of

				the Department of Health and Human Services, the Attorney General, and other

				law enforcement agencies, as appropriate, in the investigation and deterrence

				of fraud and abuse in relation to this title and in other cases arising out of

				such activities.</text>

												</subparagraph><subparagraph id="ID5A1B7054F44649C19EEBE17E24736A9F"><enum>(C)</enum><text>The entity

				complies with such conflict of interest standards as are generally applicable

				to Federal acquisition and procurement.</text>

												</subparagraph><subparagraph id="ID314E3F2E567C42C59FC594163500EE2C"><enum>(D)</enum><text>The entity meets

				such other requirements as the Secretary may impose.</text>

												</subparagraph></paragraph><paragraph id="IDBAD32F4250EA40A9964AC28640FD2BBF"><enum>(3)</enum><header>Contracting

				Requirements</header><text>The entity has contracted with the Secretary in

				accordance with such procedures as the Secretary shall by regulation establish,

				except that such procedures shall include the following:</text>

												<subparagraph id="ID6C8032550BB84D998A387C8850C51A2E"><enum>(A)</enum><text>Procedures for

				identifying, evaluating, and resolving organizational conflicts of interest

				that are generally applicable to Federal acquisition and procurement.</text>

												</subparagraph><subparagraph id="ID4FC78675519D4F04A3AE0F45B17559DD"><enum>(B)</enum><text>Competitive

				procedures to be used—</text>

													<clause id="ID4F2E7A338CB2416486C8037D1C46F033"><enum>(i)</enum><text>when entering

				into new contracts under this section;</text>

													</clause><clause id="IDD0A1602EEEA34B3FAD9F19FBFD91EBC4"><enum>(ii)</enum><text>when entering

				into contracts that may result in the elimination of responsibilities under

				section 202(b) of the <act-name parsable-cite="HIPAA">Health Insurance

				Portability and Accountability Act of 1996</act-name>; and</text>

													</clause><clause id="ID6155EAA425BE4554BF8DE02D166582EB"><enum>(iii)</enum><text>at any other

				time considered appropriate by the Secretary.</text>

													</clause></subparagraph><subparagraph id="ID43C9E53EDF7A4D588D9026A5666AB488"><enum>(C)</enum><text>Procedures under

				which a contract under this section may be renewed without regard to any

				provision of law requiring competition if the contractor has met or exceeded

				the performance requirements established in the current contract.</text>

												</subparagraph><continuation-text continuation-text-level="paragraph">The

				Secretary may enter into such contracts without regard to final rules having

				been promulgated.</continuation-text></paragraph><paragraph id="ID54FB105FE60844E58092F070998B7866"><enum>(4)</enum><header>Limitation on

				contractor liability</header><text>The Secretary shall by regulation provide

				for the limitation of a contractor’s liability for actions taken to carry out a

				contract under the Program, and such regulation shall, to the extent the

				Secretary finds appropriate, employ the same or comparable standards and other

				substantive and procedural provisions as are contained in section 1157.</text>

											</paragraph></subsection><subsection id="IDA25D8794D1C5474A9B9DCEDEE318B383"><enum>(d)</enum><header>Comprehensive

				Plan for Program Integrity</header>

											<paragraph id="IDB9877D5F6598469CA05E6DCE7E52275C"><enum>(1)</enum><header>5-year

				plan</header><text>With respect to the 5 fiscal year period beginning with

				fiscal year 2006, and each such 5-fiscal year period that begins thereafter,

				the Secretary shall establish a comprehensive plan for ensuring the integrity

				of the program established under this title by combatting fraud, waste, and

				abuse.</text>

											</paragraph><paragraph id="IDBED186B2F3BA4A4284F791CBD3C789AB"><enum>(2)</enum><header>Consultation</header><text>Each

				5-fiscal year plan established under paragraph (1) shall be developed by the

				Secretary in consultation with the Attorney General, the Director of the

				Federal Bureau of Investigation, the Comptroller General of the United States,

				the Inspector General of the Department of Health and Human Services, and State

				officials with responsibility for controlling provider fraud and abuse under

				State plans under this title.</text>

											</paragraph></subsection><subsection id="ID4A98F0309331418D8BA210B24A999337"><enum>(e)</enum><header>Appropriation</header>

											<paragraph id="ID95E81DE980B3437CBAFD2318755F7C4E"><enum>(1)</enum><header>In

				general</header><text>Out of any money in the Treasury of the United States not

				otherwise appropriated, there are appropriated to carry out the Medicaid

				Integrity Program under this section, without further appropriation—</text>

												<subparagraph id="ID1595005EEA7A4EF5B408C7ED6FEB5EE4"><enum>(A)</enum><text>for fiscal year

				2006, $50,000,000;</text>

												</subparagraph><subparagraph id="ID61F12359D4C34C5FB609D8F1CD167FDF"><enum>(B)</enum><text>for each of

				fiscal years 2007 and 2008, $49,000,000;</text>

												</subparagraph><subparagraph id="ID3896DA9A749549D5A43F12F20CF802C1"><enum>(C)</enum><text>for each of

				fiscal years 2009 and 2010, $74,000,000; and</text>

												</subparagraph><subparagraph id="ID7B7FCE6A46C74F4990250EF1757316BF"><enum>(D)</enum><text>for fiscal year

				2011 and each fiscal year thereafter, $75,000,000.</text>

												</subparagraph></paragraph><paragraph id="IDD3ACF7AAA06D481CBB344A180F6C9AAF"><enum>(2)</enum><header>Availability</header><text>Amounts

				appropriated pursuant to paragraph (1) shall remain available until

				expended.</text>

											</paragraph><paragraph id="IDEED1D94564B248B3BD62452AF5418FC6"><enum>(3)</enum><header>Annual

				report</header><text>Not later than 180 days after the end of each fiscal year

				(beginning with fiscal year 2006), the Secretary shall submit a report to

				Congress which identifies—</text>

												<subparagraph id="ID028399F3D88041CAAD5A3305FD996CE6"><enum>(A)</enum><text>the use of funds

				appropriated pursuant to paragraph (1); and</text>

												</subparagraph><subparagraph id="IDAA965AE958764AC59F5FFDC8FB4BEC21"><enum>(B)</enum><text>the effectiveness

				of the use of such

				funds.</text>

												</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

								<quoted-block id="IDB901128526BF4C62818C4BBEF0C1C3B0" style="traditional"><section id="ID1BE0BF7E9BC548B386399741D063A9F8"><enum>1937.</enum><header>Medicaid Chief Financial Officer;

		  Medicaid Program Integrity Oversight Board</header><subsection commented="no" display-inline="yes-display-inline" id="ID09FAA8676BAD40A8B3AC42B459BAF1C4"><enum>(a)</enum><header>Establishment of

				Medicaid CFO</header>

											<paragraph id="IDFE29EC9F2E4E47DDBC673B0240609D10"><enum>(1)</enum><header>In

				general</header><text>There is established in the Centers for Medicare &amp;

				Medicaid Services within the Office of Financial Management the position of

				Medicaid Chief Financial Officer. The Medicaid Chief Financial Officer shall be

				appointed by, and report directly to, the Administrator of such Centers. The

				Medicaid Chief Financial Officer may be removed only for cause.</text>

											</paragraph><paragraph id="ID20BCE24620A74FB4B05B6E18DCA95B52"><enum>(2)</enum><header>Duties and

				authority</header><text>The duties and authority of the Medicaid Chief

				Financial Officer with respect to the management and expenditure of Federal

				funds under this title shall be comparable to the duties and authority of other

				Chief Financial Officers with respect to the management and expenditure of

				Federal funds under Federal health care programs (as defined in section

				1128B(f)).</text>

											</paragraph></subsection><subsection id="ID1D5D969761074B97A705F0EC510ACFF7"><enum>(b)</enum><header>Program

				Integrity Oversight Board</header><text>The Secretary shall establish a

				Medicaid Program Integrity Oversight Board. The duties and authority of the

				Medicaid Program Integrity Oversight Board shall be comparable to the duties

				and authority of other oversight boards established for purposes of Federal

				health care programs (as so defined) and shall include responsibility for

				identifying vulnerabilities in the State programs established under this title

				and developing strategies for minimizing integrity risks to such

				programs.</text>

										</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></subsection><subsection id="ID56AEB0428BFE466787FC86D7415F4C5C"><enum>(b)</enum><header>State

			 Requirement To Cooperate With Integrity Program Efforts</header><text>Section

			 1902(a) (42 U.S.C. 1396a(a)), as amended by section 6024(a), is amended—</text>

							<paragraph id="IDE54DD9644CF243039AF285911A1A89FA"><enum>(1)</enum><text>in paragraph

			 (67), by striking <quote>and</quote> at the end;</text>

							</paragraph><paragraph id="IDEB1D1FDBB5114CF6A9542A27A8B2D095"><enum>(2)</enum><text>in paragraph

			 (68), by striking the period at the end and inserting <quote>; and</quote>;

			 and</text>

							</paragraph><paragraph id="ID7178FF32DBD844DAA7A25767F5F7B731"><enum>(3)</enum><text>by inserting

			 after paragraph (68), the following:</text>

								<quoted-block id="ID47701FDD2A384C4F909FDDC789C6DDF3" style="OLC">

									<paragraph id="ID9CE1AC1BF2B3421EACFE54CAD9E4AE4C"><enum>(69)</enum><text>provide that the

				State must comply with any requirements determined by the Secretary to be

				necessary for carrying out the Medicaid Integrity Program established under

				section 1936, or the duties of the Medicaid Chief Financial Officer and the

				Medicaid Program Integrity Oversight Board established under section

				1937.</text>

									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></subsection><subsection id="IDA96946FA5A8846718A65717E650540E2"><enum>(c)</enum><header>Increased

			 Funding for Medicaid Fraud and Abuse Control Activities</header>

							<paragraph id="IDB1FD12A6D8D84151A299DA74AD0664B9"><enum>(1)</enum><header>In

			 general</header><text>Out of any money in the Treasury of the United States not

			 otherwise appropriated, there are appropriated to the Office of the Inspector

			 General of the Department of Health and Human Services, without further

			 appropriation, $25,000,000 for each of fiscal years 2006 through 2010, for

			 activities of such Office with respect to the Medicaid program under title XIX

			 of the <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1396 et seq.).</text>

							</paragraph><paragraph id="IDE59D24D72042474C91D170DCB2056C92"><enum>(2)</enum><header>Availability;

			 amounts in addition to other amounts appropriated for such

			 activities</header><text>Amounts appropriated pursuant to paragraph (1)

			 shall—</text>

								<subparagraph id="IDC8DE4726538D4AE0822813725A46F1AF"><enum>(A)</enum><text>remain available

			 until expended; and</text>

								</subparagraph><subparagraph id="IDF1605974EA5D456D912FDB675FC83E92"><enum>(B)</enum><text>be in addition to

			 any other amounts appropriated or made available to the Office of the Inspector

			 General of the Department of Health and Human Services for activities of such

			 Office with respect to the Medicaid program.</text>

								</subparagraph></paragraph><paragraph id="ID6C3D92497A354FA6B6C7DBA2A0EBF473"><enum>(3)</enum><header>Annual

			 report</header><text>Not later than 180 days after the end of each fiscal year

			 (beginning with fiscal year 2006), the Inspector General of the Department of

			 Health and Human Services shall submit a report to Congress which

			 identifies—</text>

								<subparagraph id="IDFEB689ABB27844239CC8761CCA6B36CB"><enum>(A)</enum><text>the use of funds

			 appropriated pursuant to paragraph (1); and</text>

								</subparagraph><subparagraph id="IDE6A80755FBE24DE28F0A402608171A3F"><enum>(B)</enum><text>the effectiveness

			 of the use of such funds.</text>

								</subparagraph></paragraph></subsection><subsection id="IDDDF1F927B1B54BD59CCE1087A1363653"><enum>(d)</enum><header>Increase in CMS

			 Staffing Devoted To Ensuring Medicaid Program Integrity</header><text>The

			 Secretary shall significantly increase the number of full-time equivalent

			 employees whose duties consist solely of ensuring the integrity of the Medicaid

			 program established under title XIX of the <act-name parsable-cite="SSA">Social

			 Security Act</act-name> by providing effective support and assistance to States

			 to combat provider fraud and abuse.</text>

						</subsection><subsection id="IDE6AE8E28CDDE461C9D0299DB2DA9ABDC"><enum>(e)</enum><header>Delayed

			 Effective Date for Chapter</header><text>in the case of a State plan under

			 title XIX of the <act-name parsable-cite="SSA">Social Security Act</act-name>

			 which the Secretary determines requires State legislation in order for the plan

			 to meet the additional requirements imposed by the amendments made by a

			 provision of this chapter, the State plan shall not be regarded as failing to

			 comply with the requirements of such Act solely on the basis of its failure to

			 meet these additional requirements before the first day of the first calendar

			 quarter beginning after the close of the first regular session of the State

			 legislature that begins after the date of enactment of this Act. For purposes

			 of the previous sentence, in the case of a State that has a 2-year legislative

			 session, each year of the session shall be considered to be a separate regular

			 session of the State legislature.</text>

						</subsection></section></chapter><chapter id="IDADC2054CBC884B4BBEE0AA0DDBD4FC2B"><enum>4</enum><header>STATE FINANCING

			 UNDER MEDICAID</header>

					<section id="ID8BE3ED97C03A4915B87840C1D0BC5421"><enum>6031.</enum><header>Reforms of

			 targeted case management</header>

						<subsection id="IDD7D2E2680490408AAC37013DC67193A7"><enum>(a)</enum><header>In

			 General</header><text>Section 1915(g) (42 U.S.C. 1396n(g)(2)) is amended by

			 striking paragraph (2) and inserting the following:</text>

							<quoted-block id="ID29094387EA1640D7AA0B0AB622280073" style="OLC">

								<paragraph id="ID305ECC1385934001BEA4B6D70AF1BD46" indent="up1"><enum>(2)</enum><text>For purposes of this

				subsection:</text>

									<subparagraph id="IDBCE8C2B488D6446AA40A1CA884D93CDF"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="ID2138307EBA58473FB2ACF2E758C3CDE2"><enum>(i)</enum><text>The term <term>case

				management services</term> means services which will assist individuals

				eligible under the plan in gaining access to needed medical, social,

				educational, and other services.</text>

										</clause><clause id="ID7B5C25E185254AA792C101F6B8207D71" indent="up1"><enum>(ii)</enum><text>Such term includes the

				following:</text>

											<subclause id="IDA231BDB93668451E828C94E834A52CD2"><enum>(I)</enum><text>Assessment of an eligible

				individual to determine service needs, including activities that focus on needs

				identification, to determine the need for any medical, educational, social, or

				other services. Such assessment activities include the following:</text>

												<item id="IDD13F22E30C864C6CB8ED09AEE64EF26C"><enum>(aa)</enum><text>Taking client history.</text>

												</item><item id="ID2F5018FDED08496CB53EE774023679C6"><enum>(bb)</enum><text>Identifying the needs of the individual,

				and completing related documentation.</text>

												</item></subclause></clause><clause id="ID76643CFFFA4D4949913BC5AC4FBEC732"><enum>(cc)</enum><text>Gathering information from other

				sources such as family members, medical providers, social workers, and

				educators, if necessary, to form a complete assessment of the eligible

				individual.</text>

											<subclause id="IDD7A290D7FA3B4BCCB7D64300FC2312BB" indent="up1"><enum>(II)</enum><text>Development of a specific care

				plan based on the information collected through an assessment, that specifies

				the goals and actions to address the medical, social, educational, and other

				services needed by the eligible individual, including activities such as

				ensuring the active participation of the eligible individual and working with

				the individual (or the individual’s authorized health care decision maker) and

				others to develop such goals and identify a course of action to respond to the

				assessed needs of the eligible individual.</text>

											</subclause><subclause id="ID3E2A53ADD8CC4B39A542B519C767D3E1" indent="up1"><enum>(III)</enum><text>Referral and related activities

				to help an individual obtain needed services, including activities that help

				link eligible individuals with medical, social, educational providers or other

				programs and services that are capable of providing needed services, such as

				making referrals to providers for needed services and scheduling appointments

				for the individual.</text>

											</subclause><subclause id="ID7874B164545A4D5FA31D1F7380BF1DB3" indent="up1"><enum>(IV)</enum><text>Monitoring and followup

				activities, including activities and contacts that are necessary to ensure the

				care plan is effectively implemented and adequately addressing the needs of the

				eligible individual, and which may be with the individual, family members,

				providers, or other entities and conducted as frequently as necessary to help

				determine such matters as—</text>

												<item id="ID71BB8E2012A84CA19082CFC566F7569C"><enum>(aa)</enum><text>whether services are being furnished in

				accordance with an individual’s care plan;</text>

												</item><item id="ID20504583FA204C98B61116CFE37ACA8C"><enum>(bb)</enum><text>whether the services in the care plan

				are adequate; and</text>

												</item></subclause></clause><clause id="IDEBD86EB6B9114E2ABCD17B28526C395E"><enum>(cc)</enum><text>whether there are changes in the

				needs or status of the eligible individual, and if so, making necessary

				adjustments in the care plan and service arrangements with providers.</text>

										</clause><clause id="ID7D48475E071A47B290BD4DD64B482EE0" indent="up1"><enum>(iii)</enum><text>Such term does not include the

				direct delivery of an underlying medical, educational, social, or other service

				to which an eligible individual has been referred, including, with respect to

				the direct delivery of foster care services, services such as (but not limited

				to) the following:</text>

											<subclause id="ID0697027E33E242FA874844AEAE8775F8"><enum>(I)</enum><text>Research gathering and completion

				of documentation required by the foster care program.</text>

											</subclause><subclause id="IDA32D6A74F4B44519875AB240BFE6B50C"><enum>(II)</enum><text>Assessing adoption

				placements.</text>

											</subclause><subclause id="ID281830294A024A6E9C0C0D993B110CFC"><enum>(III)</enum><text>Recruiting or interviewing

				potential foster care parents.</text>

											</subclause><subclause id="IDFEF97CEA7CF445BEB0D85BD22BEDD313"><enum>(IV)</enum><text>Serving legal papers.</text>

											</subclause><subclause id="ID9CCC48E3218E44B8BACEFA797747F006"><enum>(V)</enum><text>Home investigations.</text>

											</subclause><subclause id="ID6A45887BF84842DDAD00BB72A6987ED2"><enum>(VI)</enum><text>Providing transportation.</text>

											</subclause><subclause id="ID9FE2CF35B5934DAA9C6D0CCC89B16C33"><enum>(VII)</enum><text>Administering foster care

				subsidies.</text>

											</subclause><subclause id="IDEE3028D1F76B4FF9BE123057BE4A5A95"><enum>(VIII)</enum><text>Making placement

				arrangements.</text>

											</subclause></clause></subparagraph><subparagraph id="IDBB34CC0E0FBD4951902C0E2134C720EE"><enum>(B)</enum><text>The term <term>targeted case

				management services</term> are case management services that are furnished

				without regard to the requirements of section 1902(a)(1) and section

				1902(a)(10)(B) to specific classes of individuals or to individuals who reside

				in specified areas.</text>

									</subparagraph></paragraph><paragraph id="ID8471019F7341404DBFB0031BD0084393" indent="up1"><enum>(3)</enum><text>With respect to contacts with

				individuals who are not eligible for medical assistance under the State plan

				or, in the case of targeted case management services, individuals who are

				eligible for such assistance but are not part of the target population

				specified in the State plan, such contacts—</text>

									<subparagraph id="ID6767D2B901C8493AAAFBA8047ACF924E"><enum>(A)</enum><text>are considered an allowable case

				management activity, when the purpose of the contact is directly related to the

				management of the eligible individual’s care; and</text>

									</subparagraph><subparagraph id="IDDEBDC3C5A9104CF3BD110DAA46565CD6"><enum>(B)</enum><text>are not considered an allowable case

				management activity if such contacts relate directly to the identification and

				management of the noneligible or nontargeted individual’s needs and

				care.</text>

									</subparagraph></paragraph><paragraph id="ID0673D6DDBC124C988B3BF22B26CDFFFC" indent="up1"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDBFF543D7D8C141B69F3DA8E8D57A75E1"><enum>(A)</enum><text>In accordance with

				section 1902(a)(25), Federal financial participation only is available under

				this title for case management services or targeted case management services if

				there are no other third parties liable to pay for such services, including as

				reimbursement under a medical, social, educational, or other program.</text>

									</subparagraph><subparagraph id="IDD11FDE884F3749E7852164F8063CECD3" indent="up1"><enum>(B)</enum><text>A State shall allocate the costs of

				any part of such services which are reimbursable under another federally funded

				program in accordance with OMB Circular A–87 (or any related or successor

				guidance or regulations regarding allocation of costs among federally funded

				programs) under an approved cost allocation

				program.</text>

									</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</subsection><subsection id="IDEE01C9F467414C3CAF4908540CFB177D"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendment made by subsection (a) shall take effect on

			 January 1, 2006.</text>

						</subsection></section><section id="IDA08D048C324A4C35A5C34CB86A4C9981"><enum>6032.</enum><header>Temporary

			 Federal matching payments for Federal assistance</header>

						<subsection id="IDF4C64973D6224FA08C66B0F2F122FAD9"><enum>(a)</enum><header>100 Percent

			 Federal Matching Payments for Medical Assistance Provided to Specified

			 Individuals</header>

							<paragraph id="IDA40B2C986C6946D9A644CCA76B95C753"><enum>(1)</enum><header>In

			 general</header><text>Notwithstanding section 1905(b) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1396d(b)), for items and services furnished during the period that begins on

			 August 28, 2005, and ends on May 15, 2006, the Federal medical assistance

			 percentage for providing medical assistance for such items and services under a

			 State Medicaid plan to a specified individual (as defined in subsection (b)),

			 and for costs directly attributable to all administrative activities that

			 relate to the provision of such medical assistance, shall be 100

			 percent.</text>

							</paragraph><paragraph id="ID8091D10E2E13492DBF130481EC52C8DE"><enum>(2)</enum><header>Application to

			 child health assistance</header><text>Notwithstanding section 2105(b) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1397ee(b)), for items and services furnished during the period described in

			 paragraph (1), the Federal matching rate for providing child health assistance

			 for such items and services under a State child health plan to a specified

			 individual (as so defined), and for costs directly attributable to all

			 administrative activities that relate to the provision of such child health

			 assistance, shall be 100 percent.</text>

							</paragraph></subsection><subsection id="ID4BA535E5AA5A42D1B99F66EFEEB1233E"><enum>(b)</enum><header>Specified

			 Individual</header>

							<paragraph id="ID90ED35BFEEBE4FBE9E07B2B11FD9BA12"><enum>(1)</enum><header>In

			 general</header><text>For purposes of subsection (a), the term <term>specified

			 individual</term> means an individual who, on any day during the week preceding

			 August 28, 2005, had a primary residence in a Louisiana parish described in

			 paragraph (2), a Mississippi county described in paragraph (3), or an Alabama

			 county described in paragraph (4).</text>

							</paragraph><paragraph id="IDA4635ED51D034F93BF338641B2D051F5"><enum>(2)</enum><header>Louisiana

			 parishes described</header><text>For purposes of paragraph (1), the Louisiana

			 parishes described in this paragraph are the following:</text>

								<subparagraph id="ID1F8008BBB0664172886BF7C122403875"><enum>(A)</enum><text>Acadia.</text>

								</subparagraph><subparagraph id="IDC9E83286055F4E8FB561C7CC01AC94F0"><enum>(B)</enum><text>Ascension.</text>

								</subparagraph><subparagraph id="IDFDF7EC2256DC4418AF93DFD1C58B3E85"><enum>(C)</enum><text>Assumption.</text>

								</subparagraph><subparagraph id="IDFF8EE6EBEE3D4171800F55F932D8C2F2"><enum>(D)</enum><text>Calcasieu.</text>

								</subparagraph><subparagraph id="IDB2FA8629D8C045E9977720E3E18FD0A0"><enum>(E)</enum><text>Cameron.</text>

								</subparagraph><subparagraph id="ID71C8F98273D84CD781BD74C2F228CA38"><enum>(F)</enum><text>East Baton

			 Rouge.</text>

								</subparagraph><subparagraph id="IDE28B97385943436E825DB2BC3EAF0ADB"><enum>(G)</enum><text>East

			 Feliciana.</text>

								</subparagraph><subparagraph id="ID838345AD2CA04D9B893E14FFA9ADC6BD"><enum>(H)</enum><text>Iberia.</text>

								</subparagraph><subparagraph id="ID141800097E8540B8950C7B0CBE8D291E"><enum>(I)</enum><text>Iberville.</text>

								</subparagraph><subparagraph id="ID421935B5228D4B9E90A87B8462FE663A"><enum>(J)</enum><text>Jefferson.</text>

								</subparagraph><subparagraph id="ID1E5B8821610F46BCA8D38A32C167E37F"><enum>(K)</enum><text>Jefferson

			 Davis.</text>

								</subparagraph><subparagraph id="ID6B2EADD1BDC74741BDE26C442BA18032"><enum>(L)</enum><text>Lafayette.</text>

								</subparagraph><subparagraph id="ID05B7F70D0DC14E0FA90E8C4AFF7DB6A0"><enum>(M)</enum><text>Lafourche.</text>

								</subparagraph><subparagraph id="ID226E7999A70B495DA8B02C97770B359A"><enum>(N)</enum><text>Livingston.</text>

								</subparagraph><subparagraph id="ID4C122AB9D6DD4421B0E1E0CBCD4BE188"><enum>(O)</enum><text>Orleans.</text>

								</subparagraph><subparagraph id="IDC0784044F0954437B9A576F3E99C9991"><enum>(P)</enum><text>Pointe

			 Coupee.</text>

								</subparagraph><subparagraph id="ID82A8ECE422B548E38043956976C308DA"><enum>(Q)</enum><text>Plaquemines.</text>

								</subparagraph><subparagraph id="IDF2FA79EE79CF40A481A5C099BF06F678"><enum>(R)</enum><text>St.

			 Bernard.</text>

								</subparagraph><subparagraph id="ID01922A18B5794188B17832BA44446EEF"><enum>(S)</enum><text>St.

			 Charles.</text>

								</subparagraph><subparagraph id="ID070AFE629E294FC7A6610C41A1E49E95"><enum>(T)</enum><text>St.

			 Helena.</text>

								</subparagraph><subparagraph id="IDA755D7195DFB4F2680685860A7EDA287"><enum>(U)</enum><text>St. James.</text>

								</subparagraph><subparagraph id="IDD35DA190F5DB4F9CB8178B4B828971FB"><enum>(V)</enum><text>St. John.</text>

								</subparagraph><subparagraph id="IDDF79306AF2A8413F99DD3D612251C6F8"><enum>(W)</enum><text>St. Mary.</text>

								</subparagraph><subparagraph id="IDDA2C178ABCCD4F1B93032FBF62C5D2AD"><enum>(X)</enum><text>St.

			 Martin.</text>

								</subparagraph><subparagraph id="ID0053784E9E77413EB8AFE752A41EEB3C"><enum>(Y)</enum><text>St.

			 Tammany.</text>

								</subparagraph><subparagraph id="IDD2FA3DA2C4D7478B9C11732F6D71003F"><enum>(Z)</enum><text>Tangipahoa.</text>

								</subparagraph><subparagraph id="ID6FDFED830EB54BD3A2F0BD3EAB62C6FF"><enum>(AA)</enum><text>Terrebonne.</text>

								</subparagraph><subparagraph id="ID4DA8AB1543F141C291050D2AD453F63D"><enum>(BB)</enum><text>Vermilion.</text>

								</subparagraph><subparagraph id="IDE1BE040478924E608A2A93F823E1CF03"><enum>(CC)</enum><text>Washington.</text>

								</subparagraph><subparagraph id="IDF33371AE7D834121960A965208F44E1E"><enum>(DD)</enum><text>West Baton

			 Rouge.</text>

								</subparagraph><subparagraph id="IDA176BA17ED28498AB9DB21296421FAA2"><enum>(EE)</enum><text>West

			 Feliciana.</text>

								</subparagraph></paragraph><paragraph id="ID6631ABC25FCA42CB82FBDCDF5D74E149"><enum>(3)</enum><header>Mississippi

			 counties described</header><text>For purposes of paragraph (1), the Mississippi

			 counties described in this paragraph are the following:</text>

								<subparagraph id="IDF9BC6C4263AF43FCBA310F1CCA68ED81"><enum>(A)</enum><text>Adams.</text>

								</subparagraph><subparagraph id="IDB23C709CF10E4C5C914CE30A0EF692C6"><enum>(B)</enum><text>Amite.</text>

								</subparagraph><subparagraph id="IDEB9F580FA1B6481BB088D2D3A139A5D2"><enum>(C)</enum><text>Attala.</text>

								</subparagraph><subparagraph id="ID6669FBB48B3A421EB143DC427AFFC0EA"><enum>(D)</enum><text>Clairborne.</text>

								</subparagraph><subparagraph id="IDA3EA3AF638EB4CEA968162206933F6B0"><enum>(E)</enum><text>Choctaw.</text>

								</subparagraph><subparagraph id="IDE889650481BC42BA9BCE242280394827"><enum>(F)</enum><text>Clarke.</text>

								</subparagraph><subparagraph id="ID806B7D2BB3674254A0E082D4FA3FAF4B"><enum>(G)</enum><text>Copiah.</text>

								</subparagraph><subparagraph id="ID9EB82B7427FA408E86242FF80EDB01B0"><enum>(H)</enum><text>Covington.</text>

								</subparagraph><subparagraph id="IDD9D8C0587CCF480A891326A6326D111E"><enum>(I)</enum><text>Forrest.</text>

								</subparagraph><subparagraph id="IDA6ECB64898FB4FC8AD50FBF72BB34554"><enum>(J)</enum><text>Franklin.</text>

								</subparagraph><subparagraph id="ID5E6CA74CD6B4483FB9D03E55BB3B4991"><enum>(K)</enum><text>George.</text>

								</subparagraph><subparagraph id="ID9AAABC4588094E6A9D4CC9695DC7E11D"><enum>(L)</enum><text>Greene.</text>

								</subparagraph><subparagraph id="ID12A87F2F43B04946B0836BCC0F7E476C"><enum>(M)</enum><text>Hancock.</text>

								</subparagraph><subparagraph id="ID2BE492EE27564E85A89D45EC12CD81FF"><enum>(N)</enum><text>Harrison.</text>

								</subparagraph><subparagraph id="IDED445B1EF77E46D7AA57A7EE2E3F421F"><enum>(O)</enum><text>Hinds.</text>

								</subparagraph><subparagraph id="ID4BDCE08283D54DDB94C66EED6E8E5F06"><enum>(P)</enum><text>Jackson.</text>

								</subparagraph><subparagraph id="ID8C6DBC27C45C4647A56F46A84B393311"><enum>(Q)</enum><text>Jasper.</text>

								</subparagraph><subparagraph id="IDF12C3E59F7D345289516FE5D64710404"><enum>(R)</enum><text>Jefferson.</text>

								</subparagraph><subparagraph id="ID2EC6DB4823424A7CB0761C219825488E"><enum>(S)</enum><text>Jefferson

			 Davis.</text>

								</subparagraph><subparagraph id="IDA47DCB7C30BA48059B0E5FDD3EA224AF"><enum>(T)</enum><text>Jones.</text>

								</subparagraph><subparagraph id="ID2584ED86F49E466DA0CC4229360E4CB5"><enum>(U)</enum><text>Kemper.</text>

								</subparagraph><subparagraph id="IDCE9A0C4DD64B43A7B4577F7CE98C883B"><enum>(V)</enum><text>Lamar.</text>

								</subparagraph><subparagraph id="ID759155C599A642ACB88B5E8686A1E199"><enum>(W)</enum><text>Lauderdale.</text>

								</subparagraph><subparagraph id="ID248553F55B164FAFB3FAAC180EC006B8"><enum>(X)</enum><text>Lawrence.</text>

								</subparagraph><subparagraph id="ID583EC5CF89974263A9E31CB3B9B0E89D"><enum>(Y)</enum><text>Leake.</text>

								</subparagraph><subparagraph id="IDB47B3479FEB84334AC7E34C41C856B0D"><enum>(Z)</enum><text>Lincoln.</text>

								</subparagraph><subparagraph id="IDF25DFB68974546D7A43C5D44D7B80970"><enum>(AA)</enum><text>Lowndes.</text>

								</subparagraph><subparagraph id="ID457F70AE1F7C49A2A95C213C4C50FC56"><enum>(BB)</enum><text>Madison.</text>

								</subparagraph><subparagraph id="ID1CCB160DE7BE419D9361A02B4496F5C9"><enum>(CC)</enum><text>Marion.</text>

								</subparagraph><subparagraph id="ID0F0E1AC0E7EC4B61963C24D1EB4D347A"><enum>(DD)</enum><text>Neshoba.</text>

								</subparagraph><subparagraph id="ID847EB3A01FDA4EE5AD2C6615EF0AF371"><enum>(EE)</enum><text>Newton.</text>

								</subparagraph><subparagraph id="ID88AE75F15D604ED6ABF8CC94EC8E6BA7"><enum>(FF)</enum><text>Noxubee.</text>

								</subparagraph><subparagraph id="ID1F88BF33093845B68E450131B6081BA5"><enum>(GG)</enum><text>Oktibbeha.</text>

								</subparagraph><subparagraph id="ID6B097C245D1B4B8BB54D10BD3C182464"><enum>(HH)</enum><text>Pearl

			 River.</text>

								</subparagraph><subparagraph id="ID9F0B7A0C64244B108A35D8BD8A97FC93"><enum>(II)</enum><text>Perry.</text>

								</subparagraph><subparagraph id="ID9C4B3FB456BC4CF0B3B2C1FBBB160BCA"><enum>(JJ)</enum><text>Pike.</text>

								</subparagraph><subparagraph id="IDD8C744C863B94D38B2DAF32329A86683"><enum>(KK)</enum><text>Rankin.</text>

								</subparagraph><subparagraph id="ID3287BA8CB89E4A02B32723C20A0AD0F6"><enum>(LL)</enum><text>Scott.</text>

								</subparagraph><subparagraph id="IDAD8BC13C6281479E827777E9E79F2F79"><enum>(MM)</enum><text>Simpson.</text>

								</subparagraph><subparagraph id="IDB4E408E6F78B4D11A798B530AC5AB996"><enum>(NN)</enum><text>Smith.</text>

								</subparagraph><subparagraph id="ID6B8707A045214A23956612647F3E1268"><enum>(OO)</enum><text>Stone.</text>

								</subparagraph><subparagraph id="IDF4AB3A79BA3A471BA767768E5A7D859A"><enum>(PP)</enum><text>Walthall.</text>

								</subparagraph><subparagraph id="ID9546CB42EB0D4446A036251D04F16B33"><enum>(QQ)</enum><text>Warren.</text>

								</subparagraph><subparagraph id="ID8ECCA86E76524DA79DF7DDC69C8702EC"><enum>(RR)</enum><text>Wayne.</text>

								</subparagraph><subparagraph id="ID3BBD85F270714FEE85B13EA182089F70"><enum>(SS)</enum><text>Wilkinson.</text>

								</subparagraph><subparagraph id="IDF8EA8B6647C941259368D2C3058F739C"><enum>(TT)</enum><text>Winston.</text>

								</subparagraph><subparagraph id="ID7D1B945CF3EF49C9B28DB4216A08C3E3"><enum>(UU)</enum><text>Yazoo.</text>

								</subparagraph></paragraph><paragraph id="ID13C31450371B41C896D202C7793C4DC5"><enum>(4)</enum><header>Alabama

			 counties described</header><text>For purposes of paragraph (1) the Alabama

			 counties described in this paragraph are the following:</text>

								<subparagraph id="ID1061DBDDF1B04FE19471162337825906"><enum>(A)</enum><text>Baldwin.</text>

								</subparagraph><subparagraph id="ID62C5097AA94D47DA8E96D08AD6D1F77A"><enum>(B)</enum><text>Choctaw.</text>

								</subparagraph><subparagraph id="ID87F671EDA9B5437A89E7567F89FD6CB9"><enum>(C)</enum><text>Clarke.</text>

								</subparagraph><subparagraph id="ID7AF443C8C27B45A59C5CC8A48A38BBF1"><enum>(D)</enum><text>Greene.</text>

								</subparagraph><subparagraph id="ID93BE0744C3C84D0CBA800ECC55406EC2"><enum>(E)</enum><text>Hale.</text>

								</subparagraph><subparagraph id="IDAA3756983F0B4747A0690EBF3FCEB3A7"><enum>(F)</enum><text>Marengo.</text>

								</subparagraph><subparagraph id="IDF54C9B23D0BB4138A6673D00301F5465"><enum>(G)</enum><text>Mobile.</text>

								</subparagraph><subparagraph id="ID72481C918DD14EBA9FC04F221175A6F3"><enum>(H)</enum><text>Pickens.</text>

								</subparagraph><subparagraph id="ID30D63225711D4FFAA7C618F69DA37AA3"><enum>(I)</enum><text>Sumter.</text>

								</subparagraph><subparagraph id="ID8A81C2CF6E6F4BF7B8929FED3EFCF1BA"><enum>(J)</enum><text>Tuscaloosa.</text>

								</subparagraph><subparagraph id="ID623923DD685F4A04AAFABF85E58A6278"><enum>(K)</enum><text>Washington.</text>

								</subparagraph></paragraph></subsection><subsection id="ID95C48E451AF54005B62FC88B8CB00117"><enum>(c)</enum><header>FMAP

			 Adjustment</header><text>Notwithstanding the first sentence of section 1905(b)

			 of the <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1396d(b)), if, for purposes of titles XIX and XXI of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C. 1396 et

			 seq., 1397aa et seq.), the Federal medical assistance percentage determined for

			 Alaska for fiscal year 2006 or fiscal year 2007 is less than the Federal

			 medical assistance percentage determined for Alaska for fiscal year 2005, the

			 Federal medical assistance percentage determined for Alaska for fiscal year

			 2005 shall be substituted for the Federal medical assistance percentage

			 otherwise determined for Alaska for fiscal year 2006 or fiscal year 2007, as

			 the case may be.</text>

						</subsection></section><section id="ID2531775A10DE49BFB3ABB4CB90DCBF1E"><enum>6033.</enum><header>Managed care

			 organization provider tax reform</header>

						<subsection id="ID946B1388A8AE411CA8E3BD328480B478"><enum>(a)</enum><header>In

			 General</header><text>Section 1903(w)(7)(A)(viii) (42 U.S.C.

			 1396b(w)(7)(A)(viii)) is amended to read as follows:</text>

							<quoted-block id="IDAD06688F9B4D44138AA27854F7DC28B9" style="OLC">

								<clause id="ID8E8EED17EE0740EEA609781A5B83F123" indent="up1"><enum>(viii)</enum><text>Services of managed care

				organizations (including health maintenance organizations, preferred provider

				organizations, and such other similar organizations as the Secretary may

				specify by

				regulation).</text>

								</clause><after-quoted-block>.</after-quoted-block></quoted-block>

						</subsection><subsection id="ID9D8D61FD777E49D38C3DFE6E01CD4A61"><enum>(b)</enum><header>Effective

			 Date</header>

							<paragraph id="ID386E57567ABC41539787DE4FEEDCD4BC"><enum>(1)</enum><header>In

			 general</header><text>Except as provided in paragraph (2), the amendment made

			 by subsection (a) shall take effect on January 1, 2006.</text>

							</paragraph><paragraph id="IDE3A8E75BA7904423BF912418E93CA9B8"><enum>(2)</enum><header>Nonapplication</header><text>The

			 amendment made by subsection (a) shall not apply in the case of a State that,

			 as of December 31, 2005, has in effect a tax imposed on the class of health

			 care items and services described in section 1903(w)(7)(A)(viii) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1396b(w)(7)(A)(viii)) (as in effect before the date of enactment of this

			 Act).</text>

							</paragraph></subsection></section><section id="ID4142232207BB444C9B77528A61B8AE7B"><enum>6034.</enum><header>Inclusion of

			 podiatrists as physicians</header>

						<subsection id="IDB2E17C47463148A2BD0B96AFAD76B072"><enum>(a)</enum><header>In

			 General</header><text>Section 1905(a)(5)(A) (42 U.S.C. 1396d(a)(5)(A)) is

			 amended by striking <quote>section 1861(r)(1)</quote> and inserting

			 <quote>paragraphs (1) and (3) of section 1861(r)</quote>.</text>

						</subsection><subsection id="IDBDDFBE2DCFD74B2DA8E0080A979873AB"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendment made by subsection (a) shall apply to services

			 furnished on or after January 1, 2006.</text>

						</subsection></section><section id="IDE5C8EA0210CE4A139DA69D5711451649"><enum>6035.</enum><header>DSH allotment

			 for the District of Columbia</header>

						<subsection id="ID93A4C78F81894C9DB75419D401A914EB"><enum>(a)</enum><header>In

			 General</header><text>The table in section 1923(f)(2) (42 U.S.C. 1396r–4(f)(2))

			 is amended under each of the columns for FY 00, FY 01, and FY 02, in the entry

			 for the District of Columbia, by striking <quote>32</quote> and inserting

			 <quote>49</quote>.</text>

						</subsection><subsection id="IDEEF9DB3AEF6F4BC8944873DA135FEBE2"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendments made by subsection (a) shall take effect as

			 if enacted on October 1, 2005 and shall apply to expenditures made on or after

			 that date.</text>

						</subsection></section><section id="IDC8B6D54BB6C94EB2882F47535AA892D4"><enum>6036.</enum><header>Demonstration

			 project regarding Medicaid reimbursement for stabilization of emergency medical

			 conditions by non-publicly owned or operated institutions for mental

			 diseases</header>

						<subsection id="ID1ECA157969F54715BDDBB07316EEBD4D"><enum>(a)</enum><header>Authority To

			 Conduct Demonstration Project</header><text>The Secretary shall establish a

			 demonstration project under which an eligible State (as defined in subsection

			 (b)) shall provide reimbursement under the State medicaid plan to an

			 institution for mental diseases that is not publicly owned or operated and that

			 is subject to the requirements of section 1867 of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C, 1395dd)

			 for the provision of medical assistance available under such plan to an

			 individual who—</text>

							<paragraph id="ID35E5515A77F74D2E8E67F6C9A2A90545"><enum>(1)</enum><text>has attained age

			 21, but has not attained age 65;</text>

							</paragraph><paragraph id="ID79D4D32432EF48BDB34B17A026578CBF"><enum>(2)</enum><text>is eligible for

			 medical assistance under such plan; and</text>

							</paragraph><paragraph id="ID872C0DCB586A400398E10EA83A50922A"><enum>(3)</enum><text>requires such

			 medical assistance to stabilize an emergency medical condition.</text>

							</paragraph></subsection><subsection id="ID4D204756B55A4AEA99AE4BE4C58A41B8"><enum>(b)</enum><header>Eligible State

			 Defined</header>

							<paragraph id="IDED4BDBC0E3504446B2CF4635233C5AA8"><enum>(1)</enum><header>Application</header><text>Upon

			 approval of an application submitted by a State described in paragraph (2), the

			 State shall be an eligible State for purposes of conducting a demonstration

			 project under this section.</text>

							</paragraph><paragraph id="IDB901F903CC24467AA92E905B8910DCD5"><enum>(2)</enum><header>State

			 described</header><text>A State described in this paragraph is each of the

			 following:</text>

								<subparagraph id="ID619E3AF600A441E9850ACEE27E39FA7D"><enum>(A)</enum><text>Arizona.</text>

								</subparagraph><subparagraph id="IDB5F4123B346640DB94539BF67D853EDE"><enum>(B)</enum><text>Arkansas.</text>

								</subparagraph><subparagraph id="IDF84059F37C4645DC894E62636FC8C9A5"><enum>(C)</enum><text>Louisiana.</text>

								</subparagraph><subparagraph id="IDEB0CB8D8FB5A4936A23ED096C3573A2B"><enum>(D)</enum><text>Maine.</text>

								</subparagraph><subparagraph id="IDB0C226E5F4F04E1183DE021005B02184"><enum>(E)</enum><text>North

			 Dakota.</text>

								</subparagraph><subparagraph id="ID4DE3CF38977E49EF9EB430A08108E21C"><enum>(F)</enum><text>Wyoming.</text>

								</subparagraph><subparagraph id="IDD8FFD30A34FE478D99551B790AEF9583"><enum>(G)</enum><text>Four other States

			 selected by the Secretary to provide geographic diversity on the basis of the

			 application to conduct a demonstration project under this section submitted by

			 such States.</text>

								</subparagraph></paragraph></subsection><subsection id="ID65E3A891E9854D80AADF0A9D5623C154"><enum>(c)</enum><header>Length of

			 Demonstration Project</header><text>The demonstration project established under

			 this section shall be conducted for a period of 3 consecutive years.</text>

						</subsection><subsection id="ID3F75CC509DE04865AE23CCF74B9C2483"><enum>(d)</enum><header>Limitations on

			 Federal Funding</header>

							<paragraph id="ID30EF748B3EEB442BA4FCE0BBC68A5ABF"><enum>(1)</enum><header>Appropriation</header>

								<subparagraph id="IDE82691DB6DD742CE9D69AF90BFC2E332"><enum>(A)</enum><header>In

			 general</header><text>Out of any funds in the Treasury not otherwise

			 appropriated, there is appropriated to carry out this section, $30,000,000 for

			 fiscal year 2006.</text>

								</subparagraph><subparagraph id="ID1481D63F7B724442BC4230EA7DD904CB"><enum>(B)</enum><header>Budget

			 authority</header><text>Subparagraph (A) constitutes budget authority in

			 advance of appropriations Act and represents the obligation of the Federal

			 Government to provide for the payment of the amounts appropriated under that

			 subparagraph.</text>

								</subparagraph></paragraph><paragraph id="ID98D1EBA4E1814ABA8F04E3A9DDF4EC79"><enum>(2)</enum><header>3-year

			 availability</header><text>Funds appropriated under paragraph (1) shall remain

			 available for obligation through December 31, 2008.</text>

							</paragraph><paragraph id="ID69E7822FDA1343808888D9DF6A2F553D"><enum>(3)</enum><header>Limitation on

			 payments</header><text>In no case may—</text>

								<subparagraph id="ID6984DCBCC303439D8E4202E9B1F5BDA3"><enum>(A)</enum><text>the aggregate

			 amount of payments made by the Secretary to eligible States under this section

			 exceed $30,000,000; or</text>

								</subparagraph><subparagraph id="IDFC933F826AE24A49BEBF0D1F63BDB549"><enum>(B)</enum><text>payments be

			 provided by the Secretary under this section after December 31, 2008.</text>

								</subparagraph></paragraph><paragraph id="ID820153C6BD8641708D9A1A6A3D8947D9"><enum>(4)</enum><header>Funds allocated

			 to states</header><text>The Secretary shall allocate funds to eligible States

			 based on their applications and the availability of funds.</text>

							</paragraph><paragraph id="IDE837822565D642E1BEC52D65842F81F7"><enum>(5)</enum><header>Payments to

			 states</header><text>The Secretary shall pay to each eligible State, from its

			 allocation under paragraph (4), an amount each quarter equal to the Federal

			 medical assistance percentage of expenditures in the quarter for medical

			 assistance described in subsection (a).</text>

							</paragraph></subsection><subsection id="ID4046B281399144E786B2AEB953A4CA1D"><enum>(e)</enum><header>Reports</header>

							<paragraph id="ID601B50070A2B43C29AECBF4F8B7B173A"><enum>(1)</enum><header>Annual progress

			 reports</header><text>The Secretary shall submit annual reports to Congress on

			 the progress of the demonstration project conducted under this section.</text>

							</paragraph><paragraph id="ID5E90F9DF03F34E16B1C68EE8F03775B3"><enum>(2)</enum><header>Final report

			 and recommendation</header><text>Not later than March 31, 2009, the Secretary

			 shall submit to Congress a final report on the demonstration project conducted

			 under this section that shall include the following:</text>

								<subparagraph id="IDD1D472D7D09A4FF9A471B8F409DE8ED5"><enum>(A)</enum><text>A determination

			 as to whether the demonstration project resulted in increased access to

			 inpatient mental health services under the medicaid program.</text>

								</subparagraph><subparagraph id="ID722F7E86820A4EE69D1A837BCD762545"><enum>(B)</enum><text>An analysis

			 regarding whether the demonstration project produced a significant reduction in

			 the use of higher cost emergency room visits for individuals eligible for

			 medical assistance under the medicaid program.</text>

								</subparagraph><subparagraph id="ID188675142CD241AAAC56ACAD0DD4D48A"><enum>(C)</enum><text>An assessment of

			 the impact of the demonstration project on the costs related to the provision

			 of inpatient psychiatric care and services under the medicaid program.</text>

								</subparagraph><subparagraph id="ID49E5E99CE59A4418B7E66A78B115F9E9"><enum>(D)</enum><text>A recommendation

			 regarding whether the demonstration project should be continued after December

			 31, 2008, and expanded on a national basis.</text>

								</subparagraph></paragraph></subsection><subsection id="ID88ADE3D739BE46B580EB4000135D4756"><enum>(f)</enum><header>Waiver

			 Authority</header>

							<paragraph id="ID8828573380B84B418F7E41959C672C17"><enum>(1)</enum><header>In

			 general</header><text>The Secretary shall waive the limitation of subdivision

			 (B) following paragraph (28) of section 1905(a) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1396d(a)) (relating to limitations on payments for care or services for

			 individuals under 65 years of age who are patients in an institution for mental

			 diseases) for purposes of carrying out the demonstration project under this

			 section.</text>

							</paragraph><paragraph id="ID06D03FFEBA444EDF97D79FD3D0C4A6F0"><enum>(2)</enum><header>Limited other

			 waiver authority</header><text>The Secretary may waive other requirements of

			 titles XI and XIX of the <act-name parsable-cite="SSA">Social Security

			 Act</act-name> (including the requirements of sections 1902(a)(1) (relating to

			 statewideness) and 1902(a)(10)(B) (relating to comparability)) only to extent

			 necessary to carry out the demonstration project under this section.</text>

							</paragraph></subsection><subsection id="IDF1FCCB96721342F2B987B9569072E9D1"><enum>(g)</enum><header>Definitions</header><text>In

			 this section:</text>

							<paragraph id="ID0523EBA46A504D9FB41565F5BAB9A069"><enum>(1)</enum><header>Emergency

			 medical condition</header><text>The term <term>emergency medical

			 condition</term> has the meaning given that term in section 1867(e)(1) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1395dd(e)(1)).</text>

							</paragraph><paragraph id="ID6712A61A9DFC4C0E8B8EE9E44476CF52"><enum>(2)</enum><header>Federal medical

			 assistance percentage</header><text>The term <term>Federal medical assistance

			 percentage</term> has the meaning given that term with respect to a State in

			 section 1905(b) of the <act-name parsable-cite="SSA">Social Security

			 Act</act-name> (42 U.S.C. 1396d(b)).</text>

							</paragraph><paragraph id="IDEA460E1751CB4523B510143307718DC0"><enum>(3)</enum><header>Institution for

			 mental diseases</header><text>The term <term>institution for mental

			 diseases</term> has the meaning given that term in section 1905(i) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1396d(i)).</text>

							</paragraph><paragraph id="IDDE48A59E246C4A34802C9FD64E4CB493"><enum>(4)</enum><header>Medical

			 assistance</header><text>The term <term>medical assistance</term> has the

			 meaning given that term in section 1905(a) of the <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C. 1396d(a)).</text>

							</paragraph><paragraph id="IDC8C506902B8C4DD48EF3109E8BDF8FE1"><enum>(5)</enum><header>Stabilize</header><text>The

			 term <term>stabilize</term> has the meaning given that term in section

			 1867(e)(3)(A) of the <act-name parsable-cite="SSA">Social Security

			 Act</act-name> (42 U.S..C 1395dd(e)(3)(A)).</text>

							</paragraph><paragraph id="ID3BA9FDD08143495AA10ADB2828DAD3F7"><enum>(6)</enum><header>State</header><text>The

			 term <term>State</term> has the meaning given that term for purposes of title

			 XIX of the <act-name parsable-cite="SSA">Social Security Act</act-name> (42

			 U.S.C. 1396 et seq.).</text>

							</paragraph></subsection></section><section id="IDD5A2859567994F98A2792BBEDB76A252"><enum>6037.</enum><header>Limitation on

			 severe reduction in the Medicaid FMAP for fiscal year 2006</header>

						<subsection id="ID5C889C2463054C909A62F6CAEA6C33D7"><enum>(a)</enum><header>Limitation on

			 Reduction</header><text>In no case shall the FMAP for a State for fiscal year

			 2006 be less than the greater of the following:</text>

							<paragraph id="IDAB19431FA1BD4D22ACE51B19CFE47BEA"><enum>(1)</enum><header>2005 fmap

			 decreased by the applicable percentage points</header><text>The FMAP determined

			 for the State for fiscal year 2005, decreased by—</text>

								<subparagraph id="ID35523170235E46EFB239A464C4816579"><enum>(A)</enum><text>0.1 percentage

			 points in the case of Delaware and Michigan;</text>

								</subparagraph><subparagraph id="ID2BBD1D12207944FAAB7C4AAC4A4ADF0F"><enum>(B)</enum><text>0.3 percentage

			 points in the case of Kentucky; and</text>

								</subparagraph><subparagraph id="ID76374CAD4B4D4FB4946AB2CE281FE69E"><enum>(C)</enum><text>0.5 percentage

			 points in the case of any other State.</text>

								</subparagraph></paragraph><paragraph id="ID5172F7CACE5D4C9882BE5E250C20409B"><enum>(2)</enum><header>Computation

			 without retroactive application of rebenchmarked per capita

			 income</header><text>The FMAP that would have been determined for the State for

			 fiscal year 2006 if the per capita incomes for 2001 and 2002 that was used to

			 determine the FMAP for the State for fiscal year 2005 were used.</text>

							</paragraph></subsection><subsection id="ID2A0129CFA5EB442DB95B0F5D60AAB77A"><enum>(b)</enum><header>Scope of

			 Application</header><text>The FMAP applicable to a State for fiscal year 2006

			 after the application of subsection (a) shall apply only for purposes of titles

			 XIX and XXI of the <act-name parsable-cite="SSA">Social Security Act</act-name>

			 (including for purposes of making disproportionate share hospital payments

			 described in section 1923 of such Act (42 U.S.C. 1396r–4) and payments under

			 such titles that are based on the enhanced FMAP described in section 2105(b) of

			 such Act (42 U.S.C. 1397ee(b))) and shall not apply with respect to payments

			 under title IV of such Act (42 U.S.C. 601 et seq.).</text>

						</subsection><subsection id="IDE126D82BE6A24397AAA9E0DB1FFC3D32"><enum>(c)</enum><header>Definitions</header><text>In

			 this section:</text>

							<paragraph id="IDACC2A4AF8FDF4B59A18B734102ED6BDC"><enum>(1)</enum><header>FMAP</header><text>The

			 term <term>FMAP</term> means the Federal medical assistance percentage, as

			 defined in section 1905(b) of the <act-name parsable-cite="SSA">Social Security

			 Act</act-name> (42 U.S.C. 1396d(b)).</text>

							</paragraph><paragraph id="ID59D963D8CBD94EA2B172EEEC05EEC842"><enum>(2)</enum><header>State</header><text>The

			 term <term>State</term> has the meaning given such term for purposes of title

			 XIX of the <act-name parsable-cite="SSA">Social Security Act</act-name> (42

			 U.S.C. 1396 et seq.).</text>

							</paragraph></subsection><subsection id="ID72CD72621547459BB7662A1C8299D9A0"><enum>(d)</enum><header>Repeal</header><text>Effective

			 as of October 1, 2006, this section is repealed and shall not apply to any

			 fiscal year after fiscal year 2006.</text>

						</subsection></section><section id="ID825D4BE933D34FB39A3F58C712956FA8"><enum>6038.</enum><header>Extension of

			 prescription drug rebates to enrollees in Medicaid managed care

			 organizations</header>

						<subsection id="ID450BB0DA9B3749B881AB7436C2EEB341"><enum>(a)</enum><header>In

			 General</header><text>Section 1927(j)(1) (42 U.S.C. 1396r–8(j)(1)) is amended

			 by striking “dispensed” and all that follows through the period and inserting

			 “are not subject to the requirements of this section if such drugs are—</text>

							<quoted-block id="IDDE99B88FB0DC48C6BDFF24A7A1EA945F" style="OLC">

								<subparagraph id="IDED659C5D061E46DFA00A2B01ABD3EF69" indent="up1"><enum>(A)</enum><text>dispensed by health maintenance

				organizations that contract under section 1903(m); and</text>

								</subparagraph><subparagraph id="IDAED94B6D289F4FEAB107AEE07F732C1D" indent="up1"><enum>(B)</enum><text>subject to discounts under section

				340B of the <act-name parsable-cite="PHSA">Public Health Service Act</act-name>

				(42 U.S.C.

				256b).</text>

								</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</subsection><subsection id="IDC67C63A95EF54A9BA87355A205E66FCE"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendment made by subsection (a) shall take effect on

			 the date of enactment of this Act and apply to rebate agreements entered into

			 or renewed under section 1927 of the <act-name parsable-cite="SSA">Social

			 Security Act</act-name> (42 U.S.C. 1396r–8) on or after such date.</text>

						</subsection></section><section id="IDC4769A9AEBE74F06B5B22F4E8984A704"><enum>6039.</enum><header>Extension of

			 the Medicare Part <enum-in-header>A</enum-in-header> and B payment

			 holiday</header><text display-inline="no-display-inline">Section 6112(b)(1) of

			 this Act is amended by striking <quote>September 22, 2006</quote> and inserting

			 <quote>September 21, 2006</quote>.</text>

					</section><section id="ID43C9784F25CF4F349CD2E32E8F482ADF"><enum>6039A.</enum><header>Sense of the

			 Senate</header>

						<subsection id="ID906353F2C6CA4686B69C92B0EE159299"><enum>(a)</enum><header>Findings</header><text>The

			 Senate makes the following findings:</text>

							<paragraph id="IDCDB7364A38E74F5DB9D069D569109437"><enum>(1)</enum><text>On October 26,

			 2005, the Committee on Ways and Means of the United States House of

			 Representatives approved a budget reconciliation package that would

			 significantly reduce the Federal Government’s funding used to pay for the child

			 support program established under part D of title IV of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C. 651 et

			 seq.) and would restrict the ability of States to use Federal child support

			 incentive payments for child support program expenditures that are eligible for

			 Federal matching payments.</text>

							</paragraph><paragraph id="IDE1EA5839D65144AA94C1E7D3C7E9A03B"><enum>(2)</enum><text>The child support

			 program enforces the responsibility of non-custodial parents to support their

			 children. The program is jointly funded by Federal, State and local

			 governments.</text>

							</paragraph><paragraph id="IDD0D5C58D0BAA4121AB1F43A31C6E2F22"><enum>(3)</enum><text>The Office of

			 Management and Budget gave the child support program a 90 percent rating under

			 the Program Assessment Rating Tool (PART), making it the highest performing

			 social services program.</text>

							</paragraph><paragraph id="ID2790A23BAD044B16A8DD2F4ECF045BC1"><enum>(4)</enum><text>The President’s

			 2006 budget cites the child support program as <quote>one of the highest rated

			 block/formula grants of all reviewed programs government-wide. This high rating

			 is due to its strong mission, effective management, and demonstration of

			 measurable progress toward meeting annual and long term performance

			 measures.</quote></text>

							</paragraph><paragraph id="ID79F09D64E8AD4D37A2FC0D6CC242F071"><enum>(5)</enum><text>In 2004, the

			 child support program spent $5,300,000,000 to collect $21,900,000,000 in

			 support payments. Public investment in the child support program provides more

			 than a four-fold return, collecting $4.38 in child support for every Federal

			 and State dollar that the program spends.</text>

							</paragraph><paragraph id="ID21FC9D04B5D94DA682E2C71DE8D8DAB6"><enum>(6)</enum><text>In 2004,

			 17,300,000 children, or 60 percent of all children living apart from a parent,

			 received child support services through the program. The percentage is higher

			 for poor children—84 percent of poor children living apart from their parent

			 receive child support services through the program. Families assisted by the

			 child support program generally have low or moderate incomes.</text>

							</paragraph><paragraph id="IDC65EEF4871584B27A6DEA2655D2D4C76"><enum>(7)</enum><text>Children who

			 receive child support from their parents do better in school than those that do

			 not receive support payments. Older children with child support payments are

			 more likely to finish high school and attend college.</text>

							</paragraph><paragraph id="IDD0CF579F649A487B852F14D995B5DA97"><enum>(8)</enum><text>The child support

			 program directly decreases the costs of other public assistance programs by

			 increasing family self-sufficiency. The more effective the child support

			 program in a State, the higher the savings in public assistance costs.</text>

							</paragraph><paragraph id="ID121C8904251A489AAF7937AF8BB49E3C"><enum>(9)</enum><text>Child support

			 helps lift more than 1,000,000 Americans out of poverty each year.</text>

							</paragraph><paragraph id="IDDA8BFF5C1A9C481581A6384523B31571"><enum>(10)</enum><text>Families that

			 are former recipients of assistance under the temporary assistance for needy

			 families program (TANF) have seen the greatest increase in child support

			 payments. Collections for these families increased 94 percent between 1999 and

			 2004, even though the number of former TANF families did not increase during

			 this period.</text>

							</paragraph><paragraph id="IDA17223C9385347C8B7C759897CD9202B"><enum>(11)</enum><text>Families that

			 receive child support are more likely to find and hold jobs, and less likely to

			 be poor than comparable families without child support.</text>

							</paragraph><paragraph id="ID740CD987393B4EBCB667A9758ECC113E"><enum>(12)</enum><text>The child

			 support program saved costs in the TANF, Medicaid, Food Stamps, Supplemental

			 Security Income, and subsidized housing programs.</text>

							</paragraph><paragraph id="ID50F6C6280E144C12BB761D0D3CF4C53C"><enum>(13)</enum><text>The

			 Congressional Budget Office estimates that the funding cuts proposed by the

			 Committee on Ways and Means of the House of Representatives would reduce child

			 support collections by nearly $7,900,000,000 in the next 5 years and

			 $24,100,000,000 in the next 10 years.</text>

							</paragraph><paragraph id="IDEA73BCC229D6493F9091DC02741DD21C"><enum>(14)</enum><text>That National

			 Governor’s Association has stated that such cuts are unduly burdensome and will

			 force States to reevaluate several services that make the child support program

			 so effective.</text>

							</paragraph><paragraph id="IDEAE7E3D2B5204214A2164C9BF3A9289A"><enum>(15)</enum><text>The Federal

			 Government has a moral responsibility to ensure that parents who do not live

			 with their children meet their financial support obligations for those

			 children.</text>

							</paragraph></subsection><subsection id="ID41D468CA4F0F48898EFED6E112F392C6"><enum>(b)</enum><header>Sense of the

			 Senate</header><text>It is the sense of the Senate that the Senate will not

			 accept any reduction in funding for the child support program established under

			 part D of title IV of the <act-name parsable-cite="SSA">Social Security

			 Act</act-name> (42 U.S.C. 651 et seq.), or any restrictions on the ability of

			 States to use Federal child support incentive payments for child support

			 program expenditures that are eligible for Federal matching payments, during

			 this Congress.</text>

						</subsection></section><section id="ID41851D1FAC6B483ABB27D514297514C3"><enum>6039B.</enum><header>Authority to

			 continue providing certain adult day health care services or medical adult day

			 care services</header><text display-inline="no-display-inline">The Secretary

			 shall not—</text>

						<paragraph id="IDF52685C8423D471CA5823BDCE08743E8"><enum>(1)</enum><text>withhold,

			 suspend, disallow, or otherwise deny Federal financial participation under

			 section 1903(a) of the <act-name parsable-cite="SSA">Social Security

			 Act</act-name> (42 U.S.C. 1396b(a)) for adult day health care services or

			 medical adult day care services, as defined under a State medicaid plan

			 approved on or before 1982, if such services are provided consistent with such

			 definition and the requirements of such plan; or</text>

						</paragraph><paragraph id="ID54CBC869498D44069A8EEBBE4AB8604A"><enum>(2)</enum><text>withdraw Federal

			 approval of any such State plan or part thereof regarding the provision of such

			 services.</text>

						</paragraph></section><section id="IDA85321476E2E4B01BDCB223051F6966A"><enum>6039C.</enum><header>Demonstration

			 project regarding Medicaid coverage of Low-Income HIV-infected

			 individuals</header>

						<subsection id="IDB1A39BC41EDD48AA88E49FDFF435F765"><enum>(a)</enum><header>Requirement To

			 Conduct Demonstration Project</header>

							<paragraph id="ID0489FD22635C4985925981D59E6EF736"><enum>(1)</enum><header>In

			 general</header><text>The Secretary shall establish a demonstration project

			 under which a State may apply under section 1115 of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C. 1315)

			 to provide medical assistance under a State medicaid program to HIV-infected

			 individuals described in subsection (b) in accordance with the provisions of

			 this section.</text>

							</paragraph><paragraph id="ID375E16EC409B49879B814D50ABF584B3"><enum>(2)</enum><header>Limitation on

			 number of approved applications</header><text>The Secretary shall only approve

			 as many State applications to provide medical assistance in accordance with

			 this section as will not exceed the limitation on aggregate payments under

			 subsection (d)(2)(A).</text>

							</paragraph><paragraph id="IDC690F00F9FE04FA7BE4A17ACFE2B17B1"><enum>(3)</enum><header>Authority to

			 waive restrictions on payments to territories</header><text>The Secretary shall

			 waive the limitations on payment under subsections (f) and (g) of section 1108

			 of the <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1308) in the case of a State that is subject to such limitations and submits an

			 approved application to provide medical assistance in accordance with this

			 section.</text>

							</paragraph></subsection><subsection id="ID345231CEE5AC46CA94698EE5C24199D5"><enum>(b)</enum><header>HIV-Infected

			 Individuals Described</header><text>For purposes of subsection (a),

			 HIV-infected individuals described in this subsection are individuals who are

			 not described in section 1902(a)(10)(A)(i) of the <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1396a(a)(10)(A)(i))—</text>

							<paragraph id="ID86DE0D4BDEE24BD8B14EEB97BDA85D8A"><enum>(1)</enum><text>who have HIV

			 infection;</text>

							</paragraph><paragraph id="IDBB584A339A24461F9B16278328AF4A96"><enum>(2)</enum><text>whose income (as

			 determined under the State Medicaid plan with respect to disabled individuals)

			 does not exceed 200 percent of the poverty line (as defined in section

			 2110(c)(5) of the <act-name parsable-cite="SSA">Social Security Act</act-name>

			 (42 U.S.C. 1397jj(c)(5)); and</text>

							</paragraph><paragraph id="ID593BDD0516EE4C598F136828F720929F"><enum>(3)</enum><text>whose resources

			 (as determined under the State Medicaid plan with respect to disabled

			 individuals) do not exceed the maximum amount of resources a disabled

			 individual described in section 1902(a)(10)(A)(i) of such Act may have and

			 obtain medical assistance under such plan.</text>

							</paragraph></subsection><subsection id="IDB0A76DEFB7DF4950B47CA8EA2C2E6328"><enum>(c)</enum><header>Length of

			 Period for Provision of Medical Assistance</header><text>A State shall not be

			 approved to provide medical assistance to an HIV-infected individual in

			 accordance with the demonstration project established under this section for a

			 period of more than 5 consecutive years.</text>

						</subsection><subsection id="ID4CC53394198042BB9D335B5A40CD2921"><enum>(d)</enum><header>Limitations on

			 Federal Funding</header>

							<paragraph id="ID69F493F4B8D5484B82CF97306C834C32"><enum>(1)</enum><header>Appropriation</header>

								<subparagraph id="IDA15089C92B314510BBE0B26F95E94216"><enum>(A)</enum><header>In

			 general</header><text>Out of any funds in the Treasury not otherwise

			 appropriated, there is appropriated to carry out this section, $450,000,000 for

			 the period of fiscal years 2006 through 2010.</text>

								</subparagraph><subparagraph id="ID6DB9E9F34363468D971A2A41F991092B"><enum>(B)</enum><header>Budget

			 authority</header><text>Subparagraph (A) constitutes budget authority in

			 advance of appropriations Act and represents the obligation of the Federal

			 Government to provide for the payment of the amounts appropriated under that

			 subparagraph.</text>

								</subparagraph></paragraph><paragraph id="IDEFF90536F0104D5A96652EF186F6E347"><enum>(2)</enum><header>Limitation on

			 payments</header><text>In no case may—</text>

								<subparagraph id="IDCEEC05EE096C47DFB510C845F6882406"><enum>(A)</enum><text>the aggregate

			 amount of payments made by the Secretary to eligible States under this section

			 exceed $450,000,000; or</text>

								</subparagraph><subparagraph id="IDA9D2DBBBDAD54BEAAB9C5D1E1855B372"><enum>(B)</enum><text>payments be

			 provided by the Secretary under this section after September 30, 2010.</text>

								</subparagraph></paragraph><paragraph id="ID476183A5E3CF4AA6B7D4FAE835D7CF02"><enum>(3)</enum><header>Funds allocated

			 to states</header><text>The Secretary shall allocate funds to States with

			 approved applications under this section based on their applications and the

			 availability of funds.</text>

							</paragraph><paragraph id="ID3F48BD45C0194C31A26041AE53EE7464"><enum>(4)</enum><header>Payments to

			 states</header><text>The Secretary shall pay to each State, from its allocation

			 under paragraph (3), an amount each quarter equal to the enhanced Federal

			 medical assistance percentage described in section 2105(b) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1397ee(b)) of expenditures in the quarter for medical assistance provided to

			 HIV-infected individuals who are eligible for such assistance under a State

			 Medicaid program in accordance with the demonstration project established under

			 this section.</text>

							</paragraph></subsection><subsection id="ID2297F77033F74A86899D6C0F7054F77A"><enum>(e)</enum><header>Evaluation and

			 Report</header>

							<paragraph id="ID334D26D16673496B908865CB1EE3D4F0"><enum>(1)</enum><header>Evaluation</header><text>The

			 Secretary shall conduct an evaluation of the demonstration project established

			 under this section. Such evaluation shall include an analysis of the

			 cost-effectiveness of the project and the impact of the project on the

			 Medicare, Medicaid, and Supplemental Security Income programs established under

			 titles XVIII, XIX, and XVI, respectively, of the <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C. 1395 et seq.,

			 1396 et seq., 1381 et seq.).</text>

							</paragraph><paragraph id="IDA857905E7DA045A3A645992F09FCF01B"><enum>(2)</enum><header>Report to

			 congress</header><text>Not later than December 31, 2010, the Secretary shall

			 submit a report to Congress on the results of the evaluation of the

			 demonstration project established under this section.</text>

							</paragraph></subsection><subsection id="IDD1B6825DA5124423A91463BB40664405"><enum>(f)</enum><header>Effective

			 Date</header><text>This section shall take effect on January 1, 2006.</text>

						</subsection></section><section id="IDCCFD030FA1464BDE8286B4E9188996B6"><enum>6039D.</enum><header>Additional

			 increase in rebate for single source and innovator multiple source

			 drugs</header><text display-inline="no-display-inline">Section

			 1927(c)(1)(B)(i)(VI) (42 U.S.C. 1396r–8(c)(1)(B)(i)(VI)), as added by section

			 6002(a)(3), is amended by striking <quote>17</quote> and inserting

			 <quote>17.8</quote>.</text>

					</section></chapter><chapter id="ID2D762E8AF70B4F4D814352F09D0711AA"><enum>5</enum><header>IMPROVING THE

			 MEDICAID AND STATE CHILDREN’S HEALTH INSURANCE PROGRAMS</header>

					<subchapter id="IDFEAAEC070FC34C96A4271B6559172F79"><enum>A</enum><header>Family

			 Opportunity Act</header>

						<section id="ID7828664E6A4F4FE3A18C64FD39815937"><enum>6041.</enum><header>Short title

			 of subchapter</header><text display-inline="no-display-inline">This subchapter

			 may be cited as the <quote>Family Opportunity Act of 2005</quote> or the

			 <quote>Dylan Lee James Act</quote>.</text>

						</section><section id="ID2A5EDDD23A9142A9A7624E6DBD699573"><enum>6042.</enum><header>Opportunity

			 for families of disabled children to purchase Medicaid coverage for Such

			 children</header>

							<subsection id="IDD19ABFCC41A34E35BDDC28CBB2FEA6E1"><enum>(a)</enum><header>State Option To

			 Allow Families of Disabled Children To Purchase Medicaid Coverage for Such

			 Children</header>

								<paragraph id="IDEEF6A41AE1084C2AAA80E163AFB4A102"><enum>(1)</enum><header>In

			 general</header><text>Section 1902 (42 U.S.C. 1396a) is amended—</text>

									<subparagraph id="IDE9B53BA50AE14FE893BF73F0CB4D6DE4"><enum>(A)</enum><text>in subsection

			 (a)(10)(A)(ii)—</text>

										<clause id="IDFED8847C9BC742589A21DC78F60A3035"><enum>(i)</enum><text>by

			 striking <quote>or</quote> at the end of subclause (XVII);</text>

										</clause><clause id="ID1D012E8FC78345ACB6AB08032C79E665"><enum>(ii)</enum><text>by

			 adding <quote>or</quote> at the end of subclause (XVIII); and</text>

										</clause><clause id="IDB28DBF059A844E2FA230AFD7EA86A830"><enum>(iii)</enum><text>by adding at

			 the end the following new subclause:</text>

											<quoted-block id="ID7C79958A0C4E4E0790C0209BA83E2437" style="OLC">

												<subclause id="IDAB23C2DBA07C4CAB81BEDBE4AF6E4150"><enum>(XIX)</enum><text>who are

				disabled children described in subsection

				(cc)(1);</text>

												</subclause><after-quoted-block>;

				and</after-quoted-block></quoted-block>

										</clause></subparagraph><subparagraph id="IDEA9465CE25BA487BA6336036409ADA40"><enum>(B)</enum><text>by adding at the

			 end the following new subsection:</text>

										<quoted-block id="IDFEB0CFD1F29B47DF83E680537326B8DD" style="OLC">

											<subsection id="IDDEE7460CD66A486D890DB64956810495"><enum>(cc)</enum><paragraph commented="no" display-inline="yes-display-inline" id="ID9524E3FF4921470B88D1E7EFB124546D"><enum>(1)</enum><text>Individuals described

				in this paragraph are individuals—</text>

													<subparagraph id="IDA16C63FB01BB42AEAEC2687E53A92F2B" indent="up1"><enum>(A)</enum><text>who are children who have not attained

				19 years of age and are born—</text>

														<clause id="IDC954D5B376744EBA9EF6028593C10600"><enum>(i)</enum><text>on or after January 1, 2002 (or, at

				the option of a State, on or after an earlier date), in the case of the second,

				third, and fourth quarters of fiscal year 2008;</text>

														</clause><clause id="ID9FC91623DCC948319EB250C6D41E4000"><enum>(ii)</enum><text>on or after October 1, 1996 (or,

				at the option of a State, on or after an earlier date), in the case of each

				quarter of fiscal year 2009; and</text>

														</clause><clause id="IDBDBFEE0684A94C858C64E24589BD78C1"><enum>(iii)</enum><text>after October 1, 1990, in the

				case of each quarter of fiscal year 2010 and each quarter of any fiscal year

				thereafter;</text>

														</clause></subparagraph><subparagraph id="ID4C832F91FB7742BF89676A928B1698C5" indent="up1"><enum>(B)</enum><text>who would be considered disabled under

				section 1614(a)(3)(C) but for having earnings or deemed income or resources (as

				determined under title XVI for children) that exceed the requirements for

				receipt of supplemental security income benefits; and</text>

													</subparagraph><subparagraph id="ID8E6BFCE1BACA4B3A848CC5FFA3C0B090" indent="up1"><enum>(C)</enum><text>whose family income does not exceed

				such income level as the State establishes and does not exceed—</text>

														<clause id="IDA3A6AD1CB8294BCC81E0478B92BCDCFB"><enum>(i)</enum><text>300 percent of the poverty line (as

				defined in section 2110(c)(5)) applicable to a family of the size involved;

				or</text>

														</clause><clause id="IDE1F4ED52CE3E4629A58269E76903BC75"><enum>(ii)</enum><text>such higher percent of such

				poverty line as a State may establish, except that—</text>

															<subclause id="ID9C3527D8AAB84E7E833DD660223F1DB3"><enum>(I)</enum><text>any medical assistance provided to an

				individual whose family income exceeds 300 percent of such poverty line may

				only be provided with State funds; and</text>

															</subclause><subclause id="ID7C7E96C1222641FA95A644E732E9BABF"><enum>(II)</enum><text>no Federal financial participation shall

				be provided under section 1903(a) for any medical assistance provided to such

				an

				individual.</text>

															</subclause></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

									</subparagraph></paragraph><paragraph id="ID178700E2DFD549C38A60437B74832916"><enum>(2)</enum><header>Interaction

			 with employer-sponsored family coverage</header><text>Section 1902(cc) (42

			 U.S.C. 1396a(cc)), as added by paragraph (1)(B), is amended by adding at the

			 end the following new paragraph:</text>

									<quoted-block id="ID66E4C672ACEE4964A637F9CCADA15F55" style="OLC">

										<paragraph id="IDE346A2592D4B459FB3FD99D6AD23C0CB" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDEE6DD6C0529044F0ADF270B5EC773EE8"><enum>(A)</enum><text>If an employer of a

				parent of an individual described in paragraph (1) offers family coverage under

				a group health plan (as defined in section 2791(a) of the

				<act-name parsable-cite="PHSA">Public Health Service Act</act-name>), the State

				shall—</text>

												<clause id="ID16A28508471D493CA6B9574AE4D0FF7D" indent="up1"><enum>(i)</enum><text>require such parent to apply for,

				enroll in, and pay premiums for such coverage as a condition of such parent’s

				child being or remaining eligible for medical assistance under subsection

				(a)(10)(A)(ii)(XIX) if the parent is determined eligible for such coverage and

				the employer contributes at least 50 percent of the total cost of annual

				premiums for such coverage; and</text>

												</clause><clause id="ID127636867DB64F609F33E5D89B042418" indent="up1"><enum>(ii)</enum><text>if such coverage is obtained—</text>

													<subclause id="IDF90CDF95B6CD4A62B8819531F1A93228"><enum>(I)</enum><text>subject to paragraph (2) of section

				1916(h), reduce the premium imposed by the State under that section in an

				amount that reasonably reflects the premium contribution made by the parent for

				private coverage on behalf of a child with a disability; and</text>

													</subclause><subclause id="IDE109BC90F09446ACB3A9B6F6D3FEF385"><enum>(II)</enum><text>treat such coverage as a third

				party liability under subsection (a)(25).</text>

													</subclause></clause></subparagraph><subparagraph id="ID4FFF1C5229CD4E46971C2FD00BDF5B57" indent="up1"><enum>(B)</enum><text>In the case of a parent to which

				subparagraph (A) applies, a State, subject to paragraph (1)(C)(ii), may provide

				for payment of any portion of the annual premium for such family coverage that

				the parent is required to pay. Any payments made by the State under this

				subparagraph shall be considered, for purposes of section 1903(a), to be

				payments for medical

				assistance.</text>

											</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

								</paragraph></subsection><subsection id="IDCB01A4AFAAB64CD6A64F53EAA3C8276B"><enum>(b)</enum><header>State Option To

			 Impose Income-Related Premiums</header><text>Section 1916 (42 U.S.C. 1396o) is

			 amended—</text>

								<paragraph id="IDFDD7293A0752461F8EB130A2C24DE693"><enum>(1)</enum><text>in subsection

			 (a), by striking <quote>subsection (g)</quote> and inserting <quote>subsections

			 (g) and (h)</quote>; and</text>

								</paragraph><paragraph id="ID2AF65799A24241B0BBB732C39FBE56BF"><enum>(2)</enum><text>by adding at the

			 end the following new subsection:</text>

									<quoted-block id="ID5248B1D6FB42438AA747A6E13E6015A2" style="OLC">

										<subsection id="ID76CAA1ADBE3943C6B5A60640FCF4A2C9"><enum>(h)</enum><paragraph commented="no" display-inline="yes-display-inline" id="ID4B0D2DD026234943893EC9B7E7648062"><enum>(1)</enum><text>With respect to

				disabled children provided medical assistance under section

				1902(a)(10)(A)(ii)(XIX), subject to paragraph (2), a State may (in a uniform

				manner for such children) require the families of such children to pay monthly

				premiums set on a sliding scale based on family income.</text>

											</paragraph><paragraph id="ID157427B2AFE7491FAFCC71CD2F15379B" indent="up1"><enum>(2)</enum><text>A premium requirement imposed under

				paragraph (1) may only apply to the extent that—</text>

												<subparagraph id="ID29F24DA2A25D4F8DAFE575897C9476F3"><enum>(A)</enum><text>in the case of a disabled child

				described in that paragraph whose family income—</text>

													<clause id="ID0C8EAE38724144CD9D982FB17DC3D646"><enum>(i)</enum><text>does not exceed 200 percent of the

				poverty line, the aggregate amount of such premium and any premium that the

				parent is required to pay for family coverage under section 1902(cc)(2)(A)(i)

				and other cost-sharing charges do not exceed 5 percent of the family’s income;

				and</text>

													</clause><clause id="ID9F80E7962A684A0EAF67D615CAE5240D"><enum>(ii)</enum><text>exceeds 200, but does not exceed

				300, percent of the poverty line, the aggregate amount of such premium and any

				premium that the parent is required to pay for family coverage under section

				1902(cc)(2)(A)(i) and other cost-sharing charges do not exceed 7.5 percent of

				the family’s income; and</text>

													</clause></subparagraph><subparagraph id="ID62E5668ABA024FB3AA06FBFC6C2F8563"><enum>(B)</enum><text>the requirement is imposed consistent

				with section 1902(cc)(2)(A)(ii)(I).</text>

												</subparagraph></paragraph><paragraph id="IDBDB51999AECC44EFA213968BDD897D2F" indent="up1"><enum>(3)</enum><text>A State shall not require prepayment

				of a premium imposed pursuant to paragraph (1) and shall not terminate

				eligibility of a child under section 1902(a)(10)(A)(ii)(XIX) for medical

				assistance under this title on the basis of failure to pay any such premium

				until such failure continues for a period of at least 60 days from the date on

				which the premium became past due. The State may waive payment of any such

				premium in any case where the State determines that requiring such payment

				would create an undue

				hardship.</text>

											</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

								</paragraph></subsection><subsection id="IDC8B9171503C2455CA7C5357611F702B0"><enum>(c)</enum><header>Conforming

			 Amendments</header><paragraph commented="no" display-inline="yes-display-inline" id="ID27F7572B0B6B44CF8D7F07CBCF364109"><enum>(1)</enum><text>Section 1903(f)(4) (42

			 U.S.C. 1396b(f)(4)) is amended in the matter preceding subparagraph (A), by

			 inserting <quote>1902(a)(10)(A)(ii)(XIX),</quote> after

			 <quote>1902(a)(10)(A)(ii)(XVIII),</quote>.</text>

								</paragraph><paragraph id="ID0B2E2BAB7EDB4605B0F03C1104BE602A" indent="up1"><enum>(2)</enum><text>Section 1905(u)(2)(B) (42 U.S.C.

			 1396d(u)(2)(B)) is amended by adding at the end the following sentence:

			 <quote>Such term excludes any child eligible for medical assistance only by

			 reason of section 1902(a)(10)(A)(ii)(XIX).</quote>.</text>

								</paragraph></subsection><subsection id="ID5FF1F9C405A44D2A9E88E83A9B7DF330"><enum>(d)</enum><header>Effective

			 Date</header><text>The amendments made by this section shall apply to medical

			 assistance for items and services furnished on or after January 1, 2008.</text>

							</subsection></section><section id="ID5C5E3D542F044FEC8E18DF8BC46080C3"><enum>6043.</enum><header>Demonstration

			 projects regarding home and community-based alternatives to psychiatric

			 residential treatment facilities for children</header>

							<subsection id="ID3749373D88A643B0AA708D91461FD550"><enum>(a)</enum><header>In

			 General</header><text>The Secretary is authorized to conduct, during each of

			 fiscal years 2007 through 2011, demonstration projects (each in the section

			 referred to as a <quote>demonstration project</quote>) in accordance with this

			 section under which up to 10 States (as defined for purposes of title XIX of

			 the <act-name parsable-cite="SSA">Social Security Act</act-name>) are awarded

			 grants, on a competitive basis, to test the effectiveness in improving or

			 maintaining a child’s functional level and cost-effectiveness of providing

			 coverage of home and community-based alternatives to psychiatric residential

			 treatment for children enrolled in the Medicaid program under title XIX of such

			 Act.</text>

							</subsection><subsection id="IDDB29201888B641CBA8CD705F89CF3F29"><enum>(b)</enum><header>Application of

			 Terms and Conditions</header>

								<paragraph id="ID811C5D3C8D144ADFB144FE9FF5EED92D"><enum>(1)</enum><header>In

			 general</header><text>Subject to the provisions of this section, for the

			 purposes of the demonstration projects, and only with respect to children

			 enrolled under such demonstration projects, a psychiatric residential treatment

			 facility (as defined in section 483.352 of title 42 of the Code of Federal

			 Regulations) shall be deemed to be a facility specified in section 1915(c) of

			 the <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1396n(c)), and to be included in each reference in such section 1915(c) to

			 hospitals, nursing facilities, and intermediate care facilities for the

			 mentally retarded.</text>

								</paragraph><paragraph id="ID59320C75425E427798F641DEFB12B8E2"><enum>(2)</enum><header>State option to

			 assure continuity of medicaid coverage</header><text>Upon the termination of a

			 demonstration project under this section, the State that conducted the project

			 may elect, only with respect to a child who is enrolled in such project on the

			 termination date, to continue to provide medical assistance for coverage of

			 home and community-based alternatives to psychiatric residential treatment for

			 the child in accordance with section 1915(c) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1396n(c)), as modified through the application of paragraph (1). Expenditures

			 incurred for providing such medical assistance shall be treated as a home and

			 community-based waiver program under section 1915(c) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1396n(c)) for purposes of payment under section 1903 of such Act (42 U.S.C.

			 1396b).</text>

								</paragraph></subsection><subsection id="IDF34634E923544BA583E813C4179977C5"><enum>(c)</enum><header>Terms of

			 Demonstration Projects</header>

								<paragraph id="ID41A9673F8CD948189D25FD9A47E99B50"><enum>(1)</enum><header>In

			 general</header><text>Except as otherwise provided in this section, a

			 demonstration project shall be subject to the same terms and conditions as

			 apply to a waiver under section 1915(c) of the <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C. 1396n(c)),

			 including the waiver of certain requirements under the first sentence of

			 paragraph (3) of such section but not applying the second sentence of such

			 paragraph.</text>

								</paragraph><paragraph id="ID68B167E5BF8942ADA8D39396FB5C764C"><enum>(2)</enum><header>Budget

			 neutrality</header><text>In conducting the demonstration projects under this

			 section, the Secretary shall ensure that the aggregate payments made by the

			 Secretary under title XIX of the <act-name parsable-cite="SSA">Social Security

			 Act</act-name> (42 U.S.C. 1396 et seq.) do not exceed the amount which the

			 Secretary estimates would have been paid under that title if the demonstration

			 projects under this section had not been implemented.</text>

								</paragraph><paragraph id="ID84D4D71F584049CAAFD94CA40648F633"><enum>(3)</enum><header>Evaluation</header><text>The

			 application for a demonstration project shall include an assurance to provide

			 for such interim and final evaluations of the demonstration project by

			 independent third parties, and for such interim and final reports to the

			 Secretary, as the Secretary may require.</text>

								</paragraph></subsection><subsection id="ID30E27FA6A5F64C12A75F05B87BF247F4"><enum>(d)</enum><header>Payments to

			 States; Limitations to Scope and Funding</header>

								<paragraph id="ID6A3D0BE21A384506B6E0B6771593B18B"><enum>(1)</enum><header>In

			 general</header><text>Subject to paragraph (2), a demonstration project

			 approved by the Secretary under this section shall be treated as a home and

			 community-based waiver program under section 1915(c) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1396n(c)) for purposes of payment under section 1903 of such Act (42 U.S.C.

			 1396b).</text>

								</paragraph><paragraph id="ID3968CBF72718412B87F01B8E957FF3BF"><enum>(2)</enum><header>Limitation</header><text>In

			 no case may the amount of payments made by the Secretary under this section for

			 State demonstration projects for a fiscal year exceed the amount available

			 under subsection (f)(2)(A) for such fiscal year.</text>

								</paragraph></subsection><subsection id="ID553C17C1E2F24EC88E8186BF3EE5B978"><enum>(e)</enum><header>Secretary’s

			 Evaluation and Report</header><text>The Secretary shall conduct an interim and

			 final evaluation of State demonstration projects under this section and shall

			 report to the President and Congress the conclusions of such evaluations within

			 12 months of completing such evaluations.</text>

							</subsection><subsection id="IDF2B4241EBB59469C8553C73CD664566C"><enum>(f)</enum><header>Funding</header>

								<paragraph id="ID38429F950AE042A497DB882632BA275B"><enum>(1)</enum><header>In

			 general</header><text>For the purpose of carrying out this section, there are

			 appropriated, from amounts in the Treasury not otherwise appropriated, for

			 fiscal years 2007 through 2011, a total of $218,000,000, of which—</text>

									<subparagraph id="IDBABC2D4F522D42279C6A8B79E4EF6025"><enum>(A)</enum><text>the amount

			 specified in paragraph (2) shall be available for each of fiscal years 2007

			 through 2011; and</text>

									</subparagraph><subparagraph id="IDA8C4850A408947448A1EE7D56F7C07CF"><enum>(B)</enum><text>a total of

			 $1,000,000 shall be available to the Secretary for the evaluations and report

			 under subsection (e).</text>

									</subparagraph></paragraph><paragraph id="ID0F64CBB1BD30419E9AAAFE8B382AD42C"><enum>(2)</enum><header>Fiscal year

			 limit</header>

									<subparagraph id="IDE1383B5178E14DB1A471A2CC67BBB570"><enum>(A)</enum><header>In

			 general</header><text>For purposes of paragraph (1), the amount specified in

			 this paragraph for a fiscal year is the amount specified in subparagraph (B)

			 for the fiscal year plus the difference, if any, between the total amount

			 available under this paragraph for prior fiscal years and the total amount

			 previously expended under paragraph (1)(A) for such prior fiscal years.</text>

									</subparagraph><subparagraph id="ID61BE249E4B8A44E9AB4EDA774EB6DA23"><enum>(B)</enum><header>Fiscal year

			 amounts</header><text>The amount specified in this subparagraph for—</text>

										<clause id="ID7E343EF0A91B490FAA4C2603E5A4CEEF"><enum>(i)</enum><text>fiscal year 2007

			 is $21,000,000;</text>

										</clause><clause id="IDB005336BBCD74EDF97CBEBF54259D3C9"><enum>(ii)</enum><text>fiscal year 2008

			 is $37,000,000;</text>

										</clause><clause id="ID85C3FCE452294DF6A0CA876A8146C3FF"><enum>(iii)</enum><text>fiscal year

			 2009 is $49,000,000;</text>

										</clause><clause id="IDAC78904271F0410BB7B17315DF84214A"><enum>(iv)</enum><text>fiscal year 2010

			 is $53,000,000; and</text>

										</clause><clause id="ID23CE5296A2124ACCA3CCAB02395F3C0F"><enum>(v)</enum><text>fiscal year 2011

			 is $57,000,000.</text>

										</clause></subparagraph></paragraph></subsection></section><section id="ID2573AB51771542F8B96CAC8B00EDA958"><enum>6044.</enum><header>Development

			 and support of family-to-family health information Centers</header><text display-inline="no-display-inline">Section 501 (42 U.S.C. 701) is amended by

			 adding at the end the following new subsection:</text>

							<quoted-block id="ID8A9A6E77F3374D34B0B8FED0343372C5" style="OLC">

								<subsection id="ID0809A76FD2F94645A2B4221A54823546"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="IDC5B9CFD1CFCC456E9ECC154AA165AC4B"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDA92B68545B9D415381508C92DF04E150"><enum>(A)</enum><text>For the purpose of

				enabling the Secretary (through grants, contracts, or otherwise) to provide for

				special projects of regional and national significance for the development and

				support of family-to-family health information centers described in paragraph

				(2)—</text>

											<clause id="ID16FE12384B5E4C9F9E3F0B0BB3379F7B" indent="up2"><enum>(i)</enum><text>there is appropriated to the

				Secretary, out of any money in the Treasury not otherwise appropriated—</text>

												<subclause id="ID646A3EDACC8D4DBB85429231AFB267EA"><enum>(I)</enum><text>$3,000,000 for fiscal year

				2007;</text>

												</subclause><subclause id="IDBCB89A7A2C0F4D6CB0CAAC31D668D43E"><enum>(II)</enum><text>$4,000,000 for fiscal year 2008;

				and</text>

												</subclause><subclause id="ID7BD1B2ED81154C77B2CF9991E0848C3C"><enum>(III)</enum><text>$5,000,000 for fiscal year 2009;

				and</text>

												</subclause></clause><clause id="ID3DBDA66ABB2347018ACFBFF4B2676167" indent="up2"><enum>(ii)</enum><text>there is authorized to be

				appropriated to the Secretary, $5,000,000 for each of fiscal years 2010 and

				2011.</text>

											</clause></subparagraph><subparagraph id="ID7BFFAA096F9F4B82AD86E4B3470321A3" indent="up2"><enum>(B)</enum><text>Funds appropriated or authorized to

				be appropriated under subparagraph (A) shall—</text>

											<clause id="ID17D4AB1C9C5741E894E7340FE187B12E"><enum>(i)</enum><text>be in addition to amounts appropriated

				under subsection (a) and retained under section 502(a)(1) for the purpose of

				carrying out activities described in subsection (a)(2); and</text>

											</clause><clause id="IDA82E442B11CA412F89EE59158EBBDC36"><enum>(ii)</enum><text>remain available until

				expended.</text>

											</clause></subparagraph></paragraph><paragraph id="ID1469CF343BCB47B090AE0CD9E4442ADB" indent="up1"><enum>(2)</enum><text>The family-to-family health

				information centers described in this paragraph are centers that—</text>

										<subparagraph id="ID3120F185F17A457A8195D62693961E24"><enum>(A)</enum><text>assist families of children with

				disabilities or special health care needs to make informed choices about health

				care in order to promote good treatment decisions, cost-effectiveness, and

				improved health outcomes for such children;</text>

										</subparagraph><subparagraph id="IDF4600C286F174134B646BC9CBD15EFC9"><enum>(B)</enum><text>provide information regarding the

				health care needs of, and resources available for, such children;</text>

										</subparagraph><subparagraph id="IDBCAC9F1B12894E2FA7F34C14038F5F97"><enum>(C)</enum><text>identify successful health delivery

				models for such children;</text>

										</subparagraph><subparagraph id="ID29AE28B2E9554696893E258A010BEBFD"><enum>(D)</enum><text>develop with representatives of health

				care providers, managed care organizations, health care purchasers, and

				appropriate State agencies, a model for collaboration between families of such

				children and health professionals;</text>

										</subparagraph><subparagraph id="ID70E8C8A4717B445399D5F4868F3E86FA"><enum>(E)</enum><text>provide training and guidance

				regarding caring for such children;</text>

										</subparagraph><subparagraph id="ID2AD08B7AB37047AFBB7A4EFEB97C9050"><enum>(F)</enum><text>conduct outreach activities to the

				families of such children, health professionals, schools, and other appropriate

				entities and individuals; and</text>

										</subparagraph><subparagraph id="ID1C8FC5B09A3F4D8BB056B4E97A60FBDD"><enum>(G)</enum><text>are staffed—</text>

											<clause id="IDD72D9D9EC4864C2FAD5EE00228828EDA"><enum>(i)</enum><text>by such families who have expertise

				in Federal and State public and private health care systems; and</text>

											</clause><clause id="ID0BF9166516BA4E69A602C57681F0D68F"><enum>(ii)</enum><text>by health professionals.</text>

											</clause></subparagraph></paragraph><paragraph id="IDF0FCA7EDE9004D33A0B0E1D306B3A08F" indent="up1"><enum>(3)</enum><text>The Secretary shall develop

				family-to-family health information centers described in paragraph (2) in

				accordance with the following:</text>

										<subparagraph id="IDCD79A1A0ACE1437AA778525803238493"><enum>(A)</enum><text>With respect to fiscal year 2007, such

				centers shall be developed in not less than 25 States.</text>

										</subparagraph><subparagraph id="ID0C6A5E0D56C34F18A6019BC13D7A7E31"><enum>(B)</enum><text>With respect to fiscal year 2008, such

				centers shall be developed in not less than 40 States.</text>

										</subparagraph><subparagraph id="ID166B89DA86CE42F2843838A66E162129"><enum>(C)</enum><text>With respect to fiscal year 2009 and

				each fiscal year thereafter, such centers shall be developed in all

				States.</text>

										</subparagraph></paragraph><paragraph id="ID799820B2E9EB487E8C148C54DF01E572" indent="up1"><enum>(4)</enum><text>The provisions of this title that are

				applicable to the funds made available to the Secretary under section 502(a)(1)

				apply in the same manner to funds made available to the Secretary under

				paragraph (1)(A).</text>

									</paragraph><paragraph id="IDC1225B44A6304D35A65D62345EE775BD" indent="up1"><enum>(5)</enum><text>For purposes of this subsection, the

				term <term>State</term> means each of the 50 States and the District of

				Columbia.</text>

									</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

						</section><section id="ID140F71D4C7D244EFAAF18F2CA2291381"><enum>6045.</enum><header>Restoration

			 of Medicaid eligibility for certain SSI beneficiaries</header>

							<subsection id="IDD022D01D1B4545EC8C61238ED1B6D91F"><enum>(a)</enum><header>In

			 General</header><text>Section 1902(a)(10)(A)(i)(II) (42 U.S.C.

			 1396a(a)(10)(A)(i)(II)) is amended—</text>

								<paragraph id="ID9F5760AC6FE24E2E855D35A25131AA77"><enum>(1)</enum><text>by inserting

			 <quote>(aa)</quote> after <quote>(II)</quote>;</text>

								</paragraph><paragraph id="ID67309165EC4C4A049A9A5860EF2C4C8B"><enum>(2)</enum><text>by striking

			 <quote>) and</quote> and inserting <quote>and</quote>;</text>

								</paragraph><paragraph id="ID61977F4564D9415A8FB4FB59D8562B72"><enum>(3)</enum><text>by striking

			 <quote>section or who are</quote> and inserting <quote>section), (bb) who

			 are</quote>; and</text>

								</paragraph><paragraph id="ID0544FE65C17048F1B636F1133A562698"><enum>(4)</enum><text>by inserting

			 before the comma at the end the following: <quote>, or (cc) who are under 21

			 years of age and with respect to whom supplemental security income benefits

			 would be paid under title XVI if subparagraphs (A) and (B) of section

			 1611(c)(7) were applied without regard to the phrase <quote>the first day of

			 the month following</quote></quote>.</text>

								</paragraph></subsection><subsection id="ID57B588131FD3416A976F7AB489D56EF2"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendments made by subsection (a) shall apply to medical

			 assistance for items and services furnished on or after the date that is 1 year

			 after the date of enactment of this Act.</text>

							</subsection></section></subchapter><subchapter id="IDCBB4CB9ED8AD4C23BA4C11A1182C8A70"><enum>B</enum><header>State Children’s

			 Health Insurance Program</header>

						<section id="ID5270B2B1E24646699D8F6B90F6645F93"><enum>6051.</enum><header>Rules for

			 availability, redistribution, and extended availability of allotments for

			 fiscal years 2003, 2004, and 2005</header>

							<subsection id="ID7DB23147A1F74DFAA57A4FCAAA166236"><enum>(a)</enum><header>In

			 General</header><text>Section 2104 (42 U.S.C. 1397dd) is amended—</text>

								<paragraph id="ID10F09D1567E746168ADD11AA46C0E6E8"><enum>(1)</enum><text>by amending

			 subsection (e) to read as follows:</text>

									<quoted-block id="ID909B01E2A67649D599CBDE8BD29029E8" style="OLC">

										<subsection id="IDEC84239995DB474C851FB5268321C4F1"><enum>(e)</enum><header>Availability of

				Amounts Allotted</header>

											<paragraph id="ID5A8C47F9B2BB4B08B333801F1B2CCDF3"><enum>(1)</enum><header>In

				general</header><text>Except as provided in paragraph (2), amounts allotted to

				a State pursuant to this section—</text>

												<subparagraph id="IDD371EEE15BEF4093ADDA5ECBE54E2102"><enum>(A)</enum><text>for each of

				fiscal years 1998 through 2003, and for fiscal year 2006 and each fiscal year

				thereafter, shall remain available for expenditure by the State through the end

				of the second succeeding fiscal year; and</text>

												</subparagraph><subparagraph id="IDF4956CEA188F4E8B9AE1C1F50673F21F"><enum>(B)</enum><text>for each of

				fiscal years 2004 and 2005, shall remain available for expenditure by the State

				during the initial availability period (as defined in paragraph (3)(A)).</text>

												</subparagraph></paragraph><paragraph id="ID7C7043179D8C4510B75D98D6A188F8E9"><enum>(2)</enum><header>Availability of

				reallotments, redistributed amounts, and extended availability</header>

												<subparagraph id="ID226E35E1F79F4C32955007CB69DCB476"><enum>(A)</enum><header>In

				general</header><text>Amounts reallotted to a State under subsection (f) shall

				be available for expenditure by the State through the end of the fiscal year in

				which they are reallotted.</text>

												</subparagraph><subparagraph id="IDDC885D9BFDA742AD952BC95CF3ECB19F"><enum>(B)</enum><header>Availability of

				redistributed funds and extended availability</header><text>Amounts

				redistributed to a State under subsection (i)(3) or (j)(3) and unused

				allotments of a State extended under subsection (i)(4) or (j)(4) are available

				for expenditure by the State during the redistribution/extension period (as

				defined in paragraph (3)(B)).</text>

												</subparagraph></paragraph><paragraph id="IDAEA80E4B87DF47539FD22935EDC6E629"><enum>(3)</enum><header>Periods

				defined</header><text>For purposes of this section:</text>

												<subparagraph id="ID27E335E0A8514C81B9003ECE44624930"><enum>(A)</enum><header>Initial

				availability period</header><text>The term <term>initial availability

				period</term> means, with respect to allotments for a fiscal year, the 2-fiscal

				year period beginning with that fiscal year.</text>

												</subparagraph><subparagraph id="IDEEC1996E14254FC38A4601ADE4CA64A2"><enum>(B)</enum><header>Redistribution/extension

				period</header><text>The term <term>redistribution/extension period</term>

				means, with respect to allotments for a fiscal year, the second year following

				that fiscal year.</text>

												</subparagraph></paragraph></subsection><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</paragraph><paragraph id="ID2BBDCB5AF0564EB3884FF1B8A5ECD864"><enum>(2)</enum><text>by adding at the

			 end the following new subsections:</text>

									<quoted-block id="ID54CA87362DEC42868B31CFA5B7753531" style="OLC">

										<subsection id="ID52CF1CD649EE492C98C35FF2602DF2C3"><enum>(h)</enum><header>Rule for

				Redistribution of Fiscal Year 2003 Allotments</header>

											<paragraph id="IDC3584637DC9A45F69D70904FEFC7ED94"><enum>(1)</enum><header>Computation of

				unexpended allotments for fiscal year 2003</header><text>The Secretary shall

				determine—</text>

												<subparagraph id="IDCAD3F72D0E47469CA2D537FF02D6503D"><enum>(A)</enum><text>the amount of

				each State’s allotment under this section for fiscal year 2003 that was not

				expended by the end of fiscal year 2005; and</text>

												</subparagraph><subparagraph id="IDB63306AA1005438E954C5D72786FA3A4"><enum>(B)</enum><text>the total of the

				unexpended allotments determined under subparagraph (A).</text>

												</subparagraph></paragraph><paragraph id="ID7F305EAE6E3D4FDC95AEEDE6E1797154"><enum>(2)</enum><header>Determination

				of initial projected shortfalls for fiscal year 2006</header><text>For each

				State that receives an allotment for fiscal year 2006 under subsection (b), the

				Secretary shall determine the following:</text>

												<subparagraph id="ID26D3DC878E8746D098C89FB8FE246684"><enum>(A)</enum><header>Fiscal year

				2005 carryover</header><text>The amount of the State’s allotment for 2005 that

				was not expended in fiscal year 2005.</text>

												</subparagraph><subparagraph id="ID8B9DE2D179D949E784C7548B2B38F88A"><enum>(B)</enum><header>Projected

				expenditures for fiscal year 2006</header><text>The estimated expenditures for

				the State as would be reported as quarterly expenditures under section 2105(a)

				for quarters in fiscal year 2006.</text>

												</subparagraph><subparagraph id="IDF914D66E44D545559525069AB63631B5"><enum>(C)</enum><header>Initial

				projected shortfall for fiscal year 2006</header><text>The amount, if any, by

				which the projected expenditures determined under subparagraph (B) for the

				State for quarters in fiscal year 2006 exceeds the sum of the following:</text>

													<clause id="ID7B6D261A3FAB43AC8F92B48CFED6AD05"><enum>(i)</enum><header>Fiscal year

				2005 carryover</header><text>The amount determined under subparagraph (A) for

				the State.</text>

													</clause><clause id="ID334DB71FCED44279810BFD074B62312E"><enum>(ii)</enum><header>Fiscal year

				2006 allotment</header><text>The amount of the State’s allotment for fiscal

				year 2006.</text>

													</clause></subparagraph><subparagraph id="ID56BFAF2FB46E44078AC798B4263B19CB"><enum>(D)</enum><header>State’s

				proportion of aggregate shortfall</header><text>For each State for which there

				is an excess determined under subparagraph (C), the ratio of—</text>

													<clause id="ID6ED0FF1EBC3B4BD2AEF0C827ACEF8608"><enum>(i)</enum><text>the amount of

				such excess; to</text>

													</clause><clause id="IDDAE56FB9AE804B53AF6E62653D7526F5"><enum>(ii)</enum><text>the total of

				such excesses determined for all States with such an excess.</text>

													</clause></subparagraph></paragraph><paragraph id="ID7580C4F621064D25B3D4DA2F46324FBF"><enum>(3)</enum><header>Redistribution

				of unexpended allotments for fiscal year 2003</header><text>From the total of

				the unexpended allotments for fiscal year 2003 determined under paragraph

				(1)(B) the Secretary shall redistribute under subsection (f) the

				following:</text>

												<subparagraph id="IDA9FC5AC3AD09496B9C8442DC38A0FBAE"><enum>(A)</enum><header>States other

				than territories</header><text>There shall be redistributed to each State for

				which there is an excess determined under paragraph (2)(C) an amount equal to

				the product of the following:</text>

													<clause id="IDBD178B47B7784799A41A6630C01B8299"><enum>(i)</enum><header>State

				redistribution pool</header><text>The amount determined under paragraph (1)(B),

				reduced by the total amount redistributed under subparagraph (B).</text>

													</clause><clause id="IDBA594A2BA95C49C4817F5224F4DAB2FF"><enum>(ii)</enum><header>State’s

				shortfall proportion</header><text>The ratio described in paragraph (2)(D) for

				that State.</text>

													</clause></subparagraph><subparagraph id="ID8244380EB29E4CDB82D3F4DA1FBF5D40"><enum>(B)</enum><header>Territories</header><text>There

				shall be redistributed to each commonwealth or territory described in

				subsection (c)(3) an amount equal to the product of the following:</text>

													<clause id="ID695F1D52CECE4FCCB0E81657AF96B8CC"><enum>(i)</enum><header>Territorial

				redistribution pool</header><text>1.05 percent of the amount determined under

				paragraph (1)(B).</text>

													</clause><clause id="ID42ADC56CB4A044B49859CA0E6E9F473E"><enum>(ii)</enum><header>Territorial

				proportion</header><text>The ratio of—</text>

														<subclause id="ID850FB26C76CF4A93BC062E0654A67629"><enum>(I)</enum><text>the allotment for

				fiscal year 2003 for such commonwealth or territory under subsection (c),

				to</text>

														</subclause><subclause id="ID484D36BFCBDC4D79AA57D07CBC6A324C"><enum>(II)</enum><text>the total of all

				such allotments for such fiscal year for such commonwealths or territories

				under such subsection.</text>

														</subclause></clause></subparagraph></paragraph><paragraph id="ID562854B4DBE4473DAA39CF835619838B"><enum>(4)</enum><header>Determination

				of amounts</header><text>For purposes of calculating the amounts described

				in—</text>

												<subparagraph id="IDC7C817307D53435F85515FD9A9D68CE5"><enum>(A)</enum><text>paragraphs (1)

				and (2)(A), the Secretary shall use the amounts reported by the States not

				later than November 30, 2005, on Form CMS–64 or Form CMS–21, as the case may

				be, as approved by the Secretary; and</text>

												</subparagraph><subparagraph id="IDDBCFAC0711324B00AF75DD429303CC7A"><enum>(B)</enum><text>paragraph (2)(B),

				the Secretary shall use the amounts reported by the States not later than

				September 30, 2005, on Form CMS–37 or Form CMS–21B, as the case may be, as

				approved by the Secretary.</text>

													<clause id="IDC2506653E988441BB2FB09F7D6DE90A6" indent="up3"><enum>(i)</enum><header>Redistribution and Extension of

				Availability of Unused Allotments for Fiscal Year

				2004</header><text>Notwithstanding subsection (f):</text>

													</clause></subparagraph></paragraph><paragraph id="ID1934E22817B249EFBBE7D3517416FDD7"><enum>(1)</enum><header>Computation of

				unexpended allotments for fiscal year 2004</header>

												<subparagraph id="ID74F1BDD06D344915ACBB4270C300F923"><enum>(A)</enum><header>In

				general</header><text>The Secretary shall determine with respect to each State

				that receives an allotment for fiscal year 2004 under subsection (b)—</text>

													<clause id="IDA8DFE07C9EFD437DBB2B040AC0A22D27"><enum>(i)</enum><text>the amount of the

				State’s allotment for such fiscal year that was not expended by the end of

				fiscal year 2005; and</text>

													</clause><clause id="ID25F2FD1FB0E84FEBB808EE4587FF00BF"><enum>(ii)</enum><text>the total of the

				unexpended allotments determined under clause (i).</text>

													</clause></subparagraph><subparagraph id="ID6628E939988C4980B2B917090A4AC8F2"><enum>(B)</enum><header>Reduction of

				unexpended allotment by net fiscal year 2006 shortfall</header>

													<clause id="ID0B7D1C72124B455BB9EA13F58D303456"><enum>(i)</enum><header>In

				general</header><text>In the case of a State described in clause (ii), the

				Secretary shall reduce, but not below 0, the amount determined for the State

				under subparagraph (A)(i) (relating to the State’s unexpended allotment for

				fiscal year 2004) by the amount of the allotment of the State for which

				availability is extended under paragraph (4)(A).</text>

													</clause><clause id="ID75CF45FB34E64F5D9EB3E914F07889D6"><enum>(ii)</enum><header>State

				described</header><text>A State described in this clause is a State that meets

				the following requirements:</text>

														<subclause id="ID5501CFC912994F6FAA2C9A5D21C373E7"><enum>(I)</enum><header>Fully spent

				fiscal year 2003 allotment</header><text>The State’s allotment under this

				section for fiscal year 2003 was fully expended by the end of fiscal year

				2005.</text>

														</subclause><subclause id="ID9E794383A8B14D7C98D88D1CEC78B245"><enum>(II)</enum><header>Did not fully

				expend fiscal year 2004 allotment by end of fiscal year 2005</header><text>The

				State’s allotment under this section for fiscal year 2004 was not fully

				expended by the end of fiscal year 2005.</text>

														</subclause><subclause id="IDA9A62BA4C0294546AB630975D79CBD68"><enum>(III)</enum><header>Projected

				fiscal year 2006 shortfall</header><text>The State has an excess determined

				under subsection (h)(2)(C) (relating to initial projected fiscal year 2006

				shortfall).</text>

														</subclause></clause></subparagraph><subparagraph id="ID713C5CDFE29F49D8A815F300759B9B70"><enum>(C)</enum><header>Totals and

				ratios</header><text>The Secretary shall determine the following:</text>

													<clause id="ID8239DCBA139C4D629102FB82B3C7305D"><enum>(i)</enum><header>Redistribution

				pool</header><text>A redistribution pool equal to the total of the amounts

				determined under subparagraph (A)(i), as reduced (if applicable) under

				subparagraph (B)(i).</text>

													</clause><clause id="ID9EA58CFED57043158BCFB577BCA12CE2"><enum>(ii)</enum><header>State

				proportion toward redistribution pool</header><text>For each State in which the

				amount determined under subparagraph (A)(i) (as reduced, if applicable, under

				subparagraph (B)(i)) exceeds 0, the ratio of—</text>

														<subclause id="ID04B6A53C505340079B1F95D5620CA5FB"><enum>(I)</enum><text>such amount (as

				so reduced) for the State; to</text>

														</subclause><subclause id="ID9F0065799C0C4488861901EBD54DA582"><enum>(II)</enum><text>the total

				determined under clause (i).</text>

														</subclause></clause></subparagraph><subparagraph id="ID8DA93C9E1A01452B9D50A4B3F69DDBAA"><enum>(D)</enum><header>Amount of

				unexpended fiscal year 2004 allotment applied to

				redistributions</header><text>For each State described in subparagraph (C)(ii),

				the Secretary shall determine a redistribution/reduction amount equal to the

				product of the following:</text>

													<clause id="IDFFFE0FA6E5184E9A91CB663C61D9BF1D"><enum>(i)</enum><header>Total amount

				redistributed</header><text>The total amount redistributed under paragraph

				(3).</text>

													</clause><clause id="IDA5D8677BD1314C6CA2D8831A7B4E53FA"><enum>(ii)</enum><header>State’s

				proportion of unexpended allotments</header><text>The ratio for the State

				determined under subparagraph (C)(ii).</text>

													</clause></subparagraph></paragraph><paragraph id="ID6487F375B59B46AAA3B0B8CE5A423E1F"><enum>(2)</enum><header>Determination

				of net projected shortfalls for fiscal year 2006</header><text>For each State

				that has an excess determined under subsection (h)(2)(C) (relating to initial

				projected fiscal year 2006 shortfall), the Secretary shall determine an amount

				equal to the amount determined under such subsection, reduced by the sum

				of—</text>

												<subparagraph id="ID836EEA32DDB94802A89BECFE6FDB51F0"><enum>(A)</enum><text>the amount

				redistributed to the State under subsection (h)(3)(A), and</text>

												</subparagraph><subparagraph id="IDECC31CA7F74D4D32A6EA999318E11E66"><enum>(B)</enum><text>the amount of

				funds of the State for which availability is extended under paragraph

				(4)(A).</text>

												</subparagraph></paragraph><paragraph id="ID497149EE66E8413E863D7645D1667F06"><enum>(3)</enum><header>Redistribution

				from redistribution pool</header><text>From the redistribution pool determined

				under paragraph (1)(C)(i)—</text>

												<subparagraph id="ID224F6FB0DB2F46868A1C2F6C9D07F905"><enum>(A)</enum><header>States other

				than territories</header><text>There shall be redistributed to each State which

				has a net projected shortfall under paragraph (2) an amount determined under

				such paragraph for the State.</text>

												</subparagraph><subparagraph id="IDC5737344952F4D49B4A24FE434DCE23F"><enum>(B)</enum><header>Territories</header><text>There

				shall be redistributed to each commonwealth or territory described in

				subsection (c)(3) an amount equal to the product of the following:</text>

													<clause id="ID275D09CAEFDF407DAFA60BEE1E91F5E2"><enum>(i)</enum><header>Territorial

				redistribution pool</header><text>1.05 percent of the amount of such unexpended

				allotments determined under paragraph (1)(A)(ii).</text>

													</clause><clause id="ID3688956C64614E43B474B7CB0A437CE4"><enum>(ii)</enum><header>Territorial

				proportion</header><text>The ratio of—</text>

														<subclause id="ID5EE6739D837B434B91BFCA3E86C3E602"><enum>(I)</enum><text>the allotment

				under subsection (c) for such commonwealth or territory for fiscal year 2004,

				to</text>

														</subclause><subclause id="IDC04322D739D94EAF8C2E85F579100743"><enum>(II)</enum><text>the total of all

				such allotments for such commonwealths and territories.</text>

														</subclause></clause></subparagraph></paragraph><paragraph id="ID947EE63915FE430A8D6F876C168ED465"><enum>(4)</enum><header>Extended

				availability of remaining unexpended allotments</header>

												<subparagraph id="ID6DAE15C7D5D64E999CCF6F9110F58ABE"><enum>(A)</enum><header>To meet net

				shortfall for fiscal year 2006</header><text>In the case of a State described

				in paragraph (1)(B)(ii), the Secretary shall extend the availability of funds

				from the State’s allotment for fiscal year 2004 to the extent that—</text>

													<clause id="IDBC214C3783124B409047C9A7C00D7F17"><enum>(i)</enum><text>the amount

				determined under subsection (h)(2)(C) (relating to initial shortfall for fiscal

				year 2006), exceeds</text>

													</clause><clause id="ID9DF9CAC095164E4981E4677135289A97"><enum>(ii)</enum><text>the amount

				redistributed to the State under subsection (h)(3)(A).</text>

													</clause></subparagraph><subparagraph id="IDB422F38D5B0E4B92954E2E59DF44FCBA"><enum>(B)</enum><header>Other

				extensions</header><text>The Secretary shall extend the availability of funds

				from allotments for fiscal year 2004 for each State which has an unexpended

				allotment for fiscal year 2004 determined under paragraph (1)(A) (as reduced,

				if applicable, under paragraph (1)(B)) by an amount equal to the amount (if

				any) by which—</text>

													<clause id="ID47B557D7D8D74272A0729DB316FB1849"><enum>(i)</enum><text>the amount of

				such unexpended allotment (as so reduced) for the State, exceeds</text>

													</clause><clause id="ID938B063C53D44B3995C2D9D85A4D5F7B"><enum>(ii)</enum><text>the

				redistribution/reduction amount determined under paragraph (1)(D) for the State

				(relating to the portion of the unexpended allotment applied to

				redistributions).</text>

													</clause></subparagraph></paragraph><paragraph id="IDA99C9815B09741D9B485346374DAC3B8"><enum>(5)</enum><header>Determination

				of amounts</header><text>For purposes of calculating the amounts described

				in—</text>

												<subparagraph id="ID23500D06E08D4E64BFC7508BBB7909CD"><enum>(A)</enum><text>paragraph

				(1)(A)(i), the Secretary shall use the amounts reported by the States not later

				than November 30, 2005, on Form CMS–64 or Form CMS–21, as the case may be, as

				approved by the Secretary; and</text>

												</subparagraph><subparagraph id="IDBBD8603C278A463185005E0E7C3D10A4"><enum>(B)</enum><text>paragraph

				(1)(B)(i), the Secretary shall use the amounts reported by the States not later

				than September 30, 2005, on Form CMS–37 or Form CMS–21B, as the case may be, as

				approved by the Secretary.</text>

												</subparagraph></paragraph></subsection><subsection id="IDEFBF34574C2F4D61B29F5CDB0F0B273F"><enum>(j)</enum><header>Redistribution

				and Extension of Availability of Unused Allotments for Fiscal Year

				2005</header><text>Notwithstanding subsection (f):</text>

											<paragraph id="ID6B17314D0A154F6DB0EF1F125A13E481"><enum>(1)</enum><header>Computation of

				unexpended allotments for fiscal year 2005</header>

												<subparagraph id="IDBB87EC8D6D144A958BDA278393BC9AED"><enum>(A)</enum><header>In

				general</header><text>The Secretary shall determine with respect to each State

				that receives an allotment for fiscal year 2005 under subsection (b)—</text>

													<clause id="IDA07675E7BD334C6D97D638E30FFC813C"><enum>(i)</enum><text>the amount of the

				State’s allotment for fiscal year 2005 that was not expended by the end of

				fiscal year 2006; and</text>

													</clause><clause id="IDBBA297D775BA4ECC817AFA528723366A"><enum>(ii)</enum><text>the total of the

				unexpended allotments determined under clause (i).</text>

													</clause></subparagraph><subparagraph id="IDC2C09551D45E4CC0AF98B3CC01F6D6BB"><enum>(B)</enum><header>Reduction of

				unexpended allotment by net fiscal year 2007 shortfall</header>

													<clause id="ID0095552031B54F4F90C43FC4F9804476"><enum>(i)</enum><header>In

				general</header><text>In the case of a State described in clause (ii), the

				Secretary shall reduce, but not below 0, the amount determined for the State

				under subparagraph (A)(i) (relating to the State’s unexpended allotment for

				fiscal year 2005) by the amount of the allotment of the State for which

				availability is extended under paragraph (4)(A).</text>

													</clause><clause id="ID91CDA09A0802487FAED6234FFA5938D5"><enum>(ii)</enum><header>State

				described</header><text>A State described in this clause is a State that meets

				the following requirements:</text>

														<subclause id="IDF49E17D28AF14392A595751F669B2DA7"><enum>(I)</enum><header>Did not fully

				expend fiscal year 2005 allotment by end of fiscal year 2006</header><text>The

				State’s allotment under this section for fiscal year 2005 was not fully

				expended by the end of fiscal year 2006.</text>

														</subclause><subclause id="IDF429C01E9D134210ADE3C400948025B8"><enum>(II)</enum><header>Projected

				shortfall for fiscal year 2007</header><text>The State has an excess determined

				under paragraph (2)(C) for fiscal year 2007 (relating to initial projected

				fiscal year 2007 shortfall).</text>

														</subclause></clause></subparagraph><subparagraph id="IDA810121A3ECB4C139644D43E8EE1A404"><enum>(C)</enum><header>Totals and

				ratios</header><text>The Secretary shall determine the following:</text>

													<clause id="IDD42E6C63ABF34B639D51BC1C757CD1B0"><enum>(i)</enum><header>Redistribution

				pool</header><text>A redistribution pool equal to the total of the amounts

				determined under subparagraph (A)(i), as reduced (if applicable) under

				subparagraph (B)(i).</text>

													</clause><clause id="ID03842D80A5DE4794BE271A72CEC7F8EF"><enum>(ii)</enum><header>State

				proportion toward redistribution pool</header><text>For each State in which the

				amount determined under subparagraph (A)(i) (as reduced, if applicable, under

				subparagraph (B)(i)) exceeds 0, the ratio of—</text>

														<subclause id="ID9DB24D263DF14679952382E435B655A0"><enum>(I)</enum><text>such amount (as

				so reduced) for the State; to</text>

														</subclause><subclause id="IDBF3D5FBE35D34AE79898F2DED3347559"><enum>(II)</enum><text>the total

				determined under clause (i).</text>

														</subclause></clause></subparagraph><subparagraph id="IDE91F53F89D3A4309BF90F52F98066904"><enum>(D)</enum><header>Amount of

				unexpended fiscal year 2005 allotment applied to

				redistributions</header><text>For each State described in subparagraph (C)(ii),

				the Secretary shall determine a redistribution/reduction amount equal to the

				product of the following:</text>

													<clause id="ID049D64D9479644B6B7FF207D946F3A5B"><enum>(i)</enum><header>Total amount

				redistributed</header><text>The total amount redistributed under paragraph

				(3).</text>

													</clause><clause id="IDE7FD11B922114F67B44867FE6BE82C8E"><enum>(ii)</enum><header>State’s

				proportion of unexpended allotments</header><text>The ratio for the State

				determined under subparagraph (C)(ii).</text>

													</clause></subparagraph></paragraph><paragraph id="ID02D3E9C06C8342AEAA9AD77E01562191"><enum>(2)</enum><header>Determination

				of initial projected shortfalls for fiscal year 2007</header><text>For each

				State that receives an allotment for fiscal year 2007 under subsection (b), the

				Secretary shall determine the following:</text>

												<subparagraph id="ID97A6ED7ED4B5411285C13A798CB24281"><enum>(A)</enum><header>Fiscal year

				2006 carryover</header><text>The amount of the State’s allotment for fiscal

				year 2006 that was not expended in fiscal year 2006.</text>

												</subparagraph><subparagraph id="ID2FFE86ECAEF24DF08E7FFB4213CC6CCB"><enum>(B)</enum><header>Projected

				expenditures for fiscal year 2007</header><text>The estimated expenditures for

				the State as would be reported as quarterly expenditures under section 2105(a)

				for quarters in fiscal year 2007.</text>

												</subparagraph><subparagraph id="ID12CD799931474C239CF6D6B62458AB10"><enum>(C)</enum><header>Initial

				projected shortfall for fiscal year 2007</header><text>The amount, if any, by

				which the projected expenditures determined under subparagraph (B) for the

				State for quarters in fiscal year 2007 exceeds the sum of the following:</text>

													<clause id="IDA4E9E35457224994B5E58EDF4EEC9625"><enum>(i)</enum><header>Fiscal year

				2006 carryover</header><text>The amount determined under subparagraph (A) for

				the State.</text>

													</clause><clause id="IDFD70DE3827134A39B42722615E539C35"><enum>(ii)</enum><header>Fiscal year

				2007 allotment</header><text>The amount of the State’s allotment for fiscal

				year 2007.</text>

													</clause></subparagraph><subparagraph id="ID230982C95913410DB2E5B23C912C3776"><enum>(D)</enum><header>Determination

				of net projected shortfalls for fiscal year 2007</header><text>For each State

				that has an excess determined under subparagraph (C), the Secretary shall

				determine an amount equal to the amount determined under such subparagraph,

				reduced by the amount of funds (if any) of the State for which availability is

				extended under paragraph (4)(A).</text>

												</subparagraph><subparagraph id="ID877C4810BEA948E9ACDD1ECA7714E934"><enum>(E)</enum><header>State’s

				proportion of net aggregate shortfall</header><text>For each State for which

				there is a net excess determined under subparagraph (D), the ratio of—</text>

													<clause id="ID613E532A133D4F6A9A8E7371B821474D"><enum>(i)</enum><text>the amount of

				such net excess; to</text>

													</clause><clause id="IDA2E45D345CAC494AA5B37FE58D8F92C2"><enum>(ii)</enum><text>the total of

				such net excesses.</text>

													</clause></subparagraph></paragraph><paragraph id="IDA986C648DDDF4F1BA386F31D7DC0210B"><enum>(3)</enum><header>Redistribution

				from redistribution pool</header><text>From the redistribution pool determined

				under paragraph (1)(C)(i)—</text>

												<subparagraph id="IDF37045075CEF41A381AE0B52E8539BC8"><enum>(A)</enum><header>States other

				than territories</header><text>There shall be redistributed to each State for

				which there is a net projected shortfall under paragraph (2)(D) an amount equal

				the lesser of the following:</text>

													<clause id="IDC55E37F161124FDBA498B18BA0D6BF8A"><enum>(i)</enum><header>Net fiscal year

				2007 shortfall</header><text>The amount of the net excess described in

				paragraph (2)(D) for the State.</text>

													</clause><clause id="ID146E56EBAEDE4D7C91B96CF94710A67B"><enum>(ii)</enum><header>Portion of

				unexpended funds available</header><text>The product of the following:</text>

														<subclause id="ID4265FD842BDF42548D973CE4072BC064"><enum>(I)</enum><header>State

				redistribution pool</header><text>The amount determined under paragraph

				(1)(C)(i), reduced by the total amount redistributed under subparagraph

				(B).</text>

														</subclause><subclause id="ID23E2F68B5A8B4076BEC5A7C476708674"><enum>(II)</enum><header>State’s

				shortfall proportion</header><text>The ratio described in paragraph (2)(E) for

				that State.</text>

														</subclause></clause></subparagraph><subparagraph id="ID7B8884BD37394F058D4A1FC44CD9025D"><enum>(B)</enum><header>Territories</header><text>There

				shall be redistributed to each commonwealth or territory described in

				subsection (c)(3) an amount equal to the product of the following:</text>

													<clause id="ID2D512E2438BD4EC6A717A7E1D1F204C1"><enum>(i)</enum><header>Territorial

				redistribution pool</header><text>1.05 percent of the total amount of

				unexpended allotments determined under paragraph (1)(A)(ii).</text>

													</clause><clause id="ID729B910319504F5B85F79BA53DE1AE47"><enum>(ii)</enum><header>Territorial

				proportion</header><text>The ratio of—</text>

														<subclause id="IDB6FBEA8450F34783B3FF0291BC4534AD"><enum>(I)</enum><text>the allotment

				under subsection (c) for such commonwealth or territory for fiscal year 2005,

				to</text>

														</subclause><subclause id="ID84916D93EE06494F8E3A8686239EBBE5"><enum>(II)</enum><text>the total of all

				such allotments for such commonwealths and territories.</text>

														</subclause></clause></subparagraph></paragraph><paragraph id="IDE150B57DCDBE44A9B0CC95EF2272B311"><enum>(4)</enum><header>Extended

				availability of remaining unexpended allotments</header>

												<subparagraph id="ID8AD3C66C8FF54E42B22D149B7197C100"><enum>(A)</enum><header>To meet initial

				projected shortfall for fiscal year 2007</header><text>In the case of a State

				that is described in paragraph (1)(B)(ii), the Secretary shall extend the

				availability of funds from the State’s allotment for fiscal year 2005 to the

				extent of the amount described in paragraph (2)(C).</text>

												</subparagraph><subparagraph id="ID5916A7C111A84BCBBC721443FB6E077F"><enum>(B)</enum><header>Other

				extensions</header><text>If the redistribution pool amount determined under

				paragraph (1)(C)(i) exceeds the total amount redistributed under paragraph (3),

				the Secretary shall extend the availability of funds from allotments for fiscal

				year 2005 for each State which has an unexpended allotment for that fiscal year

				determined under paragraph (1)(A) (as reduced, if applicable, under paragraph

				(1)(B)) by an amount equal to the amount (if any) by which—</text>

													<clause id="IDF36327DA70A04154ABBF4C060FF4961D"><enum>(i)</enum><text>the amount of the

				unexpended allotment (as so reduced) for the State, exceeds</text>

													</clause><clause id="IDC6149D3FBA4E4455956C0D2E2FB894F2"><enum>(ii)</enum><text>the

				redistribution/reduction amount determined under paragraph (1)(D) for the State

				(relating to the portion of the unexpended allotment applied to

				redistributions).</text>

													</clause></subparagraph></paragraph><paragraph id="ID6DDA2FB5DDCD4982A178C611E4033BA6"><enum>(5)</enum><header>Determination

				of amounts</header><text>For purposes of calculating the amounts described

				in—</text>

												<subparagraph id="IDB0B793FDF73C45A1B0CAE50D87A7761E"><enum>(A)</enum><text>paragraph (1)(A),

				the Secretary shall use the amounts reported by the States not later than

				November 30, 2006, on Form CMS–64 or Form CMS–21, as the case may be, as

				approved by the Secretary; or</text>

												</subparagraph><subparagraph id="ID5D080E40801245CC9CEF6014FD8B2F49"><enum>(B)</enum><text>paragraph (2),

				the Secretary shall use the amounts reported by the States not later than

				September 30, 2006, on Form CMS–37 or Form CMS–21B, as the case may be, as

				approved by the

				Secretary.</text>

												</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

								</paragraph></subsection><subsection id="ID625D5665F4484BB5A686042B8618C30D"><enum>(b)</enum><header>Use of

			 Redistributed Funds for Child Health Assistance for Targeted Low-Income

			 Children</header><text>Section 2105(a) (42 U.S.C. 1397ee(a)) is amended—</text>

								<paragraph id="ID1C8CE1611E8E408D90CE75B2A6C0B765"><enum>(1)</enum><text>in paragraph (1),

			 in the matter preceding subparagraph (A), by inserting <quote>or paragraph

			 (3)</quote> after <quote>subparagraph (B)</quote>; and</text>

								</paragraph><paragraph id="ID20EE8767F89C470DB4D2DD287E6A19C1"><enum>(2)</enum><text>by adding at the

			 end the following:</text>

									<quoted-block id="IDAC8B7B736F4646D6B3506835EA6D6DC8" style="OLC">

										<paragraph id="ID6F49CFD04BC0455A947F82D28F24B131"><enum>(3)</enum><header>Use of

				redistributed funds for child health assistance for targeted low-income

				children</header><text>For purposes of paragraph (1), the expenditures

				described in this paragraph are expenditures that are not expenditures for

				child health assistance for targeted low-income children, but only if such

				expenditures are from any amounts redistributed under subparagraphs (A) or (B)

				of subsection (h)(3), (i)(3), or (j)(3) of section

				2104.</text>

										</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

								</paragraph></subsection></section><section id="ID34F088059754499093EFE291EE24E7C7"><enum>6052.</enum><header>Authority to

			 use up to 10 percent of fiscal year 2006 and 2007 allotments for

			 outreach</header><text display-inline="no-display-inline">Section 2105(c)(2)

			 (42 U.S.C. 1397ee(c)(2)) is amended by adding at the end the following:</text>

							<quoted-block id="ID78A10F1EAAC04D1EA31E37BAA6E688B6" style="OLC">

								<subparagraph id="IDCFD9B9A9796B4801A33DD9D79B84B8DA"><enum>(C)</enum><header>Use of up to 10

				percent of 2006 and 2007 allotments for outreach

				activities</header><text>Notwithstanding subparagraph (A), a State may use up

				to 10 percent of the allotment for the State for fiscal year 2006 and for

				fiscal year 2007 for expenditures incurred during the respective fiscal year

				for outreach activities as provided in section 2102(c)(1) under the

				plan.</text>

								</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</section><section id="ID08D6E8B2C33840AF91E46B17BCD62EB9"><enum>6053.</enum><header>Prohibition

			 against covering nonpregnant childless adults with SCHIP funds</header>

							<subsection id="ID95F56206A3B245EBB4188AE2257BD183"><enum>(a)</enum><header>Prohibition on

			 Use of SCHIP Funds</header><text>Section 2107 (42 U.S.C. 1397gg) is amended by

			 adding at the end the following:</text>

								<quoted-block id="IDBBBEB6A2CC544B12AC2FA7214FE595E0" style="OLC">

									<subsection id="IDE46865FAF9504C27859D3547A007488E"><enum>(f)</enum><header>Limitation of

				Waiver Authority</header><text>Notwithstanding subsection (e)(2)(A) and section

				1115(a), on and after the date of enactment of this subsection, the Secretary

				may not approve a waiver, experimental, pilot, or demonstration project that

				would allow funds made available under this title to be used to provide child

				health assistance or other health benefits coverage to a nonpregnant childless

				adult. For purposes of the preceding sentence, a caretaker relative (as such

				term is defined for purposes of carrying out section 1931) shall not be

				considered a childless

				adult.</text>

									</subsection><after-quoted-block>.</after-quoted-block></quoted-block>

							</subsection><subsection id="IDA808AF1EF0AF488A97E60CDA17619538"><enum>(b)</enum><header>Conforming

			 Amendments</header><text>Section 2105(c)(1) (42 U.S.C. 1397ee(c)(1)) is

			 amended—</text>

								<paragraph id="ID6792CBBFEA1A44D6AD9CAF63E86331B3"><enum>(1)</enum><text>by inserting

			 <quote>and may not include coverage of a nonpregnant childless adult</quote>

			 after <quote>section 2101)</quote>; and</text>

								</paragraph><paragraph id="ID6173F1AD5FCE4986BADF8057F4A96986"><enum>(2)</enum><text>by adding at the

			 end the following: <quote>For purposes of the preceding sentence, a caretaker

			 relative (as such term is defined for purposes of carrying out section 1931)

			 shall not be considered a childless adult.</quote>.</text>

								</paragraph></subsection><subsection id="IDEB80C5E7E5454493B12A788C3732512E"><enum>(c)</enum><header>Rule of

			 Construction</header><text>Nothing in this section or the amendments made by

			 this section shall be construed to—</text>

								<paragraph id="IDEE0A7B1A1CE1420297F6E28CD0172AF6"><enum>(1)</enum><text>authorize the

			 waiver of any provision of title XIX or XXI of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C. 1396 et

			 seq., 1397aa et seq.) that is not otherwise authorized to be waived under such

			 titles or under title XI of such Act (42 U.S.C. 1301 et seq.) as of the date of

			 enactment of this Act;</text>

								</paragraph><paragraph id="ID4E7B1738279A434A881B7D276D9F52B4"><enum>(2)</enum><text>imply

			 congressional approval of any waiver, experimental, pilot, or demonstration

			 project affecting funds made available under the State children’s health

			 insurance program under title XXI of the <act-name parsable-cite="SSA">Social

			 Security Act</act-name> (42 U.S.C. 1397aa et. seq.) or any amendment to such a

			 waiver or project that has been approved as of such date of enactment;

			 or</text>

								</paragraph><paragraph id="ID8FA738427545418BB4A0A1F15079EA1D"><enum>(3)</enum><text>apply to any

			 waiver, experimental, pilot, or demonstration project that would allow funds

			 made available under title XXI of the <act-name parsable-cite="SSA">Social

			 Security Act</act-name> (42 U.S.C. 1397aa et seq.) to be used to provide child

			 health assistance or other health benefits coverage to a nonpregnant childless

			 adult that is approved before the date of enactment of this Act or to any

			 extension, renewal, or amendment of such a waiver or project that is approved

			 on or after such date of enactment.</text>

								</paragraph></subsection></section><section id="ID8A11F71649264AF3B63C004C435B27B7"><enum>6054.</enum><header>Continued

			 authority for qualifying States to use certain funds for Medicaid

			 expenditures</header>

							<subsection id="IDBECE396FB9D14D4186A819227A609926"><enum>(a)</enum><header>In

			 General</header><text>Section 2105(g)(1)(A) (42 U.S.C. 1397ee(g)(1)(A)) is

			 amended by striking <quote>or 2001</quote> and inserting <quote>2001, 2004, or

			 2005</quote>.</text>

							</subsection><subsection id="ID54DE135A4EF147BFBFFDB812EBD7AA95"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendment made by subsection (a) shall apply to

			 expenditures made under title XIX of the <act-name parsable-cite="SSA">Social

			 Security Act</act-name> (42 U.S.C. 1396 et seq.) on or after October 1,

			 2005.</text>

							</subsection></section><section id="IDA71F3C7D8F2845238F5FEC63983DA438"><enum>6055.</enum><header>Grants to

			 promote innovative outreach and enrollment under Medicaid and

			 SCHIP</header><text display-inline="no-display-inline">Title XXI (42 U.S.C.

			 1397aa et seq.) is amended by adding at the end the following:</text>

							<quoted-block id="IDBCBE66BE6D0C4ECB9CB5E70B3FA65D42" style="OLC">

								<section id="IDD31D1D61CE89481A8A72A5A81E208ACC"><enum>2111.</enum><header>Expanded

				outreach activities</header>

									<subsection id="ID120B3A024EE64FEA8A50B6779D991DA5"><enum>(a)</enum><header>Grants To

				Conduct Innovative Outreach and Enrollment Efforts</header>

										<paragraph id="ID4342197CFFBD401793666C729C1207DA"><enum>(1)</enum><header>In

				general</header><text>The Secretary shall award grants to eligible entities

				to—</text>

											<subparagraph id="ID6D18E781875042938DFF16839B721AB3"><enum>(A)</enum><text>conduct

				innovative outreach and enrollment efforts that are designed to increase the

				enrollment and participation of eligible children under this title and title

				XIX; and</text>

											</subparagraph><subparagraph id="IDB803151BA53A472D96205F23F22750C4"><enum>(B)</enum><text>promote

				understanding of the importance of health insurance coverage for prenatal care

				and children.</text>

											</subparagraph></paragraph><paragraph id="ID149AC6FB97C34856B00DDCD81FED383F"><enum>(2)</enum><header>Performance

				bonuses</header><text>The Secretary may reserve a portion of the funds

				appropriated under subsection (g) for a fiscal year for the purpose of awarding

				performance bonuses during the succeeding fiscal year to eligible entities that

				meet enrollment goals or other criteria established by the Secretary.</text>

										</paragraph></subsection><subsection id="ID2DD40348ED6A45ADA1771D2E38568741"><enum>(b)</enum><header>Priority for

				Award of Grants</header>

										<paragraph id="ID64BC0FC387764C6A8D0DA5A210D7C624"><enum>(1)</enum><header>In

				general</header><text>In making grants under subsection (a)(1), the Secretary

				shall give priority to—</text>

											<subparagraph id="ID96E2CF07DD2E4BD4ABFF6E4E49C2F085"><enum>(A)</enum><text>eligible entities

				that propose to target geographic areas with high rates of—</text>

												<clause id="IDB6F71C2F89F2414188D3E795B529A7D4"><enum>(i)</enum><text>eligible but

				unenrolled children, including such children who reside in rural areas;

				or</text>

												</clause><clause id="IDA5F5C16E46A64B0789EF00FE8F390071"><enum>(ii)</enum><text>racial and

				ethnic minorities and health disparity populations, including those proposals

				that address cultural and linguistic barriers to enrollment; and</text>

												</clause></subparagraph><subparagraph id="IDF5B2451ACDC54998A493F885B9219080"><enum>(B)</enum><text>eligible entities

				that plan to engage in outreach efforts with respect to individuals described

				in subparagraph (A) and that are—</text>

												<clause id="ID052B75F142D649C39C3FAC92C15799B9"><enum>(i)</enum><text>Federal health

				safety net organizations; or</text>

												</clause><clause id="ID32C5AB2DBC124A4B89BA2646ABC2EB1A"><enum>(ii)</enum><text>faith-based

				organizations or consortia.</text>

												</clause></subparagraph></paragraph><paragraph id="IDB709CDA200F0431A91104AC57B8C1B1A"><enum>(2)</enum><header>10 percent set

				aside for outreach to indian children</header><text>An amount equal to 10

				percent of the funds appropriated under subsection (g) for a fiscal year shall

				be used by the Secretary to award grants to Indian Health Service providers and

				urban Indian organizations receiving funds under title V of the

				<act-name parsable-cite="IHCIA">Indian Health Care Improvement Act</act-name>

				(25 U.S.C. 1651 et seq.) for outreach to, and enrollment of, children who are

				Indians.</text>

										</paragraph></subsection><subsection id="ID9642C54218314F4C821DD39856FF819B"><enum>(c)</enum><header>Application</header><text>An

				eligible entity that desires to receive a grant under subsection (a)(1) shall

				submit an application to the Secretary in such form and manner, and containing

				such information, as the Secretary may decide. Such application shall

				include—</text>

										<paragraph id="ID40C0D19ACC0049E59828FB6724ECF8BF"><enum>(1)</enum><text>quality and

				outcomes performance measures to evaluate the effectiveness of activities

				funded by a grant awarded under this section to ensure that the activities are

				meeting their goals; and</text>

										</paragraph><paragraph id="ID78379484546D4A16AA82FFC292AE84AC"><enum>(2)</enum><text>an assurance that

				the entity shall—</text>

											<subparagraph id="ID96045078B21E47F1BAC2CBA8CF8E5C0E"><enum>(A)</enum><text>conduct an

				assessment of the effectiveness of such activities against such performance

				measures; and</text>

											</subparagraph><subparagraph id="IDB33BEF86E72C42E8AB2A97891E388B59"><enum>(B)</enum><text>cooperate with

				the collection and reporting of enrollment data and other information

				determined as a result of conducting such assessments to the Secretary, in such

				form and manner as the Secretary shall require.</text>

											</subparagraph></paragraph></subsection><subsection id="ID14987A107F0546F8BA8E44BABC59B997"><enum>(d)</enum><header>Dissemination

				of Enrollment Data and Information Determined From Effectiveness Assessments;

				Annual Report</header><text>The Secretary shall—</text>

										<paragraph id="IDEAED174557C440E8B0CA4E9BF6FA553C"><enum>(1)</enum><text>disseminate to

				eligible entities and make publicly available the enrollment data and

				information collected and reported in accordance with subsection (c)(2)(B);

				and</text>

										</paragraph><paragraph id="ID18B4D1D055E94D4892E52EA4BCF91F5B"><enum>(2)</enum><text>submit an annual

				report to Congress on the outreach activities funded by grants awarded under

				this section.</text>

										</paragraph></subsection><subsection id="ID216F22213F164D9BBCA51D07CD3B368F"><enum>(e)</enum><header>Supplement, Not

				Supplant</header><text>Federal funds awarded under this section shall be used

				to supplement, not supplant, non-Federal funds that are otherwise available for

				activities funded under this section.</text>

									</subsection><subsection id="IDD877C49DFC6343BB99DB6DAF7B60F0D9"><enum>(f)</enum><header>Definitions</header><text>In

				this section:</text>

										<paragraph id="ID3BC29C8D77314635AD5639C5E23C75DC"><enum>(1)</enum><header>Eligible

				entity</header><text>The term <term>eligible entity</term> means any of the

				following:</text>

											<subparagraph id="ID6BCD1BC85EC548779A65ED50D95CBC90"><enum>(A)</enum><text>A State or local

				government.</text>

											</subparagraph><subparagraph id="ID5FB652D6B32844DDA80F946B936A8DF5"><enum>(B)</enum><text>A Federal health

				safety net organization.</text>

											</subparagraph><subparagraph id="ID23055A8DAF85497485A931A2CD71EE83"><enum>(C)</enum><text>A national,

				local, or community-based public or nonprofit private organization.</text>

											</subparagraph><subparagraph id="ID36CDBCC33CAE42DDBC0DD95562C2D84D"><enum>(D)</enum><text>A faith-based

				organization or consortia, to the extent that a grant awarded to such an entity

				is consistent with the requirements of section 1955 of the

				<act-name parsable-cite="PHSA">Public Health Service Act</act-name> (42 U.S.C.

				300x–65) relating to a grant award to non-governmental entities.</text>

											</subparagraph><subparagraph id="ID7EADD277E6B140AEB1CF8B436801D95F"><enum>(E)</enum><text>An elementary or

				secondary school.</text>

											</subparagraph></paragraph><paragraph id="ID22E98AFC25894E5CB7D885EB950831C2"><enum>(2)</enum><header>Federal health

				safety net organization</header><text>The term <term>Federal health safety net

				organization</term> means—</text>

											<subparagraph id="ID0B356E5443784B88A544F8273E8995D5"><enum>(A)</enum><text>an Indian tribe,

				tribal organization, or an urban Indian organization receiving funds under

				title V of the <act-name parsable-cite="IHCIA">Indian Health Care Improvement

				Act</act-name> (25 U.S.C. 1651 et seq.), or an Indian Health Service

				provider;</text>

											</subparagraph><subparagraph id="ID1FDC404EA91D41E5893ED4D2C7770EF1"><enum>(B)</enum><text>a

				Federally-qualified health center (as defined in section 1905(l)(2)(B));</text>

											</subparagraph><subparagraph id="IDEAB43944A143471AAD586BA28A4D9E1B"><enum>(C)</enum><text>a hospital

				defined as a disproportionate share hospital for purposes of section

				1923;</text>

											</subparagraph><subparagraph id="ID64AE4F30B8F04074BB55ACB00803EE16"><enum>(D)</enum><text>a covered entity

				described in section 340B(a)(4) of the <act-name parsable-cite="PHSA">Public

				Health Service Act</act-name> (42 U.S.C. 256b(a)(4)); and</text>

											</subparagraph><subparagraph id="IDF3BAF07A928B437AB490860AA4E56D6C"><enum>(E)</enum><text>any other entity

				or a consortium that serves children under a federally-funded program,

				including the special supplemental nutrition program for women, infants, and

				children (WIC) established under section 17 of the

				<act-name parsable-cite="CNA66">Child Nutrition Act of 1966</act-name> (42

				U.S.C. 1786), the head start and early head start programs under the

				<act-name parsable-cite="HSA">Head Start Act</act-name> (42 U.S.C. 9801 et

				seq.), the school lunch program established under the Richard B. Russell

				<act-name parsable-cite="NSLA">National School Lunch Act</act-name>, and an

				elementary or secondary school.</text>

											</subparagraph></paragraph><paragraph id="ID74F8C34D9BFA4FB4856ECADF209490BE"><enum>(3)</enum><header>Indians; indian

				tribe; tribal organization; urban indian organization</header><text>The terms

				<term>Indian</term>, <term>Indian tribe</term>, <term>tribal

				organization</term>, and <term>urban Indian organization</term> have the

				meanings given such terms in section 4 of the <act-name parsable-cite="IHCIA">Indian Health Care Improvement Act</act-name> (25 U.S.C.

				1603).</text>

										</paragraph></subsection><subsection id="IDD90DFFF2FF9F491BAEFEA5F040CE8470"><enum>(g)</enum><header>Appropriation</header><text>There

				is appropriated, out of any money in the Treasury not otherwise appropriated,

				$25,000,000 for fiscal year 2007 for the purpose of awarding grants under this

				section. Amounts appropriated and paid under the authority of this section

				shall—</text>

										<paragraph id="ID967690A7CD284607A6AFB080B9E62962"><enum>(1)</enum><text>be in addition to

				amounts appropriated under section 2104 and paid to States in accordance with

				section 2105; and</text>

										</paragraph><paragraph id="ID566CC01D0FE542F6ACFDF0DBA3D1B640"><enum>(2)</enum><text>not be subject to

				the limitation on expenditures described in section

				2105(c)(2)(A).</text>

										</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

						</section></subchapter><subchapter id="IDE60E9E77835244E8B80DDC7DE12D1625"><enum>C</enum><header>Money Follows the

			 Person Rebalancing Demonstration</header>

						<section id="ID402B1C226ACA451A918A0EF406AC70B3"><enum>6061.</enum><header>Money Follows

			 the Person Rebalancing Demonstration</header>

							<subsection id="ID76E4A43C949F4BC7A49062CD1D87CF51"><enum>(a)</enum><header>Program Purpose

			 and Authority</header><text>The Secretary is authorized to award, on a

			 competitive basis, grants to States in accordance with this section for

			 demonstration projects (each in this section referred to as an <quote>MFP

			 demonstration project</quote>) designed to achieve the following objectives

			 with respect to institutional and home and community-based long-term care

			 services under State Medicaid programs:</text>

								<paragraph id="ID00F7FFFDB38948289589BB756489B60F"><enum>(1)</enum><header>Rebalancing</header><text>Increase

			 the use of home and community-based, rather than institutional, long-term care

			 services.</text>

								</paragraph><paragraph id="ID408A89324C644F7CA94EA832D2D0B8BB"><enum>(2)</enum><header>Money follows

			 the person</header><text>Eliminate barriers or mechanisms, whether in the State

			 law, the State Medicaid plan, the State budget, or otherwise, that prevent or

			 restrict the flexible use of Medicaid funds to enable Medicaid-eligible

			 individuals to receive support for appropriate and necessary long-term services

			 in the settings of their choice.</text>

								</paragraph><paragraph id="ID6C49944032554BE4866C60C78507E953"><enum>(3)</enum><header>Continuity of

			 service</header><text>Increase the ability of the State Medicaid program to

			 assure continued provision of home and community-based long-term care services

			 to eligible individuals who choose to transition from an institutional to a

			 community setting.</text>

								</paragraph><paragraph id="IDE198ADA22A02492CBBA38BAE4CC2018C"><enum>(4)</enum><header>Quality

			 assurance and quality improvement</header><text>Ensure that procedures are in

			 place (at least comparable to those required under the qualified HCB program)

			 to provide quality assurance for eligible individuals receiving Medicaid home

			 and community-based long-term care services and to provide for continuous

			 quality improvement in such services.</text>

								</paragraph></subsection><subsection id="ID45DBAEF8D84F40A6BA103B778A3B7590"><enum>(b)</enum><header>Definitions</header><text>For

			 purposes of this section:</text>

								<paragraph id="IDE91B254AFBDD4D85AEF323E6EC43302E"><enum>(1)</enum><header>Home and

			 community-based long-term care services</header><text>The term <term>home and

			 community-based long-term care services</term> means, with respect to a State

			 Medicaid program, home and community-based services (including home health and

			 personal care services) that are provided under the State’s qualified HCB

			 program or that could be provided under such a program but are otherwise

			 provided under the Medicaid program.</text>

								</paragraph><paragraph id="ID1BAE9D4F353045D881684DB5536EF951"><enum>(2)</enum><header>Eligible

			 individual</header><text>The term <term>eligible individual</term> means, with

			 respect to an MFP demonstration project of a State, an individual in the

			 State—</text>

									<subparagraph id="ID235B416CC2AC4C41A37000A9527D1AA1"><enum>(A)</enum><text>who, immediately

			 before beginning participation in the MFP demonstration project—</text>

										<clause id="ID19B5A7F73E6D478D91B5503524806BC3"><enum>(i)</enum><text>resides (and has

			 resided, for a period of not less than 6 months or for such longer minimum

			 period, not to exceed 2 years, as may be specified by the State) in an

			 inpatient facility;</text>

										</clause><clause id="ID338C9B06424C49DFA7DFAAEA9C91CA24"><enum>(ii)</enum><text>is

			 receiving Medicaid benefits for inpatient services furnished by such inpatient

			 facility; and</text>

										</clause><clause id="ID9A0818D1AF0649368A53F847F2A6EA9C"><enum>(iii)</enum><text>with respect to

			 whom a determination has been made that, but for the provision of home and

			 community-based long-term care services, the individual would continue to

			 require the level of care provided in an inpatient facility; and</text>

										</clause></subparagraph><subparagraph id="IDD8A575B6AE6449269AA80559041331A1"><enum>(B)</enum><text>who resides in a

			 qualified residence beginning on the initial date of participation in the

			 demonstration project.</text>

									</subparagraph></paragraph><paragraph id="IDE1A2A80D3B154AF890B77DBEA8CB86D4"><enum>(3)</enum><header>Inpatient

			 facility</header><text>The term <term>inpatient facility</term> means a

			 hospital, nursing facility, or intermediate care facility for the mentally

			 retarded. Such term includes an institution for mental diseases, but only, with

			 respect to a State, to the extent medical assistance is available under the

			 State Medicaid plan for services provided by such institution.</text>

								</paragraph><paragraph id="ID5B5F7679611C47EDBBD04872C7B3B31C"><enum>(4)</enum><header>Medicaid</header><text>The

			 term <term>Medicaid</term> means, with respect to a State, the State program

			 under title XIX of the <act-name parsable-cite="SSA">Social Security

			 Act</act-name> (including any waiver or demonstration under such title or under

			 section 1115 of such Act relating to such title).</text>

								</paragraph><paragraph id="ID383A5F66025549D19EED3E6F64F09448"><enum>(5)</enum><header>Qualified hcb

			 program</header><text>The term <term>qualified HCB program</term> means a

			 program providing home and community-based long-term care services operating

			 under Medicaid, whether or not operating under waiver authority.</text>

								</paragraph><paragraph id="IDF817E4CD2DDC4307A65E8655D46124A6"><enum>(6)</enum><header>Qualified

			 residence</header><text>The term <term>qualified residence</term> means, with

			 respect to an eligible individual—</text>

									<subparagraph id="ID64BB29A77B734B30A2C820F76AF7F685"><enum>(A)</enum><text>a home owned or

			 leased by the individual or the individual’s family member;</text>

									</subparagraph><subparagraph id="ID1887540E896B4087B533CEC704E825F5"><enum>(B)</enum><text>an apartment with

			 an individual lease, with lockable access and egress, and which includes

			 living, sleeping, bathing, and cooking areas over which the individual or the

			 individual’s family has domain and control; and</text>

									</subparagraph><subparagraph id="ID4B6180D148B241C993856292F4985BB3"><enum>(C)</enum><text>a residence, in a

			 community-based residential setting, in which no more than 4 unrelated

			 individuals reside.</text>

									</subparagraph></paragraph><paragraph id="ID250F2D4B2D1349729447FDC2D5F988CA"><enum>(7)</enum><header>Qualified

			 expenditures</header><text>The term <term>qualified expenditures</term> means

			 expenditures by the State under its MFP demonstration project for home and

			 community-based long-term care services for an eligible individual

			 participating in the MFP demonstration project, but only with respect to

			 services furnished during the 12-month period beginning on the date the

			 individual is discharged from an inpatient facility referred to in paragraph

			 (2)(A)(i).</text>

								</paragraph><paragraph id="IDCF24D25DCB724C48AED53E7C605A75E3"><enum>(8)</enum><header>Self-directed

			 services</header><text>The term <term>self-directed</term> means, with respect

			 to home and community-based long-term care services for an eligible individual,

			 such services for the individual which are planned and purchased under the

			 direction and control of such individual or the individual’s authorized

			 representative (as defined by the Secretary), including the amount, duration,

			 scope, provider, and location of such services, under the State Medicaid

			 program consistent with the following requirements:</text>

									<subparagraph id="ID9932236850D2430BB990EEB66AC509B0"><enum>(A)</enum><header>Assessment</header><text>There

			 is an assessment of the needs, capabilities, and preferences of the individual

			 with respect to such services.</text>

									</subparagraph><subparagraph id="ID87723D8249954019AC041B5B45BE47EE"><enum>(B)</enum><header>Service

			 plan</header><text>Based on such assessment, there is developed jointly with

			 such individual or the individual’s authorized representative a plan for such

			 services for such individual that is approved by the State and that—</text>

										<clause id="IDA3644E97546146358298E1A19011F1AC"><enum>(i)</enum><text>specifies those

			 services, if any, which the individual or the individual’s authorized

			 representative would be responsible for directing;</text>

										</clause><clause id="ID43281C621BE44398A526182E17DD04A0"><enum>(ii)</enum><text>identifies the

			 methods by which the individual or the individual’s authorized representative

			 or an agency designated by an individual or representative will select, manage,

			 and dismiss providers of such services;</text>

										</clause><clause id="ID888DE4C4A3804E30AC5B31D2CC5C72CD"><enum>(iii)</enum><text>specifies the

			 role of family members and others whose participation is sought by the

			 individual or the individual’s authorized representative with respect to such

			 services;</text>

										</clause><clause id="IDD8D33BFCC5CB49D7857C25A8354533D9"><enum>(iv)</enum><text>is

			 developed through a person-centered process that—</text>

											<subclause id="ID46F3B5A61CF248BA91147C244D8B16BC"><enum>(I)</enum><text>is directed by

			 the individual or the individual’s authorized representative;</text>

											</subclause><subclause id="ID6B424268FE34491C96AB0D44DE7E5E1F"><enum>(II)</enum><text>builds upon the

			 individual’s capacity to engage in activities that promote community life and

			 that respects the individual’s preferences, choices, and abilities; and</text>

											</subclause><subclause id="ID464A39E6A9854CEEB2CB7593A1E53769"><enum>(III)</enum><text>involves

			 families, friends, and professionals as desired or required by the individual

			 or the individual’s authorized representative;</text>

											</subclause></clause><clause id="ID5C1F762420264AF99D0413C2EACA2219"><enum>(v)</enum><text>includes

			 appropriate risk management techniques that recognize the roles and sharing of

			 responsibilities in obtaining services in a self-directed manner and assure the

			 appropriateness of such plan based upon the resources and capabilities of the

			 individual or the individual’s authorized representative; and</text>

										</clause><clause id="ID348A8BED1EEF41DFB32C58013BB4E975"><enum>(vi)</enum><text>may include an

			 individualized budget which identifies the dollar value of the services and

			 supports under the control and direction of the individual or the individual’s

			 authorized representative.</text>

										</clause></subparagraph><subparagraph id="ID48F380D71F6544D085B9228FEAB773AD"><enum>(C)</enum><header>Budget

			 Process</header><text>With respect to individualized budgets described in

			 subparagraph (B)(vi), the State application under subsection (c)—</text>

										<clause id="IDE62BA0072641412FB297E791E4DFA158"><enum>(i)</enum><text>describes the

			 method for calculating the dollar values in such budgets based on reliable

			 costs and service utilization;</text>

										</clause><clause id="ID34E0C99E72794196830326D796D8576C"><enum>(ii)</enum><text>defines a

			 process for making adjustments in such dollar values to reflect changes in

			 individual assessments and service plans; and</text>

										</clause><clause id="IDA77F15B63F3446FAB17A51D34C607C60"><enum>(iii)</enum><text>provides a

			 procedure to evaluate expenditures under such budgets.</text>

										</clause></subparagraph></paragraph><paragraph id="ID8D425266BB374052B07D9CC43FCDB7A3"><enum>(9)</enum><header>State</header><text>The

			 term <term>State</term> has the meaning given such term for purposes of title

			 XIX of the <act-name parsable-cite="SSA">Social Security Act</act-name>.</text>

								</paragraph></subsection><subsection id="IDF2DD1C1B84534AD5AF29AE949FD0B2F4"><enum>(c)</enum><header>State

			 Application</header><text>A State seeking approval of an MFP demonstration

			 project shall submit to the Secretary, at such time and in such format as the

			 Secretary requires, an application meeting the following requirements and

			 containing such additional information, provisions, and assurances, as the

			 Secretary may require:</text>

								<paragraph id="ID939F589C00B64F44A80B481DCF01B12D"><enum>(1)</enum><header>Assurance of a

			 public development process</header><text>The application contains an assurance

			 that the State has engaged, and will continue to engage, in a public process

			 for the design, development, and evaluation of the MFP demonstration project

			 that allows for input from eligible individuals, the families of such

			 individuals, authorized representatives of such individuals, providers, and

			 other interested parties.</text>

								</paragraph><paragraph id="ID4A2CE0B63C564C4883CB65285CDF3BFB"><enum>(2)</enum><header>Operation in

			 connection with qualified hcb program to assure continuity of

			 services</header><text>The State will conduct the MFP demonstration project for

			 eligible individuals in conjunction with the operation of a qualified HCB

			 program that is in operation (or approved) in the State for such individuals in

			 a manner that assures continuity of Medicaid coverage for such individuals so

			 long as such individuals continue to be eligible for medical assistance.</text>

								</paragraph><paragraph id="ID385539B7FB754C55BDC9C9695DDA8E53"><enum>(3)</enum><header>Demonstration

			 project period</header><text>The application shall specify the period of the

			 MFP demonstration project, which shall include at least 2 consecutive fiscal

			 years in the 5-fiscal-year period beginning with fiscal year 2009.</text>

								</paragraph><paragraph id="ID1463B640072F4EBB92A82F3AD2B31D03"><enum>(4)</enum><header>Service

			 area</header><text>The application shall specify the service area or areas of

			 the MFP demonstration project, which may be a statewide area or one or more

			 geographic areas of the State.</text>

								</paragraph><paragraph id="IDD062D2A250834EBEAE4C08D9CC09A355"><enum>(5)</enum><header>Targeted groups

			 and numbers of individuals served</header><text>The application shall

			 specify—</text>

									<subparagraph id="IDE5CD57BA2229465DB88317106757D463"><enum>(A)</enum><text>the target groups

			 of eligible individuals to be assisted to transition from an inpatient facility

			 to a qualified residence during each fiscal year of the MFP demonstration

			 project;</text>

									</subparagraph><subparagraph id="ID2F0F28D7CEEF410190CCCC25463B00B9"><enum>(B)</enum><text>the projected

			 numbers of eligible individuals in each targeted group of eligible individuals

			 to be so assisted during each such year; and</text>

									</subparagraph><subparagraph id="IDB6D64340AE0B44CA90D310B8517BB700"><enum>(C)</enum><text>the estimated

			 total annual qualified expenditures for each fiscal year of the MFP

			 demonstration project.</text>

									</subparagraph></paragraph><paragraph id="IDE56682EDCAEF4E85AD05859C0D2AE412"><enum>(6)</enum><header>Individual

			 choice, continuity of care</header><text>The application shall contain

			 assurances that—</text>

									<subparagraph id="ID2C93D7A33917426EA7C29EA3FE279808"><enum>(A)</enum><text>each eligible

			 individual or the individual’s authorized representative will be provided the

			 opportunity to make an informed choice regarding whether to participate in the

			 MFP demonstration project;</text>

									</subparagraph><subparagraph id="IDE0205171D01B4F0AACF2D0CFD507AEF1"><enum>(B)</enum><text>each eligible

			 individual or the individual’s authorized representative will choose the

			 qualified residence in which the individual will reside and the setting in

			 which the individual will receive home and community-based long-term care

			 services;</text>

									</subparagraph><subparagraph id="IDF58D1058581C4FB8935423D6CC1B223C"><enum>(C)</enum><text>the State will

			 continue to make available, so long as the State operates its qualified HCB

			 program consistent with applicable requirements, home and community-based

			 long-term care services to each individual who completes participation in the

			 MFP demonstration project for as long as the individual remains eligible for

			 medical assistance for such services under such qualified HCB program

			 (including meeting a requirement relating to requiring a level of care provided

			 in an inpatient facility and continuing to require such services).</text>

									</subparagraph></paragraph><paragraph id="ID7D1370DD2F3540C0AACE92C8BC239EF7"><enum>(7)</enum><header>Rebalancing</header><text>The

			 application shall—</text>

									<subparagraph id="ID7DC79D2CD8B54B2DAAD8CC7E1BE80C8D"><enum>(A)</enum><text>provide such

			 information as the Secretary may require concerning the dollar amounts of State

			 Medicaid expenditures for the fiscal year, immediately preceding the first

			 fiscal year of the State’s MFP demonstration project, for long-term care

			 services and the percentage of such expenditures that were for institutional

			 long-term care services or were for home and community-based long-term care

			 services;</text>

									</subparagraph><subparagraph id="ID9CAE4188E1974F5DA78C64785082D69C"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="ID742F212388C44D979E30B592801836E7"><enum>(i)</enum><text>specify the methods to

			 be used by the State to increase, for each fiscal year during the MFP

			 demonstration project, the dollar amount of such total expenditures for home

			 and community-based long-term care services and the percentage of such total

			 expenditures for long-term care services that are for home and community-based

			 long-term care services; and</text>

										</clause><clause id="IDF5F7627A630D4EDFB8F53B6E1E720BA0" indent="up1"><enum>(ii)</enum><text>describe the extent to which the

			 MFP demonstration project will contribute to accomplishment of objectives

			 described in subsection (a).</text>

										</clause></subparagraph></paragraph><paragraph id="IDA276BE1BD6AB4D408874E8DE8BB108FC"><enum>(8)</enum><header>Money follows

			 the person</header><text>The application shall describe the methods to be used

			 by the State to eliminate any legal, budgetary, or other barriers to

			 flexibility in the availability of Medicaid funds to pay for long-term care

			 services for eligible individuals participating in the project in the

			 appropriate settings of their choice, including costs to transition from an

			 institutional setting to a qualified residence.</text>

								</paragraph><paragraph id="IDCBE109FB4E0E4EBEAD85AD3A40E62968"><enum>(9)</enum><header>Maintenance of

			 effort and cost-effectiveness</header><text>The application shall contain or be

			 accompanied by such information and assurances as may be required to satisfy

			 the Secretary that—</text>

									<subparagraph id="IDBC29EE160E854A3598D7DAAE4B69C5DB"><enum>(A)</enum><text>total

			 expenditures under the State Medicaid program for home and community-based

			 long-term care services will not be less for any fiscal year during the MFP

			 demonstration project than for the greater of such expenditures for—</text>

										<clause id="ID22B0079232C04D4DA3EB688201FAF66D"><enum>(i)</enum><text>fiscal year 2005;

			 or</text>

										</clause><clause id="ID0542B5B48ABD4D089B1217E0E198CF10"><enum>(ii)</enum><text>any succeeding

			 fiscal year before the first year of the MFP demonstration project; and</text>

										</clause></subparagraph><subparagraph id="ID9CD6539AAE0047CF91499E1F839058B0"><enum>(B)</enum><text>in the case of a

			 qualified HCB program operating under a waiver under subsection (c) or (d) of

			 section 1915 of the <act-name parsable-cite="SSA">Social Security

			 Act</act-name> (42 U.S.C. 1396n), but for the amount awarded under a grant

			 under this section, the State program would continue to meet the

			 cost-effectiveness requirements of subsection (c)(2)(D) of such section or

			 comparable requirements under subsection (d)(5) of such section,

			 respectively.</text>

									</subparagraph></paragraph><paragraph id="IDE04A97C9F8A34DA2BAC92F2878D509BE"><enum>(10)</enum><header>Waiver

			 requests</header><text>The application shall contain or be accompanied by

			 requests for any modification or adjustment of waivers of Medicaid requirements

			 described in subsection (d)(3), including adjustments to the maximum numbers of

			 individuals included and package of benefits, including one-time transitional

			 services, provided.</text>

								</paragraph><paragraph id="ID52756271C90642DEB4C12E94E50FFB86"><enum>(11)</enum><header>Quality

			 assurance and quality improvement</header><text>The application shall

			 include—</text>

									<subparagraph id="ID22F97670348D4135BF96AB55922AECCE"><enum>(A)</enum><text>a plan

			 satisfactory to the Secretary for quality assurance and quality improvement for

			 home and community-based long-term care services under the State Medicaid

			 program, including a plan to assure the health and welfare of individuals

			 participating in the MFP demonstration project; and</text>

									</subparagraph><subparagraph id="IDB181F66B687E4598A04A7F2EFB6BDA73"><enum>(B)</enum><text>an assurance that

			 the State will cooperate in carrying out activities under subsection (f) to

			 develop and implement continuous quality assurance and quality improvement

			 systems for home and community-based long-term care services.</text>

									</subparagraph></paragraph><paragraph id="ID1DEC2B88E65641DAAE22E3B00E074382"><enum>(12)</enum><header>Optional

			 program for self-directed services</header><text>If the State elects to provide

			 for any home and community-based long-term care services as self-directed

			 services (as defined in subsection (b)(8)) under the MFP demonstration project,

			 the application shall provide the following:</text>

									<subparagraph id="ID563343D2AEC14C98968A3EEC66D57F26"><enum>(A)</enum><header>Meeting

			 requirements</header><text>A description of how the project will meet the

			 applicable requirements of such subsection for the provision of self-directed

			 services.</text>

									</subparagraph><subparagraph id="IDA7593665FA784454B816EEA7FE1B5FCB"><enum>(B)</enum><header>Voluntary

			 election</header><text>A description of how eligible individuals will be

			 provided with the opportunity to make an informed election to receive

			 self-directed services under the project and after the end of the

			 project.</text>

									</subparagraph><subparagraph id="ID20518F18E68A433C8A0E8BA515E04993"><enum>(C)</enum><header>State support

			 in service plan development</header><text>Satisfactory assurances that the

			 State will provide support to eligible individuals who self-direct in

			 developing and implementing their service plans.</text>

									</subparagraph><subparagraph id="ID8A8A1547DE8F4E94962580FB7AABB430"><enum>(D)</enum><header>Oversight of

			 receipt of services</header><text>Satisfactory assurances that the State will

			 provide oversight of eligible individual’s receipt of such self-directed

			 services, including steps to assure the quality of services provided and that

			 the provision of such services are consistent with the service plan under such

			 subsection.</text>

									</subparagraph><continuation-text continuation-text-level="paragraph">Nothing in

			 this section shall be construed as requiring a State to make an election under

			 the project to provide for home and community-based long-term care services as

			 self-directed services, or as requiring an individual to elect to receive

			 self-directed services under the project.</continuation-text></paragraph><paragraph id="IDC63E39E21AE343E4985215C61C0CE7D0"><enum>(13)</enum><header>Reports and

			 evaluation</header><text>The application shall provide that—</text>

									<subparagraph id="IDB1DC1FC37275461A81B79B6AD81E9450"><enum>(A)</enum><text>the State will

			 furnish to the Secretary such reports concerning the MFP demonstration project,

			 on such timetable, in such uniform format, and containing such information as

			 the Secretary may require, as will allow for reliable comparisons of MFP

			 demonstration projects across States; and</text>

									</subparagraph><subparagraph id="ID02127659C64F4CA89561974C434BF9C4"><enum>(B)</enum><text>the State will

			 participate in and cooperate with the evaluation of the MFP demonstration

			 project.</text>

									</subparagraph></paragraph></subsection><subsection id="ID09BA36EC98064606AE1518E1A9E7D3F6"><enum>(d)</enum><header>Secretary’s

			 Award of Competitive Grants</header>

								<paragraph id="ID3CCCC096DF5542479EBA4CBED62E72FB"><enum>(1)</enum><header>In

			 general</header><text>The Secretary shall award grants under this section on a

			 competitive basis to States selected from among those with applications meeting

			 the requirements of subsection (c), in accordance with the provisions of this

			 subsection.</text>

								</paragraph><paragraph id="ID355EFE1749D54C6BAFAE0807D6DEF709"><enum>(2)</enum><header>Selection and

			 modification of state applications</header><text>In selecting State

			 applications for the awarding of such a grant, the Secretary—</text>

									<subparagraph id="ID5F6E76C623E8471A99F162BC9AB3E5D7"><enum>(A)</enum><text>shall take into

			 consideration the manner in which, and extent to which, the State proposes to

			 achieve the objectives specified in subsection (a);</text>

									</subparagraph><subparagraph id="ID207F05C351E84644BCDF104A29F3C9C8"><enum>(B)</enum><text>shall seek to

			 achieve an appropriate national balance in the numbers of eligible individuals,

			 within different target groups of eligible individuals, who are assisted to

			 transition to qualified residences under MFP demonstration projects, and in the

			 geographic distribution of States operating MFP demonstration projects;</text>

									</subparagraph><subparagraph id="ID7114F129B36A4F81BD4503922EF0C775"><enum>(C)</enum><text>shall give

			 preference to State applications proposing—</text>

										<clause id="ID7FBAB030A3FF49F7A2E9238274237BEB"><enum>(i)</enum><text>to

			 provide transition assistance to eligible individuals within multiple target

			 groups; and</text>

										</clause><clause id="ID95368769CFAA448597EA54104E432E24"><enum>(ii)</enum><text>to

			 provide eligible individuals with the opportunity to receive home and

			 community-based long-term care services as self-directed services, as defined

			 in subsection (b)(8); and</text>

										</clause></subparagraph><subparagraph id="IDF62D774AF180478DB36245B6D4C6B942"><enum>(D)</enum><text>shall take such

			 objectives into consideration in setting the annual amounts of State grant

			 awards under this section.</text>

									</subparagraph></paragraph><paragraph id="ID79E25D29CDBF4AB0B9996B5A1C690C00"><enum>(3)</enum><header>Waiver

			 authority</header><text>The Secretary is authorized to waive the following

			 provisions of title XIX of the <act-name parsable-cite="SSA">Social Security

			 Act</act-name>, to the extent necessary to enable a State initiative to meet

			 the requirements and accomplish the purposes of this section:</text>

									<subparagraph id="IDFD2E1FCB038D43FAAB94DA3DAE487D9C"><enum>(A)</enum><header>Statewideness</header><text>Section

			 1902(a)(1), in order to permit implementation of a State initiative in a

			 selected area or areas of the State.</text>

									</subparagraph><subparagraph id="ID0471E02288DC44559D5C6E0F6CDADCD3"><enum>(B)</enum><header>Comparability</header><text>Section

			 1902(a)(10)(B), in order to permit a State initiative to assist a selected

			 category or categories of individuals described in subsection (b)(2)(A).</text>

									</subparagraph><subparagraph id="ID3F273D1C1A8C493D920808A4356EB9F1"><enum>(C)</enum><header>Income and

			 resources eligibility</header><text>Section 1902(a)(10)(C)(i)(III), in order to

			 permit a State to apply institutional eligibility rules to individuals

			 transitioning to community-based care.</text>

									</subparagraph><subparagraph id="ID4828ECFEAFFE4B43882AE772F7C0FE37"><enum>(D)</enum><header>Provider

			 agreements</header><text>Section 1902(a)(27), in order to permit a State to

			 implement self-directed services in a cost-effective manner.</text>

									</subparagraph></paragraph><paragraph id="ID2A7ADCD6ACAA48239E4B08C5BBC0797C"><enum>(4)</enum><header>Conditional

			 approval of outyear grant</header><text>In awarding grants under this section,

			 the Secretary shall condition the grant for the second and any subsequent

			 fiscal years of the grant period on the following:</text>

									<subparagraph id="ID8C1B1F77A92142B5922CE74B685C4B90"><enum>(A)</enum><header>Numerical

			 benchmarks</header><text>The State must demonstrate to the satisfaction of the

			 Secretary that it is meeting numerical benchmarks specified in the grant

			 agreement for—</text>

										<clause id="ID03AEBE5DD9A74466840A767F77B1E501"><enum>(i)</enum><text>increasing State

			 Medicaid support for home and community-based long-term care services under

			 subsection (c)(5); and</text>

										</clause><clause id="IDDF6980A118FE44D1AE41BDD264939DA5"><enum>(ii)</enum><text>numbers of

			 eligible individuals assisted to transition to qualified residences.</text>

										</clause></subparagraph><subparagraph id="IDD7200829A6C948A4A009B4CC901B14DB"><enum>(B)</enum><header>Quality of

			 care</header><text>The State must demonstrate to the satisfaction of the

			 Secretary that it is meeting the requirements under subsection (c)(11) to

			 assure the health and welfare of MFP demonstration project participants.</text>

									</subparagraph></paragraph></subsection><subsection id="ID3A40F28B7DFC4D809925AD63EF040884"><enum>(e)</enum><header>Payments to

			 States; Carryover of Unused Grant Amounts</header>

								<paragraph id="ID19620AE194884BE0BD5D73576C9BBADB"><enum>(1)</enum><header>Payments</header><text>For

			 each calendar quarter in a fiscal year during the period a State is awarded a

			 grant under subsection (d), the Secretary shall pay to the State from its grant

			 award for such fiscal year an amount equal to the lesser of—</text>

									<subparagraph id="IDF193B2B739CC4E6298F7B4303E5F1E98"><enum>(A)</enum><text>90 percent of the

			 amount of qualified expenditures made during such quarter; or</text>

									</subparagraph><subparagraph id="ID0A215D2ADFFF41239A307177A0F8B03A"><enum>(B)</enum><text>the total amount

			 remaining in such grant award for such fiscal year (taking into account the

			 application of paragraph (2)).</text>

									</subparagraph></paragraph><paragraph id="ID2BC346412F38426384ADFB42FFE92717"><enum>(2)</enum><header>Carryover of

			 unused amounts</header><text>Any portion of a State grant award for a fiscal

			 year under this section remaining at the end of such fiscal year shall remain

			 available to the State for the next 4 fiscal years, subject to paragraph

			 (3).</text>

								</paragraph><paragraph id="ID9A1823545EA7454E856AFA146387BD7D"><enum>(3)</enum><header>Reawarding of

			 certain unused amounts</header><text>In the case of a State that the Secretary

			 determines pursuant to subsection (d)(4) has failed to meet the conditions for

			 continuation of a MFP demonstration project under this section in a succeeding

			 year or years, the Secretary shall rescind the grant awards for such succeeding

			 year or years, together with any unspent portion of an award for prior years,

			 and shall add such amounts to the appropriation for the immediately succeeding

			 fiscal year for grants under this section.</text>

								</paragraph><paragraph id="IDA84FBF4334034906A92786772BADD29E"><enum>(4)</enum><header>Preventing

			 duplication of payment</header><text>The payment under a MFP demonstration

			 project with respect to qualified expenditures shall be in lieu of any payment

			 with respect to such expenditures that could otherwise be paid under Medicaid,

			 including under section 1903(a) of the <act-name parsable-cite="SSA">Social

			 Security Act</act-name>. Nothing in the previous sentence shall be construed as

			 preventing the payment under Medicaid for such expenditures in a grant year

			 after amounts available to pay for such expenditures under the MFP

			 demonstration project have been exhausted.</text>

								</paragraph></subsection><subsection id="IDB2D1A327D08A42AD8A0D4E915D8F7F13"><enum>(f)</enum><header>Quality

			 Assurance and Improvement; Technical Assistance; Oversight</header>

								<paragraph id="IDF2A006887D01440FB06A08E09A53C55A"><enum>(1)</enum><header>In

			 general</header><text>The Secretary, either directly or by grant or contract,

			 shall provide for technical assistance to, and oversight of, States for

			 purposes of upgrading quality assurance and quality improvement systems under

			 Medicaid home and community-based waivers, including—</text>

									<subparagraph id="IDFF8FD506708B4A24A4EC5169A61025C7"><enum>(A)</enum><text>dissemination of

			 information on promising practices;</text>

									</subparagraph><subparagraph id="ID8D012BC9FE384E0B916771D9D26AC3BB"><enum>(B)</enum><text>guidance on

			 system design elements addressing the unique needs of participating

			 beneficiaries;</text>

									</subparagraph><subparagraph id="ID0B35E306268846BC902E8366D4AC1AC8"><enum>(C)</enum><text>ongoing

			 consultation on quality, including assistance in developing necessary tools,

			 resources, and monitoring systems; and</text>

									</subparagraph><subparagraph id="ID583D29E8637D42A0ACF0C40CFDEAE215"><enum>(D)</enum><text>guidance on

			 remedying programmatic and systemic problems.</text>

									</subparagraph></paragraph><paragraph id="ID72F4E7A81A7A417F84EB4CB48AE2B267"><enum>(2)</enum><header>Funding</header><text>From

			 the amounts appropriated under subsection (h)(1) for the portion of fiscal year

			 2009 that begins on January 1, 2009, and ends on September 30, 2009, and for

			 fiscal year 2010, not more than $2,400,000 shall be available to the Secretary

			 to carry out this subsection during the period that begins on January 1, 2009,

			 and ends on September 30, 2013.</text>

								</paragraph></subsection><subsection id="ID644E1FEFE45440818927B07FF7350CC8"><enum>(g)</enum><header>Research and

			 Evaluation</header>

								<paragraph id="ID1830C60241D64652B7D59850B12A87FE"><enum>(1)</enum><header>In

			 general</header><text>The Secretary, directly or through grant or contract,

			 shall provide for research on, and a national evaluation of, the program under

			 this section, including assistance to the Secretary in preparing the final

			 report required under paragraph (2). The evaluation shall include an analysis

			 of projected and actual savings related to the transition of individuals to

			 qualified residences in each State conducting an MFP demonstration

			 project.</text>

								</paragraph><paragraph id="ID05EFD19789224116B7E41E39FD530757"><enum>(2)</enum><header>Final

			 report</header><text>The Secretary shall make a final report to the President

			 and Congress, not later than September 30, 2013, reflecting the evaluation

			 described in paragraph (1) and providing findings and conclusions on the

			 conduct and effectiveness of MFP demonstration projects.</text>

								</paragraph><paragraph id="ID08E15E1DADE34BFEA469C638093E3D32"><enum>(3)</enum><header>Funding</header><text>From

			 the amounts appropriated under subsection (h)(1) for each of fiscal years 2010

			 through 2013, not more than $1,100,000 per year shall be available to the

			 Secretary to carry out this subsection.</text>

								</paragraph></subsection><subsection id="IDA034B8FEDD1B4AC98986964DD9F8B0F5"><enum>(h)</enum><header>Appropriations</header>

								<paragraph id="ID18BC5AD8B34340588A68E7C82AA045EC"><enum>(1)</enum><header>In

			 general</header><text>There are appropriated, from any funds in the Treasury

			 not otherwise appropriated, for grants to carry out this section—</text>

									<subparagraph id="IDE3B7FE5879CC4815A1186C6C5B1DE684"><enum>(A)</enum><text>$250,000,000 for

			 the portion of fiscal year 2009 beginning on January 1, 2009, and ending on

			 September 30, 2009;</text>

									</subparagraph><subparagraph id="ID24154540D95E408DBE79F5661D4F403A"><enum>(B)</enum><text>$300,000,000 for

			 fiscal year 2010;</text>

									</subparagraph><subparagraph id="IDE15DBB6F5D964B5EAB71E8FFA12BE9DC"><enum>(C)</enum><text>$350,000,000 for

			 fiscal year 2011;</text>

									</subparagraph><subparagraph id="IDF2137DF8633D493D8AF5ED7588B93115"><enum>(D)</enum><text>$400,000,000 for

			 fiscal year 2012; and</text>

									</subparagraph><subparagraph id="ID554182794F7E43749057267DFB7CFE77"><enum>(E)</enum><text>$450,000,000 for

			 fiscal year 2013.</text>

									</subparagraph></paragraph><paragraph id="ID3123229490DB46538DDBEF977B67A394"><enum>(2)</enum><header>Availability</header><text>Amounts

			 made available under paragraph (1) for a fiscal year shall remain available for

			 the awarding of grants to States by not later than September 30, 2013.</text>

								</paragraph></subsection></section></subchapter></chapter><chapter id="ID64D3C2E81E304B59B0EF6240EE1770DD"><enum>6</enum><header>OPTION FOR

			 HURRICANE KATRINA DISASTER STATES TO DELAY APPLICATION</header>

					<section id="ID9F1FB323D8674227AC8F477AA2B90E29"><enum>6071.</enum><header>Option for

			 Hurricane Katrina disaster States to delay application</header><text display-inline="no-display-inline">Notwithstanding any provision of this

			 subtitle, or any amendment made by this subtitle, the State of Louisiana,

			 Mississippi, or Alabama may elect to not have the provisions of this subtitle,

			 or of any amendment made by this subtitle, apply with respect to the State

			 during any period for which a major disaster declared in accordance with

			 section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance

			 Act (42 U.S.C. 5170) with respect to a parish, in the case of Louisiana, or a

			 county, in the case of Mississippi or Alabama, as a result of Hurricane Katrina

			 is in effect.</text>

					</section></chapter></subtitle><subtitle id="ID40FC2FC19F8D48F6A311BE5FDB24DC39"><enum>B</enum><header>Medicare</header>

				<section id="IDAA2BF1633F9C43288D70B9C4BD1E43D7"><enum>6101.</enum><header>Improvements

			 to the Medicare-dependent hospital (mdh) Program</header>

					<subsection id="ID0ADF239872E24CC1A553B10808DD5398"><enum>(a)</enum><header>5-Year

			 Extension</header>

						<paragraph id="ID99EFFE2908364D318B8439DC003B2BD3"><enum>(1)</enum><header>Extension of

			 Payment Methodology</header><text>Section 1886(d)(5)(G) (42 U.S.C.

