1.This Act may be cited as the
Student Aid and Fiscal Responsibility
Act of 2009
.
2.The table of contents
is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Prohibition on earmarks.
Sec. 5. Use of savings for debt reduction.
Title I—Investing in students and families
Subtitle A—Increasing College Access and
Completion
Sec. 101. Federal Pell Grants.
Sec. 102. College Access and Completion Innovation
Fund.
Sec. 103. Investment in historically Black colleges and
universities and other minority-serving institutions.
Sec. 104. Investment in cooperative education.
Sec. 105. Loan forgiveness for servicemembers activated for
duty.
Sec. 106. Veterans Resource Officer Grants.
Sec. 107. Officer Daniel Faulkner Children of Fallen Heroes
Scholarship.
Sec. 108. Teacher Excellence.
Subtitle B—Student Financial Aid Form
Simplification
Sec. 121. General effective date.
Sec. 122. Treatment of assets in need analysis.
Sec. 123. Changes to total income; aid eligibility.
Title II—Student loan reform
Subtitle A—Stafford loan reform
Sec. 201. Federal Family Education Loan
appropriations.
Sec. 202. Scope and duration of Federal loan insurance
program.
Sec. 203. Applicable interest rates.
Sec. 204. Federal payments to reduce student interest
costs.
Sec. 205. Federal PLUS Loans.
Sec. 206. Federal Consolidation Loan.
Sec. 207. Unsubsidized Stafford loans for middle-income
borrowers.
Sec. 208. Loan repayment for civil legal assistance
attorneys.
Sec. 209. Special allowances.
Sec. 210. Revised special allowance calculation.
Sec. 211. Origination of Direct Loans at institutions located
outside the United States.
Sec. 212. Agreements with institutions.
Sec. 213. Terms and conditions of loans.
Sec. 214. Contracts.
Sec. 215. Interest rates.
Sec. 216. Technical assistance to institutions of higher
education.
Sec. 217. Outreach Efforts.
Subtitle B—Perkins loan reform
Sec. 221. Federal Direct Perkins Loans terms and
conditions.
Sec. 222. Authorization of appropriations.
Sec. 223. Allocation of funds.
Sec. 224. Federal Direct Perkins Loan allocation.
Sec. 225. Agreements with institutions of higher
education.
Sec. 226. Student loan information by eligible
institutions.
Sec. 227. Terms of loans.
Sec. 228. Distribution of assets from student loan
funds.
Sec. 229. Implementation of non-title IV revenue
requirement.
Sec. 230. Administrative expenses.
Title III—Modernization, renovation, and repair
Subtitle A—Elementary and Secondary Education
Sec. 301. Definitions.
Chapter 1—Grants for modernization, renovation, or repair of
public school facilities
Sec. 311. Purpose.
Sec. 312. Allocation of funds.
Sec. 313. Allowable uses of funds.
Sec. 314. Priority projects.
Chapter 2—Supplemental grants for Louisiana, Mississippi, and
Alabama
Sec. 321. Purpose.
Sec. 322. Allocation to local educational agencies.
Sec. 323. Allowable uses of funds.
Chapter 3—General provisions
Sec. 331. Impermissible uses of funds.
Sec. 332. Supplement, not supplant.
Sec. 333. Prohibition regarding State aid.
Sec. 334. Maintenance of effort.
Sec. 335. Special rule on contracting.
Sec. 336. Use of American iron, steel, and manufactured
goods.
Sec. 337. Labor standards.
Sec. 338. Charter schools.
Sec. 339. Green schools.
Sec. 340. Reporting.
Sec. 341. Special rules.
Sec. 342. Promotion of employment experiences.
Sec. 343. Advisory Council on Green, High-Performing Public
School Facilities.
Sec. 344. Education regarding projects.
Sec. 345. Availability of funds.
Subtitle B—Higher Education
Sec. 351. Federal assistance for community college
modernization and construction.
Title IV—Early learning challenge fund
Sec. 401. Purpose.
Sec. 402. Programs authorized.
Sec. 403. Quality pathways grants.
Sec. 404. Development grants.
Sec. 405. Research and evaluation.
Sec. 406. Reporting requirements.
Sec. 407. Construction.
Sec. 408. Definitions.
Sec. 409. Availability of funds.
Title V—American Graduation Initiative
Sec. 501. Authorization and appropriation.
Sec. 502. Definitions; grant priority.
Sec. 503. Grants to eligible entities for community college
reform.
Sec. 504. Grants to eligible States for community college
programs.
Sec. 505. National activities.
Title VI—Defund ACORN Act
Sec. 601. Short title.
Sec. 602. Prohibitions on Federal funds and other activities
with respect to certain indicted organizations.
3.Except as otherwise expressly provided,
whenever in this Act 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 Higher
Education Act of 1965 (20 U.S.C. 1001 et seq.).
4.None of the funds
appropriated pursuant to this Act may be used for a Congressional earmark as
defined in clause 9(d) of rule XXI of the Rules of the House of
Representatives.
5.Use of savings
for debt reductionAll savings
in Federal expenditures not otherwise expended as a result of the enactment of
this Act shall be made available for the reduction of the Federal
deficit.
<enum>I</enum><header>Investing in
students and families</header>
<subtitle id="H364466F1E0444707A017115FAB8D10B7"><enum>A</enum><header>Increasing College
Access and Completion</header>
<section id="HAB3E233BF20E48F386170DA9454DEFDC"><enum>101.</enum><header>Federal Pell
Grants</header>
<subsection id="H5CFA68B330904847A7E1FC3C4CCF49C4"><enum>(a)</enum><header>Amount of
grants</header><text display-inline="yes-display-inline">Section 401(b)
(<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C.
1070a(b)</external-xref>) is amended—</text>
<paragraph commented="no" id="H6AF8060EBBA94E6C9E56F958416848BF"><enum>(1)</enum><text>by amending
paragraph (2)(A) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H1137F90F6AAF4519868BBB26C348A278" style="OLC">
<subparagraph commented="no" id="H386C4E0FABFC4E98917D930AF0B97B2C"><enum>(A)</enum><text display-inline="yes-display-inline">The amount of the Federal Pell Grant for a
student eligible under this part shall be—</text>
<clause id="H9CDBA3A18CCF4BAFB31A59AB15EFFB99"><enum>(i)</enum><text>the maximum
Federal Pell Grant, as specified in the last enacted appropriation Act
applicable to that award year, plus</text>
</clause><clause id="H62A47CA0DD564668B1D3B5CDD93EF504"><enum>(ii)</enum><text>the amount of the
increase calculated under paragraph (8)(B) for that year, less</text>
</clause><clause id="HDE85D9FF5F2C4E7AB898AC170DD20794"><enum>(iii)</enum><text>an amount equal
to the amount determined to be the expected family contribution with respect to
that student for that year.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H698C1CA45D0241F0A9AE20BD4D13533D"><enum>(2)</enum><text>by amending
paragraph (8), as amended by the Higher Education Opportunity Act
(<external-xref legal-doc="public-law" parsable-cite="pl/110/315">Public Law
110–315</external-xref>), to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H003249E71C9B42D69207D41EFEC0EBB7" style="OLC">
<paragraph id="H0BC908F84E2D4011A5FB6800A58F0D75"><enum>(8)</enum><header>Additional
funds</header>
<subparagraph id="HF279A88D994449B3A2C2CA572906503D"><enum>(A)</enum><header>In
general</header><text>There are authorized to be appropriated, and there are
appropriated, to carry out
<internal-xref idref="H3611D05D699C4B6293BABBFB18635928" legis-path="(8)(B)">subparagraph (B)</internal-xref> of this paragraph (in
addition to any other amounts appropriated to carry out this section and out of
any money in the Treasury not otherwise appropriated) the following
amounts—</text>
<clause commented="no" id="H84CD07A9197C48688D1EDBCC0AAB8194"><enum>(i)</enum><text>$2,030,000,000 for
fiscal year 2008;</text>
</clause><clause commented="no" id="H289972E4C9C541ECA42B8FAF945247EC"><enum>(ii)</enum><text>$2,733,000,000
for fiscal year 2009; and</text>
</clause><clause id="HD00F0C11F6D941A384C0708DEA70BD6A"><enum>(iii)</enum><text>such sums as may
be necessary for fiscal year 2010 and each subsequent fiscal year to provide
the amount of increase of the maximum Federal Pell Grant required by
<internal-xref idref="HC449BF99188D4D42B45AF3CE1FD82D4F" legis-path="(8)(B)(ii)">clauses (ii)</internal-xref> and
<internal-xref idref="HC7E12BB57E7B4B8CA1C815ACB23AB4C0" legis-path="(8)(B)(iii)">(iii)</internal-xref> of
<internal-xref idref="H3611D05D699C4B6293BABBFB18635928" legis-path="(8)(B)">subparagraph (B)</internal-xref>.</text>
</clause></subparagraph><subparagraph id="H3611D05D699C4B6293BABBFB18635928"><enum>(B)</enum><header>Increase in
Federal Pell Grants</header><text>The amounts made available pursuant to
<internal-xref idref="HF279A88D994449B3A2C2CA572906503D" legis-path="(8)(A)">subparagraph (A)</internal-xref> shall be used to increase
the amount of the maximum Federal Pell Grant for which a student shall be
eligible during an award year, as specified in the last enacted appropriation
Act applicable to that award year, by—</text>
<clause commented="no" id="HC253C85700224395BF977133DDAD104B"><enum>(i)</enum><text>$490 for each of
the award years 2008–2009 and 2009–2010;</text>
</clause><clause commented="no" id="HC449BF99188D4D42B45AF3CE1FD82D4F"><enum>(ii)</enum><text>$690 for the
award year 2010–2011; and</text>
</clause><clause id="HC7E12BB57E7B4B8CA1C815ACB23AB4C0"><enum>(iii)</enum><text>the amount
determined under
<internal-xref idref="HF204D49962D04438A3EC0471E8E974AF" legis-path="(8)(C)">subparagraph (C)</internal-xref> for each succeeding award
year.</text>
</clause></subparagraph><subparagraph id="HF204D49962D04438A3EC0471E8E974AF"><enum>(C)</enum><header>Inflation-adjusted
amounts</header>
<clause commented="no" id="HEF4131DC91D54C72927269608C9AADBE"><enum>(i)</enum><header>Award year
2011–2012</header><text display-inline="yes-display-inline">For award year
2011–2012, the amount determined under this subparagraph for purposes of
<internal-xref idref="HC7E12BB57E7B4B8CA1C815ACB23AB4C0" legis-path="(8)(B)(iii)">subparagraph (B)(iii)</internal-xref> shall be equal
to—</text>
<subclause commented="no" id="H892405A8F1714FA2812966B2285257E6"><enum>(I)</enum><text display-inline="yes-display-inline">$5,550 or the total maximum Federal Pell
Grant for the preceding award year (as determined under
<internal-xref idref="H875944715557415BA7E599547A3DBAF2" legis-path="(8)(C)(iv)(II)">clause (iv)(II)</internal-xref>), whichever is
greater, increased by a percentage equal to the annual adjustment percentage
for award year 2011–2012; reduced by</text>
</subclause><subclause commented="no" id="H35A5F4F4F86B46BFA2C43FC18878BE92"><enum>(II)</enum><text>$4,860 or the
maximum Federal Pell Grant for which a student was eligible for the preceding
award year, as specified in the last enacted appropriation Act applicable to
that year, whichever is greater; and</text>
</subclause><subclause commented="no" id="HF2F798A6ABFC4DA7A05001857AF14C43"><enum>(III)</enum><text>rounded to the
nearest $5.</text>
</subclause></clause><clause id="HCBECEB7080B54158BCEF6FC1CC9C2322"><enum>(ii)</enum><header>Subsequent
award years</header><text display-inline="yes-display-inline">For award year
2012–2013 and each of the subsequent award years, the amount determined under
this subparagraph for purposes of
<internal-xref idref="HC7E12BB57E7B4B8CA1C815ACB23AB4C0" legis-path="(8)(B)(iii)">subparagraph (B)(iii)</internal-xref> shall be equal
to—</text>
<subclause id="H05A5E06986A940FDB423797BC97F04AF"><enum>(I)</enum><text display-inline="yes-display-inline">the total maximum Federal Pell Grant for
the preceding award year (as determined under
<internal-xref idref="H875944715557415BA7E599547A3DBAF2" legis-path="(8)(C)(iv)(II)">clause (iv)(II)</internal-xref>), increased by a
percentage equal to the annual adjustment percentage for the award year for
which the amount under this subparagraph is being determined; reduced by</text>
</subclause><subclause id="H89FDBD4B08604D6D9D84AA9FFBE0F930"><enum>(II)</enum><text display-inline="yes-display-inline">$4,860 or the maximum Federal Pell Grant
for which a student was eligible for the preceding award year, as specified in
the last enacted appropriation Act applicable to that year, whichever is
greater; and</text>
</subclause><subclause id="HAA37ED7CC4F146CC9580DF70BAFC73AF"><enum>(III)</enum><text>rounded to the
nearest $5.</text>
</subclause></clause><clause id="HC69EB3613B664D728B4C942E775ADE05"><enum>(iii)</enum><header>Limitation on
decreases</header><text display-inline="yes-display-inline">Notwithstanding
<internal-xref idref="HEF4131DC91D54C72927269608C9AADBE" legis-path="(8)(C)(i)">clauses (i)</internal-xref> and
<internal-xref idref="HCBECEB7080B54158BCEF6FC1CC9C2322" legis-path="(8)(C)(ii)">(ii)</internal-xref>, if the amount determined under
<internal-xref idref="HEF4131DC91D54C72927269608C9AADBE" legis-path="(8)(C)(i)">clause (i)</internal-xref> or
<internal-xref idref="HCBECEB7080B54158BCEF6FC1CC9C2322" legis-path="(8)(C)(ii)">(ii)</internal-xref> for an award year is less than the
amount determined under this paragraph for the preceding award year, the amount
determined under such clause for such award year shall be the amount determined
under this paragraph for the preceding award year.</text>
</clause><clause id="H7DF08F154A6C43C9A3314F7483AE16C7"><enum>(iv)</enum><header>Definitions</header><text>For
purposes of this subparagraph—</text>
<subclause id="H9F648C1F839D465498CC5D4098A27067"><enum>(I)</enum><text>the term
<term>annual adjustment percentage</term> as it applies to an award year is
equal to the sum of—</text>
<item id="H344B2F791E8A47BA8D2456D940B6D080"><enum>(aa)</enum><text display-inline="yes-display-inline">the estimated percentage change in the
Consumer Price Index (as determined by the Secretary, using the definition in
section 478(f)) for the most recent calendar year ending prior to the beginning
of that award year; and</text>
</item><item id="HF38E689188394D7B906CC52B922AAD4B"><enum>(bb)</enum><text>one
percentage point; and</text>
</item></subclause><subclause commented="no" id="H875944715557415BA7E599547A3DBAF2"><enum>(II)</enum><text>the term
<term>total maximum Federal Pell Grant</term> as it applies to a preceding
award year is equal to the sum of—</text>
<item commented="no" id="H44AC10C2C4FA49C4968B6E761C71A01B"><enum>(aa)</enum><text display-inline="yes-display-inline">the maximum Federal Pell Grant for which a
student is eligible during an award year, as specified in the last enacted
appropriation Act applicable to that preceding award year; and</text>
</item><item commented="no" id="H0D0262180DAF48B6897890BD0BE44EC0"><enum>(bb)</enum><text>the amount of the
increase in the maximum Federal Pell Grant required by this paragraph for that
preceding award year.</text>
</item></subclause></clause></subparagraph><subparagraph id="HA5F48E9924D44A308919E28A966D72C2"><enum>(D)</enum><header>Program
requirements and operations otherwise unaffected</header><text display-inline="yes-display-inline">Except as provided in
<internal-xref idref="H3611D05D699C4B6293BABBFB18635928" legis-path="(8)(B)">subparagraphs (B)</internal-xref> and
<internal-xref idref="HF204D49962D04438A3EC0471E8E974AF" legis-path="(8)(C)">(C)</internal-xref>, nothing in this paragraph shall be
construed to alter the requirements and operations of the Federal Pell Grant
Program as authorized under this section, or to authorize the imposition of
additional requirements or operations for the determination and allocation of
Federal Pell Grants under this section.</text>
</subparagraph><subparagraph id="H0FCA8377EC5B4CD69416AD2095AB6975"><enum>(E)</enum><header>Availability of
funds</header><text display-inline="yes-display-inline">The amounts made
available by
<internal-xref idref="HF279A88D994449B3A2C2CA572906503D" legis-path="(8)(A)">subparagraph (A)</internal-xref> for any fiscal year shall
be available beginning on October 1 of that fiscal year, and shall remain
available through September 30 of the succeeding fiscal
year.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HA35DE2F1D5734AAF827FD0BFB539BE26"><enum>(b)</enum><header>Multiple Pell
Grant Awards</header><text>Section 401(b)(5) (<external-xref legal-doc="usc" parsable-cite="usc/20/1070a">20 U.S.C. 1070a(b)(5)</external-xref>) is
amended—</text>
<paragraph id="H18BA3092DA0041CC98942489C9A646BF"><enum>(1)</enum><text>in subparagraph
(A)—</text>
<subparagraph id="HBFA2C61FB3A54281860CAF9E9EF4538E"><enum>(A)</enum><text>by inserting
<quote>who is making satisfactory academic progress according to the
institution’s standards</quote> after <quote>award a student</quote>;
and</text>
</subparagraph><subparagraph id="HF488D12C37E04D8180654A6D4719B345"><enum>(B)</enum><text>by striking
<quote>to permit such student to accelerate the student’s progress toward a
degree or certificate</quote> and inserting <quote>to permit such student to
accelerate the student’s graduation date, whether making full- or part-time
progress toward a degree or certificate,</quote>; and</text>
</subparagraph></paragraph><paragraph id="H17ED7161886E4D8E81294C81CA4CA1E8"><enum>(2)</enum><text>by adding at the
end the following new subparagraph:</text>
<subparagraph id="H314AAB80D4484F849DF8E36DD272D73A"><enum>(C)</enum><text>A student may not
receive a combination of first and second scheduled award funds under this
paragraph that exceeds the amount the student would otherwise be eligible to
receive for the payment period.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H07ACEEDD167A4B5AA10D8703773CDC60"><enum>(c)</enum><header>Conforming
amendments</header><text display-inline="yes-display-inline">Title IV
(<external-xref legal-doc="usc" parsable-cite="usc/20/1070">20 U.S.C. 1070 et
seq.</external-xref>) is further amended—</text>
<paragraph commented="no" id="H38EEF8C7AADA414889F2D3D7F99C457B"><enum>(1)</enum><text display-inline="yes-display-inline">in section 401(b)(6), as amended by the
Higher Education Opportunity Act (<external-xref legal-doc="public-law" parsable-cite="pl/110/315">Public Law 110–315</external-xref>), by striking
<quote>the grant level specified in the appropriate Appropriation Act for this
subpart for such year</quote> and inserting <quote>the Federal Pell Grant
amount, determined under paragraph (2)(A), for which a student is eligible
during such award year</quote>;</text>
</paragraph><paragraph commented="no" id="H05348FCA40AC438896305394EF86711B"><enum>(2)</enum><text>in section
402D(d)(1), by striking <quote>exceed the maximum appropriated Pell Grant
</quote> and inserting <quote>exceed the Federal Pell Grant amount, determined
under section 401(b)(2)(A), for which a student is eligible</quote>;</text>
</paragraph><paragraph commented="no" id="HC5AAFADB70054B6584768CF952C2D7B3"><enum>(3)</enum><text display-inline="yes-display-inline">in section 435(a)(5)(A)(i)(I), by striking
<quote>one-half the maximum Federal Pell Grant award for which a student would
be eligible</quote> and inserting <quote>one-half the Federal Pell Grant
amount, determined under section 401(b)(2)(A), for which a student would be
eligible</quote>;</text>
</paragraph><paragraph commented="no" id="HB3AFF0EF0A494400891A40CD286ECD57"><enum>(4)</enum><text display-inline="yes-display-inline">in section 483(e)(3)(A)(ii), by striking
<quote>based on the maximum Federal Pell Grant award at the time of
application</quote> and inserting <quote>based on the Federal Pell Grant
amount, determined under section 401(b)(2)(A), for which a student is eligible
at the time of application</quote>;</text>
</paragraph><paragraph commented="no" id="HB0C91F7B0A7E413394AE022C0AC1F908"><enum>(5)</enum><text display-inline="yes-display-inline">in section 485E(b)(1)(A), by striking
<quote>of such students' potential eligibility for a maximum Federal Pell Grant
under subpart 1 of part A</quote> and inserting <quote>of such students'
potential eligibility for the Federal Pell Grant amount, determined under
section 401(b)(2)(A), for which the student would be eligible</quote>;
and</text>
</paragraph><paragraph commented="no" id="H76D7D11E0EF24D41BB27B1A4D34265A3"><enum>(6)</enum><text>in section
894(f)(2)(C)(ii)(I), by striking <quote>the maximum Federal Pell Grant for each
award year</quote> and inserting <quote>the Federal Pell Grant amount,
determined under section 401(b)(2)(A), for which a student may be eligible for
each award year</quote>.</text>
</paragraph></subsection><subsection id="HB8E0A982509B4C0291A78B6361D98C37"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by subsections (a) and (c) of this
section shall take effect on July 1, 2010.</text>
</subsection></section><section id="H80F28A72B6624F229CB365F32C328E74" section-type="subsequent-section"><enum>102.</enum><header>College Access and
Completion Innovation Fund</header>
<subsection id="H5895692903654A618BA9687730900F85"><enum>(a)</enum><header>Header</header><text display-inline="yes-display-inline">Part E of title VII (<external-xref legal-doc="usc" parsable-cite="usc/20/1141">20 U.S.C. 1141 et
seq.</external-xref>) is amended by striking the header of such part and
inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HF8254564BE5F448C898AFC67AE03468F" style="OLC">
<part id="HEBFEBE37B9C0489BAD1832ECE21BF08F"><enum>E</enum><header>College Access and
Completion Innovation
Fund</header>
</part><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H456B2B923D8A442EBEA294D1E8C25D90"><enum>(b)</enum><header>Purpose</header><text display-inline="yes-display-inline">Part E of title VII (<external-xref legal-doc="usc" parsable-cite="usc/20/1141">20 U.S.C. 1141 et
seq.</external-xref>) is further amended by inserting before section 781 the
following:</text>
<quoted-block display-inline="no-display-inline" id="H40B136F043D3439FB23EC85A6F7C184A" style="OLC">
<section commented="no" id="H96E878D3A42A48BAB5FA039AC6708639"><enum>780.</enum><header>Purposes</header><text display-inline="no-display-inline">The purposes of this part are—</text>
<paragraph commented="no" id="HDEC79248D32247CE8DDC5E9963F9B132"><enum>(1)</enum><text>to promote
innovation in postsecondary education practices and policies by institutions of
higher education, States, and nonprofit organizations to improve student
success, completion, and post-completion employment, particularly for students
from groups that are underrepresented in postsecondary education; and</text>
</paragraph><paragraph commented="no" id="HC07E42EFD3004F4988C65C7C42AD5E64"><enum>(2)</enum><text display-inline="yes-display-inline">to assist States in developing longitudinal
data systems, common metrics, and reporting systems to enhance the quality and
availability of information about student success, completion, and
post-completion
employment.</text>
</paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H85362173CE004D42929B0B9F74832A8D"><enum>(c)</enum><header>Authorization
and appropriation</header><text>Section 781(a) (<external-xref legal-doc="usc" parsable-cite="usc/20/1141">20 U.S.C. 1141(a)</external-xref>) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H6500F40EF4A94C14B291B590A1BD1E6A" style="OLC">
<subsection id="HE74D716E6F6546B8939EA66C593224EE"><enum>(a)</enum><header>Authorization
and appropriation</header>
<paragraph commented="no" id="HA8F414C1C5EA4A8483ADB3DAE518337E"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">There are authorized
to be appropriated, and there are appropriated, to carry out this part (in
addition to any other amounts appropriated to carry out this part and out of
any money in the Treasury not otherwise appropriated), $600,000,000 for each of
the fiscal years 2010 through 2014.</text>
</paragraph><paragraph commented="no" id="HEBA4C22B22574C3AA47FB9376559222E"><enum>(2)</enum><header>Allocations</header><text>Of
the amount appropriated for any fiscal year under
<internal-xref idref="HA8F414C1C5EA4A8483ADB3DAE518337E" legis-path="(a)(1)">paragraph (1)</internal-xref>—</text>
<subparagraph commented="no" id="H3E36BB8CEB2A4B2386B6E5E8FA5F361C"><enum>(A)</enum><text>25 percent shall
be made available to carry out section 781;</text>
</subparagraph><subparagraph commented="no" id="HB52BA183B3C04E41B0D4E194AC4B1FF2"><enum>(B)</enum><text>50 percent shall
be made available to carry out section 782;</text>
</subparagraph><subparagraph commented="no" id="H91C97A27CF474A67B468C17CED0AD4F8"><enum>(C)</enum><text>23 percent shall
be made available to carry out section 783; and</text>
</subparagraph><subparagraph id="H47ABD44E54BD4AB2AD58093CECDAFE93"><enum>(D)</enum><text>2 percent shall be
made available to carry out section 784.</text>
</subparagraph></paragraph><paragraph id="H1DC134D124A7472EB47CD3EAB1BA548C"><enum>(3)</enum><header>Expiration of
authority</header><text display-inline="yes-display-inline">The authority to
award grants under this part shall expire at the end of fiscal year
2014.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H943946193F3542BB938631A592CE2E1D"><enum>(d)</enum><header>State grants and
grants to eligible entities</header><text display-inline="yes-display-inline">Part E of title VII (<external-xref legal-doc="usc" parsable-cite="usc/20/1141">20 U.S.C. 1141 et
seq.</external-xref>) is further amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H28C4C10C14964F759BA2FDE201C6D272" style="OLC">
<section id="H5EF27361FBC94790B3F67CA9781E571A"><enum>782.</enum><header>State
innovation completion grants</header>
<subsection id="H45A69960CE0D4FC6B3A10F9624A9AA13"><enum>(a)</enum><header>Program
authorization</header><text display-inline="yes-display-inline">From the amount
appropriated under section 781(a)(2)(B) to carry out this section, the
Secretary shall award grants to States on a competitive basis to promote
student persistence in, and completion of, postsecondary education.</text>
</subsection><subsection commented="no" id="H079E262EF037460895E5912341E37A61"><enum>(b)</enum><header>Federal share;
non-Federal share</header>
<paragraph commented="no" id="H29AA7336639047EB9E927FA7BC74D3E7"><enum>(1)</enum><header>Federal
share</header><text>The amount of the Federal share under this section for a
fiscal year shall be equal to <fraction>2⁄3</fraction> of the costs of the
activities and services described in
<internal-xref idref="H19D1B89B09C24FCB9E29CACD3A0219CF" legis-path="782.(d)(1)">subsection (d)(1)</internal-xref> that are carried out
under the grant.</text>
</paragraph><paragraph commented="no" id="HD01197A06A2B4B79BBA837949AA7812F"><enum>(2)</enum><header>Non-Federal
share</header><text display-inline="yes-display-inline">The amount of the
non-Federal share under this section shall be equal to <fraction>1⁄3</fraction>
of the costs of the activities and services described in
<internal-xref idref="H19D1B89B09C24FCB9E29CACD3A0219CF" legis-path="782.(d)(1)">subsection (d)(1)</internal-xref>. The non-Federal
share may be in cash or in kind, and may be provided from State resources,
contributions from private organizations, or both.</text>
</paragraph><paragraph id="HDADB415914AE45D09D3F4537A3A66FF9"><enum>(3)</enum><header>Supplement, not
supplant</header><text>The Federal and non-Federal shares required by this
paragraph shall be used to supplement, and not supplant, State and private
resources that would otherwise be expended to carry out activities and services
to promote student persistence in and completion of postsecondary
education.</text>
</paragraph></subsection><subsection id="H7F3332B04CCD4DA8B1A151B49B65B5EE"><enum>(c)</enum><header>Application and
selection</header>
<paragraph id="HC2AE8D7CD9814860A2455EE4FB154EB3"><enum>(1)</enum><header>Application
requirements</header><text>For each fiscal year for which a State desires to
receive a grant under this section, the State agency with jurisdiction over
higher education, or another agency designated by the Governor or chief
executive of the State to administer the grant program 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. Such application
shall include—</text>
<subparagraph id="H4985B66921AF498B9C242E95645CFD0F"><enum>(A)</enum><text>a description of
the State’s capacity to administer the grant under this section;</text>
</subparagraph><subparagraph id="H2F60781448E14C1F9D3013DB9E0F16BB"><enum>(B)</enum><text>a description of
the State’s plans for using the grant funds for activities described in
<internal-xref idref="H19D1B89B09C24FCB9E29CACD3A0219CF" legis-path="782.(d)(1)">subsection (d)(1)</internal-xref>, including plans for
how the State will make special efforts to provide benefits to students in the
State who are from groups that are underrepresented in postsecondary
education;</text>
</subparagraph><subparagraph id="H26CDE888ABE147D4BD9217F8663051FD"><enum>(C)</enum><text>a description of
how the State will provide for the non-Federal share from State resources,
private contributions, or both;</text>
</subparagraph><subparagraph id="H9B579A1F575145038627263405AEA0A3"><enum>(D)</enum><text>a description
of—</text>
<clause id="HE7A459EE5D3E4AE39381462B8C8261EA"><enum>(i)</enum><text>the administrative
system that the State has in place to administer the activities and services
described in
<internal-xref idref="H19D1B89B09C24FCB9E29CACD3A0219CF" legis-path="782.(d)(1)">subsection (d)(1)</internal-xref>; or</text>
</clause><clause id="H2210769BED504AC7A94F6D66CFCDD9C8"><enum>(ii)</enum><text>the plan to
develop such administrative system;</text>
</clause></subparagraph><subparagraph id="H0E4595EF2BA541D0897ECF1319C47806"><enum>(E)</enum><text>a description of
the data system the State has or will have in place to measure the performance
and progress toward the State’s goals included in the Access and Completion
Plan submitted, or that will be submitted, under
<internal-xref idref="H9EBF0C47603543A2968F6AE0A0624C32" legis-path="782.(c)(2)(A)">paragraph (2)(A)</internal-xref>; and</text>
</subparagraph><subparagraph id="H3F6DF8546A4B43619B697401F6DB2DE8"><enum>(F)</enum><text>the assurances
under
<internal-xref idref="H5BD6201A14704D2595FDF769362202EB" legis-path="782.(c)(2)">paragraph (2)</internal-xref>.</text>
</subparagraph></paragraph><paragraph id="H5BD6201A14704D2595FDF769362202EB"><enum>(2)</enum><header>State
assurances</header><text>The assurances required in
<internal-xref idref="H3F6DF8546A4B43619B697401F6DB2DE8" legis-path="782.(c)(1)(F)">paragraph (1)(F)</internal-xref> shall include an
assurance of each of the following:</text>
<subparagraph commented="no" id="H9EBF0C47603543A2968F6AE0A0624C32"><enum>(A)</enum><text>That the State
will submit, not later than July 1, 2011, an Access and Completion Plan to
increase the State’s rate of persistence in and completion of postsecondary
education. Such plan shall include—</text>
<clause commented="no" id="H9E44EDC0FB9349EAACB1FF3705F508E4"><enum>(i)</enum><text>the State’s annual
and long-term quantifiable goals with respect to—</text>
<subclause commented="no" id="HF6F56A8A08204B729CE0D845B3C71A25"><enum>(I)</enum><text>the rates of
postsecondary enrollment, persistence, and completion, disaggregated by income,
race, ethnicity, sex, disability, and age of students;</text>
</subclause><subclause commented="no" id="H2102BC0F13FB4080BF7F756C38EE9C97"><enum>(II)</enum><text>closing gaps in
enrollment, persistence, and completion rates for students from groups that are
underrepresented in postsecondary education;</text>
</subclause><subclause commented="no" id="H7A85166E5900410BA795972BC0372FF5"><enum>(III)</enum><text display-inline="yes-display-inline">targeting education and training programs
to address labor market needs in the State, as such needs are determined by the
State, or the State in coordination with the State public employment service,
the State workforce investment board, or industry or sector partnerships in the
State; and</text>
</subclause><subclause commented="no" id="H11A2F1EB3B904B31A0F28A21B138CBF8"><enum>(IV)</enum><text display-inline="yes-display-inline">improving coordination between public
two-year and public four-year institutions of higher education in the State,
including supporting comprehensive articulation agreements between such
institutions in consultation with faculty from participating institutions;
and</text>
</subclause></clause><clause commented="no" id="H854C6A23BF054A0B9469443D2C9C315A"><enum>(ii)</enum><text display-inline="yes-display-inline">the State's plan to develop an
interoperable statewide longitudinal data system that—</text>
<subclause commented="no" id="HCE17AEF29FFB4823A1C21B1F143EA519"><enum>(I)</enum><text>can be linked to
other data systems, as applicable, including elementary and secondary education
and workforce data systems;</text>
</subclause><subclause id="H2A7E520C9087476B88512C91CA4D7C96"><enum>(II)</enum><text>will collect,
maintain, disaggregate (by institution, income, race, ethnicity, sex,
disability, and age of students), and analyze postsecondary education and
workforce information, including—</text>
<item commented="no" id="HB8E6922C744447FA9F370BE9B43D4D30"><enum>(aa)</enum><text>postsecondary
education enrollment, persistence, and completion information;</text>
</item><item commented="no" id="HD73BDF3534B540B3BCD9BEA950EAF6E5"><enum>(bb)</enum><text>post-completion
employment outcomes of students who enrolled in postsecondary programs and
training programs offered by eligible training providers under the Workforce
Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2801">29 U.S.C. 2801 et seq.</external-xref>);</text>
</item><item commented="no" id="H249104C9F66D43E5BDC0897A18FB02C0"><enum>(cc)</enum><text>postsecondary
education and employment outcomes of students who move out of the State;
and</text>
</item><item id="HF0DD4D6EB2C24EFC985015F1999FAA39"><enum>(dd)</enum><text>postsecondary
instructional workforce information; and</text>
</item></subclause><subclause commented="no" id="HA8868DA9B38E42C7AE16E5C41E0EF50B"><enum>(III)</enum><text>makes the
information described in
<internal-xref idref="HCE17AEF29FFB4823A1C21B1F143EA519" legis-path="782.(c)(2)(A)(ii)(I)">subclause (I)</internal-xref> available to
the general public in a manner that is transparent and user-friendly.</text>
</subclause></clause></subparagraph><subparagraph id="H06188383ED7D41689084E2669E10CEF1"><enum>(B)</enum><text>That the State has
a comprehensive planning or policy formulation process with respect to
increasing postsecondary enrollment, persistence, and completion that—</text>
<clause id="HE014860A0F154229B7A426DE94C3F105"><enum>(i)</enum><text>encourages
coordination between the State administration of grants under this section and
similar State programs;</text>
</clause><clause id="H1F927ED8E54F4B6D988CC8E2BB50A258"><enum>(ii)</enum><text display-inline="yes-display-inline">encourages State practices that are
designed to improve rates of enrollment and persistence in, and completion of,
postsecondary education;</text>
</clause><clause id="HF030E3A88FD2472C847674C211B36576"><enum>(iii)</enum><text display-inline="yes-display-inline">encourages State policies that are designed
to improve rates of enrollment and re-enrollment of dislocated workers in
postsecondary education;</text>
</clause><clause id="H187CA6AFDECC4F1A8ADE113F2C89855C"><enum>(iv)</enum><text>encourages the
full use of State resources in support of financial literacy programs;</text>
</clause><clause id="H515D392CB75B432EA9533BB884B1BC95"><enum>(v)</enum><text>considers the
postsecondary education needs of students from groups that are underrepresented
in postsecondary education; and</text>
</clause><clause id="HC4DEA5D413114A85AD949C2B9C94B6F4"><enum>(vi)</enum><text>provides for
direct, equitable, and active participation in the comprehensive planning or
policy formulation process or processes, through membership on State planning
commissions, State advisory councils, or other State entities established by
the State and consistent with State law, by representatives of—</text>
<subclause id="H3BE379820358424EA339DE7049A75958"><enum>(I)</enum><text>institutions of
higher education, including at least one member from a junior or community
college (as defined in section 312(f));</text>
</subclause><subclause id="HE5ECEB5E0189495D92A79686F0F6B42E"><enum>(II)</enum><text>students;</text>
</subclause><subclause id="HD368AC229F4C4C59A2000A2DDBF436FF"><enum>(III)</enum><text>other providers
of postsecondary education services (including organizations providing access
to such services);</text>
</subclause><subclause id="HE52E8E620A8D4EA0A2FDBB3D9231B71F"><enum>(IV)</enum><text>the general
public in the State; and</text>
</subclause><subclause id="H8EAE525D81D64362B5EAF8E80B8BB9EC"><enum>(V)</enum><text>postsecondary
education faculty members, including at least one faculty member whose primary
responsibilities are teaching and scholarship.</text>
</subclause></clause></subparagraph><subparagraph commented="no" id="H7A127B32DCBE48BEAB8C9BD83DCE87D8"><enum>(C)</enum><text display-inline="yes-display-inline">That the State will incorporate policies
and practices that, through the activities funded under this section, are
determined to be effective in improving rates of postsecondary education
enrollment, persistence, and completion into the future postsecondary education
policies and practices of the State to ensure that the benefits achieved
through the activities funded under this section continue beyond the period of
the grant.</text>
</subparagraph><subparagraph id="H4E9917ABB8AD421A8C339A2AC516926A"><enum>(D)</enum><text>That the State
will participate in the evaluation required under
<internal-xref idref="H7117993E7BAE4E64A4E5DD0DF307A7CC" legis-path="784.">section 784</internal-xref>.</text>
</subparagraph></paragraph><paragraph id="HB409A886C1EA48B4B14B357003BF04FB"><enum>(3)</enum><header>Subgrants to
nonprofit organizations</header>
<subparagraph id="HC8E3E79B387F4F398EA4E9749177E367"><enum>(A)</enum><header>In
general</header><text>A State receiving a payment under this section may elect
to make a subgrant to one or more nonprofit organizations in the State, or a
partnership of such organizations, to carry out activities and services
described in subsection (d)(1), if the nonprofit organization or
partnership—</text>
<clause commented="no" id="H98A1781A3DE04183B97ABB0C306611F2"><enum>(i)</enum><text>was in existence
on the day before the date of the enactment of the
<short-title>Student Aid and Fiscal Responsibility Act of
2009</short-title>; and</text>
</clause><clause commented="no" id="HFDC6FB6D38524960923346562AB95BB0"><enum>(ii)</enum><text>as of such day,
was participating in activities and services related to promoting persistence
in, and completion of, postsecondary education, such as the activities and
services described in subsection (d)(1).</text>
</clause></subparagraph><subparagraph display-inline="no-display-inline" id="HA0E3287E839E45A499C26BF9F7A85649"><enum>(B)</enum><header>Nonprofit
organizations</header><text>For the purposes of this section, nonprofit
organizations in a State include—</text>
<clause id="HAD77F52E35704C76890C10E01E12A042"><enum>(i)</enum><text display-inline="yes-display-inline">agencies with agreements with the Secretary
under subsections (b) and (c) of section 428 on the date of the enactment of
the <short-title>Student Aid and Fiscal Responsibility Act
of 2009</short-title>;</text>
</clause><clause id="H5C6AF6ECEF5B4571A139D5677D0537CF"><enum>(ii)</enum><text display-inline="yes-display-inline">nonprofit subsidiaries of agencies
described in
<internal-xref idref="HAD77F52E35704C76890C10E01E12A042" legis-path="(3)(B)(i)">clause (i)</internal-xref>, if such subsidiaries were
established, pursuant to the law of such State, on or before January 1, 1998;
and</text>
</clause><clause id="HD085DB7ADD464709BE5B33F9E7F6EC03"><enum>(iii)</enum><text>eligible
not-for-profit servicers, as defined in section 456(d), with an agreement with
the Secretary under subsection (a)(3) of section 456, except that such a
servicer shall only be eligible for a subgrant from the State for which the
servicer is receiving an allocation under such agreement.</text>
</clause></subparagraph></paragraph><paragraph id="HC39D910641FE4E6ABFED284C14D47CDE"><enum>(4)</enum><header>Priority</header><text display-inline="yes-display-inline">In awarding grants under this section, the
Secretary shall give priority to States that enter into a partnership with one
of the following entities to carry out the activities and services described in
<internal-xref idref="H19D1B89B09C24FCB9E29CACD3A0219CF" legis-path="782.(d)(1)">subsection (d)(1)</internal-xref>:</text>
<subparagraph id="H6DCB208561C74D40940D391834BD5007"><enum>(A)</enum><text>A philanthropic
organization, as such term is defined in section 781(i)(1).</text>
</subparagraph><subparagraph commented="no" id="H5802F8C690FF49FA921898C2426B30DA"><enum>(B)</enum><text>An agency with an
agreement with the Secretary under subsections (b) and (c) of section 428 on
the date of the enactment of <short-title>Student Aid and
Fiscal Responsibility Act of 2009</short-title>.</text>
</subparagraph><subparagraph id="H059C288E46AF4F9ABA203D9056151A0D"><enum>(C)</enum><text>A nonprofit
subsidiary of agencies described in subparagraph (B), if such subsidiary was
established, pursuant to the law of such State, on or before January 1,
1998.</text>
</subparagraph></paragraph></subsection><subsection id="HAF160B3603C04E3CB97F5A7D9749D7ED"><enum>(d)</enum><header>Uses of
funds</header>
<paragraph id="H19D1B89B09C24FCB9E29CACD3A0219CF"><enum>(1)</enum><header>Authorized
uses</header><text>A State receiving a grant under this section shall use the
grant funds to—</text>
<subparagraph id="H79873278C86C4B3F8710D50A642B2EBD"><enum>(A)</enum><text display-inline="yes-display-inline">provide programs in such State that
increase persistence in, and completion of, postsecondary education, which may
include—</text>
<clause id="H057BED1346A34B30B44C090E19625507"><enum>(i)</enum><text>assisting
institutions of higher education in providing financial literacy, education,
and counseling to enrolled students;</text>
</clause><clause id="H8C8233F4A1FA4B48B41FFCE0177B43F2"><enum>(ii)</enum><text>assisting
students enrolled in an institution of higher education to reduce the amount of
loan debt incurred by such students;</text>
</clause><clause id="HAA05E82FCA6144BD8F3230C014B93BDA"><enum>(iii)</enum><text>providing loan
counseling, loan delinquency, and default aversion assistance to student loan
borrowers and institutions of higher education;</text>
</clause><clause id="H71911A08223B47CBBA12E716AAEAD61C"><enum>(iv)</enum><text>providing grants
to students described in section 415A(a)(1), in accordance with the terms of
that section;</text>
</clause><clause id="H9D4141F60B7441D18F28A5F0A9C288A6"><enum>(v)</enum><text display-inline="yes-display-inline">carrying out the activities described in
section 415E(a), in accordance with such section;</text>
</clause><clause id="H07ABBF2A4277466BB61E039324F00D0E"><enum>(vi)</enum><text>assisting
institutions of higher education institute programs of persistence focused on
students at risk of not completing; and</text>
</clause><clause id="HC77DD06152594639AC1A776FE3B246D2"><enum>(vii)</enum><text>programs to
provide financial literacy education and counseling to elementary, secondary,
and postsecondary students that include an examination of how financial
planning may impact a student’s ability to pursue postsecondary education;
and</text>
</clause></subparagraph><subparagraph commented="no" id="H3302D38254D3411E902FE5B4246F975D"><enum>(B)</enum><text display-inline="yes-display-inline">support the development and implementation
of a statewide longitudinal data system, as described in
<internal-xref idref="H854C6A23BF054A0B9469443D2C9C315A" legis-path="782.(c)(2)(A)(ii)">subsection (c)(2)(A)(ii)</internal-xref>.</text>
</subparagraph></paragraph><paragraph id="HFBFDF3A2435C4A8AAB67D10C4EA04734"><enum>(2)</enum><header>Prohibited
uses</header><text>Funds made available under this section shall not be used to
promote any lender’s loans.</text>
</paragraph><paragraph id="HCA0B01AA0B1D40B4B0D41A8822632674"><enum>(3)</enum><header>Restrictions on
use of funds</header><text>A State—</text>
<subparagraph commented="no" id="H612171C5F4C84BCE84450D98332E0B69"><enum>(A)</enum><text display-inline="yes-display-inline">shall use not less than
<fraction>1/3</fraction> of the sum of the Federal and non-Federal share used
for
<internal-xref idref="H79873278C86C4B3F8710D50A642B2EBD" legis-path="782.(d)(1)(A)">paragraph (1)(A)</internal-xref> on activities that
benefit students enrolled in junior or community colleges (as defined in
section 312(f)), two-year public institutions, or two-year programs of
instruction at four-year public institutions;</text>
</subparagraph><subparagraph commented="no" id="H8E216AD58ED34D33ACF2F7004BE7F5BB"><enum>(B)</enum><text>may use not more
than 10 percent of the sum of the Federal and non-Federal share under this
section for activities described in
<internal-xref idref="H3302D38254D3411E902FE5B4246F975D" legis-path="782.(d)(1)(B)">paragraph (1)(B)</internal-xref>; and</text>
</subparagraph><subparagraph id="H3953F74D7F6A4828B07BE01B03EDC60C"><enum>(C)</enum><text>may use not more
than 6 percent of the sum of the Federal and non-Federal share under this
section for administrative purposes relating to the grant under this
section.</text>
</subparagraph></paragraph></subsection><subsection id="H7C99E9F4E8624CF485E1D9C1A71A85D2"><enum>(e)</enum><header>Annual
report</header><text display-inline="yes-display-inline">Each State receiving a
grant under this section shall submit to the Secretary an annual report
on—</text>
<paragraph id="H18910B16E61647BEA82032814283230D"><enum>(1)</enum><text display-inline="yes-display-inline">the activities and services described in
<internal-xref idref="H19D1B89B09C24FCB9E29CACD3A0219CF" legis-path="782.(d)(1)">subsection (d)(1)</internal-xref> that are carried out
with such grant;</text>
</paragraph><paragraph id="H0319AA69EFC84949B0F1D7C5684968CF"><enum>(2)</enum><text>the effectiveness
of such activities and services in increasing postsecondary persistence and
completion, as determined by measurable progress in achieving the State’s goals
for persistence and completion described in the Access and Completion Plan
submitted by the State under
<internal-xref idref="H9EBF0C47603543A2968F6AE0A0624C32" legis-path="782.(c)(2)(A)">subsection (c)(2)(A)</internal-xref>, if such plan
has been submitted; and</text>
</paragraph><paragraph id="H75E546FA14554BE097272132F7A079C4"><enum>(3)</enum><text>any other
information or assessments the Secretary may require.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H36336407E5E445F4A7C35C5D634DC970"><enum>(f)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text>
<paragraph id="H1D2CF96E62034A2F8518F99B0F525838"><enum>(1)</enum><header>Dislocated
worker</header><text display-inline="yes-display-inline">The term
<quote>dislocated worker</quote> has the meaning given such term in section
101(9) of the Workforce Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2801">29 U.S.C. 2801(9)</external-xref>).</text>
</paragraph><paragraph commented="no" id="HBD162CF1A2144BD8A7B7E24E567F978D"><enum>(2)</enum><header>Industry or
sector partnership</header><text>The term <quote>industry or sector
partnership</quote> means a workforce collaborative that organizes key
stakeholders in a targeted industry cluster into a working group that focuses
on the human capital needs of a targeted industry cluster and that
includes—</text>
<subparagraph commented="no" id="H587F58571DC94B2689C5007BD4E0A2A1"><enum>(A)</enum><text>representatives of
multiple firms or employers (including workers) in a targeted industry cluster,
including small- and medium-sized employers when practicable;</text>
</subparagraph><subparagraph commented="no" id="H8896516BDF914C8BB98C911267031C2E"><enum>(B)</enum><text display-inline="yes-display-inline">1 or more representatives of State labor
organizations, trade unions or consortia of trade unions, or other labor
organizations;</text>
</subparagraph><subparagraph commented="no" id="HE5E9E91F47CE48B487C3DE34E7DF1104"><enum>(C)</enum><text>1 or more
representatives of local workforce investment boards;</text>
</subparagraph><subparagraph commented="no" id="H3F037572B633499780CE95CDA00DA6EB"><enum>(D)</enum><text>1 or more
representatives of postsecondary educational institutions or other training
providers; and</text>
</subparagraph><subparagraph commented="no" id="HC931746C85E14B3AB261C9927A20B174"><enum>(E)</enum><text>1 or more
representatives of State workforce agencies or other entities providing
employment services.</text>
</subparagraph></paragraph><paragraph commented="no" id="H8F4376E6968B4BE6B43D47D44C2678A4"><enum>(3)</enum><header>State public
employment service</header><text>The term <quote>State public employment
service</quote> has the meaning given such term in section 502(a)(9) of the
<short-title>Student Aid and Fiscal Responsibility Act of
2009</short-title>.</text>
</paragraph><paragraph commented="no" id="HF9D2CC23066D409A80EB4F3894A21E80"><enum>(4)</enum><header>State workforce
investment board; local workforce investment board</header><text>The terms
<quote>State workforce investment board</quote> and <quote>local workforce
investment board</quote> have the meanings given such terms in section
502(a)(10) of the <short-title>Student Aid and Fiscal
Responsibility Act of 2009</short-title>.</text>
</paragraph></subsection></section><section id="HA89DB329B21C43969BC423BEE45B1E47"><enum>783.</enum><header>Innovation in
College Access and Completion National Activities</header>
<subsection id="H9AD6F3BEF953471C8748835716FFD7EB"><enum>(a)</enum><header>Programs
authorized</header><text display-inline="yes-display-inline">From the amount
appropriated under section 781(a)(2)(C) to carry out this section, the
Secretary shall award grants, on a competitive basis, to eligible entities in
accordance with this section to conduct innovative programs that advance
knowledge about, and adoption of, policies and practices that increase the
number of individuals with postsecondary degrees or certificates.</text>
</subsection><subsection id="H85D4068AD5A5400E8C7FC95F9804F59C"><enum>(b)</enum><header>Eligible
entities</header><text>The Secretary is authorized to award grants under
<internal-xref idref="H9AD6F3BEF953471C8748835716FFD7EB" legis-path="783.(a)">subsection (a)</internal-xref> to—</text>
<paragraph id="H4FFCB2DB15024945835DDEBB4EF0DA31"><enum>(1)</enum><text>institutions of
higher education;</text>
</paragraph><paragraph id="H84211934A74344BEBF5B6369DB1A1F2F"><enum>(2)</enum><text>States;</text>
</paragraph><paragraph id="H40E6DB22AD3248B1B7809EC26507BDDE"><enum>(3)</enum><text display-inline="yes-display-inline">nonprofit organizations with demonstrated
experience in the support, improvement, or operation of programs to increase
postsecondary completion, including—</text>
<subparagraph id="HFB8600F796FB48468C1DAC346F577E6B"><enum>(A)</enum><text display-inline="yes-display-inline">agencies with agreements with the Secretary
under subsections (b) and (c) of section 428 on the date of the enactment of
the <short-title>Student Aid and Fiscal Responsibility Act
of 2009</short-title>;</text>
</subparagraph><subparagraph commented="no" id="H3EED849180F74ECAB662F342A73BAFE6"><enum>(B)</enum><text display-inline="yes-display-inline">nonprofit subsidiaries of agencies
described in
<internal-xref idref="HBD9D921A32FD4036A05444E0745A390F" legis-path="(3)(A)">subparagraph (A)</internal-xref>, if such subsidiaries were
established, pursuant to State law, on or before January 1, 1998; and</text>
</subparagraph><subparagraph id="H9F72E86967C04ABD897C66F063B447F0"><enum>(C)</enum><text>eligible
not-for-profit servicers, as defined in section 456(d), with an agreement with
the Secretary under subsection (a)(3) of section 456, except that such a
servicer shall only be eligible for a subgrant from the State for which the
servicer is receiving an allocation under such agreement;</text>
</subparagraph></paragraph><paragraph id="H2F18E07A116E4C669A9E08617D5DE739"><enum>(4)</enum><text>philanthropic
organizations (as such term is defined in section 781(i)(1));</text>
</paragraph><paragraph id="H8694167F22904439893529903649FB66"><enum>(5)</enum><text>entities receiving
a grant under chapter 1 of subpart 2 of part A of title IV; and</text>
</paragraph><paragraph id="HFAE3E765D3264823AD204F40EA55B713"><enum>(6)</enum><text>consortia of any
of the entities described in
<internal-xref idref="H4FFCB2DB15024945835DDEBB4EF0DA31" legis-path="783.(b)(1)">paragraphs (1)</internal-xref> through (5).</text>
</paragraph></subsection><subsection id="HB17C9387929C4763865EA8B20A8AB6BB"><enum>(c)</enum><header>Innovation
grants</header>
<paragraph id="H907CDCADD6F84CAF9D6FF44CB14DA6FB"><enum>(1)</enum><header>Minimum
award</header><text>A grant awarded under
<internal-xref idref="H9AD6F3BEF953471C8748835716FFD7EB" legis-path="783.(a)">subsection (a)</internal-xref> shall be not less than
$1,000,000.</text>
</paragraph><paragraph id="H6EA266B1EE114BE7917BBEFC55C1872C"><enum>(2)</enum><header>Grants
uses</header><text display-inline="yes-display-inline">The Secretary’s
authority to award grants under
<internal-xref idref="H9AD6F3BEF953471C8748835716FFD7EB" legis-path="783.(a)">subsection (a)</internal-xref> includes—</text>
<subparagraph id="HE752357934054D69B5D6719D8A70ED12"><enum>(A)</enum><text>the authority to
award to an eligible entity a grant in an amount equal to all or part of the
amount of funds received by such entity from philanthropic organizations (as
such term is defined in section 781(i)(1)) to conduct innovative programs that
advance knowledge about, and adoption of, policies and practices that increase
the number of individuals with postsecondary degrees or certificates;
and</text>
</subparagraph><subparagraph id="H5962A1FAF6FB4E07B63F85514939E7B8"><enum>(B)</enum><text display-inline="yes-display-inline">the authority to award an eligible entity a
grant to develop 2-year programs that provide supplemental grant or loan
benefits to students that—</text>
<clause id="HE24EA363B9654D56B95D96CF3609A640"><enum>(i)</enum><text>are designed to
improve student outcomes, including degree completion, graduation without
student loan debt, and post-completion employment;</text>
</clause><clause id="H292149C17C6C4CC99270C0887F56C204"><enum>(ii)</enum><text>are in addition
to the student financial aid available under title IV of this Act; and</text>
</clause><clause id="H7DDDFE67FCD947FD93E8BE124D28AC3A"><enum>(iii)</enum><text>do not result in
the reduction of the amount of that aid or any other student financial aid for
which a student is otherwise eligible under Federal law.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H44D65874C3944BE7952CD1689B0CB06D"><enum>(3)</enum><header>Application</header><text>To
be eligible to receive a grant under
<internal-xref idref="H9AD6F3BEF953471C8748835716FFD7EB" legis-path="783.(a)">subsection (a)</internal-xref>, an eligible entity shall
submit an application at such time, in such manner, and containing such
information as the Secretary shall require.</text>
</paragraph><paragraph id="HA8BE5BF4086D481188CD739C8D5F2741"><enum>(4)</enum><header>Priorities</header><text>In
awarding grants under
<internal-xref idref="H9AD6F3BEF953471C8748835716FFD7EB" legis-path="783.(a)">subsection (a)</internal-xref>, the Secretary shall give
priority to applications that—</text>
<subparagraph id="H2D98D9E9A0C74F778837DBD6AFD05FCE"><enum>(A)</enum><text>are from an
eligible entity with demonstrated experience in serving students from groups
that are underrepresented in postsecondary education, including institutions of
higher education that are eligible for assistance under title III or V, or are
from a consortium that includes an eligible entity with such experience;</text>
</subparagraph><subparagraph commented="no" id="H902DFA1AADFC475881E53602880943AC"><enum>(B)</enum><text display-inline="yes-display-inline">are from an eligible entity that is a
public institution of higher education that does not predominantly provide an
educational program for which it awards a bachelor's degree (or an equivalent
degree), or from a consortium that includes at least one such
institution;</text>
</subparagraph><subparagraph id="H25C7A401496A4AC692E9134B3DD072EF"><enum>(C)</enum><text display-inline="yes-display-inline">include activities to increase degree or
certificate completion in the fields of science, technology, engineering, and
mathematics, including preparation for, or entry into, postbaccaluareate study,
especially for women and other groups of students who are underrepresented in
such fields;</text>
</subparagraph><subparagraph id="H8E8A151DBC3647149BE6005F926041F3"><enum>(D)</enum><text display-inline="yes-display-inline">include activities to increase degree or
certificate completion for students who are veterans;</text>
</subparagraph><subparagraph id="HF27A802628FE4857831C83AF13C0D531"><enum>(E)</enum><text>include activities
that enhance the financial literacy and awareness of students who are
potentially eligible for assistance under this Act, especially those students
from groups that are traditionally underrepresented in postsecondary
education;</text>
</subparagraph><subparagraph id="HB8B2D7A4DEAB4C2281EB01F62EB94077"><enum>(F)</enum><text>include activities
to encourage dislocated workers (as such term is defined in section 101(9) of
the Workforce Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2801">29 U.S.C. 2801(9)</external-xref>) to complete
postsecondary education opportunities;</text>
</subparagraph><subparagraph id="H64A8BD38FE4F439E949C6D90FD64BC0C"><enum>(G)</enum><text>are from an
eligible entity that is a philanthropic organization with the primary purpose
of providing scholarships and support services to students from groups that are
underrepresented in postsecondary education, or are from a consortium that
includes such an organization; or</text>
</subparagraph><subparagraph id="H994171E1507B4B4A81104735A5B99380"><enum>(H)</enum><text>are from an
eligible entity that encourages partnerships between institutions of higher
education with high degree-completion rates and institutions of higher
education with low degree-completion rates from the same category of
institutions described in section 132(d) to facilitate the sharing of
information relating to, and the implementation of, best practices for
increasing postsecondary completion.</text>
</subparagraph></paragraph><paragraph id="H4A2ED1F6DC0446AFB54CFE3A50EEE29B"><enum>(5)</enum><header>Technical
assistance</header><text>The Secretary may reserve up to $5,000,000 per year to
award grants and contracts to provide technical assistance to eligible entities
receiving a grant under
<internal-xref idref="H9AD6F3BEF953471C8748835716FFD7EB" legis-path="783.(a)">subsection (a)</internal-xref>, including technical
assistance on the evaluation conducted in accordance with
<internal-xref idref="H7117993E7BAE4E64A4E5DD0DF307A7CC" legis-path="784.">section 784</internal-xref> and establishing networks of
eligible entities receiving grants under such subsection.</text>
</paragraph></subsection><subsection id="H6FF3A6E2782D448A97F25AFAA77B5F4F"><enum>(d)</enum><header>Reports</header>
<paragraph id="H09CD12C9961B4647B7814FB4F893F5B7"><enum>(1)</enum><header>Annual reports
by entities</header><text display-inline="yes-display-inline">Each eligible
entity receiving a grant under
<internal-xref idref="H9AD6F3BEF953471C8748835716FFD7EB" legis-path="783.(a)">subsection (a)</internal-xref> shall submit to the
Secretary an annual report on—</text>
<subparagraph id="H048C880C6C1F4DF89C178EA7079C7430"><enum>(A)</enum><text>the effectiveness
of the program carried out with such grant in increasing postsecondary
completion, as determined by measurable progress in achieving the goals of the
program, as described in the application for such grant; and</text>
</subparagraph><subparagraph id="H057CD0EBDE2D4F6A8B776AF463830C2A"><enum>(B)</enum><text>any other
information or assessments the Secretary may require.</text>
</subparagraph></paragraph><paragraph id="H20758704FA694A5D9975DC0E54853353"><enum>(2)</enum><header>Annual report to
Congress</header><text>The Secretary shall submit to the authorizing committees
an annual report on grants awarded under
<internal-xref idref="H9AD6F3BEF953471C8748835716FFD7EB" legis-path="783.(a)">subsection (a)</internal-xref>, including—</text>
<subparagraph id="H9E50978E50DD4EE5B6F9CF26335A3E41"><enum>(A)</enum><text>the amount awarded
to each eligible entity receiving a grant under such subsection; and</text>
</subparagraph><subparagraph id="H7DFA0423A13249119BFB9D60AF6AC8BB"><enum>(B)</enum><text>a description of
the activities conducted by each such eligible entity.</text>
</subparagraph></paragraph></subsection></section><section id="H7117993E7BAE4E64A4E5DD0DF307A7CC"><enum>784.</enum><header>Evaluation</header><text display-inline="no-display-inline">From the amount appropriated under section
781(a)(2)(D), the Director of the Institute of Education Sciences shall
evaluate the programs funded under this part. Not later than January 30, 2016,
the Director shall issue a final report on such evaluation to the authorizing
committees and the Secretary, and shall make such report available to the
public.</text>
</section><section id="H02ACDAA8E7B64BB9A50B3C08CA6BBB50"><enum>785.</enum><header>Participation
of private, nonprofit institutions of higher education</header>
<subsection id="H42501710DC0A481898ADD2C7ACD25551"><enum>(a)</enum><header>Voluntary
participation</header><text display-inline="yes-display-inline">A private,
nonprofit institution of higher education may voluntarily elect to participate
in a State’s efforts under this part to increase postsecondary enrollment,
persistence, and completion. A State—</text>
<paragraph id="HE61607B8C00C4F31954C8EE1A165A580"><enum>(1)</enum><text>shall not require
any private, nonprofit institution to participate in such efforts; and</text>
</paragraph><paragraph id="H2946169BA87444E48822AFAEBDF68B62"><enum>(2)</enum><text>may require such
an institution that voluntarily elects to participate in such efforts to
provide appropriate information to allow the State to assess the institution’s
progress towards the goals described in subclauses (I) and (II) of section
782(c)(2)(A)(i).</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HCEB6910BFEDF46E8B1B6255E29F0D192"><enum>(b)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">Nothing in this
part, including voluntary participation described in
<internal-xref idref="HBD9D921A32FD4036A05444E0745A390F" legis-path="785.(a)">subsection (a)</internal-xref>, shall be construed
to—</text>
<paragraph id="H07E63E9445864D97A050475DD522319D"><enum>(1)</enum><text>authorize the
Secretary, a State, or an officer or employee of the Department or of a State
to exercise any direction, supervision, or control other than that is currently
granted over a private, nonprofit institution of higher education, including
control over curriculum, program of instruction, administration, governance,
personnel, articulation, the awarding of credit, graduation or degree
requirements, or admissions;</text>
</paragraph><paragraph id="H9F4572A359C24F668BC6CBD5B4927EAE"><enum>(2)</enum><text>authorize the
Secretary, a State, or an officer or employee of the Department or of a State
to require a private, nonprofit institution of higher education to participate
in a longitudinal data system; or</text>
</paragraph><paragraph id="H1A7D11A86C874AF0BCB31FCCF65533A2"><enum>(3)</enum><text>limit the
application of the General Education Provisions Act.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H3EAD81F4D4934C58AF1C268F7DFCBA84"><enum>(c)</enum><header>Enforcement</header><text display-inline="yes-display-inline">If any State fails or refuses to comply
with any provision of this section, the State shall no longer be eligible for
assistance under this
part.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HD94C6C5A19B344DEAE3C022814C15EC6"><enum>103.</enum><header>Investment in
historically Black colleges and universities and other minority-serving
institutions</header><text display-inline="no-display-inline">Section 371
(<external-xref legal-doc="usc" parsable-cite="usc/20/1067q">20 U.S.C.
