[Congressional Record Volume 144, Number 90 (Thursday, July 9, 1998)]
[Senate]
[Pages S7888-S7892]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  HIGHER EDUCATION AMENDMENTS OF 1998

                                 ______
                                 

                  DODD (AND OTHERS) AMENDMENT NO. 3113

  Mr. DODD (for himself, Mr. Warner, Mr. Hagel, and Mr. Robb) proposed 
an

[[Page S7889]]

amendment to the bill, S. 1882, supra; as follows:

       On page 1, after line 14, insert:
       (c) Section 102(b)(2)(D) of the Arms Export Control Act is 
     further amended in clause (ii) by inserting after the word 
     ``to'' the following words: ``medicines, medical equipment, 
     and,''
       Renumber succeeding subsections accordingly.
                                 ______
                                 

                SANTORUM (AND OTHERS) AMENDMENT NO. 3114

  Mr. SANTORUM (for himself, Mr. DeWine, and Mr. Coverdell) proposed an 
amendment to the bill, S. 1882, supra; as follows:

       On page 466, between lines 19 and 20, insert the following:
       (2) in paragraph (2)--
       (A) in subparagraph (A), by striking ``proof that 
     reasonable attempts were made'' and inserting ``proof that 
     the institution was contacted and other reasonable attempts 
     were made''; and
       (B) in subparagraph (G), by striking ``certifies to the 
     Secretary that diligent attempts have been made'' and 
     inserting ``certifies to the Secretary that diligent 
     attempts, including contact with the institution, have been 
     made''.
       On page 494, between lines 20 and 21, insert the following:

     SEC. 434. NOTICE TO SECRETARY AND PAYMENT OF LOSS.

       The third sentence of section 430(a) (20 U.S.C. 1080(a)) is 
     amended by inserting ``the institution was contacted and 
     other'' after ``submit proof that''.
       On page 501, between lines 14 and 15, insert the following:
       (d) Publication Date.--Section 435(m)(4) (20 U.S.C. 
     1085(m)(4)) is amended by adding at the end the following:
       ``(D) The Secretary shall publish the report described in 
     subparagraph (C) by September 30 of each year.''.
       At the end, add the following:

     SEC. __. LIAISON FOR PROPRIETARY INSTITUTIONS OF HIGHER 
                   EDUCATION.

       Title II of the Department of Education Organization Act 
     (20 U.S.C. 3411 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 219. LIAISON FOR PROPRIETARY INSTITUTIONS OF HIGHER 
                   EDUCATION.

       ``(a) Establishment.--There shall be in the Department a 
     Liaison for Proprietary Institutions of Higher Education, who 
     shall be an officer of the Department appointed by the 
     Secretary.
       ``(b) Appointment.--The Secretary shall appoint, not later 
     than 6 months after the date of enactment of the Higher 
     Education Amendments of 1998 a Liaison for Proprietary 
     Institutions of Higher Education who shall be a person who--
       ``(1) has attained a certificate or degree from a 
     proprietary institution of higher education; or
       ``(2) has been employed in a proprietary institution 
     setting for not less than 5 years.
       ``(c) Duties.--The Liaison for Proprietary Institutions of 
     Higher Education shall--
       ``(1) serve as the principal advisor to the Secretary on 
     matters affecting proprietary institutions of higher 
     education;
       ``(2) provide guidance to programs within the Department 
     that involve functions affecting proprietary institutions of 
     higher education; and
       ``(3) work with the Federal Interagency Committee on 
     Education to improve the coordination of--
       ``(A) the outreach programs in the numerous Federal 
     departments and agencies that administer education and job 
     training programs;
       ``(B) collaborative business and education partnerships; 
     and
       ``(C) education programs located in, and involving, rural 
     areas.''.
                                 ______
                                 

                SESSIONS (AND OTHERS) AMENDMENT NO. 3115

  Mr. SESSIONS (for himself, Mr. Graham, Mr. McConnell, and Mr. 
Coverdell) proposed an amendment to the bill, S. 1882, supra; as 
follows:

       At the end add the following:

     SEC. __. ELIGIBLE EDUCATIONAL INSTITUTIONS PERMITTED TO 
                   MAINTAIN QUALIFIED TUITION PROGRAMS.

