Full text of Education Amendments of 1972

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86

STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

SEC. 3. (a) The Act entitled ''An Act to establisli the Xationnl
Bureau of Standards'", approved March 3. 1901 (31 Stat. 1449), as
amended, is further amended by adding the following section:
"SEC. 18. Appropriations to carry out the provisions of this Ad
luay remain available for obligation and exp»enditure for such period
or periods as may be specified in the Acts making such appropriations."
(b) Such Act is further amended by striking the pei'iod at the
end of paragraph (19) of section 2, by inserting a comma m lien
thereof and by adding the following: "and including the use of
National Bureau of Standards scientific or technical personnel foipart-time or intermittent teaching and training acti^'ities at educational institutions of liigher If'arning as part of and incidental to their
official duties and withont additional compensation other than that
provided by law."*
(c) Such Act is further amended by revising the hrst sentence of
section 3 to read as follows: ''The Bureau is authorized to exercise its
functions for the Government of the United States and foi- internati(mal organizations of which the Ignited States is a member; for
governments of friendly countries; for any State or municipal government within the United States; or for any scientific society, educatiotial
institution, firm, corporation, or individual within the ITnited States
or friendly countries engaged in manufacturing or other pursuits
requiring the use of standards or standard measuring instruments:
Provided., That the exercise of these functions for international organizations, governments of friendly countries and scientific societies,
educational institutions, firms, corporations, or individuals therein
shall be in coordination with other agencies of the Ignited States
(xovernment. in ])articnlar the Department of State in i-espect to
foreign entities.'"
(d) Such Act is further amended by deleting in section 14 the fignre
••$4(>,0()0"" and snbstitnting in lien tlieieof tlie fignre "$75,000"".
(e) Such Act is further amended by revising sexjtion 15(1)) to i-ead
as follows:
"(b) the care, maintenance, protection, repair, and alteration
of Bureau buildings and other plant facilities,3. eq
equipment, and
property."
(f) T h a t portion of the Act of April 29, 1926 (44 Stat. 35«: 40
IJ.S.C. 14a) which relates to the National Bureau of Standards is
hereby repealed.
Approved June 22, 1972.

235

82 Stat. 35.
15 u s e 271 et
seg.
Teaching authority.
64 Stat. 371.
15 u s e 272.

International
organizations,
service.
15 u s e 273.

72 Stat. 1711.
15 u s e 278d.
15 u s e 278e.

Repeal.

Public Law 92-318
AN ACT
To amend the Higher Education Act of 1965, the Vocational Education Act of
1963, the General Education Provisions Act (creating a National Foundation
for Postsecondary Education and a National Institute of Education), the
p:iementary and Secondary Education Act of 1965, Public Law 874, Eighty-first
Congress, and related Acts, and for other i>uri>oses.

June 23, 1972
[S. 659]

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That this Act may be Am^^dmation
ents of
cited as the "Education Amendments of 1972".
1972.

236

PUBLIC LAW 92-318-JUNE 23, 1972
GENERAL

[86 STAT.

PROVISIONS

SEC. 2. (a) As used in this Act—
(1) the temi "Secretary" means the Secretary of Health, Education, and Welfare; and
"Commissioner."
(2) the term "Commissioner" means the Commissioner of
Education ;
iniless the context requires another meaning.
(b) Unless otherwise specified, the redesignation of a section, subsection, or other'designation by any amendment in this Act shall include
the redesignation of any reference to such section, subsection, or other
designation in any Act or regulation, however styled.
Effective
(c)(1) Unlcss othcrwisc specified, each provision of this Act and
**°***'
each amendment made by this Act shall be effective after June 30,1972,
and with respect to appropriations for the fiscal year ending June 30,
1973, and succeeding fiscal years.
(2) Unless otherwise specified, in any case where an amendment
made by this Act is to become effective after a date set herein, it shall
be effective with the beginning of the day which immediately follows
the date after which such amendment is effective.
(3) In any case where the effective date for an amendment made by
this Act is expressly stated to be effective after June 30, 1971, such
amendment shall be deemed to have been enacted on July 1,1971.
"Secretary,"

TITLE I—HIGHER EDUCATION
, J

PART A—COMMUNITY SERVICE AND CONTINUING EDUCATION
PROGRAMS
» ,,.- ^
EXTENSION OF AUTHORIZATION OF APPROPRIATIONS

82lta!ri03s!^'
20 use 1001.

Effective date.

S^^- 1^1- (*) .Section 101 of the Higher Education Act of 1965 is
amended by striking out all that follows "authorized to be appropriated" and inserting in lieu thereof the following: "$10,000,000 for
the fiscal year ending June 30,1972, $30,000,000 for the fiscal year ending J u n e 30,1973, $40,000,000 for the fiscal year ending June 30,1974,
and $50,000,000 for the fiscal year ending June 30, 1975.".
(jj^ The amendment made by subsection (a) shall be effective after
J u n e 30,1971.
SPECIAL PROGRAMS AND PROJECTS RELATING TO NATIONAL AND REGIONAL
PROBLEMS

101? "^^ ^°°^"
20 use 1005.

SEC. 102. ( a ) ( 1 ) Sections 106, 107, 108, 109, 110, and 111 of the
Higher Education Act of 1965, and all references thereto, are redesignated as sections 107, 108, 109, 110, 111, and 112, respectively. Title I
Qf gy(.]^ ^f,^ jg amended by inserting after section 105 the following
new section:

86 STAT. ]

237

PUBLIC LAW 92-318-JUNE 23, 1972

" S P E C I A L PROGRAMS A N D PROJECTS RELATING TO NATIONAL AND REGIONAL
PROBLEMS

"SEC. 106. (a) The Commissioner is authorized to reserve from the
sums appropriated pursuant to section 101 for any fiscal year an amount
not in excess of 10 per centum of the sums so appropriated for that
fiscal year for grants pursuant to subsection ( b ) .
" ( b ) (1) From the sums reserved under subsection (a-), the Commissioner is authorized to make grants to, and contracts with, institutions
of higher education (and combinations thereof) to assist them in carrying out special programs and projects, consistent with the purposes of
this title, which are designed to seek solutions to national and regional
problems relating to technological and social changes and environmental pollution.
"(2) No grant or contract under this section shall exceed 90 per
centum of the cost of the program or project for which application is
made.".
(2) Section 103(a) of such title I is amended by striking out that
part of the language which precedes ", the Commissioner" and by
inserting in lieu thereof "From the sums appropriated pursuant to
section 101 for any fiscal year which are not reserved under section
106(a)".
(b) The amendments made by the second sentence of paragraph (1)
of subsection (a) and by paragraph (2) of such subsection shall be
effective after June 30, 1972, and then—
(1) only with respect to appropriations for title I of the Higher
Education Act of 1965 for fiscal years beginning after June 30,
1972; and
(2) only to the extent that the allotment to any State under
section 103(a) of such title is not less for any fiscal year than
the allotment to that State under such section 103(a) for the
fiscal year ending June 30, 1972.

Ante, p. 236.

Limitation.

79 Stat. 1219.
20 u s e 1003.

Effective date
provisions.

20 u s e 1001.

EVALUATION O F ACTIVITIES

SEC. 103. (a) During the period beginning with the date of enact- vifo^y°coi,fc1i,
ment of this Act and ending July 1, 1974, the National Advisory authority.
Council on Extension and Continuing Education, hereafter in this
section referred to as the National Advisory Council, shall conduct
a review of the programs and projects carried out with assistance
under title I of the Higher Education Act of 1965 prior to July 1,1973.
Such review shall include an evaluation of specific programs and
projects with a view toward ascertaining which of them show, or have
, ,.hato'; •
shown, (1) the greatest promise in achieving the purposes of such title,
" «;ri
and (2) the greatest return for the resources devoted to them. Such
review shall be carried out by direct evaluations by the National
Advisory Council, by the use of other agencies, institutions, and
groups, and by the use of independent appraisal units.
Report to con(b) Not later than March 31,1973, and March 31,1975, the National gressional
comAdvisory Council shall submit to the Committee on Labor and Public mutVes'.
Welfare of the Senate and the Committee on Education and Labor
of the House of Representatives a report on the review conducted
IDursuant to subsection ( a ) . Such report shall include (1) an evaluation of the program authorized by title I of the Higher Education
Act of 1965 and of specific programs and projects assisted through
l^ayments under such title, (2) a description and an analysis of programs and projects which are determined to be most successful, and
(3) recommendations with respect to the means by which the most
successful programs and projects can be expanded and replicated.

238
Post,

PUBLIC LAW 92-318-JUNE 23, 1972
p . 326.

[86 STAT.

(c) Sums appropriated pursuant to section 401 (c) of the General
Education Provisions Act for the purposes of section 402 of such Act
shall be available to carry out the purposes of this section.
PART B—COLLEGE LIBRARY PROGRAMS
AUTHORIZATION OF APPROPRIATIONS

79 Stat. 1224;
82 Stat. 1036.
20 u s e 1021.
20 u s e 1031.

79 Stat. 1224.
20 u s e 1021.

SEC. 111. (a) (1) Section 201 of the Higher Education Act of 1965 is
amended by striking out "and" after "1970," and inserting in lieu
thereof "and $18,000,000 for the fiscal year ending June 30, 1972,".
(2) Section 221 of such Act is amended by striking out "and" after
"1970," and inserting in lieu thereof "and $12,000,000 for the fiscal
year ending June 30,1972,".
(b) (1) Title I I of the Higher Education Act of 1965 is amended by
striking out " P A R T A—COLLEGE LIBRARY RESOURCES" and by striking

out all of section 201 and inserting in lieu thereof the following:
a COLLEGE LIBRARY PROGRAMS; T R A I N I N G ;

Infra.

Post, p. 239.
Appropriations.

"Library resources."

"Librarianship."

RESEARCH

"SEC. 201. (a) The Commissioner shall carry out a program of financial assistance—
"(1) to assist and encourage institutions of higher education
in the acquisition of library resources, including law library
resources, in accordance with part A ; and
"(2) to assist with and encourage research and training persons
in librarianship, including law librarianship, in accordance with
part B .
" (b) F o r the purpose of making grants under parts A and B, there
are authorized to be appropriated $75,000,000 for the fiscal year endingJune 30, 1973, $85,000,000 for the fiscal year ending June 30, 1974.
and $100,000,000 for the fiscal year ending June 30,1975. Of the sums
appropriated pursuant to the preceding sentence for any fiscal year.
70 j)er centum shall be used for the purposes of part A and 30 per
centum shall be used for the purposes of part B , except that the
amount available for the purposes of part B for any fiscal year shall
not be less than the amount appropriated for such purposes for the
fiscal year ending June 30,1972.
"(c) For the purposes of this title—
" (1) the term 'library resources' means books, periodicals, documents, magnetic tapes, phonograph records, audiovisual materials,
and other related library materials, including necessary binding;
and
" (2) the term 'librarianship' means the principles and practices
of the library and information sciences, including the acquisition,
organization, storage, retrieval and dissemination of information,
and reference and research use of library and information
resources.
" P A R T A—^COLLEGE LIBRARY RESOURCES".

B a s i c grants.
20 u s e 1022.

(2) (A) The first sentence of section 202 of such title I I is amended
to read as follows: "From the amount available for grants under this
part pursuant to section 201 for any fiscal year, the Commissioner shall
make basic grants for the purposes set forth in section 201(a) (1) to
institutions of higher educa/tion, to combinations of such institutions,
to new institutions of higher education in the fiscal year preceding
the fiscal year in which students are to be enrolled (in accordance with
criteria prescribed by regulation), and other public and private non-

86

STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

profit library institutions Avhose primary function is to provide library
and information services to institutions of higher education on a
formal, cooperative basis.".
(B) Section 203 of such title I I is amended by striking out that part
of the first sentence which precedes "supplemental grants" and inserting in lieu thereof the following: "From that part of the sums
appropriated pursuant to section 201 for the purposes of this part for
any fiscal year which remains after making basic grants pursuant to
section 202, and which is not reserved for the purposes of section 204,
the Commissioner shall make", and by striking out "section 201" where
it appears after "set forth in" and inserting in lieu thereof "section
201(a)(1)".
(C) (i) Section 204(a) (1) of such title I I is amended to read as
follows:
"(1) From the sums appropriated pursuant to section 201 for the
purposes of this part for any fiscal year, the Commissioner is authorized
to reserve not to exceed 25 per centum thereof for the purposes of this
section.".
(ii) Section 204(a) (2) of such title I I is amended by striking out
that part of the first sentence which precedes "may be used to make"
and inserting in lieu thereof "Sums reserved pursuant to paragraph
(iii) Section 204(a) (2) of such title I I is further amended by striking out "and" immediately preceding " ( C ) " , and inserting before the
period at the end of the first sentence the following:", and (D) to other
public and private nonprofit library institutions which provide library
and information services to institutions of higher education on a formal, cooperative basis".
(iv) Section 204(a) of such title I I is amended by striking out paragraph (3).
(3) (A) Part B of such title I I is amended by striking out sections
221 and 222 and inserting in lieu thereof the following :

239

79 Stat. 1225.
20 u s e 1023.
Ante,

p . 238.

Special purpose grants.
79 Stat. 1226.
2 0 u s e 1024.

20 u s e 1031,
1032.

a T R A I N I N G AND RESEARCH PROGRAMS

"SEC. 221. From the amount available for grants under this part pursuant to section 201 for any fiscal year, the Commissioner shall carry
out a program of making grants in accordance with sections 222 and
223. Of such amount, 66% per centum shall be available for the purposes of section 222 and 33% per centum shall be available for the purposes of section 223.".
(B) Section 223(a) of such Act is amended to read as follows:
"SEC. 223. (a) The Commissioner is authorized to make grants to
institutions of higher education and library organizations or agencies
to assist them in training persons in librarianship. Such grants may
be used by such institutions, library organizations or agencies (1) to
assist in covering the cost of courses of training or study (including
short term or regular session institutes) for such persons, (2) for
establishing and maintaining fellowships or traineeships with stipends
(including allowances for traveling, subsistence, and other expenses)
for fellows and others undergoing training and their dependents, not
in excess of such maximum amounts as may be prescribed by the Commissioner, and (3) for establishing, developing, or expanding programs
of library and information science. Not less than 50 per centum of the
grants made under this subsection shall be for the purpose of establishing and maintaining fellowships or traineeships under clause (2).".
(C) Section 223 (b) of such Act is amended by inserting after "institution of higher education" the following: "and library organizations
or agencies".

20 u s e 1033.

240

PUBLIC LAW 92-318-JUNE 23, 1972

79 Stat. 1228.
20 u s e 591
note.
Ante, p. 239.
20 u s e 1034.
Effective date.

[86

STAT.

(D) Such part B is further amended by striking out section 225;
and sections 223 and 224 of such part, and all references thereto (except
those references thereto in section 221 of such part, as amended by
subparagraph ( A ) ) , are redesignated as sections 222 and 223, respectively.
(b) The amendments made by subsection (a) shall be effective after
June 30, 1972, and only with respect to appropriations for the fiscal
year ending June 30, 1973, and succeeding fiscal years.
WAIVER OF M A I N T E N A N C E OF EFFORT REQUIREMENT

79 Stat. 1224.
20 u s e 1022.

Ante,p.

239.

Effective date.

SEC. 112. (a) Section 202 of title I I of the Higher Education Act of
1965 is amended by redesignating clauses (c) and ( d ) , and all references thereto, as clauses (2) and (3), respectively, and by striking out
clauses (a) and (b) and inserting in lieu thereof the following:
"(1) provides satisfactory assurance that the applicant will
expend during the fiscal year for which the basic grant is sought,
from funds other than funds received under this part—
" ( A ) for all library purposes (exclusive of construction),
an amount not less than the average annual amount it
expended for such purposes during the two fiscal years preceding the fiscal year for which assistance is sought under this
part, and
" ( B ) for library resources, an amount not less than the
average amount it expended for such resources during the two
fiscal years preceding the fiscal year for which assistance is
sought under this part,
except that, if the Commissioner determines, in accordance with
regulations, that there are special and unusual circumstances
which prevent the applicant from making the assurances required
by this clause (1), he may waive that requirement for one or botli
of such assurances;".
(b) (1) The second sentence of such section 202 is amended by striking out "not exceed" and inserting in lieu thereof the following: ", for
any fiscal year, be equal to the amount expended by the applicant for
library resources during that year from funds other than funds
received under this part, except that no basic grant shall exceed".
(2) Clause (1) of section 203(a) of such title I I is amended by
striking out that part thereof which follows "section 202" and inserting
in lieu thereof a semicolon.
(c) The amendments made by this section shall be effective after,
and only with respect to appropriations for fiscal years beginning
after, June 30,1971.
INCREASE I N M A X I M U M A M O U N T OF SUPPLEMENTAL GRANTS

20 u s e 1023.
Effective date.

SEC. 113. (a) Section 203(a) of the Higher Education Act of 1965 is
amended by striking out "$10" and inserting in lieu thereof "$20".
(b) The amendment made by subsection (a) shall be effective after,
and only with respect to appropriations for fiscal years beginning
after, June 30,1972.
AUTHORIZATION OF APPROPRIATIONS FOR COLLEGE A N D RESEARCH
LIBRARY RESOURCES

79 Stat. 1228;
82 Stat. 103 7.
20 u s e 1041.

Effective date.

S E C 114. (a) Section 231 of the Higher Education Act of 1965 is
amended by striking out "and the succeeding fiscal year" and inserting
in lieu thereof "and $9,000,000 for the fiscal year ending June 30,1972,
$12,000,000 for the fiscal year ending June 30,1973, $15,000,000 for the
fiscal year ending June 30,1974, and $9,000,000 for the fiscal year ending June 30,1975".
(b) The amendments made by subsection (a) shall be effective after
June 30,1971.

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

241

EVALUATION A N D REPORT

SEC. 115. (a) P a r t C of title I I of the Higher Education Act of
1965 is amended by adding a t the end thereof the following new section :

79 Stat. 1228.
20 u s e 1041.

"EVALUATION AND REPORT

"SEC. 232. No later than March 31 of each calendar year the
Librarian of the Congress shall transmit to the respective committees of
the Congress having legislative jurisdiction over this part and to the
respective Committees on Appropriations of the Congress a report
evaluating the results and effectiveness of acquisition and cataloging
work done under this part, based to the maximum extent practicable
on objective measurements, including costs, together with recommendations as to proposed legislative action.".
(b) The amendment made by subsection (a) shall be effective after
June 30,1972.
PART C—DEVELOPING INSTITUTIONS; EMERGENCY ASSISTANCE TO
INSTITUTIONS OF H I G H E R EDUCATION
R E V I S I O N O F T I T L E I I I (STRENGTHENING DEVELOPING

Report to congressional committees.

Effective date.

>

INSTITUTIONS)

SEC. 121. (a) Title I I I of the Higher Education Act of 1965 is
amended to read as follows:

20 use losi.

^TITLE I I I — S T K E N G T H E N I N G D E V E L O P I N G
INSTITUTIONS
"AUTHORIZATION

"SEC. 301. (a) The Commissioner shall c a n y out a program of
special assistance to strengthen the academic quality of developing
institutions which have the desire and potential to make a substantial
contribution to the higher education resources of the Nation but which
are struggling for survival and are isolated from the main currents
of academic life.
" ( b ) ( 1 ) F o r the purpose of carrying out this title, there are authorized to be appropriated $120,000,000 for the fiscal year ending June
30, 1973, and for each of the succeeding fiscal years ending prior to
July 1,1975.
"(2) Of the sums appropriated pursuant to this subsection for any
fiscal year, 76 per centum shall be available only for carrying out the
provisions of this title with respect to developing institutions which
plan to award one or more bachelor's degrees during such year.
"(3) The remainder of the sums so appropriated shall be available
only for carrying out the provisions of this title with respect to developing institutions which do not plan to award such a degree during
such year.
"ELIGIBILITY

FOR

SPECIAL

Special a s s i s t -

Approprlation.

ASSISTANCE

"SEC. 302. (a) (1) For the purposes of this title, the term 'developing
institution' means an institution of higher education in any State
which—
" ( A ) is legally authorized to provide, and provides within the
State, an educational program for which it awards a bachelor's
degree, or is a junior or communitj^ college;
" ( B ) is accredited by a nationally recognized accrediting
agency or association determined by the Commissioner to be

'•Developing
institution."

242

Waiver.

Application.

"Junior or community c o l l e g e . "

PUBLIC LAW 92-318-JUNE 23, 1972

STAT.

reliable authority as to the quality of training offered or is, according to such an agency or association, making reasonable progress
toward accreditation;
" ( C ) except as is proAdded in paragraph (2), has met the
requirement of clauses (A) and (B) during the five academic
years preceding the academic year for which it seeks assistance
under this title; and
" ( D ) meets such other requirements as the Commissioner shall
prescribe by regulation, which requirements shall include at least
a determination that the institution—
"(i) is making a reasonable effort to improve the quality
of its teaching and administrative staffs and of its student
services; and
"(ii) is, for financial or other reasons, struggling for survival and isolated from the main currents of academic life.
"(2) The Commissioner is authorized to waive the requirements
set forth in clause (C) of paragraph (1) in the case of applications
for grants under this title by institutions located on or near an
Indian reservation or a substantial population of Indians if the Commissioner determines such action will increase higher education for
Indians, except that such grants may not involve an expenditure
of funds in excess of 1.4 per centum of the sums appropriated pursuant to this title for any fiscal year.
"(b) Any institution desiring special assistance under the provisions
of this title shall submit an application for eligibility to the Commissioner at such time, in such form, and containing such information, as
may be necessary to enable the Commissioner to evaluate the need of the
applicant for such assistance and to determine its eligibility to be a
developing institution for the purposes of this title. The Commissioner shall approve any application for eligibility under this subsection which indicates that the applicant is a developing institution
meeting the requirements set forth in subsection ( a ) .
"(c) For the purposes of clause (A) of paragraph (1) of subsection
(a) of this section, the term 'junior or community college' means an
institution of higher education—
" (1) which does not provide an educational program for which
it awards a bachelor's degree (or an equivalent degree) ;
"(2) which admits as regular students only persons having a
certificate of graduation from a school providing secondary education (or the recognized equivalent of such a certificate); and
"(3) which does—
" ( A ) provide an educational program of not less than two
years which is acceptable for full credit toward such a degree,
or
" ( B ) offer a two-year program in engineering, mathematics, or the physical or biological sciences, which program is
designed to prepare a student to work as a technician and at
the semiprofessional level in engineering, scientific, or other
technological fields, which fields require the understanding
and application of basic engineering, scientific, or mathematical principles of knowledge.
((ADVISORY

Establishment.

[86

C O U N C I L ON DEVELOPING I N S T I T U T I O N S

"SEC. 303. (a) There is hereby established an Advisory Council
on Developing Institutions (in this title referred to as the 'Council')
consisting of nine members appointed by the Commissioner with the
approval of the Secretary.

86

STAT.]

243

PUBLIC LAW 92-318-JUNE 23, 1972

"(b) The Council shall, with respect to the program authorized by
this title, carry out the duties and functions specified by part C of tlie
General Education Provisions Act and, in particular, it shall assist the
Commissioner—•
"(1) in identifying developing institutions through which the
purposes of this title may be achieved; and
"(2) in establishing the priorities and criteria to be used in
making grants under section 304(a).

Post. p. 326.

'"USES OF FUNDS : COOPERATIVE ARRANGEMENTS, NATIONAL TEACHING
FELLOWSHIPS, AND PROFESSORS EMERIli: S

"SEC. 304. (a) The Commissioner is authorized to make grants and
awards, in accordance with the provisions of this title, for the purpose
of strengthening developing institutions. Such grants and aAvards shall
be used solely for the purposes set forth in subsection (b).
"(b) Funds appropriated pursuant to section 301(b) shall be
available for—
" (1) grants to institutions of higher education to pay part of
the cost of planning, developing, and carrying out cooperative
arrangements between developing institutions and other institutions of higher education, and between dcA^eloping institutions and
other organizations, agencies, and business entities, which show
promise as effective measures for strengthening the academic program and the administrative caj)acity of developing institutions,
including such projects and activities as—
" ( A ) exchange of faculty or students, including arrangements for bringing visiting scholars to developing institutions,
" ( B ) faculty and administration improvement programs,
utilizing training, education (including fellowships leading
to advanced degrees), internships, research participation, and
other means,
" ( C ) introduction of new curricula and curricular materials.
" ( D ) development and operation of cooperative education
programs involving alternate periods of academic study and
business or public employment, and
" ( E ) joint use of facilities such as libraries or laboratories,
including necessary books, materials, and equipment;
" (2) National Teaching Fellowships to be awarded by the Commissioner to highly qualified graduate students and junior faculty
members of institutions of higher education for teaching at
developing institutions; and
"(3) Professors Emeritus Grants to be awarded by the Commissioner to professors retired from active service at institutions
of higher education to encourage them to teach or to conduct
lesearch at developing institutions.
"(c) (1) An application for assistance for the purposes described in
subsection ( b ) ( 1 ) shall be approved only if it—
" ( A ) sets forth a program for carrying out one or more of the
activities described in subsection ( b ) ( 1 ) , and sets forth such
policies and procedures for the administration of the program as
will insure the proper and efficient operation of the jirogram and
the accomplishment of the purposes of this title;
" ( B ) sets forth such policies and procedures as will insure that
Federal funds made available under this section for any fiscal year
will be so used as to supplement and, to the extent practical,
increase the level of funds that would, in the absence of such Federal funds be made available for the purposes of the activities
described in subsection ( b ) ( 1 ) , and m no case supplant such
funds;

Grants and
awards.

Ante, p. 241.

National Teaching Fellowships.

Professors Emeritus Grants.

Application approval conditions.

244

Stipend and dependent allowance.

Limitation.

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

" ( C ) sets forth policies and procedures for the evaluation of
the effectiveness of the project or activity in accomplishing its
purpose;
" ( D ) provides for such fiscal control and fund accounting procedures as may be necessary to insure proper disbursement of
and accounting for funds made available under this title to the
applicant; and
" ( E ) provides for making such reports, in such form and containing such information, as the Commissioner may require to
carry out his functions under this title, and for keeping such records and affording such access thereto, as he may find necessary
to assure the correctness and verification of such i-eports.
rhe Commissioner shall, after consultation with the Council, establisli
by regulation criteria as to eligible expenditures for which funds fi-om
grants for cooperative arrangements under clause (1) of subsection (b)
may be used, Avhich criteria shall be so designed as to prevent the
use of such funds for purposes not necessary to the achievement of the
purposes for which the grant is made.
"(2) (A) Applications for awards described in clauses (2) and (3)
of subsection (b) may be approved only upon a finding by the Commissioner that the program of teaching or research set forth therein
is reasonable in the light of the qualifications of the applicant and of
the educational needs of the institution at which the applicant intends
to teach.
" ( B ) No application for a National Teaching Fellowship or a Professors Emeritus Grant shall be approved for an award of such a
fellow^ship or grant for a period exceeding two academic years, except
that the award of a Professors Emeritus Grant may be for such period,
in addition to such two-year period of award, as the Commissioner,
upon the advice of the Council, may determine in accordance with
policies of the Commissioner set forth in regulations.
" ( C ) Each person awarded a National Teaching Fellowship or a
Professors Emeritus Grant shall receive a stipend for each academic
year of teaching (or, in the case of a recipient of a Professoi-s Emeritus
Grant, research) as determined by the Commissioner upon the advice
of the Council, plus an additional allowance for ea,ch such year for each
dependent of such person. I n the case of National Teaching Fellowships, such allowance may not exceed $7,500, plus $400 for each
dependent.
" A S S I S T A N C E TO DEVPXOPING I N S T r r U T I O N S UNDER OTHER PRtKJRAMS

Waivers, eligibility.

Ante, p . 238;
Post, p p . 247, 288.
Non-Federal
share requirement.

"SEC. 305. (a) Each institution which the Commissioner determines
meets the criteria set forth in section 302(a) shall be eligible for
waivers in accordance with subsection (b).
" ( b ) ( 1 ) Subject to, and in accordance with, regulations promulgated for the purpose of this section, in the case of any application by
A developing institution for assistance under any program specified in
paragraph (2), the Commissioner is authorized, if such application
is otherwise approvable, to waive any requirement for a non-Federal
share of the cost of the program or project, or, to the extent not inconsistent with other law, to give, or require to be given, priority consideration of the application in relation to applications from institutions
which are not developing institutions.
"(2) The provisions of this section shall apply to anv program
authorized by title I I , IV, V I , or V I I of this Act.
"(c) The Commissioner shall not waive, under subsection (b), the
non-Federal share requirement for any program for applications
which, if approved, would require the expenditure of more than 1(>
per centum of the appropriations for that program for any fiscal year.

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

245

"LIMITATION

"SEC. 306. None of the funds appropriated pursuant to section 301
(b) (1) shall be used for a school or department of divinity or for any
religious worship or sectarian activity.".
(b) The amendment made by subsection (a) shall be effective after,
and only with respect to appropriations made for fiscal yeai-s beginning after, June 30,1972.
E M E R G E N C Y ASSISTANCE FOR I N S T I T U T I O N S

OF H I G H E R

Effective date.

EDUCATION

SEC. 122. ( a ) ( 1 ) The Congress hereby finds and declares that—•
(A) the Nation's institutions of higher education constitute a
national resource which significantly contributes to the security,
general welfare, and economy of the United States;
(B) considerable evidence has been advanced which indicates
that many institutions of higher education are in financial distress
resulting from many causes, including, among others, efforts on
the part of such institutions to increase enrollments, to improve
the quality of education and training, and to enlarge educational
opportunities; and
(C) various proposals have been presented to the Congress, in
response to such condition of financial distress, for providing
financial assistance to the Nation's institutions of higher education
but, except for that necessary to justify payments provided for
i-eimbursement for part of the cost of instruction as provided in
title X of this Act, insufficient information is available on the Post, p. 375.
basis of which the Congress can determine, with any degree of
certainty, the nature and causes of such financial distress or the
most appropriate means with which present and future conditions of financial distress may be dealt.
(2) I t is the purpose of this section to provide to institutions of
higher education, which are determined in accordance with this section to be in serious financial distress, interim emergency assistance
to enable them to determine the nature and causes of such distress
and the means by which such distress may be alleviated, and to
improve their capabilities for dealing with financial problems using, to
the extent appropriate, assistance authorized under the Higher Education Act of 1965 and all other sources of financial assistance.
79 stat. 1219.
( b ) ( 1 ) There is authorized to be appropriated for the period 20 use 1001
beginning with the date of enactment of this Act, and ending J u n e 30, ""Appropriation.
1974, $40,000,000 for the purpose of making grants under this section.
Sums so appropriated shall remain available for obligation and
expenditure until expended.
(2) (A) The Commissioner is authorized to make grants to institu- Grants,
tions of higher education which are in serious financial distress, as
such term is defined in regulations of the Commissioner, in accordance
with the provisions of this section.
(B) A grant under this subsection may be made only upon applica- Applications,
tion therefor to the Commissioner. Such applications shall be submitted at such time, in such form, and containing such information,
assurances, policies, and procedures as the Commissioner may require
in order to enable him to carry out his functions under this section. The Approval condiCommissioner shall not approve any such application unless he finds "ons.
that—
(i) in the case of a public institution of higher education, the
institution has submitted its application for emergency assistance
under this subsection to the appropriate State agency, as provided
by the law of the State in which it is located and in accordance
with regulations of the Commissioner, if any such agency exists

246

Definitions.

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

with respect to such State, and such State agency has made a
finding, m accordance with criteria established by the Commissioner, that such institution is in serious financial distress and (I)
is in need of financial assistance under this section to continue its
operation, or ( I I ) will have to discontinue or substantially curtail its academic programs to the detriment of the quality of education available to its students;
(ii) in the case of a nonpublic institution of higher education,
the institution either has complied with the procedure set forth in
clause (i) for public institutions, or has submitted an application
directly to the Commissioner and the Commissioner has determined that the institution meets the condition set forth in either
clause (i) (I) or (i) ( I I ) , and has submitted a copy to the appropriate State agency, as determined under the law of the State in
which it is located and in accordance with regulations of the
Commissioner, for comment;
(iii) such institution has developed, adopted, and submitted a
plan which the Commissioner determines provides reasonable
assurance that, if the institution receives the grant for which it is
applying, such institution will be able, during and after the period
covered by such grant, to continue the educational services, programs, and activities with respect to which such grant is sought ;
(iv) such institution is making a major contribution to the overall higher educational system of the area of the State in which it is
located, or of the Nation; and
(v) -such institution has included in such application such
policies and procedures for the use of funds received under the
grant as will insure that such funds will not be used for a school
or department of divinity or for any religious worship or sectarian
activity, and as will insure that such funds will be solely used
for the purposes for which the grant is made.
(C) An application shall be approved under this subsection only if
it includes such information, terms, and conditions as the Commissioner finds necessary and reasonable to enable him to carry out his
functions under this section, and as he determines will be in the financial interest of the United States, and the applicant agrees—
(i) to disclose such financial information as the Commissioner
determines to be necessary to determine the sources or causes of its
financial distress and other information relating to its use of its
financial resources;
(ii) to conduct a comprehensive cost analysis study of its operation, including income-cost comparisons and cost per credit hour
of instruction for each department, in accordance with uniform
standards prescribed by the Commissioner; and
(iii) to consider, and either implement or give adequate reasons
in writing for not doing so, any financial or operational reform
recommended by the Commissioner for the improvement of its
financial condition.
(D) The Commissioner shall not approve an application for a grant
under this section without first obtaining the advice and recommendations of a panel of specialists who are not regular, full-time employees
of the Federal Government and who are competent to evaluate the
applications as to the relative degree of financial distress of the
applying institutions.
(c) As used in this section—
(1) the term "institution of higher education'" means an educational institution in any State which (A) admits as regular
students only persons having a certificate of graduation from a
school providing secondary education, or the recognized equivalent of such a certificate, (B) is legally authorized within such

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

State to provide a program of education beyond secondary education, (C) has been in existence for at least five years prior to
the date upon which it makes application under this section, (D)
provides an educational program for which it awards a bachelor's
degree or provides not less than a two-year program which is
acceptable for full credit towards such a degree, (E) is a public
or other nonprofit institution, and ( F ) is accredited by a nationally recognized accrediting agency or association or, if not so
accredited, (i) is an institution with respect to w^iich the Commissioner has determined that there is satisfactory assurance, considering the resources available to the institution, the period of
time, if any, during which it has operated, the effort it is making
to meet accreditation standards, and the purpose for which this
determination is being made, that the institution will meet the
accreditation standards of such an agency or association within
a reasonable time, or (ii) is an institution w^iose credits are
accepted, on transfer, by not less than three institutions which
are so accredited, for credit on the same basis as if transferred
from an institution which is accredited, and, for the purpose of
this clause, the Commissioner shall publish a list of nationally
recognized accrediting agencies or associations which he determines to be reliable authority as to the quality of training offered;
(2) the term "State''includes the fifty States, the District of
Columbia, the Commonwealth of Puerto Rico, Guam, and the
Virgin Islands; and
(3) the term "school or department of divinity" means an institution or a department or a branch of an institution the program
of instruction of which is designed for the education of students
(A) to prepare them to become ministers of religion or to enter
upon some other religious vocation (or to provide continuing
training for any such vocation), or (B) to prepare them to teach
theological subjects.

247

•

PART D — S T U D E N T ASSISTANCE
REVISION OF PART A OF TITLE IV (EDUCATIONAL OPPORTUNITY GRANTS)

SEC. 131. ( a ) ( 1 ) ( A ) The first sentence of section 401(b) of the
Higher Education Act of 1965 is amended by striking out that part 83^statf*i43^^^'
Avhich precedes "to enable the Commissioner" and inserting in lieu 20 use loei.
thereof: "There are hereby authorized to be appropriated $170,000,000 Appropriation,
for the fiscal year ending J u n e 30, 1972, and $200,000,000 for each of
the succeeding fiscal years ending prior to July 1,1975,".
(B) Section 408 of such Act is amended by striking out "for the 82 stat. 10is.
fiscal year ending June 30, 1971" and inserting in lieu thereof "for ^° "^^ ^^^*'
each of the succeeding fiscal years ending prior to June 30,1975".
(2) The amendments made by paragraph (1) shall be effective after
Effective date.
June 30, 1971.
(b) (1) P a r t A of title I V of such Act is amended to read as follows: 79 stat, 1232.
20 u s e 1061.
" P A R T A—GRANTS TO STUDENTS I N ATTENDANCE AT INSTITUTIONS OF
HIGHER EDUCATION
"STATEMENT OF PURPOSE; PROGRAM AUTHORIZATION

"SEC. 401. (a) I t is the purpose of this part, to assist in making available the benefits of postsecondary education to qualified students in
institutions of higher education by—
"(1) providing basic educational opportunity grants (hereinafter referred to as 'basic grants') to all eligible students;

-081 O - 73 - 19

248

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

"(2) providing supplemental educational opportunity grants
(hereinafter referred to as 'supplemental grants ) to those students
of exceptional need who, for lack of such a grant, would be unable
to obtain the benefits of a postsecondary education;
"(3) providing for payments to the States to assist them in
making financial aid available to such students; and
"(4) providing for special programs and projects designed (A)
to identify and encourage qualified youths with financial or cultural need with a potential for postsecondary education, (B) to
prepare students from low-income families for postsecondary education, and (C) to provide remedial (including remedial language
study) and other services to students.
" ( b ) The Commissioner shall, in accordance with subparts 1, 2, 3,
and 4, carry out programs to achieve the purposes of this part.
"Subpart 1—Basic Educational Opportunity Grants
" B A S I C E D U C A T I O N A L O P P O R T U N I T Y G R A N T S : AMOUNT

AND

DETERMINATIONS; APPLICATIONS

Basic grant
formula.

Reductions,
schedule.

Publication in
Federal Register.
Limitations.

"SEC. 411. (a) (1) The Commissioner shall, during the period beginning July 1,1972, and ending June 30,1975, pay to each student who has
been accepted for enrollment in, or is in good standing at, an institution of higher education (according to the prescribed standards, regulations, and practices of that institution) for each academic year during
which that student is in attendance at that institution, as an undergraduate, a basic grant in the amount for which that student is eligible,
as determined pursuant to paragraph (2).
" ( 2 ) ( A ) ( i ) The amount of the basic grant for a student eligible
under this subpart for any academic year shall be $1,400, less an amount
equal to the amount determined under paragraph (3) to be the expected
family contribution with respect to that student for that year.
"(ii) In any case where a student attends an institution of higher
education on less than a full-time basis during any academic year, the
amount of the basic grant to which that student is entitled shall be
reduced in proportion to the degree to which that student is not so
attending on a full-time basis, in accordance with a schedule of reductions established by the Commissioner for the purposes of this division.
Such schedule of reductions shall be established by regulation and
published in the Federal Eegister not later than February 1 of each
year.
" (B) (i) The amount of a basic grant to which a student is entitled
under this subpart for any academic year shall not exceed 50 per centum
of the actual cost of attendance at the institution at which the student
is in attendance for that year.
"(ii) No basic grant under this subpart shall exceed the difference
between the expected family contribution for a student and the actual
cost of attendance at the institution at which that student is in
attendance. If with respect to any student, it is determined that the
amount of a basic grant plus the amount of the expected family contribution for that student exceeds the actual cost of attendance for
that year, the amount of the basic grant shall be reduced until the
combination of expected family contribution and the amount of the
basic grant does not exceed the actual cost of attendance at such
institution.
"(iii) No basic grant shall be awarded to a student under this subpart if the amount of that grant for that student as determined under
this paragraph for any academic year is less than $200. Pursuant to
criteria established by the Commissioner by regulation, the institution
of higher education at which a student is in attendance may award a

86 STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

basic grant of less than $200 upon a determination that the amount
of the basic grant for that student is less than $200 because of the
requirement of division (i) and that, due to exceptional circumstances,
this reduced grant should be made in order to enable the student to
benefit from postsecondary education.
"(iv) For the purpose of this subparagraph and subsection (b) the
term 'actual cost of attendance' means, subject to regulations of the
Commissioner, the actual per-student charges for tuition, fees, room
and board (or expenses related to reasonable commuting), books, and
an allowance for such other expenses as the Commissioner determines
by regulation to be reasonably related to attendance at the institution
at which the student is in attendance.
"(3) (A) (i) Not later than February 1 of each year the Commissioner shall publish in the Federal Register a schedule of expected
family contributions for the succeeding academic year for various
levels of family income, which, except as is otherwise provided in division (ii), together with any amendments thereto, shall become effective
July 1 of that year. During the thirty-day period following such publication the Commissioner shall provide interested parties with an
opportunity to present their views and make recommendations with
respect to such schedule.
"(ii) The schedule of expected family contributions required by
division (i) for each academic year shall be submitted to the President
of the Senate and the Speaker of the House of Representatives not
later than February 1 of that year. If either the Senate or the House
of Representatives adopts, prior to May 1 of such year, a resolution of
disapproval of such schedule, the Commissioner shall publish a new
schedule of expected family contributions in the Federal Register not
later than fifteen days after the adoption of such resolution of disapproval. Such new schedule shall take into consideration such recommendations as may be made in connection with such resolution and
shall become effective, together with any amendments thereto, on
July 1 of that year.
" (B) (i) For the purposes of this paragraph and subsection (b), the
term 'family contribution' with respect to any student means the
amount which the family of that student may be reasonably expected
to contribute toward his postsecondary education for the academic
year for which the determination under subparagraph (A) of paragraph (2) is made, as determined in accordance with regulations. I n
promulgating such r e f l a t i o n s , the Commissioner shall follow the
basic criteria set forth m division (ii) of this subparagraph.
"(ii) The basic criteria to be followed in promulgating regulations
with respect to expected family contribution are as follows:
" ( I ) The amount of the effective income of the student or the
effective family income of the student's family.
" ( I I ) The number of dependents of the family of the student,
" ( I I I ) The number of dependents of the student's family who
are in attendance in a program of postsecondary education and for
whom the family may be reasonably expected to contribute for
their postsecondary education.
" (IV) The amount of the assets of the student and those of the
student's family.
" ( V ) Any unusual expenses of the student or his family, such
as unusual medical expenses, and those which may arise irom a
catastrophe.
"(iii) For the purposes of clause ( I ) of division (ii), the term
'effective family income' with resj)ect to a student means the annual
adjusted family income, as determined in accordance with regulations
prescribed by the Commissioner, received by the parents or guardian

249

"Actual cost
of attendance."

Schedule, publication In Federal
Register.

Submittal to
Congress.
Publication in
Federal Register.

"Family contribution."

Regulations,
criteria.

"Effective
family i n c o m e . "

250

49 Stat. 620.
42 u s e 1305.
80 Stat. 12;
82 Stat. 1331.
38 u s e 1651,
1700.
Regulations.

"Noncredlt
remedial course
of study."

Payments.

Insufficient
funds, percentage
of entitlement due.

Excess funds.