1067q</external-xref>) is amended—</text>
<paragraph id="H604821BD77394CC28A98173EC24CA665"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph commented="no" id="H1A76EA358EA8409D9A970CC2F2E8E26C"><enum>(A)</enum><text>in paragraph (2),
by striking <quote>section 502</quote> and inserting <quote>section
502(a)</quote>;</text>
</subparagraph><subparagraph id="H4E88A8E6DE40474CACABF3F0F800BBAF"><enum>(B)</enum><text>in paragraph (3),
by striking <quote>section 316</quote> and inserting <quote>section
316(b)</quote>;</text>
</subparagraph><subparagraph id="H50DF57105F144926B325B7C8B3454547"><enum>(C)</enum><text>in paragraph (5),
by striking <quote>in subsection (c)</quote> and inserting <quote>in section
318(b)</quote>;</text>
</subparagraph><subparagraph id="HF98AE59CC1F744228188334D936EEC5B"><enum>(D)</enum><text>in paragraph (6),
by striking <quote>in subsection (c)</quote> and inserting <quote>in section
320(b)</quote>; and</text>
</subparagraph><subparagraph id="H7E5B312C14774EC98267E6EEB3A270FE"><enum>(E)</enum><text>in paragraph (7),
by striking <quote>in subsection (c)</quote> and inserting <quote>in section
319(b)</quote>;</text>
</subparagraph></paragraph><paragraph id="H82280BADA3D641E2845C8B76F4A18F6F"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="H678E89CBF581401FBDEE4501C536622B"><enum>(A)</enum><text>in paragraph
(1)(A), by striking <quote>$255,000,000</quote> and all that follows and
inserting <quote>$255,000,000 for each of the fiscal years 2008 through 2019.
The authority to award grants under this section shall expire at the end of
fiscal year 2019.</quote>; and</text>
</subparagraph><subparagraph id="HC68F1CCCD53443E3A3471CFE37A7F859"><enum>(B)</enum><text>by amending
paragraph (2)(B) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H0C74E756E3884B8C8927D5B821ED3ABB" style="OLC">
<subparagraph id="H3EEC5BF2946D45CF954810E973C75A6A"><enum>(B)</enum><header>Stem and
articulation programs</header><text>From the amount made available for
allocation under this subparagraph by subparagraph (A)(i) for any fiscal
year—</text>
<clause id="H9E843342AC6742EC86FE4FE1D6056ED0"><enum>(i)</enum><text>90
percent shall be available for Hispanic-serving institutions for activities
described in sections 503 and 513, with a priority given to applications that
propose—</text>
<subclause id="H2D33C1D4BB5E4FEFBB3A88FD7C5000C5"><enum>(I)</enum><text>to increase the
number of Hispanic and other low-income students attaining degrees in the
fields of science, technology, engineering, or mathematics; and</text>
</subclause><subclause id="HA362ACFA4B2947E3AE6BA3EA2348BC05"><enum>(II)</enum><text>to develop model
transfer and articulation agreements between 2-year Hispanic-serving
institutions and 4-year institutions in such fields; and</text>
</subclause></clause><clause id="HED459F1E49AE48E8A8A0C43AD1860BF8"><enum>(ii)</enum><text>10 percent shall
be available for grants under section
355.</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HFAA90BC39C754C919BFB0097A4381075"><enum>(C)</enum><text>in paragraph
(2)(C)(ii), by striking <quote>and shall be available for a competitive</quote>
and all that follows and inserting <quote>and shall be made available as grants
under section 318 and allotted among such institutions under section 318(e),
treating such amount, plus the amount appropriated for such fiscal year in a
regular or supplemental appropriation Act to carry out section 318, as the
amount appropriated to carry out section 318 for purposes of allotments under
section 318(e).</quote>; and</text>
</subparagraph><subparagraph id="H7C5B94B80C7E464FA423B6D8F9E96B09"><enum>(D)</enum><text>in paragraph
(2)(D)—</text>
<clause id="HDA6F56DD93484AE5B92EBF8FFF2A8D42"><enum>(i)</enum><text>in
clause (iii), by striking <quote>for activities described in section
311(c)</quote> and inserting <quote>and shall be made available as grants under
section 320, treating such $5,000,000 as part of the amount appropriated for
such fiscal year in a regular or supplemental appropriation Act to carry out
such section and using such $5,000,000 for purposes described in subsection (c)
of such section</quote>; and</text>
</clause><clause id="HDBFEFA31F6A64C8D9E24DD64F7E08BB7"><enum>(ii)</enum><text>in
clause (iv), by striking <quote>described in subsection (a)(7)—</quote> and all
that follows and inserting <quote>and shall be made available as grants under
section 319, treating such $5,000,000 as part of the amount appropriated for
such fiscal year in a regular or supplemental appropriation Act to carry out
such section and using such $5,000,000 for purposes described in subsection (c)
of such section.</quote>; and</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="HF009E1CA56CB4749B10C36FA85118BE4"><enum>(3)</enum><text>by striking
subsection (c).</text>
</paragraph></section><section id="H90AAC1C21C5847DE8E8AA4B3F91E0466"><enum>104.</enum><header>Investment in
cooperative education</header><text display-inline="no-display-inline">There
are authorized to be appropriated, and there are appropriated, to carry out
part N of title VIII of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1161n">20 U.S.C. 1161n</external-xref>)
(in addition to any other amounts appropriated to carry out such part and out
of any money in the Treasury not otherwise appropriated), $10,000,000 for
fiscal year 2010. The authority to award grants under part N of title VIII of
such Act shall expire at the end of fiscal year 2010.</text>
</section><section commented="no" id="H40C4B3F6C75548908A1A4F29B52C381E"><enum>105.</enum><header>Loan
forgiveness for servicemembers activated for duty</header>
<subsection commented="no" id="H0C4EE0092190444698B9A95832BC4E7D"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 484B(b)(2)
(<external-xref legal-doc="usc" parsable-cite="usc/20/1091b">20 U.S.C.
1091b(b)(2)</external-xref>) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HB2F2C35DB2E14B5CB552EF1080E9F7E3" style="OLC">
<subparagraph commented="no" id="H963DA9910FEE42D1B454C1252E47E0C7"><enum>(F)</enum><header>Tuition relief
for students called to military service</header>
<clause commented="no" id="H0619869662F74F7DA5C32290B20D241F"><enum>(i)</enum><header>Waiver of
repayment by students called to military service</header><text display-inline="yes-display-inline">In addition to the waivers authorized by
subparagraphs (D) and (E), the Secretary shall waive the amounts that students
are required to return under this section if the withdrawals on which the
returns are based are withdrawals necessitated by reason of service in the
uniformed services.</text>
</clause><clause commented="no" id="H559185BFBE8C4AC4B361D9D6AC90AE74"><enum>(ii)</enum><header>Loan
forgiveness authorized</header><text display-inline="yes-display-inline">Whenever a student’s withdrawal from an
institution of higher education is necessitated by reason of service in the
uniformed services, the Secretary shall, with respect to the payment period or
period of enrollment for which such student did not receive academic credit as
a result of such withdrawal, carry out a program—</text>
<subclause commented="no" id="H9AFC3CA1A7EC41CDA4161E7C2BB35122"><enum>(I)</enum><text>through the holder
of the loan, to assume the obligation to repay—</text>
<item commented="no" id="H160D3627032E4023891D30DA0BA1B72B"><enum>(aa)</enum><text display-inline="yes-display-inline">the outstanding principal and accrued
interest on any loan assistance first disbursed to the student before July 1,
2010, under part B (including to a parent on behalf of the student under
section 428B) for such payment period or period of enrollment; minus</text>
</item><item commented="no" id="H81C81AA7C0E344668858C49105B25112"><enum>(bb)</enum><text>any amount of
such loan assistance returned by the institution in accordance with paragraph
(1) of this subsection for such payment period or period of enrollment;
and</text>
</item></subclause><subclause commented="no" id="H9245EDA9D027430EA671193B465E8759"><enum>(II)</enum><text>to cancel—</text>
<item commented="no" id="HFADDBFF4F43A4F33B62FE8954CCB133E"><enum>(aa)</enum><text display-inline="yes-display-inline">the outstanding principal and accrued
interest on the loan assistance disbursed to the student under part D
(including a Federal Direct PLUS loan disbursed to a parent on behalf of the
student), or first disbursed to the student under part E before July 1, 2010,
for such payment period or period of enrollment; minus</text>
</item><item commented="no" id="H23D42AC2C3DB4465A675FCF5CEFA640B"><enum>(bb)</enum><text>any amount of
such loan assistance returned by the institution in accordance with paragraph
(1) of this subsection for such payment period or period of enrollment.</text>
</item></subclause></clause><clause commented="no" id="H46479D8071124C2FBD2BA9AE6D84FDEA"><enum>(iii)</enum><header>Reimbursement
for cancellation of Perkins loans</header><text>The Secretary shall pay to each
institution for each fiscal year an amount equal to the aggregate of the
amounts of Federal Perkins loans in such institutions’s student loan fund which
are cancelled pursuant to clause (iii)(II) for such fiscal year, minus an
amount equal to the aggregate of the amounts of any such loans so canceled
which were made from Federal capital contributions to its student loan fund
provided by the Secretary under section 468. None of the funds appropriated
pursuant to section 461(b) shall be available for payments pursuant to this
paragraph. To the extent feasible, the Secretary shall pay the amounts for
which any institution qualifies under this paragraph not later than 3 months
after the institution files an institutional application for campus-based
funds.</text>
</clause><clause commented="no" id="HF8B925833BE34F979D97BBFAF7FE05ED"><enum>(iv)</enum><header>Loan
eligibility and limits for students</header><text display-inline="yes-display-inline">Any amounts that are returned by an
institution in accordance with paragraph (1), or forgiven or waived by the
Secretary under this subparagraph, with respect to a payment period or period
of enrollment for which a student did not receive academic credit as a result
of withdrawal necessitated by reason of service in the uniformed services,
shall not be included in the calculation of the student’s annual or aggregate
loan limits for assistance under this title, or otherwise affect the student’s
eligibility for grants or loans under this title.</text>
</clause><clause commented="no" id="H018C4E909F904CDD804B77DC06A1FC1E"><enum>(v)</enum><header>Definition</header><text>In
this subparagraph, the term <quote>service in the uniformed services</quote>
has the meaning given such term in section
484C(a).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H45C616BBEE264E3A8094073FE13DC19A"><enum>(b)</enum><header>Effective
date</header>
<paragraph commented="no" id="H14FCBD2A06074F4F937E94759A7E0685"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall take effect for
periods of service in the uniformed services beginning after the date of the
enactment of this Act.</text>
</paragraph><paragraph commented="no" id="H3B69FE64A7BC45A28B71BA067BD672C9"><enum>(2)</enum><header>Definition</header><text display-inline="yes-display-inline">In this paragraph, the term <quote>period
of service in the uniformed services</quote> means the period beginning 30 days
prior to the date a student is required to report to service in the uniformed
services (as defined in section 484C(a) of the Higher Education Act of 1965
(<external-xref legal-doc="usc" parsable-cite="usc/20/1091c">20 U.S.C.
1091c(a)</external-xref>) and ending upon termination of the deployment of such
student for such service.</text>
</paragraph></subsection></section><section commented="no" id="H33EDB2E4D0AE4A42B8EB3E94D97D930E"><enum>106.</enum><header>Veterans
Resource Officer Grants</header><text display-inline="no-display-inline">Section 873 (<external-xref legal-doc="usc" parsable-cite="usc/20/1161t">20 U.S.C. 1161t</external-xref>) is
amended—</text>
<paragraph commented="no" id="HE87FE4A39D2E4084A05F5DF2FC9CF840"><enum>(1)</enum><text>by amending the
header to read as follows: <quote><header-in-text level="section" style="OLC">Model Programs for Centers of Excellence for Veteran Student
Success; Veterans Resource Officers</header-in-text></quote>;</text>
</paragraph><paragraph commented="no" id="H8B403084A7E0496EB0D68EF9DA4C1DF9"><enum>(2)</enum><text>in subsection (a),
by inserting <quote>, or Veterans Resource Officers,</quote> after <quote>model
programs</quote>;</text>
</paragraph><paragraph id="H59F9C5CFE92140D191C26133DFB1CC9A"><enum>(3)</enum><text>by amending
subsection (b) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HC52352CB1088419EB8B4D1BEE9CB8926" style="OLC">
<subsection id="H21D6A0754E4E4C5BA9A7F4848A1B87EA"><enum>(b)</enum><header>Grant
Authorized</header>
<paragraph id="H9DEF24E4BC054D0F9025909CB4F7CB35"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subject to the
availability of appropriations under subsection (f), the Secretary shall award
grants to institutions of higher education to—</text>
<subparagraph id="HB7037ED947684730B85AF0F229B32C16"><enum>(A)</enum><text>develop model
programs to support veteran student success in postsecondary education;
or</text>
</subparagraph><subparagraph id="H3AB6D57DC14D4F3E94EDCACD19F716CE"><enum>(B)</enum><text>hire a Veterans
Resource Officer to increase the college completion rates for veteran students
enrolled at such institutions of higher education.</text>
</subparagraph></paragraph><paragraph id="H281FE93CC282468BA67F78C8AF872ED7"><enum>(2)</enum><header>Grant
period</header><text display-inline="yes-display-inline">A grant awarded under
this section shall be awarded for a period of 3
years.</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1BB058BD1CDE40FC857A010B39533AEE"><enum>(4)</enum><text>in subsection
(c)—</text>
<subparagraph commented="no" id="H7C29C8EFADA740778B45E0266731B2AD"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause commented="no" id="HCFAAFB7DABE849BF9424A7DFD465740C"><enum>(i)</enum><text>by amending the
header to read as follows: <quote><header-in-text level="paragraph" style="OLC">Model program required activities</header-in-text></quote>;
and</text>
</clause><clause commented="no" id="HDF9899BBD2CB4823B95DF0AA57701E3A"><enum>(ii)</enum><text>in the matter
preceding subparagraph (A), by striking <quote>under this section</quote> and
inserting <quote>for the purpose described in subsection
(b)(1)(A)</quote>;</text>
</clause></subparagraph><subparagraph id="H57902D568A7348E48CBC3D1ABC2F6885"><enum>(B)</enum><text>by redesignating
paragraph (2) as paragraph (3); and</text>
</subparagraph><subparagraph id="HECA2430B320445E5B4079A9ACFC07B62"><enum>(C)</enum><text>by inserting after
paragraph (1) the following:</text>
<quoted-block display-inline="no-display-inline" id="H5E98FF46583F4B42BDA78E06BBC75076" style="OLC">
<paragraph id="HD74051F8606E41C8B1E48C23F9804FCC"><enum>(2)</enum><header>Veterans
Resource Officer required activities</header><text display-inline="yes-display-inline">An institution of higher education
receiving a grant for the purpose described in subsection (b)(1)(B) shall use
such grant to hire a Veterans Resource Officer whose duties shall
include—</text>
<subparagraph id="H50D8DE4AD0154470B0E966B7CF0A1F3D"><enum>(A)</enum><text>serving as a
liaison between—</text>
<clause id="H6A9D054BDC0548088F75078202DC7F68"><enum>(i)</enum><text>veteran
students;</text>
</clause><clause id="H64A65E3D6DE84CD69684290EE1D3B4D5"><enum>(ii)</enum><text>the faculty and
staff of the institution;</text>
</clause><clause id="HB18BAE7D9C224371B4632A3F6E9E070D"><enum>(iii)</enum><text>local facilities
of the Department of Veterans Affairs; and</text>
</clause><clause id="H0F5699CA41C14ABB9E364330AE9C9693"><enum>(iv)</enum><text>mental healthcare
providers at the Department of Veterans Affairs to ensure that veteran students
are referred to such providers if needed; and</text>
</clause></subparagraph><subparagraph id="H99091B19BBED4D30940680580ADE09A5"><enum>(B)</enum><text>organizing and
advising veteran student organizations and hosting veterans-oriented group
functions on campus;</text>
</subparagraph><subparagraph id="HB73CA085ABE846A7AFD5A0D78D5CE346"><enum>(C)</enum><text>distributing news
and information to all veteran students, including through maintaining
newsletters and listserves; and</text>
</subparagraph><subparagraph id="H0DA29502E1AF4EEEBB84B4002E7E2850"><enum>(D)</enum><text>assisting in the
training of Department of Veterans Affairs certifying officials, when
applicable.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section><section id="HDE8807AF46784AD6B768952427CE6843"><enum>107.</enum><header>Officer Daniel
Faulkner Children of Fallen Heroes Scholarship</header>
<subsection id="HADB98836628F4F10872028B00F35AEF7"><enum>(a)</enum><header>Short
title</header><text>This section may be cited as the <quote><short-title>Officer Daniel Faulkner Children of Fallen Heroes
Scholarship Act of 2009</short-title></quote>.</text>
</subsection><subsection id="H2AB96FD8A9664748947637768EFCC494"><enum>(b)</enum><header>Calculation of
eligibility</header><text>Section 473(b) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087mm">20 U.S.C. 1087mm(b)(2)</external-xref>) is
amended—</text>
<paragraph id="HF5E5B0A9C2704F4D8DEF32476EB1FA1F"><enum>(1)</enum><text>in paragraph
(2)—</text>
<subparagraph id="H12E9885FF80A4F3688135659831457A2"><enum>(A)</enum><text>in the matter
preceding subparagraph (A), by inserting <quote>(in the case of a student who
meets the requirement of subparagraph (B)(i)), or academic year 2010–2011 (in
the case of a student who meets the requirement of subparagraph
(B)(ii)),</quote> after <quote>academic year 2009–2010</quote>; and</text>
</subparagraph><subparagraph id="H25DC674F283C4206908064AF62F60AE8"><enum>(B)</enum><text>by amending
subparagraph (B) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HC1CB00A87241421DB9DEDCC9CB8ADDA4" style="OLC">
<subparagraph id="HAF0BC6EAA8D04E0AACEE69BE59B94E7B"><enum>(B)</enum><text display-inline="yes-display-inline">whose parent or guardian was—</text>
<clause id="H3D8F33A3614D488B917992CD1A334F7D"><enum>(i)</enum><text>a
member of the Armed Forces of the United States and died as a result of
performing military service in Iraq or Afghanistan after September 11, 2001;
or</text>
</clause><clause id="HED888F0E18F14F349EBE0C03661E3A75"><enum>(ii)</enum><text display-inline="yes-display-inline">was actively serving as a public safety
officer and died in the line of duty while performing as a public safety
officer; and</text>
</clause></subparagraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HAFE0C43FCE3B4B76AF3688E180D13993"><enum>(2)</enum><text>in paragraph
(3)—</text>
<subparagraph id="H085940EF95264560B2183AFD7CCB893D"><enum>(A)</enum><text>by striking
<quote>Notwithstanding</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H9C04101E070C4A1EB364744A59B7E852" style="OLC">
<subparagraph id="HC4D16CD23E874BD98A1C3513FAE34A68"><enum>(A)</enum><header>Armed
Forces</header><text display-inline="yes-display-inline">Notwithstanding</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H92B865FA67834A55A35AA5148D5BE622"><enum>(B)</enum><text>by striking
<quote>paragraph (2)</quote> and inserting <quote>subparagraphs (A), (B)(i),
and (C) of paragraph (2)</quote>; and</text>
</subparagraph><subparagraph id="H2D77D954CA6A4435AC1649888E4EA663"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H58510B4AA7364804ADA47EC5D7FF9CC9" style="OLC">
<subparagraph id="H2869778A72FA4DB2819F8F235A1502DA"><enum>(B)</enum><header>Public Safety
Officers</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of law, unless the Secretary establishes an alternate method to
adjust the expected family contribution, a financial aid administrator shall
adjust the expected family contribution in accordance with this subsection for
each student who meets the requirements of subparagraphs (A), (B)(ii), and (C)
of paragraph (2).</text>
</subparagraph><after-quoted-block>; and
</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H5C9EF03DC36F4032B5879F04E9801BEE"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HBF700CBB151342B8A8DA59618067500A" style="OLC">
<paragraph id="H1207354951DF489895E44FC5AB1C8876"><enum>(4)</enum><header>Treatment of
Pell amount</header><text display-inline="yes-display-inline">Notwithstanding
section 1212 of the Omnibus Crime Control and Safe Streets Act of 1968, in the
case of a student who receives an increased Federal Pell Grant amount under
this section, the total amount of such Federal Pell Grant, including the
increase under subparagraph (A), shall not be considered in calculating that
student’s educational assistance benefits under the Public Safety Officer’s
Benefits program.</text>
</paragraph><paragraph id="HDFAD0EB3CB2D4AA69A26A909B73BEA5F"><enum>(5)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection—</text>
<subparagraph id="H6BC604C033FD4C40AC805E534C0F7357"><enum>(A)</enum><text display-inline="yes-display-inline">the term <term>public safety officer</term>
means an individual serving a public agency in an official capacity, with or
without compensation, as a law enforcement officer, as a firefighter, or as a
member of a rescue squad or ambulance crew;</text>
</subparagraph><subparagraph commented="no" id="HC219EDFB82A641139A5F56C0614D59B4"><enum>(B)</enum><text>the term <term>law
enforcement officer</term> means an individual who—</text>
<clause commented="no" id="HD316B29C9B50438B95C461C51B7E9D90"><enum>(i)</enum><text>is authorized by
law to engage in or supervise the prevention, detection, investigation, or
prosecution of, or the incarceration of any person for, any violation of law;
and</text>
</clause><clause commented="no" id="H367D79D80A73482AA522DBD70DF369F8"><enum>(ii)</enum><text>has statutory
powers of arrest or apprehension;</text>
</clause></subparagraph><subparagraph commented="no" id="HD0317C08D9154AE58885D63C44BCF125"><enum>(C)</enum><text>the term
<term>firefighter</term> means an individual who is trained in the suppression
of fire or hazardous-materials response and has the legal authority to engage
in these duties;</text>
</subparagraph><subparagraph commented="no" id="H7A49F3B409304145A46D9D6EBBAAEA9F"><enum>(D)</enum><text>the term
<term>member of a rescue squad or ambulance crew</term> means an individual who
is an officially recognized or designated public employee member of a rescue
squad or ambulance crew; and</text>
</subparagraph><subparagraph commented="no" id="H8BCD05011EB64B57B5788C10C31D9294"><enum>(E)</enum><text>the term
<term>public agency</term> means the United States, any State of the United
States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin
Islands of the United States, Guam, American Samoa, the Trust Territory of the
Pacific Islands, the Commonwealth of the Northern Mariana Islands, any
territory or possession of the United States, or any unit of local government,
department, agency, or instrumentality of any of the foregoing, and the Amtrak
Police and Federal Reserve Police
departments.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="HAB9CB648368146A48B0B3B4F43E63C96"><enum>108.</enum><header>Teacher
Excellence</header>
<subsection id="HD363F155A11244DCAC84CB497D29DB39"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">The Secretary of Education may make grants
to local educational agencies for the purpose of improving teacher excellence
in public elementary and secondary schools.</text>
</subsection><subsection id="HC89787E6C840406FA581C505A33CB137"><enum>(b)</enum><header>Use of
funds</header><text>Grants under this section shall be used for the
establishment, expansion, or improvement of—</text>
<paragraph id="HD91C6560D46748A9A589603DAAD7AE5D"><enum>(1)</enum><text>professional
development activities that are aligned to the curriculum and student academic
needs;</text>
</paragraph><paragraph id="H63D2F9162E5946DEB8F03C7B89A78799"><enum>(2)</enum><text>mentoring and
induction programs for new teachers and principals; or</text>
</paragraph><paragraph id="H226591465694460889B9258606A61CFE"><enum>(3)</enum><text>career ladders
that allow teachers to take on new professional roles, such as career teachers,
mentor teachers, and master teachers.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HC9435CC72DF54CEF86AA32FA6FBB5381"><enum>(c)</enum><header>Application</header><text>A
local educational agency desiring a grant under this section shall submit to
the Secretary of Education an application at such time, in such manner, and
accompanied by such information as the Secretary may reasonably require.</text>
</subsection><subsection id="H0713AE668A734515B808F23579677B92"><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 2010 and each of
the 5 succeeding fiscal years.</text>
</subsection></section></subtitle><subtitle id="H55160C9BD7D74A7FB88E2415B8EECBD3"><enum>B</enum><header>Student Financial
Aid Form Simplification</header>
<section id="H21C7844B3E8B4BC3B08A29CA56824477" section-type="subsequent-section"><enum>121.</enum><header>General effective
date</header><text display-inline="no-display-inline">Except as otherwise
provided in this subtitle, amendments made by this subtitle shall be effective
with respect to determinations of need for assistance under title IV of the
Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1070">20 U.S.C. 1070 et seq.</external-xref>) for award
years beginning on or after July 1, 2011.</text>
</section><section id="HB483961CA5CB4537B38624E7B4904621"><enum>122.</enum><header>Treatment of
assets in need analysis</header>
<subsection id="HE4DBA1A5AE1E487DB144229819EEFEC1"><enum>(a)</enum><header>Amount of
need</header><text display-inline="yes-display-inline">Section 471
(<external-xref legal-doc="usc" parsable-cite="usc/20/1087kk">20 U.S.C.
1087kk</external-xref>) is amended—</text>
<paragraph id="HB649B7206BAC459F9B0CADD9FE797896"><enum>(1)</enum><text>by striking
<quote>Except</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HC93F65D5CD6741218D7C7D6B6594813E" style="OLC">
<subsection id="H785397BE611C4C33B34E7CD345F1A4A2"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Except</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H0E2AA9A45F19404E9BAD4A8A0EAE62FD"><enum>(2)</enum><text>by inserting
<quote>and subject to subsection (b)</quote> after <quote>therein</quote>;
and</text>
</paragraph><paragraph id="HEE156FC213E5471B919FBA32AEC63B06"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H89D4C89773CB4FD596E930B88D213CBC" style="OLC">
<subsection id="H80618693FC39455D919F397EDCE905DD"><enum>(b)</enum><header>Asset cap for
need-based aid</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this
title, a student shall not be eligible to receive a Federal Pell Grant or a
Federal Direct Stafford Loan under this title if—</text>
<paragraph id="H02DF96E68DB04ECABD27397BAA745836"><enum>(1)</enum><text display-inline="yes-display-inline">in the case of a dependent student, the
combined net assets of the student and the student’s parents are equal to an
amount greater than $150,000 (or a successor amount prescribed by the Secretary
under section 478(c)); or</text>
</paragraph><paragraph id="HC25B593767D34660BFEB5A737864D8C0"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of an independent student, the
net assets of the student (and the student’s spouse, if applicable) are equal
to an amount greater than $150,000 (or a successor amount prescribed by the
Secretary under section
478(c)).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HBFF48A5026D5496BAC36018B79E20A96"><enum>(b)</enum><header>Data
elements</header><text>Section 474(b) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087nn">20 U.S.C. 1087nn(b)</external-xref>) is
amended—</text>
<paragraph id="HC7D74B25341149409D296A6E25B64E56"><enum>(1)</enum><text>by striking
paragraph (4); and</text>
</paragraph><paragraph id="H613A088DB13A4519B52A72E61836DBF1"><enum>(2)</enum><text>by redesignating
paragraphs (5), (6), and (7) as paragraphs (4), (5), and (6),
respectively.</text>
</paragraph></subsection><subsection id="HC55F96D680B24C9BB6E5C633E16F23B8"><enum>(c)</enum><header>Dependent
students</header><text>Section 475 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087oo">20 U.S.C. 1087oo</external-xref>) is
amended—</text>
<paragraph id="H418E6286009847CA99663B4F1678165C"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="H354D541783B542E3B8C230C51FF7204C"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text>
<clause id="H4BD9036A752940339593885E1434C156"><enum>(i)</enum><text>by
striking <quote>adjusted</quote>; and</text>
</clause><clause id="HD1EE2C8BDCCB4B46B71EE937C72401A6"><enum>(ii)</enum><text>by
inserting <quote>and</quote> after the semicolon;</text>
</clause></subparagraph><subparagraph id="HEC94E33FEEB54731A4735D4167BA5917"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>; and</quote> and inserting a period; and</text>
</subparagraph><subparagraph id="H30AC13E54BC74F16A11ABACAB9FE5CB2"><enum>(C)</enum><text>by striking
paragraph (3);</text>
</subparagraph></paragraph><paragraph id="HCD012E47DDD140AD9F958B6C94ACFDBB"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="HFB15D50F63274647A16E1FCA0D1E6B69"><enum>(A)</enum><text>in the header, by
striking <quote><header-in-text level="subsection" style="OLC">adjusted</header-in-text></quote>;</text>
</subparagraph><subparagraph id="H207EECDCA7924A1A9D09D07EA0EB03C0"><enum>(B)</enum><text>in the matter
preceding paragraph (1), by striking <quote>adjusted</quote>;</text>
</subparagraph><subparagraph id="HFC850080ABFE49278B456E6E40A398A9"><enum>(C)</enum><text>by striking
paragraph (1);</text>
</subparagraph><subparagraph id="H9EF8988E4D22499C95BCED7EBF32B7AA"><enum>(D)</enum><text>by redesignating
paragraphs (2) and (3) as paragraphs (1) and (2), respectively;</text>
</subparagraph><subparagraph id="H63D817B47E7A4C838295945A24FC85D1"><enum>(E)</enum><text>in paragraph (1)
(as redesignated by
<internal-xref idref="H9EF8988E4D22499C95BCED7EBF32B7AA" legis-path="122.(c)(2)(D)">subparagraph (D)</internal-xref> of this paragraph),
by striking <quote>adjusted</quote>; and</text>
</subparagraph><subparagraph id="HA69B8D3B14AD4CD19AE45BC97355675E"><enum>(F)</enum><text display-inline="yes-display-inline">in paragraph (2) (as redesignated by
<internal-xref idref="H9EF8988E4D22499C95BCED7EBF32B7AA" legis-path="122.(c)(2)(D)">subparagraph (D)</internal-xref> of this paragraph),
by striking <quote>paragraph (2)</quote> and inserting <quote>paragraph
(1)</quote>;</text>
</subparagraph></paragraph><paragraph id="H71720A7668174002BC83541A31787BD9"><enum>(3)</enum><text>by repealing
subsection (d);</text>
</paragraph><paragraph id="H180BFF2136EF4BD2B32DAC2454A71AD8"><enum>(4)</enum><text>in subsection
(e)—</text>
<subparagraph id="H0B97622758CC4124A3590240703E82FC"><enum>(A)</enum><text>by striking
<quote>The adjusted available</quote> and inserting <quote>The
available</quote>;</text>
</subparagraph><subparagraph id="H60D93C31D9814637B71DC82495AF6325"><enum>(B)</enum><text>by striking
<quote>to as <quote>AAI</quote>)</quote> and inserting <quote>to as
<quote>AI</quote>)</quote>;</text>
</subparagraph><subparagraph id="H1D09D299081A41DC96A86E0449FA91D5"><enum>(C)</enum><text>by striking
<quote>From Adjusted Available Income (AAI)</quote> and inserting <quote>From
Available Income (AI)</quote>; and</text>
</subparagraph><subparagraph id="HF9E92EDCEEC8420ABEDBFDF7B2178237"><enum>(D)</enum><text>in the
table—</text>
<clause id="HFF038ECFC5314BFA932E201EDC5553CB"><enum>(i)</enum><text>by
striking <quote><italic>If AAI</italic></quote> and inserting <quote><italic>If
AI</italic></quote>; and</text>
</clause><clause commented="no" id="H258DFE15B38C4B039A2743BCBCEBBBC4"><enum>(ii)</enum><text>by striking
<quote>of AAI</quote> each place it appears and inserting <quote>of
AI</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="HB2E3A1BAF0EE4404B7155C8E3A2934BC"><enum>(5)</enum><text>in subsection
(f)—</text>
<subparagraph id="HBD66B7C211624FB3A6C14B180F8DF400"><enum>(A)</enum><text>by striking
<quote>and assets</quote> each place it appears;</text>
</subparagraph><subparagraph id="HC08F721820C0474FB12102B3916C182D"><enum>(B)</enum><text>in paragraph
(2)(B), by striking <quote>or assets</quote>; and</text>
</subparagraph><subparagraph id="HA651FB8EC5D14206A55ED8886AC87363"><enum>(C)</enum><text>in paragraph
(3)—</text>
<clause id="H62AD988BC07A47BBA81BD2B52511358D"><enum>(i)</enum><text>by
striking <quote>are taken into</quote> and inserting <quote>is taken
into</quote>; and</text>
</clause><clause id="HBCEDDCA46C434D63B841D5884895CBA5"><enum>(ii)</enum><text>by
striking <quote>adjusted</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="H42E401C39F584B9E8803D9287474B4D5"><enum>(6)</enum><text>in subsection
(g)(6), by striking <quote>exceeds the sum of</quote> and all that follows and
inserting <quote>exceeds the parents’ total income (as defined in section
480).</quote>;</text>
</paragraph><paragraph id="HB2CA8A9A217A467F920D996D2A3C2F38"><enum>(7)</enum><text>by repealing
subsection (h); and</text>
</paragraph><paragraph id="HC5AB523681904D569CF00202A5D2236D"><enum>(8)</enum><text>in subsection (i),
by striking <quote>adjusted</quote> each place it appears.</text>
</paragraph></subsection><subsection id="H6010F4C4B3C947A5A7D80E2F03E412E0"><enum>(d)</enum><header>Family
contribution for independent students without dependents other than a
spouse</header><text>Section 476 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087pp">20 U.S.C. 1087pp</external-xref>) is
amended—</text>
<paragraph id="H03B523C6399F4B8FB6A7EF88410F1329"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)—</text>
<subparagraph id="HFEC2C90D96CE49629402ED8FA6DB336F"><enum>(A)</enum><text>by striking
paragraph (1);</text>
</subparagraph><subparagraph id="H761E5DB0667D4581A6CA01F6F4FA4532"><enum>(B)</enum><text>by redesignating
paragraphs (2) and (3) as paragraphs (1) and (2), respectively;</text>
</subparagraph><subparagraph id="HB39C2823DC714E37BA6A1BF029155965"><enum>(C)</enum><text>in paragraph (1)
(as redesignated by
<internal-xref idref="H761E5DB0667D4581A6CA01F6F4FA4532" legis-path="122.(d)(1)(B)">subparagraph (B)</internal-xref>), by striking
<quote>the sum resulting under paragraph (1)</quote> and inserting <quote>the
family’s contribution from available income (determined in accordance with
subsection (b))</quote>; and</text>
</subparagraph><subparagraph id="HA866AEF245D8448B857F06549ED932BB"><enum>(D)</enum><text display-inline="yes-display-inline">in paragraph (2)(A) (as redesignated by
<internal-xref idref="H761E5DB0667D4581A6CA01F6F4FA4532" legis-path="122.(d)(1)(B)">subparagraph (B)</internal-xref>), by striking
<quote>paragraph (2)</quote> and inserting <quote>paragraph (1)</quote>;</text>
</subparagraph></paragraph><paragraph id="H7FF493656785498FA3EF928F991CFEEE"><enum>(2)</enum><text>by repealing
subsection (c); and</text>
</paragraph><paragraph id="H2E9E482098BB4D9C9D685F50AA740C9C"><enum>(3)</enum><text>in subsection
(d)—</text>
<subparagraph id="H7EF76A06F84F4C528DC8A3A8B42DDEEC"><enum>(A)</enum><text>by striking
<quote>and assets</quote>; and</text>
</subparagraph><subparagraph commented="no" id="H79A59C2951FF490CA8C7422EA13E71B8"><enum>(B)</enum><text>by striking
<quote>or assets</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="H1AE5E39C09FE41D19188E69A1E6D27D3"><enum>(e)</enum><header>Family
contribution for independent students with dependents other than a
spouse</header><text display-inline="yes-display-inline">Section 477
(<external-xref legal-doc="usc" parsable-cite="usc/20/1087qq">20 U.S.C.
1087qq</external-xref>) is amended—</text>
<paragraph id="HF07A9C4981854208B5639C62C02AE484"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="H6256389AD4174FFEB91BC524B6329363"><enum>(A)</enum><text>by striking
paragraph (1);</text>
</subparagraph><subparagraph id="H3551091DFDC64CAC8A99A153CEE58AEA"><enum>(B)</enum><text>by redesignating
paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3),
respectively;</text>
</subparagraph><subparagraph id="HF48E18251CD14763B41A62951D229FE5"><enum>(C)</enum><text>in paragraph (1)
(as redesignated by
<internal-xref idref="H3551091DFDC64CAC8A99A153CEE58AEA" legis-path="122.(e)(1)(B)">subparagraph (B)</internal-xref>), by striking
<quote>such adjusted available income</quote> and inserting <quote>the family’s
available income (determined in accordance with subsection (b))</quote>;</text>
</subparagraph><subparagraph id="H2F4768A510BE422982E84E592652F20C"><enum>(D)</enum><text display-inline="yes-display-inline">in paragraph (2) (as redesignated by
<internal-xref idref="H3551091DFDC64CAC8A99A153CEE58AEA" legis-path="122.(e)(1)(B)">subparagraph (B)</internal-xref>), by striking
<quote>paragraph (2)</quote> and inserting <quote>paragraph (1)</quote>;
and</text>
</subparagraph><subparagraph id="H56C2D056AC5F448EA142D4049E892635"><enum>(E)</enum><text display-inline="yes-display-inline">in paragraph (3)(A) (as redesignated by
<internal-xref idref="H3551091DFDC64CAC8A99A153CEE58AEA" legis-path="122.(e)(1)(B)">subparagraph (B)</internal-xref>), by striking
<quote>paragraph (3)</quote> and inserting <quote>paragraph (2)</quote>;</text>
</subparagraph></paragraph><paragraph id="HF380C2C7A48241DEB33489DF77269F5F"><enum>(2)</enum><text>by repealing
subsection (c); and</text>
</paragraph><paragraph id="H63396EB4156C446994B8822FCB2D8652"><enum>(3)</enum><text>in subsection
(d)—</text>
<subparagraph display-inline="no-display-inline" id="HD2C09776B84B47A78B2B6D9ECB883852"><enum>(A)</enum><text>by striking
<quote>The adjusted available</quote> and inserting <quote>The
available</quote>;</text>
</subparagraph><subparagraph id="HFCA5609D0E044B35B21D61C6BEE44F10"><enum>(B)</enum><text>by striking
<quote>to as <quote>AAI</quote>)</quote> and inserting <quote>to as
<quote>AI</quote>)</quote>;</text>
</subparagraph><subparagraph id="HC0417838B0164D3FA316C631BBAE2598"><enum>(C)</enum><text>by striking
<quote>From Adjusted Available Income (AAI)</quote> and inserting <quote>From
Available Income (AI)</quote>; and</text>
</subparagraph><subparagraph id="H4A4FDD80054946E7818232F3B1AB25B5"><enum>(D)</enum><text>in the
table—</text>
<clause id="HCAA20AAF6296433D86258F79639EAC6D"><enum>(i)</enum><text>by
striking <quote><italic>If AAI</italic></quote> and inserting <quote><italic>If
AI</italic></quote>; and</text>
</clause><clause commented="no" id="H3D3C2795542941988B043AD6507F5945"><enum>(ii)</enum><text>by striking
<quote>of AAI</quote> each place it appears and inserting <quote>of AI</quote>;
and</text>
</clause></subparagraph><subparagraph id="H1C92A6EE23CE4BE6AF0DB10FC8997EA1"><enum>(E)</enum><text>in subsection
(e)—</text>
<clause commented="no" id="HF9ECD3CE58E346C08EE5C3E1F944D9C5"><enum>(i)</enum><text>by striking
<quote>and assets</quote>; and</text>
</clause><clause id="HF500960E7D8146E0944CFDD25229E99E"><enum>(ii)</enum><text>by
striking <quote>or assets</quote>.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H5D91296A26EB4713B27260E010C47DE3"><enum>(f)</enum><header>Regulations;
updated tables</header><text display-inline="yes-display-inline">Section 478
(<external-xref legal-doc="usc" parsable-cite="usc/20/1087rr">20 U.S.C.
