[Congressional Record (Bound Edition), Volume 153 (2007), Part 14]
[Senate]
[Pages 19504-19520]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2314. Mr. REID submitted an amendment intended to be proposed by 
him to the bill H.R. 2669, to provide for reconciliation pursuant to 
section 601 of the concurrent resolution on the budget for fiscal year 
2008; which was ordered to lie on the table; as follows:

       At the end of the bill, add the following:

     SEC. 802. CAMPUS-BASED DIGITAL THEFT PREVENTION.

       Part G of title IV (20 U.S.C. 1088 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 494. CAMPUS-BASED DIGITAL THEFT PREVENTION.

       ``(a) In General.--Each eligible institution participating 
     in any program under this title which is among those 
     identified during the prior calendar year by the Secretary 
     pursuant to subsection (b)(2), shall--
       ``(1) provide evidence to the Secretary that the 
     institution has notified students on its policies and 
     procedures related to the illegal downloading and 
     distribution of copyrighted materials by students as required 
     under section 485(a)(1)(P);
       ``(2) undertake a review, which shall be submitted to the 
     Secretary, of its procedures and plans related to preventing 
     illegal downloading and distribution to determine the 
     program's effectiveness and implement changes to the program 
     if the changes are needed; and
       ``(3) provide evidence to the Secretary that the 
     institution has developed a plan for implementing a 
     technology-based deterrent to prevent the illegal downloading 
     or peer-to-peer distribution of intellectual property.
       ``(b) Identification.--For purposes of carrying out the 
     requirements of subsection (a), the Secretary shall, on an 
     annual basis, identify--
       ``(1) the 25 institutions of higher education participating 
     in programs under this title, which have received during the 
     previous calendar year the highest number of written notices 
     from copyright owners, or persons authorized to act on behalf 
     of copyright owners, alleging infringement of copyright by 
     users of the institution's information technology systems, 
     where such notices identify with specificity the works 
     alleged to be infringed, or a representative list of works 
     alleged to be infringed, the date and time of the alleged 
     infringing conduct together with information sufficient to 
     identify the infringing user, and information sufficient to 
     contact the copyright owner or its authorized representative; 
     and
       ``(2) from among the 25 institutions described in paragraph 
     (1), those that have received during the previous calendar 
     year not less than 100 notices alleging infringement of 
     copyright by users of the institution's information 
     technology systems, as described in paragraph (1).''.
                                 ______
                                 
  SA 2315. Mr. DORGAN submitted an amendment intended to be proposed by 
him to the bill H.R. 1585, to authorize appropriations for fiscal year 
2008 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle E of title XXVIII, add the 
     following:

     SEC. 2854. LAND CONVEYANCE, LEWIS AND CLARK UNITED STATES 
                   ARMY RESERVE CENTER, BISMARCK, NORTH DAKOTA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the United Tribes Technical 
     College all right, title, and interest of the United States 
     in and to a parcel of real property, including improvements 
     thereon, consisting of approximately 2 acres located

[[Page 19505]]

     at the Lewis and Clark United States Army Reserve Center, 
     3319 University Drive, Bismarck, North Dakota, for the 
     purpose of supporting Native American education and training.
       (b) Reversionary Interest.--
       (1) In general.--Subject to paragraph (2), if the Secretary 
     determines at any time that the real property conveyed under 
     subsection (a) is not being used in accordance with the 
     purposes of the conveyance specified in such subsection, all 
     right, title, and interest in and to the property shall 
     revert, at the option of the Secretary, to the United States, 
     and the United States shall have the right of immediate entry 
     onto the property. Any determination of the Secretary under 
     this subsection shall be made on the record after an 
     opportunity for a hearing.
       (2) Expiration.--The reversionary interest under paragraph 
     (1) shall expire upon satisfaction of the following 
     conditions:
       (A) The real property conveyed under subsection (a) is used 
     in accordance with the purposes of the conveyance specified 
     in such subsection for a period of not less than 30 years 
     following the date of the conveyance.
       (B) The United Tribes Technical College applies to the 
     Secretary for the release of the reversionary interest.
       (C) The Secretary certifies, in a manner that can be filed 
     with the appropriate land recordation office, that the 
     condition under subparagraph (A) has been satisfied.
       (c) Payment of Costs of Conveyance.--
       (1) Payment required.--The Secretary shall require the 
     United Tribes Technical College to cover costs to be incurred 
     by the Secretary, or to reimburse the Secretary for costs 
     incurred by the Secretary, to carry out the conveyance under 
     subsection (a), including survey costs, costs related to 
     environmental documentation, and other administrative costs 
     related to the conveyance. If amounts are collected from the 
     United Tribes Technical College in advance of the Secretary 
     incurring the actual costs, and the amount collected exceeds 
     the costs actually incurred by the Secretary to carry out the 
     conveyance, the Secretary shall refund the excess amount to 
     the United Tribes Technical College.
       (2) Treatment of amounts received.--Amounts received as 
     reimbursements under paragraph (1) shall be credited to the 
     fund or account that was used to cover the costs incurred by 
     the Secretary in carrying out the conveyance. Amounts so 
     credited shall be merged with amounts in such fund or account 
     and shall be available for the same purposes, and subject to 
     the same conditions and limitations, as amounts in such fund 
     or account.
       (d) Description of Real Property.--The exact acreage and 
     legal description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.
                                 ______
                                 
  SA 2316. Mr. BUNNING submitted an amendment intended to be proposed 
by him to the bill H.R. 1585, to authorize appropriations for fiscal 
year 2008 for military activities of the Department of Defense, for 
military construction, and for defense activities of the Department of 
Energy, to prescribe military personnel strengths for such fiscal year, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of subtitle B of title VIII, add the following:

     SEC. 827. PROCUREMENT OF UNCONVENTIONAL FUEL.

       (a) Procurement Authorized.--Subchapter II of chapter 173 
     of title 10, United States Code, is amended by adding at the 
     end the following new section:

     ``Sec. 2922g. Procurement of unconventional fuel

       ``(a) Long Term Contracts for Unconventional Fuel.--The 
     Secretary of Defense may enter into contracts for the 
     procurement of unconventional fuel. The term of any contract 
     under this section may be such period as the Secretary 
     considers appropriate, but not more than 25 years.
       ``(b) Waiver Authority.--(1) In procuring unconventional 
     fuel, the Secretary may waive the application of any 
     provision of law prescribing procedures to be followed in the 
     formation of contracts, prescribing terms and conditions to 
     be included in contracts, or regulating the performance of 
     contracts if the Secretary determines that--
       ``(A) the waiver is necessary to procure such 
     unconventional fuel for Government needs; and
       ``(B) In case of a contract in excess of 5 years, it would 
     not be possible to procure such unconventional fuel from the 
     source in an economical manner without the use of a contract 
     for a period in excess of five years.
       ``(2) Any waiver that is applicable to a contract for the 
     procurement of unconventional fuel under this subsection may 
     also, at the election of the Secretary, apply to a 
     subcontract under that contract.
       ``(c) Pricing Authority for Unconventional Fuel Purchased 
     From Domestic Sources.--(1) The Secretary shall ensure that 
     any purchase of unconventional fuel under a contract under 
     this section is cost effective for the Department of Defense.
       ``(2) The Secretary may procure unconventional fuel from 
     domestic sources at a price higher than comparable petroleum 
     products, or include a price guarantee for the procurement of 
     unconventional fuel from such sources, if the Secretary 
     determines that--
       ``(A) such price is necessary to develop or maintain an 
     assured supply of unconventional fuel produced from domestic 
     sources; and
       ``(B) supplies of unconventional fuel from domestic sources 
     cannot be effectively increased or obtained at lower prices.
       ``(d) Obligation of Funds.--At the time of award of any 
     contract for the procurement of unconventional fuel under 
     this section in excess of one year, the Secretary may 
     obligate annually funds sufficient to cover the annual costs 
     of the contract. In the event that funds are not available 
     for the continuation of the contract in any subsequent years, 
     the contract shall be cancelled or terminated. The Secretary 
     may fund any cancellation or termination liability out of 
     funds originally available at the time of award, funds 
     currently available at the time termination liability is 
     incurred, or funds specifically appropriated for those 
     payments.
       ``(e) Definitions.--In this section:
       ``(1) The term `domestic source' means a facility 
     (including feedstock) located physically in the United States 
     that produces or generates unconventional fuel.
       ``(2) The term `unconventional fuel' means transportation 
     fuel that is derived from a feedstock other than conventional 
     petroleum and includes transportation services related to the 
     delivery of such fuel.''.
       (b) Clerical Amendment.--The table of sections for at the 
     beginning of subchapter II of chapter 173 of such title is 
     amended by adding at the end the following new item:

``2922g. Procurement of unconventional fuel.''.
                                 ______
                                 
  SA 2317. Mr. SESSIONS submitted an amendment intended to be proposed 
by him to the bill H.R. 1585, to authorize appropriations for fiscal 
year 2008 for military activities of the Department of Defense, for 
military construction, and for defense activities of the Department of 
Energy, to prescribe military personnel strengths for such fiscal year, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of subtitle B of title V, add the following:

     SEC. 518. TEMPORARY NATIONAL GUARD SUPPORT FOR SECURING THE 
                   SOUTHERN LAND BORDER OF THE UNITED STATES.

       (a) Authority To Provide Assistance.--Until operational 
     control of the border is achieved in accordance with the 
     Secure Fence Act of 2006 (Public Law 109-367), the Governor 
     of any State, upon the approval of the Secretary of Defense, 
     may order any units or personnel of the National Guard of 
     such State--
       (1) to perform annual training duty under section 502(a) of 
     title 32, United States Code, to carry out in any State along 
     the southern land border of the United States the activities 
     authorized under subsection (b) for the purpose of securing 
     such border; and
       (2) to perform duty under section 502(f) of title 32, 
     United States Code, to provide command, control, and 
     continuity of support for units and personnel performing 
     annual training duty under paragraph (1).
       (b) Authorized Activities.--The following activities are 
     authorized under this subsection:
       (1) Ground reconnaissance activities.
       (2) Airborne reconnaissance activities.
       (3) Logistical support.
       (4) Provision of translation services and training.
       (5) Administrative support services.
       (6) Technical training services.
       (7) Emergency medical assistance and services.
       (8) Communications services.
       (9) Rescue of aliens in peril.
       (10) Construction of roadways, patrol roads, fences, 
     barriers, and other facilities to secure the southern land 
     border of the United States.
       (11) Ground and air transportation.
       (12) Identification, interrogation, search, seizure, and 
     detention of any alien entering or attempting to enter the 
     United States in violation of any law or regulation regarding 
     the admission, exclusion, expulsion, or removal of aliens, 
     until the alien can be transferred into the custody of a 
     Border Patrol agent or an officer of United States Customs 
     and Border Protection.
       (c) Cooperative Agreements.--Units and personnel of the 
     National Guard of a State may only perform activities in 
     another State under subsection (a) pursuant to the terms of 
     an emergency management assistance compact or other 
     cooperative arrangement entered into between the governors of 
     such States for purposes of this section, and only with the 
     approval of the Secretary of Defense.
       (d) Coordination of Assistance.--The Secretary of Homeland 
     Security, in consultation

[[Page 19506]]

     with the Secretary of Defense and the governors of the States 
     concerned, may coordinate the performance of activities under 
     this section by units and personnel of the National Guard.
       (e) Annual Training.--Annual training duty performed by 
     members of the National Guard under subsection (a) shall be 
     appropriate for the units and individual members concerned, 
     taking into account the types of units and military 
     occupational specialties of individual members performing 
     such duty. Individual periods of training duty shall not be 
     limited to 3 weeks per year.
       (f) Rules of Engagement.--The Secretary of Homeland 
     Security, in consultation with the Secretary of Defense and 
     the governors of the States concerned, shall coordinate the 
     rules of engagement to be followed by units and personnel of 
     the National Guard tasked with authorized activities 
     described in subsection (b)(12). The rules of engagement for 
     the National Guard shall be equivalent to the rules of 
     engagement for Border Patrol agents.
       (g) Use of Force.--
       (1) In general.--Nondeadly force may be used by members of 
     the National Guard stationed at the southern border in the 
     identification, interrogation, search, seizure, and detention 
     of any alien pursuant to subsection (b)(12).
       (2) Nondeadly force defined.--In this subsection, the term 
     ``nondeadly force'' means physical force or restraint that 
     could not reasonably be expected to result in, or be capable 
     of, causing death or serious bodily injury.
       (h) Definitions.--In this section:
       (1) Governor of a state.--The term ``Governor of a State'' 
     means, in the case of the District of Columbia, the 
     Commanding General of the National Guard of the District of 
     Columbia.
       (2) State.--The term ``State'' means each of the several 
     States and the District of Columbia, the Commonwealth of 
     Puerto Rico, Guam, and the Virgin Islands.
       (3) State along the southern land border of the united 
     states.--The term ``State along the southern land border of 
     the United States'' means each of the following States:
       (A) Arizona.
       (B) California.
       (C) New Mexico.
       (D) Texas.
       (i) Duration of Authority.--The authority of this section 
     shall expire on the date on which operational control of the 
     border is achieved in accordance with the Secure Fence Act of 
     2006 (Public Law 109-367).
                                 ______
                                 
  SA 2318. Mr. SESSIONS submitted an amendment intended to be proposed 
by him to the bill H.R. 1585, to authorize appropriations for fiscal 
year 2008 for military activities of the Department of Defense, for 
military construction, and for defense activities of the Department of 
Energy, to prescribe military personnel strengths for such fiscal year, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end of subtitle B of title V, add the following:

     SEC. 518. TEMPORARY NATIONAL GUARD SUPPORT FOR SECURING THE 
                   SOUTHERN LAND BORDER OF THE UNITED STATES.

       (a) Authority To Provide Assistance.--Until operational 
     control of the border is achieved in accordance with the 
     Secure Fence Act of 2006 (Public Law 109-367), the Governor 
     of any State, upon the approval of the Secretary of Defense, 
     shall order any units or personnel of the National Guard of 
     such State--
       (1) to perform annual training duty under section 502(a) of 
     title 32, United States Code, to carry out in any State along 
     the southern land border of the United States the activities 
     authorized under subsection (b) for the purpose of securing 
     such border; and
       (2) to perform duty under section 502(f) of title 32, 
     United States Code, to provide command, control, and 
     continuity of support for units and personnel performing 
     annual training duty under paragraph (1).
       (b) Authorized Activities.--The following activities are 
     authorized under this subsection:
       (1) Ground reconnaissance activities.
       (2) Airborne reconnaissance activities.
       (3) Logistical support.
       (4) Provision of translation services and training.
       (5) Administrative support services.
       (6) Technical training services.
       (7) Emergency medical assistance and services.
       (8) Communications services.
       (9) Rescue of aliens in peril.
       (10) Construction of roadways, patrol roads, fences, 
     barriers, and other facilities to secure the southern land 
     border of the United States.
       (11) Ground and air transportation.
       (12) Identification, interrogation, search, seizure, and 
     detention of any alien entering or attempting to enter the 
     United States in violation of any law or regulation regarding 
     the admission, exclusion, expulsion, or removal of aliens, 
     until the alien can be transferred into the custody of a 
     Border Patrol agent or an officer of United States Customs 
     and Border Protection.
       (c) Cooperative Agreements.--Units and personnel of the 
     National Guard of a State may only perform activities in 
     another State under subsection (a) pursuant to the terms of 
     an emergency management assistance compact or other 
     cooperative arrangement entered into between the governors of 
     such States for purposes of this section, and only with the 
     approval of the Secretary of Defense.
       (d) Coordination of Assistance.--The Secretary of Homeland 
     Security, in consultation with the Secretary of Defense and 
     the governors of the States concerned, shall coordinate the 
     performance of activities under this section by units and 
     personnel of the National Guard.
       (e) Annual Training.--Annual training duty performed by 
     members of the National Guard under subsection (a) shall be 
     appropriate for the units and individual members concerned, 
     taking into account the types of units and military 
     occupational specialties of individual members performing 
     such duty. Individual periods of training duty shall not be 
     limited to 3 weeks per year.
       (f) Rules of Engagement.--The Secretary of Homeland 
     Security, in consultation with the Secretary of Defense and 
     the governors of the States concerned, shall coordinate the 
     rules of engagement to be followed by units and personnel of 
     the National Guard tasked with authorized activities 
     described in subsection (b)(12). The rules of engagement for 
     the National Guard shall be equivalent to the rules of 
     engagement for Border Patrol agents.
       (g) Use of Force.--
       (1) In general.--Nondeadly force may be used by members of 
     the National Guard stationed at the southern border in the 
     identification, interrogation, search, seizure, and detention 
     of any alien pursuant to subsection (b)(12).
       (2) Nondeadly force defined.--In this subsection, the term 
     ``nondeadly force'' means physical force or restraint that 
     could not reasonably be expected to result in, or be capable 
     of, causing death or serious bodily injury.
       (h) Definitions.--In this section:
       (1) Governor of a state.--The term ``Governor of a State'' 
     means, in the case of the District of Columbia, the 
     Commanding General of the National Guard of the District of 
     Columbia.
       (2) State.--The term ``State'' means each of the several 
     States and the District of Columbia, the Commonwealth of 
     Puerto Rico, Guam, and the Virgin Islands.
       (3) State along the southern land border of the united 
     states.--The term ``State along the southern land border of 
     the United States'' means each of the following States:
       (A) Arizona.
       (B) California.
       (C) New Mexico.
       (D) Texas.
       (i) Duration of Authority.--The authority of this section 
     shall expire on the date on which operational control of the 
     border is achieved in accordance with the Secure Fence Act of 
     2006 (Public Law 109-367).
                                 ______
                                 
  SA 2319. Mr. SESSIONS submitted an amendment intended to be proposed 
by him to the bill H.R. 1585, to authorize appropriations for fiscal 
year 2008 for military activities of the Department of Defense, for 
military construction, and for defense activities of the Department of 
Energy, to prescribe military personnel strengths for such fiscal year, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

                Subtitle _--Border Security Cooperation

     SEC. __. RECRUITMENT OF FORMER MILITARY PERSONNEL.