			 1395ww(d)(5)(G)) is amended—</text>

							<subparagraph id="ID78A94FC6138741F39FEB50F3D7B6C12A"><enum>(A)</enum><text>in clause (i), by

			 striking <quote>October 1, 2006</quote> and inserting <quote>October 1,

			 2011</quote>; and</text>

							</subparagraph><subparagraph id="ID5CDCA179123E43D3A6223C7B415D3BFC"><enum>(B)</enum><text>in clause

			 (ii)(II)—</text>

								<clause id="IDBAD237635A604D4A94890AB2D94B9F36"><enum>(i)</enum><text>by

			 striking <quote>October 1, 2006</quote> and inserting <quote>October 1,

			 2011</quote>; and</text>

								</clause><clause id="ID210BA7D65EE64E7BA78ACB551525D22B"><enum>(ii)</enum><text>by

			 inserting <quote>or for discharges in the fiscal year</quote> after <quote>for

			 the cost reporting period</quote>.</text>

								</clause></subparagraph></paragraph><paragraph id="ID15313B32C8424E5A868353C2B18D5E27"><enum>(2)</enum><header>Conforming

			 amendments</header>

							<subparagraph id="IDC341E7DBF6644BB78DEFDF8F850B1400"><enum>(A)</enum><header>Extension of

			 target amount</header><text>Section 1886(b)(3)(D) (42 U.S.C. 1395ww(b)(3)(D))

			 is amended—</text>

								<clause id="ID65F79D4034AA4E30A7098EF071D3282F"><enum>(i)</enum><text>in

			 the matter preceding clause (i)—</text>

									<subclause id="ID734B1071E9C3439A8D9D3E38BB424920"><enum>(I)</enum><text>by striking

			 <quote>beginning</quote> and inserting <quote>occurring</quote>; and</text>

									</subclause><subclause id="ID7EB64CB3ECF2475E90D6A15ECEFE2D9D"><enum>(II)</enum><text>by striking

			 <quote>October 1, 2006</quote> and inserting <quote>October 1, 2011</quote>;

			 and</text>

									</subclause></clause><clause id="IDE85389F1DFE341A49F489606F11CBD90"><enum>(ii)</enum><text>in

			 clause (iv), by striking <quote>through fiscal year 2005</quote> and inserting

			 <quote>through fiscal year 2011</quote>.</text>

								</clause></subparagraph><subparagraph id="ID3DB7D7DB25D646EF9F882B8EBE45EC38"><enum>(B)</enum><header>Permitting

			 hospitals to decline reclassification</header><text>Section 13501(e)(2) of the

			 <act-name parsable-cite="OBRA93">Omnibus Budget Reconciliation Act of

			 1993</act-name> (42 U.S.C. 1395ww note) is amended by striking <quote>through

			 fiscal year 2005</quote> and inserting <quote>through fiscal year

			 2011</quote>.</text>

							</subparagraph></paragraph></subsection><subsection id="ID041332A243504F8FA55FBAFC7A4C691B"><enum>(b)</enum><header>Option to Use

			 of 2002 as Base Year</header><text>Section 1886(b)(3) (42 U.S.C. 1395ww(b)(3))

			 is amended—</text>

						<paragraph id="IDF8CB2D9A90E643A3BA6D8901CDF96828"><enum>(1)</enum><text>in subparagraph

			 (D), by inserting <quote>subject to subparagraph (K),</quote> after

			 <quote>(d)(5)(G)),</quote>; and</text>

						</paragraph><paragraph id="IDC298392205744894ABFEB3DC9D2832A0"><enum>(2)</enum><text>by adding at the

			 end the following new subparagraph:</text>

							<quoted-block id="ID651F7B628ED345D6B20E2A09B2268B31" style="OLC">

								<subparagraph id="ID298A0B77AE944E6C9E1E198E340F8B09" indent="up2"><enum>(K)</enum><clause commented="no" display-inline="yes-display-inline" id="IDDDF56E38DC654152AB8CC97950F740BD"><enum>(i)</enum><text>With respect to

				discharges occurring on or after October 1, 2006, in the case of a

				medicare-dependent, small rural hospital, for purposes of applying subparagraph

				(D)—</text>

										<subclause id="ID6554E53FB8314FC2BD0A4BB98064D3FA" indent="up1"><enum>(I)</enum><text>there shall be substituted for the

				base cost reporting period described in subparagraph (D)(i) the 12-month cost

				reporting period beginning during fiscal year 2002; and</text>

										</subclause><subclause id="IDD4FE2BEC380D4F77BE88676E0BE0B0B1" indent="up1"><enum>(II)</enum><text>any reference in such subparagraph to

				the <quote>first cost reporting period</quote> described in such subparagraph

				is deemed a reference to the first cost reporting period beginning on or after

				October 1, 2006.</text>

										</subclause></clause><clause id="ID8C9935E0A8DE44E9B084A02E529BD912" indent="up1"><enum>(ii)</enum><text>This subparagraph shall only apply

				to a hospital if the substitution described in clause (i)(I) results in an

				increase in the target amount under subparagraph (D) for the

				hospital.</text>

									</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></subsection><subsection id="IDAFBE0C8DA59D4DA68DD8CBFB48456BA1"><enum>(c)</enum><header>Enhanced

			 Payment for Amount by Which the Target Exceeds the PPS

			 Rate</header><text>Section 1886(d)(5)(G)(ii)(II) (42 U.S.C.

			 1395ww(d)(5)(G)(iv)(II)) is amended by inserting <quote>(or 75 percent in the

			 case of discharges occurring on or after October 1, 2006)</quote> after

			 <quote>50 percent</quote>.</text>

					</subsection><subsection id="ID19076EE02DF1496BB207C2BA0DE61D99"><enum>(d)</enum><header>Enhanced

			 Disproportionate Share Hospital (DSH) Treatment for Medicare Dependent

			 Hospitals</header><text>Section 1886(d)(5)(F)(xiv)(II) (42 U.S.C.

			 1395ww(d)(5)(F)(xiv)(II)) is amended by inserting <quote>or, in the case of

			 discharges occurring on or after October 1, 2006, as a medicare-dependent,

			 small rural hospital under subparagraph (G)(iv)</quote> before the period at

			 the end.</text>

					</subsection></section><section id="ID4FDAF6FFC8384826963A2FB8DB96407B"><enum>6102.</enum><header>Reduction in

			 payments to skilled nursing facilities for bad debt</header>

					<subsection id="IDB87A82E4299E482793BC56D8E9C4F287"><enum>(a)</enum><header>In

			 General</header><text>Section 1861(v)(1) (42 U.S.C. 1395x(v)(1)) is amended by

			 adding at the end the following new subparagraph:</text>

						<quoted-block id="IDC7501C23BD404741AA793AC0BC730912" style="OLC">

							<subparagraph id="IDC7989D4A2B4341A3B6572B3361AE0885" indent="up2"><enum>(V)</enum><text>In determining such reasonable costs

				for skilled nursing facilities with respect to services furnished on or after

				October 1, 2005, the amount of bad debts otherwise treated as allowed costs

				which are attributable to the deductibles and coinsurance amounts under this

				title shall be reduced by 30 percent of such amount otherwise

				allowable.</text>

							</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="IDA7C66AD1CB664ABEB69A9DF6D86EF0FE"><enum>(b)</enum><header>Technical

			 Amendment</header><text>Section 1861(v)(1)(T) (42 U.S.C. 1395x(v)(1)(T)) is

			 amended by striking <quote>section 1833(t)(5)(B)</quote> and inserting

			 <quote>section 1833(t)(8)(B)</quote>.</text>

					</subsection></section><section id="ID375D76C7C3334517B8963B1DFF6CFA41"><enum>6103.</enum><header>Two-year

			 extension of the 50 percent compliance threshold used to determine whether a

			 hospital or unit of a hospital is an Inpatient Rehabilitation Facility under

			 the Medicare Program</header>

					<subsection id="ID7884A23025E84A6C9F7D673836BB8E69"><enum>(a)</enum><header>Extension</header>

						<paragraph id="IDB047AA6ADFE24309AAE06CE239E2283E"><enum>(1)</enum><header>In

			 general</header><text>Effective as if enacted on June 30, 2005, notwithstanding

			 section 412.23(b)(2) of title 42, Code of Federal Regulations, during the

			 period beginning on July 1, 2005, and ending on June 30, 2007, the Secretary of

			 Health and Human Services shall not—</text>

							<subparagraph id="ID8BB9A5EABDB4468D98E2C1084CB88892"><enum>(A)</enum><text>require a

			 compliance rate, pursuant to the criterion (commonly known as the <quote>75

			 percent rule</quote>) that is used to determine whether a hospital or unit of a

			 hospital is an inpatient rehabilitation facility (as defined in the rule

			 published in the Federal Register on May 7, 2004, entitled <quote>Medicare

			 Program; Final Rule; Changes to the Criteria for Being Classified as an

			 Inpatient Rehabilitation Facility</quote> (69 Fed. Reg. 25752)), that is

			 greater than the 50 percent compliance threshold that became effective on July

			 1, 2004; or</text>

							</subparagraph><subparagraph id="ID2B4E94DFDF57411384F6F58FFA23095F"><enum>(B)</enum><text>change the

			 designation of an inpatient rehabilitation facility that is in compliance with

			 such 50 percent threshold.</text>

							</subparagraph></paragraph><paragraph id="ID8CF2CDB5737D49FCA5AA567EA5F8177F"><enum>(2)</enum><header>Retroactive

			 Status as an Inpatient Rehabilitation Facility; Payments; Expedited

			 Review</header><text>The Secretary of Health and Human Services shall establish

			 procedures for—</text>

							<subparagraph id="IDE706A2E13DFE4A5CAD34A12972A7DFF7"><enum>(A)</enum><text>making any

			 necessary retroactive adjustment to restore the status of a facility as an

			 inpatient rehabilitation facility as a result of subsection (a); and</text>

							</subparagraph><subparagraph id="IDCC6BA20E29D44823ADC3F3BC77FB388C"><enum>(B)</enum><text>making any

			 necessary payments to inpatient rehabilitation facilities based on such

			 adjustment for discharges occurring on or after July 1, 2005, and before the

			 date of enactment of this Act.</text>

							</subparagraph></paragraph></subsection><subsection id="ID26258BA2CBC64437BA51E32AB68DF918"><enum>(b)</enum><header>Special

			 Rule</header><text>In the case of a hospital or unit of a hospital that failed

			 to meet the 50 percent compliance threshold described in subsection (a)(1)(A)

			 with respect to the first cost reporting period of the hospital or unit that

			 began on or after July 1, 2004, the following rules shall apply:</text>

						<paragraph id="IDD551D588E8324527BC2ADA036E9F5423"><enum>(1)</enum><text>Such hospital or

			 unit shall be deemed to meet such 50 percent threshold for purposes of

			 subsection (a).</text>

						</paragraph><paragraph id="ID4074B61E80B94E5183C94B84101F5BED"><enum>(2)</enum><text>The Secretary

			 shall examine all the claims of the hospital or unit under title XVIII of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> submitted during

			 the 6-month period beginning after the end of such first cost reporting

			 period.</text>

						</paragraph><paragraph id="ID87AA486B4A9A4E8F8255AE3EF67CCD9C"><enum>(3)</enum><text>If the Secretary

			 determines after such review that the hospital or unit is still not in

			 compliance with such 50 percent compliance threshold—</text>

							<subparagraph id="ID1CEFF6C5D4F5423080D4B440FB2D7EF1"><enum>(A)</enum><text>the deemed status

			 of the hospital or unit under paragraph (1) shall be revoked retroactive to the

			 beginning of such 6-month period; and</text>

							</subparagraph><subparagraph id="ID203B5275C7964B4194FAD5AF6C425CC2"><enum>(B)</enum><text>the Secretary

			 shall provide for the collection of any necessary overpayments by reason of the

			 revocation under subparagraph (A).</text>

							</subparagraph></paragraph></subsection><subsection id="ID45EFD03DED434FDDB9F8AFE56DB4693D"><enum>(c)</enum><header>Study and

			 Report by the HHS Inspector General</header>

						<paragraph id="IDFFC7E896B16B47CB883606FD7248F351"><enum>(1)</enum><header>Study</header>

							<subparagraph id="ID5C844D9CAF904FB0B30F6FBD826F057A"><enum>(A)</enum><header>In

			 general</header><text>The Inspector General of the Department of Health and

			 Human Services shall conduct a study of hospitals and units of hospitals

			 that—</text>

								<clause id="ID0BDBF15BF7BC477398AC021EAB7554C5"><enum>(i)</enum><text>are

			 designated as inpatient rehabilitation facilities under title XVIII of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name>; and</text>

								</clause><clause id="ID31BEBB0D669643488C147B72AAC91827"><enum>(ii)</enum><text>would not be so

			 designated if this section had not been enacted because the hospital or unit

			 has a compliance rate that is greater than the 50 percent compliance threshold

			 described in subsection (a)(1)(A) but is less than the 60 percent compliance

			 threshold that would have become effective on July 1, 2005, but for this

			 section.</text>

								</clause></subparagraph><subparagraph id="IDAE4B16A786D14FAAB3FB0E61BFAFBD3A"><enum>(B)</enum><header>Requirement</header><text>In

			 conducting the study under subparagraph (A), the Inspector General shall

			 analyze the types of patients the hospitals and units are treating and issues

			 relating to the medical conditions of such patients that do not meet the

			 medical requirements for determining compliance with such threshold.</text>

							</subparagraph></paragraph><paragraph id="IDD452D9DE17D24C718546C3F3C14B42B3"><enum>(2)</enum><header>Report</header><text>Not

			 later than January 1, 2007, the Inspector General shall submit to Congress and

			 the Secretary a report on the study conducted under paragraph (1), together

			 with such recommendations as the Inspector General determines

			 appropriate.</text>

						</paragraph></subsection><subsection id="IDA6718CED09814C9F97F528E8FF9F0815"><enum>(d)</enum><header>Rehabilitation

			 Advisory Council</header>

						<paragraph id="ID331C7602B36E46CABE56BF20843BE4E0"><enum>(1)</enum><header>Establishment</header><text>The

			 Secretary shall establish an advisory council to be known as the

			 <quote>Rehabilitation Advisory Council</quote>.</text>

						</paragraph><paragraph id="IDC3856B8ACC0B4BAA85E6334C1761280E"><enum>(2)</enum><header>Membership</header><text>The

			 membership of the Rehabilitation Advisory Council shall include—</text>

							<subparagraph id="ID1EDDA4C4DBBF4393A5B1C7B51B78165D"><enum>(A)</enum><text>physicians;</text>

							</subparagraph><subparagraph id="ID05ED7C5F863046C8A85B0BA6951DB44F"><enum>(B)</enum><text>Medicare

			 beneficiaries;</text>

							</subparagraph><subparagraph id="ID4C86512D103E4A0BAF0639BBB8932084"><enum>(C)</enum><text>representatives

			 of inpatient rehabilitation facilities; and</text>

							</subparagraph><subparagraph id="ID5FCC88B0BCFF430DBE06CDDA032FD1BB"><enum>(D)</enum><text>representatives

			 of other entities and practitioners that provide rehabilitative care in

			 settings other than in such facilities, such as skilled nursing

			 facilities.</text>

							</subparagraph></paragraph><paragraph id="IDEFB55C08F366490EB8ED24BAF7079210"><enum>(3)</enum><header>Duties</header>

							<subparagraph id="ID5B0F398C89284DFD9EC587EB8410E0F4"><enum>(A)</enum><header>Advice and

			 recommendations</header><text>The Rehabilitation Advisory Council shall provide

			 advice and recommendations to Congress and the Secretary concerning the

			 coverage of rehabilitation services under the Medicare program, including the

			 appropriate medical criteria for determining the appropriateness of inpatient

			 rehabilitation facility admissions.</text>

							</subparagraph><subparagraph id="ID73FB60F15B474C56AEB436FF09067912"><enum>(B)</enum><header>Periodic

			 reports</header><text>The Rehabilitation Advisory Council shall provide

			 Congress and the Secretary with periodic reports that summarize—</text>

								<clause id="IDA3D0BD5B874A4ED79B5F663CEC443147"><enum>(i)</enum><text>the

			 Council’s activities; and</text>

								</clause><clause id="ID39FC2D52D2784FF68F4EF1A5AFFAAB7B"><enum>(ii)</enum><text>any

			 recommendations for legislation or administrative action the Council considers

			 to be appropriate.</text>

								</clause></subparagraph></paragraph><paragraph id="ID848A4D8C1FCC4A9794271EF04AB51AF9" indent="down1"><enum>(4)</enum><header>Termination</header><text>The

			 Rehabilitation Advisory Council shall terminate on September 30, 2010.</text>

						</paragraph></subsection></section><section id="IDB19AF032C19A447FB71907F53B11D3D6"><enum>6104.</enum><header>Prohibition

			 on physician self referrals to physician owned, limited service

			 hospitals</header>

					<subsection id="ID8656BD903872414A801E5B976E9D5FA3"><enum>(a)</enum><header>Prohibition</header><text>Section

			 1877(d) (42 U.S.C. 1395nn(d)) is amended in each of paragraphs (2)(B) and

			 (3)(B) by striking <quote>effective for the 18-month period beginning on the

			 date of enactment of the Medicare Prescription Drug, Improvement, and

			 Modernization Act of 2003</quote> and inserting <quote>on and after December 8,

			 2003</quote>.</text>

					</subsection><subsection id="ID9A8AA04D7002480DA4FD90B17C016E73"><enum>(b)</enum><header>Revisions to

			 the Requirements To Qualify for the Exception to the Definition of Specialty

			 Hospital</header><text>Section 1877(h)(7)(B) (42 U.S.C. 1395nn(h)(7)(B)) is

			 amended—</text>

						<paragraph id="IDCED1537FD65A47B381E0CC2EB117F5D0"><enum>(1)</enum><text>by redesignating

			 clauses (iii), (iv), and (v) as clauses (vi), (vii), and (viii),

			 respectively;</text>

						</paragraph><paragraph id="ID7FB92F09C9B446B8BAC5A56F16BFFB6A"><enum>(2)</enum><text>by inserting

			 after clause (ii) the following new clauses:</text>

							<quoted-block id="ID937ED28D7FF7412485A62215A16818DD" style="OLC">

								<clause id="ID4E60A63830374CBF98565A6CAA024298"><enum>(iii)</enum><text>for which the

				percent of investment in the hospital by physician investors at any time on or

				after June 8, 2005, is no greater than the percent of such investment by

				physician investors as of such date;</text>

								</clause><clause id="ID1B87FCE8D50944A587CCEBDC4D10D441"><enum>(iv)</enum><text>for which the

				percent of investment in the hospital by any physician investor at any time on

				or after June 8, 2005, is no greater than the percent of such investment by

				such physician as of such date;</text>

								</clause><clause id="ID23CC9C29B4084ECB841C231805F152A3"><enum>(v)</enum><text>for which the

				number of operating rooms at the hospital at any time on or after June 8, 2005,

				is no greater than the number of such rooms as of such

				date;</text>

								</clause><after-quoted-block>;

				and</after-quoted-block></quoted-block>

						</paragraph><paragraph id="IDE2C3445E64AA46E1BB673845AAA89BF0"><enum>(3)</enum><text>by striking

			 clause (vii), as so redesignated, and inserting the following:</text>

							<quoted-block id="ID6BB76BEE6F574C27BA28D721FE105F63" style="OLC">

								<clause id="ID80926BD266A04580A605EE5895720B14"><enum>(vii)</enum><text>for

				which—</text>

									<subclause id="ID787D0EED031E4EC39660CF03841205A3"><enum>(I)</enum><text>during the period

				beginning on December 8, 2003, and ending on June 7, 2005, any increase in the

				number of beds occurs only in the facilities on the main campus of the hospital

				and does not exceed 50 percent of the number of beds in the hospital as of

				November 18, 2003, or 5 beds, whichever is greater; and</text>

									</subclause><subclause id="IDBCF959844D6648A397D9B7688F99D875"><enum>(II)</enum><text>the number of

				beds at the hospital at any time on or after June 8, 2005, is no greater than

				the number of such beds as of such date;

				and</text>

									</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></subsection><subsection id="IDFCA1728FDF79407F953056DE6D0852C5"><enum>(c)</enum><header>Effective

			 Date</header><text>The amendments made by this section shall take effect on

			 June 8, 2005.</text>

					</subsection></section><section id="IDC1827CDB22744BB0B3603AD7EC80BCA2"><enum>6105.</enum><header>Minimum

			 update for physicians’ services for 2006</header>

					<subsection id="IDCD04C32111ED4A15ADC95A2B26A4F105"><enum>(a)</enum><header>Minimum Update

			 for 2006</header><text>Section 1848(d) (42 U.S.C. 1395w–4(d)), as amended by

			 section 6110(c), is amended by adding at the end the following new

			 paragraph:</text>

						<quoted-block id="ID7F12A49BD21C42268A5FED7CC78E6077" style="OLC">

							<paragraph id="ID03BB02D01B654722A49B2333FCBA1118"><enum>(7)</enum><header>Update for

				2006</header><text>The update to the single conversion factor established in

				paragraph (1)(C) for 2006 shall be not less than 1

				percent.</text>

							</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="IDD7FE8639B6B44B9C9198AEE3C31B4AC7"><enum>(b)</enum><header>Conforming

			 Amendment</header><text>Section 1848(d)(4)(B) (42 U.S.C. 1395w–4(d)(4)(B)) is

			 amended, in the matter preceding clause (i), by striking <quote>paragraph

			 (5)</quote> and inserting <quote>paragraphs (5) and (7)</quote>.</text>

					</subsection><subsection id="IDD9A2CF7BB50449A5ABF27697E7CF4265"><enum>(c)</enum><header>Not Treated as

			 Change in Law and Regulation in Sustainable Growth Rate

			 Determination</header><text>The amendments made by this section shall not be

			 treated as a change in law for purposes of applying section 1848(f)(2)(D) of

			 the <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1395w–4(f)(2)(D)).</text>

					</subsection></section><section id="ID5180F836A2054355A014242E71CB69A8"><enum>6106.</enum><header>One-year

			 extension of hold harmless provisions for small rural hospitals and sole

			 community hospitals under the prospective payment system for hospital

			 outpatient Department services</header><text display-inline="no-display-inline">Section 1833(t)(7)(D)(i) (42 U.S.C.

			 1395l(t)(7)(D)(i)) is amended by striking <quote>January 1, 2006</quote> and

			 inserting <quote>January 1, 2007</quote>.</text>

				</section><section id="IDD4529E5B5EEF418FBB083F0EC458648E"><enum>6107.</enum><header>Update to the

			 composite rate component of the basic case-mix adjusted prospective payment

			 system for dialysis services</header><text display-inline="no-display-inline">Section 1881(b)(12) (42 U.S.C.

			 1395rr(b)(12)) is amended—</text>

					<paragraph id="ID4FD81D3CA1374870BEFAE41E9765EC04"><enum>(1)</enum><text>in subparagraph

			 (F), in the flush matter at the end, by striking <quote>Nothing</quote> and

			 inserting <quote>Except as provided in subparagraph (G),

			 nothing</quote>;</text>

					</paragraph><paragraph id="ID6F970C6CF804480384AE2D877872731E"><enum>(2)</enum><text>by redesignating

			 subparagraph (G) as subparagraph (H); and</text>

					</paragraph><paragraph id="IDA455E8FE123246C7812E28E6654051E5"><enum>(3)</enum><text>by inserting

			 after subparagraph (F) the following new subparagraph:</text>

						<quoted-block id="ID3C0DA5F546B344719C108C5AEE06E750" style="OLC">

							<subparagraph id="ID8F01564061124CE69A3F3984A7822624" indent="up2"><enum>(G)</enum><text>The Secretary shall increase the

				amount of the composite rate component of the basic case-mix adjusted system

				under subparagraph (B) for dialysis services furnished on or after January 1,

				2006, by 1.6 percent above the amount of such composite rate component for such

				services furnished on December 31,

				2005.</text>

							</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</paragraph></section><section id="IDD969D89910B64EDD8133BD129781C286"><enum>6108.</enum><header>One-year

			 extension of moratorium on therapy caps</header><text display-inline="no-display-inline">Section 1833(g)(4) (42 U.S.C. 1395l(g)(4))

			 is amended by striking <quote>and 2005</quote> and inserting <quote>2005, and

			 2006</quote>.</text>

				</section><section id="ID7C5D0DB085DC4913AAC012E9EA6892FD"><enum>6109.</enum><header>Transfer of

			 title of certain DME to patient after 13-MONTH rental</header>

					<subsection id="ID115759F65B594F4B8B0063F9FE5ADE1B"><enum>(a)</enum><header>In

			 General</header><text>Section 1834(a)(7)(A) (42 U.S.C. 1395m(a)(7)(A)) is

			 amended to read as follows:</text>

						<quoted-block id="ID917484C5965540708520A95AEE401EE7" style="OLC">

							<subparagraph id="ID69DC206BDB8242008765555F6979C4F6"><enum>(A)</enum><header>Payment</header><text>In

				the case of an item of durable medical equipment not described in paragraphs

				(2) through (6), the following rules shall apply:</text>

								<clause id="IDAFA2A7F8AE714EEE9809AA2FAD6B0055"><enum>(i)</enum><header>Rental</header>

									<subclause id="ID48D403E3CA224A24AFF1A3FA073D4DC9"><enum>(I)</enum><header>In

				general</header><text>Payment for the item shall be made on a monthly basis for

				the rental of the item during the period of medical need (but payments under

				this clause may not extend over a period of continuous use (as determined by

				the Secretary) of longer than 13 months).</text>

									</subclause><subclause id="IDDB168412C2AE498C8D5D3D149B6644D9"><enum>(II)</enum><header>Payment

				amount</header><text>Subject to subparagraph (B), the amount recognized for the

				item—</text>

										<item id="IDAE287C00400C49F68BFE4930417FC195"><enum>(aa)</enum><text>for each of the

				first 3 months of such period is 10 percent of the purchase price recognized

				under paragraph (8) with respect to the item; and</text>

										</item><item id="ID2CB7F6CBF93742B7B8C6F3BB9D93CD9D"><enum>(bb)</enum><text>for each of the

				remaining months of such period is 7.5 percent of such purchase price.</text>

										</item></subclause></clause><clause id="IDBC918C1956204801A6992E49E900833A"><enum>(ii)</enum><header>Ownership

				after rental</header>

									<subclause id="ID971ACBDC7EA74058AA43F11488E52005"><enum>(I)</enum><header>Transfer of

				title</header><text>On the first day that begins after the 13th continuous

				month during which payment is made for the rental of an item under clause (i),

				the supplier of the item shall transfer title to the item to the

				individual.</text>

									</subclause><subclause id="ID2CB2D7BD746C46E09A09237BA513057F"><enum>(II)</enum><header>Maintenance

				and servicing</header><text>After the supplier transfers title to the item

				under subclause (I), maintenance and servicing payments shall, if the Secretary

				determines such payments are reasonable and necessary, be made (for parts and

				labor not covered by the supplier’s or manufacturer’s warranty, as determined

				by the Secretary to be appropriate for the particular type of durable medical

				equipment), and such payments shall be in an amount determined to be

				appropriate by the

				Secretary.</text>

									</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="ID7BAF0DB1E199451F9D465C3F2D48E97D"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendment made by subsection (a) shall apply to items

			 furnished for which the first rental month occurs on or after January 1,

			 2006.</text>

					</subsection></section><section id="ID326848CFFFBF425B869633FCAFFEBEE9"><enum>6110.</enum><header>Establishment

			 of Medicare Value-Based purchasing programs</header>

					<subsection id="ID0B07668610574F60AE4C810485468995"><enum>(a)</enum><header>In

			 General</header><text>Title XVIII (42 U.S.C. 1395 et seq.) is amended—</text>

						<paragraph id="IDD8FE99BC3A0E4661BF57E49F703AFA59"><enum>(1)</enum><text>by redesignating

			 part E as part F; and</text>

						</paragraph><paragraph id="IDC96C8078539D475892871AE06FEA8CDC"><enum>(2)</enum><text>by inserting

			 after part D the following new part:</text>

							<quoted-block id="IDC6B6C68BD1E447ABBBCC1155919B6E84" style="traditional">

								<part id="IDC648198D342E4F27A239DD18EC52ACEC"><enum>E</enum><header>Value-Based

				Purchasing</header>

									<section id="IDD4A20561E5424A348A368F3DC8676DA8"><enum>1860E–1.</enum><header>Quality measurement systems for Value-Based

		  purchasing programs</header><subsection commented="no" display-inline="yes-display-inline" id="IDD2DB9523C22F42CBB2811F8C99CF9D1E"><enum>(a)</enum><header>Establishment</header>

											<paragraph id="IDA20CE46F5ECC47A3B1254BE48BA78A64"><enum>(1)</enum><header>In

				general</header><text>The Secretary shall develop quality measurement systems

				in accordance with subsections (b), (c), (d), and (e), for purposes of

				providing value-based payments to—</text>

												<subparagraph id="ID0D6F91A45E3845CFAC1624D113C29CDC"><enum>(A)</enum><text>hospitals

				pursuant to section 1860E–2;</text>

												</subparagraph><subparagraph id="ID8137688BED16443DA78173C7176E5FBA"><enum>(B)</enum><text>physicians and

				practitioners pursuant to section 1860E–3;</text>

												</subparagraph><subparagraph id="IDA235E09430164F53AC2EA89E8254A5EA"><enum>(C)</enum><text>plans pursuant to

				section 1860E–4;</text>

												</subparagraph><subparagraph id="ID457B53E9C3804839888633C27792D108"><enum>(D)</enum><text>end stage renal

				disease providers and facilities pursuant to section 1860E–5; and</text>

												</subparagraph><subparagraph id="ID133897ED11404A6CBB99CB93C08FA4FF"><enum>(E)</enum><text>home health

				agencies pursuant to section 1860E–6.</text>

												</subparagraph></paragraph><paragraph id="ID7898EFCEDBAF4AB2B910CD4DDE585821"><enum>(2)</enum><header>Quality</header><text>The

				systems developed under paragraph (1) shall measure the quality of the care

				furnished by the provider involved.</text>

											</paragraph><paragraph id="ID8ED40C1150BF4A98B6B5ED7E1D3E2461"><enum>(3)</enum><header>High quality

				health care defined</header><text>In this part, the term <term>high quality

				health care</term> means health care that is safe, effective, patient-centered,

				timely, equitable, efficient, necessary, and appropriate.</text>

											</paragraph></subsection><subsection id="ID7DFD45E06C4E470F955AD3D769EA819D"><enum>(b)</enum><header>Requirements

				for Systems</header><text>Under each quality measurement system described in

				subsection (a)(1), the Secretary shall do the following:</text>

											<paragraph id="IDD6071CC0EEF34F92800D899706C74A10"><enum>(1)</enum><header>Measures</header>

												<subparagraph id="ID9C567A151CC140B99812592C5643206E"><enum>(A)</enum><header>In

				general</header><text>Subject to subparagraph (B), the Secretary shall select

				measures of quality to be used by the Secretary under each system.</text>

												</subparagraph><subparagraph id="IDBAE16B8FFD9647679E02A060F6B59E8E"><enum>(B)</enum><header>Requirements</header><text>In

				selecting the measures to be used under each system pursuant to subparagraph

				(A), the Secretary shall, to the extent feasible and practicable, ensure

				that—</text>

													<clause id="IDB9FD51A05BD6440C91579A32D8DC6540"><enum>(i)</enum><text>such measures are

				evidence-based, reliable and valid, actionable, and reasonable to collect and

				report;</text>

													</clause><clause id="IDE287C56D98CA47F9844C5EC14802CDFE"><enum>(ii)</enum><text>measures of

				process, structure, outcomes, and beneficiary experience of care are

				included;</text>

													</clause><clause id="ID516F6CDC1D174CCD8EC4C21247C9BEEB"><enum>(iii)</enum><text>except for the

				system that is used to provide value-based payments to physicians and

				practitioners under section 1860E–3, measures of efficiency (where efficiency

				is improved quality care through the effective use of resources) are

				included;</text>

													</clause><clause id="IDDEF4B96FC33C432E8C4DF9AC12FBC0FD"><enum>(iv)</enum><text>measures of

				overuse and underuse of health care items and services are included;</text>

													</clause><clause id="ID9110A3B5A6E844E297E0691183C4807E"><enum>(v)</enum><subclause commented="no" display-inline="yes-display-inline" id="ID25DADF699A294824BC3E9AE02D4CBFDB"><enum>(I)</enum><text>at least 1 measure of

				health information technology infrastructure that enables the provision of high

				quality health care and facilitates the exchange of health information, such as

				the use of 1 or more elements of a qualified health information system (as

				defined in subparagraph (E)), is included during the first year each system is

				implemented; and</text>

														</subclause><subclause id="ID6344F6DCF8F04072A2D312DBBC32D216" indent="up1"><enum>(II)</enum><text>additional measures of health

				information technology infrastructure are included in subsequent years;</text>

														</subclause></clause><clause id="ID4CD225526EF9436B9F66D668DC16FCD6"><enum>(vi)</enum><text>in the case of

				the system that is used to provide value-based payments to hospitals under

				section 1860E–2, by not later than January 1, 2008, at least 5 measures that

				take into account the unique characteristics of small hospitals located in

				rural areas and frontier areas are included; and</text>

													</clause><clause id="IDBFA97FA794B045F3AFC76BA00D6A33A6"><enum>(vii)</enum><text>measures that

				assess the quality of care furnished to frail individuals over the age of 75

				and to individuals with multiple complex chronic conditions are

				included.</text>

													</clause></subparagraph><subparagraph id="IDE7736A6843544E2FA202A16E837D3C9F"><enum>(C)</enum><header>Requirement for

				collection of data on a measure for 1 year prior to use under the

				systems</header><text>Data on any measure selected by the Secretary under

				subparagraph (A) must be collected by the Secretary for at least a 12-month

				period before such measure may be used to determine whether a provider receives

				a value-based payment under a program described in subsection (a)(1).</text>

												</subparagraph><subparagraph id="IDE674F3C9DD04485D8449D5F142872192"><enum>(D)</enum><header>Authority to

				vary measures</header><text>The Secretary may vary the measures selected under

				subparagraph (A) by the entity or individual involved based on factors such as

				the type of, the size of, and the scope and volume of services provided by, the

				entity or individual. If the Secretary varies the measures for providers under

				the preceding sentence, the Secretary shall ensure that such measures are

				aligned to promote coordinated quality of care across provider settings.</text>

												</subparagraph><subparagraph id="ID4FF440CD98A8492BA7FD845C5F62A76D"><enum>(E)</enum><header>Qualified

				health information system defined</header><text>For purposes of subparagraph

				(B)(iv)(I), the term <term>qualified health information system</term> means a

				computerized system (including hardware, software, and training) that—</text>

													<clause id="ID40DDB0B467BF470A8E10B19C8C8D505E"><enum>(i)</enum><text>protects the

				privacy and security of health information and properly encrypts such health

				information;</text>

													</clause><clause id="ID2FA182F430564705BA25C71E15A5329F"><enum>(ii)</enum><text>maintains and

				provides access to patients’ health records in an electronic format;</text>

													</clause><clause id="IDBA4215F31274418793D1853FEB0398EE"><enum>(iii)</enum><text>incorporates

				decision support software to reduce medical errors and enhance health care

				quality;</text>

													</clause><clause id="ID316FA503E53843C2BE5656DC28F74250"><enum>(iv)</enum><text>is consistent

				with data standards and certification processes recommended by the

				Secretary;</text>

													</clause><clause id="ID6B01A91F657A4573B77EA56AFDA2F452"><enum>(v)</enum><text>allows for the

				reporting of quality measures; and</text>

													</clause><clause id="ID30B8F0DE1E974BB4896D75D34760B090"><enum>(vi)</enum><text>includes other

				features determined appropriate by the Secretary.</text>

													</clause></subparagraph></paragraph><paragraph id="IDA603B08C1CE541EB8BC23C6D4C8E9FDB"><enum>(2)</enum><header>Weights of

				measures</header><text>The Secretary shall assign weights to the measures used

				by the Secretary under each system. If the Secretary determines appropriate, in

				assigning the weights under the preceding sentence, some measures may be

				weighted more heavily than other measures.</text>

											</paragraph><paragraph id="IDC0EDC1447FA343EA83FC1588C9534E48"><enum>(3)</enum><header>Risk

				adjustment</header><text>The Secretary shall establish procedures, as

				appropriate, to control for differences in beneficiary health status and

				beneficiary characteristics. To the extent feasible, such procedures may be

				based on existing models for controlling for such differences.</text>

											</paragraph><paragraph id="IDB4EB57380BDB4CA9B347A93397113DC8"><enum>(4)</enum><header>Maintenance</header>

												<subparagraph id="ID43A88749A6134CAC8510DD1924C7A1C2"><enum>(A)</enum><header>In

				general</header><text>The Secretary shall, as determined appropriate, but not

				more often than once each 12-month period, review and revise each system,

				including through—</text>

													<clause id="ID0F34B793EA3B48049A3F67394D266484"><enum>(i)</enum><text>the refinement of

				measures under the systems and the retirement of existing outdated measures

				under the system;</text>

													</clause><clause id="ID3E9CC51EA4724B369AEFA7E108B675B2"><enum>(ii)</enum><text>the refinement

				of the weights assigned to measures under the system; and</text>

													</clause><clause id="ID7F95562FC89448BF9960CE3AD29FB190"><enum>(iii)</enum><text>the refinement

				of the risk adjustment procedures established pursuant to paragraph (3) under

				the system.</text>

													</clause></subparagraph><subparagraph id="IDAD7AC5B6EF42473B9F125B78D7EF7869"><enum>(B)</enum><header>Revision shall

				allow for comparison of data</header><text>Each revision under subparagraph (A)

				of a quality measurement system shall allow for the comparison of data from one

				year to the next for purposes of providing value-based payments under the

				programs described in subsection (a)(1).</text>

												</subparagraph></paragraph><paragraph id="ID5F9ACEBE30584F2DB6BE5BE168951787"><enum>(5)</enum><header>Use of most

				recent quality data</header>

												<subparagraph id="IDC733EA622CDE4D3491903F99122E64A8"><enum>(A)</enum><header>In

				general</header><text>Except as provided in subparagraph (B), the Secretary

				shall use the most recent quality data with respect to the provider involved

				that is available to the Secretary.</text>

												</subparagraph><subparagraph id="ID9BE68FC49CBF4909A26E3F62E2895FA7"><enum>(B)</enum><header>Insufficient

				data due to low volume</header><text>If the Secretary determines that there is

				insufficient data with respect to a measure or measures because of a low number

				of services provided, the Secretary may aggregate data across more than 1

				fiscal or calendar year, as the case may be.</text>

												</subparagraph></paragraph></subsection><subsection id="ID52464166929A443FAC88ABE00C306FDA"><enum>(c)</enum><header>Requirements

				for Developing and Reviewing and Revising the Systems</header><text>In

				developing and reviewing and revising each quality measurement system under

				this section, the Secretary shall—</text>

											<paragraph id="IDDDFA4A0C7F7D4F07870CE8AA6B1187F4"><enum>(1)</enum><text>consult with, and

				take into account the recommendations of, the entity that the Secretary has an

				arrangement with under subsection (e);</text>

											</paragraph><paragraph id="IDFCE9CC6CC00F467BA7B28AC6B070F435"><enum>(2)</enum><text>consult with

				provider-based groups, clinical specialty societies, and certification

				boards;</text>

											</paragraph><paragraph id="ID9A1A02A8D037414F865229494F8BA2D8"><enum>(3)</enum><text>take into account

				existing quality measurement systems that have been developed through a

				rigorous process of validation and with the involvement of entities and persons

				described in subsection (e)(2)(B); and</text>

											</paragraph><paragraph id="ID06680AAA7B2243B1B32B1A3F6F1C930D"><enum>(4)</enum><text>take into

				account—</text>

												<subparagraph id="IDEEC64DF32180464AA41F169D8CD2B159"><enum>(A)</enum><text>each of the

				reports by the Medicare Payment Advisory Commission that are required under

				section 1860E–3(a)(1);</text>

												</subparagraph><subparagraph id="ID9703661EDFD1489E8FD759C71ED85997"><enum>(B)</enum><text>the results of

				appropriate studies, reports, and demonstration programs; and</text>

												</subparagraph><subparagraph id="IDA062BE8B85DF45D2B9F995484DBB5F8A"><enum>(C)</enum><text>the report by the

				Institute of Medicine of the National Academy of Sciences under section 238(b)

				of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003

				(Public Law 108–173).</text>

												</subparagraph></paragraph></subsection><subsection id="ID28460B37AEF445AEA09CA9920CA772AD"><enum>(d)</enum><header>Requirements

				for Implementing the Systems</header><text>In implementing each quality

				measurement system under this section, the Secretary shall consult with

				entities—</text>

											<paragraph id="ID99DFC7F6EA574CF99121EA1BC971105B"><enum>(1)</enum><text>that have joined

				together to develop strategies for quality measurement and reporting, including

				the feasibility of collecting and reporting meaningful data on quality

				measures; and</text>

											</paragraph><paragraph id="ID666E780309D045D19975D97D0AE0BB0C"><enum>(2)</enum><text>that involve

				representatives of health care providers, health plans, consumers, employers,

				purchasers, quality experts, government agencies, and other individuals and

				groups that are interested in quality of care.</text>

											</paragraph></subsection><subsection id="ID2E49BB5D20574BE985F23290F4CBD865"><enum>(e)</enum><header>Arrangement

				With an Entity To Provide Advice and Recommendations</header>

											<paragraph id="ID6B8656D043B74EA4BDB993F7133CBD33"><enum>(1)</enum><header>Arrangement</header><text>On

				and after July 1, 2006, the Secretary shall have in place an arrangement with

				an entity that meets the requirements described in paragraph (2) under which

				such entity provides the Secretary with advice on, and recommendations with

				respect to, the development and review and revision of the quality measurement

				systems under this section, including the assigning of weights to the measures

				under subsection (b)(2).</text>

											</paragraph><paragraph id="ID33DF6A4FA7274F33B35B6750E2370606"><enum>(2)</enum><header>Requirements

				described</header><text>The requirements described in this paragraph are the

				following:</text>

												<subparagraph id="ID3930E11F9AA34C10B1B7AA85BFA35982"><enum>(A)</enum><text>The entity is a

				private nonprofit entity governed by an executive director and a board.</text>

												</subparagraph><subparagraph id="ID515D47FB3BED420ABADA28D86FDFD587"><enum>(B)</enum><text>The members of

				the entity include representatives of—</text>

													<clause id="IDC6B766C1078443CD9F189D30B3C29560"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="ID4CD9DEEB15634B64851266427462A721"><enum>(I)</enum><text>health plans and

				providers receiving reimbursement under this title for the provision of items

				and services, including health plans and providers with experience in the care

				of the frail elderly and individuals with multiple complex chronic conditions;

				or</text>

														</subclause><subclause id="IDBF8BF694AD3D427F804B9DEDA40B7B2E" indent="up1"><enum>(II)</enum><text>groups representing such health plans

				and providers;</text>

														</subclause></clause><clause id="ID830B6990CFCC48AE8FB4E4AF2AEEB452"><enum>(ii)</enum><text>groups

				representing individuals receiving benefits under this title;</text>

													</clause><clause id="IDF6CF539FA4A5469DBE402CB1BA8B970C"><enum>(iii)</enum><text>purchasers and

				employers or groups representing purchasers or employers;</text>

													</clause><clause id="IDA38B35AB8FC141D1BBD0CAE488EDAC66"><enum>(iv)</enum><text>organizations

				that focus on quality improvement as well as the measurement and reporting of

				quality measures;</text>

													</clause><clause id="ID442CBA73B28D4C7F97AC86966A1A22CC"><enum>(v)</enum><text>organizations

				that certify and license such providers;</text>

													</clause><clause id="IDB377254C8C4A4CF4B76BF9D79D2BC42D"><enum>(vi)</enum><text>State government

				health programs;</text>

													</clause><clause id="IDAB11C09DDD1140D08FB351AC9D1E48A2"><enum>(vii)</enum><text>persons skilled

				in the conduct and interpretation of biomedical, health services, and health

				economics research and with expertise in outcomes and effectiveness research

				and technology assessment; and</text>

													</clause><clause id="IDCD1D614CA2344B21B439AA31FDD4EF96"><enum>(viii)</enum><text>persons or

				entities involved in the development and establishment of standards and

				certification for health information technology systems and clinical

				data.</text>

													</clause></subparagraph><subparagraph id="ID66F709E97E884CEEBEF302065ED425B6"><enum>(C)</enum><text>The membership of

				the entity is representative of individuals with experience with—</text>

													<clause id="ID725964291CC1436E86BAEE161720BC0C"><enum>(i)</enum><text>urban health care

				issues;</text>

													</clause><clause id="IDFDB6734CA95340FD94F21F2D0DA6A4EC"><enum>(ii)</enum><text>safety net

				health care issues; and</text>

													</clause><clause id="ID9611A2E5E74D45C2899C762FD01252DB"><enum>(iii)</enum><text>rural and

				frontier health care issues.</text>

													</clause></subparagraph><subparagraph id="ID1650AAA21F2A4277A6D7AF52D9EB99FA"><enum>(D)</enum><text>The entity does

				not charge a fee for membership for participation in the work of the entity

				related to the arrangement with the Secretary under paragraph (1). If the

				entity does require a fee for membership for participation in other functions

				of the entity, there shall be no linkage between such fee and participation in

				the work of the entity related to such arrangement with the Secretary.</text>

												</subparagraph><subparagraph id="IDA412483AA15A4E3BB4ACF41A997D8EBF"><enum>(E)</enum><text>The

				entity—</text>

													<clause id="ID5E285BC7399D4D259FCD51F8D7DBF84D"><enum>(i)</enum><text>permits members

				described in subparagraph (B) to vote on matters of the entity related to the

				arrangement with the Secretary under paragraph (1); and</text>

													</clause><clause id="ID57D87C37807E4AB39514684A338347AF"><enum>(ii)</enum><text>ensures that

				such members have an equal vote on such matters.</text>

													</clause></subparagraph><subparagraph id="ID28543F1395DA4A2E946004BE5FDD74F9"><enum>(F)</enum><text>With respect to

				matters related to the arrangement with the Secretary under paragraph (1), the

				entity conducts its business in an open and transparent manner and provides the

				opportunity for public comment.</text>

												</subparagraph><subparagraph id="IDA1CB697352934007B051511DFFB7E7E2"><enum>(G)</enum><text>The entity

				operates as a voluntary consensus standards setting organization as defined for

				purposes of section 12(d) of the National Technology Transfer and Advancement

				Act of 1995 (Public Law 104–113) and Office of Management and Budget Revised

				Circular A–119 (published in the Federal Register on February 10, 1998).</text>

												</subparagraph></paragraph><paragraph id="IDCFA89EAED51B489D8E2FB939B24E89B6"><enum>(3)</enum><header>Authorization

				of appropriations</header><text>For the purpose of carrying out the provisions

				of this subsection, there are authorized to be appropriated—</text>

												<subparagraph id="IDF4E25F95209F40B2B9351976F9980DB4"><enum>(A)</enum><text>for each of the

				fiscal years 2006 and 2007, $3,000,000; and</text>

												</subparagraph><subparagraph id="ID2B66B2B75D8444F39E8BEDAA173E0577"><enum>(B)</enum><text>for fiscal year

				2008 and each subsequent fiscal year, an amount equal to the sum of—</text>

													<clause id="ID97F0821D8D844C55B190A1218D226C81"><enum>(i)</enum><text>$3,000,000;

				and</text>

													</clause><clause id="ID1428639504CF4ED9A8F32CF858C3D4FC"><enum>(ii)</enum><text>such amount

				multiplied by the percentage (if any) by which the average of the Consumer

				Price Index for all urban consumers (United States city average) for the

				12-month period ending with June of the calendar year in which such fiscal year

				begins exceeds such average for the 12-month period ending with June

				2006.</text>

													</clause></subparagraph></paragraph></subsection></section><section id="ID9200E32AB852492292BF9FFE752F1D83"><enum>1860E–2.</enum><header>PPS hospital Value-Based purchasing

		  Program</header><subsection commented="no" display-inline="yes-display-inline" id="ID980E606032D741EAACDCB714C5C1FB7A"><enum>(a)</enum><header>Program</header>

											<paragraph id="ID06A53A2BFFF94417B4226A5928AFFCCB"><enum>(1)</enum><header>In

				general</header><text>The Secretary shall establish a program under which

				value-based payments are provided each fiscal year to hospitals that

				demonstrate the provision of high quality health care to individuals who are

				entitled to benefits under part A and are inpatients of the hospital.</text>

											</paragraph><paragraph id="ID72C8566AC4294A0EBB16DC040E32C1B6"><enum>(2)</enum><header>Program to

				begin in fiscal year 2007</header><text>The Secretary shall establish the

				program under this section so that value-based payments described in subsection

				(b) are made with respect to fiscal year 2007 and each subsequent fiscal

				year.</text>

											</paragraph><paragraph id="ID811DC2F57BA44370B6252A3438C62FDE"><enum>(3)</enum><header>Applicability

				of program to hospitals</header><text>For purposes of this section, the term

				<term>hospital</term> means a subsection (d) hospital (as defined in section

				1886(d)(1)(B)).</text>

											</paragraph></subsection><subsection id="ID44FC747978964631B0E1B125B2939FAD"><enum>(b)</enum><header>Value-Based

				Payments</header>

											<paragraph id="ID1B01D459A1474300B405D8AE8836C97B"><enum>(1)</enum><header>In

				general</header><text>Subject to paragraph (4), the Secretary shall make a

				value-based payment to a hospital with respect to a fiscal year if the

				Secretary determines that the quality of the care provided in that year to

				individuals who are entitled to benefits under part A and are inpatients of the

				hospital—</text>

												<subparagraph id="ID16684702B7DD4016922BC06B5950E0CC"><enum>(A)</enum><text>has substantially

				improved (as determined by the Secretary) over the prior year; or</text>

												</subparagraph><subparagraph id="ID5144864F07B948F8A00690995EC97C5D"><enum>(B)</enum><text>exceeds a

				threshold established by the Secretary.</text>

												</subparagraph></paragraph><paragraph id="ID9485B332F5D94681B0C0B4F8092E6CB5"><enum>(2)</enum><header>Use of

				system</header><text>In determining which hospitals qualify for a value-based

				payment under paragraph (1), the Secretary shall use the quality measurement

				system developed for this section pursuant to section 1860E–1(a).</text>

											</paragraph><paragraph id="ID95D14253C6314CF2B562D98DF1EDC58C"><enum>(3)</enum><header>Determination

				of amount of award and allocation of awards</header>

												<subparagraph id="ID36208A508FE84F80A605B02C14B0B8EC"><enum>(A)</enum><header>In

				general</header><text>The Secretary shall determine—</text>

													<clause id="IDAF0EAE779517451EAFE892451CE439E3"><enum>(i)</enum><text>the amount of a

				value-based payment under paragraph (1) provided to a hospital; and</text>

													</clause><clause id="ID3FD40B55E3344492BE9DBA23122AE2DA"><enum>(ii)</enum><text>subject to

				subparagraph (B), the allocation of the total amount available under subsection

				(d) for value-based payments for any fiscal year between payments with respect

				to hospitals that meet the requirement under subparagraph (A) of paragraph (1)

				and hospitals that meet the requirement under subparagraph (B) of such

				paragraph.</text>

													</clause></subparagraph><subparagraph id="IDBB1A3068D7E54B128BF90387F49DED14"><enum>(B)</enum><header>Requirements

				regarding the amount of funding available for value-based payments for

				hospitals exceeding a threshold</header><text>The Secretary shall ensure

				that—</text>

													<clause id="IDFAF7C1BA76014A249E5701F8B6A8BB6E"><enum>(i)</enum><text>a

				majority of the total amount available under subsection (d) for value-based

				payments for any fiscal year is provided to hospitals that are receiving such

				payments because they meet the requirement under paragraph (1)(B); and</text>

													</clause><clause id="IDC1E5C92707544C07A3C9249644DAD264"><enum>(ii)</enum><text>with respect to

				fiscal year 2008 and each subsequent fiscal year, the percentage of the total

				amount available under subsection (d) for value-based payments for any fiscal

				year that is used to make payments to hospitals that meet such requirement is

				greater than such percentage in the previous fiscal year.</text>

													</clause></subparagraph></paragraph><paragraph id="ID5A8F9CC5CEAF414595BEDC7319693170"><enum>(4)</enum><header>Requirements</header>

												<subparagraph id="IDF348B6207D7B4937A2D352182E1D1422"><enum>(A)</enum><header>Required

				submission of data</header><text>In order for a hospital to be eligible for a

				value-based payment for a fiscal year, the hospital must have complied with the

				requirements under section 1886(b)(3)(B)(viii)(II) with respect to that fiscal

				year.</text>

												</subparagraph><subparagraph id="ID4CAA5CE8731A44B39F3BC291A8412EE6"><enum>(B)</enum><header>Attestation

				regarding data</header><text>In order for a hospital to be eligible for a

				value-based payment for a fiscal year, the hospital must have provided the

				Secretary (under procedures established by the Secretary) with an attestation

				that the data submitted under section 1886(b)(3)(B)(viii)(II) for the fiscal

				year is complete and accurate.</text>

												</subparagraph></paragraph><paragraph id="ID2BEED18E83D44C93B0B367F42B3718A8"><enum>(5)</enum><header>Total amount of

				value-based payments equal to total amount of available

				funding</header><text>The Secretary shall establish payment amounts under

				paragraph (3)(A) so that, as estimated by the Secretary, the total amount of

				value-based payments made in a fiscal year under paragraph (1) is equal to the

				total amount available under subsection (d) for such payments for the

				year.</text>

											</paragraph><paragraph id="IDE6B81EE698F84B6BA8A51EF92D7E656B"><enum>(6)</enum><header>Payment methods

				and timing of payments</header>

												<subparagraph id="ID88A53B3420DD4A32BD2FDA89D1A818B3"><enum>(A)</enum><header>In

				general</header><text>Subject to subparagraph (B), the payment of value-based

				payments under paragraph (1) shall be based on such a method as the Secretary

				determines appropriate.</text>

												</subparagraph><subparagraph id="ID3A357BDF1701458494EFD29CE89F88ED"><enum>(B)</enum><header>Timing</header><text>The

				Secretary shall ensure that value-based payments under paragraph (1) with

				respect to a fiscal year are made by not later than the close of the following

				fiscal year.</text>

												</subparagraph></paragraph></subsection><subsection id="ID446A7A80E01541D9BADFA2BB5943D5F4"><enum>(c)</enum><header>Description of

				How Hospitals Would Have Fared Under Program</header><text>Not later than

				January 1, 2007, the Secretary shall provide each hospital with a description

				of the Secretary’s estimate of how payments to the hospital under this title

				would have been affected with respect to items and services furnished during a

				period, as determined by the Secretary, if the program under this section (and

				the amendments made by paragraphs (1) and (2) of section 6110(b) of the Deficit

				Reduction Omnibus Reconciliation Act of 2005) had been in effect with respect

				to that period.</text>

										</subsection><subsection id="IDF52CF7B61FA842498A34612EA215B45D"><enum>(d)</enum><header>Funding</header>

											<paragraph id="ID71502346F1864EC29C0178F9A5350143"><enum>(1)</enum><header>Amount</header><text>The

				amount available for value-based payments under this section with respect to a

				fiscal year shall be equal to the amount of the reduction in expenditures under

				the Federal Hospital Insurance Trust Fund under section 1817 in the year as a

				result of the amendments made by section 6110(b)(2) of the Deficit Reduction

				Omnibus Reconciliation Act of 2005, as estimated by the Secretary.</text>

											</paragraph><paragraph id="ID5A25D26A010E4F3A86CD2CD44C2682FB"><enum>(2)</enum><header>Payments from

				trust fund</header><text>Payments to hospitals under this section shall be made

				from the Federal Hospital Insurance Trust Fund.</text>

											</paragraph></subsection></section><section id="ID219DC0DD1027411BA14A4132A59BCAAE"><enum>1860E–3.</enum><header>Physician and practitioner Value-Based

		  purchasing Program</header><subsection commented="no" display-inline="yes-display-inline" id="ID70797A8EB2584EAB8286773A6848BDA7"><enum>(a)</enum><header>Program</header>

											<paragraph id="ID7BB70D83AFED43A4A7BC0588F5DA27E0"><enum>(1)</enum><header>In

				general</header><text>The Secretary shall establish a program under which

				value-based payments are provided each year to physicians and practitioners

				that demonstrate the provision of high quality health care to individuals

				enrolled under part B and the Medicare Payment Advisory Commission shall (A)

				conduct a study, and submit to Congress and the Secretary an initial report by

				not later than March 1, 2008, and a final report by not later than June 1,

				2012, on how the Medicare value-based purchasing programs under this part will

				impact Medicare beneficiaries, Medicare providers, and Medicare financing,

				including how such programs will impact the access of such beneficiaries to

				items and services under this title, the volume and utilization of such items

				and services, and low-volume providers; and (B) conduct a study, and submit to

				Congress and the Secretary a report by not later than March 1, 2007, on the

				advisability and feasibility of establishing a value-based purchasing program

				under the this title for critical access hospitals (as defined in section

				1861(mm)(1)); and (C) conduct a study, and submit to Congress and the Secretary

				a report by not later than June 1, 2007, on the advisability and feasibility of

				including renal dialysis facilities described in subsection (a)(3)(A) of

				section 1860E–5 in the value-based purchasing program under such section

				1860E–5 or establishing a value-based purchasing program under this title for

				such facilities; (D) taking into account the results to date of the

				demonstration of bundled case-mix adjusted payment system for ESRD services

				under section 623(e) of the Medicare Prescription Drug, Improvement, and

				Modernization Act of 2003, conduct a study, and submit to Congress and the

				Secretary a report by not later than June 1, 2008, on the implementation of the

				ESRD provider and facility value-based purchasing program under section

				1860E–5, including issues for the Secretary to consider in operating the ESRD

				provider and facility value-based purchasing program and recommendations on

				such issues; and (E) conduct a study, and submit to Congress and the Secretary

				a report by not later than June 1, 2007, on the advisability and feasibility of

				establishing a value-based purchasing program under this title for skilled

				nursing facilities (as defined in section 1819(a)).</text>

											</paragraph><paragraph id="ID3F8CD95896B441D68CC9CF7725D80E0A"><enum>(2)</enum><header>Program to

				begin in 2009</header><text>The Secretary shall establish the program under

				this section so that value-based payments described in subsection (b) are made

				with respect to 2009 and each subsequent year.</text>

											</paragraph><paragraph id="IDA616D79DC4324E8BA7B2D007454D4343"><enum>(3)</enum><header>Definition of

				physician and practitioner</header><text>In this section:</text>

												<subparagraph id="IDD054EFE40BC14F748365D94EFC496890"><enum>(A)</enum><header>Physician</header><text>The

				term <term>physician</term> has the meaning given that term in section

				1861(r).</text>

												</subparagraph><subparagraph id="IDC59BF7BA4D944663843A092EB4FACCE4"><enum>(B)</enum><header>Practitioner</header><text>The

				term <term>practitioner</term> means—</text>

													<clause id="ID69DBEBEC218147E493E04703104B9B58"><enum>(i)</enum><text>a

				practitioner described in section 1842(b)(18)(C);</text>

													</clause><clause id="ID30D7BE9C859B46CDA75684DD0DC9BFB6"><enum>(ii)</enum><text>a physical

				therapist (as described in section 1861(p));</text>

													</clause><clause id="IDDEFB3C545A224231BCBF4A467DAD08DC"><enum>(iii)</enum><text>an occupational

				therapist (as so described); and</text>

													</clause><clause id="ID2F26E23240D4458DAB23FC90C5185041"><enum>(iv)</enum><text>a qualified

				speech-language pathologist (as defined in section 1861(ll)(3)(A)).</text>

													</clause></subparagraph></paragraph><paragraph id="IDDAE39CAA30DA4D45A1890A3E7F622F01"><enum>(4)</enum><header>Identification

				of physicians and practitioners</header><text>For purposes of applying this

				section and paragraphs (4)(G) and (6) of section 1848(d), the Secretary shall

				establish procedures for the identification of physicians and practitioners,

				such as through physician or practitioner billing units or other units,

				provider identification numbers, taxpayer identification numbers, the National

				Provider Identifier, and unique physician identifier numbers.</text>

											</paragraph></subsection><subsection id="ID2F73FD2F0A8E45CF9DBE13787793D353"><enum>(b)</enum><header>Value-Based

				Payments</header>

											<paragraph id="ID740770C6B1304F29A52A62FE645997BB"><enum>(1)</enum><header>In

				general</header><text>Subject to paragraph (4), the Secretary shall make a

				value-based payment to a physician or a practitioner with respect to a year if

				the Secretary determines that both the quality of the care and the efficiency

				of the care provided in that year by the physician or practitioner to

				individuals enrolled under part B—</text>

												<subparagraph id="IDFECDA80B82F949E689C4F67A572D36B1"><enum>(A)</enum><text>has substantially

				improved (as determined by the Secretary) over the prior year; or</text>

												</subparagraph><subparagraph id="ID894C125B5F684400BD3DF1107E0E7E33"><enum>(B)</enum><text>exceeds a

				threshold established by the Secretary.</text>

												</subparagraph></paragraph><paragraph id="ID3E52E45DA25245E79EFFB896EDD3E084"><enum>(2)</enum><header>Use of systems

				and data</header>

												<subparagraph id="ID9A34F2FCFADE495D8B86412E070C2F27"><enum>(A)</enum><header>In

				general</header><text>In determining which physicians and practitioners qualify

				for a value-based payment under paragraph (1), the Secretary shall use—</text>

													<clause id="IDF96C60EE4FCE485EBF7DA0D33E92E4A6"><enum>(i)</enum><text>the quality

				measurement system developed for this section pursuant to section 1860E–1(a)

				with respect to the quality of the care provided by the physician or

				practitioner; and</text>

													</clause><clause id="ID14E34BAABF2940239E7D48244BE0B1F0"><enum>(ii)</enum><text>the comparative

				utilization system developed under subsection (c) with respect to the

				efficiency and appropriateness of such care.</text>

													</clause></subparagraph></paragraph><paragraph id="ID31A86F0BCC1C4E298ECA8AC02DACB569"><enum>(3)</enum><header>Determination

				of amount of award and allocation of awards</header>

												<subparagraph id="ID18B9C3A55C134C67824DD80BD0A9F16F"><enum>(A)</enum><header>In

				general</header><text>The Secretary shall determine—</text>

													<clause id="ID64193FB45E6543A891504BAFDC93F3FE"><enum>(i)</enum><text>the amount of a

				value-based payment under paragraph (1) provided to a physician or a

				practitioner; and</text>

													</clause><clause id="ID42B0754D24BB4742B6A876324353E8E2"><enum>(ii)</enum><text>subject to

				subparagraph (B), the allocation of the total amount available under subsection

				(e) for value-based payments for any year between payments with respect to

				physicians and practitioners that meet the requirement under subparagraph (A)

				of paragraph (1) and physicians and practitioners that meet the requirement

				under subparagraph (B) of such paragraph.</text>

													</clause></subparagraph><subparagraph id="ID91565FF737B94F7397B9350BBB4EA16D"><enum>(B)</enum><header>Requirements

				regarding the amount of funding available for value-based payments for

				physicians and practitioners exceeding a threshold</header><text>The Secretary

				shall ensure that—</text>

													<clause id="ID71F712D5549842F1A334ADDBB0D90F62"><enum>(i)</enum><text>a

				majority of the total amount available under subsection (e) for value-based

				payments for any year is provided to physicians and practitioners that are

				receiving such payments because they meet the requirement under paragraph

				(1)(B); and</text>

													</clause><clause id="IDBFEA8E956273482487D3498ED148380B"><enum>(ii)</enum><text>with respect to

				2010 and each subsequent year, the percentage of the total amount available

				under subsection (e) for value-based payments for any year that is used to make

				payments to physicians and practitioners that meet such requirement is greater

				than such percentage in the previous year.</text>

													</clause></subparagraph></paragraph><paragraph id="ID09A0706D2F8543B69C67B24D133C1F37"><enum>(4)</enum><header>Requirements</header>

												<subparagraph id="IDE3F075164557479F83349EEBA89FA702"><enum>(A)</enum><header>Required

				submission of data</header><text>In order for a physician or a practitioner to

				be eligible for a value-based payment for a year, the physician or practitioner

				must have complied with the requirements under section 1848(d)(6)(B)(ii) with

				respect to that year.</text>

												</subparagraph><subparagraph id="ID4161E84374D54410AE0A6166ECEB12D5"><enum>(B)</enum><header>Attestation

				regarding data</header><text>In order for a physician or a practitioner to be

				eligible for a value-based payment for a year, the physician or practitioner

				must have provided the Secretary (under procedures established by the

				Secretary) with an attestation that the data submitted under section

				1848(d)(6)(B)(ii) with respect to that year is complete and accurate.</text>

												</subparagraph></paragraph><paragraph id="ID04393CA3217148CA8526C4AEE948FE68"><enum>(5)</enum><header>Total amount of

				value-based payments equal to total amount of available

				funding</header><text>The Secretary shall establish payment amounts under

				paragraph (3)(A) so that, as estimated by the Secretary, the total amount of

				value-based payments made in a year under paragraph (1) is equal to the total

				amount available under subsection (e) for such payments for the year.</text>

											</paragraph><paragraph id="IDA6F5C417943D4B5CB7AA9BA403829D6B"><enum>(6)</enum><header>Payment methods

				and timing of payments</header>

												<subparagraph id="ID57E6073FDAE7481CB37C29B6C8A582B2"><enum>(A)</enum><header>In

				general</header><text>Subject to subparagraph (B), the payment of value-based

				payments under paragraph (1) shall be based on such a method as the Secretary

				determines appropriate.</text>

												</subparagraph><subparagraph id="IDA9D99AE3F3A447D59D836B2F734E23D5"><enum>(B)</enum><header>Timing</header><text>The

				Secretary shall ensure that value-based payments under paragraph (1) with

				respect to a year are made by not later than December 31 of the subsequent

				year.</text>

												</subparagraph></paragraph></subsection><subsection id="ID859F5E67597B430C972F1926E8F6EA0D"><enum>(c)</enum><header>Comparative

				Utilization System</header>

											<paragraph id="IDEA1F9B240ADC45FA8030EBE3AF550ABC"><enum>(1)</enum><header>Development</header><text>The

				Secretary, in consultation with relevant stakeholders, shall develop a

				comparative utilization system for purposes of providing value-based payments

				under subsection (b).</text>

											</paragraph><paragraph id="ID31B1A3E9BC774192A3A5B958142BD42E"><enum>(2)</enum><header>Measures of

				efficiency and appropriateness of care</header><text>The comparative

				utilization system developed under paragraph (1) shall measure the efficiency

				and appropriateness of the care provided by a physician or practitioner.</text>

											</paragraph><paragraph id="IDE9EA15EB79DA47B2A8300BE1B6BEC298"><enum>(3)</enum><header>Requirements

				for system</header><text>Under the comparative utilization system described in

				paragraph (1), the Secretary shall do the following:</text>

												<subparagraph id="IDE49672B243CE467897364207A0A22E9A"><enum>(A)</enum><header>Measures</header><text>The

				Secretary shall select measures of efficiency appropriateness to be used by the

				Secretary under the system. The Secretary may vary the measures selected under

				the preceding sentence by the type or specialty of the physician or

				practitioner. If the Secretary varies the measures for providers under the

				preceding sentence, the Secretary shall ensure that such measures are aligned

				to promote coordinated quality of care across provider settings.</text>

												</subparagraph><subparagraph id="ID41110E144A26465AB4BA81D8670CABB5"><enum>(B)</enum><header>Use of claims

				data for utilization patterns</header>

													<clause id="IDBEC169E9E66A485AB3FF32E1218B8BC6"><enum>(i)</enum><header>Review of

				claims data</header><text>The Secretary shall review claims data with respect

				to services furnished or ordered by physicians and practitioners.</text>

													</clause><clause id="ID764144C622144363BAE9C43203D263E1"><enum>(ii)</enum><header>Use of most

				recent claims data</header><text>The Secretary shall use the most recent claims

				data with respect to the physician or practitioner that is available to the

				Secretary.</text>

													</clause></subparagraph><subparagraph id="IDCC91AC25513945F4A8B75F794D6E85FC"><enum>(C)</enum><header>Risk

				adjustment</header><text>The Secretary shall establish procedures, as

				appropriate, to control for differences in beneficiary health status and

				beneficiary characteristics.</text>

												</subparagraph></paragraph><paragraph id="ID11A94C03A3024395ACDBC0F6F418CF6B"><enum>(4)</enum><header>Annual

				reports</header><text>Beginning in 2007, the Secretary shall provide physicians

				and practitioners with annual reports on the utilization of items and services

				under this title based upon the review of claims data under paragraph (3)(B).

				With respect to reports provided in 2007 and 2008, such reports are

				confidential and the Secretary shall not make such reports available to the

				public.</text>

											</paragraph></subsection><subsection id="ID013A9DB7CC0940948698E90A97091854"><enum>(d)</enum><header>Description of

				How Physicians and Practitioners Would Have Fared Under

				Program</header><text>Not later than March 1, 2009, the Secretary shall provide

				each physician and practitioner with a description of the Secretary’s estimate

				of how payments to the physician or practitioner under this title would have

				been affected with respect to items and services furnished during a period, as

				determined by the Secretary, if the program under this section (and the

				amendments made by paragraphs (1) and (2) of section 6110(c) of the Deficit

				Reduction Omnibus Reconciliation Act of 2005) had been in effect with respect

				to that period.</text>

										</subsection><subsection id="IDF58E76F501F94A248D1A8CC0148FBA20"><enum>(e)</enum><header>Funding</header>

											<paragraph id="ID21D4B0CAE1A6492AA2C0E461C970030E"><enum>(1)</enum><header>Amount</header><text>The

				amount available for value-based payments under this section with respect to a

				year shall be equal to the amount of the reduction in expenditures under the

				Federal Supplementary Medical Insurance Trust Fund under section 1841 in the

				year as a result of the amendments made by section 6110(c)(2) of the Deficit

				Reduction Omnibus Reconciliation Act of 2005, as estimated by the

				Secretary.</text>

											</paragraph><paragraph id="ID9C34138312E943FA8C50C70ED221B6A4"><enum>(2)</enum><header>Payments from

				trust fund</header><text>Payments to physicians and practitioners under this

				section shall be made from the Federal Supplementary Medical Insurance Trust

				Fund.</text>

											</paragraph></subsection></section><section id="IDECB9A3A2C8B344E1B6A8B27ADA43E2CC"><enum>1860E–4.</enum><header>Plan Value-Based purchasing

		  Program</header><subsection commented="no" display-inline="yes-display-inline" id="ID8EAB0020346C4A95B7EF5707642C86D6"><enum>(a)</enum><header>Program</header>

											<paragraph id="ID35FC6C379B564532AF26840983C64EE7"><enum>(1)</enum><header>In

				general</header><text>The Secretary shall establish a program under which

				value-based payments are provided each year to Medicare Advantage organizations

				offering Medicare Advantage plans under part C that demonstrate the provision

				of high quality health care to enrollees under the plan.</text>

											</paragraph><paragraph id="ID01E31648E862476AAEF4E21744C6AAF7"><enum>(2)</enum><header>Program to

				begin in 2009</header><text>The Secretary shall establish the program under

				this section so that value-based payments under subsection (b) are made with

				respect to 2009 and each subsequent year.</text>

											</paragraph><paragraph id="ID7D69C77E72C54FD69A7E62C3513C30E2"><enum>(3)</enum><header>Definitions of

				medicare advantage organization and plan</header>

												<subparagraph id="IDDD4CB84748354C52A1DCF676DD468D5E"><enum>(A)</enum><header>In

				general</header><text>In this section:</text>

													<clause id="ID9286BEA5DE3943B3B36076273C309E7E"><enum>(i)</enum><header>Medicare

				advantage organization</header><text>The term <term>Medicare Advantage

				organization</term> has the meaning given such term in section

				1859(a)(1).</text>

													</clause><clause id="ID20C5F30B458C44CEAAB77FEBBC4B7EBC"><enum>(ii)</enum><header>Medicare

				advantage plan</header><text>The term <term>Medicare Advantage plan</term> has

				the meaning given such term in section 1859(b)(1).</text>

													</clause></subparagraph><subparagraph id="IDDBCC4A91158A4FE39CC00C315C8DA7EF"><enum>(B)</enum><header>Applicability

				of program to medicare advantage regional and local plans</header><text>For

				purposes of this section, the term <term>Medicare Advantage plan</term> shall

				include both Medicare Advantage regional plans (as defined in section

				1859(b)(4)) and Medicare Advantage local plans (as defined in section

				1859(b)(5)).</text>

												</subparagraph><subparagraph id="ID68ABD504F10542299DA6385FD2991BC0"><enum>(C)</enum><header>Applicability

				of program to reasonable cost contracts</header><text>Except for paragraphs (5)

				and (6) of subsection (b), for purposes of this section, the terms—</text>

													<clause id="ID2E03910EABCA48F08C9A102F79B414FD"><enum>(i)</enum><text><quote>Medicare

				Advantage organization</quote> and <quote>organization</quote> include an

				organization that is providing benefits under a reasonable cost reimbursement

				contract under section 1876(h); and</text>

													</clause><clause id="ID2A12E6C322E04D9DA133550C10E29504"><enum>(ii)</enum><text><quote>Medicare

				Advantage plan</quote> and <quote>plan</quote> include such a contract.</text>

													</clause></subparagraph></paragraph></subsection><subsection id="ID3930F68CC6F749488C27F94DE1614B5E"><enum>(b)</enum><header>Value-Based

				Payments</header>

											<paragraph id="ID23CA37B32F3941639A19F134DCDFE5CC"><enum>(1)</enum><header>In

				general</header><text>Subject to paragraph (4), the Secretary shall make

				value-based payments to Medicare Advantage organizations with respect to each

				Medicare Advantage plan offered by the organization during a year if the

				Secretary determines that the quality of the care provided under the

				plan—</text>

												<subparagraph id="ID257FE57D5A434100A55473CC6CCEF4F2"><enum>(A)</enum><text>has substantially

				improved (as determined by the Secretary) over the prior year; or</text>

												</subparagraph><subparagraph id="ID666EAC08208242F589D6DDF6454866CE"><enum>(B)</enum><text>exceeds a

				threshold established by the Secretary.</text>

												</subparagraph></paragraph><paragraph id="IDE265E8B542C145C0B9DDE4C1A0BED3A0"><enum>(2)</enum><header>Use of

				system</header><text>In determining which organizations offering Medicare

				Advantage plans qualify for a value-based payment under paragraph (1), the

				Secretary shall—</text>

												<subparagraph id="ID5F3D425FDDED46F09575603E6ECAE582"><enum>(A)</enum><text>use the quality

				measurement system developed for this section pursuant to section 1860E–1(a);

				and</text>

												</subparagraph><subparagraph id="ID7CABE435CEB941FFB57E8090B5832861"><enum>(B)</enum><text>ensure that

				awards are based on data from a full 12-month period (or 24-month period in the

				case of an award described in paragraph (1)(A)), such periods determined

				without regard to calendar year periods.</text>

												</subparagraph></paragraph><paragraph id="IDD0779FB341344C1395270F0050DF9EED"><enum>(3)</enum><header>Determination

				of amount of award and allocation of awards</header>

												<subparagraph id="ID4FE2AA6702B7471D8A45E381D89A0963"><enum>(A)</enum><header>In

				general</header><text>The Secretary shall determine—</text>

													<clause id="IDF9BC18D7322C4001BD5A93ED60DB34EB"><enum>(i)</enum><text>the amount of a

				value-based payment under paragraph (1) provided to an organization with

				respect to a plan; and</text>

													</clause><clause id="IDF3855C1E710E41F8A6BB2E688D25DFDD"><enum>(ii)</enum><text>subject to

				subparagraph (B), the allocation of the total amount available under subsection

				(d) for value-based payments for any year between payments with respect to

				plans that meet the requirement under subparagraph (A) of paragraph (1) and

				plans that meet the requirement under subparagraph (B) of such

				paragraph.</text>

													</clause></subparagraph><subparagraph id="IDF52750F5481B40628EA93AEB3FC75C6B"><enum>(B)</enum><header>Requirement

				regarding the amount of funding available for value-based payments for plans

				exceeding a threshold</header><text>The Secretary shall ensure that—</text>

													<clause id="IDFA2C3FF9F5604572A444803B97F41BCB"><enum>(i)</enum><text>a

				majority of the total amount available under subsection (d) for value-based

				payments for any year is provided to organizations, with respect to plans

				offered by such organizations, that are receiving such payments because they

				meet the requirement under paragraph (1)(B); and</text>

													</clause><clause id="ID2495778F9E1B47FAB123CD4C6802803A"><enum>(ii)</enum><text>with respect to

				2010 and each subsequent year, the percentage of the total amount available

				under subsection (d) for value-based payments for any year that is used to make

				payments to organizations, with respect to plans offered by such organizations,

				that meet such requirement is greater than such percentage in the previous

				year.</text>

													</clause></subparagraph></paragraph><paragraph id="ID2553A31878D24B1D8C525BE0E29C970D"><enum>(4)</enum><header>Use of

				payments</header><text>Value-based payments received under this section may

				only be used for the following purposes:</text>

												<subparagraph id="ID255D3C3A253F4DADBB9D2AC69E7EEAE3"><enum>(A)</enum><text>To invest in

				quality improvement programs operated by the organization with respect to the

				plan.</text>

												</subparagraph><subparagraph id="ID8E20908B57A443C8B08D3C98802F8E13"><enum>(B)</enum><text>To enhance

				beneficiary benefits under the plan.</text>

												</subparagraph></paragraph><paragraph id="ID403A52ACDC0347DD88F5231EFA299E24"><enum>(5)</enum><header>Required

				submission of data</header><text>In order for an organization to be eligible

				for a value-based payment for a year with respect to a Medicare Advantage plan

				or a reasonable cost contract, the organization must have provided for the

				collection, analysis, and reporting of data pursuant to sections 1852(e)(3) (or

				submitted the data under section 1876(h)(6) in the case of a reasonable cost

				contract) with respect to the plan or contract for the 2 years preceding that

				year.</text>

											</paragraph><paragraph id="ID6A6FAF8972704073B2FE8BCC02CD8327"><enum>(6)</enum><header>No effect on

				medicare advantage plan bids</header><text>In order for a Medicare Advantage

				organization to be eligible for a value-based payment for a year with respect

				to a Medicare Advantage plan, the organization must have provided the Secretary

				with an attestation that the program under this section, including the payment

				adjustments made by reason of the amendments made by section 6110(d)(2)(A) of

				the Deficit Reduction Omnibus Reconciliation Act of 2005, had no effect on the

				integrity and actuarial soundness of the bid submitted under section 1854 for

				the plan for the year.</text>

											</paragraph><paragraph id="ID53E56A80711B412093701AF79AD245A3"><enum>(7)</enum><header>Total amount of

				value-based payments equal to total amount of reduction in

				payments</header><text>The Secretary shall establish payment amounts under

				paragraph (3)(A) so that, as estimated by the Secretary, the total amount of

				value-based payments made in a year under paragraph (1) is equal to the total

				amount available under subsection (d) for such payments for the year.</text>

											</paragraph><paragraph id="ID9BFF3A4571DD4E8283FE8FC406D64B8C"><enum>(8)</enum><header>Payment methods

				and timing of payments</header>

												<subparagraph id="IDE83B71957DBB4F0EB950644DDC8E3C04"><enum>(A)</enum><header>In

				general</header><text>Subject to subparagraph (B), the payment of value-based

				payments under paragraph (1) shall be based on such a method as the Secretary

				determines appropriate.</text>

												</subparagraph><subparagraph id="IDC50F8CEFC14F4CCFA1C963765C4C8FA4"><enum>(B)</enum><header>Timing</header><text>The

				Secretary shall ensure that value-based payments under paragraph (1) with

				respect to a year are made by not later than March 1 of the subsequent

				year.</text>

												</subparagraph></paragraph></subsection><subsection id="IDE0818C72F0C34D1398AA89F25C9C7AA7"><enum>(c)</enum><header>Description of

				How Plans Would Have Fared Under Program</header><text>Not later than March 1,

				2009, the Secretary shall provide each Medicare Advantage organization offering

				a Medicare Advantage plan with a description of the Secretary’s estimate of how

				payments under this title to such organization with respect to the plan for a

				period, as determined by the Secretary, would have been affected if the program

				under this section (and the amendments made by section 6110(d) of the Deficit

				Reduction Omnibus Reconciliation Act of 2005) had been in effect with respect

				to that period.</text>

										</subsection><subsection id="ID2C2715D87AEC456CA10B4FFB3CDD7A32"><enum>(d)</enum><header>Funding</header>

											<paragraph id="ID16B29F909B434AED827C40A3A6125033"><enum>(1)</enum><header>Amount</header><text>The

				amount available for value-based payments under this section with respect to a

				year shall be equal to the amount of the reduction in expenditures under the

				Federal Hospital Insurance Trust Fund under section 1817 and the Federal

				Supplementary Medical Insurance Trust Fund under section 1841 in the year as a

				result of the amendments made by section 6110(d)(2) of the Deficit Reduction

				Omnibus Reconciliation Act of 2005, as estimated by the Secretary.</text>

											</paragraph><paragraph id="IDC3099C6EE0CD446BB0004C15DC6B8423"><enum>(2)</enum><header>Payments from

				trust funds</header><text>Payments to organizations under this section shall be

				made from the Federal Hospital Insurance Trust Fund and the Federal

				Supplementary Medical Insurance Trust Fund in the same proportion as payments

				to Medicare Advantage organizations are made from such Trust Funds under the

				first sentence of section 1853(f).</text>

											</paragraph></subsection></section><section id="ID9ED96449E26D472E94936AC09CFB7696"><enum>1860E–5.</enum><header>ESRD provider and facility Value-Based

		  purchasing Program</header><subsection commented="no" display-inline="yes-display-inline" id="IDD0EB523A82FB4110908A68F0417E1669"><enum>(a)</enum><header>Program</header>

											<paragraph id="IDC10802A691574FC4B184BE1A3F609FA7"><enum>(1)</enum><header>In

				general</header><text>The Secretary shall establish a program under which

				value-based payments are provided each year to providers of services and renal

				dialysis facilities that—</text>

												<subparagraph id="ID2B48E87E11784AAC96CB0338FA213420"><enum>(A)</enum><text>provide items and

				services to individuals with end stage renal disease who are enrolled under

				part B; and</text>

												</subparagraph><subparagraph id="IDD5229D57E44E426A8DE65C67F9EE1136"><enum>(B)</enum><text>demonstrate the

				provision of high quality health care to such individuals.</text>

												</subparagraph></paragraph><paragraph id="IDCB96342FE2B84E7E9DBF282F71526FB0"><enum>(2)</enum><header>Program to

				begin in 2007</header><text>The Secretary shall establish the program under

				this section so that value-based payments described in subsection (b) are made

				with respect to 2007 and each subsequent year.</text>

											</paragraph><paragraph id="IDCBF389FF571D474186C733B2CFD494A4"><enum>(3)</enum><header>Exclusions from

				program</header>

												<subparagraph id="ID57BE81D87B5146129F2D3A87F6287B20"><enum>(A)</enum><header>Pediatric

				facilities</header><text>Any renal dialysis facility at least 50 percent of

				whose patients are individuals under 18 years of age shall not be included in

				the program under this section.</text>

												</subparagraph><subparagraph id="IDA901219A802A48F7925F5D25B6DBF00C"><enum>(B)</enum><header>Providers and

				facilities currently participating in bundled case-mix demonstration not

				included in program</header><text>Any provider of services or renal dialysis

				facility that is currently participating in the bundled case-mix adjusted

				payment system for ESRD services demonstration project under section 623(e) of

				the Medicare Prescription Drug, Improvement, and Modernization Act of 2003

				(Public Law 108–173) shall not be included in the program under this section,

				but only for so long as the provider or facility is so participating.</text>

												</subparagraph></paragraph></subsection><subsection id="ID1EE8265DA8A64447B32C437AEC5F3BB7"><enum>(b)</enum><header>Value-Based

				Payments</header>

											<paragraph id="IDD2A7992FBA3842A68ED21E9D1CD70B3C"><enum>(1)</enum><header>In

				general</header><text>Subject to paragraph (4), the Secretary shall make a

				value-based payment to a provider of services or a renal dialysis facility with

				respect to a year if the Secretary determines that the quality of the care

				provided in that year by the provider or facility to individuals with end stage

				renal disease who are enrolled under part B—</text>

												<subparagraph id="IDB6B1C9D4BBD847C68CC1299BD0E8B725"><enum>(A)</enum><text>has substantially

				improved (as determined by the Secretary) over the prior year; or</text>

												</subparagraph><subparagraph id="ID0B10585A30E845A098BD4B1EDEA6964C"><enum>(B)</enum><text>exceeds a

				threshold established by the Secretary.</text>

												</subparagraph></paragraph><paragraph id="ID70BCD6E9437F4E9AB039FB323407B7A6"><enum>(2)</enum><header>Use of

				system</header><text>In determining which providers of services and renal

				dialysis facilities qualify for a value-based payment under paragraph (1), the

				Secretary shall use the quality measurement system developed for this section

				pursuant to section 1860E–1(a).</text>

											</paragraph><paragraph id="ID53D9B800BEEF463590BD1EA8F28BC8C9"><enum>(3)</enum><header>Determination

				of amount of award and allocation of awards</header>

												<subparagraph id="ID5B8E3885CDD44C6883D6D2995D5A3C14"><enum>(A)</enum><header>In

				general</header><text>The Secretary shall determine—</text>

													<clause id="ID0E52867FB9DF49469706F1D440F834FC"><enum>(i)</enum><text>the amount of a

				value-based payment under paragraph (1) provided to a provider of services or a

				renal dialysis facility; and</text>

													</clause><clause id="IDFDF5D4C2C334472DA8DD8EF31BC79ACD"><enum>(ii)</enum><text>subject to

				subparagraphs (B) and (C), the allocation of the total amount available under

				subsection (c) for value-based payments for any year between payments with

				respect to providers and facilities that meet the requirement under

				subparagraph (A) of paragraph (1) and providers and facilities that meet the

				requirement under subparagraph (B) of such paragraph.</text>

													</clause></subparagraph><subparagraph id="IDCE42489D5A7E472485AFCC73FCC43EAF"><enum>(B)</enum><header>Requirement

				regarding amount of funding available for value-based payments for providers

				and facilities exceeding a threshold</header><text>The Secretary shall ensure

				that—</text>

													<clause id="IDDA5BC623D68642D0B7210480C121A21F"><enum>(i)</enum><text>a

				majority of the total amount available under subsection (c) for value-based

				payments for any year is provided to providers of services and renal dialysis

				facilities that are receiving such payments because they meet the requirement

				under paragraph (1)(B); and</text>

													</clause><clause id="ID664C708DCF1B4C139A7E5529BC902BE5"><enum>(ii)</enum><text>with respect to

				2009 and each subsequent year, the percentage of the total amount available

				under subsection (c) for value-based payments for any year that is used to make

				payments to providers and facilities that meet such requirement is greater than

				such percentage in the previous year.</text>

													</clause></subparagraph><subparagraph id="ID77A1ECE557DC4A668771E2DCADBC9FDB"><enum>(C)</enum><header>Only

				value-based payments for providers and facilities exceeding a threshold in

				2007</header><text>With respect to 2007, the entire amount available under

				subsection (c) for value-based payments for that year shall be used to make

				payments to providers of services and renal dialysis facilities that meet the

				requirement under paragraph (1)(B).</text>

												</subparagraph></paragraph><paragraph id="IDAA3DCE3189B64850827FF7EF6FEC58CA"><enum>(4)</enum><header>Requirements</header>

												<subparagraph id="ID0C033AA20F5647588028327E89115591"><enum>(A)</enum><header>Required

				submission of data</header>

													<clause id="ID17E3F96D770846D5B25482F826FBE06A"><enum>(i)</enum><header>In

				general</header><text>In order for a provider of services or a renal dialysis

				facility to be eligible for a value-based payment for a year, the provider or

				facility must have provided for the submission of data in accordance with

				clause (ii) with respect to that year.</text>

													</clause><clause id="ID9B7DEADC94ED4A76B4632A52BA2D31ED"><enum>(ii)</enum><header>Submission of

				data</header><text>For 2007 and each subsequent year, each provider of services

				and renal dialysis facility that receives payments under paragraph (12) shall

				submit to the Secretary such data that the Secretary determines is appropriate

				for the measurement of health outcomes and other indices of quality, including

				data necessary for the operation of the program under this section. Such data

				shall be submitted in a form and manner, and at a time, specified by the

				Secretary for purposes of this clause.</text>

													</clause><clause id="IDB6AE537E096F4417A0669050506F1E1B"><enum>(iii)</enum><header>Availability

				to the public</header><text>The Secretary shall establish procedures for making

				data submitted under clause (ii) available to the public in a clear and

				understandable form. Such procedures shall ensure that a provider or facility

				has the opportunity to review the data that is to be made public with respect

				to the provider or facility prior to such data being made public.</text>

													</clause></subparagraph><subparagraph id="ID80076022E78F4779898E8BA49E31F8BB"><enum>(B)</enum><header>Attestation

				regarding data</header><text>In order for a provider of services or a renal

				dialysis facility to be eligible for a value-based payment for a year, the

				provider or facility must have provided the Secretary (under procedures

				established by the Secretary) with an attestation that the data submitted under

				subparagraph (A)(ii) for the year is complete and accurate.</text>

												</subparagraph></paragraph><paragraph id="IDBD5F5132EC5C4A85B8A19A0ACEA66897"><enum>(5)</enum><header>Total amount of

				value-based payments equal to total amount of available

				funding</header><text>The Secretary shall establish payment amounts under

				paragraph (3)(A) so that, as estimated by the Secretary, the total amount of

				value-based payments made in a year under paragraph (1) is equal to the total

				amount available under subsection (c) for such payments for the year.</text>

											</paragraph><paragraph id="ID9A41BC2ABC6245178A5E4CD97626F94F"><enum>(6)</enum><header>Payment methods

				and timing of payments</header>

												<subparagraph id="IDCB1B0E0FB875419D83B49BAE07136B69"><enum>(A)</enum><header>In

				general</header><text>Subject to subparagraph (B), the payment of value-based

				payments under paragraph (1) shall be based on such a method as the Secretary

				determines appropriate.</text>

												</subparagraph><subparagraph id="ID7C25A2F675F74327947D9FF17A8EB846"><enum>(B)</enum><header>Timing</header><text>The

				Secretary shall ensure that value-based payments under paragraph (1) with

				respect to a year are made by not later than December 31 of the subsequent

				year.</text>

												</subparagraph></paragraph></subsection><subsection id="ID6D3E7091FE6F43999E4F110FE738D444"><enum>(c)</enum><header>Funding</header>

											<paragraph id="ID7BAD77EDA9AD4E708DA49EA1F5B6F688"><enum>(1)</enum><header>Amount</header><text>The

				amount available for value-based payments under this section with respect to a

				year shall be equal to the amount of the reduction in expenditures under the

				Federal Supplementary Medical Insurance Trust Fund under section 1841 in the

				year by reason of the application of section 1881(b)(12)(G), as estimated by

				the Secretary.</text>

											</paragraph><paragraph id="IDB4A70639C77E4F1B8A0A2E02273831AE"><enum>(2)</enum><header>Payments from

				trust fund</header><text>Payments to providers of services and renal dialysis

				facilities under this section shall be made from the Federal Supplementary

				Medical Insurance Trust Fund.</text>

											</paragraph></subsection></section><section id="ID2A4B69FEB78F447B93D36BD971F5AB36"><enum>1860E–6.</enum><header>Home health agency Value-Based

		  purchasing Program</header><subsection commented="no" display-inline="yes-display-inline" id="IDF5FF83468B0B435AA75DD6B86E18CDF1"><enum>(a)</enum><header>Program</header>

											<paragraph id="ID28026D6DD20541548A49644E791A3E01"><enum>(1)</enum><header>In

				general</header><text>The Secretary shall establish a program under which

				value-based payments are provided each year to home health agencies that

				demonstrate the provision of high quality health care to individuals entitled

				to benefits under part A or enrolled under part B.</text>

											</paragraph><paragraph id="ID2AE7BCA3DBA54F7B94F4A9D3291C2DA8"><enum>(2)</enum><header>Program to

				begin in 2008</header><text>The Secretary shall establish the program under

				this section so that value-based payments described in subsection (b) are made

				with respect to 2008 and each subsequent year.</text>

											</paragraph><paragraph id="IDA51407ECF2C645EB993B6DA116C42C98"><enum>(3)</enum><header>Home health

				agency defined</header><text>In this section, the term <term>home health

				agency</term> has the meaning given that term in section 1861(o).</text>

											</paragraph></subsection><subsection id="IDAACAC25F1CEB4168AB5CCA441F28F753"><enum>(b)</enum><header>Value-Based

				Payments</header>

											<paragraph id="ID7466751F77AB4D039EB653838115A592"><enum>(1)</enum><header>In

				general</header><text>Subject to paragraph (4), the Secretary shall make a

				value-based payment to a home health agency with respect to a year if the

				Secretary determines that the quality of the care provided in that year by the

				agency to individuals entitled to benefits under part A or enrolled under part

				B—</text>

												<subparagraph id="IDB239124484324869B41D6B6BC8539BBF"><enum>(A)</enum><text>has substantially

				improved (as determined by the Secretary) over the prior year; or</text>

												</subparagraph><subparagraph id="IDC7FDACBAC4484E01B408B5434A22003C"><enum>(B)</enum><text>exceeds a

				threshold established by the Secretary.</text>

												</subparagraph></paragraph><paragraph id="ID624D02CFF7724817A8100309E7D866C7"><enum>(2)</enum><header>Use of

				system</header><text>In determining which home health agencies qualify for a

				value-based payment under paragraph (1), the Secretary shall use the quality

				measurement system developed for this section pursuant to section

				1860E–1(a).</text>

											</paragraph><paragraph id="ID79C62726C6F848C8AB31217BC16F8A72"><enum>(3)</enum><header>Determination

				of amount of award and allocation of awards</header>

												<subparagraph id="ID7389A02FDE1A4E3C9FC014114167E393"><enum>(A)</enum><header>In

				general</header><text>The Secretary shall determine—</text>

													<clause id="ID73623239A46749A2BD3419A276D2138E"><enum>(i)</enum><text>the amount of a

				value-based payment under paragraph (1) provided to a home health agency;

				and</text>

													</clause><clause id="ID7A4301F3A2374A34BB7DC75EEBA8236D"><enum>(ii)</enum><text>subject to

				subparagraph (B), the allocation of the total amount available under subsection

				(d) for value-based payments for any year between payments with respect to

				agencies that meet the requirement under subparagraph (A) of paragraph (1) and

				agencies that meet the requirement under subparagraph (B) of such

				paragraph.</text>

													</clause></subparagraph><subparagraph id="ID03CA6C6221464676BBEA010EC98B589E"><enum>(B)</enum><header>Requirements

				regarding the amount of funding available for value-based payments for agencies

				exceeding a threshold</header><text>The Secretary shall ensure that—</text>

													<clause id="ID6BC819109FC14438853FEE4529C1659B"><enum>(i)</enum><text>a

				majority of the total amount available under subsection (d) for value-based

				payments for any year is provided to home health agencies that are receiving

				such payments because they meet the requirement under paragraph (1)(B);

				and</text>

													</clause><clause id="ID27EDAECA103B485EB5901B1A47F5B5D9"><enum>(ii)</enum><text>with respect to

				2009 and each subsequent year, the percentage of the total amount available

				under subsection (d) for value-based payments for any year that is used to make

				payments to agencies that meet such requirement is greater than such percentage

				in the previous year.</text>

													</clause></subparagraph></paragraph><paragraph id="IDF0482B526B0443529DCC82CE960D20BC"><enum>(4)</enum><header>Requirements</header>

												<subparagraph id="ID6A1469638C1D438A9F05A68949F1A84D"><enum>(A)</enum><header>Required

				submission of data</header><text>In order for a home health agency to be

				eligible for a value-based payment for a year, the agency must have complied

				with the requirements under section 1895(b)(3)(B)(v)(II) with respect to that

				year.</text>

												</subparagraph><subparagraph id="ID1585A7BE43A648F885493D32DC56A1B3"><enum>(B)</enum><header>Attestation

				regarding data</header><text>In order for a home health agency to be eligible

				for a value-based payment for a year, the agency must have provided the

				Secretary (under procedures established by the Secretary) with an attestation

				that the data submitted under section 1895(b)(3)(B)(v)(II) with respect to that

				year is complete and accurate.</text>

												</subparagraph></paragraph><paragraph id="ID25B0F91A27C94F0DBD0A810DC74ED66F"><enum>(5)</enum><header>Total amount of

				value-based payments equal to total amount of available

				funding</header><text>The Secretary shall establish payment amounts under

				paragraph (3)(A) so that, as estimated by the Secretary, the total amount of

				value-based payments made in a year under paragraph (1) is equal to the total

				amount available under subsection (d) for such payments for the year.</text>

											</paragraph><paragraph id="IDF79D2E8170104A78BF0656FC8A9AEBD4"><enum>(6)</enum><header>Payment methods

				and timing of payments</header>

												<subparagraph id="IDDC45E7D3ED914C9283B543577ED5702F"><enum>(A)</enum><header>In

				general</header><text>Subject to subparagraph (B), the payment of value-based

				payments under paragraph (1) shall be based on such a method as the Secretary

				determines appropriate.</text>

												</subparagraph><subparagraph id="ID9A7866939C824CE3B4DD15969BA1C4D5"><enum>(B)</enum><header>Timing</header><text>The

				Secretary shall ensure that value-based payments under paragraph (1) with

				respect to a year are made by not later than December 31 of the subsequent

				year.</text>

												</subparagraph></paragraph></subsection><subsection id="ID1E86C52F76C540EEB093FBFE54746B77"><enum>(c)</enum><header>Description of

				How Agencies Would Have Fared Under Program</header><text>Not later than

				January 1, 2008, the Secretary shall provide each home health agency with a

				description of the Secretary’s estimate of how payments to the agency under

				this title would have been affected with respect to items and services

				furnished during a period, as determined by the Secretary, if the program under

				this section (and the amendments made by section 6110(f) of the Deficit

				Reduction Omnibus Reconciliation Act of 2005) had been in effect with respect

				to that period.</text>

										</subsection><subsection id="IDA3DDB5DB6D614285BB3D776BD531A195"><enum>(d)</enum><header>Funding</header>

											<paragraph id="ID2653E67DB7704AE4B876DD15C6AE0FB1"><enum>(1)</enum><header>Amount</header><text>The

				amount available for value-based payments under this section with respect to a

				year shall be equal to the amount of the reduction in expenditures under the

				Federal Hospital Insurance Trust Fund under section 1817 and Federal

				Supplementary Medical Insurance Trust Fund under section 1841 in the year as a

				result of the application of section 1895(b)(3)(D), as estimated by the

				Secretary.</text>

											</paragraph><paragraph id="ID597A08065B8849319347E8D835F6A69A"><enum>(2)</enum><header>Payments from

				trust fund</header><text>Payments to home health agencies under this section

				shall be made from the Federal Hospital Insurance Trust Fund and Federal

				Supplementary Medical Insurance Trust Fund, in the same proportion as payments

				for home health services are made from such trust

				funds.</text>

											</paragraph></subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></subsection><subsection id="IDB729E8EFC1B749AE94612ECA7F11F376"><enum>(b)</enum><header>Hospitals</header>

						<paragraph id="IDDF704FDC22B84CE0929478679538A028"><enum>(1)</enum><header>Voluntary

			 submission of hospital quality data</header>

							<subparagraph id="IDE97A537C32D14CE68A3BA3036AF9E2FD"><enum>(A)</enum><header>Update for

			 hospitals that submit quality data</header><text>Section 1886(b)(3)(B) (42

			 U.S.C. 1395ww(b)(3)(B)) is amended—</text>

								<clause id="IDA9CBD646AC0740489FAE7513283050A2"><enum>(i)</enum><text>in

			 clause (vii)—</text>

									<subclause id="ID42ED8163AEA14FA790A5AD4F249EDEB5"><enum>(I)</enum><text>in subclause (I),

			 by striking <quote>for each of fiscal years 2005 through 2007</quote> and

			 inserting <quote>for fiscal years 2005 and 2006</quote>; and</text>

									</subclause><subclause id="ID1A624C3BADBB452187D723DBAAE24E08"><enum>(II)</enum><text>in subclause

			 (II), by striking <quote>Each</quote> and inserting <quote>For fiscal years

			 2005 and 2006, each</quote>; and</text>

									</subclause></clause><clause id="ID105B68A3B6554AAA9FD204101D15DB8A"><enum>(ii)</enum><text>by

			 adding at the end the following new clause:</text>

									<quoted-block id="IDBC0DA200340248848EFFAD693BFC51E5" style="OLC">

										<clause id="ID30884CB91AC94F09BF3B7FADF490F4EF"><enum>(viii)</enum><subclause commented="no" display-inline="yes-display-inline" id="ID75AA5F126D364D17AA767A4B20172ED6"><enum>(I)</enum><text>For purposes of clause

				(i)(XX), for fiscal year 2007 and each subsequent fiscal year, in the case of a

				subsection (d) hospital that does not submit data in accordance with subclause

				(II) with respect to such a fiscal year, the applicable percentage increase

				under such clause for such fiscal year shall be reduced by 2 percentage points.

				Such reduction shall apply only with respect to the fiscal year involved, and

				the Secretary shall not take into account such reduction in computing the

				applicable percentage increase under clause (i)(XX) for a subsequent fiscal

				year.</text>

											</subclause><subclause id="ID125DB9451286472C85BD2AC07918892C" indent="up1"><enum>(II)</enum><text>For fiscal year 2007 and each subsequent

				fiscal year, each subsection (d) hospital shall submit to the Secretary such

				data that the Secretary determines is appropriate for the measurement of health

				care quality, including data necessary for the operation of the PPS hospital

				value-based purchasing program under section 1860E–2. Such data shall be

				submitted in a form and manner, and at a time, specified by the Secretary for

				purposes of this clause.</text>

											</subclause><subclause id="ID2B0C76949664445CAE88A86B9BDCEEA8" indent="up1"><enum>(III)</enum><text>The Secretary shall establish

				procedures for making data submitted under subclause (II) available to the

				public in a clear and understandable form. Such procedures shall ensure that a

				subsection (d) hospital has the opportunity to review the data that is to be

				made public with respect to the hospital prior to such data being made

				public.</text>

											</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>

								</clause></subparagraph><subparagraph id="ID6A0BC1E9F86943F59EF4A586197ED692"><enum>(B)</enum><header>Conforming

			 amendments</header><text>Section 1886(b)(3)(B)(i) (42 U.S.C.

			 1395ww(b)(3)(B)(i)) is amended—</text>

								<clause id="IDFFCC6FD2369A49719CC8C0CA25FB2D14"><enum>(i)</enum><text>in

			 subclause (XIX), by striking <quote>2007</quote> and inserting

			 <quote>2006</quote>; and</text>

								</clause><clause id="IDFC9395CF34634B30880F1232AEE9C11C"><enum>(ii)</enum><text>in

			 subclause (XX)—</text>

									<subclause id="IDE52D3BD8A5D84704B1CC8842673B1A1D"><enum>(I)</enum><text>by striking

			 <quote>2008</quote> and inserting <quote>2007</quote>; and</text>

									</subclause><subclause id="ID565C8DD4E30B43A9840E21BA08A07751"><enum>(II)</enum><text>by inserting

			 <quote>subject to clause (viii),</quote> after <quote>fiscal

			 year,</quote>.</text>

									</subclause></clause></subparagraph></paragraph><paragraph id="IDA315968FD3604B7C94FAC01EE24E7C2F"><enum>(2)</enum><header>Reduction in

			 payments in order to fund program</header>

							<subparagraph id="ID8E30ED58F50D4EDE92D8E3AC819AF378"><enum>(A)</enum><header>Reduction in

			 payments</header><text>Section 1886(d)(5)(A) (42 U.S.C. 1395ww(d)(5)(A)) is

			 amended—</text>

								<clause id="ID9F4CD56D7AFE42F5B3A5DA53F401C76A"><enum>(i)</enum><text>in

			 clause (iv), by striking <quote>5 percent nor more than 6 percent</quote> and

			 inserting <quote>the applicable lower percent nor more than the applicable

			 upper percent</quote>; and</text>

								</clause><clause id="IDEB6EC2EACC6D4982A0CF42C1A5808885"><enum>(ii)</enum><text>by

			 adding at the end the following new clause:</text>

									<quoted-block id="IDC3684C08BF014649ADBF53A9AC03B3A7" style="OLC">

										<clause id="IDF1BAFE82105E4B3495271050EAD198A6" indent="up3"><enum>(vii)</enum><text>For purposes of clause (iv)—</text>

											<subclause id="ID3DFF0FC979DE416EB91B98284DADE500"><enum>(I)</enum><text>for fiscal years prior to 2007, the

				<quote>lower percent</quote> is 5.0 percent and the <quote>upper

				percent</quote> is 6.0 percent;</text>

											</subclause><subclause id="IDF6710B6DF5034CEA831A3E2C3229EAD9"><enum>(II)</enum><text>for fiscal year 2007, the

				<quote>lower percent</quote> is 4.0 percent and the <quote>upper

				percent</quote> is 5.0 percent;</text>

											</subclause><subclause id="ID12440A31B7354F3EA6F1A13AAFCFD757"><enum>(III)</enum><text>for fiscal year 2008, the

				<quote>lower percent</quote> is 3.75 percent and the <quote>upper

				percent</quote> is 4.75 percent;</text>

											</subclause><subclause id="ID0FA9A2502BE940F1A385FDD17F28C23E"><enum>(IV)</enum><text>for fiscal year 2009, the

				<quote>lower percent</quote> is 3.5 percent and the <quote>upper

				percent</quote> is 4.5 percent;</text>

											</subclause><subclause id="ID58C2F41C9BDA402393D0BA5A316DA611"><enum>(V)</enum><text>for fiscal year 2010, the <quote>lower

				percent</quote> is 3.25 percent and the <quote>upper percent</quote> is 4.25

				percent; and</text>

											</subclause><subclause id="ID90463372C5674F75854A47C8EBE9104A"><enum>(VI)</enum><text>for fiscal year 2011 and each

				subsequent fiscal year, the <quote>lower percent</quote> is 3.0 percent and the

				<quote>upper percent</quote> is 4.0

				percent.</text>

											</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>

								</clause></subparagraph><subparagraph id="ID08F12D1F55874B8EB9F946DC78490BD2"><enum>(B)</enum><header>Continuation of

			 current level of reductions to the average standardized

			 amount</header><text>Section 1886(d)(3)(B) (42 U.S.C. 1395ww(d)(3)(B)) is

			 amended to read as follows:</text>

								<quoted-block id="ID6F13A540B91D40589488F19EFA345551" style="OLC">

									<subparagraph id="ID1DAECDFFA0F841DC92D0AFAE16D1BD43" indent="up1"><enum>(B)</enum><header>Reducing for value of outlier

				payments and for funding of hospital value-based purchasing program</header>

										<clause id="IDB76A87A932274ECFA7DB578A18E476CA"><enum>(i)</enum><header>In general</header><text>The

				Secretary shall reduce each of the average standardized amounts determined

				under subparagraph (A) by a factor equal to a fraction—</text>

											<subclause id="IDC81B4B98FF074B4C8EF82AAEFFB387D9"><enum>(I)</enum><text>the numerator of which is the sum

				of—</text>

												<item id="IDCEFF785F5D0F403C8E7CD53790DB5C7F"><enum>(aa)</enum><text>the additional payments described in

				paragraph (5)(A) (relating to outlier payments); and</text>

												</item><item id="IDEDAFD86F8EC640E6B993C2A6C6595EAD"><enum>(bb)</enum><text>the applicable percent of the total

				payments projected or estimated to be made based on DRG prospective payment

				rates for discharges in that year; and</text>

												</item></subclause><subclause id="ID780922D39DD94E14936F6F2EF1D73419"><enum>(II)</enum><text>the denominator of which is the total

				payments projected or estimated to be made based on DRG prospective payment

				rates for discharges in that year.</text>

											</subclause></clause><clause id="ID808B75CD41A94359822076205E99557B"><enum>(ii)</enum><header>Applicable

				percent</header><text>For purposes of clause (i)(I)(bb), the term

				<term>applicable percent</term> means—</text>

											<subclause id="ID8761081FC2E245C1AE0D90272E305D66"><enum>(I)</enum><text>for fiscal years prior to fiscal year

				2007, 0 percent;</text>

											</subclause><subclause id="IDBD3A0DE6CB3E4B3AA7B29CB2087A134B"><enum>(II)</enum><text>for fiscal year 2007, 1.0

				percent;</text>

											</subclause><subclause id="ID14F5EE7C18D74D22B4FF1D86255FBC31"><enum>(III)</enum><text>for fiscal year 2008, 1.25

				percent;</text>

											</subclause><subclause id="IDEB2AD180A1CD47C19AE604E03BDA29CE"><enum>(IV)</enum><text>for fiscal year 2009, 1.5

				percent;</text>

											</subclause><subclause id="IDE68A21B81EBB4D81800C78C942B0A6EB"><enum>(V)</enum><text>for fiscal year 2010, 1.75 percent;

				and</text>

											</subclause><subclause id="IDF0F82109BF71412D915FA4BC3F8FA541"><enum>(VI)</enum><text>for fiscal year 2011 and each subsequent

				year, 2.0

				percent.</text>

											</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="IDA295F82F55854C0BA224E5C2F1CA7C92"><enum>(3)</enum><header>Value-based

			 purchasing demonstration program for critical access hospitals</header>

							<subparagraph id="IDFB1D533C77AE4AC3983150AB210097DA"><enum>(A)</enum><header>Establishment</header><text>Not

			 later than 6 months after the date of enactment of this Act, the Secretary

			 shall establish a 2-year demonstration program under which the Secretary

			 establishes a value-based purchasing program under the Medicare program under

			 title XVIII of the <act-name parsable-cite="SSA">Social Security Act</act-name>

			 for critical access hospitals (as defined in section 1861(mm)(1) of such Act

			 (42 U.S.C. 1395x(mm)(1)) in order to test innovative methods of measuring and

			 rewarding quality health care furnished by such hospitals.</text>

							</subparagraph><subparagraph id="ID842D5BF116E84537BA464DB1BA12BE8B"><enum>(B)</enum><header>Sites</header><text>The

			 Secretary shall conduct the demonstration program at 6 critical access

			 hospitals. The Secretary shall ensure that such hospitals are representative of

			 the spectrum of such hospitals that participate in the Medicare program.</text>

							</subparagraph><subparagraph id="IDEFF75DF49F194220B58E7E2B7C1ED38A"><enum>(C)</enum><header>Waiver

			 Authority</header><text>The Secretary may waive such requirements of titles XI

			 and XVIII of the <act-name parsable-cite="SSA">Social Security Act</act-name>

			 as may be necessary to carry out the demonstration program.</text>

							</subparagraph><subparagraph id="IDE0DF8778B8844347A727DABDF600AA9E"><enum>(D)</enum><header>Funding</header><text>The

			 Secretary shall provide for the transfer from the Federal Hospital Insurance

			 Trust Fund under section 1817 of the <act-name parsable-cite="SSA">Social

			 Security Act</act-name> (42 U.S.C. 1395i) of such funds as are necessary for

			 the costs of carrying out the demonstration program.</text>

							</subparagraph><subparagraph id="ID32017C6032614EF68FDE2866FE2549B2"><enum>(E)</enum><header>Report</header><text>Not

			 later than 6 months after the demonstration program is completed, the Secretary

			 shall submit to Congress a report on the demonstration program together with

			 recommendations on the establishment of a permanent value-based purchasing

			 program under the Medicare program for critical access hospitals and

			 recommendations for such other legislation or administrative action as the

			 Secretary determines appropriate.</text>

							</subparagraph></paragraph></subsection><subsection id="ID913C2BFA339E4363B2B41A8427D7051B"><enum>(c)</enum><header>Physicians and

			 Practitioners</header>

						<paragraph id="ID9D2AB142A4764DBD9A75709AF6F99A04"><enum>(1)</enum><header>Voluntary

			 submission of physician and practitioner quality data</header>

							<subparagraph id="ID84067AFAE3AC4E42AA8D955D14721CF1"><enum>(A)</enum><header>Update for

			 physicians and practitioners that submit quality data</header><text>Section

			 1848(d)(4) (42 U.S.C. 1395w–4(d)(4)) is amended by adding at the end the

			 following new subparagraph:</text>

								<quoted-block id="IDDDB463CF193C43938BFEB0E9B2FCE9C6" style="OLC">

									<subparagraph id="ID4B698021458D4A5F8D1083E265EA9878"><enum>(G)</enum><header>Adjustment if

				quality data not submitted</header>

										<clause id="IDA832024A2A2B497FA125CFE01403BE50"><enum>(i)</enum><header>Adjustment</header><text>For

				2007 and each subsequent year, in the case of services furnished by a physician

				or a practitioner (as defined in section 1860E–3(a)(3)) that does not submit

				data in accordance with clause (ii) with respect to such a year, the update

				otherwise determined under subparagraph (A) shall be reduced by 2 percentage

				points. Such reduction shall apply only with respect to the year involved, and

				the Secretary shall not take into account such reduction in computing the

				conversion factor for a subsequent year.</text>

										</clause><clause id="ID37AD0890F9584405995C4E90EAA82D8B"><enum>(ii)</enum><header>Submission of

				quality data</header><text>For 2007 and each subsequent year, each physician

				and practitioner (as defined in section 1860E–3(a)(3)) shall submit to the

				Secretary such data that the Secretary determines is appropriate for the

				measurement of health outcomes and other indices of quality, including data

				necessary for the operation of the physician and practitioner value-based

				purchasing program under section 1860E–3. Such data shall be submitted in a

				form and manner, and at a time, specified by the Secretary for purposes of this

				subparagraph.</text>

										</clause><clause id="ID3F8DA2FA56F44EDA9757BFA8F7839DBB"><enum>(iii)</enum><header>Available to

				the public</header>

											<subclause id="ID93338340BB484373A1471408D34245ED"><enum>(I)</enum><header>In

				general</header><text>Subject to subclauses (II) and (III), the Secretary shall

				establish procedures for making data submitted under clause (ii), with respect

				to items and services furnished on or after January 1, 2008, available to the

				public in 3 phases as follows:</text>

												<item id="IDA3D78259060C49FC95B005837CFFD97D"><enum>(aa)</enum><header>Phase

				I</header><text>During phase I, the Secretary shall make available to the

				public the identity of physicians and practitioners that are submitting such

				data.</text>

												</item><item id="ID37347C3A96BB4E9C89D67D9759E35216"><enum>(bb)</enum><header>Phase

				II</header><text>During phase II, the Secretary shall make available to the

				public the identity of physicians and practitioners that are receiving a

				value-based payment under section 1860E–3.</text>

												</item><item id="ID16517281F335438E83D69C61B10F1509"><enum>(cc)</enum><header>Phase

				III</header><text>During phase III, the Secretary shall make data submitted

				under clause (ii) available to the public in a clear and understandable

				form.</text>

												</item></subclause><subclause id="ID56091138E2854DD287AD7912EA3FFB87"><enum>(II)</enum><header>Review</header><text>The

				procedures established under subclause (I) shall ensure that a physician or

				practitioner has the opportunity to review the data that is to be made public

				with respect to the physician or practitioner under subclause (I)(cc) prior to

				such data being made public.</text>

											</subclause><subclause id="IDAEE2A2C4F1E14960BA13724DB1E3DEB1"><enum>(III)</enum><header>Exceptions</header><text>The

				Secretary shall establish exceptions to the requirement for making data

				available to the public under subclause (I). In providing for such exceptions,

				the Secretary shall take into account the size and specialty representation of

				the practice

				involved.</text>

											</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="ID677EC8D1A99C4A7F9D87236E1DF51761"><enum>(B)</enum><header>Conforming

			 amendment</header><text>Section 1848(d)(4)(A) (42 U.S.C. 1395w–4(d)(4)(A)) is

			 amended, in the matter preceding clause (i), by striking <quote>subparagraph

			 (F)</quote> and inserting <quote>subparagraphs (F) and (G)</quote>.</text>

							</subparagraph></paragraph><paragraph id="ID8B9D2B9771FF4BF181F6E38A182A3404"><enum>(2)</enum><header>Reduction in

			 conversion factor for physicians and practitioners that submit quality data in

			 order to fund program</header>

							<subparagraph id="ID82DD2919F29C4BDE8CFE69C581577BD6"><enum>(A)</enum><header>In

			 general</header><text>Section 1848(d) (42 U.S.C. 1395w–4(d)) is amended by

			 adding at the end the following new paragraph:</text>

								<quoted-block id="IDA686951FBD914DCFA7B5771136BADE4F" style="OLC">

									<paragraph id="IDB2F0C2AEBC174FE7AF573BB2CD76793F"><enum>(6)</enum><header>Reduction in

				conversion factor for physicians and practitioners in order to fund value-based

				purchasing program</header>

										<subparagraph id="IDFD4079D79D004F93B07DBA5A4F8144E5"><enum>(A)</enum><header>In

				general</header><text>For 2009 and each subsequent year, the single conversion

				factor otherwise applicable under this subsection to services furnished in the

				year by a physician or a practitioner (as defined in section 1860E–3(a)(3))

				that complies with the requirements under paragraph (4)(G)(ii) for the year

				(determined after application of the update under paragraph (4)) shall be

				reduced by the applicable percent.</text>

										</subparagraph><subparagraph id="ID424EE32904BE434E86FD374648A9018B"><enum>(B)</enum><header>Applicable

				percent</header><text>For purposes of subparagraph (A), the term

				<term>applicable percent</term> means—</text>

											<clause id="IDD34B19B3CECD4D2CA5BBACE00A87E4F2"><enum>(i)</enum><text>for 2009, 1.0

				percent;</text>

											</clause><clause id="ID82B78FD21DA049D48D10570B494F57A8"><enum>(ii)</enum><text>for 2010, 1.25

				percent;</text>

											</clause><clause id="IDB8D04BDAAAA94A1E97B2BABB6F42A4F4"><enum>(iii)</enum><text>for 2011, 1.5

				percent;</text>

											</clause><clause id="ID202CA4CBA50B4C9E9E7CE6E8195E6BDD"><enum>(iv)</enum><text>for 2012, 1.75

				percent; and</text>

											</clause><clause id="ID3281E01FB2A041BD9B9A59049E38CAC1"><enum>(v)</enum><text>for 2013 and each

				subsequent year, 2.0

				percent.</text>

											</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="ID7BB2F4510D2442CEB95CF1A361AE6993"><enum>(B)</enum><header>Conforming

			 amendment</header><text>Section 1848(d)(1)(A) (42 U.S.C. 1395w–4(d)(1)(A)) is

			 amended by striking <quote>The conversion factor</quote> and inserting

			 <quote>Subject to paragraph (6), the conversion factor</quote>.</text>

							</subparagraph></paragraph></subsection><subsection id="ID84DB304543DC4CD48F028A1336D4452C"><enum>(d)</enum><header>Plans</header>

						<paragraph id="ID9904F3E6FFC64BCE8BD674C9A5A431DA"><enum>(1)</enum><header>Submission of

			 quality data</header>

							<subparagraph id="IDEE99181760714517B46862B35471D91B"><enum>(A)</enum><header>Medicare

			 advantage organizations</header><text>Section 1852(e) (42 U.S.C. 1395w–22(e)),

			 as amended by section 722 of the Medicare Prescription Drug, Improvement, and

			 Modernization Act of 2003 (Public Law 108–173; 117 Stat. 2347), is

			 amended—</text>

								<clause id="IDBD2E2589C08648638F6156938D3ED6C3"><enum>(i)</enum><text>in

			 paragraph (1), by striking <quote>an MA private fee-for-service plan

			 or</quote>; and</text>

								</clause><clause id="ID46AAE1E8A5724693BA2D6F0AB7FC8FD8"><enum>(ii)</enum><text>in

			 paragraph (3)—</text>

									<subclause id="ID1ED1F3AC218A421E9412203F708C643B"><enum>(I)</enum><text>in subparagraph

			 (A)—</text>

										<item id="IDBEB81E45F3B248B493F0EAE410334167"><enum>(aa)</enum><text>in

			 clause (i), by adding at the end the following new sentence: <quote>Such data

			 shall include data necessary for the operation of the plan value-based

			 purchasing program under section 1860E–4.</quote>;</text>

										</item><item id="IDAD5E441EDE694FC78FC6BF03D07F60A4"><enum>(bb)</enum><text>by

			 redesignating clause (iv) as clause (vi); and</text>

										</item><item id="ID963B89C9CCDE43EFA5BCF022746FAB63"><enum>(cc)</enum><text>by

			 inserting after clause (iii) the following new clauses:</text>

											<quoted-block id="ID2B2DDE950AE64ED1866E42332A69BBB0" style="OLC">

												<clause id="ID9F6551AA5078419AA51B7C330D149595"><enum>(iv)</enum><header>Application to

				ma private fee-for-service plans</header><text>The Secretary shall establish as

				appropriate by regulation requirements for the collection, analysis, and

				reporting of data that permits the measurement of health outcomes and other

				indices of quality for MA organizations with respect to MA private

				fee-for-service

				plans.</text>

												</clause><after-quoted-block>.</after-quoted-block></quoted-block>

											<quoted-block id="IDC4AA8A7674EB46C08BF3DF99300DC28F" style="OLC">

												<clause id="ID8AAAA0E761AA4FF4A64FFBC707864DD1"><enum>(v)</enum><header>Availability to

				the public</header><text>The Secretary shall establish procedures for making

				data reported under this subparagraph available to the public in a clear and

				understandable form. Such procedures shall ensure that an MA organization has

				the opportunity to review the data that is to be made public with respect to

				the plan offered by the organization prior to such data being made

				public.</text>

												</clause><after-quoted-block>;

				and</after-quoted-block></quoted-block>

										</item></subclause><subclause id="ID18210735F77A4D83BD3AC41305FE614B"><enum>(II)</enum><text>in subparagraph

			 (B)—</text>

										<item id="IDFD91143F4C4B4A17885755E0C754B567"><enum>(aa)</enum><text>in

			 clause (i), by striking <quote>The</quote> and inserting <quote>Subject to

			 clause (ii), the</quote>; and</text>

										</item><item id="ID679BE2D0D712455F8F84E40FE4B3C0CB"><enum>(bb)</enum><text>by

			 striking clause (ii) and inserting the following new clause:</text>

											<quoted-block id="ID6185EA97AE4248C3A501D2CECE87F227" style="OLC">

												<clause id="IDB9CB6895E7C14F349833125E6F07DB99"><enum>(ii)</enum><header>Changes in

				types of data</header><text>Subject to clause (iii), the Secretary may only

				change the types of data that are required to be submitted under subparagraph

				(A) after submitting to Congress a report on the reasons for such changes that

				was prepared—</text>

													<subclause id="IDED134D287A7A4B23B5ABD0AFD69C3AE6"><enum>(I)</enum><text>in the case of

				data necessary for the operation of the plan value-based purchasing program

				under section 1860E–4, after the requirements under subsections (c) and (d) of

				section 1860E–1 have been complied with; and</text>

													</subclause><subclause id="ID8835A3692B32474F9F88EC0D84A82539"><enum>(II)</enum><text>in the case of

				any other data, in consultation with MA organizations and private accrediting

				bodies.</text>

													</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>

										</item></subclause></clause></subparagraph><subparagraph id="ID30DDF9FBBFDC494EBAB2BE0C654E7F86"><enum>(B)</enum><header>Eligible

			 entities with reasonable cost contracts</header><text>Section 1876(h) (42

			 U.S.C. 1395mm(h)) is amended by adding at the end the following new

			 paragraph:</text>

								<quoted-block id="IDF68E10BB52014B099CF549176A236081" style="OLC">

									<paragraph id="IDAFFAD3CD2716432EB677A0908A46F570" indent="up1"><enum>(6)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDB8D74697E0BD408AA0D9701EB14A1B83"><enum>(A)</enum><text>With respect to plan

				years beginning on or after January 1, 2006, an eligible entity with a

				reasonable cost reimbursement contract under this subsection shall submit to

				the Secretary such data that the Secretary determines is appropriate for the

				measurement of health outcomes and other indices of quality, including data

				necessary for the operation of the plan value-based purchasing program under

				section 1860E–4. Such data shall be submitted in a form and manner, and at a

				time, specified by the Secretary for purposes of this subparagraph.</text>

										</subparagraph><subparagraph id="ID7EB074F323FD4075B35D2830D48E80D6" indent="up1"><enum>(B)</enum><text>The Secretary shall establish

				procedures for making data reported under subparagraph (A) available to the

				public in a clear and understandable form. Such procedures shall ensure that an

				eligible entity has the opportunity to review the data that is to be made

				public with respect to the contract prior to such data being made

				public.</text>

										</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="ID975F95A9962F4076BFFED94C498E3C35"><enum>(C)</enum><header>Effective

			 date</header><text>The amendments made by this subsection shall apply to plan

			 years beginning on or after January 1, 2006.</text>

							</subparagraph><subparagraph id="ID895F50A8E2AF46E885F1D0E2DA499DA9"><enum>(D)</enum><header>Sense of the

			 senate</header><text>It is the sense of the Senate that, in establishing the

			 timeframes for Medicare Advantage organizations and entities with a reasonable

			 cost reimbursement contract under section 1876(h) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1395mm(h)) to report quality data under sections 1852(e)(3) and 1876(h)(6),

			 respectively, of such Act, as added by this section, the Secretary should take

			 into account other timeframes for reporting quality data that such

			 organizations and entities are subject to under other Federal and State

			 programs and in the commercial market.</text>

							</subparagraph></paragraph><paragraph id="IDED73A5E13043443DAA76EBEF45C190C1"><enum>(2)</enum><header>Reduction in

			 payments to organizations in order to fund program</header>

							<subparagraph id="IDF1C3A9C66BAC4285B8568A6D08E80DCF"><enum>(A)</enum><header>Medicare

			 advantage payments</header>

								<clause id="ID78E9F200F5D04DC984C0963DEF4136A2"><enum>(i)</enum><header>In

			 general</header><text>Section 1853(a)(1) (42 U.S.C. 1395w–23(a)(1)), as amended

			 by section 222(e) of the Medicare Prescription Drug, Improvement, and

			 Modernization Act of 2003 (Public Law 108–173; 117 Stat. 2200), is

			 amended—</text>

									<subclause id="ID1C90B6FFBD5D40B68C5A6EA1EA62B873"><enum>(I)</enum><text>in clauses (i)

			 and (ii) of subparagraph (B), by inserting <quote>and, for 2009 and each

			 subsequent year, except in the case of an MSA plan or an MA plan for which

			 there was no contract under section 1857 during either of the preceding 2

			 years, reduced by the applicable percent (as defined in subparagraph

			 (I))</quote> after <quote>(G)</quote>; and</text>

									</subclause><subclause id="IDC2F8C2538EA046C9B06E327ABA346504"><enum>(II)</enum><text>by adding at the

			 end the following new subparagraph:</text>

										<quoted-block id="ID3F384394FD4342AC90CDDE4E6F92C9C9" style="OLC">

											<subparagraph id="ID352020F85A9D4D5881F91A2D40CF642B"><enum>(I)</enum><header>Applicable

				percent</header><text>For purposes of clauses (i) and (ii) of subparagraph (B),

				the term <term>applicable percent</term> means—</text>

												<clause id="IDB9C07A3833B543238DF067CFED28483D"><enum>(i)</enum><text>for 2009, 1.0

				percent;</text>

												</clause><clause id="IDB78DCB5FC8C349898C0BB491D0E54AD0"><enum>(ii)</enum><text>for 2010, 1.25

				percent;</text>

												</clause><clause id="ID91D3C6430097407A94889AC8A23E2C53"><enum>(iii)</enum><text>for 2011, 1.5

				percent;</text>

												</clause><clause id="ID89294337AEDA4153883FCE04AD8D89DD"><enum>(iv)</enum><text>for 2012, 1.75

				percent; and</text>

												</clause><clause id="ID463F7D69FE514F2D91F830377BB79CCE"><enum>(v)</enum><text>for 2013 and each

				subsequent year, 2.0

				percent.</text>

												</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

									</subclause></clause><clause id="ID79729AFDF06B4E178F40C00E51B7E6D8"><enum>(iii)</enum><header>Reductions in

			 payments do not affect the rebate for bids below the

			 benchmark</header><text>The amendments made by subparagraph (A) shall not be

			 construed to have any effect on—</text>

									<subclause id="ID12A08EC1C77F496B9CB5CC8F8488F993"><enum>(I)</enum><text>the determination

			 of whether a Medicare Advantage plan has average per capita monthly savings

			 described in paragraph (3)(C) or (4)(C) of section 1854(b) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1395w–24(b)); or</text>

									</subclause><subclause id="IDBF5B74541D9B44C184346F2C1D9C2730"><enum>(II)</enum><text>the amount of

			 such savings.</text>

									</subclause></clause></subparagraph><subparagraph id="ID147D770C49694FF6B2A858105983E94A"><enum>(A)</enum><header>Reasonable cost

			 contract payments</header><text>Section 1876(h) (42 U.S.C. 1395mm(h)), as

			 amended by subsection (a)(2), is amended by adding at the end the following new

			 paragraph:</text>

								<quoted-block id="ID60FBA4D597A04D53880E44BA2F983311" style="OLC">

									<paragraph id="ID2955D12316154F6F818FA555EB8AA850" indent="up1"><enum>(7)</enum><text>Notwithstanding the preceding

				provisions of this subsection, the Secretary shall reduce each payment to an

				eligible organization under this subsection with respect to benefits provided

				on or after January 1, 2009, by an amount equal to the applicable percent (as

				defined in section 1853(a)(1)(I)) of the payment

				amount.</text>

									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="ID71A14D79CAE84F549ACCD322892ECF55"><enum>(3)</enum><header>Requirement for

			 reporting on use of value-based payments</header>

							<subparagraph id="ID039E54376DFC40128A7A459A99AECD50"><enum>(A)</enum><header>MA

			 plans</header><text>Section 1854(a) (42 U.S.C. 1395w–24(a)), as amended by

			 section 222(a) of the Medicare Prescription Drug, Improvement, and

			 Modernization Act of 2003 (Public Law 108–173; 117 Stat. 2193), is

			 amended—</text>

								<clause id="ID405AE522401D49328643F7111211D511"><enum>(i)</enum><text>in

			 paragraph (1)(A)(i), by striking <quote>or (6)(A)</quote> and inserting

			 <quote>(6)(A), or (7)</quote>; and</text>

								</clause><clause id="ID9CEBFB17671747DDA967B8EEA52604C8"><enum>(ii)</enum><text>by

			 adding at the end the following:</text>

									<quoted-block id="ID13AF6FFE3D4A4FF5BDE3A80400553B0C" style="OLC">

										<paragraph id="IDFFB9962A59494CB1BF44C0CA1D8CFFB0"><enum>(7)</enum><header>Submission of

				information of how value-based payments will be used</header><text>For an MA

				plan for a plan year beginning on or after January 1, 2011, the information

				described in this paragraph is a description of how the organization offering

				the plan will use any value-based payments that the organization received under

				section 1860E–4 with respect to the plan for the year preceding the year in

				which such information is

				submitted.</text>

										</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

								</clause></subparagraph><subparagraph id="ID3EAB94D763B44C0C88212187B1F37D1D"><enum>(B)</enum><header>Reasonable cost

			 contracts</header><text>Section 1876(h) (42 U.S.C. 1395mm(h)), as amended by

			 subsection (c)(2), is amended by adding at the end the following new

			 paragraph:</text>

								<quoted-block id="IDB53E49A7BC574EAC979C4928D48D8EE4" style="OLC">

									<paragraph id="ID0CB3D09EA03741BC9EFDC0496F794E9F" indent="up1"><enum>(8)</enum><text>Not later than July 1 of each year

				(beginning in 2010), any eligible entity with a reasonable cost reimbursement

				contract under this subsection that received a value-based payment under

				section 1860E–4 with respect to the contract for the preceding year shall

				submit to the Secretary a report containing a description of how the

				organization will use such payments under the

				contract.</text>

									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph></subsection><subsection id="ID455C3AD3E0EF4A439365308D0DAEC235"><enum>(e)</enum><header>ESRD Providers

			 and Facilities</header>

						<paragraph id="IDAB8447AABB874CD58891E57932142AAE"><enum>(1)</enum><header>Voluntary

			 submission of quality data</header><text>Section 1881(b) (42 U.S.C. 1395rr(b))

			 is amended by adding at the end the following new paragraph:</text>

							<quoted-block id="ID365395EB2B1C4183BCD2B60D604F4AF8" style="OLC">

								<paragraph id="ID8C47BE7D8F0F4F84AE0F2425F31775D7"><enum>(14)</enum><text>By not later

				than July 31, 2006, the Secretary shall establish procedures under which

				providers of services and renal dialysis facilities that receive payments under

				paragraph (12) or (13) may submit to the Secretary data that permits the

				measurement of health outcomes and other indices of

				quality.</text>

								</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph><paragraph id="IDDCAEF9CA059B4554AA37A6C100C9412F"><enum>(2)</enum><header>Reduction in

			 case-mix adjusted prospective payment amount in order to fund

			 program</header><text>Section 1881(b)(12) (42 U.S.C. 1395rr(b)(12)) is

			 amended—</text>

							<subparagraph id="ID7C859ABFD0DD4B93AEB0D21E0F58F58A"><enum>(A)</enum><text>by redesignating

			 subparagraph (G) as subparagraph (H); and</text>

							</subparagraph><subparagraph id="IDE8F89C07A00A49B1A6224A4FA0E549FE"><enum>(B)</enum><text>by inserting

			 after subparagraph (F) the following new subparagraph:</text>

								<quoted-block id="IDF0DD53DC491E41F486121C2283A30B08" style="OLC">

									<subparagraph id="ID2C833FD717AC4BCBB44AECE1449FFE9D" indent="up1"><enum>(G)</enum><clause commented="no" display-inline="yes-display-inline" id="IDFF412863BD0244B8A80C8BDB3B563192"><enum>(i)</enum><text>In the case of any

				payment made under this paragraph for an item or service furnished on or after

				January 1, 2007, such payment shall be reduced by the applicable percent. The

				preceding sentence shall not apply to a payment for an item or service

				furnished by a provider of services or a renal dialysis facility that is

				excluded from the program under section 1860E–5 by reason of subsection (a)(3)

				of such section at the time the item or service is furnished.</text>

										</clause><clause id="ID0A806C51644749228F84905421A60F1A" indent="up1"><enum>(ii)</enum><text>For purposes of clause (i), the term

				<term>applicable percent</term> means—</text>

											<subclause id="ID48C2C918E4E14B3DB45BAB607591B6E0"><enum>(I)</enum><text>for 2007, 1.0 percent;</text>

											</subclause><subclause id="ID1EBA8B574866467698F02EFF4CB2D0F0"><enum>(II)</enum><text>for 2008, 1.25 percent;</text>

											</subclause><subclause id="ID06BCB58C4F614156B57D3F55D93A8817"><enum>(III)</enum><text>for 2009, 1.5 percent;</text>

											</subclause><subclause id="IDEC8E1C5A49AF4C27AEC42CB978FC9D41"><enum>(IV)</enum><text>for 2010, 1.75 percent; and</text>

											</subclause><subclause id="ID93D77810A5794974A92619883789243E"><enum>(V)</enum><text>for 2011 and each subsequent year,

				2.0

				percent.</text>

											</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="ID5EA9C28CBC604FF281398C62B5716DAF"><enum>(3)</enum><header>Value-based

			 purchasing under the demonstration of bundled case-mix adjusted payment system

			 for esrd services</header><text>Section 623(e) of the Medicare Prescription

			 Drug, Improvement, and Modernization Act of 2003 (42 U.S.C. 1395rr note) is

			 amended by adding at the end the following new paragraph:</text>

							<quoted-block id="ID04F259CDB07849B79B47BE43285B4066" style="OLC">

								<paragraph id="ID2A1314CED8E44CD1A3AFE59F608D0F79"><enum>(7)</enum><header>Value-based

				purchasing program</header><text>As part of the demonstration project under

				this subsection, the Secretary shall, beginning January 1, 2007, implement a

				value-based purchasing program for providers and facilities participating in

				the demonstration project. The Secretary shall implement such value-based

				purchasing program in a similar manner as the ESRD provider and facility

				value-based purchasing program is implemented under section 1860E–5 of the

				<act-name parsable-cite="SSA">Social Security Act</act-name>, including the

				funding of such

				program.</text>

								</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></subsection><subsection id="IDB4E5227752654C59B4E7691DE227410E"><enum>(f)</enum><header>Home Health

			 Agencies</header>

						<paragraph id="IDF45CB8F26898479ABDC3924C176ECD12"><enum>(1)</enum><header>Update for home

			 health agencies that submit quality data</header><text>Section 1895(b)(3)(B)

			 (42 U.S.C.fff(b)(3)(B)) is amended—</text>

							<subparagraph id="ID353411DBA22942729AE8A864DDAF0BE7"><enum>(A)</enum><text>in clause

			 (ii)(IV), by inserting <quote>subject to clause (v),</quote> after

			 <quote>subsequent year,</quote>; and</text>

							</subparagraph><subparagraph id="ID7274AAB85AAD4461A1EA64F80D44D005"><enum>(B)</enum><text>by adding at the

			 end the following new clause:</text>

								<quoted-block id="ID342CB56DC08F441A93A82DC40AD7BFA1" style="OLC">

									<clause id="ID63A80932D11C473DB9CF4EA026FBF05F"><enum>(v)</enum><header>Adjustment if

				quality data not submitted</header>

										<subclause id="IDABE402C1B5D5474E8844D3ED08DF5831"><enum>(I)</enum><header>Adjustment</header><text>For

				purposes of clause (ii)(IV), for 2007 and each subsequent year, in the case of

				a home health agency that does not submit data in accordance with subclause

				(II) with respect to such a year, the home health market basket percentage

				increase applicable under such clause for such year shall be reduced by 2

				percentage points. Such reduction shall apply only with respect to the year

				involved, and the Secretary shall not take into account such reduction in

				computing the prospective payment amount under this section for a subsequent

				year.</text>

										</subclause><subclause id="IDEFED0C43556742349669A86E1C7F2A68"><enum>(II)</enum><header>Submission of

				quality data</header><text>For 2007 and each subsequent year, each home health

				agency shall submit to the Secretary such data that the Secretary determines is

				appropriate for the measurement of health care quality, including data

				necessary for the operation of the home health agency value-based purchasing

				program under section 1860E–6. Such data shall be submitted in a form and

				manner, and at a time, specified by the Secretary for purposes of this

				clause.</text>

										</subclause><subclause id="IDDC15E675D4124A2FA7B76970176A7F0B"><enum>(III)</enum><header>Public

				availability of data submitted</header><text>The Secretary shall establish

				procedures for making data submitted under subclause (II) available to the

				public in a clear and understandable form. Such procedures shall ensure that a

				home health agency has the opportunity to review the data that is to be made

				public with respect to the agency prior to such data being made

				public.</text>

										</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="ID69C15624D3B44EED966BEF00441ABFA1"><enum>(2)</enum><header>Reduction in

			 standard prospective payment amount for agencies that submit quality data in

			 order to fund program</header><text>Section 1895(b)(3) (42 U.S.C.

			 1395fff(b)(3)) is amended by adding at the end the following new

			 subparagraph:</text>

							<quoted-block id="IDBF8D6D5CB6C649DD9EFE578BBC643D6B" style="OLC">

								<subparagraph id="IDADE83440C74E4D79AC6C08382E9D92CC"><enum>(D)</enum><header>Reduction in

				order to fund value-based purchasing program</header>

									<clause id="ID592B4A0A042D41628C5779C333F4F2D5"><enum>(i)</enum><header>In

				general</header><text>For 2008 and each subsequent year, in the case of a home

				health agency that complies with the submission requirements under section

				1895(b)(3)(B)(v)(II) for the year, the standard prospective payment amount (or

				amounts) otherwise applicable under this paragraph for the year shall be

				reduced by the applicable percent.</text>

									</clause><clause id="ID45DBCA815836493F9FF07D9C7CC5CDF0"><enum>(ii)</enum><header>Applicable

				percent</header><text>For purposes of clause (i), the term <term>applicable

				percent</term> means—</text>

										<subclause id="ID639996CC269E492F9FA0CD3FFCBF6D40"><enum>(I)</enum><text>for 2008, 1.0

				percent;</text>

										</subclause><subclause id="ID491A891722A7474F8E0D1C2B0C52821E"><enum>(II)</enum><text>for 2009, 1.25

				percent;</text>

										</subclause><subclause id="IDDBABDB225B284913865449512D2C0B2C"><enum>(III)</enum><text>for 2010, 1.5

				percent;</text>

										</subclause><subclause id="IDBF4AD3CBB0ED46759C3855FE3A3AB0B7"><enum>(IV)</enum><text>for 2011, 1.75

				percent; and</text>

										</subclause><subclause id="ID87532CBB9C0A469794BA61CC7FCC7B83"><enum>(V)</enum><text>for 2012 and each

				subsequent year, 2.0

				percent.</text>

										</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></subsection><subsection id="ID2C15FAC5A18C4BEB8A4B29E17C3968ED"><enum>(g)</enum><header>Skilled Nursing

			 Facilities</header>

						<paragraph id="ID3D7D16FF7648403DBBCC3CF53637931B"><enum>(1)</enum><header>Requirement for

			 skilled nursing facilities to report functional capacity of medicare residents

			 upon admission and discharge</header><text>Section 1819(b) (42 U.S.C.

			 1395i–3(b)) is amended by adding at the end the following new paragraph:</text>

							<quoted-block id="ID876B65B9802A494E8F5B9593858DA4CF" style="OLC">

								<paragraph id="ID767FF550C1E349B8BD3330EC56DF0B46"><enum>(9)</enum><header>Reporting

				functional capacity at admission and discharge</header>

									<subparagraph id="ID4C4AEF8FFA864D118F7C9B15853AD810"><enum>(A)</enum><header>In

				general</header><text>On and after October 1, 2006, a skilled nursing facility

				must submit a report to the Secretary on the functional capacity of each

				resident who is entitled to benefits under this part at the time of—</text>

										<clause id="IDC5367713AB9F465F8196EC92D364A590"><enum>(i)</enum><text>the admission of

				such resident; and</text>

										</clause><clause id="IDF70B9649A7EF417789B5499FCB6289B6"><enum>(ii)</enum><text>the discharge of

				such resident.</text>

										</clause></subparagraph><subparagraph id="ID36369DCA49284961A57DB72B9852124A"><enum>(B)</enum><header>Timeframe</header><text>A

				report required under subparagraph (A) shall be submitted within 10 days of the

				admission or discharge, as the case may

				be.</text>

									</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph><paragraph id="ID9B5262D502BC45668118D90EDA00F1A9"><enum>(2)</enum><header>Voluntary

			 submission of skilled nursing facility quality data</header><text>Section

			 1888(e)(4)(E) (42 U.S.C. 1395yy(e)(4)(E)) is amended—</text>

							<subparagraph id="ID6AC1C7E16B434D688D61490AC24B3D7D"><enum>(A)</enum><text>in clause

			 (ii)(IV), by inserting <quote>subject to clause (iii),</quote> after

			 <quote>subsequent fiscal year,</quote>; and</text>

							</subparagraph><subparagraph id="ID8F0DF38FFFC1476ABAFD06BC6D16CFEE"><enum>(B)</enum><text>by adding at the

			 end the following new clause:</text>

								<quoted-block id="ID0B3F500C39A44B2883EBABEF7D2997F8" style="OLC">

									<clause id="IDC6EF47FC7E2B4A9598D177ECCD80D0A6"><enum>(iii)</enum><header>Adjustment if

				quality data not submitted</header>

										<subclause id="IDB1936C9E476F471DBFA889890EF1563E"><enum>(I)</enum><header>Adjustment</header><text>For

				purposes of clause (ii)(IV), for fiscal year 2009 and each subsequent fiscal

				year, in the case of a skilled nursing facility that does not submit data in

				accordance with subclause (II) with respect to such a fiscal year, the skilled

				nursing facility market basket percentage change applicable under such clause

				for such fiscal year shall be reduced by 2 percentage points. Such reduction

				shall apply only with respect to the fiscal year involved, and the Secretary

				shall not take into account such reduction in computing the Federal per diem

				rate under this section for a subsequent fiscal year.</text>

										</subclause><subclause id="ID435F3CB9C5E7473B9399E54165E678A3"><enum>(II)</enum><header>Submission of

				quality data</header><text>For fiscal year 2008 and each subsequent fiscal

				year, each skilled nursing facility shall submit to the Secretary such data

				that the Secretary determines, after conducting a study in consultation with

				the entities described in subsections (c)(1), (c)(2), and (d) of section

				1860E–1, is appropriate for the measurement of health outcomes and other

				indices of quality. Such data shall be submitted in a form and manner, and at a

				time, specified by the Secretary for purposes of this clause.</text>

										</subclause><subclause id="IDCDC0AD7822C44D5E9CDC556BF7654711"><enum>(III)</enum><header>Public

				availability of data submitted</header><text>The Secretary shall establish

				procedures for making data submitted under subclause (II) available to the

				public in a clear and understandable form. Such procedures shall ensure that a

				facility has the opportunity to review the data that is to be made public with

				respect to the facility prior to such data being made

				public.</text>

										</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph></subsection><subsection id="IDF345DA9281554301A66A2F0B766CE713"><enum>(h)</enum><header>Conforming

			 References to Previous Part

			 <enum-in-header>E</enum-in-header></header><text>Any reference in law (in

			 effect before the date of the enactment of this Act) to part E of title XVIII

			 of the <act-name parsable-cite="SSA">Social Security Act</act-name> is deemed a

			 reference to part F of such title (as in effect after such date).</text>

					</subsection></section><section id="ID3ED8CEC93B9141EE81FC30A63EF52C08"><enum>6111.</enum><header>Phase-out of

			 risk adjustment budget neutrality in determining the amount of payments to

			 Medicare Advantage organizations</header>

					<subsection id="ID0855AEE7EC064524984BC01C5759CBB3"><enum>(a)</enum><header>In

			 General</header><text>Section 1853 (42 U.S.C. 1395w–23) is amended—</text>

						<paragraph id="ID9D4A00D0C408412A94B28DB041075F53"><enum>(1)</enum><text>in subsection

			 (j)(1)—</text>

							<subparagraph id="ID31F753AA45A340C5AC9A72F44EF7D84D"><enum>(A)</enum><text>in subparagraph

			 (A)—</text>

								<clause id="IDC5AAC1706ABF439A8DE0155196A84153"><enum>(i)</enum><text>by

			 inserting <quote>(or, beginning with 2007, <fraction>1/12</fraction> of the

			 applicable amount determined under subsection (k)(1))</quote> after

			 <quote>1853(c)(1)</quote>; and</text>

								</clause><clause id="IDEB4071BAF28A4FADAE2DF08D4C7BFBDF"><enum>(ii)</enum><text>by

			 inserting <quote>(for years before 2007)</quote> after <quote>adjusted as

			 appropriate</quote>;</text>

								</clause></subparagraph><subparagraph id="ID16FF81395402475A9E0F2B6095A568DF"><enum>(B)</enum><text>in subparagraph

			 (B), by inserting <quote>(for years before 2007)</quote> after <quote>adjusted

			 as appropriate</quote>; and</text>

							</subparagraph></paragraph><paragraph id="ID4174F362568B4AB1B358BF669CD47C74"><enum>(2)</enum><text>by adding at the

			 end the following new subsection:</text>

							<quoted-block id="ID17C871E023FD492FAC579EB67B530E45" style="OLC">

								<subsection id="ID6695F45347BD482698D2C053B6510D64"><enum>(k)</enum><header>Determination

				of Applicable Amount for Purposes of Calculating the Benchmark Amounts</header>

									<paragraph id="ID68E33D2750D449F582A88C3960761B9D"><enum>(1)</enum><header>Applicable

				amount defined</header><text>For purposes of subsection (j), subject to

				paragraph (2), the term <term>applicable amount</term> means for an

				area—</text>

										<subparagraph id="ID25E29BB7ADBE454AAB3514A5B36FC5BA"><enum>(A)</enum><text>for 2007—</text>

											<clause id="ID80EE8BCB1C1249AF9C2155733346A2D9"><enum>(i)</enum><text>if such year is

				not specified under subsection (c)(1)(D)(ii), an amount equal to the amount

				specified in subsection (c)(1)(C) for the area for 2006—</text>

												<subclause id="IDE62B862878E44980AD6436E7E9A0CC43"><enum>(I)</enum><text>first adjusted by

				the rescaling factor for 2006 for the area (as made available by the Secretary

				in the announcement of the rates on April 4, 2005, under subsection (b)(1), but

				excluding any national adjustment factors for coding intensity and risk

				adjustment budget neutrality that were included in such factor); and</text>

												</subclause><subclause id="IDED7B074ED9C14EA8BAEBDB8081FB154B"><enum>(II)</enum><text>then increased

				by the national per capita MA growth percentage, described in subsection (c)(6)

				for that succeeding year, but not taking into account any adjustment under

				subparagraph (C) of such subsection for a year before 2004;</text>

												</subclause></clause><clause id="ID28EF5D1208934187ADFC571F1A6F616E"><enum>(ii)</enum><text>if such year is

				specified under subsection (c)(1)(D)(ii), an amount equal to the greater

				of—</text>

												<subclause id="ID65D76778E4B54C878EF7F25123EB652D"><enum>(I)</enum><text>the amount

				determined under clause (i) for the area for the year; or</text>

												</subclause><subclause id="IDC1A61AF7166841BEAFBBEB41E9FF79E9"><enum>(II)</enum><text>the amount

				specified in subsection (c)(1)(D) for the area for the year; and</text>

												</subclause></clause></subparagraph><subparagraph id="ID4EF289D5197A49F9932B1E125CC09F50"><enum>(B)</enum><text>for a subsequent

				year—</text>

											<clause id="IDC0BBCDAE6D804FE38E84B404DB37A373"><enum>(i)</enum><text>if such year is

				not specified under subsection (c)(1)(D)(ii), an amount equal to the amount

				determined under this paragraph for the area for the previous year, increased

				by the national per capita MA growth percentage, described in subsection (c)(6)

				for that succeeding year, but not taking into account any adjustment under

				subparagraph (C) of such subsection for a year before 2004; and</text>

											</clause><clause id="IDA8BDAE06D79D4C9EAEB4AC9A2FCCD2C4"><enum>(ii)</enum><text>if such year is

				specified under subsection (c)(1)(D)(ii), an amount equal to the greater

				of—</text>

												<subclause id="ID05214073064147D293AB8E1C3F41B679"><enum>(I)</enum><text>the amount

				determined under clause (i) for the area for the year; or</text>

												</subclause><subclause id="ID297FD93679784430A3E0DE4CBB782137"><enum>(II)</enum><text>the amount

				specified in subsection (c)(1)(D) for the area for the year.</text>

												</subclause></clause></subparagraph></paragraph><paragraph id="ID8DC541AFD45E4D8888107A9D6D621B94"><enum>(2)</enum><header>Adjustment</header>

										<subparagraph id="IDC163671201B543C6A5A3BDF3D6D7B73E"><enum>(A)</enum><header>In

				general</header><text>Except as provided in subparagraph (D), in the case of

				2007 through 2010, the applicable amount determined under paragraph (1) shall

				be increased by a factor equal to 1 plus the product of—</text>

											<clause id="IDDD83082D9ED54BD995E44B202A369003"><enum>(i)</enum><text>the percent

				determined under subparagraph (B) for the year; and</text>

											</clause><clause id="ID1C532B5FB9F3455B9797AC2DAB9371D8"><enum>(ii)</enum><text>the applicable

				percent for the year under subparagraph (C).</text>

											</clause></subparagraph><subparagraph id="IDB0075B7DB33649DB95F0A0D75D0EC521"><enum>(B)</enum><header>Percent

				determined</header>

											<clause id="IDC0F433C68D424651950FDC5090CE5271"><enum>(i)</enum><header>In

				general</header><text>For purposes of subparagraph (A)(i), subject to clause

				(ii), the percent determined under this subparagraph for a year is a percent

				equal to a fraction—</text>

												<subclause id="IDBF7826B3B5B944BEB603056C9CBFCC50"><enum>(I)</enum><text>the numerator of

				which is an amount equal to—</text>

													<item id="IDE6BE85BA9B83461088C78B1A9CB488A4"><enum>(aa)</enum><text>the Secretary’s

				estimate of the total payments that would have been made under this part in the

				year if all the monthly payment amounts for all MA plans were equal to

				<fraction>1/12</fraction> of the annual MA capitation rate under subsection

				(c)(1) for the area and year; minus</text>

													</item><item id="ID5EE0CD44AA594195813DB1969F9CEF48"><enum>(bb)</enum><text>the Secretary’s

				estimate of the total payments that would have been made under this part in the

				year if all the monthly payment amounts for all MA plans were equal to

				<fraction>1/12</fraction> of the MA area-specific non-drug monthly benchmark

				amount under subsection (j) for the area and year; and</text>

													</item></subclause><subclause id="ID3D3A201D79454B248208110A7DA79528"><enum>(II)</enum><text>the denominator

				of which is equal to the total amount estimated for the year under subclause

				(I)(bb).</text>

												</subclause></clause><clause id="ID0EF9D6EA11414BFBAFA835893FB4BAF9"><enum>(ii)</enum><header>Requirements</header><text>In

				estimating the amounts under clause (i), the Secretary—</text>

												<subclause id="IDC51DF2604BF241BBBC2B3F8BD6A9DAD8"><enum>(I)</enum><text>shall—</text>

													<item id="ID7EEEFCFE495746339AAF25666F1BFE3A"><enum>(aa)</enum><text>use a complete

				set of the most recent and representative Medicare Advantage risk scores under

				subsection (a)(3) that are available from the risk adjustment model announced

				for the year;</text>

													</item><item id="IDA4326D9D1A964E03AB314F110917008C"><enum>(bb)</enum><text>adjust the risk

				scores to reflect changes in treatment and coding practices in the

				fee-for-service sector;</text>

													</item><item id="ID3506A4E3904E4477B25A71630CF7157B"><enum>(cc)</enum><text>adjust the risk

				scores for differences in coding patterns between Medicare Advantage plans and

				providers under part A and B to the extent that the Secretary has identified

				such differences;</text>

													</item><item id="ID8846AC9F89D1498DB76473835CE29078"><enum>(dd)</enum><text>as

				necessary, adjust the risk scores for late data submitted by Medicare Advantage

				organizations;</text>

													</item><item id="ID37037961C07C495CA9620A7839387734"><enum>(ee)</enum><text>as

				necessary, adjust the risk scores for lagged cohorts; and</text>

													</item><item id="ID85B3E30EAFF14891B9F83DDF231986D9"><enum>(ff)</enum><text>as

				necessary, adjust the risk scores for changes in enrollment in Medicare

				Advantage plans during the year; and</text>

													</item></subclause><subclause id="ID76DEA82A5555413DB11468678A313298"><enum>(II)</enum><text>may take into

				account the estimated health risk of enrollees in preferred provider

				organization plans (including MA regional plans) for the year.</text>

												</subclause><continuation-text continuation-text-level="clause">In order to

				make the adjustment required under item (cc) and to ensure payment accuracy,

				the Secretary shall conduct an analysis of the differences described in such

				item. The Secretary shall complete such analysis by a date necessary to ensure

				that the results of such analysis are incorporated into the payment rates for a

				year not later than 2008. In conducting such analysis, the Secretary shall use

				data submitted with respect to 2004 and subsequent years, as available.</continuation-text></clause></subparagraph><subparagraph id="ID377BF7AA24B846E59EF0ED8098941061"><enum>(C)</enum><header>Applicable

				percent</header><text>For purposes of subparagraph (A)(ii), the term

				<term>applicable percent</term> means—</text>

											<clause id="ID3390DB90D9484516A18EC1C94184C3E8"><enum>(i)</enum><text>for 2007, 55

				percent;</text>

											</clause><clause id="ID80248FED368044BD809B632D085D7084"><enum>(ii)</enum><text>for 2008, 40

				percent;</text>

											</clause><clause id="IDCBBBBE2351B645CDBFED97AB505AF3C8"><enum>(iii)</enum><text>for 2009, 25

				percent; and</text>

											</clause><clause id="IDFBC1B24F51684F2E9767B25CC2B4C635"><enum>(iv)</enum><text>for 2010, 5

				percent.</text>

											</clause></subparagraph><subparagraph id="ID0539F379BE98494E84EA4AEBAEF36C18"><enum>(D)</enum><header>Termination of

				adjustment</header><text>The Secretary shall not make any adjustment under

				subparagraph (A) in a year if the amount estimated under subparagraph

				(B)(i)(I)(bb) for the year is equal to or greater than the amount estimated

				under subparagraph (B)(i)(I)(aa) for the year.</text>

										</subparagraph></paragraph><paragraph id="IDD31D8E28C7E8429B802B6E8B4CA25CF3"><enum>(3)</enum><header>No additional

				adjustments</header>

										<subparagraph id="IDE1C0A9D55F9C4938889DD174D830AF09"><enum>(A)</enum><header>In

				general</header><text>Except for the adjustment provided for in paragraph (2),

				the Secretary may not make any adjustment to the applicable amount determined

				in paragraph (1) for any year.</text>

										</subparagraph><subparagraph id="IDDC9DEABFD9F34F5EB9C383FACE99A00F"><enum>(B)</enum><header>Rule of

				construction</header><text>Nothing in this subsection shall be construed to

				limit the authority of the Secretary to risk adjust the amount under subsection

				(c)(1)(D) pursuant to clause (i) of such

				subsection.</text>

										</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></subsection><subsection id="IDA86A962C656D4684B36EEE934AC7A519"><enum>(b)</enum><header>Refinements to

			 Health Status Adjustment</header><text>Section 1853(a)(1)(C) (42 U.S.C.

			 1395w–23) is amended by inserting after the first sentence the following new

			 sentence: <quote>In applying such adjustment for health status to such payment

			 amounts, the Secretary shall ensure that such adjustment reflects changes in

			 treatment and coding practices in the fee-for-service sector and reflects

			 differences in coding patterns between Medicare Advantage plans and providers

			 under part A and B to the extent that the Secretary has identified such

			 differences.</quote>.</text>

					</subsection></section><section id="IDF27D57451345406E9A61B3E18C5E3FA8"><enum>6112.</enum><header>Elimination

			 of Medicare Advantage regional plan stabilization Fund</header>

					<subsection id="IDBB046AABAD814884B29334D258F8EEBA"><enum>(a)</enum><header>Elimination</header>

						<paragraph id="ID6AF09F3AED0440179823E8FC81812A75"><enum>(1)</enum><header>In

			 general</header><text>Subsection (e) of section 1858 (42 U.S.C. 1395w–27a) is

			 repealed.</text>

						</paragraph><paragraph id="IDEDF333EC57DE47BD90248C116BA15260"><enum>(2)</enum><header>Conforming

			 amendment</header><text>Section 1858(f)(1) (42 U.S.C. 1395w–27a(f)(1)) is

			 amended by striking <quote>subject to subsection (e),</quote>.</text>

						</paragraph><paragraph id="ID022784444B614E1A9ABED25600479901"><enum>(3)</enum><header>Effective

			 date</header><text>The amendments made by this subsection shall take effect as

			 if included in the enactment of section 221(c) of the Medicare Prescription

			 Drug, Improvement, and Modernization Act of 2003 (Public Law 108–173; 117 Stat.

			 2181).</text>

						</paragraph></subsection><subsection id="ID4B9FA55335964C8A9F8003ED97CB2263"><enum>(b)</enum><header>Timeframe for

			 Part <enum-in-header>A</enum-in-header> and B

			 Payments</header><text>Notwithstanding sections 1816(c) and 1842(c)(2) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> or any other

			 provision of law—</text>

						<paragraph id="ID2C63DD3F31424F7A81878664AE72B834"><enum>(1)</enum><text>any payment from

			 the Federal Hospital Insurance Trust Fund under section 1817 of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C. 1395i)

			 or from the Federal Supplementary Medical Insurance Trust Fund under section

			 1841 of such Act (42 U.S.C. 1395t) for claims submitted under part A or B of

			 title XVIII of such Act for items and services furnished under such part A or

			 B, respectively, that would otherwise be payable during the period beginning on

			 September 22, 2006, and ending on September 30, 2006, shall be paid on the

			 first business day of October 2006; and</text>

						</paragraph><paragraph id="ID403A1BD87CCB41A2A25658650607D998"><enum>(2)</enum><text>no interest or

			 late penalty shall be paid to an entity or individual for any delay in a

			 payment by reason of the application of paragraph (1).</text>

						</paragraph></subsection></section><section id="ID1756B7C2F9A043CD83A12C2C9B67C606"><enum>6113.</enum><header>Rural PACE

			 provider grant Program</header>

					<subsection id="ID0C185A36D9ED4120B751E1BBB82708A6"><enum>(a)</enum><header>Definitions</header><text>In

			 this section:</text>

						<paragraph id="ID1BD6C2B98CD346BB876ED9058212EE0D"><enum>(1)</enum><header>CMS</header><text>The

			 term <term>CMS</term> means the Centers for Medicare &amp; Medicaid

			 Services.</text>

						</paragraph><paragraph id="ID1F9EA77179F64D0AB9BB89668774508B"><enum>(2)</enum><header>Eligible

			 participant</header><text>The term <term>eligible participant</term> means a

			 PACE program eligible individual (as defined in sections 1894(a)(5) and

			 1934(a)(5) of the <act-name parsable-cite="SSA">Social Security Act</act-name>

			 (42 U.S.C. 1395eee(a)(5); 1396u–4(a)(5))).</text>

						</paragraph><paragraph id="IDE704337422584742AEC32D107229EF22"><enum>(3)</enum><header>PACE

			 program</header><text>The term <term>PACE program</term> has the meaning given

			 that term in sections 1894(a)(2) and 1934(a)(2) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1395eee(a)(2); 1396u–4(a)(2)).</text>

						</paragraph><paragraph id="ID744068CC66254EDF9574BFE30CEEE26E"><enum>(4)</enum><header>PACE

			 provider</header><text>The term <term>PACE provider</term> has the meaning

			 given that term in section 1894(a)(3) or 1934(a)(3) of the

			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.

			 1395eee(a)(3); 1396u–4(a)(3)).</text>

						</paragraph><paragraph id="ID57A48CC91E184AB085DBA2A83A389CA0"><enum>(5)</enum><header>Rural

			 area</header><text>The term <term>rural area</term> has the meaning given that

			 term in section 1886(d)(2)(D) of the <act-name parsable-cite="SSA">Social

			 Security Act</act-name> (42 U.S.C. 1395ww(d)(2)(D)).</text>

						</paragraph><paragraph id="ID04F054848F1B4C29B1E0F3863A7D0BE8"><enum>(6)</enum><header>Rural pace

			 pilot site</header><text>The term <term>rural PACE pilot site</term> means a

			 PACE provider that has been approved to provide services in a geographic

			 service area that is, in whole or in part, a rural area, and that has received

			 a site development grant under this section.</text>

						</paragraph><paragraph id="ID5F970B8C538F448D91B62217D22A91CB"><enum>(7)</enum><header>Secretary</header><text>The

			 term <term>Secretary</term> means the Secretary of Health and Human

			 Services.</text>

						</paragraph></subsection><subsection id="IDD99E7465B5E6428DAC89C4EE9EC69233"><enum>(b)</enum><header>Site

			 Development Grants and Technical Assistance Program</header>

						<paragraph id="ID8F529F8EFE5643B79A25B0463CEEFBB7"><enum>(1)</enum><header>Site

			 development grants</header>

							<subparagraph id="ID2F6F095C8F6B4D2683A8415596E72815"><enum>(A)</enum><header>In

			 general</header><text>The Secretary shall establish a process and criteria to

			 award site development grants to qualified PACE providers that have been

			 approved to serve a geographic service area that is, in whole or in part, a

			 rural area.</text>

							</subparagraph><subparagraph id="IDDD75139217064B5CA718D45CAD0D97AF"><enum>(B)</enum><header>Amount per

			 award</header><text>A site development grant awarded under subparagraph (A) to

			 any individual rural PACE pilot site shall not exceed $750,000.</text>

							</subparagraph><subparagraph id="IDFA4EE54093824961A3DB4E14A6892E69"><enum>(C)</enum><header>Number of

			 awards</header><text>Not more than 15 rural PACE pilot sites shall be awarded a

			 site development grant under subparagraph (A).</text>

							</subparagraph><subparagraph id="IDC0D76CF41CB34C148B633E5EC8CA2783"><enum>(D)</enum><header>Use of

			 funds</header><text>Funds made available under a site development grant awarded

			 under subparagraph (A) may be used for the following expenses only to the

			 extent such expenses are incurred in relation to establishing or delivering

			 PACE program services in a rural area:</text>

								<clause id="ID7D9567625DC24D858847022C9D51B24D"><enum>(i)</enum><text>Feasibility

			 analysis and planning.</text>

								</clause><clause id="ID1774388F4BDD4B68AC0BB68E94A58A5F"><enum>(ii)</enum><text>Interdisciplinary

			 team development.</text>

								</clause><clause id="ID3C2C98415F084A21849E736AC3D674D1"><enum>(iii)</enum><text>Development of

			 a provider network, including contract development.</text>

								</clause><clause id="ID8F8B30BD59DC43709ABF4D77CF9304D2"><enum>(iv)</enum><text>Development or

			 adaptation of claims processing systems.</text>

								</clause><clause id="ID2C13BE55A39C426587F6EED1324165F2"><enum>(v)</enum><text>Preparation of

			 special education and outreach efforts required for the PACE program.</text>

								</clause><clause id="IDD6B197B841D24C3F82E976773B19272E"><enum>(vi)</enum><text>Development of

			 expense reporting required for calculation of outlier payments or

			 reconciliation processes.</text>

								</clause><clause id="ID3622FB63CF6948A6B8DABB31C9FE8173"><enum>(vii)</enum><text>Development of

			 any special quality of care or patient satisfaction data collection

			 efforts.</text>

								</clause><clause id="ID2C5B3AB1B3904E04A46D12BD0A920833"><enum>(viii)</enum><text>Establishment

			 of a working capital fund to sustain fixed administrative, facility, or other

			 fixed costs until the provider reaches sufficient enrollment size.</text>

								</clause><clause id="ID2206A2D80BBA4F6BABB7BDDE89B007F3"><enum>(ix)</enum><text>Startup and

			 development costs incurred prior to the approval of the rural PACE pilot site’s

			 PACE provider application by CMS.</text>

								</clause><clause id="ID7E7BF5B61D364E25A5499869686ADA3A"><enum>(x)</enum><text>Any

			 other efforts determined by the rural PACE pilot site to be critical to its

			 successful startup, as approved by the Secretary.</text>

								</clause></subparagraph><subparagraph id="IDD4BBD69F0C6E450B9FDB97B5F5AC119D"><enum>(E)</enum><header>Appropriation</header>

								<clause id="ID3892372121A748AC817BFB4D14202B51"><enum>(i)</enum><header>In

			 general</header><text>Out of funds in the Treasury not otherwise appropriated,

			 there are appropriated to the Secretary to carry out this subsection for the

			 period of fiscal years 2006 through 2007, $7,500,000.</text>

								</clause><clause id="ID23063D0E250E446DBCA9DE5F249A9621"><enum>(ii)</enum><header>Availability</header><text>Funds

			 appropriated under clause (i) shall remain available for expenditure through

			 fiscal year 2010.</text>

								</clause></subparagraph></paragraph><paragraph id="IDD267F534327C42A0B4DDAC0D405D523F"><enum>(2)</enum><header>Technical

			 assistance program</header><text>The Secretary shall establish a technical

			 assistance program to provide—</text>

							<subparagraph id="ID033A9B5361374F59BE243E03F0513691"><enum>(A)</enum><text>outreach and

			 education to State agencies and provider organizations interested in

			 establishing PACE programs in rural areas; and</text>

							</subparagraph><subparagraph id="IDF9FC3BF2CC8A49DC939E386CB9D931E9"><enum>(B)</enum><text>technical

			 assistance necessary to support rural PACE pilot sites.</text>

							</subparagraph></paragraph></subsection><subsection id="ID00665B42E75142D4BC45C35C5F998DA4"><enum>(c)</enum><header>Cost Outlier

			 Protection for Rural Pace Pilot Sites</header>

						<paragraph id="ID2A9C7C15E5B34ADE8921C308B9823D1D"><enum>(1)</enum><header>Establishment

			 of fund for reimbursement of outlier costs</header>

							<subparagraph id="IDEF35664C819D46198558DDE404754FDB"><enum>(A)</enum><header>In

			 general</header><text>Notwithstanding any other provision of law, the Secretary

			 shall establish an outlier fund to reimburse rural PACE pilot sites for outlier

			 costs (as defined in subparagraph (B)) incurred for eligible participants who

			 reside in a rural area in accordance with the expense payment specified in

			 subparagraph (C).</text>

							</subparagraph><subparagraph id="ID70268255639241A79100D1DD30F67B6E"><enum>(B)</enum><header>Outlier costs

			 defined</header>

								<clause id="ID5B90087ACA5E49B78BC90E27292CB2D0"><enum>(i)</enum><header>In

			 general</header><text>In subparagraph (A), the term <term>outlier costs</term>

			 means the inpatient and related physician and ancillary costs in excess of

			 $50,000 incurred within a given 12-month period for an eligible participant who

			 resides in a rural area.</text>

								</clause><clause id="ID6744F735E7364CFF832AD856C5E55135"><enum>(ii)</enum><header>Inclusion in

			 only 1 period</header><text>Outlier costs may not be included in more than one

			 12-month period for purposes of calculating an outlier expense payment under

			 subparagraph (C).</text>

								</clause></subparagraph><subparagraph id="IDAE0D0A639CB84C56B22E702561B5AB09"><enum>(C)</enum><header>Outlier expense

			 payment</header>

								<clause id="IDAA420AA6E5734969B447F3553B20BA8A"><enum>(i)</enum><header>Payment for

			 outlier costs</header><text>Subject to clause (ii), in the case of a rural PACE

			 pilot site that has incurred outlier costs for an eligible participant, the

			 rural PACE pilot site shall receive an outlier expense payment equal to 80

			 percent of such costs.</text>

								</clause><clause id="ID45A40D4C07654EBCAD144471DF9C34B4"><enum>(ii)</enum><header>Limitations</header>

									<subclause id="IDC2A9C4A034B34292BDF8D54C87AADBEB"><enum>(I)</enum><header>Costs incurred

			 per eligible participant</header><text>The total amount of outlier expense

			 payments made under clause (i) to a rural PACE pilot site for outlier costs

			 incurred with respect to an eligible participant shall not exceed $100,000 for

			 the 12-month period used to calculate the payment.</text>

									</subclause><subclause id="ID4ADB2CCCBB964C0D8FFDF755A3C8EED1"><enum>(II)</enum><header>Costs incurred

			 per provider</header><text>No rural PACE pilot site may receive more than

			 $500,000 in total outlier expense payments in a 12-month period.</text>

									</subclause><subclause id="IDF95BBE3D2E9E4C139B119E255F306EBB"><enum>(III)</enum><header>Limitation of

			 outlier cost reimbursement period</header><text>A rural PACE pilot site shall

			 only receive outlier expense payments under this subparagraph with respect to

			 outlier costs incurred during the first 3 years of the site’s operation.</text>

									</subclause></clause></subparagraph><subparagraph id="IDCAD4312F48304F2BA3E0B545AD228AFF"><enum>(D)</enum><header>Requirement to

			 access risk reserves prior to payment</header><text>A rural PACE pilot site

			 shall access and exhaust any risk reserves held or arranged for the provider

			 (other than revenue or reserves maintained to satisfy the requirements of

			 section 460.80(c) of title 42, Code of Federal Regulations) and any working

			 capital established through a site development grant awarded under subsection

			 (b)(1), prior to receiving any payment from the outlier fund.</text>

							</subparagraph><subparagraph id="ID51BFDF73812D4CF7BE9DB3B75B18FAE0"><enum>(E)</enum><header>Appropriation</header>

								<clause id="IDE10E8D7ADBAB49C98C52ECA2B9D3450E"><enum>(i)</enum><header>In

			 general</header><text>Out of funds in the Treasury not otherwise appropriated,

			 there are appropriated to the Secretary to carry out this subsection for the

			 period of fiscal years 2006 through 2007, $10,000,000.</text>

								</clause><clause id="ID1A43DD638FCB4A09B16F1A21F0F9769C"><enum>(ii)</enum><header>Availability</header><text>Funds

			 appropriated under clause (i) shall remain available for expenditure through

			 fiscal year 2010.</text>

								</clause></subparagraph></paragraph></subsection><subsection id="ID19BAED9BEABF468AA3D4B3F20F752799"><enum>(d)</enum><header>Evaluation of

			 PACE Providers Serving Rural Service Areas</header><text>Not later than 60

			 months after the date of enactment of this Act, the Secretary shall submit a

			 report to Congress containing an evaluation of the experience of rural PACE

			 pilot sites.</text>

					</subsection><subsection id="ID4AD81BDC44874F2A973D9E257AA0A2BC"><enum>(e)</enum><header>Amounts in

			 Addition to Payments under <act-name parsable-cite="SSA">Social Security

			 Act</act-name></header><text>Any amounts paid under the authority of this

			 section to a PACE provider shall be in addition to payments made to the

			 provider under section 1894 or 1934 of the <act-name parsable-cite="SSA">Social

			 Security Act</act-name> (42 U.S.C. 1395eee; 1396u–4).</text>

					</subsection></section><section id="ID26C9E51E9C864ACCBAB991E670B4E75B"><enum>6114.</enum><header>Waiver of

			 Part <enum-in-header>B</enum-in-header> late enrollment penalty for certain

			 international volunteers</header>

					<subsection id="ID456094D6C0F548E2B5962B03149C5B61"><enum>(a)</enum><header>In

			 General</header>

						<paragraph id="IDD2E90F860EA740358EC76F1E28FE8207"><enum>(1)</enum><header>Waiver of

			 penalty</header><text>Section 1839(b)(42 U.S.C. 1395r(b)) is amended in the

			 second sentence by inserting the following before the period at the end:

			 <quote>or months for which the individual can demonstrate that the individual

			 was an individual described in section 1837(k)(3)</quote>.</text>

						</paragraph><paragraph id="ID9635920D49864098893BF00B9D2862CC"><enum>(2)</enum><header>Special

			 enrollment period</header>

							<subparagraph id="ID2C8B8518633944DC9681DF8BCDAB8FC7"><enum>(A)</enum><header>In

			 general</header><text>Section 1837 (42 U.S.C. 1395p) is amended by adding at

			 the end the following new subsection:</text>

								<quoted-block id="ID219BADC5CD214C558064B559B553FC22" style="OLC">

									<subsection id="ID579DF03363874FECA5A5CE909C46B9F4"><enum>(k)</enum><paragraph commented="no" display-inline="yes-display-inline" id="ID3966542C74A348419E20D35964C9E12C"><enum>(1)</enum><text>In the case of an

				individual who—</text>

											<subparagraph id="ID6A7C0219EA5F45D3B9B0F7FE1A46262C" indent="up1"><enum>(A)</enum><text>at the time the individual first

				satisfies paragraph (1) or (2) of section 1836, is described in paragraph (3),

				and has elected not to enroll (or to be deemed enrolled) under this section

				during the individual’s initial enrollment period; or</text>

											</subparagraph><subparagraph id="ID53AD7A74851D4BC488EDBBFC61C1531E" indent="up1"><enum>(B)</enum><text>has terminated enrollment under this

				section during a month in which the individual is described in paragraph

				(3),</text>

											</subparagraph></paragraph><continuation-text continuation-text-level="subsection">there

				shall be a special enrollment period described in paragraph (2).</continuation-text><paragraph id="IDD8E969440A384867AB7F6FF1B8272C57" indent="up1"><enum>(2)</enum><text>The special enrollment period

				referred to in paragraph (1) is the 6-month period beginning on the first day

				of the month which includes the date that the individual is no longer described

				in paragraph (3).</text>

										</paragraph><paragraph id="IDA0CBCE9E209341FE93D02ABA168E98BB" indent="up1"><enum>(3)</enum><text>For purposes of paragraph (1), an

				individual described in this paragraph is an individual that is serving as a

				volunteer outside of the United States through a program—</text>

											<subparagraph id="ID35C76D2668224F149BAEFC3A7CCE4CA6"><enum>(A)</enum><text>that covers at least a 12-month

				period; and</text>

											</subparagraph><subparagraph id="IDBE2F4FAF21594056B5383B884B061946"><enum>(B)</enum><text>that is sponsored by an organization

				described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt

				from taxation under section 501(a) of such

				Code.</text>

											</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="ID234B1A8820BF4E3393A5F7ADC93094B6"><enum>(B)</enum><header>Coverage

			 period</header><text>Section 1838 (42 U.S.C. 1395q) is amended by adding at the

			 end the following new subsection:</text>

								<quoted-block id="ID37FB643BBF5E41B9BC855FA3DD137717" style="OLC">

									<subsection id="IDE288C5FEF47E4A7393B09306BE5E6414"><enum>(f)</enum><text>Notwithstanding

				subsection (a), in the case of an individual who enrolls during a special

				enrollment period pursuant to section 1837(k), the coverage period shall begin

				on the first day of the month following the month in which the individual so

				enrolls.</text>

									</subsection><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph></subsection><subsection id="ID73B9BDB2D9B4480F870D50446A90579F"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendment made by subsection (a)(1) shall apply to

			 months beginning with January 2007 and the amendments made by subsection (a)(2)

			 shall take effect on January 1, 2007.</text>

					</subsection></section><section id="ID4A62EBEDE55146058A513521C7FDB510"><enum>6115.</enum><header>Delivery of

			 services at Federally qualified health Centers</header>

					<subsection id="IDCD35E224421C485F862582D382FEDEBC"><enum>(a)</enum><header>Coverage</header>

						<paragraph id="ID3321A4EBCCE748459487D12CE60F3981"><enum>(1)</enum><header>In

			 general</header><text>Section 1861(aa)(3) (42 U.S.C. 1395x(aa)(3)) is

			 amended—</text>

							<subparagraph id="ID894DAD65A47343B4B5590B59AF96CA9A"><enum>(A)</enum><text>in subparagraph

			 (A), by striking <quote>, and</quote> and inserting <quote>and services

			 described in subsections (qq) and (vv); and</quote>;</text>

							</subparagraph><subparagraph id="IDA8918ACD5075424E99D82EED9AFC8B94"><enum>(B)</enum><text>in subparagraph

			 (B), by striking <quote>sections 329, 330, and 340</quote> and inserting

			 <quote>section 330</quote>; and</text>

							</subparagraph><subparagraph id="IDE60AAC5220DB472D95E2C6D967AA19F5"><enum>(C)</enum><text>in the flush

			 matter at the end, by inserting <quote>by the center or by a health care

			 professional under contract with the center</quote> after <quote>outpatient of

			 a Federally qualified health center</quote>.</text>

							</subparagraph></paragraph><paragraph id="ID8B931DA69CA7434FB4C74C068DBE808B"><enum>(2)</enum><header>Consolidated

			 billing</header><text>The first sentence of section 1842(b)(6)(F) (42 U.S.C.