       (a) In General.--Section 529(b)(1) of the Internal Revenue 
     Code of 1986 (defining qualified State tuition program) is 
     amended by inserting ``or by 1 or more eligible educational 
     institutions or any organization exempt from taxation under 
     this subtitle that consists solely of eligible educational 
     institutions'' after ``maintained by a State or agency or 
     instrumentality thereof''.
       (b) Conforming Amendments.--
       (1) The text and headings of each of the sections 72(e)(9), 
     135(c)(2(C), 135(d)(1)(D), 529, 530(b)(2)(B), 4973(e), and 
     6693(a)(2)(c) of the Internal Revenue Code of 1986 is amended 
     by striking ``qualified State tuition'' each place it appears 
     and inserting ``qualified tuition''.
       (2)(A) The section heading of section 529 of such Code is 
     amended to read as follows:

     ``SEC. 529. QUALIFIED TUITION PROGRAMS.''.

       (B) The item relating to section 529 in the table of 
     sections for part VIII of subchapter F of chapter 1 of such 
     Code is amended by striking ``State''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1998.

     SEC. __. EXCLUSION FROM GROSS INCOME OF EDUCATION 
                   DISTRIBUTIONS FROM QUALIFIED STATE TUITION 
                   PROGRAMS.

       (a) In General.--Section 529(c)(3)(B) of the Internal 
     Revenue Code of 1986 (relating to distributions) is amended 
     to read as follows:
       ``(B) Distributions for qualified higher education 
     expenses.--
       ``(i) In general.--If a distributee elects the application 
     of this clause for any taxable year--

       ``(I) no amount shall be includible in gross income under 
     subparagraph (A) by reason of a distribution which consists 
     of providing a benefit to the distributee which, if paid for 
     by the distributee, would constitute payment of a qualified 
     higher education expense, and
       ``(II) the amount which (but for the election) would be 
     includible in gross income under subparagraph (A) by reason 
     of any other distribution shall not be so includible in an 
     amount which bears the same ratio to the amount which would 
     be so includible as such expenses bear to such aggregate 
     distributions.

       ``(ii) In-kind distributions.--Any benefit furnished to a 
     designated beneficiary under a qualified State tuition 
     program shall be treated as a distribution to the beneficiary 
     for purposes of this paragraph.
       ``(iii) Disallowance of excluded amounts as credit or 
     deduction.--No deduction or credit shall be allowed to the 
     taxpayer under any other section of this chapter for any 
     qualified higher education expenses to the extent taken into 
     account in determining the amount of the exclusion under this 
     subparagraph.''.
       (b) Additional Tax on Amounts Not Used for Higher Education 
     Expenses.--Section 529(c)(3) of the Internal Revenue Code of 
     1986 (relating to distributions) is amended by adding at the 
     end the following:
       ``(E) Additional tax on amounts not used for higher 
     education expenses.--The tax imposed by section 530(d)(4) 
     shall apply to payments and distributions from qualified 
     tuition programs in the same manner as such tax applies to 
     education individual retirement accounts.''.
       (c) Coordination With Education Credits.--Section 25A(e)(2) 
     of the Internal Revenue Code of 1986 (relating to 
     coordination with exclusions) is amended--
       (1) by inserting ``a qualified tuition program or'' before 
     ``an education individual retirement account'', and
       (2) by striking ``section 530(d)(2)'' and inserting 
     ``section 529(c)(3)(B) or 530(d)(2)''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to distributions made after December 31, 2003, 
     for education furnished in academic periods beginning after 
     such date.

     SEC. __. QUALIFIED TUITION PROGRAMS INCLUDED IN SECURITIES 
                   EXEMPTION.

       (a) Exempted Securities.--Section 3(a)(4) of the Securities 
     Act of 1933 (15 U.S.C. 77c(a)(4)) is amended by striking 
     ``individual;'' and inserting ``individual or any security 
     issued by a prepaid tuition program described in section 529 
     of the Internal Revenue Code of 1986;''.
       (b) Qualified Tuition Programs Not Investment Companies.--
     Section 3(c) of the Investment Company Act of 1940 (15 U.S.C. 
     80a-3(c)) is amended by adding at the end the following:
       ``(15) Any prepaid tuition program described in section 529 
     of the Internal Revenue Code of 1986.''.
                                 ______
                                 

                BINGAMAN (AND OTHERS) AMENDMENT NO. 3116

  Mr. BINGAMAN (for himself, Mr. Cochran, Mr. Reid, and Mr. Hollings) 
proposed an amendment to the bill, S. 1882, supra; as follows:

       Insert at the end of Title II, Part A (page 237, after line 
     14):

     ``SEC. 237. ACADEMIC MAJORS FOR SECONDARY SCHOOL TEACHERS.

