[House Report 104-504]
[From the U.S. Government Publishing Office]



104th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 2d Session                                                     104-504
_______________________________________________________________________


 
PERMITTING CONTINUED GRANT PARTICIPATION BY HISTORICALLY BLACK GRADUATE 
                        AND PROFESSIONAL SCHOOLS

                                _______


 March 28, 1996.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


     Mr. Goodling, from the Committee on Economic and Educational 
                 Opportunities, submitted the following

                              R E P O R T

                        [To accompany H.R. 3055]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Economic and Educational Opportunities, to 
whom was referred the bill (H.R. 3055) to amend section 326 of 
the Higher Education Act of 1965 to permit continued 
participation by Historically Black Graduate Professional 
Schools in the grant program authorized by that section, having 
considered the same, report favorably thereon without amendment 
and recommend that the bill do pass.

                                Purpose

    The purpose of H.R. 3055 is to amend Section 326 of Title 
III of the Higher Education Act of 1965 in order to permit 
continued participation by certain Historically Black Graduate 
and Professional Schools in the grant program authorized under 
this section.

                           Legislative Action

    H.R. 3055 was introduced by Mr. Norwood on March 7, 1996. 
On March 14, 1996, the Committee on Economic and Educational 
Opportunities assembled to consider H.R. 3055. The Committee 
adopted the bill by a voice vote.

          Background and Need for Legislation/Committee Views

    Section 326 of Title III of the Higher Education Act was 
established to provide grants to Historically Black Graduate 
and Professional Schools. In order for an institution to 
receive grant funds under this section, the Secretary of 
Education must first make a determination that such institution 
is making a substantial contribution to the legal, medical, 
dental, veterinary or other graduate education opportunities 
for African-Americans.
    Grant funds received under this section may be used for 
building or updating facilities such as libraries, 
laboratories, and classrooms, including the acquisition of 
telecommunications technology and equipment; faculty 
development and exchange programs; the purchase of laboratory 
and library supplies; tutoring, counseling and student 
services; establishment of community outreach programs to 
elementary and secondary students; and establishment or 
improvement of teacher education programs.
    Eligibility for grant funds under Section 326 was 
originally limited to five institutions. In 1992, the list of 
eligible institutions was expanded and eleven additional 
Historically Black Graduate and Professional Schools became 
eligible for grant funds under this section.
    The first $12 million appropriated for this section is 
reserved for the five original institutions who have received 
funding under Section 326 since its inception. These schools 
are: Morehouse School of Medicine, Meharry Medical School, 
Charles R. Drew Postgraduate Medical School, Clark-Atlanta 
University, and Tuskegee University School of Veterinary 
Medicine. However, these schools, like all of the other 
eligible institutions, are restricted to two five-year grants. 
All five schools will complete their second grant in fiscal 
year 1996. Without this amendment to the statute, they will no 
longer be eligible for future grant funds.
    Many of the graduate and professional programs at the five 
institutions in danger of losing eligibility are medical 
programs and the graduates of these programs make large 
contributions to the health of minorities and disadvantaged 
individuals across the country, and particularly those living 
in urban areas. Serving these two populations is one of the 
major challenges currently facing our health care system. The 
number of African-Americans enrolled in medical programs is 
very low. Currently, only 2 percent of the enrollment in 
entering classes in veterinary medicine and 6 percent in 
medicine, dentistry, and pharmacy are African Americans. The 
Historically Black Colleges and Universities participating in 
Title III graduate 50 percent of African-American physicians, 
dentists, and pharmacists, as well as 75 percent of African-
American veterinarians in this country.
    It is the committee's finding that the survival of these 
schools contributes to the improved health status of 
disadvantaged persons, as well as all Americans. Because of the 
significant contributions of these five institutions and their 
graduates, it is important that they continue to be eligible 
for the grant support necessary to continue providing top 
quality education to their students.

                                Summary

    H.R. 3055 strikes the sentence in Section 326 that 
restricts schools to two five-year grants, thereby allowing the 
five schools currently in the final year of their grant 
eligibility to continue to compete for future grant funds, if 
made available through the appropriations process.

                           Section-by-Section

    Section 1 contains findings related to the bill.
    Section 2 strikes the second sentence of Section 326(b) of 
Title III of the Higher Education Act of 1965.

                  Oversight Findings of the Committee

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives and clause 2(b)(1) of 
rule X of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in the body of this report.

                     Inflationary Impact Statement

    In compliance with clause 2(l)(4) of rule XI of the Rules 
of the House of Representatives, the Committee estimates that 
the enactment into law of H.R. 3055 will have no significant 
inflationary impact on prices and costs in the operation of the 
national economy. It is the judgment of the Committee that the 
inflationary impact of this legislation as a component of the 
federal budget is negligible.

                    Government Reform and Oversight

    With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 3055.

                           Committee Estimate

    Clause 7 of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 3055. However, clause 7(d) of that rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                Application of Law to Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. This bill permits continued participation by certain 
Historically Black Graduate and Professional Schools in the 
grant program authorized under the Higher Education Act of 
1965. The bill does not prohibit legislative branch employees 
from otherwise being eligible for such services under these 
grants.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act requires a statement of whether the provisions of 
the reported bill include unfunded mandates; the bill provides 
funds for programs authorized under this bill at the local 
level and as such does not contain any unfunded mandates. The 
Committee also received a letter regarding unfunded mandates 
from the Director of the Congressional Budget Office. See 
infra.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the House of Representatives and section 308(a) of 
the Congressional Budget Act of 1974 and with respect to 
requirements of clause 2(l)(3)(C) of rule XI of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for H.R. 3055 from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 22, 1996.
Hon. William F. Goodling,
Chairman, Committee on Economic and Educational Opportunities,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office (CBO) 
has reviewed H.R. 3055, a bill to amend the Higher Education 
Act of 1965 to permit certain historically black graduate and 
professional schools to continue to apply for Section 326 
general purpose grants. The bill was ordered reported by the 
Committee on Economic and Educational Opportunities on March 
14, 1996. Currently, the Secretary of Education is limited to 
awarding no more than two Section 326 grants per school for a 
maximum duration of five years each. As a result of this 
change, the Secretary of Education would have more flexibility 
in allocating available Section 326 funds among the sixteen 
designated historically black graduate and professional 
schools.
    CBO estimates that enactment of H.R. 3055 would have no 
effect on the overall federal budget. Because enactment of H.R. 
3055 would not affect direct spending or receipts, pay-as-you-
go procedures would not apply.
    The bill contains no intergovernmental mandates as defined 
in P.L. 104-4 and would have no direct impact on the budgets of 
state, local, or tribal governments. Furthermore, this bill 
would not impose an unfunded mandate on the private sector.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Deborah 
Kalcevic.
            Sincerely,
                                             James. L. Blum
                                   (For June E. O'Neill, Director).

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets and 
existing law in which no change is proposed is shown in roman):

            SECTION 326 OF THE HIGHER EDUCATION ACT OF 1965

SEC. 326. PROFESSIONAL OR GRADUATE INSTITUTIONS.

    (a) * * *
    (b) Duration.--Grants shall be made for a period not to 
exceed 5 years. [No more than two 5-year grants (for a period 
of not more than 10 years) may be made to any one undergraduate 
or post-graduate institution.]
          * * * * * * *