			 1395u(b)(6)(F)) is amended—</text>

							<subparagraph id="ID340EF90EB86C463EA90CDFAB6FE6EE93"><enum>(A)</enum><text>by striking

			 <quote>and (G)</quote> and inserting <quote>(G)</quote>; and</text>

							</subparagraph><subparagraph id="IDEF6F5A7FD0BE41E5B1AA669B92B1B56B"><enum>(B)</enum><text>by inserting

			 before the period at the end the following: <quote>, and (H) in the case of

			 services described in section 1861(aa)(3) that are furnished by a health care

			 professional under contract with a Federally qualified health center, payment

			 shall be made to the center</quote>.</text>

							</subparagraph></paragraph></subsection><subsection id="IDA8C4F29888804BA8AB14076AD4571FF2"><enum>(b)</enum><header>Technical

			 Corrections</header><text>Clauses (i) and (ii)(II) of section 1861(aa)(4)(A)

			 (42 U.S.C. 1395x(aa)(4)(A)) are each amended by striking <quote>(other than

			 subsection (h))</quote>.</text>

					</subsection><subsection id="ID74766454848646A39699E015E7D936E4"><enum>(c)</enum><header>Effective

			 Dates</header><text>The amendments made by this section shall apply to services

			 furnished on or after January 1, 2006.</text>

					</subsection></section><section id="IDE6EDB477712C4E719C04C9DA28D6C28A"><enum>6116.</enum><header>Technical

			 correction regarding purchase agreements for power-driven wheelchairs</header>

					<subsection id="ID2F48228CC3304AADB88273BC49683C99"><enum>(a)</enum><header>In

			 General</header><text>Section 1834(a)(7)(A) (42 U.S.C. 1395m(a)(7)(A)), as

			 amended by section 6109 of this Act, is amended—</text>

						<paragraph id="ID22C8F9B7F6094937ABEA5CA79A09871A"><enum>(1)</enum><text>in clause (i)(I),

			 by striking <quote>Payment</quote> and inserting <quote>Except as provided in

			 clause (iii), payment</quote>; and</text>

						</paragraph><paragraph id="IDCD00A731936B4E0B9CCBBE63701FC3DC"><enum>(2)</enum><text>by adding at the

			 end the following new clause:</text>

							<quoted-block id="ID3460981337A6499EB40C1D8EA4626B2C" style="OLC">

								<clause id="ID3C6FA83FE47445A9AC4FFA6B7C532C7A"><enum>(iii)</enum><header>Purchase

				agreement option for power-driven wheelchairs</header>

									<subclause id="IDBEE5B5E2E99B470D8B75FC2B6A3E3CD0"><enum>(I)</enum><header>In

				general</header><text>In the case of a power-driven wheelchair, at the time the

				supplier furnishes the item, the supplier shall offer the individual the option

				to purchase the item, and payment for such item shall be made on a lump-sum

				basis if the individual exercises such option.</text>

									</subclause><subclause id="ID924A70B1BF0A4FA6A84BEC2222901E54"><enum>(II)</enum><header>Maintenance

				and servicing</header><text>In the case of a power-driven wheelchair for which

				a purchase agreement has been entered into under subclause (I), maintenance and

				servicing payments shall, if the Secretary determines such payments are

				reasonable and necessary, be made (for parts and labor not covered by the

				supplier’s or manufacturer’s warranty, as determined by the Secretary to be

				appropriate), and such payments shall be in an amount determined to be

				appropriate by the

				Secretary.</text>

									</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></subsection><subsection id="ID72B21705A6564AF39C2DC5D9146AA8E3"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendments made by subsection (a) shall apply to items

			 furnished on or after October 1, 2006.</text>

					</subsection></section><section id="IDC31E22B26E9E486BB5B7EA9EBD6282FF"><enum>6117.</enum><header>Medicare

			 coverage of ultrasound screening for abdominal aortic aneurysms; national

			 educational and information campaign</header>

					<subsection id="IDDF9DF31F72494A4BA7F5C54D624B6F61"><enum>(a)</enum><header>In

			 General</header><text>Section 1861 (42 U.S.C. 1395x) is amended—</text>

						<paragraph id="ID517C5E0419ED4CC393F035ADB9DCBC95"><enum>(1)</enum><text>in subsection

			 (s)(2)—</text>

							<subparagraph id="ID1751B62585AF4A08AC6E0802D3E5A21B"><enum>(A)</enum><text>by striking

			 <quote>and</quote> at the end of subparagraph (Y);</text>

							</subparagraph><subparagraph id="IDF64194925FB444E9A1B4511219441CBC"><enum>(B)</enum><text>by adding

			 <quote>and</quote> at the end of subparagraph (Z); and</text>

							</subparagraph><subparagraph id="ID33C342367998490D8F3E58A22EB32F78"><enum>(C)</enum><text>by adding at the

			 end the following new subparagraph:</text>

								<quoted-block id="ID02F124B7B5AB4A68B2767A5B4E07A903" style="OLC">

									<subitem id="IDCB98F19D478B434BBB6AE028B83C51E8" indent="up5"><enum>(AA)</enum><text>ultrasound screening for abdominal

				aortic aneurysm (as defined in subsection (bbb)) for an individual—</text>

									</subitem><clause id="ID9CA56A20AB35445288BE734FCC80E0E8" indent="up1"><enum>(i)</enum><text>who receives a referral for such an

				ultrasound screening as a result of an initial preventive physical examination

				(as defined in section 1861(ww)(1));</text>

									</clause><clause id="ID949BFB2301184EB0AC2F4DD1B5CD4FC6" indent="up1"><enum>(ii)</enum><text>who has not been previously

				furnished such an ultrasound screening under this title; and</text>

									</clause><clause id="ID7D9999CCC1CB439D9DEC0F289DEBA811" indent="up1"><enum>(iii)</enum><text>who—</text>

										<subclause id="IDA8344024C5834B5891CE5C23173986D9"><enum>(I)</enum><text>has a family history of abdominal aortic

				aneurysm; or</text>

										</subclause><subclause id="ID887124B1200A4566B8E9AC268C2691EC"><enum>(II)</enum><text>manifests risk factors included in a

				beneficiary category (not including categories related to age) recommended for

				screening by the United States Preventive Services Task Force regarding

				abdominal aortic aneurysms;</text>

										</subclause></clause><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="ID17C22212F858418A8E164CB9E08E10B9"><enum>(2)</enum><text>by adding at the

			 end the following new subsection:</text>

							<quoted-block id="IDC855608ACB3549F49CD9C8673BBA5082" style="traditional">

								<subsection id="IDD5C25DCFEE4A4B4A9B5B8D3A922AFB9C"><enum>(bbb)</enum><header>Ultrasound

				Screening for Abdominal Aortic Aneurysm</header><text>The term <term>ultrasound

				screening for abdominal aortic aneurysm</term> means—</text>

									<paragraph id="ID15B37277950F4AEFA948A7CB66F34B5A"><enum>(1)</enum><text>a procedure using

				sound waves (or such other procedures using alternative technologies, of

				commensurate accuracy and cost, that the Secretary may specify) provided for

				the early detection of abdominal aortic aneurysm; and</text>

									</paragraph><paragraph id="ID73ED5D7F89B14310920EBA1F621455C6"><enum>(2)</enum><text>includes a

				physician’s interpretation of the results of the

				procedure.</text>

									</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></subsection><subsection id="IDFE5F8DD4D482466993B7061BEE0F4A4D"><enum>(b)</enum><header>Inclusion of

			 Ultrasound Screening for Abdominal Aortic Aneurysm in Screening Services for

			 Which Education, Counseling, and Referral Is Provided for Under Benefits for

			 Initial Preventive Physical Examination</header><text>Section 1861(ww)(2) (42

			 U.S.C. 1395x(ww)(2)) is amended by adding at the end the following new

			 subparagraph:</text>

						<quoted-block id="IDE326815DAFD6404998D6A18ADDC42307" style="OLC">

							<subparagraph id="ID1A78B4AE08E84B8CBB0F1129B6028503" indent="up1"><enum>(L)</enum><text>Ultrasound screening for abdominal

				aortic aneurysm as defined in section

				1861(bbb).</text>

							</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="ID74FAC795146546328C75BBAB861B511E"><enum>(c)</enum><header>Payment for

			 Ultrasound Screening for Abdominal Aortic Aneurysm</header><text>Section

			 1848(j)(3) (42 U.S.C. 1395w–4(j)(3)) is amended by inserting

			 <quote>(2)(AA),</quote> after <quote>(2)(W),</quote>.</text>

					</subsection><subsection id="IDF384E5A8719A44728637B5F2DEE8AB8E"><enum>(d)</enum><header>Frequency and

			 Quality Standards</header><text>Section 1862(a)(1) (42 U.S.C. 1395y(a)(1)) is

			 amended—</text>

						<paragraph id="ID967E5C407D014BD18887CED085CD8D26"><enum>(1)</enum><text>by striking

			 <quote>and</quote> at the end of subparagraph (L);</text>

						</paragraph><paragraph id="ID2C35E830C2AC465BB51FD0974421A1C8"><enum>(2)</enum><text>by striking the

			 semicolon at the end of subparagraph (M) and inserting <quote>, and</quote>;

			 and</text>

						</paragraph><paragraph id="ID80D1FE73BE314FF984B57FF5FBAC4B08"><enum>(3)</enum><text>by adding at the

			 end the following new subparagraph:</text>

							<quoted-block id="ID3D4FF56FDCD0498DBB466A34CA36AC8E" style="OLC">

								<subparagraph id="ID718EA658871A4EC3BE9C7F0358713ABA" indent="up1"><enum>(N)</enum><text>in the case of ultrasound screening

				for abdominal aortic aneurysm—</text>

									<clause id="ID86155EF3DD0643A5A031CD7DCF3CCF17"><enum>(i)</enum><text>which is performed more frequently

				than is provided for under section 1861(s)(2)(AA); or</text>

									</clause><clause id="IDFAB356E2F8AA48F5871D3423DE8168F4"><enum>(ii)</enum><text>which is performed by an

				individual or diagnostic laboratory that does not meet quality assurance

				standards that the Secretary, in consultation with national medical, vascular

				technologist and sonographer societies, shall establish, including with respect

				to individuals performing ultrasound screening for abdominal aortic aneurysm

				(other than physicians) and diagnostic laboratories, that the individual or

				laboratory is certified by the appropriate State licensing or certification

				agency or, in the case of a service performed in a State that does not license

				or certify such individuals or laboratories, by a national certification or

				accreditation organization recognized by the

				Secretary;</text>

									</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></subsection><subsection id="IDDE900FE9200C453DAE9E21023C20C809"><enum>(e)</enum><header>Non-Application

			 of Part <enum-in-header>B</enum-in-header> Deductible</header><text>Section

			 1833(b) (42 U.S.C. 1395l(b)) is amended in the first sentence—</text>

						<paragraph id="ID798E76672C5D4696A50B3D4016AFBD6A"><enum>(1)</enum><text>by striking

			 <quote>and (6)</quote> and inserting <quote>(6)</quote>; and</text>

						</paragraph><paragraph id="ID66595A7F542D47FE88489C37E7DC71B3"><enum>(2)</enum><text>by inserting

			 <quote>, and (7) such deductible shall not apply with respect to ultrasound

			 screening for abdominal aortic aneurysm (as defined in section

			 1861(bbb))</quote> before the period at the end.</text>

						</paragraph></subsection><subsection id="ID64F243166D4D43A78517B2D0B1C71068"><enum>(f)</enum><header>National

			 Educational and Information Campaign</header>

						<paragraph id="ID056AA16461634A9E854C5D9FD0EB88E0"><enum>(1)</enum><header>In

			 general</header><text>After consultation with national medical, vascular

			 technologist, and sonographer societies, the Secretary of Health and Human

			 Services shall carry out a national education and information campaign to

			 promote awareness among health care practitioners and the general public with

			 respect to the importance of early detection and treatment of abdominal aortic

			 aneurysms.</text>

						</paragraph><paragraph id="IDCFC7B3E56DAD4C3889F77157AEB3B84D"><enum>(2)</enum><header>Use of

			 funds</header><text>The Secretary may use amounts appropriated pursuant to this

			 subsection to make grants to national medical, vascular technologist, and

			 sonographer societies (in accordance with procedures and criteria specified by

			 the Secretary) to enable them to educate practitioners and providers about

			 matters relating to such aneurysms.</text>

						</paragraph><paragraph id="ID9D4950AD5F1D4ECFBB7877D9ED18A62A"><enum>(3)</enum><header>Authorization

			 of Appropriations</header><text>There is authorized to be appropriated for

			 fiscal year 2006 and each fiscal year thereafter such sums as may be necessary

			 to carry out this subsection.</text>

						</paragraph></subsection><subsection id="IDCE11EDB029B541B4BC44EC6B5029DBE2"><enum>(g)</enum><header>Effective

			 Date</header><text>The amendments made by this section shall apply to

			 ultrasound screenings for abdominal aortic aneurysm performed on or after

			 January 1, 2007.</text>

					</subsection></section><section id="ID09239F83E9524AE4B4B31E1A566B17BE"><enum>6118.</enum><header>Improving

			 patient access to, and utilization of, colorectal cancer screening under

			 Medicare</header>

					<subsection id="IDA31010E8F46D40409D4F3171F2C66E24"><enum>(a)</enum><header>Increase in

			 part <enum-in-header>B</enum-in-header> reimbursement for colorectal cancer

			 screening and diagnostic tests</header>

						<paragraph id="ID5A62E05AFD2545CE9EE958F0E6E33C31"><enum>(1)</enum><header>In

			 general</header><text>Section 1834(d) (42 U.S.C. 1395m(d)) is amended by adding

			 at the end the following new paragraph:</text>

							<quoted-block id="IDF1F7EBB3A6384DF09CD22134300124EC" style="OLC">

								<paragraph id="ID26B3358FD06944079E8CE10C887182A1"><enum>(4)</enum><header>Enhanced part

				<enum-in-header>B</enum-in-header> payment for colorectal cancer screening and

				diagnostic tests</header>

									<subparagraph id="ID0D21E72A2D084A4DACCDFAC6C71A5721"><enum>(A)</enum><header>Nonfacility

				rates</header><text>Notwithstanding paragraphs (2)(A) and (3)(A), the Secretary

				shall establish national minimum payment amounts for CPT codes 45378, 45380,

				and 45385, and HCPCS codes G0105 and GO121 for items and services furnished on

				or after January 1, 2007, which reflect a 5-percent increase above the relative

				value units in effect as the nonfacility rates for such codes on December 31,

				2006, with such revised payment level to apply to items and services performed

				in a nonfacility setting.</text>

									</subparagraph><subparagraph id="ID9F80C52814554A5C969FC8421B404A6A"><enum>(B)</enum><header>Facility

				rates</header><text>Notwithstanding paragraphs (2)(A) and (3)(A), the Secretary

				shall establish national minimum payment amounts for CPT codes 45378, 45380,

				and 45385, and HCPCS codes G0105 and GO121 for items and services furnished on

				or after January 1, 2007, which reflect a 5-percent increase above the relative

				value units in effect as the facility rates for such codes on December 31,

				2006, with such revised payment level to apply to items and services performed

				in a facility setting.</text>

									</subparagraph><subparagraph id="ID311B6A09C0AC49838EC25296A82EBD25"><enum>(C)</enum><header>Annual

				adjustments</header><text>In the case of items and services furnished on or

				after January 1, 2007, the payment rates described in subparagraphs (A) and (B)

				shall, subject to the minimum payment amounts established in such

				subparagraphs, be adjusted annually as provided in section

				1848.</text>

									</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph><paragraph id="IDECABAAE941544F11AA252F6FAB20DCB7"><enum>(2)</enum><header>No effect on

			 hopd payments</header><text>The Secretary shall not take into account the

			 provisions of section 1834(d)(4) of the <act-name parsable-cite="SSA">Social

			 Security Act</act-name>, as added by subsection (a), in determining the amount

			 of payment for any covered OPD service under the prospective payment system for

			 hospitals outpatient department services under section 1833(t) of such Act (42

			 U.S.C. 1395l(t)).</text>

						</paragraph></subsection><subsection id="IDE7ADE493934247E780D96A6E937B3297"><enum>(b)</enum><header>Medicare

			 Coverage of Office Visit or Consultation Prior to a Screening Colonoscopy or in

			 Conjunction With a Beneficiary’s Decision To Obtain Such a Screening</header>

						<paragraph id="ID8D25F17E5E0D464BBA2DB2D714806AB2"><enum>(1)</enum><header>Coverage</header><text>Section

			 1861(s)(2) (42 U.S.C. 1395x(s)(2)), as amended by section 6117, is

			 amended—</text>

							<subparagraph id="IDC840C37393E049FD96F5D44F0A730215"><enum>(A)</enum><text>in subparagraph

			 (Z), by striking <quote>and</quote> at the end;</text>

							</subparagraph><subparagraph id="ID6F61B46E202D474FA91380E6EE9FC7C2"><enum>(B)</enum><text>in subparagraph

			 (AA), by inserting <quote>and</quote> at the end; and</text>

							</subparagraph><subparagraph id="ID14B1233F033F4A74B64D7641215B73E6"><enum>(C)</enum><text>by adding at the

			 end the following new subparagraph:</text>

								<quoted-block id="ID1E11CE617AD24FBFB3C020E00E145DED" style="OLC">

									<subitem id="IDC5169B090F914BFC877954BAA5D88920" indent="up4"><enum>(BB)</enum><text>an outpatient office visit or

				consultation for the purpose of beneficiary education, assuring selection of

				the proper screening test, and securing information relating to the procedure

				and sedation of the beneficiary, prior to a colorectal cancer screening test

				consisting of a screening colonoscopy or in conjunction with the beneficiary’s

				decision to obtain such a screening, regardless of whether such screening is

				medically indicated with respect to the

				beneficiary;</text>

									</subitem><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="IDDE08DBD2FABB4695858465E6B49851F3"><enum>(2)</enum><header>Payment</header>

							<subparagraph id="ID50826F70D5D4405D9F6F87F334768484"><enum>(A)</enum><header>In

			 general</header><text>Section 1833(a)(1) (42 U.S.C. 1395l(a)(1)) is

			 amended—</text>

								<clause id="ID6E47BC060B6348A6901A4F4F761DB2AA"><enum>(i)</enum><text>by

			 striking <quote>and</quote> before <quote>(V)</quote>; and</text>

								</clause><clause id="IDBB6292C391D24E60A33FA056AD32FF23"><enum>(ii)</enum><text>by

			 inserting before the semicolon at the end the following: <quote>, and (W) with

			 respect to an outpatient office visit or consultation under section

			 1861(s)(2)(BB), the amounts paid shall be 80 percent of the lesser of the

			 actual charge or the amount established under section 1848</quote>.</text>

								</clause></subparagraph><subparagraph id="IDBB05D20ADB8D43ABB8FD9865BC3E287C"><enum>(B)</enum><header>Payment under

			 physician fee schedule</header><text>Section 1848(j)(3) (42 U.S.C.

			 1395w–4(j)(3)), as amended by section 6117, is amended by inserting

			 <quote>(2)(BB),</quote> after <quote>(2)(AA),</quote>.</text>

							</subparagraph><subparagraph id="ID209029AF791A4D498C1EFE790B2F0BFE"><enum>(C)</enum><header>Requirement for

			 establishment of payment amount under physician fee

			 schedule</header><text>Section 1834(d) (42 U.S.C. 1395m(d)), as amended by

			 subsection (a), is amended by adding at the end the following new

			 paragraph:</text>

								<quoted-block id="IDDFEB35DE6B064AE0AE4827EBE489AC97" style="OLC">

									<paragraph id="ID032C9482AC534C2D9F5579D942C95903"><enum>(5)</enum><header>Payment for

				outpatient office visit or consultation prior to screening

				colonoscopy</header><text>With respect to an outpatient office visit or

				consultation under section 1861(s)(2)(BB), payment under section 1848 shall be

				consistent with the payment amounts for CPT codes 99203 and

				99243.</text>

									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="ID2CFBB4A6709145F5B8A9120E84C53185"><enum>(3)</enum><header>Effective

			 date</header><text>The amendments made by this subsection shall apply to items

			 and services provided on or after January 1, 2007.</text>

						</paragraph></subsection><subsection id="IDB1FCC4A515B24315B98F5F5E4C8FE810"><enum>(c)</enum><header>Waiver of

			 Deductible for Colorectal Cancer Screening Tests</header>

						<paragraph id="ID5A06C13433194728A4520B14D7533004"><enum>(1)</enum><header>In

			 general</header><text>Section 1833(b) (42 U.S.C. 1395l(b)), as amended by

			 section 6117, is amended in the first sentence—</text>

							<subparagraph id="ID74907CCBA0534B83866E0884059CF0C5"><enum>(A)</enum><text>by striking

			 <quote>and</quote> before <quote>(7)</quote>; and</text>

							</subparagraph><subparagraph id="ID91F3426F6DC0487FB730A3865970C244"><enum>(B)</enum><text>by inserting

			 before the period at the end the following: <quote>, and (8) such deductible

			 shall not apply with respect to colorectal cancer screening tests (as described

			 in section 1861(pp)(1))</quote>.</text>

							</subparagraph></paragraph><paragraph id="ID447E9A5517784C46BF2E36DDC9E3EADE"><enum>(2)</enum><header>Conforming

			 amendments</header><text>Paragraphs (2)(C)(ii) and (3)(C)(ii) of section

			 1834(d) (42 U.S.C. 1395m(d)) are each amended—</text>

							<subparagraph id="ID6248832FBBEB4F2ABCAE8484AA03AE8D"><enum>(A)</enum><text>by striking

			 <quote><header-in-text>deductible and</header-in-text></quote> in the heading;

			 and</text>

							</subparagraph><subparagraph id="IDBEF95E4681C24B849AC38B1BC1E568CF"><enum>(B)</enum><text>in subclause (I),

			 by striking <quote>deductible or</quote> each place it appears.</text>

							</subparagraph></paragraph><paragraph id="ID6CD018A588384C9CAB63D31DEB8219B1"><enum>(3)</enum><header>Effective

			 date</header><text>The amendments made by this subsection shall apply to items

			 and services furnished on or after January 1, 2007.</text>

						</paragraph></subsection></section><section id="ID74B37E3167244224900B86BF455371A8"><enum>6119.</enum><header>Coverage of

			 marriage and family therapist services and mental health counselor services

			 under Part <enum-in-header>B</enum-in-header> of the Medicare Program</header>

					<subsection id="ID20E73456CF61494F9936C4DAACA30229"><enum>(a)</enum><header>Coverage of

			 Services</header>

						<paragraph id="ID93CE6C8030474670A8910E7C9AECA8B3"><enum>(1)</enum><header>In

			 general</header><text>Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)), as amended by

			 section 6118(b), is amended—</text>

							<subparagraph id="IDE22401634A274E49A97ED7BCD7ADF764"><enum>(A)</enum><text>in subparagraph

			 (AA), by striking <quote>and</quote> after the semicolon at the end;</text>

							</subparagraph><subparagraph id="ID29A36AAFC280463085743280AA8714D8"><enum>(B)</enum><text>in subparagraph

			 (BB), by inserting <quote>and</quote> after the semicolon at the end;

			 and</text>

							</subparagraph><subparagraph id="IDE8F2A3FC08D24351A7458A71C39FCBD3"><enum>(C)</enum><text>by adding at the

			 end the following new subparagraph:</text>

								<quoted-block id="IDB9784E4CC82549B7AD521CC966CCDA4E" style="OLC">

									<subclause id="ID9C6B16DEE77F4C0B8697AA9A5AB59886" indent="up3"><enum>(CC)</enum><text>marriage and family therapist

				services (as defined in subsection (ccc)(1)) and mental health counselor

				services (as defined in subsection

				(ccc)(3));</text>

									</subclause><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="ID36727D3E0FF243B9B7BD0E39103EF168"><enum>(2)</enum><header>Definitions</header><text>Section

			 1861 (42 U.S.C. 1395x), as amended by section 6117, is amended by adding at the

			 end the following new subsection:</text>

							<quoted-block id="IDE246FBA9FB034068A3DA0D9A176C1C78" style="traditional">

								<subsection id="IDA13BC1403AFF49349D3F8DC20A76CE54"><enum>(ccc)</enum><header>Marriage and

				Family Therapist Services; Marriage and Family Therapist; Mental Health

				Counselor Services; Mental Health Counselor</header><paragraph commented="no" display-inline="yes-display-inline" id="IDA9FC289F4601464A9F64139EEE702790"><enum>(1)</enum><text>The term <term>marriage

				and family therapist services</term> means services performed by a marriage and

				family therapist (as defined in paragraph (2)) for the diagnosis and treatment

				of mental illnesses, which the marriage and family therapist is legally

				authorized to perform under State law (or the State regulatory mechanism

				provided by State law) of the State in which such services are performed, as

				would otherwise be covered if furnished by a physician or as an incident to a

				physician’s professional service, but only if no facility or other provider

				charges or is paid any amounts with respect to the furnishing of such

				services.</text>

									</paragraph><paragraph id="ID675125362B944A71AE27414FF46FCB34" indent="up1"><enum>(2)</enum><text>The term <term>marriage and family

				therapist</term> means an individual who—</text>

										<subparagraph id="IDEA40A06300E64146B8C2B7AE47C8B31E"><enum>(A)</enum><text>possesses a master’s or doctoral

				degree which qualifies for licensure or certification as a marriage and family

				therapist pursuant to State law;</text>

										</subparagraph><subparagraph id="IDD49674D45C7849748BB197723595B081"><enum>(B)</enum><text>after obtaining such degree has

				performed at least 2 years of clinical supervised experience in marriage and

				family therapy; and</text>

										</subparagraph><subparagraph id="ID2C907165FA144182933975BDC50ADC0A"><enum>(C)</enum><text>in the case of an individual

				performing services in a State that provides for licensure or certification of

				marriage and family therapists, is licensed or certified as a marriage and

				family therapist in such State.</text>

										</subparagraph></paragraph><paragraph id="ID1DD03872ED214FBF86BF01686AA16124" indent="up1"><enum>(3)</enum><text>The term <term>mental health

				counselor services</term> means services performed by a mental health counselor

				(as defined in paragraph (4)) for the diagnosis and treatment of mental

				illnesses which the mental health counselor is legally authorized to perform

				under State law (or the State regulatory mechanism provided by the State law)

				of the State in which such services are performed, as would otherwise be

				covered if furnished by a physician or as incident to a physician’s

				professional service, but only if no facility or other provider charges or is

				paid any amounts with respect to the furnishing of such services.</text>

									</paragraph><paragraph id="ID3768BA36CE364CC28C23EC5752E2F51D" indent="up1"><enum>(4)</enum><text>The term <term>mental health

				counselor</term> means an individual who—</text>

										<subparagraph id="ID24596AB38BBC4240B9C4530C52D8666B"><enum>(A)</enum><text>possesses a master’s or doctor’s

				degree in mental health counseling or a related field;</text>

										</subparagraph><subparagraph id="IDAD087E5699444568B963128E02D6E5E9"><enum>(B)</enum><text>after obtaining such a degree has

				performed at least 2 years of supervised mental health counselor practice;

				and</text>

										</subparagraph><subparagraph id="ID8BF297889EF7454190522589197A7C71"><enum>(C)</enum><text>in the case of an individual

				performing services in a State that provides for licensure or certification of

				mental health counselors or professional counselors, is licensed or certified

				as a mental health counselor or professional counselor in such

				State.</text>

										</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph><paragraph id="IDE69C6FFC9F4842BE919B1BD72A80A361"><enum>(3)</enum><header>Provision for

			 payment under part <enum-in-header>B</enum-in-header></header><text>Section

			 1832(a)(2)(B) (42 U.S.C. 1395k(a)(2)(B)) is amended by adding at the end the

			 following new clause:</text>

							<quoted-block id="ID276819BDFC9845329FE0AE27270009BE" style="OLC">

								<clause id="IDAAB9814236314F2E995AD547D979A187"><enum>(v)</enum><text>marriage and

				family therapist services and mental health counselor

				services;</text>

								</clause><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph><paragraph id="ID8E7B754D869647D98FEC1E57C8714F59"><enum>(4)</enum><header>Amount of

			 payment</header><text>Section 1833(a)(1) (42 U.S.C. 1395l(a)(1)), as amended by

			 section 6118, is amended—</text>

							<subparagraph id="ID6D9CEBCCE21A4478B8F132B0A0B2B7B5"><enum>(A)</enum><text>by striking

			 <quote>and (W)</quote> and inserting <quote>(W)</quote>; and</text>

							</subparagraph><subparagraph id="ID3653C57394A64868AB2D3793862727CC"><enum>(B)</enum><text>by inserting

			 before the semicolon at the end the following: <quote>, and (X) with respect to

			 marriage and family therapist services and mental health counselor services

			 under section 1861(s)(2)(CC), the amounts paid shall be 80 percent of the

			 lesser of the actual charge for the services or 75 percent of the amount

			 determined for payment of a psychologist under subparagraph (L)</quote>.</text>

							</subparagraph></paragraph><paragraph id="ID93DB1EBC209E4D81ABF1567042547A70"><enum>(5)</enum><header>Exclusion of

			 marriage and family therapist services and mental health counselor services

			 from skilled nursing facility prospective payment system</header><text>Section

			 1888(e)(2)(A)(ii) (42 U.S.C. 1395yy(e)(2)(A)(ii)) is amended by inserting

			 <quote>marriage and family therapist services (as defined in section

			 1861(ccc)(1)), mental health counselor services (as defined in section

			 1861(ccc)(3)),</quote> after <quote>qualified psychologist

			 services,</quote>.</text>

						</paragraph><paragraph id="ID7B8CD97F34A5484CA65739B827F0A53D"><enum>(6)</enum><header>Inclusion of

			 marriage and family therapists and mental health counselors as practitioners

			 for assignment of claims</header><text>Section 1842(b)(18)(C) (42 U.S.C.

			 1395u(b)(18)(C)) is amended by adding at the end the following new

			 clauses:</text>

							<quoted-block id="IDF8425C9202D34946AB9666BFA3DD7878" style="OLC">

								<clause id="ID5313B77D0D134D18B4A7662E5868921A" indent="up2"><enum>(vii)</enum><text>A marriage and family therapist (as

				defined in section 1861(ccc)(2)).</text>

								</clause><clause id="IDF714B007759C44C59724890F333ED17E" indent="up2"><enum>(viii)</enum><text>A mental health counselor (as

				defined in section

				1861(ccc)(4)).</text>

								</clause><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></subsection><subsection id="ID6705B8D14FC248F5848F69175AB611D0"><enum>(b)</enum><header>Coverage of

			 Certain Mental Health Services Provided in Certain Settings</header>

						<paragraph id="IDDA147BA0AE0C4F1683A16F05381AE3FB"><enum>(1)</enum><header>Rural health

			 clinics and federally qualified health centers</header><text>Section

			 1861(aa)(1)(B) (42 U.S.C. 1395x(aa)(1)(B)) is amended by striking <quote>or by

			 a clinical social worker (as defined in subsection (hh)(1)),</quote> and

			 inserting <quote>, by a clinical social worker (as defined in subsection

			 (hh)(1)), by a marriage and family therapist (as defined in subsection

			 (ccc)(2)), or by a mental health counselor (as defined in subsection

			 (ccc)(4)),</quote>.</text>

						</paragraph><paragraph id="ID79594E645DA74D14857509F8AA48B485"><enum>(2)</enum><header>Hospice

			 programs</header><text>Section 1861(dd)(2)(B)(i)(III) (42 U.S.C.

			 1395x(dd)(2)(B)(i)(III)) is amended by inserting <quote>or one marriage and

			 family therapist (as defined in subsection (bbb)(2))</quote> after

			 <quote>social worker</quote>.</text>

						</paragraph></subsection><subsection id="ID001CADC6C3264445A4AF88C08D3ADAE4"><enum>(c)</enum><header>Effective

			 Date</header><text>The amendments made by this section shall apply with respect

			 to services furnished on or after January 1, 2007.</text>

					</subsection></section><section id="ID232F7AACE3404C54974D90643B6D5A06"><enum>6120.</enum><header>Quality

			 measurement systems amendments</header><text display-inline="no-display-inline">Section 1860E–1 , as added by section

			 6110(a)(2), is amended—</text>

					<paragraph id="ID3F8A13C9D6AB47C3A71FCF5288F80E48"><enum>(1)</enum><text>in subsection

			 (b)(1)—</text>

						<subparagraph id="ID3B819CC1F7E84F1C9BF0EBE449657340"><enum>(A)</enum><text>in subparagraph

			 (B)—</text>

							<clause id="IDD7213189430240649CC89E758DD58D72"><enum>(i)</enum><text>in

			 clause (vi), by striking <quote>and</quote> at the end;</text>

							</clause><clause id="ID1E6A8E24B816406F85AEBC4FE4A827A2"><enum>(ii)</enum><text>in

			 clause (vii), by striking the period at the end and inserting <quote>;

			 and</quote>; and</text>

							</clause><clause id="ID03FA022AA25244709FC9B3233DECA367"><enum>(iii)</enum><text>by adding at

			 the end the following new clause:</text>

								<quoted-block id="ID89D8C5834AD6483F89E43BCB6637FFFA" style="OLC">

									<clause id="IDA022F7EE5DF346108F1637D64884BBA3"><enum>(viii)</enum><text>measures that

				address conditions where there is the greatest disparity of health care

				provided and health outcomes between majority and minority

				groups.</text>

									</clause><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</clause></subparagraph><subparagraph id="IDAA2DA31D45F64A20853A6FD3AF25D764"><enum>(B)</enum><text>in subparagraph

			 (E)—</text>

							<clause id="ID1B8D08229600412590C65DFFC842E2B6"><enum>(i)</enum><text>in

			 clause (v), by striking <quote>and</quote> at the end;</text>

							</clause><clause id="IDCD3CE7B8D5A7448F8140CC336D9A9053"><enum>(ii)</enum><text>by

			 redesignating clause (vi) as clause (vii); and</text>

							</clause><clause id="ID0B1F6BAE8BD347498ED2830E8D4F2652"><enum>(iii)</enum><text>by inserting

			 after clause (v) the following new clause:</text>

								<quoted-block id="ID13B0E95B36CE46978A010A73B56AB8A6" style="OLC">

									<clause id="IDB2543E2639C34CDE8F1A7960BD32D944"><enum>(vi)</enum><text>allows quality

				measures that are reported to be stratified according to patient group

				characteristics,

				and</text>

									</clause><after-quoted-block>;</after-quoted-block></quoted-block>

							</clause></subparagraph></paragraph><paragraph id="IDED014A7B3D28428CA3855C207078856E"><enum>(2)</enum><text>in subsection

			 (c)(4)—</text>

						<subparagraph id="ID39250E60C51A4AC68A916E9AC27A7A48"><enum>(A)</enum><text>in subparagraph

			 (B), by striking <quote>and</quote> at the end;</text>

						</subparagraph><subparagraph id="IDA347018CCD224AF88BD979EF74E580A8"><enum>(B)</enum><text>in subparagraph

			 (C), by striking the period at the end and inserting <quote>; and</quote>;

			 and</text>

						</subparagraph><subparagraph id="IDB53CD543095A4A1089CC117DDDBE5B69"><enum>(C)</enum><text>by adding at the

			 end the following new subparagraph:</text>

							<quoted-block id="ID9852501205474E5791EBD6A8A01EC939" style="OLC">

								<subparagraph id="ID4D170AED857547E4A646D18C5DE89379"><enum>(D)</enum><text>The report

				commissioned by Congress from the Institute of Medicine of the National Academy

				of Sciences, titled <quote>Unequal Treatment: Confronting Racial and Ethnic

				Disparities in Health Care</quote>.</text>

								</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

						</subparagraph></paragraph><paragraph id="IDB14245A071254ADD9D19E682BFCAEC25"><enum>(3)</enum><text>in subsection

			 (d)(2), by inserting <quote>experts in minority health,</quote> after

			 <quote>government agencies,</quote>.</text>

					</paragraph></section></subtitle></title><title id="IDE1D32E10A1B24C278316C305461C7F9F"><enum>VII</enum><header>COMMITTEE ON

			 HEALTH, EDUCATION, LABOR, AND PENSIONS</header>

			<subtitle id="ID8D262D61759D483BA59D7683CC2E5748"><enum>A</enum><header>Education

			 Provisions</header>

				<chapter id="ID9AD5AD6FEE324909B57B40A85DD74107"><enum>1</enum><header>EDUCATION</header>

					<section id="ID740466E8305340C4948658514C62E1CA"><enum>7101.</enum><header>Provisional

			 grant assistance Program</header>

						<subsection id="IDF82B84C82CFF4510A1532D15BA1A3180"><enum>(a)</enum><header>Amendment</header><text>Subpart

			 1 of part A of title IV of the <act-name parsable-cite="HEA65">Higher Education

			 Act of 1965</act-name> (20 U.S.C. 1070a) is amended by adding at the end the

			 following:</text>

							<quoted-block act-name="Higher Education Act of 1965" id="ID1E815EABBA0348349318AC2082AD1601" style="OLC">

								<section id="ID4D7DC91F6B834430A5F60127C566E95E"><enum>401A.</enum><header>Provisional

				grant assistance Program</header>

									<subsection id="ID545C5ADD5EFD4DC8921577FDED2BE200"><enum>(a)</enum><header>Grants</header>

										<paragraph id="ID92636C7AF5E64C36A5790816DCB57CF4"><enum>(1)</enum><header>In

				general</header><text>From amounts appropriated under subsection (e) for a

				fiscal year and subject to subsection (b), the Secretary shall award grants to

				students (which shall be known as <quote>ProGAP awards</quote>) in the same

				manner as the Secretary awards grants to students under section 401, except

				that—</text>

											<subparagraph id="ID75D725C3EE7148148D40746185089264"><enum>(A)</enum><text>at the beginning

				of each award year, the Secretary shall establish a maximum and minimum award

				level based on amounts made available under subsection (e);</text>

											</subparagraph><subparagraph id="IDF43C75BB0068412BA29CB49B3EB2B031"><enum>(B)</enum><text>the Secretary

				shall only award grants under this section to students eligible for a grant

				under section 401 for the award year; and</text>

											</subparagraph><subparagraph id="ID7FD1ABB3078B47C6955C055E3B131473"><enum>(C)</enum><text>when determining

				eligibility for the awards, the Secretary shall consider only those students

				who are eligible for a grant under section 401, as of June 30 of the award year

				for which the determination is made.</text>

											</subparagraph><subparagraph id="ID789C2E2834B04BA88E982EA6260F8336"><enum>(D)</enum><text>the

				Secretary—</text>

												<clause id="IDA613736849224E52B89D136C983E217F"><enum>(i)</enum><text>shall determine

				if an increase in the amount of a grant under this section is needed to help

				encourage students to pursue courses of study that are important to the current

				and future national, homeland, and economic security needs of the United

				States; and</text>

												</clause><clause id="ID10C6D056DBA948488B3AD48B013D92FA"><enum>(ii)</enum><text>after making the

				determination described in clause (i), may increase the maximum and minimum

				award level established under subparagraph (A) by not more than 25 percent, for

				students eligible for a grant under this section who are pursuing a degree with

				a major in mathematics, science, technology, engineering, or a foreign language

				that is critical to the national security of the United States; and</text>

												</clause></subparagraph><subparagraph id="ID93A61E822B7E484681505141755BDFB7"><enum>(E)</enum><text>not later than

				September 30 of each fiscal year, the Secretary shall notify Congress, in

				writing, of the Secretary’s determination with respect to subparagraph (D)(i)

				and of any increase in award levels under subparagraph (D)(ii).</text>

											</subparagraph></paragraph><paragraph id="IDC8BF9477269945D294B03A32183EADBA"><enum>(2)</enum><header>Students with

				the greatest need</header><text>The Secretary shall ensure grants are awarded

				under this section to students with the greatest need as determined in

				accordance with section 471.</text>

										</paragraph></subsection><subsection id="IDC12C79B535FB4A75B0A6577654F2A344"><enum>(b)</enum><header>Cost of

				Attendance Limitation</header><text>A grant awarded under this section for an

				award year shall be awarded in an amount that does not exceed—</text>

										<paragraph id="IDE24D57E5AF714AC2814B4DAC64DEE665"><enum>(1)</enum><text>the student’s

				cost of attendance for the award year; less</text>

										</paragraph><paragraph id="IDE8E4BA80AE2C40B1917651D295A03514"><enum>(2)</enum><text>an amount equal

				to the expected family contribution for that student for the award year.</text>

										</paragraph></subsection><subsection id="ID49CE7E44BFC84B64B0E2E12721A51E60"><enum>(c)</enum><header>Supplement Not

				Supplant</header><text>Grants awarded from funds made available under

				subsection (e) shall be used to supplement, and not supplant, other Federal,

				State, or institutional grant funds.</text>

									</subsection><subsection id="IDDC76E9A8E38148A192CD3E4E5555B5F7"><enum>(d)</enum><header>Use of Excess

				Funds</header>

										<paragraph id="IDBCD9928BEEAC4534AB39EF49AF3508C1"><enum>(1)</enum><header>15 percent or

				less</header><text>If, at the end of a fiscal year, the funds available for

				making grant payments under this section exceed the amount necessary to make

				the grant payments required under this section to eligible students by 15

				percent or less, then all of the excess funds shall remain available for making

				grant payments under this section during the next succeeding fiscal

				year.</text>

										</paragraph><paragraph id="ID9375C1EE02EA44399D88D6CE2716DDA0"><enum>(2)</enum><header>More than 15

				percent</header><text>If, at the end of a fiscal year, the funds available for

				making grant payments under this section exceed the amount necessary to make

				the grant payments required under this section to eligible students by more

				than 15 percent, then all of such funds shall remain available for making such

				grant payments but grant payments may be made under this paragraph only with

				respect to awards for that fiscal

				year.</text>

										</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

							<quoted-block act-name="Higher Education Act of 1965" id="ID31A367F89E14402E8DDD944AF51A9BCA" style="OLC">

								<subsection id="ID1956906B1386406EBE816687AFFE4D6F"><enum>(e)</enum><header>Authorization

				and Appropriation of Funds</header><text>There are authorized to be

				appropriated, and there are appropriated, out of any money in the Treasury not

				otherwise appropriated, for the Department of Education to carry out this

				section and section 401B—</text>

									<paragraph id="IDEED7089CD4504CAEB57F022598F93A0C"><enum>(1)</enum><text>$1,897,000,000

				for fiscal year 2006;</text>

									</paragraph><paragraph id="IDD1150A67366E46A784B3F67A4BA17B67"><enum>(2)</enum><text>$1,901,000,000

				for fiscal year 2007;</text>

									</paragraph><paragraph id="ID17126997C1134AE7BC7F9A16BAC45109"><enum>(3)</enum><text>$1,899,000,000

				for fiscal year 2008;</text>

									</paragraph><paragraph id="ID94380B460AF544FE881ADAE64268627F"><enum>(4)</enum><text>$1,898,000,000

				for fiscal year 2009; and</text>

									</paragraph><paragraph id="IDBB16B7CBE6AE468A92D7AC3F038F88AA"><enum>(5)</enum><text>$1,897,000,000

				for fiscal year 2010.</text>

									</paragraph></subsection><subsection id="IDC018F98E6AFB4D6D97746E832B0D056D"><enum>(f)</enum><header>Sunset

				Provision</header><text>This section shall be effective with respect to amounts

				appropriated for fiscal year 2006 and each of the 4 succeeding fiscal

				years.</text>

								</subsection><after-quoted-block>.</after-quoted-block></quoted-block>

						</subsection><subsection id="ID218A8A6EB33F48708C4165070DD2665A"><enum>(b)</enum><header>Sense of the

			 Senate</header><text>It is the sense of the Senate that the amounts

			 appropriated to carry out sections 401A and 401B of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> are the

			 result of the savings generated by the amendments made by this chapter.</text>

						</subsection></section><section id="ID7774613AC7FD43AAAA4E69E2584ABE57"><enum>7102.</enum><header>National

			 SMART grants</header><text display-inline="no-display-inline">Subpart 1 of part

			 A of title IV of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C. 1070a) is further amended by adding after section

			 401A (as added by section 7101):</text>

						<quoted-block act-name="Higher Education Act of 1965" id="IDFD91307006A84EEFAA97F41BED951D0A" style="OLC">

							<section id="ID26C807CE2C5C4CC0A19E4C43AD15C627"><enum>401B.</enum><header>National

				SMART grants</header>

								<subsection id="IDC912AB6D0F8E42C0A4D833F528FBFD1F"><enum>(a)</enum><header>Findings</header><text>Congress

				makes the following findings:</text>

									<paragraph id="IDF1C4550C7DBD41AA93B98973792E5662"><enum>(1)</enum><text>If the United

				States is to remain a world leader in the global economy, its college students

				must have the training they need to compete for the best jobs of the 21st

				century.</text>

									</paragraph><paragraph id="ID4814C3CAE0C948C984A1172B19C7D031"><enum>(2)</enum><text>The United States

				intelligence community faces major shortages in foreign languages critical to

				national security, and will also require major incentives to fill projected

				workforce needs.</text>

									</paragraph><paragraph id="ID9F3ABDD7CE174ECEB27F7D79B38346B2"><enum>(3)</enum><text>Increasingly, the

				best jobs of the 21st century will require baccalaureate degrees in the

				sciences, mathematics, technology, engineering, and foreign languages critical

				to national security, or be generated by people who have such degrees.</text>

									</paragraph><paragraph id="ID7AF397EFD7224D6787373A3ACDE40965"><enum>(4)</enum><text>Congress should

				establish a National Science and Mathematics Access to Retain Talent (SMART)

				grant program to meet the goals described in paragraphs (1) through (3).</text>

									</paragraph></subsection><subsection id="IDDB8FFD7171204DADAFFDD1353E5B4234"><enum>(b)</enum><header>Purpose</header><text>The

				purpose of this section is to increase the number of postsecondary students

				from low-income backgrounds who are enrolled in studies leading to

				baccalaureate degrees in physical, life, or computer sciences, mathematics,

				technology, engineering, and foreign languages critical to national

				security.</text>

								</subsection><subsection id="ID41CDAB2CB1EB472580AD157A4FC0AF1C"><enum>(c)</enum><header>Grants

				Authorized</header><text>From amounts appropriated under section 401A(c) for a

				fiscal year, the Secretary shall award grants to eligible students to assist

				the eligible students in paying their college education expenses.</text>

								</subsection><subsection id="ID34079705A2A24504B7EFF7E49D896AA2"><enum>(d)</enum><header>Designation</header><text>A

				grant under this section shall be known as a <quote>National Science and

				Mathematics Access to Retain Talent Grant</quote> or a <quote>National SMART

				Grant</quote>.</text>

								</subsection><subsection id="ID23FE085D87924BF19C7384B83F6B7B9F"><enum>(e)</enum><header>Definition of

				Eligible Student</header><text>In this section the term <term>eligible

				student</term> means a student who, for the academic year for which the

				determination is made—</text>

									<paragraph id="ID2736CE83CE804A7D9E96A9A0766D50E9"><enum>(1)</enum><text>is eligible for a

				Federal Pell Grant; and</text>

									</paragraph><paragraph id="ID30020099AA094EB29B99B570CA614CFF"><enum>(2)</enum><text>is in the

				student’s 3rd or 4th year at an institution of higher education majoring

				in—</text>

										<subparagraph id="ID54D2A9A8416546A9A73BCBE7587F7A0B"><enum>(A)</enum><text>mathematics,

				science, technology, or engineering (as determined by the Secretary pursuant to

				regulations); or</text>

										</subparagraph><subparagraph id="ID5928383774B641BAA5B5EEC3BD4F1A82"><enum>(B)</enum><text>a foreign

				language that the Secretary, in consultation with the Director of National

				Intelligence, determines is critical to the national security of the United

				States.</text>

										</subparagraph></paragraph></subsection><subsection id="IDCE62ED23E97A46048CAF6F4F893A4B79"><enum>(f)</enum><header>Grant

				Amount</header><text>The Secretary shall award a grant under this section in an

				amount that does not exceed $1,500 for an academic year.</text>

								</subsection><subsection id="ID8F181E1C1A9F4B2997FA100C1A8ED575"><enum>(g)</enum><header>Funding

				Rule</header><text>The Secretary shall use not more than $450,000,000 of the

				funds appropriated under section 401A(c) for each of the fiscal years 2006

				through 2010 to carry out this section.</text>

								</subsection><subsection id="IDF960245C4BC94B0097DB378B09B3798E"><enum>(h)</enum><header>Unobligated

				Funds Available for Federal Grant Assistance</header><text>The Secretary shall

				make any funds made available under subsection (g) for a fiscal year that

				remain unobligated at the end of the fiscal year available to carry out section

				401A.</text>

								</subsection><subsection id="ID4FFFEB4D151541B697574ED37D0EDEF2"><enum>(i)</enum><header>Matching

				Assistance</header><text>An institution of higher education may, from funds

				provided from private sources, provide additional assistance to a student

				receiving a grant under this section, except that the total assistance provided

				under this title to a student shall not exceed the student’s cost of

				attendance.</text>

								</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

					</section><section id="IDA2837CF445794169A0CC92A3CFF7ACB6"><enum>7103.</enum><header>Loan

			 limits</header>

						<subsection id="ID7D961C634DDD42D797FC1F00F06D6621"><enum>(a)</enum><header>Federal

			 Insurance Limits</header><text>Section 425(a)(1)(A) of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1075(a)(1)(A)) is amended—</text>

							<paragraph id="ID7F85B4852FF943A3B7F7A2E659C7062B"><enum>(1)</enum><text>in clause (i)(I),

			 by striking <quote>$2,625</quote> and inserting <quote>$3,500</quote>;

			 and</text>

							</paragraph><paragraph id="IDB27E34BC8EE64E1CAC83CE602EB265C7"><enum>(2)</enum><text>in clause

			 (ii)(I), by striking <quote>$3,500</quote> and inserting

			 <quote>$4,500</quote>.</text>

							</paragraph></subsection><subsection id="ID84052567E91944C3B43935266FB08901"><enum>(b)</enum><header>Guarantee

			 Limits</header><text>Section 428(b)(1)(A) of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1078(b)(1)(A)) is amended—</text>

							<paragraph id="IDEF34F5C0C917493EA438D374F0DE4314"><enum>(1)</enum><text>in clause (i)(I),

			 by striking <quote>$2,625</quote> and inserting <quote>$3,500</quote>;

			 and</text>

							</paragraph><paragraph id="ID2E04F87282B5462E91A70517E1DF7651"><enum>(2)</enum><text>in clause

			 (ii)(I), by striking <quote>$3,500</quote> and inserting

			 <quote>$4,500</quote>.</text>

							</paragraph></subsection><subsection id="ID56A8AC673A5C46C8A291A811A3345DF4"><enum>(c)</enum><header>Federal PLUS

			 Loans</header><text>Section 428B of the <act-name parsable-cite="HEA65">Higher

			 Education Act of 1965</act-name> (20 U.S.C. 1078–2) is amended—</text>

							<paragraph id="ID417394BDDECA4A019833646B7ABDED08"><enum>(1)</enum><text>in subsection

			 (a)(1)—</text>

								<subparagraph id="IDAB8FFA26ABF84C16BC7BCE0DEE601D56"><enum>(A)</enum><text>in the matter

			 preceding subparagraph (A), by striking <quote>Parents</quote> and inserting

			 <quote>A graduate or professional student or the parents</quote>;</text>

								</subparagraph><subparagraph id="IDBCC24F7503BE4ACA967376AE8A6863D0"><enum>(B)</enum><text>in subparagraph

			 (A), by striking <quote>the parents</quote> and inserting <quote>the graduate

			 or professional student or the parents</quote>; and</text>

								</subparagraph><subparagraph id="IDD8B18B7609E84C108C460F4F6EB13701"><enum>(C)</enum><text>in subparagraph

			 (B), by striking <quote>the parents</quote> and inserting <quote>the graduate

			 or professional student or the parents</quote>;</text>

								</subparagraph></paragraph><paragraph id="IDE45D45B2AF0548B2AB8BAF46631E111C"><enum>(2)</enum><text>in subsection

			 (b), by striking <quote>any parent</quote> and inserting <quote>any graduate or

			 professional student or any parent</quote>;</text>

							</paragraph><paragraph id="IDCC124540B608494A82307EDEAB24F7D3"><enum>(3)</enum><text>in subsection

			 (c)(2), by striking <quote>parent</quote> and inserting <quote>graduate or

			 professional student or parent</quote>; and</text>

							</paragraph><paragraph id="ID9DCA2377521C44E3BA60EC2E9CA205CA"><enum>(4)</enum><text>in subsection

			 (d)(1), by striking <quote>the parent</quote> and inserting <quote>the graduate

			 or professional student or the parent</quote>.</text>

							</paragraph></subsection><subsection id="ID1443A7068B7A4287A53C9A4094E8B5F4"><enum>(d)</enum><header>Unsubsidized

			 Stafford Loans for Graduate or Professional Students</header><text>Section

			 428H(d)(2) of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C. 1078–8(d)(2)) is amended—</text>

							<paragraph id="ID8E0F7D9E6B174320AAD93C1909BEF19B"><enum>(1)</enum><text>in subparagraph

			 (C), by striking <quote>$10,000</quote> and inserting <quote>$12,000</quote>;

			 and</text>

							</paragraph><paragraph id="ID6377E6B99BD64DA4A17F3F8DF38009D1"><enum>(2)</enum><text>in subparagraph

			 (D)—</text>

								<subparagraph id="ID57EAF22CE38C4694A78A5B3BE993B738"><enum>(A)</enum><text>in clause (i), by

			 striking <quote>$5,000</quote> and inserting <quote>$7,000</quote>; and</text>

								</subparagraph><subparagraph id="ID2B47BB6D32AC4F639A8C0FFC7AF0AC41"><enum>(B)</enum><text>in clause (ii),

			 by striking <quote>$5,000</quote> and inserting <quote>$7,000</quote>.</text>

								</subparagraph></paragraph></subsection></section><section id="IDFC0D6618321A4C05AA70C5C1CBB00F58"><enum>7104.</enum><header>PLUS loan

			 interest rates and zero special allowance payment</header>

						<subsection id="ID3110B65B50DE4FCDB0348958FAB4EF44"><enum>(a)</enum><header>PLUS

			 Loans</header><text>Section 427A(l)(2) of the <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20 U.S.C.

			 1077a(l)(2)) is amended by striking <quote>7.9 percent</quote> and inserting

			 <quote>8.5 percent</quote>.</text>

						</subsection><subsection id="ID7D46B56F35C84B46A4179395C3F1A84F"><enum>(b)</enum><header>Conforming

			 Amendments for Special Allowances</header>

							<paragraph id="ID6C94E67A2EAF4D3499F65BD4683788A9"><enum>(1)</enum><header>Amendments</header><text>Subparagraph

			 (I) of section 438(b)(2) of the <act-name parsable-cite="HEA65">Higher

			 Education Act of 1965</act-name> (20 U.S.C. 1087–1(b)(2)) is amended—</text>

								<subparagraph id="ID08C37F2E2C634E6E9758D58396F0EE39"><enum>(A)</enum><text>in clause (iv),

			 by striking <quote>, subject to clause (vi) of this

			 subparagraph</quote>;</text>

								</subparagraph><subparagraph id="IDA0260356BAD1450F8C8913B0799BF2C8"><enum>(B)</enum><text>in clause (v), by

			 striking <quote>July 1, 2006</quote> each place it appears and inserting

			 <quote>April 1, 2006</quote>; and</text>

								</subparagraph><subparagraph id="ID298FD1AE51414BDF84DEAE0CCF76DD7C"><enum>(C)</enum><text>by striking

			 clauses (vi) and (vii) and inserting the following:</text>

									<quoted-block id="ID6C7DB87F6A974E3098AE4179444D01C5" style="OLC">

										<clause id="IDA460AF054E1C476BA193769E81C5B318"><enum>(vi)</enum><header>Recapture of

				excess interest</header>

											<subclause id="ID646ACAE8563A4F09A8D907314807F534"><enum>(I)</enum><header>Excess

				credited</header><text>With respect to a loan on which the applicable interest

				rate is determined under subsection (k) or (l) of section 427A and for which

				the first disbursement of principal is made on or after April 1, 2006, if the

				applicable interest rate for any 3-month period exceeds the special allowance

				support level applicable to such loan under this subparagraph for such period,

				then an adjustment shall be made by calculating the excess interest in the

				amount computed under subclause (II) of this clause, and by crediting the

				excess interest to the Government not less often than annually.</text>

											</subclause><subclause id="ID3A57536DD365495882DD77C036E3A8F0"><enum>(II)</enum><header>Calculation of

				excess</header><text>The amount of any adjustment of interest on a loan to be

				made under this subsection for any quarter shall be equal to—</text>

												<item id="IDA9FB22F6B2C745B6A2F427AFD476B234"><enum>(aa)</enum><text>the applicable

				interest rate minus the special allowance support level determined under this

				subparagraph; multiplied by</text>

												</item><item id="IDA757BA0728D944AEA2CF5BB48265F3DF"><enum>(bb)</enum><text>the average

				daily principal balance of the loan (not including unearned interest added to

				principal) during such calendar quarter; divided by</text>

												</item><item id="IDB22F17D488A9444A9F3CAA2294AB3D0E"><enum>(cc)</enum><text>four.</text>

												</item></subclause><subclause id="ID67CA05DFC9E447F587091A945E9E9374"><enum>(III)</enum><header>Special

				allowance support level</header><text>For purposes of this clause, the term

				<term>special allowance support level</term> means, for any loan, a number

				expressed as a percentage equal to the sum of the rates determined under

				subclauses (I) and (III) of clause (i), and applying any substitution rules

				applicable to such loan under clauses (ii), (iii), and (iv) in determining such

				sum.</text>

											</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>

								</subparagraph></paragraph><paragraph id="ID9FF8D22EC94949FEA8C24A1A20801BA7"><enum>(2)</enum><header>Effective

			 date</header><text>The amendments made by this subsection shall not apply with

			 respect to any special allowance payment made under section 438 of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C 1087–1) before April 1, 2006.</text>

							</paragraph></subsection></section><section id="ID67CA310E4E2240B68B923A3752B006E7"><enum>7105.</enum><header>Reduction of

			 lender insurance reimbursement rates</header>

						<subsection id="ID0B04D670152540E7AC7B97702F0FF795"><enum>(a)</enum><header>Amendment</header><text>Subparagraph

			 (G) of section 428(b)(1) of the <act-name parsable-cite="HEA65">Higher

			 Education Act of 1965</act-name> (20 U.S.C. 1078(b)(1)) is amended to read as

			 follows:</text>

							<quoted-block act-name="Higher Education Act of 1965" id="ID9718D39CF57E41ED940D9A2F86BE225F" style="OLC">

								<subparagraph id="ID997C08520F744B36865724BC82D81022"><enum>(G)</enum><text>insures 97

				percent of the unpaid principal of loans insured under the

				program;</text>

								</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</subsection><subsection id="IDC2DC03A19E9046A7B426DDF840CE1A09"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendment made by subsection (a) shall apply with

			 respect to any loan made, insured, or guaranteed under part B of title IV of

			 the <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1071 et seq.) for which the first disbursement is made on or after

			 January 1, 2006.</text>

						</subsection></section><section id="ID7AE446B3AD8D4E3FAC8F43ED4874B8AB"><enum>7106.</enum><header>Guaranty

			 agency origination fee</header>

						<subsection id="ID4A71B23CDD7F4F3F802E98594045F24E"><enum>(a)</enum><header>Amendment</header><text>Section

			 428(b)(1)(H) of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C. 1078(b)(1)(H)) is amended to read as follows:</text>

							<quoted-block act-name="Higher Education Act of 1965" id="ID8331E541852D414A8768EF3E221617F2" style="OLC">

								<subparagraph id="ID5F2510BBD3FC49028B3303EE9C8CB5D9"><enum>(H)</enum><text>provides for the

				collection, and the deposit in the Federal Fund established under section

				422A(a), of a guaranty agency origination fee of 1.0 percent of each

				disbursement of the proceeds of the loan, which fee may be provided from funds

				in the guaranty agency’s operating fund under section 422B or from other

				non-Federal

				funds;</text>

								</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</subsection><subsection id="ID35220C7E8C9048A9A748CD30BCB28441"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendment made by subsection (a) shall be effective with

			 respect to any loan disbursed under part B of title IV of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> on or

			 after April 1, 2006.</text>

						</subsection></section><section id="IDD011761A1F404F9CB7B18BF43B893993"><enum>7107.</enum><header>Deferment of

			 student loans for military service</header>

						<subsection id="ID20F09013EECF4B2B9624A68121D4EB93"><enum>(a)</enum><header>Federal Family

			 Education Loans</header><text>Section 428(b)(1)(M) of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1078(b)(1)(M)) is amended—</text>

							<paragraph id="IDD7E7A2CCDDE54EC8A8F544E58549C933"><enum>(1)</enum><text>by striking

			 <quote>or</quote> at the end of clause (ii);</text>

							</paragraph><paragraph id="IDE1BED545FE8D40C9BD1947B0FD7339DB"><enum>(2)</enum><text>by redesignating

			 clause (iii) as clause (iv); and</text>

							</paragraph><paragraph id="ID6905DF8FBB9649B886D619DCD7FDA8CE"><enum>(3)</enum><text>by inserting

			 after clause (ii) the following new clause:</text>

								<quoted-block id="ID37318959092B43E8AA949AF2DE7ECDF0" style="OLC">

									<clause id="ID4D2FFAE1FAA74BAF88D7209B22E00178"><enum>(iii)</enum><text>not in excess

				of 3 years during which the borrower—</text>

										<subclause id="ID520D56FBC1EE4F30AF463C0AD8A2C7B8"><enum>(I)</enum><text>is serving on

				active duty during a war or other military operation or national emergency;

				or</text>

										</subclause><subclause id="ID385C49F6B43544B4A65C5839FB35D88D"><enum>(II)</enum><text>is performing

				qualifying National Guard duty during a war or other military operation or

				national emergency;

				or</text>

										</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></subsection><subsection id="ID0918143909F24840AB3D50015DF09243"><enum>(b)</enum><header>Direct

			 Loans</header><text>Section 455(f)(2) of the <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20 U.S.C.

			 1087e(f)(2)) is amended—</text>

							<paragraph id="ID2B1B2A7BF5A145CDA1AFD6A874DA2387"><enum>(1)</enum><text>by redesignating

			 subparagraph (C) as subparagraph (D); and</text>

							</paragraph><paragraph id="IDC06BF8E3EDD449799BC9F6AC01800409"><enum>(2)</enum><text>by inserting

			 after subparagraph (B) the following new subparagraph:</text>

								<quoted-block id="ID334FB4F75CF34168838E7985C08796F6" style="OLC">

									<subparagraph id="IDCC19D34931A94A1F8E612793FF5090EE"><enum>(C)</enum><text>not in excess of

				3 years during which the borrower—</text>

										<clause id="IDCEF49CCF05CB4504B34968017DEDD595"><enum>(i)</enum><text>is serving on

				active duty during a war or other military operation or national emergency;

				or</text>

										</clause><clause id="ID527C7137910649939142F1574684FEFE"><enum>(ii)</enum><text>is performing

				qualifying National Guard duty during a war or other military operation or

				national emergency;

				or</text>

										</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></subsection><subsection id="ID2235C0DEF7A7435A8BB5C240A46ADD7D"><enum>(c)</enum><header>Perkins

			 Loans</header><text>Section 464(c)(2)(A) of the <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20 U.S.C.

			 1087dd(c)(2)(A)) is amended—</text>

							<paragraph id="IDC2ABF491556E4907A4064E54D32B32D2"><enum>(1)</enum><text>by redesignating

			 clauses (iii) and (iv) as clauses (iv) and (v), respectively; and</text>

							</paragraph><paragraph id="ID0DE4947721AA4340B012BDB5D278462E"><enum>(2)</enum><text>by inserting

			 after clause (ii) the following new clause:</text>

								<quoted-block id="IDD1E63EEEB2F64AEC960334B2CD05755A" style="OLC">

									<clause id="ID889607402BBF455FAA65376E5539DD52"><enum>(iii)</enum><text>not in excess

				of 3 years during which the borrower—</text>

										<subclause id="ID3EC2FEF457DD40B0826C68A3D567EBCF"><enum>(I)</enum><text>is serving on

				active duty during a war or other military operation or national emergency;

				or</text>

										</subclause><subclause id="IDB216E67F1DD84140A5DC60ADA8997A72"><enum>(II)</enum><text>is performing

				qualifying National Guard duty during a war or other military operation or

				national

				emergency;</text>

										</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></subsection><subsection id="ID9AAB87CB43294DE79A19813BFADB6527"><enum>(d)</enum><header>Definitions</header><text>Section

			 481 of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C. 1088) is amended by adding at the end the following

			 new subsection:</text>

							<quoted-block act-name="Higher Education Act of 1965" id="IDAA558204AA6B4C9C87BFBCD70398FDFA" style="OLC">

								<subsection id="IDDB5BEFB68DC0491EAA35BF8178EFB980"><enum>(d)</enum><header>Definitions for

				Military Deferments</header><text>For purposes of parts B, D, and E of this

				title:</text>

									<paragraph id="ID1B642E4160C7482E9F23BE2E1182576D"><enum>(1)</enum><header>Active

				duty</header><text>The term <term>active duty</term> has the meaning given such

				term in section 101(d)(1) of title 10, United States Code, except that such

				term does not include active duty for training or attendance at a service

				school.</text>

									</paragraph><paragraph id="ID7F165CB4F6C44640981EBD4D733C7952"><enum>(2)</enum><header>Military

				operation</header><text>The term <term>military operation</term> means a

				contingency operation as such term is defined in section 101(a)(13) of title

				10, United States Code.</text>

									</paragraph><paragraph id="ID181818F86AC44A7D95898A90A88A07F7"><enum>(3)</enum><header>National

				emergency</header><text>The term <term>national emergency</term> means the

				national emergency by reason of certain terrorist attacks declared by the

				President on September 14, 2001, or subsequent national emergencies declared by

				the President by reason of terrorist attacks.</text>

									</paragraph><paragraph id="ID87FA2F54788844C49029D159ABDA0C11"><enum>(4)</enum><header>Serving on

				active duty</header><text>The term <term>serving on active duty during a war or

				other military operation or national emergency</term> means service by an

				individual who is—</text>

										<subparagraph id="IDF38C65F4EC154C43860EC482820FA8AC"><enum>(A)</enum><text>a Reserve of an

				Armed Force ordered to active duty under section 12301(a), 12301(g), 12302,

				12304, or 12306 of title 10, United States Code, or any retired member of an

				Armed Force ordered to active duty under section 688 of such title, for service

				in connection with a war or other military operation or national emergency,

				regardless of the location at which such active duty service is performed;

				and</text>

										</subparagraph><subparagraph id="ID358FFD45A29149D3A85FD410CE5EF051"><enum>(B)</enum><text>any other member

				of an Armed Force on active duty in connection with such emergency or

				subsequent actions or conditions who has been assigned to a duty station at a

				location other than the location at which such member is normally

				assigned.</text>

										</subparagraph></paragraph><paragraph id="ID4DF7C265BC274922B2ACC7E9CB68FED9"><enum>(5)</enum><header>Qualifying

				national guard duty</header><text>The term <term>qualifying National Guard duty

				during a war or other military operation or national emergency</term> means

				service as a member of the National Guard on full-time National Guard duty (as

				defined in section 101(d)(5) of title 10, United States Code) under a call to

				active service authorized by the President or the Secretary of Defense for a

				period of more than 30 consecutive days under section 502(f) of title 32,

				United States Code, in connection with a war, other military operation, or a

				national emergency declared by the President and supported by Federal

				funds.</text>

									</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

						</subsection><subsection id="IDE9691875C556455C8437BAF33D445247"><enum>(e)</enum><header>Rule of

			 Construction</header><text>Nothing in the amendments made by this section shall

			 be construed to authorize any refunding of any repayment of a loan.</text>

						</subsection><subsection id="ID9FB35840A3C34F5FBAD49D01AABA56FD"><enum>(f)</enum><header>Effective

			 Date</header><text>The amendments made by this section shall apply with respect

			 to loans for which the first disbursement is made on or after July 1,

			 2001.</text>

						</subsection></section><section id="ID528C1F10A3C546F4894EF5632850490D"><enum>7108.</enum><header>Recovery

			 through consolidation</header><text display-inline="no-display-inline">Section

			 428(c) of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C 1078(c)) is amended—</text>

						<paragraph id="IDCEBC204029C44A37831E81D355FF53F4"><enum>(1)</enum><text>in paragraph

			 (2)(A)—</text>

							<subparagraph id="IDB6D0F97A3C594D0CAB77608FCCC897AD"><enum>(A)</enum><text>by inserting

			 <quote>(i)</quote> after <quote>including</quote>; and</text>

							</subparagraph><subparagraph id="IDC98EDC586E9F428B80838CC905DA5409"><enum>(B)</enum><text>by inserting

			 before the semicolon at the end the following: <quote>and (ii) requirements

			 establishing procedures to preclude consolidation lending from being an

			 excessive proportion of guaranty agency recoveries on defaulted loans under

			 this part</quote>;</text>

							</subparagraph></paragraph><paragraph id="IDF47485D459184FECAB1489DD43C4844B"><enum>(2)</enum><text>in paragraph

			 (2)(D), by striking <quote>paragraph (6)</quote> and inserting <quote>paragraph

			 (6)(A)</quote>; and</text>

						</paragraph><paragraph id="ID908D7F2BF73B4DD491F49707ADE340EE"><enum>(3)</enum><text>in paragraph

			 (6)—</text>

							<subparagraph id="ID8152DEDB77764928B8CE8F2B991AF1DE"><enum>(A)</enum><text>by inserting

			 <quote>(A)</quote> before <quote>For the purposes of paragraph

			 (2)(D),</quote>;</text>

							</subparagraph><subparagraph id="ID612BC47D649D48B0B44800AB52C884EE"><enum>(B)</enum><text>by redesignating

			 subparagraphs (A) and (B) as clauses (i) and (ii), respectively; and</text>

							</subparagraph><subparagraph id="ID301CB22B692340269DF59A1F92AA7273"><enum>(C)</enum><text>by adding at the

			 end the following new subparagraphs:</text>

								<quoted-block id="ID8A0AE276098A4292A1D5702055A14AD6" style="OLC">

									<subparagraph id="IDEEF0F6CCF0494ACD91050076FD6A681A" indent="up1"><enum>(B)</enum><header>Guaranty agency

				obligations</header><text>A guaranty agency shall—</text>

										<clause id="IDCFA1C78258864604B82439811088FE86"><enum>(i)</enum><text>on or after October 1, 2006—</text>

											<subclause id="IDD716FB53214942D385E94AEF05A9326C"><enum>(I)</enum><text>not charge the borrower collection costs

				in an amount in excess of 18.5 percent of the outstanding principal and

				interest of a defaulted loan that is paid off through consolidation by the

				borrower under this title; and</text>

											</subclause><subclause id="IDC8CEF0FDDB4E4431A3D25C16C06736FC"><enum>(II)</enum><text>remit to the Secretary a portion of the

				collection charge under subclause (I) equal to 8.5 percent of the outstanding

				principal and interest of such defaulted loan; and</text>

											</subclause></clause><clause id="ID84EE398990F446568B6C1505BD178194"><enum>(ii)</enum><text>on and after October 1, 2009,

				remit to the Secretary the entire amount charged under clause (i)(I) with

				respect to each defaulted loan that is paid off with excess consolidation

				proceeds.</text>

										</clause></subparagraph><subparagraph id="IDF312DE97406B4A8FA745BCD54FBD5617"><enum>(C)</enum><header>Excess

				consolidation proceeds</header><text>For purposes of subparagraph (B), the term

				<term>excess consolidation proceeds</term> means, with respect to any guaranty

				agency for any Federal fiscal year beginning on or after October 1, 2009, the

				proceeds of consolidation of defaulted loans under this title that exceed 45

				percent of the agency’s total collections on defaulted loans in such Federal

				fiscal

				year.</text>

									</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph></section><section id="ID5E0663E1F6A249E18C8089448987A0D3"><enum>7109.</enum><header>Single holder

			 rule</header><text display-inline="no-display-inline">Subparagraph (A) of

			 section 428C(b)(1) of the <act-name parsable-cite="HEA65">Higher Education Act

			 of 1965</act-name> (20 U.S.C. 1078–3(b)(1)) is amended by striking <quote>and

			 (i)</quote> and all that follows through <quote>so selected for

			 consolidation)</quote>.</text>

					</section><section id="IDF2EA703ADFC54A75BB2BCE5ECD64504C"><enum>7110.</enum><header>Default

			 reduction Program</header><text display-inline="no-display-inline">Section

			 428F(a)(1) of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C. 1078–6(a)(1)) is amended—</text>

						<paragraph id="ID54B9DF09D2684B4FB6E554F4B0A28488"><enum>(1)</enum><text>in subparagraph

			 (A), by striking <quote>consecutive payments for 12 months</quote> and

			 inserting <quote>9 payments made within 20 days of the due date during 10

			 consecutive months</quote>;</text>

						</paragraph><paragraph id="ID731641F529C644E7AF0227AC1F5B6B07"><enum>(2)</enum><text>by redesignating

			 subparagraph (C) as subparagraph (D); and</text>

						</paragraph><paragraph id="ID0216CE8851ED4EC3B378A58FF2136ACD"><enum>(3)</enum><text>by inserting

			 after subparagraph (B) the following new subparagraph:</text>

							<quoted-block id="ID2BC0BB8E506C4A6A8BF986D0A9C0CE46" style="OLC">

								<subparagraph id="ID725A322ED17B4BF4AF14348E6DB5A26A"><enum>(C)</enum><text>A guaranty agency

				may charge the borrower and retain collection costs in an amount not to exceed

				18.5 percent of the outstanding principal and interest at the time of sale of a

				loan rehabilitated under subparagraph

				(A).</text>

								</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section><section id="IDA5D93A09C7BA4EF1958985FD65078FE2"><enum>7111.</enum><header>Requirements

			 for disbursements of student loans</header><text display-inline="no-display-inline">Section 428G of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1078–7) is amended—</text>

						<paragraph id="ID0764BCB47B5046A3B27DCD4150A5464D"><enum>(1)</enum><text>in subsection

			 (a)(3), by adding at the end the following: <quote>Notwithstanding section

			 422(d) of the Higher Education Amendments of 1998, this paragraph shall be

			 effective beginning on the date of enactment of the Higher Education Amendments

			 of 2005.</quote>; and</text>

						</paragraph><paragraph id="IDD74D081B867A458C9499B8B31967D184"><enum>(2)</enum><text>in subsection

			 (b)(1), by adding at the end the following: <quote>Notwithstanding section

			 422(d) of the Higher Education Amendments of 1998, the second sentence of this

			 paragraph shall be effective beginning on the date of enactment of the Higher

			 Education Amendments of 2005.</quote>.</text>

						</paragraph></section><section id="ID3D3BFDB1DE3B416685F4DF68D38D64EF"><enum>7112.</enum><header>Special

			 insurance and reinsurance rules</header>

						<subsection id="ID2E82FF51C389416CBF61DA7EAC8212AC"><enum>(a)</enum><header>Repeal</header><text>Section

			 428I of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C. 1078–9) is repealed.</text>

						</subsection><subsection id="IDB90490E8B9F0417AABC0AF0893EC94B4"><enum>(b)</enum><header>Conforming

			 Amendments</header><text>Part A of title IV of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C.1070 et seq.) is amended—</text>

							<paragraph id="ID8E492B29206D46178191F13439B883DE"><enum>(1)</enum><text>in section

			 428(c)(1)—</text>

								<subparagraph id="IDE11611C97A554B979C8A370BF70D4649"><enum>(A)</enum><text>by striking

			 subparagraph (D); and</text>

								</subparagraph><subparagraph id="ID5F046457F34D442998439B52CB44F22D"><enum>(B)</enum><text>by redesignating

			 subparagraphs (E) and (F) as subparagraphs (D) and (E), respectively;

			 and</text>

								</subparagraph></paragraph><paragraph id="IDDC161EAFCE3C415599D2A8F5627A42EF"><enum>(2)</enum><text>in section

			 438(b)(5), by striking the matter following subparagraph (B).</text>

							</paragraph></subsection></section><section id="IDF2456B917B5D4FEEAE37D0132F251D15"><enum>7113.</enum><header>School as

			 lender moratorium</header><text display-inline="no-display-inline">Section

			 435(d)(2) of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C. 1085(d)(2)) is amended—</text>

						<paragraph id="ID7CDE79A7253A47D1BCFDB7D04AAD18E4"><enum>(1)</enum><text>in subparagraph

			 (E), by striking <quote>and</quote> after the semicolon; and</text>

						</paragraph><paragraph id="IDCA177720FE614D9B8CB74859C22969E0"><enum>(2)</enum><text>by inserting

			 before the matter following subparagraph (F) (as amended by section 7390) the

			 following:</text>

							<quoted-block id="IDEB1F3DD9F5F048FBA1D95E7053F6B85F" style="OLC">

								<subparagraph id="ID723342E26BDF4798B26301C4BEC3396A"><enum>(G)</enum><text>shall have met

				the requirements of subparagraphs (A) through (F), and made loans under this

				part, on or before August 31, 2005;</text>

								</subparagraph><subparagraph id="ID4E9D3D4C447844E69D116BB9A4E87DD7"><enum>(H)</enum><text>shall hold each

				loan the eligible institution makes under this part to a student enrolled at

				the eligible institution until the student enters into a grace period described

				in section 427(a)(2)(B) or 428(b)(7);</text>

								</subparagraph><subparagraph id="IDF1B764B317D64C5BA530975B21D037BA"><enum>(I)</enum><text>shall use the

				proceeds from the sale of a loan made under this part, for need based grant aid

				programs, except that such proceeds—</text>

									<clause id="ID297FB5A1364E464E9F6B2A94AB83C462"><enum>(i)</enum><text>shall not be used

				to provide a grant to a student for an academic year in an amount that is more

				than the student’s cost of attendance for the academic year; and</text>

									</clause><clause id="IDE3384F9879DC438FB2126EF7F81CF29D"><enum>(ii)</enum><text>shall supplement

				and not supplant other Federal, State, and institutional grant aid; and</text>

									</clause></subparagraph><subparagraph id="ID74AD88863D714C5DA927E093D0CF734A"><enum>(J)</enum><text>shall not be a

				foundation or alumni

				organization;</text>

								</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section><section id="ID514B54ABF4974E4C963ED9DA898BB796"><enum>7114.</enum><header>Permanent

			 reduction of special allowance payments for loans from the proceeds of tax

			 exempt issues</header>

						<subsection id="ID80D9D4F4A2F0467CB94F3BEAB6CEB38E"><enum>(a)</enum><header>Technical

			 Clarification</header><text>The matter preceding paragraph (1) of section 2 of

			 the Taxpayer-Teacher Protection Act of 2004 (Public Law 108–409; 118 Stat.

			 2299) is amended by inserting <quote>of the <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name></quote> after

			 <quote>Section 438(b)(2)(B)</quote>. The amendment made by the preceding

			 sentence shall be effective as if enacted on October 30, 2004.</text>

						</subsection><subsection id="ID3CB477F9CFA7402DBB19CB60870A01F6"><enum>(b)</enum><header>Amendment</header><text>Section

			 438(b)(2)(B) of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C. 1087–1(b)(2)(B)) is amended—</text>

							<paragraph id="ID39E9F95BFF604479BD51CEF57F548F01"><enum>(1)</enum><text>in clause (iv),

			 by striking <quote>and before January 1, 2006,</quote>; and</text>

							</paragraph><paragraph id="IDE2359578052949FF8B108DE196311A69"><enum>(2)</enum><text>in clause

			 (v)(II)—</text>

								<subparagraph id="IDBA9326767AF24DD78117F98A391E8DF0"><enum>(A)</enum><text>in item (aa), by

			 striking <quote>and before January 1, 2006,</quote>;</text>

								</subparagraph><subparagraph id="IDB6BC78F3257E40A88B6B072F3D02081F"><enum>(B)</enum><text>in item (bb), by

			 striking <quote>and before January 1, 2006,</quote>; and</text>

								</subparagraph><subparagraph id="IDD37E9D9C49B745738C56A344E5A63341"><enum>(C)</enum><text>in item (cc), by

			 striking <quote>and before January 1, 2006,</quote>.</text>

								</subparagraph></paragraph></subsection></section><section id="IDFB93E5645378468C82389BE640AFB114"><enum>7115.</enum><header>Special

			 allowances</header>

						<subsection id="IDEB26DDBB32CD4161A45AAF391407C8FF"><enum>(a)</enum><header>Origination

			 Fees</header><text>Paragraph (2) of section 438(c) of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1087–1(c)) is amended—</text>

							<paragraph id="IDB245EB8851A24FB9A0C86D99DFE34AB4"><enum>(1)</enum><text>by striking the

			 designation and heading of such paragraph and inserting the following:</text>

								<quoted-block id="ID54F23EEC469F4120BE4A744462233DFC" style="OLC">

									<paragraph id="ID96F06651735043FD8226903968E3CA62"><enum>(2)</enum><header>Amount of

				origination fees</header>

										<subparagraph id="IDD9BBDDC90B6C418AAFCFB2F4EE14C4F1"><enum>(A)</enum><header>In

				general</header>

										</subparagraph></paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</paragraph><paragraph id="ID95825C13543F40CDA6B38F021FA2E24A"><enum>(2)</enum><text>by adding at the

			 end the following new subparagraph:</text>

								<quoted-block id="ID4A5E70F896234CA28CA942C8C3C58F7E" style="OLC">

									<subparagraph id="ID8F05430D11994C278271882445FCDE2A"><enum>(B)</enum><header>Subsequent

				reductions</header><text>Subparagraph (A) shall be applied to loans made under

				this part (other than loans made under sections 428C and 439(o)) by

				substituting <quote>2.50 percent</quote> for <quote>3.0 percent</quote> with

				respect to loans for which the first disbursement of principal is made on or

				after July 1,

				2007.</text>

									</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></subsection><subsection id="ID00350FF20E6543EBB3657382FF8CBA06"><enum>(b)</enum><header>Loan Fees From

			 Lenders</header>

							<paragraph id="ID689E7A3CE1CA4F2D9902381ED8E13529"><enum>(1)</enum><header>Amendment</header><text>Paragraph

			 (2) of section 438(d)(2) of the <act-name parsable-cite="HEA65">Higher

			 Education Act of 1965</act-name> (20 U.S.C. 1087–1(d)) is amended to read as

			 follows:</text>

								<quoted-block act-name="Higher Education Act of 1965" id="IDC0A611AA9C3543D2A09684C800A7A758" style="OLC">

									<paragraph id="IDF186DDAB3ADA4A16A9CC653B3A3EF667"><enum>(2)</enum><header>Amount of loan

				fees</header>

										<subparagraph id="IDDA327E192C304EC6BDD77E16C767FE23"><enum>(A)</enum><header>In

				general</header><text>Except as provided in subparagraph (B), with respect to

				any loan made under this part for which the first disbursement was made on or

				after October 1, 1993, the amount of the loan fee that shall be deducted under

				paragraph (1) shall be equal to 0.50 percent of the principal amount of the

				loan.</text>

										</subparagraph><subparagraph id="ID7A8DCA89E9BE4FCCAE13917817B967AE"><enum>(B)</enum><header>Consolidation

				loans</header><text>With respect to any loan made under section 428C on or

				after April 1, 2006, the amount of the loan fee that shall be deducted under

				paragraph (1) shall be equal to 1.0 percent of the principal amount of the

				loan.</text>

										</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph><paragraph id="ID760BFB5787E647A6BD9FBF4968E519E9"><enum>(2)</enum><header>Effective

			 date</header><text>The amendment made by paragraph (1) shall apply with respect

			 to any loan made, insured, or guaranteed under part B of title IV of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1071 et seq.) for which the first disbursement is made on or after April

			 1, 2006.</text>

							</paragraph></subsection></section><section id="IDE7F84ED3D0CD4046A74BE27228AADB25"><enum>7116.</enum><header>Origination

			 fee</header><text display-inline="no-display-inline">Section 455(c) of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1087e(c)) is amended—</text>

						<paragraph id="IDAA67FD289D964BCBBB851D07C4B7E78B"><enum>(1)</enum><text>by striking

			 <quote>shall</quote> and inserting <quote>is authorized to</quote>; and</text>

						</paragraph><paragraph id="ID061E15EAF0A445CAA0E2F1B67F551BB1"><enum>(2)</enum><text>by striking

			 <quote>4.0 percent of the principal amount of loan</quote> and inserting

			 <quote>not less than 1 percent and not more than 3 percent of the principal

			 amount of the loan, except that the Secretary shall charge the borrower of a

			 Federal Direct PLUS Loan an origination fee of 4.0 percent of the principal

			 amount of the loan. Beginning on July 1, 2007, the preceding sentence shall be

			 applied by substituting <quote>2.5 percent</quote> for <quote>3

			 percent</quote></quote>.</text>

						</paragraph></section><section id="ID754B06315247424EAFCC1E0597A98E5E"><enum>7117.</enum><header>Income

			 contingent repayment for public sector employees</header><text display-inline="no-display-inline">Section 455(e) of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1087e(e)) is amended by adding at the end the following:</text>

						<quoted-block act-name="Higher Education Act of 1965" id="ID67AECB153F1D4A7E8C2E5C796A040CCC" style="OLC">

							<paragraph id="ID73506020ED704A3E9A495C4E3CA99971"><enum>(7)</enum><header>Repayment plan

				for public sector employees</header>

								<subparagraph id="ID2C990CD6ADB14EBC96A8ECE0D06807CA"><enum>(A)</enum><header>In

				general</header><text>The Secretary shall forgive the balance due on any loan

				made under this part or section 428C(b)(5) for a borrower—</text>

									<clause id="ID08865CD7D465483A8D92055D6DF0730B"><enum>(i)</enum><text>who has made 120

				payments on such loan pursuant to income contingent repayment; and</text>

									</clause><clause id="ID575FE127A8CF4BC397897FB7C6BEE946"><enum>(ii)</enum><text>who is employed,

				and was employed for the 10-year period in which the borrower made the 120

				payments described in clause (i), in a public sector job.</text>

									</clause></subparagraph><subparagraph id="IDC9EFA104C0B844ADADE4127A57E45491"><enum>(B)</enum><header>Public sector

				job</header><text>In this paragraph, the term <term>public sector job</term>

				means a full-time job in emergency management, government, public safety, law

				enforcement, public health, education (including early childhood education), or

				public interest legal services (including prosecution or public

				defense).</text>

								</subparagraph></paragraph><paragraph id="IDA1C8A5FB070C4A619EAB937EB8AEA1C0"><enum>(8)</enum><header>Return to

				standard repayment</header><text>A borrower who is repaying a loan made under

				this part pursuant to income contingent repayment may choose, at any time, to

				terminate repayment pursuant to income contingent repayment and repay such loan

				under the standard repayment

				plan.</text>

							</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</section><section id="ID66456492FE51474786463541B2942BAB"><enum>7118.</enum><header>Family

			 contribution for dependent students</header>

						<subsection id="ID6495FA69331F4415B8D80E1FEAFE57F4"><enum>(a)</enum><header>Amendments</header><text>Section

			 475 of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C. 1087oo) is amended—</text>

							<paragraph id="IDFDD0E6A491074DE9A50C160D97EF0F77"><enum>(1)</enum><text>in subsection

			 (g)(2)(D), by striking <quote>$2,200</quote> and inserting

			 <quote>$3,000</quote>; and</text>

							</paragraph><paragraph id="IDB16A240880354A459750DB7220155008"><enum>(2)</enum><text>in subsection

			 (h), by striking <quote>35</quote> and inserting <quote>20</quote>.</text>

							</paragraph></subsection><subsection id="ID07C9D82DE7544762907CE2F8765D5F59"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendments made by subsection (a) shall apply with

			 respect to determinations of need for periods of enrollment beginning on or

			 after July 1, 2007.</text>

						</subsection></section><section id="ID76ADDBDDDC634D2F97B8543F07DFB68A"><enum>7119.</enum><header>Family

			 contribution for independent students without dependents other than a

			 spouse</header>

						<subsection id="IDF834BAC3E2DA429E97A8C1322ABC4D31"><enum>(a)</enum><header>Amendments</header><text>Section

			 476 of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C.1087pp) is amended—</text>

							<paragraph id="IDD693C95955A84ED5A894C3466E72F9B2"><enum>(1)</enum><text>in subsection

			 (b)(1)(A)(iv)—</text>

								<subparagraph id="ID56837ED88A264C248BE3834345306497"><enum>(A)</enum><text>in subclause (I),

			 by striking <quote>$5,000</quote> and inserting <quote>$6,050</quote>;</text>

								</subparagraph><subparagraph id="IDD1692904659741F6BDFF781CB4EBD014"><enum>(B)</enum><text>in subclause

			 (II), by striking <quote>$5,000</quote> and inserting <quote>$6,050</quote>;

			 and</text>

								</subparagraph><subparagraph id="IDEE50861E9BC14F1680C9AF6F1DB65671"><enum>(C)</enum><text>in subclause

			 (III), by striking <quote>$8,000</quote> and inserting <quote>$9,700</quote>;

			 and</text>

								</subparagraph></paragraph><paragraph id="ID362C055698224A1FA8C38126C46DD3EF"><enum>(2)</enum><text>in subsection

			 (c)(4), by striking <quote>35</quote> and inserting <quote>20</quote>.</text>

							</paragraph></subsection><subsection id="ID8ED7627516D34AC8A7347D930007FBE2"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendments made by subsection (a) shall apply with

			 respect to determinations of need for periods of enrollment beginning on or

			 after July 1, 2007.</text>

						</subsection></section><section id="ID72286C389A4542C1A9DB7FB08F31BFC3"><enum>7120.</enum><header>Family

			 contribution for independent students with dependents other than a

			 spouse</header>

						<subsection id="ID927F5AC0945F4649B78A1682A28075CB"><enum>(a)</enum><header>Amendment</header><text>Section

			 477(c)(4) of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C. 1087qq(c)(4)) is amended by striking

			 <quote>12</quote> and inserting <quote>7</quote>.</text>

						</subsection><subsection id="ID94113E8782F749BBB80506CF0A89101B"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendment made by subsection (a) shall apply with

			 respect to determinations of need for periods of enrollment beginning on or

			 after July 1, 2007.</text>

						</subsection></section><section id="ID0BFC4FBEBC7A4982BE2E30B5495461E4"><enum>7121.</enum><header>Regulations;

			 updated tables</header><text display-inline="no-display-inline">Section 478(b)

			 of the <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name>

			 (20 U.S.C. 1087rr(b)) is amended—</text>

						<paragraph id="IDCDCE7E5FE24F404580CC0E456D299465"><enum>(1)</enum><text>in paragraph (1),

			 by adding at the end the following: <quote>For the 2007–2008 academic year, the

			 Secretary shall revise the tables in accordance with this paragraph, except

			 that the Secretary shall increase the amounts contained in the table in section

			 477(b)(4) by a percentage equal to the greater of the estimated percentage

			 increase in the Consumer Price Index (as determined under the preceding

			 sentence) or 5 percent.</quote>; and</text>

						</paragraph><paragraph id="ID57833D6ECB6447CAAFD0BBFA9034A98E"><enum>(2)</enum><text>in paragraph (2),

			 by striking <quote>2000–2001</quote> and inserting

			 <quote>2007–2008</quote>.</text>

						</paragraph></section><section id="IDD013469FFB7E4A129D823E55616C35CD"><enum>7122.</enum><header>Simplified

			 need test and automatic zero improvements</header>

						<subsection id="IDF9D74F7FF32C4774BE0653DBFBAE9B89"><enum>(a)</enum><header>Amendments</header><text>Section

			 479 of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C. 1087ss) is amended—</text>

							<paragraph id="IDB06B18FD74AA4629851C4F1384EA6246"><enum>(1)</enum><text>in subsection

			 (b)—</text>

								<subparagraph id="ID4E0200E11BA14DC8BE766944D8151FBB"><enum>(A)</enum><text>in paragraph

			 (1)—</text>

									<clause id="IDADD95C0C60854514A7E50B9FA415FF28"><enum>(i)</enum><text>in

			 subparagraph (A), by striking clause (i) and inserting the following:</text>

										<quoted-block id="IDCA0598E0DD984D09867B1195B64EA923" style="OLC">

											<clause id="IDA4597CACF32644B3B252299A1EE52893"><enum>(i)</enum><text>the student’s

				parents—</text>

												<subclause id="ID76D6A4676D734291AC1FBA1F5FA9BDF0"><enum>(I)</enum><text>file, or are

				eligible to file, a form described in paragraph (3);</text>

												</subclause><subclause id="IDA2200AFDF778451693FF289A5AE25241"><enum>(II)</enum><text>certify that the

				parents are not required to file a Federal income tax return; or</text>

												</subclause><subclause id="IDD319F88DB2914C999811C1BFB1B59776"><enum>(III)</enum><text>received, or

				the student received, benefits at some time during the previous 12-month period

				under a means-tested Federal benefit program as defined under subsection (d);

				and</text>

												</subclause></clause><after-quoted-block>;

				and</after-quoted-block></quoted-block>

									</clause><clause id="ID0DB133BE3EA644B18E6C04AD0C589EAD"><enum>(ii)</enum><text>in

			 subparagraph (B), by striking clause (i) and inserting the following:</text>

										<quoted-block id="ID5961687DDBE74AF78A54697DF92EE0B8" style="OLC">

											<clause id="IDCE65E6B43FA4423C825568A596BB3FB6"><enum>(i)</enum><text>the student (and

				the student’s spouse, if any)—</text>

												<subclause id="IDDC60C6BD0430463FAB21338E661DEA18"><enum>(I)</enum><text>files, or is

				eligible to 1 file, a form described in paragraph (3);</text>

												</subclause><subclause id="IDF8DF8519631349B1808872B5A8AC1BEC"><enum>(II)</enum><text>certifies that

				the student (and the student’s spouse, if any) is not required to file a

				Federal income tax return; or</text>

												</subclause><subclause id="ID43B511A4C01F45C5B64999C398425C77"><enum>(III)</enum><text>received

				benefits at some time during the previous 12-month period under a means-tested

				Federal benefit program as defined under subsection (d);

				and</text>

												</subclause></clause><after-quoted-block>;

				and</after-quoted-block></quoted-block>

									</clause></subparagraph><subparagraph id="ID4AD0B66E22FC48718C49B2D58DE9B47E"><enum>(B)</enum><text>in the matter

			 preceding subparagraph (A) of paragraph (3), by striking <quote>A student or

			 family files a form described in this subsection, or subsection (c), as the

			 case maybe, if the student or family, respectively, files</quote> and inserting

			 <quote>In the case of an independent student, the student, or in the case of a

			 dependent student, the family, files a form described in this subsection, or

			 subsection (c), as the case may be, if the student or family, as appropriate,

			 files</quote>;</text>

								</subparagraph></paragraph><paragraph id="ID23AF8908BD0C41F19584EA6D1B4A8EBC"><enum>(2)</enum><text>in subsection

			 (c)—</text>

								<subparagraph id="ID9E5F441BC2AF4763BC337E8589E6E938"><enum>(A)</enum><text>in paragraph

			 (1)—</text>

									<clause id="ID9E20992DBAEE467EA8C89277469577A6"><enum>(i)</enum><text>by

			 striking subparagraph (A) and inserting the following:</text>

										<quoted-block id="IDC499308A9A6F4C32B6614EF4FADE97D8" style="OLC">

											<subparagraph id="IDF589417803184AB4A78E962EE3DF9D90"><enum>(A)</enum><text>the student’s

				parents—</text>

												<clause id="ID27F6469EB90543B7AA48CB9CB1D73EF8"><enum>(i)</enum><text>file, or are

				eligible to file, a form described in subsection (b)(3);</text>

												</clause><clause id="IDB40557FC2C20468896C82DEE17D8E3B6"><enum>(ii)</enum><text>certify that the

				parents are not required to file a Federal income tax return; or</text>

												</clause><clause id="ID839085652B894EFC871FC4315A62AB49"><enum>(iii)</enum><text>received, or

				the student received, benefits at some time during the previous 12-month period

				under a means-tested Federal benefit program as defined under subsection (d);

				and</text>

												</clause></subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

									</clause><clause id="IDD62142C971F64017AC1D25F24BF98529"><enum>(ii)</enum><text>by

			 striking subparagraph (B) and inserting the following:</text>

										<quoted-block id="IDD9DF893CA2F84B2CB7F458B24295743D" style="OLC">

											<subparagraph id="IDEFE5971CF9B94C2590FB07ECC02AD151"><enum>(B)</enum><text>the sum of the

				adjusted gross income of the parents is less than or equal to $20,000;

				or</text>

											</subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block>

									</clause></subparagraph><subparagraph id="IDBF7CAFF1FD4941969F38D2BFA84B2AE3"><enum>(B)</enum><text>in paragraph

			 (2)—</text>

									<clause id="IDF13298DA210746B8AC2C561E17545690"><enum>(i)</enum><text>by

			 striking subparagraph (A) and inserting the following:</text>

										<quoted-block id="IDD4588E4B4C5E416C84E8560B001B57A9" style="OLC">

											<subparagraph id="IDCAB861E3C6F64E48A16C9EB634DC2540"><enum>(A)</enum><text>the student (and

				the student’s spouse, if any)—</text>

												<clause id="ID34CD0B94AA5944118DE717B8191FD5F8"><enum>(i)</enum><text>files, or is

				eligible to file, a form described in subsection (b)(3);</text>

												</clause><clause id="ID43415A2201FE4A678B41381A91F375D8"><enum>(ii)</enum><text>certifies that

				the student (and the student’s spouse, if any) is not required to file a

				Federal income tax return; or</text>

												</clause><clause id="ID3226C432EF6643E3BFFBE7AAECE5E33B"><enum>(iii)</enum><text>received

				benefits at some time during the previous 12-month period under a means-tested

				Federal benefit program as defined under subsection (d);

				and</text>

												</clause></subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

									</clause><clause id="ID84014D5C703C402BB5BF00DAE094F0CA"><enum>(ii)</enum><text>by

			 striking subparagraph (B) and inserting the following:</text>

										<quoted-block id="IDD0A8100B1E754C36A330055BA1896BFC" style="OLC">

											<subparagraph id="IDF4FD2D342FEB44F8825E60186F2F891B"><enum>(B)</enum><text>the sum of the

				adjusted gross income of the student and spouse (if appropriate) is less than

				or equal to $20,000.</text>

											</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

									</clause></subparagraph></paragraph><paragraph id="IDF98FE7593FFF4285AEC3F974900497B9"><enum>(3)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="ID7E7A741B4CEE48808938681FDFD2A57A" style="OLC">

									<subsection id="ID76262C31000B4E2E833B58EFC3F50BBC"><enum>(d)</enum><header>Definitions</header><text>In

				this section:</text>

										<paragraph id="ID20DD1F0A3B1E43418C32010676186690"><enum>(1)</enum><header>Means-tested

				federal benefit program</header><text>In this section, the term

				<term>means-tested Federal benefit program</term> means a mandatory spending

				program of the Federal Government, other than a program under this title, in

				which eligibility for the program’s benefits, or the amount of such benefits,

				are determined on the basis of income or resources of the individual or family

				seeking the benefit, and may include such programs as—</text>

											<subparagraph id="IDD5A4D25DB1804C73B6E5CE5EED9D2BD9"><enum>(A)</enum><text>the supplemental

				security income program under title XVI of the <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C. 1381 et

				seq.);</text>

											</subparagraph><subparagraph id="ID2531BAE3A2FB42D986E4F45A449B9C80"><enum>(B)</enum><text>the food stamp

				program under the <act-name parsable-cite="FSA77">Food Stamp Act of

				1977</act-name> (7 U.S.C. 2011 et seq.);</text>

											</subparagraph><subparagraph id="ID614CA53041344322BFD4777763CF6BB0"><enum>(C)</enum><text>the free and

				reduced price school lunch program established under the Richard B. Russell

				<act-name parsable-cite="NSLA">National School Lunch Act</act-name> (42 U.S.C.

				1751 et seq.);</text>

											</subparagraph><subparagraph id="ID79DB2F6735A3433E90C00827314D043F"><enum>(D)</enum><text>the program of

				block grants for States for temporary assistance for needy families established

				under part A of title IV of the <act-name parsable-cite="SSA">Social Security

				Act</act-name> (42 U.S.C. 601 et seq.);</text>

											</subparagraph><subparagraph id="IDCF8D184E9C7E4EE99F89D92ABC4347F8"><enum>(E)</enum><text>the special

				supplemental nutrition program for women, infants, and children established by

				section 17 of the <act-name parsable-cite="CNA66">Child Nutrition Act of

				1966</act-name> (42 U.S.C. 1786); and</text>

											</subparagraph><subparagraph id="ID2C59276C7EC447E298FD067921D166F6"><enum>(F)</enum><text>other programs

				identified by the

				Secretary.</text>

											</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></subsection><subsection id="IDE24AEBA6D33B4C6594AE2D65E200F8F6"><enum>(b)</enum><header>Evaluation of

			 simplified needs test</header>

							<paragraph id="IDEE564F790994494C89428E985F701CF6"><enum>(1)</enum><header>Eligibility

			 guidelines</header><text>The Secretary of Education shall regularly evaluate

			 the impact of the eligibility guidelines in subsections (b)(1)(A)(i),

			 (b)(1)(B)(i), (c)(1)(A), and (c)(2)(A) of section 479 of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1087ss(b)(1)(A)(i), (b)(1)(B)(i), (c)(1)(A), and (c)(2)(A)).</text>

							</paragraph><paragraph id="IDDB68D8162C304857950FED090D1B165D"><enum>(2)</enum><header>Means-tested

			 federal benefit program</header><text>For each 3-year period, the Secretary of

			 Education shall evaluate the impact of including the receipt of benefits by a

			 student or parent under a means-tested Federal benefit program (as defined in

			 section 479(d) of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C. 1087ss(d)) as a factor in determining eligibility

			 under subsections (b) and (c) of section 479 of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1087ss(b) and (c)).</text>

							</paragraph></subsection></section><section id="ID9B7462FC29AA4D808953CB6C07D4DA75"><enum>7123.</enum><header>Loan

			 forgiveness for teachers</header><text display-inline="no-display-inline">Section 3(b)(3) of the Taxpayer-Teacher

			 Protection Act of 2004 (20 U.S.C. 1078–10 note) is amended by striking <quote>,

			 and before October 1, 2005</quote>.</text>

					</section><section id="ID309BDB6212D249CBB7D8685D68249DAC"><enum>7124.</enum><header>Effective

			 date</header><text display-inline="no-display-inline">Except as otherwise

			 provided in this chapter or the amendments made by this chapter, the amendments

			 made by this chapter shall take effect on July 1, 2006.</text>

					</section></chapter><chapter id="ID5C03C4DAD02B4D1998224D207BE99DCC"><enum>2</enum><header>HURRICANE KATRINA

			 HIGHER EDUCATION RECOVERY</header>

					<section id="IDD71CC11E39264763AAAA304D1E2F61AA"><enum>7151.</enum><header>Short

			 title</header><text display-inline="no-display-inline">This chapter may be

			 cited as the <quote>Hurricane Katrina Higher Education Recovery

			 Act</quote>.</text>

					</section><section id="ID68057E6F7B474D188E5C6130B1CED560"><enum>7152.</enum><header>Definitions</header><text display-inline="no-display-inline">In this chapter:</text>

						<paragraph id="ID76F02822D58F48CEA824718FF3F8A72D"><enum>(1)</enum><header>Affected

			 borrower</header><text>The term <term>affected borrower</term> means an

			 individual who—</text>

							<subparagraph id="ID1A1C5CF2EB9F41B2AB100079579FED98"><enum>(A)</enum><text>was in repayment,

			 but not in deferment, on a loan made, insured, or guaranteed under part B, D,

			 or E of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C. 1071 et seq., 1087a et seq., 1087aa et seq.) on

			 August 22, 2005, or enters or entered repayment after August 22, 2005 and

			 before June 30, 2006; and</text>

							</subparagraph><subparagraph id="ID26592AEA1C4345FE9F7A15004DA035C0"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="ID1C6EBF08E0064C02AA45B9DE76214296"><enum>(i)</enum><text>lives or lived, as of

			 August 22, 2005, in a county or parish of Alabama, Louisiana, or

			 Mississippi—</text>

									<subclause id="IDDA1D405B726C4E728925FCE6515573C5" indent="up1"><enum>(I)</enum><text>in which a major disaster has been

			 declared in accordance with section 401 of the Robert T. Stafford Disaster

			 Relief and Emergency Assistance Act (42 U.S.C. 5170) as a result of Hurricane

			 Katrina; and</text>

									</subclause><subclause id="ID60E6AFF31FD64E99AB0E3DB1D7FE0B5F" indent="up1"><enum>(II)</enum><text>which the President has determined

			 warrants individual assistance from the Federal Government; or</text>

									</subclause></clause><clause id="ID7BE7A1CC989248898F54BDC4BF416B01" indent="up1"><enum>(ii)</enum><text>worked, as of August 22, 2005, in

			 a county or parish described in clause (i).</text>

								</clause></subparagraph></paragraph><paragraph id="ID48EC3E78711F452D9C49DC9543C4FABE"><enum>(2)</enum><header>Affected

			 institution</header>

							<subparagraph id="ID884A7C266553400193B547F5BA6A968C"><enum>(A)</enum><header>In

			 general</header><text>The term <term>affected institution</term> means an

			 institution of higher education, as defined in section 101 or 102 of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1001, 1002), that—</text>

								<clause id="IDB9F5BA72A79B44E8A2D52AEDC9038982"><enum>(i)</enum><text>is

			 located in an area in which a major disaster has been declared in accordance

			 with section 401 of the Robert T. Stafford Disaster Relief and Emergency

			 Assistance Act due to the effects of Hurricane Katrina; and</text>

								</clause><clause id="ID561C93A8B659449A99DD846E6B1B2161"><enum>(ii)</enum><text>is

			 impacted by Hurricane Katrina.</text>

								</clause></subparagraph><subparagraph id="ID162EFBCDF4F042DEA40649EEC868E08C"><enum>(B)</enum><header>Length of

			 time</header><text>In determining eligibility for assistance under this

			 chapter, the Secretary, using consistent, objective criteria, shall determine

			 the time period for which an institution of higher education is an affected

			 institution.</text>

							</subparagraph><subparagraph id="IDA8729C83C8FA4147A84993BE881CE222"><enum>(C)</enum><header>Special

			 rule</header><text>An organizational unit of an affected institution that is

			 not impacted by Hurricane Katrina shall not be considered as part of such

			 affected institution for purposes of receiving assistance under this

			 chapter.</text>

							</subparagraph></paragraph><paragraph id="IDF2D97BB6AF2141E08DCBA5204A87F411"><enum>(3)</enum><header>Affected

			 student</header><text>The term <term>affected student</term> means a student

			 who was enrolled on August 29, 2005 in an affected institution.</text>

						</paragraph><paragraph id="ID3E2D491D97934459A06F0818DD1EE4CA"><enum>(4)</enum><header>Distance

			 education</header>

							<subparagraph id="IDBFC5FCC22D5E42F480AEB76C65408D66"><enum>(A)</enum><header>In

			 general</header><text>The term <term>distance education</term> means a course

			 or program that uses 1 or more of the technologies described in subparagraph

			 (B) to—</text>

								<clause id="IDF8130AAE81574075A32DA5E74B7FF8A1"><enum>(i)</enum><text>deliver

			 instruction to students who are separated from the instructor; and</text>

								</clause><clause id="ID70828CC63E404841931F88E3EB705FA4"><enum>(ii)</enum><text>support regular

			 and substantive interaction between the students and the instructor, either

			 synchronously or asynchronously.</text>

								</clause></subparagraph><subparagraph id="ID42E376A9D68F43288FB2548934DEEAFF"><enum>(B)</enum><header>Inclusions</header><text>For

			 the purposes of subparagraph (A), the technologies used may include—</text>

								<clause id="ID7C9F3983E2314F08A91FA44F13945710"><enum>(i)</enum><text>the

			 Internet;</text>

								</clause><clause id="IDA617F383EF724B6E9D96BC46506DBE9E"><enum>(ii)</enum><text>one-way and

			 two-way transmissions through open broadcast, closed circuit, cable, microwave,

			 broadband lines, fiber optics, satellite, or wireless communications

			 devices;</text>

								</clause><clause id="IDD93E342E4DBD4B9AB2F2F131CBFB1CDC"><enum>(iii)</enum><text>audio

			 conferencing; or</text>

								</clause><clause id="IDDAE79F2604814FA98B33B9D20E82F9CF"><enum>(iv)</enum><text>video cassette,

			 DVDs, and CD–ROMs, provided that they are used in a course in conjunction with

			 the technologies listed in clauses (i) through (iii).</text>

								</clause></subparagraph></paragraph><paragraph id="IDBBBB0F76BF7847068E3C007BE7C45F54"><enum>(5)</enum><header>Secretary</header><text>The

			 term <term>Secretary</term> means the Secretary of Education.</text>

						</paragraph></section><section id="ID8AAFD4F95DDA4F3C85D7B75D75EED89F"><enum>7153.</enum><header>Waiver

			 authority and modifications to certain provisions of the

			 <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name></header>

						<subsection id="ID3784225A1BE64A328CBCCE17ADF446A0"><enum>(a)</enum><header>Waiver of

			 Institutional Repayment</header><text>Notwithstanding any other provision of

			 law, including requirements related to cash management, an affected institution

			 shall not be required to return any funds received by the affected institution

			 for, or on behalf of, its students under subparts 1 and 3 of part A and parts

			 B, C, D, and E of title IV of the <act-name parsable-cite="HEA65">Higher

			 Education Act of 1965</act-name> (20 U.S.C. 1070, 1070b et seq., 1071 et seq.,

			 1087a et seq., 1087aa et seq., 42 U.S.C. 2751 et seq.) during the 2005–2006

			 academic year.</text>

						</subsection><subsection id="ID98046CF999194981B32678A76F9E3147"><enum>(b)</enum><header>Waiver of

			 Student Return of Assistance</header><text>Notwithstanding any other provision

			 of law, an affected student who, as of the date of enactment of this Act,

			 received assistance under subpart 1 or 3 of part A or parts B, C, D, or E of

			 title IV of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> for attendance at an affected institution of higher education

			 during the 2005–2006 academic year, shall not be required to return such

			 assistance.</text>

						</subsection><subsection id="ID90DDF1257DE64BF89B006A918485F005"><enum>(c)</enum><header>Affected

			 Students Who Do Not Enroll in Another Institution and Borrowers in Grace

			 Periods or Deferment</header><text>With respect to a loan made, insured, or

			 guaranteed under part B, D, or E of title IV of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1071 et seq., 1087a et seq., 1087aa et seq.)—</text>

							<paragraph id="ID616816D78E89419C81B17760D18DECBD"><enum>(1)</enum><text>an affected

			 student who does not enroll in another institution of higher education shall be

			 retained in in-school status during the period beginning on August 22, 2005,

			 and ending on June 30, 2006; and</text>

							</paragraph><paragraph id="ID7236472D77254C349BB86ECA0863A068"><enum>(2)</enum><text>a borrower in a

			 grace period or in deferment as of August 22, 2005 who satisfies the

			 requirement described in clause (i) or clause (ii) of section 201(1)(B) shall

			 be retained in such status, without documentation or action by the borrower,

			 until June 30, 2006.</text>

							</paragraph></subsection><subsection id="ID88AAD29A4AC347DC84E460A94651B23B"><enum>(d)</enum><header>Discharge or

			 Cancellation of Loans</header><text>The Secretary shall—</text>

							<paragraph id="IDABAC689617C243DDA06655AFA43F190B"><enum>(1)</enum><text>discharge all

			 loan amounts under parts B and D of title IV of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1071 et seq., 1087a et seq.) disbursed to, or on behalf of, an affected

			 student for attendance at an affected institution of higher education during

			 the 2005–2006 academic year;</text>

							</paragraph><paragraph id="ID88B1864376AB41E3B8A3BD1EE1BAF23C"><enum>(2)</enum><text>reimburse lenders

			 for the purpose of discharging any loan amounts disbursed to, or on behalf of,

			 a student under part B of title IV of the <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20 U.S.C. 1071

			 et seq.), for attendance at an affected institution of higher education during

			 the 2005–2006 academic year; and</text>

							</paragraph><paragraph id="IDD9992C3E38A244FCA78B86A9C4D27372"><enum>(3)</enum><text>cancel any loan

			 under part E of title IV of the <act-name parsable-cite="HEA65">Higher

			 Education Act of 1965</act-name> (20 U.S.C. 1087aa et seq.) disbursed to a

			 student for attendance at an affected institution of higher education during

			 the 2005–2006 academic year.</text>

							</paragraph></subsection><subsection id="IDAC66BCB449B340DE9F547241CBFA9AEA"><enum>(e)</enum><header>Aggregate and

			 Annual Limits</header><text>In the case of an affected student, any grant or

			 loan assistance under title IV of the <act-name parsable-cite="HEA65">Higher

			 Education Act of 1965</act-name> (20 U.S.C. 1070 et seq.) that such student

			 received, or was to have received, for a program of study at an affected

			 institution of higher education during the 2005–2006 academic year shall not

			 count against such student’s annual or aggregate grant or loan limits for

			 receipt of aid under such title.</text>

						</subsection><subsection id="IDD0A6A5626F0D4594B7E311AE151C7AF9"><enum>(f)</enum><header>Forbearance</header><text>Notwithstanding

			 the provisions of part B, D, or E of title IV of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1071 et seq., 1087a et seq., 1087aa et seq.), a lender, the Secretary,

			 or an institution of higher education is authorized to provide not more than 1

			 year of forbearance to an affected borrower without documentation.</text>

						</subsection><subsection id="ID815CAB06EAEC41FE9686283B1F22EA5A"><enum>(g)</enum><header>Professional

			 Judgment</header><text>A financial aid administrator shall be considered to be

			 making an adjustment in accordance with section 479A(a) of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1087tt(a)) if the financial aid administrator makes the adjustment with

			 respect to the calculation of the expected student or parent contribution (or

			 both) for an affected student, or for a student or a parent who resides or

			 resided on August 22, 2005, or was employed on August 22, 2005, in an area in

			 which a major disaster has been declared in accordance with section 401 of the

			 Robert T. Stafford Disaster Relief and Emergency Assistance Act due to the

			 effects of Hurricane Katrina. The financial aid administrator shall adequately

			 document the need for the adjustment.</text>

						</subsection><subsection id="ID9FC1AFEDFA9445A98CF76927F31B6CF4"><enum>(h)</enum><header>Modification of

			 Part <enum-in-header>A</enum-in-header> of Title

			 <enum-in-header>II</enum-in-header> Grants Authorized</header><text>The

			 Secretary is authorized to approve modifications to the requirements for

			 Teacher Quality Enhancement Grants for States and Partnerships under part A of

			 title II of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C. 1021 et seq.), at the request of the grantee—</text>

							<paragraph id="ID4B9B675DD47D408AA50180A0C59F6EEA"><enum>(1)</enum><text>to assist States

			 and local educational agencies to recruit and retain highly qualified teachers

			 in a school district located in an area in which a major disaster has been

			 declared in accordance with section 401 of the Robert T. Stafford Disaster

			 Relief and Emergency Assistance Act due to the effects of Hurricane Katrina;

			 and</text>

							</paragraph><paragraph id="ID27B42E66F809482289F10483C5D9766A"><enum>(2)</enum><text>to assist

			 institutions of higher education, as defined in section 101 of such Act (20

			 U.S.C. 1001), located in such area to recruit and retain faculty necessary to

			 prepare teachers and provide professional development.</text>

							</paragraph></subsection><subsection id="ID9902F1134E734D6CBB6457530FA53225"><enum>(i)</enum><header>Waiver

			 Authority To Modify Authorized Uses of TRIO, GEAR-UP, Part

			 <enum-in-header>A</enum-in-header> or B of Title III, and Other

			 Grants</header><text>The Secretary is authorized to modify the required and

			 allowable uses of funds under chapters 1 and 2 of subpart 2 of part A of title

			 IV of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C. 1070a et seq., 1070a–21 et seq.), under part A or B

			 of title III (20 U.S.C. 1057 et seq., 1060 et seq.), and under any other

			 competitive grant program, at the request of an affected institution or other

			 grantee, with respect to affected institutions and other grantees located in an

			 area in which a major disaster has been declared in accordance with section 401

			 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act due to

			 the effects of Hurricane Katrina.</text>

						</subsection><subsection id="ID38E63AD969734DDF8203421959EAE80A"><enum>(j)</enum><header>Authority To

			 Extend or Waive Reporting Requirements Under Section

			 <enum-in-header>131(a)</enum-in-header></header><text>The Secretary is

			 authorized to extend reporting deadlines or waive reporting requirements under

			 section 131(a) of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (20 U.S.C. 1015(a)) for an affected institution.</text>

						</subsection><subsection id="ID7BA765079CDC4C34816360AC9EF7723E"><enum>(k)</enum><header>Distance

			 Education</header><text>The Secretary may waive the restrictions of

			 subparagraphs (A) and (B) of section 102(a)(3) of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1002(a)(3)(A) and (B)) with respect to an institution of higher

			 education, other than a foreign institution, that offers education or training

			 programs through distance education and is otherwise eligible to participate in

			 programs authorized under title IV of such Act (20 U.S.C. 1070 et seq.), if

			 such institution exceeds such restrictions described in such subparagraphs due

			 to the enrollment of affected students.</text>

						</subsection></section><section id="ID623B63A9906C4862A0716976B91E5792"><enum>7154.</enum><header>General

			 waiver authority and required consultation</header>

						<subsection id="IDFFAA84E6E0AD4990842EAF3A395922EC"><enum>(a)</enum><header>Waiver

			 Authority</header>

							<paragraph id="ID292F46AA105A4ACEABC5A6AC8B8EE194"><enum>(1)</enum><header>In

			 general</header><text>Notwithstanding any other provision of law, the Secretary

			 may waive or modify any statutory provision of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1001 et seq.) or any regulation implementing such Act as the Secretary

			 determines necessary in connection with a major disaster that has been declared

			 in accordance with section 401 of the Robert T. Stafford Disaster Relief and

			 Emergency Assistance Act due to the effects of Hurricane Katrina.</text>

							</paragraph><paragraph id="IDC939A35A844C4540B8838A9A2E8EABEA"><enum>(2)</enum><header>Actions

			 authorized</header><text>In carrying out paragraph (1), the Secretary is

			 authorized to waive or modify any provision described in paragraph (1) as the

			 Secretary determines necessary to ensure that—</text>

								<subparagraph id="IDC17A9F9A7D2B41CC984D978190A0D29F"><enum>(A)</enum><text>administrative

			 requirements placed on affected students, affected borrowers, institutions of

			 higher education, lenders, guaranty agencies and grantees are minimized to the

			 extent possible without impairing the integrity of the higher education

			 programs under the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name>, to ease the burden on such participants; or</text>

								</subparagraph><subparagraph id="IDA266FFE2E8634555AEB26CC0F6066DFF"><enum>(B)</enum><text>institutions of

			 higher education, lenders, guaranty agencies, and other entities participating

			 in the student financial assistance programs under title IV of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1070 et seq.), that serve an area in which a major disaster has been

			 declared in accordance with section 401 of the Robert T. Stafford Disaster

			 Relief and Emergency Assistance Act due to the effects of Hurricane Katrina,

			 may be granted temporary relief from requirements that are rendered infeasible

			 or unreasonable due to the effects of Hurricane Katrina, including due

			 diligence requirements and reporting deadlines.</text>

								</subparagraph></paragraph></subsection><subsection id="ID462D24B6B374403588779EDE6E57A1B6"><enum>(b)</enum><header>Construction</header><text>Nothing

			 in this section shall be construed to allow the Secretary to waive or modify

			 any applicable statutory or regulatory requirements prohibiting discrimination

			 in a program or activity, or in employment or contracting, under existing law

			 (in existence on the date of the Secretary’s action).</text>

						</subsection><subsection id="IDEA8CB6D64D234B7585DA053A0BA8771B"><enum>(c)</enum><header>Consultation</header><text>Prior

			 to granting any waiver or modification under this section, the Secretary shall

			 consult with the Committee on Health, Education, Labor, and Pensions and the

			 Committee on Appropriations of the Senate and the Committee on Education and

			 the Workforce and the Committee on Appropriations of the House of

			 Representatives with respect to waivers or modifications under this

			 section.</text>

						</subsection></section><section id="ID36DA68955E254724A0D0074CA5A7B6C2"><enum>7155.</enum><header>Notice of

			 waivers, modifications, or extensions</header><text display-inline="no-display-inline">Notwithstanding section 437 of the General

			 Education Provisions Act (20 U.S.C. 1232) and section 553 of title 5, United

			 States Code, the Secretary shall make publicly available the waivers,

			 modifications, or extensions granted under section 7153 or 7154.</text>

					</section><section id="IDE3B68B8F7D7C46C2A09DC4CC2D6C67CF"><enum>7156.</enum><header>Regulatory

			 requirements inapplicable</header><text display-inline="no-display-inline">Sections 482(c) and 492 of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1089(c), 1098a), section 437 of the General Education Provisions Act (20

			 U.S.C. 1232), and section 553 of title 5, United States Code, shall not apply

			 to this chapter.</text>

					</section><section id="IDE44CD3DA82534CBE9EAE5D23AAD6099D"><enum>7157.</enum><header>Department of

			 Education Inspector General audit and report</header>

						<subsection id="IDBCB770F247624867BACF0BAA83690E49"><enum>(a)</enum><header>In

			 General</header><text>The Inspector General of the Department of Education

			 (referred to in this section as the <quote>Inspector General</quote>) shall

			 conduct an audit and investigation of each program carried out by the

			 Department of Education that includes response and recovery activities related

			 to Hurricane Katrina.</text>

						</subsection><subsection id="IDE3F2E6BCA28C4FCD82E8346224DCE6CD"><enum>(b)</enum><header>Weekly

			 Report</header><text>Not less frequently than once a week, the Inspector

			 General shall provide a report to the Committee on Health, Education, Labor,

			 and Pensions and the Committee on Appropriations of the Senate and the

			 Committee on Education and the Workforce and the Committee on Appropriations of

			 the House of Representatives listing the audits and investigations initiated

			 pursuant to subsection (a).</text>

						</subsection><subsection id="IDF1FC157751734057B83350F4E50D68EC"><enum>(c)</enum><header>Status

			 Report</header><text>Not later than 6 months after the date of enactment of

			 this Act, and biannually thereafter until the audits and investigations

			 described in subsection (a) are complete, the Inspector General shall report to

			 the Committee on Health, Education, Labor, and Pensions and the Committee on

			 Appropriations of the Senate and the Committee on Education and the Workforce

			 and the Committee on Appropriations of the House of Representatives on the full

			 status of the activities of the Inspector General under this section.</text>

						</subsection><subsection id="IDCEBB75E824AC45F7862E94C9DD1E8816"><enum>(d)</enum><header>Cooperative

			 Ventures</header><text>In carrying out this section, the Inspector General is

			 encouraged to enter into cooperative ventures with Inspectors General of other

			 Federal agencies.</text>

						</subsection></section><section id="ID1F3C557248094994A3508BD9BEF881F6"><enum>7158.</enum><header>Sunset

			 provision</header><text display-inline="no-display-inline">Except as otherwise

			 provided in this chapter, the provisions of this chapter shall be effective for

			 the period beginning on the date of enactment of this Act and ending on

			 September 30, 2006.</text>

					</section></chapter></subtitle><subtitle id="IDC18283A3FA4147DF85F7395FA2874C84"><enum>B</enum><header>Pension Benefit

			 Guaranty Corporation Premiums</header>

				<section id="IDA42634193615429A80DF6362C47A7CE3"><enum>7201.</enum><header>Amendments to

			 the <act-name parsable-cite="ERISA">Employee Retirement Income Security Act of

			 1974</act-name></header>

					<subsection id="ID877F06C2F3B842A2BB9071B8848206FB"><enum>(a)</enum><header>Flat-Rate

			 Premiums</header>

						<paragraph id="ID918188A3EC8B4D91B0DBAC5C1FC68CD0"><enum>(1)</enum><header>Single-employer

			 plans</header><text>Section 4006(a)(3)(A)(i) of the

			 <act-name parsable-cite="ERISA">Employee Retirement Income Security Act of

			 1974</act-name> (29 U.S.C. 1306(a)(3)(A)(i)) is amended to read as

			 follows:</text>

							<quoted-block act-name="Employee Retirement Income Security Act of 1974" id="ID38BF49B0F7B2498C857281195D1A509F" style="OLC">

								<clause id="ID393A4F5A24714E48B17A80BEFD179435" indent="up2"><enum>(i)</enum><text>in the case of a single-employer plan,

				an amount equal to—</text>

									<subclause id="ID825822B4A41A4E31955EF0EA45D3D651"><enum>(I)</enum><text>for plan years beginning after

				December 31, 1990, and before January 1, 2006, $19, or</text>

									</subclause><subclause id="ID622576AA390842F6ADC20DA02BBB8660"><enum>(II)</enum><text>except as provided in subparagraph

				(F), for plan years beginning after December 31, 2005, $46.75,</text>

									</subclause></clause><paragraph id="ID5D2A0599019C4B6A9BCA505C5A97DB7D"><enum></enum><text>plus the

				additional premium (if any) determined under subparagraph (E) for each

				individual who is a participant in such plan during the plan

				year;</text>

								</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph><paragraph id="ID6B95A593962D4D788C2FBF1D99289B63"><enum>(2)</enum><header>Multiemployer

			 plans</header><text>Section 4006(a)(3)(A) of such Act (29 U.S.C. 1306(a)(3)(A))

			 is amended—</text>

							<subparagraph id="ID4C33C3F298FB4742AA639FD58DCD1332"><enum>(A)</enum><text>in clause (iii),

			 by—</text>

								<clause id="ID3EA6AE45BDE44AE794B82BE920B4CCE6"><enum>(i)</enum><text>inserting

			 <quote>and before January 1, 2006,</quote> after <quote>Act of 1980,</quote>;

			 and</text>

								</clause><clause id="ID495A40EED57346CF9A2CA5F53D7F4CA7"><enum>(ii)</enum><text>striking the

			 period at the end and inserting <quote>, or</quote>; and</text>

								</clause></subparagraph><subparagraph id="ID201EE3397E9D44A08AF751BBC3B9A1FF"><enum>(B)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="IDD8C29161781043FBA1F8A72919A6754B" style="OLC">

									<clause id="ID1A16E39718094CE199E585311D4FF5F8"><enum>(iv)</enum><text>in the case of a

				multiemployer plan an amount equal to the following for each individual who is

				a participant in such plan during the applicable plan year:</text>

										<subclause id="ID428ABB97501B4750A6990A57DEF33831"><enum>(I)</enum><text>$8.00 for plan

				years beginning in 2006.</text>

										</subclause><subclause id="ID8F2B82079B384416BA2F4BDAAE43E28B"><enum>(II)</enum><text>For plan years

				after December 31, 2006, the amount determined under subparagraph

				(G).</text>

										</subclause></clause><after-quoted-block></after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="ID4F2951EFB8AD4C8EA07403D21C44F1C6"><enum>(3)</enum><header>Indexing of

			 flat-rate premiums</header>

							<subparagraph id="ID74E15682E8AF47FD9E33F9372C25E011"><enum>(A)</enum><header>Single-employer

			 premiums</header><text>Section 4006(a)(3) of such Act (29 U.S.C. 1306(a)(3)),

			 as amended by this Act, is amended by adding at the end the following:</text>

								<quoted-block id="ID0D7D7732746F405685601DC711A5A81D" style="OLC">

									<subparagraph id="ID6393197EC9504F92828D17E7B290E872"><enum>(F)</enum><header>Indexing of

				single-employer flat-rate premiums</header>

										<clause id="IDCA367C56D3A946A3A413B4A5035AE3F4"><enum>(i)</enum><header>In

				general</header><text>In the case of any plan year beginning after 2006, the

				adjusted amount under clause (ii) shall be substituted for the dollar amount

				under clause (i)(II) of subparagraph (A), if such adjusted amount is greater

				than such dollar amount.</text>

										</clause><clause id="ID058260E5FD594EA7BF86C437D6B4E096"><enum>(ii)</enum><header>Adjusted

				amount</header><text>The adjusted amount for the dollar amount in clause

				(i)(II) of subparagraph (A) for any plan year is the product derived by

				multiplying such dollar amount by the ratio of—</text>

											<subclause id="IDE9FBBAA95CD94F5FA380193B807049B6"><enum>(I)</enum><text>the national

				average wage index (as defined in section 209(k)(1) of the

				<act-name parsable-cite="SSA">Social Security Act</act-name>) for the first of

				the 2 calendar years preceding the calendar year in which the plan year begins,

				to</text>

											</subclause><subclause id="IDE92608B2385D4586A5FF51517EC43587"><enum>(II)</enum><text>the national

				average wage index (as so defined) for 2004.</text>

											</subclause><continuation-text continuation-text-level="clause">If the amount

				determined under this clause is not a multiple of $1, such product shall be

				rounded to the nearest multiple of

				$1.</continuation-text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="ID57E27E3FD7E74C4E9350103B1F4BB80D"><enum>(B)</enum><header>Multiemployer

			 premiums</header><text>Section 4006(a)(3) of such Act (29 U.S.C. 1306(a)(3)),

			 as amended by this Act, is amended by adding at the end the following:</text>

								<quoted-block id="ID91124E463D1540499E6B46F11B54161F" style="OLC">

									<subparagraph id="IDEEC418DA0ADE429AB8F9E9E046590952"><enum>(G)</enum><header>Indexing of

				multiemployer flat-rate premiums</header><text>The amount determined under this

				subparagraph is the product derived by multiplying $8.00 by the ratio

				of—</text>

										<clause id="ID790F5C63BF874E25852B6005F1867C42"><enum>(i)</enum><text>the national

				average wage index (as defined in section 209(k)(1) of the

				<act-name parsable-cite="SSA">Social Security Act</act-name>) for the first of

				the 2 calendar years preceding the calendar year in which the plan year begins,

				to</text>

										</clause><clause id="ID0784BE0861CA454980EF2191DF27A25B"><enum>(ii)</enum><text>the national

				average wage index (as defined in subparagraph (F)) for 2004.</text>

										</clause><continuation-text continuation-text-level="subparagraph">If the

				amount determined under this clause is not a multiple of $1, such product shall

				be rounded to the nearest multiple of

				$1.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph></subsection><subsection id="ID7EA73A3B4C9F40BD81FA5EE02770A289"><enum>(b)</enum><header>Premium Rate

			 for Certain Terminated Single-Employer Plans</header><text>Section 4006(a) of

			 such Act (29 U.S.C. 1306(a)) is amended by adding at the end the

			 following:</text>

						<quoted-block id="ID39E43D9DE95541DD9C1D037A38987A04" style="OLC">

							<paragraph id="ID82C8F6AD74C94829AB8643F810BBA3B6"><enum>(7)</enum><header>Premium rate

				for certain terminated single-employer plans</header>

								<subparagraph id="ID8E7A47C0BBF74ECCB2A94FACD5D26841"><enum>(A)</enum><header>In

				general</header><text>If there is a termination of a single-employer plan under

				clause (ii) or (iii) of section 4041(c)(2)(B) or section 4042, there shall be

				payable to the corporation, with respect to each applicable 12-month period, a

				premium at a rate equal to $1,250 multiplied by the number of individuals who

				were participants in the plan immediately before the termination date. Such

				premium shall be in addition to any other premium under this section.</text>

								</subparagraph><subparagraph id="IDF71431E777394B9EB3B4B998C7AF60EE"><enum>(B)</enum><header>Special rule

				for plans terminated in bankruptcy reorganization</header><text>Subparagraph

				(A) shall not apply to a single-employer plan terminated under section

				4041(c)(2)(B)(ii) or under section 4042 during pendency of any bankruptcy

				reorganization proceeding under chapter 11 of title 11, United States Code, (or

				under any similar law of a State or political subdivision of a State) until the

				plan sponsor emerges from bankruptcy.</text>

								</subparagraph><subparagraph id="IDAE51C789EA71415DA860C2AC7539C7AF"><enum>(C)</enum><header>Applicable

				12-month period</header><text>For purposes of subparagraph (A)—</text>

									<clause id="ID9CAE90627FDE424AAFF810E1B3FC8D96"><enum>(i)</enum><header>In

				general</header><text>The term <term>applicable 12-month period</term>

				means—</text>

										<subclause id="ID4A8C20E2D19F4A8D8B3634A0C99256F0"><enum>(I)</enum><text>the 12-month

				period beginning with the first month following the month in which the

				termination date occurs, and</text>

										</subclause><subclause id="ID580BD32B039E486593329C6EDC3535A2"><enum>(II)</enum><text>each of the

				first two 12-month periods immediately following the period described in

				subclause (I).</text>

										</subclause></clause><clause id="ID77259DF15D9F43EBBDC68B2D7A631BB5"><enum>(ii)</enum><header>Plans

				terminated in bankruptcy reorganization</header><text>In the case of a plan

				described under subparagraph (B), the 12-month period described in clause

				(i)(I) shall be the 12-month period beginning with the first month following

				the month which includes the date the plan sponsor emerges from

				bankruptcy.</text>

									</clause></subparagraph><subparagraph id="ID145FB6B6D62D41319DBF73B23E8D8DDD"><enum>(D)</enum><header>Coordination

				with section <enum-in-header>4007</enum-in-header></header><text>For purposes

				of section 4007—</text>

									<clause id="IDBF38BDB7159D478DBC7BC4ABC235B81D"><enum>(i)</enum><text>premiums under

				this paragraph shall be due within 30 days after the beginning of any

				applicable 12-month period,</text>

									</clause><clause id="ID8CC078F6DBE64060B433719D57048A68"><enum>(ii)</enum><text>the fifth

				sentence of section 4007(a) shall not apply, and</text>

									</clause><clause id="ID8255A45574824BFA82ABFF8EAAC56BC0"><enum>(iii)</enum><text>the designated

				payor under section 4007(e)(1)(A) shall be the contributing sponsor immediately

				before the termination

				date.</text>

									</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="ID3F86F0F1589A49F693F748B388A75C44"><enum>(c)</enum><header>Conforming

			 Amendment</header><text>Section 4006(a)(3)(B) of such Act (29 U.S.C.

			 1306(a)(3)(B)) is amended by striking <quote>subparagraph (A)(iii)</quote> and

			 inserting <quote>clause (iii) or (iv) of subparagraph (A)</quote>.</text>

					</subsection><subsection id="ID6D70DD84956940428FEF8AAD5BDD01D9"><enum>(d)</enum><header>Effective

			 Dates</header>

						<paragraph id="IDAD215641EC6D4320957B86A8E077356A"><enum>(1)</enum><header>In

			 general</header><text>The amendments made by this section shall apply to plan

			 years beginning after December 31, 2005.</text>

						</paragraph><paragraph id="IDEB0F57966BDD4090840E27543AF9AD67"><enum>(2)</enum><header>Special rule

			 for plans terminated in bankruptcy</header><text>The amendment made by

			 subsection (b) shall not apply to a termination of a single-employer plan that

			 is terminated during the pendency of any bankruptcy reorganization proceeding

			 under chapter 11 of title 11, United States Code (or under any similar law of a

			 State or political subdivision of a State), if the proceeding is pursuant to a

			 bankruptcy filing occurring before October 18, 2005.</text>

						</paragraph><paragraph id="ID9B13516DDDBE42638C76C26BC1DDF842"><enum>(3)</enum><header>Special rule if

			 subsequent savings enacted</header><text>The amendments made by this section

			 shall not take effect if, after the date of enactment of this Act and before

			 January 1, 2006, a Federal law is enacted which—</text>

							<subparagraph id="ID4748DAC1F0784B9695414753FD82EA18"><enum>(A)</enum><text>provides for

			 decreases in Federal outlays which in the aggregate are not less than the

			 decreases in Federal outlays by reason of the amendments made by this section;

			 and</text>

							</subparagraph><subparagraph id="ID7DF2812AC69E4F85995F54E586329D2A"><enum>(B)</enum><text>specifically

			 provides that such decreases are to be in lieu of the decreases in Federal

			 outlays by reason of the amendments made by this section.</text>

							</subparagraph></paragraph></subsection></section></subtitle><subtitle id="IDAF7F1C67516E4D71B8CAD0BD1D68F623"><enum>C</enum><header>Higher Education

			 Reauthorization</header>

				<chapter id="IDD3E5D5432A7D47E38990417870578928"><enum>1</enum><header>SHORT TITLE;

			 REFERENCES; GENERAL EFFECTIVE DATE</header>

					<section id="ID575B21F6EAED47419CDF6571F6048149"><enum>7301.</enum><header>Short

			 title</header>

						<subsection id="ID8DF48AF9D8E94869B4F3AC6FEB11B8EF"><enum>(a)</enum><header>Short

			 Title</header><text>This subtitle may be cited as the <quote>Higher Education

			 Amendments of 2005</quote>.</text>

						</subsection></section><section id="ID2C6E2272C2C14942BB6F2AC9685CBD9F"><enum>7302.</enum><header>References</header><text display-inline="no-display-inline">Except as otherwise expressly provided,

			 whenever in this subtitle an amendment or repeal is expressed in terms of an

			 amendment to, or repeal of, a section or other provision, the reference shall

			 be considered to be made to a section or other provision of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20

			 U.S.C. 1001 et seq.).</text>

					</section><section id="IDFDE977F6748344DABF756955046AC781"><enum>7303.</enum><header>General

			 effective date</header><text display-inline="no-display-inline">Except as

			 otherwise provided in this subtitle or the amendments made by this subtitle,

			 the amendments made by this subtitle shall take effect on July 1, 2006.</text>

					</section></chapter><chapter id="ID4ABCCF5A117C4E0B80CCE7EB4D6F09A3"><enum>2</enum><header>GENERAL

			 PROVISIONS</header>

					<section id="ID7EF9C7C9726C43EA8F1C0E4678E8E63B"><enum>7311.</enum><header>Additional

			 definitions</header>

						<subsection id="ID7F576721C3314E859FA08166F97900FB"><enum>(a)</enum><header>Amendment</header><text>Section

			 103 (20 U.S.C. 1003) is amended—</text>

							<paragraph id="ID4F066B6A78C34DD2AE885BD37FAD2952"><enum>(1)</enum><text>by redesignating

			 paragraphs (1) through (16) as paragraphs (2) through (17), respectively;

			 and</text>

							</paragraph><paragraph id="ID82387E28984D409AA2FA81735D545527"><enum>(2)</enum><text>by inserting

			 before paragraph (2) (as redesignated by paragraph (1)) the following:</text>

								<quoted-block id="ID1430ABFE33864354956E11FEAE3E2ED6" style="OLC">

									<paragraph id="IDB23ABFBB8B4849478860E3EF8628EA5D"><enum>(1)</enum><header>Authorizing

				committees</header><text>The term <term>authorizing committees</term> means the

				Committee on Health, Education, Labor, and Pensions of the Senate and the

				Committee on Education and the Workforce of the House of

				Representatives.</text>

									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></subsection><subsection id="IDCA48875CB77D463FA3389A7A99D88ED3"><enum>(b)</enum><header>Conforming

			 Amendments</header><text>The Act (20 U.S.C. 1001 et seq.) is amended—</text>

							<paragraph id="IDCCA7B90A4EE64CA09AD2260D0F3A5292"><enum>(1)</enum><text>in section

			 131(a)(3)(B) (20 U.S.C. 1015(a)(3)(B)), by striking <quote>Committee on Labor

			 and Human Resources of the Senate and the Committee on Education and the

			 Workforce of the House of Representatives</quote> and inserting

			 <quote>authorizing committees</quote>;</text>

							</paragraph><paragraph id="IDCAA92E800E0C45C69DA36D77440D65C8"><enum>(2)</enum><text>in section

			 141(d)(4)(B) (20 U.S.C. 1018(d)(4)(B)), by striking <quote>Committee on

			 Education and the Workforce of the House of Representatives and the Committee

			 on Labor and Human Resources of the Senate</quote> and inserting

			 <quote>authorizing committees</quote>;</text>

							</paragraph><paragraph id="ID7BBE708AC8C0467DA5FF862AFA9F7265"><enum>(3)</enum><text>in section

			 207(c)(1) (20 U.S.C. 1027(c)(1)), by striking <quote>Committee on Labor and

			 Human Resources of the Senate and the Committee on Education and the Workforce

			 of the House of Representatives</quote> and inserting <quote>authorizing

			 committees</quote>;</text>

							</paragraph><paragraph id="IDE5BCC549572548838F2D6D5255078CE7"><enum>(4)</enum><text>in section

			 401(f)(3) (20 U.S.C. 1070a(f)(3)), by striking <quote>to the Committee on

			 Appropriations</quote> and all that follows through <quote>House of

			 Representatives</quote> and inserting <quote>to the Committee on Appropriations

			 of the Senate, the Committee on Appropriations of the House of Representatives,

			 and the authorizing committees</quote>;</text>

							</paragraph><paragraph id="ID31566264C25540FCAE73B561CCF8A29E"><enum>(5)</enum><text>in section 428

			 (20 U.S.C. 1078)—</text>

								<subparagraph id="IDEFBAC6D534C6481D9F557F4D5DCCF5EB"><enum>(A)</enum><text>in subsection

			 (c)(9)(K), by striking <quote>House Committee on Education and the Workforce

			 and the Senate Committee on Labor and Human Resources</quote> and inserting

			 <quote>authorizing committees</quote>;</text>

								</subparagraph><subparagraph id="ID59B1A984C3D94E7DA39A0C8A4CA3A507"><enum>(B)</enum><text>in the matter

			 following paragraph (2) of subsection (g), by striking <quote>Committee on

			 Labor and Human Resources of the Senate and the Committee on Education and the

			 Workforce of the House of Representatives</quote> and inserting

			 <quote>authorizing committees</quote>; and</text>

								</subparagraph><subparagraph id="ID8505A1588F024810A270D7F260F92A2A"><enum>(C)</enum><text>in subsection

			 (n)(4), <quote>Committee on Education and the Workforce of the House of

			 Representatives and the Committee on Labor and Human Resources of the

			 Senate</quote> and inserting <quote>authorizing committees</quote>;</text>

								</subparagraph></paragraph><paragraph id="IDC62D50CA72A945DE971CE78DD2AFC481"><enum>(6)</enum><text>in section 428A

			 (20 U.S.C. 1078–1)—</text>

								<subparagraph id="IDF99DF6A19B184063AC4040F4D36F983B"><enum>(A)</enum><text>in the matter

			 preceding subparagraph (A) of subsection (a)(4), by striking <quote>Committee

			 on Labor and Human Resources of the Senate and the Committee on Education and

			 the Workforce of the House of Representatives</quote> and inserting

			 <quote>authorizing committees</quote>; and</text>

								</subparagraph><subparagraph id="ID8977AB264732466A8AA59A47599DD952"><enum>(B)</enum><text>in subsection

			 (c)—</text>

									<clause id="ID5B1F37C767AD4021889A7B7FDBC0E9DE"><enum>(i)</enum><text>in

			 the matter preceding subparagraph (A) of paragraph (2), by striking

			 <quote>Chairperson</quote> and all that follows through <quote>House of

			 Representatives</quote> and inserting <quote>Chairpersons and Ranking Members

			 of the authorizing committees</quote>;</text>

									</clause><clause id="IDD50971EE5B334298BAA9D1AFF30A25CE"><enum>(ii)</enum><text>in

			 paragraph (3), by striking <quote>Chairperson</quote> and all that follows

			 through <quote>House of Representatives</quote> and inserting

			 <quote>Chairpersons and Ranking Members of the authorizing committees</quote>;

			 and</text>

									</clause><clause id="ID97F3D5EA1D094FAE994F9F25616FF907"><enum>(iii)</enum><text>in paragraph

			 (5), by striking <quote>Chairperson</quote> and all that follows through

			 <quote>House of Representatives</quote> and inserting <quote>Chairpersons and

			 Ranking Members of the authorizing committees</quote>;</text>

									</clause></subparagraph></paragraph><paragraph id="ID71443D6FB6074F86AACB838FE3F4EBEE"><enum>(7)</enum><text>in section 432

			 (20 U.S.C. 1082)—</text>

								<subparagraph id="ID6612033047774179B8BE75E59C9F112C"><enum>(A)</enum><text>in subsection

			 (f)(1)(C), by striking <quote>the Committee on Education and the Workforce of

			 the House of Representatives or the Committee on Labor and Human Resources of

			 the Senate</quote> and inserting <quote>either of the authorizing

			 committees</quote>; and</text>

								</subparagraph><subparagraph id="IDFE10682CF21048C6966185E48C93CB8C"><enum>(B)</enum><text>in the matter

			 following subparagraph (D) of subsection (n)(3), by striking <quote>Committee

			 on Education and the Workforce of the House of Representatives and the

			 Committee on Labor and Human Resources of the Senate</quote> and inserting

			 <quote>authorizing committees</quote>;</text>

								</subparagraph></paragraph><paragraph id="ID667A16044C1B4DC0B05F1046D65838D7"><enum>(8)</enum><text>in section

			 437(c)(1) (20 U.S.C. 1087(c)(1)), by striking <quote>Committee on Education and

			 the Workforce of the House of Representatives and the Committee on Labor and

			 Human Resources of the Senate</quote> and inserting <quote>authorizing

			 committees</quote>;</text>

							</paragraph><paragraph id="ID596111226584426294BE1B974804D7D5"><enum>(9)</enum><text>in section 439

			 (20 U.S.C. 1087–2)—</text>

								<subparagraph id="ID6BE113CDF0E6413BB40BCCBBAB0E75F1"><enum>(A)</enum><text>in subsection

			 (d)(1)(E)(iii), by striking <quote>advise the Chairman</quote> and all that

			 follows through <quote>House of Representatives</quote> and inserting

			 <quote>advise the Chairpersons and Ranking Members of the authorizing

			 committees</quote>;</text>

								</subparagraph><subparagraph id="ID882419422E27405893C830D5D6D21B60"><enum>(B)</enum><text>in subsection

			 (r)—</text>

									<clause id="ID787790F76FF046DEA20643991C1B85EE"><enum>(i)</enum><text>in

			 paragraph (3), by striking <quote>inform the Chairman</quote> and all that

			 follows through <quote>House of Representatives,</quote> and inserting

			 <quote>inform the Chairpersons and Ranking Members of the authorizing

			 committees</quote>;</text>

									</clause><clause id="IDD2B4376F52B24D5D9F427C927A9CA64A"><enum>(ii)</enum><text>in

			 paragraph (5)(B), by striking <quote>plan, to the Chairman</quote> and all that

			 follows through <quote>Education and Labor</quote> and inserting <quote>plan,

			 to the Chairpersons and Ranking Members of the authorizing

			 committees</quote>;</text>

									</clause><clause id="IDB9C2E1A07098496CBC43F3E21F2779DD"><enum>(iii)</enum><text>in paragraph

			 (6)(B)—</text>

										<subclause id="IDEC34AF071AFA47C8B3F78AB0483A7C4A"><enum>(I)</enum><text>by striking

			 <quote>plan, to the Chairman</quote> and all that follows through <quote>House

			 of Representatives</quote> and inserting <quote>plan, to the Chairpersons and

			 Ranking Members of the authorizing committees</quote>; and</text>

										</subclause><subclause id="IDD0FD72750C644A6D9D33E6B0BB0A1C58"><enum>(II)</enum><text>by striking

			 <quote>Chairmen and ranking minority members of such Committees</quote> and

			 inserting <quote>Chairpersons and Ranking Members of the authorizing

			 committees</quote>;</text>

										</subclause></clause><clause id="ID379D735349D94F2590CCA32CAD8C9890"><enum>(iv)</enum><text>in

			 paragraph (8)(C), by striking <quote>implemented to the Chairman</quote> and

			 all that follows through <quote>House of Representatives, and</quote> and

			 inserting <quote>implemented to the Chairpersons and Ranking Members of the

			 authorizing committees, and to</quote>; and</text>

									</clause><clause id="IDFF7A0CEBA9AB4FD185BE1D2FD3B1F427"><enum>(v)</enum><text>in

			 the matter preceding subparagraph (A) of paragraph (10), by striking

			 <quote>days to the Chairman</quote> and all that follows through

			 <quote>Education and Labor</quote> and inserting <quote>days to the

			 Chairpersons and Ranking Members of the authorizing committees</quote>;

			 and</text>

									</clause></subparagraph><subparagraph id="ID5D46A45A51394617B2015BCD2C85686C"><enum>(C)</enum><text>in subsection

			 (s)(2)—</text>

									<clause id="ID292AFCEAD2D140AA91666F92B4ED62C9"><enum>(i)</enum><text>in

			 the matter preceding clause (i) of subparagraph (A), by striking

			 <quote>Treasury and to the Chairman</quote> and all that follows through

			 <quote>House of Representatives</quote> and inserting <quote>Treasury and to

			 the Chairpersons and Ranking Members of the authorizing committees</quote>;

			 and</text>

									</clause><clause id="ID80955848079F4A0F8A4AB6FA5C1F3530"><enum>(ii)</enum><text>in

			 subparagraph (B), by striking <quote>Treasury and to the Chairman</quote> and

			 all that follows through <quote>House of Representatives</quote> and inserting

			 <quote>Treasury and to the Chairpersons and Ranking Members of the authorizing

			 committees</quote>;</text>

									</clause></subparagraph></paragraph><paragraph id="ID9E98A998067646728755A07982902EA0"><enum>(10)</enum><text>in section

			 455(b)(8)(B) (20 U.S.C. 1087e(b)(8)(B)), by striking <quote>Committee on Labor

			 and Human Resources of the Senate and the Committee on Education and the

			 Workforce of the House of Representatives</quote> and inserting

			 <quote>authorizing committees</quote>;</text>

							</paragraph><paragraph id="IDF828F3A69FB944E29B57825F3C1AAA63"><enum>(11)</enum><text>in section

			 482(d) (20 U.S.C. 1089(d)), by striking <quote>Committee on Labor and Human

			 Resources of the Senate and the Committee on Education and Labor of the House

			 of Representatives</quote> and inserting <quote>authorizing

			 committees</quote>;</text>

							</paragraph><paragraph id="ID052DE7555094491E998CC6E924E87BC4"><enum>(12)</enum><text>in section

			 483(c) (20 U.S.C. 1090(c)), by striking <quote>Committee on Labor and Human

			 Resources of the Senate and the Committee on Education and the Workforce of the

			 House of Representatives</quote> and inserting <quote>authorizing

			 committees</quote>;</text>

							</paragraph><paragraph id="IDC59B91EB2A4E48BFA08B7A03660F8404"><enum>(13)</enum><text>in section 485

			 (20 U.S.C. 1092)—</text>

								<subparagraph id="ID6BC7203A634949E09D9E6169786CFC88"><enum>(A)</enum><text>in subsection

			 (f)(5)(A), by striking <quote>Committee on Education and the Workforce of the

			 House of Representatives and the Committee on Labor and Human Resources of the

			 Senate</quote> and inserting <quote>authorizing committees</quote>; and</text>

								</subparagraph><subparagraph id="ID3DAEEB9E34B04CA28B9530B8D5A97CF5"><enum>(B)</enum><text>in subsection

			 (g)(4)(B), by striking <quote>Committee on Education and the Workforce of the

			 House of Representatives and the Committee on Labor and Human Resources of the

			 Senate</quote> and inserting <quote>authorizing committees</quote>;</text>

								</subparagraph></paragraph><paragraph id="IDCDA943847DA045BBB4ACA191D59F3511"><enum>(14)</enum><text>in section 486

			 (20 U.S.C. 1093)—</text>

								<subparagraph id="IDB9C243A91B5D470EBE3FC36F686BC16E"><enum>(A)</enum><text>in subsection

			 (e), by striking <quote>Committee on Labor and Human Resources of the Senate

			 and the Committee on Education and the Workforce of the House of

			 Representatives</quote> and inserting <quote>authorizing committees</quote>;

			 and</text>

								</subparagraph><subparagraph id="ID1C208AB5EB8C453BAE0746284D733C11"><enum>(B)</enum><text>in subsection

			 (f)(3)—</text>

									<clause id="ID82BF2EDBE6C148DDBF694D340C156F51"><enum>(i)</enum><text>in

			 the matter preceding clause (i) of subparagraph (A), by striking

			 <quote>Committee on Labor and Human Resources of the Senate and the Committee

			 on Education and the Workforce of the House of Representatives</quote> and

			 inserting <quote>authorizing committees</quote>; and</text>

									</clause><clause id="ID2D146B43A2A7441B959B339BF7A35F57"><enum>(ii)</enum><text>in

			 the matter preceding clause (i) of subparagraph (B), by striking

			 <quote>Committee on Labor and Human Resources of the Senate and the Committee

			 on Education and the Workforce of the House of Representatives</quote> and

			 inserting <quote>authorizing committees</quote>;</text>

									</clause></subparagraph></paragraph><paragraph id="IDA1C66CFA790D4891A1378B0783422EC3"><enum>(15)</enum><text>in section

			 487A(a)(5) (20 U.S.C. 1094a(a)(5)), by striking <quote>Committee on Labor and

			 Human Resources of the Senate and the Committee on Education and the Workforce

			 of the House of Representatives</quote> and inserting <quote>authorizing

			 committees</quote>; and</text>

							</paragraph><paragraph id="ID33E7A95D925A48A69966ED0A4239EB13"><enum>(16)</enum><text>in section

			 498B(d) (20 U.S.C. 1099c–2(d))—</text>

								<subparagraph id="ID6F8291157950477C900CCC98BBDEC9AD"><enum>(A)</enum><text>in paragraph (1),

			 by striking <quote>Committee on Labor and Human Resources of the Senate and the

			 Committee on Education and the Workforce of the House of

			 Representatives</quote> and inserting <quote>authorizing committees</quote>;

			 and</text>

								</subparagraph><subparagraph id="ID363B684ED9294492889554A377AECB65"><enum>(B)</enum><text>in paragraph (2),

			 by striking <quote>Committee on Labor and Human Resources of the Senate and the

			 Committee on Education and the Workforce of the House of

			 Representatives</quote> and inserting <quote>authorizing

			 committees</quote>.</text>

								</subparagraph></paragraph></subsection></section><section id="ID423DE94328DC4233B9FCC8DFE5B8DE7B"><enum>7312.</enum><header>General

			 definition of institution of higher education</header><text display-inline="no-display-inline">Section 101 (20 U.S.C. 1001) is

			 amended—</text>

						<paragraph id="ID3FA494F4250D45B89F809717A2FB5EB8"><enum>(1)</enum><text>in subsection

			 (a)(3), by inserting <quote>, or awards a degree that is acceptable for

			 admission to a graduate or professional degree program, subject to the review

			 and approval by the Secretary</quote> after <quote>such a degree</quote>;

			 and</text>

						</paragraph><paragraph id="ID2F85A318874241349F8EF8C71E676CFF"><enum>(2)</enum><text>by striking

			 subsection (b)(2) and inserting the following:</text>

							<quoted-block id="ID55796D355E8943EE83BF20342C904D94" style="OLC">

								<paragraph id="ID2EFC348688064A519EDE9BE1C3453596"><enum>(2)</enum><text>a public or

				nonprofit private educational institution in any State that, in lieu of the

				requirement in subsection (a)(1), admits as regular students persons—</text>

									<subparagraph id="IDB5322429D5654473877B1C5E940A9E28"><enum>(A)</enum><text>who meet the

				requirements of section 484(d)(3);</text>

									</subparagraph><subparagraph id="ID6018AAB920694F30983F266C6EC4DF7C"><enum>(B)</enum><text>who are beyond

				the age of compulsory school attendance in the State in which the institution

				is located; or</text>

									</subparagraph><subparagraph id="ID08DE9E737B1B429FA3025C07C589EA5D"><enum>(C)</enum><text>who are dually or

				concurrently enrolled in such institution and a secondary

				school.</text>

									</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section><section id="IDE380C207B79A4053B33EE169336350CE"><enum>7313.</enum><header>Definition of

			 institution of higher education for purposes of title

			 <enum-in-header>IV</enum-in-header> programs</header><text display-inline="no-display-inline">Section 102 (20 U.S.C. 1002) is

			 amended—</text>

						<paragraph id="IDF9EBB7FD4B014D08A7008947486E8D27"><enum>(1)</enum><text>in subsection

			 (a)—</text>

							<subparagraph id="ID0839F74BC0C7458E85DD322B01DA3CD4"><enum>(A)</enum><text>by striking

			 paragraph (2)(A)(i) and inserting the following:</text>

								<quoted-block id="ID09DF346D2A2A4430927E84407BDE3D42" style="OLC">

									<clause id="ID27B8814C33CD4A6B83D7B8BBBFAE65A0"><enum>(i)</enum><text>in the case of a

				graduate medical school located outside the United States—</text>

										<subclause id="ID37BED23119A2493BBC0DE337AE3882D9"><enum>(I)</enum><text>at least 60

				percent of those enrolled in, and at least 60 percent of the graduates of, the

				graduate medical school outside the United States were not persons described in

				section 484(a)(5) in the year preceding the year for which a student is seeking

				a loan under part B of title IV; and</text>

										</subclause><subclause id="ID39E81F8CCC4C4AA0949F4B8E740D1D61"><enum>(II)</enum><text>at least 60

				percent of the individuals who were students or graduates of the graduate

				medical school outside the United States or Canada (both nationals of the

				United States and others) taking the examinations administered by the

				Educational Commission for Foreign Medical Graduates received a passing score

				in the year preceding the year for which a student is seeking a loan under part

				B of title IV;

				or</text>

										</subclause></clause><after-quoted-block>;</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="ID860B3834045B49999CFDD5FA753AB5EB"><enum>(B)</enum><text>by striking

			 paragraph (3) and inserting the following:</text>

								<quoted-block id="ID7A1664C9A5E644108C192196F989A18E" style="OLC">

									<paragraph id="ID90E5C45B351448AD91BC196B8C279B1E"><enum>(3)</enum><header>Limitations

				based on enrollment</header><text>An institution shall not be considered to

				meet the definition of an institution of higher education in paragraph (1) if

				such institution—</text>

										<subparagraph id="ID1C1FC17CC5034FE1BCD4A311FF4264DA"><enum>(A)</enum><text>has a student

				enrollment in which more than 25 percent of the students are incarcerated,

				except that the Secretary may waive the limitation contained in this

				subparagraph for a nonprofit institution that provides a 2- or 4-year program

				of instruction (or both) for which the institution awards a bachelor’s degree,

				or an associate’s degree or a postsecondary diploma, respectively; or</text>

										</subparagraph><subparagraph id="ID2B2298DF676B41D5AAF074819AC09748"><enum>(B)</enum><text>has a student

				enrollment in which more than 50 percent of the students do not have a

				secondary school diploma or its recognized equivalent, and does not provide a

				2- or 4-year program of instruction (or both) for which the institution awards

				a bachelor’s degree or an associate’s degree, respectively, except that the

				Secretary may waive the limitation contained in this subparagraph if a

				nonprofit institution demonstrates to the satisfaction of the Secretary that

				the institution exceeds such limitation because the institution serves, through

				contracts with Federal, State, or local government agencies, significant

				numbers of students who do not have a secondary school diploma or its

				recognized

				equivalent.</text>

										</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="ID381436552CE54B5E864F20104BFA3705"><enum>(C)</enum><text>by redesignating

			 paragraphs (4), (5), and (6), as paragraphs (5), (6), and (7), respectively;

			 and</text>

							</subparagraph><subparagraph id="IDF3B375694FF34DAD92F4522801155B48"><enum>(D)</enum><text>by inserting

			 after paragraph (3) the following:</text>

								<quoted-block id="ID26EF8204F69A475B864662757B34295E" style="OLC">

									<paragraph id="ID04D909D9CF4A4067911C068538E926AF"><enum>(4)</enum><header>Limitations

				based on mode of delivery</header>

										<subparagraph id="IDFE759137997044128518093C390490FF"><enum>(A)</enum><header>In

				general</header><text>An institution shall not be considered to meet the

				definition of an institution of higher education in paragraph (1) if such

				institution—</text>

											<clause id="ID3C28354C1C0B4B4D8935E8114A95BEFF"><enum>(i)</enum><text>offers more than

				50 percent of such institution’s courses by correspondence, unless the

				institution is an institution that meets the definition in section 3(3)(C) of

				the Carl D. Perkins Vocational and Technical Education Act of 1998; or</text>

											</clause><clause id="IDF8EF7E6018E74215B981112F65B92117"><enum>(ii)</enum><text>enrolls 50

				percent or more of the institution’s students in correspondence courses, unless

				the institution is an institution that meets the definition in such section

				3(3)(C), except that the Secretary, at the request of such institution, may

				waive the applicability of this subparagraph to such institution for good

				cause, as determined by the Secretary in the case of an institution of higher

				education that provides a 2- or 4-year program of instruction (or both) for

				which the institution awards an associate or baccalaureate degree,

				respectively.</text>

											</clause></subparagraph><subparagraph id="ID79619A7B083C4076974B2A263461CB03"><enum>(B)</enum><header>Distance

				education program eligibility</header><text>Notwithstanding subparagraph (A),

				an institution of higher education, other than a foreign institution, that

				offers education or training programs principally through distance education

				shall be considered to meet the definition of an institution of higher

				education in paragraph (1) if such institution—</text>

											<clause id="ID3112BDEEA9EF4511BA2AD231DE9F6944"><enum>(i)</enum><text>has been

				evaluated and determined (before or after the date of enactment of the Higher

				Education Amendments of 2005) to have the capability to effectively deliver

				distance education programs by an accrediting agency or association

				that—</text>

												<subclause id="IDAF2A857629F3434E8565EBDB59AC582E"><enum>(I)</enum><text>is recognized by

				the Secretary under title IV; and</text>

												</subclause><subclause id="ID472DB70A80F74592AE061E425A71522C"><enum>(II)</enum><text>has evaluation

				of distance education programs within the scope of its recognition, as

				described in section 496(n)(3);</text>

												</subclause></clause><clause id="ID1FADE1E407D8438F88D9195A639098E8"><enum>(ii)</enum><text>is otherwise

				eligible to participate in programs authorized under title IV;</text>

											</clause><clause id="IDE0E5518C9478470E922A2C1867607384"><enum>(iii)</enum><text>has not had its

				participation in programs under title IV suspended or terminated within the

				previous 5 years;</text>

											</clause><clause id="IDA55C68448CEB4628A82F43A168E83E1F"><enum>(iv)</enum><text>has not had, or

				failed to resolve, an audit finding or program review finding under this Act

				during the 2 years preceding the year for which the determination is made that,

				following any appeal to the Secretary, resulted in the institution being

				required to repay an amount that is equal to or greater than 25 percent of the

				total funds the institution received under the programs authorized under title

				IV for the most recent award year; and</text>

											</clause><clause id="ID9991CC1AE0204EE09F93479AF938EFEB"><enum>(v)</enum><text>has met the

				requirements of section 487(d), if applicable.</text>

											</clause></subparagraph><subparagraph id="ID3A6D055F94234477887BB8FA7AF8109F"><enum>(C)</enum><header>Definition</header>

											<clause id="ID7D8CC6D3983F4440A950B0A610406886"><enum>(i)</enum><header>In

				general</header><text>In this Act, except as otherwise provided, the term

				<term>distance education</term> means a course or program that uses 1 or more

				of the technologies described in clause (ii) to—</text>

												<subclause id="ID58E1351545284AEB83110DE4679AB098"><enum>(I)</enum><text>deliver

				instruction to students who are separated from the instructor; and</text>

												</subclause><subclause id="ID91C2200C2A2C46DC8F259F9844A50387"><enum>(II)</enum><text>support regular

				and substantive interaction between the students and the instructor, either

				synchronously or asynchronously.</text>

												</subclause></clause><clause id="IDA02390909FEF4735BDA6BE443E2F3782"><enum>(ii)</enum><header>Inclusions</header><text>For

				the purposes of clause (i), the technologies used may include—</text>

												<subclause id="ID9B2DF90EAD6441A2A3116114B515960F"><enum>(I)</enum><text>the

				Internet;</text>

												</subclause><subclause id="IDAB4509B96F544D67A35292CA1C459C97"><enum>(II)</enum><text>one-way and

				two-way transmissions through open broadcast, closed circuit, cable, microwave,

				broadband lines, fiber optics, satellite, or wireless communications

				devices;</text>

												</subclause><subclause id="ID6DB868960B804B02877F89AE9AC8C88A"><enum>(III)</enum><text>audio

				conferencing; or</text>

												</subclause><subclause id="ID698342BEDF43466FBC472329730B7936"><enum>(IV)</enum><text>video cassette,

				DVDs, and CD–ROMs, provided that they are used in a course in conjunction with

				the technologies listed in subclauses (I) through

				(III).</text>

												</subclause></clause></subparagraph></paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="IDD2E9E26B8B234586AD870A9481E4FD57"><enum>(2)</enum><text>in subsection

			 (b)(1)—</text>

							<subparagraph id="IDE12FE2F4B5104D30B2C1D84F82E78E48"><enum>(A)</enum><text>in subparagraph

			 (D), by inserting <quote>and</quote> after the semicolon;</text>

							</subparagraph><subparagraph id="ID08C984F42AEA4564B1B478C07F35856F"><enum>(B)</enum><text>in subparagraph

			 (E), by striking <quote>; and</quote> and inserting a period; and</text>

							</subparagraph><subparagraph id="IDD79DA159F7A8434FBB9C76953D3C9D1B"><enum>(C)</enum><text>by striking

			 subparagraph (F).</text>

							</subparagraph></paragraph></section><section id="IDA3CE443C098E42E4B8A39EA6D0377B20"><enum>7314.</enum><header>Protection of

			 student speech and association rights</header><text display-inline="no-display-inline">Section 112 (20 U.S.C. 1011a) is

			 amended—</text>

						<paragraph id="IDA33BA58455484391A9308B0226696339"><enum>(1)</enum><text>in subsection

			 (a)—</text>

							<subparagraph id="IDE82A3D853EAE4CF28863A84C4CFFFF0C"><enum>(A)</enum><text>by inserting

			 <quote>(1)</quote> before <quote>It is the sense</quote>; and</text>

							</subparagraph><subparagraph id="IDC04114D18516417D98B33F50F53F3013"><enum>(B)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="ID3F98E50CBD514CA4917BE3E40FECBDF5" style="OLC">

									<paragraph id="ID8D64EB1AB21B487C97BE79A1DEF993A1" indent="up1"><enum>(2)</enum><text>It is the sense of Congress

				that—</text>

										<subparagraph id="ID986851ABB4A845379FACC7C5F48A1A49"><enum>(A)</enum><text>the diversity of institutions and

				educational missions is one of the key strengths of American higher

				education;</text>

										</subparagraph><subparagraph id="ID7DFEF8A850984BDAB4126EE0C9F88FCA"><enum>(B)</enum><text>individual colleges and universities

				have different missions and each institution should design its academic program

				in accordance with its educational goals;</text>

										</subparagraph><subparagraph id="ID3E0EE4C384294E85A1529D1812370B7B"><enum>(C)</enum><text>within the context of institutional

				mission, a college should facilitate the free and open exchange of

				ideas;</text>

										</subparagraph><subparagraph id="IDA2A6CD58F1CF4F10A1A8E3A53B1CE365"><enum>(D)</enum><text>students should not be intimated,

				harassed, discouraged from speaking out, or discriminated against;</text>

										</subparagraph><subparagraph id="ID3C73CE65448946509FDED3D10053FA29"><enum>(E)</enum><text>students should be treated equally and

				fairly; and</text>

										</subparagraph><subparagraph id="IDD58777F1D49A4343A5C13F2A52F27B10"><enum>(F)</enum><text>nothing in this paragraph shall be

				construed to modify, change, or infringe upon any constitutionally protected

				religious liberty, freedom, expression, or

				association.</text>

										</subparagraph></paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="IDDBC6B8FB257841AB9E36BC328BD95D89"><enum>(2)</enum><text>in subsection

			 (b)(1), by inserting <quote>, provided that the imposition of such sanction is

			 done objectively and fairly</quote> after <quote>higher

			 education</quote>.</text>

						</paragraph></section><section id="ID87ABD20197FA4E9584E99D7C9CF3C7B5"><enum>7315.</enum><header>National

			 Advisory Committee on institutional quality and integrity</header><text display-inline="no-display-inline">Section 114(g) (20 U.S.C. 1011c(g)) is

			 amended by striking <quote>September 30, 2004</quote> and inserting

			 <quote>September 30, 2011</quote>.</text>

					</section><section id="IDC861148808F84D9195D6B1F6C303E595"><enum>7316.</enum><header>Drug and

			 alcohol abuse prevention</header><text display-inline="no-display-inline">Section 120 (20 U.S.C. 1011i) is amended by

			 striking subsections (e) and (f) and inserting the following:</text>

						<quoted-block id="ID95179CA729FF481F97BD3E1D0B7CFCF3" style="OLC">

							<subsection id="ID85E51B1FD10F43B582F0BEA761EDE178"><enum>(e)</enum><header>Grants Directed

				at Reducing Higher Education Drug and Alcohol Abuse</header>

								<paragraph id="ID711781F997404203803309945AA34368"><enum>(1)</enum><header>Authorization

				of program</header><text>The Secretary may award grants to eligible entities to

				enable the entities to reduce the rate of drug use, underage alcohol use, and

				binge drinking among students at institutions of higher education.</text>

								</paragraph><paragraph id="ID81F2100AE0F4443B88367CB0FC54A64C"><enum>(2)</enum><header>Applications</header><text>An

				eligible entity that desires to receive a grant under this subsection shall

				submit an application to the Secretary at such time, in such manner, and

				accompanied by such information as the Secretary may require. Each application

				shall include—</text>

									<subparagraph id="IDA5CA004E82B74019BA423D195EBFF343"><enum>(A)</enum><text>a description of

				how the eligible entity will work to enhance an existing, or where none exists

				to build a, statewide coalition;</text>

									</subparagraph><subparagraph id="ID4756278775934CA68C250BCFB8F58D26"><enum>(B)</enum><text>a description of

				how the eligible entity will target underage students in the State;</text>

									</subparagraph><subparagraph id="ID8DC69299BBBC46DCB085646D53986EDD"><enum>(C)</enum><text>a description of

				how the eligible entity intends to ensure that the statewide coalition is

				actually implementing the purpose described in paragraph (1) and moving toward

				the achievement indicators described in paragraph (4);</text>

									</subparagraph><subparagraph id="IDBB579487500645819733E4BF3D097E02"><enum>(D)</enum><text>a list of the

				members of the statewide coalition or interested parties involved in the work

				of the eligible entity;</text>

									</subparagraph><subparagraph id="IDFC4E0EDFA1F449AFB627E9E3F66D841D"><enum>(E)</enum><text>a description of

				how the eligible entity intends to work with State agencies on substance abuse

				prevention and education;</text>

									</subparagraph><subparagraph id="IDD4E9C7A3AB9C47538DAEBA855CEA00D5"><enum>(F)</enum><text>the anticipated

				impact of funds provided under this subsection in reducing the rates of drug

				abuse and underage alcohol use;</text>

									</subparagraph><subparagraph id="ID1A7D6DF486BD4D57A1B06968E44E7223"><enum>(G)</enum><text>outreach

				strategies, including ways in which the eligible entity proposes to—</text>

										<clause id="IDFEF30DBAD17141758BF9FA42BC7D6A30"><enum>(i)</enum><text>reach out to

				students;</text>

										</clause><clause id="ID253546ADBEEF42539C7314516F5C2151"><enum>(ii)</enum><text>promote the

				purpose described in paragraph (1);</text>

										</clause><clause id="ID0904393B3BC54911A3B1B7D5EB682805"><enum>(iii)</enum><text>address the

				range of needs of the students and the surrounding communities; and</text>

										</clause><clause id="IDA84742EEEBA345D5802CFEBA9B3DFBFA"><enum>(iv)</enum><text>address

				community norms for underage students regarding drug and alcohol use;

				and</text>

										</clause></subparagraph><subparagraph id="ID769F455EE90D48BD97D82899167F159A"><enum>(H)</enum><text>such additional

				information as required by the Secretary.</text>

									</subparagraph></paragraph><paragraph id="IDF497289AFC8B41568E965ADD69ED4770"><enum>(3)</enum><header>Uses of

				funds</header><text>Each eligible entity that receives a grant under this

				subsection shall use the grant funds to carry out the activities described in

				such entity’s application submitted pursuant to paragraph (2).</text>

								</paragraph><paragraph id="IDDBD610CE215945D68727CD314ACAE4B9"><enum>(4)</enum><header>Accountability</header><text>On

				the date on which the Secretary first publishes a notice in the Federal

				Register soliciting applications for grants under this subsection, the

				Secretary shall include in the notice achievement indicators for the program

				authorized under this subsection. The achievement indicators shall be

				designed—</text>

									<subparagraph id="ID7FB34EA0E7504A03AF17425B813FC975"><enum>(A)</enum><text>to measure the

				impact that the statewide coalitions assisted under this subsection are having

				on the institutions of higher education and the surrounding communities,

				including changes in the number of alcohol and drug-related abuse incidents of

				any kind (including violations, physical assaults, sexual assaults, reports of

				intimidation, disruptions of school functions, disruptions of student studies,

				mental health referrals, illnesses, or deaths);</text>

									</subparagraph><subparagraph id="IDEEB8CAB03B0B4EA3BF93CEC83161B7A6"><enum>(B)</enum><text>to measure the

				quality and accessibility of the programs or information offered by the

				statewide coalitions; and</text>

									</subparagraph><subparagraph id="IDDB6F8CD7CD1744E4B6C1423EDCB5F946"><enum>(C)</enum><text>to provide such

				other measures of program impact as the Secretary determines

				appropriate.</text>

									</subparagraph></paragraph><paragraph id="IDEAB020825F3D4FCF89510F36A21696CD"><enum>(5)</enum><header>Supplement not

				supplant</header><text>Grant funds provided under this subsection shall be used

				to supplement, and not supplant, Federal and non-Federal funds available for

				carrying out the activities described in this subsection.</text>

								</paragraph><paragraph id="ID47ED25CCE58A481683E3DF365B1939AD"><enum>(6)</enum><header>Definitions</header><text>In

				this subsection:</text>

									<subparagraph id="ID7BB5872976FD4741AE1C59481F93037E"><enum>(A)</enum><header>Eligible

				entity</header><text>The term <term>eligible entity</term> means a State, an

				institution of higher education as defined in section 102, or a nonprofit

				entity.</text>

									</subparagraph><subparagraph id="ID655F1391925242EFBE716BBA0FEADDAC"><enum>(B)</enum><header>Institution of

				higher education</header><text>The term <term>institution of higher

				education</term> has the meaning given the term in section 101(a).</text>

									</subparagraph><subparagraph id="ID1366A41D98A744EE810DF2ACFF347111"><enum>(C)</enum><header>State</header><text>The

				term <term>State</term> means each of the 50 States, the District of Columbia,

				and the Commonwealth of Puerto Rico.</text>

									</subparagraph><subparagraph id="ID3797AA90290C48D9AE6FFE5DAA260BEC"><enum>(D)</enum><header>Statewide

				coalition</header><text>The term <term>statewide coalition</term> means a

				coalition that—</text>

										<clause id="IDAA1C6273F596433D98B8FB732B5A1E7A"><enum>(i)</enum><text>includes—</text>

											<subclause id="ID3D960163FDD848B5A28E8158500FCCA2"><enum>(I)</enum><text>institutions of

				higher education within a State; and</text>

											</subclause><subclause id="ID3D1FA03FCE8145F5874F28D2F745529B"><enum>(II)</enum><text>a nonprofit

				group, a community anti-drug or underage drinking prevention coalition, or

				another substance abuse prevention group within a State; and</text>

											</subclause></clause><clause id="ID544344CC658E42428E728E0153399181"><enum>(ii)</enum><text>works toward

				lowering alcohol abuse rates by targeting underage students at institutions of

				higher education throughout the State and in the surrounding

				communities.</text>

										</clause></subparagraph><subparagraph id="ID9AE1D535AFD74A8ABD1140151B06A2FD"><enum>(E)</enum><header>Surrounding

				community</header><text>The term <term>surrounding community</term> means the

				community—</text>

										<clause id="IDEB2B2E718E5440D6893BA3C360F3B96D"><enum>(i)</enum><text>that surrounds an

				institution of higher education participating in a statewide coalition;</text>

										</clause><clause id="IDF997AC92288A42BFB9B3010D70C43DC7"><enum>(ii)</enum><text>where the

				students from the institution of higher education take part in the community;

				and</text>

										</clause><clause id="ID05B948904F40412DB1D6B5C31701A3AD"><enum>(iii)</enum><text>where students

				from the institution of higher education live in off-campus housing.</text>

										</clause></subparagraph></paragraph><paragraph id="IDD971F28CA35E4AEA835E8CB356E8C623"><enum>(7)</enum><header>Administrative

				expenses</header><text>Not more than 5 percent of a grant awarded under this

				subsection may be expended for administrative expenses.</text>

								</paragraph><paragraph id="ID8300589E466F4075BB266102278EDBC2"><enum>(8)</enum><header>Authorization

				of appropriations</header><text>There are authorized to be appropriated to

				carry out this subsection such sums as may be necessary for fiscal year 2006

				and each of the 5 succeeding fiscal

				years.</text>

								</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

					</section><section id="IDD945E4EC293A40A4ACD3041AF52DF219"><enum>7317.</enum><header>Prior rights

			 and obligations</header><text display-inline="no-display-inline">Section 121(a)

			 (20 U.S.C. 1011j(a)) is amended—</text>

						<paragraph id="IDF75BE0B548EB4E4E9EC52A4A036C7CB6"><enum>(1)</enum><text>in paragraph (1),

			 by striking <quote>1999</quote> and inserting <quote>2006</quote>; and</text>

						</paragraph><paragraph id="ID34F980E9745A46AAB0817C3F4737CCE7"><enum>(2)</enum><text>in paragraph (2),

			 by striking <quote>1999</quote> and inserting <quote>2006</quote>.</text>

						</paragraph></section><section id="ID8C8F3ECB442A4A28B8F196FEF98B5614"><enum>7318.</enum><header>Cost of

			 higher education</header><text display-inline="no-display-inline">Section 131

			 (20 U.S.C. 1015) is amended—</text>

						<paragraph id="ID03751AB0C3654D8CA32523B057F16803"><enum>(1)</enum><text>by striking

			 subsection (b) and inserting the following:</text>

							<quoted-block id="ID4D4B0ADB60E74ECB98082C209A7FDA28" style="OLC">

								<subsection id="IDAC6465974C0C47C79C1E643A846E1CA2"><enum>(b)</enum><header>College

