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(2) maintain an integral set of accounts which shall be audited annually by the General Accounting Office in accordance with the principles and procedures applicable to commercial transactions as provided by the Government Corporation Control Act, as amended, and no other audit shall be required : Provided, That such financial transactions of the Commissioner as the making of loans and vouchers approved by the Commissioner in connection with such financial transactions shall be final and conclusive upon

all officers of the Government. (b) (1) Funds made available to the Commissioner pursuant to the provisions of this title shall be deposited in a checking account or accounts with the Treasurer of the United States. Receipts and assets obtained or held by the Commissioner in connection with the performance of his functions under this title, and all funds available for carrying out the functions of the Commissioner under this title (including appropriations therefor, which are hereby authorized), shall be available, in such amounts as may from year to year be authorized by the Congress, for the administrative expenses of the Commissioner in connection with the performance of such functions.

(2) The Commissioner is authorized (A) to prescribe a schedule of fees which, in his judgment, would be adequate in the aggregate to cover 'necessary expenses of making inspections (including audits) and providing representatives at the site of projects in connection with loans under this title, and (B) to condition the making of such loans on agreement by the applicant to pay such fees; and, if such fees are prescribed, the Commissioner's expenses for such purposes shall be considered nonadministrative. For the purpose of providing such services, the Commissioner may, as authorized by section 107(b), utilize any agency, and such agency may accept reimbursement or payment for such services from such applicant or from the Commissioner, and shall, if a Federal agency, credit such amounts to the appropriation or fund against which expenditures by such agency for such services have been charged.

(c) In the performance of, and with respect to, the functions, powers, and duties vested in him by this title, the Commissioner, notwithstanding the provisions of any other law, may

(1) prescribe such rules and regulations as may be necessary to carry out the purposes of this section;

(2) sue and be sued in any court of record of a State having general jurisdiction or in any district court of the United States, and such district courts shall have jurisdiction of civil actions arising under this title without regard to the amount in controversy; but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Commissioner or property under his control, and nothing herein shall be construed to except litigation arising out of activities under this title from the application of sections 507 (b) and 2679 of title 28 of the United States Code and of section 367 of the Revised Statutes (5 U.S.C. 316);

(3) foreclose on any property or commence any action to protect or enforce any right conferred upon him by any law, contract, or other agreement, and bid for and purchase at any foreclosure or any other sale any property in connection with which he had made a loan pursuant to this title; and, in the event of any such acquisition (and notwithstanding any other provisions of law relating to the acquisition, handling, or disposal of real property by the United States), complete, administer, remodel and convert, dispose of, lease, and otherwise deal with, such property: Provided, That any such acquisition of real property shall not deprive any State or political subdivision thereof of its civil or criminal jurisdiction in and over such property or impair the civil rights under the State or local laws of the inhabitants on such property ;

(4) enter into agreements to pay annual sums in lieu of taxes to any State or local taxing authority with respect to any real property so acquired or owned;

(5) sell or exchange at public or private sale, or lease, real or personal property, and sell or exchange any securities or obligations, upon such terms as he may fix;

(6) obtain insurance against loss in connection with property and other assets held;

(7) subject to the specific limitations in this title, consent to the modification, with respect to the rate of interest, time of payment of any installment of principal or interest, security, or any other term of any contract or agreement to which he is a party or which has been transferred to him pursuant to this section; and

(8) include in any contract or instrument made pursuant to this section such other covenants, conditions, or provisions as he may deem necessary to assure that the purposes of this title will be achieved.


SEC. 106. As used in this title

(a) (1) Except as provided in subparagraph (2) of this paragraph, the term "academic facilities” means structures suitable for use as classrooms, laboraties, libraries, and related facilities necessary or appropriate for instruction of students, or for research, or for administration of the educational or research programs, of an institution of higher education, and maintenance, storage, or utility facilities essential to operation of the foregoing facilities.

(2) The term "academic facilites' shall not include any facility intended primarily for events for which admission is to be charged to the general public.