       ``(a) States and postsecondary programs that prepare 
     secondary school teachers and receive Federal funds under 
     this Act excluding aid provided under Title IV, shall, unless 
     they have already done so, adopt within 3 years after the 
     date of enactment of the Higher Education Amendments of 1998 
     a policy that all undergraduate candidates preparing to be 
     secondary school teachers be required to successfully 
     complete an academic major, as defined by the institution of 
     higher education at which the student attends, in the 
     academic area in which they plan to teach.''
       ``(b) Nothing in this Section shall affect the eligibility 
     of an individual student or an institution of higher 
     education to receive Federal grants or loans under Title IV 
     under this Act.''
                                 ______
                                 

                  WARNER (AND ROBB) AMENDMENT NO. 3117

  Mr. WARNER (for himself and Mr. Robb) proposed an amendment to the 
bill, S. 1882, supra; as follows:

       At the appropriate place insert:
       Nothing in this bill shall be construed to prohibit an 
     institution of postsecondary education from disclosing, to a 
     parent of a student, imformation regarding violation of any 
     federal, state, or local laws governing the use or possession 
     of alcohol or drugs, whether or not that information is 
     contained in

[[Page S7890]]

     the student's education records, if the student is under the 
     age of 21.
                                 ______
                                 

                  HARKIN (AND REID) AMENDMENT NO. 3118

  Mr. HARKIN (for himself and Mr. Reid) proposed an amendment to the 
bill, S. 1882, supra; as follows:

       At the appropriate place in title IV, insert the following:

     SEC. __. REDUCTION IN STUDENT LOAN FEES.

       (a) Federal Direct Stafford Loans.--Section 455(c) (20 
     U.S.C. 1087e(c)) is amended by inserting ``, except that the 
     Secretary shall charge the borrower of a Federal Direct 
     Stafford Loan an origination fee in the amount of 3.0 percent 
     of the principal amount of the loan'' before the period.
       (b) Subsidized Federal Stafford Loans.--
       (1) Amendment.--Subparagraph (H) of section 428(b)(1) (20 
     U.S.C. 1078(b)(1)) is amended--
       (A) by striking ``not more than''; and
       (B) by striking ``will not be used for incentive payments 
     to lenders'' and inserting ``shall be paid to the Federal 
     Government for deposit in the Treasury''.
       (2) Repeal.--Subparagraph (H) of section 428(b)(1) (20 
     U.S.C. 1078(b)(1)) is repealed.
       (c) Unsubsidized Stafford Loan and PLUS Loan Insurance 
     Premium Redirection.--
       (1) Unsubsidized stafford loans.--Section 428H(h) (20 
     U.S.C. 1078-8(h)) is amended--
       (A) by striking ``may'' and inserting ``shall'';
       (B) by striking ``not more than'';
       (C) by striking ``, if such premium will not be used for 
     incentive payments to lenders''; and
       (D) by inserting at the end the following: ``The proceeds 
     of the insurance premium shall be paid to the Federal 
     Government for deposit into the Treasury.''.
       (2) PLUS loans.--Section 428B (20 U.S.C. 1078-2) is amended 
     by adding after subsection (f) (as added by section 427(2)) 
     the following:
       ``(g) Insurance Premium.--Each State or nonprofit private 
     institution or organization having an agreement with the 
     Secretary under section 428(b)(1) shall charge the borrower 
     of a loan made under this section a single insurance premium 
     in the amount of 1 percent of the principal amount of the 
     loan. The proceeds of the insurance premium shall be paid to 
     the Federal Government for deposit into the Treasury.''.
       (d) Effective Dates.--
       (1) Subsection (b)(1).--The amendments made by subsection 
     (b)(1) shall take effect on the date of enactment of this 
     Act.
       (2) Subsections (a) and (b)(2).--The amendments made by 
     subsections (a) and (b)(2) shall take effect on July 1, 1999.
       (3) Subsection (c).--The amendments made by subsection (c) 
     shall take effect on October 1, 1998.
                                 ______
                                 

                       KENNEDY AMENDMENT NO. 3119

  Mr. KENNEDY proposed an amendment to the bill, S. 1882, supra; as 
follows:

       On page 458, between lines 2 and 3, insert the following:

     SEC. 425. MARKET-BASED DETERMINATIONS OF LENDER RETURNS.

