[Congressional Record Volume 150, Number 123 (Monday, October 4, 2004)]
[Senate]
[Pages S10367-S10368]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Ms. MIKULSKI (for herself and Mr. Kennedy):
  S. 2885. A bill to build capacity at community colleges in order to 
meet increased demand for community college education while maintaining 
the affordable tuition rates and the open-door policy that are the 
hallmarks of the community college system; to the Committee on Health, 
Education, Labor, and Pensions.
  Ms. MIKULSKI. Mr. President, I rise to introduce the ``Community 
College Opportunity Act.'' Community colleges are the gateway to the 
future for first time students looking for an affordable college 
education, and for mid-career students looking to get ahead in the 
workplace. As college tuition at four-year colleges continues to rise, 
more and more students are turning to community colleges for the 
education they need to prepare for 21st century jobs.
  Yet soon we may not be able to count on our community colleges being 
available to everyone. The combination of budget cuts and increased 
enrollments is forcing community colleges to make tough choices between 
raising tuition and turning students away. This important legislation 
will help keep the doors of our community colleges open to increasing 
numbers of students without sending tuition through the roof. My bill 
authorizes $100 million for a competitive grant program to help 
community colleges serve more students. Community colleges could apply 
for a grant to help with the cost of constructing or renovating 
facilities, hiring faculty, purchasing new computers and scientific 
equipment, and investing in creative ways of addressing overcrowding--
like distance learning.
  Why is this important? Community colleges are one of the great 
American social inventions. I used to teach night school at Baltimore 
City Community College. I know firsthand the vital role they play in 
our communities. Their low cost, convenient location, and open door 
admissions policy have made them the key to the American dream for so 
many. Many generations of immigrants pursued the American dream by 
working all day and going to school at night. After World War II, the 
GI bill gave returning veterans a chance to get ahead by going to local 
junior colleges.
  Now, more than ever, it's important to invest in community colleges. 
In the next ten years, 40 percent of new jobs will require college 
education. At the same time, college tuition is on the rise. Tuition at 
the University of Maryland is up by as much as 21 percent. That's 
causing many students to take a second look at community colleges 
because they're more affordable. They're also leaders in training 
workers for 21st century jobs from nurses to computer techies, and even 
lab techs for new industries, like biotechnology. They're playing a key 
role in addressing shortages in nursing and teaching. In Maryland, 
community colleges train 55 percent of new nurses.
  Yet our community colleges are bursting at the seams. They're growing 
faster than 4-year colleges. Enrollment at Maryland's community 
colleges is expected to grow 30 percent in the next 10 years, while 4-
year colleges will grow by 15 percent. Community colleges are holding 
classes from 7 in the morning to 10 at night, on weekends, and over the 
internet. In my own state of Maryland, they are starting to turn 
students away because there isn't enough room. As many as 2000 students 
were shut out of Montgomery College last year because they couldn't get 
into the classes they needed or they couldn't afford the cost. Last 
fall, Prince George's Community College had to turn away 630 
prospective nursing students and 1,000 prospective education students.
  It's great that so many Americans are going to community colleges. 
For so many Americans, community colleges are the only way to get the 
education they need to be competitive for 21st century jobs. Yet the 
rapid increase of students is threatening the very mission of community 
colleges. If we want a world-class workforce, we need to invest in 
higher education. We need to make sure we have always institutions 
available to everyone who wants a college degree or just a couple of 
courses. That means investing in our community colleges, so they can 
continue to be affordable, accessible, and successful at training the 
next generation of nurses, teachers, and techies.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2885

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

     SECTION 1. COMMUNITY COLLEGE CAPACITY-BUILDING GRANT PROGRAM.

       Title III of the Higher Education Act of 1965 (20 U.S.C. 
     1051 et seq.) is amended--
       (1) by redesignating part F as part G; and
       (2) by inserting after part E the following:

                      ``Part F--Community Colleges

     ``SEC. 371. COMMUNITY COLLEGE CAPACITY-BUILDING GRANT 
                   PROGRAM.