(b) (1) The term "construction" means (A) erection of new or expansion of existing structures, and the acquisition and installation of initial equipment therefor; or (B) acquisition of existing structures; or (C) rehabilitation, alteration, conversion, or improvement (including the acquisition and installation of initial equipment, or modernization or replacement of built-in equipment) of existing structures; or (D) a combination of any two or more of the foregoing.

(2) The term "equipment” includes, in addition to machinery, utilities, and built-in equipment and any necessary enclosures or structures to house them, all other items necessary for the functioning of a particular facility as an academic facility, including necessary furniture, except books and except items of current operating expense such as fuel, supplies, and the like; the term "initial equipment” means equipment acquired and installed in connection with construction as defined in subparagraph (1) (A) or (B) of this paragraph or, in cases referred to in subparagraph (1) (C), equipment acquired and installed as part of the rehabilitation, alteration, conversion, or improvement of an existing structure which structure would otherwise not be adequate for use as an academic facility; and the terms "equipment”, “initial equipment", and "built-in equipment" shall be more particularly defined by the Commissioner by regulation.

(c) The term “development cost”, with respect to an academic facility, means the amount found by the Commissioner to be the cost, to the applicant for a loan under this title, of the construction involved and the cost of necessary acquisition of the land on which the facility is located and of necessary site improvements to permit its use for such facility, but excluding any cost incurred before, or under a contract entered into before, the enactment of this Act. There shall further be excluded from the cost of construction, in determining the amount of any loan under this title, an amount equal to the amount of any Federal financial assistance which the institution has obtained, or is assured of obtaining, under any other law, with respect to the construction that is to be financed with the aid of a loan under this title.

(d) The term “higher education building agency" means (1) an agency, public authority, or other instrumentality of a State authorized to provide, or finance the construction of, academic facilities for institutions of higher education (whether or not also authorized to provide or finance other facilities for such or other educational institutions, or for their students or faculty), or (2) any corporation (no part of the net earnings of which inures or may lawfully inure to the benefit of any private shareholder or individual) (A) established by an institution of higher education for the sole purpose of providing academic facilities for the use of such institution, or for such purpose and the additional purpose of providing housing or "other educational facilities" (as defined in section 404 of the Housing Act of 1950 as amended) for students or students and faculty of such institution without regard to their membership in or affiliation with any social, fraternal, or honorary society or organization, and (B) upon dissolution of which all title to any property purchased or built from the proceeds of any loan made under this title will pass to such institution.

(e) The term "institution of higher education" means a public or other nonprofit educational institution in any State which

(1) admits as regular students only individuals having a certificate of graduation from a secondary school, or the recognized equivalent of such a certificate;

(2) is legally authorized within such State to provide a program of education beyond secondary education;

(3) provides an educational program for which it awards a bachelor's degree, or provides not less than a two-year program which is acceptable for full credit toward such a degree; and

(4) is accredited by a nationally recognized accrediting agency or association listed by the Commissioner pursuant to this paragraph or, if not so accredited, is an institution whose credits are accepted, on transfer, by not less than three institutions which are so accredited, for credit on the same basis as if transferred from an institution so accredited. For purposes of this paragraph the Commissioner shall publish a list of nationally recognized accrediting agencies or associations which he determines to be

reliable authority as to the quality of education or training offered. (f) The term “nonprofit educational institution” means an educational institution owned and operated by one or more corporations or associations no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.

(g) The term “public educational institution” does not include a school or institution of any agency of the United States.

(h) The term "State” includes, in addition to the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, and Guam.

Sec. 107. (a) The Commissioner of Education may delegate any of his functions under this title, except the making of regulations, to any officer or employee of the Office of Education.

(b) In administering the provisions of this title, for which he is responsible, the Commissioner is authorized to utilize the services and facilities of any agency of the Federal Government and of any other public or nonprofit agency or institution in accordance with appropriate agreements, and to pay for such service either in advance or by way of reimbursement, as may be agreed upon.