1087rr</external-xref>) is amended—</text>
<paragraph id="H44058C03331F4C3BA13D6965B8A203E5"><enum>(1)</enum><text>in subsection (a),
by inserting <quote>or amounts, as the case may be,</quote> after
<quote>tables</quote> each place the term appears;</text>
</paragraph><paragraph id="H458E20E4FA2842D3B01A0D630FD3D5CE"><enum>(2)</enum><text>by amending
subsection (c) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H98241DC0A1E84F85A9D1536909A33F82" style="OLC">
<subsection id="HF4C80A7A13EA412A8AB354D8C6C7138B"><enum>(c)</enum><header>Asset cap for
need-based aid</header><text display-inline="yes-display-inline">For each award
year after award year 2011–2012, the Secretary shall publish in the Federal
Register a revised net asset cap for the purposes of section 471(b). Such
revised cap shall be determined by increasing the dollar amount in such section
by a percentage equal to the estimated percentage change in the Consumer Price
Index (as determined by the Secretary) between December 2010 and the December
preceding the beginning of such award year, and rounding the result to the
nearest
$5.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA5AB1E8CDF8D48A7A939D17B99788006"><enum>(3)</enum><text>by repealing
subsection (d); and</text>
</paragraph><paragraph id="HF47BBE529D7F402FBD294674D53B4DF0"><enum>(4)</enum><text>in subsection (e),
by striking <quote>adjusted</quote> both places it appears.</text>
</paragraph></subsection></section><section id="HBDCDF1E040624ED38AE610A5DD1B47FB"><enum>123.</enum><header>Changes to
total income; aid eligibility</header>
<subsection id="HE181CE1EB212421AAE4832E8669B510D"><enum>(a)</enum><header>Definition of
untaxed income and benefits</header><text display-inline="yes-display-inline">Section
480(b)(1) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087vv">20
U.S.C. 1087vv(b)(1)</external-xref>), as amended by the Higher Education
Opportunity Act (<external-xref legal-doc="public-law" parsable-cite="pl/110/315">Public Law 110–315</external-xref>), is
amended—</text>
<paragraph display-inline="no-display-inline" id="H227386C3C3A643E3A8E270E6C8D9FEE9"><enum>(1)</enum><text>by striking
subparagraphs (A), (B), (C), (E), (F), and (I);</text>
</paragraph><paragraph id="HB227BC185F9344DEB68F34FDDF68D8A6"><enum>(2)</enum><text>by redesignating
subparagraphs (D), (G), and (H) as subparagraphs (A), (B), and (C),
respectively;</text>
</paragraph><paragraph id="HFE40FA546C5749D5B7F092C36868D028"><enum>(3)</enum><text>in subparagraph
(B) (as redesignated by
<internal-xref idref="HB227BC185F9344DEB68F34FDDF68D8A6" legis-path="123.(a)(2)">paragraph (2)</internal-xref>), by inserting
<quote>and</quote> after the semicolon; and</text>
</paragraph><paragraph id="H1D18349AE495412AA1F79B7C7248A8CF"><enum>(4)</enum><text>in subparagraph
(C) (as redesignated by
<internal-xref idref="HB227BC185F9344DEB68F34FDDF68D8A6" legis-path="123.(a)(2)">paragraph (2)</internal-xref>), by striking <quote>;
and</quote> and inserting a period.</text>
</paragraph></subsection><subsection id="HC9708A96FD9A468690EC127FAB9BC2A0"><enum>(b)</enum><header>Definition of
Assets</header><text>Section 480(f)(2) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087vv">20 U.S.C. 1087vv(f)(2)</external-xref>) is
amended—</text>
<paragraph id="H1BF361BE400D4FF59E80CE3129F4065C"><enum>(1)</enum><text>by striking
<quote>or</quote> at the end of subparagraph (B);</text>
</paragraph><paragraph id="HC5903CADF37340A282E8FAA06E91994A"><enum>(2)</enum><text>by striking the
period at the end of subparagraph (C) and inserting <quote>; or</quote>;
and</text>
</paragraph><paragraph id="H7B9BCCF8952F4F57AD1F0E8647FA3CCE"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H1526256FA3B44982A3486FA837FA6AA6" style="OLC">
<subparagraph id="HC26DC2EE078C42E486854491C7BC5602"><enum>(D)</enum><text display-inline="yes-display-inline">an employee pension benefit plan (as
defined in section 3(2) of the Employee Retirement Income Security Act of 1974
(<external-xref legal-doc="usc" parsable-cite="usc/29/1002">29 U.S.C.
1002(2)</external-xref>)).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H62FDE3B43E874FB3945B000A8D2C0459"><enum>(c)</enum><header>Financial
administrator discretion</header><text>Section 479A(b) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087tt">20 U.S.C. 1087tt</external-xref>)
is amended in the subsection heading, by striking <quote><header-in-text level="subsection" style="OLC">to assets</header-in-text></quote>.</text>
</subsection><subsection id="H970C86C14B654CB3B09C813E59133057"><enum>(d)</enum><header>Suspension of
eligibility for drug-related offenses</header><text>Section 484(r)(1)
(<external-xref legal-doc="usc" parsable-cite="usc/20/1091">20 U.S.C.
1091(r)(1)</external-xref>) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HC4D9EBE424EE498A89CF43FC0C785552" style="OLC">
<paragraph id="H523D2B84CFEF4A0C82C15CFF2501F777"><enum>(1)</enum><header>In
general</header><text>A student who is convicted of any offense under any
Federal or State law involving the sale of a controlled substance for conduct
that occurred during a period of enrollment for which the student was receiving
any grant, loan, or work assistance under this title shall not be eligible to
receive any grant, loan, or work assistance under this title from the date of
that conviction for the period of time specified in the following
subparagraphs:</text>
<subparagraph id="HFA75D3790B244266B72875FB9F2D888B"><enum>(A)</enum><text>For a first
offense, the period of ineligibility shall be 2 years.</text>
</subparagraph><subparagraph id="HDA0C4E96CD5548559A01A26FBCD9BDD5"><enum>(B)</enum><text>For a second
offense, the period of ineligibility shall be
indefinite.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section></subtitle><enum>II</enum><header>Student loan
reform</header>
<subtitle id="HBF303AAE06384FA6B28B34BB741CF40C"><enum>A</enum><header>Stafford loan
reform</header>
<section commented="no" display-inline="no-display-inline" id="HC9E762280272427BBD7935B96EBBB5CA" section-type="subsequent-section"><enum>201.</enum><header>Federal Family
Education Loan appropriations</header><text display-inline="no-display-inline">Section 421 (<external-xref legal-doc="usc" parsable-cite="usc/20/1071">20 U.S.C. 1071</external-xref>) is amended—</text>
<paragraph id="HBF3ECDEF124A4FDC9025085F31455597"><enum>(1)</enum><text>in subsection (b),
in the matter following paragraph (6), by inserting <quote>, except that no
sums may be expended after June 30, 2010, with respect to loans under this part
for which the first disbursement would be made after such date</quote> after
<quote>expended</quote>; and</text>
</paragraph><paragraph id="HF5F7AC0C47DA4202B704AB68F385AB5F"><enum>(2)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H26E25F88439E43FF8D9F43E9AB16D910" style="OLC">
<subsection id="H0B60570196D04C139223DC071D6BFA37"><enum>(d)</enum><header>Termination of
authority To make or insure new loans</header><text display-inline="yes-display-inline">Notwithstanding paragraphs (1) through (6)
of subsection (b) or any other provision of law—</text>
<paragraph id="HE8C0BCEF08A34EA2BC9FAAD7DF07C20D"><enum>(1)</enum><text>no new loans
(including consolidation loans) may be made or insured under this part after
June 30, 2010; and</text>
</paragraph><paragraph id="H992514FD42624003811CCE38BF762B9C"><enum>(2)</enum><text>no funds are
authorized to be appropriated, or may be expended, under this Act or any other
Act to make or insure loans under this part (including consolidation loans) for
which the first disbursement would be made after June 30, 2010,</text>
</paragraph><continuation-text continuation-text-level="subsection">except as
expressly authorized by an Act of Congress enacted after the date of enactment
of the <short-title>Student Aid and Fiscal Responsibility
Act of
2009</short-title>.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H4C616A0B3B8B433E9A4C6C825D317A8D"><enum>202.</enum><header>Scope and
duration of Federal loan insurance program</header><text display-inline="no-display-inline">Section 424(a) (<external-xref legal-doc="usc" parsable-cite="usc/20/1074">20 U.S.C. 1074(a)</external-xref>)
is amended by striking <quote>September 30, 1976,</quote> and all that follows
and inserting <quote>September 30, 1976, for each of the succeeding fiscal
years ending prior to October 1, 2009, and for the period from October 1, 2009,
to June 30, 2010, for loans first disbursed on or before June 30,
2010.</quote>.</text>
</section><section id="HF6B144CC45E4479E90A970A5536A71C3"><enum>203.</enum><header>Applicable
interest rates</header><text display-inline="no-display-inline">Section 427A(l)
(<external-xref legal-doc="usc" parsable-cite="usc/20/1077a">20 U.S.C.
1077a(l)</external-xref>) is amended—</text>
<paragraph id="HD5FF6B0F2C124DA8A2F1F64EC20293D7"><enum>(1)</enum><text>in paragraph (1),
by inserting <quote>and before July 1, 2010,</quote> after <quote>July 1,
2006,</quote>;</text>
</paragraph><paragraph id="HB5F19145E6AE458A9B2E961249B1C903"><enum>(2)</enum><text>in paragraph (2),
by inserting <quote>and before July 1, 2010,</quote> after <quote>July 1,
2006,</quote>;</text>
</paragraph><paragraph id="H35859817D2C6405588292F28E1BCE823"><enum>(3)</enum><text>in paragraph (3),
by inserting <quote>and that was disbursed before July 1, 2010,</quote> after
<quote>July 1, 2006,</quote>; and</text>
</paragraph><paragraph id="HA8945BDCD527411C8F3932E91727DDCF"><enum>(4)</enum><text>in paragraph
(4)—</text>
<subparagraph id="HD07952E5CE544699B53730165D5C0C2F"><enum>(A)</enum><text>in the matter
preceding subparagraph (A), by striking <quote>July 1, 2012</quote> and
inserting <quote>July 1, 2010</quote>; and</text>
</subparagraph><subparagraph commented="no" id="HC8F96E8BF1BA44A787ACF9C1FD24C739"><enum>(B)</enum><text>by repealing
subparagraphs (D) and (E).</text>
</subparagraph></paragraph></section><section commented="no" id="H47AAA8046C644C228A6B483160B7318D"><enum>204.</enum><header>Federal
payments to reduce student interest costs</header>
<subsection commented="no" id="H86718BB29AF64A6381022BBEBA885073"><enum>(a)</enum><header>Higher Education
Act of 1965</header><text display-inline="yes-display-inline">Section 428
(<external-xref legal-doc="usc" parsable-cite="usc/20/1078">20 U.S.C.
1078</external-xref>) is amended—</text>
<paragraph commented="no" id="H628ACA1FC4FD4418A6C96445E3859468"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="H42CB5EAF5B8640DF971DF857A1B31D90"><enum>(A)</enum><text>in paragraph (1),
in the matter preceding subparagraph (A), by inserting <quote>for which the
first disbursement is made before July 1, 2010, and</quote> after
<quote>eligible institution</quote>; and</text>
</subparagraph><subparagraph id="HD07F6DCC509341ED9505E6FAB8E59F42"><enum>(B)</enum><text>in paragraph (5),
by striking <quote>September 30, 2014,</quote> and all that follows through the
period and inserting <quote>June 30, 2010.</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" id="H08E487279D4247459AC8D4807ABDE3A1"><enum>(2)</enum><text>in subsection
(b)(1)—</text>
<subparagraph commented="no" id="HF48A214C45D9471CAA7BA64A94613A0C"><enum>(A)</enum><text>in subparagraph
(G)(ii), by inserting <quote>and before July 1, 2010,</quote> after <quote>July
1, 2006,</quote>; and</text>
</subparagraph><subparagraph commented="no" id="HBD1D3FAE447D4F25BBF8EAF761BF3BFE"><enum>(B)</enum><text>in subparagraph
(H)(ii), by inserting <quote>and that are first disbursed before July 1,
2010,</quote> after <quote>July 1, 2006,</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" id="HD90DDCC391B94356A91F8FCE8184443A"><enum>(3)</enum><text>in subsection
(f)(1)(A)(ii)—</text>
<subparagraph commented="no" id="H4060B8E75056489D914FEE959F50F3F0"><enum>(A)</enum><text>by striking
<quote>during fiscal years beginning</quote>; and</text>
</subparagraph><subparagraph commented="no" id="H713E374282114D9C974EBF282867E4E3"><enum>(B)</enum><text>by inserting
<quote>and first disbursed before July 1, 2010,</quote> after <quote>October 1,
2003,</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" id="HC0F59749220D4523BEA8F77B5C463FD1"><enum>(4)</enum><text>in subsection
(j)(1), by inserting <quote>, before July 1, 2010,</quote> after <quote>section
435(d)(1)(D) of this Act shall</quote>.</text>
</paragraph></subsection><subsection commented="no" id="H1FF8FDAD368D4BFE868A9B63553E6AC3"><enum>(b)</enum><header>College Cost
Reduction and Access Act</header><text>Section 303 of the College Cost
Reduction and Access Act (<external-xref legal-doc="public-law" parsable-cite="pl/110/84">Public Law 110–84</external-xref>) is
repealed.</text>
</subsection></section><section id="H2C7B6B22B0E54794B67B98941EF712FA"><enum>205.</enum><header>Federal PLUS
Loans</header><text display-inline="no-display-inline">Section 428B(a)(1)
(<external-xref legal-doc="usc" parsable-cite="usc/20/1078-2">20 U.S.C.
1078–2(a)(1)</external-xref>) is amended by striking <quote>A graduate</quote>
and inserting <quote>Prior to July 1, 2010, a graduate</quote>.</text>
</section><section id="HC8F8B254C475429FA2BE2A6BA0A8E95B"><enum>206.</enum><header>Federal
Consolidation Loan</header>
<subsection id="H8A92FFE26617418B96D48C9D18F2EEF5"><enum>(a)</enum><header>Amendments</header><text display-inline="yes-display-inline">Section 428C (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-3">20 U.S.C. 1078–3</external-xref>)
is amended—</text>
<paragraph commented="no" id="H791AA39C4FD34EA8B191812A459113CA"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(4)(A), by inserting
<quote>, and first disbursed before July 1, 2010</quote> after <quote>under
this part</quote>;</text>
</paragraph><paragraph id="H5D7A329562E64C75B36356DE79886DFC"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="H79151DC0471C4ECCA3988671FAB70EEB"><enum>(A)</enum><text>in paragraph
(1)(E), by inserting before the semicolon <quote>, and before July 1,
2010</quote>; and</text>
</subparagraph><subparagraph id="HE32CF28C041F49AAA5C0CA0FC93B02C6"><enum>(B)</enum><text>in paragraph (5),
by striking <quote>In the event that</quote> and inserting <quote>If, before
July 1, 2010,</quote>;</text>
</subparagraph></paragraph><paragraph id="HBC3C5FC2C7C54DABB3B257114B739CAB"><enum>(3)</enum><text>in subsection
(c)(1)—</text>
<subparagraph id="H064400A75B6F40F781504D815C74424F"><enum>(A)</enum><text>in subparagraph
(A)(ii), by inserting <quote>and that is disbursed before July 1, 2010,</quote>
after <quote>2006,</quote>; and</text>
</subparagraph><subparagraph id="H9DDB51BCF17A4C37A8176AE5A4FB1E64"><enum>(B)</enum><text>in subparagraph
(C), by inserting <quote>and first disbursed before July 1, 2010,</quote> after
<quote>1994,</quote>; and</text>
</subparagraph></paragraph><paragraph id="H48861AB49367431C982DC8B53EAF81BF"><enum>(4)</enum><text>in subsection (e),
by striking <quote>September 30, 2014.</quote> and inserting <quote>June 30,
2010. No loan may be made under this section for which the first disbursement
would be on or after July 1, 2010.</quote>.</text>
</paragraph></subsection><subsection id="HDF4F63753712484B81EB01824D7447AE"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
subsection (a)(1)(A) shall be effective at the close of June 30, 2010.</text>
</subsection></section><section id="HBA04784D33244DDE83EF9C351710EA6C"><enum>207.</enum><header>Unsubsidized
Stafford loans for middle-income borrowers</header><text display-inline="no-display-inline">Section 428H (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-8">20 U.S.C. 1078–8</external-xref>) is
amended—</text>
<paragraph id="H4C3788C7D1214EE2806817452579FA0C"><enum>(1)</enum><text>in subsection (a),
by inserting <quote>that are first disbursed before July 1, 2010,</quote> after
<quote>under this part</quote>;</text>
</paragraph><paragraph id="HA0603EE8D53C45A3A4E190CC228768DF"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b)—</text>
<subparagraph id="H57BD80745BBE4990BD5229E41C0D93AE"><enum>(A)</enum><text>by striking
<quote>Any student</quote> and inserting <quote>Prior to July 1, 2010, any
student</quote>; and</text>
</subparagraph><subparagraph id="HA44A8319EEDD4823BAEF6AC63E35B0FF"><enum>(B)</enum><text>by inserting
<quote>for which the first disbursement is made before such date</quote> after
<quote>unsubsidized Federal Stafford Loan</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" id="H3971EE735E814C01BD194D9C4AAC366E"><enum>(3)</enum><text>in subsection (h),
by inserting <quote>and that are first disbursed before July 1, 2010,</quote>
after <quote>July 1, 2006,</quote>.</text>
</paragraph></section><section commented="no" id="H1DE83BC7E6904D4BADF3DA71E11D26C4"><enum>208.</enum><header>Loan repayment
for civil legal assistance attorneys</header><text display-inline="no-display-inline">Section 428L(b)(2)(A) (<external-xref legal-doc="usc" parsable-cite="usc/20/1078-12">20 U.S.C.
1078–12(b)(2)(A)</external-xref>) is amended—</text>
<paragraph id="H03C8294752FB4F18854F744EB25A2DD8"><enum>(1)</enum><text>by amending clause
(i) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H00F88842BC1344478D45475E37CE1671" style="OLC">
<clause id="HE3415013C106457C83666F99DE427B9A"><enum>(i)</enum><text display-inline="yes-display-inline">subject to clause (ii)—</text>
<subclause id="H8E34300F25C54118A92E309FE5BEDAA3"><enum>(I)</enum><text display-inline="yes-display-inline">a loan made, insured, or guaranteed under
this part, and that is first disbursed before July 1, 2010; or</text>
</subclause><subclause id="H2F614933714D41D9B425E00A797D103C"><enum>(II)</enum><text>a loan made under
part D or part E; and</text>
</subclause></clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA0233E6B0C2A45AD8377D78743003205"><enum>(2)</enum><text>in clause
(ii)—</text>
<subparagraph id="H5D7420B9C56E4900A672BC8777E05F2D"><enum>(A)</enum><text>by striking
<quote>428C or 455(g)</quote> and inserting <quote>428C that is disbursed
before July 1, 2010, or section 455(g)</quote>; and</text>
</subparagraph><subparagraph id="H5504131303734F5DA91E642FB6103EBF"><enum>(B)</enum><text>in subclause (II),
by inserting <quote>for which the first disbursement is made before July 1,
2010</quote> after <quote>or 428H</quote>.</text>
</subparagraph></paragraph></section><section id="HCA5082ACCCB042ABB5A62A80639709AC"><enum>209.</enum><header>Special
allowances</header><text display-inline="no-display-inline">Section 438
(<external-xref legal-doc="usc" parsable-cite="usc/20/1087-1">20 U.S.C.
1087–1</external-xref>) is amended—</text>
<paragraph id="HFEF5C9A9CD184066A8B06C54F07720F8"><enum>(1)</enum><text>in subsection
(b)(2)(I)—</text>
<subparagraph id="H42DCD31EDA9B4B89A7354D5FF6306BF2"><enum>(A)</enum><text>in the header, by
inserting <quote><header-in-text level="subparagraph" style="OLC">, and before
July 1, 2010</header-in-text></quote> after <quote><header-in-text level="subparagraph" style="OLC">2000</header-in-text></quote>;</text>
</subparagraph><subparagraph id="H7653B03D23DF4294A9C232CDF42C2FBC"><enum>(B)</enum><text>in clause (i), by
inserting <quote>and before July 1, 2010,</quote> after
<quote>2000,</quote>;</text>
</subparagraph><subparagraph id="HF77993EFE94A49FC94A4F96E72E43880"><enum>(C)</enum><text>in clause
(ii)(II), by inserting <quote>and before July 1, 2010,</quote> after
<quote>2006,</quote>;</text>
</subparagraph><subparagraph id="HB69E929A7CE54F16A990A8E31CFE3102"><enum>(D)</enum><text>in clause (iii),
by inserting <quote>and before July 1, 2010,</quote> after
<quote>2000,</quote>;</text>
</subparagraph><subparagraph id="H8759F18F66A2495A8E5FBF74DE525431"><enum>(E)</enum><text>in clause (iv), by
inserting <quote>and that is disbursed before July 1, 2010,</quote> after
<quote>2000,</quote>;</text>
</subparagraph><subparagraph id="HB0C738B8B36241149A2D1BFC0A3DE651"><enum>(F)</enum><text>in clause (v)(I),
by inserting <quote>and before July 1, 2010,</quote> after
<quote>2006,</quote>; and</text>
</subparagraph><subparagraph id="H67AC4562EF734AF197A746AE17BBA0C4"><enum>(G)</enum><text>in clause
(vi)—</text>
<clause id="H3D76316C9FBC4F2F829D0DBEACC3BE62"><enum>(i)</enum><text>in
the header, by inserting <quote><header-in-text level="clause" style="OLC">,
and before July 1, 2010</header-in-text></quote> after <quote><header-in-text level="clause" style="OLC">2007</header-in-text></quote>; and</text>
</clause><clause id="H9888BD1521344609B9D9EA6A1F2B0246"><enum>(ii)</enum><text>in
the matter preceding subclause (I), by inserting <quote>and before July 1,
2010,</quote> after <quote>2007,</quote>;</text>
</clause></subparagraph></paragraph><paragraph id="H20974EEE6AA145ABAE4D6CFEB5C7AED2"><enum>(2)</enum><text>in subsection
(c)—</text>
<subparagraph id="HA20F181245D146CABF456DCFB4C518C2"><enum>(A)</enum><text>in paragraph
(2)(B)—</text>
<clause id="HA9F3F846046E48A38813118407F9B296"><enum>(i)</enum><text>in
clause (iii), by inserting <quote>and</quote> after the semicolon;</text>
</clause><clause id="HCE1531A45B78410A8CC146E28596DAE4"><enum>(ii)</enum><text>in
clause (iv), by striking <quote>; and</quote> and inserting a period;
and</text>
</clause><clause id="HFAF198D54109454FA06A65D149F38041"><enum>(iii)</enum><text>by
striking clause (v); and</text>
</clause></subparagraph><subparagraph id="HA5C7CD070DF2422B9A0BA7BCF9758D03"><enum>(B)</enum><text>in paragraph (6),
by inserting <quote>and first disbursed before July 1, 2010,</quote> after
<quote>1992,</quote>; and</text>
</subparagraph></paragraph><paragraph id="HFA59300A05664F3592F74D2CB3247608"><enum>(3)</enum><text>in subsection
(d)(2)(B), by inserting <quote>, and before July 1, 2010</quote> after
<quote>2007</quote>.</text>
</paragraph></section><section display-inline="no-display-inline" id="H622438CF7D634E69A07E84FE797E09E2" section-type="subsequent-section"><enum>210.</enum><header>Revised special
allowance calculation</header>
<subsection id="H636CB82426CF4FAB8541607EC7A0F6B2"><enum>(a)</enum><header>Revised
calculation rule</header><text>Section 438(b)(2)(I) of the Higher Education Act
of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087-1">20 U.S.C.
1087–1(b)(2)(I)</external-xref>) is amended by adding at the end the following
new clause:</text>
<quoted-block id="H980BAC1E8B414422B26240876E5BD5FC" style="OLC">
<clause id="HD452BEC0A85B4268AFD9FDFD963F39A5"><enum>(vii)</enum><header>Revised
calculation rule to reflect financial market conditions</header>
<subclause id="HBE6BF11EEBFF439CBEB4B7451A56AAE3"><enum>(I)</enum><header>Calculation
based on LIBOR</header><text display-inline="yes-display-inline">For the
calendar quarter beginning on October 1, 2009, and each subsequent calendar
quarter, in computing the special allowance paid pursuant to this subsection
with respect to loans described in
<internal-xref idref="H369DB86C6ECE4258BB1CF873D581DDFD" legis-path="(ix)(II)">subclause (II)</internal-xref>, clause (i)(I) of this
subparagraph shall be applied by substituting <quote>of the 1-month London
Inter Bank Offered Rate (LIBOR) for United States dollars in effect for each of
the days in such quarter as compiled and released by the British Bankers
Association</quote> for <quote>of the quotes of the 3-month commercial paper
(financial) rates in effect for each of the days in such quarter as reported by
the Federal Reserve in Publication H–15 (or its successor) for such 3-month
period</quote>.</text>
</subclause><subclause id="H369DB86C6ECE4258BB1CF873D581DDFD"><enum>(II)</enum><header>Loans eligible
for LIBOR-based calculation</header><text display-inline="yes-display-inline">The special allowance paid pursuant to this
subsection shall be calculated as described in
<internal-xref idref="HBE6BF11EEBFF439CBEB4B7451A56AAE3" legis-path="(ix)(I)">subclause (I)</internal-xref> with respect to special
allowance payments for the 3-month period ending December 31, 2009, and each
succeeding 3-month period, on loans for which the first disbursement is
made—</text>
<item id="H4D1C1C04145345CF8E5608FE81F204F0"><enum>(aa)</enum><text>on
or after the date of enactment of the <short-title>Student
Aid and Fiscal Responsibility Act of 2009</short-title>, and before July 1,
2010; or</text>
</item><item id="HA92712F6B08140168AB5C7AE54911F6D"><enum>(bb)</enum><text display-inline="yes-display-inline">on or after January 1, 2000, and before the
date of enactment of the <short-title>Student Aid and
Fiscal Responsibility Act of 2009</short-title>, if, not later than the last
day of the second full fiscal quarter after the date of enactment of such Act,
the holder of the loan (or, if the holder acts as eligible lender trustee for
the beneficial owner of the loan, the beneficial owner of the loan),
affirmatively and permanently waives all contractual, statutory or other legal
rights to a special allowance paid pursuant to this subsection that is
calculated using the formula in effect at the time the loans were first
disbursed.</text>
</item></subclause><subclause id="HBBF6580CEEFF476587F6857C2E139B68"><enum>(III)</enum><header>Terms of
waiver</header>
<item id="H0A0EC7394F7B4E39BA9226F7734CDA2F"><enum>(aa)</enum><header>In
general</header><text display-inline="yes-display-inline">A waiver pursuant to
subclause (II)(bb) shall be in a form (printed or electronic) prescribed by the
Secretary, and shall be applicable to—</text>
<subitem id="H081F7C42FD0D4D9BB1BC9DCE23E061ED"><enum>(AA)</enum><text display-inline="yes-display-inline">all loans described in such subclause that
the lender holds solely in its own right under any lender identification number
associated with the holder (pursuant to section 487B);</text>
</subitem><subitem id="HF76D8E26C0754B668501F309D2AEFB24"><enum>(BB)</enum><text>all loans
described in such subclause for which the beneficial owner has the authority to
make an election of a waiver under such subclause, regardless of the lender
identification number associated with the loan or the lender that holds the
loan as eligible lender trustee on behalf of such beneficial owner; and</text>
</subitem><subitem id="H6EF90F2CA3D643F88F51A70AA16C675B"><enum>(CC)</enum><text>all future
calculations of the special allowance on loans that, on the date of such
waiver, are loans described in subitem (AA) or (BB), or that, after such date,
become loans described in subitem (AA) or (BB).</text>
</subitem></item><item id="H2F2DB64A0C6043FDAE2F494CC492FC3D"><enum>(bb)</enum><header>Exceptions</header><text>Any
waiver pursuant to subclause (II)(bb) that is elected for loans described in
subitem (AA) or (BB) of item (aa) shall not apply to any loan described in such
subitem for which the lender or beneficial owner of the loan demonstrates to
the satisfaction of the Secretary that—</text>
<subitem id="H9859046A30134BD3A5AC68C686DEEA05"><enum>(AA)</enum><text>in accordance
with an agreement entered into before the date of enactment of the
<short-title>Student Aid and Fiscal Responsibility Act of
2009</short-title> by which such lender or owner is governed and that applies
to such loans, such lender or owner is not legally permitted to make an
election of such waiver with respect to such loans without the approval of one
or more third parties with an interest in the loans, and that the lender or
owner followed all available options under such agreement to obtain such
approval, and was unable to do so; or</text>
</subitem><subitem id="HECD42B728292444E9D9009163DA92680"><enum>(BB)</enum><text>such lender or
beneficial owner presented the proposal of electing such a waiver applicable to
such loans associated with an obligation rated by a nationally recognized
statistical rating organization (as defined in section 3(a)(62) of the
Securities Exchange Act of 1934), and such rating organization provided a
written opinion that the agency would downgrade the rating applicable to such
obligation if the lender or owner elected such a waiver.</text>
</subitem></item></subclause><subclause commented="no" id="H228F7938235441CA902D396392256E98"><enum>(IV)</enum><header>Participant’s
yield</header><text display-inline="yes-display-inline">For the calendar
quarter beginning on October 1, 2009, and each subsequent calendar quarter, the
Secretary’s participant yield in any loan in which the Secretary has purchased
a participation interest and for which the first disbursement is made on or
after January 1, 2000, and before October 1, 2009, shall be determined by using
the LIBOR-based rate described in
<internal-xref idref="HBE6BF11EEBFF439CBEB4B7451A56AAE3" legis-path="(vii)(I)">subclause (I) </internal-xref>as the substitute rate (for
the commercial paper rate) referred to in the participation agreement between
the Secretary and such
lender.</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1426C0D58CE549BCAB96F430F00D9027"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 438(b)(2)(I) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087-1">20 U.S.C. 1087–1(b)(2)(I)</external-xref>) is
further amended—</text>
<paragraph id="H3AA0BBC9F74747D5A979C7743318BC24"><enum>(1)</enum><text>in clause (i)(II),
by striking <quote>such average bond equivalent rate</quote> and inserting
<quote>the rate determined under subclause (I)</quote>; and</text>
</paragraph><paragraph id="H9D3CB375A9854FB7A8A86F1E7A8E0836"><enum>(2)</enum><text>in clause (v)(III)
by striking <quote>(iv), and (vi)</quote> and inserting <quote>(iv), (vi), and
(vii)</quote>.</text>
</paragraph></subsection></section><section commented="no" id="H30A1B9F6C1184C87B7E9AE395681EFB7"><enum>211.</enum><header>Origination of
Direct Loans at institutions located outside the United States</header>
<subsection commented="no" id="HEAF4A0E884574B29A3ABFE8FCD568C70"><enum>(a)</enum><header>Loans for
students attending institutions located outside the United States</header><text display-inline="yes-display-inline">Section 452 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087b">20 U.S.C. 1087b</external-xref>) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HAA154CF47C4842BE8B6F6ACC931525D3" style="OLC">
<subsection commented="no" id="H59DD5CD73365493A975679E6506A382F"><enum>(d)</enum><header>Institutions
located outside the United States</header><text display-inline="yes-display-inline">Loan funds for students (and parents of
students) attending institutions located outside the United States shall be
disbursed through a financial institution located in the United States and
designated by the Secretary to serve as the agent of such institutions with
respect to the receipt of the disbursements of such loan funds and the transfer
of such funds to such institutions. To be eligible to receive funds under this
part, an otherwise eligible institution located outside the United States shall
make arrangements, subject to regulations by the Secretary, with the agent
designated by the Secretary under this subsection to receive funds under this
part.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H867D78CAA2204C40B99F11A39252506C"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="H58B1EE866A7A476E967CC0986D5B8233"><enum>(1)</enum><header>Amendments</header><text display-inline="yes-display-inline">Section 102 (<external-xref legal-doc="usc" parsable-cite="usc/20/1002">20 U.S.C. 1002</external-xref>), as amended by
section 102 of the Higher Education Opportunity Act (<external-xref legal-doc="public-law" parsable-cite="pl/110/315">Public Law
110–315</external-xref>) and section 101 of
<external-xref legal-doc="public-law" parsable-cite="pl/111/39">Public Law
111–39</external-xref>, is amended—</text>
<subparagraph commented="no" id="HA6D5E6CD37B04C908444D88E7EDA854A"><enum>(A)</enum><text>by striking
<quote>part B</quote> each place it appears and inserting <quote>part
D</quote>;</text>
</subparagraph><subparagraph commented="no" id="HCF04661FCA8944128ADEB044DDCBC0E1"><enum>(B)</enum><text>in subsection
(a)(1)(C), by inserting <quote>, consistent with the requirements of section
452(d)</quote> before the period at the end; and</text>
</subparagraph><subparagraph commented="no" id="HF009C0B7E5ED430587ADABCB089C41BF"><enum>(C)</enum><text>in subsection
(a)(2)(A)—</text>
<clause id="HDD1F638BB250493B81C73C3C1D9FF875"><enum>(i)</enum><text display-inline="yes-display-inline">in the matter preceding clause (i), by
striking <quote>made, insured, or guaranteed</quote> and inserting
<quote>made</quote>; and</text>
</clause><clause id="HCF89AD07E8A54BEB9EE8E616BF731A3F"><enum>(ii)</enum><text>in
clause (iii)—</text>
<subclause id="H75B1F0C5BB26461089D3135C3E8E5402"><enum>(I)</enum><text>in subclause
(III), by striking <quote>only Federal Stafford</quote> and all that follows
through <quote>section 428B</quote> and inserting <quote>only Federal Direct
Stafford Loans under section 455(a)(2)(A), Federal Direct Unsubsidized Stafford
Loans under section 455(a)(2)(D), or Federal Direct PLUS Loans under section
455(a)(2)(B)</quote>; and</text>
</subclause><subclause id="H3B10D28432E14D1D883CF7F4EFAB0031"><enum>(II)</enum><text display-inline="yes-display-inline">in subclause (V), by striking <quote>a
Federal Stafford</quote> and all that follows through <quote>section
428B</quote> and inserting <quote>a Federal Direct Stafford Loan under section
455(a)(2)(A), a Federal Direct Unsubsidized Stafford Loan under section
455(a)(2)(D), or a Federal Direct PLUS Loan under section
455(a)(2)(B)</quote>.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H2BB02B3C0A7741219A0A88677B960DDC"><enum>(2)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
subparagraph (C) of paragraph (1) shall be effective as if enacted as part of
section 102(a)(1) of the Higher Education Opportunity Act, in accordance with
section 102(e) of such Act, as amended by section 101(a)(2) of
<external-xref legal-doc="public-law" parsable-cite="pl/111/39">Public Law
111–39</external-xref>.</text>
</paragraph></subsection></section><section id="HFC847FB5447946979A07B5053D73AD20"><enum>212.</enum><header>Agreements with
institutions</header><text display-inline="no-display-inline">Section 454
(<external-xref legal-doc="usc" parsable-cite="usc/20/1087d">20 U.S.C.
1087d</external-xref>) is amended—</text>
<paragraph id="H23C98E106B1A4B53BA1D78B0257B2590"><enum>(1)</enum><text>in subsection (a),
by striking paragraph (4) and redesignating the succeeding paragraphs
accordingly; and</text>
</paragraph><paragraph id="HC1F47FF117D044B1877DCE032B6FDCF5"><enum>(2)</enum><text>in subsection
(b)(2), by striking <quote>(5), (6), and (7)</quote> and inserting <quote>(5),
and (6)</quote>.</text>
</paragraph></section><section id="H318C8D3E663342799FF30AC2463CEE82"><enum>213.</enum><header>Terms and
conditions of loans</header>
<subsection id="H684F069A7A464B4CB1D2B23F572A4916"><enum>(a)</enum><header>Amendments</header><text display-inline="yes-display-inline">Section 455 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C. 1087e</external-xref>) is
amended—</text>
<paragraph id="HDD23E2CAE7894BD195A208C7BE1AECD3"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(1), by inserting <quote>,
and first disbursed on June 30, 2010,</quote> before <quote>under sections
428</quote>; and</text>
</paragraph><paragraph commented="no" id="H4341A70B8036478FB73BDFF1D73FBA9D"><enum>(2)</enum><text>in subsection
(g)—</text>
<subparagraph commented="no" id="H7FCB0C7C8679486688E58612A6A164A7"><enum>(A)</enum><text>by inserting
<quote>, including any loan made under part B and first disbursed before July
1, 2010</quote> after <quote>section 428C(a)(4)</quote>; and</text>
</subparagraph><subparagraph commented="no" id="HF31730D3009B4DAFA4168866071E18AA"><enum>(B)</enum><text>by striking the
third sentence.</text>
</subparagraph></paragraph></subsection><subsection id="H40B5E5341FDF46238810ACFC9D694772"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
<internal-xref idref="HDD23E2CAE7894BD195A208C7BE1AECD3" legis-path="213.(a)(1)">subsection (a)(1)</internal-xref> shall apply with
respect to loans first disbursed under part D of title IV of the Higher
Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087a">20 U.S.C. 1087a et seq.</external-xref>) on or
after July 1, 2010.</text>
</subsection></section><section id="HF082C55F788D4DA4B0DC17E7CB7A8C61"><enum>214.</enum><header>Contracts</header><text display-inline="no-display-inline">Section 456 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087f">20 U.S.C. 1087f</external-xref>) is
amended—</text>
<paragraph id="H1A412D972472465C99CF2218306311ED"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="H39A5C31B5D1B439F828807C6BCF64416"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause id="H33FC0C8CB4304C2690CBF7A6BEC12D76"><enum>(i)</enum><text>in
the header, by striking <quote><header-in-text level="paragraph" style="OLC">In
general</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Awarding of
contracts</header-in-text></quote>;</text>
</clause><clause id="H818DE61327D14474B629FAD5CFE57E56"><enum>(ii)</enum><text>by
striking <quote>The Secretary</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H6135B9E6A1214BDF873F8D2A53DA423B" style="OLC">
<subparagraph id="H50A51ADF503D48DD98BCE445EE4AB0B6"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The
Secretary</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="H49694DB51CCB499BA2C0910D2037F294"><enum>(iii)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H070F3F382F60476EB3F747457269B0E6" style="OLC">
<subparagraph id="H662873224828469A91BFCB02A7AEEF45"><enum>(B)</enum><header>Awarding
contracts for servicing loans</header><text display-inline="yes-display-inline">The Secretary shall, if practicable, award
multiple contracts, through a competitive bidding process, to entities,
including eligible not-for-profit servicers, to service loans originated under
this part. The competitive bidding process shall take into account price,
servicing capacity, and capability, and may take into account the capacity and
capability to provide default aversion activities and outreach services.</text>
</subparagraph><subparagraph id="H4ECFD0F59E694A48A9ED9059F6EC1297"><enum>(C)</enum><header>Job retention
incentive payment</header><clause commented="no" display-inline="yes-display-inline" id="HBC64F1BDC8DB47CA9670312D5BE38627"><enum>(i)</enum><text display-inline="yes-display-inline">In a contract with an entity under
subparagraph (B) for the servicing of loans, the Secretary shall provide a job
retention incentive payment, in an amount and manner determined by the
Secretary, if such entity agrees to give priority for hiring for positions
created as a result of such a contract to those geographical locations located
in the United States at which the entity performed student loan origination or
servicing activities under the Federal Family Education Loan Program as of the
date of enactment of the Student Aid and Fiscal Responsibility Act of
2009.</text>
</clause><clause id="H2A32D3D8F3D54D0BA302C00E2A2E6E4E" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">In determining the allocation of loans to
be serviced by an entity awarded such a contract, the Secretary shall consider
the retention of highly qualified employees (employed in the United States) of
such entity a positive factor in determining such
allocation.</text>
</clause></subparagraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H76D70A6A3D38495AADAA90E23CEF5611"><enum>(B)</enum><text>in paragraph
(2)—</text>
<clause id="H73354D59263B4C32978F64E485919268"><enum>(i)</enum><text>in
the first sentence, by inserting <quote>, including eligible not-for-profit
servicers,</quote> after <quote>The entities</quote>;</text>
</clause><clause commented="no" id="HC2108FD4D5754958A1EE491BB167AB3E"><enum>(ii)</enum><text>by amending the
third sentence to read as follows: <quote>The entities with which the Secretary
may enter into such contracts shall include, where practicable, agencies with
agreements with the Secretary under sections 428(b) and (c) on the date of the
enactment of the <short-title>Student Aid and Fiscal
Responsibility Act of 2009</short-title>, nonprofit subsidiaries of such an
agency, and eligible not-for-profit servicers, if such agencies, subsidiaries,
or servicers meet the qualifications as determined by the Secretary under this
subsection and if those agencies, subsidiaries, or servicers have such
experience and demonstrated effectiveness.</quote>; and</text>
</clause><clause id="H1B824CB736444F7197605235114040BD"><enum>(iii)</enum><text display-inline="yes-display-inline">by striking the last sentence and inserting
the following: <quote>In awarding contracts to such agencies, subsidiaries, and
such eligible not-for-profit servicers, the Secretary shall, to the extent
practicable and consistent with the purposes of this part, give special
consideration to such agencies, subsidiaries, and servicers with a history of
high quality performance and demonstrated integrity in conducting operations
with institutions of higher education and the Secretary.</quote>;</text>
</clause></subparagraph><subparagraph id="HC3F4F0D1EF1D4C87BB2FA442278A4FC5"><enum>(C)</enum><text>by redesignating
paragraph (3) as paragraph (4), and by inserting in such paragraph <quote>, or
of any eligible not-for-profit servicer to enter into an agreement for the
purposes of this section as a member of a consortium of such entities</quote>
before the period at the end; and</text>
</subparagraph><subparagraph id="HCA47C2E7F421470A93464AC5D77990CD"><enum>(D)</enum><text>by inserting after
paragraph (2) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H85868AC3D58147F08A59528768D78401" style="OLC">
<paragraph commented="no" id="HEBA981337F684D4B80BB92869D36A878"><enum>(3)</enum><header>Servicing by
eligible not-for-profit servicers</header>
<subparagraph commented="no" id="H77E73BB7A3DA404E9EF4A70DADDE96DB"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of this section, in each State where at least one eligible
not-for-profit servicer has its principal place of business, the Secretary
shall contract with each such servicer to service loans originated under this
part on behalf of borrowers attending institutions located within such State,
provided that the servicer demonstrates that it meets the standards for
servicing Federal assets and providing quality service and agrees to service
the loans at a competitive market rate, as determined by the Secretary. In
determining such a competitive market rate, the Secretary shall set such rate
so that (i) the rate is commercially reasonable in relation to the volume of
loans being serviced by the eligible not-for-profit servicers, and (ii) in the
Secretary’s judgment, the eligible not-for-profit servicers can reasonably
provide any additional services, such as default aversion or outreach, provided
for in the contracts awarded under this paragraph. Contracts awarded under this
paragraph shall be subject to the same requirements for quality, performance,
and accountability as contracts awarded under paragraph (2) for similar
activities.</text>
</subparagraph><subparagraph commented="no" id="H7D15BA83ABC14F0FAA5EE62710935D16"><enum>(B)</enum><header>Allocations</header><clause commented="no" display-inline="yes-display-inline" id="H0E251D08EA644FBBA3F87F1D6CB3D95E"><enum>(i)</enum><header>One
servicer</header><text display-inline="yes-display-inline">In the case of a
State with only one eligible not-for-profit servicer with a contract described
in <internal-xref idref="H77E73BB7A3DA404E9EF4A70DADDE96DB" legis-path="(3)(A)">subparagraph (A)</internal-xref>, the Secretary shall, at a
minimum, allocate to such servicer, each year and subject to such contract, the
servicing rights for the lesser of—</text>
<subclause commented="no" id="HC2164B902AC244E5BB6548891923DEE7" indent="up1"><enum>(I)</enum><text>the loans of 100,000 borrowers (including
borrowers who borrowed loans in a prior year that were serviced by the
servicer) attending institutions located within the State; or</text>
</subclause><subclause commented="no" id="HCC6DAFDE1DFD4E40B9118BF7E224C0A3" indent="up1"><enum>(II)</enum><text>the loans of all the borrowers attending
institutions located within the State.</text>
</subclause></clause><clause commented="no" id="H8511D658AC054AB780894E7E62C19AC3" indent="up1"><enum>(ii)</enum><header>Multiple servicers</header><text display-inline="yes-display-inline">In the case of a State with more than one
eligible not-for-profit servicer with a contract described in
<internal-xref idref="H77E73BB7A3DA404E9EF4A70DADDE96DB" legis-path="(3)(A)">subparagraph (A)</internal-xref>, the Secretary shall, at a
minimum, allocate to each such servicer, each year and subject to such
contract, the servicing rights for the lesser of—</text>
<subclause commented="no" id="H840B84DF5C744489866AA80A349B2406"><enum>(I)</enum><text display-inline="yes-display-inline">the loans of 100,000 borrowers (including
borrowers who borrowed loans in a prior year that were serviced by the
servicer) attending institutions located within the State; or</text>
</subclause><subclause commented="no" id="H2205DA5B4EB5483BA8BE1D6749C97BA0"><enum>(II)</enum><text>an equal share of the loans of all
borrowers attending institutions located within the State, except the Secretary
shall adjust such shares as necessary to ensure that the loans of any single
borrower remain with a single servicer.</text>
</subclause></clause><clause commented="no" id="H3A3B410A8556499BB67A28EE98565D4B" indent="up1"><enum>(iii)</enum><header>Additional
allocation</header><text display-inline="yes-display-inline">The Secretary may
allocate additional servicing rights to an eligible not-for-profit servicer
based on the performance of such servicer, as determined by the Secretary,
including performance in the areas of customer service and default
aversion.</text>
</clause></subparagraph><subparagraph commented="no" id="H7DCA767E4618423AA23B101AB6A7E881"><enum>(C)</enum><header>Loan servicing
retention</header>
<clause commented="no" id="H3EE9E976C6FC4D2496633B8BB786F10D"><enum>(i)</enum><header>In
general</header><text>In addition to any new loans allocated to a servicers
under subparagraph (B)(ii), an eligible not-for-profit servicer shall retain
the servicing of loans allocated to such servicer in previous years, except as
provided in
<internal-xref idref="HEABEA22FB396406F95E5E2ACD6CD1DA4" legis-path="(C)(ii)">clause (ii)</internal-xref>, or as otherwise provided for
in accordance with the terms of a contract under this paragraph.</text>
</clause><clause commented="no" id="HEABEA22FB396406F95E5E2ACD6CD1DA4"><enum>(ii)</enum><header>Transfers for
multiple loans</header><text>Notwithstanding
<internal-xref idref="H3EE9E976C6FC4D2496633B8BB786F10D" legis-path="(C)(i)">clause (i)</internal-xref> and the allocations required by
subparagraph (B), the Secretary may transfer loans among servicers who are
awarded contracts to service loans pursuant to this section to ensure that the
loans of any single borrower remain with a single
servicer.</text>
</clause></subparagraph></paragraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HA97DB9274229413EA7513360AC4F686A"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="H80C92F7CC9CD4E60BBC9A45D416FBE69"><enum>(A)</enum><text>in the subsection
header, by striking <quote><header-in-text level="subsection" style="OLC">Origination, Servicing, and Data Systems</header-in-text></quote>
and inserting <quote><header-in-text level="subsection" style="OLC">origination, servicing, delinquency prevention and default aversion
services, default collections, outreach, and data
systems</header-in-text></quote>;</text>
</subparagraph><subparagraph id="H642DAB172A8B43BAA6F377462C53E47A"><enum>(B)</enum><text>in the matter
preceding paragraph (1), by striking <quote>The Secretary may</quote> and
inserting <quote><header-in-text level="paragraph" style="OLC"><enum-in-header>(1) </enum-in-header>In
general.—</header-in-text>The Secretary may</quote>;</text>
</subparagraph><subparagraph id="H4DD237EDAD59480FA615A8AD3C8BCECE"><enum>(C)</enum><text>by redesignating
paragraphs (1) through (4) as subparagraphs (A) through (D), and moving such
subparagraphs two ems to the right;</text>
</subparagraph><subparagraph id="H10054E54D6D34B089B1D69D17C29AA59"><enum>(D)</enum><text>in subparagraph
(C) (as redesignated by subparagraph (C) of this paragraph), by striking
<quote>and</quote> after the semicolon;</text>
</subparagraph><subparagraph id="H76DEF292C4AB483AA7F420DD5BB474BC"><enum>(E)</enum><text>by redesignating
subparagraph (D) (as redesignated by subparagraph (C) of this paragraph) as
subparagraph (E);</text>
</subparagraph><subparagraph id="HA601A347592A4873A272BCF00B324D9C"><enum>(F)</enum><text>by inserting after
subparagraph (C) (as so redesignated) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HCFD861D8465747BA86F3244CA3F94D92" style="OLC">
<subparagraph id="H9BFE9FEE2A7946B8A479824BA85F87F2"><enum>(D)</enum><text display-inline="yes-display-inline">delinquency prevention and default aversion
services, default collections, financial aid counseling, career and education
counseling, financial literacy, guidance counselor and financial aid officer
training services, and other outreach services;
and</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="HB9BBD408FF034DD6BED22FFDDE6A3D0B"><enum>(G)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H000AF83FBB20431F834B190660DC8CB9" style="OLC">
<paragraph id="H9CCD83E8E67D4E01934B588CAFC8D09A" indent="up1"><enum>(2)</enum><header>Limitation</header><text display-inline="yes-display-inline">The Secretary may enter into contracts for
the services described in paragraph (1)(D) with—</text>
<subparagraph id="H74AEEA1E7E3243B2878A41CDBA1CB8EC"><enum>(A)</enum><text>agencies with agreements with the
Secretary under subsections (b) and (c) of section 428 on the date of enactment
of the Student Aid and Fiscal Responsibility Act of 2009, that are providing
such services on such date and that meet the qualifications determined by the
Secretary; or</text>
</subparagraph><subparagraph id="H92A1845F22A44C55A3885858ED519312"><enum>(B)</enum><text>nonprofit subsidiaries of agencies
described in
<internal-xref idref="H74AEEA1E7E3243B2878A41CDBA1CB8EC" legis-path="(2)(A)">subparagraph (A)</internal-xref>, if such subsidiaries were
established, pursuant to State law, on or before January 1, 1998, and meet the
qualifications determined by the
Secretary.</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H8A23A5F03E4D4865959D2E009303E993"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H142DF08D252F4B6996DD78C1450640C3" style="OLC">
<subsection id="H676E4D305DC04DA5845C90F343C9EACA"><enum>(c)</enum><header>Report to
Congress</header><text display-inline="yes-display-inline">Not later than 5
years after the date of the enactment of the <short-title>Student Aid and Fiscal Responsibility Act of
2009</short-title>, the Secretary shall prepare and submit to the authorizing
committees, a report evaluating the performance of all eligible not-for-profit
servicers awarded a contract under this section to service loans originated
under this part. Such report shall give consideration to—</text>
<paragraph id="H837AD5BD707B4D8AAC02E1F259C4923D"><enum>(1)</enum><text>customer
satisfaction of borrowers and institutions with respect to the loan servicing
provided by the servicers;</text>
</paragraph><paragraph id="HADBA54DFB7EA48A7BD30705F3153EC3C"><enum>(2)</enum><text>compliance with
applicable regulations by the servicers; and</text>
</paragraph><paragraph id="H0E0D422ECAC14E71A065AF36459C53C0"><enum>(3)</enum><text display-inline="yes-display-inline">the effectiveness of default aversion
activities, and outreach services, including financial literacy programs, (if
any), provided by the servicers.</text>
</paragraph></subsection><subsection id="H24D917D9373F4D8A90B909DFA9B7CA7B"><enum>(d)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="HA92070B0AC724C888DA073745075A3E1"><enum>(1)</enum><header>Default aversion
activities</header><text display-inline="yes-display-inline">The term
<term>default aversion activities</term> means activities that are directly
related to providing collection assistance to the Secretary on a delinquent
loan, prior to the loan being legally in a default status.</text>
</paragraph><paragraph id="H433B82128BB44CBA85503C13D60AF64F"><enum>(2)</enum><header>Eligible
not-for-profit servicer</header>
<subparagraph id="H358BC54D58F44AEDADA460A835BACD44"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<term>eligible not-for-profit servicer</term> means an entity—</text>
<clause id="H861082C23DF54364A1E31FA7CCA5B30B"><enum>(i)</enum><text display-inline="yes-display-inline">that is not owned or controlled in whole or
in part by—</text>
<subclause id="H83F9C134D6D14A0CB61B86E590728718"><enum>(I)</enum><text display-inline="yes-display-inline">a for profit entity; or</text>
</subclause><subclause id="H02000C6426E84B74B202BD4DB7D41136"><enum>(II)</enum><text display-inline="yes-display-inline">a nonprofit entity having its principal
place of business in another State; and</text>
</subclause></clause><clause id="HD43E668A6FF644228CF1EE96BC7CE15B"><enum>(ii)</enum><text display-inline="yes-display-inline">that—</text>
<subclause id="HCAB347801AA14F299113965DF4D2B9A3"><enum>(I)</enum><text display-inline="yes-display-inline">as of July 1, 2009—</text>
<item id="H372FFE7E93A74AB79443E6DD14984D0B"><enum>(aa)</enum><text display-inline="yes-display-inline">meets the definition of an eligible
not-for-profit holder under section 435(p), except that such term does not
include eligible lenders described in paragraph (1)(D) of such section;
and</text>
</item><item id="H46E3A02B22E847F58F33C5E8EC983652"><enum>(bb)</enum><text display-inline="yes-display-inline">was performing, or had entered into a
contract with a third party servicer (as such term is defined in section
481(c)) who was performing, student loan servicing functions for loans made
under part B of this title;</text>
</item></subclause><subclause id="H30CCD7A755F145A78E7993954229A1A9"><enum>(II)</enum><text display-inline="yes-display-inline">notwithstanding subclause (I), as of July
1, 2009—</text>
<item id="HF153AFED0EF244D58E983FD6C8E9444C"><enum>(aa)</enum><text display-inline="yes-display-inline">is the sole beneficial owner of a loan for
which the special allowance rate is calculated under section
438(b)(2)(I)(vi)(II) because the loan is held by an eligible lender trustee
that is an eligible not-for-profit holder as defined under section
435(p)(1)(D); and</text>
</item><item id="HD4873483C5AD4DA18922C7E4AC70F362"><enum>(bb)</enum><text display-inline="yes-display-inline">was performing, or had entered into a
contract with a third party servicer (as such term is defined in section
481(c)) who was performing, student loan servicing functions for loans made
under part B of this title; or</text>
</item></subclause><subclause id="H2F46932F9B124FDD80AE52EFB946CCF5"><enum>(III)</enum><text display-inline="yes-display-inline">is an affiliated entity of an eligible
not-for-profit servicer described in subclause (I) or (II) that—</text>
<item id="H3CDE1EDD3C3A4DABA88FBE3F23A04C2A"><enum>(aa)</enum><text display-inline="yes-display-inline">directly employs, or will directly employ
(on or before the date the entity begins servicing loans under a contract
awarded by the Secretary pursuant to subsection (a)(3)(A)), the majority of
individuals who perform borrower-specific student loan servicing functions;
and</text>
</item><item id="H222432C6286F45F584F77E4F265F97DF"><enum>(bb)</enum><text display-inline="yes-display-inline">as of July 1, 2009, was performing, or had
entered into a contract with a third party servicer (as such term is defined in
section 481(c)) who was performing, student loan servicing functions for loans
made under part B of this title.</text>
</item></subclause></clause></subparagraph><subparagraph id="HADE7CF41F0634D60AA7ADB5DC2FE2525"><enum>(B)</enum><header>Affiliated
entity</header><text display-inline="yes-display-inline">For the purposes of
subparagraph (A), the term <term>affiliated entity</term>—</text>
<clause id="HA9E0B2B4A39D4D4ABB624A6C7B999A56"><enum>(i)</enum><text display-inline="yes-display-inline">means an entity contracted to perform
services for an eligible not-for-profit servicer that—</text>
<subclause id="H38C7FEAEE3014D258B959F621B4279D2"><enum>(I)</enum><text display-inline="yes-display-inline">is a nonprofit entity or is wholly owned by
a nonprofit entity; and</text>
</subclause><subclause id="H57D6B259C3074026BCC868241912E844"><enum>(II)</enum><text display-inline="yes-display-inline">is not owned or controlled, in whole or in
part, by—</text>
<item id="H287CB9F6A6B946D8933D6010D79A3A27"><enum>(aa)</enum><text display-inline="yes-display-inline">a for-profit entity; or</text>
</item><item id="HC466D20451024570A3ADC19AFBB5D7D1"><enum>(bb)</enum><text display-inline="yes-display-inline">an entity having its principal place of
business in another State; and</text>
</item></subclause></clause><clause id="H55E0B4E0022D42648D6B204481EE4BBA"><enum>(ii)</enum><text display-inline="yes-display-inline">may include an affiliated entity that is
established by an eligible not-for-profit servicer after the date of enactment
of the Student Aid and Fiscal Responsibility Act of 2009, if such affiliated
entity is otherwise described in subparagraph (A)(ii)(III) and clause (i) of
this subparagraph.</text>
</clause></subparagraph></paragraph><paragraph id="HA42970A0BAFB4B758B27497B56AFB555"><enum>(3)</enum><header>Outreach
services</header><text>The term <term>outreach services</term> means programs
offered to students and families, including programs delivered in coordination
with institutions of higher education that—</text>
<subparagraph id="HA80678233CA9424CABBDEE4E002E5F0A"><enum>(A)</enum><text>encourage—</text>
<clause id="H6B5DFF5FFCAA4D29988BD728D7D7788E"><enum>(i)</enum><text>students to attend
and complete a degree or certification program at an institution of higher
education; and</text>
</clause><clause id="HE2C8284F37244CCF9DAFCD4600A3EA7B"><enum>(ii)</enum><text>students and
families to obtain financial aid, but minimize the borrowing of education
loans; and</text>
</clause></subparagraph><subparagraph id="HD5C4946D4B4F45D1B9EA1D1ECC17730D"><enum>(B)</enum><text display-inline="yes-display-inline">deliver a wide range of financial literacy
and counseling tools to equip students with the information necessary to make
prudent decisions concerning their educational success and financial
well-being.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H1B3CA2C4CA4D43CABDEDD11DFD0B4397"><enum>215.</enum><header>Interest
rates</header><text display-inline="no-display-inline">Section 455(b)(7)
(<external-xref legal-doc="usc" parsable-cite="usc/20/1087e">20 U.S.C.
