[House Report 114-677]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-677
======================================================================
HBCU CAPITAL FINANCING IMPROVEMENT ACT
_______
July 11, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Kline, from the Committee on Education and the Workforce, submitted
the following
R E P O R T
[To accompany H.R. 5530]
[Including cost estimate of the Congressional Budget Office]
The Committee on Education and the Workforce, to whom was
referred the bill (H.R. 5530) to amend the Higher Education Act
of 1965 to modify certain provisions relating to the capital
financing of historically Black colleges and universities,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``HBCU Capital Financing Improvement
Act''.
SEC. 2. BOND INSURANCE.
Section 343 of the Higher Education Act of 1965 (20 U.S.C. 1066b) is
amended--
(1) by striking ``escrow account'' each place it appears and
inserting ``bond insurance fund''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking ``an'' and
inserting ``a''; and
(B) in paragraph (8), in the matter preceding
subparagraph (A), by striking ``an'' and inserting
``a''.
SEC. 3. STRENGTHENING TECHNICAL ASSISTANCE.
Paragraph (9) of section 345 of the Higher Education Act of 1965 (20
U.S.C. 1066d) is amended to read as follows:
``(9) may, directly or by grant or contract, provide
financial counseling and technical assistance to eligible
institutions to prepare the institutions to qualify, apply for,
and maintain a capital improvement loan, including a loan under
this part; and''.
SEC. 4. HBCU CAPITAL FINANCING ADVISORY BOARD.
Paragraph (2) of section 347(c) of the Higher Education Act of 1965
(20 U.S.C. 1066f(c)) is amended to read as follows:
``(2) Report.--On an annual basis, the Advisory Board shall
prepare and submit to the authorizing committees a report on
the status of the historically Black colleges and universities
described in paragraph (1)(A). That report shall also include--
``(A) an overview of all loans in the capital
financing program, including the most recent loans
awarded in the fiscal year in which the report is
submitted; and
``(B) administrative and legislative recommendations,
as needed, for addressing the issues related to
construction financing facing historically Black
colleges and universities.''.
Purpose
H.R. 5530, the HBCU Capital Financing Improvement Act,
increases access to, and strengthens congressional oversight
of, the Historically Black College and University (HBCU)
Capital Financing Program.
Committee Action
As the Committee on Education and the Workforce (Committee)
continues the Higher Education Act reauthorization process,
increasing transparency and usefulness of higher education
data; simplifying and improving the federal student aid
programs; and promoting innovation, access, and completion
remain top priorities.
112TH CONGRESS
Hearings--First session
On March 1, 2011, the Committee held a hearing in
Washington, D.C., on ``Education Regulations: Weighing the
Burden on Schools and Students.'' The hearing was the first in
a series examining the burden of federal, state, and local
regulations on the nation's education system. The purpose of
the hearing was to uncover the damaging effects of federal
regulations on schools and institutions. These rules
increasingly stifle growth and innovation, raise operating
costs, and limit student access to affordable colleges and
universities throughout the nation. Testifying before the
Committee were Dr. Edgar Hatrick, Superintendent, Loudon County
Public Schools, Ashburn, Virginia; Ms. Kati Haycock, President,
The Education Trust, Washington, D.C.; Mr. Gene Wilhoit,
Executive Director, Council of Chief State School Officers,
Washington, D.C.; and Mr. Christopher B. Nelson, President, St.
John's College, Annapolis, Maryland.
On March 11, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Education
Regulations: Federal Overreach into Academic Affairs.'' The
purpose of the hearing was to discuss the most egregious and
intrusive pieces of the program integrity regulations issued by
the U.S. Department of Education, specifically, the state
authorization regulation and the credit hour regulation, and to
uncover the unintended consequences of the regulations to
states and institutions of higher education. Testifying before
the Subcommittee were Mr. John Ebersole, President, Excelsior
College, Albany, New York; Dr. G. Blair Dowden, President,
Huntington University, Huntington, Indiana; The Honorable
Kathleen Tighe, Inspector General, U.S. Department of
Education, Washington, D.C.; and Mr. Ralph Wolff, President,
Western Association of Schools and Colleges, Alameda,
California.
On March 17, 2011, the Committee on held a hearing in
Washington, D.C., on ``Education Regulations: Roadblocks to
Student Choice in Higher Education.'' The purpose of the
hearing was to explore the harmful consequences of the gainful
employment regulation issued by the U.S. Department of
Education. Testifying before the Committee were Ms. Catherine
Barreto, Graduate, Monroe College, and Senior Sales Associate,
Doubletree Hotels, Brooklyn, New York; Mr. Travis Jennings,
Electrical Supervisor of the Manufacturing Launch Systems
Group, Orbital Sciences Corporation, Chandler, Arizona; Dr.
Arnold Mitchem, President, Council for Opportunity in
Education, Washington, D.C.; and Ms. Jeanne Herrmann, Chief
Operating Officer, Globe University/Minnesota School of
Business, Woodbury, Minnesota.
On March 21, 2011, the Committee held a hearing in Wilkes-
Barre, Pennsylvania, on ``Reviving our Economy: The Role of
Higher Education in Job Growth and Development.'' The purpose
of the hearing was to highlight work by local colleges and
universities to respond to local and state economic needs.
Testifying before the Committee were Mr. James Perry,
President, Hazelton City Council, Hazelton, Pennsylvania; Mr.
Jeffrey Alesson, Vice President of Strategic Planning and
Quality Assurance, Diamond Manufacturing, Exeter, Pennsylvania;
Dr. Reynold Verret, Provost, Wilkes University, Wilkes-Barre,
Pennsylvania; Mr. Raymond Angeli, President, Lackawanna
College, Scranton, Pennsylvania; Ms. Joan Seaman, Executive
Director, Empire Beauty School, Moosic, Pennsylvania; and Mr.
Thomas P. Leary, President, Luzerne County Community College,
Nanticoke, Pennsylvania.
On March 22, 2011, the Committee held a hearing in Utica,
New York, on ``Reviving our Economy: The Role of Higher
Education in Job Growth and Development.'' The purpose of the
hearing was to highlight work by local colleges and
universities to respond to local and state economic needs.
Testifying before the Committee were Mr. Anthony J. Picente,
Jr., County Executive, Oneida County, Utica, New York; Mr. Dave
Mathis, Director, Oneida County Workforce Development, Utica,
New York; Dr. John Bay, Vice President and Chief Scientist,
Assured Information Security, Inc., Rome, New York; Dr. Bjong
Wolf Yeigh, President, State University of New York Institute
of Technology, Utica, New York; Dr. Ann Marie Murray,
President, Herkimer County Community College, Herkimer, New
York; Dr. Judith Kirkpatrick, Provost, Utica College, Utica,
New York; and Mr. Phil Williams, President, Utica School of
Commerce, The Business College, Utica, New York.
On April 21, 2011, the Committee held a hearing in
Columbia, Tennessee, on ``Reviving our Economy: The Role of
Higher Education in Job Growth and Development.'' The purpose
of the hearing was to highlight the work by local colleges and
universities to respond to local and state economic needs.
Testifying before the Committee were Dr. Janet Smith,
President, Columbia State Community College, Columbia,
Tennessee; Dr. Ted Brown, President, Martin-Methodist College,
Pulaski, Tennessee; Mr. Jim Coakley, President, Nashville Auto-
Diesel College, Nashville, Tennessee; The Honorable Dean
Dickey, Mayor, City of Columbia, Columbia, Tennessee; Ms. Susan
Marlow, President and Chief Executive Officer, Smart Data
Strategies, Franklin, Tennessee; Ms. Jan McKeel, Executive
Director, South Central Tennessee Workforce Board, Columbia,
Tennessee; and Ms. Margaret Prater, Executive Director,
Northwest Tennessee Workforce Board, Dyersburg, Tennessee.
On July 8, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training, together with the House Committee on Oversight and
Government Reform Subcommittee on Regulatory Affairs, Stimulus
Oversight, and Government Spending, held a hearing in
Washington, D.C., on ``The Gainful Employment Regulation:
Limiting Job Growth and Student Choice.'' The purpose of the
hearing was to explore the harmful consequences of the gainful
employment regulation issued by the U.S. Department of
Education. Testifying before the subcommittees were Dr. Dario
A. Cortes, President, Berkeley College, New York City, New
York; Dr. Anthony P. Carnevale, Director, Georgetown University
Center on Education and the Workforce, Washington, D.C.; Ms.
Karla Carpenter, Graduate, Herzing University and Program
Manager, Quest Software, Madison, Wisconsin; and Mr. Harry C.
Alford, President and Chief Executive Officer, National Black
Chamber of Commerce, Washington, D.C.
On August 16, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Greenville, South Carolina, on
``Reviving Our Economy: The Role of Higher Education in Job
Growth and Development.'' The purpose of the hearing was to
highlight the work by local colleges and universities to
respond to local and state economic needs. Testifying before
the Subcommittee were The Honorable Knox White, Mayor, City of
Greenville, Greenville, South Carolina; Mr. Werner Eikenbusch,
Section Manager, Associate Development and Training, BMW
Manufacturing Co., Spartanburg, South Carolina; Ms. Laura
Harmon, Project Director, Greenville Works, Greenville, South
Carolina; Dr. Brenda Thames, Vice President of Academic
Development, Greenville Health System, Greenville, South
Carolina; Mr. James F. Barker, President, Clemson University,
Clemson, South Carolina; Dr. Thomas F. Moore, Chancellor,
University of South Carolina Upstate, Spartanburg, South
Carolina; Dr. Keith Miller, President, Greenville Technical
College, Greenville, South Carolina; and Ms. Amy Hickman,
Campus President, ECPI College of Technology, Greenville, South
Carolina.