       (a) In General.--The Commissioner of United States Customs 
     and Border Protection, in conjunction with the Secretary of 
     Defense or a designee of the Secretary of Defense, shall 
     establish a program to actively recruit members of the Army, 
     Navy, Air Force, Marine Corps, and Coast Guard who have 
     elected to separate from active duty.
       (b) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Commissioner shall submit a report 
     on the implementation of the recruitment program established 
     pursuant to paragraph (1) to--
       (1) the Committee on the Judiciary of the Senate; and
       (2) the Committee on the Judiciary of the House of 
     Representatives.

     SEC. __. TECHNOLOGICAL ASSETS.

       (a) Procurement.--
       (1) In general.--Subject to the availability of 
     appropriations, the Secretary of Homeland Security shall 
     procure additional unmanned aerial vehicles, cameras, poles, 
     sensors, and other technologies necessary to achieve 
     operational control of the international borders of the 
     United States and to establish a security perimeter to be 
     known as a ``virtual fence'' along such international borders 
     to provide a barrier to illegal immigration.
       (2) Authorization of appropriations.--There are authorized 
     to be appropriated to the Secretary such sums as may be 
     necessary for each of the fiscal years 2008 through 2012 to 
     carry out this subsection.

[[Page 19507]]

       (b) Increased Availability of Equipment.--The Secretary of 
     Homeland Security and the Secretary of Defense shall develop 
     and implement a plan to use authorities provided to the 
     Secretary of Defense under chapter 18 of title 10, United 
     States Code, to increase the availability and use of 
     Department of Defense equipment, including unmanned aerial 
     vehicles, tethered aerostat radars, and other surveillance 
     equipment, to assist the Secretary in carrying out 
     surveillance activities conducted at or near the 
     international land borders of the United States to prevent 
     illegal immigration.
       (c) Report.--Not later than 6 months after the date of the 
     enactment of this Act, the Secretary of Homeland Security, in 
     conjunction with the Secretary of Defense, shall submit a 
     report to Congress that contains--
       (1) a description of the current use of Department of 
     Defense equipment to assist the Secretary in carrying out 
     surveillance of the international land borders of the United 
     States and assessment of the risks to citizens of the United 
     States and foreign policy interests associated with the use 
     of such equipment;
       (2) the plan developed under subsection (b) to increase the 
     use of Department of Defense equipment to assist such 
     surveillance activities; and
       (3) a description of the types of equipment and other 
     support to be provided by the Secretary of Defense under such 
     plan during the 1-year period beginning on the date of the 
     submission of the report.
       (d) Unmanned Aerial Vehicle Pilot Program.--During the 1-
     year period beginning on the date on which the report is 
     submitted under subsection (c), the Secretary shall conduct a 
     pilot program to test unmanned aerial vehicles for border 
     surveillance along the international border between Canada 
     and the United States.
       (e) Construction.--Nothing in this section may be construed 
     as altering or amending the prohibition on the use of any 
     part of the Army or the Air Force as a posse comitatus under 
     section 1385 of title 18, United States Code.

     SEC. __. REPORT ON INCENTIVES TO ENCOURAGE CERTAIN MEMBERS 
                   AND FORMER MEMBERS OF THE ARMED FORCES TO SERVE 
                   IN UNITED STATES CUSTOMS AND BORDER PROTECTION.

       (a) Report Required.--Not later than 60 days after the date 
     of the enactment of this Act, the Secretary of Homeland 
     Security and the Secretary of Defense shall jointly submit to 
     the appropriate committees of Congress a report assessing the 
     desirability and feasibility of offering incentives to 
     covered members and former members of the Armed Forces for 
     the purpose of encouraging such members to serve in United 
     States Customs and Border Protection (referred to in this 
     section as ``CBP'').
       (b) Definitions.--In this section:
       (1) Covered members and former members of the armed 
     forces.--The term ``covered members and former members of the 
     Armed Forces'' means--
       (A) members of the reserve components of the Armed Forces; 
     and
       (B) former members of the Armed Forces who separated from 
     service in the Armed Forces during the previous 2 years.
       (2) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Armed Services of the Senate;
       (B) the Committee on Homeland Security and Governmental 
     Affairs of the Senate;
       (C) the Committee on Appropriations of the Senate;
       (D) the Committee on Armed Services of the House of 
     Representatives;
       (E) the Committee on Homeland Security of the House of 
     Representatives; and
       (F) the Committee on Appropriations of the House of 
     Representatives.
       (c) Requirements and Limitations.--
       (1) Nature of incentives.--In considering incentives for 
     purposes of the report required under subsection (a), the 
     Secretary of Homeland Security and the Secretary of Defense 
     shall consider such incentives, whether monetary or otherwise 
     and whether or not authorized under existing law, as the 
     Secretaries jointly consider appropriate.
       (2) Targeting of incentives.--In assessing any incentive 
     for purposes of such report, the Secretaries shall give 
     particular attention to the utility of such incentive in--
       (A) encouraging service in CBP after service in the Armed 
     Forces by covered members and former of the Armed Forces who 
     have provided border patrol or border security assistance to 
     CBP as part of their duties as members of the Armed Forces; 
     and
       (B) leveraging military training and experience by 
     accelerating training, or allowing credit to be applied to 
     related areas of training, required for service with CBP.
       (3) Payment.--In assessing incentives for purposes of the 
     report, the Secretaries shall assume that any costs of such 
     incentives shall be borne by the Department of Homeland 
     Security.
       (d) Elements.--The report required under subsection (a) 
     shall include--
       (1) a description of various monetary and non-monetary 
     incentives considered for purposes of the report;
       (2) an assessment of the desirability and feasibility of 
     utilizing any such incentive for the purpose specified in 
     subsection (a), including an assessment of the particular 
     utility of such incentive in encouraging service in the CBP 
     after service in the Armed Forces by covered members and 
     former members of the Armed Forces described in subsection 
     (c)(2); and
       (3) any other matters that the Secretaries jointly consider 
     appropriate.
                                 ______
                                 
  SA 2320. Mr. SMITH (for himself and Mr. Wyden) submitted an amendment 
intended to be proposed by him to the bill H.R. 1585, to authorize 
appropriations for fiscal year 2008 for military activities of the 
Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe military personnel 
strengths for such fiscal year, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of subtitle C of title III, add the following:

     SEC. 325. ESTABLISHMENT OF ADDITIONAL STRYKER BRIGADE COMBAT 
                   TEAM.

       (a) Additional Amount for Operation and Maintenance, Army 
     National Guard.--The amount authorized to be appropriated by 
     section 301(10) for operation and maintenance for the Army 
     National Guard is hereby increased by $317,000,000.
       (b) Availability.--Of the amount authorized to be 
     appropriated by section 301(10) for operation and maintenance 
     for the Army National Guard, as increased by subsection (a), 
     $317,000,000 may be available for the establishment of a 
     Stryker Brigade Combat Team composed of elements of the 
     California National Guard, the Nevada National Guard, and the 
     Oregon National Guard.
                                 ______
                                 
  SA 2321. Mrs. DOLE submitted an amendment intended to be proposed by 
her to the bill H.R. 1585, to authorize appropriations for fiscal year 
2008 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of title X, add the following:

     SEC. 1070. NOTIFICATION OF CERTAIN RESIDENTS AND CIVILIAN 
                   EMPLOYEES AT CAMP LEJEUNE, NORTH CAROLINA, OF 
                   EXPOSURE TO DRINKING WATER CONTAMINATION.

       (a) Notification of Individuals Served by Tarawa Terrace 
     Water Distribution System, Including Knox Trailer Park.--Not 
     later than 120 days after the date of the enactment of this 
     Act, the Secretary of the Navy shall identify and notify 
     directly individuals who were served by the Tarawa Terrace 
     Water Distribution System, including Knox Trailer Park, at 
     Camp Lejeune, North Carolina, during the years 1958 through 
     1987 that they were exposed to drinking water contaminated 
     with tetrachloroethylene (PCE) at levels well above the 
     maximum safety level established by the Environmental 
     Protection Administration.
       (b) Notification of Individuals Served by Hadnot Point 
     Water Distribution System.--Not later than 120 days after the 
     Agency for Toxic Substances and Disease Registry (ATSDR) 
     completes its water modeling study of the Hadnot Point water 
     distribution system, the Secretary of the Navy shall identify 
     and notify directly individuals who were served by the system 
     during the period identified in the study of the drinking 
     water contamination to which they were exposed.
       (c) Notification of Former Civilian Employees at Camp 
     Lejeune.--Not later than 120 days after the date of the 
     enactment of this Act, the Secretary of the Navy shall 
     identify and notify directly civilian employees who worked at 
     Camp Lejeune during the period identified in the ATSDR 
     studies of the Tarawa Terrace and Hadnot Point water 
     distribution systems of the drinking water contamination to 
     which they were exposed.
       (d) Circulation of Health Survey.--
       (1) Finding.--Congress finds that notification and survey 
     efforts related to the drinking water contamination described 
     in this section are necessary due to the duration of exposure 
     and negative health impacts of these contaminants.
       (2) National opinion and research council health survey.--
       (A) Development.--Not later than 120 days after the date of 
     the enactment of this Act, the National Opinion and Research 
     Council, in conjunction with ATSDR, shall develop a health 
     survey that would voluntarily request of individuals 
     described in subsections (a), (b), and (c) personal health 
     information that may be associated with exposure to TCE, PCE, 
     vinyl chloride, and the other contaminants identified in the 
     ATSDR studies.
       (B) Inclusion with notification.--The survey developed 
     under subparagraph (A) shall be distributed by the Secretary 
     of the Navy concurrently with the direct notification 
     required under subsections (a), (b), and (c).
       (e) Use of Media to Supplement Notification.--The Secretary 
     of the Navy may use media notification as a supplement to, 
     but not substitution for, direct notification of individuals 
     described under subsections (a), (b), and (c).

[[Page 19508]]

       (f) Authorization of Appropriations.--There is authorized 
     to be appropriated $5,000,000 for fiscal year 2008 to carry 
     out this section.
                                 ______
                                 
  SA 2322. Mr. KYL (for himself and Mr. Domenici) submitted an 
amendment intended to be proposed by him to the bill H.R. 1585, to 
authorize appropriations for fiscal year 2008 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe military 
personnel strengths for such fiscal year, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end of subtitle C of title III, add the following:

     SEC. 325. OPERATION JUMP START.

       (a) In General.--Of the amount authorized to be 
     appropriated by section 301(5) for operation and maintenance 
     for Defense-wide activities, $400,000,000 may be available 
     for Operation Jump Start in order to maintain a significant 
     durational force of the National Guard on the southern land 
     border of the United States to assist the United States 
     Border Patrol in gaining operational control of that border.
       (b) Supplement Not Supplant.--The amount available under 
     subsection (a) for the purpose specified in that subsection 
     is in addition to any other amounts available in this Act for 
     Operation Jump Start.
                                 ______
                                 
  SA 2323. Mr. KERRY (for himself and Ms. Snowe) submitted an amendment 
intended to be proposed by him to the bill H.R. 1585, to authorize 
appropriations for fiscal year 2008 for military activities of the 
Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe military personnel 
strengths for such fiscal year, and for other purposes, which was 
ordered to lie on the table; as follows:

       At the end, add the following:

                  DIVISION D--VETERAN SMALL BUSINESSES

     SEC. 4001. SHORT TITLE.

       This division may be cited as the ``Military Reservist and 
     Veteran Small Business Reauthorization and Opportunity Act of 
     2007''.

     SEC. 4002. DEFINITIONS.

       In this division--
       (1) the term ``activated'' means receiving an order placing 
     a Reservist on active duty;
       (2) the term ``active duty'' has the meaning given that 
     term in section 101 of title 10, United States Code;
       (3) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively;
       (4) the term ``Reservist'' means a member of a reserve 
     component of the Armed Forces, as described in section 10101 
     of title 10, United States Code;
       (5) the term ``Service Corps of Retired Executives'' means 
     the Service Corps of Retired Executives authorized by section 
     8(b)(1) of the Small Business Act (15 U.S.C. 637(b)(1));
       (6) the terms ``service-disabled veteran'' and ``small 
     business concern'' have the meanings given those terms in 
     section 3 of the Small Business Act (15 U.S.C. 632);
       (7) the term ``small business development center'' means a 
     small business development center described in section 21 of 
     the Small Business Act (15 U.S.C. 648); and
       (8) the term ``women's business center'' means a women's 
     business center described in section 29 of the Small Business 
     Act (15 U.S.C. 656).

                TITLE XLI--VETERANS BUSINESS DEVELOPMENT

     SEC. 4101. INCREASED FUNDING FOR THE OFFICE OF VETERANS 
                   BUSINESS DEVELOPMENT.

       (a) In General.--There are authorized to be appropriated to 
     the Office of Veterans Business Development of the 
     Administration, to remain available until expended--
       (1) $2,100,000 for fiscal year 2008;
       (2) $2,300,000 for fiscal year 2009; and
       (3) $2,500,000 for fiscal year 2010.
       (b) Sense of Congress.--It is the sense of Congress that 
     any amounts provided pursuant to this section that are in 
     excess of amounts provided to the Administration for the 
     Office of Veterans Business Development in fiscal year 2007, 
     should be used to support Veterans Business Outreach Centers.

     SEC. 4102. INTERAGENCY TASK FORCE.

       Section 32 of the Small Business Act (15 U.S.C. 657b) is 
     amended by adding at the end the following:
       ``(d) Interagency Task Force.--
       ``(1) Establishment.--Not later than 90 days after the date 
     of enactment of this subsection, the President shall 
     establish an interagency task force to coordinate the efforts 
     of Federal agencies necessary to increase capital and 
     business development opportunities for, and increase the 
     award of Federal contracting and subcontracting opportunities 
     to, small business concerns owned and controlled by service-
     disabled veterans and small business concerns owned and 
     controlled by veterans (in this section referred to as the 
     `task force').
       ``(2) Membership.--The members of the task force shall 
     include--
       ``(A) the Administrator, who shall serve as chairperson of 
     the task force;
       ``(B) a representative from--
       ``(i) the Department of Veterans Affairs;
       ``(ii) the Department of Defense;
       ``(iii) the Administration (in addition to the 
     Administrator);
       ``(iv) the Department of Labor;
       ``(v) the General Services Administration; and
       ``(vi) the Office of Management and Budget; and
       ``(C) 4 representatives of veterans service organizations, 
     selected by the President.
       ``(3) Duties.--The task force shall coordinate 
     administrative and regulatory activities and develop 
     proposals relating to--
       ``(A) increasing capital access and capacity of small 
     business concerns owned and controlled by service-disabled 
     veterans and small business concerns owned and controlled by 
     veterans through loans, surety bonding, and franchising;
       ``(B) increasing access to Federal contracting and 
     subcontracting for small business concerns owned and 
     controlled by service-disabled veterans and small business 
     concerns owned and controlled by veterans through increased 
     use of contract reservations, expanded mentor-protege 
     assistance, and matching such small business concerns with 
     contracting opportunities;
       ``(C) increasing the integrity of certifications of status 
     as a small business concern owned and controlled by service-
     disabled veterans or a small business concern owned and 
     controlled by veterans;
       ``(D) reducing paperwork and administrative burdens on 
     veterans in accessing business development and 
     entrepreneurship opportunities; and
       ``(E) making other improvements relating to the support for 
     veterans business development by the Federal Government.
       ``(4) Reporting.--The task force shall submit an annual 
     report regarding its activities and proposals to--
       ``(A) the Committee on Small Business and Entrepreneurship 
     and the Committee on Veterans' Affairs of the Senate; and
       ``(B) the Committee on Small Business and the Committee on 
     Veterans' Affairs of the House of Representatives.''.

