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TITLE XI-AMENDMENTS TO HIGHER EDUCATION FACILITIES ACT OF 1963

Section 1101. Extension of program

This section would amend the Higher Education Facilities Act of 1963 to extend the programs under which grants and loans are made for construction of undergraduate and graduate academic facilities for 5 years, through the fiscal year ending June 30, 1974, and would authorize the appropriation of such sums as may be necessary therefor. Section 1102. 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 onequarter of 1 percentage point above the average annual rate on all interest-bearing obligations of the United States, whichever is less. The purpose would be to follow the current Government-wide policy to make rate of interest on Government loans equal to the rate of interest due on Government obligations.

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 1103. 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."

TITLE XII-EDUCATION FOR THE PUBLIC SERVICE

Section 1201. Title

This section would provide that title XII of the bill might be cited as the "Education for the Public Service Act."

Section 1202. Purpose

This section would declare the purpose of title XII of the bill to be the establishment of a program of grants and fellowships to improve the education of students attending institutions of higher education in preparation for entrance into the service of State, local, or Federal governments, and the attraction of such students to the public service.

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A-GRANTS AND CONTRACTS ΤΟ STRENGTHEN AND IMPROVE
EDUCATION FOR THE PUBLIC SERVICE

Section 1203. Project grants and contracts

This section would authorize the Secretary of HEW to make grants to or contracts with institutions of higher education to assist them

in planning, developing, strengthening, improving, or carrying out programs or projects to prepare graduate or professional students to enter the public service, or for research into, or development or demonstration of, improved methods of education for public service. The section offers seven examples illustrative of programs or projects that would qualify thereunder. These examples cover planning for graduate or professional programs to prepare students to enter the public service, training of faculty, strengthening the public service aspects of graduate or professional education, the conduct of graduate or professional centers for study, the conduct of public service teacher institutes for advanced study, the carrying out of programs of cooperative education involving full-time or part-time public service, and research into, and development of, teaching methods.

The Secretary would also be authorized to make grants to other public of private nonprofit agencies and organizations, or contracts with public or private agencies or organizations, to carry out the purposes of section 1203, when such grants or contracts would make an especially significant contribution to attaining the section's objectives. Section 1204. Application for grant or contract; allocation of grants or

contracts

This section would provide that grants or contracts under part A of title XII of the bill could be made only upon application to the Secretary that sets forth an authorized purpose for which such grant or contract may be made and relates such purpose to the program described in any application of such applicant submitted pursuant to part B of title XII (public service fellowships). The application would also be required to provide for appropriate fiscal procedures, record keepint, reports, etc,

Grants or contracts would be allocated on an equitable basis throughout the United States among institutions of higher education that show promise of being able to use funds effectively for the purposes of part A, except that the Secretary would be permitted to give preference to programs designed to meet an urgent national need. Subsection (c) of this section would authorize the use of payments for part of the compensation of students employed in non-Federal public service as part of a program approved for assistance under this section, and would also encourage agencies of the Federal Government to enter into arrangements with institutions of higher education for the employment of students enrolled in approved programs.

PART B-PUBLIC SERVICE FELLOWSHIPS

Section 1211. Award of Public Service Fellowships

This section would authorize the Secretary to award graduste or professional fellowships, not to exceed 3 academic years, to persons who plan to pursue careers in public service.

Section 1212. Allocation of fellowships

This section would direct the Secretary to allocate fellowships under title XII among institutions of higher education with programs approved under the provisions of part B, for the use of persons accepted into such programs, so as most nearly (1) to provide an equitable distribution of such fellowships throughout the United States, excep: that the Secretary would be permitted to give preference to programs

designed to meet an urgent national need; and (2) to attract recent college graduates to pursue public service careers.

Section 1213. Approval of programs

This section would direct the Secretary to approve a program under part B upon application by the institution and his findings that the program is significantly aimed at educating persons for the public service, or in a field for whose practitioners there is a significant and continuing need in the public service; that the program is or may be expected to be of high quality; that the application describes the relationship of the program to the program described in any application of such institution submitted pursuant to part A of title XII; and that the application contains satisfactory assurances that the institution will recommend fellowship awards only to persons of superior promise who have demonstrated a serious intent to enter the public service, and will make reasonable continuing efforts to encourage fellowship recipients to enter the public service upon completing an approved program.

Section 1214. Stipends

This section would provide for fellowship stipends (including subsistence allowances for dependents), and institutional payments, required to be set in amounts consistent with prevailing practices under comparable federally supported programs.

Section 1215. Fellowship conditions

This section would condition the continuation of fellowship payments upon the student's maintenance of satisfactory proficiency in full-time study or research in the field for which the fellowship was awarded. Outside gainful employment would be permitted only as approved by regulation.

PART C GENERAL PROVISIONS

These provisions would apply to all of title XII except as otherwise indicated.