On October 25, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Government-
Run Student Loans: Ensuring the Direct Loan Program is
Accountable to Students and Taxpayers.'' The purpose of the
hearing was to examine the switch to and implementation of the
Direct Loan program. Testifying before the Subcommittee were
Mr. James W. Runcie, Chief Operating Officer, Office of Federal
Student Aid, U.S. Department of Education, Washington, D.C.;
Mr. Ron H. Day, Director of Financial Aid, Kennesaw State
University, Kennesaw, Georgia; Ms. Nancy Hoover, Director of
Financial Aid, Denison University, Granville, Ohio; and Mr.
Mark. A. Bandr, Vice President for Enrollment Management and
Student Affairs, Baker University, Baldwin City, Kansas.
On November 30, 2011, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Keeping
College Within Reach: Discussing Ways Institutions Can
Streamline Costs and Reduce Tuition.'' The purpose of the
hearing was to highlight innovative practices institutions of
higher education are implementing to reduce their costs to
limit tuition increases for students. Testifying before the
Subcommittee were Ms. Jane V. Wellman, Executive Director,
Delta Project on Postsecondary Costs, Productivity, and
Accountability, Washington, D.C.; Dr. Ronald E. Manahan,
President, Grace College and Seminary, Winona Lake, Indiana;
Mr. Jamie P. Merisotis, President and Chief Executive Officer,
Lumina Foundation for Education, Indianapolis, Indiana; and Mr.
Tim Foster, President, Colorado Mesa University, Grand
Junction, Colorado.
Legislative action--First session
On February 17, 2011, the House of Representatives
considered an amendment offered by Committee Chairman John
Kline (R-MN), Higher Education and Workforce Training
Subcommittee Chairwoman Virginia Foxx (R-NC), and Rep. Alcee
Hastings (D-FL) to H.R. 1, the Disaster Relief Appropriations
Act of 2013. The amendment prohibited the use of funds by the
U.S. Department of Education to implement and enforce the
gainful employment regulation. The amendment was agreed to by a
bipartisan vote of 289 to 136.
On February 19, 2011, the House of Representatives passed
H.R. 1 by a vote of 235 to 189. This bill was not signed into
law.
On June 3, 2011, Chairman John Kline (R-MN) and
Subcommittee Chairwoman Virginia Foxx (R-NC) introduced H.R.
2117, the Protecting Academic Freedom in Higher Education Act.
The bill repealed the state authorization regulation, one piece
of the credit hour regulation, and prohibited the Secretary of
Education (Secretary) from defining credit hour for any purpose
under the Higher Education Act of 1965.
On June 15, 2011, the Committee considered H.R. 2117 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a bipartisan vote of 27 to 11.
The Committee considered and adopted the following
amendment to H.R. 2117:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute to add a
short title to the legislation. The amendment was adopted by
voice vote.
The Committee further considered the following amendments
to H.R. 2117, which were not adopted:
Rep. Raul Grijalva (D-AZ) offered an amendment to
maintain pieces of the state authorization regulation,
including the complaint process. The amendment failed by a vote
of 17 to 22.
Ranking Member George Miller (D-CA) offered an
amendment to prohibit implementation until the U.S. Department
of Education Inspector General certifies there are equal or
greater protections in place related to program integrity under
Title IV of the Higher Education Act of 1965. The amendment
failed by a vote of 17 to 22.
Rep. Rush Holt (D-NJ) offered an amendment to
stipulate the act would be effective only if the maximum Pell
Grant award is at least $5,550 for the 2012-2013 school year.
The amendment was ruled out of order.
Rep. Tim Bishop (D-NY) offered an amendment to
strike the repeal of the credit hour regulation that
establishes a federal definition of a credit hour. The
amendment failed by a vote of 11 to 27.
Rep. Tim Bishop (D-NY) offered an amendment to
strike the prohibition on the Secretary of Education from
defining credit hour in the future. The amendment failed by a
vote of 16 to 22.
Hearings--Second session
On July 18, 2012, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Keeping
College Within Reach: Exploring State Efforts to Curb Costs.''
The purpose of the hearing was to highlight innovative
practices at the state level to assist postsecondary
institutions in keeping costs affordable and to promote
accountability of public funds. Testifying before the
Subcommittee were Mr. Scott Pattison, Executive Director,
National Association of State Budget Officers, Washington,
D.C.; Ms. Teresa Lubbers, Commissioner for Higher Education,
State of Indiana, Indianapolis, Indiana; Mr. Stan Jones,
President, Complete College America, Zionsville, Indiana; and
Dr. Joe May, President, Louisiana Community and Technical
College System, Baton Rouge, Louisiana.
On September 20, 2012, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Assessing
College Data: Helping to Provide Valuable Information to
Students, Institutions, and Taxpayers.'' The purpose of the
hearing was to examine data collected by the federal government
from institutions of higher education, including data
requirements established during the last reauthorization of the
Higher Education Act. Testifying before the Subcommittee were
Dr. Mark Schneider, Vice President, American Institutes for
Research, Washington, D.C.; Dr. James Hallmark, Vice Chancellor
for Academic Affairs, Texas A&M System, College Station, Texas;
Dr. Jose Cruz, Vice President for Higher Education Policy and
Practice, The Education Trust, Washington, D.C.; and Dr. Tracy
Fitzsimmons, President, Shenandoah University, Winchester,
Virginia.
Legislative action--Second session
On February 28, 2012, the House of Representatives passed
H.R. 2117 by a bipartisan vote of 303 to 114. The bill was sent
to the Senate and referred to the Senate Committee on Health,
Education, Labor, and Pensions.
On April 25, 2012, Rep. Judy Biggert (R-IL) introduced H.R.
4628, the Interest Rate Reduction Act. The bill reduced the
interest rate on subsidized Stafford loans made to
undergraduate students from 6.8 percent to 3.4 percent for one
year, from July 1, 2012, through June 30, 2013. To offset the
increase in mandatory spending, the bill repealed the
Prevention and Public Health Fund authorized under Section 4002
of the Patient Protection and Affordable Care Act and rescinded
the balance of unobligated monies made available for the fund.
On April 27, 2012, the House of Representatives passed H.R.
4628 by a vote of 215 to 195.
While H.R. 4628 was never considered by the Senate, its
provisions were included in the Conference Report for H.R.
4348, the Moving Ahead for Progress in the 21st Century Act
(MAP-21), sponsored by Rep. John Mica (R-FL). To partially
offset the increase in mandatory spending that resulted from
the temporary reduction in interest rates on subsidized
Stafford loans, the bill permanently restricted the period of
eligibility to borrow subsidized Stafford loans to 150 percent
of the published length of a student's educational program.
On June 29, 2012, the House of Representatives passed the
Conference Report to H.R. 4348 by a bipartisan vote of 373 to
52.
On June 29, 2012, the Senate passed the Conference Report
to H.R. 4348 by a bipartisan vote of 74 to 19.
On July 6, 2012, the President of the United States signed
H.R. 4348 into law (P.L. 112-141).
113TH CONGRESS
Hearings--First session
On March 13, 2013, the Committee held a hearing in
Washington, D.C., on ``Keeping College Within Reach: Examining
Opportunities to Strengthen Federal Student Loan Programs.''
The purpose of the hearing was to examine ways to strengthen
federal student loans, as well as how moving to a market-based
or variable interest rate on all federal student loans could
benefit both students and taxpayers. Testifying before the
Committee were Dr. Deborah J. Lucas, Sloan Distinguished
Professor of Finance, Massachusetts Institute of Technology,
Cambridge, Massachusetts; Mr. Jason Delisle, Director, Federal
Education Budget Project, The New America Foundation,
Washington, D.C.; Mr. Justin Draeger, President and Chief
Executive Officer, National Association of Student Financial
Aid Administrators, Washington, D.C.; and Dr. Charmaine Mercer,
Vice President of Policy, Alliance for Excellent Education,
Washington, D.C.
On April 9, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Monroe, Michigan, entitled
``Reviving Our Economy: The Role of Higher Education in Job
Growth and Development.'' The purpose of the hearing was to
highlight work being done by local colleges and universities to
respond to local and state economic needs. Testifying before
the Subcommittee were Mr. Henry Lievens, Commissioner, Monroe
County, Monroe, Michigan; Ms. Lynette Dowler, Plant Director,
Fossil Generation, DTE Energy, Detroit, Michigan; Ms. Susan
Smith, Executive Director, Economic Development Partnership of
Hillsdale County, Jonesville, Michigan; Mr. Dan Fairbanks,
United Auto Workers International Representative, UAW-GM Skill
Development and Training Department, Detroit, Michigan; Dr.
David E. Nixon, President, Monroe County Community College,
Monroe, Michigan; Sister Peg Albert, OP, Ph.D., President,
Siena Heights University, Adrian, Michigan; Dr. Michelle
Shields, Career Coach/Workforce Development Director, Jackson
Community College, Jackson, Michigan; and Mr. Douglas A. Levy,
Director of Financial Aid, Macomb Community College, Warren,
Michigan.