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

of that student (or the person or persons having an equivalent relationship to such student) minus Federal income tax paid or payable with
respect to such income.
"(iv) I n determining the expected family contribution with respect
to any student, any amount paid under the Social Security Act to, or on
account of, the student which would not be paid if he were not a student, and one-half any amount paid the student under chapters 34
and 35 of title 38, United States Code, shall be considered as effective
income for such student.
" ( C ) The Commissioner shall promulgate special regulations for
determining the expected family contribution and effective family
income of a student who is determined (pursuant to regulations of the
Commissioner) to be independent of his parents or guardians (or the
person or persons having an equivalent relationship to such student).
Such special regulations shall be consistent with the basic criteria set
forth in division (ii) of subparagraph ( B ) .
" (4) (A) The period during which a student may receive basic grants
shall be the period required for the completion of the undergraduate
course of study being pursued by that student at the institution at which
the student is in attendance, except that such period may not exceed
four academic years unless—
" (i) the student is pursuing a course of study leading to a first
degree in a program of study which is designed by the institution
offering it to extend over five academic years; or
"(ii) the student is, or will be, unable to complete a course of
study within four academic years because of a requirement of the
institution of such course of study that the student enroll in a
noncredit remedial course of study;
in either which case such period may be extended for not more than one
additional academic year.
" ( B ) For the purposes of clause (ii) of subparagraph ( A ) , a 'noncredit remedial course of study' is a coiirse of study for which no credit
is given toward an academic degree, and which is designed to increase
the ability of the student to engage in an undergraduate course of study
leading to such a degree.
" ( b ) ( 1 ) The Commissioner shall from time to time set dates by
which students must file applications for basic grants under this
subpart.
"(2) Each student desiring a basic grant for any year must file an
application therefor containing such information and assurances as
the Commissioner may deem necessary to enable him to carry out his
functions and responsibilities under this subpart.
"(3) (A) Payments under this section shall be made in accordance
with regulations promulgated by the Commissioner for such purpose,
in such manner as will best accomplish the purposes of this section.
" (B) (i) If, during any period of any fiscal year, the funds available
for payments under this subpart are insufficient to satisfy fully all
entitlements under this subpart, the amount paid with respect to each
such entitlement shall be—
" (I) in the case of any entitlement which exceeds $1,000,75 per
centum thereof;
" ( I I ) in the case of any entitlement which exceeds $800 but does
not exceed $1,000,70 per centum thereof;
" ( I I I ) in the case of any entitlement which exceeds $600 but
does not exceed $800,65 per centum thereof; and
" ( I V ) in the case of any entitlement which does not exceed $600,
50 per centum thereof,
"(ii) If, during any period of any fiscal year, funds available for
making payments under this subpart exceed the amount necessary to

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

make the payments prescribed in division (i), such excess shall be
paid with respect to each entitlement under this subpart in proportion
to the degree to which that entitlement is unsatisfied, after payments
are made pursuant to division (i).
" (iii) I n the event that, at the time when payments are to be made
pursuant to this subparagraph ( B ) , funds available therefor are
insufficient to pay the amounts set forth in division (i), the Comrnissioner shall pay with respect to each entitlement an amount which
bears the same ratio to the appropriate amount set forth in division
(i) as the total amount of funds so available at such time for such
payments bears to the amount necessary to pay the amounts indicated
in division (i) in full.
"(iv) No method of computing or manner of distribution of payments under this subpart shall be used which is not consistent with
this subparagraph.
" (v) I n no case shall a payment under this subparagraph be made if
the amount of such payment after application of the provisions of this
subparagraph is less than $50.
" ( C ) (i) During any fiscal year in which the provisions of subparagraph (B) apply, a basic grant to any student shall not exceed
.50 per centum of the difference between the expected family contribution for that student and the actual cost of attendance at the institution
in which the student is enrolled, unless sums available for making
payments under this subsection for any fiscal year equal more than 75
[)er centum of the total amount to which all students are entitled
under this subpart for that fiscal year, in which case no basic grant
shall exceed 60 per centum of such difference.
"(ii) The limitation set forth in division (i) shall, when applicable,
be in lieu of the limitation set forth in subparagraph (B) (i) of subsection ( a ) ( 2 ) .
"'(4) No payments may be made on the basis of entitlements established under this subpart during any fiscal year ending prior to
July 1,1975, in which—
" ( A ) the appropriation for making grants under subpart 2 of
this part does not at least equal $130,093,000; and
" (B) the appropriation for work-study payments under section
441 of this title does not at least equal $237,400,000; and
" ( C ) the appropriation for capital contributions to student
loan funds under part p] of this title does not at Irast equal
$286,000,000.

251

:,

Limitations.

. ,

^°®'' P- 2^3-

"Subpart 2—Suppleniental Educational Opportunity Grants
"PURPOSE; APPROPRIATIONS AUTHORIZED

"SEC. 413A. (a) I t is the purpose of this subpart to provide, through
institutions of higher education, supplemental grants to assist in making available the benefits of postsecondar-y education to qualified students who, for lack of financial means, would be unable to obtain such
benefits without such a grant.
" ( b ) ( 1 ) For the purpose of enabling the Commissioner to make
payments to institutions of higher education which have made agreements with the Commissioner in accordance with section 413C(b),
for use by such institutions for payments to undergraduate students
for the initial academic year of a supplemental grant awarded to them
under this subpart, there are authorized to be appropriated $200,000,000
for the fiscal year ending June 30,1973, and for each of the succeeding
fiscal years ending prior to July 1, 1975. Funds appropriated pursuant
to this paragraph shall be appropriated separate from any funds
appropriated pursuant to paragraph (2).

/

252

Initial year payment provisions.

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

"(2) I n addition to the sums authorized to be appropriated by
paragraph (1), there are authorized to be appropriated such sums
as may be necessary for payment to institutions of higher education
for use by such institutions for making continuing supplemental grants
under this subpart, except that no appropriation may be made pursuant to this paragraph for any fiscal year beginning more than three
years after the last fiscal year for which an appropriation is authorized
under paragraph (1). Funds appropriated pursuant to this paragraph
shall be appropriated separate from any funds appropriated pursuant
to paragraph (1).
"(3) Sums appropriated pursuant to this subsection for any fiscal
year shall be available for payments to institutions until the end of the
fiscal year succeeding the fiscal year for which they were appropriated.
"(4) For the purposes of this subsection, payment for the first year
of a supplemental grant shall not be considered as an initial year
payment if the grant was awarded for the continuing education of a
student who—
" (A) had been previously awarded a supplemental grant under
this subpart (whether by another institution or otherwise), and
" ( B ) had received payment for any year of that supplemental
irrant.
''AMOUNT AND DURATION OF GRANTS

Limitation.

"Student financial aid."
Ante, p. 248;
Post, pp. 271,
273.

Basic criteria
and schedules.

"SEC. 413B. (a) (1) From the funds received by it for such purpose under this subpart, an institution which aAvards a supplemental
grant to a student for an academic year under this subpart shall, for
such year, pay to that student an amount determined pursuant to paragraph (2).
"(2) (A) (i) The amount of the payment to any student pursuant to
paragraph (1) shall be equal to the amount determined by the institution to be needed by that student to enable him to pursue a course of
study at the institution, except that such amount shall not exceed—•
" ( I ) $1,500, or
" ( I I ) one-half the sum of the total amount of student financial
aid provided to such student by such institution,
whichever is the lesser.
"(ii) No student shall be paid during all the academic years he is
pursuing his undergraduate course of study at one or more institutions
of higher education in excess of $4,000 or in the case of any student to
whom the provisions of subsection (b) (1) (B) apply, $5,000.
"(iii) For the purposes of clause ( I I ) of division ( i ) , the term 'student financial aid' includes assistance payments to the student under
subpart 1 of this part and parts C and E of this title, and any assistance provided to a student under any scholarship program established
by a State or a private institution or organization, as determined in
accordance with regulations, shall be deemed to be aid provided such
student by the institution.
" ( B ) If the amount determined under division (i) of subparagraph
(A) with respect to a student for any academic year is less than $200,
no payment shall be made to that student for that year.
" ( C ) Subject to subparagraphs (A) and ( B ) , the Commissioner
shall prescribe, for the guidance of institutions, basic criteria and
schedules for the determination of the amount of need to be determined
under division (i) of subparagraph ( A ) . Such criteria and schedules
shall take into consideration the objective of limiting assistance under
this subpart to students of financial need, and such other factors
related to determining the need of students for financial assistance as
the Commissioner deems relevant but such criteria or schedules shall
not disqualify an applicant on account of his earned income if income
from other sources in the amount of such earned income would not
disqualify him.

86

STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

253

' ' ( b ) ( 1 ) ( A ) A student eligible for a supplemental grant may be
awarded such a grant under this subpart for each academic year of
the period required for completion by the recipient of his undergraduate course of study in the institution of higher education from
which he received such grant.
Five-year
" ( B ) A student may not receive supplemental grants under this programs.
subpart for a period of more than four academic years, except that in
the case of a student—
" ( i ) who is pursuing a course of study leading to a hrst degree
in a program of study which is designed by the institution offering
it to extend over five academic years, or
"(ii) who is because of his particular circumstances determined
by the institution to need an additional year to complete a course
of study normally requiring four academic years,
such period may be extended for not more than one additional academic
year.
and
"(2) A supplemental grant awarded under this subpart shall entitle a t tAcademic
e n d a n c e standthe student to whom it is awarded to payments pursuant to such grant ards"
only if—
" ( A ) that student is maintaining satisfactory progress in the
course of study he is pursuing, according to the standards and
practices of the institution awarding the grant, and
" ( B ) that student is devoting at least half-time to that course
of study, during the academic year, in attendance at that institution.
Failure to be in attendance at the institution during vacation periods Nonattendance.
or periods of military service, or during other periods during which
the Commissioner determines, in accordance with regulations, that
there is good cause for his nonattendance, shall not render a student
ineligible for a supplemental grant; but no payments may be made to
a student during any such period of failure to be in attendance or
period of nonattendance.
"SELECTION or RECIPIENTS ; AGREEMENTS WITH INSTITUTIONS

"SEC. 413C. (a) (1) An individual shall be eligible for the award of
a supplemental grant under this subpart by an institution of higheieducation which has made an agreement with the Commissioner pursuant to subsection (b), if the individual makes application at the time
and in the manner prescribed by that institution, in accordance with
regulations of the Commissioner.
"(2) From among those who are eligible for supplemental grants
through an institution which has an agreement with the Commissioner
under subsection (b) for each fiscal year, the institution shall, in
accordance with such agreement under subsection (b), and within the
amount allocated to the institution for that purpose for that year
under section 413D(b) select individuals who are to be awarded such
grants and determine, in accordance with section 413B, the amounts to
be paid to them. An institution shall not award a supplemental grant
to an individual unless it determines that—
" ( A ) he has been accepted for enrollment as an undergraduate
student at such institution or, in the case of a student already
attending such institution, is in good standing there as an
undergraduate;
" ( B ) he shows evidence of academic or creative promise and
capability of maintaining good standing in this course of study;
" ( C ) he is of exceptional financial need; and
" ( D ) he would not, but for a supplemental grant, be financially
able to pursue a course of study at such institution.

Eligibility requirements.

254

agreeme"ntTrovisions.

Post, p. 274.

Post, p. 275.

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

For the purposes of clause (C) of this paragraph, in determining
financial need, the expected family contribution shall be considered to
be the contribution expected in the specific circumstances of the
student as determined by the student financial aid officer at the institution in accordance with criteria promulgated by the Commissioner.
Any calculation of the ability of a family to contribute shall include
consideration of (i) family assets which should reasonably be available
for such purpose, (ii) the number of children in the family, (iii) the
number of children attending institutions of higher education, (iv)
any catastrophic illness in the family, (v) any educational expenses
of other dependent children in the family, and (vi) other circumstances affecting the student's financial need.
"(b) Au Institutiou of higher educatiou which desires to obtain
funds for supplemental grants under this subpart shall enter into
an agreement with the Commissioner. Such agreement shall—
"(1) provide that funds received by the institution under this
subpart will be used by it solely for the purposes specified in, and
in accordance with, the provisions of this subpart and of section
463;
"(2) provide that, in determining whether an individual meets
the requirements of clause (C) of paragraph (2) of subsection
( a ) , the institution will—•
" ( A ) consider the source of such individual's income and
that of any individual or individuals upon Avhom he relies
primarily for support, and
" ( B ) make appropriate review of the assets of the student
and of such individuals;
" (3) provide that the institution, in cooperation with other eligible institutions where appropriate, will make vigorous efforts to
identify qualified youths of exceptional financial need, and to
encourage them to continue their education beyond secondary
school through such programs and activities as—
" ( A ) establishing or strengthening close working relationships with secondary school principals and guidance and counseling personnel, with a view toward motivating students to
complete secondary school and to pursue postsecondary school
educational opportunities, and
" ( B ) making, to the extent feasible, conditional commitments for student financial aid by such institution to qualified
secondary school students, who but for such grants would be
unable to obtain the benefits of higher education, with special
emphasis on students enrolled in grade 11 or lower grades who
show evidences of academic or creative promise;
"(4) provide that the institution will meet the requirements of
section 464;
" (5) include provisions designed to make grants under this subpart reasonably available, to the extent of available funds, to all
eligible students in attendance at the institution;
" (6) include such other provisions as may be necessary to protect
the financial interest of the United States and promote the purposes of this subpart.
" A P P O R T I O N M E N T AND ALLOCATION o r FUNDS

"SEC. 413D. (a) (1^ (A) From 90 per centum of the sums appropriated pursuant to section 413A(b) (1) for any fiscal year, the Commissioner shall apportion to each State an amount which bears the same
ratio to such sums as the number of persons enrolled full-time and the
full-time equivalent of the number of persons enrolled part time in
institutions of higher education in such State bears to the total number

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

255

of such persons in all the States. The remainder of the sums so appropriated shall be apportioned among the States by the Commissioner
in accordance with equitable criteria which he shall establish and
which shall be designed to achieve a disti'ibution of the sums so
appropriated among the States which will most effectively carry out
the purpose of this subpart, except that where any State's apportionment under the first sentence for a fiscal year is less than its allotment
under the first sentence of section 401(b) of this Act for the fiscal ^"'®' P* '^'^'^•
year ending June 30, 1972, before he makes any other apportionments
under this sentence, the Commissionei" shall apportion sufficient additional sums to such State under this sentence to make the State's
apportionment for that year under this paragraph equal to its allotment for the fiscal year ending June 30,1972, under such first sentence.
Sums apportioned to a State under the preceding sentence shall be consolidation,
consolidated with, and become a part of, its apportionment from the
same appropriation under the first sentence of this paragraph.
" ( B ) If the Commissioner determines that the sums apportioned to Excess, reany State under subparagraph (A) for any fiscal year exceed the ^ppo'^onmem.
aggregate of the amounts that he determines to be required under
subsection (b) for that fiscal year for institutions of higher education
in that State, the Commissioner shall reapportion such excess, from
time to time, on such date or dates as he shall fix, to other States in
such manner as the Commissioner determines will best assist in achieving the purposes of this subpart.
"(2) Sums appropriated pursuant to section 413A(b) (2) for any
fiscal year shall be apportioned among the States in such manner as
the Commissioner determines will best achieve the purposes for which
such sums were appropriated.
"(b) (1) (A) The Commissioner shall, from time to time, set dates
before which institutions in any State must file applications for allocation, to such institutions, of supplemental grant funds from the
apportionment to that State (including any reapportionment thereto)
for any fiscal year pursuant to subsection (a) (1).
" ( B ) (i) From the sums apportioned (or reapportioned) to any
State, the Commissioner shall allocate amounts to institutions which
have submitted applications pursuant to subparagraph ( A ) .
"(ii) Allocations under division (i) by the Commissioner to such
institutions shall be made in accordance with equitable criteria established by the Commissioner by regulation. Such criteria shall be
designed to achieve such distribution of supplemental grant funds
among such institutions within a State as will most effectively carry
out the purposes of this subpart.
"(2) The Commissioner shall, in accordance with regulations, allocate to such institutions in any State, from funds apportioned or reapportioned pursuant to subsection ( a ) ( 2 ) , funds to be used as the
supplemental grants specified in section 413A(b)(2).
" (3) Payments shall be made from allocations under this subsection
as needed.
"Subpart 3—Grants to States for State Student Incentives
"PURPOSE; APPROPRTATIOXS AUTHORIZED

"SEC. 415A. (a) I t is the purpose of this subpart to make incentive
grants available to the States to assist them in providing grants to
eligible students in attendance at institutions of higher education.
" (b) (1) There are hereby authorized to be appropriated $50,000,000
for the fiscal year ending June 30,1973, and for each of the succeeding
fiscal years ending prior to July 1, 1975, for payments to the States
for giants to students who have not pieviously been awarded such
grants.

256

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

"(2) I n addition to the sums authorized to be appropriated pursuant to paragraph (1), there is authorized to be appropriated such
sums as may be necessary for making payments to States to continue
their grants to students made with incentive grants received by such
States for previous years pursuant to paragraph (1).
"(3) Sums appropriated pursuant to paragraph (1) for any fiscal
3'ear shall remain available for payments to States for the award of
student grants under this subpart until the end of the fiscal year succeeding the fiscal year for which such sums were appropriated.
"(4) F o r the purposes of this subsection, a payment on the first
year of a student grant with respect to any student who has not been
awarded a grant from appropriations pursuant to paragraph (1)
during any previous year shall be considered, subject to regulations
of the Commissioner, an initial award to be paid from appropriations
pursuant to paragraph (1).
"ALLOTMENT AMONG STATES
" S E C . 4:15B. (a) (1) (A) From the sums appropriated pursuant to
section 415A(b) (1) for any fiscal year, the Commissioner shall allot
to each State an amount which bears the same ratio to such sums as
the number of students in attendance at institutions of higher education in such State bears to the total number of such students in sucli
attendance in all the States.
" ( B ) F o r the purposes of this paragraph, the number of students in
attendance at institutions of higher education in a State and in all the
States shall be determined by the Commissioner for the most recent
year for which satisfactory data are available to him.
"(2) The amount of any State's allotment under paragraph (1) for
any fiscal year which the Commissioner determines will not be required
for such fiscal year for the State student grant incentive program of
that State shall be available for reallotment from time to time, on such
dates during such year as the Commissioner may fix, to other States in
proportion to the original allotments to such States under such part
for such year, but with such proportionate amount for any of such
States being reduced to the extent it exceeds the sum the Commissioneiestimates such State needs and will be able to use for such year for
carrying out the State plan; and the total of such reductions shall be
similarly reallotted among the States whose proportionate amounts
were not so reduced. Any amount reallotted to a State under this part
during a year from funds appropriated pursuant to section 415A(b)
(1) shall be deemed part of its allotment under paragraph (1) for
such year.
" ( b ) Sums appropriated pursuant to section 415A(b) (2) for any
fiscal year shall be allotted among the States in such manner as the
Commissioner determines will best achieve the purposes for which such
sums were appropriated.
"(c) The Commissioner shall make payments for continuing incentive grants only to those States which continue to meet the requirements of section 415C(b) (1), (2), (3), and (5).

((APPLICATIONS

FOR STATE STUDENT I N C E N T I V E GRANT PROGRAMS

"SEC. 416C. (a) A State which desires to obtain a payment under
this subpart for any fiscal year shall submit an application therefor
through the State agency administering its progiam of student grants,
at such time or times, and containing such information as may be
required by, or pursuant to, regulation for the purpose of enabling
the Commissioner to make the determinations required under this
subpart.

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

"(b) From a State's allotment under this subpart for any fiscal year
the Commissioner is authorized to make payments to such State for
paying 50 per centum of the amount of student grants pursuant to a
State program which—
"(1) is administered by a single State agency;
"(2) provides that such grants will be in amounts not in excess
of $1,500 per academic year for attendance on a full-time basis
as an undergraduate at an institution of higher education;
"(3) provides for the selection of recipients of such grants on
the basis of substantial financial need determined annually on the
basis of criteria established by the State and approved by the
Commissioner;
"(4) provides for the payment of the non-Federal portion of
such grants from funds supplied by such State which represent
an additional expenditure for such year by such State for grants
for students attending institutions of higher education over the
amount expended by such State for such grants, if any, during
the second fiscal year preceding the fiscal year in which such State
initially received funds under this subpart; and
"(5) provides (A) for such fiscal control and fund accounting
procedures as may be necessary to assure proper disbursement of
and accounting for Federal funds paid to the State agency under
this subpart, and (B) for the making of such reports, in such
form and containing such information, as may be reasonably
necessary to enable the Commissioner to perform his functions
under this subpart.
"(c) Upon his ai:)proval of any application for a payment under
this subpart, the Commissioner shall reserve from the applicable
allotment (including any applicable reallotment) available therefor,
the amount of such payment, which (subject to the limits of such
jillotment or reallotment) shall be equal to the Federal share of the
cost of the student incentive grants covered by such application. The
Commissioner shall pay such reserved amount, in advance or by way
of reimbursement, and in such installments as he may determine. The
Commissioner's reservation of any amount under this section may be
amended by him, either upon approval of an amendment of the application or upon revision of the estimated cost of the student grants with
respect to which such reservation was made, and in the event of an
upward revision of such estimated cost approved by him he may
reserve the Federal share of the added cost only from the applicable
allotment (or reallotment) available at the time of such approval.

257

?«t: : :

"ADMINISTRATION or STATT. PROGRAMS; JTHHCIAL REVIEAV

"SEC. -IISD. (a) (1) The Commissioner shall not finally disapprove
any application for a State program submitted under section 415C,
or any modification thereof, without first affording the State agency
submitting the program reasonable notice and oppoitunity for a
hearing.
"(2) Whenever the Commissioner, after reasonable notice and NoncompUance,
opportunity for hearing to the State agency administering a State notification.
^
'
program approved under this subpart, finds—
" ( A ) that the State program has been so changed that it no
longer complies with the provisions of this subpart, or
" ( B ) that in the administration of the program there is a
failure to comply substantially with any such provisions,
the Commissioner shall notify such State agency that the State will
not be regarded as eligible to participate in the program under this
subpart until he is satisfied that thei-e is no longer any such faihire to
(•omply.

258
Appeal.

Fact findings,
modification.

Jurisdiction.

62 Stat. 928.

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

" ( b ) (1) If any State is dissatisfied with the Commissioner's final
action with respect to the approval of its State program submitted
under this subpart or with his final action under subsection ( a ) , such
State may appeal to the United States court of appeals for the circuit
in which such State is located. The summons and notice of appeal may
be served at any place in the United States. The Commissioner shall
forthwith certify and file in the court the transcript of the proceedings
and the record on which he based his action.
" (2) The findings of fact by the Commissioner, if supported by substantial evidence, shall be conclusive; but the court, for good cause
shown, may remand the case to the Commissioner to take further evidence, and the Commissioner may thereupon make new or modified
findings of fact and may modify his previous action, and shall certify
to the court the transcript and record of the further proceedings. Such
new or modified findings of fact shall likewise be conclusive' if supported by substantial evidence.
"(3) The court shall have jurisdiction to affirm the action of the
Commissioner or to set it aside, in whole or in part. The judgment of the
court shall be subject to review by the Supreme Court of the United
States upon certiorari or certification as provided in title 28, United
States Code, section 1254.
"Subpart 4—Special Programs for Students From Disadvantaged
Backgrounds
"PROGIL\M AUTHORIZATION

Appropriation.

"SEC. 417A. (a) The Commissioner shall, in accordance with the provisions of this subpart, carry out a program designed to identify qualified students from low-income families, to prepare them for a program
of postsecondary education, and to provide special services for such
students who are pursuing programs of postsecondary education.
"(b) For the purpose of enabling the Commissioner to carry out
this subpart, there are authorized to be appropriated $100,000,000 for
the fiscal year ending June 30, 1973, and for each of the succeeding
fiscal years ending prior to July 1,1975.
"AUTHORIZED ACTIVITIES

Grants and contracts.

"Talent
Search."

"SEC. 417B. (a) The Commissioner is authorized (without i-egard
to section 3709 of the Revised Statutes (41 U.S.C. 5)) to make grants
to, and contracts with, institutions of higher education, including
institutions with vocational and career education programs, combinations of such institutions, public and private agencies and organizations (including professional and scholarly associations), and,
in exceptional cases, secondary schools and secondarv vocational
schools, for planning, developing, or carrying out withm the States
one or more of the services described in section 417A(a).
" ( b ) Services provided through grants and contracts under this
subpart shall be specifically designed to assist in enabling youths
from low-income families who have academic potential, but who may
lack adequate secondary school preparation or who may be physically
handicapped, to enter, continue, or resume a program of postsecondary education, including—
"(1) programs, to be known as 'Talent Search', designed to—
" ( A ) identify qualified youths of financial or cultural
need with an exceptional potential for postsecondary educational training and encourage them to complete secondary
school and undertake postsecondary educational training,

86 STAT. ]

259

PUBLIC LAW 92-318-JUNE 23, 1972

" ( B ) publicize existing forms of student financial aid,
including aid furnished under this title, and
" ( C ) encourage secondary-school or college dropouts of
demonstrated aptitude to reenter educational programs,
including postsecondary-school programs;
"(2) programs, to be known as 'Upward Bound', (A) which
are designed to generate skills and motivation necessary for success in education beyond high school and (B) in which enrollees
from low-income backgrounds and with inadequate secondaryschool preparation participate on a substantially full-time basis
during all or part of the program;
"(3) programs, to be known as 'Special Services for Disadvantaged Students', of remedial and other special services for students with academic potential (A) who are enrolled or accepted
for enrollment at the institution which is the beneficiary of the
grant or contract, and (B) who, by reason of deprived educational, cultural, or economic background, or physical handicap, are
in need of such services to assist them to initiate, continue, or
resume their postsecondary education; and
"(4) a program of paying up to 75 per centum of the cost of
establishing and operating Educational Opportunity Centers
which—
" ( A ) serve areas with major concentrations of lowincome populations by providing, in coordination with other
applicable programs and services—
" (i) information with respect to financial and academic
assistance available for persons in such areas desiring
to pursue a program of postsecondary education;
" (ii) assistance to such persons in applying for admission to institutions, at which a program of postsecondary education is offered, including preparing
necessary applications for use by admission and financial
aid officers; and
"(iii) counseling services and tutorial and other necessary assistance to such persons while attending such
institutions; and
•'(B) serve as recruiting and counseling pools to coordinate
resources and staff efforts of institutions of higher education
and of other institutions offering programs of post^condary
education, in admitting educationally disadvantagea persons.
The portion of the cost of any project assisted under clause (4) in the
preceding sentence which is borne by the applicant shall represent an
increase in expenditure by such applicant for the purposes of such
project.
"(c) Enrollees who are participating on an essentially full-time
basis m one or more services being provided under this section may be
paid stipends, but not in excess of $30 per month except in exceptional
cases as determined by the Commissioner.".
(2) The amendment made by paragraph (1) shall be effective after
June 30,1972.
(c) Section 461 of the Higher Education Act of 1965 is amended by
striking out subsection (b) thereof and inserting in lieu thereof the
following:
"(b) (1) F o r the purposes of this title, except part B, the term
'institution of higher education' includes any school of nursing; and
any proprietary institution of higher education which has an agreement with the Commissioner containing such terms and conditions

"Upward
Bound.»•

"Special Servi c e s for Disadvantaged Students."

Educational Opportunity Centers.

Enrollees, stipend, limitation.

Effective date.
82 Stat. 1032;
Post, p. 272.
20 u s e 1088.
"Institution of
higher education.»»

260

PUBLIC LAW 92-318-JUNE 23, 1972

Definitions.

79 Stat. 1269;
82 Stat. 1049.
20 u s e 1141.

84 Stat. 192.
" S c h o o l or d e partment of divinity."

20 u s e 1001
note.
20
20
20
82
20

use
use
use
Stat.
use

1027.
1116.
1129.
1046.
1134j

[86

STAT.

as the Commissioner determines to be necessary to insure that the
availability of assistance to students at the school under this title has
not resulted, and will not result, in an increase in the tuition, fees, or
other charges to such students.
•'(2) For the purposes of this subsection:
" ( A ) The term 'school of nursing' means a public or other
nonprofit collegiate or associate degree school of nursing.
" ( B ) The term 'collegiate school of nursing' means a
department, division, or other administrative unit in a college oiuniversity which provides primarily or exclusively an accredited
program of education in professional nursing and allied subjects
leading to the degree of bachelor of arts, bachelor of science,
bachelor of nursing, or to an equivalent degree, or to a graduate
degree in nursing.
" ( C ) The term 'associate degree school of nursing' means a
department, division, or other administrative unit in a junior
college, community college, college, or university which provides
primarily or exclusively an accredited two-year program of
education in professional nursing and allied subjects leading to
an associate degree in nursing or to an equivalent degree.
" ( D ) The term 'accredited' when applied to any program of
nurse education means a program accredited by a recognized body
or bodies approved for such purpose by the Commissioner.
" (3) For the purposes of this subsection, the term 'proprietary institution of higher education' means a school (A) which provides not less
than a six-month program of training to prepare students for gainful
employment in a recognized occupation, (B) which meets the requirements of clauses (1) and (2) of section 1201(a), (C) which does not
meet the requirement of section clause (4) of section 1201(a), (D)
which is accredited by a nationally recognized accrediting agency or
association approved by the Commissioner for this purpose, and (E)
which has been in existence for at least two years. For purposes of this
paragraph, the Commissioner shall publish a list of nationally recognized accrediting agencies or associations which he determines to be
reliable authority as to the quality of training offered.
"(c) For the purposes of this title—
" (1) the term 'academic year' shall be defined by the Commissioner by regulations; and
" (2) the term 'in attendance', when applied to a student, means
a student who attends an institution of higher education at least
on a half-time basis, as defined by the (Xmmissioner by regulation.",
(d) (1) Section 1201 of the Higher Education Act of 1965 is amended
by adding at the end thereof the following new paragraph:
"(1) The term 'school or department of divinity' means an institution or a department or a branch of an institution the program of
instruction of which is designed for the education of students (A) to
prepare them to become ministers of religion or to enter upon some
other religious vocation (or to provide continuing training for any
such vocation), or (B) to prepare them to teach theological subjects.".
(2) The Higher Education Act of 1965 is amended oy striking out
the following provisions:
(A) The second sentence of section 113;
(B) The second sentence of section 207;
(C) The second sentence of section 526 ;
(D) The second sentence of section 609; and
( E ) The second sentence of section 923.

86

STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

261

INSURED STUDENT LOANS—EXTENSION OF PKOGRA.Ar

SEC. 132. (a) (1) The first sentence of section 424(a) of the Higher
Education Act of 1965 is amended to read as follows: "The total principal amount of new loans made and installments paid pursuant to lines
of credit (as defined in section 435) to students covered by Federal loan
insurance under this part shall not exceed $1,400,000,00<) for the fiscal
year ending June 30,1972, $1,600,000,000 for the fiscal year ending June
30, 1973, $1,800,000,000 for the fiscal year ending June 30, 1974. and
$2,000,000,000 for the fiscal year ending June 30,1975.';
(2) Such section 424(a) is further amended by striking out "June 30,
1975" and inserting in lieu thereof "June 30,1979".
(b) Paragraph (4) of section 428(a) of such Act is amended (1) by
striking out "June 30, 1971" and inserting in lieu thereof "June 30,
1975" and (2) by striking out "shall end at the close of June 30, 1975"
and inserting in lieu thereof "shall end at the close of June 30, 1979".
(c) Section 433(c) of such Act is amended by striking out "two succeeding fiscal years" and inserting in lieu thereof "succeeding fiscal
years ending prior to July 1,1975".
(d) The amendments made by this section shall be effective after
June 30,1971.

79 Stat. 1237;
$2 Stat. 1020.
20 u s e 1074.
20 u s e 1085.

20 u s e 1078.

82 Stat. 1024.
20 u s e 1083.
Effective date.

INCREASE IN LOAN LIMITATION IN EXCEPTIONAL (\\SES

SEC. 132A. (a) (1) Section 425(a) of the Higher Education Act of
1965 is amended by striking out "$1,500" and inserting in lieu thereof
the following: "$2,500, except in cases where the Commissioner determines, pursuant to regulations prescribed by him, that a higher amount
is warranted in order to carry out the purposes of this part with respect
to students engaged in specialized training requiring exceptionally
high costs of education".
(2) The second sentence of section 425(a) of such Act is amended
by inserting before the period a comma and the following: "in the case
of any student who has not successfully completed a program of undergraduate education, and $10,000 in the case of any graduate or professional student (as defined by regulations of the Commissioner and
including any loans which are insured by the Commissioner under this
part or by a State or nonprofit institution or organization with which
the Commissioner has an agreement under section 428(b) made to
such person before he became a graduate or professional student)".
(b) (1) Section 428(b) (1) (A) of such Act is amended (1) by striking out "$1,500" and inserting in lieu thereof the following: "$2,500.
except in those cases where the Commissioner determines, pursuant to
regulations prescribed by him, that a higher amount is warranted in
order to carry out the purposes of this part with respect to students
engaged in specialized training requiring exceptionally high costs of
education)".
(2) Section 428(b) (1) (a) of such Act is further amended by inserting before the semicolon the following: "in the case of any student who
has successfully completed a program of undergraduate education, and
$10,000 in the case of any graduate or professional student (as defined
by regulations of the Commissioner and including any loans which are
insured by the Commissioner under this part or by a State or nonprofit
institution or organization with which the Commissioner has an agreement under this part made to such person before he became a graduate
or professional student).".
(c) The amendments made by subsections (a) and (b) shall be
effective with respect to loans made after the enactment of this Act,

79 Stat. 1238.
20 u s e 1075.

82 Stat. 1027.

79 Stat. 1240.
20 u s e 1078.

82 Stat. 1027.

Effective date.

262

,

79 Stat. 1236.
20 u s e 1071.
Ante,

p. 261.

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

and insured by the Commissioner under p a r t B of title I V of the
Higher Education Act of 1965, or by a State or nonprofit private institution or organization with which the Commissioner has an agreement
under section 428 (b) of such part.
INSUEANCE LIABILITY

20 use lo75:

^^20 use 1080,
20 use 1077.
20 use 1080.

SEC. 132B. (a) Section 425 (b) of the Higher Education Act of 1965
is amended to read as follows:
"(b) The insurance liability on any loan insured by the Commissioner under this part shall be 100 per centum of the unpaid balance of
the principal amount of the loan plus interest. The full faith and
credit of the United States is pledged to the payment of all amounts
which may be required to be paid under the provisions of section 430
Qj^. 437 ^f ^j^jg ^ ^ ^ „ ^
(b) Section 427(a) (2) (D) of such Act is amended by striking^ out
the following: " (but without thereby increasing the insurance liability
under this p a r t ) " .
^Q-^ -j^jjg ]g^g^ sentence of section 430(a) of such Act is amended by
striking out "of the loan (otlier than interest added to principal)" and
inserting in lieu thereof the following: "and interest".
AMENDMENTS

20 use 1078.

Ante,

p. 261.

TO I N T E R E S T

SUBSIDY

PROVISIONS

SEC. 132C. (a) Section 428(a) (1) of the Higher Education Act of
2965 is amended to read as follows :
"(1) Each student who has received a loan for study at an eligible
institution—•
" ( A ) which is insured by the Commissioner under this part;
" ( B ) which was made under a State student loan program
(meeting criteria prescribed by the Commissioner), and which
was contracted for, and paid to the student, within the period
specified by paragraph (4) ; or
" ( C ) which is insured under a program of a State or of a
nonprofit private institution or organization which was contracted
for, and paid to the student, within the period specified in paragraph (4), and which—
"(i) in the case of a loan insured prior to July 1, 1967,
was made by an eligible lender and is insured under a program which meets the requirements of subparagraph ( E ) of
subsection (b) (1) and provides that repayment of such loan
shall be in installments beginning not earlier than sixty days
after the student ceases to pursue a course of study (as
described in subparagraph (D) of subsection ( b ) ( 1 ) ) at
an eligible institution, or
"(ii) in the case of a loan insured after June 30, 1967, is
insured under a program covered by an agreement made
pursuant to subsection (b),
shall be entitled to have paid on his behalf and for his account to the
holder of the loan a portion of the interest on such loan (in accordance
with paragraph (2) of this subsection) only if at the time of execution
of the note or written agreement evidencing such loan his adjusted
family income is—
" ( I ) less than $15,000 and the eligible institution at which he
has been accepted for enrollment or, in the case of a student who is
attending such an institution, at which he is in good standing (as
determined by such institution)—
" ( a ) has determined the amount of need for such loan by
subtracting from the estimated cost of his attendance at sucli

86 STAT.]

PUBLIC LAW 9 2 - 3 1 8 - J U N E 23, 1972

institution (which, for purposes of this paragraph, means the
cost, for the period for which the loan is sought, of tuition,
fees, room and board, and reasonable commuting costs) the
expected family contribution with respect to such student plus
any other resources or student aid reasonably available to such
student, and
"(/3) has provided the lender with a statement evidencing
the determination made under clause (I) (a) of this paragraph and recommending a loan in the amount of such need;
or
" ( I I ) equal to or more than $15,000 and the eligible institution
at which he has been accepted for enrollment or, in the case of a
student who is attending such an institution, at which he is in good
standing (as determined by such institution)—
" (a) has determined that he is in need of a loan to attend
such institution,
" ( ^ ) has determined the amount of such need by subtracting from the estimated cost of attendance at such institution
the expected family contribution with respect to such student
plus any other resources or student aid reasonably available to
such student, and
"(y) has provided the lender with a statement evidencing
the determination made under clause ( I I ) (/?) of this paragraph and recommending a loan in the amount of such need.
In addition, the Commissioner shall pay an administrative cost allowance in the amount established by paragraph (2) (B) of this subsection
with respect to loans to any student without regard to the borrower's
need. For the purposes of this paragraph, the adjusted family income
of a student shall be determined pursuant to regulations of the Commissioner in effect at the time of the execution of the note or written
agreement evidencing the loan. Such regulations shall provide for
taking into account such factors, including family size, as the Commissioner deems appropriate. In the absence of fraud by the lender,
such determination of the need of a student under this paragraph
shall be final insofar as it concerns the obligation of the Commissioner
to pay the holder of a loan a portion of the interest on the loan.".
(b) Section 4 2 8 ( b ) ( 1 ) ( H ) of such Act is amended to read as
j» n

263

Administrative

cost allowance,
payment.

79 stat. 1242.
20 u s e 1078.

follows:
" ( H ) provides that the benefits of the loan insurance program
will not be denied any student who has been determined (pursuant to section 428(a) (1)) to be in need of a loan except in the
case of loans made by an instrumentality of a State or eligible
institution;".
(c) Section 427(a) (1) of such Act is amended by striking out", and
(C) has provided the lender with a statement of the institution which
sets forth a schedule of the tuition and fees applicable to that student
and its estimate of the cost of board and room for such a student".
TECHNICAL

Ante, p. 262.
20 use 1077.

AMENDMENTS

SEC. 132D. Section 437 of such Act is amended to i-ead as follows:

82 stat. 1020.
20 u s e 1087.

• • R E P A Y M E N T BY T H E C O M M I S S I O N E R OF LOANS OF DECEASED OK DISABLED
BORROWERS

"SEC. 437. If a student borrower who has received a loan described
in clause ( A ) , ( B ) , or (C) of section 428(a) (1) dies or becomes permanently and totally disabled (as determined in accordance with
82-081 0 - 7 3 - 2 0

"*"'*' P- ^^2-

264

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

79 Stat. 1247;
52 Stat. 1024.
20 u s e 1084.

regulations of the Commissioner), then the Commissioner sliall discharge the borrower's liability on the loan by repaying the amount
owed on the loan.".
(b) Paragraph (1) of section 428(b) is amended (1) by striking out
"and" at the end of clause ( J ) thereof, (2) by striking out the period
at the end of clause ( K ) and inserting "•; and" in lieu thereof, and (3)
by adding at the end of such paragraph the following new clause:
" ( L ) provides that periodic installments of principal need not
be paid, but interest shall accrue and be paid during any period
(i) during'which the borrower is pursuing a full-time course of
study at an eligible institution, (ii) not in excess of three years
during which the boi'rower is a member of the Armed Forces of
the United States, (iii) not in excess of three years during which
the borrower is in service as a volunteer under the Peace Corps
Act, or (iv) not in excess of three years during which the borrower is in service as a full-time volunteer under title V I I I of the
Economic Opportunity Act of 1964."
(c) Section 428(e) of such Act is repealed.
(d) Paragraph (1) of subsection (c) of such section 428 is amended
by striking out "adjusted family income of the borrower" and inserting
in lieu thereof "the borrower's lack of need".
(e) Section 434 of such Act is amended by striking out "up to 15
per centum of their assets,".

79 Stat. 1236;
!2 Stat. 1020.
20 u s e 1071.

ELiGiBiLrrY or INSTITUTIONS
SEC. 132E. (a) P a r t B of title I V of the Higher Education Act of
1965 is amended by adding at the end thereof the following new
section:

79 Stat. 1242;
82 Stat. 1027.
20 u s e 1078.

81 Stat. 7 2 2 .
42 u s e 2 9 9 1 .
Repeal.
82 Stat. 1025.
82 Stat. 6 3 6 .
20 u s e 1078.

"ELIGIBILITY OF INSTITUTIONS
Regulations.

Audit.

Ante, p p . 2 6 1 ,
263; Supra.

List of s t a t e
a g e n c i e s , publication.

Effective d a t e .

"SEC. 438. (a) Notwithstanding any other provision of this part, the
Commissioner is authorized to prescribe such regulations as may be
necessary to provide for—
"(1) a fiscal audit of an eligible institution with regard to any
funds obtained from a student who has receiA'ed a loan insured
under this part, or insured by a State or nonprofit private institution or organization wnth which the Commissioner has an agreement imder section 428(b) ;
"(2) the establishment of reasonable standards of financial
responsibility and appropriate institutional capability for the
administration by an eligible institution of a program of student
financial aid with respect to funds obtained from a student who
has received a loan insured under this part, or insured by a State
or nonprofit private institution or organization with which the
Commissioner has an agreement under section 428 ( b ) ;
"(3) the limitation, suspension, or termination of the eligibility
under this part of any otherwise eligible institution, whenever the
Commissioner has determined, after notice and affording an
opportunity for hearing, that such institution has violated or failed
to carry out any regulation prescribed under this part.
"(b) The Commissioner shall publish a list of State agencies which
he determines to be reliable authority as to the quality of public
postsecondary vocational education in their respective States foi- the
purpose of determining eligibility for all Federal student assistance
programs.".
(b) The amendment made by subsection (a) shall be effective on
and after the sixtieth day following the enactment of this Act.

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

265

SAVINGS PROVISION

SEC. 132F. The amendments made by sections 132,132A, 132B, 132C,
and 132D, sliall not be effective with respect to any loan made after
the date of enactment of this Act, in wliole or in part, to consolidate
or convert a loan made or contracted for prior to its eti'ective date.
S T F D E N T LOAN M A R K E T I N G

ASSOCIATION

SEC. 133. (a) Part B of title I V of the Higher Education Act of
1965 is further amended by adding at the end thereof the following new
section:
" S T I ' D E N T LOAN M A R K E T I N G

^"'e, p. 264.

ASSOCIATION

"'SEC. 430. (a) The Congress hereby declares that it is the purpose of
this section to establish a Government-sponsored private corporation
Avhich will be financed by private capital and which will serve as a
secondary market and warehousing facility for insured student loans,
insured by the Connnissioner under this part or by a State or nonprofit
private institution or organization with which the Commissioner lias an
agreement under section •128(b), and which will provide liquidity for
student loan investments.
'"•(b)(1) There is hereby created a body corporate to be known as the
Student Loan Marketing Asscx-iation (hereinafter referred to as the
'Association'). The Association shall have succession until dissolved. I t
shall uiaintain its principal office in the District of Columbia and shall
be deemed, for purposes of venue in civil actions, to be a resident
thereof. Offices may be established by the Association in such other
place or places as it may deem necessai-y or approi)riate for the conduct
of its business.
"•(2) The Association, including its franchise, capital, reserves, surl)lus, mortgages, or other security holdings, and income shall be exempt
from all taxation now or hereafter imposed by any State, territory, possession. Commonwealth, or dependency of the L^nited States, or by the
District of Columbia, or by any county, municipality, or local taxing
authority, except that any i-eal property of the Association shall be subject to State, territorial, county, municipal, or local taxation to the same
extent according to its value as other real property is taxed.
''(3) There is hereby authorized to be appropriated to the Secretary
of Health, Education, and "Welfare $5,000,000 for making advances for
the purpose of helping to establish the Association. Such advances shall
he. repaid Avithin such period as the Secretary may deem to be appropriate in light of the maturity and solvency of the Association. Such
advances shall bear interest at a rate not less than (A) a rate determined
by the Secretary of the Treasury taking into consideration the current
average market yield on outstanding marketable obligations of the
I^'nited States with remaining periods to maturity comparable to the
maturity of such advances, adjusted to the nearest one-eighth of 1 per
centum, plus (B) an allowance adequate in the judgment of the Secretary to cover administrative costs and probable losses. Repayments
of such advances shall be deposited into miscellaneous recei])ts of the
Treasury.
" (c) (1) The Association shall have a Board of Directors Avhich shall
•

consist of twenty-one persons, one of Avhom shall be designated Chairman by the President.
"(2) An interim Board of Directors shall be appointed by the President, one of whom he shall designate as interim Chairman, The interim
Board shall consist of twenty-one membei'S, seven of whom shall be representative of banks or other financial institutions Avhich are insured

^"'e, pp. 26i,
EstabUshment,

Tax exemption.

Appropriation.

Advances,
^"'^'•^^'^•

^.Board of
Directors.

266

Insured student
loans, servicing.

Ante, p p . 2 6 1 ,
263, 264.
Limitation.

Nondiscrimination.