     SEC. 4103. PERMANENT EXTENSION OF SBA ADVISORY COMMITTEE ON 
                   VETERANS BUSINESS AFFAIRS.

       (a) Assumption of Duties.--Section 33 of the Small Business 
     Act (15 U.S.C. 657c) is amended--
       (1) by striking subsection (h); and
       (2) by redesignating subsections (i) through (k) as 
     subsections (h) through (j), respectively.
       (b) Permanent Extension of Authority.--Section 203 of the 
     Veterans Entrepreneurship and Small Business Development Act 
     of 1999 (15 U.S.C. 657b note) is amended by striking 
     subsection (h).

TITLE XLII--NATIONAL RESERVIST ENTERPRISE TRANSITION AND SUSTAINABILITY

     SEC. 4201. SHORT TITLE.

       This title may be cited as the ``National Reservist 
     Enterprise Transition and Sustainability Act of 2007''.

     SEC. 4202. PURPOSE.

       The purpose of this title is to establish a program to--
       (1) provide managerial, financial, planning, development, 
     technical, and regulatory assistance to small business 
     concerns owned and operated by Reservists;
       (2) provide managerial, financial, planning, development, 
     technical, and regulatory assistance to the temporary heads 
     of small business concerns owned and operated by Reservists;
       (3) create a partnership between the Small Business 
     Administration, the Department of Defense, and the Department 
     of Veterans Affairs to assist small business concerns owned 
     and operated by Reservists;
       (4) utilize the service delivery network of small business 
     development centers, women's business centers, Veterans 
     Business Outreach Centers, and centers operated by the 
     National Veterans Business Development Corporation to expand 
     the access of small business concerns owned and operated by 
     Reservists to programs providing business management, 
     development, financial, procurement, technical, regulatory, 
     and marketing assistance;
       (5) utilize the service delivery network of small business 
     development centers, women's business centers, Veterans 
     Business Outreach Centers, and centers operated by the 
     National Veterans Business Development Corporation to quickly 
     respond to an activation of Reservists that own and operate 
     small business concerns; and
       (6) utilize the service delivery network of small business 
     development centers, women's business centers, Veterans 
     Business Outreach Centers, and centers operated by the 
     National Veterans Business Development Corporation to assist 
     Reservists that own and operate small business concerns in 
     preparing for future military activations.

     SEC. 4203. NATIONAL GUARD AND RESERVE BUSINESS ASSISTANCE.

       (a) In General.--Section 21(a)(1) of the Small Business Act 
     (15 U.S.C. 648(a)(1)) is

[[Page 19509]]

     amended by inserting ``any small business development center, 
     women's business center, Veterans Business Outreach Center, 
     or center operated by the National Veterans Business 
     Development Corporation providing enterprise transition and 
     sustainability assistance to Reservists under section 37,'' 
     after ``any women's business center operating pursuant to 
     section 29,''.
       (b) Program.--The Small Business Act (15 U.S.C. 631 et 
     seq.) is amended--
       (1) by redesignating section 37 (15 U.S.C. 631 note) as 
     section 38; and
       (2) by inserting after section 36 the following:

     ``SEC. 37. RESERVIST ENTERPRISE TRANSITION AND 
                   SUSTAINABILITY.

       ``(a) In General.--The Administrator shall establish a 
     program to provide business planning assistance to small 
     business concerns owned and operated by Reservists.
       ``(b) Definitions.--In this section--
       ``(1) the terms `activated' and `activation' mean having 
     received an order placing a Reservists on active duty, as 
     defined by section 101(1) of title 10, United States Code;
       ``(2) the term `Administrator' means the Administrator of 
     the Small Business Administration, acting through the 
     Associate Administrator for Small Business Development 
     Centers;
       ``(3) the term `Association' means the association 
     established under section 21(a)(3)(A);
       ``(4) the term `eligible applicant' means--
       ``(A) a small business development center that is 
     accredited under section 21(k);
       ``(B) a women's business center;
       ``(C) a Veterans Business Outreach Center that receives 
     funds from the Office of Veterans Business Development; or
       ``(D) an information and assistance center operated by the 
     National Veterans Business Development Corporation under 
     section 33;
       ``(5) the term `enterprise transition and sustainability 
     assistance' means assistance provided by an eligible 
     applicant to a small business concern owned and operated by a 
     Reservist, who has been activated or is likely to be 
     activated in the next 12 months, to develop and implement a 
     business strategy for the period while the owner is on active 
     duty and 6 months after the date of the return of the owner;
       ``(6) the term `Reservist' means any person who is--
       ``(A) a member of a reserve component of the Armed Forces, 
     as defined by section 10101 of title 10, United States Code; 
     and
       ``(B) on active status, as defined by section 101(d)(4) of 
     title 10, United States Code;
       ``(7) the term `small business development center' means a 
     small business development center as described in section 21 
     of the Small Business Act (15 U.S.C. 648);
       ``(8) the term `State' means each of the several States of 
     the United States, the District of Columbia, the Commonwealth 
     of Puerto Rico, the Virgin Islands, American Samoa, and Guam; 
     and
       ``(9) the term `women's business center' means a women's 
     business center described in section 29 of the Small Business 
     Act (15 U.S.C. 656).
       ``(c) Authority.--The Administrator may award grants, in 
     accordance with the regulations developed under subsection 
     (d), to eligible applicants to assist small business concerns 
     owned and operated by Reservists by--
       ``(1) providing management, development, financing, 
     procurement, technical, regulatory, and marketing assistance;
       ``(2) providing access to information and resources, 
     including Federal and State business assistance programs;
       ``(3) distributing contact information provided by the 
     Department of Defense regarding activated Reservists to 
     corresponding State directors;
       ``(4) offering free, one-on-one, in-depth counseling 
     regarding management, development, financing, procurement, 
     regulations, and marketing;
       ``(5) assisting in developing a long-term plan for possible 
     future activation; and
       ``(6) providing enterprise transition and sustainability 
     assistance.
       ``(d) Rulemaking.--
       ``(1) In general.--The Administrator, in consultation with 
     the Association and after notice and an opportunity for 
     comment, shall promulgate regulations to carry out this 
     section.
       ``(2) Deadline.--The Administrator shall promulgate final 
     regulations not later than 180 days of the date of enactment 
     of the Military Reservist and Veteran Small Business 
     Reauthorization and Opportunity Act of 2007.
       ``(3) Contents.--The regulations developed by the 
     Administrator under this subsection shall establish--
       ``(A) procedures for identifying, in consultation with the 
     Secretary of Defense, States that have had a recent 
     activation of Reservists;
       ``(B) priorities for the types of assistance to be provided 
     under the program authorized by this section;
       ``(C) standards relating to educational, technical, and 
     support services to be provided by a grantee;
       ``(D) standards relating to any national service delivery 
     and support function to be provided by a grantee;
       ``(E) standards relating to any work plan that the 
     Administrator may require a grantee to develop; and
       ``(F) standards relating to the educational, technical, and 
     professional competency of any expert or other assistance 
     provider to whom a small business concern may be referred for 
     assistance by a grantee.
       ``(e) Application.--
       ``(1) In general.--Each eligible applicant desiring a grant 
     under this section shall submit an application to the 
     Administrator at such time, in such manner, and accompanied 
     by such information as the Administrator may reasonably 
     require.
       ``(2) Contents.--Each application submitted under paragraph 
     (1) shall describe--
       ``(A) the activities for which the applicant seeks 
     assistance under this section; and
       ``(B) how the applicant plans to allocate funds within its 
     network.
       ``(3) Matching not required.--Subparagraphs (A) and (B) of 
     section 21(a)(4), requiring matching funds, shall not apply 
     to grants awarded under this section.
       ``(f) Award of Grants.--
       ``(1) Deadline.--The Administrator shall award grants not 
     later than 60 days after the promulgation of final rules and 
     regulations under subsection (d).
       ``(2) Amount.--Each eligible applicant awarded a grant 
     under this section shall receive a grant in an amount--
       ``(A) not less than $75,000 per fiscal year; and
       ``(B) not greater than $300,000 per fiscal year.
       ``(g) Report.--
       ``(1) In general.--The Comptroller General of the United 
     States shall--
       ``(A) initiate an evaluation of the program not later than 
     30 months after the disbursement of the first grant under 
     this section; and
       ``(B) submit a report not later than 6 months after the 
     initiation of the evaluation under paragraph (1) to--
       ``(i) the Administrator;
       ``(ii) the Committee on Small Business and Entrepreneurship 
     of the Senate; and
       ``(iii) the Committee on Small Business of the House of 
     Representatives.
       ``(2) Contents.--The report under paragraph (1) shall--
       ``(A) address the results of the evaluation conducted under 
     paragraph (1); and
       ``(B) recommend changes to law, if any, that it believes 
     would be necessary or advisable to achieve the goals of this 
     section.
       ``(h) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to carry out this section--
       ``(A) $5,000,000 for the first fiscal year beginning after 
     the date of enactment of the Military Reservist and Veteran 
     Small Business Reauthorization and Opportunity Act of 2007; 
     and
       ``(B) $5,000,000 for each of the 3 fiscal years following 
     the fiscal year described in subparagraph (A).
       ``(2) Limitation on use of other funds.--The Administrator 
     may carry out the program authorized by this section only 
     with amounts appropriated in advance specifically to carry 
     out this section.''.

                    TITLE XLIII--RESERVIST PROGRAMS

     SEC. 4301. RESERVIST PROGRAMS.

       (a) Application Period.--Section 7(b)(3)(C) of the Small 
     Business Act (15 U.S.C. 636(b)(3)(C)) is amended by striking 
     ``90 days'' and inserting ``1 year''.
       (b) Pre-Consideration Process.--
       (1) Definition.--In this subsection, the term ``eligible 
     Reservist'' means a Reservist who--
       (A) has not been ordered to active duty;
       (B) expects to be ordered to active duty during a period of 
     military conflict; and
       (C) can reasonably demonstrate that the small business 
     concern for which that Reservist is a key employee will 
     suffer economic injury in the absence of that Reservist.
       (2) Establishment.--Not later than 6 months after the date 
     of enactment of this Act, the Administrator shall establish a 
     pre-consideration process, under which the Administrator--
       (A) may collect all relevant materials necessary for 
     processing a loan to a small business concern under section 
     7(b)(3) of the Small Business Act (15 U.S.C. 636(b)(3)) 
     before an eligible Reservist employed by that small business 
     concern is activated; and
       (B) shall distribute funds for any loan approved under 
     subparagraph (A) if that eligible Reservist is activated.
       (c) Outreach and Technical Assistance Program.--
       (1) In general.--Not later than 6 months after the date of 
     enactment of this Act, the Administrator, in consultation 
     with the Secretary of Veterans Affairs and the Secretary of 
     Defense, shall develop a comprehensive outreach and technical 
     assistance program (in this subsection referred to as the 
     ``program'') to--
       (A) market the loans available under section 7(b)(3) of the 
     Small Business Act (15 U.S.C. 636(b)(3)) to Reservists, and 
     family members of Reservists, that are on active duty and 
     that are not on active duty; and
       (B) provide technical assistance to a small business 
     concern applying for a loan under that section.
       (2) Components.--The program shall--

[[Page 19510]]

       (A) incorporate appropriate websites maintained by the 
     Administration, the Department of Veterans Affairs, and the 
     Department of Defense; and
       (B) require that information on the program is made 
     available to small business concerns directly through--
       (i) the district offices and resource partners of the 
     Administration, including small business development centers, 
     women's business centers, and the Service Corps of Retired 
     Executives; and
       (ii) other Federal agencies, including the Department of 
     Veterans Affairs and the Department of Defense.
       (3) Report.--
       (A) In general.--Not later than 6 months after the date of 
     enactment of this Act, and every 6 months thereafter until 
     the date that is 30 months after such date of enactment, the 
     Administrator shall submit to Congress a report on the status 
     of the program.
       (B) Contents.--Each report submitted under subparagraph (A) 
     shall include--
       (i) for the 6-month period ending on the date of that 
     report--

       (I) the number of loans approved under section 7(b)(3) of 
     the Small Business Act (15 U.S.C. 636(b)(3));
       (II) the number of loans disbursed under that section; and
       (III) the total amount disbursed under that section; and

       (ii) recommendations, if any, to make the program more 
     effective in serving small business concerns that employ 
     Reservists.

     SEC. 4302. RESERVIST LOANS.

       (a) In General.--Section 7(b)(3)(E) of the Small Business 
     Act (15 U.S.C. 636(b)(3)(E)) is amended by striking 
     ``$1,500,000'' each place such term appears and inserting 
     ``$2,000,000''.
       (b) Loan Information.--
       (1) In general.--The Administrator and the Secretary of 
     Defense shall develop a joint website and printed materials 
     providing information regarding any program for small 
     business concerns that is available to veterans or 
     Reservists.
       (2) Marketing.--The Administrator is authorized--
       (A) to advertise and promote the program under section 
     7(b)(3) of the Small Business Act jointly with the Secretary 
     of Defense and veterans' service organizations; and
       (B) to advertise and promote participation by lenders in 
     such program jointly with trade associations for banks or 
     other lending institutions.

     SEC. 4303. NONCOLLATERALIZED LOANS.

       Section 7(b)(3) of the Small Business Act (15 U.S.C. 
     636(b)(3)) is amended by adding at the end the following:
       ``(G)(i) Notwithstanding any other provision of law, the 
     Administrator may make a loan under this paragraph of not 
     more than $50,000 without collateral.
       ``(ii) The Administrator may defer payment of principal and 
     interest on a loan described in clause (i) during the longer 
     of--
       ``(I) the 1-year period beginning on the date of the 
     initial disbursement of the loan; and
       ``(II) the period during which the relevant essential 
     employee is on active duty.''.

     SEC. 4304. LOAN PRIORITY.

       Section 7(b)(3) of the Small Business Act (15 U.S.C. 
     636(b)(3)), as amended by this Act, is amended by adding at 
     the end the following:
       ``(H) The Administrator shall give priority to any 
     application for a loan under this paragraph and shall process 
     and make a determination regarding such applications prior to 
     processing or making a determination on other loan 
     applications under this subsection, on a rolling basis.''.

     SEC. 4305. RELIEF FROM TIME LIMITATIONS FOR VETERAN-OWNED 
                   SMALL BUSINESSES.

       Section 3(q) of the Small Business Act (15 U.S.C. 632(q)) 
     is amended by adding at the end the following:
       ``(5) Relief from time limitations.--
       ``(A) In general.--Any time limitation on any 
     qualification, certification, or period of participation 
     imposed under this Act on any program available to small 
     business concerns shall be extended for a small business 
     concern that--
       ``(i) is owned and controlled by--

       ``(I) a veteran who was called or ordered to active duty 
     under a provision of law specified in section 101(a)(13)(B) 
     of title 10, United States Code, on or after September 11, 
     2001; or
       ``(II) a service-disabled veteran who became such a veteran 
     due to an injury or illness incurred or aggravated in the 
     active military, naval, or air service during a period of 
     active duty pursuant to a call or order to active duty under 
     a provision of law referred to in subclause (I) on or after 
     September 11, 2001; and

       ``(ii) was subject to the time limitation during such 
     period of active duty.
       ``(B) Duration.--Upon submission of proper documentation to 
     the Administrator, the extension of a time limitation under 
     subparagraph (A) shall be equal to the period of time that 
     such veteran who owned or controlled such a concern was on 
     active duty as described in that subparagraph.''.

     SEC. 4306. SERVICE-DISABLED VETERANS.

       Not later than 180 days after the date of enactment of this 
     Act, the Comptroller General of the United States shall 
     submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report 
     describing--
       (1) the types of assistance needed by service-disabled 
     veterans who wish to become entrepreneurs; and
       (2) any resources that would assist such service-disabled 
     veterans.

     SEC. 4307. STUDY ON OPTIONS FOR PROMOTING POSITIVE WORKING 
                   RELATIONS BETWEEN EMPLOYERS AND THEIR RESERVE 
                   COMPONENT EMPLOYEES.