On April 16, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: The Role of Federal Student Aid
Programs.'' The purpose of the hearing was to examine shifting
the focus of federal student aid programs from enhancing access
to improving student outcomes. Testifying before the
Subcommittee were Mr. Terry W. Hartle, Senior Vice President,
Division of Government and Public Affairs, American Council on
Education, Washington, D.C.; Ms. Moriah Miles, State Chair,
Minnesota State University Student Association, Mankato,
Minnesota; Ms. Patricia McGuire, President, Trinity Washington
University, Washington, D.C.; and Mr. Dan Madzelan, Former
Employee (Retired), U.S. Department of Education, University
Park, Maryland.
On April 24, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Enhancing Transparency for Students,
Families, and Taxpayers.'' The purpose of the hearing was to
examine ways to improve the information provided by the federal
government to inform students and families about their
postsecondary education options. Testifying before the
Subcommittee were Dr. Donald E. Heller, Dean, College of
Education, Michigan State University, East Lansing, Michigan;
Mr. Alex Garrido, Student, Keiser University, Miami, Florida;
Dr. Nicole Farmer Hurd, Founder and Executive Director,
National College Advising Corps, Carrboro, North Carolina; and
Mr. Travis Reindl, Program Director, Postsecondary Education,
National Governors Association Center for Best Practices,
Washington, D.C.
On June 13, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Discussing Program Quality through
Accreditation.'' The purpose of the hearing was to examine the
historical role of accreditation, discuss the role of regional
and national accreditors in measuring institutional quality,
and contemplate areas for reform. Testifying before the
Subcommittee were Dr. Elizabeth H. Sibolski, President, Middle
States Commission on Higher Education, Philadelphia,
Pennsylvania; Dr. Michale McComis, Executive Director,
Accrediting Commission of Career Schools and Colleges,
Arlington, Virginia; Ms. Anne D. Neal, President, American
Council of Trustees and Alumni, Washington, D.C.; and Mr. Kevin
Carey, Director of the Education Policy Program, The New
America Foundation, Washington, D.C.
On July 9, 2013, the Committee held a hearing in
Washington, D.C., entitled ``Keeping College Within Reach:
Improving Higher Education through Innovation.'' The purpose of
the hearing was to highlight innovation in higher education
occurring at the state and institutional level and in the
private sector. Testifying before the Committee were Mr. Scott
Jenkins, Director of External Relations, Western Governors
University, Salt Lake City, Utah; Dr. Pamela J. Tate, President
and Chief Executive Officer, Council for Adult and Experiential
Learning, Chicago, Illinois; Dr. Joann A. Boughman, Senior Vice
Chancellor for Academic Affairs, University System of Maryland,
Adelphi, Maryland; and Mr. Burck Smith, Chief Executive Officer
and Founder, StraighterLine, Baltimore, Maryland.
On September 11, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Supporting Higher Education Opportunities
for America's Servicemembers and Veterans.'' The purpose of the
hearing was to examine the efforts of higher education to
improve postsecondary education opportunities for
servicemembers and veterans. Testifying before the Subcommittee
were Mrs. Kimrey W. Rhinehardt, Vice President for Federal and
Military Affairs, The University of North Carolina, Chapel
Hill, North Carolina; Dr. Arthur F. Kirk, Jr., President, Saint
Leo University, Saint Leo, Florida; Dr. Russell S. Kitchner,
Vice President for Regulatory and Governmental Relations,
American Public University System, Charles Town, West Virginia;
and Dr. Ken Sauer, Senior Associate Commissioner for Research
and Academic Affairs, Indiana Commission for Higher Education,
Indianapolis, Indiana.
On September 18, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Improving Access and Affordability
through Innovative Partnerships.'' The purpose of the hearing
was to examine the efforts of higher education institutions to
expand access and reduce costs by partnering with local
employers, other colleges, or online course providers.
Testifying before the Subcommittee were Dr. Jeffrey Docking,
President, Adrian College, Adrian, Michigan; Ms. Paula R.
Singer, President and Chief Executive Officer, Laureate Global
Products and Services, Baltimore, Maryland; Dr. Rich Baraniuk,
Professor, Rice University, and Founder, Connexions, Houston,
Texas; and Dr. Charles Lee Isbell, Jr., Professor and Senior
Associate Dean, College of Computing, Georgia Institute of
Technology, Atlanta, Georgia.
On November 13, 2013, the Committee held a hearing in
Washington, D.C., entitled ``Keeping College Within Reach:
Simplifying Federal Student Aid.'' The purpose of the hearing
was to examine the need to streamline, consolidate, and
simplify federal student aid programs. Testifying before the
Committee were Ms. Kristin D. Conklin, Founding Partner, HCM
Strategies, LLC, Washington, D.C.; Dr. Sandy Baum, Research
Professor of Education Policy, George Washington University
Graduate School of Education and Human Development, and Senior
Fellow, Urban Institute, Washington, D.C.; Ms. Jennifer
Mishory, J.D., Deputy Director, Young Invincibles, Washington,
D.C.; and Mr. Jason Delisle, Director, Federal Education Budget
Project, New America Foundation, Washington, D.C.
On December 3, 2013, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Strengthening Pell Grants for Future
Generations.'' The purpose of the hearing was to examine Pell
Grant program reform proposals to better target funds to the
neediest students and put the program on a fiscally responsible
and sustainable path. Testifying before the Subcommittee were
Mr. Justin Draeger, President and Chief Executive Officer,
National Association of Student Financial Aid Administrators,
Washington, D.C.; Dr. Jenna Ashley Robinson, Director of
Outreach, John W. Pope Center for Higher Education Policy,
Raleigh, North Carolina; Mr. Michael Dannenberg, Director of
Higher Education and Education Finance Policy, The Education
Trust, Washington, D.C.; and Mr. Richard C. Heath, Director of
Student Financial Services, Anne Arundel Community College,
Arnold, Maryland.
Legislative action--First session
On May 9, 2013, Chairman John Kline (R-MN) and Subcommittee
Chairwoman Virginia Foxx (R-NC) introduced H.R. 1911, the
Smarter Solutions for Students Act. The bill moved all federal
student loans (except Perkins loans) to a market-based interest
rate.
On May 16, 2013, the Committee considered H.R. 1911 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a bipartisan vote of 24 to 13.
The Committee considered and adopted the following
amendment to H.R. 1911:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute to make a
technical change to the bill. The amendment was adopted by
voice vote.
The Committee further considered the following amendments
to H.R. 1911, which were not adopted:
Rep. Joe Heck (R-NV) offered an amendment to
allocate a portion of the savings generated under the bill to
Pell Grants. The amendment was withdrawn.
Rep. Joe Heck (R-NV) offered an amendment to
provide the Secretary of Education with authority to reduce the
interest rate on student loans if a borrower makes the first 48
payments on time. The amendment was withdrawn.
Rep. John Tierney (D-MA) offered an amendment to
set the federal student loan interest rates at the same rate
the Federal Reserve charges to banks for two years. The
amendment failed by a vote of 14 to 23.
Rep. Joe Courtney (D-CT) offered an amendment to
extend the 3.4 percent interest rate on subsidized Stafford
loans for two years. The amendment failed by a vote of 15 to
21.
On May 23, 2013, the House of Representatives passed H.R.
1911 by a bipartisan vote of 221 to 198.
On July 24, 2013, the Senate passed a substitute version of
H.R. 1911, the Bipartisan Student Loan Certainty Act, by a
bipartisan vote of 81 to 18. The legislation allowed student
loan interest rates to reset once a year by the market, but
they would be locked into a fixed rate once the loan is
disbursed to the student. Interest rates would be set using the
following formulas:
Undergraduate Stafford loans (subsidized and
unsubsidized): 10-year Treasury Note plus 2.05 percent, capped
at 8.25 percent.
Graduate Stafford loans: 10-year Treasury Note
plus 3.6 percent, capped at 9.5 percent
PLUS loans (graduate and parent): 10-year Treasury
Note plus 4.6 percent, capped at 10.5 percent.
On July 31, 2013, the House of Representatives agreed to
suspend the rules and agree to the Senate amendment to H.R.
1911 by a bipartisan vote of 392 to 31.
On August 9, 2013, the President of the United States
signed H.R. 1911 into law (P.L. 113-28).
On May 13, 2013, Rep. Luke Messer (R-IN) introduced H.R.
1949, the Improving Postsecondary Education Data for Students
Act. The bill directed the Secretary to convene an Advisory
Committee on Improving Postsecondary Education Data to conduct
a study on the factors students and families want, need, and
already consider when choosing a higher education institution.
On May 16, 2013, the Committee considered H.R. 1949 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a voice vote. The Committee
considered and adopted the following amendment to H.R. 1949:
Rep. Luke Messer (R-IN) offered an amendment in
the nature of a substitute to H.R. 1949 to (1) include
individuals who represent undergraduate and graduate education;
college and career counselors at secondary schools; experts in
data policy, collection, and use; and experts in labor markets
on the list of individuals required to be represented on the
Advisory Committee on Improving Postsecondary Education Data;
(2) ensure individuals on the advisory committee represent
economic, racial, and geographically diverse populations; (3)
require the advisory committee to examine information related
to the sources of financial assistance, including federal
student loans, as part of the required aspects of the study;
(4) require the advisory committee to examine how information
regarding student outcomes should be disaggregated for first-
generation students; and (5) provide other conforming and
technical changes to the bill. The amendment was adopted by
voice vote.
On May 22, 2013, the House of Representatives agreed to
suspend the rules and pass H.R. 1949 by voice vote. The bill
was sent to the Senate and referred to the Senate Committee on
Health, Education, Labor, and Pensions.