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

lenders pursuant to this section, seven of whom shall be representative
of educational institutions, and seven of whom shall be representative
of the general public. The interim Board shall arrange for an initial
offering of common and preferred stocks and take whatever other
actions are necessary to proceed with the operations of the Association.
"(3) When in the judgment of the President, sufficient common
stock of the Association has been purchased by educational institution:^
and banks or other financial institutions, the holders of common stock
which are educational institutions shall elect seven members of the
Board of Directors and the holders of common stock which are banks or
other financial institutions shall elect seven members of the Board of
Directors. The President shall appoint the remaining seven director's,
who shall be representative of the general public.
"(4) At the time the events described in paragraph (3) have
occurred, the interim Board shall turn over the affairs of the Association to the regular Board so chosen or appointed.
"(5) The directors appointed by the President shall serve at the
pleasure of the President and until their successors have been appointed
and have qualified. The remaining directors shall each be elected for a
term ending on the date of the next annual meeting of the common
stockholders of the Association, and shall serve until their successors
have been elected and have qualified. Any appointive seat on the Board
which becomes vacant shall be filled by appointment of the President.
Any elective seat on the Board which becomes vacant after the annual
election of the directors shall be filled by the Boar-d, but only for the
unexpired portion of the term.
"(6) The Board of Directors shall meet at the call of its Chairman,
but at least semiannually. The Board shall determine the general policies which shall govern the operations of the Association. The Chairman of the Board shall, with the approval of the Board, select, appoint,
and compensate qualified persons to fill the offices as may be provided
for in the bylaws, with such executive functions, powers, and duties
as may be prescribed by the bylaws or by the Board of Directors, and
such persons shall be the executive officers of the Association and shall
discharge all such executive functions, powers, and duties.
" ( d ) (1) The Association is authorized, subject to the provisions of
this section, pursuant to commitments or otherwise, to make advances
on the security of, purchase, service, sell, or otherwise deal in, at prices
and on terms and conditions determined by the Association, student
loans which are insured by the Commissioner under this part or by
a State or nonprofit private institution or organization with which the
Commissioner has an agreement under section 428 (b).
" ( 2 ) Any warehousing advance made under paragraph (1) of this
subsectiicm shall not exceed 80 per centum of the face amount of an
insured loan. The proceeds from any such advance shall be invested
in additional insured student loans.
"(e) The Association, pursuant to such criteria as the Board of
Directors may prescribe, shall make advances on security or purchase
student loans pursuant to subsection (d) only after the Association is
assured that the lender (A) does not discriminate by pattern or practice
against any particular class or category of students by requiring that,
as a condition to the receipt of a loan, the student or his family maintain a business relationship with the lender, except that this clause
shall not apply in the case of a loan made by a credit union, savings and
loan association, mutual savings bank, institution of higher education
or any other lender with less than $50,000,000 in deposits, and (B) does
not discriminate on the basis of race, sex, color, creed, or national
origin.

86

STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

" ( f ) ( 1 ) The Association shall have conmioii stock haviii«i' a par
value of $100 per share \Yhich may be issued only to lenders under this
part, pertaining to guaranteed student loans, who are qualified as
insured lenders under this part or who are eligible institutions as
defined in section 435(a) (other than an institution outside the United
States).
"(2) Each share of common stock shall be entitled to one vote with
rights of cumulative voting at all elections of directors. Voting shall be
by classes as described in subsection (c) (3).
"(3) The common stock of the Association shall be transferable
only as may be prescribed by regulations of the Secretary of Health.
Education, and Welfare, and, as to the Association, only on the books
of the Association. The Secretary of Health, Education, and Welfare
shall prescribe the maximum number of shares of common stock the
Association may issue and have outstanding at any one time.
"(4) To the extent that net income is earned and realized, subject
to subsection (g) (2), dividends may be declared on common stock by
the Board of Directors. Such dividends as may be declared by the
Board shall be paid to the holders of outstanding shares of common
stock, except that no such dividends shall be payable with respect to
any share which has been called for redemption past the effective date
of such call.
" ( g ) ( 1 ) The Association is authorized, with the approval of the
Secretary of Health, Education, and Welfare, to issue nonvoting preferred stock with a par value of $100 per share. Any preferred share
issued shall be freely transferable, except that, as to tiie Association,
it shall be transferred only on the books of the Association.
"(2) The holders of the preferred shares shall be entitled to such
rate of cumulative dividends and such shares shall be subject to such
redemption or other conversion provisions, as may be provided for
at the time of issuance. No dividends shall be payable on any share
of common stock at any time when any dividend is due on any sliare
of preferred stock and has not been paid.
"(3) In the event of any liquid'ation, dissolution, or winding up of
the Association's business, the holders of the preferred shares shall be
paid in full at par value thereof, plus all accrued dividends, before
the holders of the common shares receive any payment.
" ( h ) ( 1 ) The Association is authorized with the approval of the
Secretary of Health, Education, and Welfare and the Secretary of the
Treasury to issue and have outstanding obligations having such
maturities and bearing such rate or rates of interest as may be determined by the Association. Such obligations may be redeemable at the
option of the Association before maturity in such manner as may be
stipulated therein.
" (2) The Secretary of Health, Education, and Welfare is authorized,
prior to July 1,1982, to guarantee payment when due of principal and
interest on obligations issued by the Association in an aggregate
amount determined by the Secretary in consultation with the Secretary of the Treasury.
"(3) To enable the Secretary of Health, Education, and Welfare
to discharge his responsibilities under guarantees issued by him, he is
authorized to issue to the Secretary of the Treasury notes or other
obligations in such forms and denominations, bearing such maturities,
and subject to such terms and conditions, as may be prescribed by
the Secretary of Health, Education, and Welfare with the approval
of the Secretary of the Treasury. Such notes or other obligations shall
bear interest at a rate determined by the Secretary of the Treasury,

267
Common stock
issuance.

82 Stat. 1023.
20 u s e 1085.

Nonvoting preferred s t o c k ,
issuance.

Outstanding
obligations.

268

40 Stat. 288.
31 u s e 774.

Appropriation.

Association
powers.

Annual audit.

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

taking into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturities during the months preceding the issuance of the notes or other
obligations. The Secretary of the Treasury is authorized and directed
to purchase any notes and other obligations issued hereunder and for
that purpose he is authorized to use as a public debt transaction the
proceeds from the sale of any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which securities
may be issued under that Act, as amended, are extended to include
any purchase of such notes and obligations. The Secretary of the
Treasury may at any time sell any of the notes or other obligations
acquired by him under this subsection. All redemptions, purchases,
and sales by the Secretary of the Treasury of such notes or other
obligations shall be treated as public debt transactions of the United
States. There is authorized to be appropriated to the Secretary of
Health, Education, and Welfare such sums as may be necessary to
pay the principal and interest on the notes or obligations issued by
liim to the Secretary of the Treasury.
•' (i) The Association shall have power—
"(1) to sue and be sued, complain and defend, in its corporate
name and through its own counsel;
"(2) to adopt, alter, and use the corporate seal, which shall be
judicially noticed;
"(3) to adopt, amend, and repeal by its Board of Directors,
bylaws, rules, and regulations as may be necessary for the conduct
of its business;
"(4) to conduct its business, carry on its operations, and have
officers and exercise the power granted by this section in any State
without regard to any qualification or similar statute in any State;
" (5) to lease, purchase, or otherwise acquire, own, hold, improve.
use, or otherwise deal in and with any property, real, personal, or
mixed, or any interest therein, wherever situated;
" (6) to accept gifts or donations of services, or of property, real,
personal, or mixed, tangible or intangible, in aid of any of the
purposes of the Association;
"(7) to sell, convey, mortgage, pledge, lease, exchange, and
otherwise dispose of its property and assets;
" (8) to appoint such officers, attorneys, employees, and agents as
may be required, to determine their qualifications, to define their
duties, to fix their salaries, require bonds for them and fix the
penalty thereof; and
"(9) to enter into contracts, to execute instruments, to incur
liabilities, and to do all things as are necessary or incidental to the
proper management of its affairs and the proper conduct of its
business,
"(j) The accounts of the Association shall be audited annually.
Such audits shall be conducted in accordance with generally accepted
auditing standards by independent certified public accountants or by
independent licensed public accountants, licensed on or before December 31,1970, who are certified or licensed by a regulatory authority of a
State or other political subdivision of the United States, except that
independent public accountants licensed to practice by such regulatory
authority after December 31, 1970, and persons who, although not so
certified or licensed, meet, in the opinion of the Secretary, standards
of education and experience representative of the highest standards
prescribed by the licensing authorities of the several States which provide for the continuing licensing of public accountants and which are
prescribed by the Secretary in appropriate regulations may perform

86 STAT. ]

269

PUBLIC LAW 92-318-JUNE 23, 1972

sucli audits until December 31, 1975. A report of each such audit
shall be furnished to the Secretary of the Treasury. The audit shall
be conducted at the place or places where the accounts are normally
kept. The representatives of the Secretary shall have access to all
books, accounts, financial records, reports, files, and all other papers,
things, or property belonging to or in use by the Association and necessary to facilitate the audit, and they shall be afforded full facilities
for vei'ifying transactions with the balances or securities held by
depositaries, fiscal agents, and custodians.
" ( k ) A report of each such audit for a fiscal year shall be made by
rhe Secretary of the Treasury to the President and to the Congress not
later than six months following the close of such fiscal year. The report
shall set forth the scope of the audit and shall include a statement
(showing intercorporate relations) of assets and liabilities, capital and
>urplr.s or deficit; a statement of surplus or deficit analysis; a statement of income and expense; a statement of sources and application of
funds; and such comments and information as may be deemed necessary to keep the President and the Congress informed of the operations
and financial condition of the Association, together with such recommendations with respect thereto as the Secretary may deem advisable,
including a report of any impairment of capital or lack of sufficient
capital noted in the audit. A copy of each repor-t shall be furnished to
the Secretai'v of Health. Education, and Welfare and to the
Association.
•'* (1) All obligations issued by the Association shall be lawful investments, and may be accepted as security for all fiduciaiy, trust, and
public funds, the investment or deposit of which shall be under authority or control of the United States or of any officer or ofRcei*s thereof.
All stock and obligations issued by the Association pursuant to this
section shall be deemed to be exempt securities within the meaning of
laws administered by the Securities and Exchange Commission, to
the same extent as securities which are direct obligations of. or obligations guaranteed as to principal or interest by, the United States. The
Association shall, for the purposes of section 14(b) (2) of the Federal
Reserve Act, be deemed to be an agency of the LTnited States.
" (m) In order to furnish obligations for delivery by the Association,
the Secretary of the Treasury is authorized to prepare such obligations
in such form as the Board of Directors may approA^e, such obligations
when prepared to be held in the Treasury subject to delivei-y upon
•irder by the Association. The engraved plates, dies, bed j^ieces. and so
forth, executed in connection therewith shall remain in the custody
of the Secretary of the Treasury. The Association shall reimburse the
.Secretary of the Treasury for any expenditures made in the preparation, custody, and delivery of such obligations.
" ( n ) The Association shall, as soon as practicable after the end of
each fiscal year, transmit to the President and tlie Congress a report of
its operations and activities during each year.''.
(b) If any provision of the amendment made by subsection (a) of
this section or the application thereof to any person or circumstance
is held invalid, the validity of the remainder of the amendment, and
the application of such provisions to other i)ersons or circumstances,
shall not be affected.
(c) (1) The sixth sentence of the seventh paragraph of section 513f)
of the Revised Statutes, as amended (12 L^.S.C. 24), is amended by
inserting "or obligations or other instruments or securities of the
Student Loan Marketing Association," immediately after "or obligations, participation, or other instruments of or issued by the Federal
Xational Mortgage Association or the Government National Mortgage
Association,''.

Report to
Treasury.

Reports to
P r e s i d e n t and
Congress.

Lawful investments.

80 Stat. 825.
12 u s e 355.
Preparation and
delivery.

Reimbursement.

Report to P r e s i dent and Congress.
Separability.

270

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

(2) Section 5200 of the Revised Statutes, as amended (12 U.S.C.
84), is amended by adding at the end thereof the following new
paragraph:
"(14) Obligations of the Student Loan Marketing Association shall
not 'be subject to any limitation based upon such capital and surplus.".
(3) The first paragraph of section 5(c) of the Home Owners' Loan
82'stat! s/s'leos. M «* 1^^^ (12 U.S.C. 1464(c)), is amended by inserting "or in obli^ t i o n s or other instruments or securities of the Student Loan Marketing Association;'' in the second proviso immediately after "any
political subdivision thereof'.
(4) Section 8(8) (E) of the Federal Credit Union Act, amended (12
si^staK \'io^^'
U.S.C. 1Y57(8) ( E ) ) , is amended by inserting before the semicolon at
85 Stat. 545!
the end thereof the following: "or in obligations or other insti'uments
or securities of the Student Loan Marketing: Association''.
E X T E N S I O N OF T H E E M E R G E N C Y I N S U R E D S T U D E N T U ) A N AC"r OF 1 9()9

20us^ciV78a
Effective date.

SEC. 134. (a) Section 2 ( a ) ( 7 ) of the Emergency Insured Student
^^°^" ^^^^ ^^ ^^^^ ^^ amended by striking out "July 1. 1971'' and
inserting in lieu thereof "July 1,1974".
(^j^^ 'pj-^g amendment made bv subsection (a) shall be effective on
a n d a f t e r J u l y 1,1971.
S T A T E M E N T OF PURPOSE OF T H E WORK-STUDY PROGRAM

42us^c27'5f'
and note.

^^^' 1^^- Section 441(a) of the Higher Education Act of 1965 is
amended by striking out "from low^-income families"' and inserting in
lieu thereof "with great financial need''.
EXTENSION

83 Stat. 143.

Effective d a t e .

OF COLLEGE W O R K - S I T ' D Y

SEC. 135A. (a) Section 441(b) of the Higher Education Act of
1965 is amended by striking out the word "and" after "June 30,1970,"
and by adding after "June 30, 1971," the following: "$330,000,000 for
the fiscal year ending June 30, 1972, $360,000,000 for the fiscal year
ending June 30, 1973, $390,000,000 for the fiscal year ending June 30,
1974, and $420,000,000 for the fiscal year ending June 30, 1975,''.
(b) The amendment made bv subsection (a) shall be effective aftei'
June 30,1971.
A L L O T M E N T S FOR WORK-STUDY

8/513^*726^'*'
82 Stat! 1028,
1029.

PR(H;RAM

PROGRAM

SEC. 135B. (a) (1). The first sentence of section 442(a) of the High^^ Education Act of 1965 is amended by striking out "The remainder"
and inserting in lieu thereof "Ninety per centum of the remainder".
(2) Subsections (c), ( d ) , and (e) of such section are redesignated
as subsections ( d ) , (e), and ( f ) , respectively, and such section is
amended by inserting after subsection (b) the following new subsection :
"(c) Sums remaining after making the allotments provided for in
other provisions of this section shall be allotted among the States by
the Commissioner in accordance with equitable ciiteria established
by him which shall be designed to achieve a distribution of the sums
appropriated to carry out this part among the States which will most
effectively carry out the purpose of this part, except that where a
State's allotment under subsection (b) for a fiscal year is less than its
allotment under that subsection for the fiscal year ending June 30,
1972, before he makes any other allotments under this subsection, the
Commissioner shall allot sufficient additional sums to such State under

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

271

this sentence to make the State's allotment for that year under- subsection (b) equal to its allotment under such subsection for the fiscal
year ending June 30, 1972. Sums allotted to a State under this subsection shall be consolidated with, and become a part of, its allotment
from the same appropriation under subsection (b),*'.
WORK-STUDY

PROGRAM

SELECTION

OF

•

STUDENTS

SEC. 135C. ( a ) ( 1 ) Clause (3) (A) of section 4M(a) of the Higher
Education Act of 1965 is amended by inserting immediately after ^^82 stat. 1028,
"such institution"" the following: " (taking into consideration the actual 1029.
42 u s e 2754
tost of attendance at such institution)".
and note.
(2) The amendment made by subsection (a) shall be effective on
Effective date.
and after July 1, 1971, with respect to appropriations for fiscal years
lieginning on and after July 1,1971.
A U T H O R I Z I N G P A R T I C I P A T I O N OF H A L F - T I M E STUDENTS I N
W O R K - S T U D Y PROGRAM

SEC. 1351). Section 444(a) (3) (C) of the Higher Education Act of
1965 is amended (1) by striking out "full time" both times it appeare,
and (2) by inserting after "student at the institution" and after
'•attendance there" the following: "on at least a half-time basis".
CONDITIONS o r

AGREEMENT

SEC. 135E. (a) Section 444(a) (3) of the Higher Education Act of
1965 is amended (1) by striking out "from low-income families"' and
inserting in lieu thereof the following: "with the greatest financial
need, taking into account grant assistance provided such student from
any public or private sources", and (2) by amending clause (B) to
read as follows: " ( B ) shows evidence of academic or creative promise
and capability of maintaining good standing in such course of study
while employed under the program covered by the agreement, and".
(b) Section 444(a) of such Act is amended by striking out clause
W O R K - S I T ' D Y FOR C O M M U N I T Y SERVICE L E A R N I N G PROGRAM

SEC. 135F. P a r t C of title I V of the Higher Education Act of 1965
is amended by adding at the end thereof the following new section:
" W O R K - S T U D Y F O R C O M M U N I T Y SERVICE L E A R N I N G

42 use 2751.

PROGRAM

"SE( . 447. (a) The purpose of this section is to enable students in
(eligible institutions who are in need of additional financial support to
attend institutions of higher education, with preference given to veterans who served in the Armed Forces in Indochina or Korea after
August 5, 1964, to obtain earnings from employment which offers the
maximum potential both for effective service to the community and for
enhancement of the educational development of such students.
" ( b ) There are authorized to be appropriated $25,000,000 for the
fiscal year ending June 30,1972, and $50,000,000 each succeeding fiscal
year ending prior to July 1, 1975, to carry out this section through
local project grants, without regard to the pi-ovisions of section 442.
"(c) The (Commissioner is authorized to enter into agreements with
public or private nonprofit agencies under which the Commissioner
will make grants to such agencies to pay the compensation of students
who are employed by such agencies in jobs providing needed community services and which are of educational value.

Appropriation.
^"'®' P- 270.
Non-profit

272

102^9^*°*' ^°^^'
42 use 2754
«"^ji°te^
071
Ante, p . 271,

erwcr"^""^*^

service.

PUBLIC LAW 92-318-JUNE 23, 1972

" ( d ) An agreement entered into under subsection (c) above shall—
"(1) provide for the part-time employment of college students
in projects designed to improve community services or solve particular problems in the community;
"(2) provide assurances that preference will be given to veterans who served in the Armed Forces in Indochina or Korea
after August 5, 1964, in recruiting students in eligible institutions for jobs under this section, and that the agency, in cooperation with the institution of higher education which the student
attends, will make an effort to relate the projects performed by
students to their general academic program and to a comprehensive program for college student services to the community;
"(3) conform with the provisions of clauses (1) (A), (1) (B)
^^^ ^^^ ^^) ^^ section 444(a), and provide for the selection of
studcuts who meet the requirements of clauses (3) ( A ) , (3) (B)
^^^ (^) (C) of section 444(a); and
"(4) include such other provisions as the Commissioner shall
deem necessary or appropriate to carry out the purposes of this
section, including provisions for oversight by the institution of
higher education which the student participating in such a program attends.
" (^) ^^^ purposes of this section, the term 'community serviceincludes, but is not limited to, work in such fields as environmental
([uality, health care, education, welfare, public safety, crime prevention
and control, transportation, recreation, housing and neighborhood
improvement, rural development, conservation, beautification, and
other fields of human betterment and community improvement.".
COOPERATIVE

82 Stat. 1031.
20 u s e 1087a.

20 use 1087c.

Effective d a t e .

[86 STAT.

EDUCATION

SEC. 136. (a) (1) Section 451(a) of the Higher Education Act of
1965 is amended by striking out "the fiscal year ending June 30,1971"
and inserting in lieu thereof "each of the succeeding fiscal years ending
prior to July 1,1975".
(2) Section 451(b) of such Act is amended by striking out "two
succeeding fiscal years" and inserting in lieu thereof "succeeding fiscal
vears ending prior to July 1,1975".
(b)(1) Section 451(1)) of the Higher Education Act of 1965 is
amended by inserting after "training" the following: ", demonstration,".
^2) Section 453 of such Act is amended by inserting immediately
before "or for research" the following: "for projects demonstrating
or exploring the feasibilit}^ or value of innovative methods of cooperative education,".
(c) The amendments made by subsection (a) shall be effective after
June 30,1971.
DIRECT LOANS TO STUDENTS I N I N S T I T U T I O N S OF H I G H E R EDUCATION

83 Stat. 143.
20 u s e 4 2 1 .

Effective d a t e .

82 Stat. 1030,
^°2o use 10881089.

SEC. 137. (a) (1) Section 201 of the National Defense Education Act
of 1958, is amended by inserting "each" after "$375,000,000", and by
inserting after "June 30,1971," the following: "and for the fiscal year
ending June 30,1972,".
(2) The amendments made by paragraph (1) shall be effective after
.rune 30, 1971.
(b) Title I V of the Higher Education Act of 1965 is amended by
striking out part F . P a r t E and sections 461, 462, 463, 464, and 469
of such title I V , and all references thereto are redesignated as part F

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

and sections 491, 492, 493, 494, and 499, respectively. Such title I V is
further amended by insertina: after part D the folio wing- new parts:
•^
*=
^
*=
-^
''PART E — D I R E C T LOANS TO STIDEXTS i x IXSTITT'TTOXS OF HIGHER
EDUCATION

273

82 stat. 1031.
20 u s e 1087a.

uAPPROPRIATIOXS AUTHORIZED
"SEC. 461. (a) The Commissioner shall carry out a program of stimulating and assisting in the establishment and maintenance of funds at
institutions of higher education for the making of low-interest loans to
students in need thereof to pui^ue their courses of study in such institutions.
" ( b ) ( 1 ) For the purpose of enabling the Commissioner to make contributions to student loan funds established under this part, there are
hereby authorized to be appropriated $375,000,000 for the fiscal year
ending June 30, 1972, and $400,000,000 for the fiscal year ending June
30, 1973, and for each of the succeeding fiscal years ending prior to
July 1,1975.
"(2) I n addition there are hereby authorized to be appropriated
such sums for the fiscal year ending June 30, 1976, and each of the
three succeeding fiscal years as may be necessary to enable students
who have received loans for academic years ending prior to July i,
1975, to continue or complete courses of study.
"(c) Any sums appropriated pursuant to subsection (b) for any
fiscal year shall be available for apportionment pursuant to section
462 and for payments of Federal capital contributions therefrom to
institutions of higher education which have agreements with the Commissioner under section 463. Such Federal capital contributions and
all contributions from such institutions shall be used for the establishment, expansion, and maintenance of student loan funds.
uAPPORTIONMEXT OF APPR0PRLA.TI0XS

"SEC. 462. (a) (1) From 90 per centum of the sums appropriated
pursuant to section 461(b) (1) for any fiscal year, the Commissioner
shall apportion to each State an amount which bears the same ratio
to the amount so appropriated as the number of persons enrolled on
- ;,i . i
a full-time basis in institutions of higher education, as determined
by the Commissioner for the most recent year for which satisfactory
data are available to him, in Such State, bears to the total number
of persons so enrolled in all the States. The remainder of the sums
so appropriated shall be apportioned among the States by the Commissioner in accordance with equitable criteria which he shall establish
and which shall be designed to achieve a distribution of the sums
so appropriated among the States which will most effectively carry
out the purpose of this part, except that where any State's apportionment under the first sentence for a fiscal year is less than its allotment
under section 202(a) of the National Defense Education Act of 1958 g/stal^'ioa?^'
for the fiscal year ending June 30, 1972, before he makes any other 20 use 422.
apportionments under this sentence, the Commissioner shall apportion sufficient additional sums to such State under this sentence to
make the State's apportionment for that year under this paragraph
equal to its allotment for the fiscal year ending June 30, 1972, under
such section 202(a). Sums apportioned to a State under the preceding
sentence shall be consolidated with, and become a part of, its apportionment from the same appropriation under the first sentence of this
paragraph.

274

Application.

Limitation.

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

"(2) Any sums appropriated pursuant to section 461(b) (2) for any
fiscal year shall be apportioned among institutions of higher education
in such a. manner as tlie Commissioner determines will best accomplish
the purpose for which they were appropriated.
^ (h) (1) Any institution of higher education desiring to receive payments of Federal capital contributions from the apportionment of the
State in which it is located for any fiscal year shall make an agreement under section 463 and shall submit an application therefor to
the Commissioner, in accordance with the provisions of this part. The
Commissioner shall, from time to time, set dates before which such
institutions must file applications under this section.
"(2) The Commissioner shall pay to each applicant under this subsection which has an agreement with him under section 463, from
the amount apportioned to the State in which it is located, the amount
requested in such application. Such payment may be made in such
installments as the Commissioner determines will not result in unnecessary accumulations of capital in the student loan fund of the applicant established under its agreement under section 463.
' ' ( c ) ( 1 ) ( A ) If the total amount of Federal capital contributions
requested in the applications from a State for any fiscal year exceeds
the amount apportioned to that State, the request from each institution shall be reduced ratably.
" ( B ) I n case additional amounts become available for payments to
student loan funds in a State in which requests have been ratably
reduced under subparagraph ( A ) , such requests shall be increased
on the same basis as they were reduced, except that no request shall
be increased above the request submitted under subsection (b) (1).
"(2) If the amount of an ap^wrtionment to "a State for any fiscal
year exceeds the total amount of Federal capital contributions
requested in applications from tliat State, such excess shall be available for reapportionment from time to time on such date or dates as
the Commissioner shall fix. From the aggregate of such excess for any
dscal year, the Commissioner shall reapportion to each State in which
requests were reduced under subparagraph (A) of paragraph (1)
an amount which bears the same ratio to such aggregate as the total
amount of such reduction in that State bears to the total amount of
such reductions in all the States.
" (d) The aggregate of the amounts of Federal capital contributions
paid under this section for any fiscal year to proprietary institutions of
higher education may not exceed the amount by which the sums
appropriated pursuant to section 461(b)(1) for that fiscal year
exceed $190,000,000.
"AGREEMENTS WITH INSTITUTIONS OF HIGHER EDUCATION

"SEC. 463. (a) An agreement with any institution of higher education for the payment of Federal capital contributions under this part
shall—
" (1) provide for the establishment and maintenance of a student
loan fund for the purposes of this part;
"(2) provide for the deposit in such fund of—
" ( A ) the Federal capital contributions,
" ( B ) a capital contribution by such institution in an
amount equal to not less than one-ninth of the amount of such
Federal contributions,
" ( C ) collections of principal and interest on student loans
made from such fund,
" ( D ) charges collected pursuant to regulations under section 464(c) (1) ( G ) , and

86 STAT.]

PUBLIC LAW 9 2 - 3 1 8 - J U N E 23, 1972

" ( E ) iiiiy otJiei- earnings of the funds;
"(o) provide that such student loan fund shall be used only for—
•"(A) loans to students, in accordance with the provisions
of this part,
" ( B ) administrative expenses, as provided in subsection
^^)'
. . .
" ( C ) capital distributions, as provided m section 466, and
•'(D) costs of litigation, and other collection costs agreed
to by the Commissioner in connection with the collection of
a loan from the fund (and interest thereon) or a charge
assessed pursuant to regulations under section 461 (c) (1) ( G ) ;
"(4) provide that where a note or written agreement evidencing a loan has been in default for at least 2 years despite due diligence on the part of the institution in making collection thereon,
the institution may assign its rights under such note or agreement to the United States, without recompense, and that in that
event any sums collected on such a loan shall be deposited in the
general fund of the Treasury; and
"(5) include such other provisions as may be necessary to protect the financial interest of the United States and promote the
purposes of this part as are agreed to by the Commissioner and
the institution.
"(b) An institution which has entered into an agreement under subsection (a) shall be entitled, for each fiscal year during which it makes
student loans from a student loan fund established under such agreement, to a payment in lieu of reimbursement for its expenses in administering its student loan program under this part during such year.
Such payment shall be made in accordance with section 498.
"TERMS

OF LOAXS

"SP:C. 464. ( a ) ( 1 ) Loans from any student loan fund established
pursuant to an agreement under section 468 to any student by any
institution shall, subject to such conditions, limitations, and requirements as the Commissioner shall prescribe by regulation, be made on
such terms and conditions as the institution may determine.
"(2) The aggregate of the loans for all years made by institutions of
higher education from loan funds established pursuant to agreements
under this part may not exceed—
" (A) $10,000 in the case of any graduate or professional student
(as defined by regulations of the Commissioner, and including any
loans from such funds made to such person before he became a
graduate or professional student) ;
" ( B ) $5,000 in the case of a student who has successfully completed two years of a program of education leading to a bachelor's
degree, but who has not completed the work necessary for such a
degree (determined under regulations of the Commissioner, and
including any loans from such funds made to such pei'son before
he became such a student) ; and
" ( C ) $2,500 in the case of any other student.
"(3) Regulations of the Commissioner under paragraph (1) shall be
designed to prevent the impairment of the capital of student loan funds
to the maximum extent practicable and with a view toward the objective of enabling the student to complete his coui-se of study.
" (b) A loan from a student loan fund assisted under this par-t may be
made only to a student who—
"(1) is in need of the amount of the loan to pursue a course of
study at such institution:

/;

275

•
Post,

p . 278.

Ante, p. 272.

276

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

''('2) is capable, in the opinion of the institution, of maintaininogood standing in such course of study;
"(3) has been accepted for enrollment as an undergraduate,
graduate, or professional student in such institution, or, in the case
of a student already in attendance at such institution, is in good
standing; and
" (4) is carrying at least one-half the normal academic AA'orkload,
as determined by the institution.
Ill an}' case.in which a student has been determined to be eligible for a
loan under the preceding sentence, and such student thereafter fails to
maintain good standing, the eligibility of such student shall, upon
notice to the Commissioner, be suspended, and further payments to, or
on behalf of. such student shall not be made until such student regains
good standing.
"'(c)(1) Any agreement between an institution and a student for
:i loan from a student loan fund assisted under this part—
" ( A ) shall be evidenced by note or other written instnunent
which, except as provided in paragraph (2), provides for repayment of the principal amount of the loan, together with interest
thereon, in equal installments (or, if the borrower so requests, in
graduated periodic installments determined in accordance with
such schedules as may be approved by the Commissioner) payable
quarterly, bimonthly, or monthly, at the option of the institution,
over a period beginning nine months after the date on which the
student ceases to carry, at an institution of higher education or a
comparable institution outside the United States approved for this
purpose by the Commissioner, at least one-half the normal fulltime academic workload, and ending ten yeai-s and nine months
after such date;
" ( B ) shall include provision for acceleration of repayment of
the whole, or any part, of such loan, at the option of the borrower;
" ( C ) may provide, at the option.of the institution in accordance
with regulations of the Commissioner, that during the repayment
period of the loan, payments of principal and interest by the borrower with respect to all outstanding loans made to him from
student loan funds assisted under this part shall be at a rate equal
to not less than $30 per month;
" ( D ) shall provide that the loan shall bear interest, on the
unpaid balance of the loan, at the rate of 3 per centum per annum,
except that no interest shall accrue (i) prior to the beginning date
of repayment determined under clause (A) (i) or (ii) during any
l)eriod in which repayment is suspended bv reason of paragraph
(2);
" ( E ) unless the borrower is a minor and the note or other evidence of obligation executed by him would not, under applicable
law, create a binding obligation, shall provide that the loan shall
be made Avithout security and without endorsement;
" ( F ) shall provide that no note or evidence of obligation may
be assigned by the lender, except upon the transfer of the borroAver
to another institution participating under this part (or, if not so
participating, is eligible to do so and is approved by the Commissioner for such purpose), to such institution; and
" ( G ) may, pursuant to regulations of the Commissioner, provide
for an assessment of a charge with respect to the loan for failure of
the borrower (i) to pay all or part of an installment when it is due
or (ii) to file timely and satisfactory evidence of an entitlement of
the borrower to a deferment of repayment benefit or a cancellation
benefit provided under this part.

86

STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

" (2) (A) No repayment of principal of, or interest on, any loan from
a student loan fund assisted under this part shall be required during
any period in which the borrower—
" ( i ) is carrying at least one-half the normal full-time academic
workload at an institution of higher education or at a comparable
institution outside the United States which is approved for this
purpose by the Commissioner;
"(ii) is a member of the Armed Forces of the United States;
"(iii) is in service as a volunteer under the Peace Corps Act; or
"(iv) is in service as a volunteer under title V I I I of the
Economic Opportunity Act of 1964.
The period during which repayment may be deferred by reason of
clause (ii), (iii), or (iv) shall not exceed three years.
" ( B ) Any period during which repayment is deferred under subparagraph (A) shall not be included in computing the ten-year maximum period provided for in clause (A) of paragraph (1).
"(3) The Commissioner is authorized, when good cause is shown, to
extend, in accordance with regulations, the ten-year maximum repayment period provided for in clause (A) of paragraph (1) with respect
to individual loans.
••(4) The amount of any charge under clause (G) of paragraph (1)
shall not exceed—
" (A) in the case of a loan which is repayable in monthly installments, $1 for the first month or part of a month by which such
installment or evidence is late and $2 for each such month or part
of a month thereafter; and
" ( B ) in the case of a loan which has a bimonthly oi* quaiterly
repayment interval, $3 and $6, respectively, for each such interval
or part thereof by which such installment or evidence is late.
The institution may elect to add the amount of any such charge to the
principal amount of the loan as of the fir'st day after the day on whicli
such installment or evidence was due, or to make the amount of the
••harge payable to the institution not later than the due date of the
next installment after receipt by the borrower of notice of the assessment of the charge.
•'(d) An agreement under this part for payment of Federal capital
contributions shall include provisions designed to make loans from the
student loan fund established pursuant to such agreement reasonably
available (to the extent of the available funds in such fund) to all
eligible students in such institutions in need thereof.
"(e) I n determining, for purposes of clause (1) of subsection (b)
of this section, whether a student who is a veteran (as that term is
tletined in section 101(2) of title 38, Ignited States Code) is in need,
an institution shall not take into account the income and assets of his
parents.

277
Repayment,
deferral.

75
22
note.
81
42

Stat. 612.
u s e 2501
Stat. 722.
u s e 2991.

72 Stat. 1106.

" C A X C E L L A T I O X OF LOANS FOR CERTAIN PUBLIC SERVICE

"SEC. 465. ( a ) ( 1 ) The per centum specified in paragraph (3) of this
.subsection of the total amount of any loan made after June 30, 1972.
from a student loan fund assisted under this part shall be canceled
for each complete year of service after such date by the borrower under
circumstances described in paragraph (2).
"(2) Loans shall be canceled under paragraph (1) for service—
" (A) as a full-time teacher for service in an academic year in a
public or other nonprofit private elementary or secondary school
which is in the school district of a local educational agency which is
eligible in such year for assistance pursuant to title I of the Elementary and Secondary Education Act of 1965, and which for the

20 u s e 2 4 l a
note.

278

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

purposes of this paragraph and for that year lias been determined
by the Commissioner (pursuant to regulations and after consultation with the State educational agency of the State in which the
school is located) to be a school in which the enrollment of children
described in clause ( A ) , ( B ) , o r (C) of section 103 (a) (2) of title I
si^stat^'ray^^'
^^ '^^^ Elementary and Secondary Education Act of 1965 (using
20 use 241 c.
'^
low-income factor of $3,000) exceeds 30 per centum of the total
enrollment of that school and such determination shall not be
made with respect to more than 50 per centum of the total number
of schools in the State receiving assistance under such title I ;
" ( B ) as a full-time staif member in a preschool program carried on under section 222(a)(1) of the Economic Opportunity
8j Stat. 698;
\ c t of 1964 wliich is operated for a period which is comparable
42 use 2809.
to a full school year in the locality: Provided, That the salary of
such staff member is not more than the salary of a comparable
employee of the local educational agency, or
''(C) as a full-time teacher of handicapped children in rt public
or other nonprofit elementary or secondary school system; or
" ( D ) as a member of the Armed Forces of the United States,
for service that qualifies for special pay under section 310 of
77 Stat. 216;
title 37, L^uited States C^ode, as an area of hostilities.
"Handicapped t'or the purposes of this paragraph, the term 'handicapped children'
children."
meaus children who are mentally retarded, hard of hearing, deaf,
speech-impaired, visually handicapped, seriously emotionally disturbed, or other health-impaired children who by reason thereof
require special education.
^^Loan per cen"(3) (A) The per ceutum of a loan which shall be canceled under
paragraph (1) of this subsection is—
•'(i) in the case of service described in clause ( A ) , or ( C ) , of
paragraph (2), at the rate of 15 per centum for the first or second
year of such service, 20 per centum foi- the third or fourth year of
such service, and 30 per centum for the fifth year of such service;
"(ii) in the case of service described in clause (B) of paragraph (2) at the rate of 15 per centum for each year of such
service;
"(iii) ill the case of service described in clause (D) of paragraph (2), not to exceed a total of 50 per centum of such loan at
the rate of 12i/^ per centum for each year of qualifying service.
'• (B) If a portion of a loan is canceled under this subsection for any
year, the entire amount of interest on such loan which accrues for such
year shall be canceled.
" ( C ) Nothing in this subsection shall be construed to authorize
refunding any repayment of a loan.
"Year."
"(4) For th© purposes of this subsection^ the term 'year' where
applied to service as a teacher means academic year as defined by the
Commissioner.
" ( b ) The Commissioner shall pay to each institution for each fiscal
year an amount equal to the aggregate of the amounts of loans from
its student loan fund which are canceled pursuant to this section for
Ante, p. 273.
such year. Xone of the funds appropriated pursuant to section 461 (b)
shall be available for payments pursuant to this subsection,
"DISTRIBUTION OF ASSETS FROM STUDENT LOAN FUNDS

"SEO. 466. (a) After June 30, 1980, and not later than December 31,
1980, there shall be a capital distribution of the balance of the student
loan fund established under this part by each institution of higher
education as follows:
"(1) The Commissioner shall first be paid an amount which
bears the same ratio to the balance in such fund at the close of

86

STAT.

]

PUBLIC LAW 92-318-JUNE 23, 1972

279

June :M). IDSO. as tlie total anioiiiit of tlie Fedei'al capital contributions to such fund by the Commissioner under this part bears
to the sum of such Federal contributions and the institution's
capital contributions to such fund.
"(2) The i-emainder of such balance shall be paid to the
institution.
•'(b) After December 81, 1980, each institution with which the
(commissioner has made an agreement under this part, sliall pay to
the (Commissioner the same pi'oportionate share of amounts received
by the institution after June 30. 1974, in payment of principal and
interest on student loans made from the student loan fund established
pursuant to such agreement (whicli amount shall be determined after
deduction of any costs of litigation incurred in collection of the
principal or interest on loans from the fund and not already reimbursed
from the fund or from such payments of principal or interest), as
was determined for the Commissioner under subsection ( a ) .
.,
''(c) Upon a finding by the institution or- the Commissioner prior~
to July 1, 1980, that the liquid assets of a student loan fund established
pursuant to an agreement under this pari exceed the amount r-equired
for loans or otherwise in the foreseeable future, and upon notice to
such institution or to the Commissioner, as the case may be, ther-e shall
be, subject to such limitations as may be included in r-egulations of
the Commissioner or in such agreement, a capital distribution from
such fund. Such capital distribution shall be made as follows:
" ( 1 ) The Commissioner shall first be paid an amount which
l>ears the same ratio to the total to be distributed as the Federal
capital contributions by the Commissioner to the student loan
fund prior to such distribution bear to the sum of such Feder-al
(•apital contributions and the capital contributions to the fund
made by the institution.
"(2) The remainder of the capital distribution shall be paid to
,
v >.
the institution.",
(c) I n the case of a loan made befor-e July 1, 1972, under title II of
the National Defense Education Act of 1958 not to exceed 50 per 72 stat. i583;
centum of such loan (1) shall be canceled for- service by the borrower "20 u^c^42i.
as a full-time teacher in a public or- other nonprofit elementary
or secondary school in a State, in an institution of higher education,
. ,.,.
or in an elementary or- secondary school overseas of the Armed Forces
of the United States at the rate of 10 per centum of the total amount
of such loan for each complete academic j^ear of such service, except
that (A) such rate shall be 15 per centum for- each complete academic
year of service as a full-time teacher in a public or other nonprofit
elementary or secondary school which is in the school district of a
local educational agency which is eligible in such year for assistance
pirrsuant to title I of the Elementary and Secondary Education Act
of 1965, as amended, and which for purposes of this paragraph and 79 stat. 27;
for that year has been determined by the Commissioner (pur-suant to 80 S t a t . 1 1 9 8 .
u s e 241a
regulations and after consultation with the State educational agency n o20
te.
of the State in which the school is located) to be a school in which there
is a high concentration of students from low-income families, except
that (imless all of the schools so deter-mirred ar-e schools in which the
enrollment of children described in clause ( A ) , ( B ) , or (C) of section
i03(a) (2) of such title (using a low-income factor of $3,000) exceeds gi^stawsa^^s?.
50 per- centum of the total enrollment of the school) the Commissioner
20 use 24ic.
shall not make such deter-mination with r-espect to mor-e than 25 per
centum of the total of the public and other nonpr-ofit elementar-y and
secondar-y schools in any one State for any one year-, (B) such rate
82-081 0 - 7 3 - 2 1

280

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

shall be 15 per centum for each complete academic year of service as a
full-time teacher of handicapped children (including mentally
retarded, hard of hearing, deaf, speech impaired, visually handicapped,
/
seriously emotionally disturbed, or other health impaired children
who by reason thereof require special education) in a public or other
nonprofit elementary or secondary school system, and (C) for the
purposes of any cancellation pursuant to clause (A) or ( B ) , an additional 50 per centum of any such loan may be canceled, and (2) shall
be canceled for service by the borrower after June 30, 1970, as a
member of the Armed Forces of the United States at the rate of 121/2
per centum of the total amount of such loan for each year of consecutive service, but only if such loan was made after April 13, 1970.
(d) (1) Upon enactment of this Act, the program authorized by
part E of title I V of the Higher Education Act of 1965 as added by
Ante, p. 272. subsectiou (b) is, and shall be deemed to be, a continuation of the
program authorized by title I I of the National Defense Education
20 u*sc 42f.^' Act of 1958. I n accordance with regulations of the Commissioner,
except as provided in subsection (c), all rights, privileges, duties,
functions, and obligations under such title I I prior to the enactment
of this Act shall be deemed to be vested, as the Commissioner determines to be appropriate, under such part E. Any student loan fund
established under an agreement under such title I I shall, in accordance
with regulations, be deemed to have been established under such part
E ; and any assets of such student loan fund of any institution shall
be deemed to be the assets of a student loan fund established under an
agreement of that institution with the Commissioner under such part E.
Effective date.
(£) Upon enactmcut of this Act, title I I of the National Defense
20 use 426.
Education Act of 1958 is amended by striking out section 206.
WAIVER OF M A I N T E N A N C E

OF EFFORT R E Q U I R E M E N T S

I N CERTAIN

CASES

Ante. p. 27 2.

g^^^ -^gg^ ^^^ Sectiou 494(a) of the Higher Education Act of 1965
is amended by inserting before the period at the end thereof a comma
:
and the following: "except that under special and unusual circum- , : : • • ' stances, pursuant to regulations, the Commissioner is authorized to
''' ' ' ' '"" waive the application of any provision of such an agreement which is
required by this section."
Effective date.
(b) ^ h e amendment made by subsection (a) shall be deemed to be
effective from the date of enactment of the Higher Education Act

79 Stat. 1219.
20 u s e 1001
„Qjg

Ante, p. 27 2.

of

1965.
FURNISHING

GUIDELINES

S E C 139. P a r t F of title I V of the Higher Education Act of 1965
-g amended by adding after section 494, as added by this Act, the
following new section:
,
'
"FURNISHING

GUIDELINES

" S E C 495. Copies of all rules, regulations, guidelines, instructions,
and application forms published or promulgated pursuant to this
title shall be provided to the Committee on Labor and Public Welfare
of the Senate and the Committee on Education and Labor of the
House of Representatives at least thirty days prior to their effective
date.".

r

TRANSFER

Si^ra.

OF F U N D S B E T W E E N

PROGRAMS

SEC. 139A. (a) P a r t F of title I V of the Higher Education Act of
1965 is further amended by adding after section 495, as added by this
Act, the following new section:

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

281

" T R A X S F E R S B E T W E E N I'RCKiR.VMS

"SEC. 496. U p to 10 per centum of the allotment of an institution of
higher education for a fiscal year under section 413D or 442 of this Act, 270"'*' ^^' ^^*'
may be transferred to, and used for the purposes of, the institution's
allotment under the other section witiiin the discretion of such
institution in order to offer an arrangement of types of aid. including
institutional and State aid, which best fits the needs of each individual
student. The Commissioner shall have no control over such transfer,
except as specifically authorized, except for the collection and dissemination of information.".
(b) The amendment made by subsection (a) of this section shall Effective date.
l)ecome effective with respect to fiscal years ending after June 80, 1972.
E L I G I B I L I T Y FOR S T U D E N T ASSISTANCE

SEC. 139B. (a) Part F of title IV of the Higher Education Act of
1965 is further amended by inserting after section 496, the followingnew section:
" E L I G I B I L I T Y FOR S T U D E N T

ASSISTANCE

"SEC. 497. (a) If an institution of higher education determines, after
affording notice and opportunity for hearing to an individual attending, or employed by, such institution, that such individual has been
convicted by any court of record of any crime which was committed
after June 30, 1972, and which involved the use of (or assistance to
others in the use of) force, disruption, or the seizure of property under
control of any institution of higher education to prevent officials or
students in such institution from engaging in their duties or pursuing
their studies, and that such crime was of a serious nature and contributed to a substantial disruption of the administration of the institution with respect to which such crime Avas committed, then the
institution which such individual attends, or is employed by, shall deny
for a period of two yeare any further payment to, or for the direct benefit of, such individual under any of the programs authorized under
this title. If an institution denies an individual assistance under the
authority of the preceding sentence of this subsection, then any institution which such individual subsequently attends shall deny for the
remainder of the two-year period any further payment to, or for
the direct benefit of, such individual under any program authorized
by this title.
"(b) If an institution of higher education determines, after affording notice and opportunity for hearing to an individual attending, or
employed by, such institution, that such individual has willfully
refused to obey a lawful regulation or order of such institution after
June 30, 1972, and that such refusal was of a serious nature and contributed to a substantia] disruption of the administration of such
institution, then such institution shall deny, for a period of two
years, any further payments to, or for the direct benefit of, such
individual under any program authorized by this title.
"(c) (1) Nothing in this section shall be construed to prohibit any
institution of higher education from refusing to award, continue, or
extend any financial assistance under this title to any individual
because of any misconduct which in its judgment bears adversely on
liis fitness for such assistance.
"(2) Nothing in this section shall be construed as limiting or
prejudicing the rights and prerogatives of any institution of higher
education to institute and carry out an independent, disciplinary proceeding pursuant to existing authority, practice, and law.
.