       Part B of title IV (20 U.S.C. 1071 et seq.) is amended by 
     inserting after section 427A the following:

     ``SEC. 427B. MARKET-BASED DETERMINATIONS OF LENDER RETURNS.

       ``(a) Findings.--Congress finds that--
       ``(1) in the field of consumer lending, market forces have 
     resulted in increased quality of services and decreased 
     prices, and more extensive application of market forces to 
     the Robert T. Stafford Federal Student Loan Program should be 
     explored;
       ``(2) Federal subsidies to lenders making or holding loans 
     made, insured, or guaranteed under this part should not 
     exceed the level necessary to ensure that all eligible 
     borrowers have access to loans under this part;
       ``(3) setting the level of lender returns necessary to 
     achieve the objective described in paragraph (2) in statute 
     is necessarily inexact and insufficiently flexible to respond 
     to market forces, and therefore lender returns should be 
     determined through the use of market-based mechanisms;
       ``(4) alternative market-based mechanisms must be tested 
     before a final selection is made as to the particular 
     mechanism to be used for all loans made, insured, or 
     guaranteed under this part;
       ``(5) the results of testing alternative market-based 
     mechanisms should be evaluated independently; and
       ``(6) if the independent evaluation concludes that the 
     testing of alternative market-based mechanisms has been 
     successful, a market-based mechanism to determine lender 
     returns on all loans made, insured, or guaranteed under this 
     part should be implemented as expeditiously as possible.
       ``(b) Joint Planning Study To Select Auction-Based 
     Mechanisms for Testing.--
       ``(1) Planning study.--The Secretary and the Secretary of 
     the Treasury jointly shall conduct a planning study, in 
     consultation with the Office of Management and Budget, the 
     Congressional Budget Office, the General Accounting Office, 
     and other individuals and entities the Secretary determines 
     appropriate, to--
       ``(A) examine the matters described in paragraph (2) in 
     order to determine which auction-based mechanisms for 
     determining lender returns on loans made, insured, or 
     guaranteed under this part shall be tested under the pilot 
     programs described in subsection (c); and
       ``(B) determine what related administrative and other 
     changes will be required in order to ensure that high-quality 
     services are provided under a successful implementation of 
     auction-based determinations of lender returns for all loans 
     made, insured, or guaranteed under this part.
       ``(2) Matters examined.--The planning study under this 
     subsection shall examine--
       ``(A) whether it is most appropriate to auction existing 
     loans under this part, to auction the rights to originate 
     loans under this part, or a combination thereof;
       ``(B) whether it is preferable to auction parcels of such 
     loans or rights, that are similar or diverse in terms of loan 
     or borrower characteristics;
       ``(C) how to ensure that statutory, regulatory, or 
     administrative requirements do not impede separate management 
     and ownership of loans under this part; and
       ``(D) what is the appropriate allocation of risk between 
     the Federal Government and the owners of loans under this 
     part with respect to interest rates and nonpayment, or late 
     payment, of loans;
       ``(3) Mechanisms.--In determining which auction-based 
     mechanisms are the most promising models to test in the pilot 
     programs under subsection (c), the planning study shall take 
     into account whether a particular auction-based mechanism 
     will--
       ``(A) reduce Federal costs if used on a program-wide basis;
       ``(B) ensure loan availability under this part to all 
     eligible students at all participating institutions;
       ``(C) minimize administrative complexity for borrowers, 
     institutions, lenders, and the Federal Government; and
       ``(D) facilitate the participation of a broad spectrum of 
     lenders and ensure healthy long-term competition in the 
     program under this part.
       ``(4) Report.--A report on the results of the planning 
     study, together with a plan for implementing 1 or more pilot 
     programs using promising auction-based approaches for 
     determining lender returns, shall be transmitted to Congress 
     not later than April 1, 1999.
       ``(c) Pilot Programs.--
       ``(1) Authorization.--
       ``(A) In general.--Notwithstanding any other provision of 
     this title, after the report described in subsection (b)(4) 
     is transmitted to Congress, the Secretary is authorized, in 
     consultation with the Secretary of the Treasury, to begin 
     preparations necessary to carry out pilot programs meeting 
     the requirements of this subsection in accordance with the 
     implementation plan included in the report.
       ``(B) Determination.--Before commencing the implementation 
     of the pilot programs, the Secretary shall determine that 
     such implementation is consistent with enhancing--
       ``(i) the modernization of the student financial assistance 
     delivery systems;
       ``(ii) service to students and institutions of higher 
     education; and
       ``(iii) competition within the program under this part.
       ``(C) Implementation date.-- The Secretary may commence 
     implementation of the pilot programs under this subsection 
     not earlier than 120 days after the report is transmitted to 
     Congress under subsection (b)(4).
       ``(D) Duration and loan volume.--The pilot programs under 
     this subsection shall be not more than 2 years in duration, 
     and the Secretary may use the pilot programs to determine the 
     lender returns for not more than 10 percent of the annual 
     loan volume under this part during each of the first and 
     second years of the pilot programs under this subsection.
       ``(2) Requirements.--In carrying out pilot programs under 
     this subsection, the Secretary--
       ``(A) shall use auction-based approaches, in which lenders 
     bid competitively for the loans under this part, or rights to 
     originate such loans (such as a right of first refusal to 
     originate loans to borrowers at a particular institution, or 
     a right to originate loans to all such borrowers remaining 
     after a right of first refusal has been exercised), as the 
     Secretary shall determine;
       ``(B) may determine the payments to lenders, and the terms, 
     applicable to lenders, of the rights or loans, as the case 
     may be, for which the lenders bid; and
       ``(C) shall include loans of different amounts and loans 
     made to different categories of borrowers, but the 
     composition of the parcels of loans or rights in each auction 
     under a pilot program may vary from parcel-to-parcel to the 
     extent that the Secretary determines appropriate.
       ``(3) Voluntary participation.--Participation in a pilot 
     program under this subsection shall be voluntary for eligible 
     institutions and eligible lenders.
       ``(4) Independent evaluation.--The Secretary shall enter 
     into a contract with a non-Federal entity for the conduct of 
     an independent evaluation of the pilot programs, which 
     evaluation shall be completed, and the results of the 
     evaluation submitted to the Secretary, the Secretary of the 
     Treasury, and Congress, not later than 120 days after the 
     termination of the pilot programs under this subsection.
       ``(d) Consultation.--