On July 10, 2013, Chairman John Kline (R-MN), Subcommittee
Chairwoman Virginia Foxx (R-NC), and Rep. Alcee Hastings (D-FL)
introduced H.R. 2637, the Supporting Academic Freedom through
Regulatory Relief Act. The bill, which included the text of the
Protecting Academic Freedom in Higher Education Act (H.R. 2117)
and the Kline/Foxx/Hastings amendment to H.R. 1 from the 112th
Congress, repealed the credit hour, state authorization, and
gainful employment regulations and amended the statute to
clarify the incentive compensation regulation. Additionally,
the bill prohibited the U.S. Department of Education from
issuing related regulations until after Congress reauthorizes
the Higher Education Act.
On July 24, 2013, the Committee considered H.R. 2637 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a bipartisan vote of 22 to 13.
The Committee considered and adopted the following
amendment to H.R. 2637:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute to change a
subsection title in the legislation. The amendment was adopted
by voice vote.
The Committee further considered the following amendment to
H.R. 2637, which was not adopted:
Rep. Tim Bishop (D-NY) offered an amendment to
strike the prohibition on the U.S. Department of Education from
issuing regulations related to state authorization, gainful
employment, and credit hour. The amendment failed by a vote of
13 to 22.
Hearings--Second session
On January 28, 2014, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., entitled ``Keeping
College Within Reach: Sharing Best Practices for Serving Low-
Income and First Generation Students.'' The purpose of the
hearing was to highlight best practices at institutions of
higher education for serving low-income and first generation
students. Testifying before the Subcommittee were Dr. James
Anderson, Chancellor, Fayetteville State University,
Fayetteville, North Carolina; Mrs. Mary Beth Del Balzo, Senior
Executive Vice President and Chief Executive Officer, The
College of Westchester, White Plains, New York; Mr. Josse Alex
Garrido, Graduate Student, University of Texas--Pan American,
Edinburg, Texas; and Rev. Dennis H. Holtschneider, President,
DePaul University, Chicago, Illinois.
On February 27, 2013, the Committee on Education and the
Workforce Subcommittee on Early Childhood, Elementary, and
Secondary Education and Subcommittee on Higher Education and
Workforce Training held a joint hearing in Washington, D.C., on
``Exploring Efforts to Strengthen the Teaching Profession.''
The purpose of the hearing was to discuss the state of teacher
preparation nationwide. Testifying before the subcommittees
were Dr. Deborah A. Gist, Commissioner, Rhode Island Department
of Elementary and Secondary Education, Providence, Rhode
Island; Dr. Marcy Singer-Gabella, Professor of the Practice of
Education, Vanderbilt University, Nashville, Tennessee; Dr.
Heather Peske, Associate Commissioner for Educator Quality,
Massachusetts Department of Elementary and Secondary Education,
Malden, Massachusetts; and Ms. Christina Hall, Co-Founder and
Co-Director, Urban Teacher Center, Baltimore, Maryland.
On March 12, 2014, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Examining the
Mismanagement of the Student Loan Rehabilitation Process.'' The
purpose of the hearing was to examine the U.S. Department of
Education's ability to oversee the processing of rehabilitated
loans issued under the Direct Loan program. Testifying before
the Subcommittee were Ms. Melissa Emrey-Arras, Director of
Education, Workforce, and Income Security Issues, U.S.
Government Accountability Office, Boston, Massachusetts; The
Honorable Kathleen Tighe, Inspector General, U.S. Department of
Education, Washington, D.C.; Mr. James Runcie, Chief Operating
Officer, Federal Student Aid, U.S. Department of Education,
Washington, D.C.; and Ms. Peg Julius, Executive Director of
Enrollment Management, Kirkwood Community College, Cedar
Rapids, Iowa.
On March 20, 2014, the Committee held a hearing in Mesa,
Arizona, entitled ``Reviving our Economy: Supporting a 21st
Century Workforce.'' The purpose of the hearing was to explore
the role of local higher education institutions in fostering
job creation and growth through innovative partnerships with
the business community and new modes of teaching delivery.
Testifying before the Committee were The Honorable Rick
Heumann, Vice Mayor, City of Chandler, Chandler, Arizona; Ms.
Cathleen Barton, Education Manager, Intel Corporate Affairs,
Southwestern United States, Intel Corporation, Chandler,
Arizona; Mr. Lee D. Lambert, J.D., Chancellor, Pima Community
College, Tucson, Arizona; Dr. William Pepicello, President,
University of Phoenix, Tempe, Arizona; Dr. Michael Crow,
President, Arizona State University, Tempe, Arizona; Dr. Ann
Weaver Hart, President, The University of Arizona, Tucson,
Arizona; Dr. Ernest A. Lara, President, Estrella Mountain
Community College, Avondale, Arizona; and Ms. Christy Farley,
Vice President of Government Affairs and Business Partnerships,
Northern Arizona University, Phoenix, Arizona.
On April 2, 2014, the Committee on Education and the
Workforce held a hearing in Washington, D.C., entitled
``Keeping College Within Reach: Meeting the Needs of
Contemporary Students.'' The purpose of the hearing was to
examine how institutions, states, and other entities assist
contemporary college students in accessing and completing
postsecondary education. Testifying before the Committee were
Dr. George A. Pruitt, President, Thomas Edison State College,
Trenton, New Jersey; Dr. Kevin Gilligan, Chairman and Chief
Executive Officer, Capella Education Company, Minneapolis,
Minnesota; Mr. David Moldoff, Chief Executive Officer and
Founder, AcademyOne, Inc., West Chester, Pennsylvania; Dr.
Joann A. Boughman, Senior Vice Chancellor for Academic Affairs,
University System of Maryland, Adelphi, Maryland; Mr. Stan
Jones, President, Complete College America, Indianapolis,
Indiana; and Dr. Brooks A. Keel, President, Georgia Southern
University, Statesboro, Georgia.
Legislative action--Second session
On September 19, 2013, Rep. Matt Salmon (R-AZ), Rep. Susan
Brooks (R-IN), and Rep. Jared Polis (D-CO) introduced H.R.
3136, the Advancing Competency-Based Education Demonstration
Project Act of 2013. The bill directed the Secretary to select
institutions or consortia of institutions for voluntary
participation in competency-based education demonstration
projects. The demonstration projects would have provided
participating entities with the ability to offer competency-
based education programs that do not meet certain statutory and
regulatory requirements which would otherwise prevent them from
participating in federal student aid programs.
On July 10, 2014, the Committee considered H.R. 3136 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a voice vote. The Committee
considered and adopted the following amendment to H.R. 3136:
Rep. Matt Salmon (R-AZ) and Rep. Jared Polis (D-
CO) offered an amendment in the nature of a substitute to add
certain requirements to the applications to participate in a
competency-based education project; allow eligible entities to
submit amendments to their previously-approved applications;
set requirements for the entities the Secretary must choose to
participate in the programs; require institutions to provide
student information to the director of the Institute of
Education Sciences (IES); require the Director of IES to
annually evaluate each project and provide a report with
specified information to the authorizing committees; authorize
funds to be available from the amount appropriated for salaries
and expenses of the U.S. Department of Education, and make
conforming and technical changes to the introduced bill. The
amendment was adopted by voice vote.
The Committee further considered the following amendment to
H.R. 3136, which was not adopted:
Rep. Tierney (D-MA) offered an amendment that
would have allowed students with federal student loans and
private student loans issued prior to 2013 to refinance those
loans into new federal loans at the interest rate set for the
2013-2014 academic year. The amendment was ruled non-germane.
Ranking Member George Miller (D-CA) appealed the ruling of the
chair. Rep. Glenn Thompson (R-PA) offered a motion to table the
appeal of the ruling of the chair, which was adopted by a vote
of 22 to 16.
On July 23, 2014, the House of Representatives considered
H.R. 3136 and passed it, as amended, by a recorded vote of 414-
0 on July 23, 2014. The bill was sent to the Senate and was
referred to the Senate Committee on Health, Education, Labor,
and Pensions.
On June 26, 2014, Subcommittee Chairwoman Virginia Foxx (R-
NC) and Rep. Luke Messer (R-IN) introduced H.R. 4983, the
Strengthening Transparency in Higher Education Act. The bill
simplified and streamlined the information made publicly
available by the Secretary regarding institutions of higher
education.
On July 10, 2014, the Committee considered H.R. 4983 in
legislative session and reported it favorably, as amended, to
the House of Representatives by a voice vote. The Committee
considered and adopted the following amendment to H.R. 4983:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute that
required additional information on the College Dashboard;
required the Secretary to conduct consumer testing in
consultation with appropriate federal departments and agencies;
ensured consumer testing addresses whether the College
Dashboard provides useful and relevant information to students
and families; required the Secretary to submit to the
authorizing committees recommendations based on the results of
consumer testing; set new minimum requirements for net price
calculators, required funding to come from funds already
appropriated to maintain the College Navigator; and made other
conforming and technical changes. The amendment was adopted by
voice vote.
The Committee further considered the following amendment to
H.R. 4983, which was not adopted:
Ranking Member George Miller (D-CA) offered an
amendment that required the Commissioner of Education
Statistics to establish a formula for determining the
percentage of student borrowers who have completed their course
of study and who are in repayment or in an authorized deferment
period at three, five and 10 years after completion of a
program of study. The amendment failed by a vote of 13 to 21.
On July 23, 2014, the House of Representatives considered
H.R. 4983 under suspension of the rules. The bill was agreed to
by voice vote, sent to the Senate, and referred to the Senate
Committee on Health, Education, Labor, and Pensions.