Section 1221. Definitions

Paragraph (a) of this section would define the term "State" to include the several States of the Union, Puerto Rico, the District of Columbia, the Canal Zone, Guam, American Samoa, the Virgin Islands, and the Trust Territory of the Pacific Islands.

Paragraph (b) would define "institutiou of higher education" as one which admits only high school graduates or the equivalent, is legally authorized to provide education beyond the secondary level, provides not less than a 2-year program acceptable for full credit toward a bachelor's degree, is a public or other nonprofit institution, and is accredited by a nationally recognized accrediting agency or association. For purposes of part A only, the term would include any school providing not less than a 1-year program of training to prepare students for gainful employment in a recognized occupation that meets all of the conditions described in the preceding sentence except that relating to the conduct of not less than a 2-year program acceptable toward a bachelor's degree.

Paragraph (c) would define "public service" as service as an officer or employee in any branch of State, local, or Federal Government.

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Paragraph (d) would define an "academic year" as an academic year or its equivalent, as determined by the Secretary.

Paragraph (e) would define "nonprofit" as meaning that no part of net earnings inures or may lawfully inure to the benefit of any private shareholder or individual.

Section 1222. Coordination of Federal assistance

The section would require the Secretary, in administering title XII to give primary emphasis to the assistance of programs and activities not otherwise assisted by the Federal Government.

Section 1223. Method of payment

This section would authorize payments under title XII to be made in installments, and in advance or by way of reimbursement, with necessary adjustments on account of overpayments or underpayments. Section 1224. Limitation

This section would prohibit title XII grants, contracts, or fellowships awarded to, or for study at, schools or departments of divinity. Section 1225. Utilization of other agencies

This section would authorize the Secretary, in administering title XII, to utilize the services of any agency of the Federal Government and of any other public or nonprofit agency or institution, on a reimbursable basis or otherwise in accordance with agreements between the Secretary and the head thereof.

Section 1226. Federal control of education prohibited

This section would prohibit Federal direction, supervision, or control over any educational institution or aspect of education assisted under title XII.

Section 1227. Authority to establish advisory committee

The Secretary would be authorized, without regard to the civil service and classification laws, to appoint a committee to advise him on matters of general policy arising in the administration of title XII. Committee members not in the regular full-time employ of the United States would be entitled to receive compensation while engaged in the business of the committee in an amount not in excess of the rate specified at the time of such service for grade GS-18, and would also be entitled to travel expenses and per diem.

Section 1228. Report

The Secretary would be required to include a report of the activitie of the Department under title XII, including legislative recommendations, in his annual report to the Congress.

Section 1229. Appropriations

Appropriations would be authorized in the amount of $10 million for fiscal 1969, and such sums as may be necessary for each of the 4 succeeding fiscal years, to carry out the purposes of title XII. Funds appropriated for fiscal 1969 would be available for obligation during that year and the succeeding fiscal year.

EXPLANATION OF THE HIGHER EDUCATION AMENDMENTS

OF 1968

(S. 3098, 90th Cong.)

BACKGROUND AND NEED

Passage of the Higher Education Act in the closing days of the first session of the 89th Congress marked the culmination of an unprecedented legislative commitment to the goal of educational opportunity for all Americans. As President Johnson noted in signing the act into law on November 8, 1965, no less than two dozen education measures were enacted by Congress during 1965. This act, one of the keystones of the 89th Congress, was characterized by the President as the key which unlocks a new door for the young people of America: "the most important door that will ever open-the door to education."

The past 2 years have proved the truth of this statement. Programs supported by the Higher Education Act have touched students and colleges and, indeed, citizens and their communities-in every State in the Nation.

Title I.-This title provides funds to institutions of higher education to support extension and continuing education programs designed to solve community problems and to meet the continuing educational needs of citizens whose formal education has been terminated or interrupted. Fifty-four years ago, when most Americans were engaged in rural occupations, Congress responded to the challenge by enacting the Smith-Lever Act of 1914, which made instruction, research, and extension services widely available through land-grant colleges.. Today, when 70 percent of our population live in urban areas, title I takes up the challenge of meeting the needs of a growing, shifting population. During fiscal year 1967, $10 million was appropriated for allocation to the States in support of community service programs. Programs supported were concerned with problems of government, problems of poverty, and problems of health, among others. For fiscal year 1968, $10 million was appropriated for university community services programs.

Title II.-This program is designed to strengthen the heart of our Nation's colleges and universities-the library. Part A of title II provided $25 million in fiscal year 1967 to institutions of higher education in every State. This money, in the form of basic grants to institutions of up to $5,000, was used for the purchase of books and periodicals, documents, tapes, recordings, audiovisual, and other library materials. Part B of title II supported doctoral and predoctoral fellowships in library and information science, at a cost of $3.75 million in fiscal year 1967. Part C transferred $3 million to the Librarian of Congress for the acquisition of library materials from all over the world and for their cataloging. For fiscal year 1968, $38.25 million was appropriated for title II programs.

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