				Consumer Information</header>

									<paragraph id="ID05D2F44961E74A2195BD95E186C81CFE"><enum>(1)</enum><header>In

				general</header><text>The Secretary shall make available to the public the

				information described in paragraph (2), in a form that enables the public to

				compare the information among institutions of higher education. Such

				information shall be made available for each of the categories described in

				paragraph (3) and updated annually.</text>

									</paragraph><paragraph id="ID33D142A07B9247278030924E9CCAE2AB"><enum>(2)</enum><header>Information</header><text>The

				information described in this paragraph is the following:</text>

										<subparagraph id="ID1DCEFEAD16484953BA7DB8FA76484968"><enum>(A)</enum><text>Tuition and fees

				for a first-time, full-time undergraduate student.</text>

										</subparagraph><subparagraph id="IDC0708EC1D3E84E488C144924827C5100"><enum>(B)</enum><text>Cost of

				attendance for a first-time, full-time undergraduate student.</text>

										</subparagraph><subparagraph id="ID6209CEEF2BC047A4B9C781B54B25A1BF"><enum>(C)</enum><text>The average

				annual cost of attendance for a first-time, full-time undergraduate student for

				the preceding periods of 5 and 10 academic years preceding the year for which

				the information is made available under this subsection, or if data are not

				available for such academic years, data for as many of such academic years as

				are available.</text>

										</subparagraph><subparagraph id="ID24EE3E9177B348328437A2FA88C35CBF"><enum>(D)</enum><text>The percentage of

				full-time undergraduate students receiving financial assistance,

				including—</text>

											<clause id="ID1C14556F706D49E9BBD184A6688A0FC8"><enum>(i)</enum><text>Federal

				grants;</text>

											</clause><clause id="ID3090F47A4CCA49A9893D451B2FEE1957"><enum>(ii)</enum><text>State and local

				grants;</text>

											</clause><clause id="ID2C02876982A84D4BBBCA04DF98484DC0"><enum>(iii)</enum><text>institutional

				grants; and</text>

											</clause><clause id="ID075F105159F64236A591CA684E9C3B6A"><enum>(iv)</enum><text>loans to

				students.</text>

											</clause></subparagraph><subparagraph id="ID02F41E870DE548E092B1B65D794D603F"><enum>(E)</enum><text>The average

				amount of financial aid received by students from sources described in clauses

				(i) through (iv) of subparagraph (D).</text>

										</subparagraph><subparagraph id="IDCA7F99CF64D1405AA4CC94432A8EE891"><enum>(F)</enum><text>Graduation rates,

				as described in section 485(a)(1)(L).</text>

										</subparagraph><subparagraph id="IDC8BD3F98D18C4C85A83C32DC796F755F"><enum>(G)</enum><text>A ranking of the

				dollar and percentage increases in tuition and fees for all institutions of

				higher education for which data are available in each of the categories

				described in paragraph (3).</text>

										</subparagraph></paragraph><paragraph id="ID5608A065D8AE4754972187F1894C22F5"><enum>(3)</enum><header>Categories</header><text>The

				categories described in this paragraph are as follows:</text>

										<subparagraph id="IDF893EAA701B345FC9A672E2E8DFD6489"><enum>(A)</enum><text>All institutions

				of higher education.</text>

										</subparagraph><subparagraph id="IDBCD5ADF5961D48349682228206D97884"><enum>(B)</enum><text>4-year public,

				degree-granting, institutions of higher education.</text>

										</subparagraph><subparagraph id="ID7A6E11CB6A984B33A0F3A57CF21D5279"><enum>(C)</enum><text>2-year public,

				degree-granting, institutions of higher education.</text>

										</subparagraph><subparagraph id="ID14E60D9CB177412E90A482EF4CF43D09"><enum>(D)</enum><text>4-year,

				nonprofit, private, degree-granting institutions of higher education.</text>

										</subparagraph><subparagraph id="IDB0A04D5592FF4AD69FC635A14E1B87E3"><enum>(E)</enum><text>2-year,

				nonprofit, private, degree-granting institutions of higher education.</text>

										</subparagraph><subparagraph id="ID59691452F45F44ACAF9F947A16029BC2"><enum>(F)</enum><text>4-year,

				for-profit, private, degree-granting institutions of higher education.</text>

										</subparagraph><subparagraph id="ID8C28EEF260C44BE3844470FFBCE1EC31"><enum>(G)</enum><text>2-year,

				for-profit, private, degree-granting institutions of higher education.</text>

										</subparagraph><subparagraph id="IDC613C41927EE4210BBD7CA4BBF38CE88"><enum>(H)</enum><text>Less than 2-year,

				for-profit, private institutions of higher education.</text>

										</subparagraph></paragraph><paragraph id="ID933E18B3AB034073956133E0305AE25C"><enum>(4)</enum><header>Standard

				definitions</header><text>In carrying out this section, the Secretary shall use

				the standard definitions developed under subsection

				(a)(3).</text>

									</paragraph></subsection><after-quoted-block>;

				and</after-quoted-block></quoted-block>

						</paragraph><paragraph id="IDD7411D8DE32C478889EDDC09E56FD39B"><enum>(2)</enum><text>in subsection

			 (c)—</text>

							<subparagraph id="IDA54A7D2469FA4D5C86EA82A2CE73E4DE"><enum>(A)</enum><text>in paragraph (1),

			 by inserting <quote>be conducted on an annual basis and</quote> after

			 <quote>Such study shall</quote>;</text>

							</subparagraph><subparagraph id="ID4DCA5967EA26462CB8D2092DB9C35096"><enum>(B)</enum><text>in paragraph

			 (2)—</text>

								<clause id="ID5F6F433CFAE74EEE82BE24274966C559"><enum>(i)</enum><text>in

			 subparagraph (B), by striking <quote>and</quote> after the semicolon;</text>

								</clause><clause id="ID105250B3D5044537A4E431DE18026B0E"><enum>(ii)</enum><text>in

			 subparagraph (C), by striking the period and inserting a semicolon; and</text>

								</clause><clause id="ID8484D9E3E6F449B9A6A6A5D51723D6E4"><enum>(iii)</enum><text>by adding at

			 the end the following:</text>

									<quoted-block id="IDD9A55DAC71684BA290DB014DCBC9634D" style="OLC">

										<subparagraph id="IDCB743A1EEFC44307A5616E643D253DC9"><enum>(D)</enum><text>the average cost

				of attending an institution of higher education, disaggregated by category, as

				described in subsection (b)(3);</text>

										</subparagraph><subparagraph id="ID61390312388243A581F2EBE40DB52E2C"><enum>(E)</enum><text>the average

				annual cost of attending an institution of higher education for the periods of

				5 and 10 academic years preceding the year for which the study is conducted (or

				if data are not available for such academic years, data for as many of such

				academic years as are available), disaggregated by category, as described in

				subsection (b)(3); and</text>

										</subparagraph><subparagraph id="ID90DA2694505E4FA78B82C6A23AB20964"><enum>(F)</enum><text>the assistance

				provided to institutions of higher education by each

				State.</text>

										</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>

								</clause></subparagraph><subparagraph id="ID96A0BE28EF444EBF9D1C72E6E0CC79A0"><enum>(C)</enum><text>in paragraph

			 (3)—</text>

								<clause id="ID4A6A667CC11743C48A131907D1CCE5C9"><enum>(i)</enum><text>in

			 the paragraph heading, by striking <quote><header-in-text level="paragraph">Final</header-in-text></quote> and inserting

			 <quote><header-in-text level="paragraph">Annual</header-in-text></quote>;</text>

								</clause><clause id="IDC7DC1DCF497D49559332194248338FB3"><enum>(ii)</enum><text>by

			 striking <quote>a report</quote> and inserting <quote>an annual report</quote>;

			 and</text>

								</clause><clause id="IDE4C01042B51F4085A5C7368AF1AD49C7"><enum>(iii)</enum><text>by striking

			 <quote>not later than September 30, 2002</quote> and inserting <quote>and the

			 public</quote>; and</text>

								</clause></subparagraph><subparagraph id="IDDCDFBF23DA4B4B16A5AF5C0871CDBA46"><enum>(D)</enum><text>by striking

			 paragraph (4) and inserting the following:</text>

								<quoted-block id="ID7A482FB0684C4E6398BE328591C4C530" style="OLC">

									<paragraph id="IDA93938E6327A461AABD79CB713CAC59D"><enum>(4)</enum><header>Higher

				education cost index</header><text>The Bureau of Labor Statistics, in

				consultation with the Commissioner of Education Statistics, shall develop a

				higher education cost index that tracks inflation changes in the relevant costs

				associated with higher

				education.</text>

									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph></section><section id="ID1BC3F9487B8B4E008D07A2FEFDAB7909"><enum>7319.</enum><header>Performance-based

			 organization for the delivery of Federal student financial

			 assistance</header><text display-inline="no-display-inline">Section 141 (20

			 U.S.C. 1018) is amended—</text>

						<paragraph id="ID674CF25C5A3E4953BFFF9C5190F822F8"><enum>(1)</enum><text>in subsection

			 (a)—</text>

							<subparagraph id="IDA7BACD8422E4439599285ADEF28AE88D"><enum>(A)</enum><text>in paragraph (1),

			 by striking <quote>operational</quote> and inserting <quote>administrative and

			 oversight</quote>; and</text>

							</subparagraph><subparagraph id="ID62BC69AC9E034CED913074112FE38871"><enum>(B)</enum><text>in paragraph

			 (2)(D), by striking <quote>of the operational functions</quote> and inserting

			 <quote>and administration</quote>;</text>

							</subparagraph></paragraph><paragraph id="ID3D80F759AC75446E85C64F290F0AEC89"><enum>(2)</enum><text>in subsection

			 (b)—</text>

							<subparagraph id="IDC5693E8E719343488B56A86FC36E4B88"><enum>(A)</enum><text>in paragraph

			 (1)—</text>

								<clause id="ID8761B5E797284F25B2330531E7A58725"><enum>(i)</enum><text>in

			 subparagraph (A), by striking <quote>the information systems administered by

			 the PBO, and other functions performed by the PBO</quote> and inserting

			 <quote>the Federal student financial assistance programs authorized under title

			 IV</quote>; and</text>

								</clause><clause id="IDB617BB671AFB494AADFFA56231357470"><enum>(ii)</enum><text>by

			 striking subparagraph (C) and inserting the following:</text>

									<quoted-block id="IDAEA7F4B737C341948836E953FDA8885D" style="OLC">

										<subparagraph id="ID5C10EC08B333442E9D2A6024A79F29B2"><enum>(C)</enum><text>assist the Chief

				Operating Officer in identifying goals for—</text>

											<clause id="ID17F868679C334FEFB54459B9546B2DFC"><enum>(i)</enum><text>the

				administration of the systems used to administer the Federal student financial

				assistance programs authorized under title IV; and</text>

											</clause><clause id="IDB9624A1FA0B14CB5A245BA9221A02477"><enum>(ii)</enum><text>the updating of

				such systems to current technology.</text>

											</clause></subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</clause></subparagraph><subparagraph id="IDA2C787BB64124C30ADF64DAFA19142AC"><enum>(B)</enum><text>in paragraph

			 (2)—</text>

								<clause id="IDF331047313654825B3AC3FB6195277AB"><enum>(i)</enum><text>in

			 the matter preceding subparagraph (A), by striking <quote>administration of the

			 information and financial systems that support</quote> and inserting <quote>the

			 administration of Federal</quote>;</text>

								</clause><clause id="ID0728B8BE495D4C0089B09991EF57E5B7"><enum>(ii)</enum><text>in

			 subparagraph (A)—</text>

									<subclause id="ID1EA83C333A9548F5ABF321CD7EEEAB26"><enum>(I)</enum><text>in the matter

			 preceding clause (i), by striking <quote>of the delivery system for Federal

			 student assistance</quote> and inserting <quote>for the Federal student

			 assistance programs authorized under title IV</quote>;</text>

									</subclause><subclause id="ID8DB3C93649634C6DA26B2708A863536D"><enum>(II)</enum><text>by striking

			 clauses (i) and (ii) and inserting the following:</text>

										<quoted-block id="IDF7F177DE4B1D463EA047B08EF649A1A9" style="OLC">

											<clause id="IDAF9E8BB3EAED4FE1848244DA56E46954"><enum>(i)</enum><text>the collection,

				processing, and transmission of data to students, institutions, lenders, State

				agencies, and other authorized parties;</text>

											</clause><clause id="IDB1A3EFD2B05846A9A20581DEB4402E11"><enum>(ii)</enum><text>the design and

				technical specifications for software development and procurement for systems

				supporting the student financial assistance programs authorized under title

				IV;</text>

											</clause><after-quoted-block>;</after-quoted-block></quoted-block>

									</subclause><subclause id="ID5FB9039BF3CE45CCB8905D9C6ABDD89F"><enum>(III)</enum><text>in clause

			 (iii), by striking <quote>delivery</quote> and inserting

			 <quote>administration</quote>;</text>

									</subclause><subclause id="ID16F7C581A905472BB63787BCE2621900"><enum>(IV)</enum><text>in clause

			 (iv)—</text>

										<item id="IDF3C8EE42214846DAB7E9716336835A02"><enum>(aa)</enum><text>by

			 inserting <quote>the</quote> after <quote>supporting</quote>; and</text>

										</item><item id="ID7AE6BBA6435A48F5BAE9BF451B1F16F1"><enum>(bb)</enum><text>by

			 striking <quote>and</quote> after the semicolon;</text>

										</item></subclause><subclause id="ID03B760F007E844CEB1490834CB4D5F33"><enum>(V)</enum><text>in clause (v), by

			 striking <quote>systems that support those programs.</quote> and inserting

			 <quote>the administration of the Federal student assistance programs authorized

			 under title IV; and</quote>; and</text>

									</subclause><subclause id="ID816B0B31CD3F4914A044D91A4DE79312"><enum>(VI)</enum><text>by adding at the

			 end the following:</text>

										<quoted-block id="ID5880476949324CA6B51604A18EB271FF" style="OLC">

											<clause id="ID2C730A9F83434373A719575F0D2CE367"><enum>(vi)</enum><text>ensuring the

				integrity of the student assistance programs authorized under title

				IV.</text>

											</clause><after-quoted-block>;

				and</after-quoted-block></quoted-block>

									</subclause></clause><clause id="ID22A9B1EDB3294618B25F6CE0E6F2AE44"><enum>(iii)</enum><text>in subparagraph

			 (B), by striking <quote>operations and services</quote> and inserting

			 <quote>activities and functions</quote>; and</text>

								</clause></subparagraph></paragraph><paragraph id="ID567192B688B54FBBA53D1118053B347C"><enum>(3)</enum><text>in subsection

			 (c)—</text>

							<subparagraph id="ID542D5CA69817422A9F1BF08BC81EC452"><enum>(A)</enum><text>in paragraph

			 (1)(C)—</text>

								<clause id="ID1A6E085C7656472E849466835997D6AB"><enum>(i)</enum><text>in

			 clause (iii), by striking <quote>information and delivery</quote>; and</text>

								</clause><clause id="ID41BA98BD620A420FA7EBD4BE1395A050"><enum>(ii)</enum><text>in

			 clause (iv)—</text>

									<subclause id="ID0E08668549384C28A0958EA5DE938E30"><enum>(I)</enum><text>by striking

			 <quote>Developing an</quote> and inserting <quote>Developing</quote>;

			 and</text>

									</subclause><subclause id="ID310F53ACCF1B4E019EA08DCC297637DB"><enum>(II)</enum><text>by striking

			 <quote>delivery and information system</quote> and inserting

			 <quote>systems</quote>;</text>

									</subclause></clause></subparagraph><subparagraph id="IDCE268371824B4FA9B31896A0C5F6B284"><enum>(B)</enum><text>in paragraph

			 (2)—</text>

								<clause id="ID20FF18CA71D34228B125079C89E09D71"><enum>(i)</enum><text>in

			 subparagraph (A), by inserting <quote>the</quote> after <quote>PBO and</quote>;

			 and</text>

								</clause><clause id="ID0C6AE010D52543509FA2C986B602943A"><enum>(ii)</enum><text>in

			 subparagraph (B), by striking <quote>Officer</quote> and inserting

			 <quote>Officers</quote>; and</text>

								</clause></subparagraph><subparagraph id="ID55A5225A78BB4D39AA7B2BB415278E8B"><enum>(C)</enum><text>in paragraph (3),

			 by inserting <quote>students,</quote> after <quote>consult with</quote>;</text>

							</subparagraph></paragraph><paragraph id="IDD79DACD4DB594A9ABD283B408CBCB602"><enum>(4)</enum><text>in subsection

			 (d)—</text>

							<subparagraph id="ID550A666488E84FEEA0BF372A0AEEE76E"><enum>(A)</enum><text>in paragraph (1),

			 by striking the second sentence; and</text>

							</subparagraph><subparagraph id="IDFC1A1F730B5245238E25A9E5F5E6EC50"><enum>(B)</enum><text>in paragraph

			 (5)—</text>

								<clause id="ID6EF080891E2A449B8E300BF1095A0F7F"><enum>(i)</enum><text>in

			 subparagraph (B), by striking <quote>paragraph (2)</quote> and inserting

			 <quote>paragraph (4)</quote>; and</text>

								</clause><clause id="ID9289B1869AC94E0E836E18229A383B72"><enum>(ii)</enum><text>in

			 subparagraph (C), by striking <quote>this</quote>;</text>

								</clause></subparagraph></paragraph><paragraph id="ID6509CB78555D4CF09243515A97815837"><enum>(5)</enum><text>in subsection

			 (f)—</text>

							<subparagraph id="ID90DDBB3BB26348D489311E3CD655913C"><enum>(A)</enum><text>in paragraph (2),

			 by striking <quote>to borrowers</quote> and inserting <quote>to students,

			 borrowers,</quote>; and</text>

							</subparagraph><subparagraph id="ID81FF075C642840238E380F7EE7287E97"><enum>(B)</enum><text>in paragraph

			 (3)(A), by striking <quote>(1)(A)</quote> and inserting

			 <quote>(1)</quote>;</text>

							</subparagraph></paragraph><paragraph id="ID65AD3AB1F9BE40A8B15DFC9CB3DC4973"><enum>(6)</enum><text>in subsection

			 (g)(3), by striking <quote>not more than 25</quote>;</text>

						</paragraph><paragraph id="IDE250FAE2CA6F4E4D9E78199CB60B6953"><enum>(7)</enum><text>in subsection

			 (h), by striking <quote>organizational effectiveness</quote> and inserting

			 <quote>effectiveness</quote>;</text>

						</paragraph><paragraph id="ID54F499E246044347AD45CD1B944491F2"><enum>(8)</enum><text>by striking

			 subsection (i);</text>

						</paragraph><paragraph id="ID34574A1147094147A1A73A6A77CB87B1"><enum>(9)</enum><text>by redesignating

			 subsection (j) as subsection (i); and</text>

						</paragraph><paragraph id="IDD7D9A9A3C97A4109A3A70FDA772EFB1B"><enum>(10)</enum><text>in subsection

			 (i) (as redesignated by paragraph (9)), by striking <quote>, including

			 transition costs</quote>.</text>

						</paragraph></section><section id="ID069149F313B1408F968E4450331AF78E"><enum>7320.</enum><header>Procurement

			 flexibility</header><text display-inline="no-display-inline">Section 142 (20

			 U.S.C. 1018a) is amended—</text>

						<paragraph id="ID39365C6631B04974B103A572F6894D39"><enum>(1)</enum><text>in subsection

			 (b)—</text>

							<subparagraph id="IDF9677CAA33DE42F98BF6E91078067F2F"><enum>(A)</enum><text>in paragraph

			 (1)—</text>

								<clause id="IDDE4D997E13E0420383F2F16E7BBC76BA"><enum>(i)</enum><text>by

			 striking <quote>for information systems supporting the programs authorized

			 under title IV</quote>; and</text>

								</clause><clause id="ID081D3A4323B24A3E9AAB4CC33D3D0603"><enum>(ii)</enum><text>by

			 striking <quote>and</quote> after the semicolon;</text>

								</clause></subparagraph><subparagraph id="ID2A9D4CF171884B6690D6B15A1A4A5760"><enum>(B)</enum><text>in paragraph (2),

			 by striking the period at the end and inserting <quote>; and</quote>;

			 and</text>

							</subparagraph><subparagraph id="ID8927C7213BD542F697AA557475245612"><enum>(C)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="ID1BDAFE966C5D456CAD7902C022F89B69" style="OLC">

									<paragraph id="ID9B71CE14FCEB448097E4CF38ABAAF16C"><enum>(3)</enum><text>through the Chief

				Operating Officer—</text>

										<subparagraph id="IDAA2B46D7A12D4492B49F89D0EE8138D5"><enum>(A)</enum><text>to the maximum

				extent practicable, utilize procurement systems that streamline operations,

				improve internal controls, and enhance management; and</text>

										</subparagraph><subparagraph id="ID87826D54C0EA4A3293BA7E53136FF8BD"><enum>(B)</enum><text>assess the

				efficiency of such systems and assess such systems’ ability to meet PBO

				requirements.</text>

										</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="ID60D9F17206FB478AAD474DF28C7203DC"><enum>(2)</enum><text>by striking

			 subsection (c)(2) and inserting the following:</text>

							<quoted-block id="IDBBF9F2C5CA5645FE801147A038CCAB6C" style="OLC">

								<paragraph id="IDF910DDFE9042471C9310225B0B3C1E1C"><enum>(2)</enum><header>Fee for service

				arrangements</header><text>The Chief Operating Officer shall, when appropriate

				and consistent with the purposes of the PBO, acquire services related to the

				functions set forth in section 141(b)(2) from any entity that has the

				capability and capacity to meet the requirements set by the PBO. The Chief

				Operating Officer is authorized to pay fees that are equivalent to those paid

				by other entities to an organization that provides services that meet the

				requirements of the PBO, as determined by the Chief Operating

				Officer.</text>

								</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

						</paragraph><paragraph id="ID9E70A33EA36A450592E318082CBC1751"><enum>(3)</enum><text>in subsection

			 (d)(2)(B), by striking <quote>on Federal Government contracts</quote>;</text>

						</paragraph><paragraph id="IDB2C8D60349E7411E8181CFEA842C8F45"><enum>(4)</enum><text>in subsection

			 (g)—</text>

							<subparagraph id="IDBB940FFFD9784538BD2E56C9F7B60BCE"><enum>(A)</enum><text>in paragraph

			 (4)(A)—</text>

								<clause id="IDDC93FCE1A6174A198AE7A1756F0CAD7E"><enum>(i)</enum><text>in

			 the subparagraph heading, by striking <quote><header-in-text level="subparagraph">Sole source</header-in-text>.—</quote> and inserting

			 <quote><header-in-text level="subparagraph">Single-source

			 basis</header-in-text>.—</quote>; and</text>

								</clause><clause id="IDB42A2BDF9CE348CAADA8BE25FD07177C"><enum>(ii)</enum><text>by

			 striking <quote>sole-source</quote> and inserting <quote>single-source</quote>;

			 and</text>

								</clause></subparagraph><subparagraph id="ID10779705B84B4D08870A58F623FF1B79"><enum>(B)</enum><text>in paragraph (7),

			 by striking <quote>sole-source</quote> and inserting

			 <quote>single-source</quote>;</text>

							</subparagraph></paragraph><paragraph id="ID9B762C38870B4B4390C2B91F4C4D8754"><enum>(5)</enum><text>in subsection

			 (h)(2)(A), by striking <quote>sole-source</quote> and inserting

			 <quote>single-source</quote>; and</text>

						</paragraph><paragraph id="IDECA54C6E6DE14A0CAEDDBD2BF085D85E"><enum>(6)</enum><text>in subsection

			 (l), by striking paragraph (3) and inserting the following:</text>

							<quoted-block id="ID5D98C535E3E5471FBBC60C8FE58DADF3" style="OLC">

								<paragraph id="ID0EBC062DB5FF4C408BE3CF713A8ABE0B"><enum>(3)</enum><header>Single-source

				basis</header><text>The term <term>single-source basis</term>, with respect to

				an award of a contract, means that the contract is awarded to a source after

				soliciting an offer or offers from, and negotiating with, only such source

				(although such source is not the only source in the marketplace capable of

				meeting the need) because such source is the most advantageous source for

				purposes of the

				award.</text>

								</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section></chapter><chapter id="ID4956C1296BEB4E33B5E81DA32DA334A8"><enum>3</enum><header>TEACHER QUALITY

			 ENHANCEMENT</header>

					<section id="ID647D937FDDCA492D98DFBC8CAFF8B65D"><enum>7331.</enum><header>Teacher

			 Quality Enhancement Grants for States and Partnerships</header><text display-inline="no-display-inline">Part A of title II (20 U.S.C. 1021 et seq.)

			 is amended to read as follows:</text>

						<quoted-block id="IDB286B3F191494B538155956DBAEF3F85" style="OLC">

							<part id="IDDAFCC2F58F274004A800832C7157D244"><enum>A</enum><header>TEACHER QUALITY

				ENHANCEMENT GRANTS FOR STATES AND PARTNERSHIPS</header>

								<section id="IDC1538E47C4CD4D9A9DCFE6E61417F0ED"><enum>201.</enum><header>Purposes;

				definitions</header>

									<subsection id="IDFCF04D17714D41A69C943E2D72DB383A"><enum>(a)</enum><header>Purposes</header><text>The

				purposes of this part are to—</text>

										<paragraph id="IDD6D94E8921D640B2B362126848781006"><enum>(1)</enum><text>improve student

				achievement;</text>

										</paragraph><paragraph id="ID00000A78BBE44863A26FD81DF2BA4B9C"><enum>(2)</enum><text>improve the

				quality of the current and future teaching force by improving the preparation

				of prospective teachers and enhancing professional development

				activities;</text>

										</paragraph><paragraph id="ID824833FC954C4119A28AF28267667461"><enum>(3)</enum><text>hold institutions

				of higher education accountable for preparing highly qualified teachers;

				and</text>

										</paragraph><paragraph id="ID22E0FAC967784ECCA604439381D79285"><enum>(4)</enum><text>recruit qualified

				individuals, including minorities and individuals from other occupations, into

				the teaching force.</text>

										</paragraph></subsection><subsection id="IDAE3626A0CC194614B42843CB48238DF1"><enum>(b)</enum><header>Definitions</header><text>In

				this part:</text>

										<paragraph id="ID102776C39FD3423CACA524E164027E24"><enum>(1)</enum><header>Arts and

				sciences</header><text>The term <term>arts and sciences</term> means—</text>

											<subparagraph id="IDFB36CDEAD012465DB79FEA67682CE8C2"><enum>(A)</enum><text>when referring to

				an organizational unit of an institution of higher education, any academic unit

				that offers 1 or more academic majors in disciplines or content areas

				corresponding to the academic subject areas in which teachers provide

				instruction; and</text>

											</subparagraph><subparagraph id="ID9591379AD8264DF99D2B9A78EA852303"><enum>(B)</enum><text>when referring to

				a specific academic subject area, the disciplines or content areas in which

				academic majors are offered by the arts and sciences organizational

				unit.</text>

											</subparagraph></paragraph><paragraph id="ID41AC46AB507C478B8D2A9B83A48739DC"><enum>(2)</enum><header>Children from

				low-income families</header><text>The term <term>children from low-income

				families</term> means children as described in section 1124(c)(1)(A) of the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name>.</text>

										</paragraph><paragraph id="ID6545B0735DA84DF09BBC7D463E45E078"><enum>(3)</enum><header>Early childhood

				education program</header><text>The term <term>early childhood education

				program</term> means a Head Start program or an Early Head Start program

				carried out under the <act-name parsable-cite="HSA">Head Start Act</act-name>

				(42 U.S.C. 9831 et seq.), a State licensed or regulated child care program or

				school, or a State prekindergarten program that serves children from birth

				through kindergarten and that addresses the children’s cognitive (including

				language, early literacy, and pre-numeracy), social, emotional, and physical

				development.</text>

										</paragraph><paragraph id="IDC21307F0007F4998B25591075D8ACD85"><enum>(4)</enum><header>Early childhood

				educator</header><text>The term <term>early childhood educator</term> means an

				individual with primary responsibility for the education of children in an

				early childhood education program.</text>

										</paragraph><paragraph id="ID7F60B24762F64A6A914E7EA025F01D2D"><enum>(5)</enum><header>Educational

				service agency</header><text>The term <term>educational service agency</term>

				has the meaning given such term in section 9101 of the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name>.</text>

										</paragraph><paragraph id="ID85FAAE0FFB104EC5A4CD4C4204877E66"><enum>(6)</enum><header>Exemplary

				teacher</header><text>The term <term>exemplary teacher</term> has the meaning

				given such term in section 9101 of the <act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name>.</text>

										</paragraph><paragraph id="ID4ACC16E56DE84A1B970A4DF793C41446"><enum>(7)</enum><header>High-need local

				educational agency</header><text>The term <term>high-need local educational

				agency</term> means a local educational agency or educational service

				agency—</text>

											<subparagraph id="ID19D8598AE6E147FEABC2D1F4DC237709"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="ID31B3FB6F3EFF4400AEC7A23198998175"><enum>(i)</enum><text>that serves not fewer

				than 10,000 children from low-income families;</text>

												</clause><clause id="ID035D8F376B614F46875012EF095A52C0" indent="up1"><enum>(ii)</enum><text>for which not less than 20 percent

				of the children served by the agency are children from low-income families;

				or</text>

												</clause><clause id="IDF299920D125746A797B70564EA4B6B64" indent="up1"><enum>(iii)</enum><text>with a total of less than 600

				students in average daily attendance at the schools that are served by the

				agency and all of whose schools are designated with a school locale code of 7

				or 8, as determined by the Secretary; and</text>

												</clause></subparagraph><subparagraph id="IDC764869FD83441FA93750536E1B7C301"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="IDBB44FCBD44E74B9084F5D90710521085"><enum>(i)</enum><text>for which there is a

				high percentage of teachers not teaching in the academic subject areas or grade

				levels in which the teachers were trained to teach; or</text>

												</clause><clause id="IDFB0A6B7A43644E95B2962852BAAB6CFE" indent="up1"><enum>(ii)</enum><text>for which there is a high teacher

				turnover rate or a high percentage of teachers with emergency, provisional, or

				temporary certification or licensure.</text>

												</clause></subparagraph></paragraph><paragraph id="ID4CC81DBB1A924995A1D0B2D58A936F48"><enum>(8)</enum><header>Highly

				qualified</header><text>The term <term>highly qualified</term> has the meaning

				given such term in section 9101 of the <act-name parsable-cite="ESEA">Elementary and Secondary Education Act of 1965</act-name>

				and, with respect to special education teachers, in section 602 of the

				Individuals with Disabilities Education Act.</text>

										</paragraph><paragraph id="IDCC1FD4E8FD434AD1B2C8F08395B4863B"><enum>(9)</enum><header>Professional

				development</header><text>The term <term>professional development</term> has

				the meaning given such term in section 9101 of the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name>.</text>

										</paragraph><paragraph id="ID8D3BE48997F84A79B1D094D08EB10557"><enum>(10)</enum><header>Scientifically

				based reading research</header><text>The term <term>scientifically based

				reading research</term> has the meaning given such term in section 1208 of the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name>.</text>

										</paragraph><paragraph id="ID27FB0ADD45E841B0BA45C9374E6F3529"><enum>(11)</enum><header>Scientifically

				based research</header><text>The term <term>scientifically based

				research</term> has the meaning given such term in section 9101 of the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name>.</text>

										</paragraph><paragraph id="ID3DDB5E5DA66248829A7816CDCE3127DE"><enum>(12)</enum><header>Teacher

				mentoring</header><text>The term <term>teacher mentoring</term> means mentoring

				of teachers through an established or implemented program—</text>

											<subparagraph id="ID8E19B25063114F7CB482BDFE175AF610"><enum>(A)</enum><text>that includes

				qualifications for mentors;</text>

											</subparagraph><subparagraph id="IDCFDBFEAD439A4635928A1718AA397234"><enum>(B)</enum><text>that provides

				training for mentors;</text>

											</subparagraph><subparagraph id="IDD324C475447E4D9BB77C3BEEF1BDC51D"><enum>(C)</enum><text>that provides

				regular and ongoing opportunities for mentors and mentees to observe each

				other’s teaching methods in classroom settings during the school day;</text>

											</subparagraph><subparagraph id="ID39C90A9609B743589E5CCC2EE90726B4"><enum>(D)</enum><text>in which the

				mentoring is provided by a colleague who teaches in the same field, grade, or

				subject as the mentee; and</text>

											</subparagraph><subparagraph id="ID01A91282F22C43B1812D674B1F3018B6"><enum>(E)</enum><text>that

				includes—</text>

												<clause id="IDF0C5332051284E07BD3BDE0685D0024A"><enum>(i)</enum><text>common planning

				time or regularly scheduled collaboration with teachers in the teachers’ same

				field, grade, or subject area; and</text>

												</clause><clause id="IDCC2B29C970914152ACF234F546B88DC3"><enum>(ii)</enum><text>additional

				professional development opportunities.</text>

												</clause></subparagraph></paragraph><paragraph id="IDC385C0BBDCD649BAB3F47958C14B7F7F"><enum>(13)</enum><header>Teaching

				skills</header><text>The term <term>teaching skills</term> means the ability

				to—</text>

											<subparagraph id="ID9D9AD815246E47078F7570FCB7ABF4C5"><enum>(A)</enum><text>increase student

				achievement;</text>

											</subparagraph><subparagraph id="ID96B8FADD713643A7B598BAE318F68C54"><enum>(B)</enum><text>effectively

				convey and explain academic subject matter;</text>

											</subparagraph><subparagraph id="ID57D7629547584074ADC355D1D7207276"><enum>(C)</enum><text>employ strategies

				that—</text>

												<clause id="IDE28B45F7A636432C8387F10CFF0A437E"><enum>(i)</enum><text>are based on

				scientifically based research;</text>

												</clause><clause id="IDD42F05D01D484CD89888000CB40C8446"><enum>(ii)</enum><text>are specific to

				academic subject matter; and</text>

												</clause><clause id="IDC19F1B5A5A3140EF9429C5E931F4C371"><enum>(iii)</enum><text>focus on

				identification and tailoring of academic instruction to students’ specific

				learning needs, particularly students with disabilities, students who are

				limited English proficient, and students who are gifted and talented;</text>

												</clause></subparagraph><subparagraph id="ID51FDD1DDC9E54299B2AAB40C742ECB7A"><enum>(D)</enum><text>conduct ongoing

				assessment of student learning;</text>

											</subparagraph><subparagraph id="IDED1D38FC5F004C82B418EEF19A59C33F"><enum>(E)</enum><text>effectively

				manage a classroom;</text>

											</subparagraph><subparagraph id="IDD45AF948448C429984DE17035570C2DC"><enum>(F)</enum><text>communicate and

				work with parents and guardians, and involve parents and guardians in their

				children’s education; and</text>

											</subparagraph><subparagraph id="ID7F01C2F7D7D145D8862993665A1BC219"><enum>(G)</enum><text>in the case of an

				early childhood educator, use age appropriate strategies and practices for

				children in early childhood education programs.</text>

											</subparagraph></paragraph></subsection></section><section id="IDCDB2962B2BED485B8177309978B32397"><enum>202.</enum><header>State

				grants</header>

									<subsection id="ID2ADE2A7286E146AC93172F5D4AB15094"><enum>(a)</enum><header>In

				General</header><text>From amounts made available under section 209(a)(1) for a

				fiscal year, the Secretary is authorized to award grants under this section, on

				a competitive basis, to eligible States to enable the eligible States to carry

				out the activities described in subsections (d) and (e).</text>

									</subsection><subsection id="ID660242CAC5A64BFCBC15911A946A663E"><enum>(b)</enum><header>Eligible

				State</header>

										<paragraph id="ID378F8EC9B8E34D0E96A260734B900BAF"><enum>(1)</enum><header>Definition</header><text>In

				this part, the term <term>eligible State</term> means—</text>

											<subparagraph id="IDB960D175B80B41BAAD94D2EA20D18275"><enum>(A)</enum><text>the Governor of a

				State; or</text>

											</subparagraph><subparagraph id="IDF5E15B593F3C4CD6AB268378995D3E7D"><enum>(B)</enum><text>in the case of a

				State for which the constitution or law of such State designates another

				individual, entity, or agency in the State to be responsible for teacher

				certification or licensure and preparation activity, such individual, entity,

				or agency.</text>

											</subparagraph></paragraph><paragraph id="ID498E662E7168481780F53FD2D96C71D3"><enum>(2)</enum><header>Consultation</header><text>The

				Governor or the individual, entity, or agency designated under paragraph (1)(B)

				shall consult with the Governor, State board of education, State educational

				agency, State agency for higher education, or other applicable State entities

				(including the State agency responsible for early childhood education), as

				appropriate, with respect to the activities assisted under this section,

				including the development of the grant application and implementation of the

				activities.</text>

										</paragraph><paragraph id="ID1911D46403814998A346B2BFA3494793"><enum>(3)</enum><header>Construction</header><text>Nothing

				in this subsection shall be construed to negate or supersede the legal

				authority under State law of any State agency, State entity, or State public

				official over programs that are under the jurisdiction of the agency, entity,

				or official.</text>

										</paragraph></subsection><subsection id="ID19E0BF985EFF41E39DCE989EE445DCDD"><enum>(c)</enum><header>Application</header><text>To

				be eligible to receive a grant under this section, an eligible State shall

				submit an application to the Secretary that—</text>

										<paragraph id="IDAF8F8D15B929488B8D6802F9DCB0ECD7"><enum>(1)</enum><text>meets the

				requirement of this section;</text>

										</paragraph><paragraph id="ID0F68F07C92B14F9D9C324BA38959B72F"><enum>(2)</enum><text>demonstrates that

				the eligible State is in full compliance with—</text>

											<subparagraph id="IDD1470C867DAE4AEC89D693DF75291975"><enum>(A)</enum><text>sections 206(b)

				and 207; and</text>

											</subparagraph><subparagraph id="ID29D3392B6ED14168AF6E51828240328F"><enum>(B)</enum><text>if applicable,

				sections 207(b) and 208, as such sections were in effect on the day before the

				date of enactment of the Higher Education Amendments of 2005;</text>

											</subparagraph></paragraph><paragraph id="ID6F0C1FBD97D14A6C93E3170E276E7445"><enum>(3)</enum><text>includes a

				description of how the eligible State intends to use funds provided under this

				section;</text>

										</paragraph><paragraph id="ID72D516D642014077BBDFBAA239C4AFDD"><enum>(4)</enum><text>includes

				measurable objectives for the use of the funds provided under this

				section;</text>

										</paragraph><paragraph id="ID7FD6C10750794CA3B3C4180E2BB146FD"><enum>(5)</enum><text>describes how

				funded activities will—</text>

											<subparagraph id="ID410A3647E4C24A70AC322D34505149E4"><enum>(A)</enum><text>reduce shortages,

				if any, of—</text>

												<clause id="IDDB105AD45F7242E7A43F73206162185A"><enum>(i)</enum><text>highly qualified

				general and special education teachers, including in low-income urban and rural

				areas and in high-need academic subject areas; and</text>

												</clause><clause id="ID25FD5F15953144FCA26104961673219B"><enum>(ii)</enum><text>fully competent

				early childhood educators; and</text>

												</clause></subparagraph><subparagraph id="ID08531939291B4FC0A3C9A70E7FAE4A5D"><enum>(B)</enum><text>be consistent

				with State, local, and other education reform activities that promote effective

				teaching skills and student academic achievement and consistent with State

				early learning standards for early childhood education programs, including how

				funded activities will support carrying out the applicable requirements of the

				eligible State under sections 1111 and 1119 of the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name>, and section 612(a)(14) of the Individuals with Disabilities

				Education Act;</text>

											</subparagraph></paragraph><paragraph id="IDFC76CAD8525E4248853440EFD405EB40"><enum>(6)</enum><text>contains an

				assurance that the eligible State will carry out each of the intended uses of

				grant funds described in paragraph (3);</text>

										</paragraph><paragraph id="ID85834AB62A524B30A7C95AFC1840BF24"><enum>(7)</enum><text>describes the

				eligible State’s—</text>

											<subparagraph id="ID9572CB8A834842C281BB29800FBC13B1"><enum>(A)</enum><text>current capacity

				to measure the effectiveness of teacher preparation programs and professional

				development activities within the State using available statewide data;</text>

											</subparagraph><subparagraph id="ID6EA7B7D87EDA48658577B627692AD00D"><enum>(B)</enum><text>activities to

				enhance or expand the integration of existing data systems to better measure

				the effectiveness of teacher preparation programs and professional development

				activities within the State; or</text>

											</subparagraph><subparagraph id="IDD0708C6F074843219B5E533FA85C201B"><enum>(C)</enum><text>if such data

				systems do not exist, plans for the development of an integrated statewide data

				system to measure the effectiveness of teacher preparation programs and

				professional development activities within the State using available statewide

				data; and</text>

											</subparagraph></paragraph><paragraph id="ID8E33787E6CAB4AD09C39FBD64AE585A2"><enum>(8)</enum><text>contains such

				other information and assurances as the Secretary may require.</text>

										</paragraph></subsection><subsection id="IDF21177A77ECF4DAA8322CC71FFF5E84E"><enum>(d)</enum><header>Required Uses

				of Funds</header><text>An eligible State that receives a grant under this

				section shall use the grant funds to reform teacher preparation requirements,

				to coordinate with State activities under section 2113(c) of the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name> and subsections (a) and (b) of section 654 of the Individuals

				with Disabilities Education Act, and to ensure that current and prospective

				teachers are highly qualified, by carrying out each of the following

				activities:</text>

										<paragraph id="ID14B9BCEBA0B846A38857233870FCB125"><enum>(1)</enum><header>Reforms</header><text>Ensuring

				that all teacher preparation programs in the State are preparing current or

				prospective teachers to become highly qualified, to understand scientifically

				based research and its applicability, and to use technology effectively,

				including use of instructional techniques to improve student academic

				achievement, by assisting such programs—</text>

											<subparagraph id="ID53A771107B9B43C6A4FA71629E86636B"><enum>(A)</enum><text>in retraining

				faculty;</text>

											</subparagraph><subparagraph id="ID71AF7A6A15224B43B558B2C5D41CFF7A"><enum>(B)</enum><text>in designing (or

				redesigning) teacher preparation programs so that such programs—</text>

												<clause id="IDDEEFE65B592B4DD79F516C27BA115786"><enum>(i)</enum><text>are based on

				rigorous academic content and scientifically based research (including

				scientifically based reading research), and aligned with challenging State

				academic content standards;</text>

												</clause><clause id="IDD3D8A6D4A9B445AC8BE1E6692C454C68"><enum>(ii)</enum><text>promote

				effective teaching skills; and</text>

												</clause><clause id="IDAF973D3891414F4CB121718D88D1E396"><enum>(iii)</enum><text>promote

				understanding of effective instructional strategies for students with special

				needs, including students with disabilities, students who are limited English

				proficient, and students who are gifted and talented;</text>

												</clause></subparagraph><subparagraph id="IDF6A31B818A0C4F21AACB27034DB8312E"><enum>(C)</enum><text>in ensuring

				collaboration with departments, programs, or units outside of the teacher

				preparation program in relevant academic content areas to ensure a successful

				combination of training in both teaching and such content;</text>

											</subparagraph><subparagraph id="ID78F0403358F84F61897421AB6A7FB7B9"><enum>(D)</enum><text>in developing

				high-quality, rigorous clinical experiences (that include student teaching

				experience) in which students participate while enrolled in a teacher

				preparation program, lasting not less than 1 term, through dissemination of

				best practices, technical assistance, or other relevant activities; and</text>

											</subparagraph><subparagraph id="IDEA6EF0E1A5F4402EA8FF7C1023B59376"><enum>(E)</enum><text>in collecting and

				using data, in collaboration with institutions of higher education, schools,

				and local educational agencies, on teacher retention rates, by school, to

				evaluate and strengthen the effectiveness of the State’s teacher support

				system.</text>

											</subparagraph></paragraph><paragraph id="IDE03EF42963EC480FA19DFFF818C46F36"><enum>(2)</enum><header>Certification

				or licensure requirements</header><text>Reforming teacher certification or

				licensure requirements to ensure that—</text>

											<subparagraph id="ID7F5E560203CB4DBC834B0FCA1A2E2D0A"><enum>(A)</enum><text>teachers have the

				academic content knowledge and teaching skills in the academic subject areas

				that the teachers teach that are necessary to help students meet challenging

				State student academic achievement standards, as required under section

				1111(b)(1) of the <act-name parsable-cite="ESEA">Elementary and Secondary

				Education Act of 1965</act-name>;</text>

											</subparagraph><subparagraph id="ID2D7E0CE82E7D4AC9BF985C84987A17AC"><enum>(B)</enum><text>such requirements

				are aligned with challenging State academic content standards, as required

				under section 1111(b)(1) of the <act-name parsable-cite="ESEA">Elementary and

				Secondary Education Act of 1965</act-name>;</text>

											</subparagraph><subparagraph id="ID7A48C603D8CD4DC8BECA1205DF82849D"><enum>(C)</enum><text>teacher

				certification and licensure assessments are—</text>

												<clause id="ID6985153E59DE4BFCA3B3AE34B72A2D84"><enum>(i)</enum><text>used for purposes

				for which such assessments are valid and reliable;</text>

												</clause><clause id="ID0A7D3BAA8FD347D5BD31D759DDE0AFD6"><enum>(ii)</enum><text>consistent with

				relevant, professional, and technical standards; and</text>

												</clause><clause id="ID1012FFB55BE04DF7BC4A9A966344258D"><enum>(iii)</enum><text>aligned with

				the reporting requirements of sections 205 and 206; and</text>

												</clause></subparagraph><subparagraph id="ID47816160A1EC4A4BBBA9647882743A2A"><enum>(D)</enum><text>such requirements

				for high-need academic subject areas (such as reading, mathematics, science,

				and foreign language, including less commonly taught languages) and high-need

				areas (such as special education, language instruction educational programs,

				and early childhood education) exist and reflect qualifications to help

				students meet high standards, which may include the development of a State test

				for such areas.</text>

											</subparagraph></paragraph><paragraph id="ID315F7D71F947482699BA159C2914E29A"><enum>(3)</enum><header>Evaluation</header>

											<subparagraph id="ID4C062EB2870948788CC2A70E32B9BB06"><enum>(A)</enum><header>Annual

				evaluation</header><text>An eligible State that receives a grant under this

				section shall evaluate annually the effectiveness of teacher preparation

				programs and professional development activities within the State. To the

				extent practicable, such evaluation shall examine—</text>

												<clause id="ID3FAE27C804244242893095954317A8D4"><enum>(i)</enum><text>teachers’

				contributions to improving student academic achievement, as measured by State

				academic assessments required under section 1111(b)(3) of the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name>; and</text>

												</clause><clause id="ID0E91B0A3E5B347948AA1DDB61B5CD56E"><enum>(ii)</enum><text>teacher mastery

				of the academic subject matter the teachers teach.</text>

												</clause></subparagraph><subparagraph id="ID92F950A677144ABCA651AC7C284FB567"><enum>(B)</enum><header>Public

				reporting</header><text>The eligible State shall make the information described

				in subparagraph (A) widely available through public means, such as posting on

				the Internet, distribution to the media, and distribution through public

				agencies, except such reporting shall not be made in a case in which the

				reporting of the data would reveal personally identifiable information about a

				teacher or student.</text>

											</subparagraph><subparagraph id="IDBD614CC3DC9C42079A670E2ACA54CE43"><enum>(C)</enum><header>Better

				measurement of effectiveness</header>

												<clause id="IDBF121C830C1F4D7486CD4D876568EC6D"><enum>(i)</enum><header>In

				general</header><text>An eligible State that receives a grant under this

				section and does not have the capacity to measure the effectiveness of teacher

				preparation programs and professional development activities within the State

				using available statewide data, shall use a portion of funds received under

				this section to enhance or expand the integration of existing data systems, as

				described in subsection (c)(7)(B), or develop an integrated statewide data

				system, as described in subsection (c)(7)(C), to better measure and provide

				information that will improve the effectiveness of teacher preparation programs

				on student learning and achievement, and the impact of pre-service and ongoing

				professional development on teacher placement and retention.</text>

												</clause><clause id="IDBC2EFDD2BF424B72B8D52C674996A77C"><enum>(ii)</enum><header>Technical

				quality; student privacy; funds from other sources</header><text>In carrying

				out clause (i), the eligible State shall ensure—</text>

													<subclause id="ID01AC16C644A3403D9DA9BC06B20AA70C"><enum>(I)</enum><text>the technical

				quality of the data system to maximize the validity, reliability, and

				accessibility of the data;</text>

													</subclause><subclause id="ID9B39EA88866845FEAE89DB63CDB8117C"><enum>(II)</enum><text>that student

				privacy is protected and that individually identifiable information about

				students, their achievements, and their families remains confidential, in

				accordance with the Family Educational Rights and Privacy Act of 1974;

				and</text>

													</subclause><subclause id="ID98038904F4284A7AB056A282619C3E67"><enum>(III)</enum><text>that funds

				provided under this section are used to supplement State efforts to enhance or

				expand the integration of existing data systems or to develop an integrated

				statewide data system.</text>

													</subclause></clause></subparagraph></paragraph></subsection><subsection id="ID77766695B93D4460A4CE5741D8054753"><enum>(e)</enum><header>Allowable Uses

				of Funds</header><text>An eligible State that receives a grant under this

				section may use the grant funds to reform teacher preparation requirements, to

				coordinate with State activities under section 2113(c) of the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name> and subsections (a) and (b) of section 654 of the Individuals

				with Disabilities Education Act, and to ensure that current and future teachers

				are highly qualified, by carrying out any of the following activities:</text>

										<paragraph id="IDEBEFFE230E5A47C7B9EA169947C7ECF9"><enum>(1)</enum><header>Alternatives to

				traditional preparation for teaching and state certification or

				licensure</header><text>Providing prospective teachers with alternative routes

				to State certification or licensure and alternative route programs to become

				highly qualified teachers through—</text>

											<subparagraph id="IDE0D3E2F6A10F437BB2FB4CDC3BEF4878"><enum>(A)</enum><text>innovative

				approaches that reduce unnecessary barriers to State certification or licensure

				while producing highly qualified teachers;</text>

											</subparagraph><subparagraph id="ID16ADF225FC204A00A77E387B75BAB34B"><enum>(B)</enum><text>a selective means

				for admitting individuals into such programs that includes passage of State

				approved teacher examinations in appropriate subject areas;</text>

											</subparagraph><subparagraph id="ID34B34DECAFC34567AA978585F76AA919"><enum>(C)</enum><text>programs that

				help prospective teachers develop effective teaching skills and strategies

				through knowledge of research-based information on the learning process and

				learning practices;</text>

											</subparagraph><subparagraph id="IDD7EA3E3519A5448AA6BDA7836D3BC764"><enum>(D)</enum><text>programs that

				provide support to teachers during the teachers’ initial years in the

				profession; and</text>

											</subparagraph><subparagraph id="IDF9AA25E6712945E683C14C18F6A04E80"><enum>(E)</enum><text>alternative

				routes to State certification or licensure of teachers for qualified

				individuals, including mid-career professionals from other occupations,

				paraprofessionals, former military personnel, and recent college graduates with

				records of academic distinction.</text>

											</subparagraph></paragraph><paragraph id="ID350E1732A399480095A0FB6401ECBCA6"><enum>(2)</enum><header>Innovative

				programs</header><text>Planning and implementing innovative programs to enhance

				the ability of institutions of higher education, including charter colleges of

				education, or university and local educational agency partnership schools, to

				prepare highly qualified teachers, which programs shall—</text>

											<subparagraph id="ID93A1BC32CBF240DDB8C78BF066263F6D"><enum>(A)</enum><text>permit

				flexibility in the manner in which the institution of higher education meets

				State requirements as long as graduates, during the graduates’ initial years in

				the profession, increase student academic achievement;</text>

											</subparagraph><subparagraph id="ID76C147C8EB274E03B0DB7FD985635FEB"><enum>(B)</enum><text>provide a

				description in the application of long-term data gathered from teachers’

				performance over multiple years in the classroom regarding the teachers’

				ability to increase student academic achievement;</text>

											</subparagraph><subparagraph id="ID328B5FFDC33149D79FA3DABA04FA4AC3"><enum>(C)</enum><text>ensure

				high-quality preparation of teachers from underrepresented groups;</text>

											</subparagraph><subparagraph id="ID9B163D818BBB4C3680D2171B87915BC9"><enum>(D)</enum><text>create

				performance measures that can be used to document the effectiveness of

				innovative methods for preparing highly qualified teachers; and</text>

											</subparagraph><subparagraph id="ID3406BA7FBE534846AC45C23F67D7E539"><enum>(E)</enum><text>develop

				frameworks for exemplary induction programs informed by research and best

				practices.</text>

											</subparagraph></paragraph><paragraph id="ID20FCE1480BBF432CA96F32299000D7E7"><enum>(3)</enum><header>Teacher

				recruitment and retention</header><text>Undertaking activities that develop and

				implement effective mechanisms to ensure that local educational agencies and

				schools are able to recruit and retain highly qualified teachers, which may

				include the following activities:</text>

											<subparagraph id="ID13A738D7ACA44D0AA50FA94CEEA5FFFF"><enum>(A)</enum><header>Performance

				based compensation</header><text>Assisting local educational agencies in

				developing—</text>

												<clause id="ID63E474C327554CE0854B0135DDB689E8"><enum>(i)</enum><text>performance

				systems that reward teachers who increase student academic achievement and take

				on additional responsibilities, such as teacher mentoring and serving as master

				teachers; and</text>

												</clause><clause id="ID9487415322A64E1389870875A30438E2"><enum>(ii)</enum><text>strategies that

				provide differential and bonus pay in high-need local educational agencies to

				recruit and retain—</text>

													<subclause id="IDA081BC3B30784ED6B2AC6393BB43CEF8"><enum>(I)</enum><text>principals;</text>

													</subclause><subclause id="IDE2CF5DD4B3E547C888681A615D09A991"><enum>(II)</enum><text>highly qualified

				teachers who teach in high-need academic subject areas (such as reading,

				mathematics, science, and foreign language, including less commonly taught

				languages);</text>

													</subclause><subclause id="ID1F2402DD80C7492B9B36BC65742A16FE"><enum>(III)</enum><text>highly

				qualified teachers who teach in schools identified for school improvement under

				section 1116(b) of the <act-name parsable-cite="ESEA">Elementary and Secondary

				Education Act of 1965</act-name>;</text>

													</subclause><subclause id="IDFDB71717FB4441BF847E3255B4C6ED36"><enum>(IV)</enum><text>highly qualified

				special education teachers;</text>

													</subclause><subclause id="IDC10089E269D247EEB6AA71EBFB3A7E63"><enum>(V)</enum><text>highly qualified

				teachers specializing in teaching children who are limited English proficient;

				and</text>

													</subclause><subclause id="ID6DF882801A9D471D9E49AE2F9372581B"><enum>(VI)</enum><text>highly qualified

				teachers in low-income urban and rural schools or districts.</text>

													</subclause></clause></subparagraph><subparagraph id="ID5DE4C36B9BDE4B679C5627EA629F3DDB"><enum>(B)</enum><header>Additional

				mechanisms</header><text>Developing and implementing effective mechanisms to

				ensure that local educational agencies and schools are able to—</text>

												<clause id="ID96C52988945F40F78821EA2184C2D9BA"><enum>(i)</enum><text>address needs

				identified with respect to—</text>

													<subclause id="IDCBE9B5B76A274299ADD1D32CFA18B5BA"><enum>(I)</enum><text>underrepresented

				groups;</text>

													</subclause><subclause id="ID61B1AEDC92354282898508B58E3A3F84"><enum>(II)</enum><text>high-need

				academic subject areas (such as reading, mathematics, science, and foreign

				language, including less commonly taught languages);</text>

													</subclause><subclause id="ID04295B508B214A80914B9162966FFFDA"><enum>(III)</enum><text>high-need areas

				(such as special education, language instruction educational programs for

				limited English proficient students, and early childhood education);</text>

													</subclause><subclause id="ID49D87EDE1CDA43D292D0B4D0F1FE52AB"><enum>(IV)</enum><text>high-need

				communities, such as rural and urban areas; and</text>

													</subclause><subclause id="ID742553F236FC46CEA7F5CC63A703EA55"><enum>(V)</enum><text>high-need

				schools, including schools with high rates of teacher turnover;</text>

													</subclause></clause><clause id="IDEF5F9F168ECA4F95B5E51AA228B06788"><enum>(ii)</enum><text>offer teacher

				mentoring for new teachers during such teachers’ initial years of teaching;

				and</text>

												</clause><clause id="ID108957221161474D8687690A791B434C"><enum>(iii)</enum><text>provide access

				to ongoing professional development and innovative training opportunities for

				teachers and administrators.</text>

												</clause></subparagraph><subparagraph id="IDDB62948FD1E34592B1947A118F844E13"><enum>(C)</enum><header>Teacher

				advancement</header><text>Assisting local educational agencies in developing

				teacher advancement and retention initiatives that promote professional growth

				and emphasize multiple career paths (such as paths to becoming a highly

				qualified mentor teacher or exemplary teacher) and pay differentiation.</text>

											</subparagraph><subparagraph id="ID5F2E12FD0FCC41D48B601BD52307FAF0"><enum>(D)</enum><header>Recruit

				qualified professionals</header><text>Developing recruitment programs or

				assisting local educational agencies in—</text>

												<clause id="ID7AAC06D0426C488CA1BF9E33D9FE4233"><enum>(i)</enum><text>recruiting

				qualified professionals from other fields, including highly qualified

				paraprofessionals (as defined in section 2102 of the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name>); and</text>

												</clause><clause id="IDE96438D2777C44E4A581B299724C1E15"><enum>(ii)</enum><text>providing such

				professionals with alternative routes to teacher certification or

				licensure.</text>

												</clause></subparagraph><subparagraph id="ID3EFA09720B3C48C5B6358E7D6BF977D0"><enum>(E)</enum><header>Underrepresented

				populations</header><text>Providing increased opportunities for minorities,

				individuals with disabilities, and other individuals underrepresented in the

				teaching profession to become highly qualified teachers.</text>

											</subparagraph><subparagraph id="IDFD7882FBCE9848D184DC749A71C80209"><enum>(F)</enum><header>Rural education

				recruitment and retention programs</header><text>Making grants to rural school

				districts, or a consortia of rural school districts, to implement—</text>

												<clause id="ID0C0172326DE34B81B790B7F5829E560C"><enum>(i)</enum><text>teacher

				recruitment strategies, which may include tuition assistance, student loan

				forgiveness, housing assistance, bonus pay, and other effective

				approaches;</text>

												</clause><clause id="IDF19EB1E0C0FA44BC9F52FF73C0A29178"><enum>(ii)</enum><text>teacher

				retention strategies, such as mentoring programs and ongoing opportunities for

				professional growth and advancement; and</text>

												</clause><clause id="ID89AAFBE0C85E41D88485622CE76AC25C"><enum>(iii)</enum><text>partnerships

				with institutions of higher education designed to—</text>

													<subclause id="IDD47742FE6CFC4F20872E1949C0CC294C"><enum>(I)</enum><text>prepare beginning

				teachers to teach; and</text>

													</subclause><subclause id="IDC5354060E6814F19A4901E8D5BB7642E"><enum>(II)</enum><text>assist teachers

				(including teachers who teach multiple subjects) to become highly

				qualified.</text>

													</subclause></clause></subparagraph></paragraph><paragraph id="IDB23704F289D641FEB210CF85A3D29BD1"><enum>(4)</enum><header>Teacher

				scholarships and support</header><text>Providing—</text>

											<subparagraph id="ID866E9F90E6DE477CA8EE3D59EB6CE28C"><enum>(A)</enum><text>scholarships to

				help students, such as individuals who have been accepted by, or who are

				enrolled in, a program of undergraduate education or initial teacher

				preparation at an institution of higher education, pay the costs of tuition,

				room, board, and other expenses of completing a teacher preparation program,

				if—</text>

												<clause id="IDEE0AE7A833E74A9AB564039EFA907926"><enum>(i)</enum><text>the Secretary

				establishes such requirements as the Secretary determines necessary to ensure

				that recipients of scholarships under this section who complete teacher

				preparation programs—</text>

													<subclause id="IDDB2C2D708BAF4D6C9CF8BCFF82D6E3D1"><enum>(I)</enum><text>subsequently

				teach in an early childhood education program or a high-need local educational

				agency for a period of time equivalent to the period of time for which the

				recipient received scholarship assistance, plus an additional 1 year; or</text>

													</subclause><subclause id="ID491D26C74A194EF4921E32E1C5FC1F29"><enum>(II)</enum><text>repay the amount

				of the scholarship if the recipient does not teach as described in subclause

				(I); and</text>

													</subclause></clause><clause id="ID7CFF4B1D362743E9AE1F7C034E68B99F"><enum>(ii)</enum><text>the eligible

				State provides an assurance that the eligible State will recruit minority

				students to become highly qualified teachers;</text>

												</clause></subparagraph><subparagraph id="IDA970F8A15C0D4BCEB359B54C53DE0512"><enum>(B)</enum><text>support services,

				if needed, to enable scholarship recipients to complete postsecondary education

				programs, or to move from a career outside of the field of education into a

				teaching career; and</text>

											</subparagraph><subparagraph id="ID99DFE79D30574C258150118B2F7D4CBB"><enum>(C)</enum><text>follow-up

				services to former scholarship recipients during the recipients’ initial years

				of teaching.</text>

											</subparagraph></paragraph><paragraph id="IDE65E3544C4E94EAFB0396C0E3C5836FD"><enum>(5)</enum><header>Teacher

				removal</header><text>Developing and implementing effective mechanisms to

				ensure that local educational agencies and schools are able to expeditiously

				remove incompetent or unqualified teachers consistent with procedures to ensure

				due process for the teachers.</text>

										</paragraph><paragraph id="ID4619FD57EC4040D4A58C179553F27EB5"><enum>(6)</enum><header>Teacher

				effectiveness</header><text>Developing—</text>

											<subparagraph id="ID93B871253D3E4A78858E20F56594EE3C"><enum>(A)</enum><text>systems to

				measure the effectiveness of teacher preparation programs and professional

				development programs; and</text>

											</subparagraph><subparagraph id="ID20E7A46CCBE2416ABFDDCF46C458569A"><enum>(B)</enum><text>strategies to

				document gains in student academic achievement or increases in teacher mastery

				of the academic subject matter the teachers teach, as a result of such

				programs.</text>

											</subparagraph></paragraph><paragraph id="ID81272DC0F0254AF2B302CCAC0132A2CF"><enum>(7)</enum><header>Early childhood

				educators</header><text>Developing strategies to improve and expand teacher

				preparation programs for early childhood educators to teach in early childhood

				education programs.</text>

										</paragraph><paragraph id="ID6DF415F3262340E49AE88D046E294BDA"><enum>(8)</enum><header>Professional

				development</header><text>Developing and enhancing high-quality professional

				development, instructional materials, and relevant educational

				materials.</text>

										</paragraph><paragraph id="ID45AC09F539744D0A86CE33E7CFF67278"><enum>(9)</enum><header>Technology</header><text>Assisting

				teachers to use technology effectively, including use for instructional

				techniques and the collection, management, and analysis of data to improve

				teaching, learning, and decision making for the purpose of increasing student

				academic achievement.</text>

										</paragraph><paragraph id="ID72200420EFED43188D0132C8EA2B07BD"><enum>(10)</enum><header>Areas of

				instructional shortage</header><text>Increasing the number of—</text>

											<subparagraph id="ID1E36AC08E70049E8A62C2C9AF280BDF2"><enum>(A)</enum><text>teachers in the

				classroom providing instruction in high-need academic subject areas (such as

				reading, mathematics, science, and foreign language, including less commonly

				taught languages) and high-need areas (such as special education, language

				instruction educational programs for limited English proficient students, and

				early childhood education); and</text>

											</subparagraph><subparagraph id="ID75A5A2D5E4EE4EFEB02D37FBC2578D97"><enum>(B)</enum><text>special education

				faculty dedicated to preparing highly qualified special education teachers at

				institutions of higher education.</text>

											</subparagraph></paragraph><paragraph id="IDC6926B58442E4A5D9E243C5CC43AC111"><enum>(11)</enum><header>Technical

				assistance</header><text>Providing technical assistance to low-performing

				programs of teacher preparation within institutions of higher education

				identified under section 207(a).</text>

										</paragraph><paragraph id="ID2A25A2659AA84708AE74CEBCE945F9E1"><enum>(12)</enum><header>Evaluation

				support</header><text>Performing data collection, evaluation, and reporting to

				meet the requirements of subsection (d)(3).</text>

										</paragraph><paragraph id="ID85CD86464B664F5EA17CDE979FB3B497"><enum>(13)</enum><header>Professional

				advancement</header><text>Developing a professional advancement system

				to—</text>

											<subparagraph id="ID213F4BCDE7AD4DD99307E865D780BCA3"><enum>(A)</enum><text>initiate or

				enhance a system in which highly qualified teachers who pursue advanced

				licensure levels are required to demonstrate increased competencies and

				undertake increased responsibilities for increased compensation as the teachers

				progress through levels established by the State; or</text>

											</subparagraph><subparagraph id="IDED6AAF8428C94655902E51894C5560AC"><enum>(B)</enum><text>provide

				opportunities for professional growth, including through—</text>

												<clause id="ID6D88A2CCCFA74081BDD4C81E058E86A4"><enum>(i)</enum><text>a

				nationally recognized advance credentialing system; or</text>

												</clause><clause id="IDEF0231C9900242C4B6F76985D244DF5C"><enum>(ii)</enum><text>special

				certification in advanced placement or international baccalaureate content,

				teaching gifted and talented students, and pedagogy.</text>

												</clause></subparagraph></paragraph></subsection><subsection id="ID1660E00EE58D4827946601E30602874B"><enum>(f)</enum><header>Supplement, Not

				Supplant</header><text>Funds made available under this section shall be used to

				supplement, and not supplant, other Federal, State, and local funds that would

				otherwise be expended to carry out activities under this section.</text>

									</subsection></section><section id="IDA9B5C45E290146449D418EB8173E8B16"><enum>203.</enum><header>Partnership

				grants</header>

									<subsection id="ID1541C112E59D4E9A9210AB8B1A6AE7C2"><enum>(a)</enum><header>Grants</header><text>From

				amounts made available under section 209(a)(2) for a fiscal year, the Secretary

				is authorized to award grants under this section, on a competitive basis, to

				eligible partnerships to enable the eligible partnerships to carry out the

				activities described in subsections (e) and (f).</text>

									</subsection><subsection id="ID7B8B57FDDAF249D390EAA031C03F2F25"><enum>(b)</enum><header>Definitions</header>

										<paragraph id="IDD9393E6906EE40BD8B0B20074B2203F9"><enum>(1)</enum><header>Eligible

				partnership</header>

											<subparagraph id="IDFD783CF050FE48589A6253FD6221993C"><enum>(A)</enum><header>In

				general</header><text>In this part, the term <term>eligible partnership</term>

				means an entity that shall include—</text>

												<clause id="ID8D3CA14F76AC4AB2B358650004840CDE"><enum>(i)</enum><text>a

				partner institution;</text>

												</clause><clause id="IDA974DCB722034955B3EDDE2DE4212A3B"><enum>(ii)</enum><text>a school of arts

				and sciences;</text>

												</clause><clause id="ID4C41635EFA62468D86318CA1A08DF9DB"><enum>(iii)</enum><text>a high-need

				local educational agency and a school or a consortium of schools served by the

				agency; and</text>

												</clause><clause id="ID0E50DB2993E94B8A9F96BD87934097F7"><enum>(iv)</enum><text>at least 1

				individual or entity described in subparagraph (B).</text>

												</clause></subparagraph><subparagraph id="ID6FAAAFE2C9AF465BA6A15D2958812401"><enum>(B)</enum><header>Additional

				individuals and entities</header><text>In this part, the term <term>eligible

				partnership</term> means an entity that shall include at least 1 of the

				following:</text>

												<clause id="ID06C9A97C0D1E456783A51A3880A9CBFC"><enum>(i)</enum><text>A

				Governor.</text>

												</clause><clause id="ID9C507D64802F48E3BD419CA1C1BFC6CC"><enum>(ii)</enum><text>A State

				educational agency.</text>

												</clause><clause id="ID73D69878B5D546C5B076AFF7C07DCE38"><enum>(iii)</enum><text>A State board

				of education.</text>

												</clause><clause id="IDC13AE1FB5BA145578100E4324C6185AC"><enum>(iv)</enum><text>A State agency

				for higher education.</text>

												</clause><clause id="ID2F110425F3C947508EBD83AF904A21F9"><enum>(v)</enum><text>A

				school or department within the partner institution focusing on education,

				psychology, human development, or a department with comparable expertise in the

				disciplines of teaching, learning, and child and adolescent development.</text>

												</clause><clause id="IDB35D7B998C0742B889A6B5C05688A91F"><enum>(vi)</enum><text>An institution

				of higher education or a department within such institution, not described in

				subparagraph (A).</text>

												</clause><clause id="ID6BA251BACCC84C9F8C459FD095413265"><enum>(vii)</enum><text>A public

				charter school.</text>

												</clause><clause id="ID60B12A05346A4D6094BCAE3A7BF44754"><enum>(viii)</enum><text>A public or

				private elementary school or secondary school.</text>

												</clause><clause id="IDC7993E8CBE6643D08D095A85DB420A4C"><enum>(ix)</enum><text>A public or

				private nonprofit educational organization.</text>

												</clause><clause id="ID9975DAEB92FA425FBED2E2F2FF962D0D"><enum>(x)</enum><text>A

				business.</text>

												</clause><clause id="ID1CA1F2518485438BA3162A4B6B3AD3FB"><enum>(xi)</enum><text>A science-,

				mathematics-, or technology-oriented entity.</text>

												</clause><clause id="ID46813EDC8AA34E938FFAD927C9D9AB7A"><enum>(xii)</enum><text>An early

				childhood education program.</text>

												</clause><clause id="ID3D66696A8B29468DA3A1CF289D519C93"><enum>(xiii)</enum><text>A teacher

				organization.</text>

												</clause><clause id="ID719E555C77C74C7DA14E596D9827D14D"><enum>(xiv)</enum><text>An educational

				service agency.</text>

												</clause><clause id="ID59D9AA209A1249E2881B0517CAD62F3D"><enum>(xv)</enum><text>A consortium of

				local educational agencies.</text>

												</clause><clause id="IDA5D939EAB9ED41818DBE670261F8113D"><enum>(xvi)</enum><text>A nonprofit

				telecommunications entity.</text>

												</clause></subparagraph></paragraph><paragraph id="ID61121596E2B44E0F93F9062537EFB307"><enum>(2)</enum><header>Partner

				institution</header><text>In this section, the term <term>partner

				institution</term> means an institution of higher education, which may include

				a 2-year institution of higher education offering a dual program with a 4-year

				institution of higher education, that has a teacher preparation program—</text>

											<subparagraph id="ID5EE0BA46FCB74052BE6B0E41C9C3B0F8"><enum>(A)</enum><text>whose graduates

				exhibit strong performance on State-determined qualifying assessments for new

				teachers through—</text>

												<clause id="IDE5837B9097D543ED8FC503CE72CAD49B"><enum>(i)</enum><text>demonstrating

				that 80 percent or more of the graduates of the program who intend to enter the

				field of teaching have passed all of the applicable State qualification

				assessments for new teachers, which shall include an assessment of each

				prospective teacher’s subject matter knowledge in the content area in which the

				teacher intends to teach; or</text>

												</clause><clause id="IDE5D4AF82C5F34D3FA068A77D56042758"><enum>(ii)</enum><text>being ranked

				among the highest-performing teacher preparation programs in the State as

				determined by the State—</text>

													<subclause id="ID92003FCAF0E8445094B11A73BF851BB9"><enum>(I)</enum><text>using criteria

				consistent with the requirements for the State report card under section

				206(b); and</text>

													</subclause><subclause id="IDFCB2EE1EF06447AFB2386DE66F1B2ED6"><enum>(II)</enum><text>using the State

				report card on teacher preparation required under section 206(b), after the

				first publication of such report card and for every year thereafter; or</text>

													</subclause></clause></subparagraph><subparagraph id="IDCA5BF6B1E0A74B9ABCE845B12B2DA08A"><enum>(B)</enum><text>that requires all

				the students of the program to meet high academic standards and participate in

				intensive clinical experience, and—</text>

												<clause id="IDE9B3585F5A2344E8A04891F3950B0CB1"><enum>(i)</enum><text>in the case of

				secondary school candidates, to successfully complete—</text>

													<subclause id="IDE706DC7799BA4501A3D76DB4B81E54FF"><enum>(I)</enum><text>a major or its

				equivalent in coursework in the academic subject area in which the candidate

				intends to teach; or</text>

													</subclause><subclause id="ID41CA9AB5441F4C40A0AC442AA848C629"><enum>(II)</enum><text>a related major

				in the academic subject area in which the candidate intends to teach;</text>

													</subclause></clause><clause id="ID2167397D75654406AF7918B43C7DD954"><enum>(ii)</enum><text>in the case of

				elementary school candidates, to successfully complete—</text>

													<subclause id="ID482558109E6A4AD9A5B11C433A36EAC6"><enum>(I)</enum><text>an academic major

				or its equivalent in coursework in the arts and sciences; or</text>

													</subclause><subclause id="IDB5150D666CB4403DAE073B08D6B66FC9"><enum>(II)</enum><text>a major in

				elementary education with a significant amount of coursework in the arts and

				sciences; and</text>

													</subclause></clause><clause id="IDD10AF567549240D1BE62550163DB8C23"><enum>(iii)</enum><text>in the case of

				early childhood educators, to become fully competent and meet degree

				requirements, as established by the State.</text>

												</clause></subparagraph></paragraph></subsection><subsection id="ID6129F1539EAF4D03A1D660BA6D4D5593"><enum>(c)</enum><header>Application</header><text>Each

				eligible partnership desiring a grant under this section shall submit an

				application to the Secretary at such time, in such manner, and accompanied by

				such information as the Secretary may require. Each such application shall

				contain—</text>

										<paragraph id="IDCEA06E2EDF0148DFAD796449D757AE4B"><enum>(1)</enum><text>a needs

				assessment of all the partners with respect to the preparation, induction, and

				professional development of early childhood educators, general and special

				education teachers, and principals;</text>

										</paragraph><paragraph id="ID4E679D68CC634E4DBE0AFC273D73D10E"><enum>(2)</enum><text>a description of

				the extent to which the teacher preparation program of the eligible partnership

				prepares new teachers with effective teaching skills;</text>

										</paragraph><paragraph id="ID0D9416C63E1F482EAEBEB30B3E6B2CDA"><enum>(3)</enum><text>a description of

				how the eligible partnership will coordinate with other teacher preparation or

				professional development programs, including those funded under the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name> and the Individuals with Disabilities Education Act, and how

				the activities of the eligible partnership will be consistent with State,

				local, and other education reform activities that promote student

				achievement;</text>

										</paragraph><paragraph id="ID77AEF2F1F6AF468B9BC1F3D21F3EE1E6"><enum>(4)</enum><text>a resource

				assessment that describes the resources available to the eligible partnership,

				the intended use of the grant funds (including a description of how the grant

				funds will be fairly distributed), and the commitment of the resources of the

				eligible partnership to the activities assisted under this part, including

				financial support, faculty participation, time commitments, and continuation of

				the activities when the grant period ends;</text>

										</paragraph><paragraph id="IDDC21A0C172F442208F74D01FFDA45FFC"><enum>(5)</enum><text>a description

				of—</text>

											<subparagraph id="IDF554F04897DA455085CDCE0D9ABCC257"><enum>(A)</enum><text>how the eligible

				partnership will meet the purposes of this part;</text>

											</subparagraph><subparagraph id="ID57AB774304334D3E9C58E8210844B2EB"><enum>(B)</enum><text>how the eligible

				partnership will carry out the activities required under subsection (e) and any

				permissible activities under subsection (f);</text>

											</subparagraph><subparagraph id="IDC17A1EC15D314E4696EC5C644609DFE7"><enum>(C)</enum><text>the eligible

				partnership’s evaluation plan pursuant to section 205(b);</text>

											</subparagraph><subparagraph id="ID1ED3FC32A74E4103B14F9181D34E0EB1"><enum>(D)</enum><text>how the eligible

				partnership will align the teacher preparation program with the challenging

				student academic achievement standards, State early learning standards for

				early childhood education programs (where applicable), and challenging academic

				content standards, established by the State in which the partnership is

				located;</text>

											</subparagraph><subparagraph id="IDD96EDE7C80BC45FCA0F58F0C6EE320E3"><enum>(E)</enum><text>how faculty of

				the teacher preparation program at the partner institution will serve, over the

				period of the grant, with highly qualified teachers in the classrooms of the

				high-need local educational agency included in the eligible partnership;</text>

											</subparagraph><subparagraph id="ID887A451C651C4F2BAE969D2776B99ECF"><enum>(F)</enum><text>how the eligible

				partnership will ensure that teachers, principals, and superintendents in all

				schools (including private schools, as appropriate) located in the geographic

				areas served by an eligible partnership under this section are provided

				information about the activities carried out with funds under this section,

				including through electronic means;</text>

											</subparagraph><subparagraph id="IDEC4A509C616948708231DCB19B991228"><enum>(G)</enum><text>how the eligible

				partnership will design, implement, or enhance the clinical program component,

				including promoting close supervision of student teachers by faculty of the

				teacher preparation program and mentor teachers while in the program and during

				the student teachers’ initial years of teaching if hired by schools included in

				the eligible partnership;</text>

											</subparagraph><subparagraph id="ID49D4F1461A85497E8ECEDD47BCE2CB16"><enum>(H)</enum><text>how the eligible

				partnership will develop or enhance an induction program that includes

				high-quality professional development to support new teachers during the

				teachers’ initial years of teaching that includes teacher mentoring and

				collaborating with teachers in the same grade, department, or field; and</text>

											</subparagraph><subparagraph id="ID16AD7428B30B462B9557E4712797F5A5"><enum>(I)</enum><text>how the eligible

				partnership will collect, analyze, use, and disseminate data on the retention

				of all teachers in schools located in the geographic areas served by the

				eligible partnership to evaluate the effectiveness of its teacher support

				system; and</text>

											</subparagraph></paragraph><paragraph id="ID208FC955ADC74585A1DD5048C6679930"><enum>(6)</enum><text>an assurance that

				the eligible partnership will carry out each of the activities described in

				paragraph (5).</text>

										</paragraph></subsection><subsection id="ID94772360177C4413AD6E58BE24017218"><enum>(d)</enum><header>Consultation</header>

										<paragraph id="ID7849555A4C3A4A798637A3555DB43C7A"><enum>(1)</enum><header>In

				general</header><text>Members of an eligible partnership that receives a grant

				under this section shall engage in regular consultation throughout the

				development and implementation of programs and activities under this

				section.</text>

										</paragraph><paragraph id="ID09C3FCAF24E242D983F0508993A817A8"><enum>(2)</enum><header>Regular

				communication</header><text>To ensure timely and meaningful consultation,

				regular communication shall occur among all members of the eligible

				partnership, including the high-need local educational agency. Such

				communication shall continue throughout the implementation of the grant and the

				assessment of programs and activities under this section.</text>

										</paragraph><paragraph id="ID71F1D72EF7BA459789EB2063C43B3737"><enum>(3)</enum><header>Written

				consent</header><text>The Secretary may approve changes in grant activities

				only if a written consent signed by all members of the eligible partnership is

				submitted to the Secretary.</text>

										</paragraph></subsection><subsection id="IDA279FAA5FC5C4F79A6CD5FF5C13C53A6"><enum>(e)</enum><header>Required Uses

				of Funds</header><text>An eligible partnership that receives a grant under this

				section shall use the grant funds to carry out each of the following

				activities:</text>

										<paragraph id="ID7672C6B3B7D147CBAD198C4372509E71"><enum>(1)</enum><header>Reforms</header><text>Ensuring

				that each teacher preparation program and each early childhood educator

				preparation program, where applicable, of the eligible partnership that is

				assisted under this section addresses the needs identified in the needs

				assessment of the partnership and is preparing current or prospective teachers

				to be highly qualified, and, where applicable, early childhood educators to be

				fully competent, to understand scientifically based research and its

				applicability, and to use technology effectively, including use of

				instructional techniques to improve student academic achievement, and in the

				case of early childhood educators, techniques to improve children’s cognitive,

				social, emotional, and physical development, by assisting such programs—</text>

											<subparagraph id="IDBA6980D6D21A4D309F029DA6885F8788"><enum>(A)</enum><text>in retraining

				faculty;</text>

											</subparagraph><subparagraph id="IDC9B59F3046474994B81DFB2CE56B8301"><enum>(B)</enum><text>in designing (or

				redesigning) teacher preparation programs so that such programs—</text>

												<clause id="IDE2ECFFA9C24844C2805012A2A8380EFB"><enum>(i)</enum><text>are based on

				rigorous academic content and scientifically based research (including

				scientifically based reading research), and aligned with challenging State

				academic content standards, as required under section 1111(b)(1) of the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name>, and for early childhood educators, aligned with State early

				learning standards;</text>

												</clause><clause id="IDED8EF322F8734291A88CA63D1DD5C5D8"><enum>(ii)</enum><text>promote

				effective teaching skills;</text>

												</clause><clause id="IDC5C16E4947C94D71A28D703579AFC92B"><enum>(iii)</enum><text>promote

				understanding of effective instructional strategies for students with special

				needs, including students with disabilities, students who are limited English

				proficient, students who are gifted and talented, and children in early

				childhood education programs; and</text>

												</clause><clause id="ID02283C7C13004F6884BA26DC9985B456"><enum>(iv)</enum><text>promote

				high-quality mathematics, science, and foreign language instruction, where

				applicable;</text>

												</clause></subparagraph><subparagraph id="IDDAA0B8A1A69B40189EFC4C75229402F9"><enum>(C)</enum><text>in ensuring

				collaboration with departments, programs, or units outside of the teacher

				preparation program in all academic content areas to ensure a successful

				combination of training in both teaching and such content; and</text>

											</subparagraph><subparagraph id="IDB922CDCE31A34948A133095E56708D3C"><enum>(D)</enum><text>in developing

				high-quality, rigorous clinical experiences, lasting not less than 1 term,

				through dissemination of best practices, technical assistance, or other

				relevant activities.</text>

											</subparagraph></paragraph><paragraph id="ID6583D0392E11401BA926D5877AAFA265"><enum>(2)</enum><header>Clinical

				experience and interaction</header><text>Improving sustained and high-quality

				preservice clinical experiences, including—</text>

											<subparagraph id="IDE9D4A37ADE6A48618C3AB395362FD9DE"><enum>(A)</enum><text>providing teacher

				mentoring; and</text>

											</subparagraph><subparagraph id="ID0A170E6F21284EF69382EFEAE4A567D9"><enum>(B)</enum><text>substantially

				increasing interaction between faculty at institutions of higher education and

				new and experienced teachers, principals, and other administrators at

				elementary schools or secondary schools, and providing support, including

				preparation time and release time, for such interaction.</text>

											</subparagraph></paragraph><paragraph id="ID6BBF9DCBD3C94D09954C5E955CDA779F"><enum>(3)</enum><header>Support

				programs for new teachers</header><text>Creating a program to support new

				teachers during the initial years of teaching (for not less than 1 year and not

				more than 3 years). Such program shall promote effective teaching skills and

				may include the following components:</text>

											<subparagraph id="IDC03F1409207E408FBD2F50C23640C425"><enum>(A)</enum><text>Development of

				skills in educational interventions based on scientifically based

				research.</text>

											</subparagraph><subparagraph id="ID67285069C73443E482E8605142FC3D5C"><enum>(B)</enum><text>Development of

				knowledge of scientifically based research on teaching and learning.</text>

											</subparagraph><subparagraph id="ID1B6AA38877194B269AA2957D30809A1A"><enum>(C)</enum><text>Inclusion of

				faculty who model the integration of research and practice in the

				classroom.</text>

											</subparagraph><subparagraph id="ID2AFCF26DC49143F88EF1C5F35BE4F55C"><enum>(D)</enum><text>Opportunities

				for—</text>

												<clause id="IDA747F9755AA8421DA09ED6DC7527180F"><enum>(i)</enum><text>high-quality

				teacher mentoring; and</text>

												</clause><clause id="ID97074BEC94BD41C4AF5E0180F6EF523F"><enum>(ii)</enum><text>additional

				professional development, dissemination of evidence-based research on

				educational practices, and professional development activities.</text>

												</clause></subparagraph><subparagraph id="ID8B2DEB37887641A094E0D9F869DF977F"><enum>(E)</enum><text>Interdisciplinary

				collaboration among exemplary teachers, faculty, researchers, and other staff

				who prepare new teachers in the learning process and the assessment of

				learning.</text>

											</subparagraph></paragraph></subsection><subsection id="ID15EB3A1E60054C10A16AE6FDE28198E4"><enum>(f)</enum><header>Allowable Uses

				of Funds</header><text>An eligible partnership that receives a grant under this

				section may use the grant funds to carry out any of the following activities

				that address the needs identified in the needs assessment:</text>

										<paragraph id="IDB81ACDEF51224FE48093C42C1131E00C"><enum>(1)</enum><header>Alternatives to

				traditional preparation for teaching and state certification or

				licensure</header><text>The activity described in section 202(e)(1).</text>

										</paragraph><paragraph id="IDD52DFA0AA119421989F17BC50B283B25"><enum>(2)</enum><header>Dissemination

				and coordination</header><text>Broadly disseminating information on effective

				practices used by the eligible partnership, and coordinating with the

				recruitment and training activities of the Governor, State board of education,

				State agency for higher education, State agency responsible for early childhood

				education, and State educational agency, as appropriate.</text>

										</paragraph><paragraph id="IDC4DFDD6E4DD94DDFAFDFBFA5FD6B8281"><enum>(3)</enum><header>Innovative

				programs</header><text>Developing innovative programs designed to provide

				graduates of programs funded under this title with opportunities to continue

				their education through supports and opportunities to improve instructional

				practices in the initial years of teaching, including the following:</text>

											<subparagraph id="ID622A2EACA53442BCA178F3A69CC7B00D"><enum>(A)</enum><header>Internships</header>

												<clause id="ID0BAB9A281206494690BCBD4F9977E660"><enum>(i)</enum><header>Teacher

				preparation enhancement internship</header><text>Developing a 1-year paid

				internship program for students who have completed an initial teacher

				preparation program, or alternative routes to State certification or licensure

				program, to enable such students to develop the skills and experience necessary

				for success in teaching, including providing intensive clinical training and

				combining in-service instruction in teacher methods and assessments with

				classroom observations, experiences, and practices. Such interns shall have a

				reduced teaching load and a mentor for assistance in the classroom.</text>

												</clause><clause id="IDBF0D8564DC2D4791B98F5B55513DE803"><enum>(ii)</enum><header>Mid-career

				professional internships</header><text>Developing a 1-year paid internship

				program for mid-career professionals from other occupations, former military

				personnel, and recent college graduates from fields other than teacher

				preparation with records of academic distinction to enable such individuals to

				develop the skills and experience necessary for success in teaching, including

				providing intensive clinical training and combining in-service instruction in

				teacher methods and assessments with classroom observations, experiences, and

				practices. Such interns shall have a reduced teaching load and a mentor for

				assistance in the classroom.</text>

												</clause></subparagraph><subparagraph id="ID5E964FCED9F14D2EA645B922CD066C3A"><enum>(B)</enum><header>Residency

				programs for new teachers</header><text>Supporting teachers in a residency

				program that provides an induction period for all new general education and

				special education teachers that includes—</text>

												<clause id="ID136AB236C30340C2AC2896EE9DE478C9"><enum>(i)</enum><text>a

				forum for information sharing among prospective teachers, teachers, principals,

				administrators, and participating faculty in the partner institution;

				and</text>

												</clause><clause id="ID2032D05769FA47CB8183DD9E68390D68"><enum>(ii)</enum><text>the application

				of scientifically based research on teaching and learning generated by entities

				such as the Institute of Education Sciences, and the National Research Council

				of the National Academies.</text>

												</clause></subparagraph><subparagraph id="ID665E8501FE3A40AA89F8FEBC8225194A"><enum>(C)</enum><header>Pathways for

				paraprofessionals to enter teaching</header><text>Creating intensive programs

				to provide the coursework and clinical experiences needed by highly qualified

				paraprofessionals, as defined in section 2102 of the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name>, to qualify for State teacher certification or licensure to

				become highly qualified teachers.</text>

											</subparagraph></paragraph><paragraph id="IDAFB855F06B3B4CDC8B19BEED009ED3B1"><enum>(4)</enum><header>Managerial and

				leadership skills</header><text>Developing and implementing proven mechanisms

				to provide principals and superintendents with effective managerial,

				leadership, curricula, and instructional skills that result in increased

				student academic achievement.</text>

										</paragraph><paragraph id="IDDBCD5D77174E4C6BBF7ABBD0416225C4"><enum>(5)</enum><header>Teacher

				scholarships and support</header><text>Providing—</text>

											<subparagraph id="ID19E5E01D9D38414FAAA2446D14647896"><enum>(A)</enum><text>scholarships to

				help students, such as individuals who have been accepted by, or who are

				enrolled in, a program of undergraduate education at an institution of higher

				education, pay the costs of tuition, room, board, and other expenses of

				completing a teacher preparation program, if—</text>

												<clause id="IDDAAD832D8C694A18AF62849E94E748B8"><enum>(i)</enum><text>the Secretary

				establishes such requirements as the Secretary determines necessary to ensure

				that recipients of scholarships under this paragraph who complete teacher

				preparation programs—</text>

													<subclause id="ID9924F7184B9A485DABEFA98AC2154241"><enum>(I)</enum><text>subsequently

				teach in a high-need local educational agency for a period of time equivalent

				to the period of time for which the recipient received the scholarship

				assistance, plus an additional 1 year; or</text>

													</subclause><subclause id="ID140D9925C06D4B27A79C75E37DA27E9D"><enum>(II)</enum><text>repay the amount

				of the scholarship if the recipient does not teach as described in subclause

				(I); and</text>

													</subclause></clause><clause id="IDA86B8E049E7C4DD7A41959875AB48987"><enum>(ii)</enum><text>the eligible

				partnership provides an assurance that the eligible partnership will recruit

				minority students to become highly qualified teachers;</text>

												</clause></subparagraph><subparagraph id="IDA126365A2EFD4A24952324F59A5248B4"><enum>(B)</enum><text>support services,

				if needed, to enable scholarship recipients to complete postsecondary education

				programs, or to transition from a career outside of the field of education into

				a teaching career; and</text>

											</subparagraph><subparagraph id="ID987AD89454234D7EB372D01C7409625F"><enum>(C)</enum><text>follow-up

				services for former scholarship recipients during the recipients’ initial years

				of teaching.</text>

											</subparagraph></paragraph><paragraph id="IDBF9370AACAAF4DB195847D6AE68F1C57"><enum>(6)</enum><header>Coordination

				with community colleges</header>

											<subparagraph id="ID7A7327855A594C4BBD0ED8E6D9DFFA7E"><enum>(A)</enum><header>Teacher

				preparation programs</header><text>Coordinating with 2-year institutions of

				higher education to implement teacher preparation programs, including through

				distance learning, for the purposes of allowing prospective teachers—</text>

												<clause id="ID64154BABE68A428186C7B7D70F8F70DD"><enum>(i)</enum><text>to obtain a

				bachelor’s degree and State certification or licensure; and</text>

												</clause><clause id="ID98221743355243768D13B07759692936"><enum>(ii)</enum><text>to become highly

				qualified teachers.</text>

												</clause></subparagraph><subparagraph id="ID148F45355BBF40A18F8ED45C209BA8CF"><enum>(B)</enum><header>Professional

				development</header><text>Coordinating with 2-year institutions of higher

				education to provide professional development that—</text>

												<clause id="IDFDEE50752083416A90381949F79A79EA"><enum>(i)</enum><text>improves the

				academic content knowledge of teachers in the academic subject areas in which

				the teachers are certified or licensed to teach, or in which the teachers are

				working toward certification or licensure to teach; and</text>

												</clause><clause id="ID55F241CD385E48D68F4C0E9C0F15F3FE"><enum>(ii)</enum><text>promotes

				effective teaching skills.</text>

												</clause></subparagraph></paragraph><paragraph id="ID8F2702600113480EBA0918FA62B36CFD"><enum>(7)</enum><header>Clinical

				experience in science, mathematics, and technology</header><text>Creating

				opportunities for clinical experience and training for teachers and prospective

				teachers through participation with professionals in business, research, and

				work environments in areas relating to science, mathematics, and technology,

				including opportunities for using laboratory equipment.</text>

										</paragraph><paragraph id="ID866472708D964F59B7746201604AF667"><enum>(8)</enum><text><header-in-text level="title">Professional development</header-in-text>Creating opportunities

				for enhanced and ongoing professional development for experienced general

				education and special education teachers, early childhood educators,

				principals, administrators, and faculty.</text>

										</paragraph><paragraph id="IDE7E589410FFA45C59E4A6258C87142B9"><enum>(9)</enum><header>Technology</header><text>The

				activity described in section 202(e)(9).</text>

										</paragraph><paragraph id="IDF173BA7B8E5541AD98A18611FD8D2F2F"><enum>(10)</enum><header>Areas of

				instructional shortage</header><text>Increasing the number of—</text>

											<subparagraph id="ID7B4D53F9B94A402B92C5291672108C5A"><enum>(A)</enum><text>teachers in the

				classroom providing instruction in high-need academic subject areas (such as

				reading, mathematics, science, and foreign language, including less commonly

				taught languages), and high-need areas (such as special education, language

				instruction educational programs for limited English proficient students, and

				early childhood education);</text>

											</subparagraph><subparagraph id="ID280920AC58CC41E88F53DB5B1BE38585"><enum>(B)</enum><text>special education

				faculty dedicated to preparing highly qualified special education teachers at

				institutions of higher education; and</text>

											</subparagraph><subparagraph id="IDC979132777CD4D7BB4D6152C8833E132"><enum>(C)</enum><text>faculty at

				institutions of higher education with expertise in instruction of students who

				are limited English proficient.</text>

											</subparagraph></paragraph><paragraph id="IDA722401609DA4124952E33F537147795"><enum>(11)</enum><header>Improving

				instruction</header><text>Improving instruction by—</text>

											<subparagraph id="ID25616200198D4B6A98864087075C4C66"><enum>(A)</enum><text>improving

				understanding and instruction in core academic subjects and other, specialized

				courses, such as geography, American history and government, and world history;

				and</text>

											</subparagraph><subparagraph id="ID04ACDBD20F0548839E84A3A0C2C2F035"><enum>(B)</enum><text>creating

				externships for teachers and prospective teachers for field experience and

				training through participation in business, research, and work environments in

				high-need academic subject areas (such as reading, mathematics, science, and

				foreign language, including less commonly taught languages) and high-need areas

				(such as special education, language instruction educational programs for

				limited English proficient students, and early childhood education).</text>

											</subparagraph></paragraph><paragraph id="ID5C885EA9ED4747ADBD9ADA5138BF9648"><enum>(12)</enum><header>Graduate

				programs</header><text>Developing, in collaboration with departments, programs,

				or units of both academic content and teacher education within a partner

				institution, master’s degree programs that meet the demonstrated needs of

				teachers in the high-need local educational agency participating in the

				eligible partnership for content expertise and teaching skills.</text>

										</paragraph><paragraph id="ID2DF901FB06224F9A91B5EDF35049F4E8"><enum>(13)</enum><header>Literacy

				teacher training</header><text>Establishing and implementing a program that

				strengthens content knowledge and teaching skills of secondary school teachers

				in literacy that—</text>

											<subparagraph id="ID323D8D65EA5944D79E0C05BC6C47DBDC"><enum>(A)</enum><text>provides teacher

				training and stipends for literacy coaches who train classroom teachers to

				implement literacy programs;</text>

											</subparagraph><subparagraph id="ID54C4EEC749F34E6E8C20B416F0D28792"><enum>(B)</enum><text>develops or

				redesigns rigorous research-based curricula that are aligned with challenging

				State academic content standards, as required under section 1111(b)(1) of the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name>, and with postsecondary standards for reading and

				writing;</text>

											</subparagraph><subparagraph id="ID898174909B01481FBB61F75D1444A567"><enum>(C)</enum><text>provides training

				and stipends for teachers to tutor students with intense individualized

				reading, writing, and subject matter instruction during or beyond the school

				day;</text>

											</subparagraph><subparagraph id="ID14FAED359B6642BB8DBC76F34D1038F1"><enum>(D)</enum><text>provides

				opportunities for teachers to plan and assess instruction with other teachers,

				school leaders, and faculty at institutions of higher education; and</text>

											</subparagraph><subparagraph id="ID7A2E946C316D4DD2BEC9E2236A904C5A"><enum>(E)</enum><text>establishes an

				evaluation and accountability plan for activities conducted under this

				paragraph to measure the impact of such activities.</text>

											</subparagraph></paragraph></subsection><subsection id="IDF25450D4CF9244F396C61F731B6B7019"><enum>(g)</enum><header>Construction</header><text>Nothing

				in this section shall be construed to prohibit an eligible partnership from

				using grant funds to coordinate with the activities of eligible partnerships in

				other States or on a regional basis through Governors, State boards of

				education, State educational agencies, State agencies responsible for early

				childhood education, local educational agencies, or State agencies for higher

				education.</text>

									</subsection><subsection id="ID503653B70C624B9FA7DCFE2A5064B6D4"><enum>(h)</enum><header>Supplement, Not

				Supplant</header><text>Funds made available under this section shall be used to

				supplement, and not supplant, other Federal, State, and local funds that would

				otherwise be expended to carry out activities under this section.</text>

									</subsection></section><section id="IDDDA333D3E19A42758E9DB692E80E5AC6"><enum>204.</enum><header>Administrative

				provisions</header>

									<subsection id="IDBD756A031C5D4D4C888BC6B7F1E4ED21"><enum>(a)</enum><header>Duration;

				Number of Awards; Payments</header>

										<paragraph id="IDDDE5D0B9B29E42089200E0CFA6DE5D41"><enum>(1)</enum><header>Duration</header>

											<subparagraph id="IDEB35A0380B32421AABCC12F45113790C"><enum>(A)</enum><header>Eligible

				states</header><text>Grants awarded to eligible States under this part shall be

				awarded for a period not to exceed 3 years.</text>

											</subparagraph><subparagraph id="ID8F5007E491544B5B99A5709D5C4152F2"><enum>(B)</enum><header>Eligible

				partnerships</header><text>Grants awarded to eligible partnerships under this

				part shall be awarded for a period of 5 years.</text>

											</subparagraph></paragraph><paragraph id="IDF7F48E24DE684DD2B80001C2F1B1CAA9"><enum>(2)</enum><header>Number of

				awards</header><text>An eligible partnership may not receive more than 1 grant

				during a 5-year period. Nothing in this title shall be construed to prohibit an

				individual member, that can demonstrate need, of an eligible partnership that

				receives a grant under this title from entering into another eligible

				partnership consisting of new members and receiving a grant with such other

				eligible partnership before the 5-year period described in the preceding

				sentence applicable to the eligible partnership with which the individual

				member has first partnered has expired.</text>

										</paragraph><paragraph id="ID06A612AC9E67488DB827817B3921FFFA"><enum>(3)</enum><header>Payments</header><text>The

				Secretary shall make annual payments of grant funds awarded under this

				part.</text>

										</paragraph></subsection><subsection id="IDA6D5E7D45A094B6AAF70B39973EA9F69"><enum>(b)</enum><header>Peer

				Review</header>

										<paragraph id="IDD5D7404B914243C3B651D98BAB0BB1A9"><enum>(1)</enum><header>Panel</header><text>The

				Secretary shall provide the applications submitted under this part to a peer

				review panel for evaluation. With respect to each application, the peer review

				panel shall initially recommend the application for funding or for

				disapproval.</text>

										</paragraph><paragraph id="ID45F6AF3B358544CE92D7D35966650F50"><enum>(2)</enum><header>Priority</header><text>In

				recommending applications to the Secretary for funding under this part, the

				panel shall—</text>

											<subparagraph id="ID4A48CA5BC6B347D8A292023A7811A272"><enum>(A)</enum><text>with respect to

				grants under section 202, give priority to eligible States—</text>

												<clause id="ID771D811F1C4249889172D6D7D75F5428"><enum>(i)</enum><text>that have

				innovative reforms to hold institutions of higher education with teacher

				preparation programs accountable for preparing teachers to become highly

				qualified and have effective teaching skills;</text>

												</clause><clause id="ID8F3D376C3B4F4040BF6BE799D2AB1857"><enum>(ii)</enum><text>that have

				innovative efforts aimed at reducing the shortage of highly qualified general

				and special education teachers, including in low-income urban and rural areas

				and in high-need academic subject areas (such as reading, mathematics, science,

				and foreign language, including less commonly taught languages); and</text>

												</clause><clause id="ID60142BF4A36242A2B4DE7F86395D5291"><enum>(iii)</enum><text>whose awards

				promote an equitable geographic distribution of grants among rural and urban

				areas; and</text>

												</clause></subparagraph><subparagraph id="ID45919FAFC81444D5B7A07DED3B7D6867"><enum>(B)</enum><text>with respect to

				grants under section 203, give priority—</text>

												<clause id="ID36A4E99B528A4EC2A1BA207F2667C770"><enum>(i)</enum><text>to applications

				from broad-based eligible partnerships that involve businesses and community

				organizations; and</text>

												</clause><clause id="ID154EDCD80FE0440899056DE783C0F68E"><enum>(ii)</enum><text>to eligible

				partnerships so that the awards promote an equitable geographic distribution of

				grants among rural and urban areas.</text>

												</clause></subparagraph></paragraph><paragraph id="ID28DC6D3D43814DB9AFD0485F19CF4EB1"><enum>(3)</enum><header>Secretarial

				selection</header><text>The Secretary shall determine, based on the peer review

				process, which applications shall receive funding and the amounts of the

				grants. In determining grant amounts, the Secretary shall take into account the

				total amount of funds available for all grants under this part and the types of

				activities proposed to be carried out.</text>

										</paragraph></subsection><subsection id="ID3CC607BE4ED04DD9AE3AC96BE400BA74"><enum>(c)</enum><header>Matching

				Requirements</header>

										<paragraph id="ID06D02BF2D47B4ADD98FD5D0296DF8CF6"><enum>(1)</enum><header>State

				grants</header><text>Each eligible State receiving a grant under section 202

				shall provide, from non-Federal sources, an amount equal to 50 percent of the

				amount of the grant (in cash or in kind) to carry out the activities supported

				by the grant.</text>

										</paragraph><paragraph id="ID5F2E62E8FB0C4F00BC978CBC0400FBDC"><enum>(2)</enum><header>Partnership

				grants</header><text>Each eligible partnership receiving a grant under section

				203 shall provide, from non-Federal sources (in cash or in kind), an amount

				equal to 25 percent of the amount of the grant for the first year of the grant,

				35 percent of the amount of the grant for the second year of the grant, and 50

				percent of the amount of the grant for each succeeding year of the

				grant.</text>

										</paragraph></subsection><subsection id="IDB58CCD209E2646D1BE67B088EB26DF00"><enum>(d)</enum><header>Limitation on

				Administrative Expenses</header><text>An eligible State or eligible partnership

				that receives a grant under this part may use not more than 2 percent of the

				grant funds for purposes of administering the grant.</text>

									</subsection><subsection id="IDA00ECEE9558142E99227A3C3C443CC3D"><enum>(e)</enum><header>Additional

				Activities</header><text>The Secretary shall use funds repaid pursuant to

				section 202(e)(4)(A)(i)(II) or section 203(f)(5)(A)(i)(II) to carry out

				additional activities under section 202 or 203, respectively.</text>

									</subsection></section><section id="ID34926881524F442985C0B4C72E2B45C7"><enum>205.</enum><header>Accountability

				and evaluation</header>

									<subsection id="ID44E96099B98340BBA629530BA995976A"><enum>(a)</enum><header>State Grant

				Accountability Report</header><text>An eligible State that receives a grant

				under section 202 shall submit an annual accountability report to the Secretary

				and the authorizing committees. Such report shall include a description of the

				degree to which the eligible State, in using funds provided under such section,

				has made progress in meeting the purposes of this part and substantial progress

				in meeting the following goals, as applicable:</text>

										<paragraph id="ID66AFCFF6D7914F51B7B34904AB6FFE9B"><enum>(1)</enum><header>Student

				academic achievement</header><text>Increasing student academic achievement for

				all students as defined by the eligible State.</text>

										</paragraph><paragraph id="ID4CCDAFA031834E509E209B31AB7ED460"><enum>(2)</enum><header>Raising

				standards</header><text>Raising the State academic standards required to enter

				the teaching profession as a highly qualified teacher, and where applicable, as

				a fully competent early childhood educator.</text>

										</paragraph><paragraph id="IDC9D408C51246421F88333864CEFB967B"><enum>(3)</enum><header>Initial

				certification or licensure</header><text>Improving the pass rates and scaled

				scores for initial State teacher certification or licensure, or increasing the

				numbers of qualified individuals being certified or licensed as teachers

				through alternative routes to State certification or licensure programs.</text>

										</paragraph><paragraph id="ID780933737AFE47119CE91ED27EB4023C"><enum>(4)</enum><header>Percentage of

				highly qualified teachers</header><text>Providing data on the progress of the

				State towards meeting the highly qualified teacher requirements under section

				1119(a)(2) of the <act-name parsable-cite="ESEA">Elementary and Secondary

				Education Act of 1965</act-name>.</text>

										</paragraph><paragraph id="ID1226C13FC0644EEBB00E77157E095465"><enum>(5)</enum><header>Decreasing

				teacher shortages</header><text>Decreasing shortages of—</text>

											<subparagraph id="ID8F7FA1EA931945AB95B4069A97F97592"><enum>(A)</enum><text>highly qualified

				teachers in—</text>

												<clause id="ID8AC1EE32BD30428B97896B7C29A80AA9"><enum>(i)</enum><text>low-income urban

				and rural areas;</text>

												</clause><clause id="ID21EED8DAD0B741C4AA8E0A9DCC59FA25"><enum>(ii)</enum><text>high-need

				academic subject areas (such as reading, mathematics, science, and foreign

				language, including less commonly taught languages);</text>

												</clause><clause id="ID59298EB4DC23451797AFB3B36E640FFC"><enum>(iii)</enum><text>special

				education; and</text>

												</clause><clause id="IDFCE86A006A284027A7BE45BAAC39C901"><enum>(iv)</enum><text>high-need areas

				(such as special education, language instruction educational programs for

				limited English proficient students, and early childhood education); and</text>

												</clause></subparagraph><subparagraph id="ID91C9CDBFC2084B9CB277DFD8BB171B9F"><enum>(B)</enum><text>fully competent

				early childhood educators.</text>

											</subparagraph></paragraph><paragraph id="ID372B4207249B4D5EB15EB9F962E8D875"><enum>(6)</enum><header>Increasing

				opportunities for professional development</header><text>Increasing

				opportunities for enhanced and ongoing professional development that—</text>

											<subparagraph id="IDF404E3AC7653497E8E7C2D7F4C80F840"><enum>(A)</enum><text>improves the

				academic content knowledge of teachers in the academic subject areas in which

				the teachers are certified or licensed to teach or in which the teachers are

				working toward certification or licensure to teach; and</text>

											</subparagraph><subparagraph id="ID270B1BBADF2F4487BDCCB6E17FFC5D0E"><enum>(B)</enum><text>promotes

				effective teaching skills.</text>

											</subparagraph></paragraph></subsection><subsection id="IDE1567ADEF7544304A850C5C4AF6EB40F"><enum>(b)</enum><header>Eligible

				Partnership Evaluation</header><text>Each eligible partnership submitting an

				application for a grant under section 203 shall establish and include in such

				application, an evaluation plan that includes strong performance objectives.

				The plan shall include objectives and measures for increasing—</text>

										<paragraph id="ID555E4FEBADA8437FB8798646A9ABBAA7"><enum>(1)</enum><text>student

				achievement for all students as measured by the eligible partnership;</text>

										</paragraph><paragraph id="IDA5C24F61F085472D891C9C2A9F839710"><enum>(2)</enum><text>teacher retention

				in the first 3 years of a teacher’s career;</text>

										</paragraph><paragraph id="ID572420E6F6C54B628E7D913BEF049E8B"><enum>(3)</enum><text>improvement in

				the pass rates and scaled scores for initial State certification or licensure

				of teachers;</text>

										</paragraph><paragraph id="ID6A3F113C28864258BB29A7A78F6F2E77"><enum>(4)</enum><text>the percentage of

				highly qualified teachers hired by the high-need local educational agency

				participating in the eligible partnership; and</text>

										</paragraph><paragraph id="IDFDFDC54AA41F44CBB37FCEE8974DAF9E"><enum>(5)</enum><text>the percentage

				of—</text>

											<subparagraph id="ID1BE10ED3C01542B78BD710CFA2755573"><enum>(A)</enum><text>highly qualified

				teachers among underrepresented groups, in high-need academic subject areas

				(such as reading, mathematics, science, and foreign language, including less

				commonly taught languages), in high-need areas (such as special education,

				language instruction educational programs for limited English proficient

				students, and early childhood education), and in high-need schools;</text>

											</subparagraph><subparagraph id="ID1F4ED1D539D8445D848DEB981D42E230"><enum>(B)</enum><text>elementary

				school, middle school, and secondary school classes taught by teachers who are

				highly qualified;</text>

											</subparagraph><subparagraph id="ID9AB77AFAEC0B4226884C04E5759B7EAB"><enum>(C)</enum><text>early childhood

				education program classes taught by providers who are fully competent;

				and</text>

											</subparagraph><subparagraph id="ID6BCDDF83825A4DC29096145D3C872CEC"><enum>(D)</enum><text>highly qualified

				special education teachers.</text>

											</subparagraph></paragraph></subsection><subsection id="IDB0A8B90BB19140E38A1E3BECB7B8F4D7"><enum>(c)</enum><header>Revocation of

				Grant</header>

										<paragraph id="IDF9A5BD0FB51143118B70130A984114E9"><enum>(1)</enum><header>Eligible

				states</header><text>If the Secretary determines that an eligible State is not

				making substantial progress in meeting the purposes, goals, objectives, and

				measures, as appropriate, by the end of the second year of a grant under this

				part, then the grant payment shall not be made for the third year of the

				grant.</text>

										</paragraph><paragraph id="IDFEB4D715E4BC422E88074D2F1166D4EF"><enum>(2)</enum><header>Eligible

				partnerships</header><text>If the Secretary determines that an eligible

				partnership is not making substantial progress in meeting the purposes, goals,

				objectives, and measures, as appropriate, by the end of the third year of a

				grant under this part, then the grant payments shall not be made for any

				succeeding year of the grant.</text>

										</paragraph></subsection><subsection id="IDBE1CB842883941B0BBDFC60D409DBC9F"><enum>(d)</enum><header>Evaluation and

				Dissemination</header><text>The Secretary shall evaluate the activities funded

				under this part and report the Secretary’s findings regarding the activities to

				the authorizing committees. The Secretary shall broadly disseminate—</text>

										<paragraph id="IDB6A7ADEE98C44C83BDE7A077F555D5E8"><enum>(1)</enum><text>successful

				practices developed by eligible States and eligible partnerships under this

				part; and</text>

										</paragraph><paragraph id="ID2940DE1095FC447D817F5441FE013FE8"><enum>(2)</enum><text>information

				regarding such practices that were found to be ineffective.</text>

										</paragraph></subsection></section><section id="ID20ADC57B2B8E4DA29CBFB8D34EA7A81F"><enum>206.</enum><header>Accountability

				for programs that prepare teachers</header>

									<subsection id="IDAF52757D7B57467992E532389B9F7DA8"><enum>(a)</enum><header>Institutional

				and Program Report Cards on the Quality of Teacher Preparation</header>

										<paragraph id="ID974896F4867D46DA97A6A268D6153422"><enum>(1)</enum><header>Report

				card</header><text>Each institution of higher education that conducts a

				traditional teacher preparation program or alternative routes to State

				certification or licensure program and that enrolls students receiving Federal

				assistance under this Act shall report annually to the State and the general

				public, in a uniform and comprehensible manner that conforms with the

				definitions and methods established by the Secretary, both for traditional

				teacher preparation programs and alternative routes to State certification or

				licensure programs, the following information:</text>

											<subparagraph id="ID1D3FBF6F77D04C3F85704A969DF7D480"><enum>(A)</enum><header>Pass rates and

				scaled scores</header><text>For the most recent year for which the information

				is available for those students who took the assessments and are enrolled in

				the traditional teacher preparation program or alternative routes to State

				certification or licensure program, and for those who have taken the

				assessments and have completed the traditional teacher preparation program or

				alternative routes to State certification or licensure program during the

				2-year period preceding such year, for each of the assessments used for teacher

				certification or licensure by the State in which the program is located—</text>

												<clause id="IDA8289026854049EBA56DD514890B9788"><enum>(i)</enum><text>the percentage of

				students who have completed 100 percent of the nonclinical coursework and taken

				the assessment who pass such assessment;</text>

												</clause><clause id="IDB4AAFCD8AB404CB2A611B0C966A4E671"><enum>(ii)</enum><text>the percentage

				of all such students who passed each such assessment;</text>

												</clause><clause id="ID20369365B3BC4951851522E64CE873D4"><enum>(iii)</enum><text>the percentage

				of students taking an assessment who completed the teacher preparation program

				after enrolling in the program, which shall be made available widely and

				publicly by the State;</text>

												</clause><clause id="ID778746C0A94A4A5F8C3F59B9E29C5807"><enum>(iv)</enum><text>the average

				scaled score for all students who took each such assessment;</text>

												</clause><clause id="ID6058CD26E61545549072DCB588C7AE7B"><enum>(v)</enum><text>a

				comparison of the program’s pass rates with the average pass rates for programs

				in the State; and</text>

												</clause><clause id="IDF5861EA5146D4528870F9471C7276B8E"><enum>(vi)</enum><text>a comparison of

				the program’s average scaled scores with the average scaled scores for programs

				in the State.</text>

												</clause></subparagraph><subparagraph id="IDE2839CB48B164B0C96F0824A4864A65E"><enum>(B)</enum><header>Program

				information</header><text>The criteria for admission into the program, the

				number of students in the program (disaggregated by race and gender), the

				average number of hours of supervised clinical experience required for those in

				the program, the number of full-time equivalent faculty and students in the

				supervised clinical experience, and the total number of students who have been

				certified or licensed as teachers, disaggregated by subject and area of

				certification or licensure.</text>

											</subparagraph><subparagraph id="IDA2AF41F49B174EDFA3EEDF44FA041F83"><enum>(C)</enum><header>Statement</header><text>In

				States that require approval or accreditation of teacher preparation programs,

				a statement of whether the institution’s program is so approved or accredited,

				and by whom.</text>

											</subparagraph><subparagraph id="ID9F30D72492AD4323AAC4D6CDE7CE26D9"><enum>(D)</enum><header>Designation as

				low-performing</header><text>Whether the program has been designated as

				low-performing by the State under section 207(a).</text>

											</subparagraph><subparagraph id="IDB686A0F65F824BD9B0B4C4D159CA13B6"><enum>(E)</enum><header>Use of

				technology</header><text>A description of the activities that prepare teachers

				to effectively integrate technology into curricula and instruction and

				effectively use technology to collect, manage, and analyze data in order to

				improve teaching, learning, and decision making for the purpose of increasing

				student academic achievement.</text>

											</subparagraph></paragraph><paragraph id="IDA88F8EE43BAB4EEC99873CD44A75DAD9"><enum>(2)</enum><header>Report</header><text>Each

				eligible partnership receiving a grant under section 203 shall report annually

				on the progress of the eligible partnership toward meeting the purposes of this

				part and the objectives and measures described in section 205(b).</text>

										</paragraph><paragraph id="IDF4CDC66B9BD04A26B511853A90DF1B2E"><enum>(3)</enum><header>Fines</header><text>The

				Secretary may impose a fine not to exceed $25,000 on an institution of higher

				education for failure to provide the information described in this subsection

				in a timely or accurate manner.</text>

										</paragraph><paragraph id="ID935E21057A5C4CD1B5F7D484A7CF0A77"><enum>(4)</enum><header>Special

				rule</header><text>In the case of an institution of higher education that

				conducts a traditional teacher preparation program or alternative routes to

				State certification or licensure program and has fewer than 10 scores reported

				on any single initial teacher certification or licensure assessment during an

				academic year, the institution shall collect and publish information, as

				required under paragraph (1)(A), with respect to an average pass rate and

				scaled score on each State certification or licensure assessment taken over a

				3-year period.</text>

										</paragraph></subsection><subsection id="ID9F5CEC908A36480698FEF1EB71FD5AFC"><enum>(b)</enum><header>State Report

				Card on the Quality of Teacher Preparation</header>

										<paragraph id="ID9CEBA173642343F9A27ACAD9D97652CF"><enum>(1)</enum><header>In

				general</header><text>Each State that receives funds under this Act shall

				provide to the Secretary, annually, in a uniform and comprehensible manner that

				conforms with the definitions and methods established by the Secretary, a State

				report card on the quality of teacher preparation in the State, both for

				traditional teacher preparation programs and for alternative routes to State

				certification or licensure programs, which shall include not less than the

				following:</text>

											<subparagraph id="ID7E6ED887411F49ECB470DC2D6AD07A3C"><enum>(A)</enum><text>A description of

				reliability and validity of the teacher certification and licensure

				assessments, and any other certification and licensure requirements, used by

				the State.</text>

											</subparagraph><subparagraph id="IDAE1992F5316B472F94F3AF836BB152A2"><enum>(B)</enum><text>The standards and

				criteria that prospective teachers must meet in order to attain initial teacher

				certification or licensure and to be certified or licensed to teach particular

				academic subject areas or in particular grades within the State.</text>

											</subparagraph><subparagraph id="IDE5FCC3AF5A5746759BA56C2D3D38DEA5"><enum>(C)</enum><text>A description of

				how the assessments and requirements described in subparagraph (A) are aligned

				with the State’s challenging academic content standards required under section

				1111(b)(1) of the <act-name parsable-cite="ESEA">Elementary and Secondary

				Education Act of 1965</act-name> and State early learning standards for early

				childhood education programs.</text>

											</subparagraph><subparagraph id="ID798B44E18372467EAA710D0CA53538BC"><enum>(D)</enum><text>For each of the

				assessments used by the State for teacher certification or licensure—</text>

												<clause id="ID8557F8B8DAE144C8A8500F1E434BE091"><enum>(i)</enum><text>for each

				institution of higher education located in the State and each entity located in

				the State that offers an alternative route for teacher certification or

				licensure, the percentage of students at such institution or entity who have

				completed 100 percent of the nonclinical coursework and taken the assessment

				who pass such assessment;</text>

												</clause><clause id="ID9699ACB363644D4E9375A7D61BEC6624"><enum>(ii)</enum><text>the percentage

				of all such students at all such institutions taking the assessment who pass

				such assessment; and</text>

												</clause><clause id="ID9B26E4DDC056432EB0D2EABB72639D07"><enum>(iii)</enum><text>the percentage

				of students taking an assessment who completed the teacher preparation program

				after enrolling in the program, which shall be made available widely and

				publicly by the State.</text>

												</clause></subparagraph><subparagraph id="IDCB6339EB3D124B46BEC6351471C7F397"><enum>(E)</enum><text>A description of

				alternative routes to State certification or licensure in the State (including

				any such routes operated by entities that are not institutions of higher

				education), if any, including, for each of the assessments used by the State

				for teacher certification or licensure—</text>

												<clause id="IDCF7D34DA265A42A2B55BEE83D91CB117"><enum>(i)</enum><text>the percentage of

				individuals participating in such routes, or who have completed such routes

				during the 2-year period preceding the date of the determination, who passed

				each such assessment; and</text>

												</clause><clause id="IDDA6FFA6F07144C658AE9813718CB7F62"><enum>(ii)</enum><text>the average

				scaled score of individuals participating in such routes, or who have completed

				such routes during the period preceding the date of the determination, who took

				each such assessment.</text>

												</clause></subparagraph><subparagraph id="ID1D87CC4278504F3E9D91A36F4BB96DF9"><enum>(F)</enum><text>A description of

				the State’s criteria for assessing the performance of teacher preparation

				programs within institutions of higher education in the State. Such criteria

				shall include indicators of the academic content knowledge and teaching skills

				of students enrolled in such programs.</text>

											</subparagraph><subparagraph id="IDC8FE900FA0D14B1CA3F6BB42B41E7A5B"><enum>(G)</enum><text>For each teacher

				preparation program in the State, the criteria for admission into the program,

				the number of students in the program, disaggregated by race and gender (except

				that such disaggregation shall not be required in a case in which the number of

				students in a category is insufficient to yield statistically reliable

				information or the results would reveal personally identifiable information

				about an individual student), the average number of hours of supervised

				clinical experience required for those in the program, and the number of

				full-time equivalent faculty, adjunct faculty, and students in supervised

				clinical experience.</text>

											</subparagraph><subparagraph id="ID327819CC66984099997A5E64DC55F609"><enum>(H)</enum><text>For the State as

				a whole, and for each teacher preparation program in the State, the number of

				teachers prepared, in the aggregate and reported separately by—</text>

												<clause id="IDC68CC5929FCE40D380F9CDB5229F6110"><enum>(i)</enum><text>area of

				certification or licensure;</text>

												</clause><clause id="ID88C9463BED924832AC8ABB4AE578FCDB"><enum>(ii)</enum><text>academic major;

				and</text>

												</clause><clause id="IDC63D6D5CD41343469ECF29D2ACBF1278"><enum>(iii)</enum><text>subject area

				for which the teacher has been prepared to teach.</text>

													<subclause id="IDEA2A9C9F63B147F49CE04C00297A36C7" indent="up2"><enum>(I)</enum><text>Using the data generated under

				subparagraphs (G) and (H), a description of the extent to which teacher

				preparation programs are helping to address shortages of highly qualified

				teachers, by area of certification or licensure, subject, and specialty, in the

				State’s public schools, including those areas described in section

				205(a)(5).</text>

													</subclause></clause></subparagraph><subparagraph id="ID04610A9DE6F34CA2A3C6822E3BE03D09"><enum>(J)</enum><text>A description of

				the activities that prepare teachers to effectively integrate technology into

				curricula and instruction and effectively use technology to collect, manage,

				and analyze data in order to improve teaching, learning, and decision making

				for the purpose of increasing student academic achievement.</text>

											</subparagraph></paragraph><paragraph id="ID1D8C314A9F3D459DB29F4F2237329C53"><enum>(2)</enum><header>Prohibition

				against creating a national list</header><text>The Secretary shall not create a

				national list or ranking of States, institutions, or schools using the scaled

				scores provided under this subsection.</text>

										</paragraph></subsection><subsection id="ID61F1CDCF89C049B29F64557308A4E150"><enum>(c)</enum><header>Report of the

				Secretary on the Quality of Teacher Preparation</header>

										<paragraph id="ID43A00FAF59FC436DA07AAB8D4D951508"><enum>(1)</enum><header>Report

				card</header><text>The Secretary shall provide to Congress, and publish and

				make widely available, a report card on teacher qualifications and preparation

				in the United States, including all the information reported in subparagraphs

				(A) through (J) of subsection (b)(1). Such report shall identify States for

				which eligible States and eligible partnerships received a grant under this

				part. Such report shall be so provided, published, and made available

				annually.</text>

										</paragraph><paragraph id="ID6E9778E6A863430FA004BA4E17D9E587"><enum>(2)</enum><header>Report to

				congress</header><text>The Secretary shall prepare and submit a report to

				Congress that contains the following:</text>

											<subparagraph id="ID5B2E91B2158347FFB8C6D03AF24D5A4C"><enum>(A)</enum><text>A comparison of

				States’ efforts to improve the quality of the current and future teaching

				force.</text>

											</subparagraph><subparagraph id="ID372D22D08FD84C33944DC5291E031309"><enum>(B)</enum><text>A comparison of

				eligible partnerships’ efforts to improve the quality of the current and future

				teaching force.</text>

											</subparagraph><subparagraph id="IDCE98619B0B1843C8BF9FA9DD9934E9E9"><enum>(C)</enum><text>The national mean

				and median scaled scores and pass rate on any standardized test that is used in

				more than 1 State for teacher certification or licensure.</text>

											</subparagraph></paragraph><paragraph id="ID0F05E39B33DC413983BB9EA5EAC01EC8"><enum>(3)</enum><header>Special

				rule</header><text>In the case of a teacher preparation program with fewer than

				10 scores reported on any single initial teacher certification or licensure

				assessment during an academic year, the Secretary shall collect and publish

				information, and make publicly available, with respect to an average pass rate

				and scaled score on each State certification or licensure assessment taken over

				a 3-year period.</text>

										</paragraph></subsection><subsection id="IDFF11FEBFCF014D18A737CF03414BC368"><enum>(d)</enum><header>Coordination</header><text>The

				Secretary, to the extent practicable, shall coordinate the information

				collected and published under this part among States for individuals who took

				State teacher certification or licensure assessments in a State other than the

				State in which the individual received the individual’s most recent

				degree.</text>

									</subsection></section><section id="ID62ED2399CFA0432D8A232E3B63AEA527"><enum>207.</enum><header>State

				functions</header>

									<subsection id="IDD8B945D79F414AC09F13054A6FFD33C0"><enum>(a)</enum><header>State

				Assessment</header><text>In order to receive funds under this Act, a State

				shall have in place a procedure to identify and assist, through the provision

				of technical assistance, low-performing programs of teacher preparation. Such

				State shall provide the Secretary an annual list of such low-performing teacher

				preparation programs that includes an identification of those programs at risk

				of being placed on such list. Such levels of performance shall be determined

				solely by the State and may include criteria based on information collected

				pursuant to this part. Such assessment shall be described in the report under

				section 206(b).</text>

									</subsection><subsection id="ID5260BD9604024B7295D94C4071EE39F2"><enum>(b)</enum><header>Termination of

				Eligibility</header><text>Any program of teacher preparation from which the

				State has withdrawn the State’s approval, or terminated the State’s financial

				support, due to the low performance of the program based upon the State

				assessment described in subsection (a)—</text>

										<paragraph id="ID7DAEDFA47A924A2C96A942A548B40029"><enum>(1)</enum><text>shall be

				ineligible for any funding for professional development activities awarded by

				the Department;</text>

										</paragraph><paragraph id="ID006A6DC987CC41338218FDBC023CC8B9"><enum>(2)</enum><text>shall not be

				permitted to accept or enroll any student that receives aid under title IV in

				the institution’s teacher preparation program; and</text>

										</paragraph><paragraph id="ID5514419F45C24E4D8030ECE922404B77"><enum>(3)</enum><text>shall provide

				transitional support, including remedial services if necessary, for students

				enrolled at the institution at the time of termination of financial support or

				withdrawal of approval.</text>

										</paragraph></subsection><subsection id="ID9BE75C875D7F43F7B7D01603B25689F8"><enum>(c)</enum><header>Negotiated

				Rulemaking</header><text>If the Secretary develops any regulations implementing

				subsection (b)(2), the Secretary shall submit such proposed regulations to a

				negotiated rulemaking process, which shall include representatives of States,

				institutions of higher education, and educational and student

				organizations.</text>

									</subsection><subsection id="IDE1A03902BC6941419005497E78D85145"><enum>(d)</enum><header>Application of

				the Requirements</header><text>The requirements of this section shall apply to

				both traditional teacher preparation programs and alternative routes to State

				certification and licensure programs.</text>

									</subsection></section><section id="ID4B9797FCEB024177B5FC43B834F4863C"><enum>208.</enum><header>General

				provisions</header>

									<subsection id="ID3E546EA953EE4F6BB2299CCF0E86CA71"><enum>(a)</enum><header>Methods</header><text>In

				complying with sections 206 and 207, the Secretary shall ensure that States and

				institutions of higher education use fair and equitable methods in reporting

				and that the reporting methods do not allow identification of

				individuals.</text>

									</subsection><subsection id="ID1DD637A6608B46C796E8B0D53459156E"><enum>(b)</enum><header>Special

				Rule</header><text>For each State that does not use content assessments as a

				means of ensuring that all teachers teaching in core academic subjects within

				the State are highly qualified not later than the end of the 2005–2006 school

				year, as required under section 1119 of the <act-name parsable-cite="ESEA">Elementary and Secondary Education Act of 1965</act-name>,

				and that each person employed as a special education teacher in the State who

				teaches elementary school, middle school, or secondary school is highly

				qualified by such deadline, as required under section 612(a)(14)(C) of the

				Individuals with Disabilities Education Act,—</text>

										<paragraph id="ID0DEE05CE5C4845BB9A338C304B9BA7B7"><enum>(1)</enum><text>the Secretary

				shall, to the extent practicable, collect data comparable to the data required

				under this part from States, local educational agencies, institutions of higher

				education, or other entities that administer such assessments to teachers or

				prospective teachers; and</text>

										</paragraph><paragraph id="ID7FC0A39ACF36437FA115248A4BC3AECC"><enum>(2)</enum><text>notwithstanding

				any other provision of this part, the Secretary shall use such data to carry

				out requirements of this part related to assessments, pass rates, and scaled

				scores.</text>

										</paragraph></subsection><subsection id="ID6AA919606D494E3F872C0BC318CFA9D4"><enum>(c)</enum><header>Limitations</header>

										<paragraph id="ID0EE9889F25ED4299AA9EF6015A36FAA5"><enum>(1)</enum><header>Federal control

				prohibited</header><text>Nothing in this title shall be construed to permit,

				allow, encourage, or authorize any Federal control over any aspect of any

				private, religious, or home school, whether or not a home school is treated as

				a private school or home school under State law. This section shall not be

				construed to prohibit private, religious, or home schools from participation in

				programs or services under this title.</text>

										</paragraph><paragraph id="ID79FF258CB33A44709C876B328AD053E2"><enum>(2)</enum><header>No change in

				state control encouraged or required</header><text>Nothing in this title shall

				be construed to encourage or require any change in a State’s treatment of any

				private, religious, or home school, whether or not a home school is treated as

				a private school or home school under State law.</text>

										</paragraph><paragraph id="ID4672F56EFF934C4CA06EAB4FFBF5B732"><enum>(3)</enum><header>National system

				of teacher certification or licensure prohibited</header><text>Nothing in this

				title shall be construed to permit, allow, encourage, or authorize the

				Secretary to establish or support any national system of teacher certification

				or licensure.</text>

										</paragraph></subsection><subsection id="ID53470688F60D4885A0015EBEBE2A6DCB"><enum>(d)</enum><header>Release of

				Information to Teacher Preparation Programs</header>

										<paragraph id="ID6B1E070F708C43C38F1AF758AE55FA05"><enum>(1)</enum><header>In

				general</header><text>For the purpose of improving teacher preparation

				programs, a State educational agency shall provide to a teacher preparation

				program, upon the request of the teacher preparation program, any and all

				pertinent education-related information that—</text>

											<subparagraph id="ID1D347074F85F432CBCF4C2DEA2C1DF69"><enum>(A)</enum><text>may enable the

				teacher preparation program to evaluate the effectiveness of the program’s

				graduates or the program itself; and</text>

											</subparagraph><subparagraph id="ID301194F5D50E4F9AB5C6AB6B090FA953"><enum>(B)</enum><text>is possessed,

				controlled, or accessible by the State educational agency.</text>

											</subparagraph></paragraph><paragraph id="ID4F581E050E3D4A81BEA232E859CECB4C"><enum>(2)</enum><header>Content of

				information</header><text>The information described in paragraph (1)—</text>

											<subparagraph id="ID93E7D58BEA9B4B7C85B231767DCE7E89"><enum>(A)</enum><text>shall include an

				identification of specific individuals who graduated from the teacher

				preparation program to enable the teacher preparation program to evaluate the

				information provided to the program from the State educational agency with the

				program’s own data about the specific courses taken by, and field experiences

				of, the individual graduates; and</text>

											</subparagraph><subparagraph id="IDB969510C5B884C34B6B2EA2E98466969"><enum>(B)</enum><text>may

				include—</text>

												<clause id="IDB193241BF574431F90BC3EA9E207CA61"><enum>(i)</enum><text>kindergarten

				through grade 12 academic achievement and demographic data, without revealing

				personally identifiable information about an individual student, for students

				who have been taught by graduates of the teacher preparation program;

				and</text>

												</clause><clause id="IDFA65F45C0E51489698BA7C8AE786D57F"><enum>(ii)</enum><text>teacher

				effectiveness evaluations for teachers who graduated from the teacher

				preparation program.</text>

												</clause></subparagraph></paragraph></subsection></section><section id="ID2BD1A6A7F9264E748CC418F7B5D35B7F"><enum>209.</enum><header>Authorization

				of appropriations</header>

									<subsection id="ID90A7EF07C94F49FDA32637BEE84A27EF"><enum>(a)</enum><header>In

				General</header><text>There are authorized to be appropriated to carry out this

				part such sums as may be necessary for fiscal year 2006 and each of the 5

				succeeding fiscal years, of which—</text>

										<paragraph id="ID1E0990F499414697860CC84BFBF503E4"><enum>(1)</enum><text>50 percent shall

				be available for each fiscal year to award grants under section 202; and</text>

										</paragraph><paragraph id="IDC4D2144374244870A48C9EF48208EA1C"><enum>(2)</enum><text>50 percent shall

				be available for each fiscal year to award grants under section 203.</text>

										</paragraph></subsection><subsection id="ID9338E66A5BCC429BBEF488EB8195E38E"><enum>(b)</enum><header>Special

				Rule</header><text>If the Secretary determines that there is an insufficient

				number of meritorious applications for grants under section 202 or 203 to

				justify awarding the full amount described in paragraph (1) or (2) of

				subsection (a), respectively, the Secretary may, after funding the meritorious

				applications, use the remaining funds for grants under the other such

				section.</text>

									</subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block>

					</section></chapter><chapter id="IDFA83D501257A4C52A37D4820B7DAE9C6"><enum>4</enum><header>INSTITUTIONAL

			 AID</header>

					<section id="ID76D6E5F7CA7545ABA0D1109A9B29A10A"><enum>7341.</enum><header>Program

			 purpose</header><text display-inline="no-display-inline">Section 311 (20 U.S.C.

			 1057) is amended—</text>

						<paragraph id="ID5C4011D831394D548F8C22BC0E8D6A8E"><enum>(1)</enum><text>in subsection

			 (b)—</text>

							<subparagraph id="ID4FFBCA77D9A94C70A6ECA4D7B9E6784B"><enum>(A)</enum><text>in paragraph (1),

			 by striking <quote>351</quote> and inserting <quote>391</quote>; and</text>

							</subparagraph><subparagraph id="ID5AA7EE65F27D43C5B26270847E359397"><enum>(B)</enum><text>in paragraph

			 (3)(F), by inserting <quote>, including services that will assist in the

			 education of special populations</quote> before the period; and</text>

							</subparagraph></paragraph><paragraph id="IDCBF7E5232C734F04B29CEF52CCCDF7FC"><enum>(2)</enum><text>in subsection

			 (c)—</text>

							<subparagraph id="IDA713647BDCEC4E6ABD88EBE650A32AC9"><enum>(A)</enum><text>in paragraph (6),

			 by inserting <quote>, including innovative, customized, remedial education and

			 English language instruction courses designed to help retain students and move

			 the students rapidly into core courses and through program completion</quote>

			 before the period;</text>

							</subparagraph><subparagraph id="ID3E44EDC083AB433CAB73DF3AD51F9569"><enum>(B)</enum><text>by redesignating

			 paragraphs (7) through (12) as paragraphs (8) through (13),

			 respectively;</text>

							</subparagraph><subparagraph id="IDCE0C2D18BB0A4B209910CF9CA3E024D7"><enum>(C)</enum><text>by inserting

			 after paragraph (6) the following:</text>

								<quoted-block id="ID88E15F416F0A407489465CE477EFC94C" style="OLC">

									<paragraph id="ID9F20A43019EB47FA9E4D7CDFC449DCE3"><enum>(7)</enum><text>Education or

				counseling services designed to improve the financial literacy and economic

				literacy of students or the students’

				parents.</text>

									</paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="ID69EEB6B3B1E242C3AF50BCC068FAF570"><enum>(D)</enum><text>in the matter

			 preceding subparagraph (A) of paragraph (13) (as redesignated by subparagraph

			 (B)), by striking <quote>subsection (c)</quote> and inserting <quote>subsection

			 (b) and section 391</quote>.</text>

							</subparagraph></paragraph></section><section id="IDA05B8B194A764AEBAD19E23FEF8385B3"><enum>7342.</enum><header>Definitions;

			 eligibility</header><text display-inline="no-display-inline">Section 312 (20

			 U.S.C. 1058) is amended—</text>

						<paragraph id="ID77449938F88E4D7797286BC746E126C6"><enum>(1)</enum><text>in subsection

			 (b)(1)(A), by striking <quote>subsection (c) of this section</quote> and

			 inserting <quote>subsection (d)</quote>; and</text>

						</paragraph><paragraph id="IDF2984941C6024B16B0D9D1DB74171DD8"><enum>(2)</enum><text>in subsection

			 (d)(2), by striking <quote>subdivision</quote> and inserting

			 <quote>paragraph</quote>.</text>

						</paragraph></section><section id="ID1F4373356B6B4FD58AA02D47E2CC5E9D"><enum>7343.</enum><header>American

			 Indian tribally controlled colleges and universities</header><text display-inline="no-display-inline">Section 316 (20 U.S.C. 1059c) is

			 amended—</text>

						<paragraph id="ID193F693D39394B88B244106120F41692"><enum>(1)</enum><text>by striking

			 subsection (b)(3) and inserting the following:</text>

							<quoted-block id="IDA2B5ED0C832C4524AEF1806A1E61FF6C" style="OLC">

								<paragraph id="IDBBD6964FE48E4B8F92F35D0953E65AAC"><enum>(3)</enum><header>Tribal college

				or university</header><text>The term <term>Tribal College or University</term>

				means an institution that—</text>

									<subparagraph id="ID559EE825DC284CBAB2F8315FBC333C83"><enum>(A)</enum><text>qualifies for

				funding under the Tribally Controlled College or University Assistance Act of

				1978 (25 U.S.C. 1801 et seq.) or the Navajo Community College Assistance Act of

				1978 (25 U.S.C. 640a note); or</text>

									</subparagraph><subparagraph id="ID676E62BB387343F6A95A4856728F402E"><enum>(B)</enum><text>is cited in

				section 532 of the Equity in Educational Land-Grant Status Act of 1994 (7

				U.S.C. 301

				note).</text>

									</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

						</paragraph><paragraph id="ID5943C3D5896A49A8B1D48F2581C35514"><enum>(2)</enum><text>in subsection

			 (c)(2)—</text>

							<subparagraph id="ID50406C00D7644F42963A6490F5346171"><enum>(A)</enum><text>in subparagraph

			 (B), by inserting before the semicolon at the end the following: <quote>and the

			 acquisition of real property adjacent to the campus of the

			 institution</quote>;</text>

							</subparagraph><subparagraph id="IDA401BFA8F27B4BDD99BA817D9B8B93C3"><enum>(B)</enum><text>by redesignating

			 subparagraphs (G), (H), (I), (J), (K), and (L) as subparagraphs (H), (I), (J),

			 (K), (L), and (N), respectively;</text>

							</subparagraph><subparagraph id="ID8206C1EC89DB44B793FB7AAEF152EB9B"><enum>(C)</enum><text>by inserting

			 after subparagraph (F) the following:</text>

								<quoted-block id="IDF4A455669D9B4ED5AC5A7359CE387536" style="OLC">

									<subparagraph id="ID10216E3A5CFA404380648309BD95E9D6"><enum>(G)</enum><text>education or

				counseling services designed to improve the financial literacy and economic

				literacy of students or parents of

				students;</text>

									</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="IDAB8526BAEF1247F2998BA43ED137A4F5"><enum>(D)</enum><text>in subparagraph

			 (L) (as redesignated by subparagraph (B)), by striking <quote>and</quote> after

			 the semicolon;</text>

							</subparagraph><subparagraph id="ID39AAD7ADE952484EB34D9FE060E2EB9F"><enum>(E)</enum><text>by inserting

			 after subparagraph (L) (as redesignated by subparagraph (B)) the

			 following:</text>

								<quoted-block id="IDD70F9EFB18404E278B37680E95496D4C" style="OLC">

									<subparagraph id="IDBDE8C61A6DD94FB597FD22DEDB2C36F4"><enum>(M)</enum><text>developing or

				improving facilities for Internet use or other distance learning academic

				instruction capabilities; and</text>

									</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="IDE98DDC31CE3B4914A08797758C0E117D"><enum>(F)</enum><text>in subparagraph

			 (N) (as redesignated by subparagraph (B)), by striking <quote>subparagraphs (A)

			 through (K)</quote> and inserting <quote>subparagraphs (A) through (M)</quote>;

			 and</text>

							</subparagraph></paragraph><paragraph id="ID8C926FE6BB2345D1B0FD465ECC828CD6"><enum>(3)</enum><text>by striking

			 subsection (d) and inserting the following:</text>

							<quoted-block id="ID17E3BF7ABB07407492A5B53F45BFC95A" style="OLC">

								<subsection id="ID1AA48CDF474F42458F37669C5CD088B0"><enum>(d)</enum><header>Application,

				Plan, and Allocation</header>

									<paragraph id="IDF6DB09C99D0049438E81312B3E0BE5AC"><enum>(1)</enum><header>Institutional

				eligibility</header><text>To be eligible to receive assistance under this

				section, a Tribal College or University shall be an eligible institution under

				section 312(b).</text>

									</paragraph><paragraph id="ID6C949FCF009149B89BA9884DEF4252B3"><enum>(2)</enum><header>Application</header>

										<subparagraph id="ID88C24E832140490181C6C45D95751DE8"><enum>(A)</enum><header>In

				general</header><text>A Tribal College or University desiring to receive

				assistance under this section shall submit an application to the Secretary at

				such time, and in such manner, as the Secretary may reasonably require.</text>

										</subparagraph><subparagraph id="ID9A471F6D68AA4C4AAD9DD4407D5408BE"><enum>(B)</enum><header>Streamlined

				process</header><text>The Secretary shall establish application requirements in

				such a manner as to simplify and streamline the process for applying for

				grants.</text>

										</subparagraph></paragraph><paragraph id="IDED349810F5704F01804F86CC15BCB64E"><enum>(3)</enum><header>Allocations to

				institutions</header>

										<subparagraph id="IDF37698F2396E42CAA888D21C928F0491"><enum>(A)</enum><header>Construction

				grants</header>

											<clause id="ID844713D24C22458DB3F15BF6B1723950"><enum>(i)</enum><header>In

				general</header><text>Of the amount appropriated to carry out this section for

				any fiscal year, the Secretary may reserve 30 percent for the purpose of

				awarding 1-year grants of not less than $1,000,000 to address construction,

				maintenance, and renovation needs at eligible institutions.</text>

											</clause><clause id="ID45A3719E5D744667B0024D5579FAC6B1"><enum>(ii)</enum><header>Preference</header><text>In

				providing grants under clause (i), the Secretary shall give preference to

				eligible institutions that have not yet received an award under this

				section.</text>

											</clause></subparagraph><subparagraph id="IDBBFF1C4651E14BC4971DEAB84130ACA5"><enum>(B)</enum><header>Allotment of

				remaining funds</header>

											<clause id="ID9C12FF35BCEF4EFF81F68AE639BD6DA0"><enum>(i)</enum><header>In

				general</header><text>Except as provided in clause (ii), the Secretary shall

				distribute the remaining funds appropriated for any fiscal year to each

				eligible institution as follows:</text>

												<subclause id="ID962B0A388BD144FDB482A6262A1B1CB4"><enum>(I)</enum><text>60 percent of the

				remaining appropriated funds shall be distributed among the eligible Tribal

				Colleges and Universities on a pro rata basis, based on the respective Indian

				student counts (as defined in section 2(a) of the Tribally Controlled College

				or University Assistance Act of 1978 (25 U.S.C. 1801(a)) of the Tribal Colleges

				and Universities; and</text>

												</subclause><subclause id="IDD8DF17CA0E1248E294FD76DE821CF2C4"><enum>(II)</enum><text>the remaining 40

				percent shall be distributed in equal shares to the eligible Tribal Colleges

				and Universities.</text>

												</subclause></clause><clause id="IDE92672BCA8CF45139726A18A2C1587FC"><enum>(ii)</enum><header>Minimum

				grant</header><text>The amount distributed to a Tribal College or University

				under clause (i) shall not be less than $500,000.</text>

											</clause></subparagraph></paragraph><paragraph id="IDA2DE269D1CDD481B931A4C9F152E33E6"><enum>(4)</enum><header>Special

				rules</header>

										<subparagraph id="ID2A7DA10992F8423EBF477CEC4C7C3A71"><enum>(A)</enum><header>Concurrent

				funding</header><text>For the purposes of this part, no Tribal College or

				University that is eligible for and receives funds under this section shall

				concurrently receive funds under other provisions of this part or part

				B.</text>

										</subparagraph><subparagraph id="ID170D1B3101F1485E91ECAF81E681365C"><enum>(B)</enum><header>Exemption</header><text>Section

				313(d) shall not apply to institutions that are eligible to receive funds under

				this

				section.</text>

										</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section><section id="ID5AF02E0A191E43C6AD23B64E47FEA073"><enum>7344.</enum><header>Alaska Native

			 and Native Hawaiian-serving institutions</header><text display-inline="no-display-inline">Section 317(c)(2) (20 U.S.C. 1059d(c)(2)) is

			 amended—</text>

						<paragraph id="ID9CBE278A8BE640D19D99BA4C1D215435"><enum>(1)</enum><text>in subparagraph

			 (G), by striking <quote>and</quote> after the semicolon;</text>

						</paragraph><paragraph id="ID950F058299374450A3D2F1CAF5315070"><enum>(2)</enum><text>in subparagraph

			 (H), by striking the period and inserting <quote>; and</quote>; and</text>

						</paragraph><paragraph id="ID24B6524365A943E7879EB72966E4A5E8"><enum>(3)</enum><text>by adding at the

			 end the following:</text>

							<quoted-block id="ID14F8C026B98F403992D76DEA10C5C8DD" style="OLC">

								<subparagraph id="ID0D09A9BFF58045F4A70047DB26F9CF3B"><enum>(I)</enum><text>education or

				counseling services designed to improve the financial literacy and economic

				literacy of students or the students’

				parents.</text>

								</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section><section id="ID078F97C05A0D463F803B5476AC0AF9C0"><enum>7345.</enum><header>Native

			 American-serving, nontribal institutions</header>

						<subsection id="IDAE7CBC7E425946A6995904274C03D713"><enum>(a)</enum><header>Grant Program

			 Authorized</header><text>Part A of title III (20 U.S.C. 1057 et seq.) is

			 amended by adding at the end the following:</text>

							<quoted-block id="ID8999A84FFAB54ACF95AE94FB40CF7249" style="OLC">

								<section id="ID4818EE188BF346B0BC1F059C9D222FF5"><enum>318.</enum><header>Native

				American-serving, nontribal institutions</header>

									<subsection id="IDAB3D9D66F6CF479EB6E178CBD6C806FE"><enum>(a)</enum><header>Program

				Authorized</header><text>The Secretary shall provide grants and related

				assistance to Native American-serving, nontribal institutions to enable such

				institutions to improve and expand their capacity to serve Native

				Americans.</text>

									</subsection><subsection id="IDC89AD8B12F404A6E97E2381096645A40"><enum>(b)</enum><header>Definitions</header><text>In

				this section:</text>

										<paragraph id="ID34BA0DDF9B0E4659BCFE5492EEA08859"><enum>(1)</enum><header>Native

				american</header><text>The term <term>Native American</term> means an

				individual who is of a tribe, people, or culture that is indigenous to the

				United States.</text>

										</paragraph><paragraph id="ID9670F376C0B545C3A558CE05567BC1F1"><enum>(2)</enum><header>Native

				american-serving, nontribal institution</header><text>The term <term>Native

				American-serving, nontribal institution</term> means an institution of higher

				education that, at the time of application—</text>

											<subparagraph id="ID6F35E9A2AE6C41579C100E9797156317"><enum>(A)</enum><text>has an enrollment

				of undergraduate students that is not less than 10 percent Native American

				students; and</text>

											</subparagraph><subparagraph id="ID86D5E82C961743DA9E27E72106231863"><enum>(B)</enum><text>is not a Tribal

				College or University (as defined in section 316).</text>

											</subparagraph></paragraph></subsection><subsection id="IDDBEE83DC4FB04A078F2B3AC67FA849B2"><enum>(c)</enum><header>Authorized

				Activities</header>

										<paragraph id="ID653CD1B3E2FC4A61B6BDBC99D69BEE81"><enum>(1)</enum><header>Types of

				activities authorized</header><text>Grants awarded under this section shall be

				used by Native American-serving, nontribal institutions to assist such

				institutions to plan, develop, undertake, and carry out activities to improve

				and expand such institutions’ capacity to serve Native Americans.</text>

										</paragraph><paragraph id="ID490ED59D7A8F4486BD4409DCD898C4D7"><enum>(2)</enum><header>Examples of

				authorized activities</header><text>Such programs may include—</text>

											<subparagraph id="ID3BEBBC841D3541D4AD72970FBE97E737"><enum>(A)</enum><text>the purchase,

				rental, or lease of scientific or laboratory equipment for educational

				purposes, including instructional and research purposes;</text>

											</subparagraph><subparagraph id="IDC3214716EF7C445D83BAE6C6CCC7C33A"><enum>(B)</enum><text>renovation and

				improvement in classroom, library, laboratory, and other instructional

				facilities;</text>

											</subparagraph><subparagraph id="IDA3E2DEDF78C241A7AE4C26C9C8D3CFA7"><enum>(C)</enum><text>support of

				faculty exchanges, and faculty development and faculty fellowships to assist

				faculty in attaining advanced degrees in the faculty’s field of

				instruction;</text>

											</subparagraph><subparagraph id="IDD956663EDAA9447CB127B401B46FD724"><enum>(D)</enum><text>curriculum

				development and academic instruction;</text>

											</subparagraph><subparagraph id="ID5AAB2FF9DC734160A0966F4A1CFD2ADF"><enum>(E)</enum><text>the purchase of

				library books, periodicals, microfilm, and other educational materials;</text>

											</subparagraph><subparagraph id="ID6A6C930B2CFF4A6E893B956737F556BE"><enum>(F)</enum><text>funds and

				administrative management, and acquisition of equipment for use in

				strengthening funds management;</text>

											</subparagraph><subparagraph id="ID33B5D76F15C14F9BA7E02371D3FDEA8B"><enum>(G)</enum><text>the joint use of

				facilities such as laboratories and libraries; and</text>

											</subparagraph><subparagraph id="ID85242928E23641D3A2B27D5860AFB12A"><enum>(H)</enum><text>academic tutoring

				and counseling programs and student support services.</text>

											</subparagraph></paragraph></subsection><subsection id="ID5ECF185330E548799948E8688C7C6008"><enum>(d)</enum><header>Application

				Process</header>

										<paragraph id="IDF39749EA03214627BD2CDA97C45E7B1A"><enum>(1)</enum><header>Institutional

				eligibility</header><text>A Native American-serving, nontribal institution

				desiring to receive assistance under this section shall submit to the Secretary

				such enrollment data as may be necessary to demonstrate that the institution is

				a Native American-serving, nontribal institution, along with such other

				information and data as the Secretary may by regulation require.</text>

										</paragraph><paragraph id="IDDBEF86A59686480290139094E4EBA028"><enum>(2)</enum><header>Applications</header>

											<subparagraph id="IDC62920BCF6AE449885C58579E979918D"><enum>(A)</enum><header>Permission to

				submit applications</header><text>Any institution that is determined by the

				Secretary to be a Native American-serving, nontribal institution may submit an

				application for assistance under this section to the Secretary.</text>

											</subparagraph><subparagraph id="IDB2E37A5A814B45E496CFF110E063032F"><enum>(B)</enum><header>Simplified and

				streamlined format</header><text>The Secretary shall, to the extent possible,

				prescribe a simplified and streamlined format for applications under this

				section that takes into account the limited number of institutions that are

				eligible for assistance under this section.</text>

											</subparagraph><subparagraph id="IDA63837AB0AA949D38756A2C9485DD8F8"><enum>(C)</enum><header>Content</header><text>An

				application submitted under subparagraph (A) shall include—</text>

												<clause id="ID15990FAA224F412092F37FB4BBD5C4D6"><enum>(i)</enum><text>a

				5-year plan for improving the assistance provided by the Native

				American-serving, nontribal institution to Native Americans; and</text>

												</clause><clause id="ID3A6DAC3D2AFC4F4FA22C3018619456CF"><enum>(ii)</enum><text>such other

				information and assurances as the Secretary may require.</text>

												</clause></subparagraph></paragraph><paragraph id="IDF93265FC3CA64DFF833F03F36D5F4038"><enum>(3)</enum><header>Special

				rules</header>

											<subparagraph id="ID946779F479A74CA1B6F235FC8659B43F"><enum>(A)</enum><header>Eligibility</header><text>No

				Native American-serving, nontribal institution that receives funds under this

				section shall concurrently receive funds under other provisions of this part or

				part B.</text>

											</subparagraph><subparagraph id="ID52C750F9D563423AB45B035515260028"><enum>(B)</enum><header>Exemption</header><text>Section

				313(d) shall not apply to institutions that are eligible to receive funds under

				this section.</text>

											</subparagraph><subparagraph id="ID907E95F9E1AC4235B2E6221B74E347C5"><enum>(C)</enum><header>Distribution</header><text>In

				awarding grants under this section, the Secretary shall, to the extent possible

				and consistent with the competitive process under which such grants are

				awarded, ensure maximum and equitable distribution among all eligible

				institutions.</text>

											</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

						</subsection><subsection id="IDC7B1D33E6F9A4EA5893D06B4A9372499"><enum>(b)</enum><header>Authorization

			 of Appropriations</header><text>Section 399 (20 U.S.C. 1068h) is amended by

			 adding at the end the following:</text>

							<quoted-block id="ID7C82F948F2B84265B3BAB9602E8CC02F" style="OLC">

								<subsection id="ID957D2C18A922441186688518C3CD25F5"><enum>(c)</enum><header>Minimum Grant

				Amount</header><text>The minimum amount of a grant under this title shall be

				$200,000.</text>

								</subsection><after-quoted-block>.</after-quoted-block></quoted-block>

						</subsection></section><section id="IDFCCF5EC5780546878ECEE021E472C1C0"><enum>7346.</enum><header>Part

			 <enum-in-header>B</enum-in-header> definitions</header><text display-inline="no-display-inline">Section 322(4) (20 U.S.C. 1061(4)) is

			 amended by inserting <quote>, in consultation with the Commissioner for

			 Education Statistics</quote> before <quote>and the Commissioner</quote>.</text>

					</section><section id="ID34CA64EBA37444818968755E6B236E0F"><enum>7347.</enum><header>Grants to

			 institutions</header><text display-inline="no-display-inline">Section 323(a)

			 (20 U.S.C. 1062(a)) is amended—</text>

						<paragraph id="ID57E0B745F98943BDB33DDE4D5AE63C82"><enum>(1)</enum><text>in the matter

			 preceding paragraph (1), by striking <quote>360(a)(2)</quote> and inserting

			 <quote>399(a)(2)</quote>;</text>

						</paragraph><paragraph id="ID72B1A0087C5F4245833237504F6E2F40"><enum>(2)</enum><text>by redesignating

			 paragraphs (7) through (12) as paragraphs (8) through (13), respectively;

			 and</text>

						</paragraph><paragraph id="ID04AB19A892E848B0ABD5E9F24FADBF44"><enum>(3)</enum><text>by inserting

			 after paragraph (6) the following:</text>

							<quoted-block id="IDE593322BE3EE481BA49A5723323E7846" style="OLC">

								<paragraph id="IDDFE547D2EC68454292740891B88BE88E"><enum>(7)</enum><text>Education or

				counseling services designed to improve the financial literacy and economic

				literacy of students or the students’

				parents.</text>

								</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section><section id="IDD67B723F8CFC4DC895591F43ADE8361A"><enum>7348.</enum><header>Allotments to

			 institutions</header><text display-inline="no-display-inline">Section 324 (20

			 U.S.C. 1063) is amended by adding at the end the following:</text>

						<quoted-block id="ID2746658B1F3F4CC1AAC585787DAEE561" style="OLC">

							<subsection id="IDBC84614D71D64A37BC93C7EA621DF7C1"><enum>(h)</enum><header>Special Rule on

				Eligibility</header><text>Notwithstanding any other provision of this section,

				a part B institution shall not receive an allotment under this section unless

				the part B institution provides, on an annual basis, data indicating that the

				part B institution—</text>

								<paragraph id="ID483499BA223B4C00A45530947B277D8D"><enum>(1)</enum><text>enrolled Federal

				Pell Grant recipients in the preceding academic year;</text>

								</paragraph><paragraph id="ID61FC886841E94E719E975604268615CE"><enum>(2)</enum><text>in the preceding

				academic year, has graduated students from a program of academic study that is

				licensed or accredited by a nationally recognized accrediting agency or

				association recognized by the Secretary pursuant to part H of title IV where

				appropriate; and</text>

								</paragraph><paragraph id="IDC247BEB41AEA42F28DFA39371F01ED7C"><enum>(3)</enum><text>where

				appropriate, has graduated students who, within the past 5 years, enrolled in

				graduate or professional

				school.</text>

								</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

					</section><section id="ID70C345740D10417A93E892440C8EE2F1"><enum>7349.</enum><header>Professional

			 or graduate institutions</header><text display-inline="no-display-inline">Section 326 (20 U.S.C. 1063b) is

			 amended—</text>

						<paragraph id="ID1365C3A40AFE4C0D873F4C4694CEA135"><enum>(1)</enum><text>in subsection

			 (c)—</text>

							<subparagraph id="ID291E6C31BC4C4541AC58C359C1DED834"><enum>(A)</enum><text>in paragraph (2),

			 by inserting <quote>, and for the acquisition and development of real property

			 that is adjacent to the campus for such construction, maintenance, renovation,

			 or improvement</quote> after <quote>services</quote>;</text>

							</subparagraph><subparagraph id="ID30E8F5DC47E74FBB9BF369AEFA68934F"><enum>(B)</enum><text>by redesignating

			 paragraphs (5) through (7) as paragraphs (7) through (9), respectively;</text>

							</subparagraph><subparagraph id="IDECAC33BFCC004DF5A11EC002860A527E"><enum>(C)</enum><text>by inserting

			 after paragraph (4) the following:</text>

								<quoted-block id="ID2E696F03B0424780B8DEAFD7DA6C370D" style="OLC">

									<paragraph id="IDCB4DCBBB15624F0C95BC07342E1D6C75"><enum>(5)</enum><text>tutoring,

				counseling, and student service programs designed to improve academic

				success;</text>

									</paragraph><paragraph id="ID598CBF0296F84F2FB4A5ADD7E338BE2C"><enum>(6)</enum><text>education or

				counseling services designed to improve the financial literacy and economic

				literacy of students or the students’

				parents;</text>

									</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="ID8B001448E21C4340A9E9902B418A9945"><enum>(D)</enum><text>in paragraph (7)

			 (as redesignated by subparagraph (B)), by striking <quote>establish or

			 improve</quote> and inserting <quote>establishing or improving</quote>;</text>

							</subparagraph><subparagraph id="ID7AF68E677BF340979C465601BF6E00BB"><enum>(E)</enum><text>in paragraph (8)

			 (as redesignated by subparagraph (B))—</text>

								<clause id="ID8AB3F780A44E413896732A7CE2736D3F"><enum>(i)</enum><text>by

			 striking <quote>assist</quote> and inserting <quote>assisting</quote>;

			 and</text>

								</clause><clause id="IDA6C19034E214455EBE63522D8DE6C73A"><enum>(ii)</enum><text>by

			 striking <quote>and</quote> after the semicolon;</text>

								</clause></subparagraph><subparagraph id="ID86360E3A6BA3462591100F916C1D0CCB"><enum>(F)</enum><text>in paragraph (9)

			 (as redesignated by subparagraph (B)), by striking the period and inserting

			 <quote>; and</quote>; and</text>

							</subparagraph><subparagraph id="IDD6CEED69F33847B98D80E09C2B0050E7"><enum>(G)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="ID77D21B8DBA034209A05149E5D92997B2" style="OLC">

									<paragraph id="IDE68F706BB26C4B17A63D6BCD255FE7DE"><enum>(10)</enum><text>other activities

				proposed in the application submitted under subsection (d) that—</text>

										<subparagraph id="ID8E44A01A69CE4851AD7E39A034791495"><enum>(A)</enum><text>contribute to

				carrying out the purposes of this part; and</text>

										</subparagraph><subparagraph id="ID0FFB6B12D5714142AE90B4C936C6C580"><enum>(B)</enum><text>are approved by

				the Secretary as part of the review and acceptance of such

				application.</text>

										</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="ID1ADC95CCBF0B498FA3CDD23CAF01E437"><enum>(2)</enum><text>in subsection

			 (e)—</text>

							<subparagraph id="IDFDF97504B88049EFBB0CF21A1800F191"><enum>(A)</enum><text>in paragraph

			 (1)—</text>

								<clause id="ID77683DAB34D34FD0B511DDFDA0EA0A6B"><enum>(i)</enum><text>by

			 inserting a colon after <quote>the following</quote>;</text>

								</clause><clause id="IDECA72359E1B2472A9A89E02E0ABF15E5"><enum>(ii)</enum><text>in

			 subparagraph (Q), by striking <quote>and</quote> at the end;</text>

								</clause><clause id="IDD3AE27AB52694B149ACEC8897E9245A8"><enum>(iii)</enum><text>in subparagraph

			 (R), by striking the period and inserting a semicolon; and</text>

								</clause><clause id="IDB0E4A66DF250466185EAEFE9F4724D7F"><enum>(iv)</enum><text>by

			 adding at the end the following:</text>

									<quoted-block id="IDF8F810A6C1194D8B8C4D7DD3B2FC9C5A" style="OLC">

										<subparagraph id="ID4C8915208B82476CB2346509975A24EE"><enum>(S)</enum><text>Alabama State

				University qualified graduate program;</text>

										</subparagraph><subparagraph id="IDE9D5165E46E144E2B6D7683D00C817E6"><enum>(T)</enum><text>Coppin State

				University qualified graduate program; and</text>

										</subparagraph><subparagraph id="IDE4456B15088846C18540BD6EECF130DC"><enum>(U)</enum><text>Prairie View A

				&amp; M University qualified graduate

				program.</text>

										</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>

								</clause></subparagraph><subparagraph id="ID47D6292A82134C6CBE8FD62AFAB0016F"><enum>(B)</enum><text>in paragraph (2),

			 by inserting <quote>in law or</quote> after <quote>instruction</quote>;

			 and</text>

							</subparagraph><subparagraph id="ID1E3BA853428049FA834ED2BD743FCFFD"><enum>(C)</enum><text>in paragraph

			 (3)—</text>

								<clause id="ID61E524C19FE74FE5ABC91EBB3B98F4FD"><enum>(i)</enum><text>by

			 striking <quote>1998</quote> and inserting <quote>2006</quote>; and</text>

								</clause><clause id="IDC79080823BA14CCBB1477CB2C307C61F"><enum>(ii)</enum><text>by

			 striking <quote>(Q) and (R)</quote> and inserting <quote>(S), (T), and

			 (U)</quote>;</text>

								</clause></subparagraph></paragraph><paragraph id="IDE78AAA6C8B254E0FA3FE82C32DE9D5F0"><enum>(3)</enum><text>in subsection

			 (f)—</text>

							<subparagraph id="ID5ACE7C864D6B493A9D676A49563DC58F"><enum>(A)</enum><text>in paragraph (1),

			 by striking <quote>(P)</quote> and inserting <quote>(R)</quote>; and</text>

							</subparagraph><subparagraph id="ID88F8A554039442198E35949D2F0FB4B5"><enum>(B)</enum><text>in paragraph

			 (3)—</text>

								<clause id="ID0E1B5011698D467A84E05F1AC9AFF6A1"><enum>(i)</enum><text>by

			 striking subparagraphs (A) and (B) and inserting the following:</text>

									<quoted-block id="ID3B69DF7F44D040A6B3979380BA02FAB0" style="OLC">

										<subparagraph id="ID04A47E5D09FB4607A2AF221E3B5CE5C0"><enum>(A)</enum><text>The amount of

				non-Federal funds for the fiscal year for which the determination is made that

				the institution or program listed in subsection (e)—</text>

											<clause id="IDE186CD8EA7FB47F59F20D99A2457BABA"><enum>(i)</enum><text>allocates from

				institutional resources;</text>

											</clause><clause id="IDBBA9249BF330449F9D5AA770F30277A8"><enum>(ii)</enum><text>secures from

				non-Federal sources, including amounts appropriated by the State and amounts

				from the private sector; and</text>

											</clause><clause id="ID0FA469F136A04F0F9DDFB62817113140"><enum>(iii)</enum><text>will utilize to

				match Federal funds awarded for the fiscal year for which the determination is

				made under this section to the institution or program.</text>

											</clause></subparagraph><subparagraph id="ID9C5406C154594AF7AB5B0BFC1A371B56"><enum>(B)</enum><text>The number of

				students enrolled in the qualified graduate programs of the eligible

				institution or program, for which the institution or program received and

				allocated funding under this section in the preceding

				year.</text>

										</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>

								</clause><clause id="ID296000187D6643C68CE25B5F7D7C0D7C"><enum>(ii)</enum><text>in

			 subparagraph (C), by striking <quote>(or the equivalent) enrolled in the

			 eligible professional or graduate school</quote> and all that follows through

			 the period and inserting <quote>enrolled in the qualified programs or

			 institutions listed in paragraph (1).</quote>;</text>

								</clause><clause id="ID4DAD1B1EB8AD49C683D3A5FA723C6A8D"><enum>(iii)</enum><text>in subparagraph

			 (D)—</text>

									<subclause id="IDBBC39C106D614389BC765960B5E820A1"><enum>(I)</enum><text>by striking

			 <quote>students</quote> and inserting <quote>Black American students or

			 minority students</quote>; and</text>

									</subclause><subclause id="ID71E32CCB08314A278ABEFB68B0B59DC2"><enum>(II)</enum><text>by striking

			 <quote>institution</quote> and inserting <quote>institution or program</quote>;

			 and</text>

									</subclause></clause><clause id="IDFD71BD2BFA3C402D8F78026D0E863AC4"><enum>(iv)</enum><text>by

			 striking subparagraph (E) and inserting the following:</text>

									<quoted-block id="ID91262C26013B4247B84D9243A231AF6E" style="OLC">

										<subparagraph id="ID713E8E224E0145828F6C69A17AC5269D"><enum>(E)</enum><text>The percentage

				that the total number of Black American students and minority students who

				receive their first professional, master’s, or doctoral degrees from the

				institution or program in the academic year preceding the academic year for

				which the determination is made, represents of the total number of Black

				American students and minority students in the United States who receive their

				first professional, master’s, or doctoral degrees in the professions or

				disciplines related to the course of study at such institution or program,

				respectively, in the preceding academic

				year.</text>

										</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</clause></subparagraph></paragraph><paragraph id="ID76DF933D4392469AB5F3A8672D3B5E3F"><enum>(4)</enum><text>in subsection

			 (g), by striking <quote>1998</quote> and inserting <quote>2006</quote>.</text>

						</paragraph></section><section id="ID87D76ACD1D7D43BBBABF66846F5D66C9"><enum>7350.</enum><header>Authorization

			 of appropriations</header><text display-inline="no-display-inline">Subsection

			 (a) of section 399 (20 U.S.C. 1068h) is amended to read as follows:</text>

						<quoted-block id="ID80D0A463674B49148E728EA8BD03728F" style="OLC">

							<subsection id="ID728970A6FD144A42BD15F2A19A61249F"><enum>(a)</enum><header>Authorizations</header>

								<paragraph id="ID3EE5EFB42D1F478CB145E14CF9749227"><enum>(1)</enum><header>Part

				<enum-in-header>A</enum-in-header></header><subparagraph commented="no" display-inline="yes-display-inline" id="IDBB3E258556B645AE87296B9E014E638A"><enum>(A)</enum><text>There are authorized to

				be appropriated to carry out part A (other than section 316) such sums as may

				be necessary for fiscal year 2006 and each of the 5 succeeding fiscal

				years.</text>

									</subparagraph><subparagraph id="IDB408A3214CB04DA58C8FB2C426D57000" indent="up1"><enum>(B)</enum><text>There are authorized to be

				appropriated to carry out section 316 such sums as may be necessary for fiscal

				year 2006 and each of the 5 succeeding fiscal years.</text>

									</subparagraph><subparagraph id="ID230D6F1712CF4ED59688D619D01B5326" indent="up1"><enum>(C)</enum><text>There are authorized to be

				appropriated to carry out section 317 such sums as may be necessary for fiscal

				year 2006 and each of the 5 succeeding fiscal years.</text>

									</subparagraph><subparagraph id="ID9AFC4FE2643C4C39916D54174FDC5D12" indent="up1"><enum>(D)</enum><text>There are authorized to be

				appropriated to carry out section 318 such sums as may be necessary for fiscal

				year 2006 and each of the 5 succeeding fiscal years.</text>

									</subparagraph></paragraph><paragraph id="IDA58A04FFCD784832AE8042B3E9D0CA7A"><enum>(2)</enum><header>Part

				<enum-in-header>B</enum-in-header></header><subparagraph commented="no" display-inline="yes-display-inline" id="ID7B62ACE1117A494696D2FF480518D5F0"><enum>(A)</enum><text>There are authorized to

				be appropriated to carry out part B (other than section 326) such sums as may

				be necessary for fiscal year 2006 and each of the 5 succeeding fiscal

				years.</text>

									</subparagraph><subparagraph id="ID78FEF7795C8F4FDA93598940FB395D35" indent="up1"><enum>(B)</enum><text>There are authorized to be

				appropriated to carry out section 326 such sums as may be necessary for fiscal

				year 2006 and each of the 5 succeeding fiscal years.</text>

									</subparagraph></paragraph><paragraph id="IDD4ACBBF7B42044619DC5CED2558E3796"><enum>(3)</enum><header>Part

				<enum-in-header>C</enum-in-header></header><text>There are authorized to be

				appropriated to carry out part C such sums as may be necessary for fiscal year

				2006 and each of the 5 succeeding fiscal years.</text>

								</paragraph><paragraph id="ID0C8C99B5E64A47CDAF34FCF1A8F229A2"><enum>(4)</enum><header>Part

				<enum-in-header>D</enum-in-header></header><subparagraph commented="no" display-inline="yes-display-inline" id="ID6344B129DA9B475690D77CA1EA821449"><enum>(A)</enum><text>There are authorized to

				be appropriated to carry out part D (other than section 345(7), but including

				section 347) such sums as may be necessary for fiscal year 2006 and each of the

				5 succeeding fiscal years.</text>

									</subparagraph><subparagraph id="ID4FF14EF049AA40A5B1552972167B61AA" indent="up1"><enum>(B)</enum><text>There are authorized to be

				appropriated to carry out section 345(7) such sums as may be necessary for

				fiscal year 2006 and each of the 5 succeeding fiscal years.</text>

									</subparagraph></paragraph><paragraph id="IDC3A8A01E47A24DE492F9E2EBDAF6E465"><enum>(5)</enum><header>Part

				<enum-in-header>E</enum-in-header></header><text>There are authorized to be

				appropriated to carry out part E such sums as may be necessary for fiscal year

				2006 and each of the 5 succeeding fiscal

				years.</text>

								</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

					</section><section id="ID6C34E9DCD3C34C628D4299A7674984CA"><enum>7351.</enum><header>Technical

			 corrections</header><text display-inline="no-display-inline">Title III (20

			 U.S.C. 1051 et seq.) is further amended—</text>

						<paragraph id="ID3B8E61A05A374A3DAB2088C7F84E846E"><enum>(1)</enum><text>in section

			 342(5)(C) (20 U.S.C. 1066a(5)(C)), by striking <quote>,,</quote> and inserting

			 <quote>,</quote>;</text>

						</paragraph><paragraph id="ID272538F82D1F4F77ABCC0E70EE2E509E"><enum>(2)</enum><text>in section 343(e)

			 (20 U.S.C. 1066b(e)), by inserting <quote><header-in-text>Sale of Qualified

			 Bonds</header-in-text>.—</quote> before <quote>Notwithstanding</quote>;</text>

						</paragraph><paragraph id="IDBA78BE98EDED449596EA80CFBCC94D10"><enum>(3)</enum><text>in the matter

			 preceding clause (i) of section 365(9)(A) (20 U.S.C. 1067k(9)(A)), by striking

			 <quote>support</quote> and inserting <quote>supports</quote>;</text>

						</paragraph><paragraph id="ID494D038CC4A8432D849B29F2BDA04105"><enum>(4)</enum><text>in section

			 391(b)(7)(E) (20 U.S.C. 1068(b)(7)(E)), by striking <quote>subparagraph

			 (E)</quote> and inserting <quote>subparagraph (D)</quote>;</text>

						</paragraph><paragraph id="ID79290069366245248F6700D78505DD6C"><enum>(5)</enum><text>in the matter

			 preceding subparagraph (A) of section 392(b)(2) (20 U.S.C. 1068a(b)(2)), by

			 striking <quote>eligible institutions under part A institutions</quote> and

			 inserting <quote>eligible institutions under part A</quote>; and</text>

						</paragraph><paragraph id="ID6B70480BDF2243EB834042B480F7A3D7"><enum>(6)</enum><text>in the matter

			 preceding paragraph (1) of section 396 (20 U.S.C. 1068e), by striking

			 <quote>360</quote> and inserting <quote>399</quote>.</text>

						</paragraph></section></chapter><chapter id="ID0F42CFA698F44DFE991EA8118175A247"><enum>5</enum><header>STUDENT

			 ASSISTANCE</header>

					<subchapter id="ID447A7EDE554743FEA9581F591739BAAB"><enum>A</enum><header>Grants to

			 Students in Attendance at Institutions of Higher Education</header>

						<section id="IDF42317DCD5EB4585A8611EE79657505F"><enum>7361.</enum><header>Federal Pell

			 Grants</header><text display-inline="no-display-inline">Section 401 (20 U.S.C.