(c) The Commissioner, with the approval of the Secretary of Health, Education, and Welfare, may appoint one or more advisory committees to advise and consult with the Commissioner with respect to the administration of any of his functions under this title. Members of any such committee, while attending conferences or meetings of the committee, shall be entitled to receive compensation at a rate to be fixed by the Secretary of Health, Education, and Welfare but not to exceed $50 per diem, and while away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by law (5 U.S.C. 73b-2) for persons in the Government service employed intermittently. The provisions of section 1003 of the National Defense Education Act of 1958 shall apply to members of such committees.

Sec. 108. Nothing contained in this Act shall be construed as authorizing a department, agency, officer, or employee of the United States to exercise any direction, supervision, or control over, or impose any requirements or condition with respect to, the personnel, curriculum, methods of instruction, or administration of any educational institution.

Sec. 109. The Secretary of Health, Education, and Welfare is authorized, subject to the procedures prescribed by section 505 of the Classification Act of 1949 (5 U.S.C. 1105), to place a total of ten positions in the Office of Education in grades 16, 17, and 18 of the General Schedule in addition to positions placed in or authorized for such grades in such Office prior to the enactment of this Act. Surh positions shall be in addition to the number of positions authorized to be placed in such grades by subsection (b) of such section 505.


Sec. 110. This title may be cited as the “Academic Facilities Act of 1961".



SEC. 201. Title II of the National Defense Education Act is hereby amended by changing the heading of such title to read “TITLE II-FINANCIAL ASSISTANCE TO STUDENTS IN INSTITUTIONS OF HIGHER EDUCATION”, by inserting immediately below such heading the words “PART A-STUDENT LOANS”, by changing the words “this title” wherever they appear in such title

to read “this part", and by adding immediately after section 209 the following new part:



"SEC. 221. There is hereby authorized to be appropriated for the fiscal year ending June 30, 1962, the sum of $17,500,000, for the fiscal year ending June 30, 1963, the sum of $26,250,000, and for the fiscal year ending June 30, 1964, and for each of the two succeeding fiscal years the sum of $35,000,000 for scholarships to persons who have not previously been awarded scholarships under this part and who are selected for award of such scholarships by the State commissions on scholarships (hereinafter referred to as 'State commissions'). In addition there are authorized to be appropriated for the fiscal year ending June 30, 1963, and for each of the seven succeeding fiscal years such sums as are necessary for making payments to individuals who have been awarded scholarships under this part for previous years. Sums appropriated pursuant to the first sentence of this section shall remain available for the award of scholarships under this part until the close of the fiscal year succeeding the fiscal year for which they were appropriated.

"AMOUNT OF SCHOLARSHIPS “SEC. 222. (a) Any person awarded a scholarship under this part who is determined by the State commission, in accordance with the provisions of the State plan approved under section 226, to need financial assistance to continue his education at an institution of higher education shall be paid an amount, not to exceed $1,000 for any academic year or its equivalent (as defined in the regulations of the Commissioner), based on his financial need for assistance during such year (or equivalent) as determined in accordance with such provisions. Any person so awarded a scholarship who is determined by the State commission, in accordance with such provisions of the State plan, not to be in sufficient need for such assistance to be paid any amount under this part for his first yea shall receive an appropriate certificate from the Commissioner.

“(b) The Commissioner shall by regulation, prescribed after consultation with the other Federal agency or agencies concerned, provide for such adjustment (including, where appropriate, total withholding) of scholarship payments under this part as may be necessary to avoid duplication of educational assistance received under programs administered by such agencies.


“SEC. 223. The duration of a scholarship awarded under this part shall be the period, not in excess of four academic years or the equivalent (as defined in regulations of the Commissioner), required for completion by the recipient of the work for his bachelor's degree. Notwithstanding the preceding provisions of this part, a scholarship awarded under this part shall entitle the recipient to payments for such period only if the Commissioner finds that he (1) is maintaining satisfactory progress in the course of study which he is pursuing, according to the regularly prescribed standards and practices of the institution which he is attending, and (2) devotes essentially full time to educational work leading to a bachelor's degree, during the academic year (or equivalent), in attendance at an institution of higher education, except that failure to be in attendance at an institution during vacation periods or periods of military service, or during other periods during which the Commissioner determines, in accordance with regulations, that there is good cause for his nonattendance (during which periods he shall receive no payments), shall not be deemed contrary to this clause.

