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(1) An assurance of the uniformity of interpretation and application of such regulations.
(2) The establishment of a process for ensuring that eligibility and compliance issues, such as institutional audit, program review, and recertification, are considered simultaneously.
(3) A determination of the extent to which unnecessary costs are imposed on institutions of higher education as a consequence of the applicability to the facilities and equipment of such institutions of regulations prescribed for purposes of regulating industrial and commercial enterprises.
(b) REGULATORY AND STATUTORY RELIEF FOR SMALL VOLUME INSTITUTIONS.-The Secretary shall review and evaluate ways in which regulations under and provisions of this Act affecting institution of higher education (other than institutions described in section 102(a)(1)(C)), that have received in each of the two most recent award years prior to the date of the enactment of the Higher Education Amendments of 1998 less than $200,000 in funds through this title, may be improved, streamlined, or eliminated.
(c) CONSULTATION.-In carrying out subsections (a) and (b), the Secretary shall consult with relevant representatives of institutions participating in the programs authorized by this title.
(d) REPORTS TO CONGRESS.
(1) IN GENERAL.-The Secretary shall submit, not later than 1 year after the date of the enactment of the Higher Education Amendments of 1998, a report to the Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives detailing the Secretary's findings and recommendations based on the reviews conducted under subsections (a) and (b), including a timetable for implementation of any recommended changes in regulations and a description of any recommendations for legislative changes.
(2) ADDITIONAL REPORTS.-Not later than January 1, 2003, the Secretary shall submit a report to the Committee on Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives detailing the Secretary's findings and recommendations based on the review conducted under subsection (a), including a timetable for implementation of any recommended changes in regulations and a description of any recommendations for legislative changes.
TITLE V-DEVELOPING INSTITUTIONS
PART A-HISPANIC-SERVING INSTITUTIONS
SEC. 501. [20 U.S.C. 1101] FINDINGS; PURPOSE; AND PROGRAM AUTHORITY.
(a) FINDINGS.-Congress makes the following findings:
(1) Hispanic Americans are at high risk of not enrolling or graduating from institutions of higher education.
(2) Disparities between the enrollment of non-Hispanic white students and Hispanic students in postsecondary education are increasing. Between 1973 and 1994, enrollment of white secondary school graduates in 4-year institutions of higher education increased at a rate two times higher than that of Hispanic secondary school graduates.
(3) Despite significant limitations in resources, Hispanicserving institutions provide a significant proportion of postsecondary opportunities for Hispanic students.
(4) Relative to other institutions of higher education, Hispanic-serving institutions are underfunded. Such institutions receive significantly less in State and local funding, per fulltime equivalent student, than other institutions of higher education.
(5) Hispanic-serving institutions are succeeding in educating Hispanic students despite significant resource problems that
(A) limit the ability of such institutions to expand and improve the academic programs of such institutions; and
(B) could imperil the financial and administrative stability of such institutions.
(6) There is a national interest in remedying the disparities described in paragraphs (2) and (4) and ensuring that Hispanic students have an equal opportunity to pursue postsecondary opportunities.
(b) PURPOSE.-The purpose of this title is to
(1) expand educational opportunities for, and improve the academic attainment of, Hispanic students; and
(2) expand and enhance the academic offerings, program quality, and institutional stability of colleges and universities that are educating the majority of Hispanic college students and helping large numbers of Hispanic students and other lowincome individuals complete postsecondary degrees.
(c) PROGRAM AUTHORITY.-The Secretary shall provide grants and related assistance to Hispanic-serving institutions to enable such institutions to improve and expand their capacity to serve Hispanic students and other low-income individuals.
SEC. 502. [20 U.S.C. 1101a] DEFINITIONS; ELIGIBILITY.
(a) DEFINITIONS.-For the purpose of this title:
(1) EDUCATIONAL AND GENERAL EXPENDITURES.-The term "educational and general expenditures" means the total amount expended by an institution for instruction, research, public service, academic support (including library expenditures), student services, institutional support, scholarships and fellowships, operation and maintenance expenditures for the physical plant, and any mandatory transfers that the institution is required to pay by law.
(2) ELIGIBLE INSTITUTION.-The term "eligible institution"
(A) an institution of higher education
(i) that has an enrollment of needy students as required by subsection (b);
(ii) except as provided in section 512(b), the average educational and general expenditures of which are low, per full-time equivalent undergraduate student, in comparison with the average educational and general expenditures per full-time equivalent undergraduate student of institutions that offer similar instruction;
(iii) that is
(I) legally authorized to provide, and provides within the State, an educational program for which the institution awards a bachelor's degree;
(II) a junior or community college;
(iv) that is accredited by a nationally recognized accrediting agency or association determined by the Secretary to be reliable authority as to the quality of training offered or that is, according to such an agency or association, making reasonable progress toward accreditation;
(v) that meets such other requirements as the Secretary may prescribe; and
(vi) that is located in a State; and
(B) any branch of any institution of higher education described under subparagraph (A) that by itself satisfies the requirements contained in clauses (i) and (ii) of such subparagraph.
For purposes of the determination of whether an institution is an eligible institution under this paragraph, the factor described under subparagraph (A)(i) shall be given twice the weight of the factor described under subparagraph (A)(ii).