1087e(b)(7)</external-xref>) is amended by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H941284C655B24F609072264543AE50F1" style="OLC">
<subparagraph id="H5DB7728011AD44D5BE14FB8CA7483DAB"><enum>(E)</enum><header>Reduced rates
for undergraduate FDSL on and after July 1, 2012</header><text display-inline="yes-display-inline">Notwithstanding the preceding paragraphs of
this subsection and subparagraph (A) of this paragraph, for Federal Direct
Stafford Loans made to undergraduate students for which the first disbursement
is made on or after July 1, 2012, the applicable rate of interest shall, during
any 12-month period beginning on July 1 and ending on June 30, be determined on
the preceding June 1 and be equal to—</text>
<clause id="H402E77A1332245B5ADCB7E8C53BFDD7B"><enum>(i)</enum><text>the bond
equivalent rate of 91-day Treasury bills auctioned at the final auction held
prior to such June 1; plus</text>
</clause><clause id="HD775354EE3904423BA11C90C11B5DE0A"><enum>(ii)</enum><text>2.5
percent,</text>
</clause><continuation-text continuation-text-level="subparagraph">except
that such rate shall not exceed 6.8
percent.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H76A3711B70E047DAA4092A85AD044C55"><enum>216.</enum><header>Technical
assistance to institutions of higher education</header><text display-inline="no-display-inline">Section 458(a) (<external-xref legal-doc="usc" parsable-cite="usc/20/1087h">20 U.S.C.
1087h(a)</external-xref>) is amended—</text>
<paragraph commented="no" id="H4A5D568642D0470E845EBB951C01BFC9"><enum>(1)</enum><text>by redesignating
paragraph (5) as paragraph (6); and</text>
</paragraph><paragraph commented="no" id="H1F5BAD669A224A9E89DCDC2E00B0DAAA"><enum>(2)</enum><text>by inserting after
paragraph (4) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H4ABEC71549C04638857C77934A474220" style="OLC">
<paragraph commented="no" id="H5DF26B55072D45BABF8C57B695C71940"><enum>(5)</enum><header>Technical
assistance to institutions of higher education</header>
<subparagraph commented="no" id="HBFFA65A1AFD8448980905F1DF04EB844"><enum>(A)</enum><header>Provision of
assistance</header><text display-inline="yes-display-inline">The Secretary
shall provide institutions of higher education participating, or seeking to
participate, in the loan programs under this part with technical assistance in
establishing and administering such programs, including assistance for an
institution of higher education during such institution’s transition into such
programs. Such assistance may include technical support, training for
personnel, customized assistance to individual institutions of higher
education, development of informational materials, and other services the
Secretary determines to be appropriate.</text>
</subparagraph><subparagraph commented="no" id="HE6529712012E470B90541A86D3C6224E"><enum>(B)</enum><header>Funds</header><text display-inline="yes-display-inline">There are—</text>
<clause commented="no" id="H437FBC264F35487FA1D6722020BCC6E3"><enum>(i)</enum><text>authorized to be
appropriated, and there are appropriated, to carry out this paragraph (in
addition to any other amounts appropriated to carry out this subparagraph and
out of any money in the Treasury not otherwise appropriated), $50,000,000 for
fiscal year 2010; and</text>
</clause><clause commented="no" id="H12043873607041A1B61859B255EE6C36"><enum>(ii)</enum><text>authorized to be
appropriated such sums as may be necessary to carry out this paragraph for
fiscal years 2011 through
2014.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HDFF3885215904D19A8FC4031BFC41673"><enum>217.</enum><header>Outreach
Efforts</header>
<subsection id="H2BCF906BD62F45B5AE256623B25CA006"><enum>(a)</enum><header>Outreach
activities required</header><text display-inline="yes-display-inline">The
Secretary of Education shall conduct outreach activities in accordance with
this section to inform and educate students and their families about the
transition to Federal Direct lending under the amendments made by this title to
title IV of the Higher Education Act of 1965.</text>
</subsection><subsection id="HCEBD8C31458D48839EA4358C31BFAE97"><enum>(b)</enum><header>Required
components of outreach</header><text>The Secretary shall provide for the broad
dissemination of information on such amendments and shall—</text>
<paragraph id="H66EA678516BF4EE3BC6431FBF66A5AD6"><enum>(1)</enum><text>operate and
maintain an Internet website through which individuals may obtain information
on changes made to the Federal Family Education Loan programs and the Federal
Direct Loan programs;</text>
</paragraph><paragraph id="HA75C82C419654087B0831E2B37B19D0C"><enum>(2)</enum><text>develop and
disseminate information to high school seniors and their parents concerning
student loans and student aid;</text>
</paragraph><paragraph id="H8FFC254E391D47F2B1F3EB2E7909946E"><enum>(3)</enum><text display-inline="yes-display-inline">provide assistance to institutions of
higher education to educate students on the repayment of Federal Direct loans;
and</text>
</paragraph><paragraph id="H1129BB21A79C4323BD77AA0AF937A2EC"><enum>(4)</enum><text>ensure that all
outreach efforts are developed using plain language and are culturally- and
language-appropriate.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H4F9069B17F054745B914CB321F5BD4B4"><enum>(c)</enum><header>Use of other
entities</header><text>In carrying out this subsection, the Secretary may work
with other appropriate entities to facilitate the dissemination of information
under this section and to provide assistance as described in this
section.</text>
</subsection></section></subtitle><subtitle id="HB184DF29052045319F060A46A73C3967"><enum>B</enum><header>Perkins loan
reform</header>
<section id="H711F1B136B874961A1A34FBAA3DB35CB"><enum>221.</enum><header>Federal Direct
Perkins Loans terms and conditions</header><text display-inline="no-display-inline">Part
D of title IV (<external-xref legal-doc="usc" parsable-cite="usc/20/1087a">20
U.S.C. 1087a et seq.</external-xref>) is amended by inserting after section 455
the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H01BCCD351B1148E887A9D4301E6F417B" style="OLC">
<section id="H358E393E7384483CADA4D59EEBE54516"><enum>455A.</enum><header>Federal Direct
Perkins Loans</header>
<subsection id="H116BB0F54BEE4992B8654DFF26378A12"><enum>(a)</enum><header>Designation of
loans</header><text>Loans made to borrowers under this section shall be known
as <quote>Federal Direct Perkins Loans</quote>.</text>
</subsection><subsection id="H48FFBCD3C185407B86E390F41E68903C"><enum>(b)</enum><header>In
general</header><text>It is the purpose of this section to authorize loans to
be awarded by institutions of higher education through agreements established
under section 463(f). Unless otherwise specified in this section, all terms and
conditions and other requirements applicable to Federal Direct Unsubsidized
Stafford loans established under section 455(a)(2)(D) shall apply to loans made
pursuant to this section.</text>
</subsection><subsection id="HE96A824A265D4AEF8DFD06643276FB80"><enum>(c)</enum><header>Eligible
borrowers</header><text>Any student meeting the requirements for student
eligibility under section 464(b) (including graduate and professional students
as defined in regulations promulgated by the Secretary) shall be eligible to
borrow a Federal Direct Perkins Loan, provided the student attends an eligible
institution with an agreement with the Secretary under section 463(f), and the
institution uses its authority under that agreement to award the student a
loan.</text>
</subsection><subsection id="H0DAAEF99BEDD49D9BAC82C78EF1C26D0"><enum>(d)</enum><header>Loan
limits</header><text>The annual and aggregate limits for loans under this
section shall be the same as those established under section 464, and aggregate
limits shall include loans made by institutions under agreements under section
463(a).</text>
</subsection><subsection id="HE61D73FA733440619B5F0B38319BF484"><enum>(e)</enum><header>Applicable rates
of interest</header><text>Loans made pursuant to this section shall bear
interest, on the unpaid balance of the loan, at the rate of 5 percent per
year.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HAF1B0C85DA264AD0966DB3C57F690813"><enum>222.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">Section 461
(<external-xref legal-doc="usc" parsable-cite="usc/20/1087aa">20 U.S.C.
1087aa</external-xref>) is amended—</text>
<paragraph id="HD0C4FF608ED34CDE91917ED83AF57D85"><enum>(1)</enum><text>in subsection (a),
by inserting <quote>, before July 1, 2010,</quote> after <quote>The Secretary
shall</quote>;</text>
</paragraph><paragraph id="H0A13038A5072439B9D26808A9833CD92"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="HE64502A7263D4A45B7AA0B38970C8E6D"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause id="HE45902FD60834B5B8F5616440AE4927A"><enum>(i)</enum><text>by
striking <quote>(1) For the purpose</quote> and inserting <quote>For the
purpose</quote>; and</text>
</clause><clause id="HD05B5E27E7E244D093B8BD6622569810"><enum>(ii)</enum><text>by
striking <quote>and for each of the five succeeding fiscal years</quote>;
and</text>
</clause></subparagraph><subparagraph commented="no" id="HB9AA3832C984411D89FAFD2710A3F260"><enum>(B)</enum><text>by striking
paragraph (2); and</text>
</subparagraph></paragraph><paragraph id="HE84D8D350CF94150B5229D17BD341D4E"><enum>(3)</enum><text>by striking
subsection (c).</text>
</paragraph></section><section id="H85C324AF99F7435C84F60920992FD998"><enum>223.</enum><header>Allocation of
funds</header><text display-inline="no-display-inline">Section 462
(<external-xref legal-doc="usc" parsable-cite="usc/20/1087bb">20 U.S.C.
1087bb</external-xref>) is amended—</text>
<paragraph id="HAEC9B3DC8C3E494DB18A504E33398948"><enum>(1)</enum><text>in subsection
(a)(1), by striking <quote>From</quote> and inserting <quote>For any fiscal
year before fiscal year 2010, from</quote>; and</text>
</paragraph><paragraph commented="no" id="HB9EF8C0BF7814504A414A8452CF8A151"><enum>(2)</enum><text>in subsection
(i)(1), by striking <quote>for any fiscal year,</quote> and inserting
<quote>for any fiscal year before fiscal year 2010,</quote>.</text>
</paragraph></section><section id="HD2B991D7D0BD4F18A4EA4848109300DE" section-type="subsequent-section"><enum>224.</enum><header>Federal Direct
Perkins Loan allocation</header><text display-inline="no-display-inline">Part E
of title IV is further amended by inserting after section 462 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087bb">20 U.S.C. 1087bb</external-xref>)
the following:</text>
<quoted-block id="H009D580C5D7144F19001DAB03CFADADD">
<section id="H89E9256649ED4928A5F2A6222FE58EC6"><enum>462A.</enum><header>Federal Direct
Perkins Loan allocation</header>
<subsection id="H9D906F76EBDF45D4B1F6BACB4BACFC44"><enum>(a)</enum><header>Purposes</header><text display-inline="yes-display-inline">The purposes of this section are—</text>
<paragraph id="HE2939DC154AA4754A285A42B277A7C3F"><enum>(1)</enum><text>to allocate, among
eligible and participating institutions (as such terms are defined in this
section), the authority to make Federal Direct Perkins Loans under section 455A
with a portion of the annual loan authority described in
<internal-xref idref="HA3D7571CB5D64B158A5D5D632F5EFF1B" legis-path="462A.(b)">subsection (b)</internal-xref>; and</text>
</paragraph><paragraph id="H6A17B006FAEE49B2B000370039B0AB94"><enum>(2)</enum><text display-inline="yes-display-inline">to make funds available, in accordance with
section 452, to each participating institution from a portion of the annual
loan authority described in
<internal-xref idref="HA3D7571CB5D64B158A5D5D632F5EFF1B" legis-path="462A.(b)">subsection (b)</internal-xref>, in an amount not to
exceed the sum of an institution’s allocation of funds under subparagraphs (A),
(B), and (C) of
<internal-xref idref="H103D1C107A804FD09DE47FFFFC65BCDD" legis-path="462A.(b)(1)">subsection (b)(1)</internal-xref> to enable each such
institution to make Federal Direct Perkins Loans to eligible students at the
institution.</text>
</paragraph></subsection><subsection id="HA3D7571CB5D64B158A5D5D632F5EFF1B"><enum>(b)</enum><header>Available Direct
Perkins annual loan authority</header>
<paragraph id="H103D1C107A804FD09DE47FFFFC65BCDD"><enum>(1)</enum><header>Availability and
allocations</header><text display-inline="yes-display-inline">There are hereby
made available, from funds made available for loans made under part D, not to
exceed $6,000,000,000 of annual loan authority for award year 2010–2011 and
each succeeding award year, to be allocated as follows (except as provided in
paragraphs (3) and (4)):</text>
<subparagraph id="HA0BBD4403072497A8083E4E3B7B0BE46"><enum>(A)</enum><text>The Secretary
shall allocate not more than <fraction>½</fraction> of such funds for each
award year by allocating to each participating institution an amount equal to
the adjusted self-help need amount of the institution, as determined in
accordance with
<internal-xref idref="H4B32067F5C8B429E9E87D4FB573B5404" legis-path="462A.(c)">subsection (c)</internal-xref> for such award
year.</text>
</subparagraph><subparagraph id="HB307B871C2884AE1808FB005F9E5D43C"><enum>(B)</enum><text>The Secretary
shall allocate not more than <fraction>1/4</fraction> of such funds for each
award year by allocating to each participating institution an amount equal to
the low tuition incentive amount of the institution, as determined in
accordance with
<internal-xref idref="H17C7A91F4A3E400C98BA6E7FAAEBADE5" legis-path="462A.(d)">subsection (d)</internal-xref>.</text>
</subparagraph><subparagraph id="HFE90AD46152142E8A3A081BAA70C74CF"><enum>(C)</enum><text display-inline="yes-display-inline">The Secretary shall allocate not more than
<fraction>1/4</fraction> of such funds for each award year by allocating to
each participating institution an amount which bears the same ratio to the
funds allocated under this subparagraph as the ratio determined in accordance
with
<internal-xref idref="H17C7A91F4A3E400C98BA6E7FAAEBADE5" legis-path="462A.(d)">subsection (e)</internal-xref> for the calculation of the
Federal Pell Grant and degree recipient amount of the institution.</text>
</subparagraph></paragraph><paragraph commented="no" id="H1EDD4545AA0849988C350D6DAB0DF84B"><enum>(2)</enum><header>No funds to
non-participating institutions</header><text>The Secretary shall not make funds
available under this subsection to any eligible institution that is not a
participating institution. The adjusted self-help need amount (determined in
accordance with
<internal-xref idref="H4B32067F5C8B429E9E87D4FB573B5404" legis-path="462A.(c)">subsection (c)</internal-xref>) of an eligible
institution that is not a participating institution shall not be made available
to any other institution.</text>
</paragraph><paragraph id="H61C7A0127D184B22BCF1DDF4178E38E9"><enum>(3)</enum><header>Required minimum
amount</header><text>Notwithstanding paragraph (1), in no case shall the sum of
a participating institution’s allocation of loan authority computed under
subsections (c), (d), and (e) be less than the average of the institution’s
total principal amount of loans made under this part for each of the academic
years 2003–2004 through 2007–2008.</text>
</paragraph><paragraph id="H8E50247AFD4145C7AB7F0FC864C3A84D"><enum>(4)</enum><header>Additional
adjustments</header><text>If the Secretary determines that the sum of a
participating institution’s allocation of loan authority under subsections (c),
(d), and (e) is below the minimum amount required under paragraph (3), the
Secretary shall—</text>
<subparagraph id="H2C42E003D4B44AB0A9FAADB01F5B0AD6"><enum>(A)</enum><text>for each
institution for which the minimum amount under paragraph (3) is not satisfied,
increase the amount of such sum to the amount of the required minimum under
such paragraph; and</text>
</subparagraph><subparagraph id="HFD3C2B1B043944A38F8A428AE606B433"><enum>(B)</enum><text>ratably reduce the
amount of the sum of such loan authority of all participating institutions not
described in subparagraph (A).</text>
</subparagraph></paragraph></subsection><subsection id="H4B32067F5C8B429E9E87D4FB573B5404"><enum>(c)</enum><header>Adjusted
self-help need amount</header><text display-inline="yes-display-inline">For the
purposes of
<internal-xref idref="HA0BBD4403072497A8083E4E3B7B0BE46" legis-path="462A.(b)(1)(A)">subsection (b)(1)(A)</internal-xref>, the Secretary
shall calculate the adjusted self-help need amount of each eligible institution
for an award year as follows:</text>
<paragraph id="H6EEF27A383814D42B14006C9A840EB8F"><enum>(1)</enum><header>Use of base
self-help need amounts</header>
<subparagraph id="H95ED0B411ACF4AB88F6F5174A8B95123"><enum>(A)</enum><header>In
general</header><text>Except as provided in paragraphs (2), (3), and (4), the
adjusted self-help need amount of each eligible institution shall be the
institution’s base self-help need amount, which is the sum of—</text>
<clause id="H7F11D57E75FD412FA2B7B63579AF0B70"><enum>(i)</enum><text>the self-help need
of the institution’s eligible undergraduate students for such award year;
and</text>
</clause><clause id="HE5603A01F6D143588FA4FD863C401981"><enum>(ii)</enum><text>the self-help
need of the institution’s eligible graduate and professional students for such
award year.</text>
</clause></subparagraph><subparagraph id="HAAEEFB1FF0F3416EA3C6442574F1F0A2"><enum>(B)</enum><header>Undergraduate
student self-help need</header><text display-inline="yes-display-inline">To
determine the self-help need of an institution’s eligible undergraduate
students, the Secretary shall determine the sum of each eligible undergraduate
student’s average cost of attendance for the second preceding award year less
each such student’s expected family contribution (computed in accordance with
part F) for the second preceding award year, except that, for each such
eligible undergraduate student, the amount computed by such subtraction shall
not be less than zero or more than the lesser of—</text>
<clause id="H23F3A7520CBE4205B14DDB7E7724A4CF"><enum>(i)</enum><text>25
percent of the average cost of attendance with respect to such eligible
student; or</text>
</clause><clause id="H54E08EE858FB46E2917102029FFC5214"><enum>(ii)</enum><text>$5,500.</text>
</clause></subparagraph><subparagraph id="H36B18E8D89AF47AA9C6068D866D579E4"><enum>(C)</enum><header>Graduate and
professional student self-help need</header><text display-inline="yes-display-inline">To determine the self-help need of an
institution’s eligible graduate and professional students, the Secretary shall
determine the sum of each eligible graduate and professional student’s average
cost of attendance for the second preceding award year less each such student’s
expected family contribution (computed in accordance with part F) for such
second preceding award year, except that, for each such eligible graduate and
professional student, the amount computed by such subtraction shall not be less
than zero or more than $8,000.</text>
</subparagraph></paragraph><paragraph id="H0283DCC52D354EB99A751081923BAD73"><enum>(2)</enum><header>Ratable
reduction adjustments</header><text display-inline="yes-display-inline">If the
sum of the base self-help need amounts of all eligible institutions for an
award year as determined under
<internal-xref idref="H6EEF27A383814D42B14006C9A840EB8F" legis-path="462A.(c)(1)">paragraph (1)</internal-xref> exceeds
<fraction>½</fraction> of the annual loan authority under
<internal-xref idref="HA3D7571CB5D64B158A5D5D632F5EFF1B" legis-path="462A.(b)">subsection (b)</internal-xref> for such award year, the
Secretary shall ratably reduce the base self-help need amounts of all eligible
institutions until the sum of such amounts is equal to the amount that is
<fraction>½</fraction> of the annual loan authority under
<internal-xref idref="HA3D7571CB5D64B158A5D5D632F5EFF1B" legis-path="462A.(b)">subsection (b)</internal-xref>.</text>
</paragraph></subsection><subsection id="H17C7A91F4A3E400C98BA6E7FAAEBADE5"><enum>(d)</enum><header>Low tuition
incentive amount</header>
<paragraph id="H53FB8D29DE974EF9969E268A941D252A"><enum>(1)</enum><header>In
general</header><text>For purposes of
<internal-xref idref="HB307B871C2884AE1808FB005F9E5D43C" legis-path="462A.(b)(1)(B)">subsection (b)(1)(B)</internal-xref>, the Secretary
shall determine the low tuition incentive amount for each participating
institution for each award year, by calculating for each such institution the
sum of—</text>
<subparagraph id="H163EE391CD464CD0AD1B2C4AFBD3D233"><enum>(A)</enum><text display-inline="yes-display-inline">the total amount, if any (but not less than
zero), by which—</text>
<clause id="H88860366DEDC42DCAFBCF65084323B65"><enum>(i)</enum><text display-inline="yes-display-inline">the average tuition and required fees for
the institution’s sector for the second preceding award year; exceeds</text>
</clause><clause id="H987DD3BD831347E3AC76724980AAE184"><enum>(ii)</enum><text display-inline="yes-display-inline">the tuition and required fees for the
second preceding award year for each undergraduate and graduate student
attending the institution who had financial need (as determined under part F);
plus</text>
</clause></subparagraph><subparagraph id="H464CF9B503A44A32B89D160A3CB717A0"><enum>(B)</enum><text display-inline="yes-display-inline">the total amount, if any (but not less than
zero), by which—</text>
<clause id="HBB4E705BE2D0457B954C8ECCD7A83CA9"><enum>(i)</enum><text display-inline="yes-display-inline">the total amount for the second preceding
award year of non-Federal grant aid provided to meet the financial need of all
undergraduate students attending the institution (as determined without regard
to financial aid not received under this title); exceeds</text>
</clause><clause id="H55F51F234FBD4277BE5D8BC2F033F431"><enum>(ii)</enum><text display-inline="yes-display-inline">the total amount for the second preceding
award year, if any, by which—</text>
<subclause id="HABF6BD5414654F609EE2F64E792962B2"><enum>(I)</enum><text>the tuition and
required fees of each such student with such financial need; exceeds</text>
</subclause><subclause id="H25E877A59C034E7DAF6E4AF53132C669"><enum>(II)</enum><text>the average
tuition and required fees for the institution’s sector.</text>
</subclause></clause></subparagraph></paragraph><paragraph commented="no" id="H47A8867BDC124440AEDD6B35D6983A5D"><enum>(2)</enum><header>Ratable
reduction</header><text display-inline="yes-display-inline">If the sum of the
low tuition incentive amounts of all participating institutions for an award
year as determined under
<internal-xref idref="H53FB8D29DE974EF9969E268A941D252A" legis-path="462A.(d)(1)">paragraph (1)</internal-xref> exceeds
<fraction>1/4</fraction> of the annual loan authority under
<internal-xref idref="HA3D7571CB5D64B158A5D5D632F5EFF1B" legis-path="462A.(b)">subsection (b)</internal-xref> for such award year, the
Secretary shall ratably reduce the low tuition incentive amounts of all
participating institutions until the sum of such amounts is equal to the amount
that is <fraction>1/4</fraction> of the annual loan authority under
<internal-xref idref="HA3D7571CB5D64B158A5D5D632F5EFF1B" legis-path="462A.(b)">subsection (b)</internal-xref>.</text>
</paragraph></subsection><subsection commented="no" id="H20BB4E3D60444E128FC3156FB74E3290"><enum>(e)</enum><header>Federal Pell
Grant and degree recipient amount</header><text display-inline="yes-display-inline">For purposes of
<internal-xref idref="HB307B871C2884AE1808FB005F9E5D43C" legis-path="462A.(b)(1)(B)">subsection (b)(1)(C)</internal-xref>, the Secretary
shall determine the Federal Pell Grant and degree recipient amount for each
participating institution for each award year, by calculating for each such
institution the ratio of—</text>
<paragraph commented="no" id="H8FE644E750D246058172324C07689B0C"><enum>(1)</enum><text display-inline="yes-display-inline">the number of students who, during the most
recent year for which data are available, obtained an associate’s degree or
other postsecondary degree from such participating institution and, prior to
obtaining such degree, received a Federal Pell Grant for attendance at any
institution of higher education; to</text>
</paragraph><paragraph commented="no" id="H152B362C34654D698A993EA4AE8A987B"><enum>(2)</enum><text display-inline="yes-display-inline">the sum of the number of students who,
during the most recent year for which data are available, obtained an
associate’s degree or other postsecondary degree from each participating
institution and, prior to obtaining such degree, received a Federal Pell Grant
for attendance at any institution of higher education.</text>
</paragraph></subsection><subsection id="H5C0DF1FFC5A94A95A03BD9B6FD4D307F"><enum>(f)</enum><header>Definitions</header><text>As
used in this section:</text>
<paragraph id="H4AC42A9EA5D94977AC99726C89C4E514"><enum>(1)</enum><header>Annual loan
authority</header><text display-inline="yes-display-inline">The term
<term>annual loan authority</term> means the total original principal amount of
loans that may be allocated and made available for an award year to make
Federal Direct Perkins Loans under section 455A.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H87127479E8534EF5922142AFEFD6E4F0"><enum>(2)</enum><header>Average cost of
attendance</header>
<subparagraph id="H191B8A64C9594338B740031CC85AEFEE"><enum>(A)</enum><header>In
general</header><text>The term <term>average cost of attendance</term> means
the average of the attendance costs for undergraduate students and for graduate
and professional students, respectively, for the second preceding award year
which shall include—</text>
<clause id="H1288BD3112A34C6CB8DB0E45A4C7E8C9"><enum>(i)</enum><text>tuition and
required fees determined in accordance with
<internal-xref idref="H6ED618B2D39C4136A88B9C2E69775807" legis-path="462A.(f)(2)(B)">subparagraph (B)</internal-xref>;</text>
</clause><clause id="H8926A3324D5B4C0FA56AC037C9E7A87D"><enum>(ii)</enum><text>standard living
expenses determined in accordance with
<internal-xref idref="H312D4CFDF7664862BCF9E3945993968C" legis-path="462A.(f)(2)(C)">subparagraph (C)</internal-xref>; and</text>
</clause><clause id="HA3E0E4AA30714C37AD8DB265F07C7D60"><enum>(iii)</enum><text>books and
supplies determined in accordance with
<internal-xref idref="H944665BF4CCE42C88493795E4BC8465E" legis-path="462A.(f)(2)(D)">subparagraph (D)</internal-xref>.</text>
</clause></subparagraph><subparagraph id="H6ED618B2D39C4136A88B9C2E69775807"><enum>(B)</enum><header>Tuition and
required fees</header><text>The average undergraduate and graduate and
professional tuition and required fees described in
<internal-xref idref="H1288BD3112A34C6CB8DB0E45A4C7E8C9" legis-path="462A.(f)(2)(A)(i)">subparagraph (A)(i)</internal-xref> shall be
computed on the basis of information reported by the institution to the
Secretary, which shall include—</text>
<clause id="H413907C6276C4934B6587004AEBCF232"><enum>(i)</enum><text display-inline="yes-display-inline">total revenue received by the institution
from undergraduate and graduate and professional students, respectively, for
tuition and required fees for the second preceding award year; and</text>
</clause><clause id="H3BEBDF56F3F9461880F9CF8E915FCFF9"><enum>(ii)</enum><text display-inline="yes-display-inline">the institution’s full-time equivalent
enrollment of undergraduate and graduate and professional students,
respectively, for such second preceding award year.</text>
</clause></subparagraph><subparagraph id="H312D4CFDF7664862BCF9E3945993968C"><enum>(C)</enum><header>Standard living
expenses</header><text display-inline="yes-display-inline">The standard living
expense described in
<internal-xref idref="H8926A3324D5B4C0FA56AC037C9E7A87D" legis-path="462A.(f)(2)(A)(ii)">subparagraph (A)(ii)</internal-xref> is equal
to the allowance, determined by an institution, for room and board costs
incurred by a student, as computed in accordance with part F for the second
preceding award year.</text>
</subparagraph><subparagraph id="H944665BF4CCE42C88493795E4BC8465E"><enum>(D)</enum><header>Books and
supplies</header><text display-inline="yes-display-inline">The allowance for
books and supplies described in
<internal-xref idref="HA3E0E4AA30714C37AD8DB265F07C7D60" legis-path="462A.(f)(2)(A)(iii)">subparagraph (A)(iii)</internal-xref> is equal
to the allowance, determined by an institution, for books, supplies,
transportation, and miscellaneous personal expenses, including a reasonable
allowance for the documented rental or purchase of a personal computer, as
computed in accordance with part F for the second preceding award year.</text>
</subparagraph></paragraph><paragraph id="HA0414EB7275C42E0A380652A310C04F9"><enum>(3)</enum><header>Average tuition
and required fees for the institution’s sector</header><text>The term
<term>average tuition and required fees for the institution’s sector</term>
shall be determined by the Secretary for each of the categories described in
section 132(d).</text>
</paragraph><paragraph id="H8678022C4FBD4D2AA33261ADCE686FC6"><enum>(4)</enum><header>Eligible
institution</header><text>The term <term>eligible institution</term> means an
institution of higher education that participates in the Federal Direct
Stafford Loan Program.</text>
</paragraph><paragraph commented="no" id="H7ABEA8434D61405EA4D3844995204C44"><enum>(5)</enum><header>Participating
institution</header><text>The term <term>participating institution</term> means
an institution of higher education that has an agreement under section
463(f).</text>
</paragraph><paragraph id="H11E77412D62847BA8EC1F50C8C98392F"><enum>(6)</enum><header>Sector</header><text display-inline="yes-display-inline">The term <term>sector</term> means each of
the categories described in section
132(d).</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H61CC6F441F104C01B042729AC6946350"><enum>225.</enum><header>Agreements with
institutions of higher education</header>
<subsection id="HE6AC2E89FE074497907891AFF3FC128A"><enum>(a)</enum><header>Amendments</header><text display-inline="yes-display-inline">Section 463 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087cc">20 U.S.C. 1087cc</external-xref>) is
amended—</text>
<paragraph id="HAF25F81A7BD5481DAF5C30D3CD03D5B8"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="HE6D17F3E7A8B481282DD4EEEB9AE5AAA"><enum>(A)</enum><text>in the heading, by
inserting <quote><header-in-text level="subsection" style="OLC">for loans made
before July 1, 2010</header-in-text></quote> after <quote><header-in-text level="subsection" style="OLC">Agreements</header-in-text></quote>;</text>
</subparagraph><subparagraph id="HFFA9BF4A8E94493F8BD824644F81D729"><enum>(B)</enum><text>in paragraph
(3)(A), by inserting <quote>before July 1, 2010</quote> after
<quote>students</quote>;</text>
</subparagraph><subparagraph commented="no" id="HCC099AB258F34EE2B217E8816978A991"><enum>(C)</enum><text>in paragraph (4),
by striking <quote>thereon—</quote> and all that follows and inserting
<quote>thereon, if the institution has failed to maintain an acceptable
collection record with respect to such loan, as determined by the Secretary in
accordance with criteria established by regulation, the Secretary may require
the institution to assign such note or agreement to the Secretary, without
recompense;</quote>; and</text>
</subparagraph><subparagraph id="H737CB657D30F4976B20F160C2B988E74"><enum>(D)</enum><text>in paragraph (5),
by striking <quote>and the Secretary shall apportion</quote> and all that
follows through <quote>in accordance with section 462</quote> and inserting
<quote>and the Secretary shall return a portion of funds from loan repayments
to the institution as specified in section 466(b)</quote>;</text>
</subparagraph></paragraph><paragraph id="H129E1D98B8A443418E18BD196248FD16"><enum>(2)</enum><text>by amending
subsection (b) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HEFBE21365D274ED0A02EC286AF99DC82" style="OLC">
<subsection commented="no" id="H6190D8E7021B429E82F6949E00B005DD"><enum>(b)</enum><header>Administrative
Expenses</header><text display-inline="yes-display-inline">An institution that
has entered into an agreement under subsection (a) shall be entitled, for each
fiscal year during which it services student loans from a student loan fund
established under such agreement, to a payment in lieu of reimbursement for its
expenses in servicing student loans made before July 1, 2010. Such payment
shall be equal to 0.50 percent of the outstanding principal and interest
balance of such loans being serviced by the institution as of September 30 of
each fiscal year.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H53812A4E06BE424CBFEB8E039F76E955"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H8E26AB620CC941B197A79A9274493986" style="OLC">
<subsection id="HB3D5FA6CA3B44A09AF4362449E50DADC"><enum>(f)</enum><header>Contents of
agreements for loans made on or after July 1, 2010</header><text>An agreement
with any institution of higher education that elects to participate in the
Federal Direct Perkins Loan program under section 455A shall provide—</text>
<paragraph id="H5F18D13874664660A3E7327D98DE44C3"><enum>(1)</enum><text>for the
establishment and maintenance of a Direct Perkins Loan program at the
institution under which the institution shall use loan authority allocated
under section 462A to make loans to eligible students attending the
institution;</text>
</paragraph><paragraph id="H2F983E675FD54E2AAA1911742E7D716E"><enum>(2)</enum><text>that the
institution, unless otherwise specified in this subsection, shall operate the
program consistent with the requirements of agreements established under
section 454;</text>
</paragraph><paragraph commented="no" id="H6CBF2EA0F311462286C87B2D6C753011"><enum>(3)</enum><text display-inline="yes-display-inline">that the institution will pay matching
funds, quarterly, in an amount agreed to by the institution and the Secretary,
to an escrow account approved by the Secretary, for the purpose of providing
loan benefits to borrowers;</text>
</paragraph><paragraph commented="no" id="H156A767BC1444803BF42CFC037CEF44A"><enum>(4)</enum><text display-inline="yes-display-inline">that if the institution fails to meet the
requirements of
<internal-xref idref="H6CBF2EA0F311462286C87B2D6C753011" legis-path="(f)(3)">paragraph (3)</internal-xref>, the Secretary shall suspend
or terminate the institution’s eligibility to make Federal Direct Perkins Loans
under section 455A until such time as the Secretary determines, in accordance
with section 498, that the institution has met the requirements of such
paragraph; and</text>
</paragraph><paragraph commented="no" id="HC86063A93EC04762861700A3779C3B43"><enum>(5)</enum><text display-inline="yes-display-inline">that if the institution ceases to be an
eligible institution within the meaning of section 435(a) by reason of having a
cohort default rate that exceeds the threshold percentage specified in
paragraph (2) of such section, the Secretary shall suspend or terminate the
institution’s eligibility to make Federal Direct Perkins Loans under section
455A unless and until the institution would qualify for a resumption of
eligible institution status under such
section.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H1A85CFF9C16D49B6B8B7F15B411DAE75"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
<internal-xref idref="H129E1D98B8A443418E18BD196248FD16" legis-path="225.(a)(2)">paragraph (2) of subsection (a)</internal-xref> shall
take effect on October 1, 2010.</text>
</subsection></section><section commented="no" id="H4C3DB5C544784FA09A6F7BA60747ECEE"><enum>226.</enum><header>Student loan
information by eligible institutions</header><text display-inline="no-display-inline">Section 463A (<external-xref legal-doc="usc" parsable-cite="usc/20/1087cc-1">20 U.S.C. 1087cc–1</external-xref>) is
amended—</text>
<paragraph commented="no" id="H1DBA6A23D6474BE9BEBE75A13B1733CA"><enum>(1)</enum><text>in subsection (a),
by striking <quote>Each institution</quote> and inserting <quote>For loans made
before July 1, 2010, each institution</quote>; and</text>
</paragraph><paragraph commented="no" id="HC1A913F72FED41CA8721095BEA5F71EB"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b), by striking <quote>Each
institution</quote> and inserting <quote>For loans made before July 1, 2010,
each institution</quote>.</text>
</paragraph></section><section id="H2F51AC155D5246099F26A78FBE56152C"><enum>227.</enum><header>Terms of
loans</header><text display-inline="no-display-inline">Section 464
(<external-xref legal-doc="usc" parsable-cite="usc/20/1087dd">20 U.S.C.
1087dd</external-xref>) is amended—</text>
<paragraph id="HA3882F20394B4A048592EA6122472C28"><enum>(1)</enum><text>in subsection
(a)(1), by striking <quote>section 463</quote> and inserting <quote>section
463(a)</quote>;</text>
</paragraph><paragraph id="HDA929DD9BC7644C2A76BD24515B29204"><enum>(2)</enum><text>in subsection
(b)(1), by inserting <quote>made before July 1, 2010,</quote> after <quote>A
loan</quote>;</text>
</paragraph><paragraph id="H59079FE07B534AAABBCD022996D9BAD0"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (c)—</text>
<subparagraph id="H56A44B4D59194E7280A46A965FEC93AA"><enum>(A)</enum><text>in paragraph (1),
by inserting <quote>made before July 1, 2010,</quote> after <quote>a
loan</quote>;</text>
</subparagraph><subparagraph id="H0531DDE6C6ED4231B4E66D761C44C14B"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<clause id="H21848387057049F2A82EC6F0E393C2E1"><enum>(i)</enum><text>in
subparagraph (A), by inserting <quote>made before July 1, 2010,</quote> after
<quote>any loan</quote>; and</text>
</clause><clause id="H741F8959E6FB408785A6571E80B30A46"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (B), by inserting
<quote>made before July 1, 2010,</quote> after <quote>any loan</quote>;</text>
</clause></subparagraph><subparagraph id="H65FE18D9827D460FA16A6908A114458B"><enum>(C)</enum><text>in paragraph
(3)(B), by inserting <quote>for a loan made before July 1, 2010,</quote> after
<quote>during the repayment period</quote>;</text>
</subparagraph><subparagraph id="HA61615E9D07345F4A14118DAC809F5A0"><enum>(D)</enum><text display-inline="yes-display-inline">in paragraph (4), by inserting
<quote>before July 1, 2010,</quote> after <quote>for a loan
made</quote>;</text>
</subparagraph><subparagraph id="H83BC9675800742BA8BF4DDFB4D101F1C"><enum>(E)</enum><text>in paragraph (5),
by striking <quote>The institution</quote> and inserting <quote>For loans made
before July 1, 2010, the institution</quote>; and</text>
</subparagraph><subparagraph id="HBA4BD34B770D4E20BE9806318B2C632C"><enum>(F)</enum><text>in paragraph (6),
by inserting <quote>made before July 1, 2010,</quote> after <quote>of
loans</quote>;</text>
</subparagraph></paragraph><paragraph id="HB11C80DFA1904F898DFB0FEC1837F324"><enum>(4)</enum><text display-inline="yes-display-inline">in subsection (d), by inserting <quote>made
before July 1, 2010,</quote> before <quote>from the student loan
fund</quote>;</text>
</paragraph><paragraph id="HF2E07759C3C34DC4982FC02BDFFB54B5"><enum>(5)</enum><text>in subsection (e),
by inserting <quote>with respect to loans made before July 1, 2010, and</quote>
before <quote>as documented in accordance with paragraph (2),</quote>;</text>
</paragraph><paragraph id="HA06413632A4A45AF8165B374E39273BA"><enum>(6)</enum><text>by repealing
subsection (f);</text>
</paragraph><paragraph id="H691AB4ADDEDA423B960DBB90EEE0EE41"><enum>(7)</enum><text>in subsection
(g)(1), by inserting <quote>and before July 1, 2010,</quote> after
<quote>January 1, 1986,</quote>;</text>
</paragraph><paragraph id="HA00454CFAFE14455A8917752B12BBC74"><enum>(8)</enum><text display-inline="yes-display-inline">in subsection (h)—</text>
<subparagraph id="H862879273BD745F383235F3DD2A55634"><enum>(A)</enum><text>in paragraph
(1)(A) by inserting <quote>before July 1, 2010,</quote> after <quote>made under
this part</quote>; and</text>
</subparagraph><subparagraph id="H4E22B69B1C4A4F62A3C287577D0961F1"><enum>(B)</enum><text>in paragraph (2),
by inserting <quote>before July 1, 2010,</quote> after <quote>under this
part</quote>; and</text>
</subparagraph></paragraph><paragraph id="H258AA0FFD5EF4E29AA1F15DA5229CE26"><enum>(9)</enum><text display-inline="yes-display-inline">in subsection (j)(1), by inserting
<quote>before July 1, 2010,</quote> after <quote>under this
part</quote>.</text>
</paragraph></section><section id="H507E801261DE4DE894721DE794B9BDF9"><enum>228.</enum><header>Distribution of
assets from student loan funds</header>
<subsection id="HB9A37E86C3D3419B8750891896BB14DE"><enum>(a)</enum><text display-inline="yes-display-inline">Section 465 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087ee">20 U.S.C. 1087ee</external-xref>) is
amended—</text>
<paragraph id="HF31012F4D8934240B277AD27B6D1E212"><enum>(1)</enum><text>in subsection (a),
by inserting <quote>and before July 1, 2010,</quote> after <quote>June 30,
1972,</quote>; and</text>
</paragraph><paragraph id="HDEADAFC8164E412095F7F6968FE32959"><enum>(2)</enum><text>by amending
subsection (b) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HED340DB85F0A4494A13D5489D86B4381" style="OLC">
<subsection id="HF28CBCDD91ED4B4CA1AE6EF9222F6FDE"><enum>(b)</enum><header>Reimbursement
for cancellations</header>
<paragraph id="H6306F41A1076463CBD3F7A0F74E82667"><enum>(1)</enum><header>Assigned
loans</header><text display-inline="yes-display-inline">In the case of loans
made under this part before July 1, 2010, and that are assigned to the
Secretary, the Secretary shall, from amounts repaid each quarter on assigned
Perkins Loans made before July 1, 2010, pay to each institution for each
quarter an amount equal to—</text>
<subparagraph id="H7B680AA82E4A4F1FB7C60BCB1AA544F0"><enum>(A)</enum><text>the aggregate of
the amounts of loans from its student loan fund that are canceled pursuant to
this section for such quarter, minus</text>
</subparagraph><subparagraph id="H0FDD619B41004BA9BBEFCE79ADE85886"><enum>(B)</enum><text>an amount equal to
the aggregate of the amounts of any such loans so canceled that were made from
Federal capital contributions to its student loan fund.</text>
</subparagraph></paragraph><paragraph id="H1012DF7DD674459FB57C6A512041F12D"><enum>(2)</enum><header>Retained
loans</header><text display-inline="yes-display-inline">In the case of loans
made under this part before July 1, 2010, and that are retained by the
institution for servicing, the institution shall deduct from loan repayments
owed to the Secretary under section 466, an amount equal to—</text>
<subparagraph id="H342C5C39A3E8482A8DD2E5F99352006A"><enum>(A)</enum><text>the aggregate of
the amounts of loans from its student loan fund that are canceled pursuant to
this section for such quarter, minus</text>
</subparagraph><subparagraph id="H1C70089F2E26466DB7C8094F933016B8"><enum>(B)</enum><text>an amount equal to
the aggregate of the amounts of any such loans so canceled that were made from
Federal capital contributions to its student loan
fund.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H2BCCD53DEB634B7A88F49EDEAEB0AF8A"><enum>(b)</enum><text display-inline="yes-display-inline">Section 466 (<external-xref legal-doc="usc" parsable-cite="usc/20/1087ff">20 U.S.C. 1087ff</external-xref>) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H0220652CAA2E40CD8541E09F59BAC466" style="OLC">
<section id="H33690AFA510940E9951C223175C12198"><enum>466.</enum><header>Distribution of
assets from student loan funds</header>
<subsection id="H7AABF1DA06064B9EBBA239470D634483"><enum>(a)</enum><header>Capital
distribution</header><text display-inline="yes-display-inline">Beginning July
1, 2010, there shall be a capital distribution of the balance of the student
loan fund established under this part by each institution of higher education
as follows:</text>
<paragraph id="H163F406B729148539827ABA487E5E9C2"><enum>(1)</enum><text>For the quarter
beginning July 1, 2010, the Secretary shall first be paid, no later than
September 30, 2010, an amount that bears the same ratio to the cash balance in
such fund at the close of June 30, 2010, as the total amount of the Federal
capital contributions to such fund by the Secretary under this part bears
to—</text>
<subparagraph id="HAA55197839D8486687D50DDC83919B80"><enum>(A)</enum><text display-inline="yes-display-inline">the sum of such Federal contributions and
the institution’s capital contributions to such fund, less</text>
</subparagraph><subparagraph id="HFDEAEC1EA0FE454489B018637DFCC2EF"><enum>(B)</enum><text>an amount equal
to—</text>
<clause id="HD2FE67C0ED124E239ECAD622C5916F0E"><enum>(i)</enum><text>the institution’s
outstanding administrative costs as calculated under section 463(b),</text>
</clause><clause id="H1250E1EB51074833893D607E03C712F5"><enum>(ii)</enum><text>outstanding
charges assessed under section 464(c)(1)(H), and</text>
</clause><clause id="H2C194470DF3245599EC239EB866E1550"><enum>(iii)</enum><text>outstanding loan
cancellation costs incurred under section 465.</text>
</clause></subparagraph></paragraph><paragraph id="HEFCE39DDDB0B4AB9B9379DF461B6FAF1"><enum>(2)</enum><text>At the end of each
quarter subsequent to the quarter ending September 30, 2010, the Secretary
shall first be paid an amount that bears the same ratio to the cash balance in
such fund at the close of the preceding quarter, as the total amount of the
Federal capital contributions to such fund by the Secretary under this part
bears to—</text>
<subparagraph id="H15762F9D726940A79B96EC6858318921"><enum>(A)</enum><text>the sum of such
Federal contributions and the institution’s capital contributions to such fund,
less</text>
</subparagraph><subparagraph id="HA068C7915CE340E48FCAB07EFA0B6923"><enum>(B)</enum><text>an amount equal
to—</text>
<clause id="HA0360EDA167C4B9E8D36050F028EC53A"><enum>(i)</enum><text>the institution’s
administrative costs incurred for that quarter as calculated under section
463(b),</text>
</clause><clause id="H7E41050EB6CA4E379ED7FF0DFC10DB65"><enum>(ii)</enum><text>charges assessed
for that quarter under section 464(c)(1)(H), and</text>
</clause><clause id="H9ACC4D91B01B446FAA87FEE801A5D178"><enum>(iii)</enum><text>loan
cancellation costs incurred for that quarter under section 465.</text>
</clause></subparagraph></paragraph><paragraph id="HFE0CD9D3F7FD48B694FCEA66E5037177"><enum>(3)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H5DB437D944A64163A0FAB254133FADA5"><enum>(A)</enum><text>The Secretary shall
calculate the amounts due to the Secretary under
<internal-xref idref="H163F406B729148539827ABA487E5E9C2" legis-path="466.(a)(1)">paragraph (1)</internal-xref> (adjusted in accordance
with
<internal-xref idref="H4C04D0B30C5045058C5C3CF4A961309D" legis-path="466.(a)(3)(B)">subparagraph (B)</internal-xref>, as appropriate)
and
<internal-xref idref="HEFCE39DDDB0B4AB9B9379DF461B6FAF1" legis-path="466.(a)(2)">paragraph (2)</internal-xref> and shall promptly inform
the institution of such calculated amounts.</text>
</subparagraph><subparagraph commented="no" id="H4C04D0B30C5045058C5C3CF4A961309D" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">In
the event that, prior to the date of enactment of the
<short-title>Student Aid and Fiscal Responsibility Act of
2009</short-title>, an institution made a short-term, interest-free loan to the
institution’s student loan fund established under this part in anticipation of
collections or receipt of Federal capital contributions, and the institution
demonstrates to the Secretary, on or before June 30, 2010, that such loan will
still be outstanding after June 30, 2010, the Secretary shall subtract the
amount of such outstanding loan from the cash balance of the institution’s
student loan fund that is used to calculate the amount due to the Secretary
under
<internal-xref idref="H163F406B729148539827ABA487E5E9C2" legis-path="466.(a)(1)">paragraph (1)</internal-xref>. An adjustment of an
amount due to the Secretary under this subparagraph shall be made by the
Secretary on a case-by-case basis.</text>
</subparagraph></paragraph><paragraph id="H9CBD4825E9A440D58930BE96F0BCCD48"><enum>(4)</enum><text display-inline="yes-display-inline">Any remaining balance at the end of a
quarter after a payment under
<internal-xref idref="H163F406B729148539827ABA487E5E9C2" legis-path="466.(a)(1)">paragraph (1)</internal-xref> or
<internal-xref idref="HEFCE39DDDB0B4AB9B9379DF461B6FAF1" legis-path="466.(a)(2)">(2)</internal-xref> shall be retained by the
institution for use at its discretion. Any balance so retained shall be
withdrawn from the student loan fund and shall not be counted in calculating
amounts owed to the Secretary for subsequent quarters.</text>
</paragraph><paragraph id="HF1FF68CA72CA4F4D9548227E6001D568"><enum>(5)</enum><text>Each institution
shall make the quarterly payments to the Secretary described in
<internal-xref idref="HEFCE39DDDB0B4AB9B9379DF461B6FAF1" legis-path="466.(a)(2)">paragraph (2)</internal-xref> until all outstanding
Federal Perkins Loans at that institution have been assigned to the Secretary
and there are no funds remaining in the institution’s student loan fund.</text>
</paragraph><paragraph id="HDFB112C6E0214C798282374F1F03646E"><enum>(6)</enum><text display-inline="yes-display-inline">In the event that the institution’s
administrative costs, charges, and cancellation costs described in
<internal-xref idref="HEFCE39DDDB0B4AB9B9379DF461B6FAF1" legis-path="466.(a)(2)">paragraph (2)</internal-xref> for a quarter exceed the
amount owed to the Secretary under
<internal-xref idref="H163F406B729148539827ABA487E5E9C2" legis-path="466.(a)(1)">paragraphs (1)</internal-xref> and
<internal-xref idref="HEFCE39DDDB0B4AB9B9379DF461B6FAF1" legis-path="466.(a)(2)">(2)</internal-xref> for that quarter, no payment shall
be due to the Secretary from the institution for that quarter and the Secretary
shall pay the institution, from funds realized from the collection of assigned
Federal Perkins Loans made before July 1, 2010, an amount that, when combined
with the amount retained by the institution under
<internal-xref idref="H163F406B729148539827ABA487E5E9C2" legis-path="466.(a)(1)">paragraphs (1)</internal-xref> and
<internal-xref idref="HEFCE39DDDB0B4AB9B9379DF461B6FAF1" legis-path="466.(a)(2)">(2)</internal-xref>, equals the full amount of such
administrative costs, charges, and cancellation costs.</text>
</paragraph></subsection><subsection id="H5A04B8CF3522415B9FD76C01681DCCF0"><enum>(b)</enum><header>Assignment of
outstanding loans</header><text display-inline="yes-display-inline">Beginning
July 1, 2010, an institution of higher education may assign all outstanding
loans made under this part before July 1, 2010, to the Secretary, consistent
with the requirements of section 463(a)(5). In collecting loans so assigned,
the Secretary shall pay an institution an amount that constitutes the same
fraction of such collections as the fraction of the cash balance that the
institution retains under subsection (a)(2), but determining such fraction
without regard to subparagraph (B)(i) of such
subsection.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H7360C26DD6664038A167266EC0723EF3"><enum>229.</enum><header>Implementation
of non-title IV revenue requirement</header><text display-inline="no-display-inline">Section 487(d) (<external-xref legal-doc="usc" parsable-cite="usc/20/1094">20 U.S.C. 1094(d)</external-xref>)
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF9CE32B5E36240FD90B89817747216DF"><enum>(1)</enum><text>in paragraph
(1)(E), by striking <quote>July 1, 2011</quote> and inserting <quote>July 1,
2012</quote>;</text>
</paragraph><paragraph commented="no" id="HE2833EA805DC4B64AF561D2E7E7DE88E"><enum>(2)</enum><text>in paragraph
(1)(F)—</text>
<subparagraph commented="no" id="HE62CFF467C3C41DA9FB8A3D7FE655215"><enum>(A)</enum><text>by redesignating
clauses (iii), (iv), and (v) as clauses (iv), (v), and (vi), respectively;
and</text>
</subparagraph><subparagraph commented="no" id="H69E299A2C0574628A357BF113CEA223F"><enum>(B)</enum><text>by inserting after
clause (ii) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H182A9FDC996F42B686A9D78BD03FC87C" style="OLC">
<clause commented="no" id="H757112D0EA584568B84D7033F6870ED3"><enum>(iii)</enum><text display-inline="yes-display-inline">for the period beginning July 1, 2010, and
ending July 1, 2012, the amount of funds the institution received from loans
disbursed under section 455A;</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H8DF33661C0F14226B03EA2474BAAF036"><enum>(3)</enum><text>in paragraph (2),
by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H0E203529E6B44B939C5063CE7A8B02A4" style="OLC">
<subparagraph id="H3CDA93AB50964B1898F45EB009F84046"><enum>(C)</enum><header>Exception</header><text display-inline="yes-display-inline">Notwithstanding subparagraphs (A) and (B),
an institution that fails to meet the requirements of subsection (a)(24) for
two consecutive institutional fiscal years, and the second such institutional
fiscal year ends after July 1, 2008, and before July 1, 2011, shall not be
determined ineligible in accordance with subparagraph (A) unless the
institution fails to meet the requirements of subsection (a)(24) for a third
consecutive institutional fiscal
year.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H0BB57EEE89A242D192AB23BD2A4C1718"><enum>230.</enum><header>Administrative
expenses</header><text display-inline="no-display-inline">Section 489(a)
(<external-xref legal-doc="usc" parsable-cite="usc/20/1096">20 U.S.C.