       ``(a) Program Authorized.--
       ``(1) In general.--From amounts appropriated under section 
     399(a)(6) for a fiscal year, the Secretary shall award grants 
     to eligible entities, on a competitive basis, for the purpose 
     of building capacity at community colleges to meet the 
     increased demand for community colleges while maintaining the 
     affordable tuition rates and the open-door policy that are 
     the hallmarks of the community college system.
       ``(2) Duration.--Grants awarded under this section shall be 
     for a period not to exceed 3 years.
       ``(b) Definitions.--In this section:
       ``(1) Community college.--The term `community college' 
     means a public institution of higher education (as defined in 
     section 101(a)) whose highest degree awarded is predominantly 
     the associate degree.
       ``(2) Eligible entity.--The term `eligible entity' means a 
     community college, or a consortium of 2 or more community 
     colleges, that demonstrates capacity challenges at not less 
     than 1 of the community colleges in the eligible entity, such 
     as--
       ``(A) an identified workforce shortage in the community 
     served by the community college that will be addressed by 
     increased enrollment at the community college;
       ``(B) a wait list for a class or for a degree or a 
     certificate program;
       ``(C) a faculty shortage;
       ``(D) a significant enrollment growth;
       ``(E) a significant projected enrollment growth;
       ``(F) an increase in the student-faculty ratio;
       ``(G) a shortage of laboratory space or equipment;
       ``(H) a shortage of computer equipment and technology;
       ``(I) out-of-date computer equipment and technology;
       ``(J) a decrease in State or county funding or a related 
     budget shortfall; or
       ``(K) another demonstrated capacity shortfall.
       ``(c) Application.--Each eligible entity desiring a grant 
     under this section shall submit an application to the 
     Secretary at such time, in such manner, and accompanied by 
     such information as the Secretary may reasonably require by 
     regulation.
       ``(d) Award Basis.--In awarding grants under subsection 
     (a), the Secretary shall take into consideration--
       ``(1) the relative need for assistance under this section 
     of the community colleges;
       ``(2) the probable impact and overall quality of the 
     proposed activities on the capacity problem of the community 
     college;
       ``(3) providing an equitable geographic distribution of 
     grant funds under this section throughout the United States 
     and among urban, suburban, and rural areas of the United 
     States; and
       ``(4) providing an equitable distribution among small, 
     medium, and large community colleges.
       ``(e) Use of Funds.--Grant funds provided under subsection 
     (a) may be used for activities that expand community college 
     capacity, including--
       ``(1) the construction, maintenance, renovation, and 
     improvement of classroom, library, laboratory, and other 
     instructional facilities;
       ``(2) the purchase, rental, or lease of scientific or 
     laboratory equipment for educational purposes, including 
     instructional research purposes;
       ``(3) the development, improvement, or expansion of 
     technology;
       ``(4) preparation and professional development of faculty;
       ``(5) recruitment, hiring, and retention of faculty;
       ``(6) curriculum development and academic instruction;

[[Page S10368]]

       ``(7) the purchase of library books, periodicals, and other 
     educational materials, including telecommunications program 
     material;
       ``(8) the joint use of facilities, such as laboratories and 
     libraries; or
       ``(9) the development of partnerships with local businesses 
     to increase community college capacity.

     ``SEC. 372. APPLICABILITY.

       ``The provisions of part G shall not apply to this part.''.

     SEC. 2. AUTHORIZATION OF APPROPRIATIONS.

       Section 399(a) of the Higher Education Act of 1965 (20 
     U.S.C. 1068h(a)) is amended by adding at the end the 
     following:
       ``(6) Part f.--There are authorized to be appropriated to 
     carry out part F, $100,000,000 for fiscal year 2005, and such 
     sums as may be necessary for each of the 4 succeeding fiscal 
     years.''.
                                 ______
                                 