282

PUBLIC LAW 92-318-JUNE 23, 1972

Repeal.
82 Stat. 1062.
20 u s e 1060.

[86

STAT.

"(3) Nothing in this section shall be construed to limit the freedom of any student to verbal expression of individual views or
opinions.".
(b) Effective July 1, 1972, section 504 of Public Law 90-575 is
repealed.
AFFIDAVIT OF EDUCATIONAL PURPOSE REQUIRED

Ante,

p . 281.

SEC. 139C. (a) P a r t F of title I V of the Higher Education Act of
1965 is amended by inserting after section 497 the following new
section:
" A F F I D A V I T O F EDUCATIONAL PURPOSE REQUIRED

Effective d a t e .

"SEC. 498. (a) Notwithstanding any other provision of law, no
grant, loan, or loan guarantee authorized under this title may be made
unless the student to whom the grant, loan, or loan guarantee is made
has filed with the institution of higher education which he intends to
attend, or is attending (or in the case of a loan or loan guarantee with
the lender), an affidavit stating that the money attributable to such
grant, loan, or loan guarantee will be used solely for expenses related
to attendance or continued attendance at such institution.
"(b) Nothing in this section shall be construed to invalidate any
loan guarantee made under this title.".
(b) The amendment made by subsection (a) of this section shall
become effective after the sixtieth clay after the date of enactment of
this Act.
STUDY OF T H E F I N A N C I N G OF POSTSECONDARY EDUCATION

N a t i o n a l Commission on the
Financing of
Postsecondary
Education, establishment.
Termination.

S E C 140. ( a ) ( 1 ) I t is the purpose of this section to authorize a study
of the impact of past, present, and anticipated private, local, State,
and Federal support for postsecondary education, the appropriate role
for the States in support of higher education (including the application of State law upon postsecondary educational opportunities),
alternative student assistance programs, and the potential Federal,
State, and private participation in such programs.
(2) I n order to give the States and the Nation the information
needed to assess the dimensions of, and extent of, the financial crisis
confronting the Nation's postsecondary institutions such study shall
determine the need, the desirability, the form, and the level of additional governmental and private assistance. Such study shall include
at least (A) an analysis of the existing programs of aid to institutions
of higher education, various alternative proposals presented to the
Congress to provide assistance to institutions of higher education,
as well as other viable alternatives which, in the judgment of the
Commission, merit inclusion in such a study; (B) the Costs, advantages
and disadvantages, and the extent to which each proposal would
preserv^e the diversity and independence of such institutions; and
(C) the extent to which each would advance the national goal of
making postsecondary education accessible to all individuals, including returning veterans, having the desire and ability to continue their
education.
( b ) ( 1 ) There is hereby established, as an independent agency
within the executive branch, a National Cominission on the Financing
of Postsecondary Education (referred to in this section as the
"Commission"), LTpon the submission of its final report required by
subsection (d) the Commission shall cease to exist.
(2) The Department of Health, Education, and Welfare shall provide the Commission with necessary administrative services (including
those related to budgeting, accounting, financial reporting, personnel

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

2{J3

and procurement) for Avhic'li payment shall be made in advance, or
by reimbursement, from funds of the Commission and such amounts
as may be agreed upon by the Commission and the Secretary of
Health, Education, and Welfare.
(3) The Commission shall have authority to accept in the name of
the United States, grants, gifts, or bequests of money for immediate
disbursement in furtherance of the functions of the Commission. Such
grants, gifts or bequests, after acceptance by the Commission, shall
be paid by the donor or his representative to the Treasurer of the
United States whose receipts shall be their acquittance. The Treasurer of the United States shall enter them in a special account to the
credit of the Commission for the purposes in each case specified.
(c) In conducting such a study, the Commission shall consider—
(1) the nature and causes of serious financial distress facing
institutions of postsecondary education; and
(2) alternative models for the long range solutions to the
problems of financing postsecondary education with special attention to the potential Federal, State, local, and private participation in such programs, including, at least—
(A) the assessment of previous related private and
governmental studies and their recommendations;
(B) existing State and local programs of aid to postsecondary institutions;
(C) the level of endowment, private sector support and
other incomes of postsecondary institutions and the feasibility of Federal and State income tax credits for charitable
contributions to postsecondary institutions;
(D) the level of Federal support of postsecondary institutions through such programs as research grants, and other
general and categorical programs;
(E) alternative forms of student assistance, including at
least loan programs based on income contingent lending, loan
programs which utilize fixed, graduated repayment schedules, loan programs which provide for cancellation or deferment of all or part of repayment in any given year based on
a certain level of a borrower's income; and existing student
assistance programs including those administered |>y the
Office of Education, the Social Security Administration, the
Public Health Service, the National Science Foundation, and
the Veterans Administration; and
( F ) suggested national uniform standards for determin• ; -*
ing the annual per student costs of providing postsecondary
education for students in attendance at A-arious types and
classes of institutions of higher education.
(d) No later than April 30,1973, the Commission shall make a final jent^and cor're^s^s.
report to the President and Congress on the results of the investigation
and study authorized by this section, together with such findings and
recommendations, including recommendations for legislation, as it
deems appropriate, including suggested national uniform standards
referred to in subsection ( c ) ( 2 ) ( F ) and any related recommendations
for legislation. No later than 60 days after the final report the Com- Report to Conmissioner shall make a report to the Congress commenting on the Com- ^'•^^^•
mission's suggested national uniform standards, and incorporating
his recommendations with respect to national uniform standards
together with any related recommendations for legislation.
(e) In order to carry out the provisions of this part, the Commission
is authorized to—
(1) enter into contracts with institutions of postsecondary edu- ^j^""'"'^''* authorcation and other appropriate individuals, public agencies and
private organizations;

284

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

(2) appoint and fix the compensation of such personnel as may
be necessary;
(3) employ experts and consultants in accordance with section
80 Stat .416.
3109 of title 5, United States Code;
(4) utilize, with their consent, the services, personnel, information and facilities of other Federal, State, local, and private agencies with or without reimbursement; and
(5) consult with the heads of such Federal agencies as it deems
appropriate.
(f) (1) The Commission is further authorized to conduct such hearings at such times and places as it deems appropriate for carrying
out the purposes of this section.
F e d e r a l coop(2) The heads of all Federal agencies are, to the extent not proeration.
hibited by law, directed to cooperate with the Commission in carrying
out this section.
Members.
(g) (1) The Commission shall be composed of—
(A) two members of the Senate who shall be members of the
different political parties and who shall be appointed by the President of the Senate;
'
(B) two Members of the House of Representatives who shall be
members of different political parties and who shall be appointed
• by the Speaker of the House of Eepresentatives; and
(C) not to exceed thirteen members appointed by the President
'
not later than ninety days after the date of enactment of this Act.
Such members shall be appointed from—
(i) members of State and local educational agencies;
(ii) State and local government officials;
(iii) education administrators from private and public
higher education institutions and community colleges;
(iv) teaching faculty;
•'
(v) financial experts from the private sector;
(vi) students;
(vii) the Office of Education; and
(viii) other appropriate fields.
(2) The President shall designate one of the members to serve as
Chairman and one to serve as Vice Chairman of the Commission.
(3) The majority of the members of the Commission shall constitute
a quorum, but a lesser number may conduct hearings.
(4) The terms of office of the appointive members of the Commission shall expire after submission of the final report.
Appropriation.
(h) There are hereby authorized to be appropriated $1,500,000 for
the period beginning on the date of enactment of this Act and ending
July 1, 1973, for the purpose of carrying out the provisions of this
section.
P A R T E — E D U C A T I O N PROFESSIONS DEVELorMENT
E X T E N S I O N OF A U T H O R I Z A T I O N OF APPROPRIATIONS
79 Stat. 1254;
81 Stat. 8 2 .
2 0 u s e 1091.
2 0 u s e 1101.

20 u s e 1091c,
1108,1118,
111 9a, 111 9b-2 .
Effective d a t e .

SE€. 141. (a) (1) Title V of the Higher Education Act of 1965 is
amended—
(A) in section 511(b), by striking out "for the fiscal year
ending June 30, 1971" and inserting in lieu thereof "each for the
fiscal years ending June 30, 1971, and June 30, 1972";
(B) in sections 504(b), 518(b), 528, 532, and 543, by striking
out "July 1, 1971" and inserting in lieu thereof "July 1, 1972"
in each instance.
(2) The amendments made by paragraph (1) shall be effective after
June 30,1971.

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

(b) (1) Section 501 of the Higher Education Act of 1965 is amended
!)y inserting " ( a ) " after "SEC. 501." and by adding at the end thereof
the following new subsection:
" ( b ) F o r the purpose of carrying out the provisions of this title,
there are authorized to be appropriated $200,000,000 for the fiscal year
ending June 30, 1973, $300,000,000 for the fiscal year ending June 30,
1974, and $450,000,000 for the fiscal year ending June 30, 1975, of
which—
"(1) not less than $500,000 shall be for the purposes of section
504;
"(2) not less than 25 per centum or $37,500,000, whichever i?:
greater, shall be for the purposes of subpart 1 of part B ;
"(3) not less than 5 per centum shall be for the purposes of pai-t
r.
" (4) not less than 5 per centum shall be for the purposes of part
Y).

.-

285

fo S c fo9i.

20 u s e 1091c.
20 u s e 1101.

20 use n i l .
2 0 u s e 1119.

"(5) not less than 5 per centum shall be for the purposes of part
^ .

20 u s e 1119b.

" (6) not less than 10 per centum shall be for the purposes of part
F;and
20 use in9c.
" (7) not less than 5 per centum of the amounts available for the
purposes of part C or part D shall be used for the training of
teachers for service in programs for children with limited English
speaking ability.".
(2) The amendments made by paragraph (1) shall be effective after, Effective date.
;nid only with respect to appropriations for fiscal years beginning after,
.hme30,1972.
(c) (1) Effective on and after July 1, 1972, title V of the Higher
Kducation Act of 1965 is amended by striking out the following 20 use' fo9i
provisions:
(A) Section 502(f);
20 use 1091a.
(B) Section 604(b) ;
(C) Section 511(b) and " ( a ) " where it appears after "SEC. 20 use 1101.
oil."*
(b] Section 518(b) and " ( a ) " where it appears after "SEC. 20 use iios.
518 "•
( E ) Section 528;
20 use i n s .
( F ) Section 532;
20 use 1119a.
(G) Section 543; and
20useiii9b-2
( H ) Section 555.
20 use iii9c-4.
(2) (A) (i) The caption head of section 518 of such title V is
amended to read as follows: "PROGRAM AUTHORIZED".
(ii) Such section 518 is amended by striking out "during the fiscal
year ending June 30, 1969, and the succeeding fiscal year,".
(B) Effective on and after July 1, 1972, section 519(a) of such Effective date.
title V is amended by striking out that part of the first sentence which si stat. ss.
precedes ", the Commissioner" and inserting in lieu thereof the 20 use 1109.
following: "From the amount available for grants under this subpart
for any fiscal year".
(3) Section 525(b) of such Act is amended by striking out all that ^J J'|^- ji^^' j^' ^ofollows "federally supported programs" and inserting in lieu thereof
11 period.
(4) The Department of Health, Education, and Welfare shall, ^^P°'* '° ^°"imder the authority of section 401(c) and of part C of the General ^''^^^•
Education Provisions Act, submit to the Congress an estimate of the 20 use 1221.
sums necessary to carry out section 502 of such title V.
ro^usc /o^9Ta

286

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

DELEGATION OF F U N C T I O N S OF T H E DIRECTOR OF T H E T E A C H E R CORPS

79 Stat. 1255.
20 use 1102.

,,

SEC. 142. The third sentence of such section 512 is amended by
inserting before the period at the end thereof the following: ", except
that (1) the Commissioner may delegate his functions under this subpart only to the Director, and (2) the Director and Deputy Director
shall not be given any function authorized by law other than that
granted by this subpart".

., ,,

Ante, p. 285.

81 Stat. 87.
20 use 1110.

R E T R A I N I N G OF TEACHERS A N D E M P L O Y M E N T OF TUTORS A N D
I N S T R U C T I O N A L ASSISTANTS

SEC. 143. (a) (1) Sectlou 518 of the Higher Education Act of 1965 is
amended (1) by striking out "to ( 1 ) " and inserting in lieu thereof " (1)
to", (2) by striking out "and (2) " a n d inserting in lieu thereof "(2) to",
and (3) and by adding the following before the period: ", (3) to
encourage volunteers (including high school and college students)
for service as part-time tutors or full-time instructional assistants for
educationally disadvantaged children, (4) to compensate such tutors
and instructional assistants at such rates as the Commissioner may
determine to be consistent with prevailing practices under comparable
federally supported work-study programs, and (5) to provide necessary training to teachers to enable them to teach other grades or other
subjects in which such agencies have a teacher shortage".
(2) Section 520(a) (2) of such Act is amended (A) by striking out
"and ( C ) " and inserting in lieu thereof " ( C ) programs of such agencies to employ high school and college students as tutors or instructional assistants for educationally disadvantaged children, (D)
programs of such agencies to compensate such tutors and instructional
assistants at such rates as the Commissioner may determine to be consistent with prevailing practices under comparable federally supported
work-study programs, (E) programs of such agencies to provide
necessary training to teachers to enable them to teach other grades or
other subjects in which sucli agencies have a teacher shortage, and

(F)".
82 Stat. 1039.

^3^ Sectiou 520(a) (3) of such Act is amended by
the retraining of teachers" immediately before the
end thereof.
Effective date.
(b) The amendments made by subsection (a) shall
and only wnth respect to appropriations for fiscal
after, June 30,1972.

inserting "or for
semicolon at the
be effective after,
years beginning

PROVISION FOR A D M I N I S T R A T I V E E X P E N S E S FOR OPERATION OF STAl'E P L A N

Supra.
Effective date.

SEC. 144. (a) Section 520(a) (2) of the Higher Education Act of
1965 is amended, in clause ( F ) thereof, by (1) striking out " 3 " and
inserting in lieu thereof "5", ana (2) by inserting before the semicolon:
"or, $20,000, whichever is greater".
(b) The amendments made by subsectiou (a) shall be effective after,
and only with respect to appropriations for fiscal years beginning
after, June 30,1972.
E L I M I N A T I O N OF C E I L I N G ON E X P E N D I T U R E S FOR T E A C H I N G AIDES

81 Stat. 88;
82 Stat. 103 9.
Effective date.

SEC. 145. (a) Sectiou 520(a) of the Higher Educatiou Act of 1965
-^ amended by striking out clause (5) thereof. Clauses (6) through (9)
of such section 520(a), and all references thereto, are redesignated as
clauses (5) through (8),respectively.
^|^^ rpj^g amendments made by subsection (a) shall be effective after,

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

287

and only with resi)ect to api)i'Opiiations for fiscal veais beginningafter, June 30,1972.
T R A I N I X G FOR T E A C H E R S AND AIDEKS I N RRIVATE SCHOOl^S

SEC. 1J:H. (a) Clause (5) of section 520(a) of the Hijrher Education
Act of 1965 is amended by inseiting "is teaching, or" after "because
he-'.
(b) The amendment made by subsection (a) shall be effective after,
and only with respect to appropriations for fiscal year's beginning
after, June 30,1972.

^nte, p. 286.
Effective d a t e .

F E L L O W S H I P S I N SCHOOL N U R S I X G

SEC. 146. A. Section 521 of the Higher Education Act of 1965 is
amended by insei-ting "school nursing," after "such as library science,".

79 Stat. 1258.

20 use n i l .

LMPROVINO T R A I N I N G PROGRAMS FOR T H E r J ) U C A T I 0 N OF TEACHERS
AND R E I ^ \ T E D EDUCATIONAL P E R S O N N E L

SEC. 147. ( a ) ( 1 ) Section 531(b) of the Higher Education Act of
1965 is amended by striking out the period at the end thei-eof and
inserting in lieu thereof " ; and", and by adding at the end thereof the
following new clause:
"(11) programs or projects (including cooperative arrangements or consortia between institutions of higher education, junior
and community colleges, or between such institutions and State
or local educational agencies and nonprofit education associations)
for the improvement of undergraduate programs for preparing
educational personnel, including design, development and evaluation of exemplary undergraduate training progi'ams, introduction of high quality and more effective curricula and curricular
materials, and the provision of increased opportunities for practical teaching experience for pi-ospective teachei-s in elementary
and secondary schools.".
(2) Section 531(c) of such Act is amended by striking out the "or"
at the end of clause (1) and the period at the end of clause (2), by
inserting a semicolon and "or" at the end of clause (2), and by adding
the following new clause:
"(3) projects or programs to improve undergraduate or other
programs for training educational personnel.".
(b) The amendments made by subsection (a) shall be eff'ective after,
and only w^ith respect to appropriations for fiscal years beginning
after, June 30,1972.

81 Stat. 9 1 , 820.
20 u s e 1119.

Effective d a t e .

PROGRAMS FOR TEACHERS OF M I G R A N T C H I L D R E N

SEC. 148. ( a ) ( 1 ) Section 531(b) of the Higher Education Act of
1965 is further amended by striking out the period at the end of clause
(11) and inserting in lieu thereof a semicolon and the word "and", and
by adding at the end thereof the following new clause:
"(12) programs and projects designed to meet the need for the
training of teacher's for participation in education programs for
migratory children of migratory agricultural wor-kers, including
teacher exchange programs.".
(2) Section 531 (c) of such Act is amended by striking out "or" at
the end of clause (2), and inser-ting in lieu ther-eof a semicolon and the
word "or", and by adding at the end ther-eof the following new
clause (4) :

Supra.

288

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

li^

"(4) such activities as may be necessary to carry out the purposes of clause (12) of subsection ( b ) , to the extent that such
activities are not inconsistent with the other provisions of this
part.".
Effective date.
(b) The amendments made by subsection (a) shall be effective after
J u n e 30,1972.
,.Hh •,v « -^'^

PART F—INSTRUCTIONAL EQUIPMENT

;'

EXTENSION OF AUTHORIZATION OF APPROPRIATIONS

SEC. 151. (a) Subsections (b) and (c) of section 601 of the Higher
Education Act of 1965 are each amended by striking out "two succeeding fiscal years" and inserting in lieu thereof "succeeding fiscal years
ending prior to July 1,1975".
Effective date.
(b) The amendments made by subsection (a) of this section shall be
effective after June 30,1971.

82'stf/*i'o4i^^*
2oVsc 1121.

PART G—ACADEMIC FACILITIES
TRANSFER OF THE PROVISIONS OF THE HIGHER EDUCATION FACILITIES
ACT OF

Infro^'Jli^^^20 use

716.

1963

S E C 161. (a) Title V I I of the Higher Education Act of 1965 is
i i i

1

PIT

amended to read as lollows:
"TITLE VII—COXSTRUCTIOX OF ACADEMIC F A C I L I T I E S
" P A R T A—GRANTS FOR THE CONSTRUCTION OF UNDERGRADUATE
ACADEMIC FACILITIES
"AUTHORIZATION OF APPROPRIATIONS

r,

.

>ia

"SEC. 701. (a) The Commissioner shall carry out a program of grants
to institutions of higher education for the construction of academic
facilities in accordance with this part.
" ( b ) For the purpose of making grants under this part, there are
hereby authorized to be appropriated $50,000,000, for the fiscal year
ending June 30, 1972, $200,000,000 for the fiscal year ending June 30,
1973, and $300,000,000 for each of the fiscal years ending June 30,1974,
and June 30,1975.
"(c) Of the sums appropriated pursuant to section 701(b), 24 per
centum shall be reserved by the Commissioner and allotted among the
States under section 702. The remainder of such sums shall be available
for allotment among the States under section 703.
"PUBLIC COMMUNITY COLLEGES AND PUBLIC TECHNICAL INSTITUTES

:v,, ;t.a

"SEC. 702. (a) Sums reserved pursuant to the first sentence of section
701(c) shall be available for allotments to States for providing academic facilities for public community colleges and public technical
institutes.
State allotments, "(jj) From the sums available for any fiscal year for the purposes
of this section, the Commissioner shall allot to each State an amount
which bears the same ratio to such sums as the product of—
"(1) the number of high school graduates of the State, and
" (2) the State's allotment ratio,

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

289

bears to the sum of the corresponding products for all the States. The
amount allotted to any State under the preceding sentence for any
fiscal year which is less than $50,000 shall be increased to $50,000, the
total of increases thereby required being derived by proportionately
reducing the amount allotted to each of the remaining States under
the preceding sentence, but with such adjustments as may be necessary
to prevent tne allotment of any such remaining States from being
thereby reduced to less than $50,000.
., ^^.,.
" ( c ) ( 1 ) From the sums available for any fiscal year for amount
allotted to a State under this section shall be available for the payment of the Federal share of the development cost of approved projects
for the construction of academic facilities within such State for public
community colleges and public technical institutes.
"(2) Any portion of a State's allotment under this section for any
fiscal year for which applications from an institution qualified to
receive grants under this section have not been received prior to
Januai-y 1 of such fiscal year by the State Commission created or designated pursuant to section 1202 shall, if the State Commission so go's !l^ 10^2^°'
requests, be available for payment of the Federal share of the develop- 20 use 114*2.
ment cost of approved projects under section 703.
" (d) All amounts allotted under this section for any fiscal year which Reaiiotment.
are not reserved as provided in section 701(c) by the close of the fiscal
year for which they are allotted shall "be reallotted by the Commissioner, on the basis of such factors as he determines to be equitable
and reasonable, among the States which, as determined by the Commissioner, are able to use w^ithout delay any amounts so reallotted for the
purpose set forth in subsection (c) (1). Amounts reallotted under this
subsection shall be available for reservation until the close of the fiscal
year next succeeding the fiscal year for w^hich they were originally
allotted.
"(e) For the purposes of clause (2) of subsection ( b ) , the 'allotment j.^^!"^"""™*"*
ratio' for any State shall be 1.00 less the product of (A) 0.50 and (B)
the quotient obtained by dividing the income per person for the State
by the income per person for all the States (not including Puerto Rico,
the Virgin Islands, American Samoa, the Trust Territory of the
Pacific Islands, and Guam), except that (i) the allotment ratio shall
in no case be less than 0.331/^ or more than 0.66%, (ii) the allotment
ratio for Puerto Rico, the Virgin Islands, American Samoa, the Trust
Territory of the Pacific Islands, and Guam shall be 0.66%, and (iii)
the allotment ratio of any State shall be 0.50 for any fiscal year if
the Commissioner finds that the cost of school construction in such
State exceeds twice the median of such costs in all the States as determined by him on the basis of statistics and data as the Commissioner
shall deem adequate and appropriate. The allotment ratios shall be
iiSTtoa: .w
promulgated by the Commissioner as soon as possible after June 30,
1972, and annually thereafter, on the basis of the average of the incomes
per person of the State and of all the States for the three most recent
consecutive calendar years for which satisfactory data are available
from the Department of Commerce.
"(f) For the purpose of this section, the term 'high school graduate' "High school
means a person who has received formal recognition (by diploma, 8»^aduate."
certificate, or similar means) from an approved school for successful
completion of four years of education beyond the first eight years of
school work, or for demonstration of equivalent achievement. For the
purposes of this section the number of high school graduates shall be
limited to the number who graduated in the most recent school year
for which satisfactory data are available from the Department of
Health, Education, and Welfare, The interpretation of the definition of 'high school graduate' shall fall within the authority of the
Commissioner.

290

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

"IXSTITI TIONS OF HIGHER EDUCATION OTHER THAN PUBLIC C03IMUN1TY
COLLEGES AND PUBLIC TECHNICAL INSTITUTES

State allotments.

Limitation.

Reallotment.

"SEC. 703. (a) Sums appropriated pursuant to section 701 (b) which
remain after the reservation provided for in the first sentence of section 701(c) for any fiscal year shall be available for allotments to
States for providing academic facilities for institutions of higher
education other than institutions eligible for grants under section 702.
" ( b ) Sums available for the purposes of this section for any fiscal
year shall be allotted among the States as follows:
"(1) The Commissioner shall allot to each State an amount
which bears the same ratio to 50 per centum of such sums as the
number of students enrolled in institutions of higher education
in such States bears to the number of students so enrolled in all
the States; and
"(2) The Commissioner shall allot to each State an amount
which beai-s the same ratio to 50 per centum of such sums as the
number of students enrolled in grades nine thi'ough twelve (both
inclusive) of schools in such State bears to the total number of
students so enrolled in all the States, For the purposes of this
subsection (A) the number- of students enrolled in institutions
of higher education shall be deemed to be equal to the sum of
(i) the number of full-time students and (ii) the full-time equivalent of the number of part-time students as determined by the
Commissioner in accordance with regulations; and (B) determinations as to enrollment under either clause (1) or clause (2)
shall be made by the Commissioner on the basis of data for the
most recent year for which satisfactory data with respect to such
enrollment are available to him.
The amount allotted to any State under the preceding sentence for
any fiscal yeai- shall not be less than $50,00().
"(c) (1) Any amount allotted to a State under this section for any
fiscal year shall, except as provided in paragraph (2), be available,
in accordance with the provisions of this title, for payment of the
Federal share of the development cost of approved projects for the
construction of academic facilities within such State for institutions
of higher education which are not eligible for grants under section 702.
"(2) Any portion of a State's allotment under this section for any
fiscal year for which applications from an institution qualified to
receive grants under this section have not been received by the State
Commission prior to January 1 of such fiscal year, shall, if the State
Commission so requests, be available for- payment of the Federal shai*e
of the development cost of approved projects under section 702,
" ( d ) All amounts allotted under this section for any fiscal year,
which are not reserved by the close of the fiscal year for which they are
allotted, shall be reallotted by the Commissioner, on the basis of such
factors as he determines to be equitable and reasonable, among the
States which, as determined by the Commissioner, are able to use
without delay any amounts so reallotted for the purposes of this section. Amounts reallotted under this subsection shall be available for
reservation until the close of the fiscal year- next succeeding the fiscal
year for which they were or-iginally allotted.
"STATE PLANS

"SEC. 704. (a) Any State desiring to participate in the grant i^rogram authorized by this part for any fiscal year shall submit for that
year to the Commissioner through the State Commission a State plan
for such participation. Such plan shall be submitted at such time, in

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

291

such manner, and containing such information as may be necessary to
enable the Commissioner to carry out his functions under this part
and shall—
"(1) provide that it shall be administered by the State Commission ;
"(2) set forth objective standards and methods which are consistent with basic criteria prescribed by regulations pursuant to
section 706, for—
" ( A ) determining the relative priorities of eligible projects submitted by institutions of higher education within the
State for the construction of academic facilities, and
" ( B ) determining the Federal share of the development
cost of each such project;
"(3) provide that the funds apportioned for any fiscal year
under section 702 or 703 shall be used only for the purposes set
forth therein;
"(4) provide for—
" ( A ) assigning priorities solely on the basis of such criteria, standards, and methods to eligible projects submitted to
the State Commission and found by it otherwise approvable
under the provisions of this part, and
" ( B ) approving and recommending to the Commissioner,
in the order of such priority, applications covering such eligible projects, and for cei-tifying to the Commissioner the
Federal share of the development cost of the project involved;
"(5) provide for affording to every applicant Avhich has submitted a project to the State Commission an opportunity for a fair
heai'ing before the State Commission as to the priority assigned
to such project, or as to any other determination of the State
Commission adversely affecting such applicant; and
"(6) provide for—
" ( A ) sucli fiscal control and fund accounting procedures as
may be necessary to assure proper disbursement of, and
accounting for. Federal funds paid to the State Commission
under this part, and
" ( B ) making such reports, in such form and containing
such information, as may be reasonably necessary to enable the
Commissioner to perform his functions under this part.
"(b) The Commissioner shall approve any State plan submitted
under this section if lie determines that it complies with the provisions
of thissection and otlier appropriate provisions of this title.
"ELIGIBILITY FOK GRANTS

"SEC. 705. (a) Except as is provided in subsection ( b ) , an institution
of higher education shall be eligible for a grant under this part only if
the State Commission determines, in accoi'dance with criteria prescribed by regulation, that the construction project for which assistance is sought will, either alone or together with otlier constniction
to be undertaken within a reasonable time, result in—
" (1) a substantial expansion of, or
" (2) in the case of a new institution, the creation of,
urgently needed (A) enrollment capacity, (B) the capacity to provide
health care for students and institutional pereonnel, or (C) capacity
to carry out extension and continuing education programs on the
campus of such institution.
"(b) If the Commissioner determines, in accordance with criteria
established by regulation, that the student enrollment capacity of an
institution of higher education would decrease if an urgently needed

'-''*' '

"^

292

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

academic facility is not constructed, the construction of such a facility
may be considei-ed, for the purposes of this section, to result in an
expansion of the institution's student enrollment capacity.
aBASIC CRITERIA FOR DETERMINING PRIORITIES A N D FEDERAL SHARE

Limitation.
80 Stat. 383.

"SEC. 706. (a) (1) The Commissioner shall, by regulation, prescribe
basic criteria to which the provisions of State plans, setting forth
standards and methods for determining relative priorities of eligible
construction projects, and the application of such standards and methods to such projects under such plans, shall be subject.
"(2) Such basic criteria shall, at least^—
" (A) be such as will best tend to achieve the objectives of this
part, while leaving opportunity and flexibility to State Commissions for the development of State plan standards and methods
that will best accommodate the varied needs of institutions in the
several States;
" ( B ) give special consideration to the expansion of undergraduate enrollment capacity; and
" ( C ) give consideration to the expansion of capacity to provide
needed health care to students and institutional personnel.
"(3) Subject to paragraph (2), such regulations may establish additional and appropriate basic criteriaj including—
" ( A ) provision for considering the degree to which applicant
institutions are effectively utilizing existing facilities;
" ( B ) provision for allowing State plans to group, or to allow
grouping, in a reasonable manner, facilities or institutions according to functional or educational type for priority purposes; and
" ( C ) in view of the national objectives of this title, provision
for considering the degree to which applicant institutions serve
students from two or more States or from outside the United
States.
"(4) In no event shall such basic criteria permit the readiness of
an institution to admit out-of-State students to be considered as a
priority adverse to such institution.
" ( b ) ( 1 ) The Commissioner shall prescribe, by regulation, the base
criteria for determining the Federal share of the development cost of
any eligible project under this part within a State, to which criteria
the applicable standards and methods set forth in the State plan for
such State shall conform.
" (2) I n uo case shall such basic criteria permit the Federal share to
exceed 50 per centum of the development cost of a project,
"(c) Section 653 of title 5, United States Code, shall apply to the
prescription of regulations under this section, notwithstanding clause
(2) of subsection (a) thereof.
"APrLICAlTONS FOR (JRANTS; AMOIN'J' OK (J){.\NJ'S

"SEC. 707. (a) (1) Any institution of higher education which desires
to receive a grant under this part shall submit an application therefor
at such time or times, in such manner, and containing such information
as the Commissioner shall prescribe by regulation.
"(2) The Commissioner shall approve an application for a con.«;truction project under this part if he determines that—
" ( A ) it meets the requirements prescribed under paragraph ( 1 ) ;
" ( B ) the project for which assistance is sought is an eligible
]iroject under section 705;

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

293

" ( C ) such project has been submitted through, and been
approved and recommended by, the appropriate State Commission;
" ( D ) such State Commission has certified to the Commissioner,
in accordance with the State plan, the Federal share of the development cost of the project, and sufficient funds to pay such Federal
share are available from the applicable apportionment of the
State;
" ( E ) suchprojecthas, pursuant to the State plan, been assigned
a priority that is higher than that assigned to all other projects
within the State which are chargeable to the same apportionment, and meet the requirements of this section, and for which
Federal funds have not yet been reserved;
" ( F ) the construction to be carried out under the application
will be undertaken in a timely and economic manner and will not
be of elaborate or extravagant design or materials;
" (G) in the case of a student health care facility, no assistance
will be provided for such facility under title I V of the Housing
Act of 1950; and
64 stat. 77.
" ( H ) the application contains assurances or is supported by 174^9 noti.'"**'
satisfactory assurances—
" ( i ) that title to the site is in accordance with regulations
of the Commissioner relating thereto,
"(ii) that Federal funds received by the applicant will be
solely used for defraying the development cost of the project
covered by the apj)lication,
" (iii) that sufficient funds will be available to meet the nonFederal portion of such cost and to provide for the effective
use of the academic facility upon completion, and
' '* '**"' "'•
"(iv) that the facility will be used as an academic facility
for at least the period of the Federal interest therein, as provided in section 781.
Post. p. 300.
" (b) Amendments to applications submitted under this section shall,
except as the Commissioner may otherwise provide by regulations, be
subject to approval in the same manner as original applications.
" ( c ) ( 1 ) Upon his approval of any application under this section, the
Commissioner shall reserve from the applicable allotment available
therefor, the amount of such grant, which shall be equal to the Federal
share of the development cost of the project covered by the application.
The Commissioner shall pay such reserved amount, in advance or by
way of reimbursement, and in such installments consistent with construction progress, as he may determine.
"(2) Upon approval of an amendment of an application, or revision
of the estimated development cost of a project, for which there has been
a reservation made under paragraph (1), the Commissioner may adjust
the amount so reserved, accordingly. I f an adjustment under the first
sentence of this paragraph results in a greater amount being reserved,
he may reserve the Federal share of the added cost only from the
ajjplicable allotment available at the time of such approval.
"ADMINISTRATION or STATE PLANS; JUDICIAL REVIEW

"SEC. 708. ( a ) ( 1 ) The Commissioner shall not finally disapprove
any State plan submitted under this part, or any modification thereof,
without first affording the State Commission submitting the plan reasonable notice and opportunity for a hearing.
"(2) Whenever the Commissioner, after reasonable notice and
opportunity for hearing to the State Commission administering a
State plan approved under this part, finds—

294

62 Stat. 928.

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

" ( A ) that the State plan has been so changed that it no longer
complies with the provisions of section 704, or
" ( B ) that in the administration of the plan there is a failure
to comply substantially with any such provision,
the Commissioner shall notify such State Commission that the State
will not be regarded as eligible to participate in the program under
this part until he is satisfied that there is no longer any such failure to
comply.
" ( b ) ( 1 ) If any State is dissatisfied with the Commissioner's final
action with respect to the approval of its State plan submitted under
section 704, or with his final action under subsection ( a ) , such State
may appeal to the United States court of appeals for the circuit in
Avhich such State is located. The summons and notice of appeal may
be served at any place in the United States. The Commissioner shall
forthwith certify and file in the court the transcript of the proceedings
and the record on which he based his action.
"(2) The findings of fact by the Commissioner if supported by substantial evidence, shall be conclusive; but the court, for good cause
shown, may remand the case to the Commissioner to take further evidence, and the Commissioner may thereupon make new or modified
findings of fact and may modify his previous action, and shall certify
to the court the transcript and record of the further proceedings. Such
new or modified findings of fact shall likewise be conclusive if supported by substantial evidence.
" (3) The court shall have jurisdiction to affirm the action of the Commissioner or to set it aside, in whole or in part. The judgment of the
court shall be subject to review by the Supreme Court of the United
States upon certiorari or certification as provided in title 28, United
^^^ates Code, section 1254.
" P A R T B — G R A N T S FOR CONSTRUCTION OF GRADUATE ACADEMIC
FACILITIES
a AUTHORIZATION

"SEC. 721. (a) The Commissioner shall carry out a program of making grants to institutions of higher education to assist them in improving existing graduate schools and cooperative graduate centers, and in
establishing graduate schools and cooperative graduate centers of
excellence, in order to increase the supply of highly qualified personnel
needed by communities, industries, and governments and for teaching
and research.
"(b) For the purpose of making grants under this part, there are
authorized to be appropriated $20,000,000 for the fiscal year ending
June 80, 1972, $40,000,000 for the fiscal year ending June 30, 1973,
$60,000,000 for the fiscal year ending June 30, 1974, and $80,000,000
for the fiscal year ending June 30, 1975.
"APPLICATION FOR, AND AMOUNT OF, GRANTS

"SEC. 722. (a) (1) Any institution of higher education desiring to
receive a grant under this part shall submit an application therefor at
such time, in such manner, and containing such information as the
Commissioner may require.
"(2) I n determining whether to approve applications under this
section, the order in which to approve such applications, and the
amount of grants, the Commissioner shall give consideration to the
extent to which the projects for which assistance is sought will contribute toward achieving the objectives of this part, and the extent to

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

which they will aid in attaining a wider distribution of graduate
schools and cooperative graduate centers throughout the States. I n
no case shall the total of the payments from appropriations for any
fiscal year pursuant to section 721 made with respect to projects in
any State exceed an amount equal to 121/^ per centum of such appropriations.
" (3) F o r the purposes of this section, the term 'institution of higher
education' includes cooperative graduate center boards.
" ( b ) The Commissioner shall not approve any application under
this section until he has obtained the advice and recommendations of
a panel of specialists who are not regular full-time employees of the
Federal Government and who are competent to evaluate such
application.
"(c) No grant under this part may be in an amount in excess of 50
per centum of the development cost of the project covered by the
application.

295

" I n s t i t u t i o n of
higher education.'

Limitation.

" P A R T C — L O A X S FOR CONSTRUCTIOX OF ACADEMIC FACILITIES
"AUTHORIZATIOX

"SEC. 741. (a) (1) The Commissioner shall carry out a program of
making and insuring loans, in accordance with the provisions of this
part.
"(2) The Commissioner is authorized to make loans to institutions
of higher education and to higher education building agencies for the
construction of academic facilities and to insure loans.
" ( b ) F o r the purpose of making payments into the fund established
under section 744, there are hereby authorized to be appropriated
$50,000,000 for the fiscal year ending June 30, 1972, $100,000,000 for
the fiscal year ending June 30, 1973, $150,000,000 for the fiscal year
ending June 30,1974, and $200,000,000 for the jfiscal year ending June
30, 1975. Sums appropriated pursuant to this subsection for any fiscal
year shall be available without fiscal year limitations.
" E L I G I B I L I T Y C O N D I T I O N S , A M O U N T S , A N D T E R M S OF LOAXS

"SEC. 742. (a) No loan pursuant to this part shall be made unless the
Commissioner finds (1) that not less than 20 per centum of the development cost of the facility will be financed from non-Federal sources, (2)
that the applicant is unable to secure the amount of such loan from
other sources upon terms and conditions equally as favorable as the
terms and conditions applicable to loans under this part, (3) that the
construction will be undertaken in an economical manner and that it
will not be of elaborate or extravagant design or materials, and (4)
that, in the case of a project to construct an infirmary or other facility
designed to provide primarily for outpatient care of students and
institutional personnel, no financial assistance will be provided such
project under title I V of the Housing Act of 1950.
" ( b ) A loan pursuant to this part shall be secured in such manner
and shall be repaid within such period not exceeding fifty years, as may
be determined by the Commissioner; and it shall bear interest at (1) a
rate determined by the Commissioner which shall not be less than a per
annum rate that is one-quarter of 1 percentage point above the average
annual interest rate on all interest-bearing obligations of the United
States forming a part of the public debt as computed at the end of the
preceding fiscal year, adjusted to the nearest one-eighth of X per centum, or (2) the rate of 3 per centum per annum, whichever is the lesser.

82-081 O - 73 - 22

64 Stat. 77.
12 u s e prec.
174 9 note.

296

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

''•GP:XERAL PROVISIOX FOR LOAX TROGRAM

acfioM^ ''""*

Rules and
regulations.

''**''"

^^80 Stat. 612,
62 Stat. 984;
75 Stat. 53 9;
80 tat. 307.

,;>
Posf, p. 3 01.

"SEC. 743. (a) Financial transactions of the Commissioner under this
part, except with respect to administrative expenses, shall be final and
conclusive on all officers of the Government and shall not be reviewable
by any court.
"(b) I n the performance of, and with respect to, the functions,
powers, and duties vested in him by this part, the Connnissioner may—
"(1) prescHbe such rules and regulations as may be necessai-y
^^ carry out the purposes of this part;
"(2) sue and be sued in any court of record of a State having
general jurisdiction or in any district court of the I'^nited 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 subsection by or
against the Commissioner shall survive notwithstanding any
change in the person occupying the office of the Commissioner or
any vacancy in such office; but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued
against the Commissioner or property under his control, and nothing herein shall be construed to except litigation arising out of
activities under this part from the application of sections 507(b)
and 517 and 2679 of title 28, United States Code:
"(3) forcclose ou ally property or commence any action to protect Or euforce any right conferred upon him by any law, contract,
Qj, other agreement, and bid for and purchase at any foreclosure
or any other sale any property in connection with which he has
made a loan pursuant to this p a r t ; and, in the event of any such
acquisition (and notwithstanding any other provisions of law
relating to the ac(iuisition, handling, or disposal of real property
hj the United States), complete, administer, remodel and convert,
dispose of, lease, and otherwise deal with, such property; except
that (1) such action shall not preclude any other action by him
to recover anv deficiency in the amounts loaned and (2) any such
acquisition of real property shall not deprive any State or political
subdivision thereof of its civil or criminal jurisdiction in and
over such property or impair the civil rights under the State or
, local laws of the inhabitants on such property;
"(4) sell or exchange at public or private sale, or lease, real or
personal property, and sell or exchange any securities or obligations, upon such terms as he may fix;
"(5) subject to the specific limitations in tliis part, consent to
the modification, with respect to the rate of interest, time of payment of any installment of principal or interest, security, or any
other term of any contract or agreement to which he is a party or
which has been transferred to him pursuant to this section; and
"(6) include in any contract or instrument made pursuant to
this part such other covenants, conditions, or provisions (including provisions designed to assure against use of the facility,
constructed with the aid of a loan under this part, for purposes
described in section 782(1)), as he may deem necessary to assure
that the purpose of this part will be achieved.
" R E V O L V I X G L O A N F U N D A N D INSURAX^CE FUND

"SEC. 744. (a) There is hereby created within the Treasury a separate fund for higher education academic facilities loans and loan
insurance (hereafter in this section called the 'fund') which shall be
available to the Commissioner without fiscal year limitation as a

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

fevolving fund for the purposes of making loans and insuring loans
• • ' '
under this i^art. The total of any loans made from the fund in any
fiscal year- shall not exceed limitations specified in appropriation
acts.
" ( ' b ) ( l ) The Commissioner shall transfer to the fund available
appropriations provided under section 741(b) to provide capital for
the fund. All amounts received by the Commissioner as interest payments or repayments of principal on loans, and any other moneys,
property, or assets derived by him from his operations in connection
with this part, including any moneys derived directly or indirexjtly
from the sale of assets, or beneficial interests or participations in assets
of the fund, shall be deposited in the fund.
"(2) All loans, expenses, and payments pursuant to operations of
the Commissioner mider this part shall be paid from the fund, including (but not limited to) expenses and payments of the Commissioner
in connection with sale, under section 302(c) of the Federal National
Moi'tgage Association Charter Act, of participations in obligations ^s stat. soo;
acquired under this part. From time to time, and at least at the close of *'\2'usc ni7.
each fiscal year, the Commissioner' shall pay from the fund into the interest payTreasury as miscellaneous receipts interest on the cumulative amount '"*"'*•
of appropriations paid out for loans imder this part or available as
capital to the fund, less the avei-age undisbursed cash balance in the
fund duT'ing the year. The I'ate of such interest shall be detei-mined by
the Secretary of the Treasury, taking into consideration the average
market yield during the month preceding each fiscal year on outstanding Treasury obligations of maturity comparable to the average
inaturitv of loans macle from the fund. Interest payments may be Deferral.
deferred with the approval of the Secretary of the Treasury, but any
interest payments so deferred shall themselves beai- interest. If at any
time the Commissionei' determines that moneys in the fund exceed the
present and any reasonably prospective future requirements of the
fund, such excess may be transferred to the genei'al fund of the
Treasury.
•' • '

"ANNUAL INTEREST GRANTS

•'SEC. 745. (a) To assist institutions of higher education and higheieducation building agencies to reduce the cost of borrowing from other
sources for the construction of academic facilities, the Commissioner
may make annual interest grants to such institutions and agencies.
''(b) Annual interest grants to an institution of higher education or
higher education building agency with respect to any academic facility
shall be made over a fixed period not exceeding forty years, and provision for such grants shall be embodied in a contract guaranteeing their
payment over such period. Each such grant shall be in an amount
not gi-eater than the difference between (1) the average annual debt
service which would be required to be paid, during the life of the loan,
on the amount borrowed from other sources for the construction of
such facilities, and (2) the average annual debt service which the
institution would have been req^uired to pay, during the life of the loan,
with respect to such amounts if the applicable interest rate were the
luaxinium rate specified in section 744(b) (2). The amount on which
such grant is based shall be approved by the Secretary.
" ( c ) ( 1 ) There are hei'eby authorized to be appropriated to the Commissioner such sums as may be necessary for the payment of annual
interest grants to institutions of higher education and higher education building agencies in accordance with this section.