On June 26, 2014, Rep. Brett Guthrie (R-KY) and Rep.
Richard Hudson (R-NC) introduced H.R. 4984, the Empowering
Students through Enhanced Financial Counseling Act. The bill
amended the loan counseling requirements under the Higher
Education Act and required counseling for Federal Pell Grant
recipients.
On July 10, 2014, the Committee considered H.R. 4984 in
legislative session and reported it favorably, as amended, to
the House of Representatives by voice vote. The Committee
considered and adopted the following amendment to H.R. 4984:
Reps. Brett Guthrie (R-KY) and Suzanne Bonamici
(D-OR) offered an amendment in the nature of a substitute that
removed the requirement that annual counseling for Pell Grant
recipients be tied to disbursement of the grant; required
additional information be disclosed to borrowers during annual
counseling and exit counseling sessions; required institutions
to provide annual counseling to borrowers receiving Parent PLUS
loans; required any funds used to carry out the act to come
from funds already appropriated to maintain the Financial
Awareness Counseling Tool; and made conforming and technical
changes. The amendment was adopted by voice vote.
The Committee further considered the following amendment to
H.R. 4984, which was not adopted:
Rep. Susan Davis (D-CA) offered an amendment to
modify the rule requiring for-profit colleges to receive at
least 10 percent of their revenue from sources other than the
U.S. Department of Education to remain eligible for federal
student aid to include all federal aid, including veterans'
educational benefits and some Workforce Investment Act funds,
in the 90 percent portion of the calculation and only private
funds in the 10 percent portion of the calculation. The
amendment was ruled non-germane. Ranking Member George Miller
(D-CA) appealed the ruling of the chair. Rep. Glenn Thompson
(R-PA) offered a motion to table the appeal of the ruling of
the chair, which was adopted by a vote of 20 to 13.
On July 24, 2014, the House of Representatives considered
H.R. 4984 and passed it, as amended, by a vote of 405-11. The
bill was sent to the Senate and referred to the Senate
Committee on Health, Education, Labor, and Pensions.
114TH CONGRESS
Hearings--First session
On February 4, 2015, the Committee held a hearing in
Washington, D.C., on ``Expanding Opportunity in America's
Schools and Workplaces.'' The purpose of the hearing was to
allow Committee members to learn about efforts made by state
leaders to strengthen education, to make sure those who
graduate are prepared to pursue a postsecondary education and
compete in the workforce, and promote efforts to spur job
creation. Testifying before the Committee were Dr. Michael
Amiridis, Provost and Executive Vice President for Academic
Affairs, University of South Carolina, Columbia, South
Carolina; Mr. Drew Greenblatt, President and CEO, Marlin Steel
Wire Products, Baltimore, Maryland; Dr. Lawrence Mishel, Ph.D.,
President, Economic Policy Institute, Washington, D.C.; and The
Honorable Mike Pence, Governor, State of Indiana, Indianapolis,
Indiana.
On March 17, 2015, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Strengthening
America's Higher Education System.'' The purpose of the hearing
was to explore policy proposals that align with the Committee's
four pillars for reauthorization of the HEA: (1) empowering
students and families to make informed decisions; (2)
simplifying and improving student aid; (3) promoting
innovation, access, and completion; and (4) ensuring strong
accountability and a limited federal role. Testifying before
the Subcommittee were Mr. Willis Goldsmith, Partner, Jones Day,
New York, New York who testified on behalf of the U.S. Chamber
of Commerce; Mr. Stan Soloway, President and CEO, Professional
Services Council, Arlington, Virginia; Ms. Angela Styles,
Partner, Crowell & Moring LLP, Washington, D.C.; and Ms. Karla
Walter, Associate Director, American Worker Project, Center for
American Progress, Washington, D.C.
On April 30, 2015, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Improving
College Access and Completion for Low-Income and First-
Generation Students.'' The purpose of the hearing was to
explore policy proposals and best practices to strengthen
programs to help disadvantaged students access and complete
higher education. Testifying before the Subcommittee were Dr.
Laura Perna, James S. Riepe Professor, Executive Director,
Alliance for Higher Education and Democracy, University of
Pennsylvania, Philadelphia, Pennsylvania; Dr. Charles J.
Alexander, Associate Vice Provost for Student Diversity,
Director, Academic Advancement Program, Associate Adjunct
Professor, University of California, Los Angeles, California;
Dr. Michelle Asha Cooper, President, Institute for Higher
Education Policy, Washington, D.C.; and Dr. Joe D. May,
Chancellor, Dallas County Community College District, Dallas,
Texas.
On September 10, 2015, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training held a hearing in Washington, D.C., on ``Preventing
and Responding to Sexual Assault on College Campuses.'' The
purpose of the hearing was to explore policy proposals and best
practices to help institutions address and respond to campus
sexual assault and violence. Testifying before the Subcommittee
were Ms. Dana Scaduto, General Counsel, Dickinson College,
Carlisle, Pennsylvania; Dr. Penny Rue, Vice President for
Campus Life, Wake Forest University, Winston-Salem, North
Carolina; Ms. Lisa M. Maatz, M.A., Vice President for
Government Relations, American Association of University Women,
Washington, D.C.; and Mr. Joseph Cohn, Legislative and Policy
Director, Foundation for Individual Rights in Education,
Philadelphia, Pennsylvania.
On November 18, 2015, the Committee on Education and the
Workforce Subcommittee on Higher Education and Workforce
Training, together with the House Committee on Oversight and
Government Reform Subcommittee on Government Operations held a
hearing in Washington, D.C., on ``Federal Student Aid:
Performance-Based Organization Review.'' The purpose of the
hearing was to review the Office of Federal Student Aid's (FSA)
responsibilities as a Performance-Based Organization (PBO),
evaluate the PBO's performance, and identify possible areas of
reform. Testifying before the subcommittees were Mr. James
Runcie, Chief Operating Officer, U.S. Department of Education,
Washington, D.C.; Ms. Melissa Emrey-Arras, Director, Education
Workforce, and Income Security, U.S. Government Accountability
Office, Washington, D.C.; The Honorable Kathleen Tighe,
Inspector General, U.S. Department of Education, Washington,
D.C.; Mr. Ben Miller, Senior Director, Postsecondary Education,
Center for American Progress, Washington, D.C.; and Mr. Justin
Draeger, President, National Association of Student Financial
Aid Administrators, Washington, D.C.
Legislative action--First session
On July 23, 2015, Higher Education and Workforce Training
Subcommittee Chairwoman Virginia Foxx along with Chairman John
Kline (R-MN), Ranking Member Robert C. Scott (D-VA), and Reps.
Luke Messer (R-IN), Gregorio Sablan (D-MP), Tim Walberg (R-MI),
Joe Heck (R-NV), Buddy Carter (R-GA), Elise Stefanik (R-NY),
Susan Davis (D-CA), Raul Grijalva (D-AZ), and Mark DeSaulnier
(D-CA) introduced H.R. 3178, the Strengthening Transparency in
Higher Education Act. The bill ensures straightforward and
useful information is easily accessible to students and parents
and improves coordination between federal agencies to publish
information about colleges and universities.
On July 23, 2015, Rep. Brett Guthrie (R-KY) along with
Chairman John Kline (R-MN), Ranking Member Robert C. Scott (D-
VA), and Reps. Rick Allen (R-GA), Suzanne Bonamici (D-OR),
Duncan Hunter (R-CA), Tim Walberg (R-MI), Joe Heck (R-NV), Luke
Messer (R-IN), Buddy Carter (R-GA), Elise Stefanik (R-NY),
Susan Davis (D-CA), Raul Grijalva (D-AZ), Gregorio Sablan (D-
MP), Mark Pocan (D-WI), Mark Takano (D-CA), Katherine Clark (D-
MA), Mark DeSaulnier (D-CA), and Richard Hudson (R-NC)
introduced H.R. 3179, the Empowering Students Through Enhanced
Financial Counseling Act. The bill promotes financial literacy
through enhanced counseling for all recipients of federal
financial aid.
On September 24, 2015, Reps. Mike Bishop (R-MI) and Mark
Pocan (D-WI) introduced H.R. 3594, the Higher Education
Extension Act of 2015. The bill extends the authorization of
the National Advisory Committee on Institutional Quality and
Integrity and the authority of institutions of higher education
to make loans to new borrowers under the federal Perkins loan
program through September 30, 2016.
On September 28, 2015, the House of Representatives passed
H.R. 3594 by a voice vote. The bill was sent to the Senate and
referred to the Senate Committee on Health, Education, Labor,
and Pensions. The Senate amended the bill to extend the
authorization of the federal Perkins loan program to September
30, 2017. The amendment was adopted by unanimous consent, and
the underlying legislation was subsequently passed in the
Senate on December 16, 2015, by voice vote.
On December 17, 2015, the House agreed to the Senate
amendment by unanimous consent. The Higher Education Extension
Act of 2015 was signed into law by the President on December
18, 2015.
Legislative action--Second session
On June 22, 2016, the Committee on Education and the
Workforce considered H.R. 3178 in legislative session and
reported it favorably, as amended, to the House of
Representatives by voice vote. The Committee considered and
adopted the following amendment to H.R. 3178:
Subcommittee Chairwoman Virginia Foxx (R-NC)
offered an amendment in the nature of a substitute to make
conforming and technical changes. The amendment was adopted by
voice vote.