1096(a)</external-xref>) is amended—</text>
<paragraph id="HE2EA5424F88B46549FBB30472009CA73"><enum>(1)</enum><text>in the second
sentence, by striking <quote>or under part E of this title</quote>; and</text>
</paragraph><paragraph id="H4D2DC41C2A034EEA8B107060FFE9F7E9"><enum>(2)</enum><text>in the third
sentence—</text>
<subparagraph id="HEFBE4E57D61B4160B79907790408E3BD"><enum>(A)</enum><text>by inserting
<quote>and</quote> after <quote>subpart 3 of part A,</quote>; and</text>
</subparagraph><subparagraph id="H2AFCC591F3C0496E9F5A9B18AA2A83F6"><enum>(B)</enum><text>by striking
<quote>compensation of students,</quote> and all that follows through the
period and inserting <quote>compensation of students.</quote>.</text>
</subparagraph></paragraph></section></subtitle><enum>III</enum><header>Modernization,
renovation, and repair</header>
<subtitle id="H8B5F5EE1FC494A7D9C8884E0E132CA24"><enum>A</enum><header>Elementary and
Secondary Education</header>
<section id="H354AA32C22AD44F0B74D257490FAD907"><enum>301.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text>
<paragraph id="H6FC1AD1F5E474097A260EA56A4CE0D6F"><enum>(1)</enum><text>The term
<term>Bureau-funded school</term> has the meaning given such term in section
1141 of the Education Amendments of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/25/2021">25 U.S.C. 2021</external-xref>).</text>
</paragraph><paragraph id="H2EC6DF1E1FB44388AFF5419D21C91D55"><enum>(2)</enum><text>The term
<term>charter school</term> has the meaning given such term in section 5210 of
the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7221i">20 U.S.C.
7221i</external-xref>).</text>
</paragraph><paragraph id="HCEAD909D55C84FA58A78C6B5F794F576"><enum>(3)</enum><text display-inline="yes-display-inline">The term <term>CHPS Criteria</term> means
the green building rating program developed by the Collaborative for High
Performance Schools.</text>
</paragraph><paragraph commented="no" id="H7809E852966F4D7C8FF4C64B3A1D843B"><enum>(4)</enum><text display-inline="yes-display-inline">The term <term>Energy Star</term> means the
Energy Star program of the United States Department of Energy and the United
States Environmental Protection Agency.</text>
</paragraph><paragraph id="HF2ACA328E6684CA4906EF42B0DA057CC"><enum>(5)</enum><text>The term
<term>Green Globes</term> means the Green Building Initiative environmental
design and rating system referred to as Green Globes.</text>
</paragraph><paragraph id="H49070D67B92D466BB4D3C110ED6F9914"><enum>(6)</enum><text display-inline="yes-display-inline">The term <term>LEED Green Building Rating
System</term> means the United States Green Building Council Leadership in
Energy and Environmental Design green building rating standard referred to as
LEED Green Building Rating System.</text>
</paragraph><paragraph id="H4B3DE2938F034EA9A62E898BC6FFB07B"><enum>(7)</enum><text>The term
<term>local educational agency</term>—</text>
<subparagraph id="HEED86A9067A140868AE4946FFA9F5DC8"><enum>(A)</enum><text display-inline="yes-display-inline">has the meaning given such term in section
9101 of the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7801">20 U.S.C.
7801</external-xref>);</text>
</subparagraph><subparagraph id="H6CAD8A03EC504078A21B5AA23A5118E4"><enum>(B)</enum><text display-inline="yes-display-inline">includes any public charter school that
constitutes a local educational agency under State law; and</text>
</subparagraph><subparagraph id="H99F50E5AF2374EABB2516B4E8B3D3FAF"><enum>(C)</enum><text>includes the
Recovery School District of Louisiana.</text>
</subparagraph></paragraph><paragraph id="H406F0EA25EDC40ADAD2EC92B4FA39F3D"><enum>(8)</enum><text display-inline="yes-display-inline">The term <term>outlying area</term>—</text>
<subparagraph id="H81DD0F93D1FB4EFFB926B448F90C8630"><enum>(A)</enum><text>means the United
States Virgin Islands, Guam, American Samoa, and the Commonwealth of the
Northern Mariana Islands; and</text>
</subparagraph><subparagraph id="H04D5288577984F3B85B9F029F4BCAD71"><enum>(B)</enum><text>includes the
Republic of Palau.</text>
</subparagraph></paragraph><paragraph id="H18AD193BFCD949AABCC559193857664F"><enum>(9)</enum><text display-inline="yes-display-inline">The term <term>public school
facilities</term> means existing public elementary or secondary school
facilities, including public charter school facilities and other existing
facilities planned for adaptive reuse as public charter school
facilities.</text>
</paragraph><paragraph id="H19B83A764444435FB96AEDB17FDD4347"><enum>(10)</enum><text>The term
<term>Secretary</term> means the Secretary of Education.</text>
</paragraph><paragraph id="HC24B17BFFC444A0C82B466BC0BF34722"><enum>(11)</enum><text>The term
<term>State</term> means each of the 50 States, the District of Columbia, and
the Commonwealth of Puerto Rico.</text>
</paragraph></section><chapter id="H684F778DCED640E489C98DCA2D8F88FE"><enum>1</enum><header>Grants for
modernization, renovation, or repair of public school facilities</header>
<section id="HD5BD13EB8F434DEEA2E3138BF87D54FD"><enum>311.</enum><header>Purpose</header><text display-inline="no-display-inline">Grants under this chapter shall be for the
purpose of modernizing, renovating, or repairing public school facilities
(including early learning facilities, as appropriate), based on the need of the
facilities for such improvements, to ensure that public school facilities are
safe, healthy, high-performing, and technologically up-to-date.</text>
</section><section id="HE379A3624B36422095C9E2D989B1EB72"><enum>312.</enum><header>Allocation of
funds</header>
<subsection id="H07E32AF35AE6483EAB3BFD35D7127CE9"><enum>(a)</enum><header>Reservation</header>
<paragraph id="H0F8E57869C774CF18BFFF7DC18E45913"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">From the amount
appropriated to carry out this chapter for each fiscal year pursuant to section
345(a), the Secretary shall reserve 2 percent of such amount, consistent with
the purpose described in
<internal-xref idref="HD5BD13EB8F434DEEA2E3138BF87D54FD" legis-path="311.">section 311</internal-xref>—</text>
<subparagraph id="H562D4E69BDE3425897114447CFE35208"><enum>(A)</enum><text>to provide
assistance to the outlying areas; and</text>
</subparagraph><subparagraph id="H907DAF46EA5A4048A2392408B81EFFC1"><enum>(B)</enum><text display-inline="yes-display-inline">for payments to the Secretary of the
Interior to provide assistance to Bureau-funded schools.</text>
</subparagraph></paragraph><paragraph id="HC6CB7A1A5D0B46A0948CA2CEEFA50A95"><enum>(2)</enum><header>Use of reserved
funds</header><text display-inline="yes-display-inline">In each fiscal year,
the amount reserved under paragraph (1) shall be divided between the uses
described in subparagraphs (A) and (B) of such paragraph in the same proportion
as the amount reserved under section 1121(a) of the Elementary and Secondary
Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/6331">20 U.S.C. 6331(a)</external-xref>) is divided
between the uses described in paragraphs (1) and (2) of such section 1121(a) in
such fiscal year.</text>
</paragraph><paragraph id="HA08BCD33FE50419F92554AE4E7197C2D"><enum>(3)</enum><header>Distressed areas
and natural disasters</header><text display-inline="yes-display-inline">From
the amount appropriated to carry out this chapter for each fiscal year pursuant
to section 345(a), the Secretary shall reserve 5 percent of such amount for
grants to—</text>
<subparagraph id="H8D03C19DCFC148E1B8DDE589726AE5F1"><enum>(A)</enum><text display-inline="yes-display-inline">local educational agencies serving
geographic areas with significant economic distress, to be used consistent with
the purpose described in
<internal-xref idref="HD5BD13EB8F434DEEA2E3138BF87D54FD" legis-path="311.">section 311</internal-xref> and the allowable uses of funds
described in
<internal-xref idref="H4198B7ED968F46308E94C4BC1BC80E3A" legis-path="313.">section 313</internal-xref>;</text>
</subparagraph><subparagraph id="H1BAD6DD61AAA4D69BF93E29512E4BF6A"><enum>(B)</enum><text display-inline="yes-display-inline">local educational agencies serving
geographic areas recovering from a natural disaster, to be used consistent with
the purpose described in section 321 and the allowable uses of funds described
in section 323; and</text>
</subparagraph><subparagraph id="H84914356713A464B84A60D6FDB358082"><enum>(C)</enum><text>local educational
agencies serving geographic areas that contain a military installation selected
for closure under the base closure and realignment process pursuant to the
Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of
<external-xref legal-doc="public-law" parsable-cite="pl/101/510">Public Law
101–510</external-xref>;
<external-xref legal-doc="usc" parsable-cite="usc/10/2687">10 U.S.C.
2687</external-xref> note).</text>
</subparagraph></paragraph></subsection><subsection id="H217BEAA0A40F4655A6F7C1A2800E763B"><enum>(b)</enum><header>Allocation to
States</header>
<paragraph id="H611C0B66CA6C412B890D0E9538E04FCD"><enum>(1)</enum><header>State-by-State
allocation</header><text display-inline="yes-display-inline">Of the amount
appropriated to carry out this chapter for each fiscal year pursuant to section
345(a), and not reserved under
<internal-xref idref="H07E32AF35AE6483EAB3BFD35D7127CE9" legis-path="312.(a)">subsection (a)</internal-xref>, each State shall be
allocated an amount in proportion to the amount received by all local
educational agencies in the State under part A of title I of the Elementary and
Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/6311">20 U.S.C. 6311 et seq.</external-xref>) for the
previous fiscal year relative to the total amount received by all local
educational agencies in every State under such part for such fiscal
year.</text>
</paragraph><paragraph id="H400C9E6D9E97459F8FB871FC7ABA132F"><enum>(2)</enum><header>State
administration</header><text display-inline="yes-display-inline">A State may
reserve up to 1 percent of its allocation under
<internal-xref idref="H611C0B66CA6C412B890D0E9538E04FCD" legis-path="312.(b)(1)">paragraph (1)</internal-xref> to carry out its
responsibilities under this chapter, which include—</text>
<subparagraph id="H180B1EAF48694C32A2C29A65325C4E7E"><enum>(A)</enum><text display-inline="yes-display-inline">providing technical assistance to local
educational agencies;</text>
</subparagraph><subparagraph id="HC1FFE78D21B940D8943ACAB9ED500F09"><enum>(B)</enum><text display-inline="yes-display-inline">developing an online, publicly searchable
database that includes an inventory of public school facilities in the State,
including for each such facility, its design, condition, modernization,
renovation and repair needs, utilization, energy use, and carbon footprint;
and</text>
</subparagraph><subparagraph id="H56358A1212CB4DC4B06BD7BB02B387C3"><enum>(C)</enum><text display-inline="yes-display-inline">creating voluntary guidelines for
high-performing school buildings, including guidelines concerning the
following:</text>
<clause id="H4FAD15C772B14CB1AAAE312FB987307F"><enum>(i)</enum><text>Site
location, storm water management, outdoor surfaces, outdoor lighting, and
transportation, including public transit and pedestrian and bicycle
accessability.</text>
</clause><clause id="H0E59CD3D93A54E149EF592DB169EAFBF"><enum>(ii)</enum><text>Outdoor water
systems, landscaping to minimize water use, including elimination of irrigation
systems for landscaping, and indoor water use reduction.</text>
</clause><clause id="H489B1741962A495AB9B74B382F7D287D"><enum>(iii)</enum><text>Energy
efficiency (including minimum and superior standards, such as for heating,
ventilation, and air conditioning systems), use of alternative energy sources,
commissioning, and training.</text>
</clause><clause id="H090EDDADC93A4DFE9EC2D32688C3E684"><enum>(iv)</enum><text display-inline="yes-display-inline">Use of durable, sustainable materials,
including life-cycle cost effectiveness, and waste reduction.</text>
</clause><clause id="H96DCD1842DC44B7E975526C08E9AF3F5"><enum>(v)</enum><text display-inline="yes-display-inline">Indoor environmental quality, such as day
lighting in classrooms, lighting quality, indoor air quality (including with
reference to reducing the incidence and effects of asthma and other respiratory
illnesses), acoustics, and thermal comfort.</text>
</clause><clause id="HED403B185C6D47AEA0316196F314B50C"><enum>(vi)</enum><text>Operations and
management, such as use of energy-efficient equipment, indoor environmental
management plan, maintenance plan, and pest management.</text>
</clause></subparagraph></paragraph><paragraph id="HB5B06941EA70497EB432796F42986067"><enum>(3)</enum><header>Grants to local
educational agencies</header><text display-inline="yes-display-inline">From the
amount allocated to a State under
<internal-xref idref="H611C0B66CA6C412B890D0E9538E04FCD" legis-path="312.(b)(1)">paragraph (1)</internal-xref>, each eligible local
educational agency in the State shall receive an amount in proportion to the
amount received by such local educational agency under part A of title I of the
Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/6311">20 U.S.C. 6311 et seq.</external-xref>) for the
previous fiscal year relative to the total amount received by all local
educational agencies in the State under such part for such fiscal year, except
that no local educational agency that received funds under such part for such
fiscal year shall receive a grant of less than $5,000 in any fiscal year under
this chapter.</text>
</paragraph><paragraph id="HC3D649D20CA448609C9ED4FDED53E73E"><enum>(4)</enum><header>Special
rule</header><text display-inline="yes-display-inline">Section 1122(c)(3) of
the Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/6332">20 U.S.C.
6332(c)(3)</external-xref>) shall not apply to
<internal-xref idref="H611C0B66CA6C412B890D0E9538E04FCD" legis-path="312.(b)(1)">paragraph (1)</internal-xref> or
<internal-xref idref="HB5B06941EA70497EB432796F42986067" legis-path="312.(b)(3)">(3)</internal-xref>.</text>
</paragraph></subsection><subsection commented="no" id="H163283D88F7B4DB995B5047A7EDAC1CB"><enum>(c)</enum><header>Special
rules</header>
<paragraph commented="no" id="HFBFB1DB243A04E92A0C7A021B206122A"><enum>(1)</enum><header>Distributions by
Secretary</header><text display-inline="yes-display-inline">The Secretary shall
make and distribute the reservations and allocations described in
<internal-xref idref="H07E32AF35AE6483EAB3BFD35D7127CE9" legis-path="312.(a)">subsections (a)</internal-xref> and
<internal-xref idref="H217BEAA0A40F4655A6F7C1A2800E763B" legis-path="312.(b)">(b)</internal-xref> not later than 120 days after an
appropriation of funds for this chapter is made.</text>
</paragraph><paragraph commented="no" id="H03AB144546934E95870DFC2142E68E63"><enum>(2)</enum><header>Distributions by
States</header><text display-inline="yes-display-inline">A State shall make and
distribute the allocations described in
<internal-xref idref="HB5B06941EA70497EB432796F42986067" legis-path="312.(b)(3)">subsection (b)(3)</internal-xref> within 90 days of
receiving such funds from the Secretary.</text>
</paragraph></subsection></section><section id="H4198B7ED968F46308E94C4BC1BC80E3A"><enum>313.</enum><header>Allowable uses
of funds</header><text display-inline="no-display-inline">A local educational
agency receiving a grant under this chapter shall use the grant for
modernization, renovation, or repair of public school facilities (including
early learning facilities, as appropriate), including—</text>
<paragraph id="HAC353A88C9CC46D19EAA53BB60EB9E69"><enum>(1)</enum><text display-inline="yes-display-inline">repair, replacement, or installation of
roofs, including extensive, intensive or semi-intensive green roofs, electrical
wiring, water supply and plumbing systems, sewage systems, storm water runoff
systems, lighting systems, building envelope, windows, ceilings, flooring, or
doors, including security doors;</text>
</paragraph><paragraph id="H7C94FA648DEB4AFD91B4C7D39C585DF6"><enum>(2)</enum><text display-inline="yes-display-inline">repair, replacement, or installation of
heating, ventilation, or air conditioning systems, including insulation, and
conducting indoor air quality assessments;</text>
</paragraph><paragraph id="HC03C8C1D27EA422C89629D82E704059A"><enum>(3)</enum><text display-inline="yes-display-inline">compliance with fire, health, seismic, and
safety codes, including professional installation of fire and life safety
alarms, and modernizations, renovations, and repairs that ensure that schools
are prepared for emergencies, such as improving building infrastructure to
accommodate security measures and installing or upgrading technology to ensure
that schools are able to respond to emergencies such as acts of terrorism,
campus violence, and natural disasters;</text>
</paragraph><paragraph id="H535C85CA166048D7AF232C8BE0F20B93"><enum>(4)</enum><text>retrofitting
necessary to increase the energy efficiency and water efficiency of public
school facilities;</text>
</paragraph><paragraph id="H7D212687D69043E5ACE33097E9F490B4"><enum>(5)</enum><text>modifications
necessary to make facilities accessible in compliance with the Americans with
Disabilities Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/12101">42 U.S.C. 12101 et seq.</external-xref>) and
section 504 of the Rehabilitation Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/29/794">29 U.S.C. 794</external-xref>);</text>
</paragraph><paragraph id="H7D035B2E3D494F2CBF3A178A8146736C"><enum>(6)</enum><text display-inline="yes-display-inline">abatement, removal, or interim controls of
asbestos, polychlorinated biphenyls, mold, mildew, lead-based hazards,
including lead-based paint hazards, or a proven carcinogen;</text>
</paragraph><paragraph id="H8E148FF27DDF44C9A51D74365655804E"><enum>(7)</enum><text display-inline="yes-display-inline">measures designed to reduce or eliminate
human exposure to classroom noise and environmental noise pollution;</text>
</paragraph><paragraph id="H5CB64150E11D4D6D860BC61467413952"><enum>(8)</enum><text display-inline="yes-display-inline">modernization, renovation, or repair
necessary to reduce the consumption of coal, electricity, land, natural gas,
oil, or water;</text>
</paragraph><paragraph id="H9938898AA348400F94793977CEE840FB"><enum>(9)</enum><text>installation or
upgrading of educational technology infrastructure;</text>
</paragraph><paragraph id="HCECF91D1E78D42998B3CE6D48F907E0E"><enum>(10)</enum><text>modernization,
renovation, or repair of science and engineering laboratories, libraries, and
career and technical education facilities, and improvements to building
infrastructure to accommodate bicycle and pedestrian access;</text>
</paragraph><paragraph id="H149FF61AA45E4A438DD90787930EB7B7"><enum>(11)</enum><text display-inline="yes-display-inline">installation or upgrading of renewable
energy generation and heating systems, including solar, photovoltaic, wind,
biomass (including wood pellet and woody biomass), waste-to-energy, and
solar-thermal and geothermal systems, and for energy audits;</text>
</paragraph><paragraph display-inline="no-display-inline" id="H26FF312DF2C54D9E92F4DDB83B0D837A"><enum>(12)</enum><text display-inline="yes-display-inline">measures designed to reduce or eliminate
human exposure to airborne particles such as dust, sand, and pollens;</text>
</paragraph><paragraph id="HFBC51AD379724407B411297B39DD92AC"><enum>(13)</enum><text>creating
greenhouses, gardens (including trees), and other facilities for environmental,
scientific, or other educational purposes, or to produce energy savings;</text>
</paragraph><paragraph display-inline="no-display-inline" id="HF1843AA2FF084B1CA9370EBDC91AFA3D"><enum>(14)</enum><text display-inline="yes-display-inline">modernizing, renovating, or repairing
physical education facilities for students, including upgrading or installing
recreational structures made from post-consumer recovered materials in
accordance with the comprehensive procurement guidelines prepared by the
Administrator of the Environmental Protection Agency under section 6002(e) of
the Solid Waste Disposal Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6962">42 U.S.C. 6962(e)</external-xref>);</text>
</paragraph><paragraph id="H41F764C5483E4454970FD258C615601A"><enum>(15)</enum><text display-inline="yes-display-inline">other modernization, renovation, or repair
of public school facilities to—</text>
<subparagraph id="H1C147925D3D448A8A89D8F5F113EFE77"><enum>(A)</enum><text>improve teachers’
ability to teach and students’ ability to learn;</text>
</subparagraph><subparagraph id="HCA4C15740A7D42FC9EAB1580DD3A961F"><enum>(B)</enum><text>ensure the health
and safety of students and staff;</text>
</subparagraph><subparagraph id="H981EAB753A02443C9445B6417A1F9D56"><enum>(C)</enum><text>make them more
energy efficient; or</text>
</subparagraph><subparagraph id="HFC862E792F47469AB26B72BBF18005F2"><enum>(D)</enum><text>reduce class size;
and</text>
</subparagraph></paragraph><paragraph id="H7FDB95D1D37A4E508A66AB134172371C"><enum>(16)</enum><text display-inline="yes-display-inline">required environmental remediation related
to modernization, renovation, or repair described in paragraphs (1) through
(15).</text>
</paragraph></section><section id="H3C8E04DA8EDC440F81A588226F0A63FA"><enum>314.</enum><header>Priority
projects</header><text display-inline="no-display-inline">In selecting a
project under
<internal-xref idref="H4198B7ED968F46308E94C4BC1BC80E3A" legis-path="313.">section 313</internal-xref>, a local educational agency may
give priority to projects involving the abatement, removal, or interim controls
of asbestos, polychlorinated biphenyls, mold, mildew, lead-based hazards,
including lead-based paint hazards, or a proven carcinogen.</text>
</section></chapter><chapter id="HF404050605554702BFDA98EDB5EF397E"><enum>2</enum><header>Supplemental
grants for Louisiana, Mississippi, and Alabama</header>
<section commented="no" id="HDD905F5417864F4F988F964DA4660E47"><enum>321.</enum><header>Purpose</header><text display-inline="no-display-inline">Grants under this chapter shall be for the
purpose of modernizing, renovating, repairing, or constructing public school
facilities, (including early learning facilities, as appropriate), based on the
need for such improvements or construction, to ensure that public school
facilities are safe, healthy, high-performing, and technologically
up-to-date.</text>
</section><section id="H190AAFB71CE4418FAA50256BBFF07F67"><enum>322.</enum><header>Allocation to
local educational agencies</header>
<subsection id="HDFA9C28EC68B4850B8FC73970700FE89"><enum>(a)</enum><header>In
general</header><text>Of the amount appropriated to carry out this chapter for
each fiscal year pursuant to section 345(b), the Secretary shall allocate to
local educational agencies in Louisiana, Mississippi, and Alabama an amount
equal to the infrastructure damage inflicted on public school facilities in
each such district by Hurricane Katrina or Hurricane Rita in 2005 relative to
the total of such infrastructure damage so inflicted in all such districts,
combined.</text>
</subsection><subsection id="H25946229C425474C874829CBA165A4E1"><enum>(b)</enum><header>Distribution by
Secretary</header><text>The Secretary shall determine and distribute the
allocations described in
<internal-xref idref="HDFA9C28EC68B4850B8FC73970700FE89" legis-path="322.(a)">subsection (a)</internal-xref> not later than 120 days
after an appropriation of funds for this chapter is made.</text>
</subsection></section><section commented="no" id="H6E37F30AD6FE41B4A884CF208757259A"><enum>323.</enum><header>Allowable uses
of funds</header><text display-inline="no-display-inline">A local educational
agency receiving a grant under this chapter shall use the grant for one or more
of the activities described in section 313, except that an agency receiving a
grant under this chapter also may use the grant for the construction of new
public school facilities.</text>
</section></chapter><chapter id="H9F2F8E251F464FD1BCE93B506FCE1A2B"><enum>3</enum><header>General
provisions</header>
<section id="H353CA6BF364845D99A8231D29831418F"><enum>331.</enum><header>Impermissible
uses of funds</header><text display-inline="no-display-inline">No funds
received under this subtitle may be used for—</text>
<paragraph id="H24A539FBE11F4E2CAC615A49ACFF1E7A"><enum>(1)</enum><text>payment of
maintenance costs, including routine repairs classified as current expenditures
under State or local law;</text>
</paragraph><paragraph id="HEE8144BC10A443069C790706CF27B6FC"><enum>(2)</enum><text>stadiums or other
facilities primarily used for athletic contests or exhibitions or other events
for which admission is charged to the general public;</text>
</paragraph><paragraph id="HBFF12A6220EC4576AB8FF64FC60D2369"><enum>(3)</enum><text>improvement or
construction of facilities the purpose of which is not the education of
children, including central office administration or operations or logistical
support facilities; or</text>
</paragraph><paragraph commented="no" id="HF471787ACB4E4717A57837B9525B8FF3"><enum>(4)</enum><text>purchasing carbon
offsets.</text>
</paragraph></section><section id="H16DDB62DFDF14AE78DF26A3AE83CB498"><enum>332.</enum><header>Supplement, not
supplant</header><text display-inline="no-display-inline">A local educational
agency receiving a grant under this subtitle shall use such Federal funds only
to supplement and not supplant the amount of funds that would, in the absence
of such Federal funds, be available for modernization, renovation, repair, and
construction of public school facilities.</text>
</section><section id="HB45A14CF7BE3424E8C9093545872635F"><enum>333.</enum><header>Prohibition
regarding State aid</header><text display-inline="no-display-inline">A State
shall not take into consideration payments under this subtitle in determining
the eligibility of any local educational agency in that State for State aid, or
the amount of State aid, with respect to free public education of
children.</text>
</section><section commented="no" id="HEB9E4DD707D7479CA1514B6E3B5D9549"><enum>334.</enum><header>Maintenance of
effort</header>
<subsection commented="no" id="H23F83D63CCD54579B15505F6AB66CA31"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">A local educational
agency may receive a grant under this subtitle for any fiscal year only if
either the combined fiscal effort per student or the aggregate expenditures of
the agency and the State involved with respect to the provision of free public
education by the agency for the preceding fiscal year was not less than 90
percent of the combined fiscal effort or aggregate expenditures for the second
preceding fiscal year.</text>
</subsection><subsection commented="no" id="H36DF63A314544AB8963E4629C2455BBF"><enum>(b)</enum><header>Reduction in
case of failure To meet maintenance of effort requirement</header>
<paragraph commented="no" id="H8B994714E2D344DCA41353C1CD5992B4"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The State educational
agency shall reduce the amount of a local educational agency’s grant in any
fiscal year in the exact proportion by which a local educational agency fails
to meet the requirement of
<internal-xref idref="H23F83D63CCD54579B15505F6AB66CA31" legis-path="334.(a)">subsection (a)</internal-xref> by falling below 90 percent
of both the combined fiscal effort per student and aggregate expenditures
(using the measure most favorable to the local agency).</text>
</paragraph><paragraph commented="no" id="H671E5B625F4047EBB31E18E71E800D72"><enum>(2)</enum><header>Special
rule</header><text>No such lesser amount shall be used for computing the effort
required under
<internal-xref idref="H23F83D63CCD54579B15505F6AB66CA31" legis-path="334.(a)">subsection (a)</internal-xref> for subsequent
years.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDC5C20ABB7EF444E9B84571B6E6DDBFE"><enum>(c)</enum><header>Waiver</header><text>The
Secretary shall waive the requirements of this section if the Secretary
determines that a waiver would be equitable due to—</text>
<paragraph commented="no" id="HDF4D42F1120A4FA09FEB6114452B9D8A"><enum>(1)</enum><text>exceptional or
uncontrollable circumstances, such as a natural disaster; or</text>
</paragraph><paragraph commented="no" id="H0133C467088A4BA1A04CCB6633C30C02"><enum>(2)</enum><text>a precipitous
decline in the financial resources of the local educational agency.</text>
</paragraph></subsection></section><section id="H7F2A45048D95422F978D7816819E55A6"><enum>335.</enum><header>Special rule on
contracting</header><text display-inline="no-display-inline">Each local
educational agency receiving a grant under this subtitle shall ensure that, if
the agency carries out modernization, renovation, repair, or construction
through a contract, the process for any such contract ensures the maximum
number of qualified bidders, including local, small, minority, and women- and
veteran-owned businesses, through full and open competition.</text>
</section><section id="H0F0E5A14650546B1A30F0FA82B39436D"><enum>336.</enum><header>Use of American
iron, steel, and manufactured goods</header>
<subsection id="H03242965314A4DB3ACB82E4D99245296"><enum>(a)</enum><header>In
general</header><text>None of the funds appropriated or otherwise made
available by this subtitle may be used for a project for the modernization,
renovation, repair, or construction of a public school facility unless all of
the iron, steel, and manufactured goods used in the project are produced in the
United States.</text>
</subsection><subsection id="HEDB7AAF8D1724F53B4081F77FAA65639"><enum>(b)</enum><header>Exceptions</header><text>Subsection
(a) shall not apply in any case or category of cases in which the Secretary
finds that—</text>
<paragraph id="H4B6D60702D5945869124E1E63A0E79AC"><enum>(1)</enum><text>applying
<internal-xref idref="H03242965314A4DB3ACB82E4D99245296" legis-path="336.(a)">subsection (a)</internal-xref> would be inconsistent with
the public interest;</text>
</paragraph><paragraph id="HEB1C40706F19429F8271AB3BC708425D"><enum>(2)</enum><text>iron, steel, and
the relevant manufactured goods are not produced in the United States in
sufficient and reasonably available quantities and of a satisfactory quality;
or</text>
</paragraph><paragraph id="H9B7177B2468147219F130209652474BD"><enum>(3)</enum><text>inclusion of iron,
steel, and manufactured goods produced in the United States will increase the
cost of the overall project by more than 25 percent.</text>
</paragraph></subsection><subsection id="H790E651A8C5149DD95B5C32172598121"><enum>(c)</enum><header>Publication of
justification</header><text>If the Secretary determines that it is necessary to
waive the application of subsection (a) based on a finding under subsection
(b), the Secretary shall publish in the Federal Register a detailed written
justification of the determination.</text>
</subsection><subsection id="H032E67B414CE4DF3AAE4C3EF846FA80D"><enum>(d)</enum><header>Construction</header><text>This
section shall be applied in a manner consistent with United States obligations
under international agreements.</text>
</subsection></section><section id="HAB4A2617D067470B8A3DA1F28BA0B720"><enum>337.</enum><header>Labor
standards</header><text display-inline="no-display-inline">The grant programs
under this subtitle are applicable programs (as that term is defined in section
400 of the General Education Provisions Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1221">20 U.S.C. 1221</external-xref>)) subject to section
439 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1232b">20
U.S.C. 1232b</external-xref>).</text>
</section><section id="HFD3B635B585442D9A5C111B70B649C61"><enum>338.</enum><header>Charter
schools</header>
<subsection id="H1AEBD073689446EF809454A3AB19A45D"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">A local educational
agency receiving an allocation under this subtitle shall reserve an amount of
that allocation for charter schools within its jurisdiction for modernization,
renovation, repair, and construction of charter school facilities (including
early learning facilities, as appropriate).</text>
</subsection><subsection id="HDCFC924097E2424C934DF8B22AFEA4B8"><enum>(b)</enum><header>Determination of
reserved amount</header><text display-inline="yes-display-inline">The amount to
be reserved by a local educational agency under
<internal-xref idref="H1AEBD073689446EF809454A3AB19A45D" legis-path="338.(a)">subsection (a)</internal-xref> shall be determined based
on the combined percentage of students counted under section 1113(a)(5) of the
Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/6313">20 U.S.C. 6313(a)(5)</external-xref>) in the
schools of the agency who—</text>
<paragraph id="H355D83B0FDCA4FA5A2B2D91D7BA3890B"><enum>(1)</enum><text>are enrolled in
charter schools; and</text>
</paragraph><paragraph id="HAFAC10BB09704803A4C90DAACB3AD1C3"><enum>(2)</enum><text>the local
educational agency, in consultation with the authorized public chartering
agency, expects to be enrolled, during the year with respect to which the
reservation is made, in charter schools that are scheduled to commence
operation during such year.</text>
</paragraph></subsection><subsection id="HDBAA7A4C7684463EBFD2BD3865D559FB"><enum>(c)</enum><header>School
share</header><text display-inline="yes-display-inline">Individual charter
schools shall receive a share of the amount reserved under subsection (a) based
on the need of each school for modernization, renovation, repair, or
construction, as determined by the local educational agency in consultation
with charter school administrators.</text>
</subsection><subsection id="H9FC69713B5B34B6190BD2EAA5A1AD334"><enum>(d)</enum><header>Excess
funds</header><text display-inline="yes-display-inline">After the consultation
described in subsection (c), if the local educational agency determines that
the amount of funds reserved under subsection (a) exceeds the modernization,
renovation, repair, and construction needs of charter schools within the local
educational agency’s jurisdiction, the agency may use the excess funds for
other public school facility modernization, renovation, repair, or construction
consistent with this subtitle and is not required to carry over such funds to
the following fiscal year for use for charter schools.</text>
</subsection></section><section id="H7D03376254934E43A84FF35CDA355CB5"><enum>339.</enum><header>Green
schools</header>
<subsection id="HBAE36F9AAC6A4BE0A9D4917B8644414F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Of the funds
appropriated for a given fiscal year and made available to a local educational
agency to carry out this subtitle, the local educational agency shall use not
less than the applicable percentage (described in
<internal-xref idref="HC606B9AB44C84532BB2739DDA27749C7" legis-path="339.(b)">subsection (b)</internal-xref>) of such funds for public
school modernization, renovation, repair, or construction that are certified,
verified, or consistent with any applicable provisions of—</text>
<paragraph id="HFAA93F854D6D48D18AB30C05FED08FC6"><enum>(1)</enum><text display-inline="yes-display-inline">the LEED Green Building Rating
System;</text>
</paragraph><paragraph id="H1DF36614A8F148948FCD281914A69916"><enum>(2)</enum><text display-inline="yes-display-inline">Energy Star;</text>
</paragraph><paragraph id="H34BEE52523E54C0F9F564F31B2C90F11"><enum>(3)</enum><text display-inline="yes-display-inline">the CHPS Criteria;</text>
</paragraph><paragraph id="H98894D92C7454719ACF3DBC6E985BFE8"><enum>(4)</enum><text>Green Globes;
or</text>
</paragraph><paragraph id="H1CC15B7DE5C64E35A11E1D51FC804DA3"><enum>(5)</enum><text display-inline="yes-display-inline">an equivalent program adopted by the State,
or another jurisdiction with authority over the local educational agency, that
includes a verifiable method to demonstrate compliance with such
program.</text>
</paragraph></subsection><subsection commented="no" id="HC606B9AB44C84532BB2739DDA27749C7"><enum>(b)</enum><header>Applicable
percentages</header><text>The applicable percentage described in
<internal-xref idref="HBAE36F9AAC6A4BE0A9D4917B8644414F" legis-path="339.(a)">subsection (a)</internal-xref> is—</text>
<paragraph commented="no" id="H16889E4838C64A2997D4617C6A4DA68B"><enum>(1)</enum><text>for funds
appropriated in fiscal year 2010, 50 percent; and</text>
</paragraph><paragraph commented="no" id="H72487D6EFA6F458081F365A04A2FD745"><enum>(2)</enum><text>for funds
appropriated in fiscal year 2011, 75 percent.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HD3F039A32FF34E8685DDF158FE2793E2"><enum>(c)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">Nothing in this
section shall be construed to prohibit a local educational agency from using
sustainable, domestic hardwood lumber as ascertained through the forest
inventory and analysis program of the Forest Service of the Department of
Agriculture under the Forest and Rangeland Renewable Resources Research Act of
1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/1641">16 U.S.C. 1641
et seq.</external-xref>) for public school modernization, renovation, repairs,
or construction.</text>
</subsection><subsection id="HAED281BE6FAB4E3DA83F8F93C93850E4"><enum>(d)</enum><header>Technical
assistance</header><text display-inline="yes-display-inline">The Secretary, in
consultation with the Secretary of Energy and the Administrator of the
Environmental Protection Agency, shall provide outreach and technical
assistance to States and local educational agencies concerning the best
practices in school modernization, renovation, repair, and construction,
including those related to student academic achievement, student and staff
health, energy efficiency, and environmental protection.</text>
</subsection></section><section id="H61D96A9303794773B8326DC17D108FC1"><enum>340.</enum><header>Reporting</header>
<subsection id="H10264A74ECD3452C9132945C754FC47C"><enum>(a)</enum><header>Reports by local
educational agencies</header><text>Local educational agencies receiving a grant
under this subtitle shall annually compile a report describing the projects for
which such funds were used, including—</text>
<paragraph id="HA876D3BB9E6444CCB39BC42F1B96F7CE"><enum>(1)</enum><text display-inline="yes-display-inline">the number and identity of public schools
in the agency, including the number of charter schools, and for each school,
the total number of students, and the number of students counted under section
1113(a)(5) of the Elementary and Secondary Education Act of 1965
(<external-xref legal-doc="usc" parsable-cite="usc/20/6313">20 U.S.C.
6313(a)(5)</external-xref>);</text>
</paragraph><paragraph id="H201E11E57E7D4988ABEC2FC6077E1D14"><enum>(2)</enum><text display-inline="yes-display-inline">the total amount of funds received by the
local educational agency under this subtitle, and for each public school in the
agency, including each charter school, the amount of such funds expended, and
the types of modernization, renovation, repair, or construction projects for
which such funds were used;</text>
</paragraph><paragraph id="H759DDC160BE949AB9CDD84DD9DD78011"><enum>(3)</enum><text>the number of
students impacted by such projects, including the number of students so
impacted who are counted under section 1113(a)(5) of the Elementary and
Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/6313">20 U.S.C. 6313(a)(5)</external-xref>);</text>
</paragraph><paragraph id="HABF606B05A3B4C27A532FE60F7D92050"><enum>(4)</enum><text>the number of
public schools in the agency with a metro-centric locale code of 41, 42, or 43
as determined by the National Center for Education Statistics and the
percentage of funds received by the agency under chapter 1 or chapter 2 of this
subtitle that were used for projects at such schools;</text>
</paragraph><paragraph commented="no" id="H70426B8F333E4A9292F40A881A9891F4"><enum>(5)</enum><text display-inline="yes-display-inline">the number of public schools in the agency
that are eligible for schoolwide programs under section 1114 of the Elementary
and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/6314">20 U.S.C. 6314</external-xref>) and the percentage
of funds received by the agency under chapter 1 or chapter 2 of this subtitle
that were used for projects at such schools;</text>
</paragraph><paragraph id="H59CC1A5467F344FA87B7FC37168D3559"><enum>(6)</enum><text>for each
project—</text>
<subparagraph id="H2A7B38ACF6F7477DA213FB1FA30C3CFB"><enum>(A)</enum><text>the cost;</text>
</subparagraph><subparagraph commented="no" id="H888C6508038E4E2487DDBAAF6675C18F"><enum>(B)</enum><text display-inline="yes-display-inline">the standard described in
<internal-xref idref="HBAE36F9AAC6A4BE0A9D4917B8644414F" legis-path="339.(a)">section 339(a)</internal-xref> with which the use of the
funds complied or, if the use of funds did not comply with a standard described
in
<internal-xref idref="HBAE36F9AAC6A4BE0A9D4917B8644414F" legis-path="339.(a)">section 339(a)</internal-xref>, the reason such funds were
not able to be used in compliance with such standards and the agency’s efforts
to use such funds in an environmentally sound manner; and</text>
</subparagraph><subparagraph id="HB7F052898E464EFE8091283DCE757E30"><enum>(C)</enum><text display-inline="yes-display-inline">any demonstrable or expected benefits as a
result of the project (such as energy savings, improved indoor environmental
quality, student and staff health, including the reduction of the incidence and
effects of asthma and other respiratory illnesses, and improved climate for
teaching and learning); and</text>
</subparagraph></paragraph><paragraph commented="no" id="H55B0701D6435422EBF1499D7EAF31CF8"><enum>(7)</enum><text>the total number
and amount of contracts awarded, and the number and amount of contracts awarded
to local, small, minority, women, and veteran-owned businesses.</text>
</paragraph></subsection><subsection commented="no" id="H1FBDB761E68643CBBF020F87999DE7A4"><enum>(b)</enum><header>Availability of
reports</header><text display-inline="yes-display-inline">A local educational
agency shall—</text>
<paragraph commented="no" id="HD31953C1FF624486836033EF6A36FDF9"><enum>(1)</enum><text>submit the report
described in
<internal-xref idref="H10264A74ECD3452C9132945C754FC47C" legis-path="340.(a)">subsection (a)</internal-xref> to the State educational
agency, which shall compile such information and report it annually to the
Secretary; and</text>
</paragraph><paragraph commented="no" id="HF851F757A4064A54800E62F8B4584FB3"><enum>(2)</enum><text display-inline="yes-display-inline">make the report described in
<internal-xref idref="H10264A74ECD3452C9132945C754FC47C" legis-path="340.(a)">subsection (a)</internal-xref> publicly available,
including on the agency’s website.</text>
</paragraph></subsection><subsection id="H1B19E342CCFE431D987A19AE78858D90"><enum>(c)</enum><header>Reports by
Secretary</header><text display-inline="yes-display-inline">Not later than
March 31 of each fiscal year, the Secretary shall submit to the Committee on
Education and Labor of the House of Representatives and the Committee on
Health, Education, Labor and Pensions of the Senate, and make available on the
Department of Education’s website, a report on grants made under this subtitle,
including the information from the reports described in
<internal-xref idref="HD31953C1FF624486836033EF6A36FDF9" legis-path="340.(b)(1)">subsection (b)(1)</internal-xref>.</text>
</subsection></section><section commented="no" id="H58206AC03A9B45F4AD7FEAFB03C65E74"><enum>341.</enum><header>Special
rules</header><text display-inline="no-display-inline">Notwithstanding any
other provision of this subtitle, none of the funds authorized by this subtitle
may be—</text>
<paragraph commented="no" id="H007D01EBB29B4ABCBEAA0119287A78BD"><enum>(1)</enum><text>used to employ
workers in violation of section 274A of the Immigration and Nationality Act
(<external-xref legal-doc="usc" parsable-cite="usc/8/1324a">8 U.S.C.
1324a</external-xref>); or</text>
</paragraph><paragraph commented="no" id="H3FDE15FE33A4422589CAC70E7197236D"><enum>(2)</enum><text>distributed to a
local educational agency that does not have a policy that requires a criminal
background check on all employees of the agency.</text>
</paragraph></section><section commented="no" id="H7F81FBD0B91A4BC981F81DFFB87456CD"><enum>342.</enum><header>Promotion of
employment experiences</header><text display-inline="no-display-inline">The
Secretary of Education, in consultation with the Secretary of Labor, shall work
with recipients of funds under this subtitle to promote appropriate
opportunities to gain employment experience working on modernization,
renovation, repair, and construction projects funded under this subtitle
for—</text>
<paragraph commented="no" id="H65F5411DC86244559701EC52FC053DA1"><enum>(1)</enum><text>participants in a
YouthBuild program (as defined in section 173A of the Workforce Investment Act
of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2918a">29 U.S.C.