       (a) Study Required.--The Secretary of Defense shall conduct 
     a study on options for promoting positive working relations 
     between employers and Reserve component employees of such 
     employers, including assessing options for improving the time 
     in which employers of Reservists are notified of the call or 
     order of such members to active duty other than for training.
       (b) Report.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Secretary of Defense shall submit 
     to the appropriate committees of Congress a report on the 
     study conducted under subsection (a).
       (2) Contents.--The report submitted under paragraph (1) 
     shall--
       (A) provide a quantitative and qualitative assessment of--
       (i) what measures, if any, are being taken to inform 
     Reservists of the obligations and responsibilities of such 
     members to their employers;
       (ii) how effective such measures have been; and
       (iii) whether there are additional measures that could be 
     taken to promote positive working relations between 
     Reservists and their employers, including any steps that 
     could be taken to ensure that employers are timely notified 
     of a call to active duty; and
       (B) assess whether there has been a reduction in the hiring 
     of Reservists by business concerns because of--
       (i) any increase in the use of Reservists after September 
     11, 2001; or
       (ii) any change in any policy of the Department of Defense 
     relating to Reservists after September 11, 2001.
       (c) Appropriate Committees of Congress Defined.--In this 
     section, the term ``appropriate committees of Congress'' 
     means--
       (1) the Committee on Armed Services and the Committee on 
     Small Business and Entrepreneurship of the Senate; and
       (2) the Committee on Armed Services and the Committee on 
     Small Business of the House of Representatives.
                                 ______
                                 
  SA 2324. Mr. HAGEL (for himself and Mr. Byrd) submitted an amendment 
intended to be proposed by him to the bill H.R. 1585, to authorize 
appropriations for fiscal year 2008 for military activities of the 
Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe military personnel 
strengths for such fiscal year, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of subtitle C of title X, add the following:

     SEC. 1031. SYNTHETIC FUEL TECHNOLOGIES.

       (a) Findings.--Congress makes the following findings:
       (1) Synthetic fuel technologies are mature, known 
     technologies that are used around the world.
       (2) With sizable coal reserves, the United States is 
     ideally suited for the use of synthetic fuel technologies to 
     produce alternatives for petroleum products.
       (3) It is in the best interest of the national security of 
     the United States to develop and commercialize a synthetic 
     fuels industry.
       (b) Department of Defense Requirements for Utilization of 
     Synthetic Fuel.--
       (1) In general.--Subchapter II of chapter 134 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2263. Fuel: minimum requirements for utilization of 
       synthetic fuel

       ``(a) In General.--Of the total amount of fuel utilized by 
     the Department of Defense in a calendar year, the percentage 
     of such fuel that is synthetic fuel shall be the percentage 
     as follows:
       ``(1) In the first applicable utilization year, 5 percent.
       ``(2) Except as provided in subsection (c), in any year 
     after the first applicable utilization year, a percentage 
     that is 5 greater than the percentage of utilization in the 
     preceding year under this section.
       ``(b) First Applicable Utilization Year.--For purposes of 
     subsection (a)(1), the first applicable utilization year for 
     synthetic fuel shall be the earlier of the following:
       ``(1) The first calendar year after the Secretary Defense 
     certifies to Congress that at least 50 percent of the 
     aircraft fleet of the Department has the proven capability to 
     utilize synthetic fuel without--
       ``(A) any adverse effect on the aircraft engines of such 
     fleet;
       ``(B) any adverse effect on the overall performance of the 
     aircraft; and
       ``(C) any adverse effect on health and safety of the 
     aircrew, passengers, and maintenance crew.

[[Page 19511]]

       ``(2) 2017.
       ``(c) Exception.--If as of December 31 of any year in which 
     subsection (a) is in effect the average price of crude 
     petroleum (as determined by the Secretary of Energy in 2007 
     constant dollars) is less then $40 per barrel, paragraph (2) 
     of that subsection shall not be operative in the succeeding 
     year.
       ``(d) Maximum Percentage.--(1) The maximum percentage of 
     the fuel utilized by the Department that is required by this 
     section to be synthetic fuel is 50 percent.
       ``(2) Nothing in paragraph (1) shall be construed to limit 
     the percentage of fuel utilized by the Department that is 
     synthetic fuel.
       ``(e) Synthetic Fuel Defined.--In this section, the term 
     `synthetic fuel' means the following:
       ``(1) A fuel made using the Fischer-Tropche process.
       ``(2)(A) Subject to subparagraph (B), a fuel made using any 
     of the following feedstocks:
       ``(i) Coal.
       ``(ii) Natural gas.
       ``(iii) Petcoke.
       ``(iv) Biomass.
       ``(B) A fuel made using a feedstock referred to in clauses 
     (ii) through (iv) is a synthetic fuel only if the British 
     thermal unit (Btu)content per gallon of the fuel so made is 
     equal to or greater than the British thermal unit content per 
     gallon of synthetic fuel made using coal as a feedstock.
       ``(3) Any other fuel jointly specified by the Secretary of 
     Defense and the Secretary of Energy for purposes of this 
     section but only if the British thermal unit content per 
     gallon of the fuel so specified is equal to or greater than 
     the British thermal unit content per gallon of synthetic fuel 
     made using coal as a feedstock in a Fischer-Tropche 
     process.''.
       (2) Clerical amendment.--The table of section at the 
     beginning of subchapter II of such chapter is amended by 
     adding at the end the following new item:

``2263. Fuel: minimum requirements for utilization of synthetic 
              fuel.''.
       (c) Commercial Aircraft Study.--
       (1) In general.--The Secretary of Defense shall, in 
     consultation with the Secretary of Energy and the 
     Administrator of the Federal Aviation Administration, conduct 
     a study on aircraft engines and airframes for non-fighter 
     aircraft, including commercial aircraft, to determine the 
     quantity of fuel produced using synthetic fuel technology 
     that may be used without compromising health, safety, or 
     longevity of such engines and airframes, including an 
     analysis of any environmental benefits from using the fuel.
       (2) Report.--Not later than 180 days after the date of the 
     completion of the study under paragraph (1), the Secretary of 
     Defense shall submit to Congress a report that describes--
       (A) the results of the study; and
       (B) any recommendations of the Secretary of Defense.
       (d) Synthetic Fuel Defined.--In this section, the term 
     ``synthetic fuel'' has the meaning given that term in section 
     2263(e) of title 10, United States Code (as added by 
     subsection (b)).
                                 ______
                                 
  SA 2325. Mr. BAUCUS (for himself and Mr. Tester) submitted an 
amendment intended to be proposed by him to the bill H.R. 1585, to 
authorize appropriations for fiscal year 2008 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe military 
personnel strengths for such fiscal year, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end of subtitle C of title X, add the following:

     SEC. 1031. LIMITATIONS ON REMOVAL OF MISSILES FROM THE 564TH 
                   MISSILE SQUADRON.

       Not more than 40 missiles may be removed from the 564th 
     Missile Squadron until the later of the following dates:
       (1) The date of the submittal to Congress of a report by 
     the Department of Defense that identifies additional missions 
     (including additional missions for any of the Armed Forces) 
     that could be located at Malmstrom Air Force Base, Montana.
       (2) December 31, 2008.
                                 ______
                                 
  SA 2326. Mr. CARDIN (for himself, Mr. Biden, Mr. Stevens, Mr. Bayh, 
Mrs. Clinton, Ms. Mikulski, Ms. Murkowski, Mr. Kerry, Mr. Vitter, Mr. 
Isakson, Mr. Lautenberg, and Mr. Kennedy) submitted an amendment 
intended to be proposed by him to the bill H.R. 1585, to authorize 
appropriations for fiscal year 2008 for military activities of the 
Department of Defense, for military construction, and for defense 
activities of the Department of Energy, to prescribe military personnel 
strengths for such fiscal year, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of subtitle E of title X, add the following:

     SEC. 1070. GRANT OF FEDERAL CHARTER TO KOREAN WAR VETERANS 
                   ASSOCIATION, INCORPORATED.

       (a) Grant of Charter.--Part B of subtitle II of title 36, 
     United States Code, is amended--
       (1) by striking the following:

                     ``CHAPTER 1201--[RESERVED]'';

       and
       (2) by inserting after chapter 1103 the following new 
     chapter:

     ``CHAPTER 1201--KOREAN WAR VETERANS ASSOCIATION, INCORPORATED

``Sec.
``120101. Organization.
``120102. Purposes.
``120103. Membership.
``120104. Governing body.
``120105. Powers.
``120106. Restrictions.
``120107. Tax-exempt status required as condition of charter.
``120108. Records and inspection.
``120109. Service of process.
``120110. Liability for acts of officers and agents.
``120111. Annual report.
``120112. Definition.

     ``Sec. 120101. Organization

       ``(a) Federal Charter.--Korean War Veterans Association, 
     Incorporated (in this chapter, the `corporation'), a 
     nonprofit organization that meets the requirements for a 
     veterans service organization under section 501(c)(19) of the 
     Internal Revenue Code of 1986 and that is organized under the 
     laws of the State of New York, is a federally chartered 
     corporation.
       ``(b) Expiration of Charter.--If the corporation does not 
     comply with the provisions of this chapter, the charter 
     granted by subsection (a) shall expire.

     ``Sec. 120102. Purposes

       ``The purposes of the corporation are those provided in the 
     articles of incorporation of the corporation and shall 
     include the following:
       ``(1) To organize as a veterans service organization in 
     order to maintain a continuing interest in the welfare of 
     veterans of the Korean War, and rehabilitation of the 
     disabled veterans of the Korean War to include all that 
     served during active hostilities and subsequently in defense 
     of the Republic of Korea, and their families.
       ``(2) To establish facilities for the assistance of all 
     veterans and to represent them in their claims before the 
     Department of Veterans Affairs and other organizations 
     without charge.
       ``(3) To perpetuate and preserve the comradeship and 
     friendships born on the field of battle and nurtured by the 
     common experience of service to the United States during the 
     time of war and peace.
       ``(4) To honor the memory of the men and women who gave 
     their lives so that the United States and the world might be 
     free and live by the creation of living memorial, monuments, 
     and other forms of additional educational, cultural, and 
     recreational facilities.
       ``(5) To preserve for the people of the United States and 
     posterity of such people the great and basic truths and 
     enduring principles upon which the United States was founded.

     ``Sec. 120103. Membership

       ``Eligibility for membership in the corporation, and the 
     rights and privileges of members of the corporation, are as 
     provided in the bylaws of the corporation.

     ``Sec. 120104. Governing body

       ``(a) Board of Directors.--The composition of the board of 
     directors of the corporation, and the responsibilities of the 
     board, are as provided in the articles of incorporation of 
     the corporation.
       ``(b) Officers.--The positions of officers of the 
     corporation, and the election of the officers, are as 
     provided in the articles of incorporation.

     ``Sec. 120105. Powers

       ``The corporation has only those powers provided in its 
     bylaws and articles of incorporation filed in each State in 
     which it is incorporated.

     ``Sec. 120106. Restrictions

       ``(a) Stock and Dividends.--The corporation may not issue 
     stock or declare or pay a dividend.
       ``(b) Political Activities.--The corporation, or a director 
     or officer of the corporation as such, may not contribute to, 
     support, or participate in any political activity or in any 
     manner attempt to influence legislation.
       ``(c) Loan.--The corporation may not make a loan to a 
     director, officer, or employee of the corporation.
       ``(d) Claim of Governmental Approval or Authority.--The 
     corporation may not claim congressional approval, or the 
     authority of the United States, for any activity of the 
     corporation.
       ``(e) Corporate Status.--The corporation shall maintain its 
     status as a corporation incorporated under the laws of the 
     State of New York.

     ``Sec. 120107. Tax-exempt status required as condition of 
       charter

       ``If the corporation fails to maintain its status as an 
     organization exempt from taxation under the Internal Revenue 
     Code of 1986, the charter granted under this chapter shall 
     terminate.

[[Page 19512]]



     ``Sec. 120108. Records and inspection

       ``(a) Records.--The corporation shall keep--
       ``(1) correct and complete records of account;
       ``(2) minutes of the proceedings of the members, board of 
     directors, and committees of the corporation having any of 
     the authority of the board of directors of the corporation; 
     and
       ``(3) at the principal office of the corporation, a record 
     of the names and addresses of the members of the corporation 
     entitled to vote on matters relating to the corporation.
       ``(b) Inspection.--A member entitled to vote on any matter 
     relating to the corporation, or an agent or attorney of the 
     member, may inspect the records of the corporation for any 
     proper purpose, at any reasonable time.

     ``Sec. 120109. Service of process

       ``The corporation shall have a designated agent in the 
     District of Columbia to receive service of process for the 
     corporation. Notice to or service on the agent is notice to 
     or service on the corporation.

     ``Sec. 120110. Liability for acts of officers and agents

       ``The corporation is liable for any act of any officer or 
     agent of the corporation acting within the scope of the 
     authority of the corporation.

     ``Sec. 120111. Annual report

       ``The corporation shall submit to Congress an annual report 
     on the activities of the corporation during the preceding 
     fiscal year. The report shall be submitted at the same time 
     as the report of the audit required by section 10101(b) of 
     this title. The report may not be printed as a public 
     document.

     ``Sec. 120112. Definition

       ``For purposes of this chapter, the term `State' includes 
     the District of Columbia and the territories and possessions 
     of the United States.''.
       (b) Clerical Amendment.--The item relating to chapter 1201 
     in the table of chapters at the beginning of subtitle II of 
     title 36, United States Code, is amended to read as follows:

``1201. Korean War Veterans Association, Incorporated.........120101''.

                                 ______
                                 
  SA 2327. Mr. KENNEDY proposed an amendment to the bill H.R. 2669, to 
provide for reconciliation pursuant to section 601 of the concurrent 
resolution on the budget for fiscal year 2008; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE; REFERENCES.

       (a) Short Title.--This Act may be cited as the ``Higher 
     Education Access Act of 2007''.
       (b) References.--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.).

  TITLE I--GRANTS TO STUDENTS IN ATTENDANCE AT INSTITUTIONS OF HIGHER 
                               EDUCATION

     SEC. 101. TUITION SENSITIVITY.

       (a) Amendment.--Section 401(b) (20 U.S.C. 1070a(b)) is 
     amended by striking paragraph (3).
       (b) Authorization and Appropriation of Funds.--There is 
     authorized to be appropriated, and there is appropriated, out 
     of any money in the Treasury not otherwise appropriated, for 
     the Department of Education to carry out the amendment made 
     by subsection (a), $5,000,000 for fiscal year 2008.

     SEC. 102. PROMISE GRANTS.

       (a) Amendment.--Subpart 1 of part A of title IV (20 U.S.C. 
     1070a et seq.) is amended by adding at the end the following:

     ``SEC. 401B. PROMISE GRANTS.

       ``(a) Grants.--
       ``(1) In general.--From amounts appropriated under 
     subsection (e) for a fiscal year and subject to subsection 
     (b), the Secretary shall award grants to students in the same 
     manner as the Secretary awards Federal Pell Grants to 
     students under section 401, except that--
       ``(A) at the beginning of each award year, the Secretary 
     shall establish a maximum and minimum award level based on 
     amounts made available under subsection (e);
       ``(B) the Secretary shall only award grants under this 
     section to students eligible for a Federal Pell Grant for the 
     award year; and
       ``(C) when determining eligibility for the awards under 
     this section, the Secretary shall consider only those 
     students who submitted a Free Application for Federal Student 
     Aid or other common reporting form under section 483 as of 
     July 1 of the award year for which the determination is made.
       ``(2) Students with the greatest need.--The Secretary shall 
     ensure grants are awarded under this section to students with 
     the greatest need as determined in accordance with section 
     471.
       ``(b) Cost of Attendance Limitation.--A grant awarded under 
     this section for an award year shall be awarded in an amount 
     that does not exceed--
       ``(1) the student's cost of attendance for the award year; 
     less
       ``(2) an amount equal to the sum of--
       ``(A) the expected family contribution for the student for 
     the award year; and
       ``(B) any Federal Pell Grant award received by the student 
     for the award year.
       ``(c) Supplement Not Supplant.--Grants awarded from funds 
     made available under subsection (e) shall be used to 
     supplement, and not supplant, other Federal, State, or 
     institutional grant funds.
       ``(d) Use of Excess Funds.--
       ``(1) Fifteen percent or less.--If, at the end of a fiscal 
     year, the funds available for making grant payments under 
     this section exceed the amount necessary to make the grant 
     payments required under this section to eligible students by 
     15 percent or less, then all of the excess funds shall remain 
     available for making grant payments under this section during 
     the next succeeding fiscal year.
       ``(2) More than fifteen percent.--If, at the end of a 
     fiscal year, the funds available for making grant payments 
     under this section exceed the amount necessary to make the 
     grant payments required under this section to eligible 
     students by more than 15 percent, then all of such funds 
     shall remain available for making such grant payments but 
     grant payments may be made under this paragraph only with 
     respect to awards for that fiscal year.
       ``(e) Authorization and Appropriation of Funds.--
       ``(1) In general.--There are authorized to be appropriated, 
     and there are appropriated, out of any money in the Treasury 
     not otherwise appropriated, for the Department of Education 
     to carry out this section--
       ``(A) $2,620,000,000 for fiscal year 2008;
       ``(B) $3,040,000,000 for fiscal year 2009;
       ``(C) $3,460,000,000 for fiscal year 2010;
       ``(D) $3,900,000,000 for fiscal year 2011;
       ``(E) $4,020,000,000 for fiscal year 2012;
       ``(F) $10,000,000 for fiscal year 2013; and
       ``(G) $3,200,000,000 for each of the fiscal years 2014 
     through 2017.
       ``(2) Availability of funds.--Funds appropriated under 
     paragraph (1) for a fiscal year shall remain available 
     through the last day of the fiscal year immediately 
     succeeding the fiscal year for which the funds are 
     appropriated.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on July 1, 2008.

