TITLE IX-AMENDMENTS TO TITLE VIII (GENERAL PROVISIONS) OF HIGHER EDUCATION ACT OF 1965 AND TO TITLE X (MISCELLANEOUS PROVISIONS) OF NATIONAL DEFENSE EDUCATION ACT

Section 901. Establishment of advisory council on graduate education; abolition of Higher Education Facilities Act Advisory Committee Subsection (a) of section 901 would amend the Higher Education Act of 1965 by adding a new section 805 captioned "Advisory Council on Graduate Education."

Under subsection (a) of the new section 805, there would be established, effective July 1, 1968, an Advisory Council on Graduate Education chaired by the Commissioner of Education. The Council would include in addition to one representative each from the Office of Science and Technology in the Executive Office of the President, the National Science Foundation, the National Foundation on the Arts and Humanities- members appointed by the Commissioner from among leading authorities in the field of education.

Subsection (b) of the new section 805 provides that the Council shall advise the Commissioner on matters of general policy relating to his administration of programs relating to graduate education. Subsection (c) of section 805 sets forth the amounts of per diem compensation and travel expense which may be paid to members of the Council.

Subsection (d) of section 805 would authorize the Commissioner to furnish such assistance (including technical, secretarial, and clerical assistance) and such pertinent data as the Council may require.

Effective July 1, 1968, subsection (b) of section 901 of the bill would repeal section 203 of the Higher Education Facilities Act of 1963 (which established an Advisory Committee on Graduate Education to advise the Commissioner on grants for construction of graduate facilities) and would amend section 202(c) of such act to provide that no application for a grant for construction of graduate facilities shall be approved by the Commissioner without the advice of a panel of competent specialists who are not employees of the Federal Government (instead of the superseded advice of the Advisory Committee on Graduate Education).

Section 902. Conforming definition of institution of higher education in Higher Education Act to other definitions used in the act and National Defense Education Act

Subsection (a) of section 902 would amend paragraph (a) of section 801 of the Higher Education Act of 1965 (the definition of institution of higher education) by adding a provision, common in other higher education assistance programs, which permits an institution to satisfy accreditation standards if it can present satisfactory assurance that it is making efforts with its available resources to meet accreditation standards and if the Commissioner determines that such standards will be met within a reasonable time.

Subsection (b) of section 902 amends such/definition so as to substitute for the phrase "business school or technical institution" in paragraph (a) of section 801 of the Higher Education Act of 1965 the more inclusive phrase "any school which provides not less than a 1-year program of training to prepare students for gainful employment in a recognized occupation."

Section 903. Provision in National Defense Education Act for the Trust
Territory of the Pacific Islands, for schools of Department of Inte-
rior for Indian children, and for overseas dependents schools of
Department of Defense.

Subsection (a) of section 903 of the bill would amend section 1008 of the National Defense Education Act of 1958 to provide for the allotment of funds to the Trust Territory of the Pacific Islands (in addition to the other outlying areas now referred to in sec. 1008) under section 302 of title III and section 502 of title V-A of the NDEA. In addition, the subsection provides that from the amount reserved under sections 302 and 502 of the NDEA the Commissioner shall allot such sums as may be necessary to the Secretary of Interior for elementary and secondary schools operated for Indian children by the Department of Interior, and to the Secretary of Defense for overseas dependents' schools of the Department of Defense, to carry out the purposes of title III and title V-A in those schools.

Subsection (b) of section 903 would amend sections 302(a)(1), 302(b), and 502(a) of the National Defense Education Act of 1958 to increase from 2 to 3 percent the maximum authorized to be reserved for outlying areas.

Subsection (c) of section 903 would make this section effective with respect to fiscal years ending after June 30, 1967.

TITLE X-AMENDMENTS TO HIGHER EDUCATION FACILITIES ACT
OF 1963

Section 1001. Adjustment of interest rate on loans

Subsection (a) of section 1001 would amend subsection (b) of section 303 of the Higher Education Facilities Act of 1963 to provide that the interest rate on construction loans shall be not less than (1) a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on comparable outstanding marketable obligations of the United States, (2) reduced by such rate, not in excess of 1 percentage point, as may be determined by the Commissioner. The rate under the existing law is 3 percent or one-fourth of 1 percentage point above the average annual rate on all interest-bearing obligations of the United States, whichever is less. Subsection (b) of section 1001 provides that this section applies to loans approved, or for which a commitment is made, on or after the date of enactment of this bill.

Section 1002. Extending authorization for higher education facilities construction assistance in major disaster areas

This section would amend section 408 of the Higher Education Facilities Act of 1963 to extend through the fiscal year ending July 1, 1972, the availability of assistance to institutions in areas which have suffered a major disaster.

EXPLANATION OF THE "HIGHER EDUCATION AMENDMENTS

OF 1967"

(S. 1126, 90th Cong.)

TITLE I-AMENDMENTS TO TITLE I OF THE HIGHER EDUCATION ACT OF 1965

(Community Service and Continuing Education Programs)

Section 101. Extension of grant program

This section would amend section 101 of the Higher Education Act to extend the community service and continuing education program an additional 5 years through fiscal year 1973 and would authorize the appropriation of such sums as may be necessary for such extended period.

Section 102. Extension of 75 percent Federal share through fiscal year

1969

Subsection (a) of this section would amend section 106(a) of the Higher Education Act of 1965 to provide that the Federal share of costs of State plans under this program would continue at 75 percent for fiscal years 1968 and 1969, and would be 50 percent thereafter. Subsection (b) provides that the amendment made by subsection (a) shall be effective with respect to grants awarded after the enactment of this act.