2918a</external-xref>));</text>
</paragraph><paragraph commented="no" id="HD69E7659F65E40748408107A03DFD665"><enum>(2)</enum><text>individuals
enrolled in the Job Corps program carried out under subtitle C of title I of
the Workforce Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2881">29 U.S.C. 2881 et seq.</external-xref>);</text>
</paragraph><paragraph commented="no" id="HC26B946F4CCE4FC6BC2125CFCBCCB684"><enum>(3)</enum><text>individuals
enrolled in a junior or community college (as defined in section 312(f) of the
Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1088">20 U.S.C. 1088(f)</external-xref>)) certificate or
degree program relating to projects described in
<internal-xref idref="HBAE36F9AAC6A4BE0A9D4917B8644414F" legis-path="339.(a)">section 339(a)</internal-xref>; and</text>
</paragraph><paragraph id="H0AF349A0E7E8447CB7344A208CA2054B"><enum>(4)</enum><text>participants in
preapprenticeship programs that have direct linkages with apprenticeship
programs that are registered with the Department of Labor or a State
Apprenticeship Agency under the National Apprenticeship Act of 1937
(<external-xref legal-doc="usc" parsable-cite="usc/29/50">29 U.S.C. 50 et
seq.</external-xref>).</text>
</paragraph></section><section display-inline="no-display-inline" id="H36EF157A3A174A9C922DF1A1E6C757BC"><enum>343.</enum><header>Advisory
Council on Green, High-Performing Public School Facilities</header>
<subsection id="HE4B0401A50974151B7AB5C383E419A21"><enum>(a)</enum><header>Establishment of
advisory council</header><text display-inline="yes-display-inline">The
Secretary shall establish an advisory council to be known as the
<quote>Advisory Council on Green, High-Performing Public School
Facilities</quote> (in this section referred to as the <quote>Advisory
Council</quote>) which shall be composed of—</text>
<paragraph id="HB0C3C569205B41FDA38522189455972A"><enum>(1)</enum><text>appropriate
officials from the Department of Education;</text>
</paragraph><paragraph id="H23E7DA53505D4A6589D68EAA74FEDD45"><enum>(2)</enum><text>representatives of
the academic, architectural, business, education, engineering, environmental,
labor, and scientific communities; and</text>
</paragraph><paragraph id="H76DB3844952F475DA1BA6B2BC9FD5157"><enum>(3)</enum><text>such other
representatives as the Secretary deems appropriate.</text>
</paragraph></subsection><subsection id="H0B66EC90D18446D29FCAB7FD352CCE06"><enum>(b)</enum><header>Duties of
advisory council</header>
<paragraph id="H4CBDA8E2E05F402B8F69D20EFE2893E4"><enum>(1)</enum><header>Advisory
duties</header><text>The Advisory Council shall advise the Secretary on the
impact of green, high-performing schools, on—</text>
<subparagraph id="HFD186584F322429BB120EBFE5A7955F5"><enum>(A)</enum><text>teaching and
learning;</text>
</subparagraph><subparagraph id="H6D3871BC08FD4E3981F91B105786F67C"><enum>(B)</enum><text>health;</text>
</subparagraph><subparagraph id="H1D69C60973F84251963524E2117DB7CF"><enum>(C)</enum><text>energy
costs;</text>
</subparagraph><subparagraph id="H06044B3F7EDD42B2AD847C66FB7A226D"><enum>(D)</enum><text>environmental
impact; and</text>
</subparagraph><subparagraph id="HCFBB1393F93B4B7EA036D33CB89FFE44"><enum>(E)</enum><text>other areas that
the Secretary and the Advisory Council deem appropriate.</text>
</subparagraph></paragraph><paragraph id="HC3304C191ADF475FA782FC095B7B8F8F"><enum>(2)</enum><header>Other
duties</header><text>The Advisory Council shall assist the Secretary in—</text>
<subparagraph id="H5BE8F69EB00343F68DA7B1653CE7B0EA"><enum>(A)</enum><text>making
recommendations on Federal policies to increase the number of green,
high-performing schools;</text>
</subparagraph><subparagraph id="HBBA3841E77B54461A8616DAA62BDBD88"><enum>(B)</enum><text>identifying
Federal policies that are barriers to helping States and local educational
agencies make green, high-performing schools;</text>
</subparagraph><subparagraph id="HFA50CAC82010431BAE8E5590243D18DE"><enum>(C)</enum><text>providing
technical assistance and outreach to States and local educational agencies
under
<internal-xref idref="HAED281BE6FAB4E3DA83F8F93C93850E4" legis-path="339.(d)">section 339(d)</internal-xref>; and</text>
</subparagraph><subparagraph id="HB76577835C1A435B8F4A33AB62000321"><enum>(D)</enum><text>providing the
Secretary such other assistance as the Secretary deems appropriate.</text>
</subparagraph></paragraph></subsection><subsection id="HAAEE7BA29A674CE9BFA43CBB8E3F3685"><enum>(c)</enum><header>Consultation</header><text>In
carrying out its duties under
<internal-xref idref="H0B66EC90D18446D29FCAB7FD352CCE06" legis-path="343.(b)">subsection (b)</internal-xref>, the Advisory Council shall
consult with the Chair of the Council on Environmental Quality and the heads of
appropriate Federal agencies, including the Secretary of Commerce, the
Secretary of Energy, the Secretary of Health and Human Services, the Secretary
of Labor, the Administrator of the Environmental Protection Agency, and the
Administrator of the General Services Administration (through the Office of
Federal High-Performance Green Buildings).</text>
</subsection><subsection id="H3F3E992DAE98468EB12428BFF7EBA310"><enum>(d)</enum><header>Termination</header><text>The
authority to establish and maintain the Advisory Council under this section
shall expire at the close of September 30, 2011.</text>
</subsection></section><section id="HF0772B88BEAD4A53A16378D853E5A49B"><enum>344.</enum><header>Education
regarding projects</header><text display-inline="no-display-inline">A local
educational agency receiving funds under this subtitle may encourage schools at
which projects are undertaken with such funds to educate students about the
project, including, as appropriate, the functioning of the project and its
environmental, energy, sustainability, and other benefits.</text>
</section><section id="HA58C478589554176BC10B4A47B2966A2"><enum>345.</enum><header>Availability of
funds</header>
<subsection id="H33AF59CA5113480AB12C1524BB58737E"><enum>(a)</enum><header>Chapter
1</header><text display-inline="yes-display-inline">There are authorized to be
appropriated, and there are appropriated, to carry out chapter 1 of this
subtitle (in addition to any other amounts appropriated to carry out such
chapter and out of any money in the Treasury not otherwise appropriated),
$2,020,000,000 for each of fiscal years 2010 and 2011.</text>
</subsection><subsection id="H9405517447E6424DB973B7D5FAF50B86"><enum>(b)</enum><header>Chapter
2</header><text display-inline="yes-display-inline">There are authorized to be
appropriated, and there are appropriated, to carry out chapter 2 of this
subtitle (in addition to any other amounts appropriated to carry out such
chapter and out of any money in the Treasury not otherwise appropriated),
$30,000,000 for each of fiscal years 2010 and 2011.</text>
</subsection><subsection id="H1DBC257B360248B0B5F43D4EE5F7955C"><enum>(c)</enum><header>Prohibition on
earmarks</header><text display-inline="yes-display-inline">None of the funds
appropriated under this section may be used for a Congressional earmark as
defined in clause 9(d) of rule XXI of the Rules of the House of
Representatives.</text>
</subsection><subsection id="HAC5EE2F9204E4CB2AB5B7468A58407A2"><enum>(d)</enum><header>Sunset</header><text>The
authority to award grants under this subtitle shall expire at the end of fiscal
year 2011.</text>
</subsection></section></chapter></subtitle><subtitle id="H13B0C1AEA0124DB39229CB968DC64690"><enum>B</enum><header>Higher
Education</header>
<section id="H2315C3BC760049C4903A95BC0AEC45FD" section-type="subsequent-section"><enum>351.</enum><header>Federal assistance
for community college modernization and construction</header>
<subsection id="H667127DD16DB4743A2DB9940436D9155"><enum>(a)</enum><header>In
general</header>
<paragraph commented="no" id="H31A98E120B9644A4A5793E3F161ADE3F"><enum>(1)</enum><header>Grant
program</header><text display-inline="yes-display-inline">From the amounts made
available under
<internal-xref idref="H4244F85F30A440D8B84949DAA76BFD79" legis-path="351.(i)">subsection (i)</internal-xref>, the Secretary shall award
grants to States for the purposes of constructing new community college
facilities and modernizing, renovating, and repairing existing community
college facilities. Grants awarded under this section shall be used by a State
for one or more of the following:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE370313B7AE04073BDA936D0675801D1"><enum>(A)</enum><text>To reduce
financing costs of loans for new construction, modernization, renovation, or
repair projects at community colleges (such as paying interest or points on
such loans).</text>
</subparagraph><subparagraph commented="no" id="HC61D99F5F64E43E59E43E5FFF73389BC"><enum>(B)</enum><text>To provide
matching funds for a community college capital campaign to attract private
donations of funds for new construction, modernization, renovation, or repair
projects at the community college.</text>
</subparagraph><subparagraph commented="no" id="H60D390AEC0FE4E2592087D3B399495EE"><enum>(C)</enum><text>To capitalize a
revolving loan fund to finance new construction, modernization, renovation, and
repair projects at community colleges.</text>
</subparagraph></paragraph><paragraph commented="no" id="HC12AC1EDCCF74BF0A48DFC5C605709D1"><enum>(2)</enum><header>Allocation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="H97ED27787A064476926F98321DDC2421"><enum>(A)</enum><header>Determination of
available amount</header><text>The Secretary shall determine the amount
available for allocation to each State by determining the amount equal to the
total number of students in the State who are enrolled in community colleges
and who are pursuing a degree or certificate that is not a bachelor’s,
master’s, professional, or other advanced degree, relative to the total number
of such students in all States, combined.</text>
</subparagraph><subparagraph commented="no" id="H5C4FFF4572184FB49A88EC1B3F98BF93"><enum>(B)</enum><header>Allocation</header><text display-inline="yes-display-inline">The Secretary shall allocate to each State
selected by the Secretary to receive a grant under this section an amount equal
to the amount determined to be available for allocation to such State under
<internal-xref idref="H97ED27787A064476926F98321DDC2421" legis-path="351.(a)(2)(A)">subparagraph (A)</internal-xref>, less any portion
of that amount that is subject to a limitation under
<internal-xref idref="H460EBAD4DA844E7DB9AF08EAB7EAE19B" legis-path="351.(a)(3)">paragraph (3)</internal-xref>.</text>
</subparagraph><subparagraph commented="no" id="H556B8FBFA6E84AD5868CB094180C7B98"><enum>(C)</enum><header>Reallocation</header><text>Amounts
not allocated under this section to a State because—</text>
<clause commented="no" id="HBFC9546A4B50419A98BAFAA5486AE9FB"><enum>(i)</enum><text>the State did not
submit an application under
<internal-xref idref="HEE7FED21B35E470D8C38DE0B53065377" legis-path="351.(b)">subsection (b)</internal-xref>;</text>
</clause><clause commented="no" id="HF7FE2B855CEF487FB95A28C17C03FD2E"><enum>(ii)</enum><text>the State
submitted an application that the Secretary determined did not meet the
requirements of such subsection; or</text>
</clause><clause commented="no" id="HB8A273428A064EB99712FCA54B6CAA18"><enum>(iii)</enum><text>the State is
subject to a limitation under
<internal-xref idref="H460EBAD4DA844E7DB9AF08EAB7EAE19B" legis-path="351.(a)(3)">paragraph (3)</internal-xref> that prevents the State
from using a portion of the allocation,</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">shall be proportionately
reallocated under this paragraph to the States that are not described in
<internal-xref idref="HBFC9546A4B50419A98BAFAA5486AE9FB" legis-path="351.(a)(2)(C)(i)">clause (i)</internal-xref>,
<internal-xref idref="HF7FE2B855CEF487FB95A28C17C03FD2E" legis-path="351.(a)(2)(C)(ii)">(ii)</internal-xref>, or
<internal-xref idref="HB8A273428A064EB99712FCA54B6CAA18" legis-path="351.(a)(2)(C)(iii)">(iii)</internal-xref> of this
subparagraph.</continuation-text></subparagraph></paragraph><paragraph commented="no" id="H460EBAD4DA844E7DB9AF08EAB7EAE19B"><enum>(3)</enum><header>Grant amount
limitations</header><text>A grant awarded to a State under this section—</text>
<subparagraph commented="no" id="HD6CCED74916243988748D70823B2B537"><enum>(A)</enum><text display-inline="yes-display-inline">to reduce financing costs of loans for new
construction, modernization, renovation, or repair projects at community
colleges under
<internal-xref idref="HE370313B7AE04073BDA936D0675801D1" legis-path="351.(a)(1)(A)">paragraph (1)(A)</internal-xref> shall be for an
amount that is not more than 25 percent of the total principal amount of the
loans for which financing costs are being reduced; and</text>
</subparagraph><subparagraph commented="no" id="H28B4CBEA03B04CD698D6D1153DF04720"><enum>(B)</enum><text display-inline="yes-display-inline">to provide matching funds for a community
college capital campaign under
<internal-xref idref="HC61D99F5F64E43E59E43E5FFF73389BC" legis-path="351.(a)(1)(B)">paragraph (1)(B)</internal-xref> shall be for an
amount that is not more than 25 percent of the total amount of the private
donations of funds raised through such campaign over the duration of such
campaign, as such duration is determined by the State in the application
submitted under
<internal-xref idref="HEE7FED21B35E470D8C38DE0B53065377" legis-path="351.(b)">subsection (b)</internal-xref>.</text>
</subparagraph></paragraph><paragraph commented="no" id="H339CA5A828B7451FA7C099191C8163CE"><enum>(4)</enum><header>Supplement, not
supplant</header><text display-inline="yes-display-inline">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 construct
new community college facilities or modernize, renovate, or repair existing
community college facilities.</text>
</paragraph></subsection><subsection id="HEE7FED21B35E470D8C38DE0B53065377"><enum>(b)</enum><header>Application</header><text display-inline="yes-display-inline">A State that desires to receive a grant
under this section shall submit an application to the Secretary at such time,
in such manner, and containing such information and assurances as the Secretary
may require. Such application shall include a certification by the State that
the funds provided under this section for the construction of new community
college facilities and the modernization, renovation, and repair of existing
community college facilities will improve instruction at such colleges and will
improve the ability of such colleges to educate and train students to meet the
workforce needs of employers in the State.</text>
</subsection><subsection commented="no" id="HE326F2BDE99F4F79BFC8F9AABA46A2DF"><enum>(c)</enum><header>Use of funds by
community colleges</header>
<paragraph id="H5E8D78FD009A4E3F878338805775182A"><enum>(1)</enum><header>Permissible uses
of funds</header><text>Funds made available to community colleges through a
loan described in
<internal-xref idref="HE370313B7AE04073BDA936D0675801D1" legis-path="351.(a)(1)(A)">subsection (a)(1)(A)</internal-xref>, a capital
campaign described in
<internal-xref idref="HC61D99F5F64E43E59E43E5FFF73389BC" legis-path="351.(a)(1)(B)">subsection (a)(1)(B)</internal-xref>, or a loan from
a revolving loan fund described in
<internal-xref idref="H60D390AEC0FE4E2592087D3B399495EE" legis-path="351.(a)(1)(C)">subsection (a)(1)(C)</internal-xref> shall be used
only for the construction, modernization, renovation, or repair of community
college facilities that are primarily used for instruction, research, or
student housing, which may include any of the following:</text>
<subparagraph id="HE705230B617B49808E7916521F594A24"><enum>(A)</enum><text>Repair,
replacement, or installation of roofs, including extensive, intensive, or
semi-intensive green roofs, electrical wiring, water supply and plumbing
systems, sewage systems, storm water runoff systems, lighting systems, building
envelope, windows, ceilings, flooring, or doors, including security
doors.</text>
</subparagraph><subparagraph id="HEA0E530F66284855AA1EF8B103B37989"><enum>(B)</enum><text>Repair,
replacement, or installation of heating, ventilation, or air conditioning
systems, including insulation, and conducting indoor air quality
assessments.</text>
</subparagraph><subparagraph id="H9DE742A32D524834BC7593383113F0BC"><enum>(C)</enum><text display-inline="yes-display-inline">Compliance with fire, health, seismic, and
safety codes, including professional installation of fire and life safety
alarms, and modernizations, renovations, and repairs that ensure that the
community college’s facilities are prepared for emergencies, such as improving
building infrastructure to accommodate security measures and installing or
upgrading technology to ensure that the community college is able to respond to
emergencies such as acts of terrorism, campus violence, and natural
disasters.</text>
</subparagraph><subparagraph id="H906454D37B46445F8E1A6AC7D547D50E"><enum>(D)</enum><text>Retrofitting
necessary to increase the energy efficiency of the community college’s
facilities.</text>
</subparagraph><subparagraph id="H1A9ABA100FC1429D82FA4F99476588CD"><enum>(E)</enum><text display-inline="yes-display-inline">Modifications necessary to make facilities
accessible in compliance with the Americans with Disabilities Act of 1990
(<external-xref legal-doc="usc" parsable-cite="usc/42/12101">42 U.S.C. 12101 et
seq.</external-xref>) and section 504 of the Rehabilitation Act of 1973
(<external-xref legal-doc="usc" parsable-cite="usc/29/794">29 U.S.C.
794</external-xref>).</text>
</subparagraph><subparagraph id="H0C4AED58ACBB4220A5C42176F8B864BA"><enum>(F)</enum><text>Abatement,
removal, or interim controls of asbestos, polychlorinated biphenyls, mold,
mildew, or lead-based hazards, including lead-based paint hazards from the
community college’s facilities.</text>
</subparagraph><subparagraph id="H0B239DC4E3544170B00A586D310468B0"><enum>(G)</enum><text>Modernization,
renovation, or repair necessary to reduce the consumption of coal, electricity,
land, natural gas, oil, or water.</text>
</subparagraph><subparagraph id="H6CFE083F7D59465F90E6EEAC4FBF666B"><enum>(H)</enum><text>Modernization,
renovation, and repair relating to improving science and engineering
laboratories, libraries, or instructional facilities.</text>
</subparagraph><subparagraph id="H38423563BC5244A7A2B66347E3D333E7"><enum>(I)</enum><text>Installation or
upgrading of educational technology infrastructure.</text>
</subparagraph><subparagraph id="H798B0B40D05C415786B43DBF02B3EB50"><enum>(J)</enum><text>Installation or
upgrading of renewable energy generation and heating systems, including solar,
photovoltaic, wind, biomass (including wood pellet and woody biomass),
waste-to-energy, solar-thermal and geothermal systems, and energy
audits.</text>
</subparagraph><subparagraph id="HAD43F5FA3EDF433CA7A961091D2D9266"><enum>(K)</enum><text>Expansion or
building of computer lab facilities, including facilities used to provide
information technology training to students and members of the public.</text>
</subparagraph><subparagraph id="H19D8EA556F8D40C2B2D1C27CB1A81845"><enum>(L)</enum><text>Other
modernization, renovation, or repair projects that are primarily for
instruction, research, or student housing.</text>
</subparagraph><subparagraph id="HD5731398B7684C17BB4B19256265F7E4"><enum>(M)</enum><text>Required
environmental remediation related to modernization, renovation, or repair
described in subparagraphs (A) through (L).</text>
</subparagraph></paragraph><paragraph commented="no" id="H69403D4E07744C32A1D1C2F2BFCCDBC0"><enum>(2)</enum><header>Green school
requirement</header><text display-inline="yes-display-inline">A community
college receiving assistance through a loan described in
<internal-xref idref="HE370313B7AE04073BDA936D0675801D1" legis-path="351.(a)(1)(A)">subsection (a)(1)(A)</internal-xref>, a capital
campaign described in
<internal-xref idref="HC61D99F5F64E43E59E43E5FFF73389BC" legis-path="351.(a)(1)(B)">subsection (a)(1)(B)</internal-xref>, or a loan from
a revolving loan fund described in
<internal-xref idref="H60D390AEC0FE4E2592087D3B399495EE" legis-path="351.(a)(1)(C)">subsection (a)(1)(C)</internal-xref> shall use not
less than 50 percent of such assistance to carry out projects for construction,
modernization, renovation, or repair that are certified, verified, or
consistent with the applicable provisions of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H2D8B410D132043D3827E7CC0AFB460A3"><enum>(A)</enum><text>the LEED Green
Building Rating System;</text>
</subparagraph><subparagraph commented="no" id="HA92C3862EF764A259F4DF13A4A81A47B"><enum>(B)</enum><text>Energy
Star;</text>
</subparagraph><subparagraph commented="no" id="H103437AFC9F94BC6B657225EB6D94764"><enum>(C)</enum><text>the CHPS Criteria,
as applicable;</text>
</subparagraph><subparagraph commented="no" id="HABB9CD8B31D7436D9E938803705DA38B"><enum>(D)</enum><text>Green Globes;
or</text>
</subparagraph><subparagraph commented="no" id="H9B5D246ECDF941BB901FD1B57F5A5196"><enum>(E)</enum><text>an equivalent
program adopted by the State or the State higher education agency that includes
a verifiable method to demonstrate compliance with such program.</text>
</subparagraph></paragraph><paragraph commented="no" id="H6FC60B3AD8B44DD58E01180E6BEB0568"><enum>(3)</enum><header>Prohibited uses
of funds</header>
<subparagraph commented="no" id="HC6B44A8B15F34B31A55E4319625033A9"><enum>(A)</enum><header>In
general</header><text>No funds awarded under this section may be used
for—</text>
<clause id="H3554CA14A7C74718B0167C584C5C246D"><enum>(i)</enum><text>payment of
maintenance costs;</text>
</clause><clause id="H8B007469F28E407CB7CD13DD2CA41FD6"><enum>(ii)</enum><text>construction,
modernization, renovation, or repair of stadiums or other facilities primarily
used for athletic contests or exhibitions or other events for which admission
is charged to the general public; or</text>
</clause><clause id="H2E94E2E6DC294A03AC580ABF2C702906"><enum>(iii)</enum><text>construction,
modernization, renovation, or repair of facilities—</text>
<subclause id="H6FC12D3F89AC4E8F8D1E87E1DC5DBB10"><enum>(I)</enum><text>used for sectarian
instruction, religious worship, or a school or department of divinity;
or</text>
</subclause><subclause id="H349334125BE548E98587C79AD7D8077D"><enum>(II)</enum><text>in which a
substantial portion of the functions of the facilities are subsumed in a
religious mission.</text>
</subclause></clause></subparagraph><subparagraph commented="no" id="HC6111D0CFFE4406095C282F768A9E880"><enum>(B)</enum><header>Four-year
institutions</header><text display-inline="yes-display-inline">No funds awarded
to a four-year public institution of higher education under this section may be
used for any facility, service, or program of the institution that is not
available to students who are pursuing a degree or certificate that is not a
bachelor’s, master’s, professional, or other advanced degree.</text>
</subparagraph></paragraph></subsection><subsection id="H5836BA5F461745BEA001524604E6C032"><enum>(d)</enum><header>Application of
GEPA</header><text>The grant program authorized in this section is an
applicable program (as that term is defined in section 400 of the General
Education Provisions Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1221">20 U.S.C. 1221</external-xref>)) subject to section
439 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1232b">20
U.S.C. 1232b</external-xref>). The Secretary shall, notwithstanding section 437
of such Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1232">20
U.S.C. 1232</external-xref>) and
<external-xref legal-doc="usc" parsable-cite="usc/5/553">section
553</external-xref> of title 5, United States Code, establish such program
rules as may be necessary to implement such grant program by notice in the
Federal Register.</text>
</subsection><subsection id="H66B3AAD28D37446A9AB39D28D3713F22"><enum>(e)</enum><header>Concurrent
funding</header><text display-inline="yes-display-inline">Funds made available
under this section shall not be used to assist any community college that
receives funding for the construction, modernization, renovation, and repair of
facilities under any other program under this Act.</text>
</subsection><subsection id="H526C5849046D425EA440A781FC0C8906"><enum>(f)</enum><header>Reports by the
States</header><text>Each State that receives a grant under this section shall,
not later than September 30, 2012, and annually thereafter for each fiscal year
in which the State expends funds received under this section, submit to the
Secretary a report that includes—</text>
<paragraph id="H05B8AD6D89CA45BAB4136070A94EB763"><enum>(1)</enum><text>a
description the projects for which the grant funding was, or will be,
used;</text>
</paragraph><paragraph id="HAAA970D099B64CF4902AFB70927F26CC"><enum>(2)</enum><text display-inline="yes-display-inline">a list of the community colleges that have
received, or will receive, assistance from the grant through a loan described
in
<internal-xref idref="HE370313B7AE04073BDA936D0675801D1" legis-path="351.(a)(1)(A)">subsection (a)(1)(A)</internal-xref>, a capital
campaign described in
<internal-xref idref="HC61D99F5F64E43E59E43E5FFF73389BC" legis-path="351.(a)(1)(B)">subsection (a)(1)(B)</internal-xref>, or a loan from
a revolving loan fund described in
<internal-xref idref="H60D390AEC0FE4E2592087D3B399495EE" legis-path="351.(a)(1)(C)">subsection (a)(1)(C)</internal-xref>; and</text>
</paragraph><paragraph id="HB0EF8CF06B1D44029CA8AE323BE8A5F4"><enum>(3)</enum><text>a
description of the amount and nature of the assistance provided to each such
college.</text>
</paragraph></subsection><subsection id="H03E4D57345AD49B1B15243F6D1CC9586"><enum>(g)</enum><header>Report by the
Secretary</header><text>The Secretary shall submit to the authorizing
committees (as defined in section 103 of the Higher Education Act of 1965) an
annual report on the grants made under this section, including the information
described in
<internal-xref idref="H526C5849046D425EA440A781FC0C8906" legis-path="351.(f)">subsection (f)</internal-xref>.</text>
</subsection><subsection id="HDE2B4BBA66A143A09A9FC82302ED956B"><enum>(h)</enum><header>Definitions</header>
<paragraph id="H28B703436F6A452A827104859B534280"><enum>(1)</enum><header>Community
college</header><text display-inline="yes-display-inline">As used in this
section, the term <term>community college</term> means—</text>
<subparagraph id="H501A99E479A14A29B40E2565FAA8A2B7"><enum>(A)</enum><text>a junior or
community college, as such term is defined in section 312(f) of the Higher
Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1085">20 U.S.C. 1085(f)</external-xref>); or</text>
</subparagraph><subparagraph id="H69C587AFB02B408E9759357CEED3E707"><enum>(B)</enum><text>a four-year public
institution of higher education (as defined in section 101 of the Higher
Education Act of 1965) that awards a significant number of degrees and
certificates that are not—</text>
<clause id="HCA30064F92D14B6695754CEE3B6F5125"><enum>(i)</enum><text>bachelor’s degrees
(or an equivalent); or</text>
</clause><clause id="H1DFC83441E46499A9351325AD1B57622"><enum>(ii)</enum><text>master’s,
professional, or other advanced degrees.</text>
</clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H959798EDCFE642C288F31605720568BF"><enum>(2)</enum><header>CHPS
criteria</header><text>The term <term>CHPS Criteria</term> means the green
building rating program developed by the Collaborative for High Performance
Schools.</text>
</paragraph><paragraph id="H449304651D9447E9BC43D43A73E31466"><enum>(3)</enum><header>Energy
star</header><text>The term <term>Energy Star</term> means the Energy Star
program of the United States Department of Energy and the United States
Environmental Protection Agency.</text>
</paragraph><paragraph id="H194EEED24AC444B7B59E5B230425A4E4"><enum>(4)</enum><header>Green
globes</header><text>The term <term>Green Globes</term> means the Green
Building Initiative environmental design and rating system referred to as Green
Globes.</text>
</paragraph><paragraph id="H52383061CD3243D48D11FAD64E02FC60"><enum>(5)</enum><header>Leed green
building rating system</header><text>The term <term>LEED Green Building Rating
System</term> means the United States Green Building Council Leadership in
Energy and Environmental Design green building rating standard referred to as
the LEED Green Building Rating System.</text>
</paragraph><paragraph id="H22426F42B37A412B885D37582502A141"><enum>(6)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Education.</text>
</paragraph><paragraph commented="no" id="H68BA53061E5D44A2963FB11629EE63F5"><enum>(7)</enum><header>State</header><text display-inline="yes-display-inline">The term <quote>State</quote> has the
meaning given such term in section 103 of the Higher Education Act of 1965
(<external-xref legal-doc="usc" parsable-cite="usc/20/1003">20 U.S.C.
1003</external-xref>).</text>
</paragraph></subsection><subsection id="H4244F85F30A440D8B84949DAA76BFD79"><enum>(i)</enum><header>Availability of
funds</header><text display-inline="yes-display-inline">There are authorized to
be appropriated, and there are appropriated, to carry out this section (in
addition to any other amounts appropriated to carry out this section and out of
any money in the Treasury not otherwise appropriated), $2,500,000,000 for
fiscal year 2010, which shall remain available until expended. The authority to
award grants under this section shall expire at the end of fiscal year
2010.</text>
</subsection></section></subtitle><enum>IV</enum><header>Early learning
challenge fund</header>
<section id="H32213B83265649A6A51E575701BBBA1A"><enum>401.</enum><header>Purpose</header><text display-inline="no-display-inline">The purpose of this title is to provide
grants on a competitive basis to States for the following:</text>
<paragraph id="H74B9C24260A749CAB47CFDF101DAD896"><enum>(1)</enum><text>To promote
standards reform of State early learning programs serving children from birth
through age 5 in order to support the healthy development and improve the
school readiness outcomes of young children.</text>
</paragraph><paragraph id="H2C3C7220727E4653ABDB00C4D152EA0D"><enum>(2)</enum><text>To establish a
high standard of quality in early learning programs that integrates appropriate
early learning and development standards across early learning settings.</text>
</paragraph><paragraph id="HBDDDA90B11FF49F1A7C4DBFB34013970"><enum>(3)</enum><text display-inline="yes-display-inline">To fund and implement quality initiatives
that improve the skills and effectiveness of early learning providers and the
quality of existing early learning programs, in order to increase the number of
disadvantaged children who participate in comprehensive and high-quality early
learning programs.</text>
</paragraph><paragraph id="HFBE253EF8F1C416C9A5C2A51C2039792"><enum>(4)</enum><text display-inline="yes-display-inline">To ensure that a greater number of
disadvantaged children enter kindergarten with the cognitive, social,
emotional, and physical skills and abilities needed to be successful in
school.</text>
</paragraph><paragraph id="H10533FB3CADA4E04B46F558411523CD1"><enum>(5)</enum><text display-inline="yes-display-inline">To increase parents’ abilities to access
comprehensive and high quality early learning programs across settings for
their children.</text>
</paragraph></section><section id="HF2253DEB201C4AC3B8A50BA418A4CABF"><enum>402.</enum><header>Programs
authorized</header>
<subsection id="HF25D7080F18B491A994D3C110EC283BF"><enum>(a)</enum><header>Quality pathways
grants</header><text display-inline="yes-display-inline">The Secretary shall
use funds made available to carry out this title for a fiscal year to award
grants on a competitive basis to States in accordance with
<internal-xref idref="H11736DAF51C74FD9A5A28CF1DF1119A9" legis-path="403.">section 403</internal-xref>.</text>
</subsection><subsection id="H6DC537AE899D49C7915EB18436B76974"><enum>(b)</enum><header>Development
grants</header><text display-inline="yes-display-inline">The Secretary shall
use funds made available to carry out this title for a fiscal year to award
grants in accordance with
<internal-xref idref="H819FD5300E7E48C188983BD1FDC5967F" legis-path="404.">section 404</internal-xref> on a competitive basis to States
that demonstrate a commitment to establishing a system of early learning that
will include the components described in
<internal-xref idref="HCB21CEA4377242B587C0A81E44F9D3F9" legis-path="403.(c)(3)">section 403(c)(3)</internal-xref> but are not—</text>
<paragraph display-inline="no-display-inline" id="HC00B0E80EBF844819039038F38D84A57"><enum>(1)</enum><text>eligible to be
awarded a grant under
<internal-xref idref="HF25D7080F18B491A994D3C110EC283BF" legis-path="402.(a)">subsection (a)</internal-xref>; or</text>
</paragraph><paragraph id="H4C738CD704D7427285407A88E0834489"><enum>(2)</enum><text>are not awarded
such a grant after application.</text>
</paragraph></subsection><subsection id="H95EE5425667B42508DBACBB64771CFD6"><enum>(c)</enum><header>Reservations of
Federal funds</header>
<paragraph id="H8CA33C27A0194F499C577F228D808104"><enum>(1)</enum><header>Research,
evaluation, and administration</header><text display-inline="yes-display-inline">From the amount made available to carry out
this title for a fiscal year, the Secretary—</text>
<subparagraph id="HCAAA199A67C24291BB7FD0971B1749E7"><enum>(A)</enum><text>shall reserve up
to 2 percent jointly to administer this title with the Secretary of Health and
Human Services; and</text>
</subparagraph><subparagraph id="HFB5D67CF4CAC4B65B4AF38940A5F0677"><enum>(B)</enum><text>shall reserve up
to 3 percent to carry out activities under
<internal-xref idref="HC87B36C92E47417190947D834DE112F0" legis-path="405.">section 405</internal-xref>.</text>
</subparagraph></paragraph><paragraph id="HCB3CF263260247938A4E95C597F748AD"><enum>(2)</enum><header>Tribal school
readiness planning demonstration</header><text>After making the reservations
under
<internal-xref idref="H8CA33C27A0194F499C577F228D808104" legis-path="402.(c)(1)">paragraph (1)</internal-xref>, the Secretary shall
reserve 0.25 percent for a competitive grant program for Indian tribes to
develop and implement school readiness plans that—</text>
<subparagraph id="H8C4C1DD2596D4240BDBDD10425841D98"><enum>(A)</enum><text>are coordinated
with local educational agencies serving children who are members of the tribe;
and</text>
</subparagraph><subparagraph id="H2B593092C25D41B79FFCAD1602608174"><enum>(B)</enum><text display-inline="yes-display-inline">include American Indian and Alaska Native
Head Start and Early Head Start programs, tribal child care programs, Indian
Health Service programs, and other tribal programs serving children, including
programs receiving funds under sections 611(h)(4) and 643(b) of the Individuals
with Disabilities Education Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1411">20 U.S.C. 1411(h)(4)</external-xref> and
1443(b)).</text>
</subparagraph></paragraph><paragraph id="H15875CD898A34AC490B4C50F6FDAFF62"><enum>(3)</enum><header>Quality pathways
grants</header>
<subparagraph id="H1A83A11F2965431AB23B39A7E238E5A6"><enum>(A)</enum><header>In
general</header><text>From the amount made available to carry out this title
for a fiscal year and not reserved under paragraph (1) or (2), the Secretary
shall reserve a percent (which shall be not greater than 65 percent for fiscal
years 2010 through 2012 and not greater than 85 percent for fiscal year 2013
and each succeeding fiscal year) determined under subparagraph (B) to carry out
subsection (a).</text>
</subparagraph><subparagraph id="HD48E515C986E40EFACE798F5F4E14761"><enum>(B)</enum><header>Determination of
amount</header><text display-inline="yes-display-inline">In determining the
amount to reserve under subparagraph (A), the Secretary, consistent with
section 403(e), shall take into account the following:</text>
<clause id="H3A5E9D7B213344C7B6797356D2386B27"><enum>(i)</enum><text display-inline="yes-display-inline">The total number of States with an approved
application for a grant under this title for the year.</text>
</clause><clause id="HF86333254E4142588F2E8222A2A82731"><enum>(ii)</enum><text>The
number of children under age 5 from low-income families in each State with an
approved application under section 403 for the year.</text>
</clause></subparagraph><subparagraph id="H8D93F79219A94F00A4B201B9EB869B14"><enum>(C)</enum><header>Reallocation</header><text>For
fiscal year 2013 and subsequent fiscal years, the Secretary may reallocate
funds allocated for development grants under subsection (b) for the purpose of
providing additional grants under subsection (a), if the Secretary determines
that there is an insufficient number of applications that meet the requirements
for a grant under subsection (b).</text>
</subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="H10B67C5138C6433F9A7ABEFDEC8F105C"><enum>(d)</enum><header>State
applications</header><text display-inline="yes-display-inline">In applying for
a grant under this title, a State—</text>
<paragraph id="H0A45779156964DF3A551802A424D38E0"><enum>(1)</enum><text>shall designate a
State-level entity for administration of the grant;</text>
</paragraph><paragraph id="H4E31B246756E43F0B97CC784BAD8C106"><enum>(2)</enum><text display-inline="yes-display-inline">shall coordinate proposed activities with
the State Advisory Council on Early Childhood Education and Care (established
pursuant to section 642B(b)(1)(A) of the Head Start Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9837b">42 U.S.C.
9837b(b)(1)(A)</external-xref>)) and shall incorporate plans and
recommendations from such Council in the application, where applicable;
and</text>
</paragraph><paragraph id="H44016F2A07374F36A11887167296C8AF"><enum>(3)</enum><text display-inline="yes-display-inline">otherwise shall submit the application to
the Secretary at such time, in such manner, and containing such information as
the Secretary may reasonably require.</text>
</paragraph></subsection><subsection commented="no" id="H44602832423A4E76B9C5E721C8634C7F"><enum>(e)</enum><header>Priority in
awarding grants</header><text display-inline="yes-display-inline">In awarding
grants under this title, the Secretary shall give priority to States—</text>
<paragraph commented="no" id="HA4BFE45533784D7D86F7BD6D8BE99A97"><enum>(1)</enum><text display-inline="yes-display-inline">whose applications contain assurances that
the State will use, in part, funds reserved under section 658G of the Child
Care and Development Block Grant Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/9858e">42 U.S.C. 9858e</external-xref>) for activities
described in section 403(f); and</text>
</paragraph><paragraph id="H16AFC8F9CCF94E42A074F2B9B4591CAC"><enum>(2)</enum><text display-inline="yes-display-inline">that demonstrate efforts to build
public-private partnerships designed to accomplish the purposes of this
title.</text>
</paragraph></subsection><subsection id="H8392ACA33BA0493B943D1FB02A0ECD6F"><enum>(f)</enum><header>Maintenance of
effort</header>
<paragraph id="H84D20B98759B438EBC1A461F5822542D"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">With respect to each
period for which a State is awarded a grant under this title, the aggregate
expenditures by the State and its political subdivisions on early learning
programs and services shall be not less than the level of the expenditures for
such programs and services by the State and its political subdivisions for
fiscal year 2006.</text>
</paragraph><paragraph id="H512671489E834B6C8BD1C2064303BB2A"><enum>(2)</enum><header>State
expenditures</header><text>For purposes of paragraph (1), expenditures by the
State on early learning programs and services shall include, at a minimum, the
following:</text>
<subparagraph id="H8465DEF804D94EBF8437AAA6443F0C07"><enum>(A)</enum><text display-inline="yes-display-inline">State matching and maintenance of effort
funds for the Child Care and Development Block Grant Act of 1990
(<external-xref legal-doc="usc" parsable-cite="usc/42/9858">42 U.S.C. 9858 et
seq.</external-xref>).</text>
</subparagraph><subparagraph id="HB780F75E79B84DE7B885E5EB2B84793E"><enum>(B)</enum><text display-inline="yes-display-inline">State matching funds for the State Advisory
Council on Early Childhood Education and Care (established pursuant to section
642B(b)(1)(A) of the Head Start Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9837b">42 U.S.C. 9837b(b)(1)(A)</external-xref>)).</text>
</subparagraph><subparagraph id="H0B7D579A4F3C468AA5EE9A6E98B1B6A4"><enum>(C)</enum><text>State expenditures
on public pre-kindergarten, Head Start (including Early Head Start), and other
State early learning programs and services dedicated to children (including
State expenditures under part C of the Individuals with Disabilities Education
Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1431">20 U.S.C. 1431
et seq.</external-xref>)).</text>
</subparagraph></paragraph></subsection><subsection id="H71409A88EC964F50815C48085D738A55"><enum>(g)</enum><header>Prohibitions on
use of funds</header><text>Funds under this title may not be used for any of
the following:</text>
<paragraph id="H6E56878B59D34A998CABBDE2E964E4DB"><enum>(1)</enum><text>Assessments that
provide rewards or sanctions for individual children or teachers.</text>
</paragraph><paragraph id="HD3EE0D7396E84AF29C422857D1F51C42"><enum>(2)</enum><text display-inline="yes-display-inline">A single assessment used as the primary or
sole method for assessing program effectiveness.</text>
</paragraph><paragraph id="H5F6D44581D8442AAB350D52AAACEFF4A"><enum>(3)</enum><text display-inline="yes-display-inline">Evaluating children other than for—</text>
<subparagraph id="H16D3A420EC454C3C983EA8B9242E40C0"><enum>(A)</enum><text>improving
instruction or classroom environment;</text>
</subparagraph><subparagraph id="HB0C44B7720E3474FB74D4B2A0BBA4028"><enum>(B)</enum><text>targeting
professional development;</text>
</subparagraph><subparagraph id="HEBE9454FC7CE494C9ABE935F45906063"><enum>(C)</enum><text>determining the
need for health, mental health, disability, or family support services;</text>
</subparagraph><subparagraph id="HC26A6961CE0D41B9A9DB613CE515923E"><enum>(D)</enum><text>informing the
quality improvement process at the State level;</text>
</subparagraph><subparagraph id="H5E320E91F73247E9BDBDCC6D9C65198D"><enum>(E)</enum><text>program evaluation
for the purposes of program improvement and parent information; or</text>
</subparagraph><subparagraph id="H948F64A78CB64BADB7FB940F44D4DE07"><enum>(F)</enum><text>research conducted
as part of the national evaluation required by section 405(2).</text>
</subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="HAF2E4EB7785E4FF48150202FAE31722E"><enum>(h)</enum><header>Federal
administration</header>
<paragraph id="HE4CA0BD46DF34D13AFC2680BAE9B3E45"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">With respect to this
title, the Secretary shall bear responsibility for obligating and disbursing
funds and ensuring compliance with applicable laws and administrative
requirements, subject to paragraph (2).</text>
</paragraph><paragraph id="HD68DD37289834A8DA41A5317E8713A47"><enum>(2)</enum><header>Interagency
agreement</header><text display-inline="yes-display-inline">The Secretary of
Education and the Secretary of Health and Human Services shall jointly
administer this title on such terms as such secretaries shall set forth in an
interagency agreement.</text>
</paragraph></subsection></section><section id="H11736DAF51C74FD9A5A28CF1DF1119A9"><enum>403.</enum><header>Quality
pathways grants</header>
<subsection id="H8F251708E62F4F7D8FFB1BD1BD06E95B"><enum>(a)</enum><header>Grant
period</header><text display-inline="yes-display-inline">Grants under section
402(a)—</text>
<paragraph id="H34884C5BA93940FCAD51FDD5C76D5F50"><enum>(1)</enum><text>may be awarded for
a period not to exceed 5 years; and</text>
</paragraph><paragraph id="HC02E8741A8764433B62564C0A214B171"><enum>(2)</enum><text>may be renewed,
subject to approval by the Secretary, and based on the State’s progress
in—</text>
<subparagraph id="HF7B333D4DE9E4948BC34474FD7744134"><enum>(A)</enum><text>increasing the
percentage of disadvantaged children in each age group (infants, toddlers, and
preschoolers) who participate in high-quality early learning programs;</text>
</subparagraph><subparagraph id="HFBF8D52F19A841D99F33F680A62E361B"><enum>(B)</enum><text>increasing the
number of high-quality early learning programs in low-income
communities;</text>
</subparagraph><subparagraph id="H4DBA0B12ABD646B8AF920CCE1E114C37"><enum>(C)</enum><text>implementing an
early learning system that includes the components described in subsection
(c)(3);</text>
</subparagraph><subparagraph id="H73259136773E4364A82EF26C5E7EE13B"><enum>(D)</enum><text display-inline="yes-display-inline">incorporating the findings and
recommendations reported by the commission established under section 405(1)
into the State system of early learning; and</text>
</subparagraph><subparagraph id="H59E8475718474045A3F649E60DC73EC8"><enum>(E)</enum><text>committing State
resources for supporting early learning programs and services.</text>
</subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="H43C06F2E9E244E6F8384D0DF461B9B19"><enum>(b)</enum><header>Matching
requirement</header>
<paragraph id="H392C39523EBF48FF94FE1ED4B613257D"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subject to subsection
(g), to be eligible to receive a grant under section 402(a), a State shall
contribute to the activities assisted under the grant non-Federal matching
funds in an amount equal to not less than the applicable percent of the amount
of the grant.</text>
</paragraph><paragraph id="H0AD010D0891F489AAD42FD7D2948F51B"><enum>(2)</enum><header>Applicable
percent</header><text>For purposes of paragraph (1), the applicable percent
means—</text>
<subparagraph id="HD076D7ECA44E45A4B5B4ED749075E7F3"><enum>(A)</enum><text>10 percent in the
first fiscal year of the grant;</text>
</subparagraph><subparagraph id="HB53C78264ED14C49B847A6A366EF1AFB"><enum>(B)</enum><text>10 percent in the
second fiscal year of the grant;</text>
</subparagraph><subparagraph id="H89E4EC903ECC4E9DA8C3D51345E106C2"><enum>(C)</enum><text>15 percent in the
third fiscal year of the grant; and</text>
</subparagraph><subparagraph id="HD6051C70F8B44A64A048CC650BBA85A2"><enum>(D)</enum><text>20 percent in the
fourth fiscal year of the grant and subsequent fiscal years.</text>
</subparagraph></paragraph><paragraph id="H6A8186C3116446CA8CD8385067C76B4C"><enum>(3)</enum><header>Non-Federal
funds</header><text display-inline="yes-display-inline">A State may use the
following to satisfy the requirement of paragraph (1):</text>
<subparagraph id="HD5460EAD723F425CB0339AEEE742151A"><enum>(A)</enum><text display-inline="yes-display-inline">Cash.</text>
</subparagraph><subparagraph id="H696F36BF4B654FAEA2C8D9ADECD13241"><enum>(B)</enum><text>In-kind
contributions for the acquisition, construction, or improvement of early
learning program facilities serving disadvantaged children.</text>
</subparagraph><subparagraph id="H5E625E32988D430383201277FA6B3B3A"><enum>(C)</enum><text>Technical
assistance related to subparagraph (B).</text>
</subparagraph></paragraph><paragraph id="H2D409C2D2E544B7F862197053A91A2E6"><enum>(4)</enum><header>Private
contributions</header><text display-inline="yes-display-inline">Private
contributions made as part of public-private partnerships to increase the
number of low-income children in high-quality early learning programs in a
State may be used by the State to satisfy the requirement of paragraph
(1).</text>
</paragraph><paragraph id="H7067E4C082D443B2B059DAEA67A7417D"><enum>(5)</enum><header>Financial
hardship waiver</header><text display-inline="yes-display-inline">The Secretary
may waive or reduce the non-Federal share of a State that has submitted an
application for a grant under section 402(a) if the State demonstrates a need
for such waiver or reduction due to extreme financial hardship, as defined by
the Secretary by regulation.</text>
</paragraph></subsection><subsection id="H740D9681F8FD4BF880F4B9A0BD6BEF90"><enum>(c)</enum><header>State
applications</header><text>In order to be considered for a grant under section
402(a), a State’s application under section 402(d) shall include the
following:</text>
<paragraph id="HAECD68061D8B4B7D98467ED025AAB345"><enum>(1)</enum><text>A
description of how the State will use the grant to implement quality
initiatives to improve early learning programs serving disadvantaged children
from birth to age 5 to lead to a greater percentage of such children
participating in higher quality early learning programs.</text>
</paragraph><paragraph id="HC172F02940914803A2C2B4CD909FDC17"><enum>(2)</enum><text>A
description of the goals and benchmarks the State will establish to lead to a
greater percentage of disadvantaged children participating in higher quality
early learning programs to improve school readiness outcomes, including an
established baseline of the number of disadvantaged children in high-quality
early learning programs.</text>
</paragraph><paragraph id="HCB21CEA4377242B587C0A81E44F9D3F9"><enum>(3)</enum><text display-inline="yes-display-inline">A description of how the State will
implement a governance structure and a system of early learning programs and
services that includes the following components:</text>
<subparagraph id="HC446195DC83A453AAA9F21D667E62DDF"><enum>(A)</enum><text display-inline="yes-display-inline">Not later than 12 months after receiving
notice of an award of the grant, complete State early learning and development
standards that include social and emotional, cognitive, and physical
development domains, and approaches to learning that are developmentally
appropriate (including culturally and linguistically appropriate) for all
children.</text>
</subparagraph><subparagraph id="H2A3FE8DD2CFF4E48AF3EE4078595090B"><enum>(B)</enum><text>A process to
ensure that State early learning and development standards are integrated into
the instructional and programmatic practices of early learning programs and
services, including services provided to children under section 619 and part C
of the Individuals with Disabilities Education Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1419">20 U.S.C. 1419</external-xref>,
1431 et seq.).</text>
</subparagraph><subparagraph id="H027CEE26F44F45C4AFE6EA4499FFF137"><enum>(C)</enum><text display-inline="yes-display-inline">A program rating system that builds on
licensing requirements and other State regulatory standards, as appropriate,
and that—</text>
<clause id="H7426AB4625B64A5BA62CF3B9BB23AFA5"><enum>(i)</enum><text>is
designed to improve quality and effectiveness across different types of early
learning settings;</text>
</clause><clause id="H5135776E44454431BDA9A72E7F8B06CD"><enum>(ii)</enum><text>integrates
evidence-based program quality standards that reflect standard levels of
quality and has progressively higher levels of program quality;</text>
</clause><clause id="HFB9FD69D2E864780883F60BEC3079C65"><enum>(iii)</enum><text>integrates the
State’s early learning and development standards for the purpose of improving
instructional and programmatic practices;</text>
</clause><clause id="H0CF7E69982694D48A49C7C6F357F15BC"><enum>(iv)</enum><text display-inline="yes-display-inline">addresses quality and effective inclusion
of children with disabilities or developmental delays across different types of
early learning settings;</text>
</clause><clause id="H81BD6EF824914D52B1B7AF8A763A8534"><enum>(v)</enum><text>addresses staff
qualifications and professional development;</text>
</clause><clause id="H84EAB1538715495D8186BAD28B31B912"><enum>(vi)</enum><text>provides
financial incentives and other supports to help programs meet and sustain
higher levels of quality;</text>
</clause><clause id="HCA5BEF193D5044DCA7C6549F024026F9"><enum>(vii)</enum><text>includes
mechanisms for evaluating how programs are meeting those standards and
progressively higher levels of quality; and</text>
</clause><clause id="H11677E74DCA044309E4B198CF5C9D890"><enum>(viii)</enum><text>includes a
mechanism for public awareness and understanding of the program rating system,
including the rating levels of individual programs.</text>
</clause></subparagraph><subparagraph id="H6995874C3EBA4C43A76822E59819780E"><enum>(D)</enum><text display-inline="yes-display-inline">A system of program review and monitoring
that is designed to rate early learning programs using the system described in
subparagraph (C) and to assess and improve programmatic practices,
instructional practices, and classroom environment.</text>
</subparagraph><subparagraph id="H7D9EB954001943F9B60AB069CFBBC01B"><enum>(E)</enum><text display-inline="yes-display-inline">A process to support early learning
programs integrating instructional and programmatic practices that—</text>
<clause id="H865F87B86555462F883F03E4C929041C"><enum>(i)</enum><text>include
developmentally appropriate (including culturally and linguistically
appropriate), ongoing, classroom-based instructional assessments for each
domain of child development and learning (including social and emotional,
cognitive, and physical development domains and approaches to learning) to
guide and improve instructional practice, professional development of staff,
and services; and</text>
</clause><clause id="H3C2A1C3A9CB841E18FB88CE70520401E"><enum>(ii)</enum><text>are
aligned with the curricula used in the early learning program and with the
State early learning and development standards or the Head Start Child Outcomes
Framework (as described in the Head Start Act), as applicable.</text>
</clause></subparagraph><subparagraph id="H38D26892368C46FD875731E2599675ED"><enum>(F)</enum><text>Minimum preservice
early childhood development and education training requirements for providers
in early learning programs.</text>
</subparagraph><subparagraph id="H9E2A3B8CEA2448AF95F63FF65B83EF8E"><enum>(G)</enum><text>A comprehensive
plan for supporting the professional preparation and the ongoing professional
development of an effective, well-compensated early learning workforce, which
plan includes training and education that is sustained, intensive, and
classroom-focused and leads toward a credential or degree and is tied to
improved compensation.</text>
</subparagraph><subparagraph id="HF5FA1D0569684A24A9B2C5D40D68D0AA"><enum>(H)</enum><text>An outreach
strategy to promote understanding by parents and families of—</text>
<clause id="H5D9ABAC0AC2C43CE910E8484B4E4B143"><enum>(i)</enum><text>how
to support their child’s early development and learning;</text>
</clause><clause id="H0BA68C2DF78341DB8AE76C33790DFBE8"><enum>(ii)</enum><text>the
State’s program rating system, as described in subparagraph (C); and</text>
</clause><clause commented="no" id="H4C5A371E780D427BAFCD3BE28116DAE1"><enum>(iii)</enum><text>the rating of
the early learning program in which their child is enrolled.</text>
</clause></subparagraph><subparagraph id="H64C5F9F74F1F4D7A9E4645C2606B1C2D"><enum>(I)</enum><text display-inline="yes-display-inline">A coordinated system to facilitate
screening, referral, and provision of services related to health, mental
health, dental, developmental delay and disability, and family support for
children participating in early learning programs.</text>
</subparagraph><subparagraph id="H96FDDB7215FF4D7BA64570E25ACD7D05"><enum>(J)</enum><text>A process for
evaluating school readiness in children that reflects all of the major domains
of development, and that is used to guide practice and improve early learning
programs.</text>
</subparagraph><subparagraph id="H45447E57601545029C49CCE648963F4E"><enum>(K)</enum><text>A coordinated data
infrastructure that facilitates—</text>
<clause id="HDC54305DC31448B98E7D6F3A70B4482F"><enum>(i)</enum><text>uniform data
collection about the quality of early learning programs, essential information
about the children and families that participate in such programs, and the
qualifications and compensation of the early learning workforce in such
programs; and</text>
</clause><clause id="HA36C5D2432C44DF593D95B671D384EF9"><enum>(ii)</enum><text>alignment and
interoperability between the data system for early learning programs for
children and data systems for elementary and secondary education.</text>
</clause></subparagraph></paragraph><paragraph id="H28D7431AE6234CB4B8A11411CB8DAFDC"><enum>(4)</enum><text display-inline="yes-display-inline">A description of how the funds provided
under the grant will be targeted to prioritize increasing the number and
percentage of low-income children in high-quality early learning programs,
including children—</text>
<subparagraph id="H83CBE345379E4EF7B5397BA955C1BCDF"><enum>(A)</enum><text>in each age group
(infants, toddlers, and preschoolers);</text>
</subparagraph><subparagraph id="H1E78AABAF1F649FB9BD6D5C1804F4CAA"><enum>(B)</enum><text>with developmental
delays and disabilities;</text>
</subparagraph><subparagraph id="HF4F0FA5EA3904264939F15A6B5E8197A"><enum>(C)</enum><text>with limited
English proficiency; and</text>
</subparagraph><subparagraph id="H6099C25EC0C74B6E9070F28101680110"><enum>(D)</enum><text>living in rural
areas.</text>
</subparagraph></paragraph><paragraph id="H9438DAF1595B4E6E8BC8AB1C34BFBDA4"><enum>(5)</enum><text>An assurance that
the grant will be used to improve the quality of early learning programs across
a range of types of settings and providers of such programs.</text>
</paragraph><paragraph id="H4A4309082B3A490F896980526E6A30C8"><enum>(6)</enum><text display-inline="yes-display-inline">A description of the steps the State will
take to make progress toward including all center-based child care programs,
family child care programs, State-funded prekindergarten, Head Start programs,
and other early learning programs, such as those funded under title I of the
Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/6301">20 U.S.C. 6301 et seq.</external-xref>) or
receiving funds under section 619 or part C of the Individuals with
Disabilities Education Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1419">20 U.S.C. 1419</external-xref>, 1431 et seq.) in
the State program rating system described in paragraph (3)(C).</text>
</paragraph><paragraph id="HA4E3BA5E022F44259771075471EBC3B5"><enum>(7)</enum><text display-inline="yes-display-inline">An assurance that the State, not later than
18 months after receiving notice of an award of the grant, will conduct an
analysis of the alignment of the State’s early learning and development
standards with—</text>
<subparagraph id="HD55CE1F3A2B3454F9143370001B0E5BD"><enum>(A)</enum><text>appropriate
academic content standards for grades kindergarten through 3; and</text>
</subparagraph><subparagraph id="H7DAB57A6D4DC4200810802E9AAF9A07F"><enum>(B)</enum><text>elements of
program quality standards for early learning programs.</text>
</subparagraph></paragraph><paragraph id="HD4887231B7F448D8B1AD2994EC732D22"><enum>(8)</enum><text>An assurance that
the grant will be used only to supplement, and not to supplant, Federal, State,
and local funds otherwise available to support existing early learning programs
and services.</text>
</paragraph><paragraph id="HDE67CF3920EB45D09631937BC4A25B56"><enum>(9)</enum><text>A
description of any disparity by age group (infants, toddlers, and preschoolers)
of available high-quality early learning programs in low-income communities and
the steps the State will take to decrease such disparity, if applicable.</text>
</paragraph><paragraph id="H1210557DC5ED43CFA91B2F7CDA210ED2"><enum>(10)</enum><text>A description of
how the State early learning and development standards will address the needs
of children with limited English proficiency, including by incorporating
benchmarks related to English language development.</text>
</paragraph><paragraph id="H06BF406FF7D34E25A626E64FAD8EA047"><enum>(11)</enum><text>A description of
how the State’s professional development plan will prepare the early learning
workforce to support the early learning needs of children with limited English
proficiency.</text>
</paragraph><paragraph id="HFE99C31E0F1F4A1DA96626D492268DDF"><enum>(12)</enum><text display-inline="yes-display-inline">A description of how the State will improve
interagency collaboration and coordinate the purposes of this title with the
activities funded under—</text>
<subparagraph id="HE4E2B1054FF94EF4BF806BAB424CAB00"><enum>(A)</enum><text>section 658G of
the Child Care and Development Block Grant Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/9858e">42 U.S.C.