         TITLE II--STUDENT LOAN BENEFITS, TERMS, AND CONDITIONS

     SEC. 201. DEFERMENTS.

       (a) FISL.--Section 427(a)(2)(C)(iii) (20 U.S.C. 
     1077(a)(2)(C)(iii)) is amended by striking ``3 years'' and 
     inserting ``6 years''.
       (b) Interest Subsidies.--Section 428(b)(1)(M)(iv) (20 
     U.S.C. 1078(b)(1)(M)(iv)) is amended by striking ``3 years'' 
     and inserting ``6 years''.
       (c) Direct Loans.--Section 455(f)(2)(D) (20 U.S.C. 
     1087e(f)(2)(D)) is amended by striking ``3 years'' and 
     inserting ``6 years''.
       (d) Perkins.--Section 464(c)(2)(A)(iv) (20 U.S.C. 
     1087dd(c)(2)(A)(iv)) is amended by striking ``3 years'' and 
     inserting ``6 years''.
       (e) Effective Date and Applicability.--The amendments made 
     by this section shall take effect on July 1, 2008, and shall 
     only apply with respect to the loans made to a borrower of a 
     loan under title IV of the Higher Education Act of 1965 who 
     obtained the borrower's first loan under such title prior to 
     October 1, 2012.

     SEC. 202. STUDENT LOAN DEFERMENT FOR CERTAIN MEMBERS OF THE 
                   ARMED FORCES.

       (a) Federal Family Education Loans.--Section 
     428(b)(1)(M)(iii) (20 U.S.C. 1078(b)(1)(M)(iii)) is amended--
       (1) in the matter preceding subclause (I), by striking 
     ``not in excess of 3 years'';
       (2) in subclause (II), by striking ``; or'' and inserting a 
     comma; and
       (3) by adding at the end the following:
     ``and for the 180-day period following the demobilization 
     date for the service described in subclause (I) or (II); 
     or''.
       (b) Direct Loans.--Section 455(f)(2)(C) (20 U.S.C. 
     1087e(f)(2)(C)) is amended--
       (1) in the matter preceding clause (i), by striking ``not 
     in excess of 3 years'';
       (2) in clause (ii), by striking ``; or'' and inserting a 
     comma; and
       (3) by adding at the end the following:
     ``and for the 180-day period following the demobilization 
     date for the service described in clause (i) or (ii); or''.
       (c) Perkins Loans.--Section 464(c)(2)(A)(iii) (20 U.S.C. 
     1087dd(c)(2)(A)(iii)) is amended--
       (1) in the matter preceding subclause (I), by striking 
     ``not in excess of 3 years'';
       (2) in subclause (II), by striking the semicolon and 
     inserting a comma; and
       (3) by adding at the end the following:
     ``and for the 180-day period following the demobilization 
     date for the service described in subclause (I) or (II);''.
       (d) Applicability.--Section 8007(f) of the Higher Education 
     Reconciliation Act of 2005 (20 U.S.C. 1078 note) is amended 
     by striking ``loans for which'' and all that follows through 
     the period at the end and inserting ``all loans under title 
     IV of the Higher Education Act of 1965.''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 2008.

[[Page 19513]]



     SEC. 203. INCOME-BASED REPAYMENT PLANS.

       (a) FFEL.--Section 428 (as amended by sections 201(b) and 
     202(a)) (20 U.S.C. 1078) is further amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (D), by striking ``income contingent'' 
     and inserting ``income-based''; and
       (ii) in subparagraph (E)(i), by striking ``income-
     sensitive'' and inserting ``income-based''; and
       (B) by striking clause (iii) of paragraph (9)(A) and 
     inserting the following:
       ``(iii) an income-based repayment plan, with parallel 
     terms, conditions, and benefits as the income-based repayment 
     plan described in subsections (e) and (d)(1)(D) of section 
     455, except that--

       ``(I) the plan described in this clause shall not be 
     available to a borrower of an excepted PLUS loan (as defined 
     in section 455(e)(10)) or of a loan made under 428C that 
     includes an excepted PLUS loan;
       ``(II) in lieu of the process of obtaining Federal income 
     tax returns and information from the Internal Revenue 
     Service, as described in section 455(e)(1), the borrower 
     shall provide the lender with a copy of the Federal income 
     tax return and return information for the borrower (and, if 
     applicable, the borrower's spouse) for the purposes described 
     in section 455(e)(1), and the lender shall determine the 
     repayment obligation on the loan, in accordance with the 
     procedures developed by the Secretary;
       ``(III) in lieu of the requirements of section 455(e)(3), 
     in the case of a borrower who chooses to repay a loan made, 
     insured, or guaranteed under this part pursuant to income-
     based repayment and for whom the adjusted gross income is 
     unavailable or does not reasonably reflect the borrower's 
     current income, the borrower shall provide the lender with 
     other documentation of income that the Secretary has 
     determined is satisfactory for similar borrowers of loans 
     made under part D;
       ``(IV) the Secretary shall pay any interest due and not 
     paid for under the repayment schedule described in section 
     455(e)(4) for a loan made, insured, or guaranteed under this 
     part in the same manner as the Secretary pays any such 
     interest under section 455(e)(6) for a Federal Direct 
     Stafford Loan;
       ``(V) the Secretary shall assume the obligation to repay an 
     outstanding balance of principal and interest due on all 
     loans made, insured, or guaranteed under this part (other 
     than an excepted PLUS Loan or a loan under section 428C that 
     includes an excepted PLUS loan), for a borrower who satisfies 
     the requirements of subparagraphs (A) and (B) of section 
     455(e)(7), in the same manner as the Secretary cancels such 
     outstanding balance under section 455(e)(7); and
       ``(VI) in lieu of the notification requirements under 
     section 455(e)(8), the lender shall notify a borrower of a 
     loan made, insured, or guaranteed under this part who chooses 
     to repay such loan pursuant to income-based repayment of the 
     terms and conditions of such plan, in accordance with the 
     procedures established by the Secretary, including 
     notification that--

       ``(aa) the borrower shall be responsible for providing the 
     lender with the information necessary for documentation of 
     the borrower's income, including income information for the 
     borrower's spouse (as applicable); and
       ``(bb) if the borrower considers that special circumstances 
     warrant an adjustment, as described in section 455(e)(8)(B), 
     the borrower may contact the lender, and the lender shall 
     determine whether such adjustment is appropriate, in 
     accordance with the criteria established by the Secretary; 
     and'';
       (2) in subsection (e)--
       (A) in the subsection heading, by striking ``Income-
     Sensitive'' and inserting ``Income-Based'';
       (B) in paragraph (1)--
       (i) by striking ``income-sensitive repayment'' and 
     inserting ``income-based repayment''; and
       (ii) by inserting ``and for the public service loan 
     forgiveness program under section 455(m), in accordance with 
     section 428C(b)(5)'' before the semicolon; and
       (C) in paragraphs (2) and (3), by striking ``income-
     sensitive'' each place the term occurs and inserting 
     ``income-based''; and
       (3) in subsection (m)--
       (A) in the subsection heading, by striking ``Income 
     Contingent'' and inserting ``Income-Based'';
       (B) in paragraph (1), by striking ``income contingent 
     repayment plan'' and all that follows through the period at 
     the end and inserting ``income-based repayment plan as 
     described in subsection (b)(9)(A)(iii) and section 
     455(d)(1)(D).''; and
       (C) in the paragraph heading of paragraph (2), by striking 
     ``income contingent'' and inserting ``income-based''.
       (b) Consolidation Loans.--Section 428C (20 U.S.C. 1078-3) 
     is amended--
       (1) in subsection (a)(3)(B)(i)(V), by striking ``for the 
     purposes of obtaining an income contingent repayment plan,'' 
     and inserting ``for the purpose of using the public service 
     loan forgiveness program under section 455(m),'';
       (2) in subsection (b)(5)--
       (A) in the first sentence, by striking ``, or is unable to 
     obtain a consolidation loan with income-sensitive repayment 
     terms acceptable to the borrower from such a lender,'' and 
     inserting ``, or chooses to obtain a consolidation loan for 
     the purposes of using the public service loan forgiveness 
     program offered under section 455(m),''; and
       (B) in the second sentence, by striking ``income contingent 
     repayment under part D of this title'' and inserting 
     ``income-based repayment''; and
       (3) in subsection (c)--
       (A) in paragraph (2)(A)--
       (i) in the first sentence, by striking ``of graduated or 
     income-sensitive repayment schedules, established by the 
     lender in accordance with the regulations of the Secretary.'' 
     and inserting ``of graduated repayment schedules, established 
     by the lender in accordance with the regulations of the 
     Secretary, and income-based repayment schedules, established 
     pursuant to regulations by the Secretary.''; and
       (ii) in the second sentence, by striking ``Except as 
     required'' and all that follows through ``subsection 
     (b)(5),'' and inserting ``Except as required by such income-
     based repayment schedules,''; and
       (B) in paragraph (3)(B), by striking ``income contingent 
     repayment offered by the Secretary under subsection (b)(5)'' 
     and inserting ``income-based repayment''.
       (c) Direct Loans.--Section 455 (as amended by sections 
     201(c) and 202(b)) (20 U.S.C. 1087e) is further amended--
       (1) in subsection (d)--
       (A) in paragraph (1)(D)--
       (i) by striking ``income contingent repayment plan'' and 
     inserting ``income-based repayment plan''; and
       (ii) by striking ``a Federal Direct PLUS loan'' and 
     inserting ``an excepted PLUS loan or any Federal Direct 
     Consolidation Loan that includes an excepted PLUS loan (as 
     defined in subsection (e)(10))''; and
       (B) in paragraph (5)(B), by striking ``income contingent'' 
     and inserting ``income-based''; and
       (2) in subsection (e)--
       (A) in the subsection heading, by striking ``Income 
     Contingent'' and inserting ``Income-Based'';
       (B) in paragraphs (1), (2), and (3), by striking ``income 
     contingent'' each place the term appears and inserting 
     ``income-based'';
       (C) in paragraph (4)--
       (i) by striking ``Income contingent'' and inserting 
     ``Income-based''; and
       (ii) by striking ``Secretary.'' and inserting ``Secretary, 
     except that the monthly required payment under such schedule 
     shall not exceed 15 percent of the result obtained by 
     calculating the amount by which--
       ``(A) the borrower's adjusted gross income; exceeds
       ``(B) 150 percent of the poverty line applicable to the 
     borrower's family size, as determined under section 673(2) of 
     the Community Service Block Grant Act,
     divided by 12.'';
       (D) in paragraph (5), by striking ``income contingent'' and 
     inserting ``income-based'';
       (E) by redesignating paragraph (6) as paragraph (8);
       (F) by inserting after paragraph (5) the following:
       ``(6) Treatment of interest.--In the case of a Federal 
     Direct Stafford Loan, any interest due and not paid for under 
     paragraph (2) shall be paid by the Secretary.
       ``(7) Loan forgiveness.--The Secretary shall cancel the 
     obligation to repay an outstanding balance of principal and 
     interest due on all loans made under this part, or assume the 
     obligation to repay an outstanding balance of principal and 
     interest due on all loans made, insured, or guaranteed under 
     part B, (other than an excepted PLUS Loan, or any Federal 
     Direct Consolidation Loan or loan under section 428C that 
     includes an excepted PLUS loan) to a borrower who--
       ``(A) makes the election under this subsection or under 
     section 428(b)(9)(A)(iii); and
       ``(B) for a period of time prescribed by the Secretary not 
     to exceed 25 years (including any period during which the 
     borrower is in deferment due to an economic hardship 
     described in section 435(o)), meets 1 of the following 
     requirements with respect to each payment made during such 
     period:
       ``(i) Has made the payment under this subsection or section 
     428(b)(9)(A)(iii).
       ``(ii) Has made the payment under a standard repayment plan 
     under section 428(b)(9)(A)(i) or 455(d)(1)(A).
       ``(iii) Has made a payment that counted toward the maximum 
     repayment period under income-sensitive repayment under 
     section 428(b)(9)(A)(iii) or income contingent repayment 
     under section 455(d)(1)(D), as each such section was in 
     effect on June 30, 2008.
       ``(iv) Has made a reduced payment of not less than the 
     amount required under subsection (e), pursuant to a 
     forbearance agreement under section 428(c)(3)(A)(i) for a 
     borrower described in 428(c)(3)(A)(i)(II).'';
       (G) in the matter preceding subparagraph (A) of paragraph 
     (8) (as redesignated by subparagraph (E)), by striking 
     ``income contingent'' and inserting ``income-based''; and
       (H) by adding at the end the following:
       ``(9) Return to standard repayment.--A borrower who is 
     repaying a loan made under this part pursuant to income-based 
     repayment may choose, at any time, to terminate

[[Page 19514]]

     repayment pursuant to income-based repayment and repay such 
     loan under the standard repayment plan.
       ``(10) Definition of excepted plus loan.--In this 
     subsection, the term `excepted PLUS loan' means a Federal 
     Direct PLUS loan or a loan under section 428B that is made, 
     insured, or guaranteed on behalf of a dependent student.''.
       (d) Conforming Amendments and Technical Corrections.--The 
     Act (20 U.S.C. 1001 et seq.) is further amended--
       (1) in section 427(a)(2)(H) (20 U.S.C. 1077(a)(2)(H))--
       (A) by striking ``or income-sensitive''; and
       (B) by inserting ``or income-based repayment schedule 
     established pursuant to regulations by the Secretary'' before 
     the semicolon at the end; and
       (2) in section 455(d)(1)(C) (20 U.S.C. 1087e(d)(1)(C)), by 
     striking ``428(b)(9)(A)(v)'' and inserting 
     ``428(b)(9)(A)(iv)''.
       (e) Transition Provision.--A student who, as of June 30, 
     2008, elects to repay a loan under part B or part D of the 
     Higher Education Act of 1965 (20 U.S.C. 1071 et seq., 1087a 
     et seq.) through an income-sensitive repayment plan under 
     section 428(b)(9)(A)(iii) of such Act (20 U.S.C. 
     1078(b)(9)(A)(iii)) or an income contingent repayment plan 
     under section 455(d)(1)(D) of such Act (20 U.S.C. 
     1087e(d)(1)(D)) (as each such section was in effect on the 
     day before the date of enactment of this Act) shall have the 
     option to continue repayment under such section (as such 
     section was in effect on such day), or may elect, beginning 
     on July 1, 2008, to use the income-based repayment plan under 
     section 428(b)(9)(A)(iii) or 455(d)(1)(D) (as applicable) of 
     the Higher Education Act of 1965, as amended by this section.
       (f) Effective Date and Applicability.--The amendments made 
     by this section shall take effect on July 1, 2008, and shall 
     only apply with respect to a borrower of a loan under title 
     IV of the Higher Education Act of 1965 who obtained the 
     borrower's first loan under such title prior to October 1, 
     2012.

            TITLE III--FEDERAL FAMILY EDUCATION LOAN PROGRAM

     SEC. 301. REDUCTION OF LENDER INSURANCE PERCENTAGE.

       (a) Amendment.--Section 428(b)(1)(G) (20 U.S.C. 
     1078(b)(1)(G)) is amended--
       (1) in the matter preceding clause (i), by striking 
     ``insures 98 percent'' and inserting ``insures 97 percent'';
       (2) in clause (i), by inserting ``and'' after the 
     semicolon;
       (3) by striking clause (ii); and
       (4) by redesignating clause (iii) as clause (ii).
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect with respect to loans made on or after 
     October 1, 2007.

     SEC. 302. GUARANTY AGENCY COLLECTION RETENTION.

       Clause (ii) of section 428(c)(6)(A) (20 U.S.C. 
     1078(c)(6)(A)(ii)) is amended to read as follows:
       ``(ii) an amount equal to 24 percent of such payments for 
     use in accordance with section 422B, except that--
       ``(I) beginning October 1, 2003 and ending September 30, 
     2007, this subparagraph shall be applied by substituting `23 
     percent' for `24 percent'; and
       ``(II) beginning October 1, 2007, this subparagraph shall 
     be applied by substituting `16 percent' for `24 percent'.''.

     SEC. 303. ELIMINATION OF EXCEPTIONAL PERFORMER STATUS FOR 
                   LENDERS.

       (a) Elimination of Status.--Part B of title IV (20 U.S.C. 
     1071 et seq.) is amended by striking section 428I (20 U.S.C. 
     1078-9).
       (b) Conforming Amendments.--Part B of title IV is further 
     amended--
       (1) in section 428(c)(1) (20 U.S.C. 1078(c)(1))--
       (A) by striking subparagraph (D); and
       (B) by redesignating subparagraphs (E) through (H) as 
     subparagraphs (D) through (G), respectively; and
       (2) in section 438(b)(5) (20 U.S.C. 1087-1(b)(5)), by 
     striking the matter following subparagraph (B).
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on October 1, 2007, except that 
     section 428I of the Higher Education Act of 1965 (as in 
     effect on the day before the date of enactment of this Act) 
     shall apply to eligible lenders that received a designation 
     under subsection (a) of such section prior to October 1, 
     2007, for the remainder of the year for which the designation 
     was made.