			 1070a) is amended—</text>

							<paragraph id="IDA63C99B370404C718754AF9AF58E2B00"><enum>(1)</enum><text>in subsection

			 (a)(1)—</text>

								<subparagraph id="ID9072300155504CF38A9C233CE2539EF5"><enum>(A)</enum><text>in the first

			 sentence, by striking <quote>2004</quote> and inserting <quote>2012</quote>;

			 and</text>

								</subparagraph><subparagraph id="IDBCF696735A6B4FD48EEE48E117D324E3"><enum>(B)</enum><text>in the second

			 sentence, by striking <quote>,,</quote> and inserting <quote>,</quote>;</text>

								</subparagraph></paragraph><paragraph id="IDB9D088F78F5C47A08DACC1CE8A9EE58A"><enum>(2)</enum><text>in subsection

			 (b)—</text>

								<subparagraph id="ID6B5FEA5B17EC48EC9747A041D41E5E63"><enum>(A)</enum><text>by striking

			 paragraph (2)(A) and inserting the following:</text>

									<quoted-block id="ID23BD7BCDFBA642CF98FB860B6153AB4A" style="OLC">

										<paragraph id="ID90982EB1D9A74A839E797672E86F03F8" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID12CB7F6E47B2447ABD5555AD5F8403CE"><enum>(A)</enum><text>the amount of the

				Federal Pell Grant for a student eligible under this part shall be—</text>

												<clause id="IDCDE01531E6B947738370A73F2A6A9186" indent="up1"><enum>(i)</enum><text>$5,100 for academic year

				2006–2007;</text>

												</clause><clause id="ID815F378703FD46EBA4D6FC7321DAD1CE" indent="up1"><enum>(ii)</enum><text>$5,400 for academic year

				2007–2008;</text>

												</clause><clause id="ID56FDF8AA0BFE4E7185A2B8CF161FE496" indent="up1"><enum>(iii)</enum><text>$5,700 for academic year

				2008–2009;</text>

												</clause><clause id="ID59F1B18633864A4D94F5B3E0BB42C36B" indent="up1"><enum>(iv)</enum><text>$6,000 for academic year 2009–2010;

				and</text>

												</clause><clause id="ID4575A5CC7B0D45B5A24AD5AED210C23B" indent="up1"><enum>(v)</enum><text>$6,300 for academic year

				2010–2011,</text>

												</clause></subparagraph></paragraph><quoted-block-continuation-text quoted-block-continuation-text-level="subsection">less an

				amount equal to the amount determined to be the expected family contribution

				with respect to that student for that

				year.</quoted-block-continuation-text><after-quoted-block>;</after-quoted-block></quoted-block>

								</subparagraph><subparagraph id="IDCF28429E9FD04ED5B9E651630FF5F965"><enum>(B)</enum><text>by striking

			 paragraph (3);</text>

								</subparagraph><subparagraph id="IDFF623D328445484FB11616211A9EB505"><enum>(C)</enum><text>by redesignating

			 paragraphs (4) through (8) as paragraphs (3) through (7), respectively;</text>

								</subparagraph><subparagraph id="IDE91CA0F3DBDF4CB285E372D027C36474"><enum>(D)</enum><text>in paragraph (4)

			 (as redesignated by subparagraph (C)), by striking <quote>$400, except</quote>

			 and all that follows through the period and inserting <quote>10 percent of the

			 maximum basic grant level specified in the appropriate Appropriation Act for

			 such academic year, except that a student who is eligible for a Federal Pell

			 Grant in an amount that is equal to or greater than 5 percent of such level but

			 less than 10 percent of such level shall be awarded a Federal Pell grant in the

			 amount of 10 percent of such level.</quote>; and</text>

								</subparagraph><subparagraph id="ID657E62B7EA914A53A67799956FC51016"><enum>(E)</enum><text>by striking

			 paragraph (5) (as redesignated by subparagraph (C)) and inserting the

			 following:</text>

									<quoted-block id="IDD2B2E81FDAA649D9BC1DF4CA0CC6EDCE" style="OLC">

										<paragraph id="ID3E865C974B324D8B83AAE107EF23B4A1" indent="up1"><enum>(5)</enum><text>In the case of a student who is

				enrolled, on at least a half-time basis and for a period of more than 1

				academic year in a 2-year or 4-year program of instruction for which an

				institution of higher education awards an associate or baccalaureate degree,

				the Secretary shall allow such student to receive not more than 2 Federal Pell

				Grants during a single award year to permit such student to accelerate the

				student’s progress toward a degree by attending additional sessions. In the

				case of a student receiving more than 1 Federal Pell Grant in a single award

				year, the total amount of Federal Pell Grants awarded to such student for the

				award year may exceed the maximum basic grant level specified in the

				appropriate Appropriation Act for such award

				year.</text>

										</paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</subparagraph></paragraph><paragraph id="IDA5C1F563ED7846B7BA2BD9D1B6D5D203"><enum>(3)</enum><text>in subsection

			 (c), by adding at the end the following:</text>

								<quoted-block id="IDA283010ED02E4FF888BDF8A023926396" style="OLC">

									<paragraph id="ID96A37C52DF25450D85697BD28E1C7F61" indent="up1"><enum>(5)</enum><text>The period of time during which a

				student may receive Federal Pell Grants shall not exceed 18 semesters, or an

				equivalent period of time as determined by the Secretary pursuant to

				regulations, which period shall—</text>

										<subparagraph id="ID46DC5381B17F4B328B722FC298181AB2"><enum>(A)</enum><text>be determined without regard to

				whether the student is enrolled on a full-time basis during any portion of the

				period of time; and</text>

										</subparagraph><subparagraph id="ID822A7F75733141B1B26E1ADB053B88F4"><enum>(B)</enum><text>include any period of time for which

				the student received a Federal Pell Grant prior to the date of enactment of the

				Higher Education Amendments of

				2005.</text>

										</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></section><section id="IDAB69DC7B8C9A44268F7B7C6074903C91"><enum>7362.</enum><header>Federal TRIO

			 Programs</header>

							<subsection id="IDCED7A8BBEC34408398A34B0655119F2B"><enum>(a)</enum><header>Program

			 Authority; Authorization of Appropriations</header><text>Section 402A (20

			 U.S.C. 1070a–11) is amended—</text>

								<paragraph id="ID34504AAACD0E4F9DBDFD0B51026A2254"><enum>(1)</enum><text>in subsection

			 (b)—</text>

									<subparagraph id="ID15B942630245470BB0948569584B347C"><enum>(A)</enum><text>in paragraph

			 (2)—</text>

										<clause id="ID2B58F918F60A40F99FF7632E8432022B"><enum>(i)</enum><text>in

			 the matter preceding subparagraph (A), by striking <quote>4</quote> and

			 inserting <quote>5</quote>;</text>

										</clause><clause id="ID8F583EC4D6A04891B76A6D661FC0CE45"><enum>(ii)</enum><text>by

			 striking subparagraph (A); and</text>

										</clause><clause id="ID54CD620B47174C6BA0111026D10A5A31"><enum>(iii)</enum><text>by

			 redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B),

			 respectively; and</text>

										</clause></subparagraph><subparagraph id="IDED26040E75384F7890A79F51B345C8A1"><enum>(B)</enum><text>by striking

			 paragraph (3) and inserting the following:</text>

										<quoted-block id="ID8E14439217EB420EB4C239A171E2DCE5" style="OLC">

											<paragraph id="ID5C49AF8AB67A42D899B5B6C72D77A013"><enum>(3)</enum><header>Minimum

				grants</header><text>Unless the institution or agency requests a smaller

				amount, an individual grant authorized under this chapter shall be awarded in

				an amount that is not less than $200,000, except that an individual grant

				authorized under section 402G shall be awarded in an amount that is not less

				than

				$170,000.</text>

											</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

									</subparagraph></paragraph><paragraph id="IDD735A2BB0CCD4FD98BDDCBCF2E70113E"><enum>(2)</enum><text>in subsection

			 (c)—</text>

									<subparagraph id="ID1C0C6036B81F4B03B510747E6914FA87"><enum>(A)</enum><text>in paragraph (2),

			 by striking <quote>service delivery</quote> and inserting <quote>high quality

			 service delivery, as determined under subsection (f),</quote>;</text>

									</subparagraph><subparagraph id="ID0798EB3A9795438680BBA94554A2B725"><enum>(B)</enum><text>in paragraph

			 (3)(B), by striking <quote>is not required to</quote> and inserting

			 <quote>shall not</quote>; and</text>

									</subparagraph><subparagraph id="IDC346A4D33E894E76B6F8ECCD2591E45B"><enum>(C)</enum><text>in paragraph (5),

			 by striking <quote>campuses</quote> and inserting <quote>different

			 campuses</quote>;</text>

									</subparagraph></paragraph><paragraph id="ID431DB8F4D8804AACA7D0F1E33EE06BA9"><enum>(3)</enum><text>in subsection

			 (e), by striking <quote>(g)(2)</quote> each place the term occurs and inserting

			 <quote>(h)(4)</quote>;</text>

								</paragraph><paragraph id="ID29CEFADC78B740918369CBFAE46A1C4E"><enum>(4)</enum><text>by redesignating

			 subsections (f) and (g) as subsections (g) and (h), respectively;</text>

								</paragraph><paragraph id="ID2494EF2A32164400A320EA848268EE3B"><enum>(5)</enum><text>by inserting

			 after subsection (e) the following:</text>

									<quoted-block id="ID84971D1843A44866B36032EB1B4582E0" style="OLC">

										<subsection id="IDEAC81811EBF040A89ECF9B97E6AABC63"><enum>(f)</enum><header>Outcome

				Criteria</header>

											<paragraph id="ID14999DCA5F0D42BC858C52A73972A4F2"><enum>(1)</enum><header>In

				general</header><text>The Secretary, by regulation, shall establish outcome

				criteria for measuring, annually and for longer periods, the quality and

				effectiveness of programs authorized under this chapter.</text>

											</paragraph><paragraph id="ID704A1E0E2C9A487A9D20A70C3B532599"><enum>(2)</enum><header>Use for prior

				experience determination</header><text>The outcome criteria under paragraph (1)

				shall be used to evaluate the programs provided by a recipient of a grant under

				this chapter, and the Secretary shall determine an eligible entity’s prior

				experience of high quality service delivery, as required in subsection (c)(2),

				based on the outcome criteria.</text>

											</paragraph><paragraph id="IDDC932B8BED274CB5AE60953195F8FD9A"><enum>(3)</enum><header>Consideration

				of relevant data</header><text>The outcome criteria under this subsection shall

				take into account data pertaining to secondary school completion, postsecondary

				education enrollment, and postsecondary education completion for low-income

				students, first generation college students, and individuals with disabilities,

				in the schools and institutions of higher education served by the program to be

				evaluated.</text>

											</paragraph><paragraph id="ID90F3C031B7284A00A632D3790F3E2C05"><enum>(4)</enum><header>Contents of

				outcome criteria</header><text>The outcome criteria shall include the

				following:</text>

												<subparagraph id="IDF08E3E0FED6C4851BA9CB09F618D9C47"><enum>(A)</enum><text>For programs

				authorized under section 402B, whether the eligible entity met or exceeded the

				entity’s objectives established in the entity’s application for such program

				regarding—</text>

													<clause id="ID1DF30C5DC5E4463497741DA73C7E2F2E"><enum>(i)</enum><text>the delivery of

				service to a total number of students served by the program;</text>

													</clause><clause id="IDC5AACEAF2945467292DEFA45DF733EAA"><enum>(ii)</enum><text>the continued

				secondary school enrollment of such students;</text>

													</clause><clause id="ID671C7537761040AD9A7861D0D62EE123"><enum>(iii)</enum><text>the graduation

				of such students from secondary school; and</text>

													</clause><clause id="IDC905B95270B64411AE4199541D73CA6B"><enum>(iv)</enum><text>the enrollment

				of such students in an institution of higher education.</text>

													</clause></subparagraph><subparagraph id="ID91C8B9B967544F778B71469CA4EF147A"><enum>(B)</enum><text>For programs

				authorized under section 402C, whether the eligible entity met or exceeded its

				objectives for such program regarding—</text>

													<clause id="ID83E752657D4D45A782644D511AF19541"><enum>(i)</enum><text>the delivery of

				service to a total number of students served by the program, as agreed upon by

				the entity and the Secretary for the period;</text>

													</clause><clause id="ID643DA3A0AECB4C04A6CD690C0925FD50"><enum>(ii)</enum><text>such students’

				school performance, as measured by the grade point average, or its

				equivalent;</text>

													</clause><clause id="ID95A4248B0EEC4119B42CA281F97BF9B3"><enum>(iii)</enum><text>such students’

				academic performance, as measured by standardized tests, including tests

				required by the students’ State;</text>

													</clause><clause id="ID287F6E26C70049A88F261AC0F3F3E3F0"><enum>(iv)</enum><text>the retention

				in, and graduation from, secondary school of such students; and</text>

													</clause><clause id="ID7D904216B9FF408CA582DA242FC2F1F2"><enum>(v)</enum><text>the enrollment of

				such students in an institution of higher education.</text>

													</clause></subparagraph><subparagraph id="ID109280FE73364B4396C6CA0866B5681D"><enum>(C)</enum><text>For programs

				authorized under section 402D—</text>

													<clause id="ID5F8F586457174C74BAD3A39FCE35B7D6"><enum>(i)</enum><text>whether the

				eligible entity met or exceeded the entity’s objectives regarding the retention

				in postsecondary education of the students served by the program;</text>

													</clause><clause id="IDC8A2C87A85D94EC0A681617B2E44264B"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="ID4F4B02D3BEA147BCBAACBECC4A3A801D"><enum>(I)</enum><text>in the case of an

				entity that is an institution of higher education offering a baccalaureate

				degree, the extent to which the entity met or exceeded the entity’s objectives

				regarding such students’ completion of the degree programs in which such

				students were enrolled; or</text>

														</subclause><subclause id="ID38BA3E343B1F486488EF35EFFBEF05A3" indent="up1"><enum>(II)</enum><text>in the case of an entity that is an

				institution of higher education that does not offer a baccalaureate degree, the

				extent to which the entity met or exceeded the entity’s objectives

				regarding—</text>

															<item id="ID210E3DF9FF404DAC8F999C64A5BF8B81"><enum>(aa)</enum><text>the completion of a degree or

				certificate by such students; and</text>

															</item><item id="ID510A6FCB3E924C4897A8C5E981C5C683"><enum>(bb)</enum><text>the transfer of such students to

				institutions of higher education that offer baccalaureate degrees;</text>

															</item></subclause></clause><clause id="IDC4F1768A05E7462689DD825BFB5764A8"><enum>(iii)</enum><text>whether the

				entity met or exceeded the entity’s objectives regarding the delivery of

				service to a total number of students, as agreed upon by the entity and the

				Secretary for the period; and</text>

													</clause><clause id="ID94BED4D96A6F459C9F9193DDB08CDC37"><enum>(iv)</enum><text>whether the

				applicant met or exceeded the entity’s objectives regarding such students

				remaining in good academic standing.</text>

													</clause></subparagraph><subparagraph id="ID8FA0426791E74178ACEC6E11B387B7B2"><enum>(D)</enum><text>For programs

				authorized under section 402E, whether the entity met or exceeded the entity’s

				objectives for such program regarding—</text>

													<clause id="IDE2AEB35A24ED4271B5E06B298E8C3D47"><enum>(i)</enum><text>the delivery of

				service to a total number of students, as agreed upon by the entity and the

				Secretary for the period;</text>

													</clause><clause id="IDF4EEE002AE444757B82C1A65A2041DD0"><enum>(ii)</enum><text>the provision of

				appropriate scholarly and research activities for the students served by the

				program;</text>

													</clause><clause id="IDEAC001BF71484292985EC60F27382E87"><enum>(iii)</enum><text>the acceptance

				and enrollment of such students in graduate programs; and</text>

													</clause><clause id="ID46CAC80C29774EBA86D958DB77F5CE3A"><enum>(iv)</enum><text>the attainment

				of doctoral degrees by former program participants.</text>

													</clause></subparagraph><subparagraph id="IDE4C887896D254D339EF31A1A7060E949"><enum>(E)</enum><text>For programs

				authorized under section 402F, whether the entity met or exceeded the entity’s

				objectives for such program regarding—</text>

													<clause id="IDCF9F4455174D4533AD7779D8113C74FA"><enum>(i)</enum><text>the enrollment of

				students without a secondary school diploma or its recognized equivalent, who

				were served by the program, in programs leading to such diploma or

				equivalent;</text>

													</clause><clause id="ID0BF1A3686F98495A99038A322E03845C"><enum>(ii)</enum><text>the enrollment

				of secondary school graduates who were served by the program in programs of

				postsecondary education;</text>

													</clause><clause id="IDA520A3A872604009B255E6FBA68DB4D9"><enum>(iii)</enum><text>the delivery of

				service to a total number of students, as agreed upon by the entity and the

				Secretary for the period; and</text>

													</clause><clause id="ID178C7AC98D6D499395DE9D5DFD299C9D"><enum>(iv)</enum><text>the provision of

				assistance to students served by the program in completing financial aid

				applications and college admission

				applications.</text>

													</clause></subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>

								</paragraph><paragraph id="IDE275739821AF4ED3A9F3FAADB2AB15F3"><enum>(6)</enum><text>in subsection (g)

			 (as redesignated by paragraph (4))—</text>

									<subparagraph id="IDF2C0C793397D4535AB840205BC1E8979"><enum>(A)</enum><text>in the first

			 sentence, by striking <quote>$700,000,000 for fiscal year 1999</quote> and all

			 that follows through the period and inserting <quote>such sums as may be

			 necessary for fiscal year 2006 and each of the 5 succeeding fiscal

			 years.</quote>; and</text>

									</subparagraph><subparagraph id="ID7F5832C8C2D34E90A7BCAFA5B05801CF"><enum>(B)</enum><text>by striking the

			 fourth sentence; and</text>

									</subparagraph></paragraph><paragraph id="ID957994FB27E34AB9BC799A221D98C256"><enum>(7)</enum><text>in subsection (h)

			 (as redesignated by paragraph (4))—</text>

									<subparagraph id="ID7431F52D6D19419DA8CC5F758ACE4BC5"><enum>(A)</enum><text>by redesignating

			 paragraphs (1) through (4) as paragraphs (3) through (6), respectively;</text>

									</subparagraph><subparagraph id="ID37996D62EBA940BCB0079EB16457749E"><enum>(B)</enum><text>by inserting

			 before paragraph (3) (as redesignated by subparagraph (A)) the

			 following:</text>

										<quoted-block id="IDBE00A66117484AB281C5C9FB847B859E" style="OLC">

											<paragraph id="ID506A07B001654FE2B611DCA2DB2E09E2"><enum>(1)</enum><header>Different

				campus</header><text>The term <term>different campus</term> means a site of an

				institution of higher education that—</text>

												<subparagraph id="IDED0EF4A34570457F86046C7CCAC39C74"><enum>(A)</enum><text>is geographically

				apart from the main campus of the institution;</text>

												</subparagraph><subparagraph id="ID1F1D55973F9246708593DE9AF4884C44"><enum>(B)</enum><text>is permanent in

				nature; and</text>

												</subparagraph><subparagraph id="ID545DCE62C90042ECB4C7990A8D8160B7"><enum>(C)</enum><text>offers courses in

				educational programs leading to a degree, certificate, or other recognized

				educational credential.</text>

												</subparagraph></paragraph><paragraph id="IDD9D938CB76B34A099A3A1D361FF5C0E4"><enum>(2)</enum><header>Different

				population</header><text>The term <term>different population</term> means a

				group of individuals, with respect to whom an eligible entity desires to serve

				through an application for a grant under this chapter, that—</text>

												<subparagraph id="ID15194229FC7544F0BA3303046479277F"><enum>(A)</enum><text>is separate and

				distinct from any other population that the entity has applied for a grant

				under this chapter to serve; or</text>

												</subparagraph><subparagraph id="IDF7ED3EFF59494DB994A1B73D7C8454C8"><enum>(B)</enum><text>while sharing

				some of the same needs as another population that the eligible entity has

				applied for a grant under this chapter to serve, has distinct needs for

				specialized

				services.</text>

												</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

									</subparagraph><subparagraph id="ID0CE683328EFB4278B28126BAE603F156"><enum>(C)</enum><text>in paragraph (5)

			 (as redesignated by subparagraph (A))—</text>

										<clause id="ID29965D8DB4B241E28196A596D6E4E3D5"><enum>(i)</enum><text>in

			 subparagraph (A), by striking <quote>or</quote> after the semicolon;</text>

										</clause><clause id="ID917A348344EB4ABD8483638D48AE5828"><enum>(ii)</enum><text>in

			 subparagraph (B), by striking the period at the end and inserting <quote>;

			 or</quote>; and</text>

										</clause><clause id="ID4C588BEE65E348DA9D79DCE8EBAF1023"><enum>(iii)</enum><text>by adding at

			 the end the following:</text>

											<quoted-block id="ID4CE45C46D60D49B295D200C18F7BC860" style="OLC">

												<subparagraph id="ID140760542233417F8BA48AFF26321E8F"><enum>(C)</enum><text>was a member of a

				reserve component of the Armed Forces called to active duty for a period of

				more than 180 days.</text>

												</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

										</clause></subparagraph><subparagraph id="ID25A3765299A74A239A2C85FC0700A99F"><enum>(D)</enum><text>in paragraph (6),

			 by striking <quote>subparagraph (A) or (B) of paragraph (3)</quote> and

			 inserting <quote>subparagraph (A), (B), or (C) of paragraph (5)</quote>.</text>

									</subparagraph></paragraph></subsection><subsection id="IDCCEDBCB0128445AABCAAE49BF6FB6976"><enum>(b)</enum><header>Talent

			 Search</header><text>Section 402B (20 U.S.C. 1070a–12) is amended—</text>

								<paragraph id="ID93EF304BD8DE4F2AB50FACC89112CBC4"><enum>(1)</enum><text>in subsection

			 (a)—</text>

									<subparagraph id="ID36930E495CF24357828A2E2298C1C9DD"><enum>(A)</enum><text>in paragraph (1),

			 by striking <quote>to identify qualified youths with potential for education at

			 the postsecondary level and to encourage such youths</quote> and inserting

			 <quote>to encourage eligible youths</quote>;</text>

									</subparagraph><subparagraph id="ID96C9286BB9D74DC780C85ECDD7BA6E9A"><enum>(B)</enum><text>in paragraph (2),

			 by inserting <quote>, and facilitate the application for,</quote> after

			 <quote>the availability of</quote>; and</text>

									</subparagraph><subparagraph id="ID73802B692D8E49CA8A7AE562B0998903"><enum>(C)</enum><text>in paragraph (3),

			 by striking <quote>, but who have the ability to complete such programs, to

			 reenter</quote> and inserting <quote>to enter or reenter, and

			 complete</quote>;</text>

									</subparagraph></paragraph><paragraph id="ID07EB9C764A2C405E99D22F81AF8C1920"><enum>(2)</enum><text>by redesignating

			 subsection (c) as subsection (d);</text>

								</paragraph><paragraph id="ID1869201C14E24A399AF8F86FB5AB0B72"><enum>(3)</enum><text>by striking

			 subsection (b) and inserting the following:</text>

									<quoted-block id="IDBBDAD51A3C81447F98A364DD55CB35C4" style="OLC">

										<subsection id="IDBECEBF7A08A94397A528FA00E491D496"><enum>(b)</enum><header>Required

				Services</header><text>Any project assisted under this section shall

				provide—</text>

											<paragraph id="IDC08DEEA9A6B940358FC9232C6BA13060"><enum>(1)</enum><text>academic

				tutoring, or connections to high quality academic tutoring services, to enable

				students to complete secondary or postsecondary courses, which may include

				instruction in reading, writing, study skills, mathematics, science, and other

				subjects;</text>

											</paragraph><paragraph id="IDE89D51560F0E40818B849B62385B2684"><enum>(2)</enum><text>advice and

				assistance in secondary course selection and, if applicable, initial

				postsecondary course selection;</text>

											</paragraph><paragraph id="ID9D99CEDDAAAE4E41B393D9039E34A6D8"><enum>(3)</enum><text>assistance in

				preparing for college entrance examinations and completing college admission

				applications;</text>

											</paragraph><paragraph id="IDF59C997AF2124612B9CFE8BAD9431C7D"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDD5544DB58E904B2D834059303AECEB0A"><enum>(A)</enum><text>information on both the

				full range of Federal student financial aid programs (including Federal Pell

				Grant awards and loan forgiveness) and resources for locating public and

				private scholarships; and</text>

												</subparagraph><subparagraph id="ID9679A9CDF74147169D4A99E9EA5D91D0" indent="up1"><enum>(B)</enum><text>assistance in completing financial aid

				applications, including the Free Application for Federal Student Aid described

				in section 483(a);</text>

												</subparagraph></paragraph><paragraph id="ID841036BCC96F4DB3B6E08FA813BBC6FE"><enum>(5)</enum><text>guidance on and

				assistance in—</text>

												<subparagraph id="ID97FBF4241A7E447DB12E19DAD8F999B4"><enum>(A)</enum><text>secondary school

				reentry;</text>

												</subparagraph><subparagraph id="ID5F04593A11D04BEEA99166108BBE4880"><enum>(B)</enum><text>alternative

				education programs for secondary school dropouts that lead to the receipt of a

				regular secondary school diploma;</text>

												</subparagraph><subparagraph id="ID7ECF07F0647B4ECC9672BECF9682A1C7"><enum>(C)</enum><text>entry into

				general educational development (GED) programs; or</text>

												</subparagraph><subparagraph id="IDD214406E85564B2A831C360943FD4DE8"><enum>(D)</enum><text>postsecondary

				education; and</text>

												</subparagraph></paragraph><paragraph id="IDC0E05D9459764C828DBB2A900B8CF0EB"><enum>(6)</enum><text>education or

				counseling services designed to improve the financial literacy and economic

				literacy of students or their parents, including financial planning for

				postsecondary education.</text>

											</paragraph></subsection><subsection id="ID43D5D44A57CC4ECA9C4F8112754840E0"><enum>(c)</enum><header>Permissible

				Services</header><text>Any project assisted under this section may provide

				services such as—</text>

											<paragraph id="ID9DAFBC48BCDA4719A42BB55CDE99BE8F"><enum>(1)</enum><text>personal and

				career counseling or activities;</text>

											</paragraph><paragraph id="ID3CAEA29143384906B5DF05762B3ECCAD"><enum>(2)</enum><text>information and

				activities designed to acquaint youths with the range of career options

				available to the youths;</text>

											</paragraph><paragraph id="IDA4A0AE90D2234A79BC0F2995940F24E6"><enum>(3)</enum><text>exposure to the

				campuses of institutions of higher education, as well as cultural events,

				academic programs, and other sites or activities not usually available to

				disadvantaged youth;</text>

											</paragraph><paragraph id="ID48043FEF16614B44A18FAC8D9DFA4F39"><enum>(4)</enum><text>workshops and

				counseling for families of students served;</text>

											</paragraph><paragraph id="IDD3CB784D8DCF4A1E84BF0CB63684DF8A"><enum>(5)</enum><text>mentoring

				programs involving elementary or secondary school teachers or counselors,

				faculty members at institutions of higher education, students, or any

				combination of such persons; and</text>

											</paragraph><paragraph id="ID98F1CE56E977407FAB79FB7D17741833"><enum>(6)</enum><text>programs and

				activities as described in subsection (b) or paragraphs (1) through (5) of this

				subsection that are specially designed for students who are limited English

				proficient, students with disabilities, students who are homeless children and

				youths (as such term is defined in section 725 of the McKinney-Vento Homeless

				Assistance Act (42 U.S.C. 11434a)), or students who are in foster care or are

				aging out of the foster care system.</text>

											</paragraph></subsection><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</paragraph><paragraph id="ID3648E62B01354A72A5E6BF597B47BFBA"><enum>(4)</enum><text>in the matter

			 preceding paragraph (1) of subsection (d) (as redesignated by paragraph (2)),

			 by striking <quote>talent search projects under this chapter</quote> and

			 inserting <quote>projects under this section</quote>.</text>

								</paragraph></subsection><subsection id="ID250C5532CE8E4EA1AF412F041407BB57"><enum>(c)</enum><header>Upward

			 Bound</header><text>Section 402C (20 U.S.C. 1070a–13) is amended—</text>

								<paragraph id="ID297C964880E548FCA7CD6AB9DBC178FB"><enum>(1)</enum><text>by striking

			 subsection (b) and inserting the following:</text>

									<quoted-block id="ID221DB59A03734F0C802B60CB7E0E788E" style="OLC">

										<subsection id="ID08A931D80279413EB3CA40911D56E9E1"><enum>(b)</enum><header>Required

				Services</header><text>Any project assisted under this section shall

				provide—</text>

											<paragraph id="IDDF54C4D149BB41B88389EC7DCC36ADC3"><enum>(1)</enum><text>academic tutoring

				to enable students to complete secondary or postsecondary courses, which may

				include instruction in reading, writing, study skills, mathematics, science,

				and other subjects;</text>

											</paragraph><paragraph id="ID5151221D74B04AF696FE1E8783D7FCCB"><enum>(2)</enum><text>advice and

				assistance in secondary and postsecondary course selection;</text>

											</paragraph><paragraph id="ID481A29FE24EE45BB87518E7A85F59156"><enum>(3)</enum><text>assistance in

				preparing for college entrance examinations and completing college admission

				applications;</text>

											</paragraph><paragraph id="ID8270829E072345B9AB26F9F09D098103"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDE4BF641A14AD499C8C28CFC0088CCCC2"><enum>(A)</enum><text>information on both the

				full range of Federal student financial aid programs (including Federal Pell

				Grant awards and loan forgiveness) and resources for locating public and

				private scholarships; and</text>

												</subparagraph><subparagraph id="ID21A35F0805E244F68572730F06D45B25" indent="up1"><enum>(B)</enum><text>assistance in completing financial aid

				applications, including the Free Application for Federal Student Aid described

				in section 483(a);</text>

												</subparagraph></paragraph><paragraph id="ID418D45BF6BB44DA48FBDF13CCB621A38"><enum>(5)</enum><text>guidance on and

				assistance in—</text>

												<subparagraph id="ID1129ABE61AFE438C9DF93B7BA33623A0"><enum>(A)</enum><text>secondary school

				reentry;</text>

												</subparagraph><subparagraph id="IDBB574E8EF9BD4DA99555D9509C815C4A"><enum>(B)</enum><text>alternative

				education programs for secondary school dropouts that lead to the receipt of a

				regular secondary school diploma;</text>

												</subparagraph><subparagraph id="IDE49D30655AA44E2D95DCD620FF9567A5"><enum>(C)</enum><text>entry into

				general educational development (GED) programs; or</text>

												</subparagraph><subparagraph id="IDE966DAAEB3794653A706626A45C3A676"><enum>(D)</enum><text>postsecondary

				education; and</text>

												</subparagraph></paragraph><paragraph id="ID3FB821579D90470CA95FB9EB135E291B"><enum>(6)</enum><text>education or

				counseling services designed to improve the financial literacy and economic

				literacy of students, including financial planning for postsecondary

				education.</text>

											</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>

								</paragraph><paragraph id="IDE0C62CD461BC4F6CA7B0866F9123FC82"><enum>(2)</enum><text>in subsection

			 (c)—</text>

									<subparagraph id="IDEBAAAD371A2A48479BFE30EDC7D9AE06"><enum>(A)</enum><text>in the subsection

			 heading, by striking <quote><header-in-text level="subsection">Required

			 Services</header-in-text></quote> and inserting <quote><header-in-text level="subsection">Additional Required Services for Multiple-Year Grant

			 Recipients</header-in-text></quote>; and</text>

									</subparagraph><subparagraph id="ID814DA7FF83A246119A21D416B08FC406"><enum>(B)</enum><text>by striking

			 <quote>upward bound project assisted under this chapter</quote> and inserting

			 <quote>project assisted under this section</quote>;</text>

									</subparagraph></paragraph><paragraph id="ID5B67C3259DEB489AB74AC2A2540AFCE2"><enum>(3)</enum><text>by redesignating

			 subsections (d) and (e) as subsections (e) and (f), respectively;</text>

								</paragraph><paragraph id="ID9119C646E52F4994B649C7D277CC274A"><enum>(4)</enum><text>by inserting

			 after subsection (c) the following:</text>

									<quoted-block id="IDA370F1A6FD1B41EF9F71725AD2EF2B31" style="OLC">

										<subsection id="ID0B236721A9FC493C9DA21F73FF8C819C"><enum>(d)</enum><header>Permissible

				Services</header><text>Any project assisted under this section may provide such

				services as—</text>

											<paragraph id="ID346491F1ECFC4922854EEF85510C5C0E"><enum>(1)</enum><text>exposure to

				cultural events, academic programs, and other activities not usually available

				to disadvantaged youth;</text>

											</paragraph><paragraph id="ID9E72A63355A64AADB62C546D7A8EDFDD"><enum>(2)</enum><text>information,

				activities and instruction designed to acquaint youths participating in the

				project with the range of career options available to the youths;</text>

											</paragraph><paragraph id="IDBEE4F011A24948F0BF03073F44676DB9"><enum>(3)</enum><text>on-campus

				residential programs;</text>

											</paragraph><paragraph id="IDDDD7B7727E1641B196B4EB89F0C15A8D"><enum>(4)</enum><text>mentoring

				programs involving elementary school or secondary school teachers or

				counselors, faculty members at institutions of higher education, students, or

				any combination of such persons;</text>

											</paragraph><paragraph id="IDCD622610473C4F008D2B3F3B846AA6C7"><enum>(5)</enum><text>work-study

				positions where youth participating in the project are exposed to careers

				requiring a postsecondary degree;</text>

											</paragraph><paragraph id="ID5308150BD7584292AE73B35BD99E5FF5"><enum>(6)</enum><text>special services

				to enable veterans to make the transition to postsecondary education;

				and</text>

											</paragraph><paragraph id="ID4BE3EBB280DC47448E64131ABFC815F4"><enum>(7)</enum><text>programs and

				activities as described in subsection (b), subsection (c), or paragraphs (1)

				through (6) of this subsection that are specially designed for students who are

				limited English proficient, students with disabilities, students who are

				homeless children and youths (as such term is defined in section 725 of the

				McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)), or students who are

				in foster care or are aging out of the foster care

				system.</text>

											</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>

								</paragraph><paragraph id="ID4C10EA74F00941D6A14A834AB14740F5"><enum>(5)</enum><text>in the matter

			 preceding paragraph (1) of subsection (e) (as redesignated by paragraph (3)),

			 by striking <quote>upward bound projects under this chapter</quote> and

			 inserting <quote>projects under this section</quote>; and</text>

								</paragraph><paragraph id="IDBD3BC80D11684B44A8815669FD126B4C"><enum>(6)</enum><text>in subsection (f)

			 (as redesignated by paragraph (3))—</text>

									<subparagraph id="ID5ED010DAB8F343CCB2A25D29787B2AE1"><enum>(A)</enum><text>by striking

			 <quote>during June, July, and August</quote> each place the term occurs and

			 inserting <quote>during the summer school recess, for a period not to exceed 3

			 months</quote>; and</text>

									</subparagraph><subparagraph id="IDAC6B0798B60A4FA78876B1D56E5F319E"><enum>(B)</enum><text>by striking

			 <quote>(b)(10)</quote> and inserting <quote>(d)(5)</quote>.</text>

									</subparagraph></paragraph></subsection><subsection id="IDE8B9A80C1ADC49CA963A3454F3742E6E"><enum>(d)</enum><header>Student Support

			 Services</header><text>Section 402D (20 U.S.C. 1070a–14) is amended—</text>

								<paragraph id="ID0B34266769EF4C3995278F20CF277E28"><enum>(1)</enum><text>in subsection

			 (a)—</text>

									<subparagraph id="ID3B5148A804FB418FA1C03CDD19A1B4A7"><enum>(A)</enum><text>in paragraph (2),

			 by striking <quote>and</quote> after the semicolon;</text>

									</subparagraph><subparagraph id="IDFE094E688EB9422FB52D0E9625BF5F15"><enum>(B)</enum><text>by striking

			 paragraph (3) and inserting the following:</text>

										<quoted-block id="ID2562BD76B719422698F551FE5C0632B7" style="OLC">

											<paragraph id="ID933D8440B586450DA4EB618841526BF2"><enum>(3)</enum><text>to foster an

				institutional climate supportive of the success of low-income and first

				generation college students, students with disabilities, students who are

				limited English proficient, students who are homeless children and youths (as

				such term is defined in section 725 of the McKinney-Vento Homeless Assistance

				Act (42 U.S.C. 11434a)), and students who are in foster care or are aging out

				of the foster care system.</text>

											</paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

									</subparagraph><subparagraph id="IDA78268506F7F45E4B31C63A7991358FE"><enum>(C)</enum><text>by adding at the

			 end the following:</text>

										<quoted-block id="ID064989AAF04044E98136A6AFD1926B26" style="OLC">

											<paragraph id="IDFEA6BFD2D8B24F238C2DEAE300CD1633"><enum>(4)</enum><text>to improve the

				financial literacy and economic literacy of students, including—</text>

												<subparagraph id="ID0FF8D01BB75448A1AB72C0E24CB0D2A5"><enum>(A)</enum><text>basic personal

				income, household money management, and financial planning skills; and</text>

												</subparagraph><subparagraph id="ID8A9A5DB6E9274F06873A962918C1FBC5"><enum>(B)</enum><text>basic economic

				decisionmaking

				skills.</text>

												</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

									</subparagraph></paragraph><paragraph id="ID11B49676779948EFA37405F6100BC33A"><enum>(2)</enum><text>by redesignating

			 subsections (c) and (d) as subsections (d) and (e);</text>

								</paragraph><paragraph id="ID5C1755B042074A7DAAF775A8AE5E166C"><enum>(3)</enum><text>by striking

			 subsection (b) and inserting the following:</text>

									<quoted-block id="ID6857DB0E336F4B398EBF7514ADF9D9C1" style="OLC">

										<subsection id="ID676F940C41C5497DBDC8CA99B76C9A82"><enum>(b)</enum><header>Required

				Services</header><text>A project assisted under this section shall

				provide—</text>

											<paragraph id="ID5178C159E56E431482387B57F76F554C"><enum>(1)</enum><text>academic tutoring

				to enable students to complete postsecondary courses, which may include

				instruction in reading, writing, study skills, mathematics, science, and other

				subjects;</text>

											</paragraph><paragraph id="IDE1C4C00C57924AF3BB707187FF80B976"><enum>(2)</enum><text>advice and

				assistance in postsecondary course selection;</text>

											</paragraph><paragraph id="ID75F3C62E2441487AA6B6FB557FD2380D"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID8FDE0694609747F5B3AA69624D3B5348"><enum>(A)</enum><text>information on both the

				full range of Federal student financial aid programs (including Federal Pell

				Grant awards and loan forgiveness) and resources for locating public and

				private scholarships; and</text>

												</subparagraph><subparagraph id="ID279F0570FAAD4271A8EDCA98B7E18C86" indent="up1"><enum>(B)</enum><text>assistance in completing financial aid

				applications, including the Free Application for Federal Student Aid described

				in section 483(a);</text>

												</subparagraph></paragraph><paragraph id="ID90D8E8F44F994044B43A60BB0E0B631D"><enum>(4)</enum><text>education or

				counseling services designed to improve the financial literacy and economic

				literacy of students, including financial planning for postsecondary

				education;</text>

											</paragraph><paragraph id="ID88C29057D628427E9191881B417F9B8D"><enum>(5)</enum><text>activities

				designed to assist students participating in the project in securing college

				admission and financial assistance for enrollment in graduate and professional

				programs; and</text>

											</paragraph><paragraph id="ID40AEBBA4ABF2494F94145661EF4DEFCB"><enum>(6)</enum><text>activities

				designed to assist students enrolled in 2-year institutions of higher education

				in securing admission and financial assistance for enrollment in a 4-year

				program of postsecondary education.</text>

											</paragraph></subsection><subsection id="ID4A86F258693D41ED955B7B62C42D1A7A"><enum>(c)</enum><header>Permissible

				Services</header><text>A project assisted under this section may provide

				services such as—</text>

											<paragraph id="ID8AD4872868D34582995306ED8B289993"><enum>(1)</enum><text>consistent,

				individualized personal, career, and academic counseling, provided by assigned

				counselors;</text>

											</paragraph><paragraph id="ID776BFDB883EA4FB6A95B478D24672477"><enum>(2)</enum><text>information,

				activities, and instruction designed to acquaint youths participating in the

				project with the range of career options available to the students;</text>

											</paragraph><paragraph id="ID10FA353C4F0942A9889FC71DEB6D28D3"><enum>(3)</enum><text>exposure to

				cultural events and academic programs not usually available to disadvantaged

				students;</text>

											</paragraph><paragraph id="IDE0AC6C1AF65B4D729B75D4DFBFDD371C"><enum>(4)</enum><text>activities

				designed to acquaint students participating in the project with the range of

				career options available to the students;</text>

											</paragraph><paragraph id="IDC99E0F169E2A4879A4D7BF5E4D950BD3"><enum>(5)</enum><text>mentoring

				programs involving faculty or upper class students, or a combination

				thereof;</text>

											</paragraph><paragraph id="ID2FBD3E832CF449588255BC20E651A7E2"><enum>(6)</enum><text>securing

				temporary housing during breaks in the academic year for students who are

				homeless children and youths (as such term is defined in section 725 of the

				McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a)) or were formerly

				homeless children and youths and students who are in foster care or are aging

				out of the foster care system; and</text>

											</paragraph><paragraph id="IDB6312EE56AF14EFBBA5803C881BD0269"><enum>(7)</enum><text>programs and

				activities as described in subsection (b) or paragraphs (1) through (5) of this

				subsection that are specially designed for students who are limited English

				proficient, students with disabilities, students who are homeless children and

				youths (as such term is defined in section 725 of the McKinney-Vento Homeless

				Assistance Act (42 U.S.C. 11434a)) or were formerly homeless children and

				youths, or students who are in foster care or are aging out of the foster care

				system.</text>

											</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>

								</paragraph><paragraph id="ID88D47E5FD99246BEB03942A4D189425F"><enum>(4)</enum><text>in subsection

			 (d)(1) (as redesignated by paragraph (2)), by striking <quote>subsection

			 (b)</quote> and inserting <quote>subsection (c)</quote>; and</text>

								</paragraph><paragraph id="ID5C912DFFF1084F0ABA4714AE538F105E"><enum>(5)</enum><text>in the matter

			 preceding paragraph (1) of subsection (e) (as redesignated by paragraph (2)),

			 by striking <quote>student support services projects under this chapter</quote>

			 and inserting <quote>projects under this section</quote>.</text>

								</paragraph></subsection><subsection id="IDF88F468438D849069BD37E88FB1DE8E8"><enum>(e)</enum><header>Postbaccalaureate

			 Achievement Program Authority</header><text>Section 402E (20 U.S.C. 1070a–15)

			 is amended—</text>

								<paragraph id="ID433022DC76C04A18A8BD7BB94A1F8EC8"><enum>(1)</enum><text>in subsection

			 (b)—</text>

									<subparagraph id="IDAD4553DA123B4F6A97B4EDF99EAE7952"><enum>(A)</enum><text>in the subsection

			 heading, by inserting <quote><header-in-text level="subsection">Required</header-in-text></quote> before

			 <quote><header-in-text level="subsection">Services</header-in-text></quote>;</text>

									</subparagraph><subparagraph id="IDAA96CFFC21DE415E936063F291AFC99E"><enum>(B)</enum><text>in the matter

			 preceding paragraph (1), by striking <quote>A postbaccalaureate achievement

			 project assisted under this section may provide services such as—</quote> and

			 inserting <quote>A project assisted under this section shall

			 provide—</quote>;</text>

									</subparagraph><subparagraph id="ID6943348930B74B7DA3B7E9811CE4518C"><enum>(C)</enum><text>in paragraph (5),

			 by inserting <quote>and</quote> after the semicolon;</text>

									</subparagraph><subparagraph id="IDAFAC4EB5BB4743BAA55DB9476EBD3B87"><enum>(D)</enum><text>in paragraph (6),

			 by striking the semicolon and inserting a period; and</text>

									</subparagraph><subparagraph id="IDCCC76C7632E24B958715E7E413E45BB4"><enum>(E)</enum><text>by striking

			 paragraphs (7) and (8);</text>

									</subparagraph></paragraph><paragraph id="IDDCBB5D41960642AFA54316B3D959615C"><enum>(2)</enum><text>by redesignating

			 subsections (c) through (f) as subsections (d) through (g),

			 respectively;</text>

								</paragraph><paragraph id="ID4171F6B52ADE4323A54A534DB564D75A"><enum>(3)</enum><text>by inserting

			 after subsection (b) the following:</text>

									<quoted-block id="ID9DFBA7522FF8423C8A53140C83B174B4" style="OLC">

										<subsection id="IDDEBC96CEECCF43D7ACE3FC05285BF678"><enum>(c)</enum><header>Permissible

				Services</header><text>A project assisted under this section may provide

				services such as—</text>

											<paragraph id="IDC83274F1C21B469CA40A5796E33A8EAF"><enum>(1)</enum><text>education or

				counseling services designed to improve the financial literacy and economic

				literacy of students or their parents, including financial planning for

				postsecondary education;</text>

											</paragraph><paragraph id="ID3CB2177A725F400584BF3A4F6D99BA16"><enum>(2)</enum><text>mentoring

				programs involving faculty members at institutions of higher education,

				students, or any combination of such persons; and</text>

											</paragraph><paragraph id="ID862102D228DB4B5C90F12C560EBABB09"><enum>(3)</enum><text>exposure to

				cultural events and academic programs not usually available to disadvantaged

				students.</text>

											</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>

								</paragraph><paragraph id="ID6FFF02EF64E14CA5B097AAD0895ECB99"><enum>(4)</enum><text>in the matter

			 preceding paragraph (1) of subsection (d) (as redesignated by paragraph (2)),

			 by striking <quote>postbaccalaureate achievement</quote>;</text>

								</paragraph><paragraph id="IDF5FC33509F514E9789992AAFE4BD38F9"><enum>(5)</enum><text>in the matter

			 preceding paragraph (1) of subsection (f) (as redesignated by paragraph (2)),

			 by striking <quote>postbaccalaureate achievement project</quote> and inserting

			 <quote>project under this section</quote>; and</text>

								</paragraph><paragraph id="IDCF584D4320D54D56972367D7D85CAD05"><enum>(6)</enum><text>in subsection (g)

			 (as redesignated by paragraph (2))—</text>

									<subparagraph id="ID546BD469CBFF4EE4A2E4BF488BE586BB"><enum>(A)</enum><text>by striking

			 <quote>402A(f)</quote> and inserting <quote>402A(g)</quote>; and</text>

									</subparagraph><subparagraph id="IDC6E04AB4A2B143E08A75BBB0AF985857"><enum>(B)</enum><text>by striking

			 <quote>1993 through 1997</quote> and inserting <quote>2006 through

			 2010</quote>.</text>

									</subparagraph></paragraph></subsection><subsection id="ID90CA7DEE462C4CB2938D7977480D2730"><enum>(f)</enum><header>Educational

			 Opportunity Centers</header><text>Section 402F (20 U.S.C. 1070a–16) is

			 amended—</text>

								<paragraph id="ID21B72CF113054472823DAFBAE236447B"><enum>(1)</enum><text>in subsection

			 (a)—</text>

									<subparagraph id="ID6D6E2B8E84314F40AF8D90D208B9925E"><enum>(A)</enum><text>in paragraph (1),

			 by striking <quote>and</quote> after the semicolon;</text>

									</subparagraph><subparagraph id="IDE9567B2046D44726A37303E9643CDDFA"><enum>(B)</enum><text>in paragraph (2),

			 by striking the period at the end and inserting <quote>; and</quote>;

			 and</text>

									</subparagraph><subparagraph id="IDA1E8150C8F654F278CDFF333BAC08D42"><enum>(C)</enum><text>by adding at the

			 end the following:</text>

										<quoted-block id="IDF30A7947343B4DA789679637FF80404A" style="OLC">

											<paragraph id="IDF616E309AD90493188D7684BF9F82268"><enum>(3)</enum><text>to improve the

				financial literacy and economic literacy of students, including—</text>

												<subparagraph id="ID5414F27470ED45879716ABA3A3CB1EAC"><enum>(A)</enum><text>basic personal

				income, household money management, and financial planning skills; and</text>

												</subparagraph><subparagraph id="IDCFF04E836C484F47B360DE3CFE310483"><enum>(B)</enum><text>basic economic

				decisionmaking skills.</text>

												</subparagraph></paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

									</subparagraph></paragraph><paragraph id="ID52842E3651F0444595259AA009F420E5"><enum>(2)</enum><text>in subsection

			 (b)—</text>

									<subparagraph id="ID77477910C66E46949282DF27743D1B43"><enum>(A)</enum><text>by redesignating

			 paragraphs (5) through (10) as paragraphs (6) through (11),

			 respectively;</text>

									</subparagraph><subparagraph id="ID9B255251B4D9487FB65EBB0FBB249686"><enum>(B)</enum><text>by inserting

			 after paragraph (4) the following:</text>

										<quoted-block id="ID6659586AD3C84F409D42EB9DE1572705" style="OLC">

											<paragraph id="IDFAE18CB704AC4E2D8436494D5CFE48E8"><enum>(5)</enum><text>education or

				counseling services designed to improve the financial literacy and economic

				literacy of

				students;</text>

											</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

									</subparagraph><subparagraph id="IDBB895F25DF0E48298C547ECAC4F9D739"><enum>(C)</enum><text>by striking

			 paragraph (7) (as redesignated by subparagraph (A)) and inserting the

			 following:</text>

										<quoted-block id="ID2E9D58B662884167B6AB5F7F2DF7819C" style="OLC">

											<paragraph id="ID22D51BD9096E48D8A7B9019098976D30"><enum>(7)</enum><text>individualized

				personal, career, and academic

				counseling;</text>

											</paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

									</subparagraph><subparagraph id="IDC2C5A49A0E9F4B5BBB886760F7A24B65"><enum>(D)</enum><text>by striking

			 paragraph (11) (as redesignated by subparagraph (A)) and inserting the

			 following:</text>

										<quoted-block id="ID3A2EE0F4B50C4FCD91BA25020D6F739B" style="OLC">

											<paragraph id="IDC4F15FFF2B5D47A3876BF7AB92A62B3C"><enum>(11)</enum><text>programs and

				activities as described in paragraphs (1) through (10) that are specially

				designed for students who are limited English proficient, students with

				disabilities, or students who are homeless children and youths (as such term is

				defined in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C.

				11434a)), or programs and activities for students who are in foster care or are

				aging out of the foster care

				system.</text>

											</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

									</subparagraph></paragraph></subsection><subsection id="ID4507D965DA1145F2BA1B088466F16110"><enum>(g)</enum><header>Staff

			 Development Activities</header><text>Section 402G(b)(3) (20 U.S.C.

			 1070a–17(b)(3)) is amended by inserting <quote>, including strategies for

			 recruiting and serving students who are homeless children and youths (as such

			 term is defined in section 725 of the McKinney-Vento Homeless Assistance Act

			 (42 U.S.C. 11434a)) and students who are in foster care or are aging out of the

			 foster care system</quote> before the period at the end.</text>

							</subsection><subsection id="ID3298334F7F7C443BBF4A29C729510840"><enum>(h)</enum><header>Reports,

			 Evaluations, and Grants for Project Improvement and

			 Dissemination</header><text>Section 402H (20 U.S.C. 1070a–18) is

			 amended—</text>

								<paragraph id="IDF6213D80E928421E8A43C6173ECABF0F"><enum>(1)</enum><text>by striking the

			 section heading and inserting <quote><header-in-text>reports, evaluations, and

			 grants for project improvement and

			 dissemination</header-in-text>.</quote>;</text>

								</paragraph><paragraph id="ID37728A6060FE4F5DA7FE90B2317E73A1"><enum>(2)</enum><text>by redesignating

			 subsections (a) through (c) as subsections (b) through (d), respectively;

			 and</text>

								</paragraph><paragraph id="IDED870D56700148598288CA41F0513A64"><enum>(3)</enum><text>by inserting

			 before subsection (b) (as redesignated by paragraph (2)) the following:</text>

									<quoted-block id="ID08F03857139F4C9D80258D1C638ED492" style="OLC">

										<subsection id="ID4038DD5C97DA4D94B248D4B1213D94DC"><enum>(a)</enum><header>Report to

				Congress</header><text>At least once every 2-year period, the Secretary shall

				prepare and submit to Congress a report on the outcomes achieved by the

				programs authorized under this chapter. Such report shall include a statement

				for the preceding fiscal year specifying—</text>

											<paragraph id="ID5B8688BD1AA44BBA92D651CE0C129FA4"><enum>(1)</enum><text>the number of

				grants awarded during each fiscal year, and the number of individuals served by

				the programs carried out under such grants;</text>

											</paragraph><paragraph id="IDF6181D92F0CC4486AABB071342DCCD70"><enum>(2)</enum><text>the number of

				entities that received grants during the fiscal year, including the number of

				entities that—</text>

												<subparagraph id="ID66C7C6C4042D4BDD8EF5B85175E3024C"><enum>(A)</enum><text>received a grant

				to carry out a program under this chapter for the fiscal year; and</text>

												</subparagraph><subparagraph id="ID10CE6B8E9EA44E9F91841475F22EF3FF"><enum>(B)</enum><text>had not received

				funding for that particular program during the previous grant cycle;</text>

												</subparagraph></paragraph><paragraph id="ID1AD93C9E12DA4420A69B061B9273F737"><enum>(3)</enum><text>a comparison of

				the number and percentage of grant awards made to entities described in

				paragraph (2), with the number of such entities funded through discretionary

				grant competitions conducted by the Secretary under this chapter in the 3 grant

				cycles preceding the fiscal year;</text>

											</paragraph><paragraph id="ID4E79A5B0DCC44DB0AD25712689CE26F1"><enum>(4)</enum><text>information on

				the number of individuals served in each program authorized under this chapter;

				and</text>

											</paragraph><paragraph id="ID735EE73B58A846E4A8764C68FAFF7C09"><enum>(5)</enum><text>information on

				the outcomes achieved by each program authorized under this chapter, including

				the outcome criteria described in section 402A(f) for each

				program.</text>

											</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

								</paragraph></subsection></section><section id="IDEECB6B86849D4212BA4013279CC6A084"><enum>7363.</enum><header>Gaining Early

			 Awareness and Readiness for Undergraduate Programs</header>

							<subsection id="ID04B0A797FEE44D46BFDE5D16D5FB673B"><enum>(a)</enum><header>Early

			 Intervention and College Awareness Program Authorized</header><text>Section

			 404A (20 U.S.C. 1070a–21) is amended—</text>

								<paragraph id="ID6D8E8D0539964F90BD560FA2C4843B12"><enum>(1)</enum><text>by striking

			 subsection (a) and inserting the following:</text>

									<quoted-block id="IDF4CFDAB374F541AAA8E70E27E2FE0AF5" style="OLC">

										<subsection id="ID6134597C35084D21940482B1F99ACE47"><enum>(a)</enum><header>Program

				Authorized</header><text>The Secretary is authorized, in accordance with the

				requirements of this chapter, to establish a program that encourages eligible

				entities to provide support to eligible low-income students to assist the

				students in obtaining a secondary school diploma (or its recognized equivalent)

				and to prepare for and succeed in postsecondary education, by providing—</text>

											<paragraph id="IDAF6BBF914FA04AF58966F3C43833BEF2"><enum>(1)</enum><text>financial

				assistance, academic support, additional counseling, mentoring, outreach, and

				supportive services to middle school and secondary school students to

				reduce—</text>

												<subparagraph id="IDC6827852761B46948F431F897983691B"><enum>(A)</enum><text>the risk of such

				students dropping out of school; or</text>

												</subparagraph><subparagraph id="ID040C5C619BEE40AA9B60BFAD440F50FE"><enum>(B)</enum><text>the need for

				remedial education for such students at the postsecondary level; and</text>

												</subparagraph></paragraph><paragraph id="ID398D4EDA5D8B4824AEEE31D3DEB864AB"><enum>(2)</enum><text>information to

				students and their parents about the advantages of obtaining a postsecondary

				education and the college financing options for the students and their

				parents.</text>

											</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>

								</paragraph><paragraph id="IDE6D67CD02E924169A4F8F69F3D4EFF88"><enum>(2)</enum><text>by striking

			 subsection (b)(2)(A) and inserting the following:</text>

									<quoted-block id="IDF4AB4A9DCAD24FF687998802AADC5F55" style="OLC">

										<subparagraph id="ID54B20BEC397F42A99210C92F4F3E4EC1"><enum>(A)</enum><text>give priority to

				eligible entities that have a prior, demonstrated commitment to early

				intervention leading to college access through collaboration and replication of

				successful strategies;</text>

										</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</paragraph><paragraph id="ID2796B5C1B77141539D808090E2733F7D"><enum>(3)</enum><text>by striking

			 subsection (c)(2) and inserting the following:</text>

									<quoted-block id="IDB855B003268249898DDD6007B47CE865" style="OLC">

										<paragraph id="IDD844ADF493CB469596EA95CDE3027B29"><enum>(2)</enum><text>a

				partnership—</text>

											<subparagraph id="ID106EDBAB0AB6454A8BE1E1E80450E958"><enum>(A)</enum><text>consisting

				of—</text>

												<clause id="ID5D659D6544F1434A96A55D6FBC6F0744"><enum>(i)</enum><text>1

				or more local educational agencies; and</text>

												</clause><clause id="IDA1C3FDFEEB014ED989E4874D359109A4"><enum>(ii)</enum><text>1 or more degree

				granting institutions of higher education; and</text>

												</clause></subparagraph><subparagraph id="IDE8445478122248B78ECC0BCF7098DC29"><enum>(B)</enum><text>which may include

				not less than 2 other community organizations or entities, such as businesses,

				professional organizations, State agencies, institutions or agencies sponsoring

				programs authorized under subpart 4, or other public or private agencies or

				organizations.</text>

											</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

								</paragraph></subsection><subsection id="ID9080B28FEA254289A74312205D3ED842"><enum>(b)</enum><header>Requirements</header><text>Section

			 404B (20 U.S.C. 1070a–22) is amended—</text>

								<paragraph id="IDB7F4532678BA4ECA8ED4DCDD0D25DF00"><enum>(1)</enum><text>by striking

			 subsection (a) and inserting the following:—</text>

									<quoted-block id="ID76FF2F46E19645218183C8A09BD90B04" style="OLC">

										<subsection id="IDB656E21AE4D144C1935FF6BF53860AB6"><enum>(a)</enum><header>Funding

				Rules</header>

											<paragraph id="IDC2DAFC319C38417796952684BEE7D23F"><enum>(1)</enum><header>Distribution</header><text>In

				awarding grants from the amount appropriated under section 404G for a fiscal

				year, the Secretary shall take into consideration—</text>

												<subparagraph id="ID0E6EFF0A639B40A98061F76A551F9F77"><enum>(A)</enum><text>the geographic

				distribution of such awards; and</text>

												</subparagraph><subparagraph id="ID5FA659E198444A1F915A4617EB6BD64C"><enum>(B)</enum><text>the distribution

				of such awards between urban and rural applicants.</text>

												</subparagraph></paragraph><paragraph id="ID52CB6C5E1FF74BFEB68397EF0EC0B533"><enum>(2)</enum><header>Special

				rule</header><text>The Secretary shall annually reevaluate the distribution of

				funds described in paragraph (1) based on number, quality, and promise of the

				applications.</text>

											</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>

								</paragraph><paragraph id="ID9D2E345659BD4539AA41A6F40ADB62C7"><enum>(2)</enum><text>by striking

			 subsections (b), (e), and (f);</text>

								</paragraph><paragraph id="ID9CD604691E9147C7AA26D6344AE5B534"><enum>(3)</enum><text>by redesignating

			 subsections (c), (d), and (g) as subsections (b), (c), and (d), respectively;

			 and</text>

								</paragraph><paragraph id="ID7E9013EC12E74DDD8262F9F0768E49E7"><enum>(4)</enum><text>by adding at the

			 end the following:</text>

									<quoted-block id="IDFC3495ED72F44929A630F4EBE6AD2A1E" style="OLC">

										<subsection id="ID4A486AFD3DE940099C1D8C5D69C27246"><enum>(e)</enum><header>Supplement, Not

				Supplant</header><text>Grant funds awarded under this chapter shall be used to

				supplement, and not supplant, other Federal, State, and local funds that would

				otherwise be expended to carry out activities assisted under this

				chapter.</text>

										</subsection><after-quoted-block>.</after-quoted-block></quoted-block>

								</paragraph></subsection><subsection id="ID0E327E17751D48E6B8F687FDC1DB0E27"><enum>(c)</enum><header>Application</header><text>Section

			 404C (20 U.S.C. 1070a–23) is amended—</text>

								<paragraph id="IDAF81085C7ACB4DB086427AC650820DEE"><enum>(1)</enum><text>in the section

			 heading, by striking <quote><header-in-text>eligible entity

			 plans</header-in-text></quote> and inserting

			 <quote><header-in-text>applications</header-in-text></quote>;</text>

								</paragraph><paragraph id="IDD08D36D69C4746A8B5EE5A0EFDE5D4D8"><enum>(2)</enum><text>in subsection

			 (a)—</text>

									<subparagraph id="IDF5D6779823C64BD599B94B0F2B49C1C0"><enum>(A)</enum><text>in the subsection

			 heading, by striking <quote><header-in-text level="subsection">Plan</header-in-text></quote> and inserting

			 <quote><header-in-text level="subsection">Application</header-in-text></quote>;</text>

									</subparagraph><subparagraph id="ID03AC8FA1E1954586BF00329550F58D8B"><enum>(B)</enum><text>in paragraph

			 (1)—</text>

										<clause id="IDF41ED1A065A34DB7BA75A0CDFFCE3C26"><enum>(i)</enum><text>by

			 striking <quote>a plan</quote> and inserting <quote>an application</quote>;

			 and</text>

										</clause><clause id="ID0B7C3E2238A94D28B84EFA03F1F7DCA2"><enum>(ii)</enum><text>by

			 striking the second sentence; and</text>

										</clause></subparagraph><subparagraph id="ID8BD782AEF2A74FD59D21B7CF46C6C438"><enum>(C)</enum><text>by striking

			 paragraph (2) and inserting the following:</text>

										<quoted-block id="ID4682C4E43DA2439F8434FAFD25EFC125" style="OLC">

											<paragraph id="ID98A64D9F3ADB409A9834643E6FEB5048"><enum>(2)</enum><header>Contents</header><text>Each

				application submitted pursuant to paragraph (1) shall be in such form, contain

				or be accompanied by such information or assurances, and be submitted at such

				time as the Secretary may require. Each such application shall, at a

				minimum—</text>

												<subparagraph id="IDE7AE09410C1343CCA6BEE02538F0F9A5"><enum>(A)</enum><text>describe the

				activities for which assistance under this chapter is sought, including how the

				eligible entity will carry out the required activities described in section

				404D(a);</text>

												</subparagraph><subparagraph id="ID133BED8BB1114AA29DB7319D104ADE15"><enum>(B)</enum><text>describe how the

				eligible agency will meet the requirements of section 404E;</text>

												</subparagraph><subparagraph id="ID378BD615AAAA46B6B8B7A5D37FB405D0"><enum>(C)</enum><text>provide

				assurances that adequate administrative and support staff will be responsible

				for coordinating the activities described in section 404D;</text>

												</subparagraph><subparagraph id="IDE541F5DECD234204A591E616E34B6891"><enum>(D)</enum><text>ensure that

				activities assisted under this chapter will not displace an employee or

				eliminate a position at a school assisted under this chapter, including a

				partial displacement such as a reduction in hours, wages or employment

				benefits;</text>

												</subparagraph><subparagraph id="IDF008C081BF7D448C8C5184CE987C6A52"><enum>(E)</enum><text>describe, in the

				case of an eligible entity described in section 404A(c)(2), how the eligible

				entity will define the cohorts of the students served by the eligible entity

				pursuant to section 404B(d), and how the eligible entity will serve the cohort

				through grade 12, including—</text>

													<clause id="ID8FF49827AB684033AAEF1B2D77B373D6"><enum>(i)</enum><text>how vacancies in

				the program under this chapter will be filled; and</text>

													</clause><clause id="ID6CE716DA354E4AC9A2C3E6B4AEC16459"><enum>(ii)</enum><text>how the eligible

				entity will serve students attending different secondary schools;</text>

													</clause></subparagraph><subparagraph id="IDB4AD58F96A484DE5AABEDF0532DD20B1"><enum>(F)</enum><text>describe how the

				eligible entity will coordinate programs with other existing Federal, State, or

				local programs to avoid duplication and maximize the number of students

				served;</text>

												</subparagraph><subparagraph id="ID42B74037274C480380120E19A801487E"><enum>(G)</enum><text>provide such

				additional assurances as the Secretary determines necessary to ensure

				compliance with the requirements of this chapter; and</text>

												</subparagraph><subparagraph id="ID14B579BC0FF94CDAA1F35F02CB7A8E19"><enum>(H)</enum><text>provide

				information about the activities that will be carried out by the eligible

				entity to support systemic changes from which future cohorts of students will

				benefit.</text>

												</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

									</subparagraph></paragraph><paragraph id="ID36F57A3763444C2895AD76253A570512"><enum>(3)</enum><text>in the matter

			 preceding subparagraph (A) of subsection (b)(1)—</text>

									<subparagraph id="IDF66DF71E1C7A4C3C9E89CA46D930745A"><enum>(A)</enum><text>by striking

			 <quote>a plan</quote> and inserting <quote>an application</quote>; and</text>

									</subparagraph><subparagraph id="IDF71AAC22C99045BB9BBCC5B31EF2783A"><enum>(B)</enum><text>by striking

			 <quote>such plan</quote> and inserting <quote>such application</quote>;

			 and</text>

									</subparagraph></paragraph><paragraph id="IDBAB9ED3D70CE4029940F423739F628E0"><enum>(4)</enum><text>in subsection

			 (c)(1), by striking the semicolon at the end and inserting “including—</text>

									<quoted-block id="ID90A9E913B6AD49B8B25F7F2AEC7DF467" style="OLC">

										<subparagraph id="IDBCED302721DE4139BBFABEA0F5B51CD8"><enum>(A)</enum><text>the amount

				contributed to a student scholarship fund established under section 404E;

				and</text>

										</subparagraph><subparagraph id="ID5D5F879D67534845BE0955D5DC439C01"><enum>(B)</enum><text>the amount of the

				costs of administering the scholarship program under section

				404E;</text>

										</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

								</paragraph></subsection><subsection id="ID29232E3A37BF451E84E59108CA4AB23F"><enum>(d)</enum><header>Activities</header><text>Section

			 404D (20 U.S.C. 1070a–24) is amended to read as follows:</text>

								<quoted-block id="ID5FCF7C7F03994AE9AE58A0F6085626DC" style="OLC">

									<section id="IDA5F953A2CEA8450DB4EB42ACBD2C482D"><enum>404D.</enum><header>Activities</header>

										<subsection id="ID1ADAD5EEF41A4B6680A366C16B12341D"><enum>(a)</enum><header>Required

				Activities</header><text>Each eligible entity receiving a grant under this

				chapter shall carry out the following:</text>

											<paragraph id="IDB2CB0887AF884E088E17AC9DAC9820F0"><enum>(1)</enum><text>Provide

				information regarding financial aid for postsecondary education to

				participating students in the cohort described in subsection

				404B(d)(1)(A).</text>

											</paragraph><paragraph id="IDE1137D06F95140F8868E9A48462EB1B4"><enum>(2)</enum><text>Encourage student

				enrollment in rigorous and challenging curricula and coursework, in order to

				reduce the need for remedial coursework at the postsecondary level.</text>

											</paragraph><paragraph id="IDDE95EFB46E9B4672823EB10B26E3EF31"><enum>(3)</enum><text>Support

				activities designed to improve the number of participating students who—</text>

												<subparagraph id="ID018D2FBC4BFB48EC9904EAB31E3E6F31"><enum>(A)</enum><text>obtain a

				secondary school diploma; and</text>

												</subparagraph><subparagraph id="ID97DDAE69F29E48B2B1AA4CADD9C71D10"><enum>(B)</enum><text>complete

				applications for and enroll in a program of postsecondary education.</text>

												</subparagraph></paragraph><paragraph id="ID0463A60EFB034C978691D2940643E8C2"><enum>(4)</enum><text>In the case of an

				eligible entity described in section 404A(c)(1), provide for the scholarships

				described in section 404E.</text>

											</paragraph></subsection><subsection id="ID1324E855DC4C484290937DD892578D0B"><enum>(b)</enum><header>Optional

				Activities for States and Partnerships</header><text>An eligible entity that

				receives a grant under this chapter may use grant funds to carry out 1 or more

				of the following activities:</text>

											<paragraph id="ID4AF440AFE8D140D1BDC780E643B6E5B2"><enum>(1)</enum><text>Providing

				tutoring and supporting mentors, including adults or former participants of a

				program under this chapter, for eligible students.</text>

											</paragraph><paragraph id="ID4D32A07E148747F6AA840768F0495E6E"><enum>(2)</enum><text>Conducting

				outreach activities to recruit priority students described in subsection (d) to

				participate in program activities.</text>

											</paragraph><paragraph id="ID898C6A01A0914F57A31A89465CD1AB45"><enum>(3)</enum><text>Providing

				supportive services to eligible students.</text>

											</paragraph><paragraph id="ID27F76622FDEE4688A24666FB18CD2822"><enum>(4)</enum><text>Supporting the

				development or implementation of rigorous academic curricula, which may include

				college preparatory, Advanced Placement, or International Baccalaureate

				programs, and providing participating students access to rigorous core courses

				that reflect challenging State academic standards.</text>

											</paragraph><paragraph id="IDF8F6C928AA7F48F9B1C1175F4F786DE1"><enum>(5)</enum><text>Supporting dual

				or concurrent enrollment programs between the secondary school and institution

				of higher education partners of an eligible entity described in section

				404A(c)(2), and other activities that support participating students in—</text>

												<subparagraph id="ID05C144045AF4453BB180FE491A04BC92"><enum>(A)</enum><text>meeting

				challenging academic standards;</text>

												</subparagraph><subparagraph id="IDCFCF95ACCC484B2B9A217F3DAEC6EFF2"><enum>(B)</enum><text>successfully

				applying for postsecondary education;</text>

												</subparagraph><subparagraph id="ID746464CB335A48E18B937F80D946C85E"><enum>(C)</enum><text>successfully

				applying for student financial aid; and</text>

												</subparagraph><subparagraph id="ID874F5DA7643D47D1B8DA907178DD5825"><enum>(D)</enum><text>developing

				graduation and career plans.</text>

												</subparagraph></paragraph><paragraph id="ID8DE93A4B492C4D60834A90CC8BCEE1C6"><enum>(6)</enum><text>Providing support

				for scholarships described in section 404E.</text>

											</paragraph><paragraph id="IDAFE3162C09A14BE38D5F62400162B8CF"><enum>(7)</enum><text>Introducing

				eligible students to institutions of higher education, through trips and

				school-based sessions.</text>

											</paragraph><paragraph id="ID5E412DD418C44B79B59D987B51648375"><enum>(8)</enum><text>Providing an

				intensive extended school day, school year, or summer program that

				offers—</text>

												<subparagraph id="ID91B5F93E306D4E68B9B9A1A3B447F6B0"><enum>(A)</enum><text>additional

				academic classes; or</text>

												</subparagraph><subparagraph id="IDE8342592A2FA4526AA18AB61615FB536"><enum>(B)</enum><text>assistance with

				college admission applications.</text>

												</subparagraph></paragraph><paragraph id="ID183B390B8DD24D618E56F3EF9B81F968"><enum>(9)</enum><text>Providing other

				activities designed to ensure secondary school completion and postsecondary

				education enrollment of at-risk children, such as—</text>

												<subparagraph id="IDE9ABB1B49EA144D296337E193DC4AE03"><enum>(A)</enum><text>the

				identification of at-risk children;</text>

												</subparagraph><subparagraph id="ID49549AE2D76E4CFF831E9A4C8EA40B7B"><enum>(B)</enum><text>after-school and

				summer tutoring;</text>

												</subparagraph><subparagraph id="ID8F0DB57D78884DCDB6C48AE4FF1C5F4B"><enum>(C)</enum><text>assistance to

				at-risk children in obtaining summer jobs;</text>

												</subparagraph><subparagraph id="IDF3B1B4C7BA534FC688E88CCCFAE0ACBE"><enum>(D)</enum><text>academic

				counseling;</text>

												</subparagraph><subparagraph id="IDC9D2C4B26C934A06A4397B787D8A7829"><enum>(E)</enum><text>volunteer and

				parent involvement;</text>

												</subparagraph><subparagraph id="IDDF71D00BF1A64E7C9FDEBCEF868931FF"><enum>(F)</enum><text>encouraging

				former or current participants of a program under this chapter to serve as peer

				counselors;</text>

												</subparagraph><subparagraph id="IDD772A06E52B1490DA1CA88519823AC7B"><enum>(G)</enum><text>skills

				assessments;</text>

												</subparagraph><subparagraph id="IDE85B9A9BA8CA40E0B618FB3ED05607E8"><enum>(H)</enum><text>personal

				counseling;</text>

												</subparagraph><subparagraph id="ID847C53FE85C94A3C887AA042715868CE"><enum>(I)</enum><text>family counseling

				and home visits;</text>

												</subparagraph><subparagraph id="IDCBA71375C4554AB6A8F9EFF344B9203E"><enum>(J)</enum><text>staff

				development; and</text>

												</subparagraph><subparagraph id="ID16A3DE5C82E54F8783F79B4607D69268"><enum>(K)</enum><text>programs and

				activities described in this subsection that are specially designed for

				students who are limited English proficient.</text>

												</subparagraph></paragraph><paragraph id="ID631FE63EE5694B148E7F11CFA2500628"><enum>(10)</enum><text>Enabling

				eligible students to enroll in Advanced Placement or International

				Baccalaureate courses, or college entrance examination preparation

				courses.</text>

											</paragraph><paragraph id="ID57415887038B43229D0BDE9B63C2C672"><enum>(11)</enum><text>Providing

				services to eligible students in the participating cohort described in section

				404B(d)(1)(A), through the first year of attendance at an institution of higher

				education.</text>

											</paragraph></subsection><subsection id="ID6C29E0F2047B43BD8152248A49DE5A08"><enum>(c)</enum><header>Additional

				Optional Activities for States</header><text>In addition to the required

				activities described in subsection (a) and the optional activities described in

				subsection (b), an eligible entity described in section 404A(c)(1) receiving

				funds under this chapter may use grant funds to carry out 1 or more of the

				following activities:</text>

											<paragraph id="ID5BF251EA90434F598AB561F0E9DE9640"><enum>(1)</enum><text>Providing

				technical assistance to—</text>

												<subparagraph id="IDD3AE4441A1364B35B9FC7C592B2EE540"><enum>(A)</enum><text>middle schools or

				secondary schools that are located within the State; or</text>

												</subparagraph><subparagraph id="IDEAB2DE280DB9484BB41F15EF816DCE60"><enum>(B)</enum><text>partnerships

				described in section 404A(c)(2) that are located within the State.</text>

												</subparagraph></paragraph><paragraph id="ID26CFB84857904D5D88EFA10B35AE438C"><enum>(2)</enum><text>Providing

				professional development opportunities to individuals working with eligible

				cohorts of students described in section 404B(d)(1)(A).</text>

											</paragraph><paragraph id="IDBC21A98DDB7D4F33A19843D5B9FB7F52"><enum>(3)</enum><text>Providing

				strategies and activities that align efforts in the State to prepare eligible

				students for attending and succeeding in postsecondary education, which may

				include the development of graduation and career plans.</text>

											</paragraph><paragraph id="ID700B962819F24B9586E4E4B0A383A4BB"><enum>(4)</enum><text>Disseminating

				information on the use of scientifically based research and best practices to

				improve services for eligible students.</text>

											</paragraph><paragraph id="IDAD4AB8AC94E4448989396863C435A176"><enum>(5)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID6962A9EC894E498C8D12E9E4CB30293F"><enum>(A)</enum><text>Disseminating

				information on effective coursework and support services that assist students

				in obtaining the goals described in subparagraph (B)(ii).</text>

												</subparagraph><subparagraph id="ID5CFBCF6122F34044818F127559F8AE33" indent="up1"><enum>(B)</enum><text>Identifying and disseminating

				information on best practices with respect to—</text>

													<clause id="ID29EED64B8FD847C7BAC63DA4EB94B336"><enum>(i)</enum><text>increasing parental involvement;

				and</text>

													</clause><clause id="IDACD953F80F2A43B5A47C3BD52B6F1BCB"><enum>(ii)</enum><text>preparing students, including

				students with disabilities and students who are limited English proficient, to

				succeed academically in, and prepare financially for, postsecondary

				education.</text>

													</clause></subparagraph></paragraph><paragraph id="ID4D8DB2C5A3C846C9899ADC3FA85376F0"><enum>(6)</enum><text>Working to align

				State academic standards and curricula with the expectations of postsecondary

				institutions and employers.</text>

											</paragraph><paragraph id="ID582017FCF23545DB84E1EADA5B247F5B"><enum>(7)</enum><text>Developing

				alternatives to traditional secondary school that give students a head start on

				attaining a recognized postsecondary credential (including an industry

				certificate, an apprenticeship, or an associate’s or a bachelor’s degree),

				including school designs that give students early exposure to college-level

				courses and experiences and allow students to earn transferable college credits

				or an associate’s degree at the same time as a secondary school diploma.</text>

											</paragraph><paragraph id="IDE9C91DA4B7C145EC96E1C20440EF08EE"><enum>(8)</enum><text>Creating

				community college programs for drop-outs that are personalized drop-out

				recovery programs that allow drop-outs to complete a regular secondary school

				diploma and begin college-level work.</text>

											</paragraph></subsection><subsection id="ID4801EBD26A784188A4954C6AFECA44C3"><enum>(d)</enum><header>Priority

				Students</header><text>For eligible entities not using a cohort approach, the

				eligible entity shall treat as priority students any student in middle or

				secondary school who is eligible—</text>

											<paragraph id="ID8D2EFE121CD148DBB14444B5B3D35673"><enum>(1)</enum><text>to be counted

				under section 1124(c) of the <act-name parsable-cite="ESEA">Elementary and

				Secondary Education Act of 1965</act-name>;</text>

											</paragraph><paragraph id="IDC255D22D366E4A298EEA18888E2707F8"><enum>(2)</enum><text>for free or

				reduced price meals under the Richard B. Russell <act-name parsable-cite="NSLA">National School Lunch Act</act-name>;</text>

											</paragraph><paragraph id="ID6EE547791A334E04B1D4AC82820FFBDE"><enum>(3)</enum><text>for assistance

				under a State program funded under part A or E of title IV of the

				<act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C. 601 et

				seq., 670 et seq.); or</text>

											</paragraph><paragraph id="IDB6C63702DE0F4D0894304403225897A5"><enum>(4)</enum><text>for assistance

				under subtitle B of title VII of the McKinney-Vento Homeless Assistance Act (42

				U.S.C. 11431 et seq.).</text>

											</paragraph></subsection><subsection id="IDB462A3C5CBBB4AF385D6CDE7A3158561"><enum>(e)</enum><header>Allowable

				Providers</header><text>In the case of eligible entities described in section

				404A(c)(1), the activities required by this section may be provided by service

				providers such as community-based organizations, schools, institutions of

				higher education, public and private agencies, nonprofit and philanthropic

				organizations, businesses, institutions and agencies sponsoring programs

				authorized under subpart 4, and other organizations the State determines

				appropriate.</text>

										</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

							</subsection><subsection id="IDD1A72D3AA4A54AB9B7A1D597F8218E45"><enum>(e)</enum><header>Scholarship

			 Component</header><text>Section 404E (20 U.S.C. 1070a–25) is amended—</text>

								<paragraph id="ID25257FE94BC149E89205316A564C87E8"><enum>(1)</enum><text>by striking

			 subsections (e) and (f);</text>

								</paragraph><paragraph id="ID4AD4672BD706441584B2621BEE5A21F3"><enum>(2)</enum><text>by redesignating

			 subsections (b), (c), and (d) as subsections (d), (f), and (g),

			 respectively;</text>

								</paragraph><paragraph id="IDF1CC24FBD20F4678AD54DECD1365AC75"><enum>(3)</enum><text>by inserting

			 after subsection (a) the following:</text>

									<quoted-block id="ID9417082567EA4BD7AA97FCCF9D46C311" style="OLC">

										<subsection id="IDB155EE02564342039E56ADC0093ED95B"><enum>(b)</enum><header>Limitation</header>

											<paragraph id="IDF6BCADF9140142DD81FE3118F35C7EB2"><enum>(1)</enum><header>In

				general</header><text>Subject to paragraph (2), each eligible entity described

				in section 404A(c)(1) that receives a grant under this chapter shall use not

				less than 25 percent and not more than 50 percent of the grant funds for

				activities described in section 404D(c), with the remainder of such funds to be

				used for a scholarship program under this section.</text>

											</paragraph><paragraph id="ID325D40C52BCD40E48F3F9506EFE8498C"><enum>(2)</enum><header>Exception</header><text>Notwithstanding

				paragraph (1), the Secretary may allow an eligible entity to use more than 50

				percent of grant funds received under this chapter for such activities, if the

				eligible entity demonstrates that the eligible entity has another means of

				providing the students with the financial assistance described in this section

				and describes such means in the application submitted under section

				404C.</text>

											</paragraph></subsection><subsection id="IDD315A376452047CB91FCE92A874C7700"><enum>(c)</enum><header>Notification of

				Eligibility</header><text>Each eligible entity providing scholarships under

				this section shall provide information on the eligibility requirements for the

				scholarships to all participating students upon the students’ entry into the

				programs assisted under this

				chapter.</text>

										</subsection><after-quoted-block>;</after-quoted-block></quoted-block>

								</paragraph><paragraph id="ID881A5A2E41A34C929D271A3BB7770E59"><enum>(4)</enum><text>in subsection (d)

			 (as redesignated by paragraph (2)), by striking <quote>the lesser of</quote>

			 and all that follows through the period at the end of paragraph (2) and

			 inserting <quote>the minimum Federal Pell Grant award under section 401 for

			 such award year.</quote>;</text>

								</paragraph><paragraph id="ID009308078B124B85B43875FC338B22D8"><enum>(5)</enum><text>by inserting

			 after subsection (d) (as redesignated by paragraph (2) and amended by paragraph

			 (4)) the following:</text>

									<quoted-block id="ID83EA2306D5494C2382BA9F4FBCF45EA2" style="OLC">

										<subsection id="ID3B497A482C6745238A0CE0F796811996"><enum>(e)</enum><header>Portability of

				Assistance</header>

											<paragraph id="IDE85C633DFD0A45B996C036748E2936AA"><enum>(1)</enum><header>In

				general</header><text>Each eligible entity described in section 404A(c)(1) that

				receives a grant under this chapter shall create or organize a trust for each

				cohort described in section 404B(d)(1)(A) for which the grant is sought in the

				application submitted by the entity, which trust shall be an amount that is not

				less than the minimum scholarship amount described in subsection (d),

				multiplied by the number of students participating in the cohort.</text>

											</paragraph><paragraph id="ID24E93410E9F34CF787886BCD34E3D2C9"><enum>(2)</enum><header>Requirement for

				portability</header><text>Funds contributed to the trust for a cohort shall be

				available to a student in the cohort when the student has—</text>

												<subparagraph id="IDAB61F4ED4AEB4BB3B97A847745FD8C86"><enum>(A)</enum><text>completed a

				secondary school diploma, its recognized equivalent, or other recognized

				alternative standard for individuals with disabilities; and</text>

												</subparagraph><subparagraph id="IDE5D18D5DF2EA4479B1014928382687D1"><enum>(B)</enum><text>enrolled in an

				institution of higher education.</text>

												</subparagraph></paragraph><paragraph id="ID6EDBEDC9A8414D06B546DDED395A15AB"><enum>(3)</enum><header>Qualified

				educational expenses</header><text>Funds available to an eligible student from

				a trust may be used for—</text>

												<subparagraph id="IDAD63D465A440440D9423B4AA084063B2"><enum>(A)</enum><text>tuition, fees,

				books, supplies, and equipment required for the enrollment or attendance of the

				eligible student at an institution of higher education; and</text>

												</subparagraph><subparagraph id="ID9F381476F2FD43FFB7D5AB5E01712DB0"><enum>(B)</enum><text>in the case of an

				eligible student with special needs, expenses for special needs services which

				are incurred in connection with such enrollment or attendance.</text>

												</subparagraph></paragraph><paragraph id="IDD74D7B2F43E64FEFAC96D97EE73A9026"><enum>(4)</enum><header>Return of

				funds</header>

												<subparagraph id="IDCFC83AF099304B268B988654F27793BA"><enum>(A)</enum><header>Redistribution</header>

													<clause id="IDCBEA100E0FC142F58EDF51A6ACF61CF1"><enum>(i)</enum><header>In

				general</header><text>Trust funds that are not used by an eligible student

				within 6 years of the student’s scheduled completion of secondary school may be

				redistributed by the eligible entity to other eligible students.</text>

													</clause><clause id="IDF5B4B629C6BE4C85923F913385E457BB"><enum>(ii)</enum><header>Return of

				excess to the secretary</header><text>If, after meeting the requirements of

				paragraph (1) and, if applicable, redistributing excess funds in accordance

				with clause (i), an eligible entity has funds remaining, the eligible entity

				shall return excess funds to the Secretary for distribution to other grantees

				under this chapter.</text>

													</clause></subparagraph><subparagraph id="IDE70DE92ACCF2471794EBCB8CD0F5EE20"><enum>(B)</enum><header>Nonparticipating

				entity</header><text>Notwithstanding subparagraph (A), in the case of an

				eligible entity described in section 404A(c)(1)(A) that does not receive

				assistance under this subpart for 6 fiscal years, the eligible entity shall

				return any trust funds not awarded or obligated to eligible students to the

				Secretary for distribution to other grantees under this

				chapter.</text>

												</subparagraph></paragraph></subsection><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</paragraph><paragraph id="IDDF7C8CBCA8C04C558D43ED6D40F9476C"><enum>(6)</enum><text>in subsection (g)

			 (as redesignated by paragraph (2))—</text>

									<subparagraph id="ID322FD21CE4CB4E44A1D9DFF71AAA7B20"><enum>(A)</enum><text>in paragraph (2),

			 by striking <quote>1993</quote> and inserting <quote>2000</quote>; and</text>

									</subparagraph><subparagraph id="ID3772D35019E74E48BFAC25CDDA77F25E"><enum>(B)</enum><text>in paragraph (4),

			 by striking <quote>early intervention component required under section

			 404D</quote> and inserting <quote>activities required under section

			 404D(a)</quote>.</text>

									</subparagraph></paragraph></subsection><subsection id="ID5488200B173143EA9D78C0C609820C40"><enum>(f)</enum><header>Repeal of 21st

			 Century Scholar Certificates</header><text>Chapter 2 of subpart 2 of part A of

			 title IV (20 U.S.C. 1070a–21 et seq.) is further amended—</text>

								<paragraph id="ID9377DB01E7264FBF943C98A6049B20FF"><enum>(1)</enum><text>by striking

			 section 404F; and</text>

								</paragraph><paragraph id="IDEE558234B2A14B1CB6DE4936E868C6AB"><enum>(2)</enum><text>by redesignating

			 sections 404G and 404H as sections 404F and 404G, respectively.</text>

								</paragraph></subsection><subsection id="ID255B47F6B0F543218362B5746A530247"><enum>(g)</enum><header>Authorization

			 of Appropriations</header><text>Section 404G (as redesignated by subsection

			 (f)) (20 U.S.C. 1070a–28) is amended by striking <quote>$200,000,000 for fiscal

			 year 1999</quote> and all that follows through the period and inserting

			 <quote>such sums as may be necessary for fiscal year 2006 and each of the 5

			 succeeding fiscal years.</quote>.</text>

							</subsection><subsection id="ID854576A4154444EBA4671ABD57C5280B"><enum>(h)</enum><header>Conforming

			 Amendments</header><text>Chapter 2 of subpart 2 of part A of title IV (20

			 U.S.C. 1070a–21 et seq.) is further amended—</text>

								<paragraph id="IDD9F0FA37B1064667976451C8CAB4A0CE"><enum>(1)</enum><text>in section

			 404A(b)(1), by striking <quote>404H</quote> and inserting

			 <quote>404G</quote>;</text>

								</paragraph><paragraph id="ID9BD0E75A8A6C469D91E0755050C244AA"><enum>(2)</enum><text>in section

			 404B(a)(1), by striking <quote>404H</quote> and inserting <quote>404G</quote>;

			 and</text>

								</paragraph><paragraph id="ID0A7B914690E44B7998C9BDC214DF555D"><enum>(3)</enum><text>in section

			 404F(c) (as redesignated by subsection (f)(2)), by striking <quote>404H</quote>

			 and inserting <quote>404G</quote>.</text>

								</paragraph></subsection></section><section id="ID4CF20927BEB3496CA917970E6F72E42F"><enum>7364.</enum><header>Academic

			 Achievement Incentive Scholarships</header><text display-inline="no-display-inline">Chapter 3 of subpart 2 of part A of title IV

			 (20 U.S.C. 1070a–31 et seq.) is repealed.</text>

						</section><section id="ID9509D2F36F614995B38DA4763E78EB52"><enum>7365.</enum><header>Federal

			 Supplemental Educational Opportunity Grants</header>

							<subsection id="ID9BC1EF9AF84B465AAC49685DC86D14A6"><enum>(a)</enum><header>Appropriations

			 Authorized</header><text>Section 413A(b)(1) (20 U.S.C. 1070b(b)(1)) is amended

			 by striking <quote>$675,000,000 for fiscal year 1999</quote> and all that

			 follows through the period and inserting <quote>such sums as may be necessary

			 for fiscal year 2006 and each of the 5 succeeding fiscal years.</quote>.</text>

							</subsection><subsection id="ID771957BD8DD14F85A61F049F547EE251"><enum>(b)</enum><header>Allocation of

			 Funds</header>

								<paragraph id="ID49BEF990A3934BF09F01492709E8961B"><enum>(1)</enum><header>Allocation of

			 funds</header><text>Section 413D (20 U.S.C. 1070b–3) is amended—</text>

									<subparagraph id="ID09172239C89247A3A3508AA1447311DF"><enum>(A)</enum><text>by striking

			 subsection (a)(4); and</text>

									</subparagraph><subparagraph id="IDE14E7AB093B1432F93BBA35DA84A3555"><enum>(B)</enum><text>in subsection

			 (c)(3)(D), by striking <quote>$450</quote> and inserting

			 <quote>$600</quote>.</text>

									</subparagraph></paragraph><paragraph id="IDCCEFDED087604BE89167E0F56CC1FFE1"><enum>(2)</enum><header>Technical

			 correction</header><text>Section 413D(a)(1) (20 U.S.C. 1070b–3(a)(1)) is

			 amended by striking <quote>such institution</quote> and all that follows

			 through the period and inserting <quote>such institution received under

			 subsections (a) and (b) of this section for fiscal year 1999 (as such

			 subsections were in effect with respect to allocations for such fiscal

			 year).</quote>.</text>

								</paragraph></subsection></section><section id="ID2159A66110694935B0FD652ECBEDE2AF"><enum>7366.</enum><header>Leveraging

			 Educational Assistance Partnership Program</header>

							<subsection id="IDE4F8A6E5B3C54BA9A17F9CCC45F30A35"><enum>(a)</enum><header>Appropriations

			 Authorized</header><text>Section 415A(b)(1) (20 U.S.C. 1070c(b)(1)) is amended

			 to read as follows:</text>

								<quoted-block id="ID26D8552F270E4F48A625009D320D73B2" style="OLC">

									<paragraph id="ID3FD6B92487B045A8948F4B1B52914CC8"><enum>(1)</enum><header>In

				general</header><text>There are authorized to be appropriated to carry out this

				subpart such sums as may be necessary for fiscal year 2006 and each of the 5

				succeeding fiscal

				years.</text>

									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subsection><subsection id="ID481499C1975B405781564EA1E7D4276D"><enum>(b)</enum><header>Applications</header><text>Section

			 415C(b) (20 U.S.C. 1070c–2(b)) is amended—</text>

								<paragraph id="IDB74D55DC74FA473383E957F63E484152"><enum>(1)</enum><text>in the matter

			 preceding subparagraph (A) of paragraph (2), by striking <quote>not in excess

			 of $5,000 per academic year</quote> and inserting <quote>not to exceed the

			 lesser of $12,500 or the student’s cost of attendance per academic

			 year</quote>; and</text>

								</paragraph><paragraph id="ID09061C9FBBF5497BA8652D74DA351C90"><enum>(2)</enum><text>by striking

			 paragraph (10) and inserting the following:</text>

									<quoted-block id="IDACB40282309D471F90B921969390667F" style="OLC">

										<paragraph id="ID2FF00EF0EE40484189BFDB38F3BED8BD"><enum>(10)</enum><text>provides

				notification to eligible students that such grants are—</text>

											<subparagraph id="ID1FD66CF79B6F4DF69190340925F6352F"><enum>(A)</enum><text>Leveraging

				Educational Assistance Partnership grants; and</text>

											</subparagraph><subparagraph id="ID81B02B4839A843379C60390711F5291B"><enum>(B)</enum><text>funded by the

				Federal Government, the State, and other contributing

				partners.</text>

											</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

								</paragraph></subsection><subsection id="ID5A147A7D2D8B47C79D6067779D4722A2"><enum>(c)</enum><header>Grants for

			 Access and Persistence</header><text>Section 415E (20 U.S.C. 1070c–3a) is

			 amended to read as follows:</text>

								<quoted-block id="IDA2364D2C5B2B441D81BD9340E77CB8ED" style="OLC">

									<section id="ID5CD1D53845724CACA530382E64F4DDD6"><enum>415E.</enum><header>Grants for

				access and persistence</header>

										<subsection id="ID1B3661CB4C5348C9950B73F6A23CA1B0"><enum>(a)</enum><header>Purpose</header><text>It

				is the purpose of this section to expand college access and increase college

				persistence by making allotments to States to enable the States to—</text>

											<paragraph id="ID0EA74026F57A4B64B186C9C8FEBAF9A7"><enum>(1)</enum><text>expand and

				enhance partnerships with institutions of higher education, early information

				and intervention, mentoring, or outreach programs, private corporations,

				philanthropic organizations, and other interested parties in order to—</text>

												<subparagraph id="IDFAA08EEAB17C42AB8392DE4A7C45EEB5"><enum>(A)</enum><text>carry out

				activities under this section; and</text>

												</subparagraph><subparagraph id="ID33595547D3BD47C8AA251B70EC8505EE"><enum>(B)</enum><text>provide

				coordination and cohesion among Federal, State, and local governmental and

				private efforts that provide financial assistance to help low-income students

				attend an institution of higher education;</text>

												</subparagraph></paragraph><paragraph id="IDC93F111C69514C27AC7BAFB1A465AE38"><enum>(2)</enum><text>provide

				need-based grants for access and persistence to eligible low-income

				students;</text>

											</paragraph><paragraph id="ID5991AE8E9D754E278CBD8366297BDF3A"><enum>(3)</enum><text>provide early

				notification to low-income students of the students’ eligibility for financial

				aid; and</text>

											</paragraph><paragraph id="ID9801E07F4BB4480E89398BA5177C6CE3"><enum>(4)</enum><text>encourage

				increased participation in early information and intervention, mentoring, or

				outreach programs.</text>

											</paragraph></subsection><subsection id="ID86E3815A657E472C9852317A12854F21"><enum>(b)</enum><header>Allotments to

				States</header>

											<paragraph id="ID20DE7EB8EFFA490D8C30C687A346F74A"><enum>(1)</enum><header>In

				general</header>

												<subparagraph id="ID44AE340CEF834B0B9453FF8BFC2A2185"><enum>(A)</enum><header>Authorization</header><text>From

				sums reserved under section 415A(b)(2) for each fiscal year, the Secretary

				shall make an allotment to each State that submits an application for an

				allotment in accordance with subsection (c) to enable the State to pay the

				Federal share, as described in paragraph (2), of the cost of carrying out the

				activities under subsection (d).</text>

												</subparagraph><subparagraph id="ID647A81912CAD4E1C8A51B80AFA714AA8"><enum>(B)</enum><header>Determination

				of allotment</header><text>In making allotments under subparagraph (A), the

				Secretary shall consider the following:</text>

													<clause id="IDA4D565D9B9E24AE5912565F1AD1863A6"><enum>(i)</enum><header>Continuation of

				award</header><text>If a State continues to meet the specifications established

				in such State’s application under subsection (c), the Secretary shall make an

				allotment to such State that is not less than the allotment made to such State

				for the previous fiscal year.</text>

													</clause><clause id="ID4377F4B8B94549F3BE219AEB059FDA01"><enum>(ii)</enum><header>Priority</header><text>The

				Secretary shall give priority in making allotments to States that meet the

				requirements described in paragraph (2)(A)(ii).</text>

													</clause></subparagraph></paragraph><paragraph id="IDA1A6EA6E047749C18952BF668CC1066D"><enum>(2)</enum><header>Federal

				share</header>

												<subparagraph id="IDD75FCC7251E74795A29EEB0F1F0BA39F"><enum>(A)</enum><header>In

				general</header><text>The Federal share under this section shall be determined

				in accordance with the following:</text>

													<clause id="IDD70C7B72060E45FCA58F53DA97AC89F1"><enum>(i)</enum><text>If a State

				applies for an allotment under this section in partnership with—</text>

														<subclause id="ID7E4D05D48BD948E496C004868703EDEF"><enum>(I)</enum><text>any number of

				degree granting institutions of higher education in the State whose combined

				full-time enrollment represents less than a majority of all students attending

				institutions of higher education in the State; and</text>

														</subclause><subclause id="IDF0D1A377C2164EF6B0D02D66EF545422"><enum>(II)</enum><item commented="no" display-inline="yes-display-inline" id="ID87E18C4705434651BFE1BD7138AA7389"><enum>(aa)</enum><text>philanthropic

				organizations that are located in, or that provide funding in, the State;

				or</text>

															</item><item id="IDA4E77DB99B5546EB89685E43705528E6" indent="up1"><enum>(bb)</enum><text>private corporations that are located

				in, or that do business in, the State,</text>

															</item></subclause><continuation-text continuation-text-level="clause">then the

				Federal share of the cost of carrying out the activities under subsection (d)

				shall be equal to 50 percent.</continuation-text></clause><clause id="ID71E11AEF28D34F1EAB10C72AD864D167"><enum>(ii)</enum><text>If a State

				applies for an allotment under this section in partnership with—</text>

														<subclause id="ID2601B34854A14EF6A6CA5439351A65E2"><enum>(I)</enum><text>any number of

				degree granting institutions of higher education in the State whose combined

				full-time enrollment represents a majority of all students attending

				institutions of higher education in the State; and</text>

														</subclause><subclause id="IDBF877D9934B44E279A9AE0BEB5859996"><enum>(II)</enum><item commented="no" display-inline="yes-display-inline" id="ID899EFBEA92D743A895314F34507FF34F"><enum>(aa)</enum><text>philanthropic

				organizations that are located in, or that provide funding in, the State;

				or</text>

															</item><item id="ID5150B0F2651E4EFBA344163E9F7E8026" indent="up1"><enum>(bb)</enum><text>private corporations that are located

				in, or that do business in, the State,</text>

															</item></subclause><continuation-text continuation-text-level="clause">then the

				Federal share of the cost of carrying out the activities under subsection (d)

				shall be equal to 57 percent.</continuation-text></clause></subparagraph><subparagraph id="IDD7BE215926F04148A86F972CCA07521C"><enum>(B)</enum><header>Non-federal

				share</header>

													<clause id="ID6767B98AD0444AB7931519394AA5E0C3"><enum>(i)</enum><header>In

				general</header><text>The non-Federal share under this section may be provided

				in cash or in kind, fully evaluated and in accordance with this

				subparagraph.</text>

													</clause><clause id="ID392946BA6C6A419CBBB732C30087A5E1"><enum>(ii)</enum><header>In kind

				contribution</header><text>For the purpose of calculating the non-Federal share

				under this section, an in kind contribution is a non-cash award that has

				monetary value, such as provision of room and board and transportation passes,

				and that helps a student meet the cost of attendance.</text>

													</clause><clause id="IDF0158CBAE22344CBAF03072B601F8281"><enum>(iii)</enum><header>Effect on

				need analysis</header><text>For the purpose of calculating a student’s need in

				accordance with part F of this title, an in-kind contribution described in

				clause (ii) shall not be considered an asset or income.</text>

													</clause></subparagraph></paragraph></subsection><subsection id="ID318E642FBCA247E58D765EF5F3E3C9A4"><enum>(c)</enum><header>Application for

				Allotment</header>

											<paragraph id="ID4097AAE417F143F1B14E89AF2DECDB86"><enum>(1)</enum><header>In

				general</header>

												<subparagraph id="ID3D0B89A126094FE0A1D2EDCBE10698B9"><enum>(A)</enum><header>Submission</header><text>A

				State that desires to receive an allotment under this section on behalf of a

				partnership described in paragraph (3) shall submit an application to the

				Secretary at such time, in such manner, and containing such information as the

				Secretary may require.</text>

												</subparagraph><subparagraph id="ID2A729CD5DF904442A0B53720BA5AF884"><enum>(B)</enum><header>Content</header><text>An

				application submitted under subparagraph (A) shall include the

				following:</text>

													<clause id="ID93C2AA4C8A9E410A8115316A4C920695"><enum>(i)</enum><text>A

				description of the State’s plan for using the allotted funds.</text>

													</clause><clause id="ID6D13E532FDAC43D1A877952F54645B72"><enum>(ii)</enum><text>Assurances that

				the State will provide the non-Federal share from State, institutional,

				philanthropic, or private funds, of not less than the required share of the

				cost of carrying out the activities under subsection (d), as determined under

				subsection (b), in accordance with the following:</text>

														<subclause id="ID80FC9C6F9C3E4499994999791BF4DFAA"><enum>(I)</enum><text>The State shall

				specify the methods by which non-Federal share funds will be paid and include

				provisions designed to ensure that funds provided under this section will be

				used to supplement, and not supplant, Federal and non-Federal funds available

				for carrying out the activities under this title.</text>

														</subclause><subclause id="ID301E7152D28A44BF9FD1D2D56328CBAC"><enum>(II)</enum><text>A State that

				uses non-Federal funds to create or expand existing partnerships with nonprofit

				organizations or community-based organizations in which such organizations

				match State funds for student scholarships, may apply such matching funds from

				such organizations toward fulfilling the State’s non-Federal share obligation

				under this clause.</text>

														</subclause></clause><clause id="ID1075A1D1B8A44DE1BF7C9AB5452DF184"><enum>(iii)</enum><text>Assurances that

				early information and intervention, mentoring, or outreach programs exist

				within the State or that there is a plan to make such programs widely

				available.</text>

													</clause><clause id="ID64BA3A7974954B3EA8B8EF55803651B9"><enum>(iv)</enum><text>A description of

				the organizational structure that the State has in place to administer the

				activities under subsection (d), including a description of the system the

				State will use to track the participation of students who receive grants under

				this section to degree completion.</text>

													</clause><clause id="IDD662B0FC2B3E4CCDA8C007A7BB3311F4"><enum>(v)</enum><text>Assurances that

				the State has a method in place, such as acceptance of the automatic zero

				expected family contribution determination described in section 479, to

				identify eligible low-income students and award State grant aid to such

				students.</text>

													</clause><clause id="ID4E3D91E2C637457F8E40363277BA3509"><enum>(vi)</enum><text>Assurances that

				the State will provide notification to eligible low-income students that grants

				under this section are—</text>

														<subclause id="ID81017A6C632D4458A898580E08497439"><enum>(I)</enum><text>Leveraging

				Educational Assistance Partnership Grants; and</text>

														</subclause><subclause id="ID63A64C35E0AB43F18272E0CA1AE58665"><enum>(II)</enum><text>funded by the

				Federal Government, the State, and other contributing partners.</text>

														</subclause></clause></subparagraph></paragraph><paragraph id="ID1784514C1BAC452E811889C4DF8D80EA"><enum>(2)</enum><header>State

				agency</header><text>The State agency that submits an application for a State

				under section 415C(a) shall be the same State agency that submits an

				application under paragraph (1) for such State.</text>

											</paragraph><paragraph id="IDBF3A5BC88C704DBF8F112A3F8E30E333"><enum>(3)</enum><header>Partnership</header><text>In

				applying for an allotment under this section, the State agency shall apply for

				the allotment in partnership with—</text>

												<subparagraph id="ID9EEC587CBDEA417698C8F59CF46880CF"><enum>(A)</enum><text>not less than 1

				public and 1 private degree granting institution of higher education that are

				located in the State, if applicable;</text>

												</subparagraph><subparagraph id="IDF3A3C410F2234884A8EB10CAB2CBD866"><enum>(B)</enum><text>new or existing

				early information and intervention, mentoring, or outreach programs located in

				the State; and</text>

												</subparagraph><subparagraph id="ID82E1AB6A011A44CC919EDD6A065230FA"><enum>(C)</enum><text>not less than

				1—</text>

													<clause id="ID8B521FD8C0FF476EA0083D02638CBBE4"><enum>(i)</enum><text>philanthropic

				organization located in, or that provides funding in, the State; or</text>

													</clause><clause id="ID489C39EA9C744C8DA99232B69367E051"><enum>(ii)</enum><text>private

				corporation located in, or that does business in, the State.</text>

													</clause></subparagraph></paragraph><paragraph id="ID1C9DFC5A7E3E4D6193CFE99FBFC6F913"><enum>(4)</enum><header>Roles of

				partners</header>

												<subparagraph id="IDAA4DCF86451F460AA3F0298134785A85"><enum>(A)</enum><header>State

				agency</header><text>A State agency that is in a partnership receiving an

				allotment under this section—</text>

													<clause id="ID023F1D022AB140E5A2C3442CDAF49D05"><enum>(i)</enum><text>shall—</text>

														<subclause id="ID071BB16C9BAE4DE586664BA1A5FEAC51"><enum>(I)</enum><text>serve as the

				primary administrative unit for the partnership;</text>

														</subclause><subclause id="IDABB51A3A83524E67BC8AF7A2FA33A916"><enum>(II)</enum><text>provide or

				coordinate non-Federal share funds, and coordinate activities among

				partners;</text>

														</subclause><subclause id="ID560DEDB6E34D4F56ADEB950E0960B4F1"><enum>(III)</enum><text>encourage each

				institution of higher education in the State to participate in the

				partnership;</text>

														</subclause><subclause id="ID12A69D126AC848C68AF7B386EADA01F3"><enum>(IV)</enum><text>make

				determinations and early notifications of assistance as described under

				subsection (d)(2); and</text>

														</subclause><subclause id="ID202CDE65CB304F64A0D269CCFD6FF144"><enum>(V)</enum><text>annually report

				to the Secretary on the partnership’s progress in meeting the purpose of this

				section; and</text>

														</subclause></clause><clause id="ID5167D9DB64FB425691958B018BACB9D3"><enum>(ii)</enum><text>may provide

				early information and intervention, mentoring, or outreach programs.</text>

													</clause></subparagraph><subparagraph id="IDF8FF7280ADE543D68818A9D291E8C377"><enum>(B)</enum><header>Degree granting

				institutions of higher education</header><text>A degree granting institution of

				higher education that is in a partnership receiving an allotment under this

				section—</text>

													<clause id="ID91736864FB514EFD8FEDBA992F87C8FF"><enum>(i)</enum><text>shall—</text>

														<subclause id="ID8A29C85CF3074F0D922BA57B39401CF6"><enum>(I)</enum><text>recruit and admit

				participating qualified students and provide such additional institutional

				grant aid to participating students as agreed to with the State agency;</text>

														</subclause><subclause id="ID87D58F99760945F4A7E89681FF2CA501"><enum>(II)</enum><text>provide support

				services to students who receive grants for access and persistence under this

				section and are enrolled at such institution; and</text>

														</subclause><subclause id="IDC1BE1269D8064442BB77136B7F39F887"><enum>(III)</enum><text>assist the

				State in the identification of eligible students and the dissemination of early

				notifications of assistance as agreed to with the State agency; and</text>

														</subclause></clause><clause id="ID164DB7EF4F9548589504BB6581E0F559"><enum>(ii)</enum><text>may provide

				funding for early information and intervention, mentoring, or outreach programs

				or provide such services directly.</text>

													</clause></subparagraph><subparagraph id="IDCE026818F35548B4A61CB76F22A7DBF0"><enum>(C)</enum><header>Programs</header><text>An

				early information and intervention, mentoring, or outreach program that is in a

				partnership receiving an allotment under this section shall provide direct

				services, support, and information to participating students.</text>

												</subparagraph><subparagraph id="ID0E19026F63EB4C32ABEE9C9B870B0DE4"><enum>(D)</enum><header>Philanthropic

				organization or private corporation</header><text>A philanthropic organization

				or private corporation that is in a partnership receiving an allotment under

				this section shall provide funds for grants for access and persistence for

				participating students, or provide funds or support for early information and

				intervention, mentoring, or outreach programs.</text>

												</subparagraph></paragraph></subsection><subsection id="ID67519029295244E88D43508FBB4AD513"><enum>(d)</enum><header>Authorized

				Activities</header>

											<paragraph id="ID861B9B0746BC4331A459AECB992E1288"><enum>(1)</enum><header>In

				general</header>

												<subparagraph id="IDAC77DCA2F05245EBB121C62482192F01"><enum>(A)</enum><header>Establishment

				of partnership</header><text>Each State receiving an allotment under this

				section shall use the funds to establish a partnership to award grants for

				access and persistence to eligible low-income students in order to increase the

				amount of financial assistance such students receive under this subpart for

				undergraduate education expenses.</text>

												</subparagraph><subparagraph id="ID373B942EB46148EC91C8727BD36F3995"><enum>(B)</enum><header>Amount of

				grants</header>

													<clause id="IDFD1ED4C4EB0449E584D9845C0A9943A7"><enum>(i)</enum><header>Partnerships

				with institutions serving less than a majority of students in the

				state</header>

														<subclause id="ID9A350F85B5E04FE4BFCAA8BB443C4D73"><enum>(I)</enum><header>In

				general</header><text>In the case where a State receiving an allotment under

				this section is in a partnership described in subsection (b)(2)(A)(i), the

				amount of a grant for access and persistence awarded by such State shall be not

				less than the amount that is equal to the average undergraduate tuition and

				mandatory fees at 4-year public institutions of higher education in the State

				where the student resides (less any other Federal or State sponsored grant

				amount, work study amount, and scholarship amount received by the student), and

				such amount shall be used toward the cost of attendance at an institution of

				higher education located in the State.</text>

														</subclause><subclause id="ID267FB49308DF4A9094B625511355B9FD"><enum>(II)</enum><header>Cost of

				attendance</header><text>A State that has a program, apart from the partnership

				under this section, of providing eligible low-income students with grants that

				are equal to the average undergraduate tuition and mandatory fees at 4-year

				public institutions of higher education in the State, may increase the amount

				of grants for access and persistence awarded by such State up to an amount that

				is equal to the average cost of attendance at 4-year public institutions of

				higher education in the State (less any other Federal or State sponsored grant

				amount, work study amount, and scholarship amount received by the

				student).</text>

														</subclause></clause><clause id="IDBAA70DF09CE2466BB54C7791364FE779"><enum>(ii)</enum><header>Partnerships

				with institutions serving the majority of students in the

				state</header><text>In the case where a State receiving an allotment under this

				section is in a partnership described in subsection (b)(2)(A)(ii), the amount

				of a grant for access and persistence awarded by such State shall be not more

				than an amount that is equal to the average cost of attendance at 4-year public

				institutions of higher education in the State where the student resides (less

				any other Federal or State sponsored grant amount, college work study amount,

				and scholarship amount received by the student), and such amount shall be used

				by the student to attend an institution of higher education located in the

				State.</text>

													</clause></subparagraph><subparagraph id="IDFA4003E6754343E6AC670786FB505721"><enum>(C)</enum><header>Special

				rules</header>

													<clause id="IDC2E806D416B8406BB45951C8A4599C02"><enum>(i)</enum><header>Partnership

				institutions</header><text>A State receiving an allotment under this section

				may restrict the use of grants for access and persistence under this section by

				awarding the grants only to students attending institutions of higher education

				that are participating in the partnership.</text>

													</clause><clause id="IDD1E806AE80A446EAA875D0867E456291"><enum>(ii)</enum><header>Out-of-State

				institutions</header><text>If a State provides grants through another program

				under this subpart to students attending institutions of higher education

				located in another State, such agreement may also apply to grants awarded under

				this section.</text>

													</clause></subparagraph></paragraph><paragraph id="ID925CF3978D79446E8845C3E83E40E0AD"><enum>(2)</enum><header>Early

				notification</header>

												<subparagraph id="IDEDEEB7E52071472DA5A2F46B8A8E7658"><enum>(A)</enum><header>In

				general</header><text>Each State receiving an allotment under this section

				shall annually notify low-income students, such as students who are eligible to

				receive a free lunch under the school lunch program established under the

				Richard B. Russell <act-name parsable-cite="NSLA">National School Lunch

				Act</act-name>, in grade 7 through grade 12 in the State, of the students’

				potential eligibility for student financial assistance, including a grant for

				access and persistence, to attend an institution of higher education.</text>

												</subparagraph><subparagraph id="ID38B1AC7B87074A4DB5498DED885557EE"><enum>(B)</enum><header>Content of

				notice</header><text>The notification under subparagraph (A)—</text>

													<clause id="ID53381A965DE443D69D85924911042E76"><enum>(i)</enum><text>shall

				include—</text>

														<subclause id="ID0EB6C29B5C974B32BB3DBC53B8A6209B"><enum>(I)</enum><text>information about

				early information and intervention, mentoring, or outreach programs available

				to the student;</text>

														</subclause><subclause id="IDCD6783194C534E759DA2F8DA213AABD3"><enum>(II)</enum><text>information that

				a student’s candidacy for a grant for access and persistence is enhanced

				through participation in an early information and intervention, mentoring, or

				outreach program;</text>

														</subclause><subclause id="ID043D342D14094C0D8E0F7F74764B51D7"><enum>(III)</enum><text>an explanation

				that student and family eligibility and participation in other Federal

				means-tested programs may indicate eligibility for a grant for access and

				persistence and other student aid programs;</text>

														</subclause><subclause id="ID7974EDA77C6D40FFBCB368B8CCA66CA9"><enum>(IV)</enum><text>a nonbinding

				estimation of the total amount of financial aid a low-income student with a

				similar income level may expect to receive, including an estimation of the

				amount of a grant for access and persistence and an estimation of the amount of

				grants, loans, and all other available types of aid from the major Federal and

				State financial aid programs;</text>

														</subclause><subclause id="ID3421F8298C584A5486AA1D76BA33ABE8"><enum>(V)</enum><text>an explanation

				that in order to be eligible for a grant for access and persistence, at a

				minimum, a student shall—</text>

															<item id="ID65148C1136D1422B8879FB8A50A3B557"><enum>(aa)</enum><text>meet the

				requirement under paragraph (3);</text>

															</item><item id="ID1890154EBE15428DA041A40A1334C938"><enum>(bb)</enum><text>graduate from

				secondary school; and</text>

															</item><item id="IDB2E353CD531347D898BE7ACE1D4F1AF8"><enum>(cc)</enum><text>enroll at an

				institution of higher education that is a partner in the partnership or

				qualifies under subsection (d)(1)(C)(ii);</text>

															</item></subclause><subclause id="ID0DC197A5AAE4419593DF86E6EC9B6E77"><enum>(VI)</enum><text>information on

				any additional requirements (such as a student pledge detailing student

				responsibilities) that the State may impose for receipt of a grant for access

				and persistence under this section; and</text>

														</subclause><subclause id="IDE28D40A5FE0F43B2A0F67FC011B0BB61"><enum>(VII)</enum><text>instructions on

				how to apply for a grant for access and persistence and an explanation that a

				student is required to file a Free Application for Federal Student Aid

				authorized under section 483(a) to be eligible for such grant and assistance

				from other Federal and State financial aid programs; and</text>

														</subclause></clause><clause id="IDFA56082CA30C4F599358D9D2CD6487DC"><enum>(ii)</enum><text>may include a

				disclaimer that grant awards for access and persistence are contingent

				upon—</text>

														<subclause id="IDA15F9C45B67D407CA1D34748C0384C6E"><enum>(I)</enum><text>a determination

				of the student’s financial eligibility at the time of the student’s enrollment

				at an institution of higher education that is a partner in the partnership or

				qualifies under subsection (d)(1)(C)(ii);</text>

														</subclause><subclause id="IDD7454109EF7048ADAD9A1A99476BA045"><enum>(II)</enum><text>annual Federal

				and State appropriations; and</text>

														</subclause><subclause id="IDF405B0145EAF4393954CE379238E1441"><enum>(III)</enum><text>other aid

				received by the student at the time of the student’s enrollment at such

				institution of higher education.</text>

														</subclause></clause></subparagraph></paragraph><paragraph id="ID93DA6A2BF8A2410E846B9B664DF929F4"><enum>(3)</enum><header>Eligibility</header><text>In

				determining which students are eligible to receive grants for access and

				persistence, the State shall ensure that each such student meets not less than

				1 of the following:</text>

												<subparagraph id="IDE5304430C58A411E9AE77244D4D08CB7"><enum>(A)</enum><text>Meets not less

				than 2 of the following criteria, with priority given to students meeting all

				of the following criteria:</text>

													<clause id="ID0B94ECC7BAE04CC8BA2491AF7869DEDD"><enum>(i)</enum><text>Has an expected

				family contribution equal to zero (as described in section 479) or a comparable

				alternative based upon the State’s approved criteria in section

				415C(b)(4).</text>

													</clause><clause id="IDF6E59A3AAD2A47508F8A757F252D3081"><enum>(ii)</enum><text>Has qualified

				for a free lunch, or at the State’s discretion a reduced price lunch, under the

				school lunch program established under the Richard B. Russell

				<act-name parsable-cite="NSLA">National School Lunch Act</act-name>.</text>

													</clause><clause id="ID9034F0A7500048ABB90FBAC77A794355"><enum>(iii)</enum><text>Qualifies for

				the State’s maximum undergraduate award, as authorized under section

				415C(b).</text>

													</clause><clause id="IDC27C3CB7A8D94FFC945BC5781EEBD8B7"><enum>(iv)</enum><text>Is participating

				in, or has participated in, a Federal, State, institutional, or community early

				information and intervention, mentoring, or outreach program, as recognized by

				the State agency administering activities under this section.</text>

													</clause></subparagraph><subparagraph id="ID5DAA3BAA7C0E42C39EA0B972C95B3C92"><enum>(B)</enum><text>Is receiving, or

				has received, a grant for access and persistence under this section, in

				accordance with paragraph (5).</text>

												</subparagraph></paragraph><paragraph id="IDB5D28273041844ADB89014E3EF8B2728"><enum>(4)</enum><header>Grant

				award</header><text>Once a student, including those students who have received

				early notification under paragraph (2) from the State, applies for admission to

				an institution that is a partner in the partnership, files a Free Application

				for Federal Student Aid and any related existing State form, and is determined

				eligible by the State under paragraph (3), the State shall—</text>

												<subparagraph id="ID3E1FE833DC414329B11D3C046B40C390"><enum>(A)</enum><text>issue the student

				a preliminary award certificate for a grant for access and persistence with

				tentative award amounts; and</text>

												</subparagraph><subparagraph id="IDAADC8B09FA1F431D84254955F0393FC6"><enum>(B)</enum><text>inform the

				student that payment of the grant for access and persistence award amounts is

				subject to certification of enrollment and award eligibility by the institution

				of higher education.</text>

												</subparagraph></paragraph><paragraph id="ID103E304F7D124CAA8BBCA385F2AB7DC1"><enum>(5)</enum><header>Duration of

				award</header><text>An eligible student that receives a grant for access and

				persistence under this section shall receive such grant award for each year of

				such student’s undergraduate education in which the student remains eligible

				for assistance under this title, including pursuant to section 484(c), and

				remains financially eligible as determined by the State, except that the State

				may impose reasonable time limits to degree completion.</text>

											</paragraph></subsection><subsection id="ID9C2C5957B80E4DA6A54DDB4AA1DAB889"><enum>(e)</enum><header>Use of Funds

				for Administrative Costs Prohibited</header><text>A State that receives an

				allotment under this section shall not use any of the allotted funds to pay

				administrative costs associated with any of the authorized activities described

				in subsection (d).</text>

										</subsection><subsection id="ID8D2D7D2AC1414830B4BB7BD36767FCA0"><enum>(f)</enum><header>Statutory and

				Regulatory Relief for Institutions of Higher Education</header><text>The

				Secretary may grant, upon the request of an institution of higher education

				that is in a partnership described in subsection (b)(2)(A)(ii) and that

				receives an allotment under this section, a waiver for such institution from

				statutory or regulatory requirements that inhibit the ability of the

				institution to successfully and efficiently participate in the activities of

				the partnership.</text>

										</subsection><subsection id="ID8D679118BF7748E29C7ADA70674DBDB1"><enum>(g)</enum><header>Applicability

				Rule</header><text>The provisions of this subpart which are not inconsistent

				with this section shall apply to the program authorized by this section.</text>

										</subsection><subsection id="ID00E89D06637F4E54AFFBC802C58BFAF4"><enum>(h)</enum><header>Maintenance of

				Effort Requirement</header><text>Each State receiving an allotment under this

				section for a fiscal year shall provide the Secretary with an assurance that

				the aggregate amount expended per student or the aggregate expenditures by the

				State, from funds derived from non-Federal sources, for the authorized

				activities described in subsection (d) for the preceding fiscal year were not

				less than the amount expended per student or the aggregate expenditure by the

				State for the activities for the second preceding fiscal year.</text>

										</subsection><subsection id="ID2EDECCFCCE0F4151B65C5EC7A671D1F9"><enum>(i)</enum><header>Special

				Rule</header><text>Notwithstanding subsection (h), for purposes of determining

				a State’s share of the cost of the authorized activities described in

				subsection (d), the State shall consider only those expenditures from

				non-Federal sources that exceed the State’s total expenditures for need-based

				grants, scholarships, and work-study assistance for fiscal year 1999 (including

				any such assistance provided under this subpart).</text>

										</subsection><subsection id="ID90C96C628A4345CB9A7D93831C650992"><enum>(j)</enum><header>Continuation

				and Transition</header><text>For the 2-year period that begins on the date of

				enactment of the Higher Education Amendments of 2005, the Secretary shall

				continue to award grants under section 415E of the

				<act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> as such

				section existed on the day before the date of enactment of such Act to States

				that choose to apply for grants under such predecessor section.</text>

										</subsection><subsection id="ID013BB7B3DBD945AFA669B5C3AE2326F5"><enum>(k)</enum><header>Reports</header><text>Not

				later than 3 years after the date of enactment of the Higher Education

				Amendments of 2005 and annually thereafter, the Secretary shall submit a report

				describing the activities and the impact of the partnerships under this section

				to the authorizing

				committees.</text>

										</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

							</subsection></section><section id="IDB8BD2E5ED21A45B1BC5FFEE561C28E1F"><enum>7367.</enum><header>Special

			 programs for students whose families are engaged in migrant and seasonal

			 farmwork</header><text display-inline="no-display-inline">Section 418A (20

			 U.S.C. 1070d–2) is amended—</text>

							<paragraph id="ID7D2F91D5DB81410AB7B6BA7754B92812"><enum>(1)</enum><text>in subsection

			 (a), by adding <quote>(including providing outreach and technical

			 assistance)</quote> after <quote>maintain and expand</quote>;</text>

							</paragraph><paragraph id="ID42476655FBD34A0E82C848455EF8E0E0"><enum>(2)</enum><text>in subsection

			 (b)—</text>

								<subparagraph id="ID2EEB0E1930D7451981E3BB92F8F2EA13"><enum>(A)</enum><text>in paragraph

			 (1)(B)(i), by striking <quote>parents</quote> and inserting <quote>immediate

			 family</quote>;</text>

								</subparagraph><subparagraph id="IDC6AA56072C954D30B3F651784736BB78"><enum>(B)</enum><text>in paragraph

			 (3)(B), by inserting <quote>(including preparation for college entrance

			 examinations)</quote> after <quote>college program</quote>;</text>

								</subparagraph><subparagraph id="ID28FF7A5B957F499D88A3051CDF74506B"><enum>(C)</enum><text>in paragraph (5),

			 by striking <quote>weekly</quote>;</text>

								</subparagraph><subparagraph id="ID0FB47E5B61DC43ABADB8B9FE7DA36403"><enum>(D)</enum><text>in paragraph (7),

			 by striking <quote>and</quote> after the semicolon;</text>

								</subparagraph><subparagraph id="IDB0D951B84FF54C1FB692CE7E2D180DAF"><enum>(E)</enum><text>in paragraph (8),

			 by striking the period at the end and inserting <quote>; and</quote>;

			 and</text>

								</subparagraph><subparagraph id="IDF20DE0F3F9B742C08E4597D236365153"><enum>(F)</enum><text>by adding at the

			 end the following:</text>

									<quoted-block id="ID8FD539BB2381462BB96F6DFE3A09ADD6" style="OLC">

										<paragraph id="IDC06862135813402C9905275E2ED6F637"><enum>(9)</enum><text>other activities

				to improve persistence and retention in postsecondary

				education.</text>

										</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

								</subparagraph></paragraph><paragraph id="IDCAC50D1900C644BCA2AB1E3252FC04B1"><enum>(3)</enum><text>in subsection

			 (c)—</text>

								<subparagraph id="IDF9C05A419CDE45368C4F4BB08EF3130F"><enum>(A)</enum><text>in paragraph

			 (1)—</text>

									<clause id="IDBD750A728CCF4D1897E43502AC109FCC"><enum>(i)</enum><text>in

			 subparagraph (B)—</text>

										<subclause id="IDE6D349E04A524089A7F8443AEA6FD0F5"><enum>(I)</enum><text>in the matter

			 preceding clause (i), by inserting <quote>to improve placement, persistence,

			 and retention in postsecondary education</quote> after <quote>services</quote>;

			 and</text>

										</subclause><subclause id="ID9EA2C7D959D34047B577F3273ACF23C5"><enum>(II)</enum><text>in clause (i),

			 by striking <quote>and career</quote> and inserting <quote>career, and economic

			 education or personal finance</quote>;</text>

										</subclause></clause><clause id="IDE486E510587D4A34AF2235A2DF7E5065"><enum>(ii)</enum><text>in

			 subparagraph (E), by striking <quote>and</quote> after the semicolon;</text>

									</clause><clause id="ID1DC88BD5C450452082107B886E467506"><enum>(iii)</enum><text>by

			 redesignating subparagraph (F) as subparagraph (G); and</text>

									</clause><clause id="ID9765E35A0E054D15B255D4AAAD39A22A"><enum>(iv)</enum><text>by

			 inserting after subparagraph (E) the following:</text>

										<quoted-block id="ID897242164BCB433494150D3BCF3D1343" style="OLC">

											<subparagraph id="ID4AD24CED2EBD472CA841D0B881450F0D" indent="up1"><enum>(F)</enum><text>internships;

				and</text>

											</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

									</clause></subparagraph><subparagraph id="IDF10B3C87AE484FDD85BE7E85715781A1"><enum>(B)</enum><text>in paragraph

			 (2)—</text>

									<clause id="IDBD03ACB5BA9B4F29979490AC05EF7953"><enum>(i)</enum><text>in

			 subparagraph (A), by striking <quote>and</quote> after the semicolon;</text>

									</clause><clause id="IDBDFCDAFDD87C428A832AA8F36243C356"><enum>(ii)</enum><text>in

			 subparagraph (B), by striking the period at the end and inserting <quote>, and

			 coordinating such services, assistance, and aid with other non-program

			 services, assistance, and aid, including services, assistance, and aid provided

			 by community-based organizations, which may include mentoring and guidance;

			 and</quote>; and</text>

									</clause><clause id="IDFA3DDD0D3E4D41379A9AA98E3088FE2B"><enum>(iii)</enum><text>by adding at

			 the end the following:</text>

										<quoted-block id="IDB00356CE1B354C9A8FB78CE12A61D691" style="OLC">

											<subparagraph id="ID2943DCE87EAF4265AF4B51626F24AA1E"><enum>(C)</enum><text>for students

				attending 2-year institutions of higher education, encouraging the students to

				transfer to 4-year institutions of higher education, where appropriate, and

				monitoring the rate of transfer of such

				students.</text>

											</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>

									</clause></subparagraph></paragraph><paragraph id="ID391C7E1077B342F288F71B3CC82D057B"><enum>(4)</enum><text>in subsection

			 (e), by striking <quote>section 402A(c)(1)</quote> and inserting <quote>section

			 402A(c)(2)</quote>;</text>

							</paragraph><paragraph id="IDF8B7D2623883459CB871B789438211A1"><enum>(5)</enum><text>in subsection

			 (f)—</text>

								<subparagraph id="IDC09F702972A24C6B81C90A54BF09F0F6"><enum>(A)</enum><text>in paragraph (1),

			 by striking <quote>$150,000</quote> and inserting <quote>$180,000</quote>;

			 and</text>

								</subparagraph><subparagraph id="IDA481DFDB90944DEBA889575B96DC81B0"><enum>(B)</enum><text>in paragraph (2),

			 by striking <quote>$150,000</quote> and inserting <quote>$180,000</quote>;

			 and</text>

								</subparagraph></paragraph><paragraph id="ID332441FD27B74C2EAFA497D57CCA47F4"><enum>(6)</enum><text>in subsection

			 (h)—</text>

								<subparagraph id="IDF1F1E63D633E4906804479A8468FEAC8"><enum>(A)</enum><text>in paragraph (1),

			 by striking <quote>$15,000,000 for fiscal year 1999</quote> and all that

			 follows through the period and inserting <quote>such sums as may be necessary

			 for fiscal year 2006 and each of the 5 succeeding fiscal years.</quote>;

			 and</text>

								</subparagraph><subparagraph id="IDCF12C42A152042FFB9FEBBCBD38AFFA3"><enum>(B)</enum><text>in paragraph (2),

			 by striking <quote>$5,000,000 for fiscal year 1999</quote> and all that follows

			 through the period and inserting <quote>such sums as may be necessary for

			 fiscal year 2006 and each of the 5 succeeding fiscal years.</quote>.</text>

								</subparagraph></paragraph></section><section id="IDCE5C5D1C816346A6B9E9A738AD2B3BE2"><enum>7368.</enum><header>Robert C.

			 Byrd Honors Scholarship Program</header>

							<subsection id="ID2F3449A9F5094E80AA1D5A6FCF502095"><enum>(a)</enum><header>Eligibility of

			 Scholars</header><text>Section 419F(a) (20 U.S.C. 1070d–36(a)) is amended by

			 inserting <quote>(or a home school, whether treated as a home school or a

			 private school under State law)</quote> after <quote>private or public

			 secondary school</quote>.</text>

							</subsection><subsection id="ID6B035C706D144154836D976099F2178A"><enum>(b)</enum><header>Authorization

			 of Appropriations</header><text>Section 419K (20 U.S.C. 1070d–41) is amended by

			 striking <quote>$45,000,000 for fiscal year 1999</quote> and all that follows

			 through the period and inserting <quote>such sums as may be necessary for

			 fiscal year 2006 and each of the 5 succeeding fiscal years.</quote>.</text>

							</subsection></section><section id="IDD9C2BB46B4B74475A890DB890A670855"><enum>7369.</enum><header>Child care

			 access means parents in school</header>

							<subsection id="ID8D6A8624302E40B2B735C840C20D691E"><enum>(a)</enum><header>Minimum

			 Grant</header><text>Section 419N(b)(2)(B) (20 U.S.C. 1070e(b)(2)(B)) is

			 amended—</text>

								<paragraph id="ID9089F07D5AC24E49B7300FD919DFE9F4"><enum>(1)</enum><text>by striking

			 <quote>A grant</quote> and inserting the following:</text>

									<quoted-block id="IDBA3A57D3FCC14142939B22D5B1EF3124" style="OLC">

										<clause id="ID15EA93CFE28E43728330DC9B14D7E883"><enum>(i)</enum><header>In

				general</header><text>Except as provided in clause (ii), a

				grant</text>

										</clause><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</paragraph><paragraph id="IDE5324E3437A1473A9770120A1A134E51"><enum>(2)</enum><text>by adding at the

			 end the following:</text>

									<quoted-block id="ID48679D100D7D4168A0689F386296DEFC" style="OLC">

										<clause id="IDDE3A8D554FE34C8F9144FF5F4CE4870D"><enum>(ii)</enum><header>Increase

				trigger</header><text>For any fiscal year for which the amount appropriated

				under the authority of subsection (g) is equal to or greater than $20,000,000,

				a grant under this section shall be awarded in an amount that is not less than

				$30,000.</text>

										</clause><after-quoted-block>.</after-quoted-block></quoted-block>

								</paragraph></subsection><subsection id="ID4C0BE8B7233D4A71AEEEFDA2A2DBDF34"><enum>(b)</enum><header>Definition of

			 Low-Income Student</header><text>Paragraph (7) of section 419N(b) (20 U.S.C.

			 1070e(b)) is amended to read as follows:</text>

								<quoted-block id="ID094AB5321CE0426EBDA649B3E9E76743" style="OLC">

									<paragraph id="ID0FE6F2B83EAD47E1904EC5158AB99ED3"><enum>(7)</enum><header>Definition of

				low-income student</header><text>For the purpose of this section, the term

				<term>low-income student</term> means a student who—</text>

										<subparagraph id="IDFEFF19A0588242598D7A13F33DCC3BFA"><enum>(A)</enum><text>is eligible to

				receive a Federal Pell Grant for the fiscal year for which the determination is

				made; or</text>

										</subparagraph><subparagraph id="ID38622297FCA74EEFBD5E93D5D57DCD2D"><enum>(B)</enum><text>would otherwise

				be eligible to receive a Federal Pell Grant for the fiscal year for which the

				determination is made, except that the student fails to meet the requirements

				of—</text>

											<clause id="IDA1A5DA75769F48AB8C44057021316AF5"><enum>(i)</enum><text>section 401(c)(1)

				because the student is enrolled in a graduate or first professional course of

				study; or</text>

											</clause><clause id="ID057B6965ED14423989C466F8334A48BC"><enum>(ii)</enum><text>section

				484(a)(5) because the student is in the United States for a temporary

				purpose.</text>

											</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subsection><subsection id="IDEB69771AD1D64B85B7EC89F51B1FA427"><enum>(c)</enum><header>Authorization

			 of Appropriations</header><text>Section 419N(g) (20 U.S.C. 1070e(g)) is amended

			 by striking <quote>$45,000,000 for fiscal year 1999</quote> and all that

			 follows through the period and inserting <quote>such sums as may be necessary

			 for fiscal year 2006 and each of the 5 succeeding fiscal years.</quote>.</text>

							</subsection></section><section id="ID6CC9B5FC285B488B807CA95D3221046C"><enum>7370.</enum><header>Learning

			 anytime anywhere partnerships</header><text display-inline="no-display-inline">Subpart 8 of part A of title IV (20 U.S.C.

			 1070f et seq.) is repealed.</text>

						</section></subchapter><subchapter id="ID46475734BBCB464083E9949E3834CFFC"><enum>B</enum><header>Federal Family

			 Education Loan Program</header>

						<section id="ID67A3EE63F60D4E3C803585D191504DC6"><enum>7381.</enum><header>Extension of

			 authorities</header>

							<subsection id="ID9DD5619ECDCB4F44ADA666848ECAFA78"><enum>(a)</enum><header>Federal

			 Insurance Limitations</header><text>Section 424(a) (20 U.S.C. 1074(a)) is

			 amended—</text>

								<paragraph id="ID1ED1CB6EEF4547E7B8EE373CF18B0143"><enum>(1)</enum><text>by striking

			 <quote>2004</quote> and inserting <quote>2012</quote>; and</text>

								</paragraph><paragraph id="IDEAFAAB26D3A94442A8C9C0B1D8218F57"><enum>(2)</enum><text>by striking

			 <quote>2008</quote> and inserting <quote>2016</quote>.</text>

								</paragraph></subsection><subsection id="ID78E08DA28FF4428B9710E347D9AD3C8F"><enum>(b)</enum><header>Guaranteed

			 Loans</header><text>Section 428(a)(5) (20 U.S.C. 1078(a)(5)) is amended—</text>

								<paragraph id="ID8D5ACFC937D94941A3341C7313F108F8"><enum>(1)</enum><text>by striking

			 <quote>2004</quote> and inserting <quote>2012</quote>; and</text>

								</paragraph><paragraph id="IDCCB6A0DAC3484157B5FB6776D6BE4296"><enum>(2)</enum><text>by striking

			 <quote>2008</quote> and inserting <quote>2016</quote>.</text>

								</paragraph><paragraph id="ID00019E82B850464195345E8E9FB5A060"><enum>(3)</enum><header>Consolidation

			 loans</header><text>Section 428C(e) (20 U.S.C. 1078–3(e)) is amended by

			 striking <quote>2004</quote> and inserting <quote>2012</quote>.</text>

								</paragraph></subsection></section><section id="ID929267BB0BBB48469FF36C07F143AC48"><enum>7382.</enum><header>Federal

			 payments to reduce student interest costs</header><text display-inline="no-display-inline">Section 428 (20 U.S.C. 1078) is

			 amended—</text>

							<paragraph id="IDF1F3E7EBD374460D884031F9C4979620"><enum>(1)</enum><text>in subsection

			 (b)(1)—</text>

								<subparagraph id="ID1CA0B7CC99334F6BB69BC62A1FD8A1D0"><enum>(A)</enum><text>in subparagraph

			 (N)—</text>

									<clause id="ID1012EEA10FD846189BD435BB4F8429D7"><enum>(i)</enum><text>in

			 clause (i), by striking <quote>or</quote> after the semicolon; and</text>

									</clause><clause id="ID09DFCC646AA74F3DB5B96FCC6DE588A5"><enum>(ii)</enum><text>by

			 striking clause (ii) and inserting the following:</text>

										<quoted-block id="ID9128B580EE7249DA93C28C30FE7B2D7A" style="OLC">

											<clause id="IDDBA6CADFE4764C9A87300DF036A932F1"><enum>(ii)</enum><text>in the case of a

				student who is studying outside the United States in a program of study abroad

				that is approved for credit by the home institution at which such student is

				enrolled, and only after verification of the student’s enrollment by the lender

				or guaranty agency, are, at the request of the student, disbursed directly to

				the student by the means described in clause (i), unless such student requests

				that the check be endorsed, or the funds transfer be authorized, pursuant to an

				authorized power-of-attorney; or</text>

											</clause><clause id="IDA3B657423A8647E8900AFC6DC83D326F"><enum>(iii)</enum><text>in the case of

				a student who is studying outside the United States in a program of study at an

				eligible foreign institution, are, at the request of the foreign institution,

				disbursed directly to the student, only after verification of the student’s

				enrollment by the lender or guaranty agency by the means described in clause

				(i);</text>

											</clause><after-quoted-block>;

				and</after-quoted-block></quoted-block>

									</clause></subparagraph><subparagraph id="ID359E09FF007048B2BF10ACE042BAE227"><enum>(B)</enum><text>in subparagraph

			 (Y)(i)(III), by inserting <quote>, except that, if requested by an institution

			 of higher education, the lender shall confirm such status through use of the

			 National Student Loan Data System</quote> before the semicolon; and</text>

								</subparagraph></paragraph><paragraph id="ID747E80C850BB401DBE975958B0581A24"><enum>(2)</enum><text>in subsection

			 (c)(2)(H)(i), by striking <quote>preclaims</quote> and inserting <quote>default

			 aversion</quote>.</text>

							</paragraph></section><section id="IDB75FC8E6BE584CB98468FD34734B156A"><enum>7383.</enum><header>Federal

			 Consolidation Loans</header><text display-inline="no-display-inline">Section

			 428C(b)(1) (20 U.S.C. 1078–3(b)(1)) is amended—</text>

							<paragraph id="ID6E42DA0A628B4A909AD0CC820FF6D76E"><enum>(1)</enum><text>in subparagraph

			 (E), by striking <quote>and</quote> after the semicolon;</text>

							</paragraph><paragraph id="IDDE1F179DF88C4A428EB783CC051B026A"><enum>(2)</enum><text>by redesignating

			 subparagraph (F) as subparagraph (G); and</text>

							</paragraph><paragraph id="IDDA880C1FAC7F4D159490297BB064551E"><enum>(3)</enum><text>by inserting

			 after subparagraph (E) the following:</text>

								<quoted-block id="ID21C5C9C1D22E408EBA8F15FD0FDFC9CB" style="OLC">

									<subparagraph id="ID18E855E5165E4099BF70E7489FE7EED6"><enum>(F)</enum><text>that the lender

				will disclose, in a clear and conspicuous manner, to borrowers who consolidate

				loans made under part E of this title—</text>

										<clause id="IDD87892CB79924D22A7A57330D979BE98"><enum>(i)</enum><text>that once the

				borrower adds the borrower’s Federal Perkins Loan to a Federal Consolidation

				Loan, the borrower will lose all interest-free periods that would have been

				available, such as those periods when no interest accrues on the Federal

				Perkins Loan while the borrower is enrolled in school at least half-time,

				during the grace period, and during periods when the borrower’s student loan

				repayments are deferred;</text>

										</clause><clause id="ID00B6D9E9148947D0841C7527BF62D84A"><enum>(ii)</enum><text>that the

				borrower will no longer be eligible for loan forgiveness of Federal Perkins

				Loans under any provision of section 465; and</text>

										</clause><clause id="ID99B0C79A64E349AAABE83F5AAFCFB09F"><enum>(iii)</enum><text>the occupations

				described in section 465(a)(2), individually and in detail, for which the

				borrower will lose eligibility for Federal Perkins Loan forgiveness;

				and</text>

										</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></section><section id="IDBD66B5F1B32F43F396D21B08A3C5655E"><enum>7384.</enum><header>Default

			 reduction Program</header><text display-inline="no-display-inline">Section 428F

			 (20 U.S.C. 1078–6) is amended by adding at the end the following:</text>

							<quoted-block id="ID9BCEE2719927470484769857EE8DF0EF" style="OLC">

								<subsection id="IDDE0C8983E85C4FCB9C01C01C81A620F2"><enum>(c)</enum><header>Financial and

				Economic Literacy</header><text>Where appropriate as determined by the

				institution of higher education in which a borrower is enrolled, each program

				described in subsection (b) shall include making available financial and

				economic education materials for the borrower, including making the materials

				available before, during, or after rehabilitation of a

				loan.</text>

								</subsection><after-quoted-block>.</after-quoted-block></quoted-block>

						</section><section id="IDBA4B95C6069246A3A2C8B931882B5085"><enum>7385.</enum><header>Requirements

			 for disbursement of student loans</header><text display-inline="no-display-inline">Section 428G(e) (20 U.S.C. 1078–7(e)) is

			 amended by striking <quote>, made to a student to cover the cost of attendance

			 at an eligible institution outside the United States</quote>.</text>

						</section><section id="ID4635F2602C3141F088D670131E079C2A"><enum>7386.</enum><header>Reports to

			 credit bureaus and institutions of higher education</header><text display-inline="no-display-inline">Section 430A(a) (20 U.S.C. 1080a(a)) is

			 amended—</text>

							<paragraph id="ID0D0CEDAD4DBA43E3BB005524E04EDCCA"><enum>(1)</enum><text>in the first

			 sentence, by striking <quote>with credit bureau organizations</quote> and

			 inserting <quote>with each consumer reporting agency that compiles and

			 maintains files on consumers on a nationwide basis (as defined in section

			 603(p) of the <act-name parsable-cite="FCRA">Fair Credit Reporting

			 Act</act-name> (15 U.S.C. 1681a(p))</quote>;</text>

							</paragraph><paragraph id="ID903D197BB9BC449DA2BA5CFFED606E61"><enum>(2)</enum><text>by redesignating

			 paragraphs (1), (2), and (3) as paragraphs (2), (4), and (5),

			 respectively;</text>

							</paragraph><paragraph id="ID588715F1B82641C9A1CDFEE8D8A634CE"><enum>(3)</enum><text>by inserting

			 before paragraph (2) (as redesignated by paragraph (2)), the following:</text>

								<quoted-block id="ID75B7C1814695491FBF09EC25A5D27510" style="OLC">

									<paragraph id="IDD49E33AEC5C5488EABF191749EB192C9"><enum>(1)</enum><text>the type of loan

				made, insured, or guaranteed under this

				title;</text>

									</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

							</paragraph><paragraph id="ID3B8CA3B9026F43399D13F4C0430CDCB8"><enum>(4)</enum><text>by inserting

			 after paragraph (2) (as redesignated by paragraph (2)), the following:</text>

								<quoted-block id="ID01F3FB26AFD14302BF7897DAEA9A382A" style="OLC">

									<paragraph id="ID93D7EDAFEDA84684BA29E0EDF4FA4689"><enum>(3)</enum><text>information

				concerning the repayment status of the loan, which information shall be

				included in the file of the borrower, except that nothing in this subsection

				shall be construed to affect any otherwise applicable provision of the

				<act-name parsable-cite="FCRA">Fair Credit Reporting Act</act-name> (15 U.S.C.

				1681 et

				seq.)</text>

									</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

							</paragraph><paragraph id="ID8B6C2EF629CA448D8DC3A482360174FB"><enum>(5)</enum><text>in paragraph (4)

			 (as redesignated by paragraph (2)), by striking <quote>and</quote> after the

			 semicolon;</text>

							</paragraph><paragraph id="IDEC19CAAA92C94B9DAA9BFE4CD6EDB30F"><enum>(6)</enum><text>in paragraph (5)

			 (as redesignated by paragraph (2)), by striking the period and inserting

			 <quote>; and</quote>; and</text>

							</paragraph><paragraph id="ID24A1339852024025887A467B3A9C434D"><enum>(7)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="ID1AE01884DEB44F4490AEB00C5902E8B7" style="OLC">

									<paragraph id="IDAC8DF8069B524355A7901812CA76EDD4"><enum>(6)</enum><text>any other

				information required to be reported by Federal

				law.</text>

									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></section><section id="ID41C7E676A3A44CBAAC1D74D9BBCDC037"><enum>7387.</enum><header>Common forms

			 and formats</header><text display-inline="no-display-inline">Section

			 432(m)(1)(D)(i) (20 U.S.C. 1082(m)(1)(D)(i)) is amended by adding at the end

			 the following: <quote>Unless otherwise notified by the Secretary, each

			 institution of higher education that participates in the program under this

			 part or part D may use a master promissory note for loans under this part and

			 part D.</quote>.</text>

						</section><section id="ID8D3A875B2D4748A38D79C7553543698A"><enum>7388.</enum><header>Student loan

			 information by eligible borrowers</header><text display-inline="no-display-inline">Section 433 (20 U.S.C. 1083) is amended by

			 adding at the end the following:</text>

							<quoted-block id="ID4F4AA2D54DA24C269D6C17B25A41D143" style="OLC">

								<subsection id="IDF73A2DA9195F48BA82324C23530BDD45"><enum>(f)</enum><header>Borrower

				Information and Privacy</header><text>Each entity participating in a program

				under this part that is subject to subtitle A of title V of the

				Gramm-Leach-Bliley Act (15 U.S.C. 6801 et seq.) shall only use, release,

				disclose, sell, transfer, or give student information, including the name,

				address, social security number, or amount borrowed by a borrower or a

				borrower’s parent, in accordance with the provisions of such subtitle.</text>

								</subsection><subsection id="ID3DDA0B56DAC64B26AFF38FEA50967BEF"><enum>(g)</enum><header>Loan Benefit

				Disclosures</header>

									<paragraph id="IDC99CF7FBDAD9438CA1F14DA4323DAB31"><enum>(1)</enum><header>In

				general</header><text>Each eligible lender, holder, or servicer of a loan made,

				insured, or guaranteed under this part shall provide the borrower with

				information on the loan benefit repayment options the lender, holder, or

				servicer offer, including information on reductions in interest rates—</text>

										<subparagraph id="ID411BEDA891144950B6FBFB49E960565B"><enum>(A)</enum><text>by repaying the

				loan by automatic payroll or checking account deduction;</text>

										</subparagraph><subparagraph id="ID8998182912F94245928170D9BF2712FD"><enum>(B)</enum><text>by completing a

				program of on-time repayment; and</text>

										</subparagraph><subparagraph id="ID91A1B7934FA3486582BB063FEE968E4A"><enum>(C)</enum><text>under any other

				interest rate reduction program.</text>

										</subparagraph></paragraph><paragraph id="IDBD71873B7E544CAEAEDF6BC238344FC1"><enum>(2)</enum><header>Information</header><text>Such

				borrower information shall include—</text>

										<subparagraph id="IDF6302407996C4883AD4455B3C1650E3D"><enum>(A)</enum><text>any limitations

				on such options;</text>

										</subparagraph><subparagraph id="ID8983E8EAA45B4C0B941DF67D3BA0A55F"><enum>(B)</enum><text>explicit

				information on the reasons a borrower may lose eligibility for such an

				option;</text>

										</subparagraph><subparagraph id="IDA559ADB727AD4F61A9BD826D5853FFFA"><enum>(C)</enum><text>examples of the

				impact the interest rate reductions will have on a borrower’s time for

				repayment and amount of repayment;</text>

										</subparagraph><subparagraph id="IDBAB2612D0F514909A53F925509AFED54"><enum>(D)</enum><text>upon the request

				of the borrower, the effect the reductions in interest rates will have with

				respect to the borrower’s payoff amount and time for repayment; and</text>

										</subparagraph><subparagraph id="ID6FA612BEA47143A3A998B0455A27E63E"><enum>(E)</enum><text>information on

				borrower recertification

				requirements.</text>

										</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

						</section><section id="ID8441D16BF6E1466DB83424CF98F62EA7"><enum>7389.</enum><header>Consumer

			 education information</header><text display-inline="no-display-inline">Part B

			 of title IV (20 U.S.C. 1071 et seq.) is amended by inserting after section 433

			 (20 U.S.C. 1083) the following:</text>

							<quoted-block id="ID526C84AFF3D14A19B6BEC5CF43B7226D" style="OLC">

								<section id="IDA5E7AAA95B1D45F48E880EB417DC8CA0"><enum>433A.</enum><header>Consumer

				education information</header><text display-inline="no-display-inline">Each

				guaranty agency participating in a program under this part working with the

				institutions of higher education served by such guaranty agency (or in the case

				of an institution of higher education that provides loans exclusively through

				part D, the institution working with a guaranty agency or with the Secretary)

				shall develop and make available a quality educational program and materials to

				provide training for students in budgeting and financial management, including

				debt management and other aspects of financial literacy, such as the cost of

				using very high interest loans to pay for postsecondary education, particularly

				as budgeting and financial management relates to student loan programs

				authorized by this title. Nothing in this section shall be construed to

				prohibit a guaranty agency from using an existing program or existing materials

				to meet the requirement of this section. The activities described in this

				section shall be considered default reduction activities for the purposes of

				section

				422.</text>

								</section><after-quoted-block>.</after-quoted-block></quoted-block>

						</section><section id="ID375683838082424083E1B9198240014E"><enum>7390.</enum><header>Definition of

			 eligible lender</header><text display-inline="no-display-inline">Section

			 435(d)(2) (20 U.S.C. 1085(d)(2)) is amended by striking subparagraph (F) and

			 inserting the following:</text>

							<quoted-block id="ID66BA3934704249ECB71D938667BD3FEB" style="OLC">

								<subparagraph id="IDB27D74EF4BD344EC8EFCEC646CD48983"><enum>(F)</enum><text>shall use the

				proceeds from special allowance payments, interest payments from borrowers,

				proceeds from the sale of a loan made, insured, or guaranteed under this part,

				and all other proceeds related to such a loan that are furnished to the

				eligible institution or any entity affiliated (directly or indirectly) with the

				eligible institution, for need based grant programs, except that such payments

				and proceeds may be used for reasonable reimbursement for direct administrative

				expenses;</text>

								</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</section><section id="ID7047EB56787F41899706A666FCC6573E"><enum>7390A.</enum><header>Repayment by

			 the Secretary of loans of bankrupt, deceased, or disabled borrowers; treatment

			 of borrowers attending schools that fail to provide a refund, attending closed

			 schools, or falsely certified as eligible to borrow</header><text display-inline="no-display-inline">Section 437 (20 U.S.C. 1087) is

			 amended—</text>

							<paragraph id="IDB9A1DAEC054E436296459594D87B16E9"><enum>(1)</enum><text>in the section

			 heading, by striking <quote><header-in-text>closed schools or falsely certified

			 as eligible to borrow</header-in-text></quote> and inserting

			 <quote><header-in-text>schools that fail to provide a refund, attending closed

			 schools, or falsely certified as eligible to borrow</header-in-text></quote>;

			 and</text>

							</paragraph><paragraph id="IDCA5AD313BD474151A28F43A7B0EBA11F"><enum>(2)</enum><text>in the first

			 sentence of subsection (c)(1), by inserting <quote>or was falsely certified as

			 a result of a crime of identity theft</quote> after <quote>falsely certified by

			 the eligible institution</quote>.</text>

							</paragraph></section></subchapter><subchapter id="ID5E6443AC93404EFCABE3CD7DD4248C38"><enum>C</enum><header>Federal

			 Work-Study Programs</header>

						<section id="IDC77BCB7D6EEF49A1A72B9875AEC3BE99"><enum>7391.</enum><header>Authorization

			 of appropriations</header><text display-inline="no-display-inline">Section

			 441(b) (42 U.S.C. 2751(b)) is amended by striking <quote>$1,000,000 for fiscal

			 year 1999</quote> and all that follows through the period and inserting

			 <quote>such sums as may be necessary for fiscal year 2006 and each of the 5

			 succeeding fiscal years.</quote>.</text>

						</section><section id="IDB5187E4399FF47C7ACB800D6C2CDE194"><enum>7392.</enum><header>Allowance for

			 books and supplies</header><text display-inline="no-display-inline">Section

			 442(c)(4)(D) (42 U.S.C. 2752(c)(4)(D)) is amended by striking

			 <quote>$450</quote> and inserting <quote>$600</quote>.</text>

						</section><section id="IDD49233573C8A4270800B28E601B01BBE"><enum>7393.</enum><header>Grants for

			 Federal work-study programs</header><text display-inline="no-display-inline">Section 443(b)(2) (42 U.S.C. 2753(b)(2)) is

			 amended—</text>

							<paragraph id="ID27806284BA754C309686828537B0D782"><enum>(1)</enum><text>by striking

			 subparagraph (A);</text>

							</paragraph><paragraph id="ID8127A2AB3FC64D34831E01A4415609A8"><enum>(2)</enum><text>by redesignating

			 subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively;

			 and</text>

							</paragraph><paragraph id="ID92AF801D0AB249E086C64AE59BEFCBFC"><enum>(3)</enum><text>in subparagraph

			 (A) (as redesignated by paragraph (2)), by striking “this subparagraph if” and

			 all that follows through “institution;” and inserting “this subparagraph

			 if—</text>

								<quoted-block id="ID181BA0A989BF4C69B51A08C42DE1A31D" style="OLC">

									<clause id="ID9F4EF6D66EBD452D814F47143E616422"><enum>(i)</enum><text>the Secretary

				determines that enforcing this subparagraph would cause hardship for students

				at the institution; or</text>

									</clause><clause id="IDD2B5C134AFFA4D6092CF226ED457A4B3"><enum>(ii)</enum><text>the institution

				certifies to the Secretary that 15 percent or more of its total full-time

				enrollment participates in community service activities described in section

				441(c) or tutoring and literacy activities described in subsection (d) of this

				section;</text>

									</clause><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></section><section id="IDC8CF962AF0354D4B9CB9332D4C08F266"><enum>7394.</enum><header>Job location

			 and development programs</header><text display-inline="no-display-inline">Section 446(a)(1) (42 U.S.C. 2756(a)(1)) is

			 amended by striking <quote>$50,000</quote> and inserting

			 <quote>$75,000</quote>.</text>

						</section><section id="ID3370AF1EEB0B49F29417E8F5E7B104DA"><enum>7395.</enum><header>Work

			 colleges</header><text display-inline="no-display-inline">Section 448 (42

			 U.S.C. 2756b) is amended—</text>

							<paragraph id="ID4E2F6F564A274B83B5E8894DBDB7BB0F"><enum>(1)</enum><text>in subsection

			 (b)—</text>

								<subparagraph id="ID29CC15C0EDD2432D884165991FA27A53"><enum>(A)</enum><text>in paragraph (1),

			 by striking <quote>under subsection (f)</quote> and inserting <quote>for this

			 section under section 441(b)</quote>; and</text>

								</subparagraph><subparagraph id="IDE93E50AFF00D48CEBA9857F575D94196"><enum>(B)</enum><text>in paragraph

			 (2)—</text>

									<clause id="IDF92FE5F8C89447428964B683A8CAB053"><enum>(i)</enum><text>in

			 the matter preceding subparagraph (A), by striking <quote>pursuant to

			 subsection (f)</quote> and inserting <quote>for this section under section

			 441(b)</quote>;</text>

									</clause><clause id="IDF42D1E1F82A34374B3C87908C5292AEB"><enum>(ii)</enum><text>by

			 redesignating subparagraphs (C) through (F) as subparagraphs (D) through (G),

			 respectively; and</text>

									</clause><clause id="ID338D3B9DB68E499A930D2F4427E4A236"><enum>(iii)</enum><text>by inserting

			 after subparagraph (B) the following:</text>

										<quoted-block id="IDEB5B89E8F3224B2DB0373CB769CA0E28" style="OLC">

											<subparagraph id="IDF6CA0999FD554130A9F5C4B7339010BD"><enum>(C)</enum><text>support existing

				and new model student volunteer community service projects associated with

				local institutions of higher education, such as operating drop-in resource

				centers that are staffed by students and that link people in need with the

				resources and opportunities necessary to become

				self-sufficient;</text>

											</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>

									</clause></subparagraph></paragraph><paragraph id="IDE3660AB93056465696BF50578E170978"><enum>(2)</enum><text>in subsection

			 (c), by striking <quote>by subsection (f) to use funds under subsection

			 (b)(1)</quote> and inserting <quote>for this section under section 441(b) or to

			 use funds under subsection (b)(1),</quote>; and</text>

							</paragraph><paragraph id="ID385BB17E3B764A079BBEDFA4F1E33DEF"><enum>(4)</enum><text>by striking

			 subsection (f).</text>

							</paragraph></section></subchapter><subchapter id="IDF6A6C0F396E64A24A06AF493EB584B7A"><enum>D</enum><header>William D. Ford

			 Federal Direct Loan Program</header>

						<section id="ID1296F43A75B24B1E8989592DE5D0B483"><enum>7401.</enum><header>Funds for

			 administrative expenses</header><text display-inline="no-display-inline">Section 458 (20 U.S.C. 1087h) is

			 amended—</text>

							<paragraph id="ID98722BB9C0A7465684ADB37C68178643"><enum>(1)</enum><text>in subsection

			 (a)(1), in the matter following subparagraph (B), by striking

			 <quote>$617,000,000</quote> and all that follows through the period and

			 inserting <quote>$904,000,000 in fiscal year 2006, $943,000,000 in fiscal year

			 2007, $983,000,000 in fiscal year 2008, $1,023,000,000 in fiscal year 2009,

			 $1,064,000,000 in fiscal year 2010, and $1,106,000,000 in fiscal year

			 2011.</quote>; and</text>

							</paragraph><paragraph id="ID85469DE13E03479BB8C0256386F9A867"><enum>(2)</enum><text>in subsection

			 (c)(1), by striking subparagraphs (A) through (E) and inserting the

			 following:</text>

								<quoted-block id="ID65E80AF87358469A9C4928FF3F7BA9D4" style="OLC">

									<subparagraph id="IDB83F9BE66F0646FA960AE771745E2B6D"><enum>(A)</enum><text>for fiscal year

				2006, shall not exceed $271,000,000;</text>

									</subparagraph><subparagraph id="IDF7CD559711EF429DAA4F4097E7D39882"><enum>(B)</enum><text>for fiscal year

				2007, shall not exceed $293,000,000;</text>

									</subparagraph><subparagraph id="IDF9DD003C8EDD49C988541F280AFDD377"><enum>(C)</enum><text>for fiscal year

				2008, shall not exceed $315,000,000;</text>

									</subparagraph><subparagraph id="ID6194752B9700405CB5D115EF6F3766D7"><enum>(D)</enum><text>for fiscal year

				2009, shall not exceed $336,000,000;</text>

									</subparagraph><subparagraph id="ID0C5395BC9794484AA12B906AF9218E32"><enum>(E)</enum><text>for fiscal year

				2010, shall not exceed $356,000,000; and</text>

									</subparagraph><subparagraph id="ID2ADC23EB38904E4C9AA43D07B165C1A2"><enum>(F)</enum><text>for fiscal year

				2011, shall not exceed

				$378,000,000.</text>

									</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></section></subchapter><subchapter id="ID12FF48711C70429C845FCC48F6A24673"><enum>E</enum><header>Federal Perkins

			 Loans</header>

						<section id="ID9E9DB3A3B4B94346BA0E514C1770F51D"><enum>7411.</enum><header>Program

			 authority</header><text display-inline="no-display-inline">Section 461(b) (20

			 U.S.C. 1087aa(b)) is amended—</text>

							<paragraph id="ID66360927233A4BDFAC8906F92089B607"><enum>(1)</enum><text>in paragraph (1),

			 by striking <quote>$250,000,000 for fiscal year 1999</quote> and all that

			 follows through the period and inserting <quote>such sums as may be necessary

			 for fiscal year 2006 and each of the 5 succeeding fiscal years.</quote>;

			 and</text>

							</paragraph><paragraph id="ID8C572109FF234EC8945F8854096F7880"><enum>(2)</enum><text>in paragraph

			 (2),—</text>

								<subparagraph id="IDD3AD3B29EDE94CCC9E7B4EC02ABD0C06"><enum>(A)</enum><text>by striking

			 <quote>fiscal year 2003</quote> and inserting <quote>fiscal year 2012</quote>;

			 and</text>

								</subparagraph><subparagraph id="ID759A31C1D1E9481D84772E63908FC8B3"><enum>(B)</enum><text>by striking

			 <quote>October 1, 2003</quote> and inserting <quote>October 1,

			 2012</quote>.</text>

								</subparagraph></paragraph></section><section id="ID941FAB71A3D64DBE9FAA596CF956F8E7"><enum>7412.</enum><header>Terms of

			 loans</header><text display-inline="no-display-inline">Section 464 (20 U.S.C.

			 1087dd) is amended—</text>

							<paragraph id="ID4F7ABACB0B1E400A828C5EB5589710CE"><enum>(1)</enum><text>in subsection

			 (b)(1), by striking <quote>for an additional loan under this part</quote> and

			 inserting <quote>for additional aid under this title</quote>; and</text>

							</paragraph><paragraph id="ID1B2C5B9DC50241DF97B7BA10459B3719"><enum>(2)</enum><text>in subsection

			 (e), by striking <quote>written</quote>.</text>

							</paragraph></section><section id="ID608734098ABE43158730FDF0028C07E0"><enum>7413.</enum><header>Cancellation

			 of loans for certain public service</header><text display-inline="no-display-inline">Section 465(a) (20 U.S.C. 1087ee(a)) is

			 amended—</text>

							<paragraph id="ID0161401EF9B548A2AA79BE2F9EE5BAB8"><enum>(1)</enum><text>in paragraph (

			 2)—</text>

								<subparagraph id="ID6F200E7DC3024FF5AAA8A65AEE03C60F"><enum>(A)</enum><text>in subparagraph

			 (B), by striking <quote><act-name parsable-cite="HSA">Head Start Act</act-name>

			 which</quote> and inserting <quote><act-name parsable-cite="HSA">Head Start

			 Act</act-name>, or in a prekindergarten or child care program that is licensed

			 or regulated by the State, that</quote>;</text>

								</subparagraph><subparagraph id="ID5B96463E81244B2FAFCC73218C136E9D"><enum>(B)</enum><text>in subparagraph

			 (H), by striking <quote>or</quote> after the semicolon;</text>

								</subparagraph><subparagraph id="IDD22A89B3F61248D0B340112796B4B92B"><enum>(C)</enum><text>in subparagraph

			 (I), by striking the period and inserting a semicolon; and</text>

								</subparagraph><subparagraph id="ID61E36F88AE7E4161A7C60BFB3F6F3D22"><enum>(D)</enum><text>by inserting

			 before the matter following subparagraph (I) (as amended by subparagraph (C))

			 the following:</text>

									<quoted-block id="ID841EB44B1F9F4DEBA14E4585C95934A0" style="OLC">

										<subparagraph id="ID03830CA400CE4476B78CCC1026D9F5D8" indent="up1"><enum>(J)</enum><text>as a full-time faculty member at a

				Tribal College or University, as that term is defined in section 316;</text>

										</subparagraph><subparagraph id="IDCE491F6BC8344F69A6B641828DC9260A" indent="up1"><enum>(K)</enum><text>as a librarian, if the librarian has a

				master’s degree in library science and is employed in—</text>

											<clause id="IDB08E2C2E127947D39EDD8986FD96CBF5"><enum>(i)</enum><text>an elementary school or secondary

				school that is eligible for assistance under title I of the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name>; or</text>

											</clause><clause id="IDAA62DA64DB2A4B03AC2B0DBE3B93E0E0"><enum>(ii)</enum><text>a public library that serves a

				geographic area that contains 1 or more schools eligible for assistance under

				title I of the <act-name parsable-cite="ESEA">Elementary and Secondary

				Education Act of 1965</act-name>; or</text>

											</clause></subparagraph><subparagraph id="ID3579E25D170346E9BEF8170CD401AA97" indent="up1"><enum>(L)</enum><text>as a full-time speech language

				therapist, if the therapist has a master’s degree and is working exclusively

				with schools that are eligible for assistance under title I of the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name>.</text>

										</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</subparagraph></paragraph><paragraph id="ID4E5675E20B2D426BACEADB6B266C9EA4"><enum>(2)</enum><text>in paragraph

			 (3)(A)(i), by striking <quote>or (I)</quote> and inserting <quote>(I), (J),

			 (K), or (L)</quote>.</text>

							</paragraph></section><section id="ID8F0B403B5208457DAD27AD94E0A46DF3"><enum>7414.</enum><header>Federal

			 capital contribution recovery</header><text display-inline="no-display-inline">Section 466 (20 U.S.C. 1087ff) is

			 amended—</text>

							<paragraph id="IDFBA6F944D4B44B7E8C1C7B8538F5D70A"><enum>(1)</enum><text>in subsection

			 (a)—</text>

								<subparagraph id="ID384375B93C874811B75250FA62267E4D"><enum>(A)</enum><text>by striking

			 <quote>2003</quote> each place it appears and inserting <quote>2011</quote>;

			 and</text>

								</subparagraph><subparagraph id="IDEB9D51AE7350407EA0AAC6E1FA0EF3AD"><enum>(B)</enum><text>by striking

			 <quote>2004</quote> and inserting <quote>2012</quote>; and</text>

								</subparagraph></paragraph><paragraph id="IDA159FDBD6793425982218535CA8E7426"><enum>(2)</enum><text>in subsection

			 (c), by striking <quote>2004</quote> and inserting <quote>2012</quote>.</text>

							</paragraph></section></subchapter><subchapter id="ID755D3CA4322741A8BC45BC27CB886E5D"><enum>F</enum><header>Need

			 Analysis</header>

						<section id="ID5363DD882AD74C26ADC785BFDF0F48A6"><enum>7421.</enum><header>Cost of

			 attendance</header><text display-inline="no-display-inline">Section 472 (20

			 U.S.C. 1087ll) is amended—</text>

							<paragraph id="ID0D8062F023AC417A9C1598D65BBF5E89"><enum>(1)</enum><text>by striking

			 paragraph (4) and inserting the following:</text>

								<quoted-block id="ID8BB237FCE14B482DB31E97B70F9FC12C" style="OLC">

									<paragraph id="ID9468A2F29448404A947CBAD880683839"><enum>(4)</enum><text>for less than

				half-time students (as determined by the institution), tuition and fees and an

				allowance for only—</text>

										<subparagraph id="ID929525F2B4DE41ECACBE0FBDC1676B2E"><enum>(A)</enum><text>books, supplies,

				and transportation (as determined by the institution);</text>

										</subparagraph><subparagraph id="IDBC856BDACF084B94A3A29D628C6355A2"><enum>(B)</enum><text>dependent care

				expenses (determined in accordance with paragraph (8)); and</text>

										</subparagraph><subparagraph id="IDB0CD51690C19464BA61BC1E587F21207"><enum>(C)</enum><text>room and board

				costs (determined in accordance with paragraph (3)), except that a student may

				receive an allowance for such costs under this subparagraph for not more than 3

				semesters or the equivalent, of which not more than 2 semesters or the

				equivalent may be

				consecutive;</text>

										</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

							</paragraph><paragraph id="ID9AE40E34F5C94EDAA399C0DE31329789"><enum>(2)</enum><text>in paragraph

			 (11), by striking <quote>and</quote> after the semicolon;</text>

							</paragraph><paragraph id="ID72A7CB8055CE447DABC07A84DC424787"><enum>(3)</enum><text>in paragraph

			 (12), by striking the period and inserting <quote>; and</quote>; and</text>

							</paragraph><paragraph id="ID63095056912E42A8B682A88871946255"><enum>(4)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="IDF9444B43343749B697297E938BCBCB82" style="OLC">

									<paragraph id="ID41F3EE9A2DF4421A91A6C96AD4ECD604"><enum>(13)</enum><text>at the option of

				the institution, for a student in a program requiring professional licensure or

				certification, the one time cost of obtaining the first professional

				credentials (as determined by the

				institution).</text>

									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></section><section id="ID3038CB5DBBA340BDAA663E13058504EB"><enum>7422.</enum><header>Discretion of

			 student financial aid administrators</header><text display-inline="no-display-inline">The third sentence of section 479A(a) (20

			 U.S.C. 1087tt(a)) is amended—</text>

							<paragraph id="IDEBCCBE94FCA84B5B9737D9753695E7BD"><enum>(1)</enum><text>by inserting

			 <quote>or an independent student</quote> after <quote>family member</quote>;

			 and</text>

							</paragraph><paragraph id="ID6BB9425E9BBD469EBDDA07A4D13432A2"><enum>(2)</enum><text>by inserting

			 <quote>a change in housing status that results in homelessness,</quote> after

			 <quote>under section 487,</quote>.</text>

							</paragraph></section><section id="ID226394844CE14FC8B582C0DEE2B97C17"><enum>7423.</enum><header>Definitions</header>

							<subsection id="ID31013664F7EC49BFB1DACD0A26A26892"><enum>(a)</enum><header>Definitions</header><text>Section

			 480 (20 U.S.C. 1087vv) is amended—</text>

								<paragraph id="ID2CB2721107E343E79302D2C1CE661671"><enum>(1)</enum><text>in subsection

			 (f)—</text>

									<subparagraph id="IDD02C03E7506F4008B204FF9956CF9586"><enum>(A)</enum><text>in paragraph (1),

			 by inserting <quote>qualified education benefits (except as provided in

			 paragraph (3)),</quote> after <quote>tax shelters,</quote>; and</text>

									</subparagraph><subparagraph id="ID5CEE7C0679F14F6885DD36204DFD2B6C"><enum>(B)</enum><text>by adding at the

			 end the following:</text>

										<quoted-block id="IDA8F6A878CE534342AF3E04163DD89F96" style="OLC">

											<paragraph id="IDDDCA0C6BB43544D1BD762D9EDD6BD40D" indent="up1"><enum>(3)</enum><text>A qualified education benefit shall

				not be considered an asset of a student for purposes of section 475.</text>

											</paragraph><paragraph id="IDF514B8933E024823AA01FE6B7FDF6F2C" indent="up1"><enum>(4)</enum><text>In determining the value of assets in

				a determination of need under this title (other than for subpart 4 of part A),

				the value of a qualified education benefit shall be—</text>

												<subparagraph id="IDDA02FF6F26A94DAA803F2CF50E77DF1D"><enum>(A)</enum><text>the refund value of any tuition

				credits or certificates purchased under a qualified education benefit;

				and</text>

												</subparagraph><subparagraph id="ID69A0A5B54B674EDF9A5A8A23D5B773B7"><enum>(B)</enum><text>in the case of a program in which

				contributions are made to an account that is established for the purpose of

				meeting the qualified higher education expenses of the designated beneficiary

				of the account, the current balance of such account.</text>

												</subparagraph></paragraph><paragraph id="ID1BF270DE2BF5483EADFB06835A8D465A" indent="up1"><enum>(5)</enum><text>In this subsection:</text>

												<subparagraph id="ID7F25FC27C5AE45DD8107F2AECAE67DF0"><enum>(A)</enum><header>Qualified education

				benefit</header><text>The term <term>qualified education benefit</term>

				means—</text>

													<clause id="IDB452882621C44C1884CF4E19777CFE04"><enum>(i)</enum><text>a qualified tuition program (as

				defined in section 529(b)(1)(A) of the Internal Revenue Code of 1986) or other

				prepaid tuition plan offered by a State; and</text>

													</clause><clause id="ID97FE108081CA4768B57E30A01090E3F5"><enum>(ii)</enum><text>a Coverdell education savings

				account (as defined in section 530(b)(1) of the Internal Revenue Code of

				1986).</text>

													</clause></subparagraph><subparagraph id="ID8F62D200E0D241C5BB96320AD89EF541"><enum>(B)</enum><header>Qualified higher education

				expenses</header><text>The term <term>qualified higher education

				expenses</term> has the meaning given the term in section 529(e) of the

				Internal Revenue Code of 1986.</text>

												</subparagraph></paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

									</subparagraph></paragraph><paragraph id="ID7D9AF3078B064BF6A4BFD0D3E88AD81B"><enum>(2)</enum><text>in subsection

			 (j)—</text>

									<subparagraph id="ID38A53FAA0E694D45A2270DBF29A8B68C"><enum>(A)</enum><text>in the subsection

			 heading, by striking <quote><header-in-text level="subsection">; Tuition

			 Prepayment Plans</header-in-text></quote>;</text>

									</subparagraph><subparagraph id="ID5EEC5A8B86BE43AB840E71713C826F64"><enum>(B)</enum><text>by striking

			 paragraph (2);</text>

									</subparagraph><subparagraph id="ID0FCD32E9C7CE4F3A89B2B6E0634DC03F"><enum>(C)</enum><text>by redesignating

			 paragraph (3) as paragraph (2); and</text>

									</subparagraph><subparagraph id="IDA779C9C3BFBD4DF3BEBBC3B6D9BDCD23"><enum>(D)</enum><text>by inserting

			 after paragraph (2) (as redesignated by subparagraph (C)) the following

			 paragraph:</text>

										<quoted-block id="IDF52AF1AB84614A16ADF49BFD9C9CF098" style="OLC">

											<paragraph id="IDAC37DF07AB254C91995D9561EE218AFC" indent="up1"><enum>(3)</enum><text>Notwithstanding paragraph (1) and

				section 472, assistance not received under this title may be excluded from both

				estimated financial assistance and cost of attendance, if that assistance is

				designated by the State providing that assistance to offset a specific

				component of the cost of attendance. If that assistance is excluded from

				estimated financial assistance or cost of attendance, that assistance shall be

				excluded from both

				calculations.</text>

											</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

									</subparagraph></paragraph><paragraph id="ID764FDDC3C0A34F26B6FF2EDE917AC756"><enum>(3)</enum><text>in subsection

			 (d)—</text>

									<subparagraph id="IDF06E158EC9B8420AA2EFFE11C93FDA55"><enum>(A)</enum><text>in paragraph (2),

			 by striking <quote>is an orphan or ward of the court</quote> and inserting

			 <quote>is an orphan, in foster care, or ward of the court or was in foster

			 care</quote>;</text>

									</subparagraph><subparagraph id="ID1D19EDFDD04846828F0BFEF45BB93797"><enum>(B)</enum><text>in paragraph (6),

			 by striking <quote>or</quote> after the semicolon;</text>

									</subparagraph><subparagraph id="IDFC5E88E7F1EA4E6FB2D80C7DF9953FE9"><enum>(C)</enum><text>by redesignating

			 paragraph (7) as paragraph (8); and</text>

									</subparagraph><subparagraph id="ID497DB703C82F4673994766CE54475783"><enum>(D)</enum><text>by inserting

			 after paragraph (6) the following:</text>

										<quoted-block id="ID85173F3E4B4E4815AEE48F2C70A096EB" style="OLC">

											<paragraph id="ID37E4AE722FE04B89BF364CA86FDB0980"><enum>(7)</enum><text>has been verified

				as both a homeless child or youth and an unaccompanied youth, as such terms are

				defined in section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C.