9858e</external-xref>);</text>
</subparagraph><subparagraph id="H6F0B83079BD647E2B2C70B870EDAEE2D"><enum>(B)</enum><text display-inline="yes-display-inline">section 619 and part C of the Individuals
with Disabilities Education Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1419">20 U.S.C. 1419</external-xref>, 1431 et
seq.);</text>
</subparagraph><subparagraph id="H233FBC62828545819FD1F5F651965792"><enum>(C)</enum><text>title I of the
Elementary and Secondary Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/6301">20 U.S.C. 6301 et seq.</external-xref>);</text>
</subparagraph><subparagraph id="H7B8E20945781488C8D72FAC2A2299466"><enum>(D)</enum><text display-inline="yes-display-inline">State-funded pre-kindergarten programs
(where applicable);</text>
</subparagraph><subparagraph id="H1208B25545EE44CD8D30536612068268"><enum>(E)</enum><text>Head Start
programs; and</text>
</subparagraph><subparagraph id="H8BBEAA7780C04C70BA12F191EF1F2EFE"><enum>(F)</enum><text>other early
childhood programs and services.</text>
</subparagraph></paragraph><paragraph id="H447B104CC3F444B2819C53596900D7D1"><enum>(13)</enum><text display-inline="yes-display-inline">A description of how the State’s early
learning policies, including child care policies, facilitate access to
high-quality early learning programs for children from low-income
families.</text>
</paragraph><paragraph id="H2AAA48A2CB3C4E278CB7E65859E8C2D3"><enum>(14)</enum><text>A description of
how the State will implement a process for improving the quality of early
learning services to better meet the needs of children who have experienced
abuse or neglect, been exposed to violence, toxic stress, parental substance
abuse, mental illness, or homelessness, or have had early behavioral and peer
relationship problems, including addressing appropriate professional
development, programmatic practices, classroom environment, and outreach and
support to meet the needs of such children.</text>
</paragraph><paragraph id="H5FBB01DCC70B476DAA301DDEFBCFD5C2"><enum>(15)</enum><text>A description of
any disparity by geographic area (urban and rural) of available high-quality
early learning programs for low-income children and the steps the State will
take to decrease such disparity, if applicable.</text>
</paragraph><paragraph id="H85172967A95B4724847FB58044ADA5D2"><enum>(16)</enum><text>An assurance that
the State will continue to participate in part C of the Individuals with
Disabilities Education Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1431">20 U.S.C. 1431 et seq.</external-xref>) for the
duration of the grant.</text>
</paragraph></subsection><subsection id="HB8EF5D7DA0D340CFB1C951D2670DFB2B"><enum>(d)</enum><header>Criteria used in
awarding grants</header><text display-inline="yes-display-inline">In awarding
grants under section 402(a), the Secretary shall evaluate the applications, and
award grants under such section on a competitive basis, based on—</text>
<paragraph id="H46168C7433574DEA80B5C155278BB8E8"><enum>(1)</enum><text>the quality of the
application submitted pursuant to section 402(d);</text>
</paragraph><paragraph id="H35D0AC1DDF0C4F2F8E0A84BE50759A62"><enum>(2)</enum><text display-inline="yes-display-inline">the priority factors described in section
402(e);</text>
</paragraph><paragraph id="H503B9FC818F641B4B2A974450D78AF53"><enum>(3)</enum><text>evidence of
significant progress in establishing a system of early learning for children
that includes the components described in subsection (c)(3); and</text>
</paragraph><paragraph id="HA0B331522A85454D9A06850D559C49F0"><enum>(4)</enum><text>the State’s
capacity to fully complete implementation of such a system.</text>
</paragraph></subsection><subsection id="HFEB32A668C67486DB2762F4EEF07C910"><enum>(e)</enum><header>Criterion used
in determining amount of award</header><text display-inline="yes-display-inline">In determining the amount to award a State
under section 402(a), the Secretary shall take into account—</text>
<paragraph id="H6CFE173AF076492594AC6D9D0CD25D68"><enum>(1)</enum><text>the proportion of
children under age 5 from low-income families in the State relative to such
proportion in other States; and</text>
</paragraph><paragraph id="H27BBBA5B84984C5282B2932A70677494"><enum>(2)</enum><text>the State plan and
capacity to implement the criteria described in paragraphs (3) and (4) of
subsection (d).</text>
</paragraph></subsection><subsection id="HDFBA08E3B0FA45DBA1BB53152F9C9EAB"><enum>(f)</enum><header>State uses of
funds</header>
<paragraph id="H989AC5AE9A514B8DABEA0138ACC9D6AC"><enum>(1)</enum><header>In
general</header><text>A State receiving a grant under
<internal-xref idref="HF25D7080F18B491A994D3C110EC283BF" legis-path="402.(a)">section 402(a)</internal-xref> shall use the grant as
follows:</text>
<subparagraph id="HE4BA36C758E44953A4CC168720E11674"><enum>(A)</enum><text display-inline="yes-display-inline">Not less than 65 percent of the grant
amount shall be used for two or more of the following activities to improve the
quality of early learning programs serving disadvantaged children:</text>
<clause id="H6C7E357E25824AEDAFA18D888917BDC6"><enum>(i)</enum><text>Initiatives that
improve the credentials of early learning providers and are tied to increased
compensation.</text>
</clause><clause id="H6A4948C5CB794B3E838E8D45C95078C5"><enum>(ii)</enum><text>Initiatives that
help early learning programs meet and sustain higher program quality standards,
such as—</text>
<subclause id="H184BDB980B1A49CBB31384E90C137C2E"><enum>(I)</enum><text>improving the
ratio of early learning provider to children in early learning settings;</text>
</subclause><subclause id="HCDA8894AEF71433CAD2B12AE7AB4E8B1"><enum>(II)</enum><text>reducing group
size;</text>
</subclause><subclause id="HF78BC769F82F46988D42A791A6F050BA"><enum>(III)</enum><text>improving the
qualifications of early learning providers; and</text>
</subclause><subclause id="HAA0EC2EE1D00482EBD6FAE436048A439"><enum>(IV)</enum><text display-inline="yes-display-inline">supporting effective education and training
for early learning providers (which may include establishing or supporting
partnerships with institutions of higher education (as such term is defined in
section 101 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001</external-xref>) to support such
education and training).</text>
</subclause></clause><clause id="H55A7F822FBC8499F8A5EA3E4144A93B6"><enum>(iii)</enum><text display-inline="yes-display-inline">Implementing classroom observation
assessments and data-driven decisions (which may include implementation of a
research-based prevention and intervention framework designed to build social
competence and prevent challenging behaviors) tied to activities that improve
instructional practices, programmatic practices, or classroom environment and
promote school readiness.</text>
</clause><clause id="H71189A0E02C440A0AC2057DB60B987B1"><enum>(iv)</enum><text>Providing
financial incentives to early learning programs—</text>
<subclause id="H6D8E1C025B24486F8216256B87934279"><enum>(I)</enum><text>for undertaking
quality improvements that promote healthy development and school readiness;
and</text>
</subclause><subclause id="HCBFF311285F44AFC829DB80A1EE6F5F7"><enum>(II)</enum><text>maintaining
quality improvements that promote healthy development and school
readiness.</text>
</subclause></clause><clause id="HEFE8B64A9D6441D8B6BB512A17F57559"><enum>(v)</enum><text>Integrating State
early learning and development standards into instructional and programmatic
practices in early learning programs.</text>
</clause><clause id="H95E92468DD5E4C8E9165CB4DF644D5D6"><enum>(vi)</enum><text>Providing
high-quality, sustained, intensive, and classroom-focused professional
development that improves the knowledge and skills of early learning providers,
including professional development related to meeting the needs of diverse
populations.</text>
</clause><clause id="HEF7500B3D8484605B4345369EA1D6371"><enum>(vii)</enum><text>Building the
capacity of early learning programs and communities to promote the
understanding of parents and families of the State’s early learning system and
the rating of the early learning program in which their child is enrolled and
to encourage the active involvement and engagement of parents and families in
the learning and development of their children.</text>
</clause><clause id="H3E6767FF1E934B9BBD32F7E08254720B"><enum>(viii)</enum><text display-inline="yes-display-inline">Building the capacity of early learning
programs and communities to facilitate screening, referral, and provision of
services related to health, mental health, dental, developmental delay and
disability, and family support for children participating in early learning
programs.</text>
</clause><clause id="H10C06E3C08D048929B2DB79AFECC13B2"><enum>(ix)</enum><text>Other innovative
activities, proposed by the State and approved in advance by the Secretary that
are—</text>
<subclause id="H8AC5D620D529438FA3B4ADC14E8418DF"><enum>(I)</enum><text>based on
successful practices;</text>
</subclause><subclause id="H3E568F7A8DE14B75AFA3DCAE4435CAE3"><enum>(II)</enum><text>designed to
improve the quality of early learning programs and services; and</text>
</subclause><subclause id="H455E269B5E23487B88B44E0E50508F0D"><enum>(III)</enum><text>advance the
system components described in subsection (c)(3).</text>
</subclause></clause></subparagraph><subparagraph id="HF3BA74EC8095436CA39954D288AA1CF1"><enum>(B)</enum><text display-inline="yes-display-inline">The remainder of the grant amount may be
used for one or more of the following:</text>
<clause id="H62C7F8A081164E61B90DF5B11056FEE2"><enum>(i)</enum><text>Implementation or
enhancement of the State’s data system described in subsection (c)(3)(K),
including interoperability across agencies serving children, and unique child
and program identifiers.</text>
</clause><clause id="H8E3510E854B14D7588CD0CA6C8031514"><enum>(ii)</enum><text>Enhancement of
the State’s oversight system for early learning programs, including the
implementation of a program rating system.</text>
</clause><clause id="H0EF700B0D215421591354E269A68E569"><enum>(iii)</enum><text>The development
and implementation of measures of school readiness of children that reflect all
of the major domains of child development and that inform the quality
improvement process.</text>
</clause></subparagraph></paragraph><paragraph id="H2EAC10D90F4C49F9AFCEB3FB6EB15F1B"><enum>(2)</enum><header>Priority</header><text display-inline="yes-display-inline">A State receiving a grant under section
402(a) shall use the grant so as to prioritize improving the quality of early
learning programs serving children from low-income families.</text>
</paragraph></subsection><subsection id="H37EC3398F4A04A91A801AD227478E8CC"><enum>(g)</enum><header>Special
rule</header>
<paragraph id="HFDE33E176F11492E9D602F28D5540DC8"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Beginning with the
second fiscal year of a grant under section 402(a), a State with respect to
which the Secretary certifies that the State has made sufficient progress in
implementing the requirements of the grant may apply to the Secretary to
reserve up to 25 percent of the amount of the grant to expand access for
children from low-income families to the highest quality early learning
programs that offer full-day services (or, if the State can demonstrate that it
is already meeting the needs of such children in such manner, the State may
apply to expand access for disadvantaged children in such manner and the
State's application may not be adversely treated due to such request), except
that the State must agree to contribute for such purpose non-Federal matching
funds in an amount equal to not less than 20 percent of the amount reserved
under this subsection. One-half of such non-Federal matching funds may be
provided by a private entity.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H3476F89D1FBD472487CC73DB88661875"><enum>(2)</enum><header>Non-Federal
funds</header><text display-inline="yes-display-inline">A State may use the
following to satisfy the matching requirement of paragraph (1):</text>
<subparagraph id="H1ED6E12C62E14844BBEE3597F4347145"><enum>(A)</enum><text display-inline="yes-display-inline">Cash.</text>
</subparagraph><subparagraph id="H13DA7DF5D6EB44A18C93681C281A6BC6"><enum>(B)</enum><text>In-kind
contributions for the acquisition, construction, or improvement of early
learning program facilities serving disadvantaged children.</text>
</subparagraph><subparagraph id="H2699806D80EB4DC4A3B8843F1FC02708"><enum>(C)</enum><text>Technical
assistance related to subparagraph (B).</text>
</subparagraph></paragraph><paragraph id="HF652D900A53F4AA4854C86D87F049F60"><enum>(3)</enum><header>Financial
hardship waiver</header><text display-inline="yes-display-inline">The Secretary
may waive or reduce the non-Federal share of a State under paragraph (1) if the
State demonstrates a need for such waiver or reduction due to extreme financial
hardship, as defined by the Secretary by regulation.</text>
</paragraph></subsection><subsection id="HA958BDD3F1224212A49F4BB6246D4D42"><enum>(h)</enum><header>Improvement
plan</header><text>If the Secretary determines that a State receiving a grant
under section 402(a) is encountering barriers to reaching goals described in
subsection (c)(2), the State shall develop a plan for improvement in
consultation with, and subject to approval by, the Secretary.</text>
</subsection></section><section id="H819FD5300E7E48C188983BD1FDC5967F"><enum>404.</enum><header>Development
grants</header>
<subsection id="HBBDF669A61944AE48003D81F325B9D2C"><enum>(a)</enum><header>Grant
period</header><text display-inline="yes-display-inline">Grants under section
402(b) may be awarded for a period not to exceed 3 years, and may not be
renewed.</text>
</subsection><subsection commented="no" id="H51559841349F46AD9C65B15FA0863F3E"><enum>(b)</enum><header>State uses of
funds</header>
<paragraph id="H293AF3618AB14CEF9FE307DA070B9BCB"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">A State receiving a
grant under section 402(b) shall use the grant to undertake activities that
develop the early learning system components described in section 403(c)(3) and
that will improve a State’s competitiveness for a grant described in section
402(a).</text>
</paragraph><paragraph id="H84FCD7086D4D46B28494CFE7E2721AAB"><enum>(2)</enum><header>Priority</header><text display-inline="yes-display-inline">A State receiving a grant under section
402(b) shall use the grant so as to prioritize improving the quality of early
learning programs serving low-income children.</text>
</paragraph></subsection><subsection id="H883EAA9445A74BF9A12EADE49559CB59"><enum>(c)</enum><header>Matching
requirement</header>
<paragraph id="H03319AE6848A48E2B4D64F4E48A78F28"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">To be eligible to
receive a grant under section 402(b), a State shall contribute to the
activities assisted under the grant non-Federal matching funds in an amount
equal to not less than the applicable percent of the amount of the
grant.</text>
</paragraph><paragraph id="H8F532925433140FE9427316454D1B8A5"><enum>(2)</enum><header>Applicable
percent</header><text>For purposes of paragraph (1), the applicable percent
means—</text>
<subparagraph id="H0CB064377B3549B394D65292821C3CEA"><enum>(A)</enum><text>20 percent in the
first fiscal year of the grant;</text>
</subparagraph><subparagraph id="H87FAD508209648D9932AEE12E87BBBFF"><enum>(B)</enum><text>25 percent in the
second fiscal year of the grant; and</text>
</subparagraph><subparagraph id="H230FAF1683EC4B9DA47A60CF23B2945C"><enum>(C)</enum><text>30 percent in the
third fiscal year of the grant.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HAFFA0FBE515E485E8EBADD42908B9416"><enum>(3)</enum><header>Non-Federal
funds</header><text display-inline="yes-display-inline">A State may use the
following to satisfy the requirement of paragraph (1):</text>
<subparagraph id="H47B9BC6DC0C945EA8F93E9DF30CF4F70"><enum>(A)</enum><text display-inline="yes-display-inline">Cash.</text>
</subparagraph><subparagraph id="HCE4A2277E1DA49C1B77404BB4D156960"><enum>(B)</enum><text>In-kind
contributions for the acquisition, construction, or improvement of early
learning program facilities serving disadvantaged children.</text>
</subparagraph><subparagraph id="HFFAE6B102A054D61880C4AA6D80A6FA6"><enum>(C)</enum><text>Technical
assistance related to subparagraph (B).</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H935287EF39EF4E3BADC6DD771DB469AF"><enum>(4)</enum><header>Private
contributions</header><text display-inline="yes-display-inline">Private
contributions made as part of public-private partnerships to increase the
number of low-income children in high-quality early learning programs in a
State may be used by the State to satisfy the requirement of paragraph
(1).</text>
</paragraph><paragraph id="HFEBDE7BDA7334FA8BE85923FBDD557FD"><enum>(5)</enum><header>Financial
hardship waiver</header><text display-inline="yes-display-inline">The Secretary
may waive or reduce the non-Federal share of a State that has submitted an
application for a grant under section 402(b) if the State demonstrates a need
for such waiver or reduction due to extreme financial hardship, as defined by
the Secretary by regulation.</text>
</paragraph></subsection></section><section id="HC87B36C92E47417190947D834DE112F0"><enum>405.</enum><header>Research and
evaluation</header><text display-inline="no-display-inline">From funds reserved
under
<internal-xref idref="H8CA33C27A0194F499C577F228D808104" legis-path="402.(c)(1)">section 402(c)(1)</internal-xref>, the Secretary of
Education and the Secretary of Health and Human Services, acting jointly, shall
carry out the following activities:</text>
<paragraph id="HB55D218E11C042169F8DA760F32160B4"><enum>(1)</enum><text>Establishing a
national commission whose duties shall include—</text>
<subparagraph id="H0DB390B39EF44AE1A018C566C24E732D"><enum>(A)</enum><text>reviewing the
status of State and Federal early learning program quality standards and early
learning and development standards;</text>
</subparagraph><subparagraph id="H11FD1E5DB3334CDC9F2A5B22636CD230"><enum>(B)</enum><text display-inline="yes-display-inline">recommending benchmarks for program quality
standards and early learning and development standards, including taking into
consideration the school readiness needs of children with limited English
proficiency; and</text>
</subparagraph><subparagraph id="H9EC69EF0F40B4D03A4715574A946A935"><enum>(C)</enum><text>reporting to the
Secretaries of Education and Health and Human Services not later than 2 years
after the date of the enactment of this Act on the commission’s findings and
recommendations.</text>
</subparagraph></paragraph><paragraph id="HE999CC87FABC4325ACE94B44FC4AACD8"><enum>(2)</enum><text>Conducting a
national evaluation of the grants made under this title through the Institute
of Education Science in collaboration with the appropriate research divisions
within the Department of Health and Human Services.</text>
</paragraph><paragraph id="H8F7ED616A1154B32B276D6079AFBBE6A"><enum>(3)</enum><text>Supporting a
research collaborative among the Institute of Education Sciences, the National
Institute of Child Health and Human Development, the Office of Planning,
Research, and Evaluation within the Administration for Children and Families in
the Department of Health and Human Services, and, as appropriate, other Federal
entities to support research on early learning that can inform improved State
and other standards and licensing requirements and improved child outcomes,
which collaborative shall—</text>
<subparagraph id="HEE7A03C0E3E94D5189F9D8F574752921"><enum>(A)</enum><text>biennially prepare
and publish for public comment a detailed research plan;</text>
</subparagraph><subparagraph id="H0FC39C0C18C946989301E15A0FA75784"><enum>(B)</enum><text display-inline="yes-display-inline">support early learning research activities
that may include—</text>
<clause id="H8EC42950FB854E3489D5FCCA75ED1EC7"><enum>(i)</enum><text display-inline="yes-display-inline">examining the characteristics of early
learning programs that produce positive developmental outcomes for
children;</text>
</clause><clause id="H9C20F3B2CC314F56B3451CEA3E42D19E"><enum>(ii)</enum><text display-inline="yes-display-inline">examining the effects of program quality
standards on child outcomes;</text>
</clause><clause id="H7C4EF6B2954E4BB59ACCB3233CC8C599"><enum>(iii)</enum><text display-inline="yes-display-inline">examining the relationships between
specific interventions and types of child and family outcomes;</text>
</clause><clause id="H17A239CC4A874487B6CB0DFDE98BC754"><enum>(iv)</enum><text display-inline="yes-display-inline">examining the effectiveness of early
learning provider training in raising program quality and improving child
outcomes;</text>
</clause><clause id="H1DB440F988444B72ACDD7EA500CB53F7"><enum>(v)</enum><text display-inline="yes-display-inline">examining the effectiveness of professional
development strategies in raising program quality and improving child outcomes;</text>
</clause><clause id="H7C96143AEF1D4B85AA03D562CD21B9E0"><enum>(vi)</enum><text display-inline="yes-display-inline">examining how to improve the school
readiness outcomes of children with limited English proficiency, special needs,
and homeless children, including evaluation of professional development
programs for working with such children; and</text>
</clause><clause id="H0D337CF20DAF4347B3BAA0A6F67BFC8C"><enum>(vii)</enum><text>supporting the
development of valid and reliable assessments of young children and program
quality, including in domains including language, literacy, mathematics,
science, social and emotional development, and approaches to learning, with
particular attention to development of assessments of domains for which there
are few appropriate assessments, that are—</text>
<subclause id="HE11F2F9684D747F089835CBBED8ABB76"><enum>(I)</enum><text>developmentally,
linguistically, and culturally appropriate for the population served, including
children with disabilities and children with limited English
proficiency;</text>
</subclause><subclause id="H50B59B1B0170421EB5E13CDD75812BFA"><enum>(II)</enum><text>consistent with
relevant, nationally recognized professional and technical standards related to
the assessment of young children;</text>
</subclause><subclause id="H35055E3854CA47ECBFAD430CB2447EFD"><enum>(III)</enum><text>consistent with
the guidelines on assessment for improved practice and for accountability in
the National Research Council Committee on Developmental Outcomes and
Assessments for Young Children; and</text>
</subclause></clause></subparagraph><subparagraph id="H21C8129E35334A18B65FB75457F15E9C"><enum>(C)</enum><text>disseminate
relevant research findings and best practices.</text>
</subparagraph></paragraph><paragraph commented="no" id="H1F9A953F98CD4E31884A1AE779114716"><enum>(4)</enum><text display-inline="yes-display-inline">Not later than 18 months after the date of
the enactment of this Act, conducting a review of the statewide strategic
reports developed by the State Advisory Councils on Early Care and Education
(established pursuant to section 642B(b)(1)(A) of the Head Start Act
(<external-xref legal-doc="usc" parsable-cite="usc/42/9837b">42 U.S.C.
9837b(b)(1)(A)</external-xref>)) and other relevant information (including
information reported by States under section 406(b)(9)) to evaluate barriers to
increasing access to high-quality early learning programs for low-income
children, reporting on the findings of such review, and disseminating relevant
findings and best practices.</text>
</paragraph></section><section id="H1F8A5EB21C2343E5A561DD7E472957EE"><enum>406.</enum><header>Reporting
requirements</header>
<subsection id="HF7F1880B5D7C400DB69111EE96C244CC"><enum>(a)</enum><header>Reports to
Congress</header><text>For each year in which funding is provided under this
title, the Secretary shall submit an annual report to the Committee on
Education and Labor of the House of Representatives and the Committee on
Health, Education, Labor and Pensions of the Senate on the activities carried
out under this title, including, at a minimum, information on the
following:</text>
<paragraph id="H1F4843D7D6E144C1A4C4C9F3DF07C121"><enum>(1)</enum><text>The activities
undertaken by States to increase the availability of high-quality early
learning programs.</text>
</paragraph><paragraph id="HAEA705B017794C3881C42CCC2E81557D"><enum>(2)</enum><text>The number of
children in high-quality early learning programs, and the change from the prior
year, disaggregated by State, age, and race.</text>
</paragraph><paragraph id="HE3D82FC9727C4416AFF18E49C50D4E24"><enum>(3)</enum><text>The number of
early learning providers enrolled, with assistance from funds under this title,
in a program to obtain a credential or degree in early childhood education and
the settings in which such providers work.</text>
</paragraph><paragraph id="H5C4BA0EBFBA5491FB164B46572247069"><enum>(4)</enum><text>A
summary of State progress in implementing a system of early learning with the
components described in section 403(c)(3).</text>
</paragraph><paragraph id="H06C36A281FB74B5587301925BD0CB0A6"><enum>(5)</enum><text>A
summary of the research activities being conducted under section 405 and the
findings of such research.</text>
</paragraph></subsection><subsection id="H64BBBE6D9D9B4C3389BDDEB7D3246171"><enum>(b)</enum><header>Reports to
Secretary</header><text>Each State that receives a grant under this title shall
submit to the Secretary an annual report that includes, at a minimum,
information on the activities carried out by the State under this title,
including the following:</text>
<paragraph id="H621959C737F44F648908EA48431B2408"><enum>(1)</enum><text>The State’s
progress on fully implementing and integrating into a system of early learning
each of the components described in section 403(c)(3).</text>
</paragraph><paragraph id="H4644E3BAD945421F9E6D18BBD270EE48"><enum>(2)</enum><text>The State’s
progress in meeting its goals for increasing the number of disadvantaged
children participating in high-quality early learning programs, disaggregated
by child age.</text>
</paragraph><paragraph id="H39B15176F067474C82E481F09974C9C4"><enum>(3)</enum><text>The number and
percentage of disadvantaged children participating in early learning programs
at each level of quality, disaggregated by race, family income, child age,
disability, and limited English proficiency status.</text>
</paragraph><paragraph id="H64A3CB83058447E0A318A4CF1422EAD7"><enum>(4)</enum><text display-inline="yes-display-inline">The number of early learning programs
participating in the State quality rating system, disaggregated by setting,
rating, and the number of high-quality early learning programs available in
low-income communities.</text>
</paragraph><paragraph id="H812AF7C189524CFEB161543CF807D85F"><enum>(5)</enum><text>Information on how
the funds provided under this title were used to increase the availability of
high-quality early learning programs for each age group, disaggregated by race
and limited English proficiency status, to the maximum extent
practicable.</text>
</paragraph><paragraph id="H8FBB57EE8DB24353A06D5D79733E1BAE"><enum>(6)</enum><text>Information on
professional development and training expenditures, including—</text>
<subparagraph id="HCFFB4B54F2734FCEB9196AB0CA7E7052"><enum>(A)</enum><text display-inline="yes-display-inline">the number of early learning providers and
early learning programs engaged in such activities; and</text>
</subparagraph><subparagraph id="H63023DB6A2CA4A5A87BE0F3B74379EE3"><enum>(B)</enum><text>the number of
early learning providers enrolled in programs to obtain a credential or degree
in early childhood education, disaggregated by the type of credential and
degree.</text>
</subparagraph></paragraph><paragraph id="H62FBCC5BB96B41E38BB71375D250FBFB"><enum>(7)</enum><text>The change in the
number and percentage of early learning providers with credentials or degrees
in early childhood education, including the change in compensation given to
such providers, in comparison to the prior fiscal year, disaggregated by early
learning setting and the type of credential or degree.</text>
</paragraph><paragraph id="HB61E483BEDB34D949D3FFA30341D89C1"><enum>(8)</enum><text display-inline="yes-display-inline">In the case of a State receiving a grant
under section 402(a), the percentage of children receiving assistance under the
Child Care and Development Block Grant Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/9858">42 U.S.C. 9858 et
seq.</external-xref>) who participate in the highest quality early learning
programs, disaggregated by program setting and child age.</text>
</paragraph><paragraph commented="no" id="H24B4E5A1727349238AC0C1E64BA42E65"><enum>(9)</enum><text display-inline="yes-display-inline">Barriers to expanding access to
high-quality early learning programs for disadvantaged children.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H96D0B9FBE003472D9B0915E6C551E77E"><enum>407.</enum><header>Construction</header><text display-inline="no-display-inline">Nothing in this title—</text>
<paragraph id="HA063F982542E4EC99819E42829014B6D"><enum>(1)</enum><text>shall be construed
to require a child to participate in an early learning program; or</text>
</paragraph><paragraph id="H6945BB003D9641AF8357CDCF60A07C4E"><enum>(2)</enum><text display-inline="yes-display-inline">shall be used to deny entry to kindergarten
for any individual if the individual is legally eligible, as defined by State
or local law.</text>
</paragraph></section><section id="H1F1D7B3126634FE7B3C2B96C37385144"><enum>408.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this title:</text>
<paragraph id="H7DDC14CAFECE439A95E61507028D9B1D"><enum>(1)</enum><header>Child</header><text>The
term <term>child</term> refers to an individual from birth through the day the
individual enters kindergarten.</text>
</paragraph><paragraph commented="no" id="H368B2520B78B4AD6B46C00ABFA4CA7A3"><enum>(2)</enum><header>Disadvantaged</header><text display-inline="yes-display-inline">The term <term>disadvantaged</term>, when
used with respect to a child, means a child whose family income is described in
section 658P(4)(B) of the Child Care and Development Block Grant Act of 1990
(<external-xref legal-doc="usc" parsable-cite="usc/42/9858n">42 U.S.C.
9858n(4)(B)</external-xref>).</text>
</paragraph><paragraph id="H71606ABFF30944FD9BC4CEEB1F2AC845"><enum>(3)</enum><header>Indian
tribe</header><text display-inline="yes-display-inline">The term <term>Indian
tribe</term> has the meaning given such term in section 637 of the Head Start
Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9832">42 U.S.C.
9832</external-xref>).</text>
</paragraph><paragraph id="H4653DE0B353A4759A5E10F0D1309A2A6"><enum>(4)</enum><header>Limited English
proficient</header><text display-inline="yes-display-inline">The term
<term>limited English proficient</term> has the meaning given such term in
section 637 of the Head Start Act (<external-xref legal-doc="usc" parsable-cite="usc/42/9832">42 U.S.C.
9832</external-xref>).</text>
</paragraph><paragraph commented="no" id="H0855F003214841409655EA0FE420236C"><enum>(5)</enum><header>Secretary</header><text display-inline="yes-display-inline">The term <term>Secretary</term> means the
Secretary of Education.</text>
</paragraph><paragraph id="H71C3967CEB95443E80F36020E1EF1428"><enum>(6)</enum><header>State</header><text display-inline="yes-display-inline">The term <term>State</term> has the meaning
given such term in section 9101 of the Elementary and Secondary Education Act
of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/7801">20 U.S.C.
7801</external-xref>).</text>
</paragraph></section><section id="H04591C2911AC48C48076DF72FA59E2DB"><enum>409.</enum><header>Availability of
funds</header><text display-inline="no-display-inline">There are authorized to
be appropriated, and there are appropriated, to carry out this title (in
addition to any other amounts appropriated to carry out this title and out of
any money in the Treasury not otherwise appropriated) $1,000,000,000 for each
of fiscal years 2010 through 2017. The authority to award grants under this
title shall expire at the end of fiscal year 2017.</text>
</section><enum>V</enum><header>American
Graduation Initiative</header>
<section id="HD164121FBFE64F1689E517E2050927AC" section-type="subsequent-section"><enum>501.</enum><header>Authorization and
appropriation</header>
<subsection id="HC6254E42875B4B238CC4866A4EB2C49A"><enum>(a)</enum><header>Authorization
and appropriation</header><text display-inline="yes-display-inline">There are
authorized to be appropriated, and there are appropriated, to carry out this
title (in addition to any other amounts appropriated to carry out this title
and out of any money in the Treasury not otherwise appropriated), $730,000,000
for each of the fiscal years 2010 through 2013, and $680,000,000 for each of
the fiscal years 2014 through 2019. The authority to award grants under this
title shall expire at the end of fiscal year 2019.</text>
</subsection><subsection id="H5714AA112B714E0D91C434EE017B49D9"><enum>(b)</enum><header>Allocations</header><text display-inline="yes-display-inline">Of the amount appropriated under
<internal-xref idref="HC6254E42875B4B238CC4866A4EB2C49A" legis-path="501.(a)">subsection (a)</internal-xref>—</text>
<paragraph id="HD700BDBFBE57440C82688C28686E9A6E"><enum>(1)</enum><text>$630,000,000 shall
be made available for each of the fiscal years 2010 through 2013 to carry out
<internal-xref idref="H438CA156FADE47D28087994F257D1BD4" legis-path="503.">section 503</internal-xref>;</text>
</paragraph><paragraph id="H69F52A7A8DF54F3A9629419037CE34E7"><enum>(2)</enum><text>$630,000,000 shall
be made available for each of the fiscal years 2014 through 2019 to carry out
<internal-xref idref="H2DE266443F7341F0A85A4DF4F8A4DFD3" legis-path="504.">section 504</internal-xref>;</text>
</paragraph><paragraph id="H059FAAF480334E34A07923AD5A493461"><enum>(3)</enum><text>$50,000,000 shall
be made available for each of the fiscal years 2010 through 2019 to carry out
<internal-xref idref="H4295D2EAC759419A872AF4577F09F27B" legis-path="505.(a)">subsection (a) of section 505</internal-xref>; and</text>
</paragraph><paragraph id="HB4C56958534A404D9D9CC695E498A7B7"><enum>(4)</enum><text>$50,000,000 shall
be made available for each of the fiscal years 2010 through 2013 to carry out
<internal-xref idref="H362F748FCAB4417D99AA66C18611941E" legis-path="505.(b)">subsections (b) and (c) of section
505</internal-xref>.</text>
</paragraph></subsection><subsection commented="no" id="H7255B45AB0F74927B81CBA58C43F72CA"><enum>(c)</enum><header>Responsibility</header>
<paragraph id="HBBC693747D304578AA57ED66C1DBA04E"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">With respect to
sections 503 and 504, the Secretary of Education shall bear the responsibility
for obligating and disbursing funds under such sections and ensuring compliance
with applicable law and administrative requirements, subject to
<internal-xref idref="HC4EE1E950636442385C511EACABA5EDE" legis-path="501.(c)(2)">paragraph (2)</internal-xref>.</text>
</paragraph><paragraph id="HC4EE1E950636442385C511EACABA5EDE"><enum>(2)</enum><header>Interagency
agreement</header><text>The Secretary of Education and the Secretary of Labor
shall jointly administer sections 503 and 504 on such terms as such Secretaries
shall set forth in an interagency agreement.</text>
</paragraph></subsection></section><section id="HC2A40B8DEF304BF2B98274A1D3756B8B"><enum>502.</enum><header>Definitions;
grant priority</header><text display-inline="no-display-inline">In this
title:</text>
<paragraph id="HC23A630CF65C480E856F9C8319D93444"><enum>(1)</enum><header>Area career and
technical education school</header><text display-inline="yes-display-inline">The term <term>area career and technical
education school</term> has the meaning given such term in section 3 of the
Carl D. Perkins Career and Technical Education Act of 2006 (<external-xref legal-doc="usc" parsable-cite="usc/20/2302">20 U.S.C.
2302</external-xref>).</text>
</paragraph><paragraph id="H41B997A4EEB84890826C4FE3C2D5830D"><enum>(2)</enum><header>Community
college</header><text>The term <term>community college</term> means a public
institution of higher education at which the highest degree that is
predominantly awarded to students is an associate’s degree.</text>
</paragraph><paragraph id="HE668D8C8D4EF40F787699EA67D8D73B1"><enum>(3)</enum><header>Eligible
entity</header><text>The term <term>eligible entity</term> means—</text>
<subparagraph id="H4D3AC4DAC8D84C7A9C4D2F342C21D718"><enum>(A)</enum><text display-inline="yes-display-inline">a community college or community college
district that has at least one articulation agreement with a four-year
institution of higher education;</text>
</subparagraph><subparagraph id="H861E3E1384954E1E9EF3D7B30C894B2C"><enum>(B)</enum><text display-inline="yes-display-inline">an area career and technical education
school that has at least one articulation agreement with an institution of
higher education;</text>
</subparagraph><subparagraph id="HEDDE37BB9667439CA1FACB095D639DE4"><enum>(C)</enum><text>a public four-year
institution of higher education that—</text>
<clause id="HC22EB874446A4617ADEA12499F6254C3"><enum>(i)</enum><text>offers two-year
degrees;</text>
</clause><clause id="H0261C99D9044456CA3DF97F2EA3C8ECF"><enum>(ii)</enum><text>will use funds
provided under this section for activities at the certificate and associate
degree levels; and</text>
</clause><clause id="HC49FEF52E4DE41DCBE9026B77D434C7A"><enum>(iii)</enum><text>is
not reasonably close, as determined by the Secretary, to a community
college;</text>
</clause></subparagraph><subparagraph id="H617DF772FC124028877CFBE2204DC5EC"><enum>(D)</enum><text>a Tribal College
or University;</text>
</subparagraph><subparagraph id="HE524CCC43F7949EEADF9DB5204C1BF52"><enum>(E)</enum><text display-inline="yes-display-inline">a public four-year institution of higher
education that is in partnership with an eligible entity described in
<internal-xref idref="H4D3AC4DAC8D84C7A9C4D2F342C21D718" legis-path="502.(a)(3)(A)">subparagraph (A)</internal-xref>,
<internal-xref idref="H861E3E1384954E1E9EF3D7B30C894B2C" legis-path="502.(a)(3)(B)">(B)</internal-xref>, (C), or (D);</text>
</subparagraph><subparagraph id="HB84906E4EB034779B3A12D3BF5F66379"><enum>(F)</enum><text>a State
that—</text>
<clause id="H006A18F227E742CE81B5238B3DE2A083"><enum>(i)</enum><text display-inline="yes-display-inline">is in compliance with section 137 of the
Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1015f">20 U.S.C. 1015f</external-xref>);</text>
</clause><clause id="H3BBFA6AD04644F13855309A4D813CAE9"><enum>(ii)</enum><text display-inline="yes-display-inline">has established and implemented a
comprehensive articulation agreement between or among public institutions of
higher education in the State that includes outlining the acceptability of
community college courses in transfer for credit at public four-year
institutions in the State; and</text>
</clause><clause id="HAF71C98950124C59A69A876AB2EB9F1B"><enum>(iii)</enum><text display-inline="yes-display-inline">is in partnership with an eligible entity
described in
<internal-xref idref="H4D3AC4DAC8D84C7A9C4D2F342C21D718" legis-path="502.(a)(3)(A)">subparagraph (A)</internal-xref>,
<internal-xref idref="H861E3E1384954E1E9EF3D7B30C894B2C" legis-path="502.(a)(3)(B)">(B)</internal-xref>,
<internal-xref idref="HEDDE37BB9667439CA1FACB095D639DE4" legis-path="502.(a)(3)(C)">(C)</internal-xref>, (D), or (E);</text>
</clause></subparagraph><subparagraph id="HA31BBC0F57804CB8AE16751719A873DF"><enum>(G)</enum><text>a consortium of at
least 2 entities described in
<internal-xref idref="H4D3AC4DAC8D84C7A9C4D2F342C21D718" legis-path="502.(a)(3)(A)">subparagraphs (A)</internal-xref> through
(F).</text>
</subparagraph><subparagraph id="HBB13EAF387234CF9A75FD521D85237D1"><enum>(H)</enum><text>at the discretion
of the Secretary, a private, not-for-profit, two-year institution of higher
education in Puerto Rico, the District of Columbia, Guam, the United States
Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana
Islands, the Republic of the Marshall Islands, the Federated States of
Micronesia, or the Republic of Palau.</text>
</subparagraph></paragraph><paragraph commented="no" id="HC90D59645CAE4C7B94D2768E70AB2033"><enum>(4)</enum><header>Industry or
sector partnership</header><text display-inline="yes-display-inline">The term
<quote>industry or sector partnership</quote> has the meaning given such term
in section 782(f) of the Higher Education Act of 1965.</text>
</paragraph><paragraph id="H1EB5BA37AC934D47A86E5D499FBF1600"><enum>(5)</enum><header>Institution of
higher education</header><text>The term <term>institution of higher
education</term> has the meaning given such term in section 101 of the Higher
Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001</external-xref>).</text>
</paragraph><paragraph id="H99FF501962B846A2BEBCC786982D0F12"><enum>(6)</enum><header>Philanthropic
organization</header><text display-inline="yes-display-inline">The term
<term>philanthropic organization</term> has the meaning given such term in
section 781(i) of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1141">20 U.S.C.
1141(i)</external-xref>).</text>
</paragraph><paragraph id="H092B35CDF7384FF79452B04861CE5D4B"><enum>(7)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Education.</text>
</paragraph><paragraph id="H0D78149D951641B588D6C8E55DC06018"><enum>(8)</enum><header>State</header><text>The
term <term>State</term> has the meaning given such term in section 103 of the
Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1003">20 U.S.C. 1003</external-xref>).</text>
</paragraph><paragraph commented="no" id="H4ED52DAC8A9C4706B6E1790DA0129437"><enum>(9)</enum><header>State public
employment service</header><text>The term <term>State public employment
service</term> refers to a State public employment service established under
the Wagner-Peyser Act (<external-xref legal-doc="usc" parsable-cite="usc/29/49">29 U.S.C. 49 et seq.</external-xref>).</text>
</paragraph><paragraph id="H3AA49CB17AAB49D2BCC72F1464F57021"><enum>(10)</enum><header>State workforce
investment board; local workforce investment board</header><text display-inline="yes-display-inline">The
terms <term>State workforce investment board</term> and <term>local workforce
investment board</term> refer to a State workforce investment board established
under section 111 of the Workforce Investment Act (<external-xref legal-doc="usc" parsable-cite="usc/29/2821">29 U.S.C. 2821</external-xref>) and
a local workforce investment board established under section 117 of such Act
(<external-xref legal-doc="usc" parsable-cite="usc/29/2832">29 U.S.C.
2832</external-xref>), respectively.</text>
</paragraph><paragraph commented="no" id="H0B36E3D6166743A3BD6C4D129288C0B3"><enum>(11)</enum><header>Supportive
services</header><text display-inline="yes-display-inline">The term
<term>supportive services</term> has the meaning given such term in section
101(46) of the Workforce Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/2801">29 U.S.C. 2801(46)</external-xref>).</text>
</paragraph><paragraph id="H23473C3C3F7445F381A4F69F695EA64D"><enum>(12)</enum><header>Tribal College
or University</header><text>The term <term>Tribal College or University</term>
has the meaning given such term in section 316 of the Higher Education Act of
1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1059c">20 U.S.C.