Appropriation.

298

PUBLIC LAW 92-318-JUNE 23, 1972

Limitations.

••'"•'-

ft< ahr^ii .q4

[86 STAT.

" (^) CoiitrHcts foi' Huiiual interest g-rants under this section shall not
be entered into in an aggregate amount greater than is authorized in
appropriation Acts; and in any event the total amount of annual
interest gi-ants which may be paid to institutions of higher education
and higher education building agencies in any year pursuant to contracts entered into under this section shall not exceed $5,0(K),()()()
which amount shall be increased by $6,750,(X)() on July 1, 19B9, and by
$13,50(),()()() on July 1. 1970 and on July 1 of each of the four succeeding yeai'S.
' ( d ) Not more than 121/^ per centum of the funds provided for in
this section for grants may he used within any one State.
'' (e) No annual interest grant pursuant to this section shall be made
unless the (Commissioner finds (1) that not less than 10 per centum of
the development costs of the facility will be financed from non-Federal
sourcies, (2) that the applicant is unable to secure a loan in the amount
of the loan with respect to which the annual interest grant is to be
made, fix>m other sources upon terms and conditions equally as favorable as the terms and conditions applicable to loans under this title,
and (3) that the construction will be undertaken in an economical
manner and that it will not be of ela;borat« or extravagant design or
materials. For purposes of this section, a loan with respect to which an
interest grant is made under this section shall not be considered financing from a non-Federal source. For purposes of the other provisions
of this title, such a loan shall be considered financing from a nonFederal source.
"ACADKMIC

FACILITIES LOAN

IXSFKAIfCE

"SEC. 746. (a) (1) I n order to assist nonprofit pr-ivate institutions of
higher education and nonprofit private higher education building
agencies to procure loans for the construction of academic facilities,
the Commissioner may insure the payment of interest and principal
on such loans if such institutions and agencies meet, with respect to
such loans, critei'ia prescribed by or under section 745 for the making
of annual interest grants under such section.
''(2) No loan insurance under paragraph (1) may apply to so much
of the principal amount of any loan as exceeds 90 per centum of the
development cost of the academic facility with respect to which such
loan was made.
' ' ( b ) ( 1 ) The United States shall be entitled to recover from any
institution or agency to which loan insurance has been issued under
this sect'on the amount of any payment made pursuant to that
insurance, unless the Commissioner for good cause waives its right of
recovery. T^'^pon making any such payment, the Ignited States shall be
subrogated to all of the rights of the recipient of the payment with
respect to which the payment was made.
"(2) Any insurance issued by the Commissioner pursuant to subsection (a) shall be incontestable in the hands of the institution or
agency on whose behalf such insurance is issued, and as to any agency,
organization, or individual who makes or contracts to make a loan
to such institution or agency in reliance thereon, except for fraud or
misrepresentation on the part of such institution or agency or on the
pai-t of the agency, oi-ganization. or individual who makes or- contracts
to make such loan.
"(c) Insurance may be issued by the Conunissioner under subsection
(a) only if he determines that the terms, conditions, maturity, security
(if any), and schedule and amounts of repayments with respect to
the loan are sufficient to protect the financial interests of the ITnited
States and are othei'wise reasonable and in accord with regulations,

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

299

including a determination that the rate of interest does not exceed such
per centum per annum on the principal obligation outstanding as the
Commissioner determines to be reasonable, taking into account the
range of interest rates prevailing in the private market for similar
loans and the risks assumed by the United States. The Commissioner
may charge a premium for such insurance in an amount reasonably
determined by him to be necessary to cover administrative expenses
and probable losses under subsections (a) and (b). Such insurance
shall be subject to such further terms and conditions as the Commissioner determines to be necessaiy.
"PART D—ASSISTANCE IN MAJOR DISASTER AREAS
•'AUTHORIZATION

"SEC. 761. (a) The (Commissioner shall carry out a program of
financial assistance to public institutions of higher education, in
accordance Avith the provisions of this part.
"(b) There are authorized to be appropriated for each fiscal year
such sums as may be necessary to carry out the provisions of this
pai-t.
"ASSISTANCE FOR CONSTRUCTION OF ACADEMIC FACILITIES

"SEC. 762. (a) If the Director of the Office of Emergency Planning
determines that a public institution of higher education is, in whole
or in part, within an area which, after June 30, 1971, and before
July 1, 1975, has suffered a disaster which is a major disaster, and if
the Commissioner determines with respect to such institution that—
"(1) the academic facilities of such institution have been
destroyed or seriously damaged as a result of the disaster;
"(2) such institution is exercising due diligence in availing
itself of State and other financial assistance available for restoration or replacement of such facilities; and
"(3) the institution does not have sufficient funds available
from such other sources, including proceeds of insurance on the
facilities, to provide for the restoration or replacement of such
facilities;
the Commissioner is authorized to provide such assistance to such
institution as is provided in subsection (b).
" ( b ) (1) Assistance under this section shall be a grant to an eligible
institution, as determined under subsection ( a ) , of an amount necessary to enable the institution to carry out the construction necessary
to restore or replace the academic facilities determined under clause
(1) of subsection (a) to be damaged or destroyed.
"(2) The maximum amount of a grant under this section shall not
exceed the cost of construction incident to the restoration or replacement of the facilities determined to be damaged or destroyed under
clause (1) of subsection (a) less the amount of additional assistance
determined under clause (3) of subsection (a) to be available.
" ( c ) ( 1 ) Assistance under this section may include a grant of an
amount necessary to enable the institution to lease, or otherwise
obtain the use of, such facilities as are needed to replace, temporarily,
facilities which have been made unavailable as a result of a major
disastei-.
"(2) An institution shall be eligible for assistance under this subsection if it qualifies for assistance under subsection ( a ) , whether or
not it receives assistance under subsection (b).

' ,

,

300

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

'"EQUIPMENT A N D SUPPLIES

"SEC. 763. If an institution is eligible for assistance under section
762(a), the Commissioner is authorized, whether or not such institution receives assistance under section 762(b), to make a grant to such
institution of not in excess of an amount he determines necessary
to replace equipment, maintenance supplies, and instructional supplies (including books, and curricular and program materials)
destroyed or seriously damaged as a result of the major disaster.
"REPAYABLE ASSISTANCE IN LIEU OF A GRANT

"SEC. 764. If the Commissioner's determinations under clauses (2)
and (3) of section 762(a) indicate that financial resources will become
available to an institution otherwise qualified for assistance under
section 762 at some future date or dates, he is authorized, subject to
such terms and conditions as may be in the public interest, to extend
assistance to such institution under section 762(b). 762(c), or 768 (or
all such sections) with an agreement with such institution which provides that the institution will repay part or all of the funds received
by it under this pait.
"APPLICATIONS

* ^ "i"^!

"SEC. 765. Xo payment may be made to a public institution of higher
education for academic facilities under section 762 or for assistance
under section 763 unless an application therefor is submitted through
the appropriate State Commission and is filed with the Commissioner
in accordance with regulations prescribed by him. In determining the
order in which such applications shall be approved, the Commissioner
shall consider the relative educational and financial needs of the
institutions which have submitted approvable applications. Xo payment may be made under section 762(b) unless the Commissioner hiids
after' consultation with the State Commission, that the project or
projects with res^^ect to which it is made are noi: inconsistent with
overall State plans, submitted under section 704(a), for the construction of academic facilities. All determinations made by the Commissioner under this part shall be made only after consultation with the
appropriate State Commission.
- • .—
n:Mm iii 'rji}-n'i>.ii^i, ,u H».. •?; "DEFINITIONS

84'stari759^''

*.'*\/'"

; "SEC. 766. For the purposes of this part—
"(1) the term 'major disaster' means a disaster determined to be
a major disaster as defined in section 2(a) of the Act of September
30,1950 (42 U.S.C. 1855a(a)); and
"(2) an institution of higher education shall be deemed to be a
'public institution of higher education' if such institution is found
by the Commissioner to be under public supervision and control.
"PART E—GENERAL
"RECOVERY OF PAYMENTS

"SEC. 781. (a) The Congress hereby finds and declares that, if a
facility constructed with the aid of a grant or grants under part A or
B of this title is used as an academic facility for twenty years following completion of such construction, the public benefit accruing to the
United States from such use will equal in value the amount of such
grant or grants. The period of twenty years after completion of such
construction shall therefore be deemed to be the period of Federal
interest in such facility for the purposes of this title.

'

86

STAT.]

301

PUBLIC LAW 92-318-JUNE 23, 1972

" ( b ) If. within twenty years after completion of construction of an
academic facility which has been constructed in part with a grant or
grants under part A or B of this title—
" (1) the applicant (or its successor in title or possession) ceases
or fails to be a public or nonprofit institution, or
•'(2) the facility ceases to be used as an academic facility, or
the facility is used as a facility excluded from the term 'academic
facility", unless the Secretary determines that there is good cause
for releasing the institution from its obligation,
the United States shall be entitled to recover from such applicant (or
successor) an amount which bears to the then value of the facility (or
so much thereof as constituted an approved project or projects) the
same ratio as the amount of such Federal grant or grants bore to the
development cost of the facility financed with the aid of such grant
or grants. Such value shall be determined by agreement of the parties
or by action brought in the United States district court for the district
in which such facility is situated.
"(c) Notwithstanding the provisions of subsections (a) and ( b ) ,
no facility constructed with assistance under this title shall ever be
used for religious worship or a sectarian activity or for a school or
department of divinity.

Prohibition.

"DEFINITIONS

"SEC. 782. The following definitions apply to terms used in this
title:
"(1) (A) Except as provided in subparagraph (B) of this paragraph, the term 'academic facilities' means structures suitable for
use as classrooms, laboratories, libraries, and related facilities necessary or appropriate for instruction of students, or for research, or
for administration of the educational or research programs, of an
institution of higher education, and maintenance, storage, or utility
facilities essential to operation of the foregoing facilities. For purposes
of parts A, C, and D, such term includes infirmaries or other facilities
designed to provide primarily for outpatient care of student and
instructional personnel. Plans for such facilities shall be in compliance
with such standards as the Secretary of Health, Education, and Welfare may prescribe or approve in order to insure that facilities constructed with the use of Federal funds under this title shall be, to the
extent appropriate in view of the uses to be made of the facilities,
accessible to and usable by handicapped persons.
" ( B ) The term "academic facilities' shall not include (i) any facility
intended primarily for e_vents for which admission is to be charged to
the general public, or (ii) any gymnasium or other facility specially
designed for athletic or recreational activities, other than for an
academic course in physical education or where the Commissioner
finds that the physical integration of such facilities with other
academic facilities included under this title is required to carry out
the objectives of this title, or (iii) any facility used or to be used for
sectarian instruction or as a place for religious worship, or (iv) any
facility w^iich (although not a facility described in the preceding
clause) is used or to be used primarily in connection with any part of
the program of a school or department of divinity, or (v) any facility
used or to be used by a school of medicine, school of dentistry, school
of osteopathy, school of pharmacy, school of optometry, school of
podiatry, or school of public health as these terms are defined in
section 724 of the Public Health Service Act, or a school of nursing
as defined in section 843 of that Act.

42 u s e 293d.
42 u s e 298b.

302

PUBLIC LAW 92-318-JUNE 23, 1972

:

J

;

[86 STAT.

"(2) The term 'construction' means (A) erection of new or expansion of existing structures, and the acquisition and installation of
initial equipment therefor; or (B) acquisition of existing structures
not owned by the institution involved; or (C) rehabilitation, alteration, conversion, or improvement (including the acquisition and
installation of initial equipment, or modernization or replacement of
built-in equipment) of existing structures; or (D) a combination of
any two or more of the foregoing. For the purposes of the preceding
sentence, the term 'equipment' includes, in addition to machinery,
utilities, and built-in equipment and any necessary enclosures or
structures to house them, all other items necessary for the functioning
of a particular facility as an academic facility, including necessary
furniture, except books, curricular and program materials, and items
of current operating expense such as fuel, supplies, and the like; the
term 'initial equipment' means equipment acquired and installed in
connection with construction as defined in paragraph (2) (A) or (B)
or, in cases referred to in paragraph (2) ( C ) , equipment acquired and
installed as part of the rehabilitation, alteration, conversion, or
improvement of an existing structure, which structure would otherwise
not be adequate for use as an academic facility; and the terms
'equipment', 'initial equipment', and 'built-in equipment' shall be more
particularly defined by the Commissioner by regulation. For the purposes of clause (C) in the first sentence of this paragraph, the term
'rehabilitation, alteration, conversion, or improvement' includes such
action as may be necessary to provide for the architectural needs of,
or to remove architectural barriers to, handicapped persons with a
view toward increasing the accessibility to, and use of, academic facilities by such persons.
"(3) (A) The term 'development cost', with respect to an academic
facility, means the amount found by the Commissioner to be the cost,
to the applicant for a grant or loan under this title, of the construction
involved and the cost of necessary acquisition of the land on which the
facility is located and of necessary site improvements to permit its use
for such facility. There shall be excluded from the development cost—
" ( i ) in determining the amount of any grant under part A or
B, an amount equal to the sum of ( I ) any Federal grant which
the institution has obtained, or is assured of obtaining, under any
law other than this title, with respect to the construction that is to
be financed with the aid of a grant under part A or B , and ( I I )
the amount of any non-Federal funds required to be expended as
a condition of such other Federal grant; and
"(ii) in determining the amount of any loan under part C, an
amount equal to the amount of any Federal financial assistance
which the institution has obtained, or is assured of obtaining,
under any law other than this title, with respect to the construction
that is to be financed with the aid of a loan under part C.
" ( B ) I n determining the development cost with respect to an academic facility, the Commissioner may include expenditures for works
of art for the facility of not to exceed 1 per centum of the total cost
(including such expenditures) to the applicant of construction of, and
land acquisition and site improvements for, such facility.
"(4) The term 'Federal share' means, except as provided in section
706(b)(2), in the case of any project a percentage (as determined
under the applicable State plan) not in excess of 50 per centum of its
development cost.
" ( 5 ) The term 'higher education building agency' means (A) an
agency, public authority, or other instrumentality of a State authorized U) provide, or finance the construction of, academic facilities for

86

STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

institutions of higher education (whether or not also authorized to
provide or finance other facilities for such or other educational institutions, or for their students or faculty), or (B) any corporation
(no part of the net earnings of which inures or may lawfully inure
to the benefit of any private shareholder or individual) (I) established
by an institution of higher education for the sole purpose of providing
academic facilities for the use of such institution, and ( I I ) upon
dissolution of w^hich, all title to any property purchased or built from
the proceeds of any loan made under part C will pass to such
institution.
" (6) The term 'public comnmnity college and public technical institute' means an institution of higher education which is under public
super-vision and control, and is organized and administered principally
to provide a two-year program which is acceptable for full credit
toward a bachelor's degree, or a two-year program in engineering,
mathematics, or the physical or biological sciences which is designed
to prepare the student to work as a technician and at a semiprofessional level in engineering, scientific, or other technological fields
which require the understanding and application of basic engineering,
scientific, or mathematical principles or knowledge; and the term
includes a branch of an institution of higher education offering four
or more year's of higher education which is located in a comnmnity
different f r-om that in which its parent institution is located.
"(T) The term'cooperative graduate center'means an institution or
program created by two or more institutions of higher education which,
will offer to the students of the participating institutions of higher
education graduate work which could not be offered with the same
proficiency or economy (or both) at the individual institution of higher
education. The center may be located or the program carried out on the
campus of any of the participating institutions or at a separate
location.
" (8) The term'cooperative graduate center board'means a duly constituted board established to construct and maintain the cooperative
graduate center and coordinate academic programs. The board shall be
composed of representatives of each of the institutions of higher education participating in the center and of the community involved. At
least one-third of the board's members shall be community representatives. The board shall elect by a majority vote a chairman from among
its membership.
"(9) The term 'public educational institution' does not include a
school or institution of any agency of the United States.
"(10) The term 'State' includes, in addition to the several States of
the Union, the Commonwealth of Puerto Eico, the District of Columbia, Guam, American Samoa, the Virgin Islands, and the Trust Territory of the Pacific Islands.".
(b) (1) The programs authorized by title V I I of the Higher Education Act of 1965 shall be deemed to be a continuation of the comparable programs authorized by the Higher Education Facilities Act
of 1963.
(2) Effective July 1, 1972, the Higher Education Facilities Act of
1963 is amended by striking out titles I and I I thereof.
(3) Effective July 1, 1972, such Act is amended by striking out
section 306 thereof.
(4) The revolving fund created by section 744 of the Higher Education Act of 1965 shall be deemed to be a continuation of the revolving
fund created by section 305 of the Higher Education Facilities Act of
1963. Any sums in the fund for higher education academic facilities
created by such section 305 on the date of enactment of this Act shall be
transferred to the fund created by section 744 of the Higher Education

303

,

. . ,,;

^"'®' P- ^^^•
77 S t a t . 3 6 3 .

20 u s e

701

note.
Effective d a t e s
20 u s e 7 1 1 ,
731.
20 u s e 746.
Ante,

p 296.

80 Stat. 166.

20 u s e 745.

304
Ante, p. 296.

77 Stat. 372;
82 Stat. 1059

2o'usc 743*.
20 use 741.
Ante, p. 295.

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

s^^^^ of 1965, aiid all such funds shall be deemed to have been made
available for such fund. Notwithstanding any other provision of law,
unless enacted in specific limitation of the provisions of this sentence,
any sums appropriated pursuant to section 303 (c) of the Higher Education Facilities Act of 1963 for any fiscal year ending prior to July 1,
1973, which have not been loaned under title I I I of that Act of 1963
shall be deemed to have been appropriated pursuant to section 741 (b)
of tho Higher Education Act of 1965 for the fiscal year ending ,Tune 30.
1973.
PART H—NETWORKS FOR KNOWLEDGE EXTENSIONEXTENSION OF AUTHORIZATION OF APPROPRIATIONS

90 V^r iit^'

SEC. 171. Effective after June 30, 1971, section 802 of the Higher
Education Act of 1965 is amended by inserting before the period at
the end thereof "$5,000,000 for the fiscal year ending June 30, 1972,
$10,000,000 for the fiscal year ending June 30, 1973, and $15,000,000
for earn of the fiscal years ending June 30,1974., and June 30,1975".
I N C L U S I O N o r LAW A N D GRADUATE PROFESSIONAL SCHOOLS

20 u s e 1133.

Effective date.

SEC. 172 (a) (1) Section 801 (a) of the Higher Education Act of
1965 is amended by striking out the first sentence thereof and inserting
in lieu thereof the following: "The Commissioner shall carry out a
program of encouraging institutions of higher education (including
law and other graduate professional schools) to share, to the optimal
extent, through cooperative arrangements, their technical and other
educational and administrative facilities and resources, and to test and
demonstrate the effectiveness and efficiency of a variety of such
arrangements, in accordance with this title. The Commissioner is
authorized to make grants to, and contracts with, institutions of
higher education to pay all or part of the cost of cooperative arrangements and of pilot or demonstration projects designed to accomplish
tlie purpose set forth in the first sentence of this subsection.".
(2) Clause (1) (A) of section 801(b) of such Act is amended by
inserting after "libraries" a comma and "including law libraries",
and by inserting after "collections" a comma and "including law
library collections,".
(j^^ ^\^Q amendments made by subsection (a) shall be effective after
June 30,1972.
PART I—GRADUATE PROGRAMS
N E W T I T L E I X OF T H E H I G H E R EDUCATION ACT OF 1!)G5
PROGRAMS)

20 u*sc / m '

(GRADUATE

SEC. 181. (a) The Higher Education Act of 1965 is amended by
striking out title I X and inserting in lieu thereof the following:
"TITLE IX—GRADUATE PROGRAMS
"PART A—GRANTS TO INSTITUTIONS OF HIGHER EDI'CATION
"PURPOSES ; AUTHORIZATION

"SEC. 901. (a) I t is the purpose of this part to make financial assistance available to institutions of higher education—
"(1) to strengthen, improve and where necessary expand the
quality of graduate and professional programs leading to an
advanced degree (other than a medical degree) in such institutions;

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

"(2) to establish, strengthen, and improve programs d e s i r e d
to prepare graduate and professional students for public service;
and
"(3) to assist in strengthening undergraduate programs of
instruction in the areas described in clauses (2), (3), and (4),
whenever the Commissioner determines that strengthened undergraduate programs of instruction will contribute to the purposes
of such clauses.
" ( b ) The Commissioner shall carry out a program of making
grants to institutions of higher education to carry out the purposes
set forth in subsection ( a ) .
"(c) There are authorized to be appropriated $30,000,000 for the
fiscal year ending June 30,1973, $40,000,000 for the fiscal year ending
June 30,1974, and $50,000,000 for the fiscal year ending June 30,1975,
for the purposes of this part.

Hi

,

a APPLICATIONS FOR GRAXT8

"SEC. 902. (a) The Commissioner is authorized to make grants to
institutions of higher education in accordance with the provisions of
this part. An institution of higher education desiring to receive a grant
under this part shall submit to the Commissioner an application therefor at such time or times, in such manner, and containing such information as the Commissioner may prescribe by regulation. Such,
application shall set forth a program of activities for carrying out one
or more of the purposes set forth in section 901(a) in such detail as
will enable the Commissioner to determine the degree to which such
program will accomplish such purpose or purposes, and such other
policies, procedures, and assurances as the Commissioner may require
by regulation.
"(b) The Commissioner shall approve an application only if he
determines that the application sets forth a program of activities
which are likely to make substantial progress toward achieving the
purposes of this part.
uAUTHORIZED

ACTIVITIES

"SEC. 903. (a) The funds appropriated pursuant to section 901(c)
may be used for such purposes as the Commissioner determines will best
accomplish the purposes of this part.
" ( b ) Such funds may be used solely for the purposes set forth in an
application approved under section 902 and solely for the purpose of
accomplishing the purposes stated in section 901(a), and to that end
such funds may be used for—
" Q ) faculty improvement;
"(2) the expansion of graduate and professional programs of
study;
" (3 ^ the acquisition of appropriate instructional equipment and
materials;
"(4) cooperative arrangements among graduate and professional schools; and
"(5) the strengthening of graduate and professional school
administration.
"(c) No sums granted under this part may be used—
"(1) for payment in excess of 66% per centum of the total
cost of such project or activity;
"(2) for payment in excess of 50 per centum of the cost of the
purchase or rental of books, audiovisual aids, scientific apparatus,
or other materials or equipment, less any per centum of such cost.

Prohibitions.

306

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

as determined by the ('oniiiiissioner, that is paid from sums
received (other than under this part) as Federal financial assistance; or
'"(B) for sectarian instruction or religious woi-ship, or primarily
in connection with any p a i t of the program of a school or de]>artment of divinity.
"KKSEAKCH A N D STVDIES

"SKC. 904. The Commissioner is authorized, directly or by contract,
ro conduct studies and research activities in coioiection witli the need
for, and improvement of, graduate programs in various fields of study
in institutions of higher education throughout the United States.
"PART 1^—(TKADI AJT-: FELLOWSHIPS FOR (3ARF:ERS IN P(>S'J\SE('()XI)ARY
EDUCATION
"AITROPRIATIONS AVTJIORIZED
•'SEC. 921. There are hereby authorized to be appropriated such sums
as may be necessary to carry out the provisions of this pait.
•'NUMBER or FELLOWSHIPS
••SEC. 922. (a) During the fiscal year ending June 80, 1973, and
each of the two succeeding fiscal years, the Commissioner is authorized
CO award not to exceed seven thousand five hundred fellowships to be
used for study in graduate programs at institutions of higher" education. Such fellowships may be aw^arded for such period of study as
the Commissioner may determine, but not in excess of three academic
years, except (1) that where a fellowship holder pursues his studies
as a i-egularly enrolled student at the institution during pei'iods outside the reg'ular sessions of the graduate program of the institution,
a fellowship may be aw^arded for a period not in excess of three
calendar years, and (2) that the Commissioner may provide by regulation for- the gi-anting of such fellowships for a period of study not to
exceed one academic year (or one calendar year in the case of fellowships to which clause (1) applies) in addition to the maximum period
otherwise applicable, under special circumstances in which the purposes of this part would most effectively be served thereby.
"(b) I n addition to the number of fellowships authorized to be
awarded by subsection (a) of this section, the Commissioner is authorized to award fellowships equal to the number previously aw^arded
during any fiscal year under this section but vacated prior to the end
of the period for which they were awarded; except that each fellowship awar-ded under- this subsection shall be for such period of study,
not in excess of the remainder of the period for which tlie fellowship
which it replaces w^as awarded, as the Commissioner may determine.
• ' A W A R D O F F E L L O W S H I P S A N D APPROVAL OF INSTITUTIONS
•'C-.
'SEC. 923. (a) Of the total number of fellowships authorized by section 922(a) to be awarded during a fiscal year (1) not less than onethird shall be awarded to individuals accepted for study in graduate
programs approved by the Commissioner under this section, and (2)
the remainder shall be awarded on such bases as he may detei'mine, subject to the provisions of subsection ( c ) . The Commissioner shall
approve a graduate program of an institution of liigher education only
upon application by the institution and only upon his finding that the

86 STAT.]

PUBLIC LAW 9 2 - 3 1 8 - J U N E 23, 1972

application contains satisfactory assurance that the institution will
provide special orientation and practical experiences designed to prepare its fellowship recipients for academic careers at some level of
education beyond the high school.
" (b) I n determining priorities and procedures for the award of fellowships under this section, the Commissioner shall—
"(1) take into account present and projected needs for highly
trained teachers in all areas of education beyond the high school,
"(2) give special attention to those institutions which have
developed new doctoral-level programs especially tailored to pre- ,
pare classroom teachers,
"(3) consider the need to prepare a larger number of teachers
and other academic leaders from minority groups, but nothingcontained in this clause shall be interpreted to require any educational institution to grant preference or disparate treatment to the
members of one minority group on account of an imbalance which
may exist with respect to the total number or percentage of persons of that group participating in or receiving the benefits of
this program, in comparison with the total number or percentage
of persons of that group in any community. State, section, or
other area,
"(4) assure that at least one-half of all new fellowship recipients have demonstrated their competence outside of a higher education setting for at least two years subsequent to the completion
of their undergraduate studies,
"(5) allow a fellowship recipient to interrupt his studies for up
to one year for the purpose of work, travel, or independent study
away from the campus, except that no stipend or travel expenses
may be paid for such period, and
"(6) seek to achieve a reasonably equitable geographical distribution of graduate programs approved under this section,
based upon such factors as student enrollments in institutions of
higher education and population.
"(c) Recipients of fellowships under this part shall be persons who
are interested in an academic career in educational programs beyond
the high school level and are pursuing, or intend to pursue, a course
of study leading to a degree of doctor of philosophy, doctor of arts,
oi- an equivalent degree.
*'(d) No fellowship shall be awarded under this part for study at a P'-ohibition.
school or department of divinity.
''FELLOWSHIP STIPENDS

"SEC. 924. (a) The Commissioner shall pay to persons awarded
fellowships under this part such stipends (including such allowances
for subsistence and other expenses for such persons and their dependents) as he may determine to be consistent with prevailing practices
under comparable federally supported programs.
•'(b) The Commissioner shall (in addition to the stipends paid to
persons under subsection ( a ) ) pay to the institution of higher education at which such person is pursuing his course, of study, in lieu of
tuition charged such person, such amounts as the Commissioner may
determine to be consistent with prevailing practices under comparable
federally supported programs, except that such amount shall not
exceed $4,000 per academic year for any such person.
"FELLOWSHIP CONDITIONS

"SEC. 925. (a) A person awarded a fellowship under the provisions
of this part shall continue to receive the payments provided in section

307

308
20 u*sc /oe^^"

^^p°'-^^-

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

^^'^ V^^^y during sucli periods as the Coiiiinissioner finds that lie is maintaining satisfactory proficiency in, and devoting essentially full time
to, study or research in the field in which such fellowship was awarded,
in an institution of higher education, and is not engaging in gainful
employment other than part-time employment by such institution in
teaching, research, or similar activities, approved by the Commissioner.
"(b) The Commissioner is authorized to require reports containing
such information in such form and to be filed at such times as he
determines necessary from any person awarded a fellowship under
the provisions of this part. Such reports shall be accompanied by a
certificate from an appropriate official at the institution of higher
education, library, archive, or other research center approved by the
Commissioner, stating that such person is making satisfactory progress
in, and is devoting essentially full time to, the program for Avnich the
fellowship was awarded.
"PART C—PujiLic SERVICE FELLOWSHIPS
" A W A R D OF PL'BLIC SERVICE F E L L O W S H I P S

Appropriation.

"SEC. 941. (a) During the fiscal year ending June 30,1973, and each
of the two succeeding fiscal years, the Commissioner is authorized to
award not to exceed five hundred fellowships in accordance with the
provisions of this part for graduate or professional study for j^ersons
who plan to pursue a career in public service. Such fellowships shall
be awarded for such periods as the Commissioner may determine but
not to exceed three academic years.
a ^^^ Thcrc are hereby authorized to be appropriated such sums as
may be necessary to carry out the provisions of this part.
"ALLOCATIOX or

FELLOWSHIPS

^ "SEC. 942. The Commissioner shall allocate fellowships under this
pait among institutions of higher education with programs approved
under the provisions of this part for the use of individuals accepted
into such programs, in such manner and according to such plan as will
insofar as practicable—
"'(l) provide an equitable distribution of such fellowships
throughout the LTnited States; and
" (2) attract recent college graduates to pursue a career in public
service.
"APPROVAL or PROGRAMS

<

"SEC. 943. The Connnissioner shall approve a graduate or professional program of an institution of higher education only upon
application by the institution and only upon his findings—
"(1) that such program has as a principal or significant objective the education of persons for the public service, or the education
of persons in a profession or vocation for whose practitioners there
is a significant continuing need in the public service as determined
by the Commissioner after such consultation with other agencies
as may be appropriate;
"(2) that such program is in effect and of high quality, or can
readily be put into effect and may reasonably be expected to be of
high quality;
"(3) that the application describes the relation of such program to any progr-am, activity, research, or development set forth
by the appUcant in an application, if any, submitted pursuant to
section 901(a) ( 2 ) ; and

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

"(4) that the application contains satisfactory assurance that
(A) the institution will recommend to the Commissioner, for the
award of fellowships under this part, for study in such program,
only persons of superior promise who have demonstrated to the
satisfaction of the institution a serious intent to enter the public
service upon completing the program, and (B) the institution will
make reasonable continuing efforts to encourage recipients of fellowships under this part, enrolled in such programs, to enter the
public service upon completing the program.
"STIPENDS

"SEC. 944. (a) The Commissioner shall pay to persons awarded
fellowships under this part such stipends (including such allowances
for subsistence and other expenses for such persons and their dependents) as he may determine to be consistent with prevailing practices
under comparable federally supported programs.
" ( b ) The Commissioner shall (in addition to the stipends paid to
persons under subsection (a)) pay to the institution of higher education at which such person is pursuing his course of study such amount
as the Commissioner may determine to be consistent with prevailing
practices under comparable federally supported programs.
"FELLOWSHIP CONDITIOXS

"SEC. 945. (a) A person awarded a fellowship under the provisions
of this part shall continue to receive the payments provided in this
part only during such periods as the Commissioner finds that he is
maintaining satisfactory proficiency and devoting full time to study
or research in the field in which such fellowship was awarded in an
institution of higher education, and is not engaging in gainful
employment other than employment approved by the Commissioner by
or pursuant to regulation.
"(b) The Commissioner is authorized to require reports containing
such information in such form and to be filed at such times as he
determines necessary from any person awarded a fellowship under
the provisions of this part. Such reports shall be accompanied by a
certificate from an appropriate official at the institution of higher education, library, archive, or other research center approved by the Commissioner, stating that such person is making satisfactory progress in,
and is devoting essentially full time to, the program for which the
fellowship was awarded.
"(c) No fellowship shall be awarded under this part for study at a
school or department of divinity.

Reports.

Prohibition.

" P A R T D—FELLOWSHIPS FOR OTHER PURPOSES
"PROGRAM

AUTHORIZED

"SEC. 961. (a) I t is the purpose of this part to provide fellowships—
"(1) to assist graduate students of exceptional albility who demonstrate a financial need for advanced study in domestic mining
and mineral and mineral fuel conservation including oil, gas, coal,
oil shale, and uranium; and
"(2) for persons of ability from disadvantaged backgrounds, as
determined by the Commissioner, undertaking graduate or professional study.
The demonstration of financial need shall be determined in accordance
with regulations prescribed by the Commissioner.

Regulations.

310

Limitation.
Post, p. 311.

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

"(b) (1) The Commissioner is authorized to award mider tlie provisions of this part not to exceed five hmidred fellowships for the
fiscal year ending June 30, 1973, and for each of the two succeeding
fiscal years. Appropriations made pursuant to section 965 for fellowships awarded under clause (2) of subsection (a) of this section may
not exceed $1,000,000 in any fiscal year.
"(2) I n addition to the number of fellowships authorized to be
awarded under paragraph (1), the Commissioner is authorized to
aAvard fellowships equal to the number previously awarded during
any fiscal year under this part but vacated prior to the end of the
period for- which they were awarded except that each fellowship
awarded under this paragraph shall be for such period of gi'aduate or
professional work or research not in excess of the remainder of the
period for which the fellow-ship it replaces was awarded as the Commissioner may determine.
"(c) Fellowships awarded under this part shall be for graduate and
professional study leading to an advanced degree or research incident
to the presentation of a doctoral dissertation. Such fellowships may be
awarded for graduate and professional study and research at any
institution of higher education or any other research center approved
for such purpose by the Commissioner. Such fellowships shall be
awarded for such periods as the Commissioner may determine but not
to exceed three years.
" A W A R D o r FELLOWSHIPS

"SEC. 962. Recipients of fellowships under this part shall be—
" (1) persons who have been accepted by an institution of higher
education for graduate study leading to an advanced degree or for
a professional degree, or
"(2) persons who have completed all course work required for
granting of a doctoral degree or an equivalent degree (except such
course work credited on the dissertation) and comprehensive examinations where appropriate, and w^hose doctoral dissertation (or
other equivalent dissertation) proposal has been approved by
appropriate officials of an institution of higher education.
u STIPENDS AND INSTITUTION OF HIGHER EDUCATION ALLOWANCES

Travel allowance.

"SEC. 963. (a) The Commissioner shall pay to persons awarded fellowships under this part such stipends as he may determine to be
consistent with prevailing practices under comparable federally supported programs, except that the stipend shall not be less than $2,800
for each academic year study. An additional amount of $300 for each
such year shall be paid to each such person on account of each of his
dependents, not to exceed the amount of $1,500 per academic year.
"(b) In addition to the amount paid to persons pursuant to subsection (a) there shall be paid to the institution of higher education at
which each such person is pursuing his course of study an amount
equal to 150 per centum of the amount paid to such person, less the
amount paid on account of each of such person's dependents, to such
person, less any amount charged such person for tuition.
"(c) The Commissioner shall reimburse any person awarded a fellowship pursuant to this part for actual and necessary traveling
expenses of such person and his dependents from his ordinary place of
residence to the institution of higher education, library, archive, or
other research center where he will pursue his studies under such fellowship, and to return to such residence.

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

311

"FELLOWSHIP CONDITIONS

"SEC. 964. (a) A person awarded a fellowship under the provisions
of this part shall continue to receive the payments provided in this part
only during such periods as the Commissioner finds that he is maintaining satisfactory proficiency and devoting full time to study or research
in the field in which such fellowship was awarded in an institution of
higher education, and is not engaging in gainful employment other
than employment approved by the Commissioner by or pursuant to
regulation.
" ( b ) The Commissioner is authorized to require reports containing
such information in such form and to be filed at such times as he determines necessary from any person awarded a fellowship under the provisions of this part. Such reports shall be accompanied by a certificate
from an appropriate official at the institution of higher education,
library, archive, or other research center approved by the Commissioner, stating that such person is making satisfactory progress in, and
is devoting essentially full time to, the program for which the fellowship was awarded.
"(c) No fellowship shall be awarded under this title for study at a
school or department of divinity.

Reports.

Prohibition.

"APPROPBIATIONS AUTHORIZED

"SEC. 965. There are authorized to be appropriated such sums as may
be necessary for the purposes of this part.".
E X T E N S I O N A N D E X P A N S I O N OF T I T L E V I OF T H E N A T I O N A L
D E F E N S E EDUCATION A C T

SEC. 182. (a) Section 601 of the National Defense Education Act of
1958 is amended to read as follows:

72 Stat. 1 5 9 3 .
20 u s e 5 1 1 .

" L A N G U A G E A N D AREA CENTERS xVND PROGRAMS

"SEC. 601. (a) The Secretary is authorized to make grants to or contracts with institutions of higher education for the purposes of establishing, equipping, and operating graduate and undergraduate centers
and programs for the teaching of any modern foreign language, for
instruction in other fields needed to provide a full understanding of the
areas, regions, or countries in which such language is commonly used,
or for research and training in international studies and the international aspects of professional and other fields of study. Any such grant
or contract may cover all or part of the cost of the establishment or
operation of a center or program, including the costs of faculty, stafi',
and student travel in foreign areas, regions, or countries, and the costs
of travel of foreign scholars to teach or conduct research, and shall be
made on such conditions as the Secretary finds necessary to carry out
the purposes of this section.
" ( b ) The Secretary is also authorized to pay stipends to individuals
undergoing advanced training in any center or under any program
receiving Federal financial assistance under this title, including allowances for dependents and for travel for research and study here and
abroad, but only upon reasonable assurance that the recipients of such
stipends will, on completion of their training, be available for teaching
service in an institution of higher education or elementary or secondary
school, or such other service of a public nature as may be permitted in
the regulations of the Secretary.
82-081 O - 73 - 23

Contract
authority.

312

PUBLIC LAW 92-318-JUNE 23, 1972

Restriction.

sa^stat^VoV?"^'
20 use 513.

[86 STAT.

"(e) Xo fuiids luay be expended under this title for undergraduate
travel except in accordance with rules prescribed by the Secretary
settinj>- foith policies and procedures to assure that Federal funds
made available for such travel are expended as part of a foraial prx)gram of supervised study.".
^^) Section 603 of such Act is amended by striking out "and
$38,500,000 for the fiscal year ending June 30, 1971," and by inserting
in lieu thereof the following: "$38,500,000 for each of the fiscal years
ending June 30,1971, and June 30,1972, $50,000,000 for the fiscal year
ending June 30,1973, and $75,000,000 for each of the fiscal years ending
June 30,1974, and June 30,1975,".
KXTEXSION OF THE INTERNATIONAL EDUCATION ACT OF 1»()6

82*stat^Vo62^^'
2 0 use 1176.

iii'il('A-''^i.

SEC. 183. Sectiou 105(a) of the International Education Act of 1966
is amended by inserting after the second sentence thereof the following
new sentence: "There are authorized to be appropriated $20,000,000
for the fiscal year ending June 30, 1973, $30,000,000 for the fiscal year
ending June 30, 1974, and $40,000,000 for the fiscal year ending
June 30, 1975, for the purpose of carrying out the provisions of this
title.".
P A R T J — I M P R O V E M E N T OF C O M M U N I T Y COLLEGES AND OCCUPATIONAL
EDUCATION
A M E N D M E N T TO T H E TITLE X OF T H E H I G H E R EDUCATION ACT o r 1965

82 Stat. 1047.
20 use 1135.

SEC. 186. (a) (1) Title X of the Higher Education Act of 1965 is
amended to read as follows; .
>
,•
•

'a-e ^V;

-

" T I T L E X — C O M M U N I T Y C O L L E G E S AND
OCCUPATIONAL EDUCATION

" P A R T A—ESTABLISHMENT AND EXPANSION OF COMMUNITY COLLEGES

.H.odtis
Post. p. 324.

Post, p. 315.

"Subpart 1—Statewide Plans
"SEC. 1001. (a) Each State Commission (established or designated
under section 1202) of each State which desires to receive assistance
under this subpart shall develop a statewide plan for the expansion or
improvement of postsecondary education programs in community colleges or both. Such plan shall among other things—
"(1) designate areas, if any, of the State in which residents do
not have access to at least two years of tuition-free or low-tuition
postsecondary education within reasonable distance;
"(2) set forth a comprehensive statewide plan for the establishment, or expansion, and improvement of community colleges, or
both, which would achieve the goal of making available, to all
residents of the State an opportunity to attend a community college (as defined in section 1018);
" (3) establish priorities for the use of Federal and non-Federal
financial and other resources which would be necessary to achieve
the goal set forth in clause (2) ;
"(4) make recommendations with respect to adequate State and
local financial support, within the priorities set forth pursuant to
cl ause (3), f or community colleges;
"(5) set forth a statement analyzing the duplications of postsecondary educational programs and make recommendations for
the coordination of such programs in order to eliminate unnecessary or excessive duplications; and
_ ^,

86

STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

" (6) set forth a plan for the use of existing and new educational
resources in the State in order to achieve the goal set forth in
clause (2), including recommendations for the modification of
State plans for federally assisted vocational education, community services, and academic facilities as they may affect community colleges.
In carrying out its responsibilities under this subsection, each State
Commission shall establish an advisory council on community colleges
which shall—
" ( A ) be composed of—
"(i) a substantial number of persons in the State (including representatives of State and local agencies) having
responsibility for the operation of community colleges;
"(ii) representatives of State agencies having responsibility for or an interest in postsecondary education; and
" (iii) the general public;
" ( B ) have responsibility for assisting and making recommendations to the State Commission in developing the statewide plan
required under this section;
" ( C ) conduct such hearings as the State Commission may deem
advisable; and
" ( D ) pursuant to requirements established by the State Commission, provide each State and local agency within the State
responsible for postsecondary education an opportunity to review
and make recommendations with respect to such plan.
"(b) (1) There is hereby authorized to be appropriated $15,700,000
during the period beginning July 1, 1972, and ending June 30, 1974,
to carry out the provisions of this section.
"(2) Sums appropriated pursuant to paraarraph (1) shall be
allotted by the (Jommissioner equally among the States, except that
the amount allotted to Guam, American Samoa, and the Virgin Islands
shall not exceed $100,000 each. Such sums shall remain available until
expended.
"(c) Each plan developed and adopted pursuant to subsection (a)
shall be submitted to the Commissioner for his approval. The Commissioner shall not approve any plan unless he determines that it
fulfills the requirements of this section.

313

Advisory counc i l s on c ommunit y
colleges.

Appropriation.

"Subpart 2—Establishment and Expansion of Community Colleges
U

PROGRAM

AUTHORIZATION

"SEC. 1011. (a) In order to encourage and assist those States and
localities which so desire in establishing or expanding community
colleges, or both, the Commissioner shall carry out a program as
provided in this subpart for making grants to community colleges
in order to improve educational opportunities available through community colleges in such States.
" ( b ) For the purpose of carrying out this subpart, there are
authorized to be appropriated $50,000,000 for the fiscal year ending
June 30.1973, $75,000,000 for the fiscal year ending June 30.1974, and
S150,000,000 for the fiscal year ending June 30,1975.
ii

APPORTIONMENTS

"SEC. 1012. (a) From the sums appropriated pursuant to section
1011 (b) for each fiscal year the Commissioner shall apportion not more
than 5 per centum thereof among Puerto Rico, Guam, American Samoa
and the Virgin Islands according to their respective needs. From the

Appropriations .

314

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

remainder of sucli sums the Commissioner shall apportion to each
State aji amount which bears the same ratio to such remainder as the
population aged eighteen and over in such State bears to the total of
such population in all States. For the purpose of the second sentence
of this subsection, the term 'State' does not include Puerto Rico, Guam,
American Samoa and the Virgin Islands.
"(b) The portion of any State's apportionment under subsection (a)
for a fiscal year which the Commissioner determines will not be
required, for the period such apportionment is available, for carrying
out the purposes of this subpart shall be available for reapportionment
from time to time, on such dates during such period as the Commissioner shall fix, to other States in proportion to the original apportionments to such States under subsection (a) for such year but with such
proportionate amount for any of such other States being reduced to the
extent it exceeds the sum w^hich the Commissioner estimates such State
needs and will be able to use for such period for carrying out such portion of its State plan referred to in section 1001(a)(2) approved
under this subpart, and the total of such reductions shall be similarly
reapportioned among the States whose proportionate amounts are not
so reduced. Any amount reapportioned to a State under this subsection during a year shall be deemed part of its apportionment under
subsection (a) for such year.