     SEC. 304. DEFINITIONS.

       (a) Amendments.--Section 435 (20 U.S.C. 1085) is amended--
       (1) in subsection (o)(1)--
       (A) in subparagraph (A)(ii), by striking ``100 percent of 
     the poverty line for a family of 2'' and inserting ``150 
     percent of the poverty line applicable to the borrower's 
     family size''; and
       (B) in subparagraph (B)(ii), by striking ``to a family of 
     two'' and inserting ``to the borrower's family size''; and
       (2) by adding at the end the following:
       ``(p) Eligible Not-for-Profit Holder.--
       ``(1) Definition of eligible not-for-profit holder.--The 
     term `eligible not-for-profit holder' means an eligible 
     lender under subsection (d) (except for an eligible lender 
     described in subsection (d)(1)(E)) that requests a special 
     allowance payment under section 438(b)(2)(I)(vi)(II) and that 
     is--
       ``(A) a State of the United States, or a political 
     subdivision thereof, or an authority, agency, or other 
     instrumentality thereof (including such entities that are 
     eligible to issue bonds described in section 1.103-1 of title 
     26, Code of Federal Regulations, or section 144(b) of the 
     Internal Revenue Code of 1986);
       ``(B) an entity described in section 150(d)(2) of such Code 
     that has not made the election described in section 150(d)(3) 
     of such Code;
       ``(C) an entity described in section 501(c)(3) of such 
     Code; or
       ``(D) a trustee acting as an eligible lender on behalf of 
     an entity described in subparagraph (A), (B), or (C),
     except that no entity described in subparagraph (A), (B), or 
     (C) shall be owned or controlled in whole or in part by a 
     for-profit entity.
       ``(2) Prohibition.--In the case of a loan for which the 
     special allowance payment is calculated under section 
     438(b)(2)(I)(vi)(II) and that is sold by the eligible not-
     for-profit holder holding the loan to a for-profit entity or 
     to an entity that is not an eligible not-for-profit holder, 
     the special allowance payment for such loan shall, beginning 
     on the date of the sale, no longer be calculated under 
     section 438(b)(2)(I)(vi)(II) and shall be calculated under 
     section 438(b)(2)(I)(vi)(I) instead.
       ``(3) Regulations.--Not later than 1 year after the date of 
     enactment of the Higher Education Access Act of 2007, the 
     Secretary shall promulgate regulations in accordance with the 
     provisions of this subsection.''.
       (b) Applicability.--The amendment made by subsection (a)(1) 
     shall only apply with respect to any borrower of a loan under 
     title IV of the Higher Education Act of 1965 who obtained the 
     borrower's first loan under such title prior to October 1, 
     2012.

     SEC. 305. SPECIAL ALLOWANCES.

       (a) Reduction of Lender Special Allowance Payments.--
     Section 438(b)(2)(I) (20 U.S.C. 1087-1(b)(2)(I)) is amended--
       (1) in clause (i), by striking ``(iii), and (iv)'' and 
     inserting ``(iii), (iv), and (vi)''; and
       (2) by adding at the end the following:
       ``(vi) Reduction for loans disbursed on or after october 1, 
     2007.--With respect to a loan on which the applicable 
     interest rate is determined under section 427A(l) and for 
     which the first disbursement of principal is made on or after 
     October 1, 2007, the special allowance payment computed 
     pursuant to this subparagraph shall be computed--

       ``(I) for loans held by an eligible lender not described in 
     subclause (II)--

       ``(aa) by substituting `1.24 percent' for `1.74 percent' in 
     clause (ii);
       ``(bb) by substituting `1.84 percent' for `2.34 percent' 
     each place the term appears in this subparagraph;
       ``(cc) by substituting `1.84 percent' for `2.64 percent' in 
     clause (iii); and
       ``(dd) by substituting `2.14 percent' for `2.64 percent' in 
     clause (iv); and

       ``(II) for loans held by an eligible not-for-profit 
     holder--

       ``(aa) by substituting `1.99 percent' for `2.34 percent' 
     each place the term appears in this subparagraph;
       ``(bb) by substituting `1.39 percent' for `1.74 percent' in 
     clause (ii);
       ``(cc) by substituting `1.99 percent' for `2.64 percent' in 
     clause (iii); and
       ``(dd) by substituting `2.29 percent' for `2.64 percent' in 
     clause (iv).''.
       (b) Increased Loan Fees From Lenders.--Paragraph (2) of 
     section 438(d) (20 U.S.C. 1087-1(d)(2)) is amended to read as 
     follows:
       ``(2) Amount of loan fees.--The amount of the loan fee 
     which shall be deducted under paragraph (1), but which may 
     not be collected from the borrower, shall be equal to 1.0 
     percent of the principal amount of the loan with respect to 
     any loan under this part for which the first disbursement was 
     made on or after October 1, 2007.''.

         TITLE IV--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM

     SEC. 401. LOAN FORGIVENESS FOR PUBLIC SERVICE EMPLOYEES.

       Section 455 (as amended by sections 201(c), 202(b), and 
     203(c)) (20 U.S.C. 1087e) is further amended by adding at the 
     end the following:
       ``(m) Repayment Plan for Public Service Employees.--
       ``(1) In general.--The Secretary shall cancel the balance 
     of interest and principal due, in accordance with paragraph 
     (2), on any eligible Federal Direct Loan not in default for 
     an eligible borrower who--
       ``(A) has made 120 monthly payments on the Federal Direct 
     Loan after October 1, 2007, pursuant to any combination of--
       ``(i) payments under an income-based repayment plan under 
     section 455(d)(1)(D);
       ``(ii) payments under a standard repayment plan under 
     section 455(d)(1)(A); or
       ``(iii) monthly payments under a repayment plan under 
     section 455(d)(1) of not less than the monthly amount 
     calculated under section 455(d)(1)(A); and
       ``(B)(i) is employed in a public service job at the time of 
     such forgiveness; and
       ``(ii) has been employed in a public service job during the 
     period in which the borrower makes each of the 120 payments 
     described in subparagraph (A).

[[Page 19515]]

       ``(2) Loan cancellation amount.--After the conclusion of 
     the employment period described in paragraph (1), the 
     Secretary shall cancel the obligation to repay, for each year 
     during such period described in paragraph (1)(B)(ii) for 
     which the eligible borrower submits documentation to the 
     Secretary that the borrower's annual adjusted gross income or 
     annual earnings were less than or equal to $65,000, \1/10\ of 
     the amount of the balance of principal and interest due as of 
     the time of such cancellation, on the eligible Federal Direct 
     Loans made to the borrower under this part.
       ``(3) Definitions.--In this subsection:
       ``(A) Eligible borrower.--The term `eligible borrower' 
     means a borrower who submits documentation to the Secretary 
     that the borrower's annual adjusted gross income or annual 
     earnings is less than or equal to $65,000.
       ``(B) Eligible federal direct loan.--The term `eligible 
     Federal Direct Loan' means a Federal Direct Stafford Loan, 
     Federal Direct PLUS Loan, Federal Direct Unsubsidized Loan, 
     or a Federal Direct Consolidation Loan if such consolidation 
     loan was obtained by the borrower under section 428C(b)(5) or 
     in accordance with section 428C(a)(3)(B)(i)(V).
       ``(C) Public service job.--In this paragraph, the term 
     `public service job' means--
       ``(i) a full-time job in public emergency management, 
     government, public safety, public law enforcement, public 
     health, public education, public early childhood education, 
     public child care, social work in a public child or family 
     service agency, public services for individuals with 
     disabilities, public services for the elderly, public 
     interest legal services (including prosecution or public 
     defense), public library sciences, public school library 
     sciences, or other public school-based services; or
       ``(ii) teaching as a full-time faculty member at a Tribal 
     College or University as defined in section 316(b).''.

     SEC. 402. UNIT COST CALCULATION FOR GUARANTY AGENCY ACCOUNT 
                   MAINTENANCE FEES.

       Section 458(b) (20 U.S.C. 1087h(b)) is amended--
       (1) by striking ``Account'' and inserting the following:
       ``(1) For fiscal years 2006 and 2007.--For each of the 
     fiscal years 2006 and 2007, account''; and
       (2) by adding at the end the following:
       ``(2) For fiscal year 2008 and succeeding fiscal years.--
       ``(A) In general.--For fiscal year 2008 and each succeeding 
     fiscal year, the Secretary shall calculate the account 
     maintenance fees payable to guaranty agencies under 
     subsection (a)(3), on a per-loan cost basis in accordance 
     with subparagraph (B).
       ``(B) Amount determination.--To determine the amount that 
     shall be paid under subsection (a)(3) per outstanding loan 
     guaranteed by a guaranty agency for fiscal year 2008 and 
     succeeding fiscal years, the Secretary shall--
       ``(i) establish the per-loan cost basis amount by dividing 
     the total amount of account maintenance fees paid under 
     subsection (a)(3) for fiscal year 2006 by the number of loans 
     under part B that were outstanding for that fiscal year; and
       ``(ii) for subsequent fiscal years, adjust the amount 
     determined under clause (i) as the Secretary determines 
     necessary to account for inflation.''.

                     TITLE V--FEDERAL PERKINS LOANS

     SEC. 501. DISTRIBUTION OF LATE COLLECTIONS.

       Section 466(b) (20 U.S.C. 1087ff(b)) is amended by striking 
     ``March 31, 2012'' and inserting ``September 30, 2012''.

                        TITLE VI--NEED ANALYSIS

     SEC. 601. SUPPORT FOR WORKING STUDENTS.

       (a) Dependent Students.--Subparagraph (D) of section 
     475(g)(2) (20 U.S.C. 1087oo(g)(2)(D)) is amended to read as 
     follows:
       ``(D) an income protection allowance of the following 
     amount (or a successor amount prescribed by the Secretary 
     under section 478):
       ``(i) for academic year 2009-2010, $3,750;
       ``(ii) for academic year 2010-2011, $4,500;
       ``(iii) for academic year 2011-2012, $5,250; and
       ``(iv) for academic year 2012-2013, $6,000;''.
       (b) Independent Students Without Dependents Other Than a 
     Spouse.--Clause (iv) of section 476(b)(1)(A) (20 U.S.C. 
     1087pp(b)(1)(A)(iv)) is amended to read as follows:
       ``(iv) an income protection allowance of the following 
     amount (or a successor amount prescribed by the Secretary 
     under section 478):

       ``(I) for single or separated students, or married students 
     where both are enrolled pursuant to subsection (a)(2)--

       ``(aa) for academic year 2009-2010, $7,000;
       ``(bb) for academic year 2010-2011, $7,780;
       ``(cc) for academic year 2011-2012, $8,550; and
       ``(dd) for academic year 2012-2013, $9,330; and

       ``(II) for married students where 1 is enrolled pursuant to 
     subsection (a)(2)--

       ``(aa) for academic year 2009-2010, $11,220;
       ``(bb) for academic year 2010-2011, $12,460;
       ``(cc) for academic year 2011-2012, $13,710; and
       ``(dd) for academic year 2012-2013, $14,960;''.
       (c) Independent Students With Dependents Other Than a 
     Spouse.--Paragraph (4) of section 477(b) (20 U.S.C. 
     1087qq(b)(4)) is amended to read as follows:
       ``(4) Income protection allowance.--The income protection 
     allowance is determined by the tables described in 
     subparagraphs (A) through (D) (or a successor table 
     prescribed by the Secretary under section 478).
       ``(A) Academic year 2009-2010.--For academic year 2009-
     2010, the income protection allowance is determined by the 
     following table:

                      ``Income Protection Allowance
------------------------------------------------------------------------
                                   Number in College
 Family Size  ----------------------------------------------------------
                    1           2           3           4          5
------------------------------------------------------------------------
           2      $17,720     $14,690
           3       22,060      19,050     $16,020
           4       27,250      24,220      21,210     $18,170
           5       32,150      29,120      26,100      23,070    $20,060
           6       37,600      34,570      31,570      28,520     25,520
------------------------------------------------------------------------
NOTE: For each additional family member, add $4,240. For each additional
  college student, subtract $3,020.

       ``(B) Academic year 2010-2011.--For academic year 2010-
     2011, the income protection allowance is determined by the 
     following table:

                      ``Income Protection Allowance
------------------------------------------------------------------------
                                   Number in College
 Family Size  ----------------------------------------------------------
                    1           2           3           4          5
------------------------------------------------------------------------
           2      $19,690     $16,330
           3       24,510      21,160     $17,800
           4       30,280      26,910      23,560     $20,190
           5       35,730      32,350      29,000      25,640    $22,290
           6       41,780      38,410      35,080      31,690     28,350
------------------------------------------------------------------------
NOTE: For each additional family member, add $4,710. For each additional
  college student, subtract $3,350.

       ``(C) Academic year 2011-2012.--For academic year 2011-
     2012, the income protection allowance is determined by the 
     following table:

                      ``Income Protection Allowance
------------------------------------------------------------------------
                                   Number in College
 Family Size  ----------------------------------------------------------
                    1           2           3           4          5
------------------------------------------------------------------------
           2      $21,660     $17,960

[[Page 19516]]

 
           3       26,960      23,280     $19,580
           4       33,300      29,600      25,920     $22,210
           5       39,300      35,590      31,900      28,200    $24,520
           6       45,950      42,250      38,580      34,860     31,190
------------------------------------------------------------------------
NOTE: For each additional family member, add $5,180. For each additional
  college student, subtract $3,690.

       ``(D) Academic year 2012-2013.--For academic year 2012-
     2013, the income protection allowance is determined by the 
     following table:

                      ``Income Protection Allowance
------------------------------------------------------------------------
                                   Number in College
 Family Size  ----------------------------------------------------------
                    1           2           3           4          5
------------------------------------------------------------------------
                  $23,630     $19,590
           3       29,420      25,400     $21,360
           4       36,330      32,300      28,280     $24,230
           5       42,870      38,820      34,800      30,770    $26,750
           6       50,130      46,100      42,090      38,030     34,020
------------------------------------------------------------------------
NOTE: For each additional family member, add $5,660. For each additional
  college student, subtract $4,020.''.

       (d) Updated Tables and Amounts.--Section 478(b) (20 U.S.C. 
     1087rr(b)) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) Revised tables.--
       ``(A) In general.--For each academic year after academic 
     year 2008-2009, the Secretary shall publish in the Federal 
     Register a revised table of income protection allowances for 
     the purpose of such sections, subject to subparagraphs (B) 
     and (C).
       ``(B) Table for independent students.--
       ``(i) Academic years 2009-2010 through 2012-2013.--For each 
     of the academic years 2009-2010 through 2012-2013, the 
     Secretary shall not develop a revised table of income 
     protection allowances under section 477(b)(4) and the table 
     specified for such academic year under subparagraphs (A) 
     through (D) of such section shall apply.
       ``(ii) Other academic years.--For each academic year after 
     academic year 2012-2013, the Secretary shall develop the 
     revised table of income protection allowances by increasing 
     each of the dollar amounts contained in the table of income 
     protection allowances under section 477(b)(4)(D) by a 
     percentage equal to the estimated percentage increase in the 
     Consumer Price Index (as determined by the Secretary) between 
     December 2011 and the December next preceding the beginning 
     of such academic year, and rounding the result to the nearest 
     $10.
       ``(C) Table for parents.--For each academic year after 
     academic year 2008-2009, the Secretary shall develop the 
     revised table of income protection allowances under section 
     475(c)(4) by increasing each of the dollar amounts contained 
     in the table by a percentage equal to the estimated 
     percentage increase in the Consumer Price Index (as 
     determined by the Secretary) between December 1992 and the 
     December next preceding the beginning of such academic year, 
     and rounding the result to the nearest $10.''; and
       (2) in paragraph (2), by striking ``shall be developed'' 
     and all that follows through the period at the end and 
     inserting ``shall be developed for each academic year after 
     academic year 2012-2013, by increasing each of the dollar 
     amounts contained in such section for academic year 2012-2013 
     by a percentage equal to the estimated percentage increase in 
     the Consumer Price Index (as determined by the Secretary) 
     between December 2011 and the December next preceding the 
     beginning of such academic year, and rounding the result to 
     the nearest $10.''.
       (e) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 2009.

     SEC. 602. AUTOMATIC ZERO IMPROVEMENTS.

       (a) In General.--Section 479(c) (20 U.S.C. 1087ss(c)) is 
     amended--
       (1) in paragraph (1)(B), by striking ``20,000'' and 
     inserting ``$30,000''; and
       (2) in paragraph (2)(B), by striking ``$20,000'' and 
     inserting ``$30,000''.
       (b) Effective Date.--The amendments made by this section 
     shall take effect on July 1, 2009.