1059c</external-xref>).</text>
</paragraph></section><section id="H438CA156FADE47D28087994F257D1BD4"><enum>503.</enum><header>Grants to
eligible entities for community college reform</header>
<subsection id="H883F9D73ADD44812A618E77A4F086D7D"><enum>(a)</enum><header>Program
authorization</header>
<paragraph id="H348BA5CAFBF240CDA42D7570DD6D94BC"><enum>(1)</enum><header>Grants
authorized</header>
<subparagraph id="H9CE97ACCF3F94CA3876EA2FF6A978F3D"><enum>(A)</enum><header>In
general</header><text>Subject to
<internal-xref idref="H91D51E17304D4A6B8A08E28845803679" legis-path="503.(a)(2)">paragraph (2)</internal-xref>, from the amount
appropriated to carry out this section, the Secretary, in coordination with the
Secretary of Labor, shall award grants to eligible entities, on a competitive
basis, to establish and support programs described in
<internal-xref idref="HFFB76C94B5F54521B0705BC7C677C559" legis-path="503.(a)(1)(B)">subparagraph (B)</internal-xref> at eligible
entities described in subparagraphs (A) through (E) of
<internal-xref idref="HE668D8C8D4EF40F787699EA67D8D73B1" legis-path="502.(a)(3)">section 502(a)(3)</internal-xref>.</text>
</subparagraph><subparagraph id="HFFB76C94B5F54521B0705BC7C677C559"><enum>(B)</enum><header>Programs</header><text display-inline="yes-display-inline">The programs to be established and
supported with grants under
<internal-xref idref="H9CE97ACCF3F94CA3876EA2FF6A978F3D" legis-path="503.(a)(1)(A)">subparagraph (A)</internal-xref> (and carried out
through activities described in
<internal-xref idref="H90A907223CC2432DA79848B638DFBE28" legis-path="503.(f)">subsection (f)</internal-xref>) shall be programs—</text>
<clause id="H9D71F5303A304549888D5D0A739A49F5"><enum>(i)</enum><text>that
are—</text>
<subclause id="H0FA28AE385D24189853ECB0574F9DC02"><enum>(I)</enum><text>innovative
programs; or</text>
</subclause><subclause id="HBAE505C5193946EFAF5FBF0991180464"><enum>(II)</enum><text>programs of
demonstrated effectiveness, based on the evaluations of similar programs funded
by the Department of Education or the Department of Labor, or other research of
similar programs; and</text>
</subclause></clause><clause id="HDFC81F5981254889989CEEB29D23E1E9"><enum>(ii)</enum><text>that lead to the
completion of a postsecondary degree, certificate, or industry-recognized
credential leading to a skilled occupation in a high-demand industry.</text>
</clause></subparagraph></paragraph><paragraph id="H91D51E17304D4A6B8A08E28845803679"><enum>(2)</enum><header>Limitation</header><text>For
each fiscal year for which funds are appropriated to carry out this section,
the aggregate amount of the grants awarded to eligible entities that are
States, or consortia that include a State, shall be not more than 50 percent of
the total amount appropriated under
<internal-xref idref="HD700BDBFBE57440C82688C28686E9A6E" legis-path="501.(b)(1)">section 501(b)(1)</internal-xref> for such fiscal
year.</text>
</paragraph><paragraph commented="no" id="H0BA3F29598F1487781673A98418857BA"><enum>(3)</enum><header>Prohibition</header><text>The
Secretary shall not award a grant to an eligible entity for the same specific
activities that are being supported by other Federal grant funds.</text>
</paragraph></subsection><subsection id="H880FB9B52DA34AC1A9923EB8137938DC"><enum>(b)</enum><header>Grant duration
and amount</header>
<paragraph id="H5AD9EF3F15F740A38F42E00B8B6DDAD7"><enum>(1)</enum><header>Duration</header><text>A
grant under this section shall be awarded to an eligible entity for a 4-year
period, except that if the Secretary determines that the eligible entity has
not made demonstrable progress in achieving the benchmarks developed pursuant
to
<internal-xref idref="HB40E317925584E9CB3C857484316010B" legis-path="503.(g)">subsection (g)</internal-xref> by the end of the third
year of such grant period, no further grant funds shall be made available to
the entity after the date of such determination.</text>
</paragraph><paragraph id="HFACAEFF7A3834BD3B201779ACD669D6A"><enum>(2)</enum><header>Amount</header><text>The
minimum amount of a total grant award under this section over the 4-year period
of the award shall be $750,000.</text>
</paragraph></subsection><subsection id="H9E0E20683DD34EFBBF02503300F876A2"><enum>(c)</enum><header>Priority</header><text>In
awarding grants under this section, the Secretary shall give priority to
eligible entities that—</text>
<paragraph id="H9BB58BC270B84FB19A2E01F34536865D"><enum>(1)</enum><text>enter into
partnerships with—</text>
<subparagraph id="HCF21CE61238946A7B98A0BC602080B97"><enum>(A)</enum><text>philanthropic or
research organizations with expertise in meeting the goals of this
section;</text>
</subparagraph><subparagraph id="H0BCCDAD57AAA43D5BC78654DFD48A183"><enum>(B)</enum><text display-inline="yes-display-inline">businesses or industry or sector
partnerships that—</text>
<clause id="H0A605FC8C6F3446EA548F968A340BD3B"><enum>(i)</enum><text>design and
implement programs described in
<internal-xref idref="HFFB76C94B5F54521B0705BC7C677C559" legis-path="503.(a)(1)(B)">subsection (a)(1)(B)</internal-xref>;</text>
</clause><clause id="H816AB268403745B6B7FF4411F0040642"><enum>(ii)</enum><text>pay
a portion of the costs of such programs; and</text>
</clause><clause id="H66FA7BA5360F4224AF76D1ED7ECF1595"><enum>(iii)</enum><text>agree to
collaborate with one or more eligible entities to hire individuals who have
completed a particular postsecondary degree, certificate, or credential
program;</text>
</clause></subparagraph><subparagraph id="H785B15882DF74C18B0C0AC110FEA7564"><enum>(C)</enum><text>labor
organizations that provide technical expertise for occupationally specific
education necessary for an industry-recognized credential leading to a skilled
occupation in a high-demand industry;</text>
</subparagraph></paragraph><paragraph id="H3D881640F226424AB1833A86DA14317E"><enum>(2)</enum><text display-inline="yes-display-inline">are institutions of higher education
eligible for assistance under title III or V of the Higher Education Act of
1965, or consortia that include such an institution;</text>
</paragraph><paragraph id="H8EC6D6D06F3F45808FB6CE18773D876D"><enum>(3)</enum><text>are focused on
serving low-income, non-traditional students (as defined in section 803(j) of
the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1161c">20 U.S.C. 1161c(j)</external-xref>)), students who
are dislocated workers, or students who are veterans, who do not have a
bachelor’s degree;</text>
</paragraph><paragraph id="H78F93570EF74438B951B90C7BFD47866"><enum>(4)</enum><text>are focused on
serving low-income, nontraditional students (as defined in section 803(j) of
the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1161c">20 U.S.C. 1161c(j)</external-xref>)), who do not
have a bachelor’s degree; or</text>
</paragraph><paragraph id="H17F39BECD83848C7BE15ED818751D6DB"><enum>(5)</enum><text>are community
colleges located in areas with high unemployment rates.</text>
</paragraph></subsection><subsection id="H8762CFD8872947318F16DADDE5A141A8"><enum>(d)</enum><header>Federal and
non-Federal share; Supplement, not supplant</header>
<paragraph id="HCF07A8AE74D74FFF97E6A987456F7192"><enum>(1)</enum><header>Federal
share</header><text display-inline="yes-display-inline">The amount of the
Federal share under this section for a fiscal year shall be not greater than
<fraction>½</fraction> of the costs of the programs, services, and policies
described in
<internal-xref idref="H90A907223CC2432DA79848B638DFBE28" legis-path="503.(f)">subsection (f)</internal-xref> that are carried out under
the grant.</text>
</paragraph><paragraph id="HF584A3ECBB724A6D93D062E9C94CA96C"><enum>(2)</enum><header>Non-Federal
share</header>
<subparagraph id="H28284F96B2D545D4BE0DAA1B5CEDFFAD"><enum>(A)</enum><header>In
general</header><text>The amount of the non-Federal share under this section
for a fiscal year shall be not less than <fraction>½</fraction> of the costs of
the programs, services, and policies described in
<internal-xref idref="H90A907223CC2432DA79848B638DFBE28" legis-path="503.(f)">subsection (f)</internal-xref> that are carried out under
the grant. The non-Federal share may be in cash or in kind, and may be provided
from State resources, local resources, contributions from private
organizations, or a combination thereof.</text>
</subparagraph><subparagraph id="HFC36A090CA69473793CD2828B5D4688B"><enum>(B)</enum><header>Financial
hardship waiver</header><text display-inline="yes-display-inline">The Secretary
may waive or reduce the non-Federal share of an eligible entity that has
submitted an application under this section if the entity demonstrates a need
for such waiver or reduction due to extreme financial hardship, as defined by
the Secretary by regulation.</text>
</subparagraph></paragraph><paragraph id="HC0A990F8927B4A16B495744D24CA6961"><enum>(3)</enum><header>Supplement, not
supplant</header><text>The Federal and non-Federal shares required by this
section shall be used to supplement, and not supplant, State and private
resources that would otherwise be expended to establish and support programs
described in
<internal-xref idref="HFFB76C94B5F54521B0705BC7C677C559" legis-path="503.(a)(1)(B)">subsection (a)(1)(B)</internal-xref> at eligible
entities.</text>
</paragraph><paragraph id="HC6189866A61F4BFCB2864C40B2BB979B"><enum>(4)</enum><header>Exception</header><text>This
subsection shall not apply to Tribal Colleges and Universities.</text>
</paragraph></subsection><subsection id="H44D621956F5A4DB08D4DFD1F9231AFFD"><enum>(e)</enum><header>Application</header><text display-inline="yes-display-inline">An eligible entity seeking to receive a
grant under this section shall submit to the Secretary an application at such
time, in such manner, and containing such information as the Secretary may
require. Such application shall describe the programs under
<internal-xref idref="HFFB76C94B5F54521B0705BC7C677C559" legis-path="503.(a)(1)(B)">subsection (a)(1)(B)</internal-xref> that the
eligible entity will carry out using the grant funds, (including the programs,
services, and policies under
<internal-xref idref="H90A907223CC2432DA79848B638DFBE28" legis-path="503.(f)">subsection (f)</internal-xref>), including—</text>
<paragraph id="H8538602FB2864CA49A30C8D408014CB3"><enum>(1)</enum><text display-inline="yes-display-inline">the goals of such programs, services, and
policies;</text>
</paragraph><paragraph id="H387EE0D754E44D7495AAC24A7F1952FD"><enum>(2)</enum><text display-inline="yes-display-inline">how the eligible entity will allocate grant
funds for such programs, services, and policies;</text>
</paragraph><paragraph id="HA928B2EB4D3C4E72894B89A0340BBCA3"><enum>(3)</enum><text display-inline="yes-display-inline">how such programs, services, and policies,
and the resources of the eligible entity, will enable the eligible entity to
meet the benchmarks developed pursuant to
<internal-xref idref="HB40E317925584E9CB3C857484316010B" legis-path="503.(g)">subsection (g)</internal-xref>, and how the eligible
entity will track and report the entity’s progress in reaching such
benchmarks;</text>
</paragraph><paragraph id="H708F2B6CBDFA4A2FAB1AD8542898EE3F"><enum>(4)</enum><text display-inline="yes-display-inline">how the eligible entity will use such
programs, services, and policies to establish quantifiable targets for
improving graduation rates and employment-related outcomes;</text>
</paragraph><paragraph id="H3371A4C4F4FC482CA9B40D57773FD093"><enum>(5)</enum><text display-inline="yes-display-inline">how the eligible entity will serve
high-need populations through such programs, services, and policies;</text>
</paragraph><paragraph id="H1D77C7E8B5FD47D396CF3707BDD8ECAB"><enum>(6)</enum><text display-inline="yes-display-inline">how the eligible entity will partner with
industry or sector partnerships in the State, the State public employment
service, and State or local workforce investment boards in carrying out such
programs, services, and policies;</text>
</paragraph><paragraph id="HDFA50C201A8049CA8CB9AE7B5090EB01"><enum>(7)</enum><text display-inline="yes-display-inline">an assurance that the eligible entity will
share information with the Learning and Earning Research Center established
under
<internal-xref idref="H362F748FCAB4417D99AA66C18611941E" legis-path="505.(b)">section 505(b)</internal-xref>, once such Center is
established;</text>
</paragraph><paragraph id="H01DA555ED8B5439E81A1EB02105EDF29"><enum>(8)</enum><text display-inline="yes-display-inline">an assurance that the eligible entity will
participate in the evaluation of such programs, services, and policies under
<internal-xref idref="HF5C7A4910FB548BE94DE259C8217BD29" legis-path="503.(i)">subsection (i)</internal-xref>;</text>
</paragraph><paragraph id="HED1D966211224DD1BBD2E1DC3874A233"><enum>(9)</enum><text display-inline="yes-display-inline">the potential for such programs, services,
and policies to be replicated at other institutions of higher education;
and</text>
</paragraph><paragraph id="HF0A0A955459D4AD39E5B4520E567B207"><enum>(10)</enum><text display-inline="yes-display-inline">how the eligible entity will incorporate
and support faculty and staff of the institution in meeting the goals of such
programs, services, and policies.</text>
</paragraph></subsection><subsection id="H90A907223CC2432DA79848B638DFBE28"><enum>(f)</enum><header>Uses of
funds</header><text>An eligible entity receiving a grant under this section
shall use the grant funds to carry out the programs described in
<internal-xref idref="HFFB76C94B5F54521B0705BC7C677C559" legis-path="503.(a)(1)(B)">subsection (a)(1)(B)</internal-xref>, which shall
include at least 2 of the following activities:</text>
<paragraph id="HC182107C082542759AAF0B508B4216C8"><enum>(1)</enum><text>Developing and
implementing policies and programs to expand opportunities for students at
eligible entities described in subparagraphs (A) through (E) of
<internal-xref idref="HE668D8C8D4EF40F787699EA67D8D73B1" legis-path="502.(a)(3)">section 502(a)(3)</internal-xref> to earn bachelor’s
degrees by—</text>
<subparagraph id="HA6232E7B52EE4431AAD43E793E5CA4A2"><enum>(A)</enum><text>facilitating the
transfer of academic credits between institutions of higher education,
including the transfer of academic credits for courses in the same field of
study; and</text>
</subparagraph><subparagraph id="H2A3EA06D4FDB4C8B877810E3E812199B"><enum>(B)</enum><text>expanding
articulation agreements and guaranteed transfer agreements between such
institutions, including through common course numbering and general core
curriculum.</text>
</subparagraph></paragraph><paragraph id="HACFDE69DAA754E2CA8A88CAB01C8FAAA"><enum>(2)</enum><text display-inline="yes-display-inline">Expanding, enhancing, or creating academic
programs or training programs, which shall be carried out with industry or
sector partnerships or in partnership with employers and may include other
relevant partners, that provide relevant job-skill training (including
apprenticeships and worksite learning and training opportunities) for skilled
occupations in high-demand industries.</text>
</paragraph><paragraph id="H3AD002763D2C4B1E84AAA8859AC7E8B2"><enum>(3)</enum><text display-inline="yes-display-inline">Providing student support services,
including—</text>
<subparagraph id="H79AF6AA4443449338C9FFA73EBED77B1"><enum>(A)</enum><text>intensive career
and academic advising;</text>
</subparagraph><subparagraph id="H686B63D4E6BB471399DE8A402D1CB54B"><enum>(B)</enum><text>labor market
information and job counseling;</text>
</subparagraph><subparagraph id="H1F76ED11EE0B419AB4083E6BC6F6C162"><enum>(C)</enum><text>transitional job
support, supportive services, or assistance in connecting students with
community resources; and</text>
</subparagraph><subparagraph id="H73F39FA19E5A4547A0DE485C3DC14653"><enum>(D)</enum><text>library services,
including information literacy activities, to—</text>
<clause id="HE72734B3BA614E6DB543965000250487"><enum>(i)</enum><text>help
increase postsecondary degree, certificate, and industry-recognized credential
completion rates, particularly with respect to groups underrepresented in
higher education; and</text>
</clause><clause id="H7D875FCF7E8B4309884D375DF5A300E9"><enum>(ii)</enum><text>assist
individuals with obtaining and retaining employment.</text>
</clause></subparagraph></paragraph><paragraph id="HDF4B187E9A2E4ED09F135F2D28392017"><enum>(4)</enum><text>Creating workforce
programs that provide a sequence of education and occupational training that
leads to industry-recognized credentials, including programs that—</text>
<subparagraph id="H739A9D18302248AD9A28E2B8547F46D2"><enum>(A)</enum><text display-inline="yes-display-inline">blend basic skills, information literacy,
and occupational training that lead to industry-recognized credentials;</text>
</subparagraph><subparagraph id="H4172A13CB81A4B1BB1D70FF398D82738"><enum>(B)</enum><text>integrate
developmental education curricula and instruction with for-credit coursework
toward degree or certificate pathways; or</text>
</subparagraph><subparagraph id="H2604897072744EF688225BC0CC07F767"><enum>(C)</enum><text display-inline="yes-display-inline">advance individuals on a career path toward
high-wage occupations in high-demand industries.</text>
</subparagraph></paragraph><paragraph id="H085624D1AFD34E5A8CFC7A6A767A2B5C"><enum>(5)</enum><text display-inline="yes-display-inline">Building or enhancing linkages, including
the development of dual enrollment programs and early college high schools,
between—</text>
<subparagraph id="H84A476A5E44C433D875BF013CFF10B83"><enum>(A)</enum><text>secondary
education or adult education programs (including programs established under the
Carl D. Perkins Career and Technical Education Act of 2006 and title II of the
Workforce Investment Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/29/9201">29 U.S.C. 9201 et seq.</external-xref>));
and</text>
</subparagraph><subparagraph id="H6CACF08E83354E5EBB6DAE2F185BF742"><enum>(B)</enum><text display-inline="yes-display-inline">eligible entities described in
subparagraphs (A) through (E) of
<internal-xref idref="HE668D8C8D4EF40F787699EA67D8D73B1" legis-path="502.(a)(3)">section 502(a)(3)</internal-xref>.</text>
</subparagraph></paragraph><paragraph id="H156898BC708C4C01B76DDE11D82FCBE7"><enum>(6)</enum><text display-inline="yes-display-inline">Implementing other innovative programs,
services, and policies designed to—</text>
<subparagraph id="H268701FF9C1F4F398E281262F971480B"><enum>(A)</enum><text>increase
postsecondary degree, certificate, and industry-recognized credential
completion rates, particularly with respect to groups underrepresented in
higher education, at eligible entities described in subparagraphs (A) through
(E) of
<internal-xref idref="HE668D8C8D4EF40F787699EA67D8D73B1" legis-path="502.(a)(3)">section 502(a)(3)</internal-xref>; and</text>
</subparagraph><subparagraph id="HFD5BBC1E90F740D98F347C8D3A2B4512"><enum>(B)</enum><text display-inline="yes-display-inline">increase the provision of training for
students, including students who are veterans or members of the National Guard
or Reserves, to enter skilled occupations in high-demand industries.</text>
</subparagraph></paragraph><paragraph commented="no" id="HAE1BD27E360A403B987225678B7C5CA4"><enum>(7)</enum><text display-inline="yes-display-inline">Creating, in a timely and efficient manner,
degree, certificate, and industry-recognized credential programs at eligible
entities described in subparagraphs (A) through (E) of
<internal-xref idref="HE668D8C8D4EF40F787699EA67D8D73B1" legis-path="502.(a)(3)">section 502(a)(3)</internal-xref> that—</text>
<subparagraph commented="no" id="H2426CF85E14F49FB8F57909819B0DA0A"><enum>(A)</enum><text>reflect and
respond to regional labor market developments and trends;</text>
</subparagraph><subparagraph commented="no" id="HCE7A963750404AE5A2E48FDCAE6871FB"><enum>(B)</enum><text>effectively
address the workforce needs of employers in the State; and</text>
</subparagraph><subparagraph commented="no" id="H10F470A315084ED6BDA303C18008ED65"><enum>(C)</enum><text>are designed in
consultation with such employers.</text>
</subparagraph></paragraph><paragraph id="H830446AAA6BA4B269694229B45BBEBCB"><enum>(8)</enum><text>Providing
information technology training for students and members of the public seeking
to improve their computer literacy and information technology skills through
public accessibility to—</text>
<subparagraph id="HF8137FAA17764DCF8A05F8EE0DDB849D"><enum>(A)</enum><text display-inline="yes-display-inline">community college computer labs; and</text>
</subparagraph><subparagraph id="H73CFCB6C96DF4089A6E8766BA9B5B448"><enum>(B)</enum><text>information
technology training provided on weeknights and weekends by an employee of a
community college who is capable of basic computer instruction.</text>
</subparagraph></paragraph><paragraph id="H00CE4AFE4BDE4E909A425E3EDC4ECCDF"><enum>(9)</enum><text>Expanding,
enhancing, or creating academic programs or training programs that focus on
preparing students for skilled occupations in energy-related fields, which may
be carried out in partnership with employers and may include other relevant
partners, that provide relevant job-skill training (including apprenticeships
and worksite learning and training opportunities) for skilled occupations in
high-demand industries.</text>
</paragraph><paragraph id="HF9A93B9B904340119496B808C782E522"><enum>(10)</enum><text>Expanding,
enhancing, or creating academic programs or training programs that prepare
students for occupations critical to serving veterans, including occupations
within the Department of Veterans Affairs health care system.</text>
</paragraph></subsection><subsection id="HB40E317925584E9CB3C857484316010B"><enum>(g)</enum><header>Benchmarks</header>
<paragraph id="H64BAF429C2C1450DAB7224E25FE4C2F2"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Each eligible entity
receiving a grant under this section shall develop quantifiable benchmarks on
the following indicators (where applicable to the institution’s use of funds
provided under this section), to be approved by the Secretary:</text>
<subparagraph id="HB09A9AE08A2C41C8A17AC0A53A31CCCE"><enum>(A)</enum><text>Closing gaps in
enrollment and completion rates for—</text>
<clause id="H90494EFF652B410AA371463E9114E650"><enum>(i)</enum><text>groups
underrepresented in higher education; and</text>
</clause><clause id="H5875153CF2424F13BFC35BCB0DD2F4AA"><enum>(ii)</enum><text>groups of
students enrolled at the eligible entity (or at an institution of higher
education under the jurisdiction of the eligible entity, in the case of an
entity that is not an institution) who have the lowest enrollment and
completion rates.</text>
</clause></subparagraph><subparagraph id="H6B5B170A401947F69B67A3304E2E7551"><enum>(B)</enum><text>Addressing local
and regional workforce needs.</text>
</subparagraph><subparagraph id="HA48A3E19D3434296BE9F75EED2C9401B"><enum>(C)</enum><text>Establishing
articulation agreements between two-year and four-year public institutions of
higher education within a State.</text>
</subparagraph><subparagraph id="HAA1C03B60F95403D8B6400133D407A61"><enum>(D)</enum><text>Improving
comprehensive employment and educational outcomes for postsecondary education
and training programs, including—</text>
<clause id="H3F61EFFAE90E4E6AAAB5A527C7B20B15"><enum>(i)</enum><text>student
persistence from one academic year to the following academic year;</text>
</clause><clause id="H3FBBA1689DE64F4FB26A719D14C597B1"><enum>(ii)</enum><text>the
number of credits students earn toward a certificate or an associate’s
degree;</text>
</clause><clause id="HD779EC88FBE345F899480942E01B42E0"><enum>(iii)</enum><text>the number of
students in developmental education courses who subsequently enroll in credit
bearing coursework;</text>
</clause><clause id="H0E892C84624C4D17B5C76C54E65B8806"><enum>(iv)</enum><text display-inline="yes-display-inline">transfer of general education credits,
including education credits earned while serving in the Armed Forces, between
institutions of higher education, as applicable;</text>
</clause><clause id="H6802BD20BA8F4E1FB7D5EE8546DC7598"><enum>(v)</enum><text>completion of
industry-recognized credentials or associate’s degrees to work in skilled
occupations in high-demand industries;</text>
</clause><clause id="HC39C03A0693C4AA19A24E69D554B7D86"><enum>(vi)</enum><text>transfers to
four-year institutions of higher education; and</text>
</clause><clause id="H35AB83B7D2FD46E19F3F0C5CA559CDCB"><enum>(vii)</enum><text>job placement
related to skills training or associate’s degree completion.</text>
</clause></subparagraph></paragraph><paragraph id="HE4447F4D02A04DCEAF4A032E2213D260"><enum>(2)</enum><header>Report</header><text>The
eligible entity receiving such a grant shall annually measure and report to the
Secretary the progress of the entity in achieving the benchmarks developed
pursuant to
<internal-xref idref="H64BAF429C2C1450DAB7224E25FE4C2F2" legis-path="503.(g)(1)">paragraph (1)</internal-xref>.</text>
</paragraph></subsection><subsection id="H082BF4AEB45E4538B51F3C134301CBBA"><enum>(h)</enum><header>Provision of
transfer of credit information in community college course
schedules</header><text>To the maximum extent practicable, each community
college receiving a grant under this section shall include in each electronic
and printed publication of the college’s course schedule, in a manner of the
college’s choosing, for each course listed in the college’s course schedule,
whether such course is transferable for credit toward the completion of a
4-year baccalaureate degree at a public institution of higher education in the
State in which the college is located.</text>
</subsection><subsection id="HF5C7A4910FB548BE94DE259C8217BD29"><enum>(i)</enum><header>Evaluation</header><text>The
Secretary shall allocate not more than two percent of the funds appropriated
under
<internal-xref idref="HD700BDBFBE57440C82688C28686E9A6E" legis-path="501.(b)(1)">section 501(b)(1)</internal-xref> to the Institute of
Education Sciences to conduct evaluations, ending not later than January 30,
2014, that—</text>
<paragraph id="H198391CCA1344357BF283A1B64268CAB"><enum>(1)</enum><text>assess the
effectiveness of the grant programs carried out by each eligible entity
receiving such a grant in—</text>
<subparagraph id="H26C704A89BCC497887FBFC6A57FD5A8A"><enum>(A)</enum><text>improving
postsecondary education completion rates (disaggregated by age, race,
ethnicity, sex, income, and disability);</text>
</subparagraph><subparagraph id="HF960279EEA8346A096A57EC24D214042"><enum>(B)</enum><text>improving
employment-related outcomes for students served by such programs;</text>
</subparagraph><subparagraph id="HBDBB0D226F3A44C1967CDFE773F38D60"><enum>(C)</enum><text>serving high-need
populations; and</text>
</subparagraph><subparagraph id="H68E319539F3741C39769FCEEBF2DE087"><enum>(D)</enum><text>building or
enhancing working partnerships with the State public employment service or
State or local workforce investment boards; and</text>
</subparagraph></paragraph><paragraph id="H2D11BA65C8464BD8BDC189A420128C8A"><enum>(2)</enum><text>include any other
information or assessments the Secretary may require.</text>
</paragraph></subsection><subsection id="H30B5A50E275E46C6BF77DAE97F689A6E"><enum>(j)</enum><header>Report</header><text>The
Secretary shall submit to the Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on Education and Labor of the House of
Representatives an annual report on grants awarded under this section,
including—</text>
<paragraph id="H9350904246724DD097D15A5FF9174A7B"><enum>(1)</enum><text>the amount awarded
to each eligible entity under this section;</text>
</paragraph><paragraph id="H3A3D8BB74F47442D999DD6BC0B6A533B"><enum>(2)</enum><text>a
description of the activities conducted by each eligible entity receiving a
grant under this section; and</text>
</paragraph><paragraph id="H5BD0D24AFC3B49AC88EFAC7643260DFB"><enum>(3)</enum><text>a
summary of the results of the evaluations submitted to the Secretary under
<internal-xref idref="HF5C7A4910FB548BE94DE259C8217BD29" legis-path="503.(i)">subsection (i)</internal-xref> and the progress each
eligible entity made toward achieving the benchmarks developed under
<internal-xref idref="HB40E317925584E9CB3C857484316010B" legis-path="503.(g)">subsection (g)</internal-xref>.</text>
</paragraph></subsection></section><section id="H2DE266443F7341F0A85A4DF4F8A4DFD3"><enum>504.</enum><header>Grants to
eligible States for community college programs</header>
<subsection id="HB9736E4CCF5C4A4FAD3FF41BC551A06F"><enum>(a)</enum><header>Program
Authorization</header><text display-inline="yes-display-inline">From the amount
appropriated to carry out this section, the Secretary, in coordination with the
Secretary of Labor, shall award grants to eligible States, on a competitive
basis, to implement the systematic reform of community colleges located in the
State by carrying out programs, services, and policies that demonstrated
effectiveness under the evaluation described in
<internal-xref idref="HF5C7A4910FB548BE94DE259C8217BD29" legis-path="503.(i)">section 503(i)</internal-xref>.</text>
</subsection><subsection id="HE1D60DAC6C1844FF830AAC8B7F9AC0E9"><enum>(b)</enum><header>Eligible
State</header><text>In this section, the term <term>eligible State</term> means
a State that demonstrates to the Secretary in the application submitted
pursuant to
<internal-xref idref="H12F8DD0C8ACC4092AA10A63946689B27" legis-path="504.(e)">subsection (f)</internal-xref> that the State—</text>
<paragraph id="H49BD81E31F184D42BD37AB439B628049"><enum>(1)</enum><text>has a plan under
section 782 of the Higher Education Act of 1965 to increase the State’s rate of
persistence in and completion of postsecondary education that takes into
consideration and involves community colleges located in such State;</text>
</paragraph><paragraph id="HFD634C39062C46B899F55607DB323202"><enum>(2)</enum><text>has a statewide
longitudinal data system that includes data with respect to community
colleges;</text>
</paragraph><paragraph id="H83F560FCE92045A492CFC6A5F68AE808"><enum>(3)</enum><text>has an
articulation agreement pursuant to section 486A of the Higher Education Act of
1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1093a">20 U.S.C.
1093a</external-xref>);</text>
</paragraph><paragraph id="H8CACF251565A4EA895ED56D14108F8E3"><enum>(4)</enum><text display-inline="yes-display-inline">is in compliance with section 137 of such
Act (<external-xref legal-doc="usc" parsable-cite="usc/20/1015f">20 U.S.C.
1015f</external-xref>); and</text>
</paragraph><paragraph id="H546762D08025498BBB8F6F429F4753A2"><enum>(5)</enum><text>meets any other
requirements the Secretary may require.</text>
</paragraph></subsection><subsection id="HE0BD28133FA34432963CF7C263CE75A0"><enum>(c)</enum><header>Grant duration;
renewal</header><text display-inline="yes-display-inline">A grant awarded under
this section shall be awarded to an eligible State for a 6-year period, except
that if the Secretary determines that the eligible State has not made
demonstrable progress in achieving the benchmarks developed pursuant to
subsection (h) by the end of the third year of the grant period, non further
grant funds shall be made available to the entity after the date of such
determination.</text>
</subsection><subsection id="H855B51A6EDE74D5B8788D271858B91BC"><enum>(d)</enum><header>Priority</header><text display-inline="yes-display-inline">In awarding grants under this section, the
Secretary shall give priority to applications focused on serving low-income,
nontraditional students (as defined in section 803(j) of the Higher Education
Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1161c">20
U.S.C. 1161c(j)</external-xref>)), students who are dislocated workers, or
students who are veterans, who do not have a bachelor’s degree.</text>
</subsection><subsection id="H58591FE0AC9042839F41B76FBEA8DC42"><enum>(e)</enum><header>Federal and
non-Federal share; Supplement, not supplant</header>
<paragraph id="H0D6B32ECFD774E4887E4A81B1443CB32"><enum>(1)</enum><header>Federal
share</header><text display-inline="yes-display-inline">The amount of the
Federal share under this section for a fiscal year shall be not greater than ½
of the costs of the reform described in
<internal-xref idref="HC7C0085444074C63B20D0170C1AD95C2" legis-path="504.(f)">subsection (g)</internal-xref> that is carried out with
the grant.</text>
</paragraph><paragraph id="H7FFB8D69773C4A87AD251D39832E91DB"><enum>(2)</enum><header>Non-Federal
share</header>
<subparagraph id="HBB3FCAB6786C4820B642E46A52EE8476"><enum>(A)</enum><header>In
general</header><text>The amount of the Non-Federal share under this section
for a fiscal year shall be not less than ½ of the costs of the reform described
in
<internal-xref idref="HC7C0085444074C63B20D0170C1AD95C2" legis-path="504.(f)">subsection (g)</internal-xref> that is carried out with
the grant. The non-Federal share may be in cash or in kind, and may be provided
from State resources, local resources, contributions from private
organizations, or a combination thereof.</text>
</subparagraph><subparagraph id="H174007E63ED84B0181E36E4F99BF5EE9"><enum>(B)</enum><header>Financial
hardship waiver</header><text display-inline="yes-display-inline">The Secretary
may waive or reduce the non-Federal share of an eligible State that has
submitted an application under this section if the State demonstrates a need
for such waiver or reduction due to extreme financial hardship, as defined by
the Secretary by regulation.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HB319B3A3EEFA4D3588CDA5900D04AF31"><enum>(3)</enum><header>Supplement, Not
supplant</header><text>The Federal and non-Federal share required by this
section shall be used to supplement, and not supplant, State and private
resources that would otherwise be expended to carry out the systematic reform
of community colleges in a State.</text>
</paragraph></subsection><subsection id="H12F8DD0C8ACC4092AA10A63946689B27"><enum>(f)</enum><header>Application</header><text display-inline="yes-display-inline">An eligible State desiring to receive a
grant under this section shall submit to the Secretary an application at such
time, in such manner, and containing such information as the Secretary may
require. Such application shall describe the programs, service, and policies to
be used by the State to achieve the systematic reform described in
<internal-xref idref="HC7C0085444074C63B20D0170C1AD95C2" legis-path="504.(f)">subsection (g)</internal-xref>, including—</text>
<paragraph id="HABA91340921D45BF9E691531114C1486"><enum>(1)</enum><text>the goals of such
programs, services, and policies;</text>
</paragraph><paragraph id="H7F3B433D40AB4172BEDE8DB17B5CABC3"><enum>(2)</enum><text>how the State will
allocate grant funds to carry out such programs, services, and policies,
including identifying any State or private entity that will administer such
programs, services, and policies;</text>
</paragraph><paragraph id="HAA789AFF92EE4089B6BE71FDAF005D61"><enum>(3)</enum><text>how such programs,
services, and policies will enable the State to—</text>
<subparagraph id="H0BA2373E6C164930AB3D4E8111FB178E"><enum>(A)</enum><text>meet the
benchmarks developed pursuant to
<internal-xref idref="H2C917BCF1FEB4FC883433E5FCE7F2BBC" legis-path="504.(g)">subsection (h)</internal-xref>, and how the State will
track and report the State’s progress in reaching such benchmarks; and</text>
</subparagraph><subparagraph id="HECA222E1F3C04D148BB4ABF970C1D4BB"><enum>(B)</enum><text>benefit students
attending all community colleges within the State;</text>
</subparagraph></paragraph><paragraph id="HED2F591EDF9B4170A22583C77CDC69DC"><enum>(4)</enum><text>how the State will
use such programs, services, and policies to establish quantifiable targets for
improving graduation rates and employment-related outcomes;</text>
</paragraph><paragraph id="HF52452D679B845CA84423CAFBFEA50CA"><enum>(5)</enum><text>how the State will
serve high-need populations through such programs, services, and
policies;</text>
</paragraph><paragraph id="H6B7CCBEB55CD4F83A1E7A5DE049A473E"><enum>(6)</enum><text>how the State will
partner with the State public employment service and State or local workforce
investment boards in carrying out such programs, services, and policies;</text>
</paragraph><paragraph id="HE4BFF9A42296493E824803A4A3912BA1"><enum>(7)</enum><text>how the State will
evaluate such programs, services, and policies, which may include participation
in national evaluations; and</text>
</paragraph><paragraph id="H23BC1B08A0C543CF8F61508CE433A960"><enum>(8)</enum><text>how the State will
involve community colleges and community college faculty in the planning,
implementation, and evaluation of such programs, services, and policies.</text>
</paragraph></subsection><subsection id="HC7C0085444074C63B20D0170C1AD95C2"><enum>(g)</enum><header>Uses of
funds</header><text display-inline="yes-display-inline">An eligible State
receiving a grant under this section shall use the grant funds to implement the
systematic reform of community colleges located in the State by carrying out
programs, services, and policies that the Secretary has determined to have
demonstrated effectiveness based on the results of the evaluation described in
<internal-xref idref="HF5C7A4910FB548BE94DE259C8217BD29" legis-path="503.(i)">section 503(i)</internal-xref>. States shall allocate not
less than 90 percent of such grant funds to community colleges within the
State.</text>
</subsection><subsection id="H2C917BCF1FEB4FC883433E5FCE7F2BBC"><enum>(h)</enum><header>Benchmarks</header>
<paragraph id="H032D1C8F54074086B3C0E51984DDCF68"><enum>(1)</enum><header>In
general</header><text>Each eligible State receiving a grant under this section
shall, in consultation with the Secretary, develop quantifiable benchmarks on
the indicators identified in
<internal-xref idref="HC182107C082542759AAF0B508B4216C8" legis-path="503.(f)(1)">section 503(g)(1)</internal-xref>.</text>
</paragraph><paragraph id="HE9AE48C2589C4C6E89CF9C937797BB82"><enum>(2)</enum><header>Progress</header><text>An
eligible State receiving such a grant shall annually measure and report to the
Secretary progress in achieving the benchmarks developed pursuant to
<internal-xref idref="H032D1C8F54074086B3C0E51984DDCF68" legis-path="504.(g)(1)">paragraph (1)</internal-xref>.</text>
</paragraph></subsection><subsection id="H4BAC154681C94008B7B31281502E8DA7"><enum>(i)</enum><header>Report</header>
<paragraph id="H40B93410446142E093081FA555BCE631"><enum>(1)</enum><header>Reports to the
Secretary</header><text>Each eligible State receiving a grant under this
section shall annually submit to the Secretary and the Secretary of Labor a
report on such grant, including—</text>
<subparagraph id="H2FD33F09ADA34FBB931FF04FCB855838"><enum>(A)</enum><text>a description of
the systematic reform carried out by the State using such grant; and</text>
</subparagraph><subparagraph id="H00AEA6D7808846CB8993F179D3CE273A"><enum>(B)</enum><text>the outcome of
such reform, including the State’s progress in achieving the benchmarks
developed under
<internal-xref idref="H2C917BCF1FEB4FC883433E5FCE7F2BBC" legis-path="504.(g)">subsection (h)</internal-xref>.</text>
</subparagraph></paragraph><paragraph id="H2911933D1CD14E3C8BBC05C35B402815"><enum>(2)</enum><header>Reports to
Congress</header><text display-inline="yes-display-inline">Not later than 6
months after the end of the grant period, the Secretary shall submit to the
Committee on Health, Education, Labor, and Pensions of the Senate and the
Committee on Education and Labor of the House of Representatives a summary of
the reports submitted under
<internal-xref idref="H40B93410446142E093081FA555BCE631" legis-path="504.(h)(1)">paragraph (1)</internal-xref> with respect to such
grant period.</text>
</paragraph></subsection><subsection commented="no" id="HA6A244A1705740AAAE9135FF7C0F9B29"><enum>(j)</enum><header>Sense of
Congress</header><text display-inline="yes-display-inline">It is the sense of
Congress that—</text>
<paragraph commented="no" id="H718147A1E3E24D188002A7286027D127"><enum>(1)</enum><text display-inline="yes-display-inline">community colleges play an important role
in preparing and training students seeking to enter the workforce;</text>
</paragraph><paragraph commented="no" id="H638108E62D3844388FF4A377F8B346BA"><enum>(2)</enum><text>it is vital that
all States have access to the resources and assistance needed to compete for
grants authorized under this section; and</text>
</paragraph><paragraph commented="no" id="HF53666AE346748248B0FD78B3B58F61D"><enum>(3)</enum><text>in executing the
grant program authorized under this section, the Secretary should make
available any and all assistance, guidance, and support to States seeking to
compete for grants authorized under this section and should work to ensure that
such grants are distributed in a fair and equitable manner.</text>
</paragraph></subsection></section><section id="HEE8EF2029EE84F3CBEF5393B17C45B96"><enum>505.</enum><header>National
activities</header>
<subsection id="H4295D2EAC759419A872AF4577F09F27B"><enum>(a)</enum><header>Open online
education</header><text display-inline="yes-display-inline">From the amount
appropriated to carry out this section, the Secretary is authorized to make
competitive grants to, or enter into contracts with, institutions of higher
education, philanthropic organizations, and other appropriate entities to
develop, evaluate, and disseminate freely-available high-quality online
courses, including instructional materials, for training and postsecondary
education readiness and success. Entities receiving funds under this subsection
shall ensure that electronic and information technology activities meet the
access standards established under section 508 of the Rehabilitation Act of
1973 (<external-xref legal-doc="usc" parsable-cite="usc/29/794d">29 U.S.C.
794d</external-xref>).</text>
</subsection><subsection id="H362F748FCAB4417D99AA66C18611941E"><enum>(b)</enum><header>Learning and
Earning Research Center</header>
<paragraph id="H42CE82A1F5FE4EE39D56C851E402DBE5"><enum>(1)</enum><header>In
general</header><text>From the amount appropriated to carry out this section,
the Director of the Institute of Education Sciences is authorized to award a
grant to, or enter into a contract with, an organization with demonstrated
expertise in the research and evaluation of community colleges to establish and
operate the Learning and Earning Research Center (in this section referred to
as the <quote>Center</quote>).</text>
</paragraph><paragraph id="HBBD870F4CAA44C54A989C85B3C5376D9"><enum>(2)</enum><header>Grant
term</header><text display-inline="yes-display-inline">The grant or contract
awarded under this section shall be awarded for a period of not more than 4
years.</text>
</paragraph><paragraph id="HAC07B52A46A1427B9BA8EE067CEB0F9D"><enum>(3)</enum><header>Board</header><text>The
Center shall have an independent advisory board of 9 individuals who—</text>
<subparagraph id="H280C7ACC5BE74D698997E71C76A95E9C"><enum>(A)</enum><text>are appointed by
the Secretary, based on recommendations from the organization receiving the
grant or contract under this section; and</text>
</subparagraph><subparagraph id="H34269AE41A2D4F72812A2A686C755E8A"><enum>(B)</enum><text>who have
demonstrated expertise in—</text>
<clause id="HAA40B12C54BB4D20B39324D7C3532670"><enum>(i)</enum><text>data
collection;</text>
</clause><clause id="HA01C4ADF5978429FBF28878A055FD73E"><enum>(ii)</enum><text>data analysis;
and</text>
</clause><clause id="H14B7B3B2173748EBBA9BA3FC07F91049"><enum>(iii)</enum><text>econometrics,
postsecondary education, and workforce development research.</text>
</clause></subparagraph></paragraph><paragraph id="H67B58F6F715C4601AE3257E6D85F953C"><enum>(4)</enum><header>Center
activities</header><text display-inline="yes-display-inline">The Center
shall—</text>
<subparagraph id="H3248EF227CAE4DEEB547709A4EC230E3"><enum>(A)</enum><text>develop—</text>
<clause id="H6EAFA77521C84846B4FEF60BB08A2517"><enum>(i)</enum><text display-inline="yes-display-inline">peer-reviewed metrics to help consumers
make sound education and training choices, and to help students, faculty,
workers, schools, businesses, researchers, and policymakers assess the
effectiveness of community colleges, and courses of study at such colleges, in
meeting education and employment objectives and serving groups that are
underrepresented in postsecondary education;</text>
</clause><clause id="HEAB7286C4F3F411E99036E887766482D"><enum>(ii)</enum><text>common metrics
and data elements to measure the education and employment outcomes of students
attending community colleges;</text>
</clause></subparagraph><subparagraph id="H91B7C021967A45159F32A0E9CACA2278"><enum>(B)</enum><text>coordinate with
the Institute of Education Sciences and States receiving a grant under
<internal-xref idref="HC7C290C48702431D9311B73E73FE397A" legis-path="505.(c)">subsection (c)</internal-xref> to develop—</text>
<clause id="H281D9D42411547A7892A789D3584E48B"><enum>(i)</enum><text>standardized data
elements, definitions, and data-sharing protocols to make it possible for data
systems related to postsecondary education to be linked and interoperable, and
for best practices to be shared among States;</text>
</clause><clause id="H9A22CCFD795449C3BFB9666D7B032DF4"><enum>(ii)</enum><text>standards and
processes for facilitating sharing of data in a manner that safeguards student
privacy;</text>
</clause></subparagraph><subparagraph id="HE18D1D8683DF4F45A6829790D04A65A2"><enum>(C)</enum><text>develop and make
widely available materials analyzing best practices and research on successful
postsecondary education and training efforts;</text>
</subparagraph><subparagraph id="H624AA88AC7E44032B234337B7D2F0D74"><enum>(D)</enum><text display-inline="yes-display-inline">make the data and metrics developed
pursuant to
<internal-xref idref="H3248EF227CAE4DEEB547709A4EC230E3" legis-path="505.(b)(4)(A)">subparagraph (A)</internal-xref> available to the
public in a transparent, user-friendly format that is accessible to individuals
with disabilities; and</text>
</subparagraph><subparagraph id="HA0CD823EDE234F93BF46B58CE59F70E7"><enum>(E)</enum><text>consult with
representatives from States with respect to the activities of the
Center.</text>
</subparagraph></paragraph></subsection><subsection id="HC7C290C48702431D9311B73E73FE397A"><enum>(c)</enum><header>State
systems</header>
<paragraph id="HFE39FD81E5FD4E548D7BDE8A5711DB11"><enum>(1)</enum><header>In
general</header><text>From the amount appropriated to carry out this section,
the Secretary is authorized to award grants to States or consortia of States to
establish cooperative agreements to develop, implement, and expand
interoperable statewide longitudinal data systems that—</text>
<subparagraph id="H814601D26B9941C4B99C71E5A3907473"><enum>(A)</enum><text>collect, maintain,
disaggregate (by institution, income, race, ethnicity, sex, disability, and
age), and analyze student data from community colleges, including data on the
programs of study and education and employment outcomes for particular
students, tracked over time; and</text>
</subparagraph><subparagraph id="H7FEC2E2B6AB7486F94F1841317ACA33B"><enum>(B)</enum><text>can be linked to
other data systems, as applicable, including elementary and secondary education
and workforce data systems.</text>
</subparagraph></paragraph><paragraph id="HDB70F796FACF41558F6B16AF86BF3D90"><enum>(2)</enum><header>Supplement, not
supplant</header><text>Funds appropriated to carry out this subsection shall be
used to supplement, and not supplant, other Federal and State resources that
would otherwise be expended to carry out statewide longitudinal data systems,
including funding appropriated for State Longitudinal Data Systems in the
American Recovery and Reinvestment Act of 2009 (<external-xref legal-doc="public-law" parsable-cite="pl/111/5">Public Law
111–5</external-xref>; 123 Stat. 115).</text>
</paragraph><paragraph id="HBD078A7879D64593AD2A0019D5BACE0C"><enum>(3)</enum><header>Privacy and
access to data</header>
<subparagraph id="H3E4F124382B246C0897975F23E7DE09D"><enum>(A)</enum><header>In
general</header><text>Each State or consortia that receives a grant under this
subsection or any other provision of this Act shall implement measures
to—</text>
<clause id="H0A5D62EC832844E485AFD4A3037200E8"><enum>(i)</enum><text>ensure that the
statewide longitudinal data system under this subsection and any other data
system the State or consortia is operating for the purposes of this Act meet
the requirements of section 444 of the General Education Provisions Act
(<external-xref legal-doc="usc" parsable-cite="usc/20/1232g">20 U.S.C.
1232g</external-xref>) (commonly known as the <quote>Family Educational Rights
and Privacy Act of 1974</quote>);</text>
</clause><clause id="H59ADDDB2FD1844B298E98780F40C4874"><enum>(ii)</enum><text>limit the use of
information in any such data system by governmental agencies in the State,
including State agencies, State educational authorities, local educational
agencies, community colleges, and institutions of higher education, to
education and workforce related activities under this Act or education and
workforce related activities otherwise permitted by Federal or State
law;</text>
</clause><clause id="HD8E7D1C3B0474CE6806A00AD9FC67B99"><enum>(iii)</enum><text>prohibit the
disclosure of personally identifiable information except as permitted under
section 444 of the General Education Provisions Act and any additional
limitations set forth in State law;</text>
</clause><clause id="HA60FF8B580EA4E6FA7B1E49A35BC559A"><enum>(iv)</enum><text>keep an accurate
accounting of the date, nature, and purpose of each disclosure of personally
identifiable information in any such data system, a description of the
information disclosed, and the name and address of the person, agency,
institution, or entity to whom the disclosure is made, which accounting shall
be made available on request to parents of any student whose information has
been disclosed;</text>
</clause><clause id="HA95BF88091BE42C093A7E098C06C07A4"><enum>(v)</enum><text>notwithstanding
section 444 of the General Education Provisions Act, require any
non-governmental party obtaining personally identifiable information to sign a
data use agreement prior to disclosure that—</text>
<subclause id="H7974E0659A4549C695322607778B7853"><enum>(I)</enum><text>prohibits the
party from further disclosing the information;</text>
</subclause><subclause id="HCF1CC7414C7A4DA3915707CD2E95ABF3"><enum>(II)</enum><text>prohibits the
party from using the information for any purpose other than the purpose
specified in the agreement; and</text>
</subclause><subclause id="HA5D986468A6C4BF4952654706249D2A2"><enum>(III)</enum><text>requires the
party to destroy the information when the purpose for which the disclosure was
made is accomplished;</text>
</subclause></clause><clause id="H661CC3BF74D640C9BB36EFA2803DDFE5"><enum>(vi)</enum><text>maintain adequate
security measures to ensure the confidentiality and integrity of any such data
system, such as protecting a student record from identification by a unique
identifier;</text>
</clause><clause id="H1A83B5F2CA244538A5ECBF8D88024636"><enum>(vii)</enum><text>where rights are
provided to parents under this clause, provide those rights to the student
instead of the parent if the student has reached the age of 18 or is enrolled
in a postsecondary educational institution; and</text>
</clause><clause id="H52223619B5E148F28EBBE8DCF8729A0B"><enum>(viii)</enum><text>ensure adequate
enforcement of the requirements of this paragraph.</text>
</clause></subparagraph><subparagraph id="H26842F27C87C4FFEA5D2B9A64B1CCC6A"><enum>(B)</enum><header>Use of unique
identifiers</header><text>It shall be unlawful for any Federal, State, or local
governmental agency to—</text>
<clause id="H28B5D566AB774C7CACAB8B70152FC635"><enum>(i)</enum><text>use
the unique identifiers employed in such data systems for any purpose other than
as authorized by Federal or State law; or</text>
</clause><clause id="H49AFC461FC1245D499F2AFA34B9095CF"><enum>(ii)</enum><text>deny any
individual any right, benefit, or privilege provided by law because of such
individual’s refusal to disclose the individual’s unique identifier.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H931FCE12A79042EDB9F5B7AEC1FEBA61"><enum>(d)</enum><header>Evaluation</header><text display-inline="yes-display-inline">From the amounts appropriated to carry out
this section, the Secretary shall, not later than 30 days after the date of the
enactment of this Act, allocate not less than $1,000,000 for the contract with,
and report by, the National Research Council required under section 1107(c)(2)
of the Higher Education Opportunity Act (<external-xref legal-doc="public-law" parsable-cite="pl/110/315">Public Law 110–315</external-xref>).</text>
</subsection><subsection id="H8D3FD079B7FB47469F565C984D22D148"><enum>(e)</enum><header>Model to
determine credit transferability</header><text>From the amounts appropriated to
carry out this section, the Secretary may develop a model, which leverages
existing technologies if appropriate, of a service that enables students to
determine the transferability of credits between institutions of higher
education voluntarily participating in such service.</text>
</subsection><subsection id="HCF7C621A935E45BD9139BCD9853C8F7E"><enum>(f)</enum><header>Report</header><text>The
Secretary shall submit to the Committee on Health, Education, Labor, and
Pensions of the Senate and the Committee on Education and Labor of the House of
Representatives an annual report on the amounts awarded to entities receiving
grants or contracts under this section, and the activities carried out by such
entities under such grants and contracts.</text>
</subsection></section><enum>VI</enum><header>Defund ACORN
Act</header>
<section id="H43039587390D47E6A8CA13DED0FF1AFE"><enum>601.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Defund ACORN
Act</short-title></quote>.</text>
</section><section display-inline="no-display-inline" id="HDB9431DA5B7C4EFE948CD3673CEE5428" section-type="subsequent-section"><enum>602.</enum><header>Prohibitions on
Federal funds and other activities with respect to certain indicted
organizations</header>
<subsection id="H1E413A4AE1F34BF29A48F7785B07B3CD"><enum>(a)</enum><header>Prohibitions</header><text display-inline="yes-display-inline">With respect to any covered organization,
the following prohibitions apply:</text>
<paragraph id="H71716B7C6DFA4F17A6AD0E83F3A0E3FA"><enum>(1)</enum><text>No Federal
contract, grant, cooperative agreement, or any other form of agreement
(including a memorandum of understanding) may be awarded to or entered into
with the organization.</text>
</paragraph><paragraph id="HB94516329CA5444CBEC50D55D95D9913"><enum>(2)</enum><text>No Federal funds
in any other form may be provided to the organization.</text>
</paragraph><paragraph id="H4BC2B4BD5827464D85AA82BCF332108B"><enum>(3)</enum><text>No Federal
employee or contractor may promote in any way (including recommending to a
person or referring to a person for any purpose) the organization.</text>
</paragraph></subsection><subsection id="HB0D017A30E3A4ACB8F04EB77AA5C3839"><enum>(b)</enum><header>Covered
organization</header><text display-inline="yes-display-inline">In this section,
the term <term>covered organization</term> means any of the following:</text>
<paragraph id="HA0A2905F10924B64AF06FBE837CB6EC3"><enum>(1)</enum><text>Any organization
that has been indicted for a violation under any Federal or State law governing
the financing of a campaign for election for public office or any law governing
the administration of an election for public office, including a law relating
to voter registration.</text>
</paragraph><paragraph commented="no" id="H71CBCD3A23DB4D55A54C163763A22BB8"><enum>(2)</enum><text>Any organization
that had its State corporate charter terminated due to its failure to comply
with Federal or State lobbying disclosure requirements.</text>
</paragraph><paragraph commented="no" id="H1AACFFF714BC45989263897C405BCA53"><enum>(3)</enum><text>Any organization
that has filed a fraudulent form with any Federal or State regulatory
agency.</text>
</paragraph><paragraph id="H137DCCEE74E84E57A397BD31991EA318"><enum>(4)</enum><text>Any organization
that—</text>
<subparagraph id="HA3FBCB096953444492E4D7E967E8CB62"><enum>(A)</enum><text>employs any
applicable individual, in a permanent or temporary capacity;</text>
</subparagraph><subparagraph id="H580CAFCDB30B48948AFFA7934C983ED1"><enum>(B)</enum><text>has under contract
or retains any applicable individual; or</text>
</subparagraph><subparagraph id="HE3A7B993C5DB4222A6B869065B2E0D09"><enum>(C)</enum><text>has any applicable
individual acting on the organization’s behalf or with the express or apparent
authority of the organization.</text>
</subparagraph></paragraph></subsection><subsection id="HD867E46B228A4FC2BBE04417D24B96E5"><enum>(c)</enum><header>Additional
definitions</header><text>In this section:</text>
<paragraph id="HE185C6F4D7C94E66BDD71CF1E5D85A51"><enum>(1)</enum><text>The term
<term>organization</term> includes the Association of Community Organizations
for Reform Now (in this subsection referred to as <term>ACORN</term>) and any
ACORN-related affiliate.</text>
</paragraph><paragraph id="HC2E18848B4A54F598243A85D41C30A1C"><enum>(2)</enum><text>The term
<term>ACORN-related affiliate</term> means any of the following:</text>
<subparagraph id="HBD73ABF0398446E5A579A6DC3B04EACB"><enum>(A)</enum><text>Any State chapter
of ACORN registered with the Secretary of State’s office in that State.</text>
</subparagraph><subparagraph id="H8D12C514DE27408C8434B5BCF2810B9B"><enum>(B)</enum><text>Any organization
that shares directors, employees, or independent contractors with ACORN.</text>
</subparagraph><subparagraph id="HD1E793523F1F491FA1EC18218036718F"><enum>(C)</enum><text>Any organization
that has a financial stake in ACORN.</text>
</subparagraph><subparagraph id="H9889492A862B422E8CBD5AC3DA8FABEC"><enum>(D)</enum><text>Any organization
whose finances, whether federally funded, donor-funded, or raised through
organizational goods and services, are shared or controlled by ACORN.</text>
</subparagraph></paragraph><paragraph id="H838E0874FDE840BEADED3C33DD1BEB4E"><enum>(3)</enum><text>The term
<term>applicable individual</term> means an individual who has been indicted
for a violation under Federal or State law relating to an election for Federal
or State office.</text>
</paragraph></subsection><subsection id="H2FA82F594CA44492804AE4EFAEB2EB9F"><enum>(d)</enum><header>Revision of
Federal Acquisition Regulation</header><text>The Federal Acquisition Regulation
shall be revised to carry out the provisions of this title relating to
contracts.</text>
</subsection></section>
Passed the House of
Representatives September 17, 2009.
Lorraine C. Miller,
Clerk.