(3) ENDOWMENT FUND.-The term "endowment fund" means a fund that—
(A) is established by State law, by a Hispanic-serving institution, or by a foundation that is exempt from Federal income taxation;
(B) is maintained for the purpose of generating income for the support of the institution; and
(C) does not include real estate.
(4) FULL-TIME EQUIVALENT STUDENTS.-The term "full-time equivalent students" means the sum of the number of students enrolled full time at an institution, plus the full-time equivalent of the number of students enrolled part time (determined on the basis of the quotient of the sum of the credit hours of all part-time students divided by 12) at such institution.
(5) HISPANIC-SERVING INSTITUTION.-The term "Hispanicserving institution" means an institution of higher education that
(A) is an eligible institution;
(B) at the time of application, has an enrollment of undergraduate full-time equivalent students that is at least 25 percent Hispanic students; and
(C) provides assurances that not less than 50 percent of the institution's Hispanic students are low-income individuals.
(6) JUNIOR OR COMMUNITY COLLEGE.-The term "junior or community college" means an institution of higher education(A) that admits as regular students persons who are beyond the age of compulsory school attendance in the State in which the institution is located and who have the ability to benefit from the training offered by the institution;
(B) that does not provide an educational program for which the institution awards a bachelor's degree (or an equivalent degree); and
(i) provides an educational program of not less than 2 years in duration that is acceptable for full credit toward such a degree; or
(ii) offers a 2-year program in engineering, mathematics, or the physical or biological sciences, designed to prepare a student to work as a technician or at the semiprofessional level in engineering, scientific, or other technological fields requiring the understanding and application of basic engineering, scientific, or mathematical principles of knowledge.
(7) LOW-INCOME INDIVIDUAL.-The term "low-income individual" means an individual from a family whose taxable income for the preceding year did not exceed 150 percent of an amount equal to the poverty level determined by using criteria of poverty established by the Bureau of the Census.
(b) ENROLLMENT OF NEEDY STUDENTS.-For the purpose of this title, the term "enrollment of needy students" means an enrollment at an institution with respect to which—
(1) at least 50 percent of the degree students so enrolled are receiving need-based assistance under title IV in the second fiscal year preceding the fiscal year for which the determination is made (other than loans for which an interest subsidy is paid pursuant to section 428); or
(2) a substantial percentage of the students so enrolled are receiving Federal Pell Grants in the second fiscal year preceding the fiscal year for which determination is made, compared to the percentage of students receiving Federal Pell Grants at all such institutions in the second fiscal year preceding the fiscal year for which the determination is made, unless the requirement of this paragraph is waived under section 512(a). SEC. 503. [20 U.S.C. 1101b] AUTHORIZED ACTIVITIES.
(a) TYPES OF ACTIVITIES AUTHORIZED. Grants awarded under this title shall be used by Hispanic-serving institutions of higher education to assist the institutions to plan, develop, undertake, and carry out programs to improve and expand the institutions' capacity to serve Hispanic students and other low-income students.
(b) AUTHORIZED ACTIVITIES.-Grants awarded under this section shall be used for one or more of the following activities:
(1) Purchase, rental, or lease of scientific or laboratory equipment for educational purposes, including instructional and research purposes.
(2) Construction, maintenance, renovation, and improvement in classrooms, libraries, laboratories, and other instructional facilities.
(3) Support of faculty exchanges, faculty development, curriculum development, academic instruction, and faculty fellowships to assist in attaining advanced degrees in the fellow's field of instruction.
(4) Purchase of library books, periodicals, and other educational materials, including telecommunications program material.
(5) Tutoring, counseling, and student service programs designed to improve academic success.
(6) Funds management, administrative management, and acquisition of equipment for use in strengthening funds management.
(7) Joint use of facilities, such as laboratories and libraries. (8) Establishing or improving a development office to strengthen or improve contributions from alumni and the pri
(9) Establishing or improving an endowment fund.
(10) Creating or improving facilities for Internet or other distance learning academic instruction capabilities, including purchase or rental of telecommunications technology equipment or services.
(11) Establishing or enhancing a program of teacher education designed to qualify students to teach in public elementary schools and secondary schools.
(12) Establishing community outreach programs that will encourage elementary school and secondary school students to develop the academic skills and the interest to pursue postsecondary education.
(13) Expanding the number of Hispanic and other underrepresented graduate and professional students that can be served by the institution by expanding courses and institutional resources.
(14) Other activities proposed in the application submitted pursuant to section 504 that
(A) contribute to carrying out the purposes of this title; and
(B) are approved by the Secretary as part of the review and acceptance of such application.
(c) ENDOWMENT FUND LIMITATIONS.
(1) PORTION OF GRANT.-A Hispanic-serving institution may not use more than 20 percent of the grant funds provided under this title for any fiscal year for establishing or improving an endowment fund.
(2) MATCHING REQUIRED.-A Hispanic-serving institution that uses any portion of the grant funds provided under this title for any fiscal year for establishing or improving an endowment fund shall provide from non-Federal funds an amount equal to or greater than the portion.
(3) COMPARABILITY.-The provisions of part C of title III regarding the establishment or increase of an endowment fund,