				11434a), during the school year in which the application for financial

				assistance is submitted, by—</text>

												<subparagraph id="IDE45EB6FBEB6B42C19AF2D1DF8B85EDA6"><enum>(A)</enum><text>a local

				educational agency liaison for homeless children and youths, as designated

				under section 722(g)(1)(J)(ii) of the McKinney-Vento Homeless Assistance Act

				(42 U.S.C. 11432(g)(1)(J)(ii));</text>

												</subparagraph><subparagraph id="ID0EF73A862DA84F43ADC0D904A056777A"><enum>(B)</enum><text>a director of a

				homeless shelter, transitional shelter, or independent living program;

				or</text>

												</subparagraph><subparagraph id="ID56D582894DA3437991CB7569C8E4F4B5"><enum>(C)</enum><text>a financial aid

				administrator;

				or</text>

												</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

									</subparagraph></paragraph></subsection><subsection id="ID3D94D4C01E8D468CAB27143C2EFFF70C"><enum>(b)</enum><header>Effective

			 Date</header><text>The amendments made by this section shall apply with respect

			 to determinations of need under part F of title IV for academic years beginning

			 on or after July 1, 2006.</text>

							</subsection></section></subchapter><subchapter id="ID1D74D9AF85DE4C95ADA338A866AB5405"><enum>G</enum><header>General

			 Provisions Relating to Student Assistance</header>

						<section id="ID2DBBA04EDEFA43578ADF35780E61E6E9"><enum>7431.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 481 (20 U.S.C. 1088) is

			 amended—</text>

							<paragraph id="ID91AC18145C494B7DAAFF2D8938EBF8FD"><enum>(1)</enum><text>in the second

			 sentence of subsection (a)(2), by inserting <quote>and that measures program

			 length in credit hours or clock hours</quote> after <quote>baccalaureate

			 degree</quote>; and</text>

							</paragraph><paragraph id="IDD346CE0CC18144FCBD483A2FE2BE464B"><enum>(2)</enum><text>in subsection

			 (b), by adding at the end the following:</text>

								<quoted-block id="ID75D9BB2AE9CC4826B259B6647D8E7D02" style="OLC">

									<paragraph id="IDE50F35E009A744BDBA449232244F6A98" indent="up1"><enum>(3)</enum><text>For purposes of this title, the term

				<term>eligible program</term> includes an instructional program that utilizes

				direct assessment of student learning or recognizes the direct assessment of

				student learning by others, if such assessment is consistent with the

				accreditation of the institution or program utilizing the results of the

				assessment, in lieu of credit hours or clock hours as the measure of student

				learning. In the case of a program being determined eligible for the first time

				under this paragraph, such determination shall be made by the Secretary before

				such program is considered to be an eligible

				program.</text>

									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></section><section id="IDA507FAFB83EB4756863236053658F462"><enum>7432.</enum><header>Compliance

			 calendar</header><text display-inline="no-display-inline">Section 482 (20

			 U.S.C. 1089) is amended by adding at the end the following:</text>

							<quoted-block id="IDBA1E19A87BCC4855B7C78C9622208E12" style="OLC">

								<subsection id="ID157D9A34C30F4C34B8C8EB9822C9A543"><enum>(a)</enum><header>Compliance

				Calendar</header><text>Prior to the beginning of each award year, the Secretary

				shall provide to institutions of higher education a list of all the reports and

				disclosures required under this Act. The list shall include—</text>

									<paragraph id="ID47E91F26F0B4412D96B49A9AEFDD816F"><enum>(1)</enum><text>the date each

				report or disclosure is required to be completed and to be submitted, made

				available, or disseminated;</text>

									</paragraph><paragraph id="ID993E81548D51417B855F4F3DB7E81597"><enum>(2)</enum><text>the required

				recipients of each report or disclosure;</text>

									</paragraph><paragraph id="IDB582941115CD4B0C8BF93CF71BE803F5"><enum>(3)</enum><text>any required

				method for transmittal or dissemination of each report or disclosure;</text>

									</paragraph><paragraph id="IDD7D9179687924C2E8E9398805EB81EB0"><enum>(4)</enum><text>a description of

				the content of each report or disclosure sufficient to allow the institution to

				identify the appropriate individuals to be assigned the responsibility for such

				report or disclosure;</text>

									</paragraph><paragraph id="IDF5EE2FA57AD847B49F642D22F289562F"><enum>(5)</enum><text>references to the

				statutory authority, applicable regulations, and current guidance issued by the

				Secretary regarding each report or disclosure; and</text>

									</paragraph><paragraph id="ID7C80C38FF34C407687BAD4E5BA22CA28"><enum>(6)</enum><text>any other

				information which is pertinent to the content or distribution of the report or

				disclosure.</text>

									</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

						</section><section id="ID127DE6FCC4844DFF939256EF861463B9"><enum>7433.</enum><header>Forms and

			 regulations</header><text display-inline="no-display-inline">Section 483 (20

			 U.S.C. 1090) is amended—</text>

							<paragraph id="ID4BDA5322B20A463F97A690DC47D8A72A"><enum>(1)</enum><text>by striking

			 subsections (a) and (b), and inserting the following:</text>

								<quoted-block id="ID8C2C0AA7EA43466E9D0161AB09DEBA8F" style="OLC">

									<subsection id="ID4880205ABE90452197E943D2E6B7C64A"><enum>(a)</enum><header>Common

				Financial Aid Form Development and Processing</header>

										<paragraph id="IDF733C46C04E349A797CF1CDED473211C"><enum>(1)</enum><header>In

				general</header><text>The Secretary, in cooperation with representatives of

				agencies and organizations involved in student financial assistance, shall

				produce, distribute, and process free of charge common financial reporting

				forms as described in this subsection to be used to determine the need and

				eligibility of a student for financial assistance under parts A through E of

				this title (other than under subpart 4 of part A). The forms shall be made

				available to applicants in both paper and electronic formats and shall be

				referred to (except as otherwise provided in this subsection) as the

				<quote>Free Application for Federal Student Aid</quote>, or

				<quote>FAFSA</quote>.</text>

										</paragraph><paragraph id="ID66E890D8CC20495EBCF9EA7D754197CC"><enum>(2)</enum><header>Paper

				format</header>

											<subparagraph id="ID5A8C851DFD8143AFBD2761B6EE27CDEF"><enum>(A)</enum><header>In

				general</header><text>Subject to subparagraph (C), the Secretary shall produce,

				distribute, and process common forms in paper format to meet the requirements

				of paragraph (1). The Secretary shall develop a common paper form for

				applicants who do not meet the requirements of or do not wish to use the

				process described in subparagraph (B).</text>

											</subparagraph><subparagraph id="ID5ADFC5E05C65450FB642B1FB575B2F34"><enum>(B)</enum><header>EZ

				fafsa</header>

												<clause id="ID863008C9A7F8458AA1D30BAC6DA68266"><enum>(i)</enum><header>In

				general</header><text>The Secretary shall develop and use a simplified paper

				application form, to be known as the <quote>EZ FAFSA</quote>, to be used for

				applicants meeting the requirements under section 479(c).</text>

												</clause><clause id="ID49DAEC4772734AFFB6C17252047F4056"><enum>(ii)</enum><header>Reduced data

				requirements</header><text>The EZ FAFSA shall permit an applicant to submit for

				purposes of determining financial need and eligibility, only the data elements

				required to make a determination of student eligibility and whether the

				applicant meets the requirements of section 479(c).</text>

												</clause><clause id="ID87873A6F4D1E4181BE314CA5E4C894C7"><enum>(iii)</enum><header>State

				data</header><text>The Secretary shall include on the EZ FAFSA such data items

				as may be necessary to award State financial assistance, as provided under

				paragraph (5), except the Secretary shall not include a State’s data if that

				State does not permit its applicants for State assistance to use the EZ

				FAFSA.</text>

												</clause><clause id="ID40F32A5FEB664663B4CA5C03DE0CCB63"><enum>(iv)</enum><header>Free

				availability and processing</header><text>The provisions of paragraph (6) shall

				apply to the EZ FAFSA, and the data collected by means of the EZ FAFSA shall be

				available to institutions of higher education, guaranty agencies, and States in

				accordance with paragraph (9).</text>

												</clause><clause id="IDEA7CE266DCE6482C9E3FFA2C581C100A"><enum>(v)</enum><header>Testing</header><text>The

				Secretary shall conduct appropriate field testing on the EZ FAFSA.</text>

												</clause></subparagraph><subparagraph id="ID76DBD460748B42DF851E5A67626286D4"><enum>(C)</enum><header>Phasing out the

				full paper form for students who do not meet the requirements of the ez

				fafsa</header>

												<clause id="IDD1E39C0F5D754E14B71915C81723C48B"><enum>(i)</enum><header>In

				general</header><text>The Secretary shall make all efforts to encourage all

				applicants to utilize the electronic forms described in paragraph (3).</text>

												</clause><clause id="IDEA32EE51D7254A2AB2459387FA9CE3AC"><enum>(ii)</enum><header>Phaseout of

				full paper fafsa</header><text>Not later than 5 years after the date of

				enactment of the Higher Education Amendments of 2005, to the extent

				practicable, the Secretary shall phase out the printing of the long paper form

				created under subparagraph (A) and used by applicants who do not meet the

				requirements of the EZ FAFSA described in subparagraph (B).</text>

												</clause><clause id="ID97FF5CD8144942C6AF273B6FA27BD903"><enum>(iii)</enum><header>Availability

				of full paper fafsa</header>

													<subclause id="ID9A6107AE3EB7453C92244D7663C26029"><enum>(I)</enum><header>In

				general</header><text>Both prior to and after the phaseout described in clause

				(ii), the Secretary shall maintain on the Internet printable versions of the

				paper forms described in subparagraphs (A) and (B).</text>

													</subclause><subclause id="IDA5E21CB4C775428A8B1F421E5651AF53"><enum>(II)</enum><header>Accessibility</header><text>The

				printable versions described in subclause (I) shall be made easily accessible

				and downloadable to students on the same Web site used to provide students with

				the common electronic forms described in paragraph (3).</text>

													</subclause><subclause id="ID86BE772FA5D848BEAB2682D0827042CB"><enum>(III)</enum><header>Submission of

				forms</header><text>The Secretary shall conduct a study to determine the

				feasibility of using downloaded forms to ensure sufficient quality to meet the

				processing requirements of this section. Following the completion of the study,

				the Secretary shall enable, to the extent practicable, students to submit a

				form described in this clause that is downloaded from the Internet and printed,

				in order to meet the filing requirements of this section and to receive

				financial assistance under this title.</text>

													</subclause></clause><clause id="ID70704891C0AB4FCFB91A216664D28386"><enum>(iv)</enum><header>Use of

				savings</header>

													<subclause id="IDA504533E75AB483DB145486FDEC584EE"><enum>(I)</enum><header>In

				general</header><text>The Secretary shall utilize any realized savings accrued

				by phasing out the full paper FAFSA and moving more applicants to the common

				electronic forms, to improve access to the electronic forms for applicants

				meeting the requirements of section 479(c).</text>

													</subclause><subclause id="ID79318FB78DCE4765A42A5C05209068E7"><enum>(II)</enum><header>Report</header><text>The

				Secretary shall report annually to the authorizing committees on—</text>

														<item id="IDA18F413BC5094897813C334EE322947F"><enum>(aa)</enum><text>the steps taken

				to improve access to the common electronic forms for applicants meeting the

				requirements of section 479(c); and</text>

														</item><item id="ID2387F6973A944F68A60815077B259509"><enum>(bb)</enum><text>the phaseout of

				the long common paper form described in subparagraph (A).</text>

														</item></subclause></clause></subparagraph></paragraph><paragraph id="ID324C5DD2E39549CEB0FF5AED583F41C9"><enum>(3)</enum><header>Electronic

				format</header>

											<subparagraph id="ID735287750D78444EB6FB63D4F2C1192B"><enum>(A)</enum><header>In

				general</header><text>The Secretary shall produce, distribute, and process

				common forms in electronic format and make such forms available through a

				broadly accessible website to meet the requirements of paragraph (1). The

				Secretary shall develop common electronic forms for applicants who do not meet

				the requirements of subparagraph (B). The Secretary shall include on the common

				electronic forms space for information that needs to be submitted from the

				applicant to be eligible for State financial assistance, as provided under

				paragraph (5), except the Secretary shall not require applicants to complete

				data required by any State other than the applicant’s State of residence. The

				Secretary shall use all available technology to ensure that a student using a

				common electronic form answers only the minimum number of questions

				necessary.</text>

											</subparagraph><subparagraph id="ID7423BFFE292A440E9D8753AF6DF0D317"><enum>(B)</enum><header>Simplified

				electronic applications</header>

												<clause id="ID8654B86AB2814AAB91492E4B1564FD65"><enum>(i)</enum><header>In

				general</header><text>The Secretary shall develop and use a simplified

				electronic application form to be used by applicants meeting the requirements

				of section 479(c) and an additional, separate simplified electronic application

				form to be used by applicants meeting the requirements under section

				479(b).</text>

												</clause><clause id="IDCF60B88753B84CFBBC84723097C778B4"><enum>(ii)</enum><header>Reduced data

				requirements</header><text>The simplified electronic application forms shall

				permit an applicant to submit for purposes of determining financial need and

				eligibility, only the data elements required to make a determination of student

				eligibility and whether the applicant meets the requirements of subsection (b)

				or (c) of section 479.</text>

												</clause><clause id="ID6B164C68C7DF40959648519CC391A352"><enum>(iii)</enum><header>State

				data</header><text>The Secretary shall include on the simplified electronic

				application forms such data items as may be necessary to award State financial

				assistance, as provided under paragraph (5), except the Secretary shall not

				require applicants to complete data required by any State other than the

				applicant’s State of residence and shall not include a State’s data if such

				State does not permit its applicants for State assistance to use the simplified

				electronic application form described in this subparagraph.</text>

												</clause><clause id="IDA524C8DE58BC43EAB0FE5050E62114DC"><enum>(iv)</enum><header>Free

				availability and processing</header><text>The provisions of paragraph (6) shall

				apply to the simplified electronic application forms, and the data collected by

				means of the simplified electronic application forms shall be available to

				institutions of higher education, guaranty agencies, and States in accordance

				with paragraph (9).</text>

												</clause><clause id="ID03EEBD7B6A204DD390D2B59335A81646"><enum>(v)</enum><header>Testing</header><text>The

				Secretary shall conduct appropriate field testing on the forms developed under

				this subparagraph.</text>

												</clause></subparagraph><subparagraph id="IDFCF719E338B243A9AC2B5CBC28A5543D"><enum>(C)</enum><header>Use of

				forms</header><text>Nothing in this subsection shall be construed to prohibit

				the use of the forms developed by the Secretary pursuant to this paragraph by

				an eligible institution, eligible lender, a guaranty agency, a State grant

				agency, a private computer software provider, a consortium of such entities, or

				such other entity as the Secretary may designate. Data collected by the forms

				shall be used only for the application, award, and administration of aid

				awarded under this title, State aid, or aid awarded by eligible institutions or

				such entities as the Secretary may designate. No data collected by such

				electronic version of the forms shall be used for making final aid awards under

				this title until such data have been processed by the Secretary or a contractor

				or designee of the Secretary, except as may be permitted under this

				title.</text>

											</subparagraph><subparagraph id="IDC875E59D960F4567A12A99FA2A3B728B"><enum>(D)</enum><header>Privacy</header><text>The

				Secretary shall ensure that data collection under this paragraph complies with

				section 552a of title 5, United States Code, and that any entity using the

				electronic version of the forms developed by the Secretary pursuant to this

				paragraph shall maintain reasonable and appropriate administrative, technical,

				and physical safeguards to ensure the integrity and confidentiality of the

				information, and to protect against security threats, or unauthorized uses or

				disclosures of the information provided on the electronic version of the

				forms.</text>

											</subparagraph><subparagraph id="ID535CCAEA8C0F47449708DAAA9EEE06CE"><enum>(E)</enum><header>Signature</header><text>Notwithstanding

				any other provision of this Act, the Secretary may permit an electronic form

				under this paragraph to be submitted without a signature, if a signature is

				subsequently submitted by the applicant or if the applicant uses a personal

				identification number provided by the Secretary under subparagraph (F).</text>

											</subparagraph><subparagraph id="ID4E021C712FB14B78B4CC2C60D82C0A68"><enum>(F)</enum><header>Personal

				identification numbers authorized</header><text>The Secretary is authorized to

				assign to applicants personal identification numbers—</text>

												<clause id="IDEDF5E3A305D64A7490F11B6C88E6F835"><enum>(i)</enum><text>to enable the

				applicants to use such numbers as a signature for purposes of completing a form

				under this paragraph; and</text>

												</clause><clause id="ID1EADA1BEF04F428E8F34B8FEC40701E9"><enum>(ii)</enum><text>for any purpose

				determined by the Secretary to enable the Secretary to carry out this

				title.</text>

												</clause></subparagraph></paragraph><paragraph id="ID9AC7B1EA77904E8D9DD27ADDF3AB94F4"><enum>(4)</enum><header>Streamlined

				reapplication process</header>

											<subparagraph id="IDD0A054A56284491982B5C5ABE50254CB"><enum>(A)</enum><header>In

				general</header><text>The Secretary shall develop streamlined reapplication

				forms and processes, including both paper and electronic reapplication

				processes, consistent with the requirements of this subsection, for an

				applicant who applies for financial assistance under this title in the next

				succeeding academic year subsequent to an academic year in which such applicant

				applied for financial assistance under this title.</text>

											</subparagraph><subparagraph id="ID352E8B99D9CD4581836D3829270CAC4B"><enum>(B)</enum><header>Mechanisms for

				reapplication</header><text>The Secretary shall develop appropriate mechanisms

				to support reapplication.</text>

											</subparagraph><subparagraph id="ID3B572201407740BD8128BB97C35DF9A8"><enum>(C)</enum><header>Identification

				of updated data</header><text>The Secretary shall determine, in cooperation

				with States, institutions of higher education, and agencies and organizations

				involved in student financial assistance, the data elements that can be updated

				from the previous academic year’s application.</text>

											</subparagraph><subparagraph id="IDB4B1B1CF38C14156826C570F033EE9D4"><enum>(D)</enum><header>Reduced data

				authorized</header><text>Nothing in this title shall be construed as limiting

				the authority of the Secretary to reduce the number of data elements required

				of reapplicants.</text>

											</subparagraph><subparagraph id="IDC2485E10E7924DE5A5D2340ECA11A9C5"><enum>(E)</enum><header>Zero family

				contribution</header><text>Applicants determined to have a zero family

				contribution pursuant to section 479(c) shall not be required to provide any

				financial data in a replication form, except that which is necessary to

				determine eligibility under such section.</text>

											</subparagraph></paragraph><paragraph id="IDED25F6DB94DD4DDD9E91FDC46BCB0ABE"><enum>(5)</enum><header>State

				requirements</header>

											<subparagraph id="ID1ED98E8C669344AAAFEF63F84296404C"><enum>(A)</enum><header>In

				general</header><text>Except as provided in paragraphs (2)(B)(iii), (3)(A), and

				(3)(B)(iii), the Secretary shall include on the forms developed under this

				subsection, such State-specific data items as the Secretary determines are

				necessary to meet State requirements for need-based State aid. Such items shall

				be selected in consultation with State agencies in order to assist in the

				awarding of State financial assistance in accordance with the terms of this

				subsection, except as provided in paragraphs (2)(B)(iii), (3)(A), and

				(3)(B)(iii). The number of such data items shall not be less than the number

				included on the form for the 2005–2006 award year unless a State notifies the

				Secretary that the State no longer requires those data items for the

				distribution of State need-based aid.</text>

											</subparagraph><subparagraph id="ID8829CB1855004922B3C1FAFFFBBED433"><enum>(B)</enum><header>Annual

				review</header><text>The Secretary shall conduct an annual review process to

				determine which data items the States require to award need-based State

				aid.</text>

											</subparagraph><subparagraph id="ID3566B283D12F4178B3CCCACBC37A1542"><enum>(C)</enum><header>Encourage use

				of forms</header><text>The Secretary shall encourage States to take such steps

				as are necessary to encourage the use of simplified application forms,

				including those described in paragraphs (2)(B) and (3)(B), for applicants who

				meet the requirements of subsection (b) or (c) of section 479.</text>

											</subparagraph><subparagraph id="ID5CE7B08B2A41428C9A2FE5DD0889A157"><enum>(D)</enum><header>Federal

				register notice</header><text>The Secretary shall publish, on an annual basis,

				a notice in the Federal Register requiring States to inform the

				Secretary—</text>

												<clause id="ID117A91742651465E81E145E615C2FAEF"><enum>(i)</enum><text>if the State

				plans to use the FAFSA to collect data to determine eligibility for State

				need-based financial aid;</text>

												</clause><clause id="ID7E4933CAFE2E47389496BD1CBC2D802D"><enum>(ii)</enum><text>of the

				State-specific data that the State requires for delivery of State need-based

				financial aid; and</text>

												</clause><clause id="ID27D745DD3E4A4FE59B1E2C0E78247D27"><enum>(iii)</enum><text>if the State

				agency is unable to permit applicants to utilize the simplified application

				forms described in paragraph (2)(B) or (3)(B).</text>

												</clause></subparagraph><subparagraph id="IDF6A864F5050C4C6C86536A965A92C08E"><enum>(E)</enum><header>State

				notification to the secretary</header>

												<clause id="ID898E53D06FA44984905ECD0A3E20F64B"><enum>(i)</enum><header>In

				general</header><text>Each State agency shall notify the Secretary—</text>

													<subclause id="ID76C5680F5E484A9FB37848D5A09C73B1"><enum>(I)</enum><text>whether the State

				permits an applicant to file a form described in paragraph (2)(B) or (3)(B) for

				purposes of determining eligibility for State need-based financial aid;

				and</text>

													</subclause><subclause id="ID8F46233033DF48F4A5AB4D9E9934A99C"><enum>(II)</enum><text>of the

				State-specific data that the State requires for delivery of State need-based

				financial aid.</text>

													</subclause></clause><clause id="IDAFE2E4DF4FC24918837C2C5718E06728"><enum>(ii)</enum><header>Acceptance of

				forms</header><text>If a State does not permit an applicant to file a form

				described in paragraph (2)(B) or (3)(B) for purposes of determining eligibility

				for State need-based financial aid, then the State shall notify the Secretary

				if it is not permitted to do so because of State law or agency policy. The

				notification shall include an acknowledgment that State-specific questions will

				not be included on a form described in paragraph (2)(B) or (3)(B).</text>

												</clause><clause id="IDE2E2F7F46DE94A4FA37A7ACDDE018096"><enum>(iii)</enum><header>Lack of

				notification by the state</header><text>If a State does not notify the

				Secretary pursuant to clause (i), the Secretary shall—</text>

													<subclause id="IDF437EB2937DE43829E31BD3735A28FDD"><enum>(I)</enum><text>permit residents

				of that State to complete simplified application forms under paragraphs (2)(B)

				and (3)(B); and</text>

													</subclause><subclause id="ID1B5A6AD990314B68B84F3C380067B088"><enum>(II)</enum><text>not require any

				resident of such State to complete any data previously required by that State

				under this section.</text>

													</subclause></clause></subparagraph><subparagraph id="IDC4C72F8CF1D74E5DB32193DA61A0289B"><enum>(F)</enum><header>Restriction</header><text>The

				Secretary shall not require applicants to complete any financial or

				non-financial data that are not required by the applicant’s State, except as

				may be required for applicants who use the paper forms described in

				subparagraphs (A) and (B) of paragraph (2).</text>

											</subparagraph></paragraph><paragraph id="ID689914AB405548A5ACB0265E5B3F12E4"><enum>(6)</enum><header>Charges to

				students and parents for use of forms prohibited</header><text>The common

				financial reporting forms prescribed by the Secretary under this subsection

				shall be produced, distributed, and processed by the Secretary, and no parent

				or student shall be charged a fee by the Secretary, a contractor, a third-party

				servicer or private software provider, or any other public or private entity

				for the collection, processing, or delivery of financial aid through the use of

				such forms. The need and eligibility of a student for financial assistance

				under parts A through E (other than under subpart 4 of part A) may be

				determined only by using a form developed by the Secretary pursuant to this

				subsection. No student may receive financial assistance under parts A through E

				(other than under subpart 4 of part A), except by use of a form developed by

				the Secretary pursuant to this subsection. No data collected on a paper or

				electronic form or other document that the Secretary determines was created to

				replace a form prescribed under this subsection and therefore violates the

				integrity of a simplified and free financial aid application process and for

				which a fee is charged shall be used to complete the form prescribed under this

				subsection. No person, commercial entity, or other entity shall request,

				obtain, or utilize an applicant’s personal identification number assigned under

				paragraph (3)(F) for purposes of submitting an application on an applicant’s

				behalf.</text>

										</paragraph><paragraph id="ID7E377F79DA654FF3BBF15A338E3E3E2D"><enum>(7)</enum><header>Application

				processing cycle</header><text>The Secretary shall—</text>

											<subparagraph id="ID1092668BA4DB4BBCAEAD6C25EC2DC151"><enum>(A)</enum><text>enable students

				to submit forms created under this subsection in order to meet the filing

				requirements of this section and in order to receive financial assistance from

				programs under this title; and</text>

											</subparagraph><subparagraph id="IDBD82170D3CCE437780DFEAA4D6DDD1C3"><enum>(B)</enum><text>enable students

				to submit forms created under this subsection and initiate the processing of

				such forms under this subsection, as early as practicable prior to January 1 of

				the student’s planned year of enrollment.</text>

											</subparagraph></paragraph><paragraph id="IDDE2B9F3B09834D5D8A5C04167C38A33E"><enum>(8)</enum><header>Early

				estimates</header><text>The Secretary shall permit an applicant to complete a

				form described in this subsection in the years prior to enrollment in order to

				obtain from the Secretary a nonbinding estimate of the applicant’s expected

				family contribution, as defined in section 473. Such applicant shall be

				permitted to update information submitted on a form described in this

				subsection using the process required under paragraph (4).</text>

										</paragraph><paragraph id="IDFAAA3E226D1D409580D95FAFCB3B2DB5"><enum>(9)</enum><header>Distribution of

				data</header><text>Institutions of higher education, guaranty agencies, and

				States shall receive, without charge, the data collected by the Secretary using

				the form developed pursuant to this subsection for the purposes of processing

				loan applications and determining need and eligibility for institutional and

				State financial aid awards. Entities designated by institutions of higher

				education, guaranty agencies, or States to receive such data shall be subject

				to all the requirements of this section, unless such requirements are waived by

				the Secretary.</text>

										</paragraph><paragraph id="ID53933BF8800D477787EB2D3804528298"><enum>(10)</enum><header>Third party

				servicers and private software providers</header><text>To the extent

				practicable and in a timely manner, the Secretary shall provide, to private

				organizations and consortia that develop software used by institutions of

				higher education for the administration of funds under this title, all the

				necessary specifications that the organizations and consortia must meet for the

				software the organizations and consortia develop, produce, and distribute

				(including any diskette, modem, or network communications) which are so used.

				The specifications shall contain record layouts for required data. The

				Secretary shall develop in advance of each processing cycle an annual schedule

				for providing such specifications. The Secretary, to the extent practicable,

				shall use means of providing such specifications, including conferences and

				other meetings, outreach, and technical support mechanisms (such as training

				and printed reference materials). The Secretary shall, from time to time,

				solicit from such organizations and consortia means of improving the support

				provided by the Secretary.</text>

										</paragraph><paragraph id="ID0C7F66E49B2E4AFFB463B415263EC711"><enum>(11)</enum><header>Parent’s

				social security number and birth date</header><text>The Secretary is authorized

				to include on the form developed under this subsection space for the social

				security number and birth date of parents of dependent students seeking

				financial assistance under this

				title.</text>

										</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>

							</paragraph><paragraph id="IDF501AEC1FC654C259BF3B6F57D7AAAB8"><enum>(2)</enum><text>by redesignating

			 subsections (c) through (e) as subsections (b) through (d),

			 respectively;</text>

							</paragraph><paragraph id="IDFCE2E47ED52C4853AFDF47769985CADE"><enum>(3)</enum><text>in subsection (c)

			 (as redesignated by paragraph (2)), by striking <quote>that is

			 authorized</quote> and all that follows through the period at the end and

			 inserting <quote>or other appropriate provider of technical assistance and

			 information on postsecondary educational services that is authorized under

			 section 663(a) of the Individuals with Disabilities Education Act. Not later

			 than 2 years after the date of enactment of the Higher Education Amendments of

			 2005, the Secretary shall test and implement, to the extent practicable, a

			 toll-free telephone based system to permit applicants who meet the requirements

			 of 479(c) to submit an application over such system.</quote>; and</text>

							</paragraph><paragraph id="IDD1CD676F757747F486437BF9A5286E68"><enum>(4)</enum><text>by striking

			 subsection (d) (as redesignated by paragraph (2)) and inserting the

			 following:</text>

								<quoted-block id="ID015FD1C0AD084A26A65A65368B11D21A" style="OLC">

									<subsection id="IDDF9A82437B7B4A46A68A8F5C9CBF73FB"><enum>(d)</enum><header>Assistance in

				Preparation of Financial Aid Application</header>

										<paragraph id="IDB2747B77E2BA42A98762FB4D4DB1DF37"><enum>(1)</enum><header>Preparation

				authorized</header><text>Notwithstanding any provision of this Act, an

				applicant may use a preparer for consultative or preparation services for the

				completion of the common financial reporting forms described in subsection (a)

				if the preparer satisfies the requirements of this subsection.</text>

										</paragraph><paragraph id="ID8E2E2F687DDE4650A2CD6DD27CAF0D4C"><enum>(2)</enum><header>Preparer

				identification</header><text>Any common financial reporting form required to be

				made under this title shall include the name, signature, address or employer’s

				address, social security number or employer identification number, and

				organizational affiliation of the preparer of such common financial reporting

				form.</text>

										</paragraph><paragraph id="IDB701E93943104F38815EE6897680BFE0"><enum>(3)</enum><header>Additional

				requirements</header><text>A preparer that provides consultative or preparation

				services pursuant to this subsection shall—</text>

											<subparagraph id="IDF8E3C9DD12CE46278D6C8CF266C150E0"><enum>(A)</enum><text>clearly inform

				individuals upon initial contact (including advertising in clear and

				conspicuous language on the website of the preparer, including by providing a

				link directly to the website described in subsection (a)(3), if the preparer

				provides such services through a website) that the common financial reporting

				forms that are required to determine eligibility for financial assistance under

				parts A through E (other than subpart 4 of part A) may be completed for free

				via paper or electronic forms provided by the Secretary;</text>

											</subparagraph><subparagraph id="ID5BA16062DC094748BCA5A2FFA978F0F2"><enum>(B)</enum><text>refrain from

				producing or disseminating any form other than the forms produced by the

				Secretary under subsection (a); and</text>

											</subparagraph><subparagraph id="IDD673F7662A8949B0B84936108AA9F8AE"><enum>(C)</enum><text>not charge any

				fee to any individual seeking such services who meets the requirements of

				subsection (b) or (c) of section 479.</text>

											</subparagraph></paragraph><paragraph id="IDF482D883FA214BD4BC55DA2D0CBBA296"><enum>(4)</enum><header>Special

				rule</header><text>Nothing in this Act shall be construed to limit preparers of

				the common financial reporting forms required to be made under this title who

				meet the requirements of this subsection from collecting source information

				from a student or parent, including Internal Revenue Service tax forms, in

				providing consultative and preparation services in completing the

				forms.</text>

										</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></section><section id="ID60E6D1A403144C9582870DAFA2C40EED"><enum>7434.</enum><header>Student

			 eligibility</header><text display-inline="no-display-inline">Section 484 (20

			 U.S.C. 1091) is amended—</text>

							<paragraph id="ID49D0641616C24074B23083F9B728D680"><enum>(1)</enum><text>in subsection

			 (d), by adding at the end the following:</text>

								<quoted-block id="ID1E32758FAA0044689395F8CC464F6E44" style="OLC">

									<paragraph id="ID4E00FF65E2DE4E80AEA2E2E1BD8F81E7"><enum>(4)</enum><text>The student shall

				be determined by the institution of higher education as having the ability to

				benefit from the education or training offered by the institution of higher

				education, upon satisfactory completion of 6 credit hours or the equivalent

				coursework that are applicable toward a degree or certificate offered by the

				institution of higher

				education.</text>

									</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

							</paragraph><paragraph id="IDE9938263DA1C4DDBB98E1E1AEBE36293"><enum>(2)</enum><text>by striking

			 subsection (l) and inserting the following:</text>

								<quoted-block id="ID72DCF0DCA11A438CA1E441EF93E46D9B" style="OLC">

									<subsection id="ID76156F256F7449B596CB9744A964F68D"><enum>(l)</enum><header>Courses Offered

				Through Distance Education</header>

										<paragraph id="ID7722CD2AB8CE41B5BA2913C63D56E345"><enum>(1)</enum><header>Relation to

				correspondence courses</header>

											<subparagraph id="IDA744DE62D86C48F0AE18955BC3CA139E"><enum>(A)</enum><header>In

				general</header><text>A student enrolled in a course of instruction at an

				institution of higher education that is offered principally through distance

				education and leads to a recognized certificate, or associate, baccalaureate,

				or graduate degree, conferred by such institution, shall not be considered to

				be enrolled in correspondence courses.</text>

											</subparagraph><subparagraph id="ID21CD0700684A41A5B3DE9B542FF14755"><enum>(B)</enum><header>Exception</header><text>An

				institution of higher education referred to in subparagraph (A) shall not

				include an institution or school described in section 3(3)(C) of the Carl D.

				Perkins Vocational and Technical Education Act of 1998.</text>

											</subparagraph></paragraph><paragraph id="IDCE96AE0C3D18499F95CBD4306B38689F"><enum>(2)</enum><header>Restriction or

				reductions of financial aid</header><text>A student’s eligibility to receive

				grants, loans, or work assistance under this title shall be reduced if a

				financial aid officer determines under the discretionary authority provided in

				section 479A that distance education results in a substantially reduced cost of

				attendance to such student.</text>

										</paragraph><paragraph id="IDBB8FF6E5ED34460F99E6D0E7262718B6"><enum>(3)</enum><header>Special

				rule</header><text>For award years prior to the date of enactment of this

				subsection, the Secretary shall not take any compliance, disallowance, penalty,

				or other action against a student or an eligible institution when such action

				arises out of such institution’s prior award of student assistance under this

				title if the institution demonstrates to the satisfaction of the Secretary that

				its course of instruction would have been in conformance with the requirements

				of this subsection.</text>

										</paragraph><paragraph id="ID667272EB93144D5C8B56B2798DA82723"><enum>(4)</enum><header>Definition</header><text>In

				this subsection, the term <term>distance education</term> has the meaning given

				the term in section 102.</text>

										</paragraph></subsection><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</paragraph><paragraph id="ID6A1C049E896148A894F0D9DEA24BF224"><enum>(3)</enum><text>in subsection

			 (r)—</text>

								<subparagraph id="ID23BE73F3AEC440CBABEC985EBD922426"><enum>(A)</enum><text>in the matter

			 preceding the table, by inserting <quote>of a controlled substance, while such

			 student is enrolled in an institution of higher education and receiving

			 financial assistance under this title,</quote> after <quote>the

			 possession</quote>;</text>

								</subparagraph><subparagraph id="IDFDF3B8D46FD2480B91ECB060442572E0"><enum>(B)</enum><text>in the column

			 heading of the first table, by inserting <quote><header-in-text>while the

			 student is enrolled in an institution of higher education and receiving

			 financial assistance under this title</header-in-text></quote> after

			 <quote><header-in-text>possession of a controlled

			 substance</header-in-text></quote>; and</text>

								</subparagraph><subparagraph id="ID58362E11B4A346D0AC3C8A96D37B3015"><enum>(C)</enum><text>by redesignating

			 paragraph (3) as paragraph (4); and</text>

								</subparagraph><subparagraph id="ID2E2390D890284A48A08AE4EF0923699C"><enum>(D)</enum><text>by inserting

			 after paragraph (2) the following:</text>

									<quoted-block id="ID1F50855D6AE546159E4262D7982F21F6" style="OLC">

										<paragraph id="ID0050D88CF4FC48D0AB77D3935D78B761"><enum>(2)</enum><header>Interaction

				with fafsa</header><text>The Secretary shall not require a student to provide

				information regarding the student’s possession of a controlled substance on the

				Free Application for Federal Student Aid described in section

				483(a).</text>

										</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

								</subparagraph></paragraph></section><section id="ID3D57213CFE2B4C5B94C28DF8AD6ED096"><enum>7435.</enum><header>Statute of

			 limitations and State court judgments</header><text display-inline="no-display-inline">Section 484A (20 U.S.C. 1091a) is

			 amended—</text>

							<paragraph id="ID8C563125A0514439B0DA815B6E35E7F6"><enum>(1)</enum><text>in subsection

			 (b)—</text>

								<subparagraph id="ID5F5FDA154E9E4355B55EE5728F10CF3D"><enum>(A)</enum><text>in paragraph (1),

			 by striking <quote>and</quote> after the semicolon;</text>

								</subparagraph><subparagraph id="ID37E4360B936047A6AAE18B9AAAA8D039"><enum>(B)</enum><text>in paragraph (2),

			 by striking the period and inserting <quote>; and</quote>; and</text>

								</subparagraph><subparagraph id="IDD914681CFD4443A6AD3ADB66203AD9C6"><enum>(C)</enum><text>by adding at the

			 end the following:</text>

									<quoted-block id="IDDD687B82CA414A99BEC95655C8470C95" style="OLC">

										<paragraph id="ID455925EAF1AD48F69F9D5E0644CD6092"><enum>(3)</enum><text>in collecting any

				obligation arising from a loan made under part E of this title, an institution

				of higher education that has an agreement with the Secretary pursuant to

				section 463(a) shall not be subject to a defense raised by any borrower based

				on a claim of infancy.</text>

										</paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</subparagraph></paragraph><paragraph id="IDD0898098C7B448EEBAAD42E27ACDE7EA"><enum>(2)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="ID6C7BFB73074040F6B31EAF3A28A0FA00" style="OLC">

									<subsection id="ID6F37044D380E4857819606FDC47E4DFA"><enum>(d)</enum><header>Special

				Rule</header><text>This section shall not apply in the case of a student who is

				deceased or to a deceased student’s estate or the estate of such student’s

				family. If a student is deceased, then the student’s estate or the estate of

				the student’s family shall not be required to repay any financial assistance

				under this title , including interest paid on the student’s behalf, collection

				costs, or other charges specified in this

				title.</text>

									</subsection><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></section><section id="IDCE7225D3F8944B5B995EEF618AA29EA8"><enum>7436.</enum><header>Institutional

			 refunds</header><text display-inline="no-display-inline">Section 484B (20

			 U.S.C. 1091B) is amended—</text>

							<paragraph id="IDBAD70FC099B44A32B81E7828037D90A7"><enum>(1)</enum><text>in subsection

			 (a)—</text>

								<subparagraph id="ID20CE108FE7FF46E7A2796FC7DF30B639"><enum>(A)</enum><text>in the matter

			 preceding clause (i) of paragraph (2)(A), by striking <quote>a leave of</quote>

			 and inserting <quote>1 or more leaves of</quote>; and</text>

								</subparagraph><subparagraph id="ID471F628559194FB3A86B1EA941A48950"><enum>(B)</enum><text>in paragraph

			 (3)(C)(i), by striking <quote>grant or loan assistance under this title</quote>

			 and inserting <quote>grant assistance under subparts 1 and 3 of part A, or loan

			 assistance under parts B, D, and E,</quote>;</text>

								</subparagraph></paragraph><paragraph id="ID4BC961BAFB1C4FA09260B72DDBA3B4E1"><enum>(2)</enum><text>in subsection

			 (b), by adding at the end the following:</text>

								<quoted-block id="ID9EE37EE1F66844A5B77AF7580AC1C4EA" style="OLC">

									<paragraph id="IDC51741F1998342F0926C9A8C4B52AF00"><enum>(4)</enum><header>Time

				frame</header><text>Not later than 45 days after the date of an institution’s

				determination that a student withdrew from the institution, the institution

				shall—</text>

										<subparagraph id="IDDDF54F1831E84CFE8A609A8D794DE461"><enum>(A)</enum><text>return the amount

				required under paragraph (1);</text>

										</subparagraph><subparagraph id="ID9D0F57219D4948D293B3B43FFD16A800"><enum>(B)</enum><text>notify the

				student of the applicable requirements regarding the overpayment of grant and

				loan assistance and</text>

										</subparagraph><subparagraph id="IDFFE12AB08984470894E933214015B143"><enum>(C)</enum><text>notify the

				student of the student’s eligibility for post-withdrawal

				disbursements.</text>

										</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

							</paragraph><paragraph id="IDA6065DD7BA5942CFA18E1B85BC9A8ABB"><enum>(3)</enum><text>in subsection

			 (c)(2), by striking “may determine the appropriate withdrawal date.” and

			 inserting “may determine—</text>

								<subparagraph id="IDE1CEADCB5CE6466091D47AB426266B58"><enum>(A)</enum><text>the appropriate

			 withdrawal date; and</text>

									<quoted-block id="IDA8BD6EC19659453EB0F6D7D1DA21CD35" style="OLC">

										<subparagraph id="IDAB68E77C1B2C4FF48ED31B876CF9F103"><enum>(B)</enum><text>that the

				requirements of this section do not apply to the

				student.</text>

										</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</subparagraph></paragraph><paragraph id="ID820C565EFBB74B3EBFC536335BB4FF02"><enum>(4)</enum><text>in subsection

			 (d)(2), by striking <quote>clock hours—</quote> and all that follows through

			 the period and inserting <quote>clock hours scheduled to be completed by the

			 student in that period as of the day the student withdrew.</quote>.</text>

							</paragraph></section><section id="ID92B344A07A9B412B870F73D9D06601D0"><enum>7437.</enum><header>Institutional

			 and financial assistance for students</header><text display-inline="no-display-inline">Section 485 (20 U.S.C. 1092) is

			 amended—</text>

							<paragraph id="IDB852F4FDB69A4D6AB668C57EC5B22FAA"><enum>(1)</enum><text>in subsection

			 (a)—</text>

								<subparagraph id="IDD7FC450F757D4C30A21D37572D6174F6"><enum>(A)</enum><text>in paragraph

			 (1)—</text>

									<clause id="ID9E3954015D84481495A8F80E5EA0539F"><enum>(i)</enum><text>in

			 subparagraph (N), by striking <quote>and</quote> after the semicolon;</text>

									</clause><clause id="IDFF67B5EF02F5404CB09D7BE4E7E967CC" indent="up2"><enum>(ii)</enum><text>in subparagraph (O), by striking the

			 period and inserting a semicolon; and</text>

									</clause><clause id="ID44794AA0D5F14B6EB722F80F15401635"><enum>(iii)</enum><text>by adding at

			 the end the following:</text>

										<quoted-block id="ID932A6F2D197A48FDA18CF039A96F833B" style="OLC">

											<subparagraph id="ID0D55A21AE85F4337A1933F29523B63E8" indent="up1"><enum>(P)</enum><text>student body diversity at the

				institution, including information on the percentage of enrolled, full-time

				students who are—</text>

												<clause id="ID1571109C6D854594840154E485987935"><enum>(i)</enum><text>male;</text>

												</clause><clause id="IDABA77A807B924BC3B3EE4DE913A87931"><enum>(ii)</enum><text>female;</text>

												</clause><clause id="ID513FE14BE460425598E10D253883E932"><enum>(iii)</enum><text>from a low-income background;

				and</text>

												</clause><clause id="IDEA32CF3286924D37AEBA5EEDDE92C3A7"><enum>(iv)</enum><text>a self-identified member of a

				major racial or ethnic group;</text>

												</clause></subparagraph><subparagraph id="ID25F46ED8CCFE44338E613A92F8D103A8"><enum>(Q)</enum><text>the placement in

				employment of, and types of employment obtained by, graduates of the

				institution’s degree or certificate programs, gathered from such sources as

				alumni surveys, student satisfaction surveys, the National Survey of Student

				Engagement, the Community College Survey of Student Engagement, State data

				systems, or other relevant sources; and</text>

											</subparagraph><subparagraph id="ID6D89AD24D8AD4F90AF33F219ACBDEF93"><enum>(R)</enum><text>the types of

				graduate and professional education in which graduates of the institution’s

				4-year degree programs enrolled, gathered from such sources as alumni surveys,

				student satisfaction surveys, the National Survey of Student Engagement, State

				data systems, or other relevant

				sources.</text>

											</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>

									</clause></subparagraph><subparagraph id="IDD037A9643DCC49A4B0E92E6D784973A2"><enum>(B)</enum><text>by striking

			 paragraph (4) and inserting the following:</text>

									<quoted-block id="IDDD7DB966F2B94843849DAEF53FF50648" style="OLC">

										<paragraph id="ID014A79CE2A92478CA8BBECC6BB36E5FD"><enum>(4)</enum><text>For purposes of

				this section, institutions may—</text>

											<subparagraph id="ID3C6CDC29A37447EDA4A4446508137B36"><enum>(A)</enum><text>exclude from the

				information disclosed in accordance with subparagraph (L) of paragraph (1) the

				completion or graduation rates of students who leave school to serve in the

				Armed Forces, on official church missions, or with a recognized foreign aid

				service of the Federal Government; or</text>

											</subparagraph><subparagraph id="IDF0B1F66BFCDC45CDB6EED7AC696E93E0"><enum>(B)</enum><text>in cases where

				the students described in subparagraph (A) represent 20 percent or more of the

				certificate- or degree-seeking, full-time, undergraduate students at the

				institution, the institution may recalculate the completion or graduation rates

				of such students by excluding from the calculation described in paragraph (3)

				the time period such students were not enrolled due to their service in the

				Armed Forces, on official church missions, or with a recognized foreign aid

				service of the Federal Government.</text>

											</subparagraph></paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</subparagraph><subparagraph id="IDD9059744541B44A9AB9C9D1FE729CBC3"><enum>(C)</enum><text>by adding at the

			 end the following:</text>

									<quoted-block id="IDF6F51A76FD6F45A6B011726DBC54A46F" style="OLC">

										<paragraph id="ID82C0C21AE0CB41B7B2CEC05F235F28BE" indent="up1"><enum>(7)</enum><text>The information disclosed under

				subparagraph (L) of paragraph (1), or reported under subsection (e), shall

				include information disaggregated by gender, by each major racial and ethnic

				subgroup, and by low-income background status as measured by Federal Pell Grant

				eligibility, if the number of students in such subgroup or with such status is

				sufficient to yield statistically reliable information and reporting would not

				reveal personally identifiable information about an individual student. If such

				number is not sufficient for such purposes, then the institution shall note

				that the institution enrolled too few of such students to so disclose or report

				with confidence and

				confidentiality.</text>

										</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

								</subparagraph></paragraph><paragraph id="ID840FEFB1E07C4350BFB1AB532CD16CCF"><enum>(2)</enum><text>in subsection

			 (b), by adding at the end the following:</text>

								<quoted-block id="ID065CBE0A7AE04ED69AB44BFB9CAE0B81" style="OLC">

									<paragraph id="IDD381CD44F7484BC199AEA8940FFC4348"><enum>(3)</enum><text>Each eligible

				institution shall, during the exit interview required by this subsection,

				provide to a borrower of a loan made under part B, D, or E a clear and

				conspicuous notice describing the general effects of using a consolidation loan

				to discharge the borrower’s student loans, including—</text>

										<subparagraph id="ID854D58A9FDD24538B976FE71F02A42A1"><enum>(A)</enum><text>the effects of

				consolidation on total interest to be paid, fees to be paid, and length of

				repayment;</text>

										</subparagraph><subparagraph id="ID02D267D34E1D48FF9D0C0F6BA95FBA0E"><enum>(B)</enum><text>the effects of

				consolidation on a borrower’s underlying loan benefits, including loan

				forgiveness, cancellation, and deferment;</text>

										</subparagraph><subparagraph id="IDB0A3CC57594F4EF882AA9E9ED0D05345"><enum>(C)</enum><text>the ability for

				the borrower to prepay the loan, pay on a shorter schedule, and to change

				repayment plans, and that borrower benefit programs may vary among different

				loan holders;</text>

										</subparagraph><subparagraph id="ID12E1A14A58C74B8B84F2673956F15C2D"><enum>(D)</enum><text>the tax benefits

				for which the borrower may be eligible; and</text>

										</subparagraph><subparagraph id="IDD7278E6C6F8F472181BAD925F4AFC4B8"><enum>(E)</enum><text>the consequences

				of

				default.</text>

										</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

							</paragraph><paragraph id="ID98EB4EF8413D4B94B91B7764E8D55361"><enum>(3)</enum><text>in subsection

			 (d)(2)—</text>

								<subparagraph id="ID93A4E3055F1945A6B95DA92E0653778E"><enum>(A)</enum><text>by inserting

			 <quote>grant assistance, as well as State</quote> after <quote>describing

			 State</quote>; and</text>

								</subparagraph><subparagraph id="ID1679D65669E848A4859E459C711C2A2E"><enum>(B)</enum><text>by inserting

			 <quote>and other means, including through the Internet</quote> before the

			 period at the end;</text>

								</subparagraph></paragraph><paragraph id="IDC69C21FAB1B04E6E86A54A480E17D111"><enum>(4)</enum><text>in subsection

			 (e), by striking paragraph (3) and inserting the following:</text>

								<quoted-block id="IDAF3723FCB2DB4C178D053FCCC64F3B2D" style="OLC">

									<paragraph id="IDCBA9C636B83B4F7B9527993588E16C66"><enum>(3)</enum><text>For purposes of

				this subsection, institutions may—</text>

										<subparagraph id="ID66636E64AA3E4F34BEB6AAF1361BC8E4"><enum>(A)</enum><text>exclude from the

				reporting requirements under paragraphs (1) and (2) the completion or

				graduation rates of students and student athletes who leave school to serve in

				the Armed Forces, on official church missions, or with a recognized foreign aid

				service of the Federal Government; or</text>

										</subparagraph><subparagraph id="ID0DA8E240A02F4219B167E156AF7C132F"><enum>(B)</enum><text>in cases where

				the students described in subparagraph (A) represent 20 percent or more of the

				certificate- or degree-seeking, full-time, undergraduate students at the

				institution, the institution may calculate the completion or graduation rates

				of such students by excluding from the calculations described in paragraph (1)

				the time period such students were not enrolled due to their service in the

				Armed Forces, on official church missions, or with a recognized foreign aid

				service of the Federal

				Government.</text>

										</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

							</paragraph><paragraph id="ID7EFA10D1577047068D483A9A72203E9B"><enum>(5)</enum><text>in the matter

			 preceding subparagraph (A) of subsection (f)(1), by inserting <quote>, other

			 than a foreign institution of higher education,</quote> after <quote>under this

			 title</quote>; and</text>

							</paragraph><paragraph id="ID3B469D75D4F849F196027D01C52AF2FC"><enum>(6)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="IDBBDC7FB92030451686FB35A033A7A5A7" style="OLC">

									<subsection id="ID9E4CBF21F8A14B178553702A1D6ACFE3"><enum>(h)</enum><header>Transfer of

				Credit Policies</header>

										<paragraph id="ID49A069CF07454F32B4CD7E182D8CA170"><enum>(1)</enum><header>Disclosure</header><text>Each

				institution of higher education participating in any program under this title

				shall publicly disclose in a readable and comprehensible manner the

				institution’s transfer of credit policies which shall include a statement of

				the institution’s current transfer of credit policies that includes, at a

				minimum—</text>

											<subparagraph id="ID502F10BC764F4FA7AE15AB651C85D11D"><enum>(A)</enum><text>a statement that

				transfer of credit shall not be denied solely on the basis of the agency or

				association that accredited such other institution of higher education, if that

				agency or association is recognized by the Secretary pursuant to section 496 to

				be a reliable authority as to the quality of the education or training

				offered;</text>

											</subparagraph><subparagraph id="ID5D49C4847C1D45A198E642DEA55CD89F"><enum>(B)</enum><text>a list of

				institutions of higher education with which the institution has established an

				articulation agreement; and</text>

											</subparagraph><subparagraph id="ID0DE6B3A9314744879067C348F1900D35"><enum>(C)</enum><text>the percentage of

				students at the institution who successfully transfer academic credits, updated

				on an annual basis.</text>

											</subparagraph></paragraph><paragraph id="ID9F52C7582DF84027BE4AAAA02322893E"><enum>(2)</enum><header>Rule of

				construction</header><text>Nothing in this subsection shall be construed

				to—</text>

											<subparagraph id="IDFBB94403CFED41D2ADBD277702BB20B9"><enum>(A)</enum><text>authorize an

				officer or employee of the Department to exercise any direction, supervision,

				or control over the curriculum, program of instruction, administration, or

				personnel of any institution of higher education, or over any accrediting

				agency or association;</text>

											</subparagraph><subparagraph id="ID6BC40548941F44B5BC6FC029073526A8"><enum>(B)</enum><text>limit the

				application of the General Education Provisions Act; or</text>

											</subparagraph><subparagraph id="IDDEE807C6264B484CAF33C0E0FD34D0E5"><enum>(C)</enum><text>create any

				legally enforceable right on the part of a student to require an institution of

				higher education to accept a transfer of credit from another

				institution.</text>

											</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></section><section id="ID05B9F4F4BF924F0894582C06D98C7B61"><enum>7438.</enum><header>National

			 Student Loan Data System</header><text display-inline="no-display-inline">Section 485B(a) (20 U.S.C. 1092b(a)) is

			 amended—</text>

							<paragraph id="IDDEEF7DAE862745488C2EA250F157EB4A"><enum>(1)</enum><text>by redesignating

			 paragraphs (6) through (10) as paragraphs (7) through (11),

			 respectively;</text>

							</paragraph><paragraph id="ID762655CC888D46EA929D5041C587E2EA"><enum>(2)</enum><text>in paragraph (5)

			 (as added by Public Law 101–610), by striking <quote>effectiveness.</quote> and

			 inserting <quote>effectiveness;</quote>; and</text>

							</paragraph><paragraph id="ID42D3DF4E0A114D418046328943654822"><enum>(3)</enum><text>by redesignating

			 paragraph (5) (as added by Public Law 101–234) as paragraph (6).</text>

							</paragraph></section><section id="ID92F783C3DBBB4D418C85D06A22B3D4E7"><enum>7439.</enum><header>Early

			 awareness of financial aid eligibility</header><text display-inline="no-display-inline">Part G of title IV (20 U.S.C. 1088 et seq.)

			 is amended by inserting after section 485C (20 U.S.C. 1092c) the

			 following:</text>

							<quoted-block id="ID71E5DC6B10A8499594009A71D6B99404" style="OLC">

								<section id="ID1CF04F33AA1345DABC330E3A4CC11617"><enum>485D.</enum><header>Early

				awareness of financial aid eligibility</header>

									<subsection id="IDA6E8C162E3BF43B4A4D3BBA611B893FB"><enum>(a)</enum><header>In

				General</header><text>The Secretary shall implement, in cooperation with

				States, institutions of higher education, secondary schools, middle schools,

				early intervention and outreach programs under this title, other agencies and

				organizations involved in student financial assistance and college access,

				public libraries, community centers, employers, and businesses, a comprehensive

				system of early financial aid information in order to provide students and

				families with early information about financial aid and early estimates of such

				students’ eligibility for financial aid from multiple sources. Such system

				shall include the activities described in subsections (b) and (c).</text>

									</subsection><subsection id="IDD613E72A4DA94555BA4271B7F06CDBB4"><enum>(b)</enum><header>Communication

				of Availability of Aid and Aid Eligibility</header>

										<paragraph id="ID79E1E0569000440783CB3C778F931BDE"><enum>(1)</enum><header>Students who

				receive benefits</header><text>The Secretary shall—</text>

											<subparagraph id="IDEF10D8119E6A46978BA34A269ACEE2B3"><enum>(A)</enum><text>make special

				efforts to notify students who receive or are eligible to receive benefits

				under Federal means-tested benefit programs (including the school lunch program

				established under the Richard B. Russell <act-name parsable-cite="NSLA">National School Lunch Act</act-name> (42 U.S.C. 1751 et

				seq.), the food stamp program under the <act-name parsable-cite="FSA77">Food

				Stamp Act of 1977</act-name> (7 U.S.C. 2011 et seq.), and other such programs

				as determined by the Secretary) of such students’ potential eligibility for a

				maximum Federal Pell Grant under subpart 1 of part A; and</text>

											</subparagraph><subparagraph id="ID45094960774F47B78FBED66C1CC7DAAA"><enum>(B)</enum><text>disseminate such

				informational materials as the Secretary determines necessary.</text>

											</subparagraph></paragraph><paragraph id="IDE84D86A2D42D4442A243F9EFE9C11B40"><enum>(2)</enum><header>Middle school

				students</header><text>The Secretary, in cooperation with States, institutions

				of higher education, other organizations involved in college access and student

				financial aid, middle schools, and programs under this title that serve middle

				school students, shall make special efforts to notify students and their

				parents of the availability of financial aid under this title and, in

				accordance with subsection (c), shall provide nonbinding estimates of grant and

				loan aid that an individual may be eligible for under this title upon

				completion of an application form under section 483(a). The Secretary shall

				ensure that such information is as accurate as possible and that such

				information is provided in an age-appropriate format using dissemination

				mechanisms suitable for students in middle school.</text>

										</paragraph><paragraph id="IDDF40C809DF1C43DF85E70B07A6BC2305"><enum>(3)</enum><header>Secondary

				school students</header><text>The Secretary, in cooperation with States,

				institutions of higher education, other organizations involved in college

				access and student financial aid, secondary schools, and programs under this

				title that serve secondary school students, shall make special efforts to

				notify students in secondary school and their parents, as early as possible but

				not later than such students’ junior year of secondary school, of the

				availability of financial aid under this title and, in accordance with

				subsection (c), shall provide nonbinding estimates of the amounts of grant and

				loan aid that an individual may be eligible for under this title upon

				completion of an application form under section 483(a). The Secretary shall

				ensure that such information is as accurate as possible and that such

				information is provided in an age-appropriate format using dissemination

				mechanisms suitable for students in secondary school.</text>

										</paragraph><paragraph id="IDA2EE96E9357D409080ADE220390CAFA9"><enum>(4)</enum><header>Adult

				learners</header><text>The Secretary, in cooperation with States, institutions

				of higher education, other organizations involved in college access and student

				financial aid, employers, workforce investment boards and public libraries,

				shall make special efforts to provide individuals who would qualify as

				independent students, as defined in section 480(d), with information regarding

				the availability of financial aid under this title and, in accordance with

				subsection (c), with nonbinding estimates of the amounts of grant and loan aid

				that an individual may be eligible for under this title upon completion of an

				application form under section 483(a). The Secretary shall ensure that such

				information—</text>

											<subparagraph id="ID8B685C649E114E74831ADDC848A5A2F2"><enum>(A)</enum><text>is as accurate as

				possible;</text>

											</subparagraph><subparagraph id="ID22201B3CD6EF4893A28C59BE8B30B31F"><enum>(B)</enum><text>includes specific

				information regarding the availability of financial aid for students qualified

				as independent students, as defined in section 480(d); and</text>

											</subparagraph><subparagraph id="IDA1186DC294124CCFA1D4D5DEF715D2B5"><enum>(C)</enum><text>uses

				dissemination mechanisms suitable for adult learners.</text>

											</subparagraph></paragraph><paragraph id="ID1F6E77D1E984487AAE5E8768D1A89BD2"><enum>(5)</enum><header>Public

				awareness campaign</header><text>Not later than 2 years after the date of

				enactment of the Higher Education Amendments of 2005, the Secretary, in

				coordination with States, institutions of higher education, early intervention

				and outreach programs under this title, other agencies and organizations

				involved in student financial aid, local educational agencies, public

				libraries, community centers, businesses, employers, employment services,

				workforce investment boards, and movie theaters, shall implement a public

				awareness campaign in order to increase national awareness regarding the

				availability of financial aid under this title. The public awareness campaign

				shall disseminate accurate information regarding the availability of financial

				aid under this title and shall be implemented, to the extent practicable, using

				a variety of media, including print, television, radio and the Internet. The

				Secretary shall design and implement the public awareness campaign based upon

				relevant independent research and the information and dissemination strategies

				found most effective in implementing paragraphs (1) through (4).</text>

										</paragraph></subsection><subsection id="ID17743249AB5A4CA89215EAABF5EB0B0E"><enum>(c)</enum><header>Availability of

				Nonbinding Estimates of Federal Financial Aid Eligibility</header>

										<paragraph id="IDA45B5EB657AB420C87EE6D0AA4E4ACC8"><enum>(1)</enum><header>In

				general</header><text>The Secretary, in cooperation with States, institutions

				of higher education, and other agencies and organizations involved in student

				financial aid, shall provide, via a printed form and the Internet or other

				electronic means, the capability for individuals to determine easily, by

				entering relevant data, nonbinding estimates of amounts of grant and loan aid

				an individual may be eligible for under this title upon completion and

				processing of an application and enrollment in an institution of higher

				education.</text>

										</paragraph><paragraph id="IDE33CF79BD0F843ACB91DFEDB4B339744"><enum>(2)</enum><header>Data

				elements</header><text>The Secretary, in cooperation with States, institutions

				of higher education, and other agencies and organizations involved in student

				financial aid, shall determine the data elements that are necessary to create a

				simplified form that individuals can use to obtain easily nonbinding estimates

				of the amounts of grant and loan aid an individual may be eligible for under

				this title.</text>

										</paragraph><paragraph id="ID70D053DE4D804AFF97BFE07A52EA44BF"><enum>(3)</enum><header>Qualification

				to use simplified application</header><text>The capability provided under this

				paragraph shall include the capability to determine whether the individual is

				eligible to submit a simplified application form under paragraph (2)(B) or

				(3)(B) of section

				483(a).</text>

										</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

						</section><section id="IDD81E90D8BEB84AF793BFCC50F0C2A2F2"><enum>7440.</enum><header>College

			 access initiative</header><text display-inline="no-display-inline">Part G of

			 title IV (20 U.S.C. 1088 et seq.) is further amended by inserting after section

			 485D (as added by section 7439) the following:</text>

							<quoted-block id="IDDC36547A5C58412CB723B4A41893C0D8" style="OLC">

								<section id="ID7F005817B51A4266A018DB25780AF76A"><enum>485E.</enum><header>College

				access initiative</header>

									<subsection id="ID192777374E3D4CD8B9B6774415B4E535"><enum>(a)</enum><header>State-by-State

				Information</header><text>The Secretary shall direct each guaranty agency with

				which the Secretary has an agreement under section 428(c) to provide to the

				Secretary the information necessary for the development of Internet Web links

				and access for students and families to a comprehensive listing of the

				postsecondary education opportunities programs, publications, Internet Web

				sites, and other services available in the States for which such agency serves

				as the designated guarantor.</text>

									</subsection><subsection id="ID589ABECD041747A195A45C47BB2E365F"><enum>(b)</enum><header>Guaranty Agency

				Activities</header>

										<paragraph id="IDB4AD2A3D7CB4430B804A3CAB58C182E9"><enum>(1)</enum><header>Plan and

				activity required</header><text>Each guaranty agency with which the Secretary

				has an agreement under section 428(c) shall develop a plan, and undertake the

				activity, necessary to gather the information required under subsection (a) and

				to make such information available to the public and to the Secretary in a form

				and manner prescribed by the Secretary.</text>

										</paragraph><paragraph id="IDD98A73EAF76449C6AFD1C49C64CCDF9E"><enum>(2)</enum><header>Activities</header><text>Each

				guaranty agency shall undertake such activities as are necessary to promote

				access to postsecondary education for students through providing information on

				college planning, career preparation, and paying for college. The guaranty

				agency shall publicize such information and coordinate such activities with

				other entities that provide or distribute such information in the States for

				which such guaranty agency serves as the designated guarantor.</text>

										</paragraph><paragraph id="ID864FE430E48841A3A3D84C7B8B5A7FAA"><enum>(3)</enum><header>Funding</header><text>The

				activities required by this section may be funded from the guaranty agency’s

				Operating Fund established pursuant to section 422B and to the extent funds

				remain, from earnings on the restricted account established pursuant to section

				422(h)(4).</text>

										</paragraph><paragraph id="IDA94730477D74485E875C8CB78B7819F2"><enum>(4)</enum><header>Rule of

				construction</header><text>Nothing in this subsection shall require a guaranty

				agency to duplicate any efforts currently underway that meet the requirements

				of this subsection.</text>

										</paragraph></subsection><subsection id="ID22D1225EC34744AD8CA85AA13F636FE4"><enum>(c)</enum><header>Access to

				Information</header>

										<paragraph id="ID684E0A6FCB11418C8B4127318FD88BA6"><enum>(1)</enum><header>Secretary’s

				responsibility</header><text>The Secretary shall ensure the availability of the

				information provided, by the guaranty agencies in accordance with this section,

				to students, parents, and other interested individuals, through Web links or

				other methods prescribed by the Secretary.</text>

										</paragraph><paragraph id="ID7F8D708FDF1B4A54915F4433E9CD664A"><enum>(2)</enum><header>Guaranty agency

				responsibility</header><text>The guaranty agencies shall ensure that the

				information required by this section is available without charge in printed

				format for students and parents requesting such information.</text>

										</paragraph><paragraph id="ID57DD88F6D2EC40CB8D25D7417C120574"><enum>(3)</enum><header>Publicity</header><text>Not

				later than 270 days after the date of enactment of the Higher Education

				Amendments Act of 2005, the Secretary and guaranty agencies shall publicize the

				availability of the information required by this section, with special emphasis

				on ensuring that populations that are traditionally underrepresented in

				postsecondary education are made aware of the availability of such

				information.</text>

										</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

						</section><section id="IDFA15D74105FB422696C6B897B18A45E6"><enum>7441.</enum><header>Program

			 participation agreements</header><text display-inline="no-display-inline">Section 487 (20 U.S.C. 1094) is

			 amended—</text>

							<paragraph id="ID90A0D62C27AF4755ACD5A2592300DB37"><enum>(1)</enum><text>in subsection

			 (a)—</text>

								<subparagraph id="IDC13355DF188E4828A134FCFF9067B974"><enum>(A)</enum><text>in paragraph

			 (23), by adding at the end the following:</text>

									<quoted-block id="ID65848469000C4D1E88B0324C0D59C4E0" style="OLC">

										<subparagraph id="ID31295EA5F47142F192D86450025E6D3A"><enum>(D)</enum><text>An institution

				shall be considered in compliance with the requirements of subparagraph (A) for

				any student to whom the institution electronically transmits a message

				containing a voter registration form acceptable for use in the State in which

				the institution is located, or an Internet address where such a form can be

				downloaded, if such information is in an electronic message devoted solely to

				voter registration.</text>

										</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</subparagraph><subparagraph id="ID69A531830C9F4CC4BB1B6F17BAA47920"><enum>(B)</enum><text>by adding at the

			 end the following:</text>

									<quoted-block id="IDC2D21FE33FEE426F9A250349CE2F8867" style="OLC">

										<paragraph id="IDB16866342DB2473CB5104992FE890283"><enum>(24)</enum><text>The institution

				will, as calculated in accordance with subsection (g)(1), have not less than 10

				percent of its revenues from sources other than funds provided under this

				title, or will be subject to the sanctions described in subsection

				(g)(2).</text>

										</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

								</subparagraph></paragraph><paragraph id="ID8D5812434E7A427089801E520D65A257"><enum>(2)</enum><text>in subsection

			 (c)(1)(A)(i), by inserting <quote>, except that the Secretary may modify the

			 requirements of this clause with regard to an institution outside the United

			 States</quote> before the semicolon at the end;</text>

							</paragraph><paragraph id="IDF510F7A280E74732A0FA77A91E2BEE09"><enum>(3)</enum><text>by redesignating

			 subsections (d) and (e) as subsection (e) and (f), respectively;</text>

							</paragraph><paragraph id="IDA8FBA7616BB045AFB8F460440F52C307"><enum>(4)</enum><text>by inserting

			 after subsection (c) the following:</text>

								<quoted-block id="IDAA571CA1B0F741228956AD01E3364AA0" style="OLC">

									<subsection id="IDECFAE2C164DC468EB2E65669A91AC2FB"><enum>(d)</enum><header>Institutional

				Requirements for Teach-Outs</header>

										<paragraph id="ID4C9D09762BA5472A928CBBE9F06B837A"><enum>(1)</enum><header>In

				general</header><text>In the event the Secretary initiates the limitation,

				suspension, or termination of the participation of an institution of higher

				education in any program under this title under the authority of subsection

				(c)(1)(F) or initiates an emergency action for termination under the authority

				of subsection (c)(1)(G) and its prescribed regulations, the Secretary shall

				require that institution to prepare a teach-out plan for submission to the

				institution’s accrediting agency or association in compliance with section

				496(c)(4), the Secretary’s regulations on teach-out plans, and the standards of

				the institution’s accrediting agency or association.</text>

										</paragraph><paragraph id="ID9788DBB01E074BD4A52B4CC00876E12C"><enum>(2)</enum><header>Teach-out plan

				defined</header><text>In this subsection, the term <term>teach-out plan</term>

				means a written plan that provides for the equitable treatment of students if

				an institution of higher education ceases to operate before all students have

				completed their program of study, and may include, if required by the

				institution’s accrediting agency or association, an agreement between

				institutions for such a teach-out plan.</text>

										</paragraph></subsection><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</paragraph><paragraph id="IDD725754FD874476DA20A6B0E47E6CF1F"><enum>(5)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="ID28AFD0752ACC4CBFA010936D3EC07F5B" style="OLC">

									<subsection id="ID7644400A4BF34BF89C17CC4353259283"><enum>(g)</enum><header>Implementation

				of Nontitle IV Revenue Requirement</header>

										<paragraph id="ID06F0E5AA043D4267B1BBC250B52ABBC7"><enum>(1)</enum><header>Calculation</header><text>In

				carrying out subsection (a)(24), an institution shall use the cash basis of

				accounting and count the following funds as from sources of funds other than

				funds provided under this title:</text>

											<subparagraph id="IDB780E34DC6864F34B151B5FF7F5AD4A6"><enum>(A)</enum><text>Funds used by

				students from sources other than funds received under this title to pay

				tuition, fees, and other institutional charges to the institution, provided the

				institution can reasonably demonstrate that such funds were used for such

				purposes.</text>

											</subparagraph><subparagraph id="ID4743D3E33C9C48C69CC9E1F24E2C5006"><enum>(B)</enum><text>Funds used by the

				institution to satisfy matching-fund requirements for programs under this

				title.</text>

											</subparagraph><subparagraph id="IDBA091A91227C499D8295F8C4AB484F6C"><enum>(C)</enum><text>Funds used by a

				student from savings plans for educational expenses established by or on behalf

				of the student and which qualify for special tax treatment under the Internal

				Revenue Code of 1986.</text>

											</subparagraph><subparagraph id="ID365D7E1C18D84D1085DDCFCA1A94A42E"><enum>(D)</enum><text>Funds paid by a

				student, or on behalf of a student by a party other than the institution, to

				the institution for an education or training program that is not eligible for

				funds under this title, provided that the program is approved or licensed by

				the appropriate State agency or an accrediting agency recognized by the

				Secretary.</text>

											</subparagraph><subparagraph id="ID3095299F67B045039E0FFAD07A373061"><enum>(E)</enum><text>Funds generated

				by the institution from institutional activities that are necessary for the

				education and training of the institution’s students, if such activities

				are—</text>

												<clause id="ID0D42646932054AD8AAFBE49F1F347FF6"><enum>(i)</enum><text>conducted on

				campus or at a facility under the control of the institution;</text>

												</clause><clause id="ID5F8691DB962C4F468CC49E60C17C8C18"><enum>(ii)</enum><text>performed under

				the supervision of a member of the institution’s faculty; and</text>

												</clause><clause id="ID1E90450F74DE42B3BA01B20E2809F347"><enum>(iii)</enum><text>required to be

				performed by all students in a specific educational program at the

				institution.</text>

												</clause></subparagraph><subparagraph id="IDB0132B753E1F4FF1B0CCD391CD1DA510"><enum>(F)</enum><text>Institutional

				aid, as follows:</text>

												<clause id="IDF3D7D9E520224123B13088259E036B64"><enum>(i)</enum><text>In the case of

				loans made by the institution, only the amount of loan repayments received by

				the institution during the fiscal year for which the determination is

				made.</text>

												</clause><clause id="ID373DBE5649CA467CA2957DF23A0BE9AB"><enum>(ii)</enum><text>In the case of

				scholarships provided by the institution, only those scholarship funds provided

				by the institution that are—</text>

													<subclause id="ID6D89AFA01E2240528CBABD632B193A34"><enum>(I)</enum><text>in the form of

				monetary aid based upon the academic achievements or financial need of

				students; and</text>

													</subclause><subclause id="ID934B90A67C344C8EB8C6992A347CAC99"><enum>(II)</enum><text>disbursed during

				the fiscal year for which the determination is made from an established

				restricted account and only to the extent that the funds in that account

				represent designated funds from an outside source or income earned on those

				funds.</text>

													</subclause></clause><clause id="ID73F07D036F28420182E828BA2108A2A3"><enum>(iii)</enum><text>In the case of

				tuition discounts, only those tuition discounts based upon the academic

				achievement or financial need of students.</text>

												</clause></subparagraph></paragraph><paragraph id="IDEB2F4DACF56E42E8BD71691960C8F6F4"><enum>(2)</enum><header>Sanctions</header>

											<subparagraph id="ID84E39B41E39047B4A654707E37C73E90"><enum>(A)</enum><header>Failure to meet

				requirement for 1 year</header><text>In addition to such other means of

				enforcing the requirements of this title as may be available to the Secretary,

				if an institution fails to meet the requirements of subsection (a)(24) in any

				year, the Secretary may impose 1 or both of the following sanctions on the

				institution:</text>

												<clause id="ID8EC6D6AE4BBB4583A3503EC5E0556A4E"><enum>(i)</enum><text>Place the

				institution on provisional certification in accordance with section 498(h)

				until the institution demonstrates, to the satisfaction of the Secretary, that

				it is in compliance with subsection (a)(24).</text>

												</clause><clause id="IDCCA37473D8594565ACA7F387A575943F"><enum>(ii)</enum><text>Require such

				other increased monitoring and reporting requirements as the Secretary

				determines necessary until the institution demonstrates, to the satisfaction of

				the Secretary, that it is in compliance with subsection (a)(24).</text>

												</clause></subparagraph><subparagraph id="ID4C295DEBECB34C52B3FCE4329E1B4C16"><enum>(B)</enum><header>Failure to meet

				requirement for 2 years</header><text>An institution that fails to meet the

				requirements of subsection (a)(24) for 2 consecutive years shall be ineligible

				to participate in the programs authorized under this title.</text>

											</subparagraph></paragraph><paragraph id="ID7C264389FF5043DDBE3A1516C69F4C2C"><enum>(3)</enum><header>Public

				availability of information</header><text>The Secretary shall make publicly

				available, through the means described in subsection (b) of section 131, any

				institution that fails to meet the requirements of subsection (a)(24) in any

				year as an institution that is failing to meet the minimum non-Federal source

				of revenue requirements of such subsection

				(a)(24).</text>

										</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></section><section id="ID07F43F1919EA43738DDAC32BD7725FF0"><enum>7442.</enum><header>Regulatory

			 relief and improvement</header><text display-inline="no-display-inline">Section

			 487A(b) (20 U.S.C. 1094a(b)) is amended—</text>

							<paragraph id="ID6BB1C7DFB3864473AFD60E65598A6EE9"><enum>(1)</enum><text>in paragraph

			 (1)</text>

								<subparagraph id="ID92A6FC46804441B7BDA6247514C7D05B"><enum>(A)</enum><text>by striking

			 <quote>1998</quote> and inserting <quote>2005</quote> ; and</text>

								</subparagraph><subparagraph id="ID73E43866BBA34A8C8578DE521EDF252F"><enum>(B)</enum><text>by striking

			 <quote>1999</quote> and inserting <quote>2006</quote>; and</text>

								</subparagraph></paragraph><paragraph id="IDB29872CD55FE494DB95EC7426A0FC995"><enum>(2)</enum><text>by striking the

			 matter preceding paragraph (2)(A) and inserting the following:</text>

								<quoted-block id="IDF579F95149FE44989534CCBBBE15A930" style="OLC">

									<paragraph id="IDC8863245D5BB4BF5961D460A97D1E3C6"><enum>(2)</enum><header>Report</header><text>The

				Secretary shall review and evaluate the experience of institutions

				participating as experimental sites and shall, on a biennial basis, submit a

				report based on the review and evaluation to the authorizing committees. Such

				report shall include—</text>

									</paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</paragraph><paragraph id="ID91163DBFE43445E48305DCF8FF9DFDF2"><enum>(3)</enum><text>in paragraph

			 (3)—</text>

								<subparagraph id="ID66451B03D52F4BEB8341CA9CD2D94FBB"><enum>(A)</enum><text>in subparagraph

			 (A)—</text>

									<clause id="ID7094D9E1395A4007B8C49EB9F9380876"><enum>(i)</enum><text>by

			 striking <quote>Upon the submission of the report required by paragraph (2),

			 the</quote> and inserting <quote>The</quote>; and</text>

									</clause><clause id="IDDC314A09AE9F4D9B9C349395A3901E33"><enum>(ii)</enum><text>by

			 inserting <quote>periodically</quote> after <quote>authorized

			 to</quote>;</text>

									</clause></subparagraph><subparagraph id="ID30F9237580894F0AB2FB5AC597D5CAA6"><enum>(B)</enum><text>by striking

			 subparagraph (B);</text>

								</subparagraph><subparagraph id="IDEED5B97989C5408EBAF58E4B635BD315"><enum>(C)</enum><text>by redesignating

			 subparagraph (C) as subparagraph (B); and</text>

								</subparagraph><subparagraph id="ID6767A43955DD468DB8B60644A534FCB9"><enum>(D)</enum><text>in subparagraph

			 (B) (as redesignated by subparagraph (C))—</text>

									<clause id="ID8127E8E34A4D4864969DF9A1FDB8DEF3"><enum>(i)</enum><text>by

			 inserting <quote>, including requirements related to the award process and

			 disbursement of student financial aid (such as innovative delivery systems for

			 modular or compressed courses, or other innovative systems), verification of

			 student financial aid application data, entrance and exit interviews, or other

			 management procedures or processes as determined in the negotiated rulemaking

			 process under section 492,</quote> after <quote>requirements in this

			 title</quote>; and</text>

									</clause><clause id="IDCCEC2B07AD8C41D98E91AC6D98C8AC35"><enum>(ii)</enum><text>by

			 inserting <quote>(other than an award rule related to an experiment in modular

			 or compressed schedules)</quote> after <quote>award rules</quote>; and</text>

									</clause><clause id="IDA39E780C2E8F443FA895888E72F1B6FB"><enum>(iii)</enum><text>by inserting

			 <quote>unless the waiver of such provisions is authorized by another provision

			 under this title</quote> before the period at the end.</text>

									</clause></subparagraph></paragraph></section><section id="ID5C5D61F54357455DBD5266207CEA1D1A"><enum>7443.</enum><header>Transfer of

			 allotments</header><text display-inline="no-display-inline">Section 488 (20

			 U.S.C. 1095) is amended in the first sentence—</text>

							<paragraph id="IDB120E940C1CE4F06B2E07E2133BB3490"><enum>(1)</enum><text>in paragraph (1),

			 by striking <quote>and</quote> after the semicolon;</text>

							</paragraph><paragraph id="ID06DF1FF563A4457897C443A9ED8CCE59"><enum>(2)</enum><text>in paragraph (2),

			 by striking <quote>413D.</quote> and inserting <quote>413D; and</quote>;

			 and</text>

							</paragraph><paragraph id="ID5CEED57CC22248CF8957C1250AEE20A6"><enum>(3)</enum><text>by adding at the

			 end <quote>(3) transfer 25 percent of the institution’s allotment under section

			 413D to the institution’s allotment under section 442.</quote>.</text>

							</paragraph></section><section id="ID32FFEDD6DA2449629B428B4AF2764549"><enum>7444.</enum><header>Wage

			 garnishment requirement</header><text display-inline="no-display-inline">Section 488A(a)(1) (20 U.S.C. 1095a(a)(1))

			 is amended by striking <quote>10 percent</quote> and inserting <quote>15

			 percent</quote>.</text>

						</section><section id="IDEDB85FA946C44BEA80DD064A958FF6CA"><enum>7445.</enum><header>Purpose of

			 administrative payments</header><text display-inline="no-display-inline">Section 489(b) (20 U.S.C. 1096(b)) is

			 amended by striking <quote>offsetting the administrative costs of</quote> and

			 inserting <quote>administering</quote>.</text>

						</section><section id="IDD5E495AF6D7847AAAFC54C139DAD60BB"><enum>7446.</enum><header>Advisory

			 Committee on student financial assistance</header><text display-inline="no-display-inline">Section 491 (20 U.S.C. 1098) is

			 amended—</text>

							<paragraph id="ID0CAEA66D7D874E74B443849FF1D406AF"><enum>(1)</enum><text>in subsection

			 (a)(2)—</text>

								<subparagraph id="ID8D524A2413EA4DF094F4A3E08DD5862A"><enum>(A)</enum><text>in subparagraph

			 (B), by striking <quote>and</quote> after the semicolon;</text>

								</subparagraph><subparagraph id="ID6DDF047761314698A9D38180404F59DA"><enum>(B)</enum><text>in subparagraph

			 (C), by striking the period and inserting a semicolon; and</text>

								</subparagraph><subparagraph id="IDE14313F0E0B641498353DAE0C44BB846"><enum>(C)</enum><text>by adding at the

			 end the following:</text>

									<quoted-block id="IDF40B3DEC6DF941269C9DEDDC2B0BB297" style="OLC">

										<subparagraph id="ID490DA42736994B3291EFB8862F275C11"><enum>(D)</enum><text>to provide

				knowledge and understanding of early intervention programs, and to make

				recommendations that will result in early awareness by low- and moderate-income

				students and families—</text>

											<clause id="ID3C09BB03D12D4ED28EE004D8F7CD4880"><enum>(i)</enum><text>of their

				eligibility for assistance under this title; and</text>

											</clause><clause id="ID20F5643BFB7A47C4B334D7875F306042"><enum>(ii)</enum><text>to the extent

				practicable, of their eligibility for other forms of State and institutional

				need-based student assistance; and</text>

											</clause></subparagraph><subparagraph id="ID6ACB14D1F041411BB805EC06525F2003"><enum>(E)</enum><text>to make

				recommendations that will expand and improve partnerships among the Federal

				Government, States, institutions of higher education, and private entities to

				increase the awareness and the total amount of need-based student assistance

				available to low- and moderate-income

				students.</text>

										</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>

								</subparagraph></paragraph><paragraph id="ID4B3F522C862144E4BFAAEAF5DFD47B29"><enum>(2)</enum><text>in subsection

			 (c), by adding at the end the following:</text>

								<quoted-block id="IDDF736EF3E66349598CD8EE793478CF94" style="OLC">

									<paragraph id="ID64C5E01825774B3188CE1B49451AD4D1" indent="up1"><enum>(3)</enum><text>The appointment of a member under

				subparagraph (A) or (B) of paragraph (1) shall be effective upon confirmation

				of the member by the Senate and publication of such appointment in the

				Congressional

				Record.</text>

									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph><paragraph id="ID55315D9B5E0643F2A7B80F7BE6316A03"><enum>(3)</enum><text>in subsection

			 (d)(6), by striking <quote>, but nothing</quote> and all that follows through

			 <quote>or analyses</quote>;</text>

							</paragraph><paragraph id="IDC140E348A8ED4D4B8FA9A3486AA703AA"><enum>(4)</enum><text>in subsection

			 (j)—</text>

								<subparagraph id="IDEA0A146AC54E4AC8BFF55C07D1F0B765"><enum>(A)</enum><text>in paragraph

			 (1)—</text>

									<clause id="IDCAA97470F7E74633999169DBA99CFF8F"><enum>(i)</enum><text>by

			 inserting <quote>and simplification</quote> after <quote>modernization</quote>

			 each place the term appears; and</text>

									</clause><clause id="ID512E2BFB71854740A1C8C54B391AD71E"><enum>(ii)</enum><text>by

			 striking <quote>including</quote> and all that follows through

			 <quote>Department,</quote>; and</text>

									</clause></subparagraph><subparagraph id="ID5D4402D400D24AADB1110EA52AA08BCA"><enum>(B)</enum><text>by striking

			 paragraphs (4) and (5) and inserting the following:</text>

									<quoted-block id="ID5D22904F7CB4445E91D2F6A45C831F50" style="OLC">

										<paragraph id="IDBB89661D6B1B4B858D9232602C63E004"><enum>(4)</enum><text>conduct a review

				and analysis of regulations in accordance with subsection (l); and</text>

										</paragraph><paragraph id="IDCF72AD3DAE614B5681FADF81EE63FB84"><enum>(5)</enum><text>conduct a study

				in accordance with subsection

				(m).</text>

										</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

								</subparagraph></paragraph><paragraph id="ID3DF08CE63AB749AB9B7AB5DC8F9C0C86"><enum>(5)</enum><text>in subsection

			 (k), by striking <quote>2004</quote> and inserting <quote>2010</quote>;

			 and</text>

							</paragraph><paragraph id="IDA5EF6125983B4620900D594D6735E097"><enum>(6)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="IDB9CD23B502194F44AC53D9B7A3AA6D28" style="OLC">

									<subsection id="IDF6426FB48C404DBD8EB0582254444622"><enum>(l)</enum><header>Review and

				Analysis of Regulations</header>

										<paragraph id="IDD4CFBD6533724C978E2B9724DCA50AE6"><enum>(1)</enum><header>Recommendations</header><text>The

				Advisory Committee shall make recommendations to the Secretary and Congress for

				consideration of future legislative action regarding redundant or outdated

				regulations under this title, consistent with the Secretary’s requirements

				under section 498B.</text>

										</paragraph><paragraph id="IDD8DD26F72EB44DD99618DDCBB4126436"><enum>(2)</enum><header>Review and

				analysis of regulations</header><text>The Advisory Committee shall conduct a

				review and analysis of the regulations issued under this title that are in

				effect at the time of the review and that apply to the operations or activities

				of participants in the programs assisted under this title. The review and

				analysis may include a determination of whether the regulation is duplicative,

				is no longer necessary, is inconsistent with other Federal requirements, or is

				overly burdensome. In conducting the review, the Advisory Committee shall pay

				specific attention to evaluating ways in which regulations under this title

				affecting institutions of higher education (other than institutions described

				in section 102(a)(1)(C)), that have received in each of the 2 most recent award

				years prior to the date of enactment of the Higher Education Amendments of 2005

				less than $200,000 in funds through this title, may be improved, streamlined,

				or eliminated.</text>

										</paragraph><paragraph id="ID03D8E9B193C140E086D748EA4898CCDC"><enum>(3)</enum><header>Consultation</header>

											<subparagraph id="IDE99E8EC751084B02857A7A61DBED3056"><enum>(A)</enum><header>In

				general</header><text>In carrying out the review and analysis under paragraph

				(2), the Advisory Committee shall consult with the Secretary, relevant

				representatives of institutions of higher education, and individuals who have

				expertise and experience with the regulations issued under this title, in

				accordance with subparagraph (B).</text>

											</subparagraph><subparagraph id="IDF02061E0A25743CAA38C551760501FD7"><enum>(B)</enum><header>Review

				panels</header><text>The Advisory Committee shall convene not less than 2

				review panels of representatives of the groups involved in student financial

				assistance programs under this title who have experience and expertise in the

				regulations issued under this title to review the regulations under this title,

				and to provide recommendations to the Advisory Committee with respect to the

				review and analysis under paragraph (2). The panels shall be made up of experts

				in areas such as the operations of the financial assistance programs, the

				institutional eligibility requirements for the financial assistance programs,

				regulations not directly related to the operations or the institutional

				eligibility requirements of the financial assistance programs, and regulations

				for dissemination of information to students about the financial assistance

				programs.</text>

											</subparagraph></paragraph><paragraph id="ID504A4A791E7B43ECBAED3C9AE6D5B4C3"><enum>(4)</enum><header>Reports to

				congress</header><text>The Advisory Committee shall submit, not later than 2

				years after the completion of the negotiated rulemaking process required under

				section 492 resulting from the amendments to this Act made by the Higher

				Education Amendments of 2005, a report to the authorizing committees and the

				Secretary detailing the expert panels’ findings and recommendations with

				respect to the review and analysis under paragraph (2).</text>

										</paragraph><paragraph id="IDE92D4098E36747B5921BE4B7A180EB5E"><enum>(5)</enum><header>Additional

				support</header><text>The Secretary and the Inspector General of the Department

				shall provide such assistance and resources to the Advisory Committee as the

				Secretary and Inspector General determine are necessary to conduct the review

				required by this subsection.</text>

										</paragraph></subsection><subsection id="IDFD2690074D1A432397C9503257934436"><enum>(m)</enum><header>Study of

				Innovative Pathways to Baccalaureate Degree Attainment</header>

										<paragraph id="IDBD9ADE1E21C6432AA746C32393BE9173"><enum>(1)</enum><header>Study

				required</header><text>The Advisory Committee shall conduct a study of the

				feasibility of increasing baccalaureate degree attainment rates by reducing the

				costs and financial barriers to attaining a baccalaureate degree through

				innovative programs.</text>

										</paragraph><paragraph id="ID0C9E6E35DAC543C7A1F070B3E7052FD4"><enum>(2)</enum><header>Scope of

				study</header><text>The Advisory Committee shall examine new and existing

				programs that promote baccalaureate degree attainment through innovative ways,

				such as dual or concurrent enrollment programs, changes made to the Federal

				Pell Grant program, simplification of the needs analysis process, compressed or

				modular scheduling, articulation agreements, and programs that allow 2-year

				institutions of higher education to offer baccalaureate degrees.</text>

										</paragraph><paragraph id="ID61F9A1C70F374ABFA8CDD0506D3AB445"><enum>(3)</enum><header>Required

				aspects of the study</header><text>In performing the study described in this

				subsection, the Advisory Committee shall examine the following aspects of such

				innovative programs:</text>

											<subparagraph id="IDFD2092B3362F4327B518EB19ED456EE0"><enum>(A)</enum><text>The impact of

				such programs on baccalaureate attainment rates.</text>

											</subparagraph><subparagraph id="ID8351393502A14A548EFA7E6FDA64AD0B"><enum>(B)</enum><text>The degree to

				which a student’s total cost of attaining a baccalaureate degree can be reduced

				by such programs.</text>

											</subparagraph><subparagraph id="ID5C62E7DB22DC46B381E1B30A9311B52C"><enum>(C)</enum><text>The ways in which

				low- and moderate-income students can be specifically targeted by such

				programs.</text>

											</subparagraph><subparagraph id="IDF2DF9D6D45484E6B966DA061221179D9"><enum>(D)</enum><text>The ways in which

				nontraditional students can be specifically targeted by such programs.</text>

											</subparagraph><subparagraph id="ID2A196204A9434A228D845222197CD2D9"><enum>(E)</enum><text>The

				cost-effectiveness for the Federal Government, States, and institutions of

				higher education to implement such programs.</text>

											</subparagraph></paragraph><paragraph id="ID65F7666A1EDE4D469A97EEC12258F7A2"><enum>(4)</enum><header>Consultation</header>

											<subparagraph id="ID8750FB9975A8407D88D5EF11D92FE30A"><enum>(A)</enum><header>In

				general</header><text>In performing the study described in this subsection the

				Advisory Committee shall consult with a broad range of interested parties in

				higher education, including parents, students, appropriate representatives of

				secondary schools and institutions of higher education, appropriate State

				administrators, administrators of dual enrollment programs, and appropriate

				officials from the Department.</text>

											</subparagraph><subparagraph id="IDF53A22DCABC54899BF23FF9D7EDF8293"><enum>(B)</enum><header>Congressional

				consultation</header><text>The Advisory Committee shall consult on a regular

				basis with the authorizing committees in carrying out the study required by

				this section.</text>

											</subparagraph></paragraph><paragraph id="ID33BA46B66DA34871B033466F7EB669B8"><enum>(5)</enum><header>Reports to

				congress</header>

											<subparagraph id="ID6F246540D1444009B3AECB8FFAA3D81D"><enum>(A)</enum><header>Interim

				report</header><text>The Advisory Committee shall prepare and submit to the

				authorizing committees and the Secretary 1 interim report, not later than 1

				year after the date of enactment of the Higher Education Amendments of 2005,

				describing the progress that has been made in conducting the study required by

				this subsection and any preliminary findings on the topics identified under

				paragraph (2).</text>

											</subparagraph><subparagraph id="ID14512E9BEE72459780AD8CEF78C1C014"><enum>(B)</enum><header>Final

				report</header><text>The Advisory Committee shall, not later than 3 years after

				the date of enactment of the Higher Education Amendments of 2005, prepare and

				submit to the authorizing committees and the Secretary a final report on the

				study, including recommendations for legislative, regulatory, and

				administrative changes based on findings related to the topics identified under

				paragraph

				(2).</text>

											</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></section><section id="IDE97A601EACFE42FA941ECBA049D0A0A8"><enum>7447.</enum><header>Regional

			 meetings</header><text display-inline="no-display-inline">Section 492(a)(1) (20

			 U.S.C. 1098a(a)(1)) is amended by inserting <quote>State student grant

			 agencies,</quote> after <quote>institutions of higher

			 education,</quote>.</text>

						</section><section id="ID3822AE88743C4DAE953F6ADE355BC880"><enum>7448.</enum><header>Year 2000

			 requirements at the Department</header>

							<subsection id="IDBA3481D19030421BA3931DBDAD541AC9"><enum>(a)</enum><header>Repeal</header><text>Section

			 493A (20 U.S.C. 1098c) is repealed.</text>

							</subsection><subsection id="IDBA7C2D6ABFCD4E629A15A2117A814F03"><enum>(b)</enum><header>Redesignation</header><text>Section

			 493B (20 U.S.C. 1098d) is redesignated as section 493A.</text>

							</subsection></section></subchapter><subchapter id="IDD1E875A7C42C483BBEFEC691D1269D43"><enum>H</enum><header>Program

			 Integrity</header>

						<section id="ID1EA69605C141408EAC324A61E7F25232"><enum>7451.</enum><header>Recognition

			 of accrediting agency or association</header><text display-inline="no-display-inline">Section 496 (200 U.S.C. 1099b) is

			 amended—</text>

							<paragraph id="IDB2301C2DE24048B88E753B8E1FDF7877"><enum>(1)</enum><text>in subsection

			 (a)—</text>

								<subparagraph id="ID5E7956B76C364898BC273A8D1B99C0EA"><enum>(A)</enum><text>by striking

			 paragraph (4) and inserting the following:</text>

									<quoted-block id="ID3D53098B7291471281737E45886E3BE2" style="OLC">

										<paragraph id="IDB0CCC029FF104D44BAB3F7B74EBBEF97"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDDFD8577D3DA74961B4AA3B0FDE285FA8"><enum>(A)</enum><text>such agency or

				association consistently applies and enforces standards that respect the stated

				mission of the institution of higher education, including religious missions,

				and that ensure that the courses or programs of instruction, training, or study

				offered by the institution of higher education, including distance education

				courses or programs, are of sufficient quality to achieve, for the duration of

				the accreditation period, the stated objective for which the courses or the

				programs are offered; and</text>

											</subparagraph><subparagraph id="ID14981A306A26408CAFA3C3D1F16431BE" indent="up1"><enum>(B)</enum><text>if such agency or association has or

				seeks to include within its scope of recognition the evaluation of the quality

				of institutions or programs offering distance education, such agency or

				association shall, in addition to meeting the other requirements of this

				subpart, demonstrate to the Secretary that—</text>

												<clause id="IDD454A27603524033A5A49F300958F623"><enum>(i)</enum><text>the agency or association’s

				standards effectively address the quality of an institution’s distance

				education in the areas identified in section 496(a)(5), except that the agency

				or association shall not be required to have separate standards, procedures or

				policies for the evaluation of distance education institutions or programs in

				order to meet the requirements of this subparagraph; and</text>

												</clause><clause id="ID7CEE9BC960114C0C96314C04933F872C"><enum>(ii)</enum><text>the agency or association requires

				an institution that offers distance education to have processes through which

				the institution establishes that the student who registers in a distance

				education course or program is the same student who participates, completes and

				receives the academic

				credit;</text>

												</clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

								</subparagraph><subparagraph id="ID00AED17F58D8472AAF3A075ACB36BE33"><enum>(B)</enum><text>in paragraph (5),

			 by striking subparagraph (A) and inserting the following:</text>

									<quoted-block id="IDE9E9B4D460B3481B8553891BDFD8E7A1" style="OLC">

										<subparagraph id="ID7BE93AB72D164292B3EF704FCBD5FB42"><enum>(A)</enum><text>success with

				respect to student achievement in relation to the institution’s mission,

				including—</text>

											<clause id="IDEBCF3CA315424FBE87BF8B644197E676"><enum>(i)</enum><text>consideration of

				student academic achievement as determined by the institution;</text>

											</clause><clause id="ID3F5A43AEBFDC4749B3248D15553C3BF5"><enum>(ii)</enum><text>student

				retention;</text>

											</clause><clause id="IDECBCBB45078F4C198E98AC592EA98785"><enum>(iii)</enum><text>course and

				program completion;</text>

											</clause><clause id="ID7293E911C828495A8A12A97618E7716C"><enum>(iv)</enum><text>as appropriate,

				State licensing examinations;</text>

											</clause><clause id="ID9251793D541840EC94D8ED0D4D69FC53"><enum>(v)</enum><text>as appropriate,

				job placement rates or enrollment in graduate or professional programs;

				and</text>

											</clause><clause id="IDF1133F76B4774E7EA4CC828B5A5A8529"><enum>(vi)</enum><text>as appropriate,

				other student performance information selected by the institution, particularly

				that information used by the institution to evaluate or strengthen its

				programs;</text>

											</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>

								</subparagraph><subparagraph id="ID351BC64304684CAC890D3140B4D8CE35"><enum>(C)</enum><text>by striking

			 paragraph (6) and inserting the following:</text>

									<quoted-block id="ID537B3661A804463FA7D29DF9EB2E500F" style="OLC">

										<paragraph id="ID2279858B02264B899CF96DC579BB0C7E"><enum>(6)</enum><text>such an agency or

				association shall establish and apply review procedures throughout the

				accrediting process, including evaluation and withdrawal proceedings which

				comply with due process procedures that provide for—</text>

											<subparagraph id="ID14B966D8DC3C42A8AA1255DB92D211F9"><enum>(A)</enum><text>adequate

				specification of requirements and deficiencies at the institution of higher

				education or program examined;</text>

											</subparagraph><subparagraph id="IDE6639F78F6FD41A588D5AF1BC5F3822B"><enum>(B)</enum><text>an opportunity

				for a written response by any such institution to be included, prior to final

				action, in the evaluation and withdrawal proceedings;</text>

											</subparagraph><subparagraph id="IDF69CFC78D5D647F2BA7A37BC6FD647CB"><enum>(C)</enum><text>upon the written

				request of an institution, an opportunity for the institution to appeal any

				adverse action, including denial, withdrawal, suspension, or termination of

				accreditation, or placement on probation of an institution, at a hearing prior

				to such action becoming final, before an appeals panel that—</text>

												<clause id="ID31C5A8C38FED4244A98DCE2A609A59FF"><enum>(i)</enum><text>shall not include

				current members of the agency or association’s underlying decision-making body

				that made the adverse decision; and</text>

												</clause><clause id="IDFE22E107A7924D2AAF8C65FF23E448BA"><enum>(ii)</enum><text>is subject to a

				conflict of interest policy; and</text>

												</clause></subparagraph><subparagraph id="IDCC81770E2CC341C5B15D18F153EF80A3"><enum>(D)</enum><text>the right to

				representation by counsel for such an institution during an appeal of the

				adverse action;</text>

											</subparagraph></paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</subparagraph><subparagraph id="ID12DDB8E1992641D1AE1026E9C2AA9FEE"><enum>(D)</enum><text>by striking

			 paragraph (8) and inserting the following:</text>

									<quoted-block id="IDD9DC4650F0284976AA95024F29B1A285" style="OLC">

										<paragraph id="IDCBD00E75B499459DB2B9C974BA40CBBB"><enum>(8)</enum><text>such agency or

				association shall make available to the public and the State licensing or

				authorizing agency, and submit to the Secretary, a summary of agency or

				association actions, including—</text>

											<subparagraph id="IDF5B538714E254F78BB5BADE0F69940C2"><enum>(A)</enum><text>the award of

				accreditation or reaccreditation of an institution;</text>

											</subparagraph><subparagraph id="IDD1D3A7526B804B15BEC31892B8CE2EE7"><enum>(B)</enum><text>final denial,

				withdrawal, suspension, or termination of accreditation, or placement on

				probation of an institution, and any findings made in connection with the

				action taken, together with the official comments of the affected institution;

				and</text>

											</subparagraph><subparagraph id="IDE6DE6D70A08343D4A3171A43540CEBA8"><enum>(C)</enum><text>any other adverse

				action taken with respect to an

				institution.</text>

											</subparagraph></paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</subparagraph></paragraph><paragraph id="ID55D5132A90204E82BDFC5D4EBB2E2333"><enum>(2)</enum><text>in subsection

			 (c)—</text>

								<subparagraph id="IDA8D1806DE1804C37B5BB9C897D8A7B43"><enum>(A)</enum><text>in paragraph (1),

			 by inserting <quote>, including those regarding distance education</quote>

			 after <quote>their responsibilities</quote>;</text>

								</subparagraph><subparagraph id="IDC88ED9A636064D43A0CA14B92658041C"><enum>(B)</enum><text>by redesignating

			 paragraphs (2) through (6) as paragraphs (5) through (9);</text>

								</subparagraph><subparagraph id="IDAEAEF1B86DF44BB8A317B2E8EAFA129E"><enum>(C)</enum><text>by inserting

			 after paragraph (1) (as amended by subparagraph (A)) the following:</text>

									<quoted-block id="ID3413E53D01BF470196FB1924276AA918" style="OLC">

										<paragraph id="ID45B783FFCE9F4F7EABE09954F879D178"><enum>(2)</enum><text>ensures that the

				agency or association’s on-site evaluation for accreditation or reaccreditation

				includes review of the Federally required information the institution or

				program provides its current and prospective students;</text>

										</paragraph><paragraph id="ID68BC07BCA7754F3287962F391075F844"><enum>(3)</enum><text>monitors the

				growth of programs at institutions that are experiencing significant enrollment

				growth;</text>

										</paragraph><paragraph id="ID992A514305FE4A7CA4FA39843EC73DD1"><enum>(4)</enum><text>requires an

				institution to submit a teach-out plan for approval to the accrediting agency

				upon the occurrence of any of the following events:</text>

											<subparagraph id="ID76D6B9FBB21A473C86D9ED1AA5698FC0"><enum>(A)</enum><text>The Department

				notifies the accrediting agency of an action against the institution pursuant

				to section 487(d).</text>

											</subparagraph><subparagraph id="IDC015A544E29D4BE5B20201430AFD1C78"><enum>(B)</enum><text>The accrediting

				agency acts to withdraw, terminate, or suspend the accreditation of an

				institution.</text>

											</subparagraph><subparagraph id="ID96116629D3004D89A85E661F29F88245"><enum>(C)</enum><text>The institution

				notifies the accrediting agency that the institution intends to cease

				operations.</text>

											</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

								</subparagraph><subparagraph id="ID3E6F641F4BCB41D5A5BF6C3D60AA169E"><enum>(D)</enum><text>in paragraph (8)

			 (as redesignated by subparagraph (B)), by striking <quote>and</quote> after the

			 semicolon;</text>

								</subparagraph><subparagraph id="IDADC603FF9E8D464B9574E1A0B65AD2EC"><enum>(E)</enum><text>in subparagraph

			 (9) (as redesignated by subparagraph (B)), by striking the period and inserting

			 <quote>; and</quote>; and</text>

								</subparagraph><subparagraph id="ID565B3998EB6D4F3C87C7F7E0A945DB89"><enum>(F)</enum><text>by adding at the

			 end the following:</text>

									<quoted-block id="IDB5483CE954C4411D84486572386AC362" style="OLC">

										<paragraph id="ID5486D97EF0004543A80E4B5B6F79761B"><enum>(10)</enum><text>confirms, as a

				part of the agency or association’s review for accreditation or

				reaccreditation, that the institution has transfer of credit policies—</text>

											<subparagraph id="ID83C3DA18B51343F8A768BA807DDA7802"><enum>(A)</enum><text>that are publicly

				disclosed;</text>

											</subparagraph><subparagraph id="IDAD5984AABD754688AAD17A811C730484"><enum>(B)</enum><text>that do not deny

				transfer of credit based solely on the accreditation of the sending

				institution, if the agency or association accrediting the sending institution

				is recognized by the Secretary pursuant to this section; and</text>

											</subparagraph><subparagraph id="ID93FD0F059ED24D0DB435539E154580B5"><enum>(C)</enum><text>in which

				acceptance or denial of transfer of credit is decided according to criteria

				established in guidelines developed by the institution’s admissions

				committee.</text>

											</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

								</subparagraph></paragraph></section><section id="IDBAFC9F23A89D45C7999F71B1A40E4BC2"><enum>7452.</enum><header>Administrative

			 capacity standard</header><text display-inline="no-display-inline">Section 498

			 (20 U.S.C. 1099c) is amended—</text>

							<paragraph id="ID335B860FFF5246C9A4CAB3ED027C0E91"><enum>(1)</enum><text>in subsection

			 (d)(1)(B), by inserting <quote>and</quote> after the semicolon; and</text>

							</paragraph><paragraph id="ID2E263BC7688A4AE39B6DF6EFFDABB4E7"><enum>(2)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="IDF8B0343DB6F243A7968FC15876289694" style="OLC">

									<subsection id="IDA873B4B9229B4895A95D251B52707834"><enum>(k)</enum><header>Treatment of

				Teach-Outs at Additional Locations</header>

										<paragraph id="ID077AA92A6B0440CDB7C0BA6DF88CC376"><enum>(1)</enum><header>In

				general</header><text>A location of a closed institution of higher education

				shall be eligible as an additional location of an eligible institution of

				higher education, as defined pursuant to regulations of the Secretary, for the

				purposes of a teach-out, if such teach-out has been approved by the

				institution’s accrediting agency.</text>

										</paragraph><paragraph id="ID5BD0D801001342338BE40F618BA3535F"><enum>(2)</enum><header>Special

				rule</header><text>An institution of higher education that conducts a teach-out

				through the establishment of an additional location described in paragraph (1)

				shall be permitted to establish a permanent additional location at a closed

				institution and shall not be required—</text>

											<subparagraph id="IDB1F42B2F24E84004A397F5637DED9AE9"><enum>(A)</enum><text>to meet the

				requirements of sections 102(b)(1)(E) and 102(c)(1)(C) for such additional

				location; or</text>

											</subparagraph><subparagraph id="ID3E3BACBDE4DA47A08853D73786D6AA82"><enum>(B)</enum><text>to assume the

				liabilities of the closed

				institution.</text>

											</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></section><section id="IDF08FCB45AD9D4997AB4797266D4A367B"><enum>7453.</enum><header>Program

			 review and data</header><text display-inline="no-display-inline">Section

			 498A(b) (20 U.S.C. 1099c–1(b)) is amended—</text>

							<paragraph id="ID469A446733224A2ABA24B6DB48271EF3"><enum>(1)</enum><text>in paragraph (4),

			 by striking <quote>and</quote> after the semicolon;</text>

							</paragraph><paragraph id="IDC3B3F9C6D48C43F080157A1381579157"><enum>(2)</enum><text>in paragraph (5)

			 by striking the period and inserting a semicolon; and</text>

							</paragraph><paragraph id="IDC2D88E46B2E14EDBA123395B163CEE4A"><enum>(3)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="ID957905768FCE448DAD3D0AF061A84A01" style="OLC">

									<paragraph id="IDBC9FC4EE1D984538BACE0E7EB26E9D95"><enum>(6)</enum><text>provide to an

				institution of higher education an adequate opportunity to review and respond

				to any program review report and relevant materials related to the report

				before any final program review is reached;</text>

									</paragraph><paragraph id="ID15643289B95B442EA9DAB069B2AF8508"><enum>(7)</enum><text>review and take

				into consideration an institution of higher education’s response in any final

				program review; and</text>

									</paragraph><paragraph id="ID3C88AE3FC0B64257BD5F40B66B36E817"><enum>(8)</enum><text>maintain and

				preserve at all times the confidentiality of any program review report until

				the requirements of paragraphs (6) and (7) are met, and until a final program

				review is issued, other than to the extent required to comply with paragraph

				(5), except that the Secretary shall promptly disclose any and all program

				review reports to the institution of higher education under

				review.</text>

									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></section></subchapter></chapter><chapter id="ID8CD35258EBEA45E19F3B4A788479A5C2"><enum>6</enum><header>DEVELOPING

			 INSTITUTIONS</header>

					<section id="ID118AD93BBF164BA28DCEF493A430B9EA"><enum>7501.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 502(a) (20 U.S.C. 1101a(a)) is

			 amended—</text>

						<paragraph id="ID996AE1BD4DA044DA99B0E60A995B7269"><enum>(1)</enum><text>in paragraph

			 (5)—</text>

							<subparagraph id="IDFFB974DBFB6946A58DBC412B2DCB0A1F"><enum>(A)</enum><text>in subparagraph

			 (A), by inserting <quote>and</quote> after the semicolon;</text>

							</subparagraph><subparagraph id="IDE9164350E2DE438E8BD18D0C641820EE"><enum>(B)</enum><text>in subparagraph

			 (B), by striking <quote>; and</quote> and inserting a period; and</text>

							</subparagraph><subparagraph id="IDF63A3FCBCAA04173B78DC7407F80904E"><enum>(C)</enum><text>by striking

			 subparagraph (C); and</text>

							</subparagraph></paragraph><paragraph id="ID757EA007C52D4CB0A969B935F5ABCFD0"><enum>(2)</enum><text>by striking

			 paragraph (7).</text>

						</paragraph></section><section id="ID0EA7E97D96B54891B82C90C67FF049B3"><enum>7502.</enum><header>Authorized

			 activities</header><text display-inline="no-display-inline">Section 503(b) (20

			 U.S.C. 1101b(b)) is amended—</text>

						<paragraph id="IDC61F691CA0124DF69ECD1BE59370C1CB"><enum>(1)</enum><text>by redesignating

			 paragraphs (6) through (14) as paragraphs (8) through (16),

			 respectively;</text>

						</paragraph><paragraph id="IDAF64142662574C72AE6CAB786ED3CEEC"><enum>(2)</enum><text>in paragraph (5),

			 by inserting <quote>, including innovative, customized remedial education and

			 English language instruction courses designed to help retain students and move

			 the students rapidly into core courses and through program completion</quote>

			 before the period at the end; and</text>

						</paragraph><paragraph id="IDE322BFBABE4A454EB45C630A552EEB82"><enum>(3)</enum><text>by inserting

			 after paragraph (5) the following:</text>

							<quoted-block id="IDF2DE56EDEE0A47B5A50FD8EBF7F085AB" style="OLC">

								<paragraph id="IDD94F49C422634E2FA6472DAACB540607"><enum>(6)</enum><text>Education or

				counseling services designed to improve the financial literacy and economic

				literacy of students or the students’ parents.</text>

								</paragraph><paragraph id="ID09692AEBFA364E16BB62CBFF04449B40"><enum>(7)</enum><text>Articulation

				agreements and student support programs designed to facilitate the transfer

				from 2-year to 4-year

				institutions.</text>

								</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section><section id="IDADD7173848844E52871A91E4BF7AFCA2"><enum>7503.</enum><header>Duration of

			 grant</header><text display-inline="no-display-inline">Section 504(a) (20

			 U.S.C. 1101c(a)) is amended to read as follows:</text>

						<quoted-block id="ID0AD95199AB99435299A59E5F295C99E9" style="OLC">

							<subsection id="IDE36721FC37F44D50BAB94A233D1BCAEC"><enum>(a)</enum><header>Award

				Period</header><text>The Secretary may award a grant to a Hispanic-serving

				institution under this title for 5

				years.</text>

							</subsection><after-quoted-block>.</after-quoted-block></quoted-block>

					</section><section id="IDE4905ECF49AC4E44972E578D8878D6E2"><enum>7504.</enum><header>Postbaccalaureate

			 opportunities for Hispanic Americans</header>

						<subsection id="IDBD0A668159CF428FA498AD41BEF9B23E"><enum>(a)</enum><header>Establishment

			 of Program</header><text>Title V (20 U.S.C. 1101 et seq.) is amended—</text>

							<paragraph id="IDF7D52CA25FB2420D873E76869DC28519"><enum>(1)</enum><text>by redesignating

			 part B as part C;</text>

							</paragraph><paragraph id="IDB56D35D55A3E4585A017D4E2097348FE"><enum>(2)</enum><text>by redesignating

			 sections 511 through 518 as sections 521 through 528, respectively; and</text>

							</paragraph><paragraph id="ID5181F35D24EB4DC3B54C3BF67C3EBBEF"><enum>(3)</enum><text>by inserting

			 after section 505 the following:</text>

								<quoted-block id="IDB3FC3D685CF44497B4034C357D5C4613" style="OLC">

									<part id="ID969A868545D141C7974DCC124524E1B8"><enum>B</enum><header>PROMOTING

				POSTBACCALAUREATE OPPORTUNITIES FOR HISPANIC AMERICANS</header>

										<section id="IDA29AB89C5D6A4F15AF1F1CF72BD7696C"><enum>511.</enum><header>Program

				authority and eligibility</header>

											<subsection id="ID5AB1176AFCE14DAF998D0FC87FCF01CC"><enum>(a)</enum><header>Program

				Authorized</header><text>Subject to the availability of funds appropriated to

				carry out this part, the Secretary shall award grants, on a competitive basis,

				to eligible institutions to enable the eligible institutions to carry out the

				authorized activities described in section 512.</text>

											</subsection><subsection id="ID0327F92C2C1B4EBBBAF5C697D4E89950"><enum>(b)</enum><header>Eligibility</header><text>For

				the purposes of this part, an <quote>eligible institution</quote> means an

				institution of higher education that—</text>

												<paragraph id="IDF759D6803F624D27A788148F6FBA0074"><enum>(1)</enum><text>is a

				Hispanic-serving institution (as defined in section 502); and</text>

												</paragraph><paragraph id="IDC5DDC449E3364B2B88EAC6E269F31A83"><enum>(2)</enum><text>offers a

				postbaccalaureate certificate or degree granting program.</text>

												</paragraph></subsection></section><section id="ID677AC24AE2594694ACB5CC495A3BFFA2"><enum>512.</enum><header>Authorized

				activities</header><text display-inline="no-display-inline">Grants awarded

				under this part shall be used for 1 or more of the following activities:</text>

											<paragraph id="IDFEF3865D1CDC4A6F90F0B45920120ADE"><enum>(1)</enum><text>Purchase, rental,

				or lease of scientific or laboratory equipment for educational purposes,

				including instructional and research purposes.</text>

											</paragraph><paragraph id="IDDA92D157EA804CEBA31C12331E6EF21D"><enum>(2)</enum><text>Construction,

				maintenance, renovation, and improvement in classroom, library, laboratory, and

				other instructional facilities, including purchase or rental of

				telecommunications technology equipment or services.</text>

											</paragraph><paragraph id="IDF9F85871106746988FBD325045C49D21"><enum>(3)</enum><text>Purchase of

				library books, periodicals, technical and other scientific journals, microfilm,

				microfiche, and other educational materials, including telecommunications

				program materials.</text>

											</paragraph><paragraph id="ID68610630FFA54EE59A2EEC6C9F439E24"><enum>(4)</enum><text>Support for needy

				postbaccalaureate students, including outreach, academic support services,

				mentoring, scholarships, fellowships, and other financial assistance, to permit

				the enrollment of such students in postbaccalaureate certificate and degree

				granting programs.</text>

											</paragraph><paragraph id="ID571F1D7C3B7D4E1E9036A15B04DBB0EC"><enum>(5)</enum><text>Support of

				faculty exchanges, faculty development, faculty research, curriculum

				development, and academic instruction.</text>

											</paragraph><paragraph id="IDB24ECE16E6C647B0B1842D0AF9E3E505"><enum>(6)</enum><text>Creating or

				improving facilities for Internet or other distance learning academic

				instruction capabilities, including purchase or rental of telecommunications

				technology equipment or services.</text>

											</paragraph><paragraph id="IDABDC3E9DB75F4B808E39DA0855C43E47"><enum>(7)</enum><text>Collaboration

				with other institutions of higher education to expand postbaccalaureate

				certificate and degree offerings.</text>

											</paragraph><paragraph id="IDE5138369E7414C4585052B24663EC473"><enum>(8)</enum><text>Other activities

				proposed in the application submitted pursuant to section 513 that are approved

				by the Secretary as part of the review and acceptance of such

				application.</text>

											</paragraph></section><section id="ID8EF6DAD60FD1421DBC58CEFE04BD6FB6"><enum>513.</enum><header>Application

				and duration</header>

											<subsection id="IDFB58665501FC4E1E9833135F63C5AC1E"><enum>(a)</enum><header>Application</header><text>Any

				eligible institution may apply for a grant under this part by submitting an

				application to the Secretary at such time and in such manner as the Secretary

				may require. Such application shall demonstrate how the grant funds will be

				used to improve postbaccalaureate education opportunities for Hispanic and

				low-income students and will lead to such students’ greater financial

				independence.</text>

											</subsection><subsection id="IDCBA2DF10EB4748C4B822B63ADAA58E13"><enum>(b)</enum><header>Duration</header><text>Grants

				under this part shall be awarded for a period not to exceed 5 years.</text>

											</subsection><subsection id="ID4CEF81AF97C44F74BD845E03F2EAD64F"><enum>(c)</enum><header>Limitation</header><text>The

				Secretary may not award more than 1 grant under this part in any fiscal year to

				any Hispanic-serving

				institution.</text>

											</subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></subsection></section><section id="ID6E6B1ABDBD1346EEBC2D22B98A8B37B5"><enum>7505.</enum><header>Applications</header><text display-inline="no-display-inline">Section 521(b)(1)(A) (as redesignated by

			 section 7504(a)(2)) (20 U.S.C. 1103(b)(1)(A)) is amended by striking

			 <quote>subsection (b)</quote> and inserting <quote>subsection

			 (c)</quote>.</text>

					</section><section id="IDBAD0F018499E44259BED4CD2D5075D9C"><enum>7506.</enum><header>Cooperative

			 arrangements</header><text display-inline="no-display-inline">Section 524(a)

			 (as redesignated by section 7504(a)(2)) (20 U.S.C. 1103c(a)) is amended by

			 striking <quote>section 503</quote> and inserting <quote>sections 503 and

			 512</quote>.</text>

					</section><section id="ID9112211118994CA38BECE4A3FE833965"><enum>7507.</enum><header>Authorization

			 of appropriations</header><text display-inline="no-display-inline">Section

			 528(a) (as redesignated by section 7504(a)(2)) (20 U.S.C. 1103g(a)) is

			 amended—</text>

						<paragraph id="ID5C6989F792A54D2C93289A7A37F35ED4"><enum>(1)</enum><text>by inserting

			 <quote>part A of</quote> after <quote>carry out</quote>;</text>

						</paragraph><paragraph id="IDF5852F39ACBF40E9820C188ACA448BC1"><enum>(2)</enum><text>by striking

			 <quote>$62,500,000 for fiscal year 1999</quote> and all that follows through

			 the period and inserting <quote>such sums as may be necessary for fiscal year

			 2006 and each of the 5 succeeding fiscal years.</quote>;</text>

						</paragraph><paragraph id="IDB4F1BB3A46E446B08A55B6C6CA21BC07"><enum>(3)</enum><text>by striking

			 <quote>(a)<header-in-text> Authorizations</header-in-text>.—There are</quote>

			 and inserting the following:</text>

							<quoted-block id="ID4FA99115CDA848B1B36656D382E55489" style="OLC">

								<subsection id="IDB3D9402DB26A4C0794EF598A321E2332"><enum>(a)</enum><header>Authorizations</header>

									<paragraph id="IDD25FBD836E2841CE98179F2DFA5A8B0D"><enum>(1)</enum><header>Part

				<enum-in-header>A</enum-in-header></header><text>There

				are</text>

									</paragraph></subsection><after-quoted-block>;

				and</after-quoted-block></quoted-block>

						</paragraph><paragraph id="IDD6FC0C072C124DDF802CE678E66A1723"><enum>(4)</enum><text>by adding at the

			 end the following:</text>

							<quoted-block id="ID90EB411DF0BC425989372AC54A71ECDE" style="OLC">

								<paragraph id="ID69AB2AB21A01419491D59D7AC518BAF5"><enum>(2)</enum><header>Part

				<enum-in-header>B</enum-in-header></header><text>There are authorized to be

				appropriated to carry out part B of this title such sums as may be necessary

				for fiscal year 2006 and each of the 5 succeeding fiscal

				years.</text>

								</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section></chapter><chapter id="ID0E6076E833364DA28B8E85554B4DC58A"><enum>7</enum><header>INTERNATIONAL

			 EDUCATION PROGRAMS</header>

					<section id="ID1BF7A4E02AC0420B939268E428957FD7"><enum>7601.</enum><header>Findings</header><text display-inline="no-display-inline">Section 601 (20 U.S.C. 1121) is

			 amended—</text>

						<paragraph id="ID721C922A96D5437AB0D95616C9DE1221"><enum>(1)</enum><text>in the section

			 heading, by striking <quote><header-in-text>and

			 purposes</header-in-text></quote> and inserting <quote><header-in-text>;

			 purposes; consultation; survey</header-in-text></quote></text>

						</paragraph><paragraph id="ID7562B87BBFC04186BB36A93E4CC0F08B"><enum>(2)</enum><text>in subsection

			 (a)(3), by striking <quote>post-Cold War</quote>;</text>

						</paragraph><paragraph id="IDEAE4588224A143EF89C57ABA7C02C0C3"><enum>(3)</enum><text>in subsection

			 (b)(1)(D), by inserting <quote>, including through linkages with overseas

			 institutions</quote> before the semicolon; and</text>

						</paragraph><paragraph id="ID75D6C8AE2B5740128C4DC4097B8BB1B5"><enum>(4)</enum><text>by adding at the

			 end the following:</text>

							<quoted-block id="ID18DC07A10DF14A4FB4D7FE615EEC6369" style="OLC">

								<subsection id="ID591FC1B4B0324112977B2DDA1873E02F"><enum>(c)</enum><header>Consultation</header><text>The

				Secretary shall, prior to requesting applications for funding under this title

				during each grant cycle, consult with and receive recommendations regarding

				national need for expertise in foreign languages and world regions from the

				head official, or a designee of such head official, of the National Security

				Council, the Department of Homeland Security, the Department of Defense, the

				Department of State, the Federal Bureau of Investigation, the Department of

				Labor, and the Department of Commerce, the Director of National Intelligence,

				and other relevant agencies. These entities shall provide information to the

				Secretary regarding how the entities utilize expertise and resources provided

				by grantees under this title. The Secretary shall take into account such

				recommendations and information when requesting applications for funding under

				this title, and shall make available to applicants a list of areas identified

				as areas of national need.</text>

								</subsection><subsection id="IDF8555D286F1143489B35FA41685FB244"><enum>(d)</enum><header>Survey</header><text>The

				Secretary shall assist grantees in developing a survey to administer to

				students who have participated in programs under this title to determine

				postparticipation placement. All grantees, where applicable, shall administer

				such survey not less often than annually and report such data to the

				Secretary.</text>

								</subsection><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section><section id="ID802FD50BC1AB40EEB809B8C6FBEAC8F9"><enum>7602.</enum><header>Graduate and

			 undergraduate language and area Centers and programs</header><text display-inline="no-display-inline">Section 602 (20 U.S.C. 1122) is

			 amended—</text>

						<paragraph id="IDF899E4E286F3418E8B4043CE17A3AA06"><enum>(1)</enum><text>in subsection

			 (a)—</text>

							<subparagraph id="ID01408C84A6324592A998427C1E364C9A"><enum>(A)</enum><text>in paragraph

			 (2)—</text>

								<clause id="ID9AF0123DAAAA4458AAF2B2D180687B3C"><enum>(i)</enum><text>in

			 subparagraph (G), by striking <quote>and</quote> after the semicolon;</text>

								</clause><clause id="IDAF82FF429D034FEDA72F774E23BA72DA"><enum>(ii)</enum><text>in

			 subparagraph (H), by striking the period and inserting <quote>; and</quote>;

			 and</text>

								</clause><clause id="ID49427E2A146D4BD79F5EF88A6CA598B8"><enum>(iii)</enum><text>by adding at

			 the end the following:</text>

									<quoted-block id="ID5BF2D580338C4288967750AC775FB38D" style="OLC">

										<subparagraph id="IDC0A99F95FF294D9284D9274D3A12D782"><enum>(I)</enum><text>support for

				instructors of the less commonly taught

				languages.</text>

										</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</clause></subparagraph><subparagraph id="ID346F9D7520684E1BB1017CA1778A908C"><enum>(B)</enum><text>in paragraph

			 (4)—</text>

								<clause id="ID612AF6D84A2447588DDE25DA87FFD554"><enum>(i)</enum><text>by

			 redesignating subparagraphs (C) through (E) as subparagraphs (D) through (F),

			 respectively;</text>

								</clause><clause id="ID24DAB03AEE6D45AB8E27916ED63A5DBC"><enum>(ii)</enum><text>by

			 inserting after subparagraph (B) the following:</text>

									<quoted-block id="ID023DE02FF8EA4A6EA85EA95BE37243FB" style="OLC">

										<subparagraph id="ID279919444AF443FE9DE5FC868F83DF83"><enum>(C)</enum><text>Programs of

				linkage or outreach between or among—</text>

											<clause id="ID5226D462B0624208A7C50EBDEE92993E"><enum>(i)</enum><text>foreign language,

				area studies, or other international fields; and</text>

											</clause><clause id="ID3C80340A31D4406E864EFE4FBC690757"><enum>(ii)</enum><text>State

				educational agencies or local educational

				agencies.</text>

											</clause></subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</clause><clause id="ID4D8CBD1FA8064A6FA8BD9FB77AD2359F"><enum>(iii)</enum><text>in subparagraph

			 (F) (as redesignated by clause (i)), by striking <quote>and (D)</quote> and

			 inserting <quote>(D), and (E)</quote>;</text>

								</clause></subparagraph></paragraph><paragraph id="ID1D97DB5D4C2A4CD093B0277BFBECF643"><enum>(2)</enum><text>in subsection

			 (b)—</text>

							<subparagraph id="IDCDB0B8A0F29A46A7B819C00090A35B27"><enum>(A)</enum><text>in the subsection

			 heading, by striking <quote><header-in-text level="subsection">Graduate</header-in-text></quote>; and</text>

							</subparagraph><subparagraph id="ID6E9821A99FCE4E139E231B1EC0F1AD34"><enum>(B)</enum><text>by striking

			 paragraph (2) and inserting the following:</text>

								<quoted-block id="ID405EE312E4EA4C6381A036C1DFF93C08" style="OLC">

									<paragraph id="IDEC41A335A398455D98286C56F2FB797A"><enum>(2)</enum><header>Eligible

				students</header><text>A student receiving a stipend described in paragraph (1)

				shall be engaged—</text>

										<subparagraph id="IDF648F479192D4BBF80923E312FF9AB5F"><enum>(A)</enum><text>in an

				instructional program with stated performance goals for functional foreign

				language use or in a program developing such performance goals, in combination

				with area studies, international studies, or the international aspects of a

				professional studies program; and</text>

										</subparagraph><subparagraph id="IDB06F28D39EF74063A72BE1E056B03313"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="ID02477F8087ED48EDAD4EF1D98B600F19"><enum>(i)</enum><text>in the case of an

				undergraduate student, in the intermediate or advanced study of a less commonly

				taught language; or</text>

											</clause><clause id="ID1B31647DF6DC433ABF92BF942B6408ED" indent="up1"><enum>(ii)</enum><text>in the case of a graduate student,

				in graduate study in connection with a program described in subparagraph (A),

				including—</text>

												<subclause id="IDDF99E3E53018434FB7E196697594203A"><enum>(I)</enum><text>predissertation level study;</text>

												</subclause><subclause id="ID6EEADF457C5D4064826CB09555F1F978"><enum>(II)</enum><text>preparation for dissertation

				research;</text>

												</subclause><subclause id="ID74BCD3174A604708AD54B0786671B027"><enum>(III)</enum><text>dissertation research abroad; or</text>

												</subclause><subclause id="ID18554BACAB344FE59B9153B8C13BDAA9"><enum>(IV)</enum><text>dissertation

				writing.</text>

												</subclause></clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="IDCC2FC7E5582448079C046218C6C92E2E"><enum>(3)</enum><text>by striking

			 subsection (d) and inserting the following:</text>

							<quoted-block id="ID485BA3A94E3744D9B5F11868C0E3D02F" style="OLC">

								<subsection id="ID980E5CF156AF4FBCBE48476A02CB5B20"><enum>(d)</enum><header>Allowances</header>

									<paragraph id="ID666E9C72030A46B7918B53F5C9825214"><enum>(1)</enum><header>Graduate level

				recipients</header><text>A stipend awarded to a graduate level recipient may

				include allowances for dependents and for travel for research and study in the

				United States and abroad.</text>

									</paragraph><paragraph id="ID06F4CB590573457CAB425887453E4D3A"><enum>(2)</enum><header>Undergraduate

				level recipients</header><text>A stipend awarded to an undergraduate level

				recipient may include an allowance for educational programs in the United

				States or educational programs abroad that—</text>

										<subparagraph id="ID45986B96573547878E7CAFBD967B211D"><enum>(A)</enum><text>are closely

				linked to the overall goals of the recipient’s course of study; and</text>

										</subparagraph><subparagraph id="ID8111395EBF87475DA67BFB5EB597B337"><enum>(B)</enum><text>have the purpose

				of promoting foreign language fluency and knowledge of foreign

				cultures.</text>

										</subparagraph></paragraph></subsection><after-quoted-block>;

				and</after-quoted-block></quoted-block>

						</paragraph><paragraph id="ID9426CB0E89EA4A9A8E0F75AF506BAAD5"><enum>(4)</enum><text>by adding at the

			 end the following:</text>

							<quoted-block id="ID562CD94816984A64BCDDDBAE5762D936" style="OLC">

								<subsection id="ID9475A4EEC82743438B020CC66D43C112"><enum>(e)</enum><header>Application</header><text>Each

				institution or combination of institutions desiring a grant under this section

				shall submit an application to the Secretary at such time, in such manner, and

				accompanied by such information and assurances as the Secretary may require.

				Each application shall include an explanation of how the activities funded by

				the grant will reflect diverse perspectives and a wide range of views and

				generate debate on world regions and international affairs. Each application

				shall also describe how the applicant will address disputes regarding whether

				activities funded under the application reflect diverse perspectives and a wide

				range of views. Each application shall also include a description of how the

				applicant will encourage government service in areas of national need as

				identified by the

				Secretary.</text>

								</subsection><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section><section id="ID1EE600D35DD64D46AA69C3739A5A0AD7"><enum>7603.</enum><header>Undergraduate

			 international studies and foreign language programs</header><text display-inline="no-display-inline">Section 604 (20 U.S.C. 1124) is

			 amended—</text>

						<paragraph id="ID017744478175487BAAFDE515D3FEB23B"><enum>(1)</enum><text>in subsection

			 (a)—</text>

							<subparagraph id="ID1588ED71A5FE4483A76921C3911E7ECC"><enum>(A)</enum><text>in paragraph

			 (2)—</text>

								<clause id="ID57B3BA28E2DC4D4B8D8BAADE7579CA15"><enum>(i)</enum><text>by

			 redesignating subparagraphs (I) through (M) as subparagraphs (J) through (N),

			 respectively; and</text>

								</clause><clause id="ID7FA5C86BFEB542BA99CC84D6A82FF4FC"><enum>(ii)</enum><text>by

			 inserting after subparagraph (H) the following:</text>

									<quoted-block id="ID521979F9E1394C508C96017DDB68EDDA" style="OLC">

										<subparagraph id="IDB1A5F08942A643A28FD918F1E4D6CF0D"><enum>(I)</enum><text>providing

				subgrants to undergraduate students for educational programs abroad

				that—</text>

											<clause id="ID8C80225C864A410FB543C496B9EC7E48"><enum>(i)</enum><text>are closely

				linked to the overall goals of the program for which the grant is awarded;

				and</text>

											</clause><clause id="ID9EBE956028934C579ABF9FE20F2DE937"><enum>(ii)</enum><text>have the purpose

				of promoting foreign language fluency and knowledge of foreign

				cultures;</text>

											</clause></subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</clause></subparagraph><subparagraph id="ID7A3C98471D6945AF992C8ACCAA377917"><enum>(B)</enum><text>in paragraph

			 (7)—</text>

								<clause id="ID91762317942D4F11A9212CCA8EB43937"><enum>(i)</enum><text>in

			 subparagraph (C), by striking <quote>and</quote> after the semicolon;</text>

								</clause><clause id="ID725AC96CAFA544618881ED07980ADCDD"><enum>(ii)</enum><text>in

			 subparagraph (D), by striking the period at the end and inserting a semicolon;

			 and</text>

								</clause><clause id="IDB7431657084A4963BD2BAC94EFDA4F99"><enum>(iii)</enum><text>by adding at

			 the end the following:</text>

									<quoted-block id="ID891551C77F3C412CBC5F27DE2C11AD83" style="OLC">

										<subparagraph id="ID6492C1BB4E0440A68F9514FDDE31CF8A"><enum>(E)</enum><text>an explanation of

				how the activities funded by the grant will reflect diverse perspectives and a

				wide range of views and generate debate on world regions and international

				affairs, where applicable;</text>

										</subparagraph><subparagraph id="ID949FDA47D2344813A0409F4C471F0A08"><enum>(F)</enum><text>a description of

				how the applicant will address disputes regarding whether the activities funded

				under the application reflect diverse perspectives and a wide range of views;

				and</text>

										</subparagraph><subparagraph id="IDB11B1D6452E64FF492F400393A829F08"><enum>(G)</enum><text>a description of

				how the applicant will encourage government service in areas of national need

				as identified by the Secretary.</text>

										</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</clause></subparagraph></paragraph><paragraph id="IDFE61438B404A446A904156F3F369AE80"><enum>(2)</enum><text>in subsection

			 (c)—</text>

							<subparagraph id="ID4ACA8C58573B4AB38C0FE89A9C4C6D17"><enum>(A)</enum><text>by striking

			 “<header-in-text>Funding Support</header-in-text>.—The Secretary” and inserting

			 “<header-in-text>Funding Rules</header-in-text>.—</text>

								<quoted-block id="IDB937CB39CE47483E9803FC9A0767AE63" style="OLC">

									<paragraph id="IDE1891BA7BF4F44A987B41C1BFB253D59"><enum>(1)</enum><header>The

				secretary</header><text>The

				Secretary</text>

									</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="ID91B820C7619849268678C805DB8DF9E3"><enum>(B)</enum><text>by striking

			 <quote>10</quote> and inserting <quote>20</quote>; and</text>

							</subparagraph><subparagraph id="ID8BDFC282CB044649A41AB17A77F0ED73"><enum>(C)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="ID50801CD3278B4D4EBE4816911B411CBE" style="OLC">

									<paragraph id="IDC1C8E1B982EB4077B05B82F304B7488B"><enum>(2)</enum><header>Grantees</header><text>Of

				the total amount of grant funds awarded to a grantee under this section, the

				grantee may use not more than 10 percent of such funds for the activity

				described in subsection

				(a)(2)(I).</text>

									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph></section><section id="ID0F4E545FEFE34302B3B6CFB393A2C6B2"><enum>7604.</enum><header>Research;

			 studies</header><text display-inline="no-display-inline">Section 605(a) (20

			 U.S.C. 1125(a)) is amended—</text>

						<paragraph id="IDFD8C9664E6364200B2BC63926F21B877"><enum>(1)</enum><text>in paragraph (8),

			 by striking <quote>and</quote> after the semicolon;</text>

						</paragraph><paragraph id="ID9121E7B524ED4102B620DC083CA532AD"><enum>(2)</enum><text>in paragraph (9),

			 by striking the period and inserting a semicolon; and</text>

						</paragraph><paragraph id="IDA5083D630ED8432697CD9BC0B599B0ED"><enum>(3)</enum><text>by adding at the

			 end the following:</text>

							<quoted-block id="IDE5F2504A9FBA46F1AF336DEF08E3A2AF" style="OLC">

								<paragraph id="ID7DBFCB2316664CEF9F5E5253192CFEBB"><enum>(10)</enum><text>evaluation of

				the extent to which programs assisted under this title reflect diverse

				perspectives and a wide range of views and generate debate on world regions and

				international affairs;</text>

								</paragraph><paragraph id="ID3D75C7A45AE04FCE8E136D22DCA3B1E9"><enum>(11)</enum><text>the systematic

				collection, analysis, and dissemination of data that contribute to achieving

				the purposes of this part; and</text>

								</paragraph><paragraph id="ID664CB2C60F7140D89E4D92B8D67C7C60"><enum>(12)</enum><text>support for

				programs or activities to make data collected, analyzed, or disseminated under

				this section publicly available and easy to

				understand.</text>

								</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section><section id="IDA834C0468D73424E93094DFCA8FB4601"><enum>7605.</enum><header>Technological

			 innovation and cooperation for foreign information access</header><text display-inline="no-display-inline">Section 606 (20 U.S.C. 1126) is

			 amended—</text>

						<paragraph id="ID752FE4A14A714B7E9C082DDB27DF3A1C"><enum>(1)</enum><text>in subsection

			 (a)—</text>

							<subparagraph id="IDEDA0778BE6A2445BAF6D8230C8781232"><enum>(A)</enum><text>by striking

			 <quote>new electronic technologies</quote> and insert <quote>electronic

			 technologies</quote>;</text>

							</subparagraph><subparagraph id="ID9ACE46BBC1EE40BCA6B64A43632D01F8"><enum>(B)</enum><text>by inserting

			 <quote>from foreign sources</quote> after <quote>disseminate

			 information</quote>;</text>

							</subparagraph><subparagraph id="ID5A84377C32A541F0A7E13BCB94C5D5E0"><enum>(C)</enum><text>by striking

			 “<header-in-text>Authority</header-in-text>.—The Secretary” and insert

			 “<header-in-text>Authority</header-in-text>.—</text>

								<quoted-block id="ID85B76F89ED384FBDADDECD5C66F97EC3" style="OLC">

									<paragraph id="ID2D6C5ECB91974C15912CF574DFD16D4D"><enum>(1)</enum><header>In

				general</header><text>The Secretary</text>

									</paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="ID68DEF5F441164366A976D85A587C7F87"><enum>(D)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="ID05CD83C5D6574CFC9774F7176E126A46" style="OLC">

									<paragraph id="ID0B60F76AA02C41518D97B4886ACD9260"><enum>(2)</enum><header>Partnerships

				with not-for-profit educational organizations</header><text>The Secretary may

				award grants under this section to carry out the activities authorized under

				this section to the following:</text>

										<subparagraph id="ID4559D816DBAE4E0992807152D713556B"><enum>(A)</enum><text>An institution of

				higher education.</text>

										</subparagraph><subparagraph id="IDF6957294F8A74795973F54F8BAE7FC1C"><enum>(B)</enum><text>A public or

				nonprofit private library.</text>

										</subparagraph><subparagraph id="ID92D6EA2709504307991570B0549DA207"><enum>(C)</enum><text>A consortium of

				an institution of higher education and 1 or more of the following:</text>

											<clause id="ID0A181D96745C4D40B4F068F471E757A9"><enum>(i)</enum><text>Another

				institution of higher education.</text>

											</clause><clause id="IDCA9F03FEC0714089BB1C54B9A09988AF"><enum>(ii)</enum><text>A

				library.</text>

											</clause><clause id="IDEF9042A096E14943B5405593C38A8857"><enum>(iii)</enum><text>A

				not-for-profit educational

				organization.</text>

											</clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="ID4B228882FF6140FCAC67AE44E0D50E84"><enum>(2)</enum><text>in subsection

			 (b)—</text>

							<subparagraph id="IDADDCD9EEDCC64C83A04F4062C55F8A32"><enum>(A)</enum><text>in paragraph (1),

			 by striking <quote>to facilitate access to</quote> and inserting <quote>to

			 acquire, facilitate access to,</quote>;</text>

							</subparagraph><subparagraph id="ID7151C296BD38478CBA39272DE0180E74"><enum>(B)</enum><text>in paragraph (2),

			 by inserting <quote>or standards for</quote> after <quote>means

			 of</quote>;</text>

							</subparagraph><subparagraph id="ID53B15F429E0F4F9599552EEAEACBBF92"><enum>(C)</enum><text>in paragraph (6),

			 by striking <quote>and</quote> after the semicolon;</text>

							</subparagraph><subparagraph id="IDB4AC1AE67E944B2E8AF317879C9567D2"><enum>(D)</enum><text>in paragraph (7),

			 by striking the period and inserting a semicolon; and</text>

							</subparagraph><subparagraph id="ID697BCB0F8F4D4D8897EBF3D18E8ECF15"><enum>(E)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="ID81ADCE9100B0405FBD222962CE0B9625" style="OLC">

									<paragraph id="ID554608DA49FE4BE3B32A313F6A0B9F2F"><enum>(8)</enum><text>to establish

				linkages to facilitate carrying out the activities described in this subsection

				between—</text>

										<subparagraph id="ID763EA1A8D4764DB086B129676AB88FB4"><enum>(A)</enum><text>the institutions

				of higher education, libraries, and consortia receiving grants under this

				section; and</text>

										</subparagraph><subparagraph id="ID99CA56A5FCA040DBA13C429E587A05CC"><enum>(B)</enum><text>institutions of

				higher education, not-for-profit educational organizations, and libraries

				overseas; and</text>

										</subparagraph></paragraph><paragraph id="ID0086D2E2B6054AAE9C3547CDC27280D4"><enum>(9)</enum><text>to carry out

				other activities that the Secretary determines are consistent with the purpose

				of the grants or contracts awarded under this

				section.</text>

									</paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</subparagraph></paragraph><paragraph id="ID168F3E75E2E649538F2E353004E666C1"><enum>(3)</enum><text>in subsection

			 (c), by striking <quote>institution or consortium</quote> and inserting

			 <quote>institution of higher education, library, or consortium</quote>.</text>

						</paragraph></section><section id="ID56F322CBF75240B4886CCB72177222CB"><enum>7606.</enum><header>Selection of

			 certain grant recipients</header><text display-inline="no-display-inline">Section 607 (20 U.S.C. 1127) is

			 amended—</text>

						<paragraph id="ID7B64DDB5658F42D385DE9D8B104CA364"><enum>(1)</enum><text>in subsection

			 (a), by striking “evaluates the applications for comprehensive and

			 undergraduate language and area centers and programs.” and inserting

			 “evaluates—</text>

							<quoted-block id="ID85C302AE2DD44DFABE7F21AB4BFA8461" style="OLC">

								<paragraph id="ID065EF18295B844AAB22DD948021144A3"><enum>(1)</enum><text>the applications

				for comprehensive foreign language and area or international studies centers

				and programs; and</text>

								</paragraph><paragraph id="ID6B29BC2F56EC4BF7B53D3ADF65AD3538"><enum>(2)</enum><text>the applications

				for undergraduate foreign language and area or international studies centers

				and programs.</text>

								</paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

						</paragraph><paragraph id="ID695FEDA4D6244B95A2D3C3FDEC791853"><enum>(2)</enum><text>in subsection

			 (b), by adding at the end the following: <quote>The Secretary shall also

			 consider an applicant’s record of sending students into public service and an

			 applicant’s stated efforts to increase the number of students that go into

			 public service.</quote>.</text>

						</paragraph></section><section id="ID2187F484D122454FA1D5E03DAEF2A8D1"><enum>7607.</enum><header>American

			 overseas research Centers</header><text display-inline="no-display-inline">Section 609 (20 U.S.C. 1128a) is amended by

			 adding at the end the following:</text>

						<quoted-block id="IDDB8302E43AF74F8D904746ED653213B2" style="OLC">

							<subsection id="ID8BDC1BA123EA4329AD78C072F69B7D40"><enum>(e)</enum><header>Application</header><text>Each

				center desiring a grant under this section shall submit an application to the

				Secretary at such time, in such manner, and accompanied by such information and

				assurances as the Secretary may require. Each application shall include how the

				activities funded by the grant will reflect diverse perspectives and a wide

				range of views and generate debate on world regions and international affairs,

				where applicable. Each application shall also describe how the applicant will

				address disputes regarding whether the activities funded under the application

				reflect diverse perspectives and a wide range of

				views.</text>

							</subsection><after-quoted-block>.</after-quoted-block></quoted-block>

					</section><section id="ID2E23E8346EB24CB38999B599DAC50296"><enum>7608.</enum><header>Authorization

			 of appropriations for international and foreign language studies</header><text display-inline="no-display-inline">Section 610 (20 U.S.C. 1128b) is amended by

			 striking <quote>$80,000,000 for fiscal year 1999</quote> and all that follows

			 through the period and inserting <quote>such sums as may be necessary for

			 fiscal year 2006 and each of the 5 succeeding fiscal years.</quote>.</text>

					</section><section id="ID7244D38B59354661A55C901ED290D1AE"><enum>7609.</enum><header>Centers for

			 international business education</header><text display-inline="no-display-inline">Section 612(f) (20 U.S.C. 1130–1(f)) is

			 amended—</text>

						<paragraph id="IDAC6207A171464092A02D6289FB1FDCBE"><enum>(1)</enum><text>in paragraph (3),

			 by striking <quote>and</quote> after the semicolon;</text>

						</paragraph><paragraph id="IDD937FAED08ED469AA5F9A387F9804A08"><enum>(2)</enum><text>in paragraph (4),

			 by striking the period at the end and inserting <quote>; and</quote>;

			 and</text>

						</paragraph><paragraph id="ID03FD64BBE0E94A3690267734AD01A8F6"><enum>(3)</enum><text>by adding at the

			 end the following:</text>

							<quoted-block id="IDAB5AB544DCB5477CA5FBAAB2F1C84666" style="OLC">

								<paragraph id="IDC8ABA3CA9E3C42F89CEE8900A3045FBB"><enum>(5)</enum><text>assurances that

				activities funded by the grant will reflect diverse perspectives and a wide

				range of views and generate debate on world regions and international affairs,

				where

				applicable.</text>

								</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section><section id="ID3B16D1040DA948949BD2EB59401183D9"><enum>7610.</enum><header>Education and

			 training programs</header><text display-inline="no-display-inline">Section

			 613(c) (20 U.S.C. 1130a(c)) is amended by adding at the end the following:

			 <quote>Each such application shall include an assurance that, where applicable,

			 the activities funded by the grant will reflect diverse perspectives and a wide

			 range of views on world regions and international affairs.</quote>.</text>

					</section><section id="IDD12347CC42DF4AEAAE27BE3F81CD078A"><enum>7611.</enum><header>Authorization

			 of appropriations for business and international education

			 programs</header><text display-inline="no-display-inline">Section 614 (20

			 U.S.C. 1130b) is amended—</text>

						<paragraph id="IDB51E29A405D840ADAAD31E1F8AD917F4"><enum>(1)</enum><text>in subsection

			 (a), by striking <quote>$11,000,000 for fiscal year 1999</quote> and all that

			 follows through <quote>fiscal years</quote> and inserting <quote>such sums as

			 may be necessary for fiscal year 2006 and each of the 5 succeeding fiscal

			 years</quote>; and</text>

						</paragraph><paragraph id="IDFF39F6BB25D94BF1B8CFE8C253851539"><enum>(2)</enum><text>in subsection

			 (b), by striking <quote>$7,000,000 for fiscal year 1999</quote> and all that

			 follows through <quote>fiscal years,</quote> and inserting <quote>such sums as

			 may be necessary for fiscal year 2006 and each of the 5 succeeding fiscal

			 years</quote>.</text>

						</paragraph></section><section id="IDA5DE4DE8852A4429877CCED8E3E0F457"><enum>7612.</enum><header>Minority

			 foreign service professional development Program</header><text display-inline="no-display-inline">Section 621 (20 U.S.C. 1131) is

			 amended—</text>

						<paragraph id="IDA496986070944AD0BB8AD29E4295EDFA"><enum>(1)</enum><text>in subsection

			 (c), by adding at the end the following: <quote>Each application shall include

			 a description of how the activities funded by the grant will reflect diverse

			 perspectives and a wide range of views on world regions and international

			 affairs, where applicable.</quote>; and</text>

						</paragraph><paragraph id="IDB02B33C2CBB248D3BC3FDC43343EB595"><enum>(2)</enum><text>in subsection

			 (e)—</text>

							<subparagraph id="IDB8A4F1835EDF4C1FB8D4F122ABD0E92B"><enum>(A)</enum><text>by striking

			 “<header-in-text>Match Required</header-in-text>.—The eligible” and inserting

			 “<header-in-text>Matching Funds</header-in-text>.—</text>

								<quoted-block id="ID1E6C968B0CFC4B899867F5A25FEC1713" style="OLC">

									<paragraph id="ID7BF1D34A8A984CF1A427532073A58D99"><enum>(1)</enum><header>In

				general</header><text>Subject to paragraph (2), the

				eligible</text>

									</paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

							</subparagraph><subparagraph id="IDF2B08B898F804B43AF3D6A00B7B10C6A"><enum>(B)</enum><text>by adding at the

			 end the following:</text>

								<quoted-block id="ID4398AD7E8C204301BFED29BE967528C4" style="OLC">

									<paragraph id="IDACC7041A1CFA4E6F89B17D22BEE7DDAC"><enum>(2)</enum><header>Waiver</header><text>The

				Secretary may waive the requirement of paragraph (1) for an eligible recipient

				if the Secretary determines such waiver is

				appropriate.</text>

									</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

							</subparagraph></paragraph></section><section id="ID1D59CD35C8454B13B481B4FDBA8BB0F3"><enum>7613.</enum><header>Institutional

			 development</header><text display-inline="no-display-inline">Section 622 (20

			 U.S.C. 1131–1) is amended—</text>

						<paragraph id="ID07C71B74DE50419EB47B2E47EEAFFA81"><enum>(1)</enum><text>in subsection

			 (a)—</text>

							<subparagraph id="ID55B6DEBED93F430DAFE448AC2DEB9C36"><enum>(A)</enum><text>by striking

			 <quote>Tribally Controlled Colleges or Universities</quote> and inserting

			 <quote>tribally controlled colleges or universities</quote>; and</text>

							</subparagraph><subparagraph id="IDDF5369881B354A3A9EC9867FBADE6CE2"><enum>(B)</enum><text>by striking

			 <quote>international affairs programs.</quote> and inserting

			 <quote>international affairs, international business, and foreign language

			 study programs, including the teaching of foreign languages, at such colleges,

			 universities, and institutions, respectively, through increased collaboration

			 with institutions of higher education that receive funding under this

			 title.</quote>; and</text>

							</subparagraph></paragraph><paragraph id="ID7FCF7F1DC1F14552B3F0905032E3A2F1"><enum>(2)</enum><text>in subsection

			 (c)—</text>

							<subparagraph id="IDF4AF5103102F43BDA6452D9E4454F744"><enum>(A)</enum><text>by striking

			 paragraphs (1) and (3); and</text>

							</subparagraph><subparagraph id="ID19D783079CF14C229504514A2CDEE025"><enum>(B)</enum><text>by redesignating

			 paragraphs (2) and (4) as paragraphs (1) and (2), respectively.</text>

							</subparagraph></paragraph></section><section id="IDDF8E8A7DF03D4595A8077086B5D80670"><enum>7614.</enum><header>Study abroad

			 Program</header><text display-inline="no-display-inline">Section 623(a) (20

			 U.S.C. 1131a(a)) is amended—</text>

						<paragraph id="IDF4132F08003E4F629C65E4B24D125829"><enum>(1)</enum><text>by striking

			 <quote>as defined in section 322 of this Act</quote>; and</text>

						</paragraph><paragraph id="IDD4AF9C702E4048F99C8EA10BDADBA699"><enum>(2)</enum><text>by striking

			 <quote>tribally controlled Indian community colleges as defined in the Tribally

			 Controlled Community College Assistance Act of 1978</quote> and inserting

			 <quote>tribally controlled colleges or universities</quote>.</text>

						</paragraph></section><section id="ID14DD46BF51194E80A52E16F7FA5FF859"><enum>7615.</enum><header>Advanced

			 degree in international relations</header><text display-inline="no-display-inline">Section 624 (20 U.S.C. 1131b) is

			 amended—</text>

						<paragraph id="ID6AC7BFAF7319415181D00B9A702D51A9"><enum>(1)</enum><text>in the section

			 heading, by striking <quote><header-in-text>masters</header-in-text></quote>

			 and inserting <quote><header-in-text>advanced</header-in-text></quote>;</text>

						</paragraph><paragraph id="ID783B78E5CB6F46ADB97145CAC288977C"><enum>(2)</enum><text>in the first

			 sentence, by inserting <quote>, and in exceptional circumstances, a doctoral

			 degree,</quote> after <quote>masters degree</quote>;</text>

						</paragraph><paragraph id="ID2C946C09F5674792AB8AD1DD879B3EFD"><enum>(3)</enum><text>in the second

			 sentence, by striking <quote>masters degree</quote> and inserting

			 <quote>advanced degree</quote>; and</text>

						</paragraph><paragraph id="IDD9FED9412C4D46B486BFD4030A92B157"><enum>(4)</enum><text>in the fourth

			 sentence, by striking <quote>United States</quote> and inserting <quote>United

			 States.</quote>.</text>

						</paragraph></section><section id="ID450A8A02EC094EF2A9F21904441246D8"><enum>7616.</enum><header>Internships</header><text display-inline="no-display-inline">Section 625 (20 U.S.C. 1131c) is

			 amended—</text>

						<paragraph id="ID6F1775B959EB4B2D98C042A6C1F86905"><enum>(1)</enum><text>in subsection

			 (a)—</text>

							<subparagraph id="IDF7FF5A920264476D9EEFC0D4102C3EF9"><enum>(A)</enum><text>by striking

			 <quote>as defined in section 322 of this Act</quote>;</text>

							</subparagraph><subparagraph id="ID4D0165ACA4DB4AF8814892DFEF0FFB13"><enum>(B)</enum><text>by striking

			 <quote>tribally controlled Indian community colleges as defined in the Tribally

			 Controlled Community College Assistance Act of 1978</quote> and inserting

			 <quote>tribally controlled colleges or universities</quote>;</text>

							</subparagraph><subparagraph id="IDC52293164A164A1DAB4BC31664241BE7"><enum>(C)</enum><text>by striking

			 <quote>an international</quote> and inserting <quote>international,</quote>;

			 and</text>

							</subparagraph><subparagraph id="ID22CB431F51454D9E90C4FF38ADAB2835"><enum>(D)</enum><text>by striking

			 <quote>the United States Information Agency</quote> and inserting <quote>the

			 Department of State</quote>; and</text>

							</subparagraph></paragraph><paragraph id="IDF22718BFC30F4E14AFCC7297312416DE"><enum>(2)</enum><text>in subsection

			 (c)(1)—</text>

							<subparagraph id="ID910E9C179F6242F58A556F9AE3A20114"><enum>(A)</enum><text>in subparagraph

			 (E), by inserting <quote>and</quote> after the semicolon;</text>

							</subparagraph><subparagraph id="ID509EDD308662410DAF6A8AE5B5016545"><enum>(B)</enum><text>in subparagraph

			 (F), by striking <quote>; and</quote> and inserting a period; and</text>

							</subparagraph><subparagraph id="ID7301085EB8034F5A9970CDD0A9E63440"><enum>(C)</enum><text>by striking

			 subparagraph (G).</text>

							</subparagraph></paragraph></section><section id="IDA4BBE740C67149DF930FC07D1B411BD0"><enum>7617.</enum><header>Financial

			 assistance</header><text display-inline="no-display-inline">Part C of title VI

			 (20 U.S.C. 1131 et seq.) is further amended—</text>

						<paragraph id="ID4172C739CB83401D880D03C3FE1F193B"><enum>(1)</enum><text>by redesignating

			 sections 626, 627, and 628 as sections 627, 628, and 629, respectively;

			 and</text>

						</paragraph><paragraph id="ID8D16C2551D384747BEF5028B52789515"><enum>(2)</enum><text>by inserting

			 after section 625 the following:</text>

							<quoted-block id="ID374E3C8D13F444B5A3C45A45CC97FE78" style="OLC">

								<section id="IDDC1E95055A0A4616A129E8E0F7C93DE1"><enum>626.</enum><header>Financial

				assistance</header>

									<subsection id="ID02CCF7A205A44B38A7A4847EA236F535"><enum>(a)</enum><header>Authority</header><text>The

				Institute may provide financial assistance, in the form of summer stipends

				described in subsection (b) and Ralph Bunche scholarship assistance described

				in subsection (c), to needy students to facilitate the participation of the

				students in the Institute’s programs under this part.</text>

									</subsection><subsection id="ID552B93C15126449A87BDC0CD3D8C6E53"><enum>(b)</enum><header>Summer

				Stipends</header>

										<paragraph id="IDDB0AD3A5AE3448E7B11B7DA5DDBABFFC"><enum>(1)</enum><header>Requirements</header><text>A

				student receiving a summer stipend under this section shall use such stipend to

				defray the student’s cost of participation in a summer institute program funded

				under this part, including the costs of travel, living, and educational

				expenses necessary for the student’s participation in such program.</text>

										</paragraph><paragraph id="ID180AC3A3F60E4A54B447749F8EBBE2D9"><enum>(2)</enum><header>Amount</header><text>A

				summer stipend awarded to a student under this section shall not exceed $3,000

				per summer.</text>

										</paragraph></subsection><subsection id="ID932882370B1A40D1A6D873758945E5B5"><enum>(c)</enum><header>Ralph Bunche

				Scholarship</header>

										<paragraph id="ID941EC4409E844D489987B9B17FC6BF26"><enum>(1)</enum><header>Requirements</header><text>A

				student receiving a Ralph Bunche scholarship under this section—</text>

											<subparagraph id="ID293D376D22EE4B43B27D880384845E4C"><enum>(A)</enum><text>shall be a

				full-time student at an institution of higher education who is accepted into a

				program funded under this part; and</text>

											</subparagraph><subparagraph id="IDDC6A67FAC9D94BF9AE7034990881FB1E"><enum>(B)</enum><text>shall use such

				scholarship to pay costs related to the cost of attendance, as defined in

				section 472, at the institution of higher education in which the student is

				enrolled.</text>

											</subparagraph></paragraph><paragraph id="ID96FA147BC46948E59F880A8AEFF404FA"><enum>(2)</enum><header>Amount and

				duration</header><text>A Ralph Bunche scholarship awarded to a student under

				this section shall not exceed $5,000 per academic

				year.</text>

										</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section><section id="ID24FACEFAB8D3473BA78F0A73F300E1BA"><enum>7618.</enum><header>Report</header><text display-inline="no-display-inline">Section 627 (as redesignated by section

			 7617(1)) (20 U.S.C. 1131d) is amended by striking <quote>annually</quote> and

			 inserting <quote>biennially</quote>.</text>

					</section><section id="ID65EB49AB69184A9B99E2D30B5ED476E9"><enum>7619.</enum><header>Gifts and

			 donations</header><text display-inline="no-display-inline">Section 628 (as

			 redesignated by section 7617(1)) (20 U.S.C. 1131e) is amended by striking

			 <quote>annual report described in section 626</quote> and inserting

			 <quote>biennial report described in section 627</quote>.</text>

					</section><section id="ID823068B06F354841BFC7F9630F8DB3EE"><enum>7620.</enum><header>Authorization

			 of appropriations for the Institute for international public

			 policy</header><text display-inline="no-display-inline">Section 629 (as

			 redesignated by section 7617(1)) (20 U.S.C. 1131f) is amended by striking

			 <quote>$10,000,000 for fiscal year 1999</quote> and all that follows through

			 the period and inserting <quote>such sums as may be necessary for fiscal year

			 2006 and each of the 5 succeeding fiscal years.</quote>.</text>

					</section><section id="ID7CB397D3506C4561A14F19C4EDD7A15E"><enum>7621.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 631 (20 U.S.C. 1132) is

			 amended—</text>

						<paragraph id="IDAA6C697FAD8C4A2A86C53C5D17E4CA53"><enum>(1)</enum><text>by redesignating

			 paragraphs (2), (3), (4), (5), (6), (7), (8), and (9), as paragraphs (8), (5),

			 (9), (2), (11), (3), (7), and (4), respectively;</text>

						</paragraph><paragraph id="IDE1E46BDB68A24063869B88819D83467B"><enum>(2)</enum><text>in paragraph (2),

			 as redesignated by paragraph (1), by striking <quote>comprehensive language and

			 area center</quote> and inserting <quote>comprehensive foreign language and

			 area or international studies center</quote>;</text>

						</paragraph><paragraph id="ID3848632E02E64311BAA1A8A23D99F801"><enum>(3)</enum><text>in paragraph

			 (11), as redesignated by paragraph (1), by striking <quote>undergraduate

			 language and area center</quote> and inserting <quote>undergraduate foreign

			 language and area or international studies center</quote>;</text>

						</paragraph><paragraph id="IDB829E003233D4889A72F8CDF2BB210ED"><enum>(4)</enum><text>in paragraph (3),

			 as redesignated by paragraph (1), by striking the first occurrence of the term

			 <term>critical languages</term> and inserting <quote>critical foreign

			 languages</quote>;</text>

						</paragraph><paragraph id="IDBEF23E9A47EA4BB79E27CAD1E7844CC7"><enum>(5)</enum><text>in paragraph (7),

			 as redesignated by paragraph (1), by striking <quote>and</quote> after the

			 semicolon;</text>

						</paragraph><paragraph id="ID7CAB282A9A944EAC854A6CE79BA3282F"><enum>(6)</enum><text>in paragraph (4),

			 as redesignated by paragraph (1), by striking the period at the end and

			 inserting a semicolon;</text>

						</paragraph><paragraph id="ID9E37DF2647614BE49B78D9C9FCD3468E"><enum>(7)</enum><text>by inserting

			 after paragraph (5), as redesignated by paragraph (1), the following:</text>

							<quoted-block id="IDC808927820324919A6F5BAA140BC2AB2" style="OLC">

								<paragraph id="IDAF94398603EB4C2A8F5DD6940C2A57FF"><enum>(6)</enum><text>the term

				<term>historically Black college and university</term> has the meaning given

				the term <term>part B institution</term> in section

				322;</text>

								</paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

						</paragraph><paragraph id="ID64F4523925AF4FCDB92E74E085E6776B"><enum>(8)</enum><text>by inserting

			 after paragraph (9), as redesignated by paragraph (1), the following:</text>

							<quoted-block id="IDE0151C5C49634803A278576CD3202E1E" style="OLC">

								<paragraph id="IDB0B05DA0F8ED46FE8ADBC41A46E0C78F"><enum>(10)</enum><text>the term

				<term>tribally controlled college or university</term> has the meaning given

				the term in section 2 of the Tribally Controlled College or University

				Assistance Act of 1978 (25 U.S.C. 1801);

				and</text>

								</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section><section id="ID38F97B840FDB42ED8C66C0E243CDB94A"><enum>7622.</enum><header>Assessment

			 and enforcement</header><text display-inline="no-display-inline">Part D of

			 title VI (20 U.S.C. 1132) is amended by adding at the end the following:</text>

						<quoted-block id="IDFD25BD261FCF45F3A56612F0EC5024D6" style="OLC">

							<section id="IDF89B9F6A02D54A4B90739C548CB28466"><enum>632.</enum><header>Assessment;

				enforcement; rule of construction</header>

								<subsection id="IDF1F58A43406144D8913E2A04712E831C"><enum>(a)</enum><header>In

				General</header><text>The Secretary is authorized to assess and ensure

				compliance with all the conditions and terms of grants provided under this

				title. If a complaint regarding activities funded under this title is not

				resolved under the process outlined in the relevant grantee’s application, and

				such complaint is filed with the Department, the Secretary shall be notified,

				and is authorized, when circumstances warrant, to immediately suspend future

				funding for the grant pending resolution of such dispute. Such resolution shall

				not exceed 60 days. The Secretary shall take the outcomes of such complaints

				into account when determining the renewal of grants.</text>

								</subsection><subsection id="IDEDB8329922A14B15867F339470F698D4"><enum>(b)</enum><header>Rule of

				Construction</header><text>Nothing in this title shall be construed to

				authorize the Secretary to mandate, direct, or control an institution of higher

				education’s specific instructional content, curriculum, or program of

				instruction.</text>

								</subsection></section><section id="IDB4159FD8166647F7BF76996D741C80CF"><enum>633.</enum><header>Evaluation,

				outreach, and information</header><text display-inline="no-display-inline">The

				Secretary may use not more than 1 percent of the funds made available under

				this title to carry out program evaluation, national outreach, and information

				dissemination activities relating to the programs authorized under this

				title.</text>

							</section><after-quoted-block>.</after-quoted-block></quoted-block>

					</section></chapter><chapter id="ID965C599F670D4B7B98090DE1F582DD85"><enum>8</enum><header>GRADUATE AND

			 POSTSECONDARY IMPROVEMENT PROGRAMS</header>

					<section id="ID2E6F1987FDDE442BBEC73D71772ECFA2"><enum>7701.</enum><header>Purpose</header><text display-inline="no-display-inline">Section 700(1)(B)(i) (20 U.S.C.

			 1133(1)(B)(i)) is amended by inserting <quote>, including those areas critical

			 to United States national and homeland security needs such as mathematics,

			 science, and engineering</quote> before the semicolon at the end.</text>

					</section><section id="ID0E0DE65B723F42349D8BF34BB88EBA2B"><enum>7702.</enum><header>Allocation of

			 Jacob K. Javits fellowships</header><text display-inline="no-display-inline">Section 702(a)(1) (20 U.S.C. 1134a(a)(1)) is

			 amended to read as follows:</text>

						<quoted-block id="IDB83E8C46EDBE4F2CAF93E73AD1B6D978" style="OLC">

							<paragraph id="ID9CDDF0A035F7405C82949AF45D431FF4"><enum>(1)</enum><header>Appointment</header>

								<subparagraph id="ID896ABF0E54BE47E3BA7AA6028E0FE4D3"><enum>(A)</enum><header>In

				general</header><text>The Secretary shall appoint a Jacob K. Javits Fellows

				Program Fellowship Board (referred to in this subpart as the

				<quote>Board</quote>) consisting of 9 individuals representative of both public

				and private institutions of higher education who are especially qualified to

				serve on the Board.</text>

								</subparagraph><subparagraph id="IDAEE60DA70B2446639B608446116D08FF"><enum>(B)</enum><header>Qualifications</header><text>In

				making appointments under subparagraph (A), the Secretary shall—</text>

									<clause id="ID1D26F4620057420A8FCF5248BB324986"><enum>(i)</enum><text>give due

				consideration to the appointment of individuals who are highly respected in the

				academic community;</text>

									</clause><clause id="ID506F70402F6F46F1A10EE7E2AA73E9DD"><enum>(ii)</enum><text>assure that

				individuals appointed to the Board are broadly representative of a range of

				disciplines in graduate education in arts, humanities, and social

				sciences;</text>

									</clause><clause id="ID85D9EDAC271340E3B25C84582CC57F92"><enum>(iii)</enum><text>appoint members

				to represent the various geographic regions of the United States; and</text>

									</clause><clause id="IDC45238F7015B4A8AA8A1033BBF34C59E"><enum>(iv)</enum><text>include

				representatives from minority institutions, as defined in section

				365.</text>

									</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</section><section id="ID35FD882BE3534CF8A8D122B88807B1DB"><enum>7703.</enum><header>Stipends</header><text display-inline="no-display-inline">Section 703(a) (20 U.S.C. 1134b(a)) is

			 amended by striking <quote>graduate fellowships</quote> and inserting

			 <quote>Graduate Research Fellowship Program</quote>.</text>

					</section><section id="IDCBF8CA83289D4B71A153B9F42108DA87"><enum>7704.</enum><header>Authorization

			 of appropriations for the Jacob K. Javits Fellowship Program</header><text display-inline="no-display-inline">Section 705 (20 U.S.C. 1134d) is amended by

			 striking <quote>$30,000,000 for fiscal year 1999</quote> and all that follows

			 through the period and inserting <quote>such sums as may be necessary for

			 fiscal year 2006 and each of the 5 succeeding fiscal years to carry out this

			 subpart.</quote>.</text>

					</section><section id="ID640A974AB904428FB48D7FECBAA1335D"><enum>7705.</enum><header>Institutional

			 eligibility under the graduate assistance in areas of national need

			 Program</header><text display-inline="no-display-inline">Section 712(b) (20

			 U.S.C. 1135a(b)) is amended to read as follows:</text>

						<quoted-block id="IDE05E8CD5469C4FE499E05F0EE85CC530" style="OLC">

							<subsection id="ID20E741A89E9F4016B6DB0983B4A6E958"><enum>(b)</enum><header>Designation of

				Areas of National Need</header><text>After consultation with appropriate

				Federal and nonprofit agencies and organizations, including the National

				Science Foundation, the Department of Defense, the Department of Homeland

				Security, the National Academy of Sciences, and the Bureau of Labor Statistics,

				the Secretary shall designate areas of national need. In making such

				designations, the Secretary shall take into consideration—</text>

								<paragraph id="IDCAAAC8F2E2A8458FB05B52CB21F37934"><enum>(1)</enum><text>the extent to

				which the interest in the area is compelling;</text>

								</paragraph><paragraph id="ID10AB2A9486F744D2AF02FF16BBD91F92"><enum>(2)</enum><text>the extent to

				which other Federal programs support postbaccalaureate study in the area

				concerned;</text>

								</paragraph><paragraph id="ID1165E883F5CF4245A0F0518E4628758A"><enum>(3)</enum><text>an assessment of

				how the program may achieve the most significant impact with available

				resources; and</text>

								</paragraph><paragraph id="ID0F8E60222CAB44D3B505462CEDF0B674"><enum>(4)</enum><text>an assessment of

				current and future professional workforce needs of the United

				States.</text>

								</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

					</section><section id="IDB126F8BAA05B43AF8A2AEBBA10C63FC6"><enum>7706.</enum><header>Awards to

			 graduate students</header><text display-inline="no-display-inline">Section 714

			 (20 U.S.C. 1135c) is amended—</text>

						<paragraph id="ID37BAC2D59EAB424AA6FCB166BE0750CE"><enum>(1)</enum><text>in subsection

			 (b)—</text>

							<subparagraph id="ID38420CD44C924AEDA0AD3CDB053D0474"><enum>(A)</enum><text>by striking

			 <quote>1999–2000</quote> and inserting <quote>2006–2007</quote>; and</text>

							</subparagraph><subparagraph id="IDC261064DC729458E9F32276A121E842F"><enum>(B)</enum><text>by striking

			 <quote>graduate fellowships</quote> and inserting <quote>Graduate Research

			 Fellowship Program</quote>; and</text>

							</subparagraph></paragraph><paragraph id="ID6C88AD76FD0B4371BDDDC1CC2F5E0B02"><enum>(2)</enum><text>in subsection

			 (c)—</text>

							<subparagraph id="IDAAE25C624AF54CB6B00A729C49C49E6F"><enum>(A)</enum><text>by striking

			 <quote>716(a)</quote> and inserting <quote>715(a)</quote>; and</text>

							</subparagraph><subparagraph id="ID4036D14AE5FE46CE91C09067AB9AE234"><enum>(B)</enum><text>by striking

			 <quote>714(b)(2)</quote> and inserting <quote>713(b)(2)</quote>.</text>

							</subparagraph></paragraph></section><section id="ID53D6407251324D698BC8FFAE98D2A9DB"><enum>7707.</enum><header>Additional

			 assistance for cost of education</header><text display-inline="no-display-inline">Section 715(a)(1) (20 U.S.C. 1135d(a)(1)) is

			 amended—</text>

						<paragraph id="ID27005AA656B24FCC990CD7F34213328B"><enum>(1)</enum><text>by striking

			 <quote>1999–2000</quote> and inserting <quote>2006–2007</quote>; and</text>

						</paragraph><paragraph id="ID25BFFE4E34F24B0491D291B181B067D0"><enum>(2)</enum><text>by striking

			 <quote>1998–1999</quote> and inserting <quote>2005–2006</quote>.</text>

						</paragraph></section><section id="ID1A2831CC1BCD4986ACDC4D501A065138"><enum>7708.</enum><header>Authorization

			 of appropriations for the graduate assistance in areas of national need

			 Program</header><text display-inline="no-display-inline">Section 716 (20 U.S.C.