[[Page S7891]]

       ``(1) In general.--As part of the planning study and pilot 
     programs described in this section, the Secretary shall 
     consult with lenders, secondary markets, guaranty agencies, 
     institutions of higher education, student loan borrowers, 
     other participants in the student loan programs under this 
     title, and other individuals or entities with pertinent 
     technical expertise. The Secretary shall engage in such 
     consultations using such methods as, and to the extent that, 
     the Secretary determines appropriate to the time constraints 
     associated with the study and programs. The Federal Advisory 
     Committee Act (5 U.S.C. App.) shall not apply to such 
     consultations.
       ``(2) Services of other federal agencies.--In carrying out 
     the planning study and pilot programs described in this 
     section, the Secretary may use, on a reimbursable basis, the 
     services (including procurement authorities and services), 
     equipment, personnel, and facilities of other agencies and 
     instrumentalities of the Federal Government.''.
       On page 457, line 23, strike ``The'' and insert ``Except as 
     the Secretary of Education may otherwise provide under 
     section 427B of the Higher Education Act of 1965, the''.
       On page 505, strike line 5 and all that follows through 
     page 506, line 16.
                                 ______
                                 

                      JEFFORDS AMENDMENT NO. 3120

  Mr. JEFFORDS proposed an amendment to the bill, S. 1882, supra; as 
follows:

       At the end of title VII, insert the following:

     SEC. __. RELEASE OF CONDITIONS, COVENANTS, AND REVERSIONARY 
                   INTERESTS, GUAM COMMUNITY COLLEGE CONVEYANCE, 
                   BARRIGADA, GUAM.

       (a) Release.--The Secretary of Education shall release all 
     conditions and covenants that were imposed by the United 
     States, and the reversionary interests that were retained by 
     the United States, as part of the conveyance of a parcel of 
     Federal surplus property located in Barrigada, Guam, 
     consisting of approximately 314.28 acres and known as Naval 
     Communications Area Master Station, WESTPAC, parcel IN, which 
     was conveyed to the Guam Community College pursuant to--
       (1) the quitclaim deed dated June 8, 1990, conveying 61.45 
     acres, between the Secretary, acting through the 
     Administrator for Management Services, and the Guam Community 
     College, acting through its Board of Trustees; and
       (2) the quitclaim deed dated June 8, 1990, conveying 252.83 
     acres, between the Secretary, acting through the 
     Administrator for Management Services, and the Guam Community 
     College, acting through its Board of Trustees, and the 
     Governor of Guam.
       (b) Consideration.--The Secretary shall execute the release 
     of the conditions, covenants, and reversionary interests 
     under subsection (a) without consideration.
       (c) Instrument of Release.--The Secretary shall execute and 
     file in the appropriate office or offices a deed of release, 
     amended deed, or other appropriate instrument effectuating 
     the release of the conditions, covenants, and reversionary 
     interests under subsection (a).