“SELECTION OF RECIPIENTS OF SCHOLARSHIPS "SEC. 224. (a) An individual shall be eligible to compete in any State for a scholarship under this part if he (1) is living in the State or, not living in any State, is domiciled in such State; (2) makes application at the time and in the manner prescribed by the State commission; (3) is not, or has not been, enrolled full time in any course of study at an institution of higher education ; and (4) is attending a high school whose graduates meet the requirements established by the State in which such school is located for graduation from high schools accredited by such State.

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(b) From among those competing in any State for scholarships for each fiscal year, the State commission shall, in accordance with the provisions of the State plan approved under section 226 and within the amount allotted to the State for such scholarships under section 225, select persons who are to be awarded such scholarships and determine the amounts, if any, to be paid to them. The Commissioner shall award a scholarship to a person so selected, and in the amount so determined, if

(1) the State commission certifies that such person (A) has received a certificate of graduation, based on completion of the twelfth grade, from any high school whose graduates meet the requirements established by the State in which such school is located for graduation from high schools accredited by such State, or (B) in the case of an individual who has not received such a certificate, is determined by such State commission to have attained a level of advancement generally accepted as constituting the equivalent of that required for graduation from such a high school;

“(2) such person has become enrolled in an institution of higher education for educational work leading to a bachelor's degree; and

“(3) such person's graduation from high school occurred (or the equivalent level of educational advancement was attained) during or at the close of the school year in which he was selected for the scholarship, and his enrollment at an institution of higher education was for the first academic year that commenced following his graduation (or attainment of the equivalent level of advancement) and occurred upon the first opportunity for such enrollment, except that the State commission may, in accordance with regulations of the Commissioner, for good cause waive or modify the requirements of this clause or clause (4) of subsection (a).


"SEC. 225. (a) From the sum appropriated for any fiscal year pursuant to the first sentence of section 221 the Commissioner shall allot amounts, but not in the aggregate to exceed 2 per centum of such sum, among Puerto Rico, the Canal Zone, Guam, and the Virgin Islands according to their respective needs for scholarship assistance as determined by him. The remainder of such sum shall be allotted by the Commissioner among the remaining States, one-half on the basis of the relative number of individuals graduating from public or other nonprofit high schools in the respective States, as determined by the Commissioner for the most recent year for which satisfactory data for such States are available to him, and one-half on the basis of their relative populations aged fourteen to seventeen, inclusive, as determined by the Commissioner for the most recent year for which satisfactory data are available from the Department of Commerce.

“(b) Sums appropriated under the second sentence of section 221 shall be allotted by the Commissioner among the States on the basis of the relative amounts he estimates are needed to make payments to persons awarded scholarships for previous years.


“SEC. 226. (a) Any State desiring to participate in the scholarship program under this part may do so by establishing a State commission on scholarships broadly representative of high schools and colleges, and of the public, in the State, or designating an existing State agency with equivalent representation to serve as the State commission on scholarships, and by submitting, through such commission, a State plan for carrying out the purposes of this part which is approved by the Commissioner under this section. The Commissioner shall approve any such plan which

(1) provides that it shall be administered by the State commission;

(2) provides for the selection of individuals to receive scholarships from among applicants eligible to compete therefor, and for determination of the amounts (if any) of payments under such scholarships, in accordance with standards, procedures, and criteria, established by the State commission, which the Commissioner finds provide reasonable assurance

“(A) that selection of individuals to receive scholarships under this part will be based solely on ability to pursue successfully, at an institution of higher education, a course of study leading to a bachelor's degree, determined in accordance with objective tests and other meas

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