"State."

•'ESTABLISHMENT GRANTS

"SEC. 1013. (a) The Commissioner is authorized to make grants to
new community colleges to assist them in planning, developing, establishing, and conducting initial operations of new xjommunity colleges
in areas of the States in which there are no existing community colleges or in which existing community colleges cannot adequately provide postsecondary educational opportunities for all of the residents
thereof who desire and can benefit from postsecondary education.
"New com- ^^
" (jj) FoT the purposes of subsectlou ( a ) , the term'uew commuulty
lum yco ege. (.Qllege' meaus a board of trustees or other governing board (or its
equivalent) which is established by, or pursuant to, the law of a State,
or local government, for the purpose of establishing a community colPosf, p. 315.
lege, as defined in section 1018, or any existing board so established
which has the authority to create, and is in the process of establishing,
a new community college.
" E X P A N S I O N GRANTS

- '

'

"SEC. 1014. The Commissioner is authorized to make grants to existing community colleges to assist them—
"(1) in expanding their enrollment capacities,
"(2) in establishing new campuses, and
" (3) in altering or modifying their educational programs,
in order that they may (A) more adequately meet the needs, interests,
and potential benefits of the communities they serve, or (B) provide
educational programs especially suited to the needs of educationally
disadvantaged persons residing in such communities.
((LEASE

OF FACILITIES

"SEC. 1015. (a) The Commissioner is authorized to make grants
to community colleges to enable them to lease facilities, for a period
of not to exceed five years, in connection with activities carried out by
them under section 1013 or section 1014.

86

STAT.]

315

PUBLIC LAW 92-318-JUNE 23, 1972

" ( b ) The Federal sliare of carrying out a project through a grant
under this section shall not exceed—
" (1) 70 per centum of the cost of such project for the fii-st year
of assistance under this section;
"(2) 50 per centum thereof for the second such year;
"(3) 30 per centum thereof for the third such year; and
"(4) 10 per centum thereof for the fourth such year.

Federal share,
limitations.

•'APPLICATIONS ; FEDERAL SHARE

"SEC. 1016. ( a ) ( 1 ) Grants under sections 1013 and 1014 may be
made only upon application to the Commissioner. Applications for
assistance under such sections shall be submitted at such time, in such
manner and form, and containing such information as the Commissioner shall require by regulation.
"(2) Xo application submitted pursuant to paragraph (1) shall be
approved unless the Commissioner determines that it is consistent
with the plan approved by him under section 1001 from the State in
which the applicant is located.
" ( b ) (1) Xo application for assistance under section 1013 or 1014
shall be approved for a period of assistance in excess of four years.
''(2) The Federal share of the cost of carrying out the project for
which assistance is sought in an application submitted pursuant to
this section shall not exceed—
" (A) 40 per centum of such cost for the first year of assistance:
" ( B ) 30 per centum thereof for the second year of assistance;
" (C) 20 per centum thereof for the third year of assistance; and
•'(D) 10 per centum thereof for the fourth year of assistance.
"(c) (1) Funds appropriated pui-suant to section 1011 and granted
luider section 1013 or 1014 shall, subject to paragraph (2), be available for those activities the Commissioner determines to be necessary
to carry out the purposes of such sections.
"(2) Such funds may be used (A) to remodel or i-enovate existing
facilities, or (B) to equip new and existing facilities, but such funds
may not be used for the construction of new facilities or the acquisition
of existing facilities.
"PAYMENTS

"SEC. 1017. From the amount apportioned to each State pureuant
to section 1012, the Commissioner shall pay to each applicant from
that State which has had an application for assistance approved under
this subpart the Federal share of the amount expended under such
application.
"DEFINITIONS

"SEC. 1018. As used in this title, the term 'community college' means
any junior college, postsecondary vocational school, technical institute.
or any other educational institution (which may include a four-year
institution of higher education or a branch thereof) in any State
which—
"(1) is legally authorized within such State to provide a program of education beyond secondary education;
"(2) admits as regular students persons who are high school
graduates or the equivalent, or at least 18 years of age;
"(3) provides a two-year postsecondary educational program
leading to an associate degree, or acceptable for credit toward a
bachelor's degree, and also provides programs of postsecondary
vocational, technical, occupational, and specialized education ;
" (4) is a public or other nonprofit institution;

Limitations.

316

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

"(5) is accredited as an institution by a nationally recognized
accreaiting agency or association, or if not so accredited—
" (A) is an institution that has obtained recognized preaccreditation status from a nationally recognized accrediting
body, or
' ' ( B ) is an institution whose credits are accepted on transfer, by not less than three accredited institutions, for credit
on the same basis as if transferred from an institution so
accredited.
"PART B—OCCUPATIONAL EDUCATION PROGRAMS;

'

"

"AUTHORIZATION OF APPROPRIATIONS

Post, p. 318.

Post, p. 319.
Post. p. 321.

"SEC. 1051. For the purpose of carrying out this part, there are
hereby authorized to be appropriated $100,000,000 for the fiscal year
ending June 30,1973, $250,000,000 for the fiscal year ending June 30.
1974, and $500,000,000 for the fiscal year ending June 30,1975. Eighty
per centum of the funds appropriated for the first year for which funds
are appropriated under this section shall be available for the purposes
of establishing administrative arrangements under section 1055, making planning grants under section 1056, and for initiating programs
under section 1057 in those States which have complied with the
planning requirements of section 1056; and 20 per centum shall be
available only for technical assistance under section 1059 (a). From the
amount appropriated for each succeeding fiscal year 15 per centum
shall be reserved to the Commissioner for grants and contracts pursuant to section 1059 (b).
"ALLOTMENTS AND REALLOTMENTS

AMONG

STATES

"SEC. 1052. (a) From the sums appropriated under section 1051 for
the first year for which funds are appropriated under that section
(other than funds available only for technical assistance), the Commissioner shall first allot such sums as they may require (but not to
exceed $50,000 each) to American Samoa and the Trust Territory of
the Pacific Islands. From the remainder of such sums he shall allot to
each State an amount which bears the same ratio to such remainder as
the number of persons sixteen years of age or older in such State bears
to the number of such persons in all the States, except that the amount
allotted to each State shall not be less than $100,000.
"(b) From the sums appropriated for any succeeding fiscal year
under such section (other than funds reserved to the Commissioner),
the Commissioner shall first allot such sums as they may require (but
not to exceed $500,000 each) to American Samoa and the Trust Territory of the Pacific Islands. From the remainder of such sums he shall
allot to each State an amount which bears the same ratio to such
remainder as the number of persons sixteen years of age or older in
such State bears to the number of such persons in all the States, except
that the amount allotted to each State shall not be less than $500,000.
"(c) The portion of any State's allotment under subsection (a) or
(b) for a fiscal year which the Commissioner determines will not be
required, for the period such allotment is available, for carrying out
the purposes of this part shall be available for reallotment from time
to time, on such date or dates during such periods as the Commissioner
may fix, to other States in proportion to the original allotments to such
States under subsection (a) or (b) for such year, but with such proportionate amount for any of such other States being reduced to the extent
it exceeds the sum which the Commissioner estimates such States need

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

317

and will be able to use for such period, and the total of such reductions
shall be similarly reallotted among the States whose proportionate
amounts are not so reduced. Any amount reallotted to a State under
this subsection dui'ing a year shall be deemed pai-t of its allotment
under subsection (a) or (b) for such year.
"FEDERAL ADMINISTRATION
' ' S E C . 1058. The Secretary shall develop and carry out a program
designed to promote and encourage occupational education, which program shall—
"(1) provide for the administration b}^ the Commissioner of
Education of grants to the States authorized by this part;
. s-j
"(2) assure that manpower needs in subprofessional occupations in education, health, rehabilitation, and community and welfare services are adequately considered in the development of
programs under this part ;
"(3) promote and encourage the coordination of programs
developed under this part with those supported under part A of
this title, the Vocational Education Act of 1963, the Manpower 20 use 1241
Development and Training Act of 1962, title I of the Economic "°42usc 2571
Opportunity Act of 1964, the Public Health Service Act, and note.
related activities administered by various departments and agen- '^^ ^^^ ^ru,
201 n o t e .
cies of the Federal Government; and
"(4) proA^de for the continuous assessment of needs in occupational education and for the continuous evaluation of programs
supported under the authority of this part and of related provisions of law.
" G E N E R A L R E S P O N S I B I L I T I E S OF COMMISSIONER O F EDUCATION

"SEC. 1054. The Commissioner shall, in addition to the specific
responsibilities imposed by this part, develop and carry out a program
•)f occupational education that will—
"(1) coordinate all programs administei-ed by the Commissioner
which specifically relate to the provisions of this part so as to
provide the maximum practicable support for the objectives of
this p a r t ;
"(2) promote and encourage occupational preparation, counseling and guidance, and job placement or placement in postsecondary occupational education programs as a responsibility of
elementary and secondary schools ;
"(3) utilize research and demonstr-ation programs administer-ed
by him to assist in the development of new and improved instructional methods and technology for occupational education and in
the design and testing of models of schools or school systems which
place occupational education on an equal footing with academic
education;
"(4) assure that the Education Professions Development Act
and similar programs of general application will be so administered as to provide a degree of support for vocational, technical,
and occupational education commensurate Avith national needs and
more nearly representative of the relative size of the population
to be served; and
"(5) develop and disseminate accurate information on the status
of occupational education in all parts of the Nation, at all levels
of education, and in all types of institutions, together with information on occupational oppoi-tunities available to persons of all
ag-es.

79 Stat. 1254;
81 Stat. 9 3 .
20 u s e 1091
note.

318

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

''STATE ADMINISTRATION-

82 Stat. 1064.
2 0 use 1241
note

Post, p. 320.

'"SEC. 1055. (a) Any State desiring to participate in the [)rograni
authorized by this part shall in accordance with State hnv establish a
State agency or designate an existing State agency which will have
sole responsibility for fiscal management and administration of the
program, in accordance with the plan approved under this part, and
which adopts administrative arrangements which will provide assurances satisfactory to the Commissioner that—
"(1) the State Advisory Council on Vocational Education will
be charged with the same responsibilities with respect to the program authorized by this part as it has with respect to programs
authoHzed under the Vocational Education Act of 1963;
"(2) there is adequate provision for individual institutions or
groups of institutions and for local educational agencies to appeal
and obtain a hearing from the State administrative agency with
respect to policies, procedures, programs, or allocation of resources
under this part with which such institution or institutions or
such agencies disagree.
" ( b ) The Commissioner shall approve any administrative arrangements which meet the requirements of subsection ( a ) , and shall not
finally disapprove any such arrangements without affording the State
administrative agency a reasonable opportunity for a hearing. Upon
the final disapproval of any arrangement, the provisions for judicial
review set forth in section 1058 (b) shall be applicable.
" P L A N N I N G G R A N T S FOR STATE OCCUPATIONAL EDUCATION PROGRAMS

Post, p. 324.

"SEC. 1056. (a) Upon the application of a State Commission (established or designated pursuant to section 1202), the Commissioner shall
make available to the State the amount of its allotment under section
1052 for the following purposes—
" (1) to stren^hen the State Advisory Council on Vocational
Education in order that it may effecti^-ely carry out the additional
functions imposed by this part; and
"(2) to enable the State Commission to initiate and conduct a
comprehensive program of planning for the establishment of the
program authorized by this part.
"(b) (1) Planning activities initiated under clause (2) of subsection
(a) shall include—
" ( A ) an assessment of the existing capabilities and facilities for
the provision of postsecondary occupational education, together
with existing needs and projected needs for such education in all
parts of the State;
" ( B ) thorough consideration of the most effective means of
utilizing all existing institutions within the State capable of providing the kinds of programs assisted under this part, including
(but not limited to) both private and public community and junior
colleges, area vocational schools, accredited private proprietary
institutions, technical institutes, manpower skill centers, branch
institutions of State colleges or universities, and public and private colleges and universities;
" ( C ) the development of an administrative procedure which
provides reasonable promise for resolving differences between
vocational educators, community and junior college educators, college and university educators, elementary and secondary educators, and other interested groups with respect to the administration
of the program authorized under this p a r t ; and

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

" ( D ) the development of a long-range stnitegy for infusing
occupational education (including general orientation, counseling and guidance, and placement either in a job or in postsecondary occupational programs) into elementary and secondary
schools on an equal footing with traditional academic education,
to the end that every child who leaves secondary school is prepared
either to enter productive employment or to undertake additional
education at the postsecondary level, but without being forced
prematurely to make an irrevocable commitment to a particular
educational or occupational choice; and
" ( E ) the development of procedures to insure continuous pLanning and evaluation, including the regular collection of data
which would be readily available to the State administrative
agency, the State Advisory Council on Vocational Education,
individual educational institutions, and other interested parties
(including concerned private citizens).
"(2) Planning activities carried on by the State Commission under
this section shall involve the active participation of—
" ( A ) the State board for vocational education;
" ( B ) the State agency having responsibility for community
and junior colleges;
" ( C ) the State agency having responsibility for higher education institutions or programs;
" ( D ) the State agency responsible for administering public
elementary and secondary education;
" ( E ) the State agency responsible for progi-ams of adult basic
education;
" ( F ) repi-esentatives of all types of institutions in the State
which are conducting or which have the capability and desire to
conduct programs of postsecondary occupational education;
" ( G ) representatives of private, nonprofit elementary and secondary schools:
" ( H ) the State employment security agency, the State agency
responsible for apprenticeship })rograms. and other agencies
within the State having responsibility for administering manpower development and training programs;
" ( I ) the State agency responsible for economic and industrial
development;
" ( J ) persons familiar with the occupational education needs
of the disadvantaged, of the handicapped, and of minority
groups; and
" ( K ) representatives of business, industry, organized labor,
agriculture, and the general public.
"(c) The Commissioner shall not approve any application for a
grant under section 1057 of this part unless he is reasonably satisfied
that the planning described in this section (whether or not assisted by
a grant under this section) has been carried out.
"PROGRAM GRANTS FOR STATE OCCUPATIONAL EDUCATION PR06RA3IS

"SEC. 1057. (a) From the allotments available to the States under
section 1052(b) (upon application by the State administrative agency
designated or established under section 1055), the Commissioner shall
make grants to any State which has satisfied the requirements of section 1058. Such grants may be used for the following purposes—
"(1) assist the State administrative agency designated or established under section 1055;

319

320

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

" (2) the design^ establishment, and conduct of programs of
postsecondary occupational education (or the expansion and improvement of existing programs) as defined by section 1060 of
this part;
" (3) the design, establishment, and conduct of programs to carry
out the long-range strategy developed pursuant to section 1056 (b)
(1) (D) for infusing into elementary and secondaiy education
occupational preparation, which shall include methods of involving secondary schools in occupational placement and methods of
providing followup services and career counseling and guidance
for persons of all ages as a regular function of the educational
system;
"(4) the design of high-quality instructional programs to meet
the needs for postsecondary occupational education and the development of an order of priorities for placing these programs in
operation;
-'
"' (5) special training and preparation of persons to equip them
to teach, administer, or otherwise assist in carrying out the program authorized under this part (such as programs to prepare
'J journeymen in the skilled trades or occupations for teaching
positions); and
^'
" (6) the leasing, renting, or remodeling of facilities required to
carry out the program authorized by this part.
••(b) Programs authorized by this part may be carried out through
••ontractual arrangements with private organizations and institutions
organized for profit where such arrangements can make a contribution
to achieving the purposes of this part by providing substantially
equivalent education, training, or services more readily or more economically, or by preventing needless duplication of expensive physical
plant and equipment, or by providing needed education or training
of the types authorized by this part which would not otherwise be
available.
"ASSURANCES; JUDICIAL REVIEW

V

i

"SEC. 1058. (a) Before making any program grant under this part
the Commissioner shall receive from the State Commission an assurance satisfactory to him. that the planning requirements of section
1056 have been met and from the State administrative agency assurances satisfactory to him that—
"(1) the State Advisory Council on Vocational Education has
had a reasonable opportunity to review and make recommenda.•,t tions concerning the design of the programs for which the grant
is requested;
''(2) Federal funds made available under this part will result
in improved occupational education programs, and in no case
supplant State, local, or private funds;
"(3) adequate provision has been made by such agency for programs described in section 1057 (a) (3) ;
"(4) provision has been made for such fiscal control and fund
accounting procedures as may be necessary to assure proper disbursement of, and accounting for, Federal funds paid to the State
under this p a r t ;
"(5) to the extent consistent with the number of students
enrolled in nonprofit private schools in the area to be served by
an elementary or secondary school program funded under this
»5 part, provision has been made for the effective participation of
such students; and

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

321

"(6) reports will be made in such form and containing such Reports.
information as the Commissioner may reasonably require to
carry out his functions under this part.
"(b) (1) Whenever the Commissioner, after reasonable notice and
opportunity for a hearing to the State administrative agency, finds
that any of the assurances required by subsection (a) are unsatisfactory, or that in the administration of the program there is a failure
to comply with such assurances or with other requirements of the
part, the Commissioner shall notify the administrative agency that
no further payments will be made to the State under this part until
he is satisfied there has been or will be compliance with the requirements of the part.
" (2) A State administrative agency which is dissatisfied with a final
action of the Commissioner under this section or under section 1055
(with respect to approval of State administration) may appeal to the
United States court of appeals for the circuit in which the State is
located, by filing a petition with such court within sixty days after such
final action. A copy of the petition shall be forthwith transmitted by
the clerk of the court to the Commissioner, or any officer designated by
him for that purpose. The Commissioner thereupon shall file in the
court the record of the proceedings on which he based his action, as
provided in section 2112 of title 28, United States Code. Upon the filing go^sta^t^^lal^!'
of such petition, the court shall have jurisdiction to affirm the action
of the Commissioner or to set it aside, m whole or in part, temporarily
or permanently but until the filing of the record the Commissioner may
modify or set aside his action. The findings of the Commissioner as to
the facts, if supported by substantial evidence, shall be conclusive, but
the court, for good cause shown, may remand the case to the Commissioner to take further evidence, and the Commissioner may thereupon
make new or modified findings of fact and may modify his previous
action, and shall file in the court the record of the further proceedings.
^
Such new or modified findings of fact shall likewise be conclusive if
supported by substantial evidence. The judgment of the court affirming or setting aside, in whole or in part, any action of the Commissioner
shall be final, subject to review by the Supreme Court of the United
States upon certiorari or certification as provided in section 1254 of title
28, United States Code. The commencement of proceedings under this 62 stat. 928.
subsection shall not, unless so specifically ordered by the court, operate
as a stay of the Commissioner's action.
"TECHNICAL ASSISTANCE ; MODEL PROGRAMS

"SEC. 1059. (a) The Commissioner shall make available (to the
extent practicable) technical assistance to the States in planning, designing, and carrying out the program authorized by this part upon
the request of the appropriate State agency designated or established
pursuant to section 1055 or section 1202 and the Commissioner shall
take affirmative steps to acquaint all interested organizations, agencies, and institutions with the provision of this part and to enlist
broad public understanding of its purposes.
"(b) From the sums reserved to the Commissioner under section
1051, he shall by grant or contract provide assistance—
" (1) for the establishment and conduct of model or demonstration programs which in his judgment will promote the achievement of one or more purposes of this part and which might
otherwise not be carried out (or not be carried out soon enough or
in such a way as to have the desirable impact upon the purposes of
the p a r t ) ;

Post. p. 324.

322

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

"(2) as an incentive or supplemental grant to any State administrative agency which makes a proposal for advancing the purposes of this part which he feels holds special promise for
meeting occupational education needs of particular groups or
classes of persons who are disadvantaged or who have special
needs, when such proposal could not reasonably be expected to
be carried out under the regular State program; and
"(3) for particular programs or projects eligible for support
under this part which he believes have a special potential for
helping to find solutions to problems on a regional or national
basis.
"(c) In providing support under subsection (b) the Commissioner
may as appropriate make grants to or contracts with public or private
agencies, organizations, and institutions, but he shall give first preference to applications for projects or programs which are administered
by or approved by State administrative agencies, and he shall in no
case make a grant or contract within any State without first having
afforded the State administrative agency reasonable notice and opportunity for comment and for making recommendations.
((DEFINITIONS
"SEC. 1060, For the purposes of this part—
"(1) The term 'State' includes the District of Columbia, the
Commonwealth of Puerto Rico, Guam, the Virgin Islands, and
(except for the purposes of subsections (a) and (b) of section
1052) American Samoa and the Trust Territory of the Pacific
Islands.
"(2) The term 'postsecondary occupational education' means
education, training, or retraining (and including guidance, counseling, and placement services) for persons sixteen years of age or
older who have graduated from or left elementary or secondary
school, conducted by an institution legally authorized to provide
postsecondary education within a State, which is designed to
prepare individuals for gainful employment as semi-skilled or
skilled workers or technicians or subprofessionals in recognized
occupations (including new and emerging occupations), or to
prepare individuals for enrollment in advanced technical education programs, but excluding any program to prepare individuals
for employment in occupations which the Commissioner determines, and specifies by regulation, to be generally considered
professional or which require a baccalaureate or advanced degree.
" P A R T C—ESTABLISHMENT OF AGENCIES
"ESTABLISHMENT OF BUREAU OF OCCUPATIONAL AND ADULT EDUCATION

82 Stat. 1064.
note."^^ *^^^
20 use 1281,
*\^4 Stat. 159
20 use 1201
"°**-

"SEC. 1071. (a) There is hereby established in the United States
Office of Education a Bureau of Occupational and Adult Education
hereinafter referred to as the Bureau, which shall be responsible for
the administration of this title, the Vocational Education Act of 1963.
including parts C and I thereof, the Adult Education Act, functions of
the Office of Education relating to manpower training and development, functions of the Office relating to vocational, technical, and
occupational training in community and junior colleges, and any other
Act vesting authority in the Commissioner for vocational, occupational, adult and continuing education and for those portions of any
legislation for career education which are relevant to the purposes of
other Acts administered by the Bureau.

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

" ( b ) ( 1 ) The Bureau shall be headed by a person (appointed or
designated by the Commissioner) who is highly qualified in the fields
of vocational, technical, and occupational education, who is accorded
the rank of Deputy Commissioner, and who shall be compensated at
the rate specified for grade 18 of the General Schedule set forth in section 5332 of title 5, United States Code.
" (2) Additional positions are created for, and shall be assigned to,
the Bureau as follows:
'' (A) Three positions to be placed in grade 17 of such General
Schedule, one of which shall be filled by a person with broad experience in the field of junior and community college education,
" ( B ) Seven positions to be placed in grade 16 of such General
Schedule, at least two of which shall be filled by persons with
broad experience in the field of postsecondary-occupational education in community and junior colleges, at least one of which
shall be filled by a person with broad experience in education in
private proprietary institutions, and at least one of which shall be
filled by a person with professional experience in occupatijonal
guidance and counseling, and
" ( C ) Three positions which shall be filled by persons at least one
of whom is a skilled worker in a recognized occupation, another is
a subprofessional technician in one of the branches of engineering,
and the other is a subprof essional worker in one of the branchcis of
social or medical services, who shall serve as senior advisers in the
implementation of this title.

323

s use 5332
note.

uCOMMUNITY COLLEGE UNIT

"SEC. 1072. (a) There is established, in the Office of Education, a
Community College Unit (in this section referred to as the 'Unit')
which shall have the responsibility for coordinating all programs
administered by the Commissioner which affect, or can benefit, community colleges, including such programs assisted under this Act, and
the Vocational Education Act of 1963.
"(b) The Unit shall be headed by a Director who shall be placed
in grade 17 of the General Schedule under section 5332 of title 5,
LTnited States Code.".
(2) The positions created by section 1071 and sectio;i 1072 of the
Higher Education Act of 1965 shall be in addition to the number of
positions placed in the appropriate grades under section 5108, title 5,
United States Code.
(b) The amendments made by subsection (a) shall be effective after
June 30,1972.

82 stat. 1064

20 u s e 1241
note.

^nte. p. 322.
^"<e, P. 112.
Effective date

PART K — L A W SCHOOL CLINICAL EXPERIENCE PROGRAMS
AMENDMENTS TO TITLE XI OF THE HIGHER EDUCATION ACT OF 1 9 6 -T

SEC. 191. (a) Title X I of the Higher Education Act of 1965 is
amended by inserting "grant or" before "contract", and "grants or"
before "contracts" wherever they appear.
(b) Clause (5) of section 1101 (b) of such Act is amended to read as
follows:
" (5) equipment and library resources; and".
(c) Section 1103 of such Act is amended by striking out "$340,000 for
the fiscal year ending June 30,1969", and by striking out "fiscal years
ending June 30,1970, and June 30,1971", and inserting in lieu thereof
"succeeding fiscal years ending prior to July 1, 1975". Such section is
further amended by striking out the second sentence.

82Stat. io48.
^° ^^^ ^^^^'

20 use 1 i36b.

324

PUBLIC LAW 92-318-JUNE 23, 1972

Effective

[86 STAT.

(f|) j h e amendments made by this section sliall be effective after
Jmie:30,197L
PART L—POSTSECONDARY EDUCATION COMMISSION, COMPRKHEXSIVE
PLANNING, AND COST OF EDUCATION DATA
'

Ante, p. 260.

A M E N D M E N T S TO TITLE XII o r T H E H I G H E R EDUCATION ACT OF 1965

SEC. 196..Title X I I of the Higher Education Act of 1965 is amended
j^y adding after section 1201 the following two new sections:
"STATE POSTSECONDARY EDUCATION COMMISSIONS

"SEC. 1202. (a) Any State which desires to receive assistance under
section 1203 or title X shall establish a State Commission or designate
^^^ existiug State agency or State Commission (to be known as the State
Commission) which is broadly and equitably representative of the
general public and public and private nonprofit and proprietary
institutions of postsecondary education in the State including community colleges (as defined in title X ) , junior colleges, postsecondary
vocational schools, area vocational schools, technical institutes, fouryear institutions of higher education and branches thereof.
" ( b ) Such State Commission may establish committees or task
forces, not necessarily consisting of Commission members, and utilize
existing agencies or organizations, to make studies, conduct surveys,
submit recommendations, or otherwise contribute the best available
expertise from the institutions, interest groups, and segments of the
society most concerned with a particular aspect of the Commission's
work.
"(c) (1) At any time after July 1, 1973, a State may designate the
State Commission established under subsection (a) as the State agency
79 Stat. 122 0, QY iustitutioii required under section 10.5,603, or 704. I n such a case, the
^^2^0 use 1005,
State Commission established under this section shall be deemed to
1123.
'
meet the requirements of such sections for State agencies or
Ante, p. 2 90.
institutioiis.
"(2) If a State makes a designation referred to in paragraph (1)—
" ( A ) the Commissioner shall pay the State Commission the
amount necessary for the proper and efficient administration of
;• . .; 3 n'
the Commission of the functions transferred to it by reason of
the designation; and
. ' ft . »
" ( B ) the State Commission shall be considered the successor
•'
• • -'"' i' agency to the State agency or institution with respect to which the
designation is made, and action theretofore taken by the State
agency or institution shall continue to be effective until changed
by the State Commission.
2 0 use 1121.
" ( d ) Any State which desires to receive assistance under title V I
Ante, p. 2 88.
or uiider title V I I but which does not desire, after June 30, 1973,
ro place the functions of State Commissions under such titles under
the authority of the State Commission established pursuant to sub''' "
.section (a) shall establish for the purposes of such titles a State Commission which is broadly representative of the public and of institutions
of higher education (including junior colleges and technical institutes)
in the State. Such State Commissions shall have the sole responsibility
for the administration of State plans under such titles V I and V U
within such State.
Post, p. 325.
Ante, p. 312.

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972
'COMPREHENSIVE
(>.

325

STATEWIDE PLANNING

"SEC. 1203. (a) The Commissioner is authorized to make grants to
any State Commission established pursuant to section 1202(a) to
enable it to expand the scop)e of the studies and planning required in
title X through comprehensive inventories of, and studies with respect
to, all public and private postsecondary educational resources in the
State, including planning necessary for such resources to be better
coordinated, improved, expanded, or altered so that all persons within
the State who desire, and who can benefit from, postsecondary education may have an opportunity to do so.
" ( b ) The Commissioner shall make technical assistance available to
State Commissions, if so requested, to assist them in achieving the
purposes of this section.
"(c) There are authorized to be appropriated such sums as may be
necessary to carry out this section.".

Ante, p. 312.

Appropriation.

F U R N I S H I N G COST OF EDUCATION DATA

SEC. 197. Title X I I of the Higher Education Act of 1965 is further
amended by adding at the end thereof the following new section:
((COST

^"'^' P- 224.

OF EDUCATION DATA

f>J^^, ';2:j fiS;

" S E C 1206. The Commissioner may require as a condition of eligibility of any institution of higher education—
"(1) for institutional aid, at the earliest practical date, or
" (2) for student aid, after June 30,1973,
that such institution supply such cost-of-education data as may be in
the possession of such institution.".
T I T L E II—VOCATIONAL EDUCATION
SPECIAL PROGRAMS FOR T H E

-Tt; >ea cc

.

DISADVANTAGED

S E C 201. Section 102(b) of the Vocational Education Act of 1963 is ^^ stat. io64;
amended by inserting after "1972," the following: "and for the sue- ^'^20 usc%42.
ceeding fiscal years ending prior to July 1,1975,".
CLARIFICATION OF D E F I N I T I O N OF VOCATIONAL EDUCATION W I T H R E SPECT TO I N D I V I D U A L ARTS P R O G R A M S ; I N C L U S I O N O F VOLUNTEER
FIREMEN

SEC. 202. (a) Section 108(1) of the Vocational Education Act of
1963 is amended by inserting at the end thereof the following new
sentence: "Such term includes industrial arts education programs in
cases where the Commissioner determines by regulation that such
programs will accomplish or facilitate one or more of the purposes
of the first sentence of this paragraph.".
(b) Such section 108(1) is further amended by inserting immediately after the word "employment" the first time it appears in such
section the following: "(including volunteer firemen)".

. !-t£l Og^J

20 use 1248.

E X E M P L A R Y PROGRAMS A N D P R O J E C T S

S E C 203. Section 142(a) of the Vocational Education Act of 1963 is
amended by striking out "two" and inserting in lieu thereof "five".

20 use 1302.

326

PUBLIC LAW 92-318-JUNE 23, 1972
KESIDENTIAL VOCATIONAL

20 u'sc 132^^
84 Stat. ^189.
20 use 1323.

AND H O M E M A K I N ( ;

EDUCATION

SEC. 205. (a) Section 161(a) (1) of the Vocational Education Act
of ;[9(};^ ^g amended by striking out "the fiscal year ending June 30,
1972" and inserting in lieu thereof "each of the succeeding fiscal years
ending prior to July 1,1975".
(b) Section 161 (c) of such Act is amended by striking out "and the
two succeeding" and inserting in lieu thereof "and the five succeeding".
( (X>PERATIVE

20 use 1352.

SCHOOLS

SEC. 204. (a) Section 151(b) of the Vocational Education Act of
1963 is amended by striking out "the succeeding fiscal year" and
inserting in lieu thereof "each of the succeeding fiscal years endingprior to July 1,1975".
'
/
(^^ Sectiou 152(a)(1) of such Act is amended by striking out
"July 1, 1972" and inserting in lieu thereof "July 1, 1975".
((.^ Section 153(d) (2) of such Act is amended by striking out "July
1, 1971" and inserting in lieu thereof "July 1 of each of the four succeeding fiscal years".
CONSUMER

20 use 1341.

[86 STAT.

VOCATIONAL

EDUCATION

SEC. 206. Section 172(a) of the Vocational Education Act of 1963
is amended by striking out "the fiscal year ending June 30, 1972" and
inserting in lieu thereof "each of the succeeding fiscal years ending
prior to July 1,1975".
Vi^ORK-STUDY PROGRAMS

20 use 1371.

SEC. 207. Section 181(a) of the Vocational Education Act of 1963
is amended by inserting after "June 30, 1972," the following: "and
for each of the succeeding fiscal years ending prior to July 1, 1975,".
CURRICULUM

20 u s e 1391,

DEVELOPMENT

SEC. 208. Section 191(b) of the Vocational Education Act of 1963
is amended by striking out "July 1,1972" and inserting in lieu thereof
"July 1, 1975".
N A T I O N A L ADVISORY

2 0 u s e 1244.

COUNCIL

SEC. 209. Section 104(a) (4) of the Vocational Education Act of
1963 is amended by striking out "two" and inserting in lieu thereof
"five".
TITLE ill—AMENDMENTS RELATING TO THE
ADMINISTRATION OF EDUCATION PROGRAMS
A M E N D M E N T TO T H E GENERAL EDUCATION PROVISIONS ACT

s^%,ll^\o%\V
84 Stat. 164.'
20 use 1221
"°20use 1221,
1231, 1233.
i233g"^^ ^^^^'

SEC. 301. (a) The General Education Provisions Act (title I V of
^"^^i^ ^^^w 90-247) is amended—
(1) by redesignating parts A, B, and C thereof, and all refer^
ences thereto, as parts B, C, and D and redesignating sections 401,
402, 4a3, 4<)4, 405, 406, 411, 412, 413, 414, 415, 416, 417, 421, 422,
423, 424, 425, 426, 431, 432, 433, 434, 435, 436, 437, 438, and all
references thereto, as sections 400, 411, 412, 413, 414, 415, 421,
422, 423, 424, 425, 426, 427, 431, 432, 433, 434, 435, 436, 441, 442,
443,444,445,446,447, and 448, respectively; and
(2) by inserting after section 400 (as redesignated by clause
(1)) the following new p a r t :

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

327

" P A R T A—EDUCATION DIVISION OF THE DEPARTMENT OF H E A L T H ,
EDUCATION, AND WELFARE
"THE

EDUCATION DIVISION

"SEC. 401. There shall be, within the Department of Health,
Education, and Welfare, an Education Division which shall be composed of the Office of Education and the National Institute of Education, and shall be headed by the Assistant Secretary for Education.
"ASSISTANT SECRETARY FOR EDUCATION

"SEC. 402. (a) There shall be in the Department of Health, Education, and Welfare an Assistant Secretary for Education, who shall be
appointed by the President by and with the advice and consent of the
Senate. The Assistant Secretary for Education shall be compensated at
the rate specified for level I V of the Executive Schedule under section
5315 of title 5, United States Code.
83 stat^864. '
"(b) The Assistant Secretary shall be the principal officer in the
Department to whom the Secretary shall assign responsibility for the
direction and supervision of the Education Division. He shall not serve
as Commissioner of Education or as Director of the National Institute
of Education on either a temporary or permanent basis.
"THE

OFFICE OF EDUCATION

"SEC. 403. (a) The purpose and duties of the Office of Education
shall be to collect statistics and facts showing the condition and progress of education in the United States, and to disseminate such information respecting the organization and management of schools and school
systems, and methods of teaching, as shall aid the people of the
United States in the establishment and maintenance of efficient school
systems, and otherwise promote the cause of education throughout
the country. The Office of Education shall not have authority which
is not expressly provided for by statute or implied therein.
" ( b ) (1) The management of the Office of Education, shall, subject
CO the direction and supervision of the Secretary, be entrusted to a
Commissioner of Education, who shall be appointed by the President
by and with the advice and consent of the Senate, and who shall serve
at the pleasure of the President.
"(2) The Commissioner may not engage in any other business, vocation, or employment while serving in any such position; nor may he,
except with the express approval of the President in writing, hold any
office in, or act in any capacity for, or have a financial interest in, any
organization, agency, or institution to which the Office of Education
makes a grant or with which it makes a contract or other financial
arrangement.
a SUPPORT FOR I M P R O V E M E N T OF POSTSECONDARY EDUCATION

"SEC. 404. (a) Subject to the provisions of subsection (b), the Secretary is authorized to make grants to, and contracts with, institutions
of postsecondary education (including combinations of such institutions^ and other public and private educational institutions and agencies (except that no grant shall be made to an educational institution
or agency other than a nonprofit institution or agency) to improve
postsecondary educational opportunities by providing assistance to
such educational institutions and agencies for—

2-081 O - 73 - 24

.

.

328

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

"(1) encouraging the reform, innovation, and improvement of
postsecondary education, and providing equal educational opportunity for all ;
, •
"(2) the creation of institutions and programs involving new
patns to career and professional training, and new combinations
of academic and experimental learning;
"(3) the establishment of institutions and programs based on
the technology of communications;
''(4) the carrying out in postsecondary educational institutions
of changes in internal structure and operations designed to clarify
institutional priorities and purposes;
"(5) the design and introduction of cost-effective methods of
instruction and operation;
"(6) the introduction of institutional reforms designed to
expand individual opportunities for entering and reentering
institutions and pursuing programs of study tailored to individual
IX't.^^.
needs:
"(7) the introduction of reforms in graduate education, in the
structure of academic professions, and in the recruitment and
retention of faculties; and
" (8) the creation of new institutions and programs for examining and awarding credentials to individuals, and the introduction
of reforms in current institutional practices related thereto.
"(b) No grant shall be made or contract entered into under subsection (a) for a project or program with any institution of postsecondary education unless it has been submitted to each appropriati'
State Commission established under section 1202 of the Higher EducaAnte, p. 324.
tion Act of 1965, and an opportunity afforded such Commission to submit its comments and recommendations to the Secretary.
"(c) For the purposes of this section, the authority granted to tht?
Ante, p. 326.
Commissioner in part D of this Act shall apply to the Secretary.
" (d) The Secretary may appoint, for terms not to exceed three years,
5 u s e 101
without regard to the provisions of title 5 of the United States Code
et seq.
governing appointments in the competitive service, not more than five
. technical employees to administer this section who may be paid without
regard to the provisions of chapter 51 and subchapter I I I of chapter 5H
5331^^533^2 note ^^ ^^^ ^^^^^ relating to classification and General Schedule pay rates.
AppropriauonV.
*' (G) There are authorized to be appropriated $10,000,000 for the fiscal year ending June 30, 1973, $50,000,000 for the fiscal year ending
June 30,1974, and $75,000,000 for the fiscal year ending June 30,1975,
for the purposes of this section.
'i-KT

NATIONAL INSTITUTE OF EDUCATION

"SEC. 405. ( a ) ( 1 ) The Congress hereby declares it to be the policy of
the United States to provide to every person an equal opportunity to
receive an education of high quality regardless of his race, color, religion, sex, national origin, or social class. Although the American
educational system has pursued this objective, it has not yet attained
that objective. Inequalities of opportunity to receive high quality education remain pronounced. To achieve quality will require far more
dependable knowledge about the processes of learning and education
than now exists or can be expected from present research and experimentation in this field. While the direction of the education system
remains primarily the responsibility of State and local governments,
the Federal Government has a clear responsibility to provide leadership in the conduct and support of scientific inquiry into the educational process.
i

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

" (2) The Congi-ess further declares it to be the policy of the United
States to—
"(i) help to solve or to alleviate the problems of, and promote
the reform and renewal of American education;
"(ii) advance tihe practice of education, as an art, science, and
profession;
"(iii) strengthen the scientific and technological foundations of
education; and
"(iv) build an effective educational research and development
system.
" ( b ) ( 1 ) In order to carry out the policy set forth in subsection ( a ) ,
tliere is established the National Institute of Education (hereinafter
referred to as the 'Institute') which shall consist of a National Council
on Educational Research (referred to in this section as the 'Coimcil')
and a Director of the Institute (hereinafter referred to as the 'Director'). The Institute shall have only such authority as may be vested
therein by this section.
"(2) The Institute shall, in accordance with the provisions of this
section, seek to improve education, induding career education, in the
L'nited States through—
" ( A ) helping to solve or to alleviate the problems of, and
achieve the objectives of American education;
" ( B ) advancing the practice of education, as an art, science, and
profession;
" ( C ) the strengthening of the scientific and technological
foundations of education; and
" ( D ) building an effective educational research and development system.
= " ( c ) ( 1 ) The Council shall consist of fifteen member's appointed by
the President, by and with the advice and consent of the Senate, the
Director, and such other ex officio members who are officers of the
United States as the President may designate. Eight members of the
Council (excluding ex officio members) shall constitute a quorum.
The Chairman of the Council shall be designated from among its
appointed members by the President. Ex officio members shall not
have a vote on the Council.
"(2) The term of office of the members of the Council (other than
ex officio members) shall be three years, except that (A) the members
first taking office shall serve as designated by the President, five for
terms of three years, five for terms of tM-o years, and five for terms of
one year, and (B) any member appointed to fill a vacancy shall serve
for the remainder of the term for which his predecessor w^as appointed.
Any appointed member who has been a member of the Council for
six consecutive years sliall thereafter be ineligible for appointment to
the Council during the two-year period following the expiration of
such sixth year.
"(3) The Council shall—
" ( A ) establish general policies for, and review the conduct of,
the Institute;
" ( B ) advise the Assistant Secretary and the Director of the
Institute on development of programs to be carried out by the
Institute;
" ( C ) present to the Assistant Secretary and the Director such
recommendations as it may deem appropriate for the strengthening of educational research, the improvement of methods of collecting and disseminating the findings of educational research and
of insuring the implementation of educational renewal and reform
based upon the findings of educational research;

329

. ^Vj.

.C,,

Establishment.

':'*
,,
I.^ ' i ;

Members.

'

'

,

"

'^"

330

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

" (D) conduct such studies as may be necessary to fulfill its functions under this section;
" (E) prepare an annual report to the Assistant Secretary on the
current status and needs of educational research in the United
States;
Report to Presi" ( F ) submit an annual report to the President on the activities
ongress.
^^ ^j^^ Instltute, and on education and educational research in
general, (i) which shall include such recommendations and comments as the Council may deem appropriate, and (ii) shall be submitted to the Congress not later than March 31 of each year; and
" ( G ) meet at the call of the Chairman, except that it shall meet
(i) at least four times during each fiscal year, or (ii) whenever
one-third of the members request in writing that a meeting be held.
The Director shall make available to the Council such information and
assistance as may be necessary to enable the Council to carry out its
functions.
°^'"^^*°'"*'(d)(1) The Director of the Institute shall be appointed by the
President, by and with the advice and consent of the Senate, and shall
serve at the pleasure of the President. The Director shall be compensated at the rate provided for level V of the Executive Schedule under
80 Stat. 4 6 3 ;
section 5316 of title 5, L'nited States Code, and shall perform such
83 Stat. 864.
duties and exercise such powers and authorities as the Council, subject to the general supervision of the Assistant Secretary, may prescribe. The Director shall be responsible to the Assistant Secretary
and shall report to the Secretary through the Assistant Secretary and
not to or through any other officer of the Department of Health, Education, and Welfare. The Director shall not delegate any of his functions to any other officer who is not directly responsible to him.
"(2) There shall be a Deputy Director of the Institute (referred
to in this section as the 'Deputy Director') who shall be appointed
by the President and shall serve at the pleasure of the President. The
Deputy Director shall be compensated at the rate provided for grade
18 of the General Schedule set forth in section 5332 of title 5, United
5 u s e 5332
States Code, and shall act for the Director during the absence or disnote.
ability of the Director and exercise such powers and authorities as the
Director may prescribe. The position created by this paragraph shall
be in addition to the number of positions placed in grade 18 of the GenAnte, p . 112.
eral Schedule under section 5108 of title 5, United States Code.
Research.
"(e) (1) I n order to carry out the objectives of the Institute, the
Director is authorized, through the Institute, to conduct educational
research; collect and disseminate the findings of educational research;
train individuals in educational research; assist and foster such
research, collection, dissemination, or training through grants, or technical assistance to, or jointly financed cooperative arrangements with,
public or private organizations, institutions, agencies, or individuals;
promote the coordination of such research and research support within
the Federal Government; and may construct or provide (by grant or
otherwise) for such facilities as he determines may be required to
accomplish such purposes. As used in this subsection, the term 'educational research' includes research (basic and applied), planning, surveys, evaluations, investigations, experiments, developments, and
demonstrations in the field of education (including career education).
" (2) Not less than 90 per centum of the funds appropriated pursuant
to subsection (h) for any fiscal year shall be expended to carry out this
section through grants or contracts with qualified public or private
agencies and individuals.