      By Mr. BOND:
  S. 2886. A bill to amend the Internal Revenue Code of 1986 to exclude 
from gross income certain hazard mitigation assistance; to the 
Committee on Finance.
  Mr. BOND. Mr. President, I rise today to introduce legislation 
concerning a critical issue this year--disaster assistance. This has 
been one of the worst hurricane seasons that Florida has seen in recent 
years. The Sunshine State has been battered by four hurricanes in the 
past six weeks. I extend my deepest sympathies to the residents of 
Florida where some have had to evacuate more than three times during 
this hurricane season only to return home and find their homes leveled, 
their crops uprooted, their neighborhoods flooded, and their dreams 
shattered.
  In my home State of Missouri, we are no strangers to natural 
disasters. Located smack in the middle of Tornado Alley, Missouri has 
been hit by some of the largest storms in U.S. in history. In May of 
2003, a string of tornadoes ripped through the western part of the 
State causing major damage and devastation.
  With two rivers--the Mississippi and the Missouri--we have also seen 
our fair share of flooding through the years. I will never forget when 
the Mississippi River breached its banks in 1993--one of the most 
devastating floods in U.S. history. Of the nine Midwestern States 
affected, the State of Missouri was the hardest hit and State officials 
estimate that damages totaled $3 billion.
  While both the Mississippi and Missouri Rivers have made the State of 
Missouri susceptible to riverine flooding, the State is also 
susceptible to flash flooding. A case in point is the city of Union, 
located about 45 minutes from St. Louis, which suffered tremendous 
damage from a severe flash flood in May of 2000.
  I mention the city of Union as a specific example of the benefits 
that a disaster mitigation program can hold in flash-flood situations. 
After the flood, the City of Union applied to the State of Missouri 
Emergency Management Agency to seek help in a demolition and 
acquisition project. With the mitigation grant money, 17 properties 
were acquired in residential areas with substantial damage. These 
properties are now dead restricted for ``open space,'' which will 
prevent future development and the potential for flash flood related 
deaths in that area because many of the homes and people will no longer 
be in harm's way. This is an excellent example of the value of disaster 
and mitigation money invested by the federal, state and local 
governments.
  Over the years, the State of Missouri has worked with the Federal 
Emergency Management Agency (FEMA) to build structures that prevent 
flooding and other damage from occurring when natural disasters strike. 
Time and time again, FEMA has come to the rescue by establishing 
funding for disaster relief and mitigation activities within the State 
of Missouri and in other States across the country.
  Having served as the Chairman of the Senate Appropriations 
Subcommittee on VA, HUD, and Independent Agencies, which until recently 
oversaw FEMA, I know first hand the value of the agency's disaster 
mitigation grant programs--the Hazards Mitigation Grant Program (HGMP), 
the Pre-Disaster Mitigation program (PDM), and the Flood Mitigation 
Assistance (FMA) program. Designed to manage future emergencies, these 
programs have been essential to countless communities, and without 
them, thousands of lives would be in jeopardy.
  Recently, some very disturbing news was brought to my attention. 
According to a June 2004 legal memorandum issued by the Internal 
Revenue Service (IRS), FEMA mitigation grants may be subject to income 
taxation. While some may argue that this is merely the IRS's 
interpretation of the statute, it is clearly the position the IRS 
intends to take against American taxpayers whose only recourse will be 
to fight the agency in court.
  I must say that I am absolutely stunned by this determination by the 
IRS!! How in the world could the IRS possibly think that Congress 
intended to tax these types of grants to prevent natural disasters, 
especially when we went out of our way to ensure that disaster-relief 
payments to individuals recovering from a hurricane, flood, tornado or 
other natural disaster are not subject to income taxes?
  Today, I am offering a bill that will stop the IRS in its tracks and 
prevent the taxation of disaster mitigation grants. This language will 
ensure that any Federal grants, as well as state grants indirectly 
associated with this program, will not be deemed to be income by the 
IRS's tortured reasoning. This bill will be effective as of the 
beginning of this year to ensure that any grants currently out there, 
especially in light of the current hurricanes that have happened, are 
not subject to tax. In addition, there should be no inference by this 
legislation that Congress intended such grants to be taxable prior to 
the effective date of this legislation.
  Why is this important? Why am I out here today? Because the Missouri 
and Mississippi Rivers rise, because tornadoes will ravage through the 
state once again, and because flash flooding can decimate an entire 
community. The last thing Americans who are working to prevent such 
potential destruction need is for government-grant funding to be 
subject to tax. My bill ensures that such taxes do not see the light of 
day.
  I urge my colleagues to support this important legislation, and I ask 
unanimous consent that the text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record as follows:

                                S. 2886

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

     SECTION 1. EXCLUSION FROM GROSS INCOME FOR CERTAIN DISASTER 
                   MITIGATION PAYMENTS.

       (a) In General.--Section 139 of the Internal Revenue Code 
     of 1986 (relating to disaster relief payments) is amended by 
     adding at the end the following new subsection:
       ``(g) Certain Disaster Mitigation Payments.--Gross income 
     shall not include the value of any amount received directly 
     or indirectly as payment or benefit by the owner of any 
     property for hazard mitigation with respect to the property 
     pursuant to the Robert T. Stafford Disaster Relief and 
     Emergency Assistance Act or the National Flood Insurance 
     Act.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years ending on or after December 31, 
     2004.

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