     SEC. __. SENSE OF CONGRESS REGARDING GOOD CHARACTER.

       (a) Findings.--Congress finds that--
       (1) the future of our Nation and world will be determined 
     by the young people of today;
       (2) record levels of youth crime, violence, teenage 
     pregnancy, and substance abuse indicate a growing moral 
     crisis in our society;
       (3) character development is the long-term process of 
     helping young people to know, care about, and act upon such 
     basic values as trustworthiness, respect for self and others, 
     responsibility, fairness, compassion, and citizenship;
       (4) these values are universal, reaching across cultural 
     and religious differences;
       (5) a recent poll found that 90 percent of Americans 
     support the teaching of core moral and civic values;
       (6) parents will always be children's primary character 
     educators;
       (7) good moral character is developed best in the context 
     of the family;
       (8) parents, community leaders, and school officials are 
     establishing successful partnerships across the Nation to 
     implement character education programs;
       (9) character education programs also ask parents, faculty, 
     and staff to serve as role models of core values, to provide 
     opportunities for young people to apply these values, and to 
     establish high academic standards that challenge students to 
     set high goals, work to achieve the goals, and persevere in 
     spite of difficulty;
       (10) the development of virtue and moral character, those 
     habits of mind, heart, and spirit that help young people to 
     know, desire, and do what is right, has historically been a 
     primary mission of colleges and universities; and
       (11) the Congress encourages parents, faculty, and staff 
     across the Nation to emphasize character development in the 
     home, in the community, in our schools, and in our colleges 
     and universities.
       (b) Sense of Congress.--It is the sense of Congress that 
     Congress should support and encourage character building 
     initiatives in schools across America and urge colleges and 
     universities to affirm that the development of character is 
     one of the primary goals of higher education.
       On page 379, between lines 5 and 6, insert the following:

     ``SEC. 235. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE 
                   TEACHERS.