On June 22, 2016, the Committee considered H.R. 3179 in
legislative session and reported it favorably, as amended, to
the House of Representatives by voice vote. The Committee
considered and adopted the following amendment to H.R. 3179:
Rep. Brett Guthrie (R-KY) offered an amendment in
the nature of a substitute to make conforming and technical
changes. The amendment was adopted by voice vote.
On June 20, 2016, Rep. Joe Heck (R-NV) along with Reps.
David ``Phil'' Roe (R-TN), Jared Polis (D-CO), and Mark Pocan
(D-WI) introduced H.R. 5528, the Simplifying the Application
for Student Aid Act. The bill ensures continued allowance for
earlier notification of federal student aid, leverages
technology to make the application for federal student aid more
accessible and easier to fill out, and provides more time for
aid administrators to verify and package student aid.
On June 22, 2016, the Committee considered H.R. 5528 in
legislative session and reported it favorably, as amended, to
the House of Representatives by voice vote. The Committee
considered and adopted the following amendment to H.R. 5528:
Rep. Joe Heck (R-NV) offered an amendment in the
nature of a substitute to make conforming and technical
changes. The amendment was adopted by voice vote.
On June 20, 2016, Rep. Joe Heck (R-NV) along with Reps.
Ruben Hinojosa (D-TX) and Raul Ruiz (D-CA) introduced H.R.
5529, the Accessing Higher Education Opportunities Act. The
bill expands the authorized uses of funds for Hispanic-Serving
Institutions (HSIs) so they may promote dual enrollment
opportunities and encourage Hispanic students to pursue
doctoral degree programs in the healthcare industry.
On June 22, 2016, the Committee considered H.R. 5529 in
legislative session and reported it favorably, as amended, to
the House of Representatives by voice vote. The Committee
considered and adopted the following amendment to H.R. 5529:
Rep. Joe Heck (R-NV) offered an amendment in the
nature of a substitute to make conforming and technical
changes. The amendment was adopted by voice vote.
On June 20, 2016, Reps. Alma Adams (D-NC) and Bradley Byrne
(R-AL) introduced H.R. 5530, the HBCU Capital Financing
Improvement Act. The bill improves the program by requiring the
advisory board to send an annual report to Congress regarding
the status of the HBCU Capital Financing Program. Additionally,
the bill renames the escrow account to ``bond insurance fund.''
Lastly, this bill allows for financial counseling to potential
eligible HBCUs to assist in their preparation to qualify, apply
for, and maintain a capital improvement loan.
On June 22, 2016, the Committee considered H.R. 5530 in
legislative session and reported it favorably, as amended, to
the House of Representatives by voice vote. The Committee
considered and adopted the following amendment to H.R. 5530:
Rep. Alma Adams (D-NC) offered an amendment in the
nature of a substitute to make conforming and technical
changes. The amendment was adopted by voice vote.
Summary
The HBCU Capital Financing Improvement Act makes needed
improvements to the HBCU Capital Financing Program. This
bipartisan legislation improves access to the program and
improves financial counseling offered by the program, while
strengthening the program's congressional oversight, to help
the program fulfills its intended purpose.
The bill ensures public HBCUs will have greater access to
the HBCU Capital Financing Program by requiring institutions to
pay into a ``bond insurance fund,'' rather than a pooled escrow
account as in current law, to better reflect the purpose of the
withheld funds.
The HBCU Capital Financing Improvement Act specifically
authorizes the Secretary to provide financial counseling to
eligible institutions to prepare them to qualify, apply for,
and maintain a capital improvement loan.
The bill requires the program's advisory board to provide
an annual report to Congress, giving an overview of all the
loans awarded by the program, the status and financial
condition of at least 10 institutions participating in the
program, and any administrative and legislative recommendations
they may have for improving the program.
Committee Views
Introduction
HBCUs play a unique and important role in helping African-
American students overcome documented\1\ barriers of access and
completion of postsecondary education. Due to many factors,
including the actions by some state and private actors,\2\ many
HBCUs have a poorer financial outlook than other institutions
of similar size and age. Presently, the cost of capital is a
roadblock that prevents many HBCUs, some of which have physical
plants over 150 years old,\3\ from making improvements to their
campuses. Just this year, a report documented the continuing
difficulty some HBCUs have had raising capital in the private
bond market.\4\
---------------------------------------------------------------------------
\1\See e.g., Sweatt v. Painter, 339 U.S. 629 (1950); McLaurin v.
Okla. St. Regents of Higher Educ., 339 U.S. 637 (1950); Richardson,
Jeanita W., and Harris J. John. ``Brown and Historically Black Colleges
and Universities (HBCUs): A Paradox of Desegregation Policy.'' The
Journal of Negro Education 73.3 (2004): 365-78.
\2\See e.g., Higher Education Act of 1965, 20 U.S.C. 1060 321
(2012) (``the current state of Black colleges and universities is
partly attributable to the discriminatory action of the States and the
Federal Government . . .''); Dougal, C, Gao, P., Mayew, W. J., &
Parsons, C. A. (2015, August). What's in a (school) name? Racial
discrimination in higher education bond markets. Retrieved from http://
w4.stern.nyu.edu/finance/docs/pdfs/Seminars/1503w-parsons.pdf.
\3\The first HBCUs, Cheney University and Lincoln University, were
founded in 1837 and 1854 respectively.
\4\Dougal, supra note 2, at 3.
---------------------------------------------------------------------------
Recognizing these challenges, the HBCU Capital Financing
Program was created in the Higher Education Amendments of 1992
to help fund capital projects at a lower cost to these
institutions. The HBCU Capital Financing Program acts as a loan
guarantee program, ensuring the payment of principal and
interest on bonds by using funds from the U.S. Department of
the Treasury to ultimately cover the cost. The program allows
institutions to finance, or refinance, the repair, renovation,
and construction of capital projects. Funded projects can range
from the construction of classroom facilities to the repair of
sewer and drainage systems. The program also helps ensure
students at HBCUs receive their education in safe, up-to-date
facilities with access to the modern technology and equipment
necessary to provide a 21st century education.
Promoting access
The HBCU Capital Financing Program provides support to
some, but not all, institutions in need of additional
assistance to finance capital projects. In 2006, 14 years after
the HBCU Capital Financing Program was authorized, only 14
schools, or slightly more than 10 percent of HBCUs, were
participating in the program. Currently, 43 HBCUs are receiving
loans, but fewer than half of all HBCUs have ever originated a
loan with the program.\5\
---------------------------------------------------------------------------
\5\ http://gao.gov/products/GAO-07-64.
---------------------------------------------------------------------------
The Committee recognizes that while public and private
institutions desire to utilize the program, many public HBCUs
have experienced difficulty accessing program funds due to
statutory requirements. Since the program is based on bonds,
participating schools are required to place 5 percent of their
loans into a pooled escrow account that helps cover payments to
bondholders should any institution default on its loan
obligation. This account acts as bond insurance to ensure the
payments of principal and interest on the bonds are covered and
bondholders are made whole.\6\ Public HBCUs have been denied
participation in the program due to states' concerns over the
requirement that 5 percent of the loan funds, which the states
view as state funds, must go into the escrow account. Today,
according to the U.S. Department of Education, the escrow
account is at $50 million, with only one school drawing down
from the account.
---------------------------------------------------------------------------
\6\Authority is given to the Secretary to designate a private, for-
profit organization to serve as the designated bonding authority (DBA).
The DBA is included in the program to serve as the issuer of qualified
bonds. The proceeds of these bonds are used to issue loans to
participating HBCUs. To ensure payments on the issued bonds, the DBA
uses the loan payments from the participating HBCUs. If a HBCU is
unable to make a payment, the DBA can draw from the escrow account to
cover the payment on the bond.
---------------------------------------------------------------------------
To better reflect the intention and purpose of the escrow
account, the HBCU Capital Financing Improvement Act renames
this account a ``bond insurance fund.'' This small change will
help more public HBCUs access the program by easing the
concerns of some state governments who are unsure of the
account's purpose. In addition, this re-classification will
reinforce with participating institutions that their 5 percent
contributions are not a regulatory burden but a necessary
protection for bondholders who participate in the program. This
is a good first step to reform the insurance requirements of
the program.
Improving financial counseling
The sizable investments made by the HBCU Capital Financing
Program require participating schools have a requisite level of
financial skill to handle the funds. The current outstanding
balance for the HBCU Capital Financing Program is about $1.11
billion, with 43 institutions currently receiving loan amounts
ranging from $7.5 million to $165 million.\7\ Since 1996, 77
bonds have been issued, resulting in about $310 million in loan
proceeds for public HBCUs and $1.25 billion in loan proceeds
for private HBCUs.\8\
---------------------------------------------------------------------------
\7\ http://www2.ed.gov/programs/hbcucapfinance/awards.html.
\8\Id.
---------------------------------------------------------------------------
Given the magnitude of the program and loan amounts, it is
important for current and future program participants to
receive thorough financial counseling to better ensure a
successful experience with the program. Financial counseling
can help a school find its financial footing, establish a plan
to make timely payments to the program, or improve the overall
financial health of the institution. This counseling will lead
to more institutions successfully making their payments on time
and increased financial stability.
The HBCU Capital Financing Improvement Act specifically
authorizes the Secretary to provide financial counseling to
HBCUs to prepare the institutions to qualify, apply for, and
maintain a capital improvement loan. Thorough financial
counseling can help guide institutional leaders as they
critically think about difficult questions, such as the
appropriate loan amount needed to help meet the institutions
needs while remaining in good financial standing to make the
monthly payments on time.