     SEC. 603. DISCRETION OF STUDENT FINANCIAL AID ADMINISTRATORS.

       The third sentence of section 479A(a) (20 U.S.C. 1087tt(a)) 
     is amended--
       (1) by inserting ``or an independent student'' after 
     ``family member''; and
       (2) by inserting ``a change in housing status that results 
     in homelessness (as defined in section 103 of the McKinney-
     Vento Homeless Assistance Act),'' after ``under section 
     487,''.

     SEC. 604. DEFINITIONS.

       (a) In General.--Section 480 (20 U.S.C. 1087vv) is 
     amended--
       (1) in subsection (a)(2)--
       (A) by striking ``and no portion'' and inserting ``no 
     portion''; and
       (B) by inserting ``and no distribution from any qualified 
     education benefit described in subsection (f)(3) that is not 
     subject to Federal income tax,'' after ``1986,'';
       (2) in subsection (d)--
       (A) by redesignating paragraphs (1), (2), (3) through (6), 
     and (7) as subparagraphs (A), (B), (D) through (G), and (I), 
     respectively, and indenting appropriately;
       (B) by striking ``Independent Student.--The term'' and 
     inserting ``Independent Student.--
       ``(1) Definition.--The term'';
       (C) by striking subparagraph (B) (as redesignated by 
     subparagraph (A)) and inserting the following:
       ``(B) is an orphan, in foster care, or a ward of the court, 
     or was in foster care or a ward of the court until the 
     individual reached the age of 18;
       ``(C) is an emancipated minor or is in legal guardianship 
     as determined by a court of competent jurisdiction in the 
     individual's State of legal residence;'';
       (D) in subparagraph (G) (as redesignated by subparagraph 
     (A)), by striking ``or'' after the semicolon;
       (E) by inserting after subparagraph (G) (as redesignated by 
     subparagraph (A)) the following:
       ``(H) has been verified as an unaccompanied youth who is a 
     homeless child or youth (as such terms are defined in section 
     725 of the McKinney-Vento Homeless Assistance Act) during the 
     school year in which the application is submitted, by--
       ``(i) a local educational agency homeless liaison, 
     designated pursuant to section 722(g)(1)(J)(ii) of the 
     McKinney-Vento Homeless Assistance Act;
       ``(ii) the director of a program funded under the Runaway 
     and Homeless Youth Act or a designee of the director; or
       ``(iii) the director of a program funded under subtitle B 
     of title IV of the McKinney-Vento Homeless Assistance Act 
     (relating to emergency shelter grants) or a designee of the 
     director; or''; and
       (F) by adding at the end the following:
       ``(2) Simplifying the dependency override process.--A 
     financial aid administrator may make a determination of 
     independence under paragraph (1)(I) based upon a documented 
     determination of independence that was previously made by 
     another financial aid administrator under such paragraph in 
     the same award year.'';
       (3) in subsection (e)--
       (A) in paragraph (3), by striking ``and'' after the 
     semicolon;
       (B) in paragraph (4), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(5) special combat pay.'';
       (4) in subsection (f), by striking paragraph (3) and 
     inserting the following:
       ``(3) A qualified education benefit shall be considered an 
     asset of--
       ``(A) the student if the student is an independent student; 
     or
       ``(B) the parent if the student is a dependent student, 
     regardless of whether the owner of the account is the student 
     or the parent.'';
       (5) in subsection (j)--
       (A) in paragraph (2), by inserting ``, or a distribution 
     that is not includable in gross income under section 529 of 
     such Code, under another prepaid tuition plan offered by a 
     State, or under a Coverdell education savings account under 
     section 530 of such Code,'' after ``1986''; and

[[Page 19517]]

       (B) by adding at the end the following:
       ``(4) Notwithstanding paragraph (1), special combat pay 
     shall not be treated as estimated financial assistance for 
     purposes of section 471(3).''; and
       (6) by adding at the end the following:
       ``(n) Special Combat Pay.--The term `special combat pay' 
     means pay received by a member of the Armed Forces because of 
     exposure to a hazardous situation.''.

     SEC. 605. AUTHORIZATION AND APPROPRIATIONS.

       There are authorized to be appropriated, and there are 
     appropriated, out of any money in the Treasury not otherwise 
     appropriated, $10,000,000 for fiscal year 2008 for the 
     Department of Education to pay the estimated increase in 
     costs in the Federal Pell Grant program under section 401 of 
     the Higher Education Act of 1965 (20 U.S.C. 1070a) resulting 
     from the amendments made by sections 603 and 604 for award 
     year 2007-2008.

      TITLE VII--GENERAL PROVISIONS RELATING TO STUDENT ASSISTANCE

     SEC. 701. STUDENT ELIGIBILITY.

       (a) Amendments.--Section 484(r) (20 U.S.C. 1091(r)) is 
     amended--
       (1) in the table in paragraph (1), by inserting ``while 
     such student is enrolled in an institution of higher 
     education and receiving financial assistance under this 
     title'' after ``of a controlled substance'' each place the 
     term appears;
       (2) by redesignating paragraph (3) as paragraph (4); and
       (3) by inserting after paragraph (2) the following:
       ``(4) Interaction with fafsa.--The Secretary shall not 
     require a student to provide information regarding the 
     student's possession or sale of a controlled substance on the 
     Free Application for Federal Student Aid (FAFSA) or any other 
     common financial reporting form described in section 
     483(a).''.
       (b) Authorization and Appropriations.--There are authorized 
     to be appropriated, and there are appropriated, out of any 
     money in the Treasury not otherwise appropriated, $5,000,000 
     for fiscal year 2008 for the Department of Education to pay 
     the estimated increase in costs in the Federal Pell Grant 
     program under section 401 of the Higher Education Act of 1965 
     (20 U.S.C. 1070a) resulting from the amendments made by 
     subsection (a) for award year 2007-2008.

                       TITLE VIII--MISCELLANEOUS

     SEC. 801. COMPETITIVE LOAN AUCTION PILOT PROGRAM.

       Title IV (20 U.S.C. 1070 et seq.) is further amended by 
     adding at the end the following:

 ``PART I--COMPETITIVE LOAN AUCTION PILOT PROGRAM; STATE GRANT PROGRAM

     ``SEC. 499. COMPETITIVE LOAN AUCTION PILOT PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Eligible federal plus loan.--The term `eligible 
     Federal PLUS Loan' means a loan described in section 428B 
     made to a parent of a dependent student.
       ``(2) Eligible lender.--The term `eligible lender' has the 
     meaning given the term in section 435.
       ``(b) Pilot Program.--The Secretary shall carry out a pilot 
     program under which the Secretary establishes a mechanism for 
     an auction of eligible Federal PLUS Loans in accordance with 
     this subsection. The pilot program shall meet the following 
     requirements:
       ``(1) Planning and implementation.--During the period 
     beginning on the date of enactment of this section and ending 
     on June 30, 2009, the Secretary shall plan and implement the 
     pilot program under this subsection.
       ``(2) Origination and disbursement; applicability of 
     section 428b.--Beginning on July 1, 2009, the Secretary shall 
     arrange for the origination and disbursement of all eligible 
     Federal PLUS Loans in accordance with the provisions of this 
     subsection and the provisions of section 428B that are not 
     inconsistent with this subsection.
       ``(3) Loan origination mechanism.--The Secretary shall 
     establish a loan origination auction mechanism that meets the 
     following requirements:
       ``(A) Auction.--The Secretary administers an auction under 
     this paragraph for each State under which eligible lenders 
     compete to originate eligible Federal PLUS Loans under this 
     paragraph at all institutions of higher education within the 
     State.
       ``(B) Prequalification process.--The Secretary establishes 
     a prequalification process for eligible lenders desiring to 
     participate in an auction under this paragraph that contains, 
     at a minimum--
       ``(i) a set of borrower benefits and servicing requirements 
     each eligible lender shall meet in order to participate in 
     such an auction; and
       ``(ii) an assessment of each such eligible lender's 
     capacity, including capital capacity, to participate 
     effectively.
       ``(C) Timing and origination.--Each State auction takes 
     place every 2 years, and the eligible lenders with the 
     winning bids for the State are the only eligible lenders 
     permitted to originate eligible Federal PLUS Loans made under 
     this paragraph for the cohort of students at the institutions 
     of higher education within the State until the students 
     graduate from or leave the institutions of higher education.
       ``(D) Bids.--Each eligible lender's bid consists of the 
     amount of the special allowance payment (including the 
     recapture of excess interest) the eligible lender proposes to 
     accept from the Secretary with respect to the eligible 
     Federal PLUS Loans made under this paragraph in lieu of the 
     amount determined under section 438(b)(2)(I).
       ``(E) Maximum bid.--The maximum bid allowable under this 
     paragraph shall not exceed the amount of the special 
     allowance payable on eligible Federal PLUS Loans made under 
     this paragraph computed under section 438(b)(2)(I) (other 
     than clauses (ii), (iii), (iv), and (vi) of such section), 
     except that for purposes of the computation under this 
     subparagraph, section 438(b)(2)(I)(i)(III) shall be applied 
     by substituting `1.74 percent' for `2.34 percent'.
       ``(F) Winning bids.--The winning bids for each State 
     auction shall be the 2 bids containing the lowest and the 
     second lowest proposed special allowance payments, subject to 
     subparagraph (E).
       ``(G) Agreement with secretary.--Each eligible lender 
     having a winning bid under subparagraph (F) enters into an 
     agreement with the Secretary under which the eligible 
     lender--
       ``(i) agrees to originate eligible Federal PLUS Loans under 
     this paragraph to each borrower who--

       ``(I) seeks an eligible Federal PLUS Loan under this 
     paragraph to enable a dependent student to attend an 
     institution of higher education within the State;
       ``(II) is eligible for an eligible Federal PLUS Loan; and
       ``(III) elects to borrow from the eligible lender; and

       ``(ii) agrees to accept a special allowance payment 
     (including the recapture of excess interest) from the 
     Secretary with respect to the eligible Federal PLUS Loans 
     originated under clause (i) in the amount proposed in the 
     second lowest winning bid described in subparagraph (F) for 
     the applicable State auction.
       ``(H) Sealed bids; confidentiality.--All bids are sealed 
     and the Secretary keeps the bids confidential, including 
     following the announcement of the winning bids.
       ``(I) Eligible lender of last resort.--
       ``(i) In general.--In the event that there is no winning 
     bid under subparagraph (F), the students at the institutions 
     of higher education within the State that was the subject of 
     the auction shall be served by an eligible lender of last 
     resort, as determined by the Secretary.
       ``(ii) Determination of eligible lender of last resort.--
     Prior to the start of any auction under this paragraph, 
     eligible lenders that desire to serve as an eligible lender 
     of last resort shall submit an application to the Secretary 
     at such time and in such manner as the Secretary may 
     determine. Such application shall include an assurance that 
     the eligible lender will meet the prequalification 
     requirements described in subparagraph (B).
       ``(iii) Geographic location.--The Secretary shall identify 
     an eligible lender of last resort for each State.
       ``(iv) Notification timing.--The Secretary shall not 
     identify any eligible lender of last resort until after the 
     announcement of all the winning bids for a State auction for 
     any year.
       ``(J) Guarantee against losses.--The Secretary guarantees 
     the eligible Federal PLUS Loans made under this paragraph 
     against losses resulting from the default of a parent 
     borrower in an amount equal to 99 percent of the unpaid 
     principal and interest due on the loan.
       ``(K) Loan fees.--The Secretary shall not collect a loan 
     fee under section 438(d) with respect to an eligible Federal 
     Plus Loan originated under this paragraph.
       ``(L) Consolidation.--
       ``(i) In general.--An eligible lender who is permitted to 
     originate eligible Federal PLUS Loans for a borrower under 
     this paragraph shall have the option to consolidate such 
     loans into 1 loan.
       ``(ii) Notification.--In the event a borrower with eligible 
     Federal PLUS Loans made under this paragraph wishes to 
     consolidate the loans, the borrower shall notify the eligible 
     lender who originated the loans under this paragraph.
       ``(iii) Limitation on eligible lender option to 
     consolidate.--The option described in clause (i) shall not 
     apply if--

       ``(I) the borrower includes in the notification in clause 
     (ii) verification of consolidation terms and conditions 
     offered by an eligible lender other than the eligible lender 
     described in clause (i); and
       ``(II) not later than 10 days after receiving such 
     notification from the borrower, the eligible lender described 
     in clause (i) does not agree to match such terms and 
     conditions, or provide more favorable terms and conditions to 
     such borrower than the offered terms and conditions described 
     in subclause (I).

       ``(iv) Consolidation of additional loans.--If a borrower 
     has a Federal Direct PLUS Loan or a loan made on behalf of a 
     dependent student under section 428B and seeks to consolidate 
     such loan with an eligible Federal PLUS Loan made under this 
     paragraph, then the eligible lender that originated the 
     borrower's loan under this paragraph may include in the 
     consolidation under this subparagraph a Federal Direct

[[Page 19518]]

     PLUS Loan or a loan made on behalf of a dependent student 
     under section 428B, but only if--

       ``(I) in the case of a Federal Direct PLUS Loan, the 
     eligible lender agrees, not later than 10 days after the 
     borrower requests such consolidation from the lender, to 
     match the consolidation terms and conditions that would 
     otherwise be available to the borrower if the borrower 
     consolidated such loans in the loan program under part D; or
       ``(II) in the case of a loan made on behalf of a dependent 
     student under section 428B, the eligible lender agrees, not 
     later than 10 days after the borrower requests such 
     consolidation from the lender, to match the consolidation 
     terms and conditions offered by an eligible lender other than 
     the eligible lender that originated the borrower's loans 
     under this paragraph.

       ``(v) Special allowance on consolidation loans that include 
     loans made under this paragraph.--The applicable special 
     allowance payment for loans consolidated under this paragraph 
     shall be equal to the lesser of--

       ``(I) the weighted average of the special allowance payment 
     on such loans, except that such weighted average shall 
     exclude the special allowance payment for any Federal Direct 
     PLUS Loan included in the consolidation; or
       ``(II) the result of--

       ``(aa) the average of the bond equivalent rates 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; plus
       ``(bb) 1.59 percent.
       ``(vi) Interest payment rebate fee.--Any loan under section 
     428C consolidated under this paragraph shall not be subject 
     to the interest payment rebate fee under section 428C(f).
       ``(c) College Access Partnership Grant Program.--
       ``(1) Purpose.--It is the purpose of this subsection to 
     make payments to States to assist the States in carrying out 
     the activities and services described in paragraph (7) in 
     order to increase access to higher education for students in 
     the State.
       ``(2) Authorization and appropriations.--There are 
     authorized to be appropriated, and there are appropriated, 
     $25,000,000 for each of the fiscal years 2008 and 2009 to 
     carry out this subsection.
       ``(3) Program authorized.--
       ``(A) Grants authorized.--From amounts appropriated under 
     paragraph (2), the Secretary shall award grants, from 
     allotments under paragraph (4), to States having applications 
     approved under paragraph (5), to enable the State to pay the 
     Federal share of the costs of carrying out the activities and 
     services described in paragraph (7).
       ``(B) Federal share; non-federal share.--
       ``(i) Federal share.--The amount of the Federal share under 
     this subsection for a fiscal year shall be equal to \2/3\ of 
     the costs of the activities and services described in 
     paragraph (7).
       ``(ii) Non-federal share.--The amount of the non-Federal 
     share under this subsection shall be equal to \1/3\ of the 
     costs of the activities and services described in paragraph 
     (7). The non-Federal share may be in cash or in-kind, and may 
     be provided from a combination of State resources and 
     contributions from private organizations in the State.
       ``(C) Reduction for failure to pay non-federal share.--If a 
     State fails to provide the full non-Federal share required 
     under this paragraph, the Secretary shall reduce the amount 
     of the grant payment under this subsection proportionately.
       ``(D) Temporary ineligibility for subsequent payments.--
       ``(i) In general.--The Secretary shall determine a State to 
     be temporarily ineligible to receive a grant payment under 
     this subsection for a fiscal year if--

       ``(I) the State fails to submit an annual report pursuant 
     to paragraph (9) for the preceding fiscal year; or
       ``(II) the Secretary determines, based on information in 
     such annual report, that the State is not effectively meeting 
     the conditions described under paragraph (8) and the goals of 
     the application under paragraph (5).