       ``(a) Information Collection and Publication.--
       ``(1) Definitions.--
       ``(A) Within six months of the date of enactment, the 
     Commissioner of the National Center for Education Statistics, 
     in consultation with States and institutions of higher 
     education, shall develop key definitions and uniform methods 
     of calculation for terms related to the performance of 
     elementary school and secondary school teacher preparation 
     programs.
       ``(B) In complying with this section, the Secretary and 
     State shall ensure that fair and equitable methods are used 
     in reporting and that they protect the privacy of 
     individuals.
       ``(2) Information.--
       ``(A) State report card on the quality of teacher 
     preparation.--States that receive funds under this Act shall 
     provide to the Secretary, within two years of enactment of 
     the Higher Education Amendments of 1998, and annually 
     thereafter, in a uniform and comprehensible manner that 
     conforms with the definitions and methods established in 
     (a)(1), a state report card on the quality of teacher 
     preparation, which shall include at least the following:
       ``(1) A description of the teacher certification and 
     licensure assessments, and any other certification and 
     licensure requirements, used by each State.
       ``(2) The standards and criteria that prospective teachers 
     must meet in order to attain initial teacher licensing or 
     certification and to be licensed to teach particular subjects 
     or in particular grades within the State.
       ``(3) A description of the extent to which those 
     assessments and requirements are aligned with the State's 
     standards and assessments for students.
       ``(4) The percentage of teaching candidates who passed each 
     of the assessments used by the State for licensure and 
     certification, and the ``cut score'' on each assessment that 
     determines whether a candidate has passed that assessment.
       ``(5) The percentage of teaching candidates who passed each 
     of the assessments used by the State for licensure and 
     certification, disaggregated by the teacher preparation 
     program in that State from which the teacher candidate 
     received his or her most recent degree. States shall make 
     these data available widely and publicly.
       ``(6) Information on the extent to which teachers in the 
     State have been given waivers of State licensure or 
     certification requirements, including the proportion of such 
     teachers distributed across high and low poverty districts 
     and across subject areas.
       ``(7) A description of each State's alternative routes to 
     teacher certification, if any, and the percentage of teachers 
     certified through alternative certification routes who pass 
     state licensing assessments.
       ``(8) For each State, a description of proposed criteria 
     for assessing the performance of teacher preparation programs 
     within institutions of higher education, including but not 
     limited to indicators of teacher candidate knowledge and 
     skills as described in (b)(1)(A).
       ``(B) Report of the secretary on the quality of teacher 
     preparation.--The Secretary shall publish annually and make 
     widely available a report card on teacher qualifications and 
     preparation in the United States, including all the 
     information reported in (A)(1-8), beginning three years after 
     enactment of the Higher Education Amendments of 1998. The 
     Secretary shall report to Congress a comparison of States' 
     efforts to improve teaching quality. The Secretary shall also 
     report on the national mean and median scores on any 
     standardized test that is used in more than one State for 
     teacher licensure or certification. In the case of teacher 
     preparation programs with fewer than 10 graduates taking any 
     single initial teacher certification assessment during any 
     administration of such assessment, the Secretary shall 
     collect and publish information with respect to an average 
     pass rate on State certification or licensure assessments 
     taken over 3 years.
       ``(C) Institutional report cards on the quality of teacher 
     preparation.--Each institution of higher education that 
     conducts a teacher preparation program that enrolls students 
     receiving federal assistance shall, not later than two years 
     after the enactment of the Higher Education Amendments of 
     1998, and annually thereafter, report, in a uniform and 
     comprehensible manner, the following information to the 
     State, and the general public, including through publications 
     such as course catalogues and promotional materials sent to 
     potential applicants, high school guidance counselors, and 
     prospective employers of its program graduates, in a manner 
     that conforms with the definitions and methods established 
     under (a)(1):
       ``(1) For the most recent year for which the information is 
     available, the passing rate of its graduates on the teacher 
     certification and licensure assessments of the state in which 
     it is located, but only for those students who took those 
     assessments within three years of completing the program. A 
     comparison of the program's pass rate with the state average 
     pass rate shall be included as well. In the case of teacher 
     preparation programs with fewer than 10 graduates taking any 
     single initial teacher certification assessment during any 
     administration of such assessment, the institution shall 
     collect

[[Page S7892]]

     and publish information with respect to an average pass rate 
     on State certification or licensure assessments taken over 3 
     years.
       ``(2) The number of students in the program, the average 
     number of hours of supervised practice teaching required for 
     those in the program, and the faculty-student ratio in 
     supervised practice teaching.
       ``(3) In States that approve or accredit teacher education 
     programs, a statement of whether the institution's program is 
     so approved or accredited.
       ``(4) Whether the program has been designated as low 
     performing by the State under (b)(1)(B).

     In addition to the actions authorized in S. 487(c), the 
     Secretary may impose a fine not to exceed $25,000 on a 
     teacher preparation program for failure to provide the 
     information described in (a)(2)(B) in a timely or accurate 
     manner.
       ``(b) Accountability.--
       ``(1) States receiving funding under this Act, shall 
     develop and implement, no later than three years after 
     enactment of the Higher Education Amendments of 1998, the 
     following teacher preparation program accountability measures 
     and publish the measures publicly and widely:
       ``(A) A description of state criteria for identifying low-
     performing teacher preparation programs which may include a 
     baseline pass rate on state licensing assessments and other 
     indicators of teacher candidate knowledge and skill. States 
     that do not employ assessments as part of their criteria for 
     licensing or certification are not required to meet this 
     criterion until such time as the State initiates the use of 
     such assessments.
       ``(B) Procedures for identifying low performing teacher 
     preparation programs based on the criteria developed by the 
     state as required by (b)(1)(A), and publish a list of those 
     programs.
       ``(C) States that have, prior to enactment, already 
     conformed with (b)(1)(A-B), need not change their procedures, 
     unless the State chooses to do so.
       ``(2) Not later than four years after enactment of the 
     Higher Education Amendments of 1998, any teacher preparation 
     programs for which the State has withdrawn its approval or 
     terminated its financial support due to the low performance 
     of its teacher preparation program based on procedures 
     described in (b)(1).
       ``(1) shall be ineligible for any funding for professional 
     development activities awarded by the Department of 
     Education; and
       ``(2) shall not be permitted to accept or enroll any 
     student that receives aid under title IV of this Act in its 
     teacher preparation program.

                          ____________________