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

331

" (3) The Director may appoint, for terms not to exceed three years,
without regard to the provisions of title 5 of the United States Code s use loi ef
ooveming appointment in the competitive service and may compensate ®^'^"
without regard to the provisions of chapter 51 and subchapter I I I of
5 u s e 5101,
chapter 53 of such title relating to classification and General Schedule 5331,
5332 note.
pay rates, such technical or professional employees of the Institute as
he deems necessary to accomplish its functions and also appoint and
compensate without regard to such provisions not to exceed one-fifth
of the number of full-time, regular technical or professional employees
of the Institute.
^
"(f) (1) The Director, in order to carry out the provisions of this
section, is authorized—
" ( A ) to make, promulgate, issue, rescind, aiid amend rules and ^"les and regulations.
regulations governing the manner of operation of the Institute;
" ( B ) to accept unconditional gifts or donations of services,
money or property, real, personal or mixed, tangible or intangible;
" ( C ) without regard to section 3648 of the Eevised Statutes of
the United States (31 U.S.C. 529), United States Code, to enter
into and perform such contracts, leases, cooperative agreements
or other transactions as may be necessary for the conduct of the
Institute's work and on such terms as he may deem appropriate
with any agency or instrumentality of the United States, or with
any State, territory or possession, or with any political subdivision thereof, or with any international organization oi' agency, or
with any firm, association, corporation or educational institution,
or with any person, without regard to statutory provisions prohibiting payment of compensation to aliens;
" ( D ) to acquire (by purchase, lease, condemnation or otherwise), construct, improve, repair, operate and maintain laboratories, research and testing facilities, computing devices,
communications networks and machinery, and such other real and
personal property or interest therein as deemed necessary;
" ( E ) to acquire (by purchase, lease, condemnation or otherwise)
and to lease to others or to sell such property in accordance wdth
the provisions of the Federal Property and Administrative
Services Act, patents, copyrights, computing programs, theatrical 63 Stat. 4377.
4 0 use 71
and broadcast performance rights or any form of property w^hat- note
soever or any rights thereunder; and
" ( F ) to use the services, computation capacity, communications
networks, equipment, personnel, and facilities of Federal and
other agencies with their consent, with or without reimbursement.
Each department and agency of the Federal Government shall
cooperate fully with the Director in making its services, equipment, personnel and facilities available to the Institute.
"(2) All laborers and mechanics employed by contractors or subcontractors on all construction projects assisted under this title shall
be paid wages at rates not less than those prevailing on similar
construction in the locality as determined by the Secretary of Labor
in accordance with the Davis-Bacon Act, as amended (40 TT.S.C.
276a—276a-5). The Secretary of Labor shall have with respect to 49Stat.ioii.
the labor standards specified in this section the authority and functions
set forth in Eeorganization Plan Numbered 14 of 1950 (15 F.R. 3176;
5 U.S.C. 133z-15) and section 2 of the Act of June 13, 1934, as 64 stat. i267.
amended (40U.S.C.276(c)).
'
Ll^auToa.
" ( g ) Where funds are advanced for a single project by more than
one Federal agency for the purposes of this section, the National
Institute of Education may act for all in administering the funds
advanced.

PUBLIC LAW 92-318-JUNE 23, 1972

332
Appropriation.

Effective d a t e .
Repeals.

Ante,

p . 326.

[86

STAT.

" (h) There are hereby authorized to be appropriated, without fiscal
year limitations, $550,000,000, in the aggregate, for the period beginning July 1,1972, and ending June 30,1975, to carry out the functions
of the Institute. Sums so appropriated shall, notwithstanding any
other provision of law unless enacted in express limitation of this subsection, remain available for the purposes of this subsection until
expended.".
(b) (1) The amendments made by subsection (a) shall be effective
after June 30,1972.
(2) (A) Effective July 1, 1972, sections 516 and 517 of the Revised
Statutes of the United States (20 U.S.C. 1,2) are repealed.
(B) Effective July 1, 1972, section 422 of the General Education
Provisions Act is amended by striking out " (as set forth in section 516
of the Revised Statutes (20 U.S.C. 1 ) ) " and inserting in lieu thereof
•• (as set forth in section 403 (a) of this Act) •'.
i'rn
L I M I T A T I O N S ON A U T H O R I T Y

" C o n s o lidation.'

!f,:^ Cfr

.VoSI
. Hi':

SEC. 302. (a) Section 421 of the General Education Provisions Act
(as so redesignated by section 301 (a) (1)) is amended by adding at the
end thereof the following:
"(c) (1) (A) Except in the case of a law which—
'' (i) authorizes appropriations for carrying out, or controls the
administration of, an applicable program, or
(;
*'(ii) is enacted in express limitation of the provisions of this
paragraph,
no provision of any law shall be construed to authorize the consolidation of any applicable program with any other program. Where the
provisions of law governing the administration of an applicable program permit the packaging or consolidation of applications for grants;
or contracts to attain simplicity or effectiveness of administration,
nothing in this subparagraph shall be deemed to interfere with such
packaging or consolidation.
" ( B ) No provision of any law which authorizes an appropriation
for carrying out, or controls the administration of, an applicable program shall be construed to authorize the consolidation of any such
program with any other program unless provision for such a consolidation is expressly made thereby.
•'(C) For the purposes of this subsection, the term 'consolidation*
means any agreement, arrangement, or the other procedure which results in—
" ( i ) the commingling of funds derived from one appropriation
with those derived from another appropriation,
,'
''(ii) the transfer of funds derived from an appropriation to
the use of an activity not authorized by the law authorizing such
appropriation,
" (iii) the use of practices or procedures which have the effect of
requiring, or providing for, the approval of an application for
funds derived from different appropriations according to any
criteria other than those for which provision is made (either
expressly or implicitly) in the law which authorizes the appropriation of such funds, or this title, or
"(iv) as a matter of policy the making of a grant or contract
involving the use of funds derived from one appropriation
dependent upon the receipt of a grant or contract involving the
use of funds derived from another appropriation.
•'(2) (A) No requirement or condition imposed by a law authorizing
appropriations for carrying out any applicable program, or controlling the administration thereof, shall be waived or modified, unless

86

STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

such a waiver or modification is expressly authorized by such law or
by a provision of this title or by a law expressly limiting the applicability of this paragraph.
" ( B ) There shall be no limitation on the use of funds appropriated
to carry out any applicable program other than limitations imposed
by the law authorizing the appropriation or a law controlling the
administration of such program; nor shall any funds appropriated to
carry out an applicable program be allotted, apportioned, allocated,
or otherwise distributed in any manner or by any method different
from that specified in the law authorizing the appropriation.
" (3) No person holding office in the executive branch of the Government shall exercise any authority which would authorize or effect any
activity prohibited by paragraph (1) or (2).
"(4) The transfer of any responsibility, authority, power, duty, or
obligation subject to this title, from the Commissioner to any other
officer in the executive branch of the Government, shall not affect the
applicability of this title with respect to any applicable program."
(b) The heading of such section 421 is amended to read as follows:
'

A D M I N I S T R A T I O X OF EDUCATION

PROGRAMS?5

(c) The provisions of section 421(c) of the General Education Pro\'isions Act shall be effective upon the date of enactment of this Act.
Xo provision of any law which is inconsistent with such section
421(c) shall be effective nor shall any such provision control to the
extent of such inconsistency, unless such a law is enacted after the date
of enactment of this Act.
A M E N D M E N T S TO T H E

COOPERATIVE RESEARCH

Effective d a t e .
Ante,

p . 332.

ACT

SEC. 303. (a) Effective July 1, 1972, the Cooperative Kesearch Act
is amended—
(1) in section 2 by striking out paragraph (3) of subsection (a)
and subsections (b) and (c) and by amending paragraph (1)
of subsection (a) to read as follows:
•'SEC. 2. (a) (1). In order to assist the Commissioner in carrying out
the purpose and duties of the Office of Education, the Commissioner
is authorized, during the period beginning July 1, 1972, and endingJune 30, 1976, to make grants to, and contracts with, public and pri\ ate institutions, agencies, and organizations for the dissemination of
information, for surveys, for exemplary projects in the field of education, and for the conduct of studies related to the management of the
Office of Education, except that no such grant may be made to a private agency, organization, or institution other than a nonprofit one.":
and
(2) by striking out section 3 of such Act and inserting in lien
thereof the following;
"SEC. 3. There are authorized to be appropriated for purposes of
section 2, $58,000,000 for the fiscal year ending June 30, 1973.
$68,000,000 for the fiscal year ending June 30,1974, and $78,000,000 for
the fiscal year ending June 30,1975.".
(b) Nothing contained in the amendments made by subsection (a)
shall be construed to grant the Commissioner of Education any
nuthority which he did not have under the Cooperative Research Act
prior to July 1,1972.

Effective d a t e .
68 Stat. 533;
79 Stat. 4 4 .
20 u s e 331
note.

20 u s e 332.
Appropriations.

EVALUATION

SEG. 304. P a r t B of the General Education ProA isions Act is amended
by adding at the end thereof the following new section:

Ante,

p . 326.

334

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

"EVALUATIONS BY THE COMPTKOLLER (iENEKAL

fsT"*^* *° ^°""

gres

Ante, p. 326.

"SEC. 417. (a) The Comptroller General of the United States shall
review, audit, and evaluate any Federal education program upon
request by a committee of the Congress having jurisdiction of the
statute authorizing such program or, to the extent personnel are available, upon request by a member of such committee. Upon such request,
he shall (1) conduct studies of statutes and regulations governing
such program; (2) review the policies and practices of Federal agencies administering such program; (3) review the evaluation procedures adopted by such agencies carrying out such program; and (4)
evaluate particular projects or programs. The Comptroller General
shall compile such data as are necessary to carry out the preceding
functions and shall report to the Congress at such times as he deems
appropriate his findings with respect to such program and his recommendations for such modifications in existing laws, regulations, procedures and practices as will in his judgment best serve to carry out
eifectively and without duplication the policies set forth in education
legislation relative to such program.
"(b) I n carrying out his responsibilities as provided in subsection
(a), the Comptroller General shall give particular attention to the
practice of Federal agencies of contracting with private fiiTns, organizations and individuals for the provision of a wide range of studies
and services (such as personnel recruitment and training, program
evaluation, and program administration) with respect to Federal
education programs, and shall report to the heads of the agencies
concerned and to the Congress his findings with respect to the necessity for such contracts and their effectiveness in serving the objectives
established in education legislation.
"<^c) I n addition to the sums authorized to be appropriated under
sectiou 400(c), there are authorized to be appropriated such sums as
may be necessary to carry out the purposes of this section.".
T I T L E I V — I X D I A N EDUCATKTX
SHORT TITLE

*

SEC. 401. This title may be cited as the "Indian Education Act."
1*ART A

K E V I S I O N O F IMPACTED A R E A S P R O G R A M AS IT RELATES TO
INWAN

(^ITILDREX

AMENDMENTS IX) PUliLIC LAW 8 7 4 , EIGimf-FIRST CONGRESS
64 Stat. 1100
20 u s e 236.

79 staT. Vs"*
20 use 242.

SEC. 411. (a) The Act of September 30, 1950 (Public Law 874,
Eighty-first Congi'ess), is amended by redesignating title I I I as title
TV, by redesignating sections 301 through 303 and references thereto
.^g sections 401 through 403, respectively, and by adding after title I I
the following new title:
" T I T L E I I I — F I N A N C I A L A S S I S T A N C E T O LOCAL EDUCAT I O N A L A G E N C I E S F O R TLIE E D U C A T I O N O F I N D I A N
CHILDREN
"SHORT

isE- .-T .sH>A

TITLE

"SEC. 301. This title may be cited as the 'Indian Elementary and
Secondary Scli(X)l Assistance Act'.
• , ?
. i

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

335

"DECLARATIOX OF POLICY

"SEC. 302. (a) In recognition of the special educational needs of
Indian students in the United States, Congress hereby dechires it to
be the policy of the United States to pr'o\dde financial assistance to
local educational agencies to develop and carry out elementary and
secondary school programs specially designed to meet these special
educational needs.
"(b) The Commissioner shall, in order to effectuate the policy set
forth in subsection ( a ) , carry out a program of making grants to local
educational agencies which are entitled to payments under this title
and which have submitted, and had approved, applications therefor, in
accordance with the provisions of this title.
"GRANTS TO LOCAL EDUCATIONAL AGENCIES

"SEC. 303. ( a ) ( 1 ) For the purpose of computing the amount to yfat^^JT'"^"*''°'""
which a local educational agency is entitled under this title for any
fiscal year ending prior to July 1, 1975, the Commissioner shall determine the number of Indian children who M^ere enrolled in the schools
of a local educational agency, and for whom such agency provided
free public education, during such fiscal year.
"(2) (A) The amount of the grant to which a local educational
agency is entitled under this title for any fiscal year shall be an
tXmount equal to (i) the average per pupil expenditure for such agency
(as determined under subparagraph (C)) multiplied by (ii) the sum
of the number of children determined under paragraph (1).
" ( B ) A local educational agency shall not be entitled to receive a
grant under this title for any fiscal year unless the number of children
under this subsection, with respect to such agency, is at least ten or constitutes at least 50 per centum of its total enrollment. The requirements
of this subparagraph shall not apply to any such agencies serving
Indian children in Alaska, California, and Oklahoma or located on, or
in proximity to, an Indian reservation.
" ( C ) For the purposes of this subsection, the average per pupil ^..^n^^^^^^^HH
pupil expenditure.
expenditure for a local educational agency shall be the aggregate current expenditures, during the second fiscal year preceding the fiscal
year for which the computation is made, of all of the local educational
agencies in the State in which such agency is located, plus any direct
current expenditures by such State for the operation of such agencies
(without regard to the sources of funds from which either of such
expenditures are made), divided by the aggregate number of children
who were in average daily enrollment for whom such agencies provided
free public education during such preceding fiscal year.
Non-local edu" ( b ) In addition to the sums appropriated for any fiscal year for cational
agencies.
grants to local educational agencies under this title, there is hereby
authorized to be appropriated for any fiscal year an amount not in
excess of 5 per centum of the amount appropriated for payments on the
basis of entitlements computed under subsection (a) for that fiscal year,
for the purpose of enabling the Commissioner to provide financial
assistance to schools on or near reservations whicli are not local educational agencies or have not been local educational agencies for more
than three years, in accordance with the appropriate provisions of this
title.
"I'SES OF FEDERAL FUNDS

"SEC. 304. Grants under this title may be used, in accordance with
applications approved under section 805, for—
" (1) planning for and taking other steps leading to the development of programs specifically designed to meet the special educa-

336

PUBLIC LAW 92-318-JUNE 23, 1972

';

[86 STAT.

tioiial needs of Indian children, including pilot projects designed
to test the effectiveness of plans so developed; and
"(2) the establishment, maintenance, and operation of programs, including, in accordance with special regulations of the
Commissioner, minor remodeling of classroom or other space used
for such programs and acquisition of necessary equipment,
specially designed to meet the special educational needs of Indian
children.
" A P P L I C A T I O N S FOR G R A N T S ; CONDITIONS FOR APPROVAL

"SEC. 805. (a) A grant under this title, except as provided in section
803(b), may be made only to a local educational agency or agencies,
and only upon application to the Commissioner at such time or times,
in such manner, and containing or accompanied by such information
Tjr jiK !e - .
f^s the Commissioner deems necessary. Such application shall—
" • *
" (1) provide that the activities and services for which assistance
;
under this title is sought will be administered by or under the
supervision of the applicant;
"(2) set forth a program for carrying out the purposes of section 304, and provide for such methods of administration as are
I . necessary for the proper and efficient operation of the program;
.''
"(3) in the case of an application for payments for planning,
.'^
provide that (A) the planning was or will be directly related to
J, programs or projects to be carried out under this title and has
resulted, or is reasonably likely to result, in a program or project
J.
which will be carried out under this title, and (B) the planning
.'^, funds are needed because of the innovative nature of the pro,j gram or project or because the local educational agency lacks the
resources necessary to plan adequately for programs and projects
to be carried out under this title;
!.:.
''(4) provide that effective procedures, including provisions for
ai^propriate objective measurement of educational achievement
. ,., / •,
will be adopted for evaluating at least annually the effectiveness
•laa::.! .
of the programs and projects in meeting the special educational
needs of Indian students;
;'
"(5) set forth policies and procedures which assure that Federal funds made available under this title for any fiscal year will
,j be so used as to supplement and, to the extent practical, increase
the level of funds that would, in the absence of such Federal funds,
J
be made available by the applicant for the education of Indian
I
children and in no case supplant such funds;
"(6) provide for such fiscal control and fund accounting pro-uj,
•.!>»"
cedures as may be necessary to assure proper disbursement of, and
* ^ • -~ •
accounting for, Federal funds paid to the applicant under this
title; and
Reports,
'^(7) provide for making an annual report and such other
!
reports, in such form and containing such information, as the
Commissioner may reasonably require to carry out his functions
under this title and to determine the extent to which funds
;
provided under this title have been effective in improving the
educational opportunities of Indian students in the area served,
and for keeping such r-ecord and for affording such access thereto
as the Commissioner may find necessary to assure the correctness
and verification of such reports.
'^ " ( b ) An application by a local educational agency or agencies for a
grant under this title may be approved only if it is consistent with the
applicable provisions of this title and—
_;>
"(1) meets the requirements set forth in subsection ( a ) ;

86

STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

'• (2) provides that the program or project for which application
is made—
•'(A) will utilize the best available talents and resources
(including persons from the Indian community) and will
substantially increase the educational opportunities of Indian
children in the area to be served by the applicant; and
" ( B ) has been developed—
"(i) in open consultation with parents of Indian children, teachers, and, where applicable, secondary school
students, including public hearings at which such persons
have had a full opportunity to understand the program
for which assistance is being sought and to oifer
recommendations thereon, and
" (ii) with the participation and approval of a committee composed of, and selected by, parents of children participating in the program for which assistance is sought,
teachers, and, where applicable, secondary school students of which at least half the members shall be such
parents;
" ( C ) sets forth such policies and procedures as will insure
that the program for which assistance is sought will be operated and evaluated in consultation with, and the involvement
of, parents of the children and representatives of the area to
be served, including the committee established for the purposes of clause (2) (B) (ii).
"(c) Amendments of applications shall, except as the Commissioner
may otherwise provide by or pursuant to regulations, be subject to
approval in the same manner as original applications.

337

Application
amendments.

ii P A Y M E N T S

"SEC. 306. (a) The Commissioner shall, subject to the provisions of
section 307, from time to time pay to each local educational agency
which has had an application approved under section 305, an amount
equal to the amount expended by such agency in carrying out activities
under such application.
"(b) (1) No payments shall be made under this title for any fiscal
year to any local educational agency in a State which has taken into
consideration payments under this title in determining the eligibility
of such local educational agency in that State for State aid, or the
amount of that aid, with respect to the free public education of children during that year or the preceding fiscal year.
"(2) Xo payments shall be made under this title to any local educational agency for any fiscal year unless the State educational agency
finds that the combined fiscal effort (as determined in accordance with
regulations of the Commissioner) of that agency and the State with
respect to the provision of free public education by that agency for
the preceding fiscal year was not less than such combined fiscal effort
for that purpose for the second preceding fiscal year.

Limitations.

" A D J U S T M E N T S W H E R E NECESSITATED BY APPROPRIATIONS

"SEC. 307. (a) If the sums appropriated for any fiscal year for making payments under this title are not sufiicient to pay in full the total
amounts which all local educational agencies are eligible to receive
under this title for that fiscal year, the maximum amounts which all
such agencies are eligible to receive under this title for such fiscal
year shall be ratably reduced. I n case additional funds become available for making such payments for any fiscal year, during which the

o'rt'i

338

80 Stat. 1191;
81 Stat. 787;
84 Stat. 1 2 1 .
20 u s e 2 4 1 c .

Supra,

79 Stat. 30;
81 Stat. 787;
84 Stat. 126.
20 u s e 2 4 1 e .

Effective d a t e .

64 Stat. 1106.
20 u s e 240.

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

first sentence of this subsection is applicable, such reduced amounts
shall be increased on the same basis as they were reduced.
"(b) I n the case of any fiscal year in which the maximum amounts
for which local educational agencies are eligible have been reduced
under the first sentence of subsection ( a ) , and in which additional
funds have not been made available to pay in full the total of such
maximum amounts under the second sentence of such subsection, the
Commissioner shall fix dates prior to which each local educational
agency shall report to him on the amount of funds available to it,
under the terms of section 306(a) and subsection (a) of this section,
which it estimates, in accordance with regulations of the Commissioner, that it will expend under approved applications. The amounts
so available to any local educational agency, or any amount which
would be available to any other local education agency if it were to
submit an approvable application therefor, which the Commissioner
determines will not be used for the period of its availability, shall be
available for allocation to those local educational agencies, in the manner provided in the second sentence of subsection ( a ) , which the Commissioner determines will need additional funds to carry out approved
applications, except that no local educational agency shall receive an
amount under this sentence which, when added to the amount available
to it under subsection ( a ) , exceeds its entitlement under section 303.''.
(b) (1) The third sentence of section 103(a) (1) (A) of title I of
the Elementary and Secondary Education Act of 1965 is amended
to read as follows: "In addition, he shall aljot from such amount to
the Secretary of the Interior—
" ( i ) the amount necessary to make payments pursuant to subparagraph ( B ) ; a n d
"(ii) in the case of fiscal years ending prior to July 1, 1973,
the amount necessary to make payments pursuant to subparagraph (C).".
(2) (A) Section 103(a)(1) of such title I is amended by adding
at the end thereof the following new subparagraph:
" ( C ) The maximum amount allotted for payments to the Secretary of the Interior under clause (ii) in the third sentence of subparagraph (A) for any fiscal year shall be the amount necessary to
meet the special educational needs of educationally deprived Indian
children on reservations serviced by elementary and secondary schools
operated for Indian children by the Department of the Interior, as
determined pursuant to criteria established by the Commissioner.
Such payments shall be made pursuant to an agreement between the
Commissioner and the Secretary containing such assurances and terms
as the Commissioner determines will best achieve the purposes of this
part. Such agreement shall contain (1) an assurance that payments
made pursuant to this subparagraph will be used solely for programs
and projects approved by the Secretary of the Interior which meet the
applicable requirements of section 141(a) and that the Department
of the Interior will comply in all other respects with the requirements
of this title, and (2) provision for carrying out the applicable provisions of sections 141(a) and 142(a)(3).".
(B) The fourth sentence of section 103(a) (1) (A) of such title I is
amended by striking out "and the terms upon which payment shall be
made to the Department of the Interior.".
(3) The amendments made by this subsection shall be effective on
and after July 1,1972.
(c)(1) Subsection (a) of section 5 of Public Law 874, 81st Congress, as amended, is amended by inserting " ( 1 ) " after " ( a ) " and by
inserting at the end thereof the following new paragraph (2) :

86 STAT.]

PUBLIC LAW 9 2 - 3 1 8 - J U N E 23, 1972

339

"(2) (A) Applications for payment on the basis of children determined mider section 3(a) or 3(b) who reside, or reside with a parent 20 use 238.
employed, on Indian lands shall set forth adequate assurance that
Indian children will participate on an equitable basis in the school
program of the local educational agency.
" ( B ) For the purposes of this paragraph, Indian lands means that
property included within the definition of Federal pi-operty under
Ante, p. 334.
clause (A) of section 403 (1).".
(2) (A) The Commissioner shall exercise his authority under section 425 of the General Education Provisions Act, to encourage local Ante, p. 326.
parental participation with respect to financial assistance under title I
of Public Law 874, 81st Congress, based upon children who reside on, 7/313^27^^°°'
or reside with a parent employed on, Indian lands.
si stat! s n ,
(B) For the purposes of this paragraph, the term "Indian lands" 2^ use 236.
means that property included within the definition of Federal prop- "^"dian lands.
erty under clause (A) of section 403(1) of Public Law 874, 81st
Congress.
PART B—SPKCIAL PROGRAMS AND PROJECTS T O IMPROVE EDICATIONAL
OPPORTUNITIES FOR INDIAN CHILDREN
AMENDMENT TO TITLE VIII OF THE ELEMENTARY AND KFX'ONDARY
EDUCATION

ACT

OF

1965

SEC. 421. (a) Title V I I I of the P^lementary and Secondary Education Act of 1965 is amended by adding to the end thereof the following „„^L^!^Von^/
>J

^^

'=^ 00

new section:
IMPROVEMENT OF EDICATIONAL OPPORTUNITIES FOR INDIAN CHILDREN
''SEC. 810. (a) The (commissioner shall carry out a program of mak-

Stat. 12U4;

si stat. 8I6;

84 Stat. 153.
20 u s e SSI.

ing grants for the improvement of educational opportunities for Indian
children—
"(1) to support planning, pilot, and demonstration projects,
in accordance with subsection (b), which are designed to test and
demonstrate the effectiveness of programs for improving educational opportunities for Indian children;
"(2) to assist in the establishment and operation of programs,
in accordance with subsection (c), which ai-e designed to stimulate
(A) the provision of educational services not available to Indian
children in sufficient quantity or quality, and (B) the development and establishment of exemplai-y educational programs to
.
serve as models for regular school programs in which Indian
children are educated;
"(3) to assist in the establishment and operation of preservice
and inservice training programs, in accordance with subsection
(d), for persons serving Indian children as educational per-sonnel :
and
"(4) to encourage the dissemination of infoi'mation and materials relating to, and the evaluation of the effectiveness of,
education programs which may offer educational o}>portunities
to Indian children.
In the case of activities of the type desci'ibed in clause (3) preference ra^s^'^^ndlan's""
shall be given to the training of Indians.
preference!^"^'
" ( b ) The Commissioner is authorized to make grants to State and
local educational agencies, federally supported elementary and secondary schools for Indian children and to Indian tribes, organizations,
and institutions to support planning, pilot, and demonstration projects

340

.^F,f-,

Educational
enrichment programs and services.

Education personnel.

Indians, preference.

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

which are designed to plan for, and test and demonstrate the effectiveness of, programs for improving educational oppoitunities for Indian
children, including—
"(1) innovative programs related to the educational needs of
educationally deprived children;
V.
" (2^ bilingual and bicultural education programs and projects;
"(3) special health and nutrition services, and other related
activities, which meet the special health, social, and psychological
problems of Indian children; and
•
"(4) coordinating the operation of other federally assisted
'
programs which may be used to assist in meeting the needs of
such children.
"(c) The Commissioner is also authorized to make grants to State
and local educational agencies and to tribal and other Indian communitv organizations to assist and stimulate them in developing and
establishing educational services and programs specifically designed
to improve educational opportunities for Indian children, (jrants may
be used—
"(1) to provide educational services not available to such children in sufficient quantity or quality, including—
" ( A ) remedial and compensatory instruction, school health,
I i/
physical education, psychological, and other services designed
to assist and encourage Indian children to enter, remain in, or
reenter elementary or secondary school;
^;
' ' ( B ) comprehensive academic and vocational instruction;
:;:<
" ( C ) instructional materials (such as library books, textbooks, and other printed or published or audiovisual materials) and equipment;
I . M •! •
" ( D ) comprehensive guidance, counseling, a n d testing
services;
ilj;=
" ( E ) special education programs for handicapped;
iijjw n
" ( F ) preschool programs;
" ( G ) bilingual and bicultural education programs; and
'
" ( H ) other services which meet the purposes of this subsection ; and
i;
U|^2) for the establishment and operation of exemplary and
innovative educational programs and centers, involving new
-*'' educational approaches, methods, and techniques designed to
enrich programs of elementary and secondary education for
Indian children.
" ( d ) The Commissioner is also authorized to make grants to institutions of higher education and to State and local educational agencies,
in combination with institutions of higher education, for carrying out
programs and projects—
"(1) to prepare persons to serve Indian children as teachers,
teacher aides, social workers, and ancillary educational personnel;
and
"(2) to improve the (qualifications of such persons who are
serving Indian children in such capacities.
Grants for the purposes of this subsection may be used for the
establishment of fellowship programs leading to an advanced degree,
for institutes and, as part of a continuing program, for seminars,
symposia, workshops, and conferences. I n carrying out the programs
authorized by this subsection, preference shall be giA'en to the training
of Indians.
"(e) The Commissioner is also authorized to make grants to and
contracts with, public agencies, and institutions and Indian tribes,
institutions, and organizations for—

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

"(1) tlie disseiiiination of infomiatioii concerning education
programs, services, and resources available to Indian children,
including evaluations thereof; and
''(2) the evaluation of the effectiveness of federally assisted
programs in which Indian children may participate in achieving
the purposes of such programs with respect to such children.
"(f) Applications for a grant under this section shall be submitted
at such time, in such manner, and shall contain such information,
and shall be consistent with such criteria, as may be established as
requirements in regulations promulgated by the Commissioner. Such
applications shall—
"(1) set forth a statement describing the activities for which
assistance is sought;
"(2) in the case of an application for the purposes of subsection
(c), subject to such criteria as the Commissioner shall prescribe,
provide for the use of funds available under this section, and for
the coordination of other resources available to the applicant, in
order to insure that, within the scope of the purpose of the project, there will be a comprehensive program to achieve the purposes of this section;
" (3) in the case of an application for the purposes of subsection
(c), make adequate provision for the training of the personnel
participating in the project; and
" (4) provide for an evaluation of the ell'ectiveness of the project
in achieving its purposes and those of this section.
The Commissioner shall not approve an application for a grant under
siibsection (b) or (c) unless he is satisfied that such application, and
any documents submitted with respect thereto, show that there has
been adequate participation by the parents of the children to be served
and tribal communities in the planning and development of the project, and that there will be such a participation in the operation and
evaluation of the project. In approving applications under this section,
the Commissioner shall give priority to applications from Indian
educational agencies, organizations, and institutions.
" ( g ) For the purpose of making grants under this section there are
hereby authorized to be appropriated $25,000,000 for the fiscal year
ending June 30, 1973, and $35,000,000 for each of the two succeeding
fiscal years.".
( b ) ( 1 ) ( A ) The third sentence of section 202(a)(1) of the Elementary and Secondary Education Act of 1965 is amended by striking
out "July 1, 1972," and inserting in lieu thereof "July 1, 1973,".
(B) The third sentence of section 302(a) (1) of the Elementary and
Secondary Education Act of 1965 is amended by striking out "July 1,
1972," and inserting in lieu thereof "July 1, 1973,".
(C) Clause (B) of section 612(a)(1) of Public Law 91-230 is
amended by striking out "July 1, 1972," and inserting in lieu thereof
"July 1,1973,".
(2) For the purposes of titles I I and I I I of the Elementary and
Secondary Education Act of 1965 and part B of title V I of Public
Law 91-230, the Secretary of the Interior shall have the same duties
and responsibilities with respect to funds paid to him under such titles,
as lie would have if the Department of the Interior were a State educational agency having responsibility for the administration of a State
plan under such titles.

341
informationdis^^'"'"^ti""Program evaiu^''°"*
Grants, appu''^*^°"*

Parental partici^^*^°"*

Appropriation,

84 stat, 130.
^° "^^ * " '
^^ fr'ifA'iio'
sSusciVu.

20 use 821,
20 use 1411

342

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

PART C—SPECIAL PROGRAMS KELATING TO ADULT EDUCATION FOR
INDIANS
'• '

AMENDMENT TO THE ADULT EDUCATION ACT

2ous^cnoi
note.

SEC. 431. Title I I I of the Elementary and Secondary Education
Amendments of 1966 (the Adult Education Act) is amended by
redesignating sections 314 and 315, and all references thereto, as
sections 315 and 316, respectively, and by adding after section 313 the
following new section:
" I M P R O V E M E N T OF EDUCATIONAL OPPORTUNITIES FOR ADULT INDIANS

,-,

,,

,

, ; ,

"SEC. 314. (a) The Commissioner shall carry out a program of
making grants to State and local educational agencies, and to Indian
tribes, institutions, and organizations, to support planning, pilot, and
demonstration projects which are designed to plan for, and test and
demonstrate the effectiveness of, programs for providing adult educa(ion for Indians—•
"(1) to support planning, pilot, and demonstration projects
which are designed to test and demonstrate the effectiveness of
programs for improving employment and educational opportunities for adult Indians;
"(2) to assist in the establishment and operation of programs
which are designed to stimulate (A) the provision of basic literacy
opportunities to all nonliterate Indian adults, and (B) the provision of opportunities to all Indian adults to qualify for a high
school equivalency certificate in the shortest period of time feasible;
"(3) to support a major research and development program to
develop more innovative and effective techniques for achieving
the literacy and high school equivalency goals;
"(4) to provide for basic surveys and evaluations thereof to
define accurately the extent of the problems of illiteracy and
lack of high school completion on Indian reservations;
"(5) to encourage the dissemination of information and materials relating to, and the evaluation of the effectiveness of.
education programs which may offer educational opportunities
to Indian adults.
''(b) The Commissioner is also authorized to make grants to, and
contracts with, public agencies, and institutions, and Indian tribes,
institutions, and organizations for—
"(1) the dissemination of information concerning educational
programs, services, and resources available to Indian adults,
including evaluations thereof; and
"(2) the evaluation of the effectiveness of federally assisted
programs in which Indian adults may participate in achieving the
purposes of such programs with respect to such adults.
•' (c) Applications for a grant under this section shall be submitted
at such time, in such manner, and contain such information, and shall
be consistent with such criteria, as may be established as requirements
in regulations promulgated by the Commissioner. Such applications
shall—
"(1) set forth a statement describing the activities for which
assistance is sought;
" (^2) provide for an evaluation of the effectiveness of the project in achieving its purposes and those of this section.

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

343

The Commissioner shall not approve an application for a grant under Tribal particisubsection (a) unless he is satisfied that such application, and any doc- priority." '^"^'
uments submitted with respect thereto, indicate that there has been
adequate participation by the individuals to be served and tribal
communities in the planning and development of the project, and
that there will be such a participation in the operation and evaluation
of the project. I n approving applications under subsection ( a ) , the
Commissioner shall give priority to applications from Indian educational agencies, organizations, and institutions.
" (d) For the purpose of making grants under this section there are Appropriation.
hereby authorized to be appropriated $5,000,000 for the fiscal year
ending June 30, 1973, and $8,000,000 for each of the two succeeding
fiscal years.".
PART D — O F F I C E OF INDIAN EDUCATION
OFFICE OF INDIAN EDUCATION

SEC. M l . (a) There is hereby established, in the Office of Education,
a bureau to be known as the "Office of Indian Education" which, under
the direction of the Commissioner, shall have the responsibility for
administering the provisions of title I I I of the Act of September 30,
1950 (Public Law 874, Eighty-first Congress), as added by this Act,
section 810 of title V I I I of the Elementary and Secondary Education
Act of 1965, as added by this Act, and section 314 of title I I I of the
Elementary and Secondary Education Amendments of 1966, as added
by this Act. The Office shall be headed by a Deputy Commissioner of
Indian Education, who shall be appointed by the Commissioner of
Education from a list of nominees submitted to him by the National
Advisory Council on Indian Education.
(b) The Deputy Commissioner of Indian Education shall be compensated at the rate prescribed for, and shall be placed in, grade 18 of
the General Schedule set forth in section 5332 of title 5,1'nited States
Code, and shall perform such duties as are delegated or assigned to him
by the Commissioner. The position created by this subsection shall be
in addition to the number of positions placed in grade 18 of such General Schedule under section 5108 of title 5, LTnited States Code.
'
N A T I O N A L ADVISORY C O U N C I L ON I N D I A N

Ante, p. 334.
Ante, p. 339.
^"'^' P- ^'^'^•

n,i^sf"ngr*^ofTd .
™a\To^n."^'^ °
^^^^^^ ^^^^
, ^"^ ^'^*; /r*^^'
Ante,

p . 112.

EDUCATION

SEC. 442. (a) There is hereby established the National Advisory
Council on Indian Education (referred to in this title as the "National
Council"), which shall consist of fifteen members who are Indians and
Alaska Natives appointed by the President of the Laiited States. Such
appointments shall be made by the President from lists of nominees
furnished, from time to time, by Indian tribes and organizations, and
shall represent diverse geographic areas of the country,
(b) The National Council shall—
(1) advise the Commissioner of Education with respect to the
administration (including the development of regulations and of
administrative practices and policies) of any program in which
Indian children or adults participate from Avhich they can benefit, including title I I I of the Act of September 30, 1950 (Public
Law 874, Eighty-first Congress), as added by this Act, and section
810, title V I I I of the Elementary and Secondary Education Act of
1965, as added by this Act and with respect to adequate funding
thereof:

-081 O - 73 - 25

Establishment.

Establishment.

344

PUBLIC LAW 92-318-JUNE 23, 1972

Ante, p . 334.
Ante, p. 3 3 9 .
Ante, p . 342.

Ante, p . 3 3 5 .
Annual report
to C o n g r e s s .

Contract
authority.

Ante,

p . 326.

[86

STAT.

(2) review applications for assistance under title I I I of the
Act of September 30, 1950 (Public Law 874, Eighty-first Congress), as added by this Act, section 810 of title V I I I of the Elementary and Secondary Education Act of 1965, as added by this
Act, and section 314 of the Adult Education Act, as added by this
Act, and make recommendations to the Commissioner with respect
to their approval;
(3) evaluate program and projects carried out under any program of the Department of Health, Education, and Welfare in
which Indian children or adults can participate or from which
they can benefit, and disseminate the results of such evaluations;
(4) provide technical assistance to local educational agencies
and to Indian educational agencies, institutions, and organizations to assist them in improving the education of Indian children;
(5) assist the Commissioner in developing criteria and reguhitions for the administration and evaluation of grants made under
section 303(b) of the Act of September 30, 1950 (Public Law
874, Eighty-first Congress) ; and
(6) to submit to the Congress not later than March 31 of each
year a report on its activities, which shall include any recommendations it may deem necessary for the improvement of Federal education programs in which Indian children and adults
participate, or from which they can benefit, which report shall
include statement of the Xational Council's recommendations to
the Commissioner with respect to the funding of any such programs.
(c) With respect to functions of the National Council stated in
clauses ( 2 ) , ( 3 ) . and (4) of subsection ( b ) , the National Council is
authorized to contract with any public or private nonprofit agency,
institution, or organization for assistance in carrying out such
functions.
(d) From the sums appropriated pursuant to section 400(c) of the
General Education Provisions Act which ate available for the purposes of section 411 of such Act and for part D of such Act, the Commissioner shall make available such sums as may be necessary to enable
the National Council to carry out its functions under this section.
PART E—MISCELLANEOUS PROVISIONS
A M E N D M E N T TO T I T L E V OF H I G H E R EDUCATION ACT OF 1 9 6 5

81 Stat. 83,
20 u s e 1091b.

81 Stat. 9 1 ;
82 Stat. 1040;
Ante, p . 2 8 5 .
20 u s e 1119.

SEC. 451. (a) Section 503(a) of the Higher Education Act of 1965
is amended by inserting after "and higher education," the following:
"including the need to provide such programs and education to
Indians,'-.
(b) P a r t D of title V of the Higher Education Act of 1965 is
amended by adding after section 531 the following new section:
'"

I n d i a n s , preference.

i- 1 ; ,'

' ' T E A C H E R S FOR I N D I A N C H I L D R E N

• ' S E C 532. Of the sums made available for the purposes of this part,
not less than 5 per centum shall be used for grants to, and contracts
with, institutions of higher education and other public and private
nonprofit agencies and organizations for the purpose of preparing
persons to serve as teachers of children living on reservations serviced
by elementary and secondary schools for Indian children operated or
supported by the Department of the Interior, including public and
private schools operated by Indian tribes and by nonprofit institutions
and organizations of Indian tribes. I n carrying out the provisions of
this section preference shall be given to the training of Indians.".

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

345

A M E N D M E N T TO T H E E L E M E N T A R Y A N D SECONDARY EDUCATION ACT OF 1 9 G 5

SEC. 452. Section 706(a) of the Elementary and Secondary Education Act of 1965 is amended to read as follows:
84 stat. 152.
" S E C 706. (a) For the purpose of carrying out programs pursuant LoJil^educal^^*
to this title for individuals on or from reservations serviced by elemen- tionai agency
tary and secondary schools operated on or near such reservations for st^'"^.
Indian children, a nonprofit institution or organization of the Indian
tribe concerned which operates any such school and which is approved by the Commissioner for the purpose of this section, may be
considered to be a local educational agency, as such term is used in
. ^
this title.".
< .. —^DEFINITION

SEC. 453. For the purposes of this title, the term "Indian" means
any individual who (1) is a member of a tribe, band, or other organized group of Indians, including those tribes, bands, or groups terminated since 1940 and those recognized now or in the future by the
State in which they reside, or who is a descendant, in the first or second degree, of any such member, or (2) is considered by the Secretary
of the Interior to be an Indian for any purpose, or (3) is an Eskimo
or Aleut or other Alaska Native, or (4) is determined to be an Indian
under regulations promulgated by the Commissioner, after consultation with the National Advisory Council on Indian Education, which
regulations shall further define the term "Indian".

"Indian."

TITLE V—MISCELLANEOUS
A D M I N I S T R A T I O N OF PROGRAMS AND

PROJECTS

S E C 501. Section 434 of the General Education Provisions Act is
amended by—
(1) amending the caption head thereof to read "ADMINISTRATION

^"'^' "' ^^^•

OF EDUCATION PROGRAMS A N D P R O J E C T S " ;

(2) striking out " ( a ) " after " S E C 434." and inserting in lieu
thereof " ( a ) ( 1 ) " and striking out " ( b ) " and inserting in lieu
thereof " ( 2 ) " ;
(3) adding at the end thereof the following new subsection:
" (b) Each application for assistance under any applicable program,
with respect to which the Commissioner determines that this subsection
should apply, whether such application is approved by the Commissioner or by an agency administering a State plan approved by him
and each State plan submitted to the Commissioner under any applicable program shall, as a precondition for approval—
" (1) provide for such methods of administration as are necessary for the proper and efficient administration of the program or
project for which application is made ;
" (2) make provision for such fiscal control and fund accounting
procedures as may be necessary to assure proper disbursement of,
and accounting for, Federal funds paid to the applicant under
the application; and
" (3) provide for making such reports as the Commissioner may
require to carry out his functions.".
E X T E N S I O N OF A U T H O R I Z A T I O N OF APPROPRIATIONS OF T I T L E I I I OF T H E
N A T I O N A L D E F E N S E EDUCATION ACT OF 1 9 o 8

SEC. 502. (a) The first sentence of section 301 of the National
Defense Education Act of 1958 is amended by striking out "for the g/stat^Vga"^^'
fiscal year ending June 30, 1971" and inserting in lieu thereof "for 20 use 44*1.
each of the succeeding fiscal years ending prior to July 1, 1975".

346
82 Stat. 1052.
20 u s e 441.

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

(b) The second sentence of such section 301 is amended by striking
out "July 1. 1971*' and inserting in lieu thereof "July 1, 1975".
STUDY AXD REPORT ON RULES AND REGULATIONS

Ante, p. 326.

Report to congressional committees.

Publication in
Federal Register.

Report to congressional committees.

Publication in
Federal Register;
effective date.

SEC. 503. (a) The Commissioner shall conduct a study of all rules,
regulations, guidelines, or other published interpretations or orders
issued by him or by the Secretary of Health, Education, and Welfare
(or any of their delegates) in connection with, or affecting, the administration of any program to which the General Education Provisions
Act applies, which have been issued after June 30, 1965. Such study
shall include a review of each such rule, regulation, guideline, interpretation, or order as it relates to the statutoiy or other legal authority
upon which it is based, and to committee reports relating to such statutory authority.
(b) No later than one year after the enactment of this Act, the Commissioner shall submit a report on the study conducted pursuant to
subsection (a) to the Committee on Labor and Public Welfare of the
Senate and the Committee on Education and Labor of the House of
Representatives which report shall include the specific legal authority
of each section, or other division, of each rule, regulation, guideline,
interpretation, or other order to which this section applies.
(c) Not later than sixtj days after the date of submission of the
report required by subsection (b) of this section, all rules, regulations,
guidelines, interpretations, or other orders to which this section applies
shall be published in the Federal Register. During'the sixty-day period
follow^ing such publication, the Commissioner shall provide interested
parties an opportunity for a public hearing on the matters so
published.
(d) After a study of comments and recommendations offered to the
Commissioner during the sixty-day period specified in subsection (c),
he shall submit a report to the Committee on Labor and Public Welfare
of the Senate and the Committee on Education and Labor of the House
of Representatives on such comments and recommendations, and any
action he has taken as a result thereof, and he shall, not later than sixty
days after the period specified in subsection (c), republish all rules,
regulations, guidelines, interpretations and orders in the Federal
Register, which shall supersede all preceding rules, regulations, guidelines, interpretations and orders issued in connection with, or affecting,
any program to which the General Education Provisions Act applies,
and become effective thirty days after such republication.
ETHNIC HERITAGE STUDIES PROGRAM

79 Stat. 27;
Ante, p. 339.
20 u s e 821
note.

SEC. 504. (a) The Elementary and Secondary Education Act of
1965 is amended by adding at the end thereof the following new title:
"TITLE IX—ETHNIC H E R I T A G E PROGRAM
"STATEMENT OF POLICY

"SEC. 901. In recognition of the heterogeneous composition of the
Nation and of the fact that in a multiethnic society a greater understanding of the contributions of one's own heritage and those of one's
fellow citizens can contribute to a more harmonious, patriotic, and
committed populace, and in recognition of the principle that all
persons in the educational institutions of the Nation should have an
opportunity to learn about the differing and unique contributions to
the national heritage made by each ethnic group, it is the purpose of
this title to provide assistance designed to afford to students oppor-

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

347

tunities to learn about the nature of their own cultural heritage, and
to study the contributions of the cultural heritages of the other ethnic
groups of the Nation.
aE T H N I C

H E R I T A G E STUDIES PROGRAMS

"SEC. 902. The Commissioner is authorized to make grants to, and
contracts with, public and private nonprofit educational agencies,
institutions, and organizations to assist them in planning, developing,
establishing, and operating ethnic heritage studies programs, as
provided in this title.
ii

G r a n t s , contract authority.