       ``(ii) Reinstatement.--If the Secretary determines a State 
     is ineligible under clause (i), the Secretary may enter into 
     an agreement with the State setting forth the terms and 
     conditions under which the State may regain eligibility to 
     receive payments under this subsection.
       ``(4) Determination of allotment.--
       ``(A) Amount of allotment.--Subject to subparagraph (B), in 
     making grant payments to States under this subsection, the 
     allotment to each State for a fiscal year shall be equal to 
     the sum of--
       ``(i) the amount that bears the same relation to 50 percent 
     of the amount appropriated under paragraph (2) for such 
     fiscal year as the number of residents in the State aged 5 
     through 17 who are living below the poverty line applicable 
     to the resident's family size (as determined under section 
     673(2) of the Community Service Block Grant Act) bears to the 
     total number of such residents in all States; and
       ``(ii) the amount that bears the same relation to 50 
     percent of the amount appropriated under paragraph (2) for 
     such fiscal year as the number of residents in the State aged 
     15 through 44 who are living below the poverty line 
     applicable to the individual's family size (as determined 
     under section 673(2) of the Community Service Block Grant 
     Act) bears to the total number of such residents in all 
     States.
       ``(B) Minimum amount.--No State shall receive an allotment 
     under this subsection for a fiscal year in an amount that is 
     less than \1/2\ of 1 percent of the total amount appropriated 
     under paragraph (2) for such fiscal year.
       ``(5) Submission and contents of application.--
       ``(A) In general.--For each fiscal year for which a State 
     desires a grant payment under paragraph (3), the State agency 
     with jurisdiction over higher education, or another agency 
     designated by the Governor of the State to administer the 
     program under this subsection, shall submit an application to 
     the Secretary at such time, in such manner, and containing 
     the information described in subparagraph (B).
       ``(B) Application.--An application submitted under 
     subparagraph (A) shall include the following:
       ``(i) A description of the State's capacity to administer 
     the grant under this subsection and report annually to the 
     Secretary on the activities and services described in 
     paragraph (7).
       ``(ii) A description of the State's plan for using the 
     grant funds to meet the requirements of paragraphs (7) and 
     (8), including plans for how the State will make special 
     efforts to provide such benefits to students in the State 
     that are underrepresented in postsecondary education.
       ``(iii) A description of how the State will provide or 
     coordinate the non-Federal share from State and private 
     funds, if applicable.
       ``(iv) A description of the existing structure that the 
     State has in place to administer the activities and services 
     under paragraph (7) or the plan to develop such 
     administrative capacity.
       ``(6) Payment to eligible nonprofit organizations.--A State 
     receiving a payment under this subsection may elect to make a 
     payment to 1 or more eligible nonprofit organizations, 
     including an eligible not-for-profit holder (as defined in 
     section 438(p)), or a partnership of such organizations, in 
     the State in order to carry out activities or services 
     described in paragraph (7), if the eligible nonprofit 
     organization or partnership--
       ``(A) was in existence on the day before the date of 
     enactment of the Higher Education Access Act of 2007; and
       ``(B) as of the day of such payment, is participating in 
     activities and services related to increasing access to 
     higher education, such as those activities and services 
     described in paragraph (7).
       ``(7) Allowable uses.--
       ``(A) In general.--Subject to subparagraph (C), a State may 
     use a grant payment under this subsection only for the 
     following activities and services, pursuant to the conditions 
     under paragraph (8):
       ``(i) Information for students and families regarding--

       ``(I) the benefits of a postsecondary education;
       ``(II) postsecondary education opportunities;
       ``(III) planning for postsecondary education; and
       ``(IV) career preparation.

       ``(ii) Information on financing options for postsecondary 
     education and activities that promote financial literacy and 
     debt management among students and families.
       ``(iii) Outreach activities for students who may be at risk 
     of not enrolling in or completing postsecondary education.
       ``(iv) Assistance in completion of the Free Application for 
     Federal Student Aid or other common financial reporting form 
     under section 483(a).
       ``(v) Need-based grant aid for students.
       ``(vi) Professional development for guidance counselors at 
     middle schools and secondary schools, and financial aid 
     administrators and college admissions counselors at 
     institutions of higher education, to improve such 
     individuals' capacity to assist students and parents with--

       ``(I) understanding--

       ``(aa) entrance requirements for admission to institutions 
     of higher education; and
       ``(bb) State eligibility requirements for Academic 
     Competitiveness Grants or National SMART Grants under section 
     401A, and other financial assistance that is dependent upon a 
     student's coursework;

       ``(II) applying to institutions of higher education;
       ``(III) applying for Federal student financial assistance 
     and other State, local, and private student financial 
     assistance and scholarships;
       ``(IV) activities that increase students' ability to 
     successfully complete the coursework required for a 
     postsecondary degree, including activities such as tutoring 
     or mentoring; and
       ``(V) activities to improve secondary school students' 
     preparedness for postsecondary entrance examinations.

       ``(vii) Student loan cancellation or repayment (as 
     applicable), or interest rate reductions, for borrowers who 
     are employed in a

[[Page 19519]]

     high-need geographical area or a high-need profession in the 
     State, as determined by the State.
       ``(B) Prohibited uses.--Funds made available under this 
     subsection shall not be used to promote any lender's loans.
       ``(C) Use of funds for administrative purposes.--A State 
     may use not more than 2 percent of the total amount of the 
     Federal share and non-Federal share provided under this 
     subsection for administrative purposes relating to the grant 
     under this subsection.
       ``(8) Special conditions.--
       ``(A) Availability to students and families.--A State 
     receiving a grant payment under this subsection shall--
       ``(i) make the activities and services described in clauses 
     (i) through (vi) of paragraph (7)(A) that are funded under 
     the payment available to all qualifying students and families 
     in the State;
       ``(ii) allow students and families to participate in the 
     activities and services without regard to--

       ``(I) the postsecondary institution in which the student 
     enrolls;
       ``(II) the type of student loan the student receives;
       ``(III) the servicer of such loan; or
       ``(IV) the student's academic performance;

       ``(iii) not charge any student or parent a fee or 
     additional charge to participate in the activities or 
     services; and
       ``(iv) in the case of an activity providing grant aid, not 
     require a student to meet any condition other than 
     eligibility for Federal financial assistance under this 
     title, except as provided for in the loan cancellation or 
     repayment or interest rate reductions described in paragraph 
     (7)(A)(vii).
       ``(B) Priority.--A State receiving a grant payment under 
     this subsection shall, in carrying out any activity or 
     service described in paragraph (7)(A) with the grant funds, 
     prioritize students and families who are living below the 
     poverty line applicable to the individual's family size (as 
     determined under section 673(2) of the Community Service 
     Block Grant Act).
       ``(C) Disclosures.--
       ``(i) Organizational disclosures.--In the case of a State 
     that has chosen to make a payment to an eligible not-for-
     profit holder in the State in accordance with paragraph (6), 
     the holder shall clearly and prominently indicate the name of 
     the holder and the nature of its work in connection with any 
     of the activities carried out, or any information or services 
     provided, with such funds.
       ``(ii) Informational disclosures.--Any information about 
     financing options for higher education provided through an 
     activity or service funded under this subsection shall--

       ``(I) include information to students and the students' 
     parents of the availability of Federal, State, local, 
     institutional, and other grants and loans for postsecondary 
     education; and
       ``(II) present information on financial assistance for 
     postsecondary education that is not provided under this title 
     in a manner that is clearly distinct from information on 
     student financial assistance under this title.

       ``(D) Coordination.--A State receiving a grant payment 
     under this subsection shall attempt to coordinate the 
     activities carried out with the payment with any existing 
     activities that are similar to such activities, and with any 
     other entities that support the existing activities in the 
     State.
       ``(9) Report.--A State receiving a payment under this 
     subsection shall prepare and submit an annual report to the 
     Secretary on the program under this subsection and on the 
     implementation of the activities and services described in 
     paragraph (7). The report shall include--
       ``(A) each activity or service that was provided to 
     students and families over the course of the year;
       ``(B) the cost of providing each activity or service;
       ``(C) the number, and percentage, if feasible and 
     applicable, of students who received each activity or 
     service; and
       ``(D) the total contributions from private organizations 
     included in the State's non-Federal share for the fiscal 
     year.
       ``(10) Sunset.--The authority provided to carry out this 
     subsection shall expire on September 30, 2009.
       ``(d) Financial Literacy Program Established.--
       ``(1) Definition of eligible entity.--In this subsection, 
     the term `eligible entity' means a nonprofit or for-profit 
     organization, or a consortium of such organizations, with a 
     demonstrated record of effectiveness in providing financial 
     literacy services to students at the secondary and 
     postsecondary level.
       ``(2) Program established.--From amounts appropriated under 
     paragraph (6), the Secretary shall award grants to eligible 
     entities to enable the eligible entities to increase the 
     financial literacy of students who are enrolled or will 
     enroll in an institution of higher education, including 
     providing instruction to students on topics such as the 
     understanding of loan terms and conditions, the calculation 
     of interest rates, refinancing of debt, debt management, and 
     future savings for education, health care and long-term care, 
     and retirement.
       ``(3) Grant period; renewability.--Each grant under this 
     subsection shall be awarded for one 5-year period, and may 
     not be renewed.
       ``(4) Matching requirements.--Each eligible entity that 
     receives a grant under this subsection shall provide, from 
     non-Federal sources, an amount (which may be provided in cash 
     or in kind) to carry out the activities supported by the 
     grant equal to 100 percent of the amount received under the 
     grant.
       ``(5) Applications.--An eligible entity desiring a grant 
     under this subsection shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may reasonably require. Such 
     application shall include the following:
       ``(A) A detailed description of the eligible entity's plans 
     for providing financial literacy activities and the students 
     and schools the grant will target.
       ``(B) The eligible entity's plan for using the matching 
     grant funds, including how the funds will be used to provide 
     financial literacy programs to students.
       ``(C) A plan to ensure the viability of the work of the 
     eligible entity beyond the grant period.
       ``(D) A detailed description of the activities that carry 
     out this subsection and that are conducted by the eligible 
     entity at the time of the application, and how the matching 
     grant funds will assist the eligible entity with expanding 
     and enhancing such activities.
       ``(E) A description of the strategies that will be used to 
     target activities under the grant to students in secondary 
     school and enrolled in institutions of higher education who 
     are historically underrepresented in institutions of higher 
     education and who may benefit from the activities of the 
     eligible entity.
       ``(6) Authorization and appropriations.--There are 
     authorized to be appropriated, and there are appropriated, 
     $10,000,000 for each of the fiscal years 2008 and 2009 to 
     carry out this subsection.
       ``(e) Secondary School Graduation and College Enrollment 
     Program.--
       ``(1) Definitions.--In this subsection:
       ``(A) Eligible local educational agency.--
       ``(i) In general.--The term `eligible local educational 
     agency' means a local educational agency with a secondary 
     school graduation rate of 70 percent or less--

       ``(I) in the aggregate; or
       ``(II) applicable to 2 or more subgroups of secondary 
     school students served by the local educational agency that 
     are described in clause (ii).

       ``(ii) Subgroups.--A subgroup referred to in clause (i)(II) 
     is--

       ``(I) a subgroup of economically disadvantaged students; or
       ``(II) a subgroup of students from a major racial or ethnic 
     group.

       ``(B) Eligible entity.--The term `eligible entity' means a 
     consortium of a nonprofit organization and an institution of 
     higher education with a demonstrated record of effectiveness 
     in raising secondary school graduation rates and 
     postsecondary enrollment rates.
       ``(2) Program established.--From amounts appropriated under 
     paragraph (7), the Secretary shall award grants to eligible 
     entities to enable the eligible entities to carry out 
     activities that--
       ``(A) create models of excellence for academically rigorous 
     secondary schools, including early college secondary schools;
       ``(B) increase secondary school graduation rates;
       ``(C) raise the rate of students who enroll in an 
     institution of higher education;
       ``(D) improve instruction and access to supports for 
     struggling secondary school students;
       ``(E) create, implement, and utilize early warning systems 
     to help identify students at risk of dropping out of 
     secondary school; and
       ``(F) improve communication between parents, students, and 
     schools concerning requirements for secondary school 
     graduation, postsecondary education enrollment, and financial 
     assistance available for attending postsecondary education.
       ``(3) Use of funds.--An eligible entity that receives a 
     grant under this subsection shall use the funds--
       ``(A) to implement a college-preparatory curriculum for all 
     students in a secondary school served by the eligible local 
     educational agency that is, at a minimum, aligned with a 
     rigorous secondary school program of study;
       ``(B) to implement accelerated academic catch-up programs, 
     for students who enter secondary school not meeting the 
     proficient levels of student academic achievement on the 
     State academic assessments for mathematics, reading or 
     language arts, or science under section 1111(b)(3) of the 
     Elementary and Secondary Education Act of 1965, that enable 
     such students to meet the proficient levels of achievement 
     and remain on track to graduate from secondary school on time 
     with a regular secondary school diploma;
       ``(C) to implement an early warning system to quickly 
     identify students at risk of dropping out of secondary 
     school, including systems that track student absenteeism; and
       ``(D) to implement a comprehensive postsecondary education 
     guidance program that--

[[Page 19520]]

       ``(i) will ensure that all students are regularly notified 
     throughout the students' time in secondary school of 
     secondary school graduation requirements and postsecondary 
     education entrance requirements; and
       ``(ii) provides guidance and assistance to students in 
     applying to an institution of higher education and in 
     applying for Federal financial assistance and other State, 
     local, and private financial assistance and scholarships.
       ``(4) Grant period; renewability.--Each grant under this 
     subsection shall be awarded for one 5-year period, and may 
     not be renewed.
       ``(5) Matching requirements.--Each eligible entity that 
     receives a grant under this subsection shall provide, from 
     non-Federal sources, an amount (which may be provided in cash 
     or in-kind) to carry out the activities supported by the 
     grant equal to 100 percent of the amount received under the 
     grant.
       ``(6) Applications.--An eligible entity desiring a grant 
     under this subsection shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may reasonably require.
       ``(7) Authorization and appropriations.--There are 
     authorized to be appropriated, and there are appropriated, 
     $25,000,000 for each of the fiscal years 2008 and 2009 to 
     carry out this subsection.''.
                                 ______
                                 
  SA 2328. Mr. REID submitted an amendment intended to be proposed by 
him to the bill S. 1642, to extend the authorization of programs under 
the Higher Education Act of 1965, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the end of the bill, add the following:

     SEC. 802. CAMPUS-BASED DIGITAL THEFT PREVENTION.

       Part G of title IV (20 U.S.C. 1088 et seq.) is amended by 
     adding at the end the following:

     ``SEC. 494. CAMPUS-BASED DIGITAL THEFT PREVENTION.

       ``(a) In General.--Each eligible institution participating 
     in any program under this title which is among those 
     identified during the prior calendar year by the Secretary 
     pursuant to subsection (b)(2), shall--
       ``(1) provide evidence to the Secretary that the 
     institution has notified students on its policies and 
     procedures related to the illegal downloading and 
     distribution of copyrighted materials by students as required 
     under section 485(a)(1)(P);
       ``(2) undertake a review, which shall be submitted to the 
     Secretary, of its procedures and plans related to preventing 
     illegal downloading and distribution to determine the 
     program's effectiveness and implement changes to the program 
     if the changes are needed; and
       ``(3) provide evidence to the Secretary that the 
     institution has developed a plan for implementing a 
     technology-based deterrent to prevent the illegal downloading 
     or peer-to-peer distribution of intellectual property.
       ``(b) Identification.--For purposes of carrying out the 
     requirements of subsection (a), the Secretary shall, on an 
     annual basis, identify--
       ``(1) the 25 institutions of higher education participating 
     in programs under this title, which have received during the 
     previous calendar year the highest number of written notices 
     from copyright owners, or persons authorized to act on behalf 
     of copyright owners, alleging infringement of copyright by 
     users of the institution's information technology systems, 
     where such notices identify with specificity the works 
     alleged to be infringed, or a representative list of works 
     alleged to be infringed, the date and time of the alleged 
     infringing conduct together with information sufficient to 
     identify the infringing user, and information sufficient to 
     contact the copyright owner or its authorized representative; 
     and
       ``(2) from among the 25 institutions described in paragraph 
     (1), those that have received during the previous calendar 
     year not less than 100 notices alleging infringement of 
     copyright by users of the institution's information 
     technology systems, as described in paragraph (1).''.
                                 ______
                                 
  SA 2329. Ms. MURKOWSKI proposed an amendment to amendment SA 2327 
proposed by Mr. Kennedy to the bill H.R. 2669, to provide for 
reconciliation pursuant to section 601 of the concurrent resolution on 
the budget for fiscal year 2008; as follows:

       On page 55, line 23, strike ``$25,000,000'' and insert 
     ``$113,000,000''.
                                 ______
                                 
  SA 2330. Mr. KENNEDY proposed an amendment to amendment SA 2327 
proposed by Mr. Kennedy to the bill H.R. 2669, to provide for 
reconciliation pursuant to section 601 of the concurrent resolution on 
the budget for fiscal year 2008; as follows:

       Strike subparagraph (G) of section 401B(e)(1) of the Higher 
     Education Act of 1965, as added by section 102(a) of the 
     Higher Education Access Act of 2007, and insert the 
     following:
       ``(G) $3,650,000,000 for fiscal year 2014;
       ``(H) $3,850,000,000 for fiscal year 2015;
       ``(I) $4,175,000,000 for fiscal year 2016; and
       ``(J) $4,180,000,000 for fiscal year 2017.

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