			 1135e) is amended by striking <quote>$35,000,000 for fiscal year 1999</quote>

			 and all that follows through the period and inserting <quote>such sums as may

			 be necessary for fiscal year 2006 and each of the 5 succeeding fiscal years to

			 carry out this subpart.</quote>.</text>

					</section><section id="IDE60DE09987FC4A2CBB7C9CA0747F0D11"><enum>7709.</enum><header>Authorization

			 of appropriations for the Thurgood Marshall Legal Educational Opportunity

			 Program</header><text display-inline="no-display-inline">Section 721(h) (20

			 U.S.C. 1136(h)) is amended by striking <quote>$5,000,000 for fiscal year

			 1999</quote> and all that follows through the period and inserting <quote>such

			 sums as may be necessary for fiscal year 2006 and each of the 5 succeeding

			 fiscal years.</quote>.</text>

					</section><section id="ID6B2852C08B53499C8D68D947655CF191"><enum>7710.</enum><header>Fund for the

			 improvement of postsecondary education</header><text display-inline="no-display-inline">Section 741(a) (20 U.S.C. 1138(a)) is

			 amended—</text>

						<paragraph id="IDBF57ADA0244846B8A25EA72A0E732DCD"><enum>(1)</enum><text>by striking

			 paragraph (3) and inserting the following:</text>

							<quoted-block id="ID9A3356F163A146799FE2368D7C5FFDDC" style="OLC">

								<paragraph id="ID02E1D6B6F9D0408CAB98AEC6E79E3AC3"><enum>(3)</enum><text>the establishment

				and continuation of institutions, programs, consortia, collaborations, and

				other joint efforts based on the technology of communications, including those

				efforts that utilize distance education and technological advancements to

				educate and train postsecondary students (including health professionals

				serving medically underserved

				populations);</text>

								</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

						</paragraph><paragraph id="IDEAD5228964824961BE783C6AE088E193"><enum>(2)</enum><text>in paragraph (7),

			 by striking <quote>and</quote> after the semicolon;</text>

						</paragraph><paragraph id="ID6B27894AA3CE406F900DB058264B0B98"><enum>(3)</enum><text>in paragraph (8),

			 by striking the period at the end and inserting a semicolon; and</text>

						</paragraph><paragraph id="ID6D5F0F315D97450B8E2E36BACDF3D2BB"><enum>(4)</enum><text>by adding at the

			 end the following:</text>

							<quoted-block id="ID5BE3E9CB424C4185886C0248605D2B52" style="OLC">

								<paragraph id="IDE996D7BB85764CEAAF57787A18B87A80"><enum>(9)</enum><text>the introduction

				of reforms in remedial education, including English language instruction, to

				customize remedial courses to student goals and help students progress rapidly

				from remedial courses into core courses and through program completion;</text>

								</paragraph><paragraph id="IDB90F45A58F84424A830E4799FCDA7EF6"><enum>(10)</enum><text>the creation of

				consortia that join diverse institutions of higher education for the purpose of

				integrating curricular and co-curricular interdisciplinary study; and</text>

								</paragraph><paragraph id="ID645A22B7F4BA4B5B9C2B6D992FB9E591"><enum>(11)</enum><text>providing

				support and assistance to programs implementing integrated education reform

				services in order to improve secondary school graduation and college attendance

				and completion rates for disadvantaged

				students.</text>

								</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section><section id="IDFE6F451257384A48891E017EE39A8189"><enum>7711.</enum><header>Special

			 projects</header><text display-inline="no-display-inline">Section 744(c) (20

			 U.S.C. 1138c) is amended to read as follows:</text>

						<quoted-block id="ID4BE72ABF81304509A01B1859D5190EFE" style="OLC">

							<subsection id="IDC981C419FD064794BECEFC6716522E36"><enum>(c)</enum><header>Areas of

				National Need</header><text>Areas of national need shall include, at a minimum,

				the following:</text>

								<paragraph id="ID35CBC2F47CAD469AAAED538120180DF1"><enum>(1)</enum><text>Institutional

				restructuring to improve learning and promote productivity, efficiency, quality

				improvement, and cost and price control.</text>

								</paragraph><paragraph id="ID46B19D9A6B8F4D4AA79358F199CFFAA9"><enum>(2)</enum><text>Improvements in

				academic instruction and student learning, including efforts designed to assess

				the learning gains made by postsecondary students.</text>

								</paragraph><paragraph id="ID0699DA0A27664001BECEE9670B8D7B5F"><enum>(3)</enum><text>Articulation

				between 2- and 4-year institutions of higher education, including developing

				innovative methods for ensuring the successful transfer of students from 2- to

				4-year institutions of higher education.</text>

								</paragraph><paragraph id="ID043E2F779E5A40B8BE3DB42EC28F90F2"><enum>(4)</enum><text>Development,

				evaluation and dissemination of model programs, including model core curricula

				that—</text>

									<subparagraph id="IDDA25E286248C4232B746C71AEC0C5173"><enum>(A)</enum><text>provide students

				with a broad and integrated knowledge base;</text>

									</subparagraph><subparagraph id="ID32405D27B8194DD4BB839D6D274CCED0"><enum>(B)</enum><text>include, at a

				minimum, broad survey courses in English literature, American and world

				history, American political institutions, economics, philosophy, college-level

				mathematics, and the natural sciences; and</text>

									</subparagraph><subparagraph id="ID4B021DB4E89A40629E152E6CA316DDCE"><enum>(C)</enum><text>include

				sufficient study of a foreign language to lead to reading and writing

				competency in the foreign language.</text>

									</subparagraph></paragraph><paragraph id="IDCE761DD9F9FA48A09BF20F8DE96D2ED2"><enum>(5)</enum><text>International

				cooperation and student exchanges among postsecondary educational

				institutions.</text>

								</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

					</section><section id="ID8BAC5C8466E7400484C43371374D4786"><enum>7712.</enum><header>Authorization

			 of appropriations for the Fund for the improvement of postsecondary

			 education</header><text display-inline="no-display-inline">Section 745 (20

			 U.S.C. 1138d) is amended by striking <quote>$30,000,000 for fiscal year

			 1999</quote> and all that follows through the period and inserting <quote>such

			 sums as may be necessary for fiscal year 2006 and each of the 5 succeeding

			 fiscal years.</quote>.</text>

					</section><section id="ID77E2424BDBAD483AAC63433ACC030AEF"><enum>7713.</enum><header>Repeal of the

			 urban community service Program</header><text display-inline="no-display-inline">Part C of title VII (20 U.S.C. 1139 et seq.)

			 is repealed.</text>

					</section><section id="ID90CD27A401724089847327C816193D16"><enum>7714.</enum><header>Grants

			 authorized for demonstration projects to ensure students with disabilities

			 receive a quality higher education</header><text display-inline="no-display-inline">Section 762 (20 U.S.C. 1140a) is

			 amended—</text>

						<paragraph id="ID7B4B746F98784BE5B7D75E142C2F88D5"><enum>(1)</enum><text>in subsection

			 (b)—</text>

							<subparagraph id="IDF0FA7A03FDFB4A33B626A9E2011C2975"><enum>(A)</enum><text>in paragraph

			 (2)—</text>

								<clause id="IDD5272BB95EC640F581D0B805FFB1D94E"><enum>(i)</enum><text>in

			 subparagraph (A), by striking <quote>to teach students with

			 disabilities</quote> and inserting <quote>to teach and meet the academic and

			 programmatic needs of students with disabilities in order to improve retention

			 and completion of postsecondary education</quote>;</text>

								</clause><clause id="IDE419AB98C1AE4DB9A4BB1038A370B6F7"><enum>(ii)</enum><text>by

			 redesignating subparagraphs (B) and (C) as subparagraphs (C) and (F),

			 respectively;</text>

								</clause><clause id="ID463654985E624E0DA067DC8B91B65299"><enum>(iii)</enum><text>by inserting

			 after subparagraph (A) the following:</text>

									<quoted-block id="IDD294CF0413184073A043A640F04F630C" style="OLC">

										<subparagraph id="ID98DE512D531A47118502A791172424D2"><enum>(B)</enum><header>Effective

				transition practices</header><text>The development of innovative and effective

				teaching methods and strategies to ensure the successful transition of students

				with disabilities from secondary school to postsecondary

				education.</text>

										</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>

								</clause><clause id="IDD2FBA2793C424DAAB8D478B1105397F9"><enum>(iv)</enum><text>in

			 subparagraph (C), as redesignated by clause (ii), by striking the period at the

			 end and inserting <quote>, including data on the postsecondary education of and

			 impact on subsequent employment of students with disabilities. Such research,

			 information, and data shall be made publicly available and

			 accessible.</quote>;</text>

								</clause><clause id="ID380D216484FC4F418DFC490E163361D5"><enum>(v)</enum><text>by

			 inserting after subparagraph (C), as redesignated by clause (ii), the

			 following:</text>

									<quoted-block id="IDAB9CE97D6602460DA12FEF824CFBA440" style="OLC">

										<subparagraph id="ID067EEA4A4E5149F6815376430A2975CC"><enum>(D)</enum><header>Distance

				learning</header><text>The development of innovative and effective teaching

				methods and strategies to provide faculty and administrators with the ability

				to provide accessible distance education programs or classes that would enhance

				access of students with disabilities to higher education, including the use of

				accessible curriculum and electronic communication for instruction and

				advisement.</text>

										</subparagraph><subparagraph id="ID6648F007EB554790B1D8556412705788"><enum>(E)</enum><header>Disability

				career pathways</header><text>Training and providing support to secondary and

				postsecondary staff to encourage interest in, enhance awareness and

				understanding of, provide educational opportunities in, teach practical skills

				related to, and offer work-based opportunities in, disability related fields,

				among students, including students with disabilities. Such training and support

				may include developing means to offer students credit-bearing, college-level

				coursework, and career and educational

				counseling.</text>

										</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</clause><clause id="IDE0670DA54C4243329A655E86B7F7FE05"><enum>(vi)</enum><text>by

			 adding at the end the following:</text>

									<quoted-block id="ID0EC08A8D50E64E4386CEDF729C0B1A02" style="OLC">

										<subparagraph id="ID02F3CB7253D04F5697D773518F7B00D3"><enum>(G)</enum><header>Accessibility

				of education</header><text>Making postsecondary education more accessible to

				students with disabilities through curriculum

				development.</text>

										</subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</clause></subparagraph><subparagraph id="ID79AA055765B2466FB1D05B5E56EE4723"><enum>(B)</enum><text>in paragraph (3),

			 by striking <quote>subparagraphs (A) through (C)</quote> and inserting

			 <quote>subparagraphs (A) through (G)</quote>; and</text>

							</subparagraph></paragraph><paragraph id="ID88DFA3637D994BEBABC8AF7ED3FC70D2"><enum>(2)</enum><text>by adding at the

			 end the following:</text>

							<quoted-block id="ID67C271BF2CE44BF3A1DE68E9728A71EF" style="OLC">

								<subsection id="IDF89343EE2F504281800B16CD044298F7"><enum>(d)</enum><header>Report</header><text>The

				Secretary shall prepare and disseminate a report reviewing the activities of

				the demonstration projects authorized under this part and providing guidance

				and recommendations on how successful projects can be

				replicated.</text>

								</subsection><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section><section id="IDA1D838E0C4224A8EA304F46259195534"><enum>7715.</enum><header>Applications

			 for demonstration projects to ensure students with disabilities receive a

			 quality higher education</header><text display-inline="no-display-inline">Section 763 (20 U.S.C. 1140b) is

			 amended—</text>

						<paragraph id="IDB758E2448F104109BB603D4505A27629"><enum>(1)</enum><text>by striking

			 paragraph (1) and inserting the following:</text>

							<quoted-block id="ID927C90B6A266461195ED4F2629512E53" style="OLC">

								<paragraph id="IDCE5CAC33AAE24A12A4D76D2C87E71C95"><enum>(1)</enum><text>a description of

				how such institution plans to address the activities allowed under this

				part;</text>

								</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

						</paragraph><paragraph id="IDFAFE6D0D06444321917898F6B6CB3118"><enum>(2)</enum><text>in paragraph (2),

			 by striking <quote>and</quote> after the semicolon;</text>

						</paragraph><paragraph id="ID8307F0777AAE4D31A8C2570A175C0A86"><enum>(3)</enum><text>in paragraph (3),

			 by striking the period at the end and inserting <quote>; and</quote>;

			 and</text>

						</paragraph><paragraph id="ID63F16707C2AA4CB8BF6224D917E1FB04"><enum>(4)</enum><text>by adding at the

			 end the following:</text>

							<quoted-block id="ID6A95CCFB7992433DBD54724F9F23C64E" style="OLC">

								<paragraph id="ID88AD5116E96E464D93F4A89A82B5BC42"><enum>(4)</enum><text>a description of

				the extent to which the institution will work to replicate the research based

				and best practices of institutions of higher education with demonstrated

				success in serving students with

				disabilities.</text>

								</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></section><section id="IDDB2629970C0849B8A8D86CB53BB7B674"><enum>7716.</enum><header>Authorization

			 of appropriations for the demonstration projects to ensure students with

			 disabilities receive a quality higher education</header><text display-inline="no-display-inline">Section 765 (20 U.S.C. 1140d) is amended by

			 striking <quote>$10,000,000 for fiscal year 1999</quote> and all that follows

			 through the period and inserting <quote>such sums as may be necessary for

			 fiscal year 2006 and each of the 5 succeeding fiscal years.</quote>.</text>

					</section></chapter><chapter id="ID4DB103E385D74AC6A956AF7D427E3EB0"><enum>9</enum><header>MISCELLANEOUS</header>

					<section id="ID9D8D1F991D4C4D22B6F7AE9A38F2AC03"><enum>7801.</enum><header>Miscellaneous</header><text display-inline="no-display-inline">The Act (20 U.S.C. 1001 et seq.) is amended

			 by adding at the end the following:</text>

						<quoted-block id="IDE3D7F3C648C04A44845AFA974B525A66" style="OLC">

							<title id="ID8EB5FB7FBFB0499EB2F1B0753F63C97F"><enum>VIII</enum><header>MISCELLANEOUS</header>

								<part id="ID123B47E418C2465A81080898CDD38071"><enum>A</enum><header>MATHEMATICS AND

				SCIENCE SCHOLARS PROGRAM</header>

									<section id="ID3BED3D0841B345C1AE3887DB9C5254AF"><enum>811.</enum><header>Mathematics

				and science scholars Program</header>

										<subsection id="IDF6DABC71128840FA8E053BFFCD915F83"><enum>(a)</enum><header>Program

				Authorized</header><text>The Secretary is authorized to award grants to States,

				on a competitive basis, to enable the States to award eligible students, who

				complete a rigorous secondary school curriculum in mathematics and science,

				scholarships for undergraduate study.</text>

										</subsection><subsection id="ID4257C84EA1974EC285DFEA71119E6089"><enum>(b)</enum><header>Eligible

				Students</header><text>A student is eligible for a scholarship under this

				section if the student is a full-time undergraduate student in the student’s

				first and second year of study who has completed a rigorous secondary school

				curriculum in mathematics and science.</text>

										</subsection><subsection id="ID0E9EE13F3E2C4C37B9F545FC075B1E52"><enum>(c)</enum><header>Rigorous

				Curriculum</header><text>Each participating State shall determine the

				requirements for a rigorous secondary school curriculum in mathematics and

				science described in subsection (b).</text>

										</subsection><subsection id="IDEF23CB87DBB74F31974B59EEFBDC267E"><enum>(d)</enum><header>Priority for

				Scholarships</header><text>The Governor of a State may set a priority for

				awarding scholarships under this section for particular eligible students, such

				as students attending schools in high-need areas, students who are from groups

				underrepresented in the fields of mathematics, science, and engineering,

				students served by local educational agencies that do not meet or exceed State

				standards in mathematics and science, or students with regional or geographic

				needs as determined appropriate by the Governor.</text>

										</subsection><subsection id="ID1F5DD5C3B5794D2AA4BEA6B8B37A1006"><enum>(e)</enum><header>Amount and

				Duration of Scholarship</header><text>The Secretary shall award a grant under

				this section—</text>

											<paragraph id="IDABD995C8EC924ECE871507C2853CE454"><enum>(1)</enum><text>in an amount that

				does not exceed $1,000; and</text>

											</paragraph><paragraph id="ID62D0EF9D9AC042BDBF7BD034EEDFE66D"><enum>(2)</enum><text>for not more than

				2 years of undergraduate study.</text>

											</paragraph></subsection><subsection id="ID0E2A2DAFEA0945B6B42A182DD1AE7B0B"><enum>(f)</enum><header>Matching

				Requirement</header><text>In order to receive a grant under this section, a

				State shall provide matching funds for the scholarships awarded under this

				section in an amount equal to 50 percent of the Federal funds received.</text>

										</subsection><subsection id="IDBE1737CB3C51493E85F99562C5016DCA"><enum>(g)</enum><header>Authorization</header><text>There

				are authorized to be appropriated to carry out this section such sums as may be

				necessary for fiscal year 2006 and each of the 5 succeeding fiscal

				years.</text>

										</subsection></section></part><part id="IDC1DBDB8DF58A46888A4C92D660B6B9A3"><enum>B</enum><header>POSTSECONDARY

				EDUCATION ASSESSMENT</header>

									<section id="ID33CC7AA0428E476688F14C355BFC2DE9"><enum>821.</enum><header>Postsecondary

				education assessment</header>

										<subsection id="IDAA1946ED922842739945A6ADCDA70444"><enum>(a)</enum><header>Contract for

				Assessment</header><text>The Secretary shall enter into a contract, with an

				independent, bipartisan organization with specific expertise in public

				administration and financial management, to carry out an independent assessment

				of the cost factors associated with the cost of tuition at institutions of

				higher education.</text>

										</subsection><subsection id="ID80B8E4B5A3764FB387D6790427EBDB82"><enum>(b)</enum><header>Timeframe</header><text>The

				Secretary shall enter into the contract described in subsection (a) not later

				than 90 days after the date of enactment of the Higher Education Amendments of

				2005.</text>

										</subsection><subsection id="IDFE1FD28AAE7C4EF8A0AA0DEA338B66F0"><enum>(c)</enum><header>Matters

				Assessed</header><text>The assessment described in subsection (a) shall—</text>

											<paragraph id="ID8A11B250A8C74C9BB785C0AA916F35A6"><enum>(1)</enum><text>examine the key

				elements driving the cost factors associated with the cost of tuition at

				institutions of higher education during academic year 2000 and succeeding

				academic years;</text>

											</paragraph><paragraph id="ID90D728028BA341C0B208BF6D00662A63"><enum>(2)</enum><text>identify and

				evaluate measures being used to control postsecondary education costs;</text>

											</paragraph><paragraph id="ID8C3BE5DEEBF44C1BA0779ABD97507AF8"><enum>(3)</enum><text>identify and

				evaluate effective measures that may be utilized to control postsecondary

				education costs in the future; and</text>

											</paragraph><paragraph id="IDF1F2AF11A8CB4345A5ECE308849C938F"><enum>(4)</enum><text>identify systemic

				approaches to monitor future postsecondary education cost trends and

				postsecondary education cost control mechanisms.</text>

											</paragraph></subsection></section></part><part id="ID39AC0813B90442D8BBE7546536EE7D64"><enum>C</enum><header>JOB

				SKILL TRAINING IN HIGH-GROWTH OCCUPATIONS OR INDUSTRIES</header>

									<section id="ID5A1FD294AC33447C9B28D32BEA1F562D"><enum>831.</enum><header>Job skill

				training in high-growth occupations or industries</header>

										<subsection id="ID779A0E743BA84CD69F08AB36BEE3C9A7"><enum>(a)</enum><header>Grants

				Authorized</header><text>The Secretary is authorized to award grants, on a

				competitive basis, to eligible partnerships to enable the eligible partnerships

				to provide relevant job skill training in high-growth industries or

				occupations.</text>

										</subsection><subsection id="IDC079A172398E45108BBD524F910C90E6"><enum>(b)</enum><header>Definitions</header><text>In

				this section:</text>

											<paragraph id="ID27EE7EB6C0004B50A649FE692D38B037"><enum>(1)</enum><header>Eligible

				partnership</header><text>The term <term>eligible partnership</term> means a

				partnership—</text>

												<subparagraph id="ID04B6E1A922414245BD5030C96E907ED3"><enum>(A)</enum><text>between an

				institution of higher education and a local board (as such term is defined in

				section 101 of the Workforce Investment Act of 1998); or</text>

												</subparagraph><subparagraph id="IDEBCDFDB906F64A7793372919AB7F8616"><enum>(B)</enum><text>if an institution

				of higher education is located within a State that does not operate local

				boards, between the institution of higher education and a State board (as such

				term is defined in section 101 of the Workforce Investment Act of 1998).</text>

												</subparagraph></paragraph><paragraph id="ID7BE5CA4048804D04B102D124779FC220"><enum>(2)</enum><header>Nontraditional

				student</header><text>The term <term>nontraditional student</term> means a

				student who—</text>

												<subparagraph id="IDFF471DB8E1A043DE8E37970C0B768ED1"><enum>(A)</enum><text>is independent,

				as defined in section 480(d);</text>

												</subparagraph><subparagraph id="ID824B5467ED0D4B518794025ED7E1770D"><enum>(B)</enum><text>attends an

				institution of higher education—</text>

													<clause id="IDB5382B73C9B04345B435FCD7E6648CEC"><enum>(i)</enum><text>on less than a

				full-time basis;</text>

													</clause><clause id="ID5B87D55C86544ABC93BBFB60215EC1D8"><enum>(ii)</enum><text>via evening,

				weekend, modular, or compressed courses; or</text>

													</clause><clause id="IDAC97524A68D2471E9C8CA7F568F30BB0"><enum>(iii)</enum><text>via distance

				learning methods; or</text>

													</clause></subparagraph><subparagraph id="ID7AADD81254914D828498F472BE1838B0"><enum>(C)</enum><text>has delayed

				enrollment at an institution of higher education.</text>

												</subparagraph></paragraph><paragraph id="ID61EB38F0A08E4E05AD4E93C83B6C04A8"><enum>(3)</enum><header>Institution of

				higher education</header><text>The term <term>institution of higher

				education</term> means an institution of higher education, as defined in

				section 101(b), that offers a 1- or 2-year program of study leading to a degree

				or certificate.</text>

											</paragraph></subsection><subsection id="ID4EA50F9DF5F9496984DED74D9EB307FD"><enum>(c)</enum><header>Application</header>

											<paragraph id="IDFB09615C893E410B804F57326929956C"><enum>(1)</enum><header>In

				general</header><text>Each eligible partnership that desires a grant under this

				section shall submit an application to the Secretary at such time, in such

				manner, and accompanied by such additional information as the Secretary may

				require.</text>

											</paragraph><paragraph id="IDD2CE7C84FD6F4E99B6E2A74A9C40835D"><enum>(2)</enum><header>Contents</header><text>Each

				application submitted under paragraph (1) shall include a description

				of—</text>

												<subparagraph id="ID560C35AA03F24295823A4B9EAD61B310"><enum>(A)</enum><text>how the eligible

				partnership, through the institution of higher education, will provide relevant

				job skill training for students to enter high-growth occupations or

				industries;</text>

												</subparagraph><subparagraph id="ID0DD1D3FAD3EC4EB0BE34A4FF4280E0B1"><enum>(B)</enum><text>local high-growth

				occupations or industries; and</text>

												</subparagraph><subparagraph id="ID0C1AFE067B1E4AB9A37653999D553F08"><enum>(C)</enum><text>the need for

				qualified workers to meet the local demand of high-growth occupations or

				industries.</text>

												</subparagraph></paragraph></subsection><subsection id="ID6122C3E4DCD641AD80F7706C374DBBB1"><enum>(d)</enum><header>Award

				Basis</header><text>In awarding grants under this section, the Secretary

				shall—</text>

											<paragraph id="ID1748404E15C644268209C59B0A61232E"><enum>(1)</enum><text>ensure an

				equitable distribution of grant funds under this section among urban and rural

				areas of the United States; and</text>

											</paragraph><paragraph id="IDB833F4C1743746D499B2FB56E281EE8F"><enum>(2)</enum><text>take into

				consideration the capability of the institution of higher education—</text>

												<subparagraph id="ID945D0CA1FA594EF8AD622251D8CC13C8"><enum>(A)</enum><text>to offer

				relevant, high quality instruction and job skill training for students entering

				a high-growth occupation or industry;</text>

												</subparagraph><subparagraph id="ID336BFBB1D410486AB2A461160D4EFA1C"><enum>(B)</enum><text>to involve the

				local business community and to place graduates in the community in employment

				in high-growth occupations or industries;</text>

												</subparagraph><subparagraph id="IDF5A65E1E6FFA4755824BC592B35B4126"><enum>(C)</enum><text>to provide

				secondary students with dual-enrollment or concurrent enrollment

				options;</text>

												</subparagraph><subparagraph id="ID17EE57667BE34815B9658BBB460E26B5"><enum>(D)</enum><text>to serve

				nontraditional or low-income students, or adult or displaced workers;

				and</text>

												</subparagraph><subparagraph id="IDB1E73A516BE742DA8889CCD1006F9D8E"><enum>(E)</enum><text>to serve students

				from rural or remote communities.</text>

												</subparagraph></paragraph></subsection><subsection id="ID0032672E81AC448F86E23984BEA1853E"><enum>(e)</enum><header>Use of

				Funds</header><text>Grant funds provided under this section may be used—</text>

											<paragraph id="ID4634911C9D61441FA61206B7AF626E5B"><enum>(1)</enum><text>to expand or

				create academic programs or programs of training that provide relevant job

				skill training for high-growth occupations or industries;</text>

											</paragraph><paragraph id="IDB0A0DF10A6194673A8E7A327CC0255E9"><enum>(2)</enum><text>to purchase

				equipment which will facilitate the development of academic programs or

				programs of training that provide training for high-growth occupations or

				industries;</text>

											</paragraph><paragraph id="ID439DE7DD7BF74117996D5885C5D5C2F7"><enum>(3)</enum><text>to support

				outreach efforts that enable students to attend institutions of higher

				education with academic programs or programs of training focused on high-growth

				occupations or industries;</text>

											</paragraph><paragraph id="ID75649FB0DF774525862127CFBFFD5659"><enum>(4)</enum><text>to expand or

				create programs for distance, evening, weekend, modular, or compressed learning

				opportunities that provide relevant job skill training in high-growth

				occupations or industries;</text>

											</paragraph><paragraph id="ID0485BFDB0207494298DE0AE9B287BB81"><enum>(5)</enum><text>to build

				partnerships with local businesses in high-growth occupations or

				industries;</text>

											</paragraph><paragraph id="ID5588A96CD5044AAE94DBBF38CF4F8A12"><enum>(6)</enum><text>to support

				curriculum development related to entrepreneurial training; and</text>

											</paragraph><paragraph id="IDE7E0895D7B5C4CE297B26E32608C1A73"><enum>(7)</enum><text>for other uses

				that the Secretary determines to be consistent with the intent of this

				section.</text>

											</paragraph></subsection><subsection id="IDC33AD20042874543A8D724D6EC9FAC43"><enum>(f)</enum><header>Requirements</header>

											<paragraph id="ID31D0B2D32C414154AAA7B8501B4CDC84"><enum>(1)</enum><header>Fiscal

				agent</header><text>For the purpose of this section, the institution of higher

				education in an eligible partnership shall serve as the fiscal agent and grant

				recipient for the eligible partnership.</text>

											</paragraph><paragraph id="ID7FED967DB8F24443BF424C80CAC84A26"><enum>(2)</enum><header>Duration</header><text>The

				Secretary shall award grants under this section for periods that may not exceed

				5 years.</text>

											</paragraph><paragraph id="ID7498451BE98C494FBF666DBEA83B0AFE"><enum>(3)</enum><header>Supplement, not

				supplant</header><text>Funds made available under this section shall be used to

				supplement and not supplant other Federal, State, and local funds available to

				the eligible partnership for carrying out the activities described in

				subsection (e).</text>

											</paragraph></subsection><subsection id="ID6B4BD2D5176B41B09E98B5A656F39019"><enum>(g)</enum><header>Authorization

				of Appropriations</header><text>There are authorized to be appropriated to

				carry out this part such sums as may be necessary for fiscal year 2006 and each

				of the 5 succeeding fiscal years.</text>

										</subsection></section></part><part id="ID9484C5971A7D453D85B72AFBB4C6A0AC"><enum>D</enum><header>GRANT PROGRAM TO

				INCREASE STUDENT RETENTION AND PROMOTE ARTICULATION AGREEMENTS</header>

									<section id="IDC920198448DC4013BAE59FD17526BDB2"><enum>841.</enum><header>Grant Program

				to increase student retention and promote articulation agreements</header>

										<subsection id="IDA6F9E6180CF94EC3AE96860440FFDE60"><enum>(a)</enum><header>Authorization

				of Program</header><text>The Secretary shall award grants, on a competitive

				basis, to eligible institutions to enable the institutions to—</text>

											<paragraph id="ID18662A5E8DBE4A748F8E5E954F178863"><enum>(1)</enum><text>focus on

				increasing traditional and nontraditional student retention at such

				institutions; and</text>

											</paragraph><paragraph id="ID19271D7B387449CAB678633250A3185E"><enum>(2)</enum><text>promote

				articulation agreements among different institutions that will increase the

				likelihood of progression of students at such institutions to baccalaureate

				degrees.</text>

											</paragraph></subsection><subsection id="ID036E63035D554776A915831526AD2DFA"><enum>(b)</enum><header>Definition of

				Eligible Institution</header><text>In this section, the term <term>eligible

				institution</term> means an institution of higher education (as defined in

				section 101(a)) where not less than 40 percent of such institution’s student

				body receives financial aid under subpart 1 of part A of title IV.</text>

										</subsection><subsection id="IDA94CFCCFF79D4A2F881B1F434F4E784B"><enum>(c)</enum><header>Application</header><text>An

				eligible institution that desires a grant under this section shall submit an

				application to the Secretary at such time, in such manner, and containing such

				information as the Secretary may require, including the number of students

				proposed to be served and a description of the services that will be

				provided.</text>

										</subsection><subsection id="IDDC4D65C1B116464AB6BFA08EAD7FAB79"><enum>(d)</enum><header>Mandatory

				Activities</header><text>An eligible institution that receives a grant under

				this section shall use the grant funds to carry out each of the

				following:</text>

											<paragraph id="IDD5F4EAF095D74D86BBACC4E319289FF3"><enum>(1)</enum><text>Offering

				counseling and advisement services to help students adapt to postsecondary

				education and select appropriate coursework.</text>

											</paragraph><paragraph id="IDFF121B6FD8304D3F85261D1A9A797017"><enum>(2)</enum><text>Making mentors

				available to students who are at risk for not completing a degree.</text>

											</paragraph><paragraph id="ID2F34E6D122CE46299F53FC6DCDE2DFF7"><enum>(3)</enum><text>Providing

				detailed assistance to students who request help in understanding—</text>

												<subparagraph id="IDF40FBE1FB9CE43A4BA9944563B7F3E60"><enum>(A)</enum><text>the options for

				financing their education, including information on grants, loans, and loan

				repayment programs;</text>

												</subparagraph><subparagraph id="ID2D73E87E2E7546CDACEF85BE3F3F80CC"><enum>(B)</enum><text>the process of

				applying for financial assistance;</text>

												</subparagraph><subparagraph id="IDBEDBA8CF99934CB8B55B23AB690063B4"><enum>(C)</enum><text>the outcome of

				their financial assistance application; and</text>

												</subparagraph><subparagraph id="ID4C071EE023CF4FA4A0C04D7CCD66D896"><enum>(D)</enum><text>any unanticipated

				problems related to financing their education that arise.</text>

												</subparagraph></paragraph><paragraph id="IDB98B7805C3AB4B74975F3340E65C98AA"><enum>(4)</enum><text>Offering tutoring

				to students at risk of dropping out of school with any course or

				subject.</text>

											</paragraph><paragraph id="ID05FE3A5E8ED148F2ACC1A068DE42D21B"><enum>(5)</enum><text>Designing and

				implementing innovative ways to improve retention in and completion of courses,

				such as enrolling students in cohorts, providing counseling, or creating bridge

				programs that customize courses to the needs of special population

				students.</text>

											</paragraph><paragraph id="ID5BF4921BC21747C484533D27C3BC631F"><enum>(6)</enum><text>Conducting

				outreach activities so that all students know that these services are available

				and are aware of how to access the services.</text>

											</paragraph><paragraph id="IDB5AE55C7EBBE47D187B16A5D6572CDE9"><enum>(7)</enum><text>Creating

				articulation agreements to promote smooth transition from two year to four year

				programs.</text>

											</paragraph><paragraph id="IDBAD5861BEC174AFAB4FF90753DF89AD4"><enum>(8)</enum><text>Making services

				listed in paragraphs (1) through (5) available in students’ native languages,

				if it is not English, if the percentage of students needing translation

				services in a specific language exceeds 5 percent.</text>

											</paragraph></subsection><subsection id="ID2007601FD07948DCAD81B3A7C12FA7F6"><enum>(e)</enum><header>Permissible

				Activities</header><text>An eligible institution that receives a grant under

				this section may use grant funds to carry out any of the following

				activities:</text>

											<paragraph id="ID187FFB52404247E8A03E61678CE56072"><enum>(1)</enum><text>Designing

				innovative course schedules to meet the needs of working adults, such as

				online, modular, compressed, or other alternative methods.</text>

											</paragraph><paragraph id="IDF9323188D04A4C68B040A7629B0D7CA2"><enum>(2)</enum><text>Offering

				childcare during the hours when students have class or are studying.</text>

											</paragraph><paragraph id="IDB308EFF5A85E456EAB551812874D9B77"><enum>(3)</enum><text>Providing

				transportation assistance to students that helps such students manage their

				schedules.</text>

											</paragraph><paragraph id="ID4984A05E54334B5EAFB7F8F40A92197F"><enum>(4)</enum><text>Partnering with

				local businesses to create flexible work-hour programs so that students can

				balance work and school.</text>

											</paragraph><paragraph id="IDD7D084502D754C808186029CE964D245"><enum>(5)</enum><text>Offering time

				management or financial literacy seminars to help students improve their

				management skills.</text>

											</paragraph><paragraph id="IDA341A60A725C4ABEACAA6DDE9587E46D"><enum>(6)</enum><text>Improving

				professional development to align instruction with innovative program

				designs.</text>

											</paragraph><paragraph id="ID6909A4276C7D470DBA1A30B3F55A74CE"><enum>(7)</enum><text>Any other

				activities the Secretary believes will promote retention of students attending

				eligible institutions.</text>

											</paragraph></subsection><subsection id="IDA110AE42B5274CBA95F091FE1FA2A002"><enum>(f)</enum><header>Technical

				Assistance</header><text>The Secretary may enter into a contract with a private

				entity to provide such technical assistance to grantees under this section as

				the Secretary determines appropriate.</text>

										</subsection><subsection id="IDDA0A9849C3464A9D822800159056BFBE"><enum>(g)</enum><header>Evaluation</header><text>The

				Secretary shall conduct an evaluation of program impacts under the

				demonstration program, and shall disseminate to the public the findings from

				the evaluation and information on best practices.</text>

										</subsection><subsection id="ID66343122069A4F3FB012B69FE00849F6"><enum>(h)</enum><header>Authorization

				of Appropriations</header><text>There is authorized to be appropriated to carry

				out this and such sums as may be necessary for fiscal year 2006 and each of the

				5 succeeding fiscal years.</text>

										</subsection></section></part><part id="ID092AA04ADE704A94A7FA1D96E4ABF4F9"><enum>E</enum><header>AMERICAN HISTORY

				FOR FREEDOM</header>

									<section id="ID5C7D033FAA754F6CBC8A8AC2ADC1D4BC"><enum>851.</enum><header>American

				history for freedom</header>

										<subsection id="ID14DFB09CA7D742639B0D2C4047441668"><enum>(a)</enum><header>Grants

				Authorized</header><text>The Secretary is authorized to award 3-year grants, on

				a competitive basis, to eligible institutions to establish or strengthen

				postsecondary academic programs or centers that promote and impart knowledge

				of—</text>

											<paragraph id="ID451CC8C00D404DF6B906A0887A414370"><enum>(1)</enum><text>traditional

				American history;</text>

											</paragraph><paragraph id="ID1BA5E02F50DD48E8A5E503D22BCF07E8"><enum>(2)</enum><text>the history and

				nature of, and threats to, free institutions; or</text>

											</paragraph><paragraph id="IDB6A6689DB3C840E39636F19FF743196A"><enum>(3)</enum><text>the history and

				achievements of Western civilization.</text>

											</paragraph></subsection><subsection id="ID1207AA6814F84D92A9ED917E6FC8BF18"><enum>(b)</enum><header>Definitions</header><text>In

				this section:</text>

											<paragraph id="IDDC10D503A26E46DD953A24BBAC09AF50"><enum>(1)</enum><header>Eligible

				institution</header><text>The term <term>eligible institution</term> means an

				institution of higher education as defined in section 101.</text>

											</paragraph><paragraph id="ID6EEA74D6BC824965A054325EBF6BC030"><enum>(2)</enum><header>Free

				institution</header><text>The term <term>free institution</term> means an

				institution that emerged out of Western civilization, such as democracy,

				constitutional government, individual rights, market economics, religious

				freedom and religious tolerance, and freedom of thought and inquiry.</text>

											</paragraph><paragraph id="IDB8E3452D4FD1441D9A369E81A388509C"><enum>(3)</enum><header>Traditional

				american history</header><text>The term <term>traditional American

				history</term> means—</text>

												<subparagraph id="ID580BC3321D894A6E9903B8624C4C8219"><enum>(A)</enum><text>the significant

				constitutional, political, intellectual, economic, and foreign policy trends

				and issues that have shaped the course of American history; and</text>

												</subparagraph><subparagraph id="IDD7604FC66213470AA22F1C8D748C0087"><enum>(B)</enum><text>the key episodes,

				turning points, and leading figures involved in the constitutional, political,

				intellectual, diplomatic, and economic history of the United States.</text>

												</subparagraph></paragraph></subsection><subsection id="ID1133800EA31F46D7A70B3B540C41C86A"><enum>(c)</enum><header>Application</header>

											<paragraph id="ID666457C669714761957E6E9F54391DFC"><enum>(1)</enum><header>In

				general</header><text>Each eligible institution that desires a grant under this

				part shall submit an application to the Secretary at such time, in such manner,

				and accompanied by such additional information as the Secretary may

				require.</text>

											</paragraph><paragraph id="ID1DA424759B464FFCB2C2D44DB22F9E88"><enum>(2)</enum><header>Contents</header><text>Each

				application submitted under subsection (a) shall include a description of

				—</text>

												<subparagraph id="IDE590DAFA01D44DA2AAD7B452D4124DE7"><enum>(A)</enum><text>how funds made

				available under this part will be used for the activities set forth under

				subsection (e), including how such activities will increase knowledge with

				respect to traditional American history, free institutions, or Western

				civilization;</text>

												</subparagraph><subparagraph id="ID398D50E1571643A39F09A53A39CD24B0"><enum>(B)</enum><text>how the eligible

				institution will ensure that information about the activities funded under this

				part is widely disseminated pursuant to subsection (e)(1)(B);</text>

												</subparagraph><subparagraph id="IDD7925474877549F2A919C72D228C598D"><enum>(C)</enum><text>any activities to

				be undertaken pursuant to subsection (e)(2)(A), including identification of

				entities intended to participate;</text>

												</subparagraph><subparagraph id="ID79C7528BFE5E44BAA343F900CB2AA7A6"><enum>(D)</enum><text>how funds made

				available under this part shall be used to supplement and not supplant

				non-Federal funds available for the activities described in subsection (e);

				and</text>

												</subparagraph><subparagraph id="IDA28C27E95341485B8A2FA8FC08F72450"><enum>(E)</enum><text>such fiscal

				controls and accounting procedures as may be necessary to ensure proper

				disbursement of and accounting for funding made available to the eligible

				institution under this part.</text>

												</subparagraph></paragraph></subsection><subsection id="ID36DB2C21F1884F0E9882B45ECA34394C"><enum>(d)</enum><header>Award

				Basis</header><text>In awarding grants under this part, the Secretary shall

				take into consideration the capability of the eligible institution to—</text>

											<paragraph id="ID1AF4B14D448F484288B319E3F7D3CF30"><enum>(1)</enum><text>increase access

				to quality programming that expands knowledge of traditional American history,

				free institutions, or Western civilization;</text>

											</paragraph><paragraph id="ID83133ABBBBEC4BA1B06316B16A6D0E7E"><enum>(2)</enum><text>involve personnel

				with strong expertise in traditional American history, free institutions, or

				Western civilization; and</text>

											</paragraph><paragraph id="ID2E4187A35F29479D8015B813BE719114"><enum>(3)</enum><text>sustain the

				activities funded under this part after the grant has expired.</text>

											</paragraph></subsection><subsection id="ID33CBC0AACC464218B15CBC496D7C7AC3"><enum>(e)</enum><header>Use of

				Funds</header>

											<paragraph id="IDBED74B02240F4D6297A3EBAB14AD894F"><enum>(1)</enum><header>Required use of

				funds</header><text>Funds provided under this part shall be used to—</text>

												<subparagraph id="IDCD1B000B20654F8D9CDC81A752A1ED7B"><enum>(A)</enum><text>establish or

				strengthen academic programs or centers focused on traditional American

				history, free institutions, or Western civilization, which may include—</text>

													<clause id="ID9CD04EED05BE453F856798F3137D91DF"><enum>(i)</enum><text>design and

				implementation of programs of study, courses, lecture series, seminars, and

				symposia;</text>

													</clause><clause id="ID61A7D48F132649D8924D96CDB62961A1"><enum>(ii)</enum><text>development,

				publication, and dissemination of instructional materials;</text>

													</clause><clause id="ID0CBFC2A8A9E34D888567AFA38F0815F1"><enum>(iii)</enum><text>research;</text>

													</clause><clause id="ID120A21DE673C4FB4B5BD3EF88E4BB34A"><enum>(iv)</enum><text>support for

				faculty teaching in undergraduate and, if applicable, graduate programs;</text>

													</clause><clause id="ID21944665E3BA417D99F9091E864E2709"><enum>(v)</enum><text>support for

				graduate and postgraduate fellowships, if applicable; or</text>

													</clause><clause id="IDE056DADB572E43E09F7285EEDFDDE4CB"><enum>(vi)</enum><text>teacher

				preparation initiatives that stress content mastery regarding traditional

				American history, free institutions, or Western civilization; and</text>

													</clause></subparagraph><subparagraph id="IDBF725D0410E7478BB9FE11A26A6A2B9B"><enum>(B)</enum><text>conduct outreach

				activities to ensure that information about the activities funded under this

				part is widely disseminated—</text>

													<clause id="IDDE89090466B9484B9A41140878E5D6ED"><enum>(i)</enum><text>to undergraduate

				students (including students enrolled in teacher education programs, if

				applicable);</text>

													</clause><clause id="ID735B928A5C564B8B842DC57446592479"><enum>(ii)</enum><text>to graduate

				students (including students enrolled in teacher education programs), if

				applicable;</text>

													</clause><clause id="IDEED9FD2BB525448B8D85C17372A3571A"><enum>(iii)</enum><text>to

				faculty;</text>

													</clause><clause id="ID69E6E7839150449889F77A122843802B"><enum>(iv)</enum><text>to local

				educational agencies; and</text>

													</clause><clause id="ID702AEF07FD9E478FAB216CC81B688488"><enum>(v)</enum><text>within the local

				community.</text>

													</clause></subparagraph></paragraph><paragraph id="ID312F604359964011BF270DD683C6046D"><enum>(2)</enum><header>Allowable uses

				of funds</header><text>Funds provided under this part may be used to

				support—</text>

												<subparagraph id="ID689A208BDB104F6FA8858EFDE180165A"><enum>(A)</enum><text>collaboration

				with entities such as—</text>

													<clause id="IDA6EE1ABEAE5344F7AFEFCEE532C25BC4"><enum>(i)</enum><text>local educational

				agencies, for the purpose of providing elementary, middle and secondary school

				teachers an opportunity to enhance their knowledge of traditional American

				history, free institutions, or Western civilization; and</text>

													</clause><clause id="ID066780A2187B46F7980557A3C9824202"><enum>(ii)</enum><text>nonprofit

				organizations whose mission is consistent with the purpose of this part, such

				as academic organizations, museums, and libraries, for assistance in carrying

				out activities described under subsection (a); and</text>

													</clause></subparagraph><subparagraph id="IDAC6C67D6874845AFAB2D5418AE7AA020"><enum>(B)</enum><text>other activities

				that meet the purposes of this part.</text>

												</subparagraph></paragraph></subsection><subsection id="ID81B310CA86BF417B94F6EC42EB14286E"><enum>(f)</enum><header>Authorization

				of Appropriations</header><text>For the purpose of carrying out this part,

				there are authorized to be appropriated such sums as may be necessary for

				fiscal year 2006 and each of the 5 succeeding fiscal years.</text>

										</subsection></section></part><part id="ID2A779F6A19834E39B6B8656C85B516CE"><enum>F</enum><header>TEACH FOR

				AMERICA</header>

									<section id="ID6784E0600CC94B06ACBB51BEA40CA2D8"><enum>861.</enum><header>Teach for

				america</header>

										<subsection id="ID19980B2B47464B5A94A097786F0600EA"><enum>(a)</enum><header>Definitions</header>

											<paragraph id="IDE62E76B11179487DA604627764FCE67B"><enum>(1)</enum><header>In

				general</header><text>The terms <term>highly qualified</term>, <term>local

				educational agency</term>, and <term>Secretary</term> have the meanings given

				the terms in section 9101 of the <act-name parsable-cite="ESEA">Elementary and

				Secondary Education Act of 1965</act-name> (20 U.S.C. 7801).</text>

											</paragraph><paragraph id="ID89EAD4D8FB5E4A2E98BD7BFEBD74744D"><enum>(2)</enum><header>Grantee</header><text>The

				term <term>grantee</term> means Teach For America, Inc.</text>

											</paragraph><paragraph id="IDDA45C4AA91404EDBA4C740B22C4DF1E0"><enum>(3)</enum><header>High

				need</header><text>The term <term>high need</term>, when used with respect to a

				local educational agency, means a local educational agency experiencing a

				shortage of highly qualified teachers.</text>

											</paragraph></subsection><subsection id="ID38BB0BA5C7BB44B8A05DF5B5F319DFEB"><enum>(b)</enum><header>Grants

				Authorized</header><text>The Secretary is authorized to award a grant to Teach

				For America, Inc., the national teacher corps of outstanding recent college

				graduates who commit to teach for 2 years in underserved communities in the

				United States, to implement and expand its program of recruiting, selecting,

				training, and supporting new teachers.</text>

										</subsection><subsection id="ID2C071B584205414FAD3F6E6FABF6B710"><enum>(c)</enum><header>Requirements</header><text>In

				carrying out the grant program under subsection (b), the Secretary shall enter

				into an agreement with the grantee under which the grantee agrees to use the

				grant funds provided under this section—</text>

											<paragraph id="ID4E2176DDF8B242A8999684BCDF2DF3BC"><enum>(1)</enum><text>to provide highly

				qualified teachers to high need local educational agencies in urban and rural

				communities;</text>

											</paragraph><paragraph id="ID11C828BD2AFD483AA5104CAF1264B73E"><enum>(2)</enum><text>to pay the cost

				of recruiting, selecting, training, and supporting new teachers; and</text>

											</paragraph><paragraph id="ID398653BB7E154F228FDE02B35493AE61"><enum>(3)</enum><text>to serve a

				substantial number and percentage of underserved students.</text>

											</paragraph></subsection><subsection id="IDE870E9FFBD9046E4882963509C6D258F"><enum>(d)</enum><header>Authorized

				Activities</header>

											<paragraph id="ID612F8E21A02C4CEA843E6A8F597A5DEA"><enum>(1)</enum><header>In

				general</header><text>Grant funds provided under this section shall be used by

				the grantee to carry out each of the following activities:</text>

												<subparagraph id="IDE765BE67982D4269B10F4EDB73DDA50A"><enum>(A)</enum><text>Recruiting and

				selecting teachers through a highly selective national process.</text>

												</subparagraph><subparagraph id="ID8662425175254F75B17E2B4D9C7863B1"><enum>(B)</enum><text>Providing

				preservice training to the teachers through a rigorous summer institute that

				includes hands-on teaching experience and significant exposure to education

				coursework and theory.</text>

												</subparagraph><subparagraph id="IDE68E12207DE041AAA9B8E2FBF6EBC97A"><enum>(C)</enum><text>Placing the

				teachers in schools and positions designated by partner local educational

				agencies as high need placements serving underserved students.</text>

												</subparagraph><subparagraph id="ID2F0737A35299469F829FCB007BE8E685"><enum>(D)</enum><text>Providing ongoing

				professional development activities for the teachers’ first 2 years in the

				classroom, including regular classroom observations and feedback, and ongoing

				training and support.</text>

												</subparagraph></paragraph><paragraph id="IDD292DC63CED54CFDB5C8690EBFF2D43A"><enum>(2)</enum><header>Limitation</header><text>The

				grantee shall use all grant funds received under this section to support

				activities related directly to the recruitment, selection, training, and

				support of teachers as described in subsection (a).</text>

											</paragraph></subsection><subsection id="ID4A249EAB7B0E4631A5857C864B07E86C"><enum>(e)</enum><header>Reports and

				Evaluations</header>

											<paragraph id="ID35EB0108062E4E0DBA7FFCA29A5E5D24"><enum>(1)</enum><header>Annual

				report</header><text>The grantee shall provide to the Secretary an annual

				report that includes—</text>

												<subparagraph id="ID9CC31F631A834A0A88250D557F7AC22B"><enum>(A)</enum><text>data on the

				number and quality of the teachers provided to local educational agencies

				through a grant under this section;</text>

												</subparagraph><subparagraph id="IDCA5E85D07FC5493E83CFAC50C349FE67"><enum>(B)</enum><text>an externally

				conducted analysis of the satisfaction of local educational agencies and

				principals with the teachers so provided; and</text>

												</subparagraph><subparagraph id="IDC920BDDF572146BFA92AF9A46F8EABD2"><enum>(C)</enum><text>comprehensive

				data on the background of the teachers chosen, the training the teachers

				received, the placement sites of the teachers, the professional development of

				the teachers, and the retention of the teachers.</text>

												</subparagraph></paragraph><paragraph id="ID74CECD3B04E542FF93AE8B21B98F8FD1"><enum>(2)</enum><header>Study</header>

												<subparagraph id="IDB94C959324B346109BB215BCD147F2C4"><enum>(A)</enum><header>In

				general</header><text>From funds appropriated under subsection (f), the

				Secretary shall provide for a study that examines the achievement levels of the

				students taught by the teachers assisted under this section.</text>

												</subparagraph><subparagraph id="ID0F34869A24F94A708CBF883C0EF836C1"><enum>(B)</enum><header>Achievement

				gains compared</header><text>The study shall compare, within the same schools,

				the achievement gains made by students taught by teachers who are assisted

				under this section with the achievement gains made by students taught by

				teachers who are not assisted under this section.</text>

												</subparagraph></paragraph><paragraph id="ID2A72C23D7CF14B41BED5F216620E27E8"><enum>(3)</enum><header>Requirements</header><text>The

				Secretary shall provide for such a study not less than once every 3 years, and

				each such study shall include multiple placement sites and multiple schools

				within placement sites.</text>

											</paragraph><paragraph id="ID53ED0AEA73E148FC9C290248ABFE6A50"><enum>(4)</enum><header>Peer review

				standards</header><text>Each such study shall meet the peer review standards of

				the education research community.</text>

											</paragraph></subsection><subsection id="IDAC93F07A685B4910B236CB30E01D35C4"><enum>(f)</enum><header>Authorization

				of Appropriations</header>

											<paragraph id="ID48130B9003884E46872695EA9B2D3E60"><enum>(1)</enum><header>In

				general</header><text>There are authorized to be appropriated to carry out this

				section such sums as may be necessary for fiscal year 2006 and each of the 5

				succeeding fiscal years.</text>

											</paragraph><paragraph id="ID48CD3F7162DE4C10847A8C0BF7943B31"><enum>(2)</enum><header>Limitation</header><text>The

				grantee shall not use more than 25 percent of Federal funds from any source for

				administrative costs.</text>

											</paragraph></subsection></section></part><part id="ID0B39A0F3290944A6B5540C1A6636DDA9"><enum>G</enum><header>PATSY T. MINK

				FELLOWSHIP PROGRAM</header>

									<section id="ID9B069B2C4E7E4A339B908AAF050C202C"><enum>871.</enum><header>Patsy T. Mink

				Fellowship Program</header>

										<subsection id="ID69554374597549F68F30B70FDA27DA39"><enum>(a)</enum><header>Purpose</header>

											<paragraph id="ID3C9706B8B3E84D8F87C8E598C5EA276A"><enum>(1)</enum><header>In

				general</header><text>It is the purpose of this section to provide, through

				eligible institutions, a program of fellowship awards to assist highly

				qualified minorities and women to acquire the doctoral degree, or highest

				possible degree available, in academic areas in which such individuals are

				underrepresented for the purpose of enabling such individuals to enter the

				higher education professoriate.</text>

											</paragraph><paragraph id="ID76787D2A2CEC454AAA04DB41BFD27270"><enum>(2)</enum><header>Designation</header><text>Each

				recipient of a fellowship award from an eligible institution receiving a grant

				under this section shall be known as a <quote>Patsy T. Mink Graduate

				Fellow</quote>.</text>

											</paragraph></subsection><subsection id="ID283338E50D6540A399B1D0F1C1F7C7B4"><enum>(b)</enum><header>Definitions</header><text>In

				this section, the term <term>eligible institution</term> means an institution

				of higher education, or a consortium of such institutions, that offers a

				program of postbaccalaureate study leading to a graduate degree.</text>

										</subsection><subsection id="IDAFCDA8E41DDC4D639657115CEFA7D8C2"><enum>(c)</enum><header>Program

				Authorized</header>

											<paragraph id="IDDF8877D7046F406D8F2678484B4DF644"><enum>(1)</enum><header>Grants by

				secretary</header>

												<subparagraph id="IDB5CA6371AFA94330A17FB10E459E1259"><enum>(A)</enum><header>In

				general</header><text>The Secretary shall award grants to eligible institutions

				to enable such institutions to make fellowship awards to individuals in

				accordance with the provisions of this section.</text>

												</subparagraph><subparagraph id="IDD3E55A96C9784426817062A23E1F42CC"><enum>(B)</enum><header>Priority

				consideration</header><text>In awarding grants under this section, the

				Secretary shall consider the eligible institution’s prior experience in

				producing doctoral degree, or highest possible degree available, holders who

				are minorities and women, and shall give priority consideration in making

				grants under this section to those eligible institutions with a demonstrated

				record of producing minorities and women who have earned such degrees.</text>

												</subparagraph></paragraph><paragraph id="ID1778646B17AD4D359BA444267CEC69DB"><enum>(2)</enum><header>Applications</header>

												<subparagraph id="ID25C57420BFDC40EC9A0FDB061F0C189C"><enum>(A)</enum><header>In

				general</header><text>An eligible institution that desires a grant under this

				section shall submit an application to the Secretary at such time, in such

				manner, and containing such information as the Secretary may require.</text>

												</subparagraph><subparagraph id="ID79DB6C123B8D4B3F9188C75193CDB080"><enum>(B)</enum><header>Applications

				made on behalf</header>

													<clause id="ID5E814D86CFE34D0BA06CFFEC98563FCB"><enum>(i)</enum><header>In

				general</header><text>The following entities may submit an application on

				behalf of an eligible institution:</text>

														<subclause id="IDC455AA3D6F27414BA1D5E6F52042657B"><enum>(I)</enum><text>A graduate school

				or department of such institution.</text>

														</subclause><subclause id="ID555FB3BF08FF485EB7432705205A6832"><enum>(II)</enum><text>A graduate

				school or department of such institution in collaboration with an undergraduate

				college or university of such institution.</text>

														</subclause><subclause id="ID81C9C5D16BFB42E291169A4F3526B5F5"><enum>(III)</enum><text>An

				organizational unit within such institution that offers a program of

				postbaccalaureate study leading to a graduate degree, including an

				interdisciplinary or an interdepartmental program.</text>

														</subclause><subclause id="ID0FCFB5DEE90D4A8DBC3563030BABC8F7"><enum>(IV)</enum><text>A nonprofit

				organization with a demonstrated record of helping minorities and women earn

				postbaccalaureate degrees.</text>

														</subclause></clause><clause id="ID8533725B3BE8463BB3B2658A170B138C"><enum>(ii)</enum><header>Nonprofit

				organizations</header><text>Nothing in this paragraph shall be construed to

				permit the Secretary to award a grant under this section to an entity other

				than an eligible institution.</text>

													</clause></subparagraph></paragraph><paragraph id="IDEC0826B1966E44BDA2F83B75ADADA76C"><enum>(3)</enum><header>Selection of

				applications</header><text>In awarding grants under subsection (a), the

				Secretary shall—</text>

												<subparagraph id="ID47D96351808441129370691F373499F1"><enum>(A)</enum><text>take into

				account—</text>

													<clause id="ID6B5F072BAA41408DA576ABBF38068CF1"><enum>(i)</enum><text>the number and

				distribution of minority and female faculty nationally;</text>

													</clause><clause id="ID30317096F8034685A8363164FCDCF174"><enum>(ii)</enum><text>the current and

				projected need for highly trained individuals in all areas of the higher

				education professoriate; and</text>

													</clause><clause id="ID68A77D530F3E4DBFA573375DEE628627"><enum>(iii)</enum><text>the present and

				projected need for highly trained individuals in academic career fields in

				which minorities and women are underrepresented in the higher education

				professoriate; and</text>

													</clause></subparagraph><subparagraph id="IDB20ACA8112424F619FF862F9AD0BCCBF"><enum>(B)</enum><text>consider the need

				to prepare a large number of minorities and women generally in academic career

				fields of high national priority, especially in areas in which such individuals

				are traditionally underrepresented in college and university faculties, such as

				mathematics, science, technology, and engineering.</text>

												</subparagraph></paragraph><paragraph id="ID0A9908E8E1BD4AD39F9CADA39FD30919"><enum>(4)</enum><header>Distribution

				and amounts of grants</header>

												<subparagraph id="IDFA69AEC75BE941B7B2BA45556E4113ED"><enum>(A)</enum><header>Equitable

				distribution</header><text>In awarding grants under this section, the Secretary

				shall, to the maximum extent feasible, ensure an equitable geographic

				distribution of awards and an equitable distribution among public and

				independent eligible institutions that apply for grants under this section and

				that demonstrate an ability to achieve the purpose of this section.</text>

												</subparagraph><subparagraph id="ID637D341E548C4200B9BEF73095F94EC8"><enum>(B)</enum><header>Special

				rule</header><text>To the maximum extent practicable, the Secretary shall use

				not less than 30 percent of the amount appropriated pursuant to subsection (f)

				to award grants to eligible institutions that—</text>

													<clause id="ID216F2D960C724AC592D4B2967B819E09"><enum>(i)</enum><text>are eligible for

				assistance under title III or title V; or</text>

													</clause><clause id="IDA0DE897A6C9448D8B542462C10178B2D"><enum>(ii)</enum><text>have formed a

				consortium that includes both non-minority serving institutions and minority

				serving institutions.</text>

													</clause></subparagraph><subparagraph id="ID8C63A6F982234CDBBB2663B18DF80E9F"><enum>(C)</enum><header>Allocation</header><text>In

				awarding grants under this section, the Secretary shall allocate appropriate

				funds to those eligible institutions whose applications indicate an ability to

				significantly increase the numbers of minorities and women entering the higher

				education professoriate and that commit institutional resources to the

				attainment of the purpose of this section.</text>

												</subparagraph><subparagraph id="IDF38BC27340044B6B9B6A27D0018197F3"><enum>(D)</enum><header>Number of

				fellowship awards</header><text>An eligible institution that receives a grant

				under this section shall make not less than 15 fellowship awards.</text>

												</subparagraph><subparagraph id="IDCF898E657F1D46B297A875EC012E9B37"><enum>(E)</enum><header>Reallotment</header><text>If

				the Secretary determines that an eligible institution awarded a grant under

				this section is unable to use all of the grant funds awarded to the

				institution, the Secretary shall reallot, on such date during each fiscal year

				as the Secretary may fix, the unused funds to other eligible institutions that

				demonstrate that such institutions can use any reallocated grant funds to make

				fellowship awards to individuals under this section.</text>

												</subparagraph></paragraph><paragraph id="IDC45C707DE1F441A891491C8FBD58CA44"><enum>(5)</enum><header>Institutional

				allowance</header>

												<subparagraph id="ID47C1D02233A0418E96C1F812EEC5ECBA"><enum>(A)</enum><header>In

				general</header>

													<clause id="ID4B51DDB9856947E69D4369DA0F9354B7"><enum>(i)</enum><header>Number of

				allowances</header><text>In awarding grants under this section, the Secretary

				shall pay to each eligible institution awarded a grant, for each individual

				awarded a fellowship by such institution under this section, an institutional

				allowance.</text>

													</clause><clause id="IDFA52B70DAE6843F09A74868BAC42BAC3"><enum>(ii)</enum><header>Amount</header><text>Except

				as provided in paragraph (3), an institutional allowance shall be in an amount

				equal to, for academic year 2006–2007 and succeeding academic years, the amount

				of institutional allowance made to an institution of higher education under

				section 715 for such academic year.</text>

													</clause></subparagraph><subparagraph id="IDF4B72354A1BC4AC0A226309398F424F4"><enum>(B)</enum><header>Use of

				funds</header><text>Institutional allowances may be expended in the discretion

				of the eligible institution and may be used to provide, except as prohibited

				under paragraph (4), academic support and career transition services for

				individuals awarded fellowships by such institution.</text>

												</subparagraph><subparagraph id="ID47923EF9642F40B8BF3A688B41ED9C9E"><enum>(C)</enum><header>Reduction</header><text>The

				institutional allowance paid under paragraph (1) shall be reduced by the amount

				the eligible institution charges and collects from a fellowship recipient for

				tuition and other expenses as part of the recipient’s instructional

				program.</text>

												</subparagraph><subparagraph id="ID4E1B08278B4B4E3099853D0FB7674199"><enum>(D)</enum><header>Use for

				overhead prohibited</header><text>Funds made available under this section may

				not be used for general operational overhead of the academic department or

				institution receiving funds under this section.</text>

												</subparagraph></paragraph></subsection><subsection id="ID7739EF5CC516434CBCAA09FBC17C83FC"><enum>(d)</enum><header>Fellowship

				Recipients</header>

											<paragraph id="ID7299FF483F7D4256A6F6F334503F5401"><enum>(1)</enum><header>Authorization</header><text>An

				eligible institution that receives a grant under this section shall use the

				grant funds to make fellowship awards to minorities and women who are enrolled

				at such institution in a doctoral degree, or highest possible degree available,

				program and—</text>

												<subparagraph id="ID90C7FC74B28D47C5810DAB9BC9E2C834"><enum>(A)</enum><text>intend to pursue

				a career in instruction at—</text>

													<clause id="ID6E6FA96A4FE64DFC8B879CA1B3708BE6"><enum>(i)</enum><text>an institution of

				higher education (as the term is defined in section 101);</text>

													</clause><clause id="ID34F82C6CFE224B5CA06CD778D6D19B1F"><enum>(ii)</enum><text>an institution

				of higher education (as the term is defined in section 102(a)(1));</text>

													</clause><clause id="IDD2E34052A3EA481DB2A70D51F84CF2D8"><enum>(iii)</enum><text>an institution

				of higher education outside the United States (as the term is described in

				section 102(a)(2)); or</text>

													</clause><clause id="ID71EDEE8B834244C592670E98C4FF88CF"><enum>(iv)</enum><text>a proprietary

				institution of higher education (as the term is defined in section 102(b));

				and</text>

													</clause></subparagraph><subparagraph id="ID62E643C72D4546A39973D798ED025438"><enum>(B)</enum><text>sign an agreement

				with the Secretary agreeing—</text>

													<clause id="ID4031599CDFE44D6B809390D0AAFFD2D0"><enum>(i)</enum><text>to begin

				employment at an institution described in paragraph (1) not later than 3 years

				after receiving the doctoral degree or highest possible degree available, which

				3-year period may be extended by the Secretary for extraordinary circumstances;

				and</text>

													</clause><clause id="IDC9FF1DFE289540759E148F565006E903"><enum>(ii)</enum><text>to be employed

				by such institution for 1 year for each year of fellowship assistance received

				under this section.</text>

													</clause></subparagraph></paragraph><paragraph id="ID412BD47F79984F16806FCD18DC3217D4"><enum>(2)</enum><header>Failure to

				comply</header><text>If an individual who receives a fellowship award under

				this section fails to comply with the agreement signed pursuant to subsection

				(a)(2), then the Secretary shall do 1 or both of the following:</text>

												<subparagraph id="IDE63139239D8C4B6AA19D45070398C262"><enum>(A)</enum><text>Require the

				individual to repay all or the applicable portion of the total fellowship

				amount awarded to the individual by converting the balance due to a loan at the

				interest rate applicable to loans made under part B of title IV.</text>

												</subparagraph><subparagraph id="ID5F21AF8D09DB4009B829C85773CCB2C5"><enum>(B)</enum><text>Impose a fine or

				penalty in an amount to be determined by the Secretary.</text>

												</subparagraph></paragraph><paragraph id="IDD5822225A4D745B791DD5514B0656033"><enum>(3)</enum><header>Waiver and

				modification</header>

												<subparagraph id="IDEB32B49585A142E78D858D1DBC317FE5"><enum>(A)</enum><header>Regulations</header><text>The

				Secretary shall promulgate regulations setting forth criteria to be considered

				in granting a waiver for the service requirement under subsection

				(a)(2).</text>

												</subparagraph><subparagraph id="ID882375340CFE4878B9C40B019C5CE438"><enum>(B)</enum><header>Content</header><text>The

				criteria under paragraph (1) shall include whether compliance with the service

				requirement by the fellowship recipient would be—</text>

													<clause id="IDDDEE978D0CC24A02BCD59693569C5399"><enum>(i)</enum><text>inequitable and

				represent an extraordinary hardship; or</text>

													</clause><clause id="ID19927F9CC2EA4793B69720137BEF2B64"><enum>(ii)</enum><text>deemed

				impossible because the individual is permanently and totally disabled at the

				time of the waiver request.</text>

													</clause></subparagraph></paragraph><paragraph id="IDB06B433D9CBE4306BE94B703A2653181"><enum>(4)</enum><header>Amount of

				fellowship awards</header><text>Fellowship awards under this section shall

				consist of a stipend in an amount equal to the level of support provided to the

				National Science Foundation graduate fellows, except that such stipend shall be

				adjusted as necessary so as not to exceed the fellow’s tuition and fees or

				demonstrated need (as determined by the institution of higher education where

				the graduate student is enrolled), whichever is greater.</text>

											</paragraph><paragraph id="IDB8497569A3D94E7DA7ED760DE063BAE2"><enum>(5)</enum><header>Academic

				progress required</header><text>An individual student shall not be eligible to

				receive a fellowship award—</text>

												<subparagraph id="ID2D0DB0C30F7148F0A68F516A00FAE02C"><enum>(A)</enum><text>except during

				periods in which such student is enrolled, and such student is maintaining

				satisfactory academic progress in, and devoting essentially full time to, study

				or research in the pursuit of the degree for which the fellowship support was

				awarded; and</text>

												</subparagraph><subparagraph id="IDA7FBBC80508947819399063CCAE57798"><enum>(B)</enum><text>if the student is

				engaged in gainful employment, other than part-time employment in teaching,

				research, or similar activity determined by the eligible institution to be

				consistent with and supportive of the student’s progress toward the appropriate

				degree.</text>

												</subparagraph></paragraph></subsection><subsection id="ID80B941CAB695481AA9886C859C49859B"><enum>(e)</enum><header>Rule of

				Construction</header><text>Nothing in this section shall be construed to

				require an eligible institution that receives a grant under this

				section—</text>

											<paragraph id="IDDFAE1A17639445A1A22E0EB6AEF0320F"><enum>(1)</enum><text>to grant a

				preference or to differentially treat any applicant for a faculty position as a

				result of the institution’s participation in the program under this section;

				or</text>

											</paragraph><paragraph id="ID2620D6D0A0914D399CF84B903EB76774"><enum>(2)</enum><text>to hire a Patsy

				T. Mink Fellow who completes this program and seeks employment at such

				institution.</text>

											</paragraph></subsection><subsection id="ID1F1B1013E7B3487F9BF062B271D12E12"><enum>(f)</enum><header>Authorization

				of Appropriations</header><text>There is authorized to be appropriated to carry

				out this section such sums as may be necessary for fiscal year 2006 for each of

				the 5 succeeding fiscal years.</text>

										</subsection></section></part><part id="IDD172F7C25C4546B2982F86AC6AFF4DAC"><enum>H</enum><header>STUDY ON COLLEGE

				ENROLLMENT BY SECONDARY SCHOOLS</header>

									<section id="ID736986E5DF584E62BF8E6D76CA9CB513"><enum>881.</enum><header>Study on

				College enrollment by secondary schools</header><text display-inline="no-display-inline">The Secretary shall contract with a

				not-for-profit organization, with demonstrated expertise in increasing college

				enrollment rates in low-income communities nationwide, to make publicly

				available year-to-year college enrollment rate trends by secondary schools, in

				full compliance with the Family Educational Rights and Privacy Act of 1974

				(FERPA).</text>

									</section></part></title><after-quoted-block>.</after-quoted-block></quoted-block>

					</section></chapter><chapter id="ID5DADFA8022434D498D4DB143C5D62C51"><enum>10</enum><header>AMENDMENTS TO

			 OTHER LAWS</header>

					<subchapter id="IDB9944BE37EDB4E39BC3D5B1762149C2E"><enum>A</enum><header>Education of the

			 Deaf Act of 1986</header>

						<section id="ID0892F73A382040C198670000CBB26379"><enum>7901.</enum><header>Laurent Clerc

			 National Deaf Education Center</header><text display-inline="no-display-inline">Section 104 of the Education of the Deaf Act

			 of 1986 (20 U.S.C. 4304) is amended—</text>

							<paragraph id="ID545B7D52A56841F2AD3672D55B961CAB"><enum>(1)</enum><text>by striking the

			 heading and inserting <quote><header-in-text>laurent clerc national deaf

			 education center</header-in-text></quote>;</text>

							</paragraph><paragraph id="ID9C37A663E3C148808296EFE49C655B5C"><enum>(2)</enum><text>in subsection

			 (a)(1)(A), by inserting <quote>the Laurent Clerc National Deaf Education Center

			 (referred to in this section as the <quote>Clerc Center</quote>) to carry

			 out</quote> after <quote>maintain and operate</quote>; and</text>

							</paragraph><paragraph id="ID46F87AE771B54761AC208E83FB21E6ED"><enum>(3)</enum><text>in subsection

			 (b)—</text>

								<subparagraph id="ID345C49FCABE64CCAB1A3ECED2EE17213"><enum>(A)</enum><text>in the matter

			 preceding subparagraph (A) of paragraph (1), by striking <quote>elementary and

			 secondary education programs</quote> and inserting <quote>Clerc

			 Center</quote>;</text>

								</subparagraph><subparagraph id="ID623A2565795F43169E7D84881041978C"><enum>(B)</enum><text>in paragraph (2),

			 by striking <quote>elementary and secondary education programs</quote> and

			 inserting <quote>Clerc Center</quote>; and</text>

								</subparagraph><subparagraph id="ID909F14D9390A4D8E86D43BB6B5B5034E"><enum>(C)</enum><text>by adding at the

			 end the following:</text>

									<quoted-block id="IDC1EA882D05DE44A4B24CB31BE7EE24B8" style="OLC">

										<paragraph id="ID9FCCE87AD76141D8A068D01DCA4DFE6B" indent="up1"><enum>(5)</enum><text>The University, for purposes of the

				elementary and secondary education programs carried out at the Clerc Center,

				shall—</text>

											<subparagraph id="IDF2AD2C7E452B4907A66B5FA37B1FF6B3"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="ID4D1642608FC444E9892C81E2784ACB00"><enum>(i)</enum><text>select challenging

				academic content standards, challenging student academic achievement standards,

				and academic assessments of a State, adopted and implemented, as appropriate,

				pursuant to paragraphs (1) and (3) of section 1111(b) of the

				<act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

				1965</act-name> (20 U.S.C. 6311(b)(1) and (3)) and approved by the Secretary;

				and</text>

												</clause><clause id="ID7447E37FEAED43A6B2615B42BCAE2F9F" indent="up1"><enum>(ii)</enum><text>implement such standards and

				assessments for such programs by not later than the beginning of the 2008–2009

				academic year;</text>

												</clause></subparagraph><subparagraph id="IDBEC371B6E91549F6A94552436724506A"><enum>(B)</enum><text>annually determine whether such

				programs at the Clerc Center are making adequate yearly progress, as determined

				according to the definition of adequate yearly progress defined (pursuant to

				section 1111(b)(2)(C) of such Act (20 U.S.C. 6311(b)(2)(C))) by the State that

				has adopted and implemented the standards and assessments selected under

				subparagraph (A)(i); and</text>

											</subparagraph><subparagraph id="ID2E77836D91064607B5F5BBDE090CA323"><enum>(C)</enum><text>publicly report the results of the

				academic assessments implemented under subparagraph (A) and whether the

				programs at the Clerc Center are making adequate yearly progress, as determined

				under subparagraph

				(B).</text>

											</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

								</subparagraph></paragraph></section><section id="ID91F2A39699744994A55C499EA543AA8C"><enum>7902.</enum><header>Agreement

			 with Gallaudet University</header><text display-inline="no-display-inline">Section 105(b)(4) of the Education of the

			 Deaf Act of 1986 (20 U.S.C. 4305(b)(4)) is amended—</text>

							<paragraph id="IDB1676805DF6A42F0960D979EC0D933D6"><enum>(1)</enum><text>by striking

			 <quote>the Act of March 3, 1931 (40 U.S.C. 276a–276a–5) commonly referred to as

			 the <act-name parsable-cite="DBA">Davis-Bacon Act</act-name></quote> and

			 inserting <quote>subchapter IV of chapter 31 of title 40, United States Code,

			 commonly referred to as the <act-name parsable-cite="DBA">Davis-Bacon

			 Act</act-name></quote>; and</text>

							</paragraph><paragraph id="IDC391E8332D15491BA5DD226CFED3C208"><enum>(2)</enum><text>by striking

			 <quote>section 2 of the Act of June 13, 1934 (40 U.S.C. 276c)</quote> and

			 inserting <quote>section 3145 of title 40, United States Code</quote>.</text>

							</paragraph></section><section id="ID58A2D1CCB4A843E6AD50B875FD6C5E8C"><enum>7903.</enum><header>Agreement for

			 the National Technical Institute for the Deaf</header><text display-inline="no-display-inline">Section 112 of the Education of the Deaf Act

			 of 1986 (20 U.S.C. 4332) is amended—</text>

							<paragraph id="IDFB4348B8DC7C44D4A100C201BDA11137"><enum>(1)</enum><text>in subsection

			 (a)—</text>

								<subparagraph id="ID8A5561E4EE4A446390C7E8C69EA07568"><enum>(A)</enum><text>in paragraph

			 (1)—</text>

									<clause id="ID3E87C36C266E440B8C2A03752FF969F0"><enum>(i)</enum><text>in

			 the first sentence—</text>

										<subclause id="ID0650A19D597D49D0953D3E008EA0DF2D"><enum>(I)</enum><text>by striking

			 <quote>an institution of higher education</quote> and inserting <quote>the

			 Rochester Institute of Technology, Rochester, New York</quote>; and</text>

										</subclause><subclause id="ID0103EB10114547B6ACDCD944A0DB81EE"><enum>(II)</enum><text>by striking

			 <quote>of a</quote> and inserting <quote>of the</quote>; and</text>

										</subclause></clause><clause id="ID373EE72442D04A448833FF053FC31935"><enum>(ii)</enum><text>by

			 striking the second sentence;</text>

									</clause></subparagraph><subparagraph id="ID076EE3A3F7B34DD89657C63B20E7A266"><enum>(B)</enum><text>by redesignating

			 paragraph (2) as paragraph (3); and</text>

								</subparagraph><subparagraph id="IDB80624699FDD4D159E095DD8C6246E19"><enum>(C)</enum><text>by inserting

			 after paragraph (1) the following:</text>

									<quoted-block id="ID939AC703E98448EC9D499C58DD580D54" style="OLC">

										<paragraph id="ID16E685ED4AF9450CAE11CB89D840D0A4"><enum>(2)</enum><text>Notwithstanding

				the requirement under paragraph (1), if the Secretary or the Rochester

				Institute of Technology terminates the agreement under paragraph (1), the

				Secretary shall consider proposals from other institutions of higher education

				and enter into an agreement with 1 of such institutions for the establishment

				and operation of a National Technical Institution for the

				Deaf.</text>

										</paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</subparagraph></paragraph><paragraph id="IDDA6EE52FE70548EDA8BF6995FBF6437C"><enum>(2)</enum><text>in subsection

			 (b)—</text>

								<subparagraph id="ID6520897A0A434E2AA1BB954B8B26676F"><enum>(A)</enum><text>in paragraph (3),

			 by striking <quote>Committee on Education and Labor of the House of

			 Representatives and to the Committee on Labor and Human Resources of the

			 Senate</quote> and inserting <quote>Committee on Education and the Workforce of

			 the House of Representatives and to the Committee on Health, Education, Labor,

			 and Pensions of the Senate</quote>; and</text>

								</subparagraph><subparagraph id="ID876100AC67924925895C1F4CAEE65429"><enum>(B)</enum><text>in paragraph

			 (5)—</text>

									<clause id="ID4D53F87B7CE64471A4BC8310074F4D10"><enum>(i)</enum><text>by

			 striking <quote>the Act of March 3, 1931 (40 U.S.C. 276a–276a–5) commonly

			 referred to as the <act-name parsable-cite="DBA">Davis-Bacon

			 Act</act-name></quote> and inserting <quote>subchapter IV of chapter 31 of

			 title 40, United States Code, commonly referred to as the

			 <act-name parsable-cite="DBA">Davis-Bacon Act</act-name></quote>; and</text>

									</clause><clause id="IDFAA56BC5FF014C37B0721EE002F5D00F"><enum>(ii)</enum><text>by

			 striking <quote>section 2 of the Act of June 13, 1934 (40 U.S.C. 276c)</quote>

			 and inserting <quote>section 3145 of title 40, United States

			 Code</quote>.</text>

									</clause></subparagraph></paragraph></section><section id="ID5E892E08C87D4789BE10AD6E9F911B5D"><enum>7904.</enum><header>Cultural

			 experiences grants</header>

							<subsection id="ID35197DF6826A41498421761A1543D4AA"><enum>(a)</enum><header>Cultural

			 Experiences Grants</header><text>Title I of the Education of the Deaf Act of

			 1986 (20 U.S.C. 4301 et seq.) is amended by adding at the end the

			 following:</text>

								<quoted-block id="ID590965F2D7CE4CCBB9A5667F27246C83" style="OLC">

									<part id="ID1B3BD6B0A20340AF8730A46D6FB70734"><enum>C</enum><header>OTHER

				PROGRAMS</header>

										<section id="IDF87FC20BCF62460BBA7349F6DEA9862F"><enum>121.</enum><header>Cultural

				experiences grants</header>

											<subsection id="ID723D5A4FED004C868257E7F8E84C272A"><enum>(a)</enum><header>In

				General</header><text>The Secretary shall, on a competitive basis, make grants

				to, and enter into contracts and cooperative agreements with, eligible entities

				to support the activities described in subsection (b).</text>

											</subsection><subsection id="IDF01EDF9CD02144F5A669910C7598572B"><enum>(b)</enum><header>Activities</header><text>In

				carrying out this section, the Secretary shall support activities providing

				cultural experiences, through appropriate nonprofit organizations with a

				demonstrated proficiency in providing such activities, that—</text>

												<paragraph id="IDA839828CEB6945609EF3E390124F5FEA"><enum>(1)</enum><text>enrich the lives

				of deaf and hard-of-hearing children and adults;</text>

												</paragraph><paragraph id="ID1166B410F5E248A48293789B435EA0D0"><enum>(2)</enum><text>increase public

				awareness and understanding of deafness and of the artistic and intellectual

				achievements of deaf and hard-of-hearing persons; or</text>

												</paragraph><paragraph id="IDC84FED3582DA4B01BE0FC2607D2382D9"><enum>(3)</enum><text>promote the

				integration of hearing, deaf, and hard-of-hearing persons through shared

				cultural, educational, and social experiences.</text>

												</paragraph></subsection><subsection id="ID71488E6BA5604317A893184FC8B60D05"><enum>(c)</enum><header>Applications</header><text>An

				eligible entity that desires to receive a grant, or enter into a contract or

				cooperative agreement, under this section shall submit an application to the

				Secretary at such time, in such manner, and containing such information as the

				Secretary may require.</text>

											</subsection><subsection id="ID5A09A1EA01B6470486B292321BCFFBC2"><enum>(d)</enum><header>Authorization

				of Appropriations</header><text>There are authorized to be appropriated to

				carry out this section such sums as may be necessary for fiscal year 2006 and

				each of the 5 succeeding fiscal

				years.</text>

											</subsection></section></part><after-quoted-block>.</after-quoted-block></quoted-block>

							</subsection><subsection id="ID4E653C0731734B08BA96FCE95603934A"><enum>(b)</enum><header>Conforming

			 Amendment</header><text>The title heading of title I of the Education of the

			 Deaf Act of 1986 (20 U.S.C. 4301 et seq.) is amended by adding at the end

			 <quote>; OTHER PROGRAMS</quote>.</text>

							</subsection></section><section id="ID2926298BC62B40B3BEB2B327173B2E79"><enum>7905.</enum><header>Audit</header><text display-inline="no-display-inline">Section 203 of the Education of the Deaf Act

			 of 1986 (20 U.S.C. 4353) is amended—</text>

							<paragraph id="IDACD19724DD4F4725BEDEE4E709017230"><enum>(1)</enum><text>in subsection

			 (b)—</text>

								<subparagraph id="IDC3447E4FC7124AEA99B50EA9DA42E48C"><enum>(A)</enum><text>in paragraph (1),

			 by striking the second sentence and inserting the following: <quote>The

			 institution of higher education that the Secretary has an agreement with under

			 section 112 shall have an annual independent financial and compliance audit

			 made of NTID programs and activities. The audit shall follow the cycle of the

			 Federal fiscal year.</quote>;</text>

								</subparagraph><subparagraph id="ID941BD8D2487C4BCCBEDE48B29198461D"><enum>(B)</enum><text>in paragraph (2),

			 by striking <quote>sections</quote> and all that follows through the period and

			 inserting <quote>sections 102(b), 105(b)(4), 112(b)(5), 203(c), 207(b)(2),

			 subsections (c) through (f) of section 207, and subsections (b) and (c) of

			 section 209.</quote>; and</text>

								</subparagraph><subparagraph id="ID930D188DE63B42E18D4E79352C1487F6"><enum>(C)</enum><text>in paragraph (3),

			 by inserting <quote>and the Committee on Education and the Workforce of the

			 House of Representatives and the Committee on Health, Education, Labor, and

			 Pensions of the Senate</quote> after <quote>Secretary</quote>; and</text>

								</subparagraph></paragraph><paragraph id="IDABC23B3C39DF4CC899CF5CCB06333522"><enum>(2)</enum><text>in subsection

			 (c)(2)(A), by striking <quote>Committee on Education and Labor of the House of

			 Representatives and the Committee on Labor and Human Resources of the

			 Senate</quote> and inserting <quote>Committee on Education and the Workforce of

			 the House of Representatives and the Committee on Health, Education, Labor, and

			 Pensions of the Senate</quote>.</text>

							</paragraph></section><section id="ID9C5BF536CB0748D1BB8F83228857AB6B"><enum>7906.</enum><header>Reports</header><text display-inline="no-display-inline">Section 204 of the Education of the Deaf Act

			 of 1986 (20 U.S.C. 4354) is amended—</text>

							<paragraph id="ID2A073ECC9A07426890F25FE9B8F16348"><enum>(1)</enum><text>in the matter

			 preceding paragraph (1), by striking <quote>Committee on Education and Labor of

			 the House of Representatives and the Committee on Labor and Human Resources of

			 the Senate</quote> and inserting <quote>Committee on Education and the

			 Workforce of the House of Representatives and the Committee on Health,

			 Education, Labor, and Pensions of the Senate</quote>;</text>

							</paragraph><paragraph id="IDF930E3E62D254A28914DEA8FF3BFB7B6"><enum>(2)</enum><text>in paragraph (1),

			 by striking <quote>preparatory,</quote>;</text>

							</paragraph><paragraph id="ID7933CE2A89D447F1910559D75D72143E"><enum>(3)</enum><text>in paragraph

			 (2)(C), by striking <quote>upon graduation/completion</quote> and inserting

			 <quote>on the date that is 1 year after the date of graduation or

			 completion</quote>; and</text>

							</paragraph><paragraph id="ID175298605AF947D59624B3B63808BC96"><enum>(4)</enum><text>in paragraph

			 (3)(B), by striking <quote>of the institution of higher education</quote> and

			 all that follows through the period and inserting <quote>of NTID programs and

			 activities.</quote>.</text>

							</paragraph></section><section id="ID92A0EB33C23D432C83C8477511512BCC"><enum>7907.</enum><header>Monitoring,

			 evaluation, and reporting</header><text display-inline="no-display-inline">Section 205 of the Education of the Deaf Act

			 of 1986 (20 U.S.C. 4355) is amended—</text>

							<paragraph id="IDD225E67536E647A69C5A1133A7D21A17"><enum>(1)</enum><text>in subsection

			 (b), by striking <quote>The Secretary, as part of the annual report required

			 under section 426 of the Department of Education Organization Act, shall

			 include a description of</quote> and inserting <quote>The Secretary shall

			 annually transmit information to Congress on</quote>; and</text>

							</paragraph><paragraph id="ID18344F541EB9450A9504A5D2636C9E8F"><enum>(2)</enum><text>in subsection

			 (c), by striking <quote>fiscal years 1998 through 2003</quote> and inserting

			 <quote>fiscal years 2006 through 2010</quote>.</text>

							</paragraph></section><section id="ID10F1927B8F104DFBA635141E89BA4F69"><enum>7908.</enum><header>Liaison for

			 educational programs</header><text display-inline="no-display-inline">Section

			 206(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 4356(a)) is amended

			 by striking <quote>Not later than 30 days after the date of enactment of this

			 Act, the</quote> and inserting <quote>The</quote>.</text>

						</section><section id="ID61893DE466B94F319D006368F75EE20C"><enum>7909.</enum><header>Federal

			 endowment programs for Gallaudet University and the National Technical

			 Institute for the Deaf</header><text display-inline="no-display-inline">Section

			 207(h) of the Education of the Deaf Act of 1986 (20 U.S.C. 4357(h)) is amended

			 by striking <quote>fiscal years 1998 through 2003</quote> each place it appears

			 and inserting <quote>fiscal years 2006 through 2010</quote>.</text>

						</section><section id="ID10F60A7ECAB5412B8C063E9FB9907F5C"><enum>7910.</enum><header>Oversight and

			 effect of agreements</header><text display-inline="no-display-inline">Section

			 208(a) of the Education of the Deaf Act of 1986 (20 U.S.C. 4359(a)) is amended

			 by striking <quote>Committee on Labor and Human Resources of the Senate and the

			 Committee on Education and the Workforce of the House of

			 Representatives</quote> and inserting <quote>Committee on Education and the

			 Workforce of the House of Representatives and the Committee on Health,

			 Education, Labor, and Pensions of the Senate</quote>.</text>

						</section><section id="IDC7E5E01A48854F8EB9C5567C7C72F5D2"><enum>7911.</enum><header>International

			 students</header><text display-inline="no-display-inline">Section 209 of the

			 Education of the Deaf Act of 1986 (20 U.S.C. 4359a) is amended—</text>

							<paragraph id="ID6AC1BFEBD7374AF8BF2DCB25FCF52F41"><enum>(1)</enum><text>in subsection

			 (a)—</text>

								<subparagraph id="ID68B91C05790248DA85B24F18129A0591"><enum>(A)</enum><text>by striking

			 <quote>preparatory, undergraduate,</quote> and inserting

			 <quote>undergraduate</quote>;</text>

								</subparagraph><subparagraph id="IDE429DAC400874B29BA3B5A33CFC55230"><enum>(B)</enum><text>by striking

			 <quote>Effective with</quote> and inserting the following:</text>

									<quoted-block id="ID7F2F94B3E18E4D5B9FFA2156D3D39B83" style="OLC">

										<paragraph id="ID528236159DCA47BD9CFF5F54BC9087B3"><enum>(1)</enum><header>In

				general</header><text>Except as provided in paragraph (2), effective

				with</text>

										</paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</subparagraph><subparagraph id="ID88AB2A972FDA47719749A4AFF2248F82"><enum>(C)</enum><text>by adding at the

			 end the following:</text>

									<quoted-block id="ID46C346CAEDED487DA915591A3725DD41" style="OLC">

										<paragraph id="ID374A99ED29C44EE2A5FE2A9276DC8167"><enum>(2)</enum><header>Distance

				learning</header><text>International students who participate in distance

				learning courses that are at NTID or the University and who are residing

				outside of the United States shall—</text>

											<subparagraph id="IDC558FE97A3D24A818AB3072A1C6A883D"><enum>(A)</enum><text>not be counted as

				international students for purposes of the cap on international students under

				paragraph (1), except that in any school year no United States citizen who

				applies to participate in distance learning courses that are at the University

				or NTID shall be denied participation in such courses because of the

				participation of an international student in such courses; and</text>

											</subparagraph><subparagraph id="ID9B9878C2CFE245B8A69ECD1C7C463752"><enum>(B)</enum><text>not be charged a

				tuition surcharge, as described in subsection

				(b).</text>

											</subparagraph></paragraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

								</subparagraph></paragraph><paragraph id="IDDB5333419A834B7199C05E2BADCDE7A7"><enum>(2)</enum><text>by striking

			 subsections (b), (c), and (d), and inserting the following:</text>

								<quoted-block id="ID35B9A3882CBA4020810C818CD4FAE2B3" style="OLC">

									<subsection id="IDC07494BCF4B04524913E3BCAC137203F"><enum>(b)</enum><header>Tuition

				Surcharge</header><text>Except as provided in subsections (a)(2)(B) and (c),

				the tuition for postsecondary international students enrolled in the University

				(including undergraduate and graduate students) or NTID shall include, for

				academic year 2007–2008 and any succeeding academic year, a surcharge

				of—</text>

										<paragraph id="ID233D95E6AEAB4D0AA8078E605BA0CD25"><enum>(1)</enum><text>100 percent for a

				postsecondary international student from a non-developing country; and</text>

										</paragraph><paragraph id="IDFE4B47EB4347482699FB7D760549014E"><enum>(2)</enum><text>50 percent for a

				postsecondary international student from a developing country.</text>

										</paragraph></subsection><subsection id="ID534A1D3D6F7647FB9F9F263361A94BF7"><enum>(c)</enum><header>Reduction of

				Surcharge</header>

										<paragraph id="ID5DB5D3084DCB4B05B72D12D9AAC64A5F"><enum>(1)</enum><header>In

				general</header><text>Beginning with the academic year 2007–2008, the

				University or NTID may reduce the surcharge—</text>

											<subparagraph id="IDFBF07327EA1C4B0AA0E9BBBD727D703E"><enum>(A)</enum><text>under subsection

				(b)(1) to 50 percent if—</text>

												<clause id="IDAB3F217C3CA9483080C5796C21570A4F"><enum>(i)</enum><text>a

				student described under subsection (b)(1) demonstrates need; and</text>

												</clause><clause id="ID929DCD145E3F4CDEA1CDC05FA27ABA6C"><enum>(ii)</enum><text>such student has

				made a good faith effort to secure aid through such student’s government or

				other sources; and</text>

												</clause></subparagraph><subparagraph id="IDE1EC4D9F4D56417B964D806431FBF89D"><enum>(B)</enum><text>under subsection

				(b)(2) to 25 percent if—</text>

												<clause id="ID02F20232E6574390928AB3FD0A19275E"><enum>(i)</enum><text>a

				student described under subsection (b)(2) demonstrates need; and</text>

												</clause><clause id="IDB76C7A9803E14A7680E93EE2948D0206"><enum>(ii)</enum><text>such student has

				made a good faith effort to secure aid through such student’s government or

				other sources.</text>

												</clause></subparagraph></paragraph><paragraph id="ID8A2FB415CDF14EB0A0AD269D799A5DC5"><enum>(2)</enum><header>Development of

				sliding scale</header><text>The University and NTID shall develop a sliding

				scale model that—</text>

											<subparagraph id="ID6FEDB00B5C1748C39CBC0FC410674788"><enum>(A)</enum><text>will be used to

				determine the amount of a tuition surcharge reduction pursuant to paragraph

				(1); and</text>

											</subparagraph><subparagraph id="ID04D0C8F423264855B4D288EC6449829E"><enum>(B)</enum><text>shall be approved

				by the Secretary.</text>

											</subparagraph></paragraph></subsection><subsection id="ID61BF6429670E4F85BC83545B39F3C5B4"><enum>(d)</enum><header>Definition</header><text>In

				this section, the term <term>developing country</term> means a country with a

				per-capita income of not more than $4,825, measured in 1999 United States

				dollars, as adjusted by the Secretary to reflect inflation since

				1999.</text>

									</subsection><after-quoted-block>.</after-quoted-block></quoted-block>

							</paragraph></section><section id="ID25881D1AF5D9427C913305C9742F511B"><enum>7912.</enum><header>Research

			 priorities</header><text display-inline="no-display-inline">Section 210(b) of

			 the Education of the Deaf Act of 1986 (20 U.S.C. 4359b(b)) is amended by

			 striking <quote>Committee on Labor and Human Resources of the Senate</quote>

			 and inserting <quote>Committee on Health, Education, Labor, and Pensions of the

			 Senate</quote>.</text>

						</section><section id="ID719F9C0A837645C6959A6A9469B53265"><enum>7913.</enum><header>Authorization

			 of appropriations</header><text display-inline="no-display-inline">Section 212

			 of the Education of the Deaf Act of 1986 (20 U.S.C. 4360a) is amended—</text>

							<paragraph id="ID92352F1FE96240DAA6C6745BCF571A1F"><enum>(1)</enum><text>in subsection

			 (a), in the matter preceding paragraph (1), by striking <quote>fiscal years

			 1998 through 2003</quote> and inserting <quote>fiscal years 2006 through

			 2011</quote>; and</text>

							</paragraph><paragraph id="ID31E6F5F4E16C40418BDED4E8EEAC146F"><enum>(2)</enum><text>in subsection

			 (b), by striking <quote>fiscal years 1998 through 2003</quote> and inserting

			 <quote>fiscal years 2006 through 2011</quote>.</text>

							</paragraph></section></subchapter><subchapter id="ID4CF69F6E3D8A4875B9FCA5AC9EF63893"><enum>B</enum><header>United States

			 Institute of Peace Act</header>

						<section id="ID4F196DA9BAF44049B6B19E4F35A1003B"><enum>7921.</enum><header>United States

			 Institute of Peace Act</header>

							<subsection id="ID0F9AB29DF72B4072A9F18548285FA27B"><enum>(a)</enum><header>Powers and

			 Duties</header><text>Section 1705(b)(3) of the United States Institute of Peace

			 Act (22 U.S.C. 4604(b)(3)) is amended by striking <quote>the Arms Control and

			 Disarmament Agency,</quote>.</text>

							</subsection><subsection id="ID4589CEE23FA64BC48F02103E7E65CA60"><enum>(b)</enum><header>Board of

			 Directors</header><text>Section 1706 of the United States Institute of Peace

			 Act (22 U.S.C. 4605) is amended—</text>

								<paragraph id="ID2CD02BCC164E4EC6A162EF2F91E85055"><enum>(1)</enum><text>by striking

			 <quote>(b)(5)</quote> each place the term appears and inserting

			 <quote>(b)(4)</quote>; and</text>

								</paragraph><paragraph id="IDE938AA30A4B44B81B65BCEE3D456C853"><enum>(2)</enum><text>in subsection

			 (e), by adding at the end the following:</text>

									<quoted-block id="ID84D35554FEAF46CE95B484210EC6860C" style="OLC">

										<paragraph id="IDEA8951B4BF934F6E9FEBAF70FED3ADA4"><enum>(5)</enum><text>The term of a

				member of the Board shall not commence until the member is confirmed by the

				Senate and sworn in as a member of the

				Board.</text>

										</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

								</paragraph></subsection><subsection id="IDC821EB83EF4A421EB0BF1931BD9D30E4"><enum>(c)</enum><header>Funding</header><text>Section

			 1710 of the United States Institute of Peace Act (22 U.S.C. 4609) is amended by

			 adding at the end the following:</text>

								<quoted-block id="ID8CE592AC1DC442C5997B5B27DC2612D6" style="OLC">

									<subsection id="ID40F84D472031448C89636D7E64C2ADAC"><enum>(d)</enum><header>Extension</header><text>Any

				authorization of appropriations made for the purposes of carrying out this

				title shall be extended in the same manner as applicable programs are extended

				under section 422 of the General Education Provisions

				Act.</text>

									</subsection><after-quoted-block>.</after-quoted-block></quoted-block>

							</subsection></section></subchapter><subchapter id="IDD2CB2998CE404D9E9D0AA69457F776D5"><enum>C</enum><header>The Higher

			 Education Amendments of 1998</header>

						<section id="IDFD7347D0FB9943D5A2F86A1EBE890CAA"><enum>7931.</enum><header>Repeals</header><text display-inline="no-display-inline">The following provisions of title VIII of

			 the Higher Education Amendments of 1998 (Public Law 105–244) are

			 repealed:</text>

							<paragraph id="ID69096C9788054670A999368858F694D6"><enum>(1)</enum><text>Part A.</text>

							</paragraph><paragraph id="ID29C8717903244972A23B6F4ECCDD6230"><enum>(2)</enum><text>Part C (20 U.S.C.

			 1070 note).</text>

							</paragraph><paragraph id="IDB573FF10B27944AA8A9CDA787E4A6423"><enum>(3)</enum><text>Part F (20 U.S.C.

			 1862 note).</text>

							</paragraph><paragraph id="ID9E92FCE8E9C844DEADB0AE58E2E89F5D"><enum>(4)</enum><text>Part J.</text>

							</paragraph><paragraph id="ID92CC11FF48EE4FC0AB4D9F0174027780"><enum>(5)</enum><text>Section

			 861.</text>

							</paragraph><paragraph id="ID7083C88FE4054DB3A6B9C41A808253C6"><enum>(6)</enum><text>Section

			 863.</text>

							</paragraph></section><section id="ID0E72B072CAC54FACB98DE54E9B383A93"><enum>7932.</enum><header>Grants to

			 States for workplace and community transition training for incarcerated youth

			 offenders</header><text display-inline="no-display-inline">Section 821(b) of

			 the Higher Education Amendment of 1988 is amended by striking <quote>25</quote>

			 and inserting <quote>35</quote>.</text>

						</section></subchapter><subchapter id="ID54C392E3BEE546A58836AF34670C6CFB"><enum>D</enum><header>Indian

			 Education</header>

						<part id="IDA429EB3B5EA34B2EB995265F833A99A3"><enum>I</enum><header>TRIBAL COLLEGES

			 AND UNIVERSITIES</header>

							<section id="ID66F790D398C9447C89B120856E8D9075"><enum>7941.</enum><header>Reauthorization

			 of the Tribally Controlled College or University Assistance Act of

			 1978</header>

								<subsection id="ID97AF2B56D95C406D88D7551BEC2575C6"><enum>(a)</enum><header>Clarification

			 of the Definition of National Indian Organization</header><text>Section 2(a)(6)

			 of the Tribally Controlled College or University Assistance Act of 1978 (25

			 U.S.C. 1801(a)(6)) is amended by striking <quote>in the field of Indian

			 education</quote> and inserting <quote>in the fields of tribally controlled

			 colleges and universities and Indian higher education</quote>.</text>

								</subsection><subsection id="ID09D76EFEEBDF41CC92A8291C18E8B173"><enum>(b)</enum><header>Indian Student

			 Count</header><text>Section 2(a) of the Tribally Controlled College or

			 University Assistance Act (25 U.S.C. 1801(a)) is amended—</text>

									<paragraph id="ID26579EB471F9487DA677CD9366DC257D"><enum>(1)</enum><text>by redesignating

			 paragraphs (7) and (8) as paragraphs (8) and (9), respectively; and</text>

									</paragraph><paragraph id="ID261AA1A3706B42608D1FF1C09518CBFB"><enum>(2)</enum><text>by inserting

			 after paragraph (6) the following:</text>

										<quoted-block id="ID297B7AA5B2BB4E55BA87E9F94DE0D27C" style="OLC">

											<paragraph id="ID77D91FAE053C410F9B0485A25E7220F7"><enum>(7)</enum><text><quote>Indian

				student</quote> means a student who is—</text>

												<subparagraph id="IDCA1A40454C444F399457C44A6C7D3062"><enum>(A)</enum><text>a member of an

				Indian tribe; or</text>

												</subparagraph><subparagraph id="IDEAD8EFC8C1B149F89EC5C4AC92D1CC4A"><enum>(B)</enum><text>a biological

				child of a member of an Indian tribe, living or

				deceased;</text>

												</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

									</paragraph></subsection><subsection id="ID0713629C70974DCC8B1E8E0EFE8C9415"><enum>(c)</enum><header>Continuing

			 Education</header><text>Section 2(b) of the Tribally Controlled College or

			 University Assistance Act (25 U.S.C. 1801(b)) is amended by striking paragraph

			 (5) and inserting the following:</text>

									<quoted-block id="ID5ED1227EBE304443A03990E4FA6599B1" style="OLC">

										<paragraph id="IDCB8625BEFE91403F979E0FFF2B0D4221"><enum>(5)</enum><header>Determination

				of credits</header><text>Eligible credits earned in a continuing education

				program—</text>

											<subparagraph id="ID088FA31E05A44464BDBD56AB88DCD9C4"><enum>(A)</enum><text>shall be

				determined as 1 credit for every 10 contact hours in the case of an institution

				on a quarter system, or 15 contact hours in the case of an institution on a

				semester system, of participation in an organized continuing education

				experience under responsible sponsorship, capable direction, and qualified

				instruction, as described in the criteria established by the International

				Association for Continuing Education and Training; and</text>

											</subparagraph><subparagraph id="ID300251FF5C3E4486AAB90F555FF7B773"><enum>(B)</enum><text>shall be limited

				to 10 percent of the Indian student count of a tribally controlled college or

				university.</text>

											</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

								</subsection><subsection id="IDB71182F07B614BFDA5B3F82D6654DBB3"><enum>(d)</enum><header>Accreditation

			 Requirement</header><text>Section 103 of the Tribally Controlled College or

			 University Assistance Act (25 U.S.C. 1804) is amended—</text>

									<paragraph id="ID26DE1915F0A5478184F14C20DED13C91"><enum>(1)</enum><text>in paragraph (2),

			 by striking <quote>and</quote> at the end;</text>

									</paragraph><paragraph id="ID5E71327D267F45F09D38F3F7EE96EDB6"><enum>(2)</enum><text>in paragraph (3),

			 by striking the period at the end and inserting <quote>; and</quote>;

			 and</text>

									</paragraph><paragraph id="IDF528CAFCCC574182A8AFDBB534647D0C"><enum>(3)</enum><text>by inserting

			 after paragraph (3), the following:</text>

										<quoted-block id="ID499F7A181A0649A2AE2654B93F4A1BB1" style="OLC">

											<paragraph id="ID059FC0D591F44295A956D8C0E107F265"><enum>(4)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDA6F25081AF834A4DA6D844A126E95132"><enum>(A)</enum><text>is accredited by a

				nationally recognized accrediting agency or association determined by the

				Secretary of Education to be a reliable authority with regard to the quality of

				training offered; or</text>

												</subparagraph><subparagraph id="IDCA7A688974A14CB5A0D3667F3E68ACC3" indent="up1"><enum>(B)</enum><text>is, according to such an agency or

				association, making reasonable progress toward

				accreditation.</text>

												</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

									</paragraph></subsection><subsection id="ID153B5BDA10BD4C4CBB3B1FA64762C631"><enum>(e)</enum><header>Technical

			 Assistance Contract Awards</header><text>Section 105 of the Tribally Controlled

			 College or University Assistance Act (25 U.S.C. 1805) is amended in the second

			 sentence by striking <quote>In the awarding of contracts for technical

			 assistance, preference shall be given</quote> and inserting <quote>The

			 Secretary shall direct that contracts for technical assistance be

			 awarded</quote>.</text>

								</subsection><subsection id="IDEADB116310DA4B46868BF20F6B34C550"><enum>(f)</enum><header>Title

			 <enum-in-header>I</enum-in-header> Reauthorization</header><text>Section 110(a)

			 of the Tribally Controlled College or University Assistance Act of 1978 (25

			 U.S.C. 1810(a)) is amended—</text>

									<paragraph id="IDCE6C5B5F44DA40FFB228DB29ABC0E961"><enum>(1)</enum><text>in paragraphs

			 (1), (2), (3), and (4), by striking <quote>1999</quote> and inserting

			 <quote>2006</quote>;</text>

									</paragraph><paragraph id="IDDA0292BC881E40B5BF99D4B7081FC488"><enum>(2)</enum><text>in paragraphs

			 (1), (2), and (3), by striking <quote>4 succeeding</quote> and inserting

			 <quote>5 succeeding</quote>;</text>

									</paragraph><paragraph id="IDEA60C800FF334F77AF5E635F3AA5B392"><enum>(3)</enum><text>in paragraph (2),

			 by striking <quote>$40,000,000</quote> and inserting <quote>such sums as may be

			 necessary</quote>;</text>

									</paragraph><paragraph id="ID0663FE4EF0E54DE0BFCD5E3BC4B37086"><enum>(4)</enum><text>in paragraph (3),

			 by striking <quote>$10,000,000</quote> and inserting <quote>such sums as may be

			 necessary</quote>; and</text>

									</paragraph><paragraph id="ID6FA20655BF4D411FA56F239765D9DDF9"><enum>(5)</enum><text>in paragraph (4),

			 by striking <quote>succeeding 4</quote> and inserting <quote>5

			 succeeding</quote>.</text>

									</paragraph></subsection><subsection id="IDFAA77AF7A1204585A1AF110F5DEE9954"><enum>(g)</enum><header>Title

			 <enum-in-header>III</enum-in-header> Reauthorization</header><text>Section

			 306(a) of the Tribally Controlled College or University Assistance Act of 1978

			 (25 U.S.C. 1836(a)) is amended—</text>

									<paragraph id="ID7F6F5B7739EE46FF9CF5034FFDF20FAE"><enum>(1)</enum><text>by striking

			 <quote>1999</quote> and inserting <quote>2006</quote>; and</text>

									</paragraph><paragraph id="IDB67BBCAA7EFF493A9ED62230163EB928"><enum>(2)</enum><text>by striking

			 <quote>4 succeeding</quote> and inserting <quote>5 succeeding</quote>.</text>

									</paragraph></subsection><subsection id="ID648DCF8681264E2E8FD3FB2E86899C66"><enum>(h)</enum><header>Title

			 <enum-in-header>IV</enum-in-header> Reauthorization</header><text>Section 403

			 of the Tribal Economic Development and Technology Related Education Assistance

			 Act of 1990 (25 U.S.C. 1852) is amended—</text>

									<paragraph id="ID26BD774521464A5FB159DC0DE08A96F1"><enum>(1)</enum><text>by striking

			 <quote>$2,000,000 for fiscal year 1999</quote> and inserting <quote>such sums

			 as may be necessary for fiscal year 2006</quote>; and</text>

									</paragraph><paragraph id="ID659443766C6D4A57870B7E3431B01C70"><enum>(2)</enum><text>by striking

			 <quote>4 succeeding</quote> and inserting <quote>5 succeeding</quote>.</text>

									</paragraph></subsection></section></part><part id="ID4CE5DF220EF54E4EB09BC29364640797"><enum>II</enum><header>NAVAJO HIGHER

			 EDUCATION</header>

							<section id="IDFAA45485B61A4C91BC534FF6B264CE88"><enum>7945.</enum><header>Short

			 title</header><text display-inline="no-display-inline">This part may be cited

			 as the <quote>Navajo Nation Higher Education Act of 2005</quote>.</text>

							</section><section id="ID2F19C2AD25654A41BE3E89BA7177DAF4"><enum>7946.</enum><header>Reauthorization

			 of Navajo Community College Act</header>

								<subsection id="ID7760ABD2E415429980925DDDD3956F27"><enum>(a)</enum><header>Purpose</header><text>Section

			 2 of the Navajo Community College Act (25 U.S.C. 640a) is amended—</text>

									<paragraph id="IDF10866D8DDE1467CB35716285C2FB7CC"><enum>(1)</enum><text>by striking

			 <quote>Navajo Tribe of Indians</quote> and inserting <quote>Navajo

			 Nation</quote>; and</text>

									</paragraph><paragraph id="ID5827D547077744AB91347532D96CB1F4"><enum>(2)</enum><text>by striking ”the

			 Navajo Community College“ and inserting ”Diné College“.</text>

									</paragraph></subsection><subsection id="IDF541CB3106274D16A63E6968C997393B"><enum>(b)</enum><header>Grants</header><text>Section

			 3 of the Navajo Community College Act (25 U.S.C. 640b) is amended—</text>

									<paragraph id="IDED7FCFE717574DF7AE22776CD19AD92A"><enum>(1)</enum><text>in the first

			 sentence—</text>

										<subparagraph id="ID1671F1EA7AD54EA392AE182CFE5150C5"><enum>(A)</enum><text>by inserting

			 <quote>the</quote> before <quote>Interior</quote>;</text>

										</subparagraph><subparagraph id="IDBF86384E910C40EA8C27D78A40469DC7"><enum>(B)</enum><text>by striking

			 <quote>Navajo Tribe of Indians</quote> and inserting <quote>Navajo

			 Nation</quote>; and</text>

										</subparagraph><subparagraph id="IDE5210151A49B4D62BC1FD8807D53520F"><enum>(C)</enum><text>by striking ”the

			 Navajo Community College“ and inserting ”Diné College“; and</text>

										</subparagraph></paragraph><paragraph id="ID08D8DD80CC074029B952103410038A4B"><enum>(2)</enum><text>in the second

			 sentence—</text>

										<subparagraph id="IDEA863EEA83CC46449E1555874A3CFEE8"><enum>(A)</enum><text>by striking

			 <quote>Navajo Tribe</quote> and inserting <quote>Navajo Nation</quote>;

			 and</text>

										</subparagraph><subparagraph id="ID90F8FC74D1254AA9A14ABFB0F83FDAE7"><enum>(B)</enum><text>by striking

			 <quote>Navajo Indians</quote> and inserting <quote>Navajo

			 people</quote>.</text>

										</subparagraph></paragraph></subsection><subsection id="ID1967BA71CF7042FA992B14D05D31E57B"><enum>(c)</enum><header>Study of

			 Facilities Needs</header><text>Section 4 of the Navajo Community College Act

			 (25 U.S.C. 640c) is amended—</text>

									<paragraph id="ID824D28AF98E94E5CB3EADB0600F3527C"><enum>(1)</enum><text>in subsection

			 (a)—</text>

										<subparagraph id="ID747CF5EC174E4E669A68298AC6100853"><enum>(A)</enum><text>in the first

			 sentence—</text>

											<clause id="ID8F3E0D43F7B24DA092BB28CC1C14F1D4"><enum>(i)</enum><text>by

			 striking ”the Navajo Community College“ and inserting ”Diné College“;

			 and</text>

											</clause><clause id="ID74E06165A3CB4D76A3DBB623E92B9B57"><enum>(ii)</enum><text>by

			 striking <quote>August 1, 1979</quote> and inserting <quote>October 31,

			 2009</quote>; and</text>

											</clause></subparagraph><subparagraph id="IDD7E850EC1CFA49868153845777F39AA2"><enum>(B)</enum><text>in the second

			 sentence, by striking <quote>Navajo Tribe</quote> and inserting <quote>Navajo

			 Nation</quote>;</text>

										</subparagraph></paragraph><paragraph id="ID12D1C88E465D4A1BA7BB48F95D634C73"><enum>(2)</enum><text>in subsection

			 (b), by striking <quote>the date of enactment of the Tribally Controlled

			 Community College Assistance Act of 1978</quote> and inserting <quote>October

			 1, 2006</quote>; and</text>

									</paragraph><paragraph id="ID3F5FF79BD22C4962B5773A428FA77891"><enum>(3)</enum><text>in subsection

			 (c), in the first sentence, by striking ”the Navajo Community College“ and

			 inserting ”Diné College“.</text>

									</paragraph></subsection><subsection id="ID5AF4C0B9DFBB4B0290D6683933610F71"><enum>(d)</enum><header>Authorization

			 of Appropriations</header><text>Section 5 of the Navajo Community College Act

			 (25 U.S.C. 640c–1) is amended—</text>

									<paragraph id="IDC62F54E210664887AE254B286AAC12F8"><enum>(1)</enum><text>in subsection

			 (a)—</text>

										<subparagraph id="ID5E03D0838CA5416E8B9800A423ADEAC0"><enum>(A)</enum><text>in paragraph (1),

			 by striking <quote>$2,000,000</quote> and all that follows through the end of

			 the paragraph and inserting <quote>such sums as are necessary for fiscal years

			 2006 through 2011.</quote>; and</text>

										</subparagraph><subparagraph id="ID72176011649B4A17908174A4701A35CD"><enum>(B)</enum><text>by adding at the

			 end the following:</text>

											<quoted-block id="ID9A8724C00C1A40E5B370A01004AA7664" style="OLC">

												<paragraph id="IDECB6A633760A4ECB9776CA29DD675824" indent="up1"><enum>(3)</enum><text>Sums described in paragraph (2) shall

				be used to provide grants for construction activities, including the

				construction of buildings, water and sewer facilities, roads, information

				technology and telecommunications infrastructure, classrooms, and external

				structures (such as

				walkways).</text>

												</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

										</subparagraph></paragraph><paragraph id="ID63B11722FCC847328FA83DED67D65581"><enum>(2)</enum><text>in subsection

			 (b)(1)—</text>

										<subparagraph id="IDEBE326727F5B4912A48AC8A5662D06D7"><enum>(A)</enum><text>in the matter

			 preceding subparagraph (A)—</text>

											<clause id="IDD3F161E42CB0457F99E0F1E932D43D43"><enum>(i)</enum><text>by

			 striking ”the Navajo Community College“ and inserting ”Diné College“;

			 and</text>

											</clause><clause id="IDEB832DB976EF4CABBAD2B1DB77B1A39C"><enum>(ii)</enum><text>by

			 striking <quote>, for each fiscal year</quote> and all that follows through

			 <quote>for—</quote> and inserting <quote>such sums as are necessary for fiscal

			 years 2006 through 2011 to pay the cost of—</quote>;</text>

											</clause></subparagraph><subparagraph id="IDE5DDB0536C8F49D9A665876AD2A2C584"><enum>(B)</enum><text>in subparagraph

			 (A)—</text>

											<clause id="ID545228A1063147ACAAE78DD96BF14B0F"><enum>(i)</enum><text>by

			 striking <quote>college</quote> and inserting <quote>College</quote>;</text>

											</clause><clause id="ID3BB75A8BEFFF41EAB4CCE1C892E1BF85"><enum>(ii)</enum><text>in

			 clauses (i) and (iii), by striking the commas at the ends of the clauses and

			 inserting semicolons; and</text>

											</clause><clause id="ID91CBBDD945B7403B99694B5601E60AF9"><enum>(iii)</enum><text>in clause (ii),

			 by striking <quote>, and</quote> at the end and inserting <quote>;

			 and</quote>;</text>

											</clause></subparagraph><subparagraph id="IDAD07C0FED53F4978BFF4A71C8C354397"><enum>(C)</enum><text>in subparagraph

			 (B), by striking the comma at the end and inserting a semicolon;</text>

										</subparagraph><subparagraph id="IDA4ECB94120AF4DEBBBAC77BEE684D514"><enum>(D)</enum><text>in subparagraph

			 (C), by striking <quote>, and</quote> at the end and inserting a

			 semicolon;</text>

										</subparagraph><subparagraph id="ID8770FBCC5D9B4D03B6912DBB7F462D10"><enum>(E)</enum><text>in subparagraph

			 (D), by striking the period at the end and inserting <quote>; and</quote>;

			 and</text>

										</subparagraph><subparagraph id="IDAC36676254FF4DA39DC2A4FFB1567ADB"><enum>(F)</enum><text>by adding at the

			 end the following:</text>

											<quoted-block id="ID503A71B657B44DCB91C5E93AF41945AB" style="OLC">

												<subparagraph id="IDA1D614FFCDEF462A9D0CD3A2BE063E62"><enum>(E)</enum><text>improving and

				expanding the College, including by providing, for the Navajo people and others

				in the community of the College—</text>

													<clause id="ID55FF2D43D75B4E47BAADFFE37EE714D0"><enum>(i)</enum><text>higher education

				programs;</text>

													</clause><clause id="ID312C6F93F7974CD39862ED50C42C107E"><enum>(ii)</enum><text>vocational and

				technical education;</text>

													</clause><clause id="IDA4E4FF8DD64643F49ABC9D42515199AB"><enum>(iii)</enum><text>activities

				relating to the preservation and protection of the Navajo language, philosophy,

				and culture;</text>

													</clause><clause id="IDB476019D1423466F98B31DD74147B08B"><enum>(iv)</enum><text>employment and

				training opportunities;</text>

													</clause><clause id="ID4862BF92BAC54FA3B66CB5A23F998DBB"><enum>(v)</enum><text>economic

				development and community outreach; and</text>

													</clause><clause id="IDE5A4EDAFB8F14B459D8DBA5487417277"><enum>(vi)</enum><text>a safe learning,

				working, and living environment.</text>

													</clause></subparagraph><after-quoted-block>;

				and</after-quoted-block></quoted-block>

										</subparagraph></paragraph><paragraph id="ID5208EB3F856548BDA54CD24B4F80CAFD"><enum>(3)</enum><text>in subsection

			 (c), by striking ”the Navajo Community College“ and inserting ”Diné

			 College“.</text>

									</paragraph></subsection><subsection id="IDE062E01498C1417AAF29AB771BA078E8"><enum>(e)</enum><header>Effect on Other

			 Laws</header><text>Section 6 of the Navajo Community College Act (25 U.S.C.

			 640c–2) is amended—</text>

									<paragraph id="ID1964790EBA164BDE937899A3B33D297D"><enum>(1)</enum><text>by striking ”the

			 Navajo Community College“ each place it appears and inserting ”Diné College“;

			 and</text>

									</paragraph><paragraph id="IDC1A44D70BFAA43E59BE2034EA9DD3CF4"><enum>(2)</enum><text>in subsection

			 (b), by striking <quote>college</quote> and inserting

			 <quote>College</quote>.</text>

									</paragraph></subsection><subsection id="ID6D54A5D5A7624B3FB8F70D675E66F80B"><enum>(f)</enum><header>Payments;

			 Interest</header><text>Section 7 of the Navajo Community College Act (25 U.S.C.

			 640c–3) is amended by striking ”the Navajo Community College“ each place it

			 appears and inserting ”Diné College“.</text>

								</subsection></section></part></subchapter></chapter></subtitle><subtitle id="IDAF176D171D6743568A9F8709A1CA9BDC"><enum>D</enum><header>Hurricane

			 Relief</header>

				<section id="ID0634B1883FAF4FEEAB8B2A00041CB014"><enum>7947.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text>

					<paragraph id="IDA3ED4BDC3F424CBE93974920F558DEB2"><enum>(1)</enum><text>Hurricane Katrina

			 has had a devastating and unprecedented impact on students who attended schools

			 in the disaster areas.</text>

					</paragraph><paragraph id="ID1DF8D7EA643C469C84891EEE62B8A802"><enum>(2)</enum><text>Due to the

			 devastating effects of Hurricane Katrina, a significant number of students have

			 enrolled in schools outside of the area in which they resided on August 22,

			 2005, including a significant number of students who enrolled in non-public

			 schools because their parents chose to enroll them in such schools.</text>

					</paragraph><paragraph id="ID69619D4EFD324C1297C3BA9D693C09C7"><enum>(3)</enum><text>372,000 students

			 were displaced by Hurricane Katrina. Approximately 700 schools have been

			 damaged or destroyed. Nine States each have more than 1,000 of such displaced

			 students enrolled in their schools. In Texas alone, over 45,000 displaced

			 students have enrolled in schools.</text>

					</paragraph><paragraph id="IDE6C31897CB4B4D299567FA8F6D0ABCE9"><enum>(4)</enum><text>In response to

			 these extraordinary conditions, this subtitle creates a one-time only emergency

			 grant for the 2005–2006 school year tailored to the needs and particular

			 circumstances of students displaced by Hurricane Katrina.</text>

					</paragraph></section><section id="ID508362DA72BE407B829873E03F59E0C3"><enum>7948.</enum><header>Immediate aid

			 to restart school operations</header>

					<subsection id="ID7D9FBD49DFCA4BFDBDE0B6B3C08EA9DB"><enum>(a)</enum><header>Purpose</header><text>It

			 is the purpose of this section—</text>

						<paragraph id="ID6C5499C21C7144B8864FE6D36040D386"><enum>(1)</enum><text>to provide

			 immediate and direct assistance to local educational agencies in Louisiana,

			 Mississippi, and Alabama that serve an area in which a major disaster has been

			 declared in accordance with section 401 of the Robert T. Stafford Disaster

			 Relief and Emergency Assistance Act (42 U.S.C. 5170), related to Hurricane

			 Katrina;</text>

						</paragraph><paragraph id="ID1D08FD2C80034FBFAEBD316AF6811F5D"><enum>(2)</enum><text>to assist school

			 district administrators and personnel of such agencies who are working to

			 restart operations in elementary schools and secondary schools served by such

			 agencies; and</text>

						</paragraph><paragraph id="IDB6C6E8F4D1194ED0B95B2DB0ED72075B"><enum>(3)</enum><text>to facilitate the

			 re-opening of elementary schools and secondary schools served by such agencies

			 and the re-enrollment of students in such schools as soon as possible.</text>

						</paragraph></subsection><subsection id="ID1D18E73727D1493F90AFE8D465743028"><enum>(b)</enum><header>Payments and

			 Grants Authorized</header><text>From amounts appropriated to carry out this

			 subtitle, the Secretary of Education is authorized to make payments, not later

			 than November 30, 2005, to State educational agencies (as defined in section

			 9101 of the <act-name parsable-cite="ESEA">Elementary and Secondary Education

			 Act of 1965</act-name> (20 U.S.C. 7801 et seq.)) in Louisiana, Mississippi, and

			 Alabama to enable such agencies to award grants to local educational agencies

			 serving an area in which a major disaster has been declared in accordance with

			 section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance

			 Act (42 U.S.C. 5170), related to Hurricane Katrina.</text>

					</subsection><subsection id="ID0E095AC768404EEBAC5470049C11A8B7"><enum>(c)</enum><header>Eligibility and

			 Consideration</header><text>In determining whether to award a grant under this

			 section, or the amount of the grant, the State educational agency shall

			 consider the following:</text>

						<paragraph id="ID27DFF7B36C9E4507B6D9C38274FD2C72"><enum>(1)</enum><text>The number of

			 school-aged children served by the local educational agency in the academic

			 year preceding the academic year for which the grant is awarded.</text>

						</paragraph><paragraph id="ID8243651B3A474B83847B472332217751"><enum>(2)</enum><text>The severity of

			 the impact of Hurricane Katrina on the local educational agency and the extent

			 of the needs in each local educational agency in Louisiana, Mississippi, and

			 Alabama that is in an area in which a major disaster has been declared in

			 accordance with section 401 of the Robert T. Stafford Disaster Relief and

			 Emergency Assistance Act (42 U.S.C. 5170), related to Hurricane Katrina.</text>

						</paragraph></subsection><subsection id="ID77E18C38D32C4A5EB8C6826C15223A4C"><enum>(d)</enum><header>Applications</header><text>Each

			 local educational agency desiring a grant under this section shall submit an

			 application to the State educational agency at such time, in such manner, and

			 accompanied by such information as the State educational agency may reasonably

			 require to ensure expedited and timely payment to the local educational

			 agency.</text>

					</subsection><subsection id="IDF38F84F164284F659DA04C229037666B"><enum>(e)</enum><header>Uses of

			 Funds</header>

						<paragraph id="IDB42497BF64D54A11AC28FA73290CA8A5"><enum>(1)</enum><header>In

			 general</header><text>A local educational agency receiving a grant under this

			 section shall use the grant funds for—</text>

							<subparagraph id="ID6A71E3EF90FF44F4AF9FFB8BCA0D97E7"><enum>(A)</enum><text>recovery of

			 student and personnel data, and other electronic information;</text>

							</subparagraph><subparagraph id="ID8D54EE65F040456D84C261B33CCD5336"><enum>(B)</enum><text>replacement of

			 school district information systems, including hardware and software;</text>

							</subparagraph><subparagraph id="IDDCC9D2BD3C994E0F846A61585070A6BA"><enum>(C)</enum><text>financial

			 operations;</text>

							</subparagraph><subparagraph id="ID06179F6CBA3B450AB5BD27BF87E76E80"><enum>(D)</enum><text>reasonable

			 transportation costs;</text>

							</subparagraph><subparagraph id="ID4B747582BB38461F87F34601929FC29D"><enum>(E)</enum><text>rental of mobile

			 educational units and leasing of neutral sites or spaces;</text>

							</subparagraph><subparagraph id="IDF79DF81171664350A7ED58E5EE791114"><enum>(F)</enum><text>initial

			 replacement of instructional materials and equipment, including

			 textbooks;</text>

							</subparagraph><subparagraph id="ID5C858A143C4341B4A90A734123B31B20"><enum>(G)</enum><text>redeveloping

			 instructional plans, including curriculum development;</text>

							</subparagraph><subparagraph id="IDAED262920A434610B39A920703206165"><enum>(H)</enum><text>initiating and

			 maintaining education and support services; and</text>

							</subparagraph><subparagraph id="ID4674D66855884AF4AC0F25BAC21CAC0D"><enum>(I)</enum><text>such other

			 activities related to the purpose of this section that are approved by the

			 Secretary.</text>

							</subparagraph></paragraph><paragraph id="IDC8D95EFF7E8244E782F5FF9374CE7280"><enum>(2)</enum><header>Use with other

			 available funds</header><text>A local educational agency receiving a grant

			 under this section may use the grant funds in coordination with other Federal,

			 State, or local funds available for the activities described in paragraph

			 (1).</text>

						</paragraph><paragraph id="IDF3EBA891702A4C9BA12F506F3DDE8A9F"><enum>(3)</enum><header>Prohibitions</header><text>Grant

			 funds received under this section shall not be used for any of the

			 following:</text>

							<subparagraph id="ID2A5FED41D9D6462BA5D64FF04AB4469B"><enum>(A)</enum><text>Construction or

			 major renovation of schools.</text>

							</subparagraph><subparagraph id="ID300B2BE8BB8F4BC59055ED1C9FD8762F"><enum>(B)</enum><text>Payments to

			 school administrators or teachers who are not actively engaged in restarting or

			 re-opening schools.</text>

							</subparagraph></paragraph></subsection><subsection id="ID305782A96F474BB88CA5110F99626C7A"><enum>(f)</enum><header>Supplement Not

			 Supplant</header>

						<paragraph id="ID7528480BBCC04728941AD41395777FFD"><enum>(1)</enum><header>In

			 general</header><text>Except as provided in paragraph (2), funds made available

			 under this section shall be used to supplement, not supplant, any funds made

			 available through the Federal Emergency Management Agency or through a

			 State.</text>

						</paragraph><paragraph id="ID7717372F5E504403B493F8BE21003125"><enum>(2)</enum><header>Exception</header><text>Paragraph

			 (1) shall not prohibit the provision of Federal assistance under this section

			 to an eligible educational agency that is or may be entitled to receive, from

			 another source, benefits for the same purposes as under this section if—</text>

							<subparagraph id="ID7ECDE952B2154634967ECD5FDD5F08B1"><enum>(A)</enum><text>such agency has

			 not received such other benefits by the time of application for Federal

			 assistance under this section; and</text>

							</subparagraph><subparagraph id="IDAE481E89142441DAA271F0471D02CC98"><enum>(B)</enum><text>such agency

			 agrees to repay all duplicative Federal assistance received to carry out the

			 purposes of this section.</text>

							</subparagraph></paragraph></subsection></section><section id="ID759E89A2B085484CA960D44D8EA9C6C6"><enum>7949.</enum><header>Hold harmless

			 for local educational agencies serving major disaster areas</header><text display-inline="no-display-inline">In the case of a local educational agency

			 that serves an area in which the President has declared that a major disaster

			 exists in accordance with section 401 of the Robert T. Stafford Disaster Relief

			 and Emergency Assistance Act (42 U.S.C. 5170), related to Hurricane Katrina,

			 the amount made available for such local educational agency under each of

			 sections 1124, 1124A, 1125, and 1125A of the <act-name parsable-cite="ESEA">Elementary and Secondary Education Act of 1965</act-name>

			 (20 U.S.C. 6333, 6334, 6335, and 6337) for fiscal year 2006 shall be not less

			 than the amount made available for such local educational agency under each of

			 such sections for fiscal year 2005.</text>

				</section><section id="IDC4CEFE1B606C4A9C88EDF2E7E5EED1D5"><enum>7950.</enum><header>Teacher and

			 paraprofessional reciprocity; delay</header>

					<subsection id="ID901EAD70B40C41F2AAF489EEAA40695B"><enum>(a)</enum><header>Teacher and

			 Paraprofessional Reciprocity</header>

						<paragraph id="ID6E67B3A879C0488DBF3DFA8108EB3F1B"><enum>(1)</enum><header>Teachers</header>

							<subparagraph id="ID2E94A232F1F94494B9AAF33F013A57E7"><enum>(A)</enum><header>Affected

			 teacher</header><text>In this subsection, the term <term>affected

			 teacher</term> means a teacher who is displaced due to Hurricane Katrina and

			 relocates to a State that is different from the State in which such teacher

			 resided on August 22, 2005.</text>

							</subparagraph><subparagraph id="ID70DCB3447DBA4B288C140A897E2E3E50"><enum>(B)</enum><header>In

			 general</header><text>A local educational agency may consider an affected

			 teacher hired by such agency who is not highly qualified in the State in which

			 such agency is located to be highly qualified, for purposes of section 1119 of

			 the <act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

			 1965</act-name> (20 U.S.C. 6319) and section 612(a)(14) of the Individuals with

			 Disabilities Education Act (20 U.S.C. 1412(a)(14)), for a period not to exceed

			 1 year, if such teacher was highly qualified, consistent with section 9101(23)

			 of the <act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

			 1965</act-name> (20 U.S.C. 7801(23)) and section 602(10) of the Individuals

			 with Disabilities Education Act (20 U.S.C. 1401(10)), on or before August 22,

			 2005, in the State in which such teacher resided on August 22, 2005.</text>

							</subparagraph></paragraph><paragraph id="IDB7A18FEFF7904BE798AC67C4A8267528"><enum>(2)</enum><header>Paraprofessional</header>

							<subparagraph id="ID69CA9D7CD2924ED49134EBA68EBA26E2"><enum>(A)</enum><header>Affected

			 paraprofessional</header><text>In this subsection, the term <term>affected

			 paraprofessional</term> means a paraprofessional who is displaced due to

			 Hurricane Katrina and relocates to a State that is different from the State in

			 which such paraprofessional resided on August 22, 2005.</text>

							</subparagraph><subparagraph id="IDCC98D49911F54B60A907024CA9C9FB47"><enum>(B)</enum><header>In

			 general</header><text>A local educational agency may consider an affected

			 paraprofessional hired by such agency who does not satisfy the requirements of

			 section 1119(c) of the <act-name parsable-cite="ESEA">Elementary and Secondary

			 Education Act of 1965</act-name> (20 U.S.C. 6319(c)) in the State in which such

			 agency is located to satisfy such requirements, for purposes of such section,

			 for a period not to exceed 1 year, if such paraprofessional satisfied such

			 requirements on or before August 22, 2005, in the State in which such

			 paraprofessional resided on August 22, 2005.</text>

							</subparagraph></paragraph></subsection><subsection id="ID24D85BA2FAB34DA8B845F2D523AA2AF8"><enum>(b)</enum><header>Delay</header><text>The

			 Secretary of Education may delay, for a period not to exceed 1 year,

			 applicability of the requirements of paragraphs (2) and (3) of section 1119(a)

			 of the <act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

			 1965</act-name> (20 U.S.C. 6319(a)(2) and (3)) and section 612(a)(14)(C) of the

			 Individuals with Disabilities Education Act (20 U.S.C. 1412(a)(14)(C)) with

			 respect to the States of Alabama, Louisiana, and Mississippi (and local

			 educational agencies within the jurisdiction of such States), if any such State

			 or local educational agency demonstrates that a failure to comply with such

			 requirements is due to exceptional or uncontrollable circumstances, such as a

			 natural disaster or a precipitous and unforeseen decline in the financial

			 resources of local educational agencies within the State.</text>

					</subsection></section><section id="ID0D4AD8B37FFD4AEFA7FC328018D8D039"><enum>7951.</enum><header>Assistance

			 for homeless youth</header>

					<subsection id="ID77CBFC8494364D75A9CA24AA993B1443"><enum>(a)</enum><header>In

			 General</header><text>The Secretary of Education shall provide assistance to

			 local educational agencies serving homeless children and youths displaced by

			 Hurricane Katrina, consistent with section 723 of the McKinney-Vento Homeless

			 Assistance Act (42 U.S.C. 11433), including identification, enrollment

			 assistance, assessment and school placement assistance, transportation,

			 coordination of school services, supplies, referrals for health, mental health,

			 and other needs.</text>

					</subsection><subsection id="ID54B28165A19449418F52394FF8A87220"><enum>(b)</enum><header>Exception and

			 Distribution of Funds</header>

						<paragraph id="ID78C790DEA9E8462381035F3CE1B26FFD"><enum>(1)</enum><header>Exception</header><text>For

			 purposes of providing assistance under subsection (a), subsections (c) and

			 (e)(1) of section 722 and subsections (b) and (c) of section 723 of the

			 McKinney-Vento Homeless Assistance Act (42 U.S.C. 11432(c) and (e)(1), 11433(b)

			 and (c)) shall not apply.</text>

						</paragraph><paragraph id="ID475B9D746A164E4BA518639FC8CD99F7"><enum>(2)</enum><header>Disbursement</header><text>The

			 Secretary of Education shall disburse funding provided under subsection (a) to

			 State educational agencies based on demonstrated need, as determined by the

			 Secretary, and such State educational agencies shall distribute funds, that are

			 appropriated under section 7958 and available to carry out this section, to

			 local educational agencies based on demonstrated need, for the purposes of

			 carrying out section 723 of the McKinney-Vento Homeless Assistance Act (42

			 U.S.C. 11433).</text>

						</paragraph></subsection></section><section id="ID05DA93F892A54C99A1B0E173563A6AFA"><enum>7952.</enum><header>Temporary

			 emergency impact aid for displaced students</header>

					<subsection id="ID00439F7DDC874326A80DEEAFC1CB4C80"><enum>(a)</enum><header>Temporary

			 Emergency Impact Aid Authorized</header>

						<paragraph id="ID2A863C28EB5F43CE9CBD599C492A20DE"><enum>(1)</enum><header>Aid to state

			 educational agencies</header><text>From amounts appropriated under this

			 subtitle, the Secretary of Education shall provide emergency impact aid to

			 State educational agencies to enable the State educational agencies to make

			 emergency impact aid payments to eligible local educational agencies and

			 eligible BIA-funded schools to enable—</text>

							<subparagraph id="ID153792661F8A4AFEB27CEE462A7E3A21"><enum>(A)</enum><text>such eligible

			 local educational agencies and schools to provide for the instruction of

			 displaced students served by such agencies and schools; and</text>

							</subparagraph><subparagraph id="ID650683E1116B46949C043F35A140AB0E"><enum>(B)</enum><text>such eligible

			 local educational agencies to make immediate impact aid payments to accounts

			 established on behalf of displaced students (referred to in this section as

			 <quote>accounts</quote>) who are attending eligible non-public schools located

			 in the areas served by the eligible local educational agencies.</text>

							</subparagraph></paragraph><paragraph id="ID5DF090B00AE64A0896C6875FD5F1DBEB"><enum>(2)</enum><header>Aid to local

			 educational agencies and bia-funded schools</header><text>A State educational

			 agency shall make emergency impact aid payments to eligible local educational

			 agencies and eligible BIA-funded schools in accordance with subsection

			 (d).</text>

						</paragraph><paragraph id="ID58252AEEA26B45E391B99E8B06B57935"><enum>(3)</enum><header>State

			 educational agencies in certain states</header><text>In the case of the States

			 of Louisiana and Mississippi, the State educational agency shall carry out the

			 activities of eligible local educational agencies that are unable to carry out

			 this section, including eligible local educational agencies in such States for

			 which the State exercises the authorities normally exercised by such local

			 educational agencies.</text>

						</paragraph></subsection><subsection id="ID6E21085D882E4EA1875DA84505326F52"><enum>(b)</enum><header>Definitions</header><text>In

			 this section:</text>

						<paragraph id="ID7A37F046A8604DB490D43CF14905D632"><enum>(1)</enum><header>Displaced

			 student</header><text>The term <term>displaced student</term> means a student

			 who enrolled in a school (other than the school that the student was enrolled

			 in, or was eligible to be enrolled in, on August 22, 2005) because such student

			 resides or resided on August 22, 2005, in an area for which a major disaster

			 has been declared in accordance with section 401 of the Robert T. Stafford

			 Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170), related to

			 Hurricane Katrina.</text>

						</paragraph><paragraph id="ID5361EE9723464C8DBA2D1AE793790F3C"><enum>(2)</enum><header>Eligible local

			 educational agencies</header><text>The term <term>eligible local educational

			 agency</term> means a local educational agency that serves—</text>

							<subparagraph id="IDE606B50A3ED64B76AEA71520A56289B5"><enum>(A)</enum><text>an elementary

			 school or secondary school (including a charter school) in which there is

			 enrolled a displaced student; or</text>

							</subparagraph><subparagraph id="ID9460648DC0E64625AF922AF39CCB4BFD"><enum>(B)</enum><text>an area in which

			 there is located an eligible non-public school.</text>

							</subparagraph></paragraph><paragraph id="IDE3097CFC93D040B29873431F8F57847A"><enum>(3)</enum><header>Eligible

			 non-public school</header><text>The term <term>eligible non-public

			 school</term> means a non-public school that—</text>

							<subparagraph id="ID23F8FB68FF294AC89912286D98990DA0"><enum>(A)</enum><text>is accredited or

			 licensed or otherwise operates in accordance with State law;</text>

							</subparagraph><subparagraph id="IDB2EDED09E2F6494189456ED4C900837E"><enum>(B)</enum><text>was in existence

			 on August 22, 2005; and</text>

							</subparagraph><subparagraph id="ID17158575C6B24718BA994170EC86478E"><enum>(C)</enum><text>serves a

			 displaced student on behalf of whom an application for an account has been made

			 pursuant to subsection (c)(2)(A)(ii).</text>

							</subparagraph></paragraph><paragraph id="IDBA8B2C9DAF1246989FB61B68F9CD23D2"><enum>(4)</enum><header>Eligible

			 bia-funded school</header><text>In this section, the term <term>eligible

			 BIA-funded school</term> means a school funded by the Bureau of Indian Affairs

			 in which there is enrolled a displaced student.</text>

						</paragraph></subsection><subsection id="IDAC66EE4CD31E4B25958DB866985CAD51"><enum>(c)</enum><header>Application</header>

						<paragraph id="ID92605AA7DEEF48358319504D43F6C36E"><enum>(1)</enum><header>State

			 educational agency</header><text>A State educational agency that desires to

			 receive emergency impact aid under this section shall submit an application to

			 the Secretary of Education at such time, in such manner, and accompanied by

			 such information as the Secretary of Education may reasonably require,

			 including—</text>

							<subparagraph id="ID8861923E6C1046B681B09802F75ACD00"><enum>(A)</enum><text>information on

			 the total displaced student child count of the State provided by eligible local

			 educational agencies in the State and eligible BIA-funded schools in the State

			 under paragraph (2);</text>

							</subparagraph><subparagraph id="ID841246DC225B4D568C7B1E616219639D"><enum>(B)</enum><text>a description of

			 the process for the parent or guardian of a displaced student enrolled in a

			 non-public school to indicate to the eligible local educational agency serving

			 the area in which such school is located that the student is enrolled in such

			 school;</text>

							</subparagraph><subparagraph id="IDA6E67449EF5C42448596F32F016A075A"><enum>(C)</enum><text>a description of

			 the procedure to be used by an eligible local educational agency in such State

			 to provide payments to accounts;</text>

							</subparagraph><subparagraph id="ID075566B5A11E453BA3E4D63ED7E73119"><enum>(D)</enum><text>a description of

			 the process to be used by an eligible local educational agency in such State to

			 obtain—</text>

								<clause id="IDBEE4E24256F842948F959E534856A2DD"><enum>(i)</enum><text>attestations of

			 attendance of eligible displaced students from eligible non-public schools, in

			 order for the local educational agency to provide payments to accounts on

			 behalf of eligible displaced students; and</text>

								</clause><clause id="ID47F007343899420E923756FA7EA6A551"><enum>(ii)</enum><text>attestations

			 from eligible non-public schools that accounts are used only for the purposes

			 described in subsection (e)(2)(A); and</text>

								</clause></subparagraph><subparagraph id="ID346DB81269584B0ABB6B203C41DC75D5"><enum>(E)</enum><text>the criteria,

			 including family income, used to determine the eligibility for and the amount

			 of assistance under this section provided on behalf of a displaced student

			 attending an eligible non-public school.</text>

							</subparagraph></paragraph><paragraph id="IDC32C3D0DABFE4668BCD84C221D628020"><enum>(2)</enum><header>Local

			 educational agencies and bia-funded schools</header><text>An eligible local

			 educational agency or eligible BIA-funded school that desires an emergency

			 impact aid payment under this section shall submit an application to the State

			 educational agency at such time, in such manner, and accompanied by such

			 information as the State educational agency may reasonably require, including

			 documentation submitted quarterly for the 2005–2006 school year that indicates

			 the following:</text>

							<subparagraph id="ID04B462DDEBC14744A557F9C04E1F65B2"><enum>(A)</enum><text>In the case of an

			 eligible local educational agency—</text>

								<clause id="ID2563CE0B78564C42B3762832DEEBC66A"><enum>(i)</enum><text>the

			 number of displaced students enrolled in the elementary schools and secondary

			 schools (including charter schools and including the number of displaced

			 students who are served under part B of the Individuals with Disabilities

			 Education Act) served by such agency for such quarter; and</text>

								</clause><clause id="ID67FB2EFD1AF84F75BD24589FB2F7353F"><enum>(ii)</enum><text>the number of

			 displaced students for whom the eligible local educational agency expects to

			 provide payments to accounts under subsection (e)(2) (including the number of

			 displaced students who are served under part B of the Individuals with

			 Disabilities Education Act) for such quarter who meet the following

			 criteria:</text>

									<subclause id="ID8E3914863EA942ED9C242C16A606BF32"><enum>(I)</enum><text>The displaced

			 student enrolled in an eligible non-public school prior to the date of

			 enactment of this Act.</text>

									</subclause><subclause id="ID719266EC746D4B4EBD5D2A03BCC0723D"><enum>(II)</enum><text>The parent or

			 guardian of the displaced student chose to enroll the student in the eligible

			 non-public school in which the student is enrolled.</text>

									</subclause><subclause id="ID6BDE245F82824A908A64D03677A9E850"><enum>(III)</enum><text>The parent or

			 guardian of the displaced student submitted an application requesting that the

			 agency make a payment to an account on behalf of the student.</text>

									</subclause><subclause id="ID0CBBF0E21DD24D7B93D13557543333F8"><enum>(IV)</enum><text>The displaced

			 student’s tuition and fees (and transportation expenses, if any) for the

			 2005–2006 school year is waived or reimbursed (by the eligible non-public

			 school) in an amount that is not less than the amount of emergency impact aid

			 payment provided on behalf of such student under this section.</text>

									</subclause></clause></subparagraph><subparagraph id="IDCEC7871414764829A415EF10974B7CCB"><enum>(B)</enum><text>In the case of an

			 eligible BIA-funded school, the number of displaced students, including the

			 number of displaced students who are served under part B of the Individuals

			 with Disabilities Education Act (20 U.S.C. 1411 et seq.), enrolled in such

			 school for such quarter.</text>

							</subparagraph></paragraph><paragraph id="ID1B027ADBC98045C7B1FD47CBA370A842"><enum>(3)</enum><header>Determination

			 of number of displaced students</header><text>In determining the number of

			 displaced students for a quarter under paragraph (2), an eligible local

			 educational agency or eligible BIA-funded school shall include in such number

			 the number of displaced students served during such quarter prior to the date

			 of enactment of this Act.</text>

						</paragraph></subsection><subsection id="ID23451A20252E41E287705F22F88694D9"><enum>(d)</enum><header>Amount of

			 Emergency Impact Aid</header>

						<paragraph id="IDE139F5B80F5F4D12A4A1E24BF4C0D3FE"><enum>(1)</enum><header>Aid to state

			 educational agencies</header>

							<subparagraph id="ID4A3EE1F5AB724923AF0814242CDEC566"><enum>(A)</enum><header>In

			 general</header><text>The amount of emergency impact aid received by a State

			 educational agency for the 2005–2006 school year shall equal the sum of—</text>

								<clause id="IDF248810F596643EA862DA4AFB200B2AD"><enum>(i)</enum><text>the

			 product of the number of displaced students (who are not served under part B of

			 the Individuals with Disabilities Education Act (20 U.S.C. 1411 et seq.)), as

			 determined by the eligible local educational agencies and eligible BIA-funded

			 schools in the State under subsection (c)(2), times $6,000; and</text>

								</clause><clause id="IDA4FE648FD427493B8027107FBC06CE72"><enum>(ii)</enum><text>the product of

			 the number of displaced students who are served under part B of the Individuals

			 with Disabilities Education Act, as determined by the eligible local

			 educational agencies and eligible BIA-funded schools in the State under

			 subsection (c)(2), times $7,500.</text>

								</clause></subparagraph><subparagraph id="IDFE1165E3396B4470AA18261F1D816319"><enum>(B)</enum><header>Insufficient

			 funds</header><text>If the amount available under this section to provide

			 emergency impact aid under this subsection is insufficient to pay the full

			 amount that a State educational agency is eligible to receive under this

			 section, the Secretary of Education shall ratably reduce the amount of such

			 emergency impact aid.</text>

							</subparagraph></paragraph><paragraph id="IDB11891AAD1434D7ABC8EC85F3DDF5698"><enum>(2)</enum><header>Aid to eligible

			 local educational agencies and eligible bia-funded schools</header>

							<subparagraph id="ID020F401772B3416A9EDDA1A1AD11E15B"><enum>(A)</enum><header>Quarterly

			 installments</header>

								<clause id="ID420517E6CE314B888F16C32906A72D42"><enum>(i)</enum><header>In

			 general</header><text>A State educational agency shall provide emergency impact

			 aid payments under this section on a quarterly basis for the 2005–2006 school

			 year by such dates as determined by the Secretary of Education. Such quarterly

			 installment payments shall be based on the number of displaced students

			 reported under subsection (c)(2) and in the amount determined under clause

			 (ii).</text>

								</clause><clause id="IDECD24B905D5E497887EFE47EC480D4D6"><enum>(ii)</enum><header>Payment

			 amount</header><text>Each quarterly installment payment under clause (i) shall

			 equal 25 percent of the sum of—</text>

									<subclause id="ID082FCCEBA5D54727A39E1218F38EEFE1"><enum>(I)</enum><text>the number of

			 displaced students (who are not served under part B of the Individuals with

			 Disabilities Education Act (20 U.S.C. 1411 et seq.)) reported by the eligible

			 local educational agency or eligible BIA-funded school for such quarter (as

			 determined under subsection (c)(2)) times $6,000; and</text>

									</subclause><subclause id="ID2A9666D023C340C1BBD269EF41F4C5D2"><enum>(II)</enum><text>the number of

			 displaced students who are served under part B of the Individuals with

			 Disabilities Education Act (20 U.S.C. 1411 et seq.) reported by the eligible

			 local educational agency or eligible BIA-funded school for such quarter (as

			 determined under subsection (c)(2)) times $7,500.</text>

									</subclause></clause><clause id="ID55DACEF9405F4E29B684A9F55079F0F6"><enum>(iii)</enum><header>Timeline</header><text>The

			 Secretary of Education shall establish a timeline for quarterly reporting on

			 the number of displaced students in order to make the appropriate disbursements

			 in a timely manner.</text>

								</clause><clause id="ID120A102E11A840A199EA27F7DA8545EC"><enum>(iv)</enum><header>Insufficient

			 funds</header><text>If, for any quarter, the amount available under this

			 section to make payments under this subsection is insufficient to pay the full

			 amount that an eligible local educational agency or eligible BIA-funded school

			 is eligible to receive under this section, the State educational agency shall

			 ratably reduce the amount of such payments.</text>

								</clause></subparagraph><subparagraph id="ID163D29EDD8F146138F6769172E6522A4"><enum>(B)</enum><header>Maximum payment

			 to account</header><text>In providing quarterly payments to an account for the

			 2005–2006 school year on behalf of a displaced student for each quarter that

			 such student is enrolled in a non-public school in the area served by the

			 agency under subsection (e)(2), an eligible local educational agency may

			 provide not more than 4 quarterly payments to such account, and the aggregate

			 amount of such payments shall not exceed the lesser of—</text>

								<clause id="ID72EC6FDBA0DC42A687FFC4567BE1DA39"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="ID91497DB513374B26A78F47E2EC2A16D4"><enum>(I)</enum><text>in the case of a

			 displaced student who is not served under part B of the Individuals with

			 Disabilities Education Act (20 U.S.C. 1411 et seq.), $6,000; or</text>

									</subclause><subclause id="IDD956EDA47CF7481ABA0567443E0F1AC7" indent="up1"><enum>(II)</enum><text>in the case of a displaced student who

			 is served under part B of the Individuals with Disabilities Education Act,

			 $7,500; or</text>

									</subclause></clause><clause id="ID22A4311971A840D8A6C7BCF3BA11186C"><enum>(ii)</enum><text>the cost of

			 tuition and fees (and transportation expenses, if any) at the non-public school

			 for the 2005–2006 school year.</text>

								</clause></subparagraph></paragraph></subsection><subsection id="IDC6F5B6EDECF34949BBD50C5E267D8E90"><enum>(e)</enum><header>Use of

			 Funds</header>

						<paragraph id="ID91379ACEA60B47AE9B386EE5F2BED1A7"><enum>(1)</enum><header>Displaced

			 students in public schools</header><text>An eligible local educational agency

			 or eligible BIA-funded school receiving emergency impact aid payments under

			 this section shall use the payments to provide instructional opportunities for

			 displaced students who enroll in elementary schools and secondary schools

			 (including charter schools) served by such agency or in such a school, and for

			 other expenses incurred as a result of the agency or school serving displaced

			 students, which uses may include—</text>

							<subparagraph id="ID59BD8C8272AD4356B9EE7302A859866E"><enum>(A)</enum><text>paying the

			 compensation of personnel, including teacher aides, in schools enrolling

			 displaced students;</text>

							</subparagraph><subparagraph id="IDBEAE1FFF2D7A4CB193BCB44912D75A53"><enum>(B)</enum><text>identifying and

			 acquiring curricular material, including the costs of providing additional

			 classroom supplies, and mobile educational units and leasing sites or

			 spaces;</text>

							</subparagraph><subparagraph id="ID9EAFACD3519647429DAF6CEABB986DED"><enum>(C)</enum><text>basic

			 instructional services for such students, including tutoring, mentoring, or

			 academic counseling;</text>

							</subparagraph><subparagraph id="ID632C213D30D7408891A90B62E7ED3901"><enum>(D)</enum><text>reasonable

			 transportation costs;</text>

							</subparagraph><subparagraph id="ID33B15AA155DE463B8BB242D5C3C91AFB"><enum>(E)</enum><text>health services

			 (including counseling and mental health services); and</text>

							</subparagraph><subparagraph id="ID57D166FFAABF4561B43998F54D18B979"><enum>(F)</enum><text>education and

			 support services.</text>

							</subparagraph></paragraph><paragraph id="ID397958B3364F4D5F90041562C97B6EEA"><enum>(2)</enum><header>Displaced

			 students in non-public schools</header>

							<subparagraph id="ID5F52DFAA37F44087B13C663CCE0DCCBC"><enum>(A)</enum><header>In

			 general</header><text>An eligible local educational agency that receives

			 emergency impact aid payments under this section and that serves an area in

			 which there is located an eligible non-public school shall, at the request of

			 the parent or guardian of a displaced student who meets the criteria described

			 in subsection (c)(2)(A)(ii) and who enrolled in a non-public school in an area

			 served by the agency, use such emergency impact aid payment to provide payment

			 on a quarterly basis (but not to exceed the total amount specified in

			 subsection (d)(2)(B) for the 2005–2006 school year) to an account on behalf of

			 such displaced student, which payment shall be used to assist in paying for any

			 of the following:</text>

								<clause id="IDE5FB4405FD1F41DBA897E0CE658058C9"><enum>(i)</enum><text>Paying the

			 compensation of personnel, including teacher aides, in the non-public school,

			 which funds shall not be used for religious instruction, proselytization, or

			 worship.</text>

								</clause><clause id="ID50D85B25734A433EA1A107159EBB77CF"><enum>(ii)</enum><text>Identifying and

			 acquiring curricular material, including the costs of providing additional

			 classroom supplies (which shall be secular, neutral, and shall not have a

			 religious component), and mobile educational units and leasing sites or spaces,

			 which shall not be used for religious instruction, proselytization, or

			 worship.</text>

								</clause><clause id="ID18FDBACD2FB545079C7C61DF52A86D11"><enum>(iii)</enum><text>Basic

			 instructional services, including tutoring, mentoring, or academic counseling,

			 which services shall be secular and neutral and shall not be used for religious

			 instruction, proselytization, or worship.</text>

								</clause><clause id="ID184AF575BBD24CDEB84959FBFE4CEB9D"><enum>(iv)</enum><text>Reasonable

			 transportation costs.</text>

								</clause><clause id="IDFDCD508D53A24C9AB28617A9A9F48116"><enum>(v)</enum><text>Health services

			 (including counseling and mental health services), which services shall be

			 secular and neutral and shall not be used for religious instruction,

			 proselytization, or worship.</text>

								</clause><clause id="IDBB5BFAF409F54D26B8840F2E49201B07"><enum>(vi)</enum><text>Education and

			 support services, which services shall be secular and neutral and shall not be

			 used for religious instruction, proselytization, or worship.</text>

								</clause></subparagraph><subparagraph id="ID676F4FF8BB00470DA7AB114532633649"><enum>(B)</enum><header>Verification of

			 enrollment</header><text>Before providing a quarterly payment to an account

			 under subparagraph (A), the eligible local educational agency shall verify with

			 the parent or guardian of a displaced student that such displaced student is

			 enrolled in the non-public school.</text>

							</subparagraph></paragraph><paragraph id="ID32B0C270CC834D2FAE021E1FB87CB8CD"><enum>(3)</enum><header>Provision of

			 special education and related services</header>

							<subparagraph id="IDA5C857FCBFA44509BFBD17FD868CE626"><enum>(A)</enum><header>In

			 general</header><text>In the case of a displaced student who is served under

			 part B of the Individuals with Disabilities Education Act (20 U.S.C. 1411 et

			 seq.), any payment made on behalf of such student to an eligible local

			 educational agency or any payment available in an account for such student,

			 shall be used to pay the cost of providing the student with special education

			 and related services consistent with the Individuals with Disabilities

			 Education Act (20 U.S.C. 1400 et seq.).</text>

							</subparagraph><subparagraph id="ID370D8F12DA294C049F94424A2D9BA958"><enum>(B)</enum><header>Special

			 rule</header>

								<clause id="ID66E33D94D22A4C10886ADB0FA9C74F21"><enum>(i)</enum><header>Retention</header><text>Notwithstanding

			 any other provision of this section, if an eligible local educational agency

			 provides services to a displaced student attending an eligible non-public

			 school under section 612(a)(10) of the Individuals with Disabilities Education

			 Act (20 U.S.C. 1412(a)(10)), the eligible local educational agency may retain a

			 portion of the assistance received under this section for such student to pay

			 the cost of providing such services.</text>

								</clause><clause id="ID77C75916A4C14772B0478D6863BBD984"><enum>(ii)</enum><header>Determination

			 of portion</header>

									<subclause id="ID023CBF4FAA3B40CF99772D2B2C7DA640"><enum>(I)</enum><header>Guidelines</header><text>Each

			 State shall issue guidelines that specify the portion of the assistance that an

			 eligible local educational agency in the State may retain under this

			 subparagraph. Each State shall apply such guidelines in a consistent manner

			 throughout the State.</text>

									</subclause><subclause id="ID6DCE3FA074CB4EAE916BDCD1A9739E82"><enum>(II)</enum><header>Determination

			 of portion</header><text>The portion specified in the guidelines shall be based

			 on customary costs of providing services under such section 612(a)(10) for the

			 local educational agency.</text>

									</subclause></clause></subparagraph><subparagraph id="IDD0A4D95A56E14608BDF2B1F08265C2AC"><enum>(C)</enum><header>Definitions</header><text>In

			 this paragraph:</text>

								<clause id="IDDE138C1A620340D1B75A7222B7DE3774"><enum>(i)</enum><header>Special

			 education; related services</header><text>The terms <term>special

			 education</term> and <term>related services</term> have the meaning given such

			 terms in section 602 of the Individuals with Disabilities Education Act (20

			 U.S.C. 1401).</text>

								</clause><clause id="ID604AE5D1852546F39030D53E09862458"><enum>(ii)</enum><header>Individualized

			 education program</header><text>The term <term>individualized education

			 program</term> has the meaning given the term in section 614(d)(2) of the

			 Individuals with Disabilities Education Act (20 U.S.C. 1414(d)(2)).</text>

								</clause></subparagraph></paragraph></subsection><subsection id="ID370F0C0722A14DA08905B345FEF4D478"><enum>(f)</enum><header>Return of

			 Aid</header>

						<paragraph id="IDC1957258E7A14F5EAFCBE629FEA49A8B"><enum>(1)</enum><header>Eligible local

			 educational agency or eligible bia-funded school</header><text>An eligible

			 local educational agency or eligible BIA-funded school that receives an

			 emergency impact aid payment under this section shall return to the State

			 educational agency any payment provided to the eligible local educational

			 agency or school under this section that the eligible local educational agency

			 or school has not obligated by the end of the 2005–2006 school year in

			 accordance with this section.</text>

						</paragraph><paragraph id="ID9138016BDF264F0094745A4F0999CFEA"><enum>(2)</enum><header>State

			 educational agency</header><text>A State educational agency that receives

			 emergency impact aid under this section, shall return to the Secretary of

			 Education—</text>

							<subparagraph id="ID163C7D3F15254121B97987DCF89A9903"><enum>(A)</enum><text>any aid provided

			 to the agency under this section that the agency has not obligated by the end

			 of the 2005–2006 school year in accordance with this section; and</text>

							</subparagraph><subparagraph id="ID526D1D97AC5449BE926773895E7DFF51"><enum>(B)</enum><text>any payment funds

			 returned to the State educational agency under paragraph (1).</text>

							</subparagraph></paragraph></subsection><subsection id="ID6F94E58103E14C71B9806975C720F4B0"><enum>(g)</enum><header>Limitation on

			 Use of Aid and Payments</header><text>Aid and payments provided under this

			 section shall only be used for expenses incurred during the 2005–2006 school

			 year.</text>

					</subsection><subsection id="ID5A56F38F13924E1683D9D5C13AC169A7"><enum>(h)</enum><header>Administrative

			 Expenses</header><text>A State educational agency that receives emergency

			 impact aid under this section may use not more than 1 percent of such aid for

			 administrative expenses. An eligible local educational agency or eligible

			 BIA-funded school that receives emergency impact aid payments under this

			 section may use not more than 2 percent of such payments for administrative

			 expenses.</text>

					</subsection><subsection id="IDF6376908D7F94CB3BF627D5E191509EB"><enum>(i)</enum><header>Special Funding

			 Rule</header><text>In calculating funding under section 8003 of the

			 <act-name parsable-cite="ESEA">Elementary and Secondary Education Act of

			 1965</act-name> (20 U.S.C. 7703) for an eligible local educational agency that

			 receives an emergency impact aid payment under this section, the Secretary of

			 Education shall not count displaced students served by such agency for whom an

			 emergency impact aid payment is received under this section, nor shall such

			 students be counted for the purpose of calculating the total number of children

			 in average daily attendance at the schools served by such agency as provided in

			 section 8003(b)(3)(B)(i) of such Act (20 U.S.C. 7703(b)(3)(B)(i)).</text>

					</subsection><subsection id="ID825953FC20BE422881685C4F2BEEECBC"><enum>(j)</enum><header>Notice of

			 Option of Public School or Non-Public School Enrollment</header><text>Each

			 State receiving emergency impact aid under this section shall provide, to the

			 parent or guardian of each displaced student for whom a payment is made under

			 this section to an account who resides in such State, notification that such

			 parent or guardian has the option of enrolling such student in a public school

			 or a non-public school.</text>

					</subsection><subsection id="ID7ADC1FC6FCAE4E1DA3BD16583664F53F"><enum>(k)</enum><header>By-Pass</header><text>If

			 a State educational agency or eligible local educational agency is unable to

			 carry out this section, the Secretary of Education may make such arrangements

			 with the State as the Secretary determines appropriate to carry out this

			 section on behalf of displaced students attending an eligible non-public school

			 in the area served by such agency. For a State in which State law prohibits the

			 State from using Federal funds to directly provide services on behalf of

			 students attending non-public schools and provides that another entity shall

			 provide such services, the Secretary of Education shall make such arrangements

			 with that entity.</text>

					</subsection><subsection id="ID87B144A5775F47D9B7529B6F4C0A5697"><enum>(l)</enum><header>Nondiscrimination</header>

						<paragraph id="ID0D5C66F90A4749BBA96C642E3E07DC89"><enum>(1)</enum><header>In

			 general</header><text>A school that enrolls a displaced student under this

			 section shall not discriminate against students on the basis of race, color,

			 national origin, religion, disability, or sex.</text>

						</paragraph><paragraph id="IDE1FE1312AA554BF3819C6E3CC333742B"><enum>(2)</enum><header>Applicability

			 and single sex schools, classes, or activities</header>

							<subparagraph id="ID78C118330B304F66AC2BF909C4A0A12F"><enum>(A)</enum><header>In

			 general</header><text>To the extent consistent with title IX of the Education

			 Amendments of 1972 (20 U.S.C. 1681 et seq.), the prohibition of sex

			 discrimination in paragraph (1) shall not apply to a non-public school that is

			 controlled by a religious organization if the application of paragraph (1)

			 would not be consistent with the religious tenets of such organization.</text>

							</subparagraph><subparagraph id="ID467EDA3EE15C47FBB0E8AD876A64D5FD"><enum>(B)</enum><header>Single sex

			 schools, classes, or activities</header><text>Notwithstanding paragraph (1) and

			 to the extent consistent with title IX of the Education Amendments of 1972, a

			 parent or guardian may choose and a non-public school may offer a single sex

			 school, class, or activity.</text>

							</subparagraph><subparagraph id="IDEA54467E3C96483C98E4192BF72F5E12"><enum>(C)</enum><header>Enrollment</header><text>The

			 prohibition of religious discrimination in paragraph (1) shall not apply with

			 regard to enrollment for a non-public school that is controlled by a religious

			 organization, except in the case of the enrollment of displaced students

			 assisted under this section.</text>

							</subparagraph></paragraph><paragraph id="ID8C55F8A5E7A346238DE27067A0E5BBE4"><enum>(3)</enum><header>General

			 provision</header><text>Nothing in this section may be construed to alter or

			 modify the provisions of the Individuals with Disabilities Education Act (20

			 U.S.C. 1400 et seq.), title VI of the <act-name parsable-cite="CRA64">Civil

			 Rights Act of 1964</act-name> (42 U.S.C. 2000d et seq.), title IX of the

			 Education Amendments of 1972 (20 U.S.C. 1681 et seq.), and the

			 <act-name parsable-cite="REH">Rehabilitation Act of 1973</act-name> (29 U.S.C.

			 701 et seq.).</text>

						</paragraph><paragraph id="ID4470179D1EB943DBBE1C7CEA6D01C23C"><enum>(4)</enum><header>Opt-in</header><text>A

			 displaced student assisted under this section who is enrolled in a non-public

			 school shall not participate in religious worship or religious classes at such

			 school unless such student’s parent or guardian chooses to opt-in such student

			 for such religious worship or religious classes.</text>

						</paragraph><paragraph id="ID70A67F28B7914FF98E97E9CF5BD5818D"><enum>(5)</enum><header>Rule of

			 construction</header><text>The amount of any payment (or other form of support

			 provided on behalf of a displaced student) under this section shall not be

			 treated as income of a parent or guardian of the student for purposes of

			 Federal tax laws or for determining eligibility for any other Federal

			 program.</text>

						</paragraph></subsection><subsection id="ID85A045158F6741AD9F9311EB67D639CB"><enum>(m)</enum><header>Treatment of

			 State Aid</header><text>A State shall not take into consideration emergency

			 impact aid payments received under this section by a local educational agency

			 in the State in determining the eligibility of such local educational agency

			 for State aid, or the amount of State aid, with respect to free public

			 education of children.</text>

					</subsection></section><section id="ID24063BDD0C8C4C5F86E6358BA076CA8F"><enum>7953.</enum><header>Origination

			 fees for student loans</header>

					<subsection id="ID45280F8430F9447F80E0D2A6E2D1DD96"><enum>(a)</enum><header>Special

			 Allowances</header><text>Notwithstanding section 438(c)(2) of the

			 <act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (as

			 amended by this Act) (20 U.S.C. 1087–1(c)(2)), subparagraph (A) of section

			 438(c)(2) of such Act shall be applied by substituting <quote>2.0

			 percent</quote> for <quote>3.0 percent</quote> with respect to loans for which

			 the first disbursement of principal is made on or after July 1, 2007.</text>

					</subsection><subsection id="IDB0D745C566724B7682AF9009A92BDA6D"><enum>(b)</enum><header>Origination

			 Fees for Federal Direct Loans</header><text>Notwithstanding subsection (c) of

			 section 455 of the <act-name parsable-cite="HEA65">Higher Education Act of

			 1965</act-name> (as amended by this Act) (20 U.S.C. 1087e(c)), the second

			 sentence of such subsection shall be applied by substituting <quote>2.0

			 percent</quote> for <quote>2.5 percent</quote> with respect to loans for which

			 the first disbursement of principal is made on or after July 1, 2007.</text>

					</subsection><subsection id="ID4C96FAAE65AF42B6BD976B58F5D82C22"><enum>(c)</enum><header>Repeal of

			 Origination Fees</header>

						<paragraph id="ID20623EE905124A0F84FEF89D4E792E0A"><enum>(1)</enum><header>Amendments</header><text>Sections

			 438(c) and 455(c) of the <act-name parsable-cite="HEA65">Higher Education Act

			 of 1965</act-name> (20 U.S.C. 1087–1(c), 1087e(c)) are repealed.</text>

						</paragraph><paragraph id="IDD6F84A0FE2D64640ACBF83FC61E00C79"><enum>(2)</enum><header>Effective

			 date</header><text>The amendments made by paragraph (1) shall take effect on

			 July 1, 2011.</text>

						</paragraph></subsection><subsection id="IDB2DD6C443E8F4F27A4B8BFF5F35F0562"><enum>(d)</enum><header>Nonapplicability

			 of Sunset Provision</header><text>Section 7959 shall not apply to this section

			 or to the amendments made by this section.</text>

					</subsection></section><section id="ID8714D5999E06495C8445B3BF573C761A"><enum>7954.</enum><header>Authorization

			 and appropriation of funds</header><text display-inline="no-display-inline">There are authorized to be appropriated, and

			 there are appropriated, out of any money in the Treasury not otherwise

			 appropriated, $1,660,000,000 to carry out this subtitle, of which—</text>

					<paragraph id="IDE4813A894F8D4D1ABFDFF4BF6D48DA4D"><enum>(1)</enum><text>$450,000,000

			 shall be available to carry out section 7952;</text>

					</paragraph><paragraph id="ID85224E7A590846B9B48DC3A4A3072A35"><enum>(2)</enum><text>$10,000,000 shall

			 be available to carry out section 7955; and</text>

					</paragraph><paragraph id="IDCC2131FDEB16473881094AB59679F49C"><enum>(3)</enum><text>$1,200,000,000

			 shall be available to carry out section 7956.</text>

					</paragraph></section><section id="IDF63F3629BECB4AC591A7834026C3836D"><enum>7955.</enum><header>Sunset

			 provision</header><text display-inline="no-display-inline">Except as otherwise

			 provided in this subtitle, the provisions of this subtitle shall be effective

			 for the period beginning on the date of enactment of this Act and ending on

			 August 1, 2006.</text>

				</section></subtitle></title><title id="ID1516FB8E7F9A45B6B038E095BDEBC001"><enum>VIII</enum><header>COMMITTEE ON

			 THE JUDICIARY</header>

			<section id="ID7971EDE7ECCC4C4AA5477530EC402B0B"><enum>8001.</enum><header>Recapture of

			 unused visa numbers</header>

				<subsection id="ID20CFE2F38F1048D8B64C29D0A23D0662"><enum>(a)</enum><header>Recapture of

			 Unused Employment-Based Immigrant Visas</header><text>Section 201(d) of the

			 <act-name parsable-cite="INA">Immigration and Nationality Act</act-name> (8

			 U.S.C. 1151(d)) is amended—</text>

					<paragraph id="ID2D277D940F154AE39B0832063CDB1F44"><enum>(1)</enum><text>in paragraph

			 (2)(C)—</text>

						<subparagraph id="IDCCB7B2E54A974A0AA74C2F5CBA889C00"><enum>(A)</enum><text>by striking “is

			 the difference” and inserting “is the sum of—</text>

							<quoted-block id="ID79CCBEEB6A7D4322A3B1FCD1F66ED4CC" style="OLC">

								<clause id="ID59CCF9F4C1614B6C9641F76892081C34"><enum>(i)</enum><text>the

				difference</text>

								</clause><after-quoted-block>;

				and</after-quoted-block></quoted-block>

						</subparagraph><subparagraph id="ID29D50CD0E0E545C0AF7F2E209256656F"><enum>(B)</enum><text>by striking the

			 period at the end and inserting the following: “; and</text>

							<quoted-block id="ID55C1E7DD306B487BA1C69FF4CF6E4298" style="OLC">

								<clause id="IDDAEF060560904A64BF3C54398A230735"><enum>(ii)</enum><text>the lesser

				of—</text>

									<subclause id="ID886CB5E3293D42C898E18F5EA671B9B4"><enum>(I)</enum><text>the number of

				immigrant visas that were available in any previous fiscal year to

				employment-based immigrants (and their family members accompanying or following

				to join under section 203(d)) and that were not issued for that fiscal year or

				for any subsequent fiscal year, excluding those immigrant visas reserved for

				employment-based immigrants for an occupation listed in schedule A of section

				656.5 of title 20, Code of Federal Regulations; and</text>

									</subclause><subclause id="ID2A8E23A4984F4DAC9F5A8C17F4DC38E2"><enum>(II)</enum><text>90,000.</text>

									</subclause></clause><after-quoted-block>;

				and</after-quoted-block></quoted-block>

						</subparagraph></paragraph><paragraph id="ID54F28CC017F6486FB951A5F35F6F52BD"><enum>(2)</enum><text>by adding at the

			 end the following:</text>

						<quoted-block id="IDF5C34933BF364314B75A01E4534B3B8C" style="OLC">

							<paragraph id="IDBA6A78E9B5A44C92BDAB060D69194906"><enum>(3)</enum><text>Immigrant visas

				issued on or after October 1, 2004, to spouses and children of employment-based

				immigrants shall not be counted against the numerical limitation set forth in

				paragraph

				(1).</text>

							</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</paragraph></subsection><subsection id="IDFC87A0301A9144E292D36B8EC08ABACB"><enum>(b)</enum><header>Supplemental

			 Petition Fee</header><text>Section 204(a)(1) of the

			 <act-name parsable-cite="INA">Immigration and Nationality Act</act-name> (8

			 U.S.C. 1154(a)(1)) is amended—</text>

					<paragraph id="ID67FB90ADD67E44448A75D0B7EBAC4E45"><enum>(1)</enum><text>in subparagraph

			 (E), by adding at the end the following: <quote>Such petition shall be

			 accompanied by a supplemental petition fee in the amount of $500.</quote>;

			 and</text>

					</paragraph><paragraph id="IDEB90473205E344208B4D9F073CDE3557"><enum>(2)</enum><text>in subparagraph

			 (F), by adding at the end the following: <quote>Such petition shall be

			 accompanied by a supplemental petition fee in the amount of

			 $500.</quote>.</text>

					</paragraph></subsection><subsection id="ID674A1D076ADD49D8B9C07617A48DED78"><enum>(c)</enum><header>Adjustment of

			 Status</header>

					<paragraph id="IDFF85DAF5AE574CFDAE63EF8C7C0720B4"><enum>(1)</enum><header>In

			 general</header><text>Section 245(a) of the <act-name parsable-cite="INA">Immigration and Nationality Act</act-name> (8 U.S.C.

			 1255(a)) is amended to read as follows:</text>

						<quoted-block act-name="Immigration and Nationality Act" id="IDB2A56786E7F74A8A9BD87D0A8226488A" style="OLC">

							<subsection id="ID96F37DFDA66049C995147AB11B8BE2F6"><enum>(a)</enum><paragraph commented="no" display-inline="yes-display-inline" id="IDA05129DC41364AC7ACCD01DDE04C361F"><enum>(1)</enum><text>The status of an alien

				who was inspected and admitted or paroled into the United States or the status

				of any other alien having an approved petition for classification under

				subparagraph (A)(iii), (A)(iv), (B)(ii), or (B)(iii) of section 204(a)(1) may

				be adjusted by the Secretary of Homeland Security or the Attorney General, in

				the discretion of the Secretary or Attorney General, and under such regulations

				as the Secretary or Attorney General may prescribe, to that of an alien

				lawfully admitted for permanent residence if—</text>

									<subparagraph id="ID4F2E75DF1D0E4D8DB06DC1497649DC8E" indent="up1"><enum>(A)</enum><text>the alien makes an application for

				such adjustment;</text>

									</subparagraph><subparagraph id="ID727F63FA06B045E591C702A20D867F7B" indent="up1"><enum>(B)</enum><text>the alien is eligible to receive an

				immigrant visa and is admissible to the United States for permanent residence;

				and</text>

									</subparagraph><subparagraph id="IDECB6A36033C8496A909B93E404FAB43A" indent="up1"><enum>(C)</enum><text>an immigrant visa is immediately

				available to the alien at the time the application is filed.</text>

									</subparagraph></paragraph><paragraph id="ID020C4B8A6D2F422E9E9F07D7646ABE11" indent="up1"><enum>(2)</enum><text>If a supplemental petition fee is

				paid for any petition under subparagraph (E) or (F) of section 204(a)(1), an

				application under paragraph (1) of this subsection on behalf of an alien

				beneficiary of such petition (including a spouse or child who is accompanying

				or following to join the principal beneficiary) may be filed without regard to

				the limitation set forth in paragraph (1)(C). An application for adjustment of

				status filed under this paragraph may not be approved until such time as an

				immigrant visa becomes

				available.</text>

								</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

					</paragraph><paragraph id="ID23BEF306CED54C36B32A7C931652C7B8"><enum>(2)</enum><header>Pending

			 applications</header><text>An alien on whose behalf a petition was pending

			 under subparagraph (E) or (F) of section 204(a)(1) of the

			 <act-name parsable-cite="INA">Immigration and Nationality Act</act-name> (8

			 U.S.C. 1154(a)(1)), on the date of enactment of this Act may, upon the payment

			 of the supplemental petition fee set forth in such section, apply for

			 adjustment of status under this subsection without regard to the limitation set

			 forth in section 245(a)(1)(C) of the <act-name parsable-cite="INA">Immigration

			 and Nationality Act</act-name> (8 U.S.C. 1255(a)(1)(C)), as amended by

			 paragraph (1).</text>

					</paragraph></subsection><subsection id="ID0EDDBFB259CB4955878AED9330A9303E"><enum>(d)</enum><header>Recapture of

			 Unused H–1B Visa Numbers</header><text>Section 214(g) of the

			 <act-name parsable-cite="INA">Immigration and Nationality Act</act-name> (8

			 U.S.C. 1184(g)) is amended—</text>

					<paragraph id="ID81A7D8134BFA4713A5D9A9F19DB32AB9"><enum>(1)</enum><text>by redesignating

			 paragraphs (9) through (11) as paragraphs (10) through (12), respectively;

			 and</text>

					</paragraph><paragraph id="ID36CC7ED24F59461E8A3CEC948C46D8F9"><enum>(2)</enum><text>by inserting

			 after paragraph (8) the following:</text>

						<quoted-block id="ID13401544435F44FA80B9E8C9A6D774CB" style="OLC">

							<paragraph id="ID0A37A4DE6A4044428C256385D03AE825"><enum>(9)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID64DF9DB8341B4F4C8DBC4892D5EF614B"><enum>(A)</enum><text>If the numerical

				limitation in paragraph (1)(A) for fiscal year 2006 or a subsequent fiscal year

				has been reached, such numerical limitation shall be supplemented in a number

				equal to the lesser of—</text>

									<clause id="IDAB51344864DF4BD8AA504CC20C8A4D3D" indent="up1"><enum>(i)</enum><text>the cumulative total number of

				visas that were available in all prior fiscal years subsequent to fiscal year

				1991, and not issued for each such fiscal year or any subsequent fiscal year;

				and</text>

									</clause><clause id="ID53D14FBA750A49018962CFCBED011E33" indent="up1"><enum>(ii)</enum><text>30,000.</text>

									</clause></subparagraph><subparagraph id="IDE4667746570C41F89FD8FDF0592D2424" indent="up1"><enum>(B)</enum><text>Any petition filed after the numerical

				limitation set forth in paragraph (1)(A) has been reached for that fiscal year,

				and seeking an H–1B visa number recaptured under subparagraph (A) of this

				paragraph, shall be accompanied by an H–1B recapture fee in the amount of

				$500.</text>

								</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

					</paragraph></subsection><subsection id="ID9EDA535EE06B4BE5A85B6B9643D2037F"><enum>(e)</enum><header>Conforming

			 Amendment</header><text>Section 286(m) of the <act-name parsable-cite="INA">Immigration and Nationality Act</act-name> (8 U.S.C.