The Committee hopes the additional counseling will involve
helping institutions in the maintenance and growth of endowment
funds. Many non-HBCUs are able to sustain long campaigns of
capital improvements without fear of financial strain due to
large pools of endowed funds that have grown with the
institution over time. HBCU endowments are on average
significantly lower than other institutions. Based on data for
2014, the endowments of the Top 10 HBCUs combined would make
them collectively only the 54th largest university
endowment.\9\
---------------------------------------------------------------------------
\9\Using statistics collected by the National Association of
College and University Business Officers (NACUBO) in 2014, the ten
largest endowments at HBCUs totaled approximately $1.729 billion
combined. As one university, they would place between #53 UCLA ($1.732
billion) and #54 Boston University ($1.616 billion). http://
www.nacubo.org/Documents/EndowmentFiles/
2014_Endowment_Market_Values_Revised2.27.15.
pdf.
---------------------------------------------------------------------------
Financial counseling that includes some aspects germane to
endowments may help improve the financial outlook of
institutions. Helping these institutions become more self-
sustaining will ideally lead to a decrease in the loan amounts
needed for capital projects and decrease the overall financial
burden on the schools.
Strengthening congressional oversight
Along with the creation of the HBCU Capital Financing
Program, current law includes a board to advise the Secretary
on the capital needs of HBCUs, how the program can meet those
needs, and ways the program can be improved. This advisory
board consists of presidents from both private and public
HBCUs, as well as representatives from the United Negro College
Fund, National Association for Equal Opportunity in Higher
Education, Thurgood Marshall College Fund, and the executive
director of the White House Initiative on HBCUs. This advisory
board is appointed by the Secretary, with the Secretary or an
appointed designee also serving on the board.
The advisory board is required by law to meet at least
twice yearly and was tasked with providing Congress a report,
no later than six months after the 2008 enactment of the Higher
Education Opportunity Act (HEOA), on the fiscal status and
financial condition of at least 10 HBCUs participating in the
program. The report was also to include any administrative or
legislative recommendations for addressing construction
financing issues. According to a 2006 study by the U.S.
Government Accountability Office (GAO), the advisory board had
only convened a total of ``three times in the last 12 years,''
and GAO recommended the Secretary comply with the law by
regularly convening and consulting with the advisory board.\10\
Due to this finding, the HEOA mandated the Secretary submit a
report to Congress on the progress of implementing the
recommendations produced in the study. While more meetings have
taken place since the findings of the study, the advisory board
still appears to be out of compliance with the statute, most
recently meeting in spring 2015.
---------------------------------------------------------------------------
\10\http://gao.gov/products/GAO-07-64.
---------------------------------------------------------------------------
The mere scale of the HBCU Capital Financing Program
suggests it is important for Congress to remain apprised of the
usefulness and current standing of the program. Given this, the
HBCU Capital Financing Improvement Act requires the advisory
board to provide an annual report to Congress giving an
overview of all the loans awarded, the fiscal status and
financial condition of at least 10 of the institutions
participating in the program, and any administrative and
legislative recommendations for improving construction
financing issues. The Committee expects this requirement will
improve compliance with the advisory board meetings requirement
in the statute.
While the advisory board will only be required to provide
the fiscal status and financial condition of at least 10
institutions in each report, the Committee expects the advisory
board will provide this information for all participating
institutions over the span of the annual reports, with updates
to the status of the institutions as needed. The Committee also
expects the advisory board report will include, at least, the
following as part of the overview of loans: the most recent
outstanding balance of the program; the current and remaining
lengths of all loans; the funding level of the bond insurance
fund; the loan amounts for both public and private HBCUs; and
any specific details about each loan, such as whether the loan
has a fixed or variable interest rate, the interest rate
amount, and repayment status.
Requiring the advisory board to provide an annual report
will help ensure the board convenes and discusses the issues
that are most concerning to HBCUs. Also, more regular and
consistent communication with the board will help keep Congress
updated on the health of the program and the needs of the
participating HBCUs.
Conclusion
With greater access, financial counseling, and oversight,
the Committee believes H.R. 5530 will strengthen the HBCU
Capital Financing Program. We expect with these changes,
institutions will be better able to utilize the bond proceeds
to improve HBCU campuses. By allowing for low-cost capital to
flow to HBCUs, the Committee hopes to improve the educational
experience for more students at many of our nations most
historic campuses.
Section-by-Section Analysis
Section 1. Short title
States the short title is the HBCU Capital Financing
Improvement Act.
Section 2. Bond insurance
Amends Section 343 of the Higher Education Act of 1965 by
striking the term ``escrow account'' where it appears and
replacing it with the term ``bond insurance fund.'' Other minor
technical changes are made as well.
Section 3. Strengthening technical assistance
Gives the Secretary the authority to provide financial
counseling as well as technical assistance to institutions to
apply, qualify for, and maintain capital improvement loans.
Section 4. HBCU capital financing advisory board
Amends section 347 to require the advisory board to report
annually to Congress and provide an overview of all the loans
made and any administrative or legislative recommendations to
improve the program.
Explanation of Amendments
The amendments, including the amendment in the nature of a
substitute, are explained in the body of this report.
Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1 requires a
description of the application of this bill to the legislative
branch. H.R. 5530, the HBCU Capital Financing Improvement Act,
increases access to, and strengthens congressional oversight
of, the Historically Black College and University Capital
Financing Program.
Unfunded Mandate Statement
Section 423 of the Congressional Budget and Impoundment
Control Act (as amended by Section 101(a)(2) of the Unfunded
Mandates Reform Act, P.L. 104-4) requires a statement of
whether the provisions of the reported bill include unfunded
mandates. This issue is addressed in the CBO letter.
Earmark Statement
H.R. 5530 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of House Rule XXI.
Statement of General Performance Goals and Objectives
In accordance with clause (3)(c) of House Rule XIII, the
goals of H.R. 5530 are to increase access to, and strengthen
congressional oversight of, the Historically Black College and
University Capital Financing Program.
Duplication of Federal Programs
No provision of H.R. 5530 establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
Disclosure of Directed Rule Makings
The committee estimates that enacting H.R. 5530 does not
specifically direct the completion of any specific rule makings
within the meaning of 5 U.S.C. 551.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII 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.
New Budget Authority and CBO Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause 3(c)(3) of rule XIII of the Rules of
the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the committee has received
the following estimate for H.R. 5530 from the Director of the
Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 5, 2016.
Hon. John Kline,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 5530, the HBCU
Capital Financing Improvement Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Justin
Humphrey.
Sincerely,
Keith Hall.
Enclosure.
H.R. 5530--HBCU Capital Financing Improvement Act
H.R. 5530 would amend the reporting requirements for the
Historically Black College and University (HBCU) Advisory
Board, which advises the Department of Education about the HBCU
Capital Financing Program. It also would allow the department
to provide financial counseling to HBCUs to better prepare them
to qualify for that program.
Based on current funding levels for administering this
program ($334,000 for 2016), CBO estimates that implementing
H.R. 5530 would have a negligible additional effect on
discretionary spending. Enacting the bill would not affect
direct spending or revenues; therefore, pay-as-you-go
procedures do not apply.
CBO estimates that enacting H.R. 5530 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2027.
H.R. 5530 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contact for this estimate is Justin Humphrey.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 5530.
However, clause 3(d)(2)(B) 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 402 of the Congressional Budget Act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) 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 (new matter is
printed in italic and existing law in which no change is
proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) 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, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
HIGHER EDUCATION ACT OF 1965
* * * * * * *
TITLE III--INSTITUTIONAL AID
* * * * * * *
PART D--HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING
* * * * * * *
SEC. 343. FEDERAL INSURANCE FOR BONDS.
(a) General Rule.--Subject to the limitations in section 344,
the Secretary is authorized to enter into insurance agreements
to provide financial insurance to guarantee the full payment of
principal and interest on qualified bonds upon the conditions
set forth in subsections (b), (c) and (d).