Under present law the Federal share would be 50 percent during fiscal year 1968. When the Higher Education Act was first enacted it was expected that a major part of the projects throughout each State would have been initiated so that reducing the Federal share would result in participating institutions of higher education assuming a larger part of the cost of programs already established and in operation. However, during the first 2 years of the program, $25 million (or 33% percent) of the $75 million authorized was appropriated, curtailing the initiation of new projects and limiting the size of the projects established. The result is that if the program is to be of the size and scope originally intended by Congress, new projects must be established and present projects must be expanded. The cost of establishing and expanding projects is more expensive than maintaining an established project and a larger Federal share of the cost is necessary. By providing that the Federal share will continue to be 75 percent through fiscal year 1969, it can be assured that the community service and continuing education program will attain the size and scope necessary to fulfill the intent of Congress and at the same time be able to continue beyond that date with 50 percent Federal funding.

Section 103. Authorization of experimental or pilot projects

For the purpose of encouraging innovative projects designed to meet community problems and to meet problems of a regional or

national scope and of encouraging comprehensiveness and coordination of community service and continuing education programs, subsection (a) would redesignate sections 107 through 111 as 108 through 112 and insert a new section 107 in title I of the Higher Education Act of 1965, which would authorize the Commissioner of Education to use not to exceed 10 percent of the sums appropriated for the title to make grants to or contracts with institutions of higher education for experimental or pilot projects. The Commissioner would also be authorized to make grants to other public or private nonprofit agencies or organizations, or contracts with public or private organizations, including grants to or contracts with professional or scholarly associations, when an especially significant contribution will thereby be made toward attaining the purposes of this section.

The new section would make funds available for projects of a national or regional nature which could not be effectively coordinated with the plan of a single State and which show exceptional promise in meeting community problems or will effectively coordinate projects of similar nature and purpose, with the result that community service and continuing education programs will focus all available resources on special problems. The present law directs attention toward problems of a multi-State nature without setting aside funds for that purpose.

Subsection (b) would make conforming amendments to section 103 (the allotment section) of the act to reflect the addition of the new section 107.

Subsection (c) provides that the amendments made by this section would be effective with respect to appropriations for fiscal years ending after June 30, 1967, except so much of any such appropriation as has been allotted prior to such amendment.

TITLE II-AMENDMENTS TO TITLE II OF THE HIGHER
EDUCATION ACT OF 1965

PART A COLLEGE LIBRARY RESOURCES

Section 201. Extension of program

This section would amend 201 of the Higher Education Act to extend the college library resources program for an additional 5 years through fiscal year 1973, and would authorize the appropriation of such sums as may be necessary for such extended period.

Sec. 202. Revision of maintenance-of-effort requirement for special purpose grants

This section would amend 204(b) to modify the maintenance of effort requirement clause for special-purpose grants thus making such requirement consistent with the maintenance-of-effort requirements for basic and supplemental grants set out in section 202 of the act, as amended by section 9 of Public Law 89-752. As amended, such section 204(b) would require that an applicant (or applicants jointly in the case of a combination of institutions) provide satisfactory assurance that it would expend during the fiscal year for which the grant was requested (from non-Federal funds) for all library purposes (exclusive of construction) an amount not less than the average

annual amount it expended for such purposes during the 2-year period ending June 30, 1965, or during the 2 fiscal years preceding the fiscal year for which the grant is requested, whichever is less. This amendment would be effective with respect to applications for grants payable on or after the date of enactment of this bill.

The present law provides that fiscal year 1965 is the permanent base year for computing maintenance of effort. Since some institutions had unusually high expenditures in 1965 as the result of special gifts, the 1965 base is not realistic for determining the amount of expenditures normally made for library resources and services. The amend ment would provide an alternate base year for those institutions which might be penalized by the 1965 base year. At the same time, since the 1965 base is retained, there is a guarantee that no institution could benefit from a title II grant by decreasing its expenditures over a 2 year period.

PART B-LIBRARY TRAINING AND RESEARCH, AND LIBRARY SCHOOL PROGRAM DEVELOPMENT

Section 221. Extension of program

This section would amend section 221 of the Higher Education Act to extend the library training and research program for an additional 5 years through fiscal year 1973, and would authorize the appropriation of such sums as may be necessary for such extended period. Section 222. Authorizing planning and development grants for library schools

This section would amend section 224(a) of the act to authorize the Commissioner to make grants to institutions of higher education and other public or private agencies, institutions, and organizations, for the planning or development of programs for the opening of library or information science schools, or of programs intended to lead to the accreditation of such existing schools. This is in addition to the authority the Commissioner has under the program to make grants or contracts for research and demonstration projects relating to the improvement of libraries or the improvement of training in librarianship and the dissemination of information derived therefrom. These amendments would be effective with respect to grants payable from appropriations for fiscal years ending after June 30, 1967.

Present law authorizes grants for the establishment of training programs (including student assistance) and for research and demonstration projects; however, no funds may be expended for planning and developing new schools of library and information science. The present number of schools cannot produce the number of librarians needed by the Nation's libraries. New schools must be established in order to increase the number of librarians under training.

Section 223. Clarifying authority of institution to use training institutes

This section would amend section 223 (a) of the Higher Education Act of 1965 clarifying the fact that short-term or regular-session institutes are among the courses of training or study for which grants made under this section may be used.