			 1356(m)) is amended by inserting <quote>, including those fees provided for in

			 subparagraphs (E) and (F) of section 204(a)(1) and subsections (c)(15) and

			 (g)(9)(B) of section 214,</quote> after <quote>all adjudication

			 fees</quote>.</text>

				</subsection><subsection id="IDD3D6DF155F054A8C8AF14A4C99007F01"><enum>(f)</enum><header>Expenditure

			 Limitation</header><text>Amounts collected under subparagraphs (E) and (F) of

			 section 204(a)(1) and subsections (c)(15) and (g)(9)(B) of section 214 of the

			 <act-name parsable-cite="INA">Immigration and Nationality Act</act-name>, as

			 amended by this Act, may not be expended unless specifically appropriated by an

			 Act of Congress.</text>

				</subsection></section><section id="IDA31090B143CF43DC92D4001D2B47C5CD"><enum>8002.</enum><header>Fees with

			 respect to immigration services for intracompany transferees</header><text display-inline="no-display-inline">Section 214(c) of the

			 <act-name parsable-cite="INA">Immigration and Nationality Act</act-name> (8

			 U.S.C. 1184(c)) is amended by adding at the end the following:</text>

				<quoted-block act-name="Immigration and Nationality Act" id="ID8C4F1D2685A146E98C082DBCD039EDFE" style="OLC">

					<paragraph id="ID85AB177D419C4D9593B5ADB91CF5AB89" indent="up1"><enum>(15)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID8D3A83E3D132409699B3827698FCB08E"><enum>(A)</enum><text>The Secretary of State

				shall impose a fee on an employer when an alien files an application abroad for

				a visa authorizing initial admission to the United States as a nonimmigrant

				described in section 101(a)(15)(L) in order to be employed by the employer, if

				the alien is covered under a blanket petition described in paragraph

				(2)(A).</text>

						</subparagraph><subparagraph id="IDAB0BFEF701F64CDF86F8E4EB6F1D919D" indent="up1"><enum>(B)</enum><text>The Secretary of Homeland Security

				shall impose a fee on an employer filing a petition under paragraph (1)

				initially to grant an alien nonimmigrant status described in section

				101(a)(15)(L) or to extend for the first time the stay of an alien having such

				status.</text>

						</subparagraph><subparagraph id="IDE81802ABAD534412BE8C7E22645078B0" indent="up1"><enum>(C)</enum><text>The amount of the fee imposed under

				subparagraph (A) or (B) shall be $750.</text>

						</subparagraph><subparagraph id="ID30717CFF81584CA78E963D7649C1930C" indent="up1"><enum>(D)</enum><text>The fees imposed under subparagraphs

				(A) and (B) shall only apply to principal aliens and not to spouses or children

				who are accompanying or following to join such principal aliens.</text>

						</subparagraph><subparagraph id="ID0C7FB4BACAC940F0B68BE2B848A3C02A" indent="up1"><enum>(E)</enum><clause commented="no" display-inline="yes-display-inline" id="IDBB1345E9CB504188AADB5DCA629D2607"><enum>(i)</enum><text>An employer may not

				require an alien who is the beneficiary of the visa or petition for which a fee

				is imposed under this paragraph to reimburse, or otherwise compensate, the

				employer for part or all of the cost of such fee.</text>

							</clause><clause id="ID5BAC6759F2D44F65BD9DD610A4859AB5" indent="up1"><enum>(ii)</enum><text>Section 274A(g)(2) shall apply to a

				violation of clause (i) in the same manner as it applies to a violation of

				section

				274A(g)(1).</text>

							</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

			</section><section id="ID9770FF7489C140BBBBE4FB9845F881B5"><enum>8003.</enum><header>Justice

			 programs</header>

				<subsection id="ID4D2687C0322744F29672C6E4505AFB06"><enum>(a)</enum><header>In

			 General</header><text>The Secretary of the Treasury—</text>

					<paragraph id="IDBAEB8A94DBDE421C92C9DAD6C40BE3A2"><enum>(1)</enum><text>for fiscal year

			 2006, out of the funds in the Treasury not otherwise appropriated, shall pay to

			 the Attorney General, by December 31, 2005, the amounts listed in subsection

			 (b) that are to be provided for fiscal year 2006; and</text>

					</paragraph><paragraph id="ID70E78FF6E4924525A23062F845F0E03F"><enum>(2)</enum><text>for each

			 subsequent fiscal year provided in subsection (b) out of funds in the Treasury

			 not otherwise appropriated, shall pay to the Attorney General the amounts

			 provided by November 1 of each such fiscal year.</text>

					</paragraph></subsection><subsection id="IDF59904BB62A7455A9A4D7343A73780DF"><enum>(b)</enum><header>Amounts

			 Provided</header><text>The amounts referred to in subsection (a), which shall

			 be in addition to funds appropriated for each fiscal year, are—</text>

					<paragraph id="IDC5CCCC9970354A40AAFDA69E1CEEF13B"><enum>(1)</enum><text>$8,000,000 for

			 fiscal year 2006, $17,000,000 for fiscal year 2007, –$15,000,000 for fiscal

			 year 2008, $10,000,000 for fiscal year 2009, and $10,000,000 for fiscal year

			 2010, to fund the Bulletproof Vest Partnership Program as authorized under

			 section 4 of Public Law 108–372.</text>

					</paragraph><paragraph id="IDD16FB06634A641F6908CD084B5D7C2FD"><enum>(2)</enum><text>$3,700,000 for

			 fiscal year 2006, $6,300,000 for fiscal year 2007, $5,000,000 for fiscal year

			 2008, $5,000,000 for fiscal year 2009, and $5,000,000 for fiscal year 2010, to

			 fund DNA Training and Education for Law Enforcement, Correctional Personnel,

			 and Court Officers as authorized by section 303 of Public Law 108–405.</text>

					</paragraph><paragraph id="ID99E21B0BB36C4F4895A3E90569D0821A"><enum>(3)</enum><text>$8,000,000 for

			 fiscal year 2006, $12,000,000 for fiscal year 2007, $10,000,000 for fiscal year

			 2008, $10,000,000 for fiscal year 2009, and $10,000,000 for fiscal year 2010,

			 to fund DNA Research and Development as authorized by section 305 of Public Law

			 108–405.</text>

					</paragraph><paragraph id="ID484D5899FAE14B879DC079C8CC0054F5"><enum>(4)</enum><text>$500,000 for

			 fiscal year 2006, $500,000 for fiscal year 2007, $500,000 for fiscal year 2008,

			 $500,000 for fiscal year 2009, and $500,000 for fiscal year 2010, to fund the

			 National Forensic Science Commission as authorized by section 306 of Public Law

			 108–405.</text>

					</paragraph><paragraph id="ID336D6C45126D47C2B4BD37067AEFA1AD"><enum>(5)</enum><text>$1,000,000 for

			 fiscal year 2006, $1,000,000 for fiscal year 2007, $1,000,000 for fiscal year

			 2008, $1,000,000 for fiscal year 2009, and $1,000,000 for fiscal year 2010, to

			 fund DNA Identification of Missing Persons as authorized by section 308 of

			 Public Law 108–405.</text>

					</paragraph><paragraph id="ID5D79BB6DF5FA4D0CA90AFCA7C8193D3B"><enum>(6)</enum><text>$8,000,000 for

			 fiscal year 2006, $27,000,000 for fiscal year 2007, $26,000,000 for fiscal year

			 2008, $25,000,000 for fiscal year 2009, and $25,000,000 for fiscal year 2010,

			 to fund Capital Litigation Improvement Grants as authorized by sections 421,

			 422, and 426 of Public Law 108–405.</text>

					</paragraph><paragraph id="ID7CB747531DE244E9B3F7FAD3F39F3007"><enum>(7)</enum><text>$2,500,000 for

			 fiscal year 2006, $3,000,000 for fiscal year 2007, $2,500,000 for fiscal year

			 2008, $2,500,000 for fiscal year 2009, and $2,500,000 for fiscal year 2010, to

			 fund the Kirk Bloodsworth Post-Conviction DNA Testing Grant Program as

			 authorized by sections 412 and 413 of Public Law 108–405.</text>

					</paragraph><paragraph id="ID33ABD2B5E37D468FB735BDD41E5DFBC7"><enum>(8)</enum><text>$1,000,000 for

			 fiscal year 2006, $1,000,000 for fiscal year 2007, $1,000,000 for fiscal year

			 2008, $1,000,000 for fiscal year 2009, and $1,000,000 for fiscal year 2010, to

			 fund Increased Resources for Enforcement of Crime Victims Rights, Crime Victims

			 Notification Grants as authorized by section 1404D of the Victims of Crime Act

			 of 1984 (42 U.S.C. 10603d).</text>

					</paragraph></subsection><subsection id="IDCC4B463AF3D74E31AEEA8F6CD0BE09A3"><enum>(c)</enum><header>Obligation of

			 Funds</header><text>The Attorney General shall—</text>

					<paragraph id="ID664D9C7B81BC48EB8EF2F0D769FB3B68"><enum>(1)</enum><text>receive funds

			 under this section for fiscal years 2006 through 2010; and</text>

					</paragraph><paragraph id="ID114BD6026F4B4795B79798CC5477FF23"><enum>(2)</enum><text>accept such funds

			 in the amounts provided which shall be obligated for the purposes stated in

			 this section by March 1 of each fiscal year.</text>

					</paragraph></subsection></section><section id="ID2500206006274E4C9F0499B4A64D6DF8"><enum>8004.</enum><header>Copyright

			 Program</header>

				<subsection id="IDDDA8B8CBB5AA43E794BDE520975E2F79"><enum>(a)</enum><header>In

			 General</header><text>The Secretary of the Treasury—</text>

					<paragraph id="ID9A11C4A653084A239783F874F2EF4579"><enum>(1)</enum><text>for fiscal year

			 2006, out of the funds in the Treasury not otherwise appropriated, shall pay to

			 the Librarian of the Congress, by December 31, 2005, the amounts listed in

			 subsection (b) that are to be provided for fiscal year 2006; and</text>

					</paragraph><paragraph id="IDA93423CAD04F48FBA33D10867FC0ECC7"><enum>(2)</enum><text>for each

			 subsequent fiscal year provided in subsection (b) out of funds in the Treasury

			 not otherwise appropriated shall pay to the Librarian of the Congress the

			 amounts provided by November 1 of each such fiscal year.</text>

					</paragraph></subsection><subsection id="IDC8AB7844B53E4C2DBCE4E24E9720D3A0"><enum>(b)</enum><header>Amounts

			 Provided</header><text>The amounts referred to in subsection (a), which shall

			 be in addition to funds appropriated for each fiscal year, are: $1,300,000 for

			 fiscal year 2006, $1,300,000 for fiscal year 2007, $1,300,000 for fiscal year

			 2008, $1,300,000 for fiscal year 2009, and $1,300,000 for fiscal year 2010, to

			 fund the Copyright Royalty Judges Program as authorized under section

			 803(e)(1)(B) of title 17, United States Code.</text>

				</subsection><subsection id="IDD783CC22ABBC4EF3BB9464CBA4952515"><enum>(c)</enum><header>Obligation of

			 Funds</header><text>The Librarian of the Congress shall—</text>

					<paragraph id="ID11232A942E874F22BF46770BC2AB0D6E"><enum>(1)</enum><text>receive funds

			 under this section for fiscal years 2006 through 2010; and</text>

					</paragraph><paragraph id="ID6F4C773223954A8ABAEE28B97A874958"><enum>(2)</enum><text>accept such funds

			 in the amounts provided which shall be obligated for the purposes stated in

			 this section by March 1 of each fiscal year.</text>

					</paragraph></subsection></section></title><division id="IDCCA65A554B554133ADD11D6CCCA039DE"><enum>A</enum><header>AMTRAK

			 REAUTHORIZATION</header>

			<section id="ID5C8FEF1BD20B4124A53F1C9A69015452" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This division may be cited as the

			 <quote>Passenger Rail Investment and Improvement Act of 2005</quote>.</text>

			</section><section id="IDE5E94DA7743A42049B9760ADA3CD41D7"><enum>2.</enum><header>Amendment of

			 Title <enum-in-header>49</enum-in-header>, United States Code</header><text display-inline="no-display-inline">Except as otherwise specifically provided,

			 whenever in this division an amendment is expressed in terms of an amendment to

			 a section or other provision of law, the reference shall be considered to be

			 made to a section or other provision of title 49, United States Code.</text>

			</section><title id="ID1BCB894140EA4D10AE3A951B93948FC5"><enum>I</enum><header>AUTHORIZATIONS</header>

				<section id="IDCD59798F961D4A229CB9106A3875C8C9"><enum>101.</enum><header>Authorization

			 for Amtrak capital and operating expenses and State capital grants</header>

					<subsection id="ID936B5A2DD9A3459D8FECC59E6C430E1C"><enum>(a)</enum><header>Operating

			 Grants</header><text>There are authorized to be appropriated to the Secretary

			 of Transportation for the use of Amtrak for operating costs the following

			 amounts:</text>

						<paragraph id="ID4064D52323124EC0B23BABE64C6F10C1"><enum>(1)</enum><text>For fiscal year

			 2006, $580,000,000.</text>

						</paragraph><paragraph id="IDB614F59BC9654085BED19B4AFAC73B4C"><enum>(2)</enum><text>For fiscal year

			 2007, $590,000,000.</text>

						</paragraph><paragraph id="ID30C92B2ADB1344EF9236A8B2FA0165CA"><enum>(3)</enum><text>For fiscal year

			 2008, $600,000,000.</text>

						</paragraph><paragraph id="ID45149CF2A90F4E43B6CA3EB8A94D4F4D"><enum>(4)</enum><text>For fiscal year

			 2009, $575,000,000.</text>

						</paragraph><paragraph id="IDD196B0CA0806460E904276C97D424856"><enum>(5)</enum><text>For fiscal year

			 2010, $535,000,000.</text>

						</paragraph><paragraph id="ID550EF7528A884F85BD488674E25F9644"><enum>(6)</enum><text>For fiscal year

			 2011, $455,000,000.</text>

						</paragraph></subsection><subsection id="ID123E74E773364A1D97E603A4292EF085"><enum>(b)</enum><header>Capital

			 Grants</header><text>There are authorized to be appropriated to the Secretary

			 of Transportation for the use of Amtrak for capital projects (as defined in

			 subparagraphs (A) and (B) of section 24401(2) of title 49, United States Code)

			 to bring the Northeast Corridor (as defined in section 24102(a)) to a

			 state-of-good-repair, for capital expenses of the national railroad passenger

			 transportation system, and for purposes of making capital grants under section

			 24402 of that title to States, the following amounts:</text>

						<paragraph id="ID23FF02BF05A54D03A7297267F6425854"><enum>(1)</enum><text>For fiscal year

			 2006, $813,000,000.</text>

						</paragraph><paragraph id="IDB400525164C644FAA91C7F2BD63E2A7D"><enum>(2)</enum><text>For fiscal year

			 2007, $910,000,000.</text>

						</paragraph><paragraph id="ID3C530688D82342CA9306A9C63B9C8AFD"><enum>(3)</enum><text>For fiscal year

			 2008, $1,071,000,000.</text>

						</paragraph><paragraph id="IDF1EA117659134D9EB616AF9ECBED85D8"><enum>(4)</enum><text>For fiscal year

			 2009, $1,096,000,000.</text>

						</paragraph><paragraph id="ID991BB399ED9E4BB58955A69B2D9D7600"><enum>(5)</enum><text>For fiscal year

			 2010, $1,191,000,000.</text>

						</paragraph><paragraph id="IDFDB67F95247A44E8A18C61198ED78AEE"><enum>(6)</enum><text>For fiscal year

			 2011, $1,231,000,000.</text>

						</paragraph></subsection><subsection id="ID569DEEC9FDAC44AEB6AE198C7EA398E9"><enum>(c)</enum><header>Amounts for

			 State Grants</header><text>Out of the amounts authorized under subsection (b),

			 the following percentage shall be available each fiscal year for capital grants

			 to States under section 24402 of title 49, United States Code, to be

			 administered by the Secretary of Transportation:</text>

						<paragraph id="ID3142F4A55FA74C1B82E1B9CF63398E3E"><enum>(1)</enum><text>3 percent for

			 fiscal year 2006.</text>

						</paragraph><paragraph id="ID31B3B2BDFA3A49A8AEAE3FB1A3FFA162"><enum>(2)</enum><text>11 percent for

			 fiscal year 2007.</text>

						</paragraph><paragraph id="IDF608761CE46141FEBA10D7F78AA4B428"><enum>(3)</enum><text>23 percent for

			 fiscal year 2008.</text>

						</paragraph><paragraph id="ID7C6102B5F4F24BB985C50B6DEF14201E"><enum>(4)</enum><text>25 percent for

			 fiscal year 2009.</text>

						</paragraph><paragraph id="ID73E1001B99DB4BBC95873871E20AD0C3"><enum>(5)</enum><text>31 percent for

			 fiscal year 2010.</text>

						</paragraph><paragraph id="ID55C46F8E914043D880FA925088EEF9CB"><enum>(6)</enum><text>33 percent for

			 fiscal year 2011.</text>

						</paragraph></subsection><subsection id="ID525027B35644428A9A296175DC8F1468"><enum>(d)</enum><header>Project

			 Management Oversight</header><text>The Secretary may withhold up to

			 <fraction>1/2</fraction> of 1 percent of amounts appropriated pursuant to

			 subsection (b) for the costs of project management oversight of capital

			 projects carried out by Amtrak.</text>

					</subsection></section><section id="ID53A2E2AC9639434A8D291CD1B318604A"><enum>102.</enum><header>Authorization

			 for the Federal Railroad Administration</header><text display-inline="no-display-inline">There are authorized to be appropriated to

			 the Secretary of Transportation for the use of the Federal Railroad

			 Administration such sums as necessary to implement the provisions required

			 under this division for fiscal years 2006 through 2011.</text>

				</section><section id="ID4143E6926C8B489FAEEE53C566740763"><enum>103.</enum><header>Repayment of

			 Long-Term debt and capital leases</header>

					<subsection id="ID8E5662A2330D4B21AE45090412420FDF"><enum>(a)</enum><header>Amtrak

			 Principal and Interest Payments</header>

						<paragraph id="ID2570130973C547EB84E7865FC84C9886"><enum>(1)</enum><header>Principal on

			 debt service</header><text>There are authorized to be appropriated to the

			 Secretary of Transportation for the use of Amtrak for retirement of principal

			 on loans for capital equipment, or capital leases, not more than the following

			 amounts:</text>

							<subparagraph id="IDBC5E51F1A03E40EB87477D5D0491FC4A"><enum>(A)</enum><text>For fiscal year

			 2006, $130,200,000.</text>

							</subparagraph><subparagraph id="ID9706A44942274C598B969BC74405DF15"><enum>(B)</enum><text>For fiscal year

			 2007, $140,700,000.</text>

							</subparagraph><subparagraph id="ID135E29BB38444D71B3BA25F18E5A5FA8"><enum>(C)</enum><text>For fiscal year

			 2008, $156,000,000.</text>

							</subparagraph><subparagraph id="ID1F0472BB769D4594AEC17FB6A47D268B"><enum>(D)</enum><text>For fiscal year

			 2009, $183,800,000.</text>

							</subparagraph><subparagraph id="IDAE17BFB4F2E04AE3A6DEFCA1D1E4D5FD"><enum>(E)</enum><text>For fiscal year

			 2010, $156,100,000.</text>

							</subparagraph><subparagraph id="IDB22EE5267B32410DB66AABE412C40BED"><enum>(F)</enum><text>For fiscal year

			 2011, $193,500,000.</text>

							</subparagraph></paragraph><paragraph id="ID8DA57A1C3CAF4AFD8C9D91CA06D6E693"><enum>(2)</enum><header>Interest on

			 debt</header><text>There are authorized to be appropriated to the Secretary of

			 Transportation for the use of Amtrak for the payment of interest on loans for

			 capital equipment, or capital leases, the following amounts:</text>

							<subparagraph id="ID058C80D479E64C119B6553275DC9D9ED"><enum>(A)</enum><text>For fiscal year

			 2006, $148,100,000.</text>

							</subparagraph><subparagraph id="IDEA1A1F1A1FF544EFB1294C7A50851F8E"><enum>(B)</enum><text>For fiscal year

			 2007, $141,500,000.</text>

							</subparagraph><subparagraph id="ID43698654E3ED4A06AF5821FAB1D32572"><enum>(C)</enum><text>For fiscal year

			 2008, $133,800,000.</text>

							</subparagraph><subparagraph id="IDD1D9A1E06D594E4A808E66CDF55290A1"><enum>(D)</enum><text>For fiscal year

			 2009, $124,000,000.</text>

							</subparagraph><subparagraph id="IDCFA352BAD42E427EBFA97D0184207E1F"><enum>(E)</enum><text>For fiscal year

			 2010, $113,900,000.</text>

							</subparagraph><subparagraph id="ID1E8CF7EDF4A047A08CEF1BE188F828DE"><enum>(F)</enum><text>For fiscal year

			 2011, $103,800,000.</text>

							</subparagraph></paragraph><paragraph id="ID38D47EA48E694428BA76261C50A40D5B"><enum>(3)</enum><header>Early Buyout

			 Option</header><text>There are authorized to be appropriated to the Secretary

			 of Transportation such sums as may be necessary for the use of Amtrak for the

			 payment of costs associated with early buyout options if the exercise of those

			 options is determined to be advantageous to Amtrak.</text>

						</paragraph><paragraph id="ID14B9D02B3FE64A62806E0C38B0EF5A9A"><enum>(4)</enum><header>Legal effect of

			 payments under this section</header><text>The payment of principal and interest

			 on secured debt, with the proceeds of grants authorized by this section shall

			 not—</text>

							<subparagraph id="ID3916974A77294D62A5D47F35772305C2"><enum>(A)</enum><text>modify the extent

			 or nature of any indebtedness of the National Railroad Passenger Corporation to

			 the United States in existence of the date of enactment of this Act;</text>

							</subparagraph><subparagraph id="IDCECF9C1835BD4A938E84E6F719DA0879"><enum>(B)</enum><text>change the

			 private nature of Amtrak’s or its successors’ liabilities; or</text>

							</subparagraph><subparagraph id="IDBD5922F3B4F44F6481C1395D86B70BFD"><enum>(C)</enum><text>imply any Federal

			 guarantee or commitment to amortize Amtrak’s outstanding indebtedness.</text>

							</subparagraph></paragraph></subsection></section><section id="IDF4DB5FC6F9044AB0B37A37F26876277E"><enum>104.</enum><header>Excess

			 railroad retirement</header><text display-inline="no-display-inline">There are

			 authorized to be appropriated to the Secretary of Transportation, beginning

			 with fiscal year 2006, such sums as may be necessary to pay to the Railroad

			 Retirement Account an amount equal to the amount Amtrak must pay under section

			 3221 of the Internal Revenue Code of 1986 in such fiscal years that is more

			 than the amount needed for benefits for individuals who retire from Amtrak and

			 for their beneficiaries. For each fiscal year in which the Secretary makes such

			 a payment, the amounts authorized by section 101(a) shall be reduced by an

			 amount equal to such payment.</text>

				</section><section id="ID6B860C95CDE54916B2ADFB440FF3388B"><enum>105.</enum><header>Other

			 authorizations</header><text display-inline="no-display-inline">There are

			 authorized to be appropriated to the Secretary of Transportation—</text>

					<paragraph id="ID967A0539FF2C44BC83D42B97704B9799"><enum>(1)</enum><text>$5,000,000 for

			 each of fiscal years 2006 through 2011 to carry out the rail cooperative

			 research program under section 24910 of title 49, United States Code;</text>

					</paragraph><paragraph id="IDBC5B36308EC748C0BBEC3679C3B4DB43"><enum>(2)</enum><text>$5,000,000 for

			 fiscal year 2006, to remain available until expended, for grants to Amtrak and

			 States participating in the Next Generation Corridor Train Equipment Pool

			 Committee established under section 303 of this division for the purpose of

			 designing, developing specifications for, and initiating the procurement of an

			 initial order of 1 or more types of standardized next-generation corridor train

			 equipment and establishing a jointly-owned corporation to manage that

			 equipment; and</text>

					</paragraph><paragraph id="ID5196E38D3981426A9531C5E19820F617"><enum>(3)</enum><text>$2,000,000 for

			 fiscal year 2007, for the use of Amtrak in conducting the evaluation required

			 by section 216 of this division.</text>

					</paragraph></section></title><title id="ID5F624C71032E43C08ACD8DAC57234549"><enum>II</enum><header>AMTRAK REFORM

			 AND OPERATIONAL IMPROVEMENTS</header>

				<section id="ID25A4817F19E0436D824B38F697990EBA"><enum>201.</enum><header>National

			 railroad passenger Transportation system defined</header>

					<subsection id="ID53971BE01E5146A895474FDD6A653336"><enum>(a)</enum><header>In

			 General</header><text>Section 24102 is amended—</text>

						<paragraph id="ID460AF66D1EB24D99A2C701A8754101E6"><enum>(1)</enum><text>by striking

			 paragraph (2);</text>

						</paragraph><paragraph id="IDD29417F1249D46ACB5BF6160A946741D"><enum>(2)</enum><text>by redesignating

			 paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively;

			 and</text>

						</paragraph><paragraph id="ID0219D02ACBA94977A2F362E1DCFDB95F"><enum>(3)</enum><text>by inserting

			 after paragraph (4) as so redesignated the following:</text>

							<quoted-block id="IDBB3763C246CB4FC59A312C2A52712B54" style="OLC">

								<paragraph id="ID039A8F9BD4B1429EBD62B880D7C31FF0"><enum>(5)</enum><text><quote>national

				rail passenger transportation system</quote> means—</text>

									<subparagraph id="ID18C77FE2B0FB408D9942A2E57072F3AF"><enum>(A)</enum><text>the segment of

				the Northeast Corridor between Boston, Massachusetts and Washington,

				D.C.;</text>

									</subparagraph><subparagraph id="ID658A4B63F7134312B7B03EAD84B3EFFC"><enum>(B)</enum><text>rail corridors

				that have been designated by the Secretary of Transportation as high-speed

				corridors (other than corridors described in subparagraph (A)), but only after

				they have been improved to permit operation of high-speed service;</text>

									</subparagraph><subparagraph id="IDA0CAA914C0454FFB8F02FB2104814BB8"><enum>(C)</enum><text>long distance

				routes of more than 750 miles between endpoints operated by Amtrak as of the

				date of enactment of the Passenger Rail Investment and Improvement Act of 2005;

				and</text>

									</subparagraph><subparagraph id="ID60603018B58946E29ED6059CFB67CA0D"><enum>(D)</enum><text>short-distance

				corridors, or routes of not more than 750 miles between endpoints, operated

				by—</text>

										<clause id="ID804DC5BCBD584BDAAA90B86BEF9195CC"><enum>(i)</enum><text>Amtrak; or</text>

										</clause><clause id="ID8827023E854B432896E0FDC25F99E683"><enum>(ii)</enum><text>another rail

				carrier that receives funds under chapter

				244.</text>

										</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></subsection><subsection id="ID869CDA5700C04F77932C659400A6EFD9"><enum>(b)</enum><header>Amtrak Routes

			 With State Funding</header>

						<paragraph id="ID01E402C651334921A9EE937752EF37C8"><enum>(1)</enum><header>In

			 general</header><text>Chapter 247 is amended by inserting after section 24701

			 the following:</text>

							<quoted-block id="IDFA882B1E648C46BE8DDB4A5D836005AB" style="USC">

								<section id="ID7A26EF5001704EB08D61BCC06258A10C"><enum>24702.</enum><header>Transportation

				requested by States, authorities, and other persons</header>

									<subsection id="ID601906B68EDD4081B3B250A4E7443C6C"><enum>(a)</enum><header>Contracts for

				Transportation</header><text>Amtrak may enter into a contract with a State, a

				regional or local authority, or another person for Amtrak to operate an

				intercity rail service or route not included in the national rail passenger

				transportation system upon such terms as the parties thereto may agree.</text>

									</subsection><subsection id="IDA3D1A9601B3D4A13B06605D81A10EEDF"><enum>(b)</enum><header>Discontinuance</header><text>Upon

				termination of a contract entered into under this section, or the cessation of

				financial support under such a contract by either party, Amtrak may discontinue

				such service or route, notwithstanding any other provision of

				law.</text>

									</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph><paragraph id="IDFFE1F80E1C8842799543C78E534FE2B5"><enum>(2)</enum><header>Conforming

			 amendment</header><text>The chapter analysis for chapter 247 is amended by

			 inserting after the item relating to section 24701 the following:</text>

							<quoted-block id="ID2B4BCC839C184FC8B75AD6E06ABA6CA4" style="OLC">

								<toc regeneration="no-regeneration">

									<toc-entry level="section">24702. Transportation requested by States,

				authorities, and other

				persons</toc-entry>

								</toc>

								<after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></subsection><subsection id="ID4E04F62B361845ABA60517624CBF83A6"><enum>(c)</enum><header>Amtrak To

			 Continue To Provide Non-High-speed Services</header><text>Nothing in this

			 division is intended to preclude Amtrak from restoring, improving, or

			 developing non-high-speed intercity passenger rail service.</text>

					</subsection><subsection id="ID6373BB8779024315986C52B4552E87ED"><enum>(d)</enum><header>Applicability

			 of Section <enum-in-header>24706</enum-in-header></header><text>Section 24706

			 is amended by adding at the end the following:</text>

						<quoted-block id="ID6632D7E7E01E4BEEA60B9479D23BF3A0" style="OLC">

							<subsection id="IDF828685645854005A8F417109853FB4E"><enum>(c)</enum><header>Applicability</header><text>This

				section applies to all service over routes provided by Amtrak, notwithstanding

				any provision of section 24701 of this title or any other provision of this

				title except section

				24702(b).</text>

							</subsection><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection></section><section id="IDC2C12505FFE24B46979BE11279C67D85"><enum>202.</enum><header>Amtrak Board

			 of Directors</header>

					<subsection id="IDBBD44F26972041A1896DC16C3FF6A486"><enum>(a)</enum><header>In

			 General</header><text>Section 24302 is amended to read as follows:</text>

						<quoted-block id="ID7D0723F1040640568F531A94E2A69A17" style="USC">

							<section id="ID67BC9ED964F149C19B6FE7595489F182"><enum>24302.</enum><header>Board of

				Directors</header>

								<subsection id="IDE9659389CFCE4BB2AEFFA3448EC4A798"><enum>(a)</enum><header>Composition and

				Terms</header>

									<paragraph id="IDC7BEAF1CFA8F42C4A5BE7ED48E2D0055"><enum>(1)</enum><text>The Board of

				Directors of Amtrak is composed of the following 10 directors, each of whom

				must be a citizen of the United States:</text>

										<subparagraph id="IDFFFC1D23609044329F6E3F3F379B89FC"><enum>(A)</enum><text>The Secretary of

				Transportation.</text>

										</subparagraph><subparagraph id="IDCB3FE895EBC048B3B4370FF8090437A4"><enum>(B)</enum><text>The President of

				Amtrak, who shall serve ex officio, as a non-voting member.</text>

										</subparagraph><subparagraph id="ID06086FB124B04B9BB017FDAEC0D6BE07"><enum>(C)</enum><text>8 individuals

				appointed by the President of the United States, by and with the advice and

				consent of the Senate, with general business and financial experience,

				experience or qualifications in transportation, freight and passenger rail

				transportation, travel, hospitality, cruise line, and passenger air

				transportation businesses, or representatives of employees or users of

				passenger rail transportation or a State government.</text>

										</subparagraph></paragraph><paragraph id="ID67DA9A9E6AB94F08BB5FF19A0092B83F"><enum>(2)</enum><text>In selecting

				individuals described in paragraph (1) for nominations for appointments to the

				Board, the President shall consult with the Speaker of the House of

				Representatives, the Minority Leader of the House of Representatives, the

				Majority Leader of the Senate, and the Minority Leader of the Senate and try to

				provide adequate and balanced representation of the major geographic regions of

				the United States served by Amtrak.</text>

									</paragraph><paragraph id="ID9D4BD033D0794C0A958D2113CE4113C5"><enum>(3)</enum><text>An individual

				appointed under paragraph (1)(C) of this subsection serves for 5 years or until

				the individual’s successor is appointed and qualified. Not more than 5

				individuals appointed under paragraph (1)(C) may be members of the same

				political party.</text>

									</paragraph><paragraph id="ID092B836F4C824B4F800BDE4F84C1C284"><enum>(4)</enum><text>The Board shall

				elect a chairman and a vice chairman from among its membership. The vice

				chairman shall serve as chairman in the absence of the chairman.</text>

									</paragraph><paragraph id="ID33F0B1649A004639ABB586C7FFF0B503"><enum>(5)</enum><text>The Secretary may

				be represented at board meetings by the Secretary’s designee.</text>

									</paragraph><paragraph id="ID1F57C1F2BF854B2EBB5F446DE20BABB3"><enum>(6)</enum><text>The voting

				privileges of the President can be changed by a unanimous decision of the

				Board.</text>

									</paragraph></subsection><subsection id="IDB85136D2ED30418BB12B244C823A149F"><enum>(b)</enum><header>Pay and

				Expenses</header><text>Each director not employed by the United States

				Government is entitled to $300 a day when performing Board duties. Each

				Director is entitled to reimbursement for necessary travel, reasonable

				secretarial and professional staff support, and subsistence expenses incurred

				in attending Board meetings.</text>

								</subsection><subsection id="ID817ABAC54FC24D93BD223BA6E09DA226"><enum>(c)</enum><header>Vacancies</header><text>A

				vacancy on the Board is filled in the same way as the original selection,

				except that an individual appointed by the President of the United States under

				subsection (a)(1)(C) of this section to fill a vacancy occurring before the end

				of the term for which the predecessor of that individual was appointed is

				appointed for the remainder of that term. A vacancy required to be filled by

				appointment under subsection (a)(1)(C) must be filled not later than 120 days

				after the vacancy occurs.</text>

								</subsection><subsection id="ID58425EB3C0D94C91883620FA43F45F92"><enum>(d)</enum><header>Quorum</header><text>A

				majority of the members serving shall constitute a quorum for doing

				business.</text>

								</subsection><subsection id="ID53DC58B061B047F696C49E7F556CE6D8"><enum>(e)</enum><header>Bylaws</header><text>The

				Board may adopt and amend bylaws governing the operation of Amtrak. The bylaws

				shall be consistent with this part and the articles of

				incorporation.</text>

								</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="ID390EB619087D4420B5D5CBEAB7B072E5"><enum>(b)</enum><header>Effective Date

			 for Directors’ Provision</header><text>The amendment made by subsection (a)

			 shall take effect on January 1, 2006. The members of the Amtrak Board serving

			 on the date of enactment of this Act may continue to serve for the remainder of

			 the term to which they were appointed.</text>

					</subsection></section><section id="ID3710F617056D4CF08933A64375CD0B3F"><enum>203.</enum><header>Establishment

			 of improved financial accounting system</header>

					<subsection id="IDDFCFEFD3072542078EF1E7E58D8E31FE"><enum>(a)</enum><header>In

			 General</header><text>The Amtrak Board of Directors—</text>

						<paragraph id="IDB3AB8A2076674523AFD0D48D8A66F2C5"><enum>(1)</enum><text>may employ an

			 independent financial consultant with experience in railroad accounting to

			 assist Amtrak in improving Amtrak’s financial accounting and reporting system

			 and practices; and</text>

						</paragraph><paragraph id="IDFC1A5F5E0AA0402D92F0DE7B55B92EE7"><enum>(2)</enum><text>shall implement a

			 modern financial accounting and reporting system that will produce accurate and

			 timely financial information in sufficient detail—</text>

							<subparagraph id="IDD6AC0E40CEE642DAB08E7E677E84A271"><enum>(A)</enum><text>to enable Amtrak

			 to assign revenues and expenses appropriately to each of its lines of business

			 and to each major activity within each line of business activity, including

			 train operations, equipment maintenance, ticketing, and reservations;</text>

							</subparagraph><subparagraph id="ID0538AC1D2F49481899A526E3019423CC"><enum>(B)</enum><text>to aggregate

			 expenses and revenues related to infrastructure and distinguish them from

			 expenses and revenues related to rail operations;</text>

							</subparagraph><subparagraph id="IDB905B261594A4CD994CB50E3DCF637E0"><enum>(C)</enum><text>to allow the

			 analysis of ticketing and reservation information on a real-time basis;</text>

							</subparagraph><subparagraph id="ID16B78D039C1E4A94BE24DC58F146C67E"><enum>(D)</enum><text>to provide Amtrak

			 cost accounting data; and</text>

							</subparagraph><subparagraph id="ID2CB426580B07409997ADD83EEA576B8F"><enum>(E)</enum><text>to allow

			 financial analysis by route and service.</text>

							</subparagraph></paragraph></subsection><subsection id="ID24A243B2A439405F99DD5E4175E1FDFC"><enum>(b)</enum><header>Verification of

			 System; Report</header><text>The Inspector General of the Department of

			 Transportation shall review the accounting system designed and implemented

			 under subsection (a) to ensure that it accomplishes the purposes for which it

			 is intended. The Inspector General shall report his findings and conclusions,

			 together with any recommendations, to the Senate Committee on Commerce,

			 Science, and Transportation and the House of Representatives Committee on

			 Transportation and Infrastructure.</text>

					</subsection></section><section id="IDC84A638EC13647768F11593F3D9D6B9A"><enum>204.</enum><header>Development of

			 5-YEAR financial plan</header>

					<subsection id="ID2D5A27FE99D1492B926CD30A5C8BCD82"><enum>(a)</enum><header>Development of

			 5-Year Financial Plan</header><text>The Amtrak Board of Directors shall submit

			 an annual budget and business plan for Amtrak, and a 5-year financial plan for

			 the fiscal year to which that budget and business plan relate and the

			 subsequent 4 years, prepared in accordance with this section, to the Secretary

			 of Transportation and the Inspector General of the Department of Transportation

			 no later than—</text>

						<paragraph id="ID4A673A36DC3244568D1F577589179A5E"><enum>(1)</enum><text>the first day of

			 each fiscal year beginning after the date of enactment of this Act; or</text>

						</paragraph><paragraph id="IDA0453430AB434265ADB55F177BE2ED9A"><enum>(2)</enum><text>the date that is

			 60 days after the date of enactment of an appropriation Act for the fiscal

			 year, if later.</text>

						</paragraph></subsection><subsection id="IDEE13670D1F87426493B5169D22EA7456"><enum>(b)</enum><header>Contents of

			 5-Year Financial Plan</header><text>The 5-year financial plan for Amtrak shall

			 include, at a minimum—</text>

						<paragraph id="ID51D268C5643C43E6AF3120C37E63AFB0"><enum>(1)</enum><text>all projected

			 revenues and expenditures for Amtrak, including governmental funding

			 sources;</text>

						</paragraph><paragraph id="ID629E66367A664233A21CEBCE7AC8A2C0"><enum>(2)</enum><text>projected

			 ridership levels for all Amtrak passenger operations;</text>

						</paragraph><paragraph id="IDA7E6648C431247A891111D3745F70776"><enum>(3)</enum><text>revenue and

			 expenditure forecasts for non-passenger operations;</text>

						</paragraph><paragraph id="IDC6AA7C0C63EE4D00B2036C6A1D006D86"><enum>(4)</enum><text>capital funding

			 requirements and expenditures necessary to maintain passenger service which

			 will accommodate predicted ridership levels and predicted sources of capital

			 funding;</text>

						</paragraph><paragraph id="ID4C8B2889C4BA433BB97655A7C6ADAF61"><enum>(5)</enum><text>operational

			 funding needs, if any, to maintain current and projected levels of passenger

			 service, including state-supported routes and predicted funding sources;</text>

						</paragraph><paragraph id="IDF1910C00A96C4D16AD446139C9F15659"><enum>(6)</enum><text>projected capital

			 and operating requirements, ridership, and revenue for any new passenger

			 service operations or service expansions;</text>

						</paragraph><paragraph id="ID50644773A4974ED9966884413F25697C"><enum>(7)</enum><text>an assessment of

			 the continuing financial stability of Amtrak, as indicated by factors such as

			 the ability of the Federal government to fund capital and operating

			 requirements adequately, Amtrak’s ability to efficiently manage its workforce,

			 and Amtrak’s ability to effectively provide passenger train service;</text>

						</paragraph><paragraph id="IDECA8F125FC2542468A28F4664E4AA240"><enum>(8)</enum><text>estimates of

			 long-term and short-term debt and associated principle and interest payments

			 (both current and anticipated);</text>

						</paragraph><paragraph id="ID2C8B859264E24D6788E9B0CF3A01B12A"><enum>(9)</enum><text>annual cash flow

			 forecasts;</text>

						</paragraph><paragraph id="ID0A211BDAF40E43D4B79C6EFDF1875473"><enum>(10)</enum><text>a statement

			 describing methods of estimation and significant assumptions;</text>

						</paragraph><paragraph id="ID359D4CB6AEE44FDDB0CAFF08BC5585A3"><enum>(11)</enum><text>specific

			 measures that demonstrate measurable improvement year over year in Amtrak’s

			 ability to operate with reduced Federal operating assistance; and</text>

						</paragraph><paragraph id="IDC82FBB6E49F641DC9D1E5CE4750540FB"><enum>(12)</enum><text>capital and

			 operating expenditures for anticipated security needs.</text>

						</paragraph></subsection><subsection id="ID9973FAC73D824772AB66BC67DC315BC7"><enum>(c)</enum><header>Standards To

			 Promote Financial Stability</header><text>In meeting the requirements of

			 subsection (b), Amtrak shall—</text>

						<paragraph id="ID8F0CCFFEE859478C8D3C75C02F3CAD77"><enum>(1)</enum><text>apply sound

			 budgetary practices, including reducing costs and other expenditures, improving

			 productivity, increasing revenues, or combinations of such practices;</text>

						</paragraph><paragraph id="IDB7902C002B9140F5873250D5B3584A25"><enum>(2)</enum><text>use the

			 categories specified in the financial accounting and reporting system developed

			 under section 203 when preparing its 5-year financial plan; and</text>

						</paragraph><paragraph id="ID5E69A80775F449C5997D4CE838116772"><enum>(3)</enum><text>ensure that the

			 plan is consistent with the authorizations of appropriations under title I of

			 this division.</text>

						</paragraph></subsection><subsection id="ID89185D7D4349469A8FA438F6C3E39384"><enum>(d)</enum><header>Assessment by

			 DOT Inspector General</header>

						<paragraph id="ID782E895803314BFEA8518306CA708677"><enum>(1)</enum><header>In

			 general</header><text>The Inspector General of the Department of Transportation

			 shall assess the 5-year financial plans prepared by Amtrak under this section

			 to determine whether they meet the requirements of subsection (b), and may

			 suggest revisions to any components thereof that do not meet those

			 requirements.</text>

						</paragraph><paragraph id="ID927AB59F01EF41C1B085844EE228CF09"><enum>(2)</enum><header>Assessment to

			 be furnished to the congress</header><text>The Inspector General shall furnish

			 to the House of Representatives Committee on Appropriations, the Senate

			 Committee on Appropriations, the House of Representatives Committee on

			 Transportation and Infrastructure, and the Senate Committee on Commerce,

			 Science, and Transportation—</text>

							<subparagraph id="IDDCC92C18ABE54EB99AD3AEC7F298A236"><enum>(A)</enum><text>an assessment of

			 the annual budget within 90 days after receiving it from Amtrak; and</text>

							</subparagraph><subparagraph id="IDE7DFBB7599C9459FA46890E202A21A37"><enum>(B)</enum><text>an assessment of

			 the remaining 4 years of the 5-year financial plan within 180 days after

			 receiving it from Amtrak.</text>

							</subparagraph></paragraph></subsection></section><section id="ID2C886CB66B2A4D53BE042A3230B46E9F"><enum>205.</enum><header>Establishment

			 of grant process</header>

					<subsection id="IDA725C8E8464B482F93C66DA1447F4FBD"><enum>(a)</enum><header>Grant

			 Requests</header><text>Amtrak shall submit grant requests (including a schedule

			 for the disbursement of funds), consistent with the requirements of this

			 division, to the Secretary of Transportation for funds authorized to be

			 appropriated to the Secretary for the use of Amtrak under sections 101(a) and

			 (b), 103, and 105.</text>

					</subsection><subsection id="ID71FCEAE19BA4463CB4ADA480461AE5EF"><enum>(b)</enum><header>Procedures for

			 Grant Requests</header><text>The Secretary shall establish substantive and

			 procedural requirements, including schedules, for grant requests under this

			 section not later than 30 days after the date of enactment of this Act and

			 shall transmit copies to the Senate Committee on Commerce, Science, and

			 Transportation and the House of Representatives Committee on Transportation and

			 Infrastructure. As part of those requirements, the Secretary shall require, at

			 a minimum, that Amtrak deposit grant funds, consistent with the appropriated

			 amounts for each area of expenditure in a given fiscal year, in the following 3

			 accounts:</text>

						<paragraph id="ID1008848B9DA44A20AD23029A6F69E024"><enum>(1)</enum><text>The Amtrak

			 Operating account.</text>

						</paragraph><paragraph id="ID3FFE07B36ACD4DC1B62CFE8196677105"><enum>(2)</enum><text>The Amtrak

			 General Capital account.</text>

						</paragraph><paragraph id="IDD519119947A04D7E95100679D09D79CA"><enum>(3)</enum><text>The Northeast

			 Corridor Improvement funds account.</text>

						</paragraph><continuation-text continuation-text-level="subsection">Amtrak may

			 not transfer such funds to another account or expend such funds for any purpose

			 other than the purposes covered by the account in which the funds are deposited

			 without approval by the Secretary.</continuation-text></subsection><subsection id="ID173E163E31E347208EBAD2F6265AFF92"><enum>(c)</enum><header>Review and

			 Approval</header>

						<paragraph id="IDD93EE84B26C74BE584C0E44E252A37CE"><enum>(1)</enum><header>30-day approval

			 process</header><text>The Secretary shall complete the review of a complete

			 grant request (including the disbursement schedule) and approve or disapprove

			 the request within 30 days after the date on which Amtrak submits the grant

			 request. If the Secretary disapproves the request or determines that the

			 request is incomplete or deficient, the Secretary shall include the reason for

			 disapproval or the incomplete items or deficiencies in the notice to

			 Amtrak.</text>

						</paragraph><paragraph id="ID79C9152B3BAB4579B0B1ED720DA2EC2D"><enum>(2)</enum><header>15-day

			 modification period</header><text>Within 15 days after receiving notification

			 from the Secretary under the preceding sentence, Amtrak shall submit a modified

			 request for the Secretary’s review.</text>

						</paragraph><paragraph id="ID04EEF5C045ED48DB9BB07B42DEB40675"><enum>(3)</enum><header>Revised

			 requests</header><text>Within 15 days after receiving a modified request from

			 Amtrak, the Secretary shall either approve the modified request, or, if the

			 Secretary finds that the request is still incomplete or deficient, the

			 Secretary shall identify in writing to the Senate Committee on Commerce,

			 Science, and Transportation and the House of Representatives Committee on

			 Transportation and Infrastructure the remaining deficiencies and recommend a

			 process for resolving the outstanding portions of the request.</text>

						</paragraph></subsection></section><section id="ID2BB23F60A2A64295891AB7FFE137A486"><enum>206.</enum><header>State-supported

			 routes</header>

					<subsection id="ID6DCC838B7F5F4B0B8C1671B79BC9C901"><enum>(a)</enum><header>In

			 General</header><text>Within 2 years after the date of enactment of this Act,

			 the Board of Directors of Amtrak, in consultation with the Secretary of

			 Transportation and the governors of each State and the Mayor of the District of

			 Columbia or groups representing those officials, shall develop and implement a

			 standardized methodology for establishing and allocating the operating and

			 capital costs among the States and Amtrak associated with trains operated on

			 routes described in section 24102(5)(B) or (D) or section 24702 that—</text>

						<paragraph id="IDBCB36B687E8B42E582F9DD67EA3B7E65"><enum>(1)</enum><text>ensures, within 5

			 years after the date of enactment of this Act, equal treatment in the provision

			 of like services of all States and groups of States (including the District of

			 Columbia); and</text>

						</paragraph><paragraph id="ID60A50776EA1C43C986439EE853BE3097"><enum>(2)</enum><text>allocates to each

			 route the costs incurred only for the benefit of that route and a proportionate

			 share, based upon factors that reasonably reflect relative use, of costs

			 incurred for the common benefit of more than 1 route.</text>

						</paragraph></subsection><subsection id="ID9CE37E58A27948A6BB66810442449B3C"><enum>(b)</enum><header>Review</header><text>If

			 Amtrak and the States (including the District of Columbia) in which Amtrak

			 operates such routes do not voluntarily adopt and implement the methodology

			 developed under subsection (a) in allocating costs and determining compensation

			 for the provision of service in accordance with the date established therein,

			 the Surface Transportation Board shall determine the appropriate methodology

			 required under subsection (a) for such services in accordance with the

			 procedures and procedural schedule applicable to a proceeding under section

			 24904(c) of title 49, United States Code, and require the full implementation

			 of this methodology with regards to the provision of such service within 1 year

			 after the Board’s determination of the appropriate methodology.</text>

					</subsection><subsection id="IDC21CF6B6ADBC4EC88358BF8DBEC708E3"><enum>(c)</enum><header>Use of Chapter

			 <enum-in-header>244</enum-in-header> Funds</header><text>Funds provided to a

			 State under chapter 244 of title 49, United States Code, may be used, as

			 provided in that chapter, to pay capital costs determined in accordance with

			 this section.</text>

					</subsection></section><section id="ID72E03CD8C71B4FC5A8219705A74F0431"><enum>207.</enum><header>Independent

			 auditor to establish methodologies for Amtrak route and service planning

			 decisions</header>

					<subsection id="ID6EB39860B50C4361B7C5286F2EA66896"><enum>(a)</enum><header>Methodology

			 Development</header><text>The Federal Railroad Administration shall obtain the

			 services of an independent auditor or consultant to develop and recommend

			 objective methodologies for determining intercity passenger routes and

			 services, including the establishment of new routes, the elimination of

			 existing routes, and the contraction or expansion of services or frequencies

			 over such routes. In developing such methodologies, the auditor or consultant

			 shall consider—</text>

						<paragraph id="ID3217916C07CF457CB2DB2AD675B4A408"><enum>(1)</enum><text>the current or

			 expected performance and service quality of intercity passenger train

			 operations, including cost recovery, on-time performance and minutes of delay,

			 ridership, on-board services, stations, facilities, equipment, and other

			 services;</text>

						</paragraph><paragraph id="ID5D55B83D06C645CE82FABF990269AFD5"><enum>(2)</enum><text>connectivity of a

			 route with other routes;</text>

						</paragraph><paragraph id="ID24C2810257ED486E95AFD5CCBDF53FFF"><enum>(3)</enum><text>the

			 transportation needs of communities and populations that are not well served by

			 other forms of public transportation;</text>

						</paragraph><paragraph id="ID5AEFBFA7AA2A46C89EC00332AF1A00F9"><enum>(4)</enum><text>Amtrak’s and

			 other major intercity passenger rail service providers in other countries’

			 methodologies for determining intercity passenger rail routes and services;

			 and</text>

						</paragraph><paragraph id="ID630B1432E4B7450FBF97A55074929F70"><enum>(5)</enum><text>the views of the

			 States and other interested parties.</text>

						</paragraph></subsection><subsection id="IDA626B59593C64663B15CD7CB944D7635"><enum>(b)</enum><header>Submittal to

			 Congress</header><text>The auditor or consultant shall submit recommendations

			 developed under subsection (a) to Amtrak, the House of Representatives

			 Committee on Transportation and Infrastructure, and the Senate Committee on

			 Commerce, Science, and Transportation.</text>

					</subsection><subsection id="IDAB76FA96F66642AD98C54DA7AC0F9D82"><enum>(c)</enum><header>Consideration

			 of Recommendations</header><text>Within 90 days after receiving the

			 recommendations developed under subsection (a) by the independent auditor or

			 consultant, the Amtrak Board shall consider the adoption of those

			 recommendations. The Board shall transmit a report to the Senate Committee on

			 Commerce, Science, and Transportation and the House of Representatives

			 Committee on Transportation and Infrastructure explaining its action in

			 adopting or failing to adopt any of the recommendations.</text>

					</subsection><subsection id="ID769C671BE32D4B5AB600D7F287C3CDDD"><enum>(d)</enum><header>Authorization

			 of Appropriations</header><text>There are authorized to be made available to

			 the Secretary of Transportation, out of any amounts authorized by this division

			 to be appropriated for the benefit of Amtrak and not otherwise obligated or

			 expended, such sums as may be necessary to carry out this section.</text>

					</subsection><subsection id="IDD13A0951E7224D5F937137BD326A1B6D"><enum>(e)</enum><header>Pioneer

			 Route</header><text>Within 2 years after the date of enactment of this Act,

			 Amtrak shall conduct a 1-time evaluation of the Pioneer Route formerly operated

			 by Amtrak to determine, using methodologies adopted under subsection (c),

			 whether a level of passenger demand exists that would warrant consideration of

			 reinstating the entire Pioneer Route service or segments of that

			 service.</text>

					</subsection></section><section id="ID3EF6526F765C43E086D724A7E90E8E58"><enum>208.</enum><header>Metrics and

			 standards</header>

					<subsection id="ID396D278292B948A49F64B9287E46275A"><enum>(a)</enum><header>In

			 General</header><text>Within 180 days after the date of enactment of this Act,

			 the Administrator of the Federal Railroad Administration and Amtrak shall

			 jointly, in consultation with the Surface Transportation Board, rail carriers

			 over whose rail lines Amtrak trains operate, States, Amtrak employees, and

			 groups representing Amtrak passengers, as appropriate, develop new or improve

			 existing metrics and minimum standards for measuring the performance and

			 service quality of intercity passenger train operations, including cost

			 recovery, on-time performance and minutes of delay, ridership, on-board

			 services, stations, facilities, equipment, and other services. Such metrics, at

			 a minimum, shall include the percentage of avoidable and fully allocated

			 operating costs covered by passenger revenues on each route, ridership per

			 train mile operated, measures of on-time performance and delays incurred by

			 intercity passenger trains on the rail lines of each rail carrier and, for long

			 distance routes, measures of connectivity with other routes in all regions

			 currently receiving Amtrak service and the transportation needs of communities

			 and populations that are not well-served by other forms of public

			 transportation. Amtrak shall provide reasonable access to the Federal Railroad

			 Administration in order to enable the Administration to carry out its duty

			 under this section.</text>

					</subsection><subsection id="ID1940BF52117C464D8E628084ACAAF6E0"><enum>(b)</enum><header>Quarterly

			 Reports</header><text>The Administrator of the Federal Railroad Administration

			 shall collect the necessary data and publish a quarterly report on the

			 performance and service quality of intercity passenger train operations,

			 including cost recovery, ridership, on-time performance and minutes of delay,

			 causes of delay, on-board services, stations, facilities, equipment, and other

			 services.</text>

					</subsection><subsection id="ID3EB527036E3742808D45573C37BFA500"><enum>(c)</enum><header>Contract with

			 Host Rail Carriers</header><text>To the extent practicable, Amtrak and its host

			 rail carriers shall incorporate the metrics and standards developed under

			 subsection (a) into their access and service agreements.</text>

					</subsection><subsection id="IDB2B4973A375E4DD79853FAEF2C9A7D9E"><enum>(d)</enum><header>Arbitration</header><text>If

			 the development of the metrics and standards is not completed within the

			 180-day period required by subsection (a), any party involved in the

			 development of those standards may petition the Surface Transportation Board to

			 appoint an arbitrator to assist the parties in resolving their disputes through

			 binding arbitration.</text>

					</subsection></section><section id="IDFF39C74C061B445881330D8FE23A0EB1"><enum>209.</enum><header>Passenger

			 train performance</header>

					<subsection id="ID2423B6DF9D8B44AC8342126FA5A9086B"><enum>(a)</enum><header>In

			 General</header><text>Section 24308 is amended by adding at the end the

			 following:</text>

						<quoted-block id="ID019DB0A7A66E445B8118A76BE52C151B" style="OLC">

							<subsection id="ID4B10602E4B5B4687AA8E7F6274709D38"><enum>(f)</enum><header>Passenger Train

				Performance and Other Standards</header>

								<paragraph id="IDA8EBB1F4DE63465AADF6FBB52FC68860"><enum>(1)</enum><header>Investigation

				of substandard performance</header><text>If the on-time performance of any

				intercity passenger train averages less than 80 percent for any 2 consecutive

				calendar quarters, or the service quality of intercity passenger train

				operations for which minimum standards are established under section 208 of the

				Passenger Rail Investment and Improvement Act of 2005 fails to meet those

				standards for 2 consecutive calendar quarters, the Surface Transportation Board

				shall investigate whether, and to what extent, delays or failure to achieve

				minimum standards are due to causes that could reasonably be addressed by a

				rail carrier over the tracks of which the intercity passenger train operates or

				reasonably addressed by the intercity passenger rail operator. In carrying out

				such an investigation, the Board shall obtain information from all parties

				involved and make recommendations regarding reasonable measures to improve the

				service, quality, and on-time performance of the train.</text>

								</paragraph><paragraph id="ID7A08A780EAD046FAA0C2D6E639EFD246"><enum>(2)</enum><header>Problems caused

				by host rail carrier</header><text>If the Board determines that delays or

				failures to achieve minimum standards investigated under paragraph (1) are

				attributable to a rail carrier’s failure to provide preference to Amtrak over

				freight transportation under subsection (c), then the Board shall enforce its

				recommendations for relief under this section.</text>

								</paragraph><paragraph id="ID85D7F1A4A9D943228EA7874CFF773C76"><enum>(3)</enum><header>Penalties</header>

									<subparagraph id="ID9FAB5674252D40E9A9724A18A15DAB78"><enum>(A)</enum><header>In

				general</header><text>The Board shall publish a schedule of penalties which

				will—</text>

									</subparagraph><subparagraph id="ID0495192B80ED48ABB141560DAAE394F8"><enum>(A)</enum><text>fairly reflect

				the extent to which Amtrak suffers financial loss as a result of host rail

				carrier delays or failure to achieve minimum standards; and</text>

									</subparagraph><subparagraph id="ID533DE6CA9B574DC6855D19DC150A999E"><enum>(B)</enum><text>will adequately

				deter future actions which may reasonably be expected to be likely to result in

				delays to Amtrak.</text>

									</subparagraph><subparagraph id="ID5C7A0A3ED44F48738A8BAF73DEEC83E8"><enum>(B)</enum><header>Assessment</header><text>The

				Board may assess these penalties upon a host rail carrier.</text>

									</subparagraph><subparagraph id="ID3E609EFD41EC46DCBAD954D386C1B262"><enum>(C)</enum><header>Use</header><text>The

				Board shall make any amounts received as penalties under this paragraph

				available to Amtrak or a State contracting with Amtrak, as applicable, for

				capital or operating expenditures on such

				routes.</text>

									</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="ID22AE077D66144661B7FCF40DDC7CA0E6"><enum>(b)</enum><header>Change of

			 Reference</header><text>Section 24308 is amended—</text>

						<paragraph id="IDB95450284E2C4F66B432ECD32066B78E"><enum>(1)</enum><text>by striking

			 <quote>Interstate Commerce Commission</quote> in subsection (a)(2)(A) and

			 inserting <quote>Surface Transportation Board</quote>;</text>

						</paragraph><paragraph id="ID5E100888661D40DB82083C34E1E1EEBF"><enum>(2)</enum><text>by striking

			 <quote>Commission</quote> each place it appears and inserting

			 <quote>Board</quote>;</text>

						</paragraph><paragraph id="ID0EDEF5AFE91A45349AFDDDECCC53E0D3"><enum>(3)</enum><text>by striking

			 <quote>Secretary</quote> the last 3 places it appears in subsection (c) and

			 each place it appears in subsections (d) and (e) and inserting

			 <quote>Board</quote>.</text>

						</paragraph></subsection></section><section id="IDFF0AC168798C4E199E8A8A377DCD6FFE"><enum>210.</enum><header>Long distance

			 routes</header>

					<subsection id="IDAA3B1B4BBE2140228DF3B99A842DDDB1"><enum>(a)</enum><header>In

			 General</header><text>Chapter 247 is amended by adding at the end thereof the

			 following:</text>

						<quoted-block id="ID5C1E4489CABD482784B9082D826776AC" style="USC">

							<section id="ID8ADC04EA0AAF4C0F838061FDB0DB1A20"><enum>24710.</enum><header>Long

				distance routes</header>

								<subsection id="ID4A4BBBBC911E4BAD80A686CA539BFE55"><enum>(a)</enum><header>Annual

				Evaluation</header><text>Using the financial and performance metrics developed

				under section 208 of the Passenger Rail Investment and Improvement Act of 2005,

				Amtrak shall—</text>

									<paragraph id="ID25D4A64D80214013A035C2AFC46C6E82"><enum>(1)</enum><text>evaluate annually

				the financial and operating performance of each long distance passenger rail

				route operated by Amtrak; and</text>

									</paragraph><paragraph id="IDAAD4084DCE37407F8216BB0A0675801E"><enum>(2)</enum><text>rank the overall

				performance of such routes for 2006 and identify each long distance passenger

				rail route operated by Amtrak in 2006 according to its overall performance as

				belonging to the best performing third of such routes, the second best

				performing third of such routes, or the worst performing third of such

				routes.</text>

									</paragraph></subsection><subsection id="ID57FF3CC47B594CD7BF344525B301287D"><enum>(b)</enum><header>Performance

				Improvement Plan</header><text>Amtrak shall develop and publish a performance

				improvement plan for its long distance passenger rail routes to achieve

				financial and operating improvements based on the data collected through the

				application of the financial and performance metrics developed under section

				208 of that Act. The plan shall address—</text>

									<paragraph id="IDAD5CBCE4ACCB49FC986B90069BA1CC02"><enum>(1)</enum><text>on-time

				performance;</text>

									</paragraph><paragraph id="ID33B7941C47EE432EADC779872471E6B2"><enum>(2)</enum><text>scheduling,

				frequency, routes, and stops;</text>

									</paragraph><paragraph id="ID804D7DD588714FA298875FAECF7726B6"><enum>(3)</enum><text>the feasibility

				of restructuring service into connected corridor service;</text>

									</paragraph><paragraph id="ID1BE59ABC459C4F45862C964F377ADF63"><enum>(4)</enum><text>performance-related

				equipment changes and capital improvements;</text>

									</paragraph><paragraph id="IDEA3C478CC7384EB2A1354F81152F86F4"><enum>(5)</enum><text>on-board

				amenities and service, including food, first class, and sleeping car

				service;</text>

									</paragraph><paragraph id="IDA549D0C0149E48EA9E018FE1E6A81759"><enum>(6)</enum><text>State or other

				non-Federal financial contributions;</text>

									</paragraph><paragraph id="ID45C61168100B496EBBFCFCACA8487CF8"><enum>(7)</enum><text>improving

				financial performance; and</text>

									</paragraph><paragraph id="IDB7BB3CE1EF9742B7AB7E3828DE31C61F"><enum>(8)</enum><text>other aspects of

				Amtrak’s long distance passenger rail routes that affect the financial,

				competitive, and functional performance of service on Amtrak’s long distance

				passenger rail routes.</text>

									</paragraph></subsection><subsection id="IDC6142C463D9A4BDDA39BF113EE7F325F"><enum>(c)</enum><header>Implementation</header><text>Amtrak

				shall implement the performance improvement plan developed under subsection

				(b)—</text>

									<paragraph id="IDF9AFD107035741F49FBC5DE0EAF7B64D"><enum>(1)</enum><text>beginning in

				fiscal year 2007 for those routes identified as being in the worst performing

				third under subsection (a)(2);</text>

									</paragraph><paragraph id="IDF555964CCF01408BB2C1719A6D98E34A"><enum>(2)</enum><text>beginning in

				fiscal year 2008 for those routes identified as being in the second best

				performing third under subsection (a)(2); and</text>

									</paragraph><paragraph id="ID6FB06A3D42484F1CA22DB141BC932170"><enum>(3)</enum><text>beginning in

				fiscal year 2009 for those routes identified as being in the best performing

				third under subsection (a)(2).</text>

									</paragraph></subsection><subsection id="IDDBB36E11C52546B8897EBEF7E55C3A03"><enum>(d)</enum><header>Enforcement</header><text>The

				Federal Railroad Administration shall monitor the development, implementation,

				and outcome of improvement plans under this section. If, for any year, it

				determines that Amtrak is not making reasonable progress in implementing its

				performance improvement plan or in achieving the expected outcome of the plan

				for any calendar year, the Federal Railroad Administration—</text>

									<paragraph id="ID58567BBB554D4BF58F726DA5A8C08E4A"><enum>(1)</enum><text>shall notify

				Amtrak, the Inspector General of the Department of Transportation, and

				appropriate Congressional committees of its determination under this

				subsection;</text>

									</paragraph><paragraph id="ID32ACD6C392C34C1E987C74EB48AB2362"><enum>(2)</enum><text>shall provide an

				opportunity for a hearing with respect to that determination; and</text>

									</paragraph><paragraph id="ID3BA57CD4884746789DCA637FDC434B3D"><enum>(3)</enum><text>may withhold any

				appropriated funds otherwise available to Amtrak for the operation of a route

				or routes on which it is not making progress, other than funds made available

				for passenger safety or security

				measures.</text>

									</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="IDE3FCA4E59EF14B0F90DC697D8F420744"><enum>(b)</enum><header>Conforming

			 Amendment</header><text>The chapter analysis for chapter 247 is amended by

			 inserting after the item relating to section 24709 the following:</text>

						<quoted-block id="ID598BD54227C243F7B98316EAF8AEB246" style="OLC">

							<toc regeneration="no-regeneration">

								<toc-entry level="section">24710. Long distance

				routes</toc-entry>

							</toc>

							<after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection></section><section id="IDC77F66B9704B439FBDAFB84009EE7A0C"><enum>211.</enum><header>Alternate

			 passenger rail service Program</header>

					<subsection id="ID8E4121FBB9E545BAA58806030C701DFB"><enum>(a)</enum><header>In

			 General</header><text>Chapter 247, as amended by section 209, is amended by

			 adding at the end thereof the following:</text>

						<quoted-block id="ID242AF985B773486B9C8F96C84BCD5621" style="USC">

							<section id="IDEE4DB90AFF3A4B54B861176FADA8C820"><enum>24711.</enum><header>Alternate

				passenger rail service Program</header>

								<subsection id="ID1A14DAE8BC7B415297D76727CCF8908A"><enum>(a)</enum><header>In

				General</header><text>Within 1 year after the date of enactment of the

				Passenger Rail Investment and Improvement Act of 2005, the Federal Railroad

				Administration shall initiate a rulemaking proceeding to develop a program

				under which—</text>

									<paragraph id="ID714457B965754DE6BBEDB84CC8E7FEC1"><enum>(1)</enum><text>a rail carrier or

				rail carriers that own infrastructure over which Amtrak operates a passenger

				rail service route described in subparagraph (B), (C), or (D) of section

				24102(5) or in section 24702 of title 49, United States Code may petition the

				Federal Railroad Administration to be considered as a passenger rail service

				provider over that route in lieu of Amtrak;</text>

									</paragraph><paragraph id="ID21363EEC176D41A4B6FF2A1A0415A41B"><enum>(2)</enum><text>the

				Administration would notify Amtrak within 30 days after receiving a petition

				under paragraph (1) and establish a deadline by which both the petitioner and

				Amtrak would be required to submit a bid to provide passenger rail service over

				the route to which the petition relates;</text>

									</paragraph><paragraph id="ID5CBEC2543E83419BBB62F81987D5A4E8"><enum>(3)</enum><text>each bid would

				describe how the bidder would operate the route, what Amtrak passenger

				equipment would be needed, if any, what sources of non-Federal funding the

				bidder would use, including any State subsidy, among other things;</text>

									</paragraph><paragraph id="ID280C6524630B4D158E048381A7A7B6D7"><enum>(4)</enum><text>the

				Administration would make a decision and execute a contract within a specified,

				limited time after that deadline awarding to the winning bidder—</text>

										<subparagraph id="ID11AF9C8F28A644E7A9D9F9200CDF4AE8"><enum>(A)</enum><text>the right and

				obligation to provide passenger rail service over that route subject to such

				performance standards as the Administration may require, consistent with the

				standards developed under section 208 of this division; and</text>

										</subparagraph><subparagraph id="ID4600B0521DD04B139BBC0DA20BF86160"><enum>(B)</enum><text>an operating

				subsidy—</text>

											<clause id="IDBC33A6FB36214525BD42740E674AAB28"><enum>(i)</enum><text>for the first

				year at a level not in excess of the level in effect during the fiscal year

				preceding the fiscal year in which the petition was received, adjusted for

				inflation;</text>

											</clause><clause id="IDE397D47CC06543E389631A05A46D6638"><enum>(ii)</enum><text>for any

				subsequent years at such level, adjusted for inflation; and</text>

											</clause></subparagraph></paragraph><paragraph id="IDCBF371A32583481A900A35D480C83D3F"><enum>(5)</enum><text>each bid would

				contain a staffing plan describing the number of employees needed to operate

				the service, the job assignments and requirements, and the terms of work for

				prospective and current employees of the bidder for the service outlined in the

				bid, and such staffing plan would be made available by the winning bidder to

				the public after the bid award.</text>

									</paragraph></subsection><subsection id="ID5299E5800FD34E858C77C0C422A48D3F"><enum>(b)</enum><header>Implementation</header>

									<paragraph id="ID35CCFDE54603439E86FA427B3785624A"><enum>(1)</enum><header>Initial

				petitions</header><text>Pursuant to any rules or regulations promulgated under

				subsection (A), the Administration shall establish a deadline for the

				submission of a petition under subsection (a)—</text>

										<subparagraph id="ID600AC51746DF49DAA4D3345D90375DE1"><enum>(A)</enum><text>during fiscal

				year 2007 for operations commencing in fiscal year 2008; and</text>

										</subparagraph><subparagraph id="IDD09FDC72C00C454FA900209844D04CAB"><enum>(B)</enum><text>during the

				immediately preceding fiscal year for operations commencing in subsequent

				fiscal years.</text>

										</subparagraph></paragraph><paragraph id="IDC3F8B218F21B4A54BFA03F8F33753C31"><enum>(2)</enum><header>Route

				limitations</header><text>The Administration may not make the program available

				with respect to more than 1 Amtrak passenger rail route for operations

				beginning in fiscal year 2008 nor to more than 2 such routes for operations

				beginning in fiscal year 2010 and subsequent fiscal years.</text>

									</paragraph></subsection><subsection id="IDBE94E0F00739419CA87E1CE82EF9F396"><enum>(c)</enum><header>Performance

				Standards; Access to Facilities; Employees</header><text>If the Administration

				awards the right and obligation to provide passenger rail service over a route

				under the program to a rail carrier or rail carriers—</text>

									<paragraph id="IDFF55CC0D788F47318C5581DF1C7CFBA1"><enum>(1)</enum><text>it shall execute

				a contract with the rail carrier or rail carriers for rail passenger operations

				on that route that conditions the operating and subsidy rights upon—</text>

										<subparagraph id="IDD732398C8CCA43A0972E64258921782E"><enum>(A)</enum><text>the service

				provider continuing to provide passenger rail service on the route that is no

				less frequent, nor over a shorter distance, than Amtrak provided on that route

				before the award; and</text>

										</subparagraph><subparagraph id="ID1E74D9DD29564D54A1F43A7FE782E3D9"><enum>(B)</enum><text>the service

				provider’s compliance with the minimum standards established under section 208

				of the Passenger Rail Investment and Improvement Act of 2005 and such

				additional performance standards as the Administration may establish;</text>

										</subparagraph></paragraph><paragraph id="ID28A1580DC7E1411FA76911F6D34D02B2"><enum>(2)</enum><text>it shall, if the

				award is made to a rail carrier other than Amtrak, require Amtrak to provide

				access to its reservation system, stations, and facilities to any rail carrier

				or rail carriers awarded a contract under this section, in accordance with

				section 218 of that Act, necessary to carry out the purposes of this

				section;</text>

									</paragraph><paragraph id="IDE854512230BB41D7B0003F2DFB2B6784"><enum>(3)</enum><text>the employees of

				any person used by a rail carrier or rail carriers (as defined in section

				10102(5) of this title) in the operation of a route under this section shall be

				considered an employee of that carrier or carriers and subject to the

				applicable Federal laws and regulations governing similar crafts or classes of

				employees of Amtrak, including provisions under section 121 of the Amtrak

				Reform and Accountability Act of 1997 relating to employees that provide food

				and beverage service; and</text>

									</paragraph><paragraph id="ID4BFE5527FBDF45F39CA2A7C70B99D531"><enum>(4)</enum><text>the winning

				bidder shall provide preference in hiring to qualified Amtrak employees

				displaced by the award of the bid, consistent with the staffing plan submitted

				by the bidder.</text>

									</paragraph></subsection><subsection id="IDD96F01C161594F389650F2DFBD02F3AF"><enum>(d)</enum><header>Cessation of

				Service</header><text>If a rail carrier or rail carriers awarded a route under

				this section cease to operate the service or fail to fulfill their obligations

				under the contract required under subsection (c), the Administrator, in

				collaboration with the Surface Transportation Board shall take any necessary

				action consistent with this title to enforce the contract and ensure the

				continued provision of service, including the installment of an interim service

				provider and re-bidding the contract to operate the service. The entity

				providing service shall either be Amtrak or a rail carrier defined in section

				24711(a)(1).</text>

								</subsection><subsection id="IDF60B6EA0D90E4FA694CFAD3F94521E89"><enum>(e)</enum><header>Adequate

				Resources</header><text>Before taking any action allowed under this section,

				the Secretary shall certify that the Administrator has sufficient resources

				that are adequate to undertake the program established under this

				section.</text>

								</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="IDCBD606FF451545B3BF4B8296E1E7F496"><enum>(b)</enum><header>Conforming

			 Amendment</header><text>The chapter analysis for chapter 247, as amended by

			 section 209, is amended by inserting after the item relating to section 24710

			 the following:</text>

						<quoted-block id="ID897BD9AD7128463297C3F5AA1452115D" style="OLC">

							<toc regeneration="no-regeneration">

								<toc-entry level="section">24711. Alternate passenger rail service

				program</toc-entry>

							</toc>

							<after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection></section><section id="IDFACB2FEB295C4CC591D2B7804A185D90"><enum>212.</enum><header>Employee

			 transition assistance</header>

					<subsection id="IDFEACA78C488F43CD8FD8A979E5A516CB"><enum>(a)</enum><header>Provision of

			 Financial Incentives</header><text>For Amtrak employees who are adversely

			 affected by the cessation of the operation of a long distance route or any

			 other route under section 24711 of title 49, United States Code, previously

			 operated by Amtrak, the Secretary shall develop a program under which the

			 Secretary may, in the Secretary’s discretion, provide grants for financial

			 incentives to be provided to employees of the National Railroad Passenger

			 Corporation who voluntarily terminate their employment with the Corporation and

			 relinquish any legal rights to receive termination-related payments under any

			 contractual agreement with the Corporation.</text>

					</subsection><subsection id="IDA98F0708B6074E57A64B913B953B6C9E"><enum>(b)</enum><header>Conditions for

			 Financial Incentives</header><text>As a condition for receiving financial

			 assistance grants under this section, the Corporation must certify that—</text>

						<paragraph id="IDA9E2F7F3F2FF4D51805147266EFB5E66"><enum>(1)</enum><text>a reasonable

			 attempt was made to reassign an employee adversely affected under section 24711

			 of title 49, United States Code, or by the elimination of any route, to other

			 positions within the Corporation in accordance with any contractual

			 agreements;</text>

						</paragraph><paragraph id="ID4FFD9346720E46FDB20A38C89AC162BF"><enum>(2)</enum><text>the financial

			 assistance results in a net reduction in the total number of employees equal to

			 the number receiving financial incentives;</text>

						</paragraph><paragraph id="ID3DB030CC3CE240CDAAD7EFBDA90B6F24"><enum>(3)</enum><text>the financial

			 assistance results in a net reduction in total employment expense equivalent to

			 the total employment expenses associated with the employees receiving financial

			 incentives; and</text>

						</paragraph><paragraph id="ID89369F37556344E4A0C890EBB80E8B17"><enum>(4)</enum><text>the total number

			 of employees eligible for termination-related payments will not be increased

			 without the express written consent of the Secretary.</text>

						</paragraph></subsection><subsection id="ID654FD02DE4444AC7B581C9775968FCB6"><enum>(c)</enum><header>Amount of

			 Financial Incentives</header><text>The financial incentives authorized under

			 this section may be no greater than $50,000 per employee.</text>

					</subsection><subsection id="ID34919F5ED935475E92EEB020690AF94F"><enum>(d)</enum><header>Authorization

			 of Appropriations</header><text>There are hereby authorized to be appropriated

			 to the Secretary such sums as may be necessary to make grants to the National

			 Railroad Passenger Corporation to provide financial incentives under subsection

			 (a).</text>

					</subsection><subsection id="ID0D124B7963D34D3581779927D49F6CE9"><enum>(e)</enum><header>Termination-Related

			 Payments</header><text>If Amtrak employees adversely affected by the cessation

			 of Amtrak service resulting from the awarding of a grant to an operator other

			 than Amtrak for the operation of a route under section 24711 of title 49,

			 United States Code, or any other route, previously operated by Amtrak do not

			 receive financial incentives under subsection (a), then the Secretary shall

			 make grants to the National Railroad Passenger Corporation from funds

			 authorized by section 102 of this division for termination-related payments to

			 employees under existing contractual agreements.</text>

					</subsection></section><section id="IDD661CB5801C545D69DA589D3DCDD2FBC"><enum>213.</enum><header>Northeast

			 Corridor state-of-good-repair plan</header>

					<subsection id="IDB0B0B7CCE03943F4A318F8D87AB440C0"><enum>(a)</enum><header>In

			 General</header><text>Within 6 months after the date of enactment of this Act,

			 the National Railroad Passenger Corporation, in consultation with the Secretary

			 and the States (including the District of Columbia) that make up the Northeast

			 Corridor (as defined in section 24102 of title 49, United States Code), shall

			 prepare a capital spending plan for capital projects required to return the

			 Northeast Corridor to a state of good repair by the end of fiscal year 2011,

			 consistent with the funding levels authorized in this division and shall submit

			 the plan to the Secretary.</text>

					</subsection><subsection id="ID56729C954725412E9363B95A338ECCF4"><enum>(b)</enum><header>Approval by the

			 Secretary</header>

						<paragraph id="IDB12277111B544A5494BB1AC71E4AEAB1"><enum>(1)</enum><text>The Corporation

			 shall submit the capital spending plan prepared under this section to the

			 Secretary of Transportation for review and approval pursuant to the procedures

			 developed under section 205 of this division.</text>

						</paragraph><paragraph id="ID4257D10CDBB1428AA656E8FDE0A31526"><enum>(2)</enum><text>The Secretary of

			 Transportation shall require that the plan be updated at least annually and

			 shall review and approve such updates. During review, the Secretary shall seek

			 comments and review from the commission established under section 24905 of

			 title 49, United States Code, and other Northeast Corridor users regarding the

			 plan.</text>

						</paragraph><paragraph id="IDE8E196A1A23242739F5C0BE2A9645F67"><enum>(3)</enum><text>The Secretary

			 shall make grants to the Corporation with funds authorized by section 101(b)

			 for Northeast Corridor capital investments contained within the capital

			 spending plan prepared by the Corporation and approved by the Secretary.</text>

						</paragraph><paragraph id="IDBEC1DA7BC6804D55AB07CDA03B945712"><enum>(4)</enum><text>Using the funds

			 authorized by section 101(d), the Secretary shall review Amtrak’s capital

			 expenditures funded by this section to ensure that such expenditures are

			 consistent with the capital spending plan and that Amtrak is providing adequate

			 project management oversight and fiscal controls.</text>

						</paragraph></subsection><subsection id="IDC4EE25D87A0347A0B630F933331C9021"><enum>(c)</enum><header>Eligibility of

			 Expenditures</header><text>The Federal share of expenditures for capital

			 improvements under this section may not exceed 100 percent.</text>

					</subsection></section><section id="IDE894C11EB0F346C6997C1858FDD9A799"><enum>214.</enum><header>Northeast

			 Corridor infrastructure and operations improvements</header>

					<subsection id="ID8C2DAE962E4E4C4398AD9A1953B92E2B"><enum>(a)</enum><header>In

			 General</header><text>Section 24905 is amended to read as follows:</text>

						<quoted-block id="IDD5F87ABCF01F42668294C119384D0ED1" style="USC">

							<section id="ID237FBB90BC51402294FA06398E81EC40"><enum>24905.</enum><header>Northeast

				Corridor Infrastructure and Operations Advisory Commission; safety and security

				Committee</header>

								<subsection id="IDF661FF71A42641A5B1CA732F136BB0AA"><enum>(a)</enum><header>Northeast

				Corridor Infrastructure and Operations Advisory Commission</header>

									<paragraph id="ID018F2B70296D4D9697ABDB0CFA6B217A"><enum>(1)</enum><text>Within 180 days

				after the date of enactment of the Passenger Rail Investment and Improvement

				Act of 2005, the Secretary of Transportation shall establish a Northeast

				Corridor Infrastructure and Operations Advisory Commission (hereinafter

				referred to in this section as the <quote>Commission</quote>) to promote mutual

				cooperation and planning pertaining to the rail operations and related

				activities of the Northeast Corridor. The Commission shall be made up

				of—</text>

										<subparagraph id="ID88635A51F0D04AA5B6E04D67DFE7925B"><enum>(A)</enum><text>members

				representing the National Railroad Passenger Corporation;</text>

										</subparagraph><subparagraph id="ID24ECD32E2A3844FBA464B33BA03F308E"><enum>(B)</enum><text>members

				representing the Secretary of Transportation and the Federal Railroad

				Administration;</text>

										</subparagraph><subparagraph id="ID701D52F2B8E643EEA84F2351B7814404"><enum>(C)</enum><text>1 member from

				each of the States (including the District of Columbia) that constitute the

				Northeast Corridor as defined in section 24102, designated by, and serving at

				the pleasure of, the chief executive officer thereof; and</text>

										</subparagraph><subparagraph id="IDF4CB6C8CAEB14897AD605F8444E305BB"><enum>(D)</enum><text>non-voting

				representatives of freight railroad carriers using the Northeast Corridor

				selected by the Secretary.</text>

										</subparagraph></paragraph><paragraph id="IDD0282D0A59B94F9E9ED391CABBA1D93E"><enum>(2)</enum><text>The Secretary

				shall ensure that the membership belonging to any of the groups enumerated

				under subparagraph (1) shall not constitute a majority of the commission’s

				memberships.</text>

									</paragraph><paragraph id="ID7E23882E247843159BF5293019767724"><enum>(3)</enum><text>The commission

				shall establish a schedule and location for convening meetings, but shall meet

				no less than four times per fiscal year, and the commission shall develop rules

				and procedures to govern the commission’s proceedings.</text>

									</paragraph><paragraph id="ID0AC182C5AA2B49ABB503C3181231413D"><enum>(4)</enum><text>A vacancy in the

				Commission shall be filled in the manner in which the original appointment was

				made.</text>

									</paragraph><paragraph id="IDB1A6930813C1437980F99CEA26E27435"><enum>(5)</enum><text>Members shall

				serve without pay but shall receive travel expenses, including per diem in lieu

				of subsistence, in accordance with sections 5702 and 5703 of title 5, United

				States Code.</text>

									</paragraph><paragraph id="IDFAAF2BCF7567412C9B94724AEF4F6A7F"><enum>(6)</enum><text>The Chairman of

				the Commission shall be elected by the members.</text>

									</paragraph><paragraph id="ID2641CF1094B746659CB202E6EE477CCA"><enum>(7)</enum><text>The Commission

				may appoint and fix the pay of such personnel as it considers

				appropriate.</text>

									</paragraph><paragraph id="ID613917B7BEC24BF4A34BA1F63758FD62"><enum>(8)</enum><text>Upon request of

				the Commission, the head of any department or agency of the United States may

				detail, on a reimbursable basis, any of the personnel of that department or

				agency to the Commission to assist it in carrying out its duties under this

				section.</text>

									</paragraph><paragraph id="ID38043E8874D148CDB29F8518708D7ED3"><enum>(9)</enum><text>Upon the request

				of the Commission, the Administrator of General Services shall provide to the

				Commission, on a reimbursable basis, the administrative support services

				necessary for the Commission to carry out its responsibilities under this

				section.</text>

									</paragraph><paragraph id="ID3F37014384B74904A9A85E28B5904A01"><enum>(10)</enum><text>The commission

				shall consult with other entities as appropriate.</text>

									</paragraph></subsection><subsection id="ID4BFA93C289AA4BE3BAD69E73A6CE7857"><enum>(b)</enum><header>General

				Recommendations</header><text>The Commission shall develop recommendations

				concerning Northeast Corridor rail infrastructure and operations including

				proposals addressing, as appropriate—</text>

									<paragraph id="ID8ADE539CE5024183B41FBD2550E7598E"><enum>(1)</enum><text>short-term and

				long term capital investment needs beyond the state-of-good-repair under

				section 213;</text>

									</paragraph><paragraph id="ID98844EA758A94BCEAF4132AA4BEA6F59"><enum>(2)</enum><text>future funding

				requirements for capital improvements and maintenance;</text>

									</paragraph><paragraph id="IDCE74207BC8BE440B93A72437F32EC722"><enum>(3)</enum><text>operational

				improvements of intercity passenger rail, commuter rail, and freight rail

				services;</text>

									</paragraph><paragraph id="ID02368905143641A19EF6A49A7B7E5FAE"><enum>(4)</enum><text>opportunities for

				additional non-rail uses of the Northeast Corridor;</text>

									</paragraph><paragraph id="ID40FC9A4A5109416DB0C6F9D03031B8BA"><enum>(5)</enum><text>scheduling and

				dispatching;</text>

									</paragraph><paragraph id="ID5CA6691C23A54140ABB02303E5046E25"><enum>(6)</enum><text>safety and

				security enhancements;</text>

									</paragraph><paragraph id="ID7A353E373D774B59B150C56277F14CD7"><enum>(7)</enum><text>equipment

				design;</text>

									</paragraph><paragraph id="ID8CF6A28D86D945598C4A7FC7BA6BA23B"><enum>(8)</enum><text>marketing of rail

				services; and</text>

									</paragraph><paragraph id="ID1689F0F2B1314DA99B8E0AE8A140A9A8"><enum>(9)</enum><text>future capacity

				requirements.</text>

									</paragraph></subsection><subsection id="ID5F0445D0CD954C3EBBB9CE4F750C143E"><enum>(c)</enum><header>Access

				Costs</header>

									<paragraph id="ID71A6FE2D724C44619701A72F9096A757"><enum>(1)</enum><header>Development of

				formula</header><text>Within 1 year after verification of Amtrak’s new

				financial accounting system pursuant to section 203(b) of the Passenger Rail

				Investment and Improvement Act of 2005, the Commission shall—</text>

										<subparagraph id="ID7B5FF14669D1489BAB1D2731B5433117"><enum>(A)</enum><text>develop a

				standardized formula for determining and allocating costs, revenues, and

				compensation for Northeast Corridor commuter rail passenger transportation, as

				defined in section 24102 of this title, that use National Railroad Passenger

				Corporation facilities or services or that provide such facilities or services

				to the National Railroad Passenger Corporation that ensure that—</text>

											<clause id="ID1F4FEB969D524B95BFB7F2340A01723E"><enum>(i)</enum><text>there is no

				cross-subsidization of commuter rail passenger, intercity rail passenger, or

				freight rail transportation; and</text>

											</clause><clause id="ID17AB75DB461749A48D9DEB179656E3A9"><enum>(ii)</enum><text>each service is

				assigned the costs incurred only for the benefit of that service, and a

				proportionate share, based upon factors that reasonably reflect relative use,

				of costs incurred for the common benefit of more than 1 service;</text>

											</clause></subparagraph><subparagraph id="ID21793071F4744D1DBA063E391EAC838E"><enum>(B)</enum><text>develop a

				proposed timetable for implementing the formula before the end of the 6th year

				following the date of enactment of that Act;</text>

										</subparagraph><subparagraph id="IDBD32725E68F1424788989D5D99B515E4"><enum>(C)</enum><text>transmit the

				proposed timetable to the Surface Transportation Board; and</text>

										</subparagraph><subparagraph id="IDCC4FF7DB4910436589882F591820947F"><enum>(D)</enum><text>at the request of

				a Commission member, petition the Surface Transportation Board to appoint a

				mediator to assist the Commission members through non-binding mediation to

				reach an agreement under this section.</text>

										</subparagraph></paragraph><paragraph id="ID8E7D7239C61D42CA942042D39F022802"><enum>(2)</enum><header>Implementation</header><text>The

				National Railroad Passenger Corporation and the commuter authorities providing

				commuter rail passenger transportation on the Northeast Corridor shall

				implement new agreements for usage of facilities or services based on the

				formula proposed in paragraph (1) in accordance with the timetable established

				therein. If the entities fail to implement such new agreements in accordance

				with the timetable, the Commission shall petition the Surface Transportation

				Board to determine the appropriate compensation amounts for such services in

				accordance with section 24904(c) of this title. The Surface Transportation

				Board shall enforce its determination on the party or parties involved.</text>

									</paragraph></subsection><subsection id="IDA49E9048B41D43FDAD48CE597B11A444"><enum>(d)</enum><header>Transmission of

				Recommendations</header><text>The commission shall annually transmit the

				recommendations developed under subsection (b) and the formula and timetable

				developed under subsection (c)(1) to the Senate Committee on Commerce, Science,

				and Transportation and the House of Representatives Committee on Transportation

				and Infrastructure.</text>

								</subsection><subsection id="IDEA212C5C11504ECDA53D7A134D716E2B"><enum>(e)</enum><header>Northeast

				Corridor Safety and Security Committee</header>

									<paragraph id="ID5C8C6E9452114BAF9EF6149B4F58CE79"><enum>(1)</enum><header>In

				general</header><text>The Secretary shall establish a Northeast Corridor Safety

				and Security Committee composed of members appointed by the Secretary. The

				members shall be representatives of—</text>

										<subparagraph id="IDAC4ADF97DBAB4F79AD92051285A6E7BD"><enum>(A)</enum><text>the

				Secretary;</text>

										</subparagraph><subparagraph id="ID4780D8A5F5B44A01991FD4B90432C540"><enum>(B)</enum><text>Amtrak;</text>

										</subparagraph><subparagraph id="ID98224F8CA463456D87478DFC19209A66"><enum>(C)</enum><text>freight carriers

				operating more than 150,000 train miles a year on the main line of the

				Northeast Corridor;</text>

										</subparagraph><subparagraph id="ID8301E1EAE5F1483BA4306DDA2DC2B0C5"><enum>(D)</enum><text>commuter

				agencies;</text>

										</subparagraph><subparagraph id="ID5C026A6B43DA4220B714B4904061DFA3"><enum>(E)</enum><text>rail

				passengers;</text>

										</subparagraph><subparagraph id="ID6C536E1A9C26436E8A9FFFFD9DF23B2F"><enum>(F)</enum><text>rail

				labor;</text>

										</subparagraph><subparagraph id="ID1D42B10CB15C4F1BA924978585E292DE"><enum>(G)</enum><text>the

				Transportation Security Administration; and</text>

										</subparagraph><subparagraph id="IDF6FCB798BCB24BC9985853DA84E46636"><enum>(H)</enum><text>other individuals

				and organizations the Secretary decides have a significant interest in rail

				safety or security.</text>

										</subparagraph></paragraph><paragraph id="IDF40544367C264AF495178F858033FAB3"><enum>(2)</enum><header>Function;

				meetings</header><text>The Secretary shall consult with the Committee about

				safety and security improvements on the Northeast Corridor main line. The

				Committee shall meet at least once every 2 years to consider safety matters on

				the main line.</text>

									</paragraph><paragraph id="ID1F514339E21B4C6999E7346FF54E6FC8"><enum>(3)</enum><header>Report</header><text>At

				the beginning of the first session of each Congress, the Secretary shall submit

				a report to the Commission and to Congress on the status of efforts to improve

				safety and security on the Northeast Corridor main line. The report shall

				include the safety recommendations of the Committee and the comments of the

				Secretary on those

				recommendations.</text>

									</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

						<paragraph id="IDBB9B372E118A48BEB86FEEB75B7D7D14"><enum>(3)</enum><header>Conforming

			 amendments</header><text>Section 24904(c)(2) is amended by—</text>

							<subparagraph id="IDA65AA578E54A40F6A7FBE00CEDF27D6B"><enum>(A)</enum><text>inserting

			 <quote>commuter rail passenger</quote> after <quote>between</quote>; and</text>

							</subparagraph><subparagraph id="IDAB216660F7ED48DEA2AF90C2EEFF5883"><enum>(B)</enum><text>striking

			 <quote>freight</quote> in the second sentence.</text>

							</subparagraph></paragraph></subsection></section><section id="ID02609B507C74416DA60DF4E8AF03179C"><enum>215.</enum><header>Restructuring

			 Long-Term debt and capital leases</header>

					<subsection id="ID046472544911497BABA5EF1542367FFF"><enum>(a)</enum><header>In

			 General</header><text>The Secretary of the Treasury, in consultation with the

			 Secretary of Transportation and Amtrak, may make agreements to restructure

			 Amtrak’s indebtedness as of the date of enactment of this Act. This

			 authorization expires on January 1, 2007.</text>

					</subsection><subsection id="ID43189B7EE514492CAC781BD0B98B4FC2"><enum>(b)</enum><header>Debt

			 Restructuring</header><text>The Secretary of Treasury, in consultation with the

			 Secretary of the Transportation and Amtrak, shall enter into negotiations with

			 the holders of Amtrak debt, including leases, outstanding on the date of

			 enactment of this Act for the purpose of restructuring (including repayment)

			 and repaying that debt. The Secretary of the Treasury may secure agreements for

			 restructuring or repayment on such terms as the Secretary of the Treasury deems

			 favorable to the interests of the Government.</text>

					</subsection><subsection id="ID3C9157A3BE524F1EA2A623A3D5989DC6"><enum>(c)</enum><header>Criteria</header><text>In

			 restructuring Amtrak’s indebtedness, the Secretary and Amtrak—</text>

						<paragraph id="ID265B56BC0B114F00895F9C5A051D4B96"><enum>(1)</enum><text>shall take into

			 consideration repayment costs, the term of any loan or loans, and market

			 conditions; and</text>

						</paragraph><paragraph id="ID946815CFBC524C4AA9EBE82D66D5071E"><enum>(2)</enum><text>shall ensure that

			 the restructuring results in significant savings to Amtrak and the United

			 States Government.</text>

						</paragraph></subsection><subsection id="IDCACE7E382BD443EA89FDEFBA03390B53"><enum>(d)</enum><header>Payment of

			 Renegotiated Debt</header><text>If the criteria under subsection (c) are met,

			 the Secretary of Treasury shall assume or repay the restructured debt, as

			 appropriate.</text>

					</subsection><subsection id="ID01FC61D1AF3643DF9C2D503BFAA6AC74"><enum>(e)</enum><header>Amtrak

			 Principal and Interest Payments</header>

						<paragraph id="IDCCD4111402464498A2DF63D0F99FC120"><enum>(1)</enum><header>Principal on

			 debt service</header><text>Unless the Secretary of Treasury makes sufficient

			 payments to creditors under subsection (d) so that Amtrak is required to make

			 no payments to creditors in a fiscal year, the Secretary of Transportation

			 shall use funds authorized by section 103(a)(1) for the use of Amtrak for

			 retirement of principal on loans for capital equipment, or capital

			 leases.</text>

						</paragraph><paragraph id="IDAA24EDD27F2D4180B2AFE05837C95EA6"><enum>(2)</enum><header>Interest on

			 debt</header><text>Unless the Secretary of Treasury makes sufficient payments

			 to creditors under subsection (d) so that Amtrak is required to make no

			 payments to creditors in a fiscal year, the Secretary of Transportation shall

			 use funds authorized by section 103(a)(2) for the use of Amtrak for the payment

			 of interest on loans for capital equipment, or capital leases.</text>

						</paragraph><paragraph id="IDEEE9F309E7504342A1B72EB321617F1E"><enum>(3)</enum><header>Reductions in

			 authorization levels</header><text>Whenever action taken by the Secretary of

			 the Treasury under subsection (a) results in reductions in amounts of principal

			 or interest that Amtrak must service on existing debt, the corresponding

			 amounts authorized by section 103(a)(1) or (2) shall be reduced

			 accordingly.</text>

						</paragraph></subsection><subsection id="ID45ECAF1155404A7B8E273999463D6139"><enum>(f)</enum><header>Legal Effect of

			 Payments Under This Section</header><text>The payment of principal and interest

			 on secured debt, other than debt assumed under subsection (d), with the

			 proceeds of grants under subsection (e) shall not—</text>

						<paragraph id="ID4ACAB9BA93B747F89E57B1E5AD291253"><enum>(1)</enum><text>modify the extent

			 or nature of any indebtedness of the National Railroad Passenger Corporation to

			 the United States in existence of the date of enactment of this Act;</text>

						</paragraph><paragraph id="ID0324162060BF479EA798E6F6F1D4421E"><enum>(2)</enum><text>change the

			 private nature of Amtrak’s or its successors’ liabilities; or</text>

						</paragraph><paragraph id="ID4F3E691715D344A8B47F36FAC884A576"><enum>(3)</enum><text>imply any Federal

			 guarantee or commitment to amortize Amtrak’s outstanding indebtedness.</text>

						</paragraph></subsection><subsection id="ID9631E56C061140D1B5884D7380139776"><enum>(g)</enum><header>Secretary

			 Approval</header><text>Amtrak may not incur more debt after the date of

			 enactment of this Act without the express advance approval of the Secretary of

			 Transportation.</text>

					</subsection><subsection id="ID9AB401827F9C4AB2A8F6EE2AC650F266"><enum>(h)</enum><header>Report</header><text>The

			 Secretary of the Treasury shall transmit a report to the Senate Committee on

			 Commerce, Science, and Transportation, the Senate Committee on Appropriations,

			 the House of Representatives Committee on Transportation and Infrastructure,

			 and the House of Representatives Committee on Appropriations by June 1,

			 2007—</text>

						<paragraph id="ID84D03FDFB4404B23A4EDDE15CA92E372"><enum>(1)</enum><text>describing in

			 detail any agreements to restructure the Amtrak debt; and</text>

						</paragraph><paragraph id="IDB2A487009A5E40A3B2B3F5F24524FD58"><enum>(2)</enum><text>providing an

			 estimate of the savings to Amtrak and the United States Government.</text>

						</paragraph></subsection></section><section id="ID054B79BCF1EA4D9E804CF32BF266AD60"><enum>216.</enum><header>Study of

			 compliance requirements at existing intercity rail stations</header><text display-inline="no-display-inline">Amtrak, in consultation with station owners,

			 shall evaluate the improvements necessary to make all existing stations it

			 serves readily accessible to and usable by individuals with disabilities, as

			 required by section 242(e)(2) of the Americans with Disabilities Act of 1990

			 (42 U.S.C. 12162(e)(2)). The evaluation shall include the estimated cost of the

			 improvements necessary, the identification of the responsible person (as

			 defined in section 241(5) of that Act (42 U.S.C. 12161(5))), and the earliest

			 practicable date when such improvements can be made. Amtrak shall submit the

			 evaluation to the Senate Committee on Commerce, Science, and Transportation,

			 the House of Representatives Committee on Transportation and Infrastructure,

			 and the National Council on Disability by September 30, 2007, along with

			 recommendations for funding the necessary improvements.</text>

				</section><section id="ID0BDAF186C7FF4272B6F13344BA5C9C16"><enum>217.</enum><header>Incentive

			 pay</header><text display-inline="no-display-inline">The Amtrak Board of

			 Directors is encouraged to develop an incentive pay program for Amtrak

			 management employees.</text>

				</section><section id="IDD507A6A6B1AB4421816F4B95CB8009CC"><enum>218.</enum><header>Access to

			 Amtrak equipment and services</header><text display-inline="no-display-inline">If a State desires to select or selects an

			 entity other than Amtrak to provide services required for the operation of an

			 intercity passenger train route described in section 24102(5)(D) or 24702 of

			 title 49, United States Code, the State may make an agreement with Amtrak to

			 use facilities and equipment of, or have services provided by, Amtrak under

			 terms agreed to by the State and Amtrak to enable the State to utilize an

			 entity other than Amtrak to provide services required for operation of the

			 route. If the parties cannot agree upon terms, and the Surface Transportation

			 Board finds that access to Amtrak’s facilities or equipment, or the provision

			 of services by Amtrak, is necessary to carry out this provision and that the

			 operation of Amtrak’s other services will not be impaired thereby, the Surface

			 Transportation Board shall, within 120 days after submission of the dispute,

			 issue an order that the facilities and equipment be made available, and that

			 services be provided, by Amtrak, and shall determine reasonable compensation,

			 liability and other terms for use of the facilities and equipment and provision

			 of the services. Compensation shall be determined in accord with the

			 methodology established pursuant to section 206 of this division.</text>

				</section><section id="IDD619A46402F24A80AE5BA95684B2E265"><enum>219.</enum><header>General Amtrak

			 provisions</header>

					<subsection id="IDAC81C77DB48D44699F8D9AC715F65568"><enum>(a)</enum><text><header-in-text>Repeal

			 of Self-Sufficiency Requirements.</header-in-text></text>

						<paragraph id="ID382A33D730CF4BB995A10E9DB9EA8DB6"><enum>(1)</enum><header>Title

			 <enum-in-header>49</enum-in-header> amendments</header><text>Chapter 241 is

			 amended—</text>

							<subparagraph id="IDCF53C69D2081499386BEAC98BC6824C9"><enum>(A)</enum><text>by striking the

			 last sentence of section 24101(d); and</text>

							</subparagraph><subparagraph id="IDABF9E2901AE742D8B2798D142E4BA69D"><enum>(B)</enum><text>by striking the

			 last sentence of section 24104(a).</text>

							</subparagraph></paragraph><paragraph id="IDD7A5330B8D3C4BA2A20BA65A4E863EFE"><enum>(2)</enum><header>Amtrak reform

			 and accountability act amendments</header><text>Title II of the Amtrak Reform

			 and Accountability Act of 1997 (49 U.S.C. 24101 nt) is amended by striking

			 sections 204 and 205.</text>

						</paragraph><paragraph id="ID348AAD19FE234F13A73FB328E932D0CF"><enum>(3)</enum><header>Common stock

			 redemption date</header><text>Section 415 of the Amtrak Reform and

			 Accountability Act of 1997 (49 U.S.C. 24304 nt) is amended by striking

			 subsection (b).</text>

						</paragraph></subsection><subsection id="IDFC1773F5E20A497B804BB053C22C8F97"><enum>(b)</enum><header>Lease

			 Arrangements</header><text>Amtrak may obtain services from the Administrator of

			 General Services, and the Administrator may provide services to Amtrak, under

			 section 201(b) and 211(b) of the Federal Property and Administrative Service

			 Act of 1949 (40 U.S.C. 481(b) and 491(b)) for each of fiscal years 2006 through

			 2011.</text>

					</subsection></section><section id="IDCE580E6C46664FEB8341E2644EEF6276"><enum>220.</enum><header>Private sector

			 funding of passenger trains</header><text display-inline="no-display-inline">Amtrak is encouraged to increase its

			 operation of trains funded by the private sector in order to minimize its need

			 for Federal subsidies. Amtrak shall utilize the provisions of section 24308 of

			 title 49, United States Code, when necessary to obtain access to facilities,

			 train and engine crews, or services of a rail carrier or regional

			 transportation authority that are required to operate such trains.</text>

				</section><section id="ID29EDCC50FFDF4A57A20B2F93AE272F8D"><enum>221.</enum><header>On-board

			 service improvements</header>

					<subsection id="ID81D018F479A14CAEAB2ECE80DE9D4854"><enum>(a)</enum><header>In

			 General</header><text>Within 1 year after metrics and standards are established

			 under section 208 of this division, Amtrak shall develop and implement a plan

			 to improve on-board service pursuant to the metrics and standards for such

			 service developed under that section.</text>

					</subsection><subsection id="ID9765174CC2EE4C838D7CC9DC5DEDB805"><enum>(b)</enum><header>Report</header><text>Amtrak

			 shall provide a report to the Senate Committee on Commerce, Science, and

			 Transportation and the House of Representatives Committee on Transportation and

			 Infrastructure on the on-board service improvements proscribed in the plan and

			 the timeline for implementing such improvements.</text>

					</subsection></section><section id="IDD3E5E44EFE9B4AAB8BDD77E941693D27"><enum>222.</enum><header>Amtrak

			 management accountability</header>

					<subsection id="ID077F6B85AF1B4D23AB17BF9C660C75AD"><enum>(a)</enum><header>In

			 General</header><text>Chapter 243 is amended by inserting after section 24309

			 the following:</text>

						<quoted-block id="ID115C0D734EAA4510A807559AA7ED1982" style="USC">

							<section id="IDE968081812F340928D078A7FD638E47E"><enum>24310.</enum><header>Management

				accountability</header>

								<subsection id="ID832FB3762F494A999A18C0AF1AA65D55"><enum>(a)</enum><header>In

				General</header><text>Three years after the date of enactment of the Passenger

				Rail Investment and Improvement Act of 2005, and two years thereafter, the

				Inspector General of the Department of Transportation shall complete an overall

				assessment of the progress made by Amtrak management and the Department of

				Transportation in implementing the provisions of that Act.</text>

								</subsection><subsection id="IDC68FA3937B234144A14A76DC5B30F0DC"><enum>(b)</enum><header>Assessment</header><text>The

				management assessment undertaken by the Inspector General may include a review

				of—</text>

									<paragraph id="IDC290398AA3514483A7C26137044DB682"><enum>(1)</enum><text>effectiveness

				improving annual financial planning;</text>

									</paragraph><paragraph id="ID009345A855084E13943B965FFC5C76DC"><enum>(2)</enum><text>effectiveness in

				implementing improved financial accounting;</text>

									</paragraph><paragraph id="IDEE02107F9E49457094C083F4D8922744"><enum>(3)</enum><text>efforts to

				implement minimum train performance standards;</text>

									</paragraph><paragraph id="ID069883B86C7744CBA020E115FF1919E3"><enum>(4)</enum><text>progress

				maximizing revenues and minimizing Federal subsidies; and</text>

									</paragraph><paragraph id="IDCCC2BD28361742D79F75B91A1899EA8B"><enum>(5)</enum><text>any other aspect

				of Amtrak operations the Inspector General finds appropriate to

				review.</text>

									</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="IDF938BF114A1045EEAF326C150BE5FAB9"><enum>(b)</enum><header>Conforming

			 Amendment</header><text>The chapter analysis for chapter 243 is amended by

			 inserting after the item relating to section 24309 the following:</text>

						<quoted-block id="ID486CF2F0EFE14B06B93F8FF13B059127" style="OLC">

							<toc regeneration="no-regeneration">

								<toc-entry level="section">24310. Management

				accountability</toc-entry>

							</toc>

							<after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection></section></title><title id="ID7B83D8954B604D7F94C0AB9F9F44CB66"><enum>III</enum><header>INTERCITY

			 PASSENGER RAIL POLICY</header>

				<section id="ID0C898A622C574D83A00B93B896505CE7"><enum>301.</enum><header>Capital

			 assistance for intercity passenger rail service</header>

					<subsection id="ID06936E25FF054EC4A7E3A2E8B001AC6F"><enum>(a)</enum><header>In

			 General</header><text>Part C of subtitle V is amended by inserting the

			 following after chapter 243:</text>

						<quoted-block id="IDFA2ABCDC6B9B40E8AC0BA2572570DB01" style="USC">

							<toc regeneration="no-regeneration">

								<toc-entry level="chapter">CHAPTER 244. INTERCITY PASSENGER RAIL

				SERVICE CORRIDOR CAPITAL ASSISTANCE</toc-entry>

								<toc-entry level="section">Sec</toc-entry>

								<toc-entry level="section">24401. Definitions</toc-entry>

								<toc-entry level="section">24402. Capital investment grants to

				support intercity passenger rail service</toc-entry>

								<toc-entry level="section">24403. Project management

				oversight</toc-entry>

								<toc-entry level="section">24404. Use of capital grants to finance

				first-dollar liability of grant project</toc-entry>

								<toc-entry level="section">24405. Grant conditions</toc-entry>

							</toc>

							<section id="ID0F84134816E044C0A01EFF01057C2FAA"><enum>24401.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subchapter:</text>

								<paragraph id="ID3F556207C153430A8633396513B2EB37"><enum>(1)</enum><header>Applicant</header><text>The

				term <term>applicant</term> means a State (including the District of Columbia),

				a group of States, an Interstate Compact, or a public agency established by one

				or more States and having responsibility for providing intercity passenger rail

				service.</text>

								</paragraph><paragraph id="ID9E97C3A74FED4442A9DD2395F8B3B4DD"><enum>(2)</enum><header>Capital

				project</header><text>The term <term>capital project</term> means a project or

				program in a State rail plan developed under chapter 225 of this title

				for—</text>

									<subparagraph id="IDAEA6261BBA90466083D2F0078B2DA43A"><enum>(A)</enum><text>acquiring,

				constructing, improving, or inspecting equipment, track and track structures,

				or a facility for use in or for the primary benefit of intercity passenger rail

				service, expenses incidental to the acquisition or construction (including

				designing, engineering, location surveying, mapping, environmental studies, and

				acquiring rights-of-way), payments for the capital portions of rail trackage

				rights agreements, highway-rail grade crossing improvements related to

				intercity passenger rail service, security, mitigating environmental impacts,

				communication and signalization improvements, relocation assistance, acquiring

				replacement housing sites, and acquiring, constructing, relocating, and

				rehabilitating replacement housing;</text>

									</subparagraph><subparagraph id="ID67833CC7B88A4675B0EA0DE6CFC13649"><enum>(B)</enum><text>rehabilitating,

				remanufacturing or overhauling rail rolling stock and facilities used primarily

				in intercity passenger rail service;</text>

									</subparagraph><subparagraph id="ID0E0D366D42874F879A3847DAF93DA623"><enum>(C)</enum><text>costs associated

				with developing State rail plans; and</text>

									</subparagraph><subparagraph id="ID5ADAFF1A05964C0C984F4059A9188B43"><enum>(D)</enum><text>the first-dollar

				liability costs for insurance related to the provision of intercity passenger

				rail service under section 24404.</text>

									</subparagraph></paragraph><paragraph id="ID783135296B0C497094D41318E49C6C61"><enum>(3)</enum><header>Intercity

				passenger rail service</header><text>The term <term>intercity passenger rail

				service</term> means transportation services with the primary purpose of

				passenger transportation between towns, cities and metropolitan areas by rail,

				including high-speed rail, as defined in section 24102 of title 49, United

				States Code.</text>

								</paragraph></section><section id="ID7017BABF4C734895A402CE2A8F3AF92C"><enum>24402.</enum><header>Capital

				investment grants to support intercity passenger rail service</header>

								<subsection id="IDB771E90694DC4C7AAA5922376A745927"><enum>(a)</enum><header>General

				Authority</header>

									<paragraph id="ID6D910FE9655A4A40AA329AA0C80FAE48"><enum>(1)</enum><text>The Secretary of

				Transportation may make grants under this section to an applicant to assist in

				financing the capital costs of facilities and equipment necessary to provide or

				improve intercity passenger rail transportation.</text>

									</paragraph><paragraph id="ID0CB670E467A3423285E337BFE481F335"><enum>(2)</enum><text>The Secretary

				shall require that a grant under this section be subject to the terms,

				conditions, requirements, and provisions the Secretary decides are necessary or

				appropriate for the purposes of this section, including requirements for the

				disposition of net increases in value of real property resulting from the

				project assisted under this section and shall prescribe procedures and

				schedules for the awarding of grants under this title, including application

				and qualification procedures and a record of decision on applicant eligibility.

				The Secretary shall issue a final rule establishing such procedures not later

				than 90 days after the date of enactment of the Passenger Rail Investment and

				Improvement Act of 2005.</text>

									</paragraph></subsection><subsection id="IDB8481A485BA24BF8A1EB783927A4B9A1"><enum>(b)</enum><header>Project as Part

				of State Rail Plan</header>

									<paragraph id="ID20B4C79FA4EB442F89247DC0ADF400B9"><enum>(1)</enum><text>The Secretary may

				not approve a grant for a project under this section unless the Secretary finds

				that the project is part of a State rail plan developed under chapter 225 of

				this title, or under the plan required by section 203 of the Passenger Rail

				Investment and Improvement Act of 2005, and that the applicant or recipient has

				or will have the legal, financial, and technical capacity to carry out the

				project, satisfactory continuing control over the use of the equipment or

				facilities, and the capability and willingness to maintain the equipment or

				facilities.</text>

									</paragraph><paragraph id="ID25915EC908A14014851EABC472CAFDA9"><enum>(2)</enum><text>An applicant

				shall provide sufficient information upon which the Secretary can make the

				findings required by this subsection.</text>

									</paragraph><paragraph id="IDD40FB5486F204352A6FC9283AF7DE291"><enum>(3)</enum><text>If an applicant

				has not selected the proposed operator of its service competitively, the

				applicant shall provide written justification to the Secretary showing why the

				proposed operator is the best, taking into account price and other factors, and

				that use of the proposed operator will not unnecessarily increase the cost of

				the project.</text>

									</paragraph></subsection><subsection id="IDFB7FABD8B11B46D483B9C044C9325A54"><enum>(c)</enum><header>Project

				Selection Criteria</header><text>The Secretary, in selecting the recipients of

				financial assistance to be provided under subsection (a), shall—</text>

									<paragraph id="ID0885778E6D454531933759589913D207"><enum>(1)</enum><text>require that each

				proposed project meet all safety and security requirements that are applicable

				to the project under law;</text>

									</paragraph><paragraph id="ID3B0CFA56E5CA4A9C8AE29BA51780E304"><enum>(2)</enum><text>give preference

				to projects with high levels of estimated ridership, increased on-time

				performance, reduced trip time, additional service frequency to meet

				anticipated or existing demand, or other significant service enhancements as

				measured against minimum standards developed under section 208 of the Passenger

				Rail Investment and Improvement Act of 2005;</text>

									</paragraph><paragraph id="ID533AB3E714DD41FF839F251655BC9D72"><enum>(3)</enum><text>encourage

				intermodal connectivity through projects that provide direct connections

				between train stations, airports, bus terminals, subway stations, ferry ports,

				and other modes of transportation;</text>

									</paragraph><paragraph id="ID7ED8889581844C399B2928D75F33C2F7"><enum>(4)</enum><text>ensure that each

				project is compatible with, and is operated in conformance with—</text>

										<subparagraph id="ID1B83D495B73646548A6C41A403DB1269"><enum>(A)</enum><text>plans developed

				pursuant to the requirements of section 135 of title 23, United States Code;

				and</text>

										</subparagraph><subparagraph id="ID666D6A21A29041108835A933C7DC251D"><enum>(B)</enum><text>the national rail

				plan (if it is available); and</text>

										</subparagraph></paragraph><paragraph id="IDC989610C3D3A4EEA8DC4C2F943D1BBC2"><enum>(5)</enum><text>favor the

				following kinds of projects:</text>

										<subparagraph id="ID8EEADBFDCB604912A463DAB160D968B6"><enum>(A)</enum><text>Projects that are

				expected to have a significant favorable impact on air or highway traffic

				congestion, capacity, or safety.</text>

										</subparagraph><subparagraph id="IDCBA1683E3A614879A6AF0EDF6E182F60"><enum>(B)</enum><text>Projects that

				also improve freight or commuter rail operations.</text>

										</subparagraph><subparagraph id="ID578E223FC6A94700943C2AFFB580A96E"><enum>(C)</enum><text>Projects that

				have significant environmental benefits.</text>

										</subparagraph><subparagraph id="ID482F16DF70DC4C77B4A059FAEA98704A"><enum>(D)</enum><text>Projects that

				are—</text>

											<clause id="IDB31A5E140834404FA9285D5620B23B25"><enum>(i)</enum><text>at a stage of

				preparation that all pre-commencement compliance with environmental protection

				requirements has already been completed; and</text>

											</clause><clause id="ID9395F7CBB55B492BA613E3ABA4082616"><enum>(ii)</enum><text>ready to be

				commenced.</text>

											</clause></subparagraph><subparagraph id="IDEC169F70A40C43709F1D974A549DC852"><enum>(E)</enum><text>Projects with

				positive economic and employment impacts.</text>

										</subparagraph><subparagraph id="IDE9D40B8A129C4120BD54F6F95240BF23"><enum>(F)</enum><text>Projects that

				encourage the use of positive train control technologies.</text>

										</subparagraph><subparagraph id="ID42268C0CCA8E44ABAE88F05E9630628E"><enum>(G)</enum><text>Projects that

				have commitments of funding from non-Federal Government sources in a total

				amount that exceeds the minimum amount of the non-Federal contribution required

				for the project.</text>

										</subparagraph><subparagraph id="IDBC720C10B25B4A8288D3845B8039648A"><enum>(H)</enum><text>Projects that

				involve donated property interests or services.</text>

										</subparagraph><subparagraph id="IDE09E3B3F5628482A856F7EE9F5943E33"><enum>(I)</enum><text>Projects that are

				identified by the Surface Transportation Board as necessary to improve the on

				time performance and reliability of intercity passenger rail under section

				24308(f).</text>

										</subparagraph></paragraph></subsection><subsection id="ID6E302926FA5E497BA38CE68B0307DC82"><enum>(d)</enum><header>Amtrak

				Eligibility</header><text>To receive a grant under this section, the National

				Railroad Passenger Corporation may enter into a cooperative agreement with 1 or

				more States to carry out 1 or more projects on a State rail plan’s ranked list

				of rail capital projects developed under section 22504(a)(5) of this

				title.</text>

								</subsection><subsection id="IDE82FED29506C43D8BB1765E99DBB3557"><enum>(e)</enum><header>Letters of

				Intent, Full Funding Grant Agreements, and Early Systems Work

				Agreements</header>

									<paragraph id="ID9353A90214A04592B0F5F03993CAF859"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDC0111708CE9347C6AFE745A20AE70CEE"><enum>(A)</enum><text>The Secretary may issue

				a letter of intent to an applicant announcing an intention to obligate, for a

				major capital project under this section, an amount from future available

				budget authority specified in law that is not more than the amount stipulated

				as the financial participation of the Secretary in the project.</text>

										</subparagraph><subparagraph id="IDA2A02D252E8F4EE9B74E44DA5B6380D9"><enum>(B)</enum><text>At least 30 days

				before issuing a letter under subparagraph (A) of this paragraph or entering

				into a full funding grant agreement, the Secretary shall notify in writing the

				Committee on Transportation and Infrastructure of the House of Representatives

				and the Committee on Commerce, Science, and Transportation of the Senate and

				the House and Senate Committees on Appropriations of the proposed letter or

				agreement. The Secretary shall include with the notification a copy of the

				proposed letter or agreement as well as the evaluations and ratings for the

				project.</text>

										</subparagraph><subparagraph id="ID2A889696E75E4D028167D2598AF2042A"><enum>(C)</enum><text>An obligation or

				administrative commitment may be made only when amounts are

				appropriated.</text>

										</subparagraph></paragraph><paragraph id="ID5C7706F78B7140E5BC9485DD8322EE56"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID3F7237947A6D4F869030040CF8EF2294"><enum>(A)</enum><text>The Secretary may make

				a full funding grant agreement with an applicant. The agreement shall—</text>

											<clause id="ID2A3381C1DBC94BDC91409FC0281D4A8B"><enum>(i)</enum><text>establish the

				terms of participation by the United States Government in a project under this

				section;</text>

											</clause><clause id="IDEFEBF20882574650854DBCD8F5578CD4"><enum>(ii)</enum><text>establish the

				maximum amount of Government financial assistance for the project;</text>

											</clause><clause id="ID3E3A443E55954DB69958501D308F09EB"><enum>(iii)</enum><text>cover the

				period of time for completing the project, including a period extending beyond

				the period of an authorization; and</text>

											</clause><clause id="IDC664D1D4E7F642CBA23BBF90932D8DFD"><enum>(iv)</enum><text>make timely and

				efficient management of the project easier according to the law of the United

				States.</text>

											</clause></subparagraph><subparagraph id="ID9EAEA5BCD73A402EB977AAE68AFA9B36"><enum>(B)</enum><text>An agreement

				under this paragraph obligates an amount of available budget authority

				specified in law and may include a commitment, contingent on amounts to be

				specified in law in advance for commitments under this paragraph, to obligate

				an additional amount from future available budget authority specified in law.

				The agreement shall state that the contingent commitment is not an obligation

				of the Government and is subject to the availability of appropriations made by

				Federal law and to Federal laws in force on or enacted after the date of the

				contingent commitment. Interest and other financing costs of efficiently

				carrying out a part of the project within a reasonable time are a cost of

				carrying out the project under a full funding grant agreement, except that

				eligible costs may not be more than the cost of the most favorable financing

				terms reasonably available for the project at the time of borrowing. The

				applicant shall certify, in a way satisfactory to the Secretary, that the

				applicant has shown reasonable diligence in seeking the most favorable

				financing terms.</text>

										</subparagraph></paragraph><paragraph id="IDBC19C8600CAD4BA3A5FE1565604C998B"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID9E95564007C64D94AAA4AB400B5A3020"><enum>(A)</enum><text>The Secretary may make

				an early systems work agreement with an applicant if a record of decision under

				the <act-name parsable-cite="NEPA69">National Environmental Policy Act of

				1969</act-name> (42 U.S.C. 4321 et seq.) has been issued on the project and the

				Secretary finds there is reason to believe—</text>

											<clause id="ID62BE96CF7FE74FE6981575F32D754961"><enum>(i)</enum><text>a

				full funding grant agreement for the project will be made; and</text>

											</clause><clause id="ID3BF560411D434052BFD125812F23006B"><enum>(ii)</enum><text>the terms of the

				work agreement will promote ultimate completion of the project more rapidly and

				at less cost.</text>

											</clause></subparagraph><subparagraph id="ID2D4A81B44BD940CBB02346215B83FE53"><enum>(B)</enum><text>A work agreement

				under this paragraph obligates an amount of available budget authority

				specified in law and shall provide for reimbursement of preliminary costs of

				carrying out the project, including land acquisition, timely procurement of

				system elements for which specifications are decided, and other activities the

				Secretary decides are appropriate to make efficient, long-term project

				management easier. A work agreement shall cover the period of time the

				Secretary considers appropriate. The period may extend beyond the period of

				current authorization. Interest and other financing costs of efficiently

				carrying out the work agreement within a reasonable time are a cost of carrying

				out the agreement, except that eligible costs may not be more than the cost of

				the most favorable financing terms reasonably available for the project at the

				time of borrowing. The applicant shall certify, in a way satisfactory to the

				Secretary, that the applicant has shown reasonable diligence in seeking the

				most favorable financing terms. If an applicant does not carry out the project

				for reasons within the control of the applicant, the applicant shall repay all

				Government payments made under the work agreement plus reasonable interest and

				penalty charges the Secretary establishes in the agreement.</text>

										</subparagraph></paragraph><paragraph id="IDD29A75B770EB4B3F8C5F4CC5539A5020"><enum>(4)</enum><text>The total

				estimated amount of future obligations of the Government and contingent

				commitments to incur obligations covered by all outstanding letters of intent,

				full funding grant agreements, and early systems work agreements may be not

				more than the amount authorized under section 101(c) of Passenger Rail

				Investment and Improvement Act of 2005, less an amount the Secretary reasonably

				estimates is necessary for grants under this section not covered by a letter.

				The total amount covered by new letters and contingent commitments included in

				full funding grant agreements and early systems work agreements may be not more

				than a limitation specified in law.</text>

									</paragraph></subsection><subsection id="IDE78676E6A9184145ADF6B4210955CCC6"><enum>(f)</enum><header>Federal Share

				of Net Project Cost</header>

									<paragraph id="ID056E55B7749E4A43A8DE2FDF14D45F8A"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID64BCA531A62547C0976E3F45C422639C"><enum>(A)</enum><text>Based on engineering

				studies, studies of economic feasibility, and information on the expected use

				of equipment or facilities, the Secretary shall estimate the net project

				cost.</text>

										</subparagraph><subparagraph id="ID4008EE834DC84C4CA9E348835AC2C4F0"><enum>(B)</enum><text>A grant for the

				project shall not exceed 80 percent of the project net capital cost.</text>

										</subparagraph><subparagraph id="IDA66ED492FA764DB093457AC2D566BD51"><enum>(C)</enum><text>The Secretary

				shall give priority in allocating future obligations and contingent commitments

				to incur obligations to grant requests seeking a lower Federal share of the

				project net capital cost.</text>

										</subparagraph></paragraph><paragraph id="ID7A7D3C5FE93E4692B9755E2B76D0B8D2"><enum>(2)</enum><text>Up to an

				additional 20 percent of the required non-Federal funds may be funded from

				amounts appropriated to or made available to a department or agency of the

				Federal Government that are eligible to be expended for transportation.</text>

									</paragraph><paragraph id="ID64551A249DE74821B06B42C5B92D9C4E"><enum>(3)</enum><text>50 percent of the

				average amounts expended by a State or group of States (including the District

				of Columbia) for capital projects to benefit intercity passenger rail service

				in fiscal years 2003, 2004, and 2005 shall be credited towards the matching

				requirements for grants awarded under this section. The Secretary may require

				such information as necessary to verify such expenditures.</text>

									</paragraph><paragraph id="IDBEB8D30B809849F594D237DA4ED4D643"><enum>(4)</enum><text>50 percent of the

				average amounts expended by a State or group of States (including the District

				of Columbia) in a fiscal year beginning in 2006 for capital projects to benefit

				intercity passenger rail service or for the operating costs of such service

				above the average of expenditures made for such service in fiscal years 2003,

				2004, and 2005 shall be credited towards the matching requirements for grants

				awarded under this section. The Secretary may require such information as

				necessary to verify such expenditures.</text>

									</paragraph></subsection><subsection id="ID03FE8AC6D99E4C3CB07B316DB1D8BA28"><enum>(g)</enum><header>Undertaking

				Projects in Advance</header>

									<paragraph id="ID32688E671126456E8B89DF6F67AB34AA"><enum>(1)</enum><text>The Secretary may

				pay the Federal share of the net capital project cost to an applicant that

				carries out any part of a project described in this section according to all

				applicable procedures and requirements if—</text>

										<subparagraph id="ID73249E3FED804D2F9CBC9D154F2DBB98"><enum>(A)</enum><text>the applicant

				applies for the payment;</text>

										</subparagraph><subparagraph id="ID04F5A4AE87DE4E449F7C8894F3A1DF4B"><enum>(B)</enum><text>the Secretary

				approves the payment; and</text>

										</subparagraph><subparagraph id="IDD2F1FB6B15B5434BA4B99EAC2DE47839"><enum>(C)</enum><text>before carrying

				out the part of the project, the Secretary approves the plans and

				specifications for the part in the same way as other projects under this

				section.</text>

										</subparagraph></paragraph><paragraph id="ID35D8757115504381A7E5305F0BACCF96"><enum>(2)</enum><text>The cost of

				carrying out part of a project includes the amount of interest earned and

				payable on bonds issued by the applicant to the extent proceeds of the bonds

				are expended in carrying out the part. However, the amount of interest under

				this paragraph may not be more than the most favorable interest terms

				reasonably available for the project at the time of borrowing. The applicant

				shall certify, in a manner satisfactory to the Secretary, that the applicant

				has shown reasonable diligence in seeking the most favorable financial

				terms.</text>

									</paragraph><paragraph id="ID4817BA0C1B384528AE324B570AD4CD32"><enum>(3)</enum><text>The Secretary

				shall consider changes in capital project cost indices when determining the

				estimated cost under paragraph (2) of this subsection.</text>

									</paragraph></subsection><subsection id="ID4554974CD8894540B5C9ADCE4468A5F8"><enum>(h)</enum><header>2-Year

				Availability</header><text>Funds appropriated under this section shall remain

				available until expended. If any amount provided as a grant under this section

				is not obligated or expended for the purposes described in subsection (a)

				within 2 years after the date on which the State received the grant, such sums

				shall be returned to the Secretary for other intercity passenger rail

				development projects under this section at the discretion of the

				Secretary.</text>

								</subsection><subsection id="ID4E2BE361B2994A86A3FA47C9BC8C0643"><enum>(i)</enum><header>Public-Private

				Partnerships</header>

									<paragraph id="ID493B01C233F5459AB33541E2EAA5628D"><enum>(1)</enum><header>In

				general</header><text>A metropolitan planning organization, State

				transportation department, or other project sponsor may enter into an agreement

				with any public, private, or nonprofit entity to cooperatively implement any

				project funded with a grant under this title.</text>

									</paragraph><paragraph id="ID1FB4EFCE93AA4BE99C34A2E7FD810A33"><enum>(2)</enum><header>Forms of

				participation</header><text>Participation by an entity under paragraph (1) may

				consist of—</text>

										<subparagraph id="ID26BF4DE307D64F3DB709FE5749BF5EAB"><enum>(A)</enum><text>ownership or

				operation of any land, facility, locomotive, rail car, vehicle, or other

				physical asset associated with the project;</text>

										</subparagraph><subparagraph id="IDB6C0A46C4A3241EC976314BF12E7154E"><enum>(B)</enum><text>cost-sharing of

				any project expense;</text>

										</subparagraph><subparagraph id="IDA8718E92274C4F7690DCCFA827B5E9CB"><enum>(C)</enum><text>carrying out

				administration, construction management, project management, project operation,

				or any other management or operational duty associated with the project;

				and</text>

										</subparagraph><subparagraph id="IDB8D5A1322BFF4DEFA9E902F38C0AF0EC"><enum>(D)</enum><text>any other form of

				participation approved by the Secretary.</text>

										</subparagraph></paragraph><paragraph id="IDBD503F63B994494EB11F07EE12F7BC69"><enum>(3)</enum><header>Sub-allocation</header><text>A

				State may allocate funds under this section to any entity described in

				paragraph (1).</text>

									</paragraph></subsection><subsection id="ID4CECF8A102BC49C2932F9792F3B5CF55"><enum>(j)</enum><header>Special

				Transportation Circumstances</header><text>In carrying out this section, the

				Secretary shall allocate an appropriate portion of the amounts available under

				this section to provide grants to States—</text>

									<paragraph id="ID216AB0D6AEF04D3E92F8EDE2774DDFC7"><enum>(1)</enum><text>in which there is

				no intercity passenger rail service for the purpose of funding freight rail

				capital projects that are on a State rail plan developed under chapter 225 of

				this title that provide public benefits (as defined in chapter 225) as

				determined by the Secretary; or</text>

									</paragraph><paragraph id="ID09CB32A1E78B4C4EBBE8A148DF7DD191"><enum>(2)</enum><text>in which the rail

				transportation system is not physically connected to rail systems in the

				continental United States or may not otherwise qualify for a grant under this

				section due to the unique characteristics of the geography of that State or

				other relevant considerations, for the purpose of funding

				transportation-related capital projects.</text>

									</paragraph></subsection><subsection id="ID43C23EEBB2BC4B6DA79791BA93A5857A"><enum>(k)</enum><header>Small Capital

				Projects</header><text>The Secretary shall make available $10,000,000 annually

				from the amounts authorized under section 101(c) of the Passenger Rail

				Investment and Improvement Act of 2005 beginning in fiscal year 2007 for grants

				for capital projects eligible under this section not exceeding $2,000,000,

				including costs eligible under section 206(c) of that Act. The Secretary may

				wave requirements of this section, including state rail plan requirements, as

				appropriate.</text>

								</subsection></section><section id="IDADC542D2362E432482F479A8680D9481"><enum>24403.</enum><header>Project

				management oversight</header>

								<subsection id="IDBDE0B9DD145247EBBEA2BE164E809DBA"><enum>(a)</enum><header>Project

				Management Plan Requirements</header><text>To receive Federal financial

				assistance for a major capital project under this subchapter, an applicant must

				prepare and carry out a project management plan approved by the Secretary of

				Transportation. The plan shall provide for—</text>

									<paragraph id="ID7E5A04019ADD463F90ABC1A17C6F0F70"><enum>(1)</enum><text>adequate

				recipient staff organization with well-defined reporting relationships,

				statements of functional responsibilities, job descriptions, and job

				qualifications;</text>

									</paragraph><paragraph id="ID6CC97CBDEEAE46EDBC7DD0D1D5C2A0E9"><enum>(2)</enum><text>a budget covering

				the project management organization, appropriate consultants, property

				acquisition, utility relocation, systems demonstration staff, audits, and

				miscellaneous payments the recipient may be prepared to justify;</text>

									</paragraph><paragraph id="IDD2CF401311F24185A311FAF88441B073"><enum>(3)</enum><text>a construction

				schedule for the project;</text>

									</paragraph><paragraph id="ID8A58065108604F5BA1F8DEFBE3E35FD2"><enum>(4)</enum><text>a document

				control procedure and recordkeeping system;</text>

									</paragraph><paragraph id="IDBA683CA602234A38BF64494A8CF2FE14"><enum>(5)</enum><text>a change order

				procedure that includes a documented, systematic approach to handling the

				construction change orders;</text>

									</paragraph><paragraph id="ID4E72D7AE291B4FED8EDB2EB178EF44F0"><enum>(6)</enum><text>organizational

				structures, management skills, and staffing levels required throughout the

				construction phase;</text>

									</paragraph><paragraph id="ID46F844FC66ED4FB4A95BFF9830BF9C7F"><enum>(7)</enum><text>quality control

				and quality assurance functions, procedures, and responsibilities for

				construction, system installation, and integration of system components;</text>

									</paragraph><paragraph id="ID0552EAD55DD2462D922401E5A461DF82"><enum>(8)</enum><text>material testing

				policies and procedures;</text>

									</paragraph><paragraph id="ID8ED8344AEB924175938E7108A4A0785A"><enum>(9)</enum><text>internal plan

				implementation and reporting requirements;</text>

									</paragraph><paragraph id="ID1CDA1098545746DEAE0E0A628120465C"><enum>(10)</enum><text>criteria and

				procedures to be used for testing the operational system or its major

				components;</text>

									</paragraph><paragraph id="IDC343E15B7EEC4F3988879B1A1F1AE72C"><enum>(11)</enum><text>periodic updates

				of the plan, especially related to project budget and project schedule,

				financing, and ridership estimates; and</text>

									</paragraph><paragraph id="IDE0E134CCE01942B3B499D87FCAF76084"><enum>(12)</enum><text>the recipient’s

				commitment to submit a project budget and project schedule to the Secretary

				each month.</text>

									</paragraph></subsection><subsection id="IDEF3BC45F66764B6F902483BDB46C83E6"><enum>(b)</enum><header>Secretarial

				Oversight</header>

									<paragraph id="IDE86355C44D684F2F868428B0E609DC41"><enum>(1)</enum><text>The Secretary may

				use no more than 0.5 percent of amounts made available in a fiscal year for

				capital projects under this subchapter to enter into contracts to oversee the

				construction of such projects.</text>

									</paragraph><paragraph id="ID80BCD5956B034E9CA685D02AF0962881"><enum>(2)</enum><text>The Secretary may

				use amounts available under paragraph (1) of this subsection to make contracts

				for safety, procurement, management, and financial compliance reviews and

				audits of a recipient of amounts under paragraph (1).</text>

									</paragraph><paragraph id="ID16EDDB3CE29D4D6EA6C24091D2401E42"><enum>(3)</enum><text>The Federal

				Government shall pay the entire cost of carrying out a contract under this

				subsection.</text>

									</paragraph></subsection><subsection id="ID6DB1241C0802428F9D9AA506E440F90D"><enum>(c)</enum><header>Access to Sites

				and Records</header><text>Each recipient of assistance under this subchapter

				shall provide the Secretary and a contractor the Secretary chooses under

				subsection (c) of this section with access to the construction sites and

				records of the recipient when reasonably necessary.</text>

								</subsection></section><section id="ID6BD02D7C69544C089BED57B73385AE9B"><enum>24404.</enum><header>Use of

				capital grants to finance first-dollar liability of grant project</header><text display-inline="no-display-inline">Notwithstanding the requirements of section

				24402 of this subchapter, the Secretary of Transportation may approve the use

				of capital assistance under this subchapter to fund self-insured retention of

				risk for the first tier of liability insurance coverage for rail passenger

				service associated with the capital assistance grant, but the coverage may not

				exceed $20,000,000 per occurrence or $20,000,000 in aggregate per year.</text>

							</section><section id="IDCFC889F0FE8041AE88BEE8BF2A322CA0"><enum>24405.</enum><header>Grant

				conditions</header>

								<subsection id="IDEF8878DFE9D64150BCEE1305D74B2B9A"><enum>(a)</enum><header>Domestic Buying

				Preference</header>

									<paragraph id="ID23E79D53F60C47D686AE82D0E47E99DE"><enum>(1)</enum><header>Requirement</header>

										<subparagraph id="ID9CD3561A92174C52ACF1CBA06A709F1F"><enum>(A)</enum><header>In

				general</header><text>In carrying out a project funded in whole or in part with

				a grant under this title, the grant recipient shall purchase only—</text>

											<clause id="ID71EFA21AEA4D4685B0B3CD72705F2237"><enum>(i)</enum><text>unmanufactured

				articles, material, and supplies mined or produced in the United States;

				or</text>

											</clause><clause id="ID3DC2F7D26C594ED2BF776B1B1E2A948A"><enum>(ii)</enum><text>manufactured

				articles, material, and supplies manufactured in the United States

				substantially from articles, material, and supplies mined, produced, or

				manufactured in the United States.</text>

											</clause></subparagraph><subparagraph id="IDFBD412674F6F49BC8A7830621AF23781"><enum>(B)</enum><header>De minimis

				amount</header><text>Subparagraph (1) applies only to a purchase in an total

				amount that is not less than $1,000,000.</text>

										</subparagraph></paragraph><paragraph id="ID9BE2D7E46C5C4D7496333884D1473567"><enum>(2)</enum><header>Exemptions</header><text>On

				application of a recipient, the Secretary may exempt a recipient from the

				requirements of this subsection if the Secretary decides that, for particular

				articles, material, or supplies—</text>

										<subparagraph id="ID4C59202FB8CF46868267F7B71424D3CB"><enum>(A)</enum><text>such requirements

				are inconsistent with the public interest;</text>

										</subparagraph><subparagraph id="ID5F9D7E6E3B564AF0A87EAE30D91340F5"><enum>(B)</enum><text>the cost of

				imposing the requirements is unreasonable; or</text>

										</subparagraph><subparagraph id="IDE5FF8A7176244E6B934AF4DBF16E0F12"><enum>(C)</enum><text>the articles,

				material, or supplies, or the articles, material, or supplies from which they

				are manufactured, are not mined, produced, or manufactured in the United States

				in sufficient and reasonably available commercial quantities and are not of a

				satisfactory quality.</text>

										</subparagraph></paragraph><paragraph id="IDD226CA0C3057470E9A24F663ACBE1585"><enum>(3)</enum><header>United States

				defined</header><text>In this subsection, the term <term>the United

				States</term> means the States, territories, and possessions of the United

				States and the District of Columbia.</text>

									</paragraph></subsection><subsection id="IDC47624C1572A4739A78E8493D3BB2FFC"><enum>(b)</enum><header>Operators

				Deemed Rail Carriers and Employers for Certain Purposes</header><text>A person

				that conducts rail operations over rail infrastructure constructed or improved

				with funding provided in whole or in part in a grant made under this title

				shall be considered a rail carrier as defined in section 10102(5) of this title

				for purposes of this title and any other statute that adopts the that

				definition or in which that definition applies, including—</text>

									<paragraph id="IDCD1BC95EF9A043599D74A1B84D0D8147"><enum>(1)</enum><text>the Railroad

				Retirement Act of 1974 (45 U.S.C. 231 et seq.); and</text>

									</paragraph><paragraph id="ID1871615AD6BC49BD9559BC5D39B6F45C"><enum>(2)</enum><text>the Railway Labor

				Act (43 U.S.C. 151 et seq.).</text>

									</paragraph></subsection><subsection id="ID6BA6D831668345DAB76A4158D0ABDF8A"><enum>(c)</enum><header>Grant

				Conditions</header><text>The Secretary shall require as a condition of making

				any grant under this title for a project that uses rights-of-way owned by a

				railroad that—</text>

									<paragraph id="ID3248DC69DFF847D8B5922482AEB88D4B"><enum>(1)</enum><text>a written

				agreement exist between the applicant and the railroad regarding such use and

				ownership, including—</text>

										<subparagraph id="IDE0BFBDCF4E9A477DB0EBC9469676879C"><enum>(A)</enum><text>any compensation

				for such use;</text>

										</subparagraph><subparagraph id="ID5DB2BB62494B4CD6BBB67B7AA553B4A6"><enum>(B)</enum><text>assurances

				regarding the adequacy of infrastructure capacity to accommodate both existing

				and future freight and passenger operations; and</text>

										</subparagraph><subparagraph id="ID5EB9CB3FAF83461D847737BE0E8D4261"><enum>(C)</enum><text>an assurance by

				the railroad that collective bargaining agreements with the railroad’s

				employees (including terms regulating the contracting of work) will remain in

				full force and effect according to their terms for work performed by the

				railroad on the railroad transportation corridor;</text>

										</subparagraph><subparagraph id="IDBD3D35ECC0F24E798E11D98F17D9F1EB"><enum>(D)</enum><text>an assurance that

				an applicant complies with liability requirements consistent with section 28103

				of this title; and</text>

										</subparagraph></paragraph><paragraph id="IDFE634B28BDB844B3BA0C56051215BEC5"><enum>(2)</enum><text>the applicant

				agrees to comply with—</text>

										<subparagraph id="ID43F9749A18ED49FAAD4F3C58B037F8DA"><enum>(A)</enum><text>the standards of

				section 24312 of this title, as such section was in effect on September 1,

				2003, with respect to the project in the same manner that the National Railroad

				Passenger Corporation is required to comply with those standards for

				construction work financed under an agreement made under section 24308(a) of

				this title; and</text>

										</subparagraph><subparagraph id="IDA32505CCF0B14E5897959715C53F1B30"><enum>(B)</enum><text>the protective

				arrangements established under section 504 of the Railroad Revitalization and

				Regulatory Reform Act of 1976 (45 U.S.C. 836) with respect to employees

				affected by actions taken in connection with the project to be financed in

				whole or in part by grants under this subchapter.</text>

										</subparagraph></paragraph></subsection><subsection id="ID1F50FBDB0CF74BD0B74B24C80264EE32"><enum>(d)</enum><header>Replacement of

				Existing Intercity Passenger Rail Service</header>

									<paragraph id="IDE0693F76A02345D88D26EE8EC1CB5822"><enum>(1)</enum><header>Collective

				bargaining agreement for intercity passenger rail projects</header><text>Any

				entity providing intercity passenger railroad transportation that begins

				operations after the date of enactment of this Act on a project funded in whole

				or in part by grants made under this title and replaces intercity rail

				passenger service that was provided by Amtrak, unless such service was provided

				solely by Amtrak to another entity, as of such date shall enter into an

				agreement with the authorized bargaining agent or agents for adversely affected

				employees of the predecessor provider that—</text>

										<subparagraph id="ID9306D75B499B4ED29A8380B24B07B7D9"><enum>(A)</enum><text>gives each such

				qualified employee of the predecessor provider priority in hiring according to

				the employee’s seniority on the predecessor provider for each position with the

				replacing entity that is in the employee’s craft or class and is available

				within 3 years after the termination of the service being replaced;</text>

										</subparagraph><subparagraph id="IDEDEB10FDF50B4497BE4EF52011855EB3"><enum>(B)</enum><text>establishes a

				procedure for notifying such an employee of such positions;</text>

										</subparagraph><subparagraph id="ID128F5212DD3449859BE4804FBEAE2542"><enum>(C)</enum><text>establishes a

				procedure for such an employee to apply for such positions; and</text>

										</subparagraph><subparagraph id="ID9FCEAA4F3CA9414ABDDEF0B4ECE8FBA9"><enum>(D)</enum><text>establishes rates

				of pay, rules, and working conditions.</text>

										</subparagraph></paragraph><paragraph id="IDBBF861496DDA4CD09625561201895432"><enum>(2)</enum><header>Immediate

				replacement service</header>

										<subparagraph id="ID549700FA4BE74CD88340F8200B6A5A19"><enum>(A)</enum><header>Negotiations</header><text>If

				the replacement of preexisting intercity rail passenger service occurs

				concurrent with or within a reasonable time before the commencement of the

				replacing entity’s rail passenger service, the replacing entity shall give

				written notice of its plan to replace existing rail passenger service to the

				authorized collective bargaining agent or agents for the potentially adversely

				affected employees of the predecessor provider at least 90 days before the date

				on which it plans to commence service. Within 5 days after the date of receipt

				of such written notice, negotiations between the replacing entity and the

				collective bargaining agent or agents for the employees of the predecessor

				provider shall commence for the purpose of reaching agreement with respect to

				all matters set forth in subparagraphs (A) through (D) of paragraph (1). The

				negotiations shall continue for 30 days or until an agreement is reached,

				whichever is sooner. If at the end of 30 days the parties have not entered into

				an agreement with respect to all such matters, the unresolved issues shall be

				submitted for arbitration in accordance with the procedure set forth in

				subparagraph (B).</text>

										</subparagraph><subparagraph id="ID3B46646AA468406191549BBC4BFFC337"><enum>(B)</enum><header>Arbitration</header><text>If

				an agreement has not been entered into with respect to all matters set forth in

				subparagraphs (A) through (D) of paragraph (1) as described in subparagraph (A)

				of this paragraph, the parties shall select an arbitrator. If the parties are

				unable to agree upon the selection of such arbitrator within 5 days, either or

				both parties shall notify the National Mediation Board, which shall provide a

				list of seven arbitrators with experience in arbitrating rail labor protection

				disputes. Within 5 days after such notification, the parties shall alternately

				strike names from the list until only 1 name remains, and that person shall

				serve as the neutral arbitrator. Within 45 days after selection of the

				arbitrator, the arbitrator shall conduct a hearing on the dispute and shall

				render a decision with respect to the unresolved issues among the matters set

				forth in subparagraphs (A) through (D) of paragraph (1). This decision shall be

				final, binding, and conclusive upon the parties. The salary and expenses of the

				arbitrator shall be borne equally by the parties; all other expenses shall be

				paid by the party incurring them.</text>

										</subparagraph></paragraph><paragraph id="IDCE29C382CE3B49DEA0A76543F2796C1A"><enum>(3)</enum><header>Service

				commencement</header><text>A replacing entity under this subsection shall

				commence service only after an agreement is entered into with respect to the

				matters set forth in subparagraphs (A) through (D) of paragraph (1) or the

				decision of the arbitrator has been rendered.</text>

									</paragraph><paragraph id="IDBAF77BE8805541DE887AB520C8C483E2"><enum>(4)</enum><header>Subsequent

				replacement of service</header><text>If the replacement of existing rail

				passenger service takes place within 3 years after the replacing entity

				commences intercity passenger rail service, the replacing entity and the

				collective bargaining agent or agents for the adversely affected employees of

				the predecessor provider shall enter into an agreement with respect to the

				matters set forth in subparagraphs (A) through (D) of paragraph (1). If the

				parties have not entered into an agreement with respect to all such matters

				within 60 days after the date on which the replacing entity replaces the

				predecessor provider, the parties shall select an arbitrator using the

				procedures set forth in paragraph (2)(B), who shall, within 20 days after the

				commencement of the arbitration, conduct a hearing and decide all unresolved

				issues. This decision shall be final, binding, and conclusive upon the

				parties.</text>

									</paragraph></subsection><subsection id="IDB73DB155AEC046418ADEF79844320C99"><enum>(e)</enum><header>Inapplicability

				to Certain Rail Operations</header><text>Nothing in this section applies

				to—</text>

									<paragraph id="IDDD1D7D6F17184330B2644A4C0D75FB36"><enum>(1)</enum><text>commuter rail

				passenger transportation (as defined in section 24102(4) of this title)

				operations of a State or local government authority (as those terms are defined

				in section 5302(11) and (6), respectively, of this title) eligible to receive

				financial assistance under section 5307 of this title, or to its contractor

				performing services in connection with commuter rail passenger operations (as

				so defined);</text>

									</paragraph><paragraph id="ID572E3BAA54204A04829D6D943DFB3812"><enum>(2)</enum><text>the Alaska

				Railroad or its contractors; or</text>

									</paragraph><paragraph id="IDBE9FDB9C829C4D95A1BCEE67F76E9D5D"><enum>(3)</enum><text>the National

				Railroad Passenger Corporation’s access rights to railroad rights of way and

				facilities under current

				law.</text>

									</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="ID7FCA67C5C00B4633A5A8BF00484AB28B"><enum>(b)</enum><header>Conforming

			 Amendments</header>

						<paragraph id="ID687894D4309B4FB8AAEE4FFCB66BAC0A"><enum>(1)</enum><text>The table of

			 chapters for the title is amended by inserting the following after the item

			 relating to chapter 243:</text>

							<quoted-block id="ID4958EEA891F54BB98899BD376CEDD2A0" style="USC">

								<paragraph id="ID2293864582CB4E3E8A26169E0883A8E0"><enum>(2)</enum><text>The chapter

				analysis for subtitle V is amended by inserting the following after the item

				relating to chapter 243:</text>

								</paragraph><section id="ID8B66E5D17E6C441C8763FB64E65EC718"><enum>302.</enum><header>State rail

				plans</header>

									<subsection id="ID6439CE5059644CF180EABBCA405D2D77"><enum>(a)</enum><header>In

				General</header><text>Part B of subtitle V is amended by adding at the end the

				following:</text>

										<toc regeneration="no-regeneration">

											<toc-entry level="chapter">CHAPTER 225. STATE RAIL PLANS AND HIGH

				  PRIORITY PROJECTS</toc-entry>

											<toc-entry level="section">Sec</toc-entry>

											<toc-entry level="section">22501. Definitions</toc-entry>

											<toc-entry level="section">22502. Authority</toc-entry>

											<toc-entry level="section">22503. Purposes</toc-entry>

											<toc-entry level="section">22504. Transparency; coordination;

				  review</toc-entry>

											<toc-entry level="section">22505. Content</toc-entry>

											<toc-entry level="section">22506. Review</toc-entry>

										</toc>

									</subsection></section><section id="ID625FD02DB4F140B1868BEC1EEAE0BB18"><enum>22501.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subchapter:</text>

									<paragraph id="IDC7E5128086B74FEB81AA4FC64378FB4D"><enum>(1)</enum><header>Private

				benefit</header>

										<subparagraph id="IDE805F89D0EFE4E83BFBE469C65E52266"><enum>(A)</enum><header>In

				general</header><text>The term <term>private benefit</term>—</text>

											<clause id="IDD07E7F321E5D421A8A2A205E9BF257E5"><enum>(i)</enum><text>means a benefit

				accrued to a person or private entity, other than the National Railroad

				Passenger Corporation, that directly improves the economic and competitive

				condition of that person or entity through improved assets, cost reductions,

				service improvements, or any other means as defined by the Secretary;

				and</text>

											</clause><clause id="ID04A3C07131924092942F3B87139B16D3"><enum>(ii)</enum><text>shall be

				determined on a project-by-project basis, based upon an agreement between the

				parties.</text>

											</clause></subparagraph><subparagraph id="IDEB295A6385254775A9CC54F8CC55E7CD"><enum>(B)</enum><header>Consultation</header><text>The

				Secretary may seek the advice of the States and rail carriers in further

				defining this term.</text>

										</subparagraph></paragraph><paragraph id="ID29B4126F7BE749BF833A5F1BFB148748"><enum>(2)</enum><header>Public

				benefit</header>

										<subparagraph id="IDF3FDA804D1C84E7987A9897F09434F03"><enum>(A)</enum><header>In

				general</header><text>The term <term>public benefit</term>—</text>

											<clause id="IDC170ADAC38AD48B0960AFE1ED95F6DD6"><enum>(i)</enum><text>means a benefit

				accrued to the public in the form of enhanced mobility of people or goods,

				environmental protection or enhancement, congestion mitigation, enhanced trade

				and economic development, improved air quality or land use, more efficient

				energy use, enhanced public safety or security, reduction of public

				expenditures due to improved transportation efficiency or infrastructure

				preservation, and any other positive community effects as defined by the

				Secretary; and</text>

											</clause><clause id="ID521A8CB22DC14BA0BABA8A68F75A4CBA"><enum>(ii)</enum><text>shall be

				determined on a project-by-project basis, based upon an agreement between the

				parties.</text>

											</clause></subparagraph><subparagraph id="ID1C115F4EAAC944978CAC9645BB2A66CD"><enum>(B)</enum><header>Consultation</header><text>The

				Secretary may seek the advice of the States and rail carriers in further

				defining this term.</text>

										</subparagraph></paragraph><paragraph id="ID708FA27D3A214117BFD64557FD65C3A2"><enum>(3)</enum><header>State</header><text>The

				term <term>State</term> means any of the 50 States and the District of

				Columbia.</text>

									</paragraph><paragraph id="ID6EB1691B79214AFD8695D5D8C241A7DF"><enum>(4)</enum><header>State rail

				transportation authority</header><text>The term <term>State rail transportation

				authority</term> means the State agency or official responsible under the

				direction of the Governor of the State or a State law for preparation,

				maintenance, coordination, and administration of the State rail

				plan.</text>

									</paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>

							<quoted-block id="ID5CADAD1C44CF40AAB61DA7D4DE41399F" style="USC">

								<section id="ID411F3DC613544BD09313A2E99947BAF9"><enum>22502.</enum><header>Authority</header>

									<subsection id="ID656883DC6B1D45EB8405E2741F4D9129"><enum>(a)</enum><header>In

				General</header><text>Each State may prepare and maintain a State rail plan in

				accordance with the provisions of this subchapter.</text>

									</subsection><subsection id="ID45D2C906E00143DFBDF80B5CD3BE9AE8"><enum>(b)</enum><header>Requirements</header><text>For

				the preparation and periodic revision of a State rail plan, a State

				shall—</text>

										<paragraph id="ID7C76DC4497694860BF82843F5157AFC5"><enum>(1)</enum><text>establish or

				designate a State rail transportation authority to prepare, maintain,

				coordinate, and administer the plan;</text>

										</paragraph><paragraph id="IDC0ABF7E6B83A49E3AF235CC9D42723B2"><enum>(2)</enum><text>establish or

				designate a State rail plan approval authority to approve the plan;</text>

										</paragraph><paragraph id="ID019F547300394B8EAC6EE9DB4E0D6C9C"><enum>(3)</enum><text>submit the

				State’s approved plan to the Secretary of Transportation for review; and</text>

										</paragraph><paragraph id="ID565078F62AD44C449DA61BECDA905474"><enum>(4)</enum><text>revise and

				resubmit a State-approved plan no less frequently than once every 5 years for

				reapproval by the Secretary.</text>

										</paragraph></subsection></section><section id="IDBBECF14AEC1143C4A84BF0AA26E3A81C"><enum>22503.</enum><header>Purposes</header>

									<subsection id="ID2AE97B78BA2D495689F34C8BB957AC78"><enum>(a)</enum><header>Purposes</header><text>The

				purposes of a State rail plan are as follows:</text>

										<paragraph id="ID99A19423AA0947FDB803076A4B3AA8E5"><enum>(1)</enum><text>To set forth

				State policy involving freight and passenger rail transportation, including

				commuter rail operations, in the State.</text>

										</paragraph><paragraph id="ID5EB7BDF6852F4460898CE8CE7E6B9C48"><enum>(2)</enum><text>To establish the

				period covered by the State rail plan.</text>

										</paragraph><paragraph id="IDA0BDD2C04C1F45F1AB77C300FEBD8932"><enum>(3)</enum><text>To present

				priorities and strategies to enhance rail service in the State that benefits

				the public.</text>

										</paragraph><paragraph id="IDB695848CE52C4B659236D10897A8EBB1"><enum>(4)</enum><text>To serve as the

				basis for Federal and State rail investments within the State.</text>

										</paragraph></subsection><subsection id="ID94585239D7984DEEB7EB244DA5F4AE8B"><enum>(b)</enum><header>Coordination</header><text>A

				State rail plan shall be coordinated with other State transportation planning

				goals and programs and set forth rail transportation’s role within the State

				transportation system.</text>

									</subsection></section><section id="ID2D8A63407C41426B9DB429D917FEDC7E"><enum>22504.</enum><header>Transparency;

				coordination; review</header>

									<subsection id="ID348BBD388D6B48669D242A64CE58059C"><enum>(a)</enum><header>Preparation</header><text>A

				State shall provide adequate and reasonable notice and opportunity for comment

				and other input to the public, rail carriers, commuter and transit authorities

				operating in, or affected by rail operations within the State, units of local

				government, and other interested parties in the preparation and review of its

				State rail plan.</text>

									</subsection><subsection id="IDC33A150FBD1A41C19EB29905D5AE6428"><enum>(b)</enum><header>Intergovernmental

				Coordination</header><text>A State shall review the freight and passenger rail

				service activities and initiatives by regional planning agencies, regional

				transportation authorities, and municipalities within the State, or in the

				region in which the State is located, while preparing the plan, and shall

				include any recommendations made by such agencies, authorities, and

				municipalities as deemed appropriate by the State.</text>

									</subsection></section><section id="ID2BB65B1FA7884CA6A61A29B2DCDCE63C"><enum>22505.</enum><header>Content</header>

									<subsection id="ID5266FB86B2A4482CB71C8CFC0943C5BF"><enum>(a)</enum><header>In

				General</header><text>Each State rail plan shall contain the following:</text>

										<paragraph id="IDF4D9695134C642D3A08B49EC5FD4CCE3"><enum>(1)</enum><text>An inventory of

				the existing overall rail transportation system and rail services and

				facilities within the State and an analysis of the role of rail transportation

				within the State’s surface transportation system.</text>

										</paragraph><paragraph id="IDF18B6F049E8B4944841106EC74909B37"><enum>(2)</enum><text>A review of all

				rail lines within the State, including proposed high speed rail corridors and

				significant rail line segments not currently in service.</text>

										</paragraph><paragraph id="ID35A77504B0C94322A457583ED2D97C38"><enum>(3)</enum><text>A statement of

				the State’s passenger rail service objectives, including minimum service

				levels, for rail transportation routes in the State.</text>

										</paragraph><paragraph id="IDE453553C7B3B402D893C0CD8C4369681"><enum>(4)</enum><text>A general

				analysis of rail’s transportation, economic, and environmental impacts in the

				State, including congestion mitigation, trade and economic development, air

				quality, land-use, energy-use, and community impacts.</text>

										</paragraph><paragraph id="IDAD2347CFC3144CE1BE09BDCCC6408D91"><enum>(5)</enum><text>A long-range rail

				investment program for current and future freight and passenger infrastructure

				in the State that meets the requirements of subsection (b).</text>

										</paragraph><paragraph id="ID53CF038903E741A28101D233B4EE6DEA"><enum>(6)</enum><text>A statement of

				public financing issues for rail projects and service in the State, including a

				list of current and prospective public capital and operating funding resources,

				public subsidies, State taxation, and other financial policies relating to rail

				infrastructure development.</text>

										</paragraph><paragraph id="ID3CCD477DCB5D457BA0838FAC43F918F4"><enum>(7)</enum><text>An identification

				of rail infrastructure issues within the State that reflects consultation with

				all relevant stake holders.</text>

										</paragraph><paragraph id="ID62D209A3EE834E9A802BB3EEC3F77624"><enum>(8)</enum><text>A review of major

				passenger and freight intermodal rail connections and facilities within the

				State, including seaports, and prioritized options to maximize service

				integration and efficiency between rail and other modes of transportation

				within the State.</text>

										</paragraph><paragraph id="IDBB3EBF92DC4F441499E34A4E6383CC08"><enum>(9)</enum><text>A review of

				publicly funded projects within the State to improve rail transportation safety

				and security, including all major projects funded under section 130 of title

				23.</text>

										</paragraph><paragraph id="ID59B6A533A9E1498EBA3246633AC9C7E9"><enum>(10)</enum><text>A performance

				evaluation of passenger rail services operating in the State, including

				possible improvements in those services, and a description of strategies to

				achieve those improvements.</text>

										</paragraph><paragraph id="ID5A36F565E27447D691E78E41CB3DA3A6"><enum>(11)</enum><text>A compilation of

				studies and reports on high-speed rail corridor development within the State

				not included in a previous plan under this subchapter, and a plan for funding

				any recommended development of such corridors in the State.</text>

										</paragraph><paragraph id="IDDCCFC77F16FC4C9CB3932053D56A231D"><enum>(12)</enum><text>A statement that

				the State is in compliance with the requirements of section 22102.</text>

										</paragraph></subsection><subsection id="ID998A6F65777E4A8C86776F9E1C0AB560"><enum>(b)</enum><header>Long-Range

				Service and Investment Program</header>

										<paragraph id="ID33BE66F476A44658B28DB155BDE0839A"><enum>(1)</enum><header>Program

				content</header><text>A long-range rail investment program included in a State

				rail plan under subsection (a)(5) shall include the following matters:</text>

											<subparagraph id="ID3D2716592EBB44E2A8EA095EB53E1650"><enum>(A)</enum><text>A list of any

				rail capital projects expected to be undertaken or supported in whole or in

				part by the State.</text>

											</subparagraph><subparagraph id="ID300DF0B9EF124B33B6B262E053C8D6C8"><enum>(B)</enum><text>A detailed

				funding plan for those projects.</text>

											</subparagraph></paragraph><paragraph id="ID40236DAA41614CA597F476B06E77DA40"><enum>(2)</enum><header>Project list

				content</header><text>The list of rail capital projects shall contain—</text>

											<subparagraph id="IDC54560E8BDC24A07A5F1F4FDBE7B8A0D"><enum>(A)</enum><text>a description of

				the anticipated public and private benefits of each such project; and</text>

											</subparagraph><subparagraph id="IDFCD74C882A2D4B168A6FB8B8FB727ED8"><enum>(B)</enum><text>a statement of

				the correlation between—</text>

												<clause id="IDB3863D2D459C48F7B5044957106C1C99"><enum>(i)</enum><text>public funding

				contributions for the projects; and</text>

												</clause><clause id="ID755171D6688D4434B373CC91F1FEB4A2"><enum>(ii)</enum><text>the public

				benefits.</text>

												</clause></subparagraph></paragraph><paragraph id="ID08B3118B4D2840ACA9074013ABA7744B"><enum>(3)</enum><header>Considerations

				for project list</header><text>In preparing the list of freight and intercity

				passenger rail capital projects, a State rail transportation authority should

				take into consideration the following matters:</text>

											<subparagraph id="ID8C7BCD361E334AA28EDF5D58EE1384CB"><enum>(A)</enum><text>Contributions

				made by non-Federal and non-State sources through user fees, matching funds, or

				other private capital involvement.</text>

											</subparagraph><subparagraph id="IDE87D47F044764603AAF19D91512E4A3F"><enum>(B)</enum><text>Rail capacity and

				congestion effects.</text>

											</subparagraph><subparagraph id="ID16577D4C749F43528FE557324CD04D7B"><enum>(C)</enum><text>Effects on

				highway, aviation, and maritime capacity, congestion, or safety.</text>

											</subparagraph><subparagraph id="ID808502E9EE484BC3AF62E750B20B3D12"><enum>(D)</enum><text>Regional

				balance.</text>

											</subparagraph><subparagraph id="ID1A6ED4980DD94FC3B855ABD5E635A7B0"><enum>(E)</enum><text>Environmental

				impact.</text>

											</subparagraph><subparagraph id="ID893AEBAE2A4A4CBB86503A6728EE001D"><enum>(F)</enum><text>Economic and

				employment impacts.</text>

											</subparagraph><subparagraph id="ID14512E7F645243CF87925017B03DB116"><enum>(G)</enum><text>Projected

				ridership and other service measures for passenger rail projects.</text>

											</subparagraph></paragraph></subsection></section><section id="ID00FB0DFA005A4C63922D13ED8D2C462D"><enum>22506.</enum><header>Review</header><text display-inline="no-display-inline">The Secretary shall prescribe procedures for

				States to submit State rail plans for review under this title, including

				standardized format and data requirements. State rail plans completed before

				the date of enactment of the Passenger Rail Investment and Improvement Act of

				2005 that substantially meet the requirements of this chapter, as determined by

				the Secretary, shall be deemed by the Secretary to have met the requirements of

				this

				chapter</text>

								</section><after-quoted-block>.</after-quoted-block></quoted-block>

						</paragraph></subsection><subsection id="ID3376318CA40F45BF994E3CBA641A8DA0"><enum>(b)</enum><header>Conforming

			 Amendments</header>

						<paragraph id="ID739A4709465043A58199E9992AF41780"><enum>(1)</enum><text>The table of

			 chapters for the title is amended by inserting the following after the item

			 relating to chapter 223:</text>

							<quoted-block id="IDAC704C378B494882A3B71714344E06CA" style="OLC">

								<paragraph id="ID583715D7C7744219A4A5C63D57C89603"><enum>(2)</enum><text>The chapter

				analysis for subtitle V is amended by inserting the following after the item

				relating to chapter 223:</text>

								</paragraph><section id="ID3025CB41EB2C4493BB97857BB3947DEC"><enum>303.</enum><header>Next

				generation corridor train equipment pool</header>

									<subsection id="ID45A2CB4D5D9D44EE88F127015FBBE589"><enum>(a)</enum><header>In

				General</header><text>Within 180 days after the date of enactment of this Act,

				Amtrak shall establish a Next Generation Corridor Equipment Pool Committee,

				comprised of representatives of Amtrak, the Federal Railroad Administration,

				and interested States. The purpose of the Committee shall be to design, develop

				specifications for, and procure standardized next-generation corridor

				equipment.</text>

									</subsection><subsection id="ID59B742B1BD9F4AB3839906054208C368"><enum>(b)</enum><header>Functions</header><text>The

				Committee may—</text>

										<paragraph id="ID5E567EEBCC784F1D9885B105A17804E8"><enum>(1)</enum><text>determine the

				number of different types of equipment required, taking into account variations

				in operational needs and corridor infrastructure;</text>

										</paragraph><paragraph id="IDC672FE8006614185B55ED5E813A70B53"><enum>(2)</enum><text>establish a pool

				of equipment to be used on corridor routes funded by participating States;

				and</text>

										</paragraph><paragraph id="ID959EA216BC5D4029AEB7353ECD2C2F30"><enum>(3)</enum><text>subject to

				agreements between Amtrak and States, utilize services provided by Amtrak to

				design, maintain and remanufacture

				equipment.</text>

										</paragraph></subsection></section><after-quoted-block></after-quoted-block></quoted-block>

						</paragraph></subsection><subsection id="IDA38D287CC58E4B8F8C0C88E83D2B076D"><enum>(c)</enum><header>Cooperative

			 Agreements</header><text>Amtrak and States participating in the Committee may

			 enter into agreements for the funding, procurement, remanufacture, ownership

			 and management of corridor equipment, including equipment currently owned or

			 leased by Amtrak and next-generation corridor equipment acquired as a result of

			 the Committee’s actions, and may establish a corporation, which may be owned or

			 jointly-owned by Amtrak, participating States or other entities, to perform

			 these functions.</text>

					</subsection><subsection id="IDBE03F02F311A4A9BBDC7B7E657C31BA2"><enum>(d)</enum><header>Funding</header><text>In

			 addition to the authorization provided in section 105 of this division, capital

			 projects to carry out the purposes of this section shall be eligible for grants

			 made pursuant to chapter 244 of title 49, United States Code.</text>

					</subsection></section><section id="ID95F34A3A5B0E48BEB601FA12D7F01BBD"><enum>304.</enum><header>Federal rail

			 policy</header><text display-inline="no-display-inline">Section 103 is

			 amended—</text>

					<paragraph id="ID293117D499394D4B86E200A384152D23"><enum>(1)</enum><text>by inserting

			 <quote><header-in-text>In General</header-in-text>.—</quote> before <quote>The

			 Federal</quote> in subsection (a);</text>

					</paragraph><paragraph id="ID90E766A63F7D4ECCB455D023747C7BBD"><enum>(2)</enum><text>by striking the

			 second and third sentences of subsection (a);</text>

					</paragraph><paragraph id="IDF33C37BB8A4B495186FF443AC845C270"><enum>(3)</enum><text>by inserting

			 <quote><header-in-text>Administrator.—</header-in-text></quote> before

			 <quote>The head</quote> in subsection (b);</text>

					</paragraph><paragraph id="ID1252BDE719DC483883DD1B92177F5F6E"><enum>(4)</enum><text>by redesignating

			 subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively

			 and by inserting after subsection (b) the following:</text>

						<quoted-block id="IDE3D78E5D63704B29AB209564CC838E8C" style="OLC">

							<subsection id="IDD5D07F86447A4EEA9B439BB487B9EA9A"><enum>(c)</enum><header>Safety</header><text>To

				carry out all railroad safety laws of the United States, the Administration is

				divided on a geographical basis into at least 8 safety offices. The Secretary

				of Transportation is responsible for all acts taken under those laws and for

				ensuring that the laws are uniformly administered and enforced among the safety

				offices.</text>

							</subsection><after-quoted-block>;</after-quoted-block></quoted-block>

					</paragraph><paragraph id="ID9C2C85028920439F9C51DDD75D396ADE"><enum>(5)</enum><text>by inserting

			 <quote><header-in-text>Powers and Duties.—</header-in-text></quote> before

			 <quote>The</quote> in subsection (d), as redesignated;</text>

					</paragraph><paragraph id="ID9F7BFCA416344AC3ACACDCC5BF8FAC52"><enum>(6)</enum><text>by striking

			 <quote>and</quote> after the semicolon in paragraph (1) of subsection (d), as

			 redesignated;</text>

					</paragraph><paragraph id="IDEFF038E3F4B347EE9687E7E61185BE6C"><enum>(7)</enum><text>by redesignating

			 paragraph (2) of subsection (d), as redesignated, as paragraph (3) and

			 inserting after paragraph (1) the following:</text>

						<quoted-block id="IDC9A1619C700B4822A726513936AC9F4F" style="OLC">

							<paragraph id="ID71B81EB1F7E848C2B425C8BDE62980E4"><enum>(2)</enum><text>the duties and

				powers related to railroad policy and development under subsection (e);

				and</text>

							</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>

					</paragraph><paragraph id="ID3D00A8C353054274B0757C92E95B4BF4"><enum>(8)</enum><text>by inserting

			 <quote><header-in-text>Transfers of Duty.—</header-in-text></quote> before

			 <quote>A duty</quote> in subsection (e), as redesignated;</text>

					</paragraph><paragraph id="ID574A2605685D4176BEFA845B40C6CF08"><enum>(9)</enum><text>by inserting

			 <quote><header-in-text>Contracts, grants, leases, cooperative agreements, and

			 similar transactions</header-in-text>.—</quote> before <quote>Subject</quote>

			 in subsection (f), as redesignated;</text>

					</paragraph><paragraph id="ID444812713FCF4B9C906E464DDB94EFDE"><enum>(10)</enum><text>by striking the

			 last sentence in subsection (f), as redesignated; and</text>

					</paragraph><paragraph id="ID9468C0BCC2554E55A4056E2FE95613F0"><enum>(11)</enum><text>by adding at the

			 end the following:</text>

						<quoted-block id="ID8741FCA75C1C4F34952F79344236DDCE" style="OLC">

							<subsection id="ID3187AD29DA25450AAFBBB6E9DFB773E8"><enum>(g)</enum><header>Additional

				Duties of the Administrator</header><text>The Administrator shall—</text>

								<paragraph id="IDBAFECA0176714D9BAC3CDDD6CE2148EB"><enum>(1)</enum><text>provide

				assistance to States in developing State rail plans prepared under chapter 225

				and review all State rail plans submitted under that section;</text>

								</paragraph><paragraph id="ID3552C0C6B1424E4784370BB226995F64"><enum>(2)</enum><text>develop a long

				range national rail plan that is consistent with approved State rail plans and

				the rail needs of the Nation, as determined by the Secretary in order to

				promote an integrated, cohesive, efficient, and optimized national rail system

				for the movement of goods and people;</text>

								</paragraph><paragraph id="ID1B09941CEA3C42248BC6CCF3203148D4"><enum>(3)</enum><text>develop a

				preliminary national rail plan within a year after the date of enactment of the

				Passenger Rail Investment and Improvement Act of 2005;</text>

								</paragraph><paragraph id="ID08EA35018AB14EBB97BD70CE4EF66A52"><enum>(4)</enum><text>develop and

				enhance partnerships with the freight and passenger railroad industry, States,

				and the public concerning rail development;</text>

								</paragraph><paragraph id="ID0CEBA4020E13438DAEB63BA64B5341B3"><enum>(5)</enum><text>support rail

				intermodal development and high-speed rail development, including high speed

				rail planning;</text>

								</paragraph><paragraph id="ID5F764AA49DC545029B35307A581EC710"><enum>(6)</enum><text>ensure that

				programs and initiatives developed under this section benefit the public and

				work toward achieving regional and national transportation goals; and</text>

								</paragraph><paragraph id="ID6488409E8A9244CB8423AD9FB736E9DE"><enum>(7)</enum><text>facilitate and

				coordinate efforts to assist freight and passenger rail carriers, transit

				agencies and authorities, municipalities, and States in passenger-freight

				service integration on shared rights of way by providing neutral assistance at

				the joint request of affected rail service providers and infrastructure owners

				relating to operations and capacity analysis, capital requirements, operating

				costs, and other research and planning related to corridors shared by passenger

				or commuter rail service and freight rail operations.</text>

								</paragraph></subsection><subsection id="ID9CD12B61669A41329061CDBCBA9CFFBD"><enum>(h)</enum><header>Performance

				Goals and Reports</header>

								<paragraph id="IDEA7698F93F6349CEBE5A93E999D8AA70"><enum>(1)</enum><header>Performance

				goals</header><text>In conjunction with the objectives established and

				activities undertaken under section 103(e) of this title, the Administrator

				shall develop a schedule for achieving specific, measurable performance

				goals.</text>

								</paragraph><paragraph id="IDB9F743081DC84CE599857A83AB27D8B1"><enum>(2)</enum><header>Resource

				needs</header><text>The strategy and annual plans shall include estimates of

				the funds and staff resources needed to accomplish each goal and the additional

				duties required under section 103(e).</text>

								</paragraph><paragraph id="ID2991B6438B93445D8EFB364C5C235D82"><enum>(3)</enum><header>Submission with

				president’s budget</header><text>Beginning with fiscal year 2007 and each

				fiscal year thereafter, the Secretary shall submit to Congress, at the same

				time as the President’s budget submission, the Administration’s performance

				goals and schedule developed under paragraph (1), including an assessment of

				the progress of the Administration toward achieving its performance

				goals.</text>

								</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>

					</paragraph></section><section id="IDF6EEEA95BEC345888A31C0418AE3EEBE"><enum>305.</enum><header>Rail

			 cooperative research Program</header>

					<subsection id="ID642B5665A3F44047A8326B6E3DB98C5B"><enum>(a)</enum><header>Establishment

			 and content</header><text>Chapter 249 is amended by adding at the end the

			 following:</text>

						<quoted-block id="IDC1AD803D5D7D4EB1A7EDA3E9027FC9BE" style="USC">

							<section id="ID395B76ABBA7B48069EF63A3DCC19AB6F"><enum>24910.</enum><header>Rail

				cooperative research Program</header>

								<subsection id="ID90C6D74E634741BF8727181B54640B32"><enum>(a)</enum><header>In

				General</header><text>The Secretary shall establish and carry out a rail

				cooperative research program. The program shall—</text>

									<paragraph id="IDCF70563E78794F1380A8E1EF2D4F7E40"><enum>(1)</enum><text>address, among

				other matters, intercity rail passenger and freight rail services, including

				existing rail passenger and freight technologies and speeds, incrementally

				enhanced rail systems and infrastructure, and new high-speed wheel-on-rail

				systems and rail security;</text>

									</paragraph><paragraph id="ID1419FE28EDFB459083662EB6BDB39FEA"><enum>(2)</enum><text>address ways to

				expand the transportation of international trade traffic by rail, enhance the

				efficiency of intermodal interchange at ports and other intermodal terminals,

				and increase capacity and availability of rail service for seasonal freight

				needs;</text>

									</paragraph><paragraph id="IDB830D7B72C8A47D196241350F0E13E1F"><enum>(3)</enum><text>consider research

				on the interconnectedness of commuter rail, passenger rail, freight rail, and

				other rail networks; and</text>

									</paragraph><paragraph id="ID2A2030D5E3E44E7BA310256FE66B789D"><enum>(4)</enum><text>give

				consideration to regional concerns regarding rail passenger and freight

				transportation, including meeting research needs common to designated

				high-speed corridors, long-distance rail services, and regional intercity rail

				corridors, projects, and entities.</text>

									</paragraph></subsection><subsection id="IDE66559430DA14EC2BC530B25C460BB81"><enum>(b)</enum><header>Content</header><text>The

				program to be carried out under this section shall include research

				designed—</text>

									<paragraph id="IDC8BAF550C36041DD8551640837D87758"><enum>(1)</enum><text>to identify the

				unique aspects and attributes of rail passenger and freight service;</text>

									</paragraph><paragraph id="ID9A693B30194F450EBFEDB25313E50E97"><enum>(2)</enum><text>to develop more

				accurate models for evaluating the impact of rail passenger and freight

				service, including the effects on highway and airport and airway congestion,

				environmental quality, and energy consumption;</text>

									</paragraph><paragraph id="IDEAF4671664644CFDB67A3EFACE574E01"><enum>(3)</enum><text>to develop a

				better understanding of modal choice as it affects rail passenger and freight

				transportation, including development of better models to predict

				utilization;</text>

									</paragraph><paragraph id="IDADC09B01796D4D0D830328EF59580DE7"><enum>(4)</enum><text>to recommend

				priorities for technology demonstration and development;</text>

									</paragraph><paragraph id="ID243D530307B9484DA07E5024F51C7FB9"><enum>(5)</enum><text>to meet

				additional priorities as determined by the advisory board established under

				subsection (c), including any recommendations made by the National Research

				Council;</text>

									</paragraph><paragraph id="ID0F276A73DCE04156A662D671AFD65DE1"><enum>(6)</enum><text>to explore

				improvements in management, financing, and institutional structures;</text>

									</paragraph><paragraph id="IDD2EBFE20F3404FFFB19F08DD713E93E1"><enum>(7)</enum><text>to address rail

				capacity constraints that affect passenger and freight rail service through a

				wide variety of options, ranging from operating improvements to dedicated new

				infrastructure, taking into account the impact of such options on

				operations;</text>

									</paragraph><paragraph id="ID83D775726959450B9B8793D494DCE9F2"><enum>(8)</enum><text>to improve

				maintenance, operations, customer service, or other aspects of intercity rail

				passenger and freight service;</text>

									</paragraph><paragraph id="ID29D8DD6EBAB943D48F036247ECB1E95B"><enum>(9)</enum><text>to recommend

				objective methodologies for determining intercity passenger rail routes and

				services, including the establishment of new routes, the elimination of

				existing routes, and the contraction or expansion of services or frequencies

				over such routes;</text>

									</paragraph><paragraph id="ID04050EDB23C44E00B23023C441563ADD"><enum>(10)</enum><text>to review the

				impact of equipment and operational safety standards on the further development

				of high speed passenger rail operations connected to or integrated with

				non-high speed freight or passenger rail operations; and</text>

									</paragraph><paragraph id="ID34BE9FB0B9584C4BA5232F8386515742"><enum>(11)</enum><text>to recommend any

				legislative or regulatory changes necessary to foster further development and

				implementation of high speed passenger rail operations while ensuring the

				safety of such operations that are connected to or integrated with non-high

				speed freight or passenger rail operations.</text>

									</paragraph></subsection><subsection id="IDAF432D7524BE46CD8D7453141E672011"><enum>(c)</enum><header>Advisory

				Board</header>

									<paragraph id="ID7BF791308E5D48649BE4C5586901BB42"><enum>(1)</enum><header>Establishment</header><text>In

				consultation with the heads of appropriate Federal departments and agencies,

				the Secretary shall establish an advisory board to recommend research,

				technology, and technology transfer activities related to rail passenger and

				freight transportation.</text>

									</paragraph><paragraph id="ID619EE8438BD64947BEEC99D11BF23B1A"><enum>(2)</enum><header>Membership</header><text>The

				advisory board shall include—</text>

										<subparagraph id="ID18DDF0BB03FA42D9A6FE100DC9506D03"><enum>(A)</enum><text>representatives

				of State transportation agencies;</text>

										</subparagraph><subparagraph id="IDF7077DFC679344ABA03BB8B1A9A5F852"><enum>(B)</enum><text>transportation

				and environmental economists, scientists, and engineers; and</text>

										</subparagraph><subparagraph id="IDD8D32803217F46D79D554BAF66DC65A8"><enum>(C)</enum><text>representatives

				of Amtrak, the Alaska Railroad, freight railroads, transit operating agencies,

				intercity rail passenger agencies, railway labor organizations, and

				environmental organizations.</text>

										</subparagraph></paragraph></subsection><subsection id="ID7124E2A9761D4BE68BE1017A78A51704"><enum>(d)</enum><header>National

				Academy of Sciences</header><text>The Secretary may make grants to, and enter

				into cooperative agreements with, the National Academy of Sciences to carry out

				such activities relating to the research, technology, and technology transfer

				activities described in subsection (b) as the Secretary deems

				appropriate.</text>

								</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="IDCDDE7F22832241DB9AC2A9706B90A471"><enum>(b)</enum><header>Clerical

			 Amendment</header><text>The chapter analysis for chapter 249 is amended by

			 adding at the end the following:</text>

						<quoted-block id="ID8409042F010C442A8490D3828661756A" style="OLC">

							<toc regeneration="no-regeneration">

								<toc-entry level="section">24910. Rail cooperative research

				program</toc-entry>

							</toc>

							<after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection></section></title><title id="IDA003349C68B240228FC43C4704BF7117"><enum>IV</enum><header>PASSENGER RAIL

			 SECURITY AND SAFETY</header>

				<section id="ID5E81BD9B36AD4134A87ED22E47A6084C"><enum>401.</enum><header>Systemwide

			 Amtrak security upgrades</header>

					<subsection id="ID48F1A0E1E4464DFCBD20879E25F57BCA"><enum>(a)</enum><header>In

			 General</header><text>Subject to subsection (c) the Secretary of Homeland

			 Security, in consultation with the Secretary of Transportation, is authorized

			 to make grants to Amtrak—</text>

						<paragraph id="ID7B3B52F339F7499EA72BA614650937D6"><enum>(1)</enum><text>to secure major

			 tunnel access points and ensure tunnel integrity in New York, Baltimore, and

			 Washington, DC;</text>

						</paragraph><paragraph id="ID5133727CCCEA4DE5B4C918FBC949BB9F"><enum>(2)</enum><text>to secure Amtrak

			 trains;</text>

						</paragraph><paragraph id="ID82AF3824488245799E1DBAFD61F64322"><enum>(3)</enum><text>to secure Amtrak

			 stations;</text>

						</paragraph><paragraph id="ID06B69480EECC475CBE9C88797168129F"><enum>(4)</enum><text>to obtain a watch

			 list identification system approved by the Secretary;</text>

						</paragraph><paragraph id="ID7E9151A43F1B4158ABFA4224DCBB0576"><enum>(5)</enum><text>to obtain train

			 tracking and interoperable communications systems that are coordinated to the

			 maximum extent possible;</text>

						</paragraph><paragraph id="ID0D502B14A31D47E3A8DD1FDDA4D4D48A"><enum>(6)</enum><text>to hire

			 additional police and security officers, including canine units;</text>

						</paragraph><paragraph id="ID7C71EFB409AE474696A2193F6BB0B5C7"><enum>(7)</enum><text>to expand

			 emergency preparedness efforts; and</text>

						</paragraph><paragraph id="IDC172B56D82684FCCBB23922F8E6FC325"><enum>(8)</enum><text>for employee

			 security training.</text>

						</paragraph></subsection><subsection id="ID59B58065ADFF413996897F6D0BFD1637"><enum>(b)</enum><header>Conditions</header><text>The

			 Secretary of Transportation shall disburse funds to Amtrak provided under

			 subsection (a) for projects contained in a systemwide security plan approved by

			 the Secretary of Homeland Security. The plan shall include appropriate measures

			 to address security awareness, emergency response, and passenger evacuation

			 training.</text>

					</subsection><subsection id="ID10EA22A52BDD4DABBA38ADCB855AA684"><enum>(c)</enum><header>Equitable

			 Geographic Allocation</header><text>The Secretary shall ensure that, subject to

			 meeting the highest security needs on Amtrak’s entire system, stations and

			 facilities located outside of the Northeast Corridor receive an equitable share

			 of the security funds authorized by this section.</text>

					</subsection><subsection id="ID0FBC98892C9B43788D7BCD4B4B9FD916"><enum>(d)</enum><header>Authorization

			 of Appropriations</header><text>There are authorized to be appropriated to the

			 Secretary of Homeland Security to carry out this section—</text>

						<paragraph id="ID2706E4083A124B9D9950EDFC9A825EE5"><enum>(1)</enum><text>$63,500,000 for

			 fiscal year 2006;</text>

						</paragraph><paragraph id="ID5061F0C15B6247849475FCFC37A3D616"><enum>(2)</enum><text>$30,000,000 for

			 fiscal year 2007; and</text>

						</paragraph><paragraph id="IDCE8719D1E1A84C4298CF9DE252F2EC3B"><enum>(3)</enum><text>$30,000,000 for

			 fiscal year 2008.</text>

						</paragraph><continuation-text continuation-text-level="subsection">Amounts

			 appropriated pursuant to this subsection shall remain available until

			 expended.</continuation-text></subsection></section><section id="IDAE16FA411F37486897284412417A0B39"><enum>402.</enum><header>Fire and

			 life-safety improvements</header>

					<subsection id="ID8AA0D74CEAF947DEA5D20C69BF841599"><enum>(a)</enum><header>Life-safety

			 Needs</header><text>The Secretary of Transportation is authorized to make

			 grants to Amtrak for the purpose of making fire and life-safety improvements to

			 Amtrak tunnels on the Northeast Corridor in New York, NY, Baltimore, MD, and

			 Washington, DC.</text>

					</subsection><subsection id="ID13251D388D5A486FBA107D9D8E6B4098"><enum>(b)</enum><header>Authorization

			 of Appropriations</header><text>There are authorized to be appropriated to the

			 Secretary of Transportation for the purposes of carrying out subsection (a) the

			 following amounts:</text>

						<paragraph id="IDEBE4C6DFDB5947E1AF4907FFA4310F97"><enum>(1)</enum><text>For the 6 New

			 York tunnels to provide ventilation, electrical, and fire safety technology

			 upgrades, emergency communication and lighting systems, and emergency access

			 and egress for passengers—</text>

							<subparagraph id="IDBA1C30A135AF43169652146515872F15"><enum>(A)</enum><text>$190,000,000 for

			 fiscal year 2006;</text>

							</subparagraph><subparagraph id="ID3F17BEF98CA64BB59DB4E97B9D9FC563"><enum>(B)</enum><text>$190,000,000 for

			 fiscal year 2007;</text>

							</subparagraph><subparagraph id="ID17449093881E4D15900972806D7C9832"><enum>(C)</enum><text>$190,000,000 for

			 fiscal year 2008;</text>

							</subparagraph></paragraph><paragraph id="IDA451D267E85A474983F6B18D0475DF89"><enum>(2)</enum><text>For the Baltimore

			 &amp; Potomac tunnel and the Union tunnel, together, to provide adequate

			 drainage, ventilation, communication, lighting, and passenger egress

			 upgrades—</text>

							<subparagraph id="ID17BE3A2BD0634602AAF27F988785241D"><enum>(A)</enum><text>$19,000,000 for

			 fiscal year 2006;</text>

							</subparagraph><subparagraph id="ID063B2413C19E4F3D8C9C4B5EF0C36F96"><enum>(B)</enum><text>$19,000,000 for

			 fiscal year 2007;</text>

							</subparagraph><subparagraph id="ID879C0771F9244F9D99EB138A1403CA22"><enum>(C)</enum><text>$19,000,000 for

			 fiscal year 2008;</text>

							</subparagraph></paragraph><paragraph id="IDF1BAD9CC98DE44D1B17A95D80D1F1447"><enum>(3)</enum><text>For the

			 Washington, DC, Union Station tunnels to improve ventilation, communication,

			 lighting, and passenger egress upgrades—</text>

							<subparagraph id="ID37B942D3FD344F73AC3BA83C68389AE4"><enum>(A)</enum><text>$13,333,000 for

			 fiscal year 2006;</text>

							</subparagraph><subparagraph id="ID4055DF8ED5FC494998A3139864B0A5A5"><enum>(B)</enum><text>$13,333,000 for

			 fiscal year 2007;</text>

							</subparagraph><subparagraph id="ID8909FC6DB23C4B86AA98C62CFF0C036C"><enum>(C)</enum><text>$13,333,000 for

			 fiscal year 2008;</text>

							</subparagraph></paragraph></subsection><subsection id="IDBAB44053B1254DBE82DE3AF8FD6341AE"><enum>(c)</enum><header>Infrastructure

			 Upgrades</header><text>There are authorized to be appropriated to the Secretary

			 of Transportation for fiscal year 2006 $3,000,000 for the preliminary design of

			 options for a new tunnel on a different alignment to augment the capacity of

			 the existing Baltimore tunnels.</text>

					</subsection><subsection id="ID95875E4FD3374D14A9F806AEF5324961"><enum>(d)</enum><header>Availability of

			 Appropriated Funds</header><text>Amounts made available pursuant to this

			 section shall remain available until expended.</text>

					</subsection><subsection id="IDFB13F6EF7C924751B8880C191FF69FCC"><enum>(e)</enum><header>Plans

			 Required</header><text>The Secretary may not make amounts available to Amtrak

			 for obligation or expenditure under subsection (a)—</text>

						<paragraph id="ID1E640BBFCCAF4795958C5D9114599863"><enum>(1)</enum><text>until Amtrak has

			 submitted to the Secretary, and the Secretary has approved, an engineering and

			 financial plan for such projects; and</text>

						</paragraph><paragraph id="IDFED5F1CF6DC6496AB3FF02E348F274DB"><enum>(2)</enum><text>unless, for each

			 project funded pursuant to this section, the Secretary has approved a project

			 management plan prepared by Amtrak addressing appropriate project budget,

			 construction schedule, recipient staff organization, document control and

			 record keeping, change order procedure, quality control and assurance, periodic

			 plan updates, and periodic status reports.</text>

						</paragraph></subsection><subsection id="IDB9D2F97BDF28488CB2454C56BFE0E9B7"><enum>(f)</enum><header>Review of

			 Plans</header><text>The Secretary of Transportation shall complete the review

			 of the plans required by paragraphs (1) and (2) of subsection (e) and approve

			 or disapprove the plans within 45 days after the date on which each such plan

			 is submitted by Amtrak. If the Secretary determines that a plan is incomplete

			 or deficient, the Secretary shall notify Amtrak of the incomplete items or

			 deficiencies and Amtrak shall, within 30 days after receiving the Secretary’s

			 notification, submit a modified plan for the Secretary’s review. Within 15 days

			 after receiving additional information on items previously included in the

			 plan, and within 45 days after receiving items newly included in a modified

			 plan, the Secretary shall either approve the modified plan, or, if the

			 Secretary finds the plan is still incomplete or deficient, the Secretary shall

			 identify in writing to the Senate Committee on Commerce, Science, and

			 Transportation and the House of Representatives Committee on Transportation and

			 Infrastructure the portions of the plan the Secretary finds incomplete or

			 deficient, approve all other portions of the plan, obligate the funds

			 associated with those other portions, and execute an agreement with Amtrak

			 within 15 days thereafter on a process for resolving the remaining portions of

			 the plan.</text>

					</subsection><subsection id="ID8186A0C47D914B30B8D76BB10C937A3F"><enum>(g)</enum><header>Financial

			 Contribution From Other Tunnel Users</header><text>The Secretary shall, taking

			 into account the need for the timely completion of all portions of the tunnel

			 projects described in subsection (a)—</text>

						<paragraph id="ID01B18DE362C549A2820ED6FDBBA71FD4"><enum>(1)</enum><text>consider the

			 extent to which rail carriers other than Amtrak use or plan to use the

			 tunnels;</text>

						</paragraph><paragraph id="ID13F6847197E04B6A8C7EF3079973BC81"><enum>(2)</enum><text>consider the

			 feasibility of seeking a financial contribution from those other rail carriers

			 toward the costs of the projects; and</text>

						</paragraph><paragraph id="ID5C07B932FD034F88BDF68F5FB9A42C01"><enum>(3)</enum><text>obtain financial

			 contributions or commitments from such other rail carriers at levels reflecting

			 the extent of their use or planned use of the tunnels, if feasible.</text>

						</paragraph></subsection></section><section id="ID6C7B86563C8E4773B6BB52FE355DE8BD"><enum>403.</enum><header>Amtrak plan to

			 assist families of passengers involved in rail passenger accidents</header>

					<subsection id="ID7A51BCBD0C5C42908C350778205D9B49"><enum>(a)</enum><header>In

			 General</header><text>Chapter 243 of title 49, United States Code, is amended

			 by adding at the end the following:</text>

						<quoted-block id="IDDEB879B14F144761B0C6BD70CD22B676" style="USC">

							<section id="ID3DED04B97F6546E59A041CE295DFCE86"><enum>24316.</enum><header>Plans to

				address needs of families of passengers involved in rail passenger

				accidents</header>

								<subsection id="ID97E93B8CCF7E440E90DA33631BC0026F"><enum>(a)</enum><header>Submission of

				Plan</header><text>Not later than 6 months after the date of the enactment of

				the Passenger Rail Investment and Improvement Act of 2005, Amtrak shall submit

				to the Chairman of the National Transportation Safety Board and the Secretary

				of Transportation a plan for addressing the needs of the families of passengers

				involved in any rail passenger accident involving an Amtrak intercity train and

				resulting in a loss of life.</text>

								</subsection><subsection id="ID453D1487560D4DEAA57F2DAF5B5E462F"><enum>(b)</enum><header>Contents of

				Plans</header><text>The plan to be submitted by Amtrak under subsection (a)

				shall include, at a minimum, the following:</text>

									<paragraph id="ID109BC3DD762A494DA93F9171C5D22725"><enum>(1)</enum><text>A process by

				which Amtrak will maintain and provide to the National Transportation Safety

				Board and the Secretary of Transportation, immediately upon request, a list

				(which is based on the best available information at the time of the request)

				of the names of the passengers aboard the train (whether or not such names have

				been verified), and will periodically update the list. The plan shall include a

				procedure, with respect to unreserved trains and passengers not holding

				reservations on other trains, for Amtrak to use reasonable efforts to ascertain

				the number and names of passengers aboard a train involved in an

				accident.</text>

									</paragraph><paragraph id="IDA1C9892B5E2F44F28C16ACDE1B730131"><enum>(2)</enum><text>A plan for

				creating and publicizing a reliable, toll-free telephone number within 4 hours

				after such an accident occurs, and for providing staff, to handle calls from

				the families of the passengers.</text>

									</paragraph><paragraph id="ID034C98A2CB0E46BF8EB463DAB3F28413"><enum>(3)</enum><text>A process for

				notifying the families of the passengers, before providing any public notice of

				the names of the passengers, by suitably trained individuals.</text>

									</paragraph><paragraph id="ID5E7A1D25C15F4D6DA7A24A532C48E988"><enum>(4)</enum><text>A process for

				providing the notice described in paragraph (2) to the family of a passenger as

				soon as Amtrak has verified that the passenger was aboard the train (whether or

				not the names of all of the passengers have been verified).</text>

									</paragraph><paragraph id="ID49701879433746AFA9A1D7B84F5032A8"><enum>(5)</enum><text>A process by

				which the family of each passenger will be consulted about the disposition of

				all remains and personal effects of the passenger within Amtrak’s control; that

				any possession of the passenger within Amtrak’s control will be returned to the

				family unless the possession is needed for the accident investigation or any

				criminal investigation; and that any unclaimed possession of a passenger within

				Amtrak’s control will be retained by the rail passenger carrier for at least 18

				months.</text>

									</paragraph><paragraph id="ID998A0A99A7974B2BAD831D81EE8D1BBE"><enum>(6)</enum><text>A process by

				which the treatment of the families of nonrevenue passengers will be the same

				as the treatment of the families of revenue passengers.</text>

									</paragraph><paragraph id="ID078F0E50138C4E81A0B1B4D3D6E420EA"><enum>(7)</enum><text>An assurance that

				Amtrak will provide adequate training to its employees and agents to meet the

				needs of survivors and family members following an accident.</text>

									</paragraph></subsection><subsection id="IDB6F1037948844963885AA71723EE9DDD"><enum>(c)</enum><header>Use of

				Information</header><text>The National Transportation Safety Board, the

				Secretary of Transportation, and Amtrak may not release to any person

				information on a list obtained under subsection (b)(1) but may provide

				information on the list about a passenger to the family of the passenger to the

				extent that the Board or Amtrak considers appropriate.</text>

								</subsection><subsection id="IDB2B92A75957E4FF7BC273800DD046CDF"><enum>(d)</enum><header>Limitation on

				Liability</header><text>Amtrak shall not be liable for damages in any action

				brought in a Federal or State court arising out of the performance of Amtrak in

				preparing or providing a passenger list, or in providing information concerning

				a train reservation, pursuant to a plan submitted by Amtrak under subsection

				(b), unless such liability was caused by Amtrak’s conduct.</text>

								</subsection><subsection id="ID4EB2328ECC93401E9AF61BD8277C0EF1"><enum>(e)</enum><header>Limitation on

				Statutory Construction</header><text>Nothing in this section may be construed

				as limiting the actions that Amtrak may take, or the obligations that Amtrak

				may have, in providing assistance to the families of passengers involved in a

				rail passenger accident.</text>

								</subsection><subsection id="ID27566D5262A748698A07A65CE1C8DBD0"><enum>(f)</enum><header>Funding</header><text>There

				are authorized to be appropriated to the Secretary of Transportation for the

				use of Amtrak $500,000 for fiscal year 2006 to carry out this section. Amounts

				made available pursuant to this subsection shall remain available until

				expended.</text>

								</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection><subsection id="ID1678BBD69F534DC28C2F078B519FB569"><enum>(b)</enum><header>Conforming

			 Amendment</header><text>The chapter analysis for chapter 243 of title 49,

			 United States Code, is amended by adding at the end the following:</text>

						<quoted-block id="IDC6E080D321C34629847C9087FF0A6698" style="OLC">

							<toc regeneration="no-regeneration">

								<toc-entry level="section">24316.Plan to assist families of

				passengers involved in rail passenger

				accidents</toc-entry>

							</toc>

							<after-quoted-block>.</after-quoted-block></quoted-block>

					</subsection></section><section id="ID9C97578FEB474AD4879E2D33D8010E37"><enum>404.</enum><header>Northern

			 border rail passenger report</header><text display-inline="no-display-inline">Within 180 days after the date of enactment

			 of this Act, the Secretary of Transportation, in consultation with the

			 Secretary of Homeland Security, the Assistant Secretary of Homeland Security

			 (Transportation Security Administration), heads of other appropriate Federal

			 departments, and agencies and the National Railroad Passenger Corporation,

			 shall transmit a report to the Senate Committee on Commerce, Science, and

			 Transportation and the House of Representatives Committee on Transportation and

			 Infrastructure that contains—</text>

					<paragraph id="ID383C9739924B405D9D03167CEA40ED43"><enum>(1)</enum><text>a description of

			 the current system for screening passengers and baggage on passenger rail

			 service between the United States and Canada;</text>

					</paragraph><paragraph id="ID86A99344F5E0438397B4F5AE49D3BC29"><enum>(2)</enum><text>an assessment of

			 the current program to provide preclearance of airline passengers between the

			 United States and Canada as outlined in <quote>The Agreement on Air Transport

			 Preclearance between the Government of Canada and the Government of the United

			 States of America</quote>, dated January 18, 2001;</text>

					</paragraph><paragraph id="IDBEA69D7D19A24687A6475BEBE3945255"><enum>(3)</enum><text>an assessment of

			 the current program to provide preclearance of freight railroad traffic between

			 the United States and Canada as outlined in the <quote>Declaration of Principle

			 for the Improved Security of Rail Shipments by Canadian National Railway and

			 Canadian Pacific Railway from Canada to the United States</quote>, dated April

			 2, 2003;</text>

					</paragraph><paragraph id="ID3133E8C54E9E4335A9FE43DDFC845016"><enum>(4)</enum><text>information on

			 progress by the Department of Homeland Security and other Federal agencies

			 towards finalizing a bilateral protocol with Canada that would provide for

			 preclearance of passengers on trains operating between the United States and

			 Canada;</text>

					</paragraph><paragraph id="ID8D22C86F52AA4E82B650847DF517A28D"><enum>(5)</enum><text>a description of

			 legislative, regulatory, budgetary, or policy barriers within the United States

			 Government to providing pre-screened passenger lists for rail passengers

			 traveling between the United States and Canada to the Department of Homeland

			 Security;</text>

					</paragraph><paragraph id="ID233A7382D13F4FD7A8203701BC9B14D8"><enum>(6)</enum><text>a description of

			 the position of the Government of Canada and relevant Canadian agencies with

			 respect to preclearance of such passengers;</text>

					</paragraph><paragraph id="IDC242267DF9A44307B258F206AA7336EA"><enum>(7)</enum><text>a draft of any

			 changes in existing Federal law necessary to provide for pre-screening of such

			 passengers and providing pre-screened passenger lists to the Department of

			 Homeland Security; and</text>

					</paragraph><paragraph id="ID6978BC311ED147408B6BCFE1AD2D4B8F"><enum>(8)</enum><text>an analysis of

			 the feasibility of reinstating United States Customs and Border Patrol rolling

			 inspections onboard international Amtrak trains.</text>

					</paragraph></section><section id="ID4A8F28B8CB8B46BAA2609B115E3163A4"><enum>405.</enum><header>Passenger,

			 baggage, and cargo screening</header>

					<subsection id="ID44B3D008DCBB435D917BDE7BB0BE17D3"><enum>(a)</enum><header>Requirement for

			 Study and Report</header><text>The Secretary of Homeland Security, in

			 cooperation with the Secretary of Transportation through the Assistant

			 Secretary of Homeland Security (Transportation Security Administration) and

			 other appropriate agencies, shall—</text>

						<paragraph id="ID65531E05382747F5929B10650C51EB18"><enum>(1)</enum><text>study the cost

			 and feasibility of requiring security screening for passengers, baggage, and

			 cargo on passenger trains including an analysis of any passenger train

			 screening pilot programs undertaken by the Department of Homeland Security;

			 and</text>

						</paragraph><paragraph id="ID07311DEA837C4080AD15BF4BFB6EAA47"><enum>(2)</enum><text>report the

			 results of the study, together with any recommendations that the Secretary of

			 Homeland Security may have for implementing a rail security screening program

			 to the Senate Committee on Commerce, Science, and Transportation and the House

			 of Representatives Committee on Transportation and Infrastructure within 1 year

			 after the date of enactment of this Act.</text>

						</paragraph></subsection><subsection id="ID482E53DFF8C347D880FCD0B2C5BFC5AA"><enum>(b)</enum><header>Authorization

			 of Appropriations</header><text>There are authorized to be appropriated to the

			 Secretary of Homeland Security $1,000,000 for fiscal year 2006 to carry out

			 this section.</text>

					</subsection></section></title></division></legis-body>

	<attestation>

		<attestation-group>

			<attestation-date date="20051103">Passed the Senate November 3,

			 2005.</attestation-date>

			<role>Secretary.</role>

		</attestation-group>

	</attestation>

</bill>