(b) Responsibilities of the Designated Bonding Authority.--
The Secretary may not enter into an insurance agreement
described in subsection (a) unless the Secretary designates a
qualified bonding authority in accordance with sections 345(1)
and 346 and the designated bonding authority agrees in such
agreement to--
(1) use the proceeds of the qualified bonds, less
costs of issuance not to exceed 2 percent of the
principal amount thereof, to make loans to eligible
institutions or for deposit into [an] a [escrow
account] bond insurance fund for repayment of the
bonds;
(2) provide in each loan agreement with respect to a
loan that not less than 95 percent of the proceeds of
the loan will be used--
(A) to finance the repair, renovation, and,
in exceptional cases, construction or
acquisition, of a capital project; or
(B) to refinance an obligation the proceeds
of which were used to finance the repair,
renovation, and, in exceptional cases,
construction or acquisition, of a capital
project;
(3)(A) charge such interest on loans, and provide for
such a schedule of repayments of loans, as will, upon
the timely repayment of the loans, provide adequate and
timely funds for the payment of principal and interest
on the bonds; and
(B) require that any payment on a loan expected to be
necessary to make a payment of principal and interest
on the bonds be due not less than 60 days prior to the
date of the payment on the bonds for which such loan
payment is expected to be needed;
(4) prior to the making of any loan, provide for a
credit review of the institution receiving the loan and
assure the Secretary that, on the basis of such credit
review, it is reasonable to anticipate that the
institution receiving the loan will be able to repay
the loan in a timely manner pursuant to the terms
thereof;
(5) provide in each loan agreement with respect to a
loan that, if a delinquency on such loan results in a
funding under the insurance agreement, the institution
obligated on such loan shall repay the Secretary, upon
terms to be determined by the Secretary, for such
funding;
(6) assign any loans to the Secretary, upon the
demand of the Secretary, if a delinquency on such loan
has required a funding under the insurance agreement;
(7) in the event of a delinquency on a loan, engage
in such collection efforts as the Secretary shall
require for a period of not less than 45 days prior to
requesting a funding under the insurance agreement;
(8) establish [an] a [escrow account] bond insurance
fund--
(A) into which each eligible institution
shall deposit 5 percent of the proceeds of any
loan made under this part, with each eligible
institution required to maintain in the [escrow
account] bond insurance fund an amount equal to
5 percent of the outstanding principal of all
loans made to such institution under this part;
and
(B) the balance of which--
(i) shall be available to the
Secretary to pay principal and interest
on the bonds in the event of
delinquency in loan repayment; and
(ii) shall be used to return to an
eligible institution an amount equal to
any remaining portion of such
institution's 5 percent deposit of loan
proceeds within 120 days following
scheduled repayment of such
institution's loan;
(9) provide in each loan agreement with respect to a
loan that, if a delinquency on such loan results in
amounts being withdrawn from the [escrow account] bond
insurance fund to pay principal and interest on bonds,
subsequent payments on such loan shall be available to
replenish such [escrow account] bond insurance fund;
(10) comply with the limitations set forth in section
344 of this part;
(11) make loans only to eligible institutions under
this part in accordance with conditions prescribed by
the Secretary to ensure that loans are fairly allocated
among as many eligible institutions as possible,
consistent with making loans of amounts that will
permit capital projects of sufficient size and scope to
significantly contribute to the educational program of
the eligible institutions; and
(12) limit loan collateralization, with respect to
any loan made under this part, to 100 percent of the
loan amount, except as otherwise required by the
Secretary.
(c) Additional Agreement Provisions.--Any insurance agreement
described in subsection (a) of this section shall provide as
follows:
(1) The payment of principal and interest on bonds
shall be insured by the Secretary until such time as
such bonds have been retired or canceled.
(2) The Federal liability for delinquencies and
default for bonds guaranteed under this part shall only
become effective upon the exhaustion of all the funds
held in the [escrow account] bond insurance fund
described in subsection (b)(8).
(3) The Secretary shall create a letter of credit
authorizing the Department of the Treasury to disburse
funds to the designated bonding authority or its
assignee.
(4) The letter of credit shall be drawn upon in the
amount determined by paragraph (5) of this subsection
upon the certification of the designated bonding
authority to the Secretary or the Secretary's designee
that there is a delinquency on 1 or more loans and
there are insufficient funds available from loan
repayments and the [escrow account] bond insurance fund
to make a scheduled payment of principal and interest
on the bonds.
(5) Upon receipt by the Secretary or the Secretary's
designee of the certification described in paragraph
(4) of this subsection, the designated bonding
authority may draw a funding under the letter of credit
in an amount equal to--
(A) the amount required to make the next
scheduled payment of principal and interest on
the bonds, less
(B) the amount available to the designated
bonding authority from loan repayments and the
[escrow account] bond insurance fund.
(6) All funds provided under the letter of credit
shall be paid to the designated bonding authority
within 2 business days following receipt of the
certification described in paragraph (4).
(d) Full Faith and Credit Provisions.--Subject to section
343(c)(1) the full faith and credit of the United States is
pledged to the payment of all funds which may be required to be
paid under the provisions of this section.
(e) Sale of Qualified Bonds.--Notwithstanding any other
provision of law, a qualified bond guaranteed under this part
may be sold to any party that offers terms that the Secretary
determines are in the best interest of the eligible
institution.
* * * * * * *
SEC. 345. AUTHORITY OF THE SECRETARY.
In the performance of, and with respect to, the functions
vested in the Secretary by this part, the Secretary--
(1) shall, within 120 days of the date of enactment
of the Higher Education Opportunity Act, publish in the
Federal Register a notice and request for proposals for
any private for-profit organization or entity wishing
to serve as the designated bonding authority under this
part, which notice shall--
(A) specify the time and manner for
submission of proposals; and
(B) specify any information, qualifications,
criteria, or standards the Secretary determines
to be necessary to evaluate the financial
capacity and administrative capability of any
applicant to carry out the responsibilities of
the designated bonding authority under this
part;
(2) shall ensure that--
(A) the selection process for the designated
bonding authority is conducted on a competitive
basis; and
(B) the evaluation and selection process is
transparent;
(3) shall--
(A) review the performance of the designated
bonding authority after the third year of the
insurance agreement; and
(B) following the review described in
subparagraph (A), implement a revised
competitive selection process, if determined
necessary by the Secretary in consultation with
the Advisory Board established pursuant to
section 347;
(4) shall require that the first loans for capital
projects authorized under section 343 be made no later
than March 31, 1994;
(5) may 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 part without regard to the amount in controversy,
and any action instituted under this part without
regard to the amount in controversy, and any action
instituted under this section by or against the
Secretary shall survive notwithstanding any change in
the person occupying the office of the Secretary or any
vacancy in such office;
(6)(A) may foreclose on any property and bid for and
purchase at any foreclosure, or any other sale, any
property in connection with which the Secretary has
been assigned a loan pursuant to this part; and
(B) in the event of such an acquisition,
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, except that--
(i) such action shall not preclude any other
action by the Secretary to recover any
deficiency in the amount of a loan assigned to
the Secretary; and
(ii) 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;
(7) may sell, exchange, or lease real or personal
property and securities or obligations;
(8) may include in any contract such other covenants,
conditions, or provisions necessary to ensure that the
purposes of this part will be achieved;
[(9) may, directly or by grant or contract, provide
technical assistance to eligible institutions to
prepare the institutions to qualify, apply for, and
maintain a capital improvement loan, including a loan
under this part; and]
(9) may, directly or by grant or contract, provide
financial counseling and technical assistance to
eligible institutions to prepare the institutions to
qualify, apply for, and maintain a capital improvement
loan, including a loan under this part; and
(10) not later than 120 days after the date of
enactment of the Higher Education Opportunity Act,
shall submit to the authorizing committees a report on
the progress of the Department in implementing the
recommendations made by the Government Accountability
Office in October 2006 for improving the Historically
Black College and Universities Capital Financing
Program.
SEC. 347. HBCU CAPITAL FINANCING ADVISORY BOARD.
(a) Establishment and Purpose.--There is established within
the Department of Education, the Historically Black College and
Universities Capital Financing Advisory Board (hereinafter in
this part referred to as the ``Advisory Board'') which shall
provide advice and counsel to the Secretary and the designated
bonding authority as to the most effective and efficient means
of implementing construction financing on African American
college campuses, and advise the Congress of the United States
regarding the progress made in implementing this part. The
Advisory Board shall meet with the Secretary at least twice
each year to advise him as to the capital needs of historically
Black colleges and universities, how those needs can be met
through the program authorized by this part, and what
additional steps might be taken to improve the operation and
implementation of the construction financing program.
(b) Board Membership.--
(1) Composition.--The Advisory Board shall be
appointed by the Secretary and shall be composed of 11
members as follows:
(A) The Secretary or the Secretary's
designee.
(B) Three members who are presidents of
private historically Black colleges or
universities.
(C) Three members who are presidents of
public historically Black colleges or
universities.
(D) The president of the United Negro College
Fund, Inc., or the president's designee.
(E) The president of the National Association
for Equal Opportunity in Higher Education, or
the designee of the Association.
(F) The executive director of the White House
Initiative on historically Black colleges and
universities.
(G) The president of the Thurgood Marshall
College Fund, or the designee of the president.
(2) Terms.--The term of office of each member
appointed under paragraphs (1)(B) and (1)(C) shall be 3
years, except that--
(A) of the members first appointed pursuant
to paragraphs (1)(B) and (1)(C), 2 shall be
appointed for terms of 1 year, and 3 shall be
appointed for terms of 2 years;
(B) members appointed to fill a vacancy
occurring before the expiration of a term of a
member shall be appointed to serve the
remainder of that term; and
(C) a member may continue to serve after the
expiration of a term until a successor is
appointed.
(c) Additional Recommendations from Advisory Board.--
(1) In general.--In addition to the responsibilities
of the Advisory Board described in subsection (a), the
Advisory Board shall advise the Secretary and the
authorizing committees regarding--
(A) the fiscal status and strategic financial
condition of not less than ten historically
Black colleges and universities that have--
(i) obtained construction financing
through the program under this part and
seek additional financing or
refinancing under such program; or
(ii) applied for construction
financing through the program under
this part but have not received
financing under such program; and
(B) the feasibility of reducing borrowing
costs associated with the program under this
part, including reducing interest rates.
[(2) Report.--Not later than six months after the
date of enactment of theHigher Education Opportunity
Act, the Advisory Board shall prepare and submit a
report to the authorizing committees regarding the
historically Black colleges and universities described
in paragraph (1)(A) that includes administrative and
legislative recommendations for addressing the issues
related to construction financing facing such
historically Black colleges and universities.]
(2) Report.--On an annual basis, the Advisory Board
shall prepare and submit to the authorizing committees
a report on the status of the historically Black
colleges and universities described in paragraph
(1)(A). That report shall also include--
(A) an overview of all loans in the capital
financing program, including the most recent
loans awarded in the fiscal year in which the
report is submitted; and
(B) administrative and legislative
recommendations, as needed, for addressing the
issues related to construction financing facing
historically Black colleges and universities.
* * * * * * *
[all]