AUTHORIZED ACTIVITIES

"SEC. 903. Each program assisted under this title shall—
"(1) develop curriculum materials for use in elementary and
secondary schools and institutions of higher education relating
to the history, geography, society, economy, literature, art, music,
drama, language, and general culture of the group or groups with
which the program is concerned, and the contributions of that
ethnic group or groups to the American heritage;
"(2) disseminate curriculum materials to permit their use in
elementary and secondary schools and institutions of higher
education throughout the Nation;
"(3) provide training for persons using, or preparing to use,
curriculum materials developed under this title; and
"(4) cooperate with persons and organizations with a special
interest in the ethnic group or groups with which the program is
concerned to assist them in promoting, encouraging, developing,
or producing programs or other activities which relate to the
history, culture, or traditions of that ethnic group or groups.
aAPPLICATIONS

"SEC. 904. (a) Any public or private nonj)roJEit agency, institution,
or organization desiring assistance under this title shall make appli>• ;
cation therefor in accordance with the provisions of this title and
other applicable law and with regulations of the Commissioner promulgated for the purposes of this title. The Commissioner shall Approval, condiapprove an application under this title only if he determines that—
*'°"^'
"(1) the program for which the application seeks assistance
will be operated by the applicant and that the applicant will carry
out such program m accordance with this title;
.
"
"(2) such program will involve the activities described in section 903; and
"(3) such program has been planned, and will be carried out,
in consultation with an advisory council which is representative
of the ethnic group or groups with which the program is concerned and which is appointed in a manner prescribed by regulation.
"(b) I n approving applications under this title, the Commissioner coordfnauon.
shall insure that there is cooperation and coordination of efforts among
the programs assisted under this title, including the exchange of materials and information and joint programs where appropriate.
"ADMINISTRATIVE PROVISIONS

"SEC. 905. (a) I n carrying out this title, the Commissioner shall
make arrangements which will utilize (1) the research facilities and
personnel of institutions of higher education, (2) the special knowl-

348

PUBLIC LAW 92-318-JUNE 23, 1972

Funds, use.

[86 STAT.

edge of ethnic groups in local communities and of foi'eign students
pursuing their education in this country, (3) the expertise of teachei"S
in elementary and secondary schools and institutions of higher education, and (4) the talents and experience of any other groups such
as foundations, civic groups, and fraternal organizations wliich would
further the goals of the programs.
" (^^ Fuuds appropriated to carry out this title nuiy be used to cover
all or part of the cost of establishing and carrying out the programs,
including the cost of research materials and resources, academic consultants, and the cost of training of staif for the purpose of carrying
out the purposes of this title. Such funds may also be used to provide
stipends (in such amounts as may be determined in accordance with
regulations of the Commissioner) to individuals receiving ti-aining as
part of such programs, including allowances for dependents.
''NATIONAL ADVISORY COUNCIL

Ante,

p. 326.

"SEC. 906. (a) There is hereby established a National Advisory
Council on Ethnic Heritage Studies consisting of fifteen members
appointed by the Secretary who shall be appointed, serve, and be compensated as provided in part D of the General Education Provisions
Act.
"(b) Such Council shall, with respect to the pi'ogi'am authorized by
this title, carry out the duties and functions specified in part D of the
General Education Provisions Act.
-

Effective d a t e .

•

''APPROPRIATIONS AUTHORIZED

"SEC. 907. For the purpose of carrying out this title, there are
authorized to be appropriated $15,000,000 for the fiscal year endingJune 80, 1973. Sums appropriated pursuant to this section shall, notwithstanding any other provision of law unless enacted in express
limitation of this sentence, remain available for expenditure and
obligation until the end of the fiscal year succeeding the fiscal year for
which they were appropriated.".
(b) The amendment made by subsection (a) shall be ett'ective after
June 30, 1972.
CONSUMERS* EDUCATION

Ante, p. 339.

SEC. 505. (a) (1) The Congress of the United States finds that there
do not exist adequate resources for educating and informing consumer's
nbout their role as participants in the marketplace.
(2) I t is the purpose of the amendment made by this section to
encourage and support the development of new improved curricula to
prepare consumers for participation in the marketplace to demonstrate
the use of such curriculums in model educatiorral programs and to evaluate the effectiveness thereof; to provide support for the initiation and
maintenance of programs in consumer education at the elemerrtary and
secondary and higher education levels; to disseminate curricular materials and other information for use in educational programs throughout
the Nation; to provide training programs for teachers, other educational personnel, public service personnel, and community and labor
leaders and employees, and government employees at State, Federal,
and local levels; to provide for Community Consumer education programs ; and to provide for the preparation and distribution of materials
by mass media in dealing with consumer education.
(3) Title V I I I of the Elementary and Secondary Education Act of
IQQ^ is amended by adding at the end thereof the following new
section:

86

STAT.]

PUBLIC LA\V 92-318-JUNE 23, 1972

349

"CONSUMERS' EDUCATION PROGRAMS

"Sec. 811. (a) There shall be within the Office of Education, a Director of Consumers' Education (hereafter in this section referred to as
the 'Director') who, subject to the management of the Commissioner,
shall have primary responsibility for carrying out the provisions of
this section.
" ( b ) ( 1 ) ( A ) The Director shall carry out a program of making
grants to, and contracts with, institutions of higher education, State
and local educational agencies, and other public and private agencies,
organizations, and institutions (includmg libraries) to support
research, demonstration, and pilot projects designed to provide consumer education to the public except that no grant may be made other
than to a nonprofit agency, organization, or institution.
" ( B ) Funds appropriated for grants and contracts under this section shall be available for such activities as—
"(i) the development of curricula (including interdisciplinary
curricula) in consumer education;
"(ii) dissemination of information relating to such curricula;
"(iii) in the case of grants to State and local educational
agencies and institutions of higher education, for the support of
education programs at the elementary and secondary and higher
education levels; and
"(iv) preservice and inservice training programs and projects
(including fellowship programs, institutes, workshops, symposiums, and seminars) for educational personnel to prepare them
to teach in subject matter areas associated with consumer education.
I n addition to the activities specified in the first sentence of this paragraph, such funds may be used for projects designed to demonstrate,
test, and evaluate the effectiveness of any such activities, whether or
not assisted under this section. Activities pursuant to this section shall
provide bilingual assistance when appropriate.
" ( C ) Financial assistance under this subsection may be made available only upon application to the Director. Applications under this
subsection sliall be submitted at such time, in such form, and containing
such information as the Director shall prescribe by regulation and
shall be approved only if it—
" (i) provides that the activities and service for which assistance
is sou8:ht will be administered by, or under the supervision of, the
applicant;
"(ii) describes a pro.QTam for carrying out one or more of the
purposes set forth in the first sentence of paragraph (2) which
holds promise of making a substantial contribution toward
attaining the purposes of this section;
"(iii) sets forth such policies and procedures as will insure
adequate evaluation of the activities intended to be carried out
under the application;
" (iv) sets forth policies and procedures which assure that Federal funds made available under this section for any fiscal year
will be so used as to supplement and, to the extent practical,
increase the level of funds that would, in the absence of such
Federal funds, be made available by the applicant for the purposes
described in this section, and in no case supplant such funds;
"(v) provides for such fiscal control and fund accounting
procedures as may be necessary to assure proper disbursement
of an accounting for Federal funds paid to tlie applicant under
this section: and

Director of
Consumers' Education.

Grants, contract authority.

Prohibition.
Funds, use.

Bilingual assistance.
Applications.

350
Reports, recordkeeping.

State educational agency,
notification.
Program costs,
Federal share.

Reports; evaluations.
Appropriations.

Effective date.

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

"(vi) provides for making an annual report and such other
reports, in such form and containing- such information, as the
Commissioner may reasonably require and for keeping such
records, and for affording such access thereto as the Commissioner
may find necessary to assure the correctness and verification of
such reports.
Applications from local educational agencies for financial assistance
under this section may be approved by the Director only if the State
educational agency has been notified of the application and been given
the opportunity to offer recommendations.
"(2) Federal assistance to any program or project under this subsection, other than those involving curriculum development, dissemination of curricular materials, and evaluation, shall support up to 100
per centum of the cost of such program including costs of administration ; contributions in kind are acceptable as local contributions to program costs.
"(c) Each recipient of Federal funds under this section shall make
such reports and evaluations as the Commissioner shall prescribe by
regulation.
" ( d ) There is authorized to be appropriated $20,000,000 for the fiscal
vear ending June 30, 1973; $25,000,000 for the fiscal year ending
June 30, 1974; and $35,000,000 for the year ending June 30, 1975, for
carrying out the purposes of this section.".
(b) The amendment made by this section shall be effective after
June 30, 1972.
LAND-GRANT STATUS FOR THE COLLEGE OF THE VIRGIN ISLANDS AND THE
UNIVERSITY OF GUAM

Appropriation.

7 u s e 321-326,
328.

74 Stat. 525;
82 Stat. 241.

SEC. 506. (a) The College of the Virgin Islands and the University
of Guam shall be considered land-grant colleges established for the
benefit of agriculture and mechanic arts in accordance with the provisions of the Act of July 2, 1862, as amended (12 Stat. 503; 7 U.S.C.
301-305,307,308).
(b) In lieu of extending to the Virgin Islands and Guam thope provisions of the Act of July 2,1862, as amended, relating to donations of
public land or land scrip for the endowment and maintenance of colleges for the benefit of agriculture and the mechanic arts, there is
authorized to be appropriated $3,000,000 to the Virgin Islands and
$3,000,000 to Guam. Amounts appropriated pursuant to this section
shall be held and considered to have been granted to the Virgin Islands
and Guam subject to the provisions of that Act applicable to the
proceeds from the sale of land or land scrip.
(c) The Act of August 30,1890 (26 Stat. 417; 7 U.S.C. 3-22-326) is
amended by adding at the end thereof the following new section:
"SEC. 5. There is authorized to be appropriated annually for payment to the Virgin Islands and Guam the amount they would receive
under this Act if they were States. Sums appropriated under this section shall be treated in the same manner and be subject to the same
provisions of law, as would be the case if they had been appropriated
by the first sentence of this Act.".
(d) Section 22 of the Act of June 29,1935, as amended (49 Stat. 439;
7 U.S.C. 329), is further amended—
(1) by striking out "and Puerto Rico" wherever it appears and
inserting in lieu thereof the following: ", Puerto Rico, the Virgin
Islands, and Guam";
(2) by striking out "$7,800,000" and inserting in lieu thereof the
figure "$8,100,000"; and

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

(3) by striking out "$4,320,000" and inserting in lieu thereof
the figure "$4,360,000".
(e) The Act of March 4, 1940 (54 Stat. 39; 7 U.S,C. 331) is
amended—
(1) by striking out "and Territories'' wherever it appears and
inserting in lieu thereof the following: ", Puerto Kico, the Virgin
Islands, and Guam";
(2) by striking out "or Territories" w^herever it appears and
inserting in lieu thereof the following: ", Puerto Rico, the Virgin
Islands, or Guam"; and
(3) by striking out "State" wherever it appears in the third
proviso of that Act and inserting in lieu thereof the folloAving:
"State, Puerto Rico, the Virgin Islands, or Guam".
(f) Section 207 of the Agricultural Marketing Act of 1946 (60 Stat.
1091; 7 U.S.C. 1626), is amended by striking out the period at the end
of the section and inserting in lieu thereof the following: ", and the
term 'State' when used in this chapter shall include the Virgin Islands
and Guam.".
(g) Section 3 of the Act of May 8,1914, as amended (38 Stat. 373; 7
T'.S.C. 343), is further amended by inserting " ( 1 ) " immediately after
the designation of subsection (b) thereof and by adding at the end of
subsection (b) thereof a new paragraph (2) as follows;
"(2) There is authorized to be appropriated for the fiscal year ending June 30, 1971, and for each fiscal year thereafter, for payment
to the Virgin Islands and Guam, $100,000 each, which sums shall be in
addition to the sums appropriated for the several States of the United
States and Puerto Rico under the provisions of this section. The
amount paid by the Federal Government to the Virgin Islands and
Guam pursuant to this paragraph shall not exceed during any fiscal
year, except the fiscal years ending June 30, 1971, and June 30, 1972,
when such amount m a j be used to pay the total cost of providing
services pursuant to this Act, the amount available and budgeted for
expenditure by the Virgin Islands and Guam for the purposes of this
Act.".
(h) Section 10 of the Act of May 8, 1914, is amended by striking
out "and Puerto Rico" and inserting in lieu thereof the following:
", Puerto Rico, the Virgin Islands, and Guam".
(i) Section 4 of the Act of October 10, 1962 (76 Stat. 806; 16
U.S.C. 582a-3), is amended by striking out the period at the end of the
first sentence thereof and inserting in lieu thereof the following:
", except that for the fiscal years ending June 30, 1971, and June 30,
1972, the matching funds requirement hereof shall not be applicable to
the Virgin Islands and Guam, and sums authorized for such years for
the Virgin Islands and Guam may be used to pay the total cost of programs for forestrv research.".
(j) Section^8 of the Act of October 10, 1962 (76 Stat. 807; 16
U.S.C. 582a-7), is amended by striking out the period at the end
thereof and inserting in lieu thereof the following: ", the Virgin
Islands, and Guam.".
(k) Section 1 of the Act of August 11, 1955 (7 U.S.C. 361a-361i), is
amended by striking out the period at the end of the second sentence
and inserting in lieu thereof the following: "Guam and the Virgin
Islands," and striking out "and" between the words "Hawaii and
Puerto Rico.".
(1) Section 3 of the Act of August 11,1955 (7 U.S.C. 361a-361i) is
amended by redesignating subsection (b) as paragraph (1) of subsection (b), and adding a new paragraph (2) to subsection (b) to read as
follows:

351

^7 stat. 84;
Appropriation.

^ use 349.

? o i
^^ ^tat. 671.

352

Effective d a t e .

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

"(2) There is authorized to be appropriated for the fiscal year ending June 30,1973, and for each fiscal year thereafter, for payment to
the Virgin Islands and Guam, $100,000 each, which sums shall be in
addition to the sums appropriated for the several States of the LTnited
States and Puerto Rico under the provisions of this section. The amount
paid by the Federal Government to the Virgin Islands and Guam pursuant to this paragraph shall not exceed during any fiscal year, except
the fiscal years ending June 30, 1971, and June 30, 1972, when such
amount may be used to pay the total cost of providing services pursuant
to this Act, the amount available and budgeted for expenditure by the
Virgin Islands and Guam for the purposes of this Act."
(m) With respect to the Virgin Islands and Guam, the enactment of
this section shall be deemed to satisfy any requirement of State consent contained in laws or provisions of law referred to in this section.
(n) The amendments made by this section shall be effective after
June30,1970.
A M E N D M E N T S TO T H E E L E M E N T A R Y A N D SECONDARY EDUCATION ACT O F
1 9 6 5 W I T H RESPECT TO MIGRATORY C H I L D R E N OF MIGRATORY AGRICUL. T U R A L WORKERS

80 Stat. 1192;
81 Stat. 787;
84 Stat. 126.
20 u s e 2 4 1 e .

Study.
79 Stat. 27;
80 Stat. 1198;
81 Stat. 787.
20 u s e 241a.

Report.

. I ? 3 ,)«.j8..

SEC. 507. (a) Section 141(c) (1) of title I of the Elementary and Secondary Education Act of 1965 is amended by striking out the word
"and" at the end of clause (B) of such section, by redesignating clause
(C) of such section as clause ( D ) , and by inserting immediately after
clause (B) the following new clause ( C ) :
" ( C ) that, effective after June 30, 1972, in planning and carrying out programs and projects, there has been adequate assurance
that provision will be made for the preschool educational needs of
migratory children of migratory agricultural workers, whenever
such agency determines that compliance with this clause will not
detract from the operation of programs and projects described in
clause (A) of this paragraph after considering the funds available for this purpose; and".
(b) Section 141(c) (3) of such title I is amended by adding at the
end thereof the following new sentence: "Such children who are
presently migrant, as determined pursuant to regulations of the Commissioner, shall be given priority in the consideration of programs and
activities contained in applications submitted under this subsection.".
(c) (1) The Commissioner shall conduct a study of the operation of
title I of the Elementary and Secondary Education Act of 1965 as such
title affects the education of migratory children of migratory agricultural workers. Such study shall include an evaluation of the specific
programs and projects assisted under such title I for such children,
with a view toward the assessment of their effectiveness, and shall
include a review of the administration of such programs and projects
by the States.
(2) Not later than December 31, 1973, the Commissioner shall submit a report on the study required by paragraph (1), which report shall
contain a statement with respect to the effectiveness of individual programs and projects assisted under such title I with respect to migrant
children, an evaluation of State administration of such programs and
projects, and make recommendations for the improvement of such
programs and projects.
T E C H N I C A L A M E N D M E N T W I T H RESPECT TO NEGLECTED OR D E L I N Q U E N T
CHILDREN
U'

80 Stat. 1194;
81 Stat. 787.
20 u s e 241c.

SEC. 508. Section 103 (a) (7) of title I of the Elementary and Secondary Education Act of 1965, is amended by striking out "for children

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

353

in institutions for neglected or delinquent children" and inserting in
lieu thereof the following: "for children in institutions for neglected
or delinquent children or in adult correctional institutions, if such
funds are used solely for children".
CONFORMING AMENDMENTS WITH RESPECT TO OCCUPATIONAL EDUCATION

SEC. 509. (a) (1) Section 203(a) (3) of the Elementary and Secondary Education Act of 1965 is amended by striking out "and" at the end
of clause ( B ) , striking out the semicolon at the end of clause (C)
and inserting in lieu thereof ", and", and by inserting a new clause as
follows:
" (D) provide assurance that equal consideration shall be given
to the needs of elementary and secondary schools for library
resources, textbooks, and other printed and published materials
utilized for instruction, orientation, or guidance and counseling in
occupational education.".
(2) Section 303(b)(3) of such Act is amended by redesignating
clauses ( C ) , ( D ) , ( E ) , ( F ) , ( G ) , ( H ) , ( I ) , and ( J ) , respectively, as
clauses ( D ) , ( E ) , ( F ) , ( G ) , ( H ) , ( I ) , ( J ) , and ( K ) , and by inserting
a new clause as follows:
" ( C ) proOTams designed to encourage the development in elementary and secondary schools of occupational information and
counseling and guidance, and instruction in occupational education on an equal footing with traditional academic education;".
(3) Section 503(4) of such Act is amended by redesignating clauses
(A), ( B ) , a n d ( C ) , respectively, as clauses ( B ) , ( C ) , a n d ( D ) , and by
inserting a new clause as follows:
" ( A ) the development in elementary and secondary schools of
programs of occupatix)nal information, counseling and guidance,
and instruction in occupational education on an equal footing with
traditional academic education,",
(b) (1) Section 104(a) (2) of the Vocational Education Act of 1963
(relating to the duties of the National Advisory Council on Vocational Education) is amended by inserting after "under this title"
each time it appears ", and under part B of title X of the Higher
Education Act of 1965,".
(2) Section 104 of such Act is further amended by redesignating
subsection (c) as subsection (d) and by inserting a new subsection as
follows:
"(c) State advisory councils also shall perform with respect to the
programs carried out under part B of title X of the Higher Education Act of 1965 functions identical with or analogous to those
assigned under this title, and the Commissioner shall assure that
adequate funds are made available to such Councils from funds appropriated to carry out part B of that title (without regard to whether
such funds have been allt>tted to States) to enable them to perform
such functions.".
P O L I C Y STATEMENT CONCERNING STUDENTS ON BOARDS OF TRUSTEES

SEC. 510. I t is the sense of the Congress that the governing boards
of institutions of higher education should give consideration to student
participation on such boards.
T I T L E VI—INVESTIGATION OF YOUTH CAMP S A F E T Y
SEC. 601. The Secretary of Health, Education, and Welfare shall
make a full and complete investigation and study to determine (1)

so stat. 1200.
^° "^^ ®^^'
-

^n f^fr'if^'
'° "^^ »^^-

79 Stat. 49.
20 u s e 863.

82 Stat. 1066.
20 u s e 1244.

^"'^' "' ^i^.

354

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

the extent of preventable accidents and illnesses currently occurring
in youth camps throughout the Nation, (2) the contribution to youth
camp safety now being made hj State and local public agencies and
private groups, (3) whether existing State and local laws adequately
deal with the safety of campers in youth camps, (4) whether existing
State and local laws relating to youth camp safety are being effectively
enforced, and (5) the need for Federal laws in this field.
EEPORT
Report to Congress.

SEC. 602. The Secretai-y of Health, Education, and Welfare shall
make a report to the Congress before March 1, 1973, on the results
of his investigation and study under this title. Such report shall include his recommendations for such legislation as may be necessary
or desirable.
A U T H O R I Z A T I O N OF F U N D S

SEC. 603. There is authorized to be appropriated $300,000 for carrying out the purposes of this title.
T I T L E VII—EMEEGENCY SCHOOL A I D
SHORT T I T L E

SEC. 701. This title may be cited as the "Emergency School Aid
Act".
F I N D I N G S A N D PURPOSE

SEC. 702. (a) The Congress finds that the process of eliminating or
preventing minority group isolation and improving the quality of
education for all children often involves the expenditure of additional
funds to which local educational agencies do not have access.
(b) The purpose of this title is to provide financial assistance—
(1) to meet the special needs incident to the elimination of
minority group segregation and discrimination among students
and faculty in elementary and secondary schools;
(2) to encourage the voluntary elimination, reduction, or prevention of minority group isolation in elementary and secondary
schools with substantial proportions of minority group students:
and
(3) to aid school children in overcoming the educational disadvantages of minority group isolation.
POLICY W I T H R E S P E C T TO T H E A P P L I C A T I O N OF C E R T A I N PROVISIONS OF
FEDERAL L A W

78 Stat. 252.
42 u s e 2000d.
80 Stat. 1209;
81 Stat. 787.
42 u s e 2000d-5

SEC. 703. (a) It is the policy of the United States that guidelines and
criteria established pursuant to this title shall be applied uniformly in
all regions of the United States in dealing with conditions of segregation by race in the schools of the local educational agencies of any
State without regard to the ori^^in or cause of such segregation.
(b) I t is the policy of the LTnited States that guidelines and criteria
established pursuant to title V I of the Civil Rights Act of 1964 and
section 182 of the Elementary and Secondary Education Amendments
of 1966 shall be applied uniformly in all regions of the United States
in dealin|>; with conditions of segregation by race whether de jure or
de facto in the schools of the local educational agencies of any State
without regard to the origin or cause of such segregation.

86

STAT.]

PUBLIC LAW

9 2 - 3 1 8 - J U N E 23, 1972

355

APPROPRIATIONS

SEC. 704. (a) The Assistant Secretary shall, in accordance with the
provisions of this title, carry out a program designed to achieve the
purpose set forth in section 702(b). There are authorized to be appropriated for the purpose of carrying out this title, $1,000,000,000 for the
fiscal year ending June 30, 1973, and $1,000,000,000 for the fiscal year
ending June 30, 1974. Funds so appropriated shall remain available
for obligation and expenditure during the fiscal year succeeding the
fiscal year for which they are appropriated.
(b) (1) From the sums appropriated pursuant to subsection (a) for
any fiscal year, the Assistant Secretary shall reserve an amount equal
to 5 per centum thereof for the purposes of section 709.
(2) From the sums appropriated pursuant to subsection (a) for any
fiscal year, the Assistant Secretary shall reserve an amount equal to
13 per centum thereof for the purposes of sections 708 (a) and (c),
711, and 713, of which—
(A) not less than an amount equal to 4 per centum of such sums;;
shall be for the purposes of section 708 (c) ; and
(B) not less than an amount equal to 3 per centum of such
sums shall be for the purposes of section 711.
A P P O R T I O N M E N T AMON(} STATES

SEC. 705. (a) (1) From the sums appropriated pursuant to section
704(a) which are not reserved under section 704(b) for any fiscal
year, the Assistant Secretary shall apportion to each State for grants
and contracts within that State $75,000 plus an amount which bears
the same ratio to such sums as to the number of minority group children aged 5-17, inclusive, in that State bears to the number of such
children in all States except that the amount apportioned to any State
shall not be less than $100,000. The number of such children in each
State and in all of the States shall be determined by the Assistant
Secretary on the basis of the most recent available data satisfactory
to him.
(2) The Assistant Secretary shall, in accordance with criteria established by regulation, reserve not in excess of 15 per centum of the sums
appropriated pursuant to subsection 704(a) for grants to, and contracts with, local educational agencies in each State pui'suant to
section 706(b) to be apportioned to each State in accordance with
pai-agraph (1) of this subsection.
(3) The Assistant Secretary shall reserve 8 per centum of the sums
appropriated pursuant to subsection 704(a) for the purpose of section 708(b) to be apportioned to each State in accordance with paragraph (1) of this subsection.
(b) (1) The amount by which any apportionment to a State for a
fiscal year under subsection (a) exceeds the amount which the Assistant
Secretary determines will be required for such fiscal year for programs or projects within such State shall be available for reapportionment to other States in proportion to the original apportionments to
such States under subsection (a) for that year, but with such proportionate amount for any such State being reduced to the extent it exceeds
the sum the Assistant Secretary estimates such State needs and will be
able to use for such year; and the total of such reductions shall be
similarly reapportioned among the States whose proportionate
amounts w^ere not so reduced. Any amounts reapportioned to a State
under this subsection during a fiscal year shall be deemed part of
its apportionment under subsection (a) for such year.

r

-J

356

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

(2) In order to afford ample opportunity for all eligible applicants
in a State to submit applications for assistance under this title, the
Assistant Secretary shall not fix a date for reapportionment, pursuant
to this subsection, of any portion of any apportionment to a State
for a fiscal year which date is earlier than sixty days prior to the end
of such fiscal year.
(3) Notwithstanding the provisions of paragraph (1) of this subsection, no portion of any apportionment to a State for a fiscal year
shall be available for reapportionment pursuant to this subsection
unless the Assistant Secretary determines that the applications for
assistance under this title which have been filed by eligible applicants
in that State for which a portion of such apportionment has not been
reserved (but which would necessitate use of that portion) are applications which do not meet the requirements of this title, as set forth
in sections 706, 707, and 710, or wnich set forth programs or projects
of such insufficient promise for achieving the purpose of this title
stated in section 702(b) that their approval is not warranted.
ELIGIBILITY FOR ASSISTANCE

78 stau 25^2^^

42
u s e oAAAj
2000d.
-o TTo/-

SEC. 706. (a) (1) The Assistant Secretary is authorized to make a
grant to, or a contract with, a local educational agency—
(A) which is implementing a plan—
;,
(i) which has been undertaken pursuant to a final order
issued by a court of the United States, or a court of any State,
or any other State agency or official of competent jurisdiction, and which requires the desegregation of minority group
segregated children or faculty in the elementary and secondary schools of such agency, or dthel-wise requires the elimina,;
tion or reduction of minority group isolation in such schools;
or
(ii) which has been approved by the Secretary as adequate
uuder title V I of the Civil Rights Act of 1964 for the desegregation of minority group segregated children or faculty in
such schools; or
(B) which, without having been required to do so, has adopted
and is implementing, or will, if assistance is made available to it
under this title, adopt and implement, a plan for the complete
elimination of minority group isolation in all the minority group
isolated schools of such agency; or
(C) which has adopted and is implementing, or will, if assistance is made available to it under this Act, adopt and implement,
a plan—
(i) to eliminate or reduce minority group isolation in one
fjyi^
or more of the minority group isolated schools of such agency,
(ii) to reduce the total number of minority group children
who are in minority group isolated schools of such agency,
or
(iii) to prevent minority group isolation reasonably likely
to occur (in the absence of assistance under this title) in any
school in such district in which school at least 20 per centum
but not more than 50 per centum, of the enrollment consists
of such children, or
(D) which, without having been required to do so, has adopted
and is implementing, or will, if assistance is made available to
it under this title, adopt and implement a plan to enroll and
educate in the schools of such agency children who would not
otherwise be eligible for enrollment because of nonresidence in
the school district of such agency, where such enrollment would
make a significant contribution toward reducing minority group

86 STAT. ]

3S7

PUBLIC LAW 92-318-JUNE 23, 1972

isolation in one or more of the school districts to -which such plan
relates.
(2) (A) The Assistant Secretary is authorized, in accordance with
special eligibility criteria established by regulation for the purposes
of this paragraph, to make grants to, and contracts with, local educational agencies for the purposes of section 709(a)(1).
(B) A local educational agency shall be eligible for assistance under
this paragraph only if—
(i) such agency is located within, or adjacent to, a Standard
Metropolitan Statistical Area;
(ii) the schools of such agency are not attended by minority
group children in a significant number or proportion; and
(iii) such local educational agency has made joint arrangements
with a local educational agency, located within that Standard
Metropolitan Statistical Area, and the schools of which are
attended by minority group children in a significant proportion,
for the establishment or maintenance of one or more integrated
schools as provided in section 720 (6).
(3) Upon a determination by the Assistant Secretary—
(i) that more than 50 per centum of the number of children in
attendance at the schools of a local educational agency is minority
group children; and
(ii) that such local educational agency has applied for and wdll
receive at least an equal amount of assistance under subsection ( b ) ;
the Assistant Secretary is authorized to make a grant to, or contract
with, such local educational agency for the establishment or maintenance of one or more integrated schools as defined in section 720(7).
(b) The Assistant Secretary is authorized to make grants to, or contracts with, local educational agencies, which are eligible under subsection ( a ) , for unusually promising pilot programs or projects
designed to overcome the adverse effects of minority group isolation
by improving the academic achievement of children in one or more
minority group isolated schools, if he determines that the local educational agency had a number of minority group children eni'olled in
its schools, for the fiscal year preceding the fiscal year for which assistance is to be provided, which (1) is at least 15,000, or (2) constitutes
more than 50 per centum of the total number of children enrolled in
such schools.
(c) No local educational agency making application under this section shall be eligible to receive a grant or contract in an amount in
excess of the amount determined by the Assistant Secretary, in accordance with regulations setting forth criteria established for such purpose, to be the additional cost to the applicant arising out of activities
authorized under this title, above that of the activities normally carried out by the local educational agency.
(d) (1) No educational agency shall be eligible for assistance under
this title if it has, after the date of enactment of this title—
(A) transferred (directly or indirectly by gift, lease, loan, sale,
or other means) real or personal property to, or made any services
available to, any transferee w^hich it knew or reasonably should
have known to be a nonpublic school or school system (or any
organization controlling, or intending to establish, such a school or
school system) without prior determination that such nonpublic
school or school system (i) is not operated on a racially segregated
basis as an alternative for children seeking to avoid attendance in
desegregated public schools, and (ii) does not otherwise practice,
or permit to be practiced, discrimination on the basis of race, color,
or national origin in the operation of any school activity;

Grants, contract authority.

Limitation.

358

Ineligibility,
waiver.

Waiver application, approval.

Notice to congressional committees.

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

(B) had ill effect any practice, policy, or procedure which
rvsults in the disproportionate demotion or dismissal of instructional or other personnel from minority groups in conjunction
with desegregation or the implementation of any plan or the conduct of any activity described in this section, or otherwise engaged
in discrimination based upon race, color, or national origin in the
hiring, promotion, or assignment of employees of the agency (or
other personnel for whom the agency has any administrative
responsibility) ;
(C) in conjunction with desegregation or the conduct of an
activity described in this section, had in effect any procedure for
the assignment of children to or within classes which results in
the separation of minority group from nonminority group children for a substantial portion of the school day, except that this
clause does not prohibit the use of bona fide ability grouping by
a local educational agency as a standard pedagogical practice; or
(D) had in effect any other practice, policy, or procedure, such
as limiting curricular or extracurricular activities (or participation therein by children) in order to avoid the participation of
minority group children in such activities, which discriminates
among children on the basis of race, color, or national origin;
except that, in the case of any local educational agency Avhich is ineligible for assistance by reason of clause ( A ) , ( B ) , (C), or ( D ) , such
agency may make application for a waiver of ineligibility, which
application shall specify the reason for its ineligibility, contain such
information and assurances as the Secretary shall require by regulation in order to insure that any practice, policy, or procedure, or other
activity resulting in the ineligibility has ceased to exist or occur and
include such provisions as are necessary to insure that such activities
do not reoccur after the submission of the application.
(2) Applications for waivers under paragraph (1) may be approved
only by the Secretary. The Secretary's functions under this paragraph
shall, notwithstanding any other provision of law, not be delegated.
(;3) Applications for waiver shall be granted by t;he Secretary upon
determination that any practice, policy, procedure or other activity
resulting in ineligibility has ceased to exist, and that the applicant has
given satisfactory assurance that the activities prohibited in this subsection will not reoccur.
(4) No application for assistance under this title shall be approved
prior to a determination by the Secretary that the applicant is not
ineligible by reason of this subsection.
(5) All determinations pursuant to this subsection shall be carried
out in accordance with criteria and investigative procedures established
by regulations of the Secretary for the purpose of compliance witli this
subsection.
(6) All determinations and waivers pursuant to this subsection
shall be in writing. The Committee on Labor and Public Welfare of
the Senate and the Committee on Education and Labor of the House
of Representatives shall each be given notice of an intention to grant
any waiver under this subsection, which notice shall be accompanied
by a copy of the proposed waiver for which notice is given and copies
of all determinations relating to such waiver. The Assistant Secretary
shall not approve an application by a local educational agency which
requires a waiver under this subsection prior to 15 days after receipt
of the notice required by the preceding sentence by the chairman of
the Committee on Labor and Public Welfare of the Senate and the
chairman of the Committee on Education and Labor of the House of
Representatives.

86 STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

359

A U T H O R I Z E D ACTIVITIES

SEC. 707. (a) Financial assistance under this title (except as pro^•ided by sections 708, 709, and 711) shall be available for programs
and projects which would not otherwise be funded and which involve
activities designed to carry out the purpose of this title stated in section 702(b) :
remedial
(1) Remedial services, beyond those provided under the regular s eSpecial
rvices.
school program conducted by the local educational agency, including student to student tutoring, to meet the special needs of children (including gifted and talented children) in schools which
are affected by a plan or activity described in section 706 or a program described in section 708, when such services are deemed
necessary to the success of such plan, activity, or program.
Professional
(2) The provision of additional professional or other staff mem- staff.
bers (including staff' members specially trained in problems
incident to desegregation or the elimination, reduction, or prevention of minority group isolation) and the training and retraining
of staff for such schools.
(3) Recruiting, hiring, and training of teacher aides, provided T e a c h e r a i d e s .
that in recruiting teacher aides, preference shall be given to
parents of children attending schools assisted under this title.
Inservice
(4) Inservice teacher training designed to enhance the success teacher
training.
of schools assisted under this title through contracts with institutions of higher education, or other institutions, agencies, and
organizations individually determined by the Assistant Secretary
to have special competence for such purpose.
(5) Comprehensive guidance, counseling, and other personal C o u n s e l i n g .
services for such children.
New curricula,
(6) The development and use of new curricula and instruc- minority
language
tional methods, practices, and techniques (and tlie acquisition of
instructional materials relating thereto) to support a program
of instruction for cliildren from all racial, ethnic, and economic
backgrounds, including instruction in the language and cultural
heritage of minority grouj^s.
Career e d u c a (7) Educational programs using shared facilities for career tion.
education and other specialized activities.
Innovative in(8) Innovative interracial educational programs or projects t e r r a c i a l programs!
involving the joint participation of minority group children and
other children attending different schools, including extracurricular activities and cooperative exchanges or other arrangements
between schools within the same or different school districts.
(9) Community activities, including public information efforts, a cCommunity
tivities.
in support of a plan, program, project, or activity described in
this title.
(10) Administrative and auxiliary services to facilitate the suc- s e rAdministrative
vices.
cess of the program, project, or activity.
(11) Planning programs, projects, or activities under this title, e vPa ll auna nt iionng. and
the evaluation of such programs, projects, or activities, and dissemination of information with respect to such programs, projects,
or activities,
Facility re(12) Repair or minor remodeling or alteration of existing modeling; mobile
school facilities (including the acquisition, installation, moderni- u n i t s .
zation, or replacement of instructional equipment) and the lease
or purchase of mobile classroom units or other mobile education
facilities.
Restriction.
In the case of programs, projects, or activities involvinsr activities
described in paragraph (12), the inclusion of such activities must be
found to be a necessary component of, or necessary to facilitate, a
82-081 O - 73 - 26

360

Definition by
regulation.

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

program or project involving other activities described in this subsection or subsection (b), and in no case involve an expenditure in
excess of 10 per centum of the amount made available to the applicant
to carry out the program, project, or activity. The Assistant Secretary
shall by regulation define the term "repair or minor remodeling or
alteration".
(b) Sums reserved under section 705(a)(2) with respect to any
State shall be available for grants to, and contracts with, local educational agencies in that State making application for assistance under
section 706(b) to carry out innovative pilot programs and projects
which are specifically designed to assist in overcoming the adverse
effects of minority group isolation, by improving the educational
achievement of children in minority group isolated schools, including
only the activities described in paragraphs (^1) through (12) of subsection ( a ) , as they may be used to accomplish such purpose.
SPECIAL PROGRAMS AND PROJECTS

Grants, contract authority.

Bilingual education.

SEC. 708. ( a ) ( 1 ) Amounts reserved by the Assistant Secretary
pursuant to section 704(b) (2), which are not designated for the purposes of clause (A) or (B) thereof, or for section 713 shall be available
to him for grants and contracts under this subsection.
(2) The Assistant Secretary is authorized to make grants to, and
contracts with, State and local educational agencies, and other public
agencies and organizations (or a combination of such agencies and
organizations) for the purpose of conducting special programs and
projects carrying out activities otherwise authorized by this title, which
the Assistant Secretary determines will make substantial progress
toward achieving the purposes of this title.
(b) (1) From not more than one-half of the sums reserved pursuant
to section 705 (a) (3), the Assistant Secretary, in cases in which he finds
that it would effectively carry out the purpose of this title stated in
section 702(b), may assist by grant or contract any public or private
nonprofit agency, institution, or organization (other than a local educational agency) to carry out programs or projects designed to support
the development or implementation of a plan, program, or activity
described in section 706 ( a ) .
(2) From the remainder of the sums reserved pursuant to section
705 ( a ) ( 3 ) , the Assistant Secretary is authorized to make grants to, and
contracts with, public and private nonprofit agencies, institutions, and
organizations (other than local educational agencies and nonpublic
elementary and secondary schools) to carry out programs or projects
designed to support the development or implementation of a plan,
program,or activity described in section 706 (a).
(c) (1) The Assistant Secretary shall carry out a program to meet
the needs of minority group children who are from an environment in
which a dominant language is other than English and who, because of
language barriers and cultural differences, do not have equality of
educational opportunity. From the amount reserved pursuant to section
704(b) (2) ( A ) , the Assistant Secretary is authorized to make grants
to, and contracts with—
(A) private nonprofit agencies, institutions, and organizations
to develop curricula, at the request of one or more educational
agencies which are eligible for assistance under section 706,
designed to meet the special educational needs of minority group
children who are from environments in which a dominant language is other than English, for the development of reading, writing, and speaking skills, in the English language and in the lan^' guage of their parents or grandparents, and to meet the educa-

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

tional needs of such children and their classmates to understand
the history and cultural background of the minority groups of
which such children are members;
(B) local educational agencies eligible for assistance under section 706 for the purpose of engaging in such activities; or
(C) local educational agencies which are eligible to receive
assistance under section 706, for the purpose of carrying out activities authorized under section 707(a) of this title to implement
curricula developed under clauses (A) and (B) or curricula otherwise developed which the Assistant Secretary determines meets
the purposes stated in clause ( A ) .
In making grants and contracts under this paragraph, the Assistant
Secretary shall assure that sufficient funds from the amount reserved
pui-suant to section 7 0 4 ( b ) ( 2 ) ( A ) remain available to provide for
grants and contracts under clause (C) of this paragraph for implementation of such curricula as the Assistant Secretary determines
meet the purposes stated in clause (A) of this paragraph. In making
a grant or contract under clause (C) of this paragraph, the Assistant
Secretary shall take whatever action is necessary to assure that the
implementation plan includes provisions adequate to insure training of
teachers and other ancillary educational personnel.
(2) (A) In order to be eligible for a grant or contract under this
,^ ' ; .

'

"

^

subsection—
(i) a local educational agency must establish a program or
project committee meeting the requirements of subparagraph ( B ) ,
which will fully participate in the preparation of the application
under this subsection and in the implementation of the program
or project and join in submitting such application; and
(ii) a private nonprofit agency, institution, or organization
must (I) establish a program or project board of not less than
ten members which meets the requirements of subparagi'aph (B)
and which shall exercise policymaking authority with respect to
the program or project and ( I I ) have demonstrated to the Assistant Secretary that it has the capacity to obtain the services of
adequately trained and qualified staff.
(B) A program or project committee or board, established pursuant
to subparagraph (A) must be broadly representative of parents, school
officials, teachers, and interested members of the community or communities to be served, not less than half of the members of which shall
be parents and not less than half of the members of which shall be
members of the minority group the educational needs of which the
program or project is intended to meet.
(3) All programs or projects assisted under this subsection shall be
specifically designed to complement any programs or projects carried
out by the local educational agency under section 706. The Assistant
Secretary shall insure that programs of Federal financial assistance
related to the purposes of this subsection are coordinated and carried
out in a manner consistent with the provisions of this subsection, to
t he extent consistent with other law.
METROPOLITAN AREA P R O J E C T S

SEC. 709. (a) Sums reserved pursuant to section 704(b) (1) shall be
available for the following purposes:
(1) A program of grante to, and contracts with, local educational
agencies which are eligible under section 706(a) (2) in order to assist
them in establishing and maintaining integrated schools as defined in
section 720(6).

361

v,

Eligibility; program committee.

362

Restriction.

"Education
park."

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

(2) A program of any grant to groups of local educational agencies
located in a Standard Metropolitan Statistical Area for the joint
development of a plan to reduce and eliminate minority group isolation, to the maximum extent possible, in the public elementary and
secondary schools in the Standard Metropolitan Statistical Area,
which shall, as a minimum, provide that by a date certain, but in no
event later than July 1, 1983, the percentage of minority group children enrolled in each school in the Standard Metropolitan Statisitical
Area shall be at least 50 per centum of the percentage of minority
group children enrolled in all the schools in the Standard Metropolitan
Statistical Area. No grant may be made under this paragraph unless—
(A) two-thirds or more of the local educational agencies in
the Standard Metropolitan Statistical Ar-ea have approved the
application, and
(B) the number of students in the schools of the local educational agencies which have approved the application constitutes
two-thirds or more of the number of students in the schools of all
the local educational agencies in the Standard Metropolitan
Statistical Area.
(3) A program of grants to local educational agencies to pay all
or part of the cost of planning and constructing integrated education
parks. For the purpose of this paragraph, the term "education park'*
means a school or cluster of such schools located on a common site,
within a Standard Metropolitan Statistical Area, of sufficient size to
achieve maximum economy of scale consistent with sound educational
practice, providing secondary education, with an enrollment in which
a substantial proportion of the children is from educationally advantaged backgrounds, and which is representative of the minority group
and nonminority group children in attendance at the schools of the
local educational agencies in the Standard Metropolitan Statistical
Area, or, if the applicant is a single local educational agency, representative of that of the local educational agency, and a faculty and
administrative staff with substantial representation of minority group
persons.
(b) I n making grants and contracts under this section, the Assistant
Secretary shall insure that at least one grant shall be for the purposes
of paragraph (2) of subsection ( a ) .
APPLICATIONS

Public information.
Approval, conditions.

SEC. 710. (a) Any local educational agency desiring to r-eceive assistance under this title for any fiscal year shall submit to the Assistant
Secretary an application therefor for that fiscal year at such time, in
such form, and containing such information as the Assistant Secretary
shall require by regulation. Such application, together with all correspondence and other written materials relating thereto, shall be
made readily available to the public by the applicant and by the Assistant Secretary. The Assistant Secretary may approve such an application only if he determines that such application—
(1) in the case of applications under section 706, sets forth a
program under which, and such policies and procedures as will
assure that, (A) the applicant will use the fvmds received under
this title only for the activities set forth in section 707 and (B)
in the case of an application under section 706(b), the applicant will initiate or expand an innovative program specifically
designed to meet the educational needs of children attending one
or more minority group isolated schools;

86

STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

(2) has been developed—
(A) in open consultation with parents, teachers, and, where Public hearings.
applicable, secondary school students, including public hearings at which such persons have had a full opportunity to
understand the program for which assistance is being sought
and to offer recommendations thereon, and
(B) except in the case of applications under section 708 (c), Parental comwith the participation of a committee composed of parents of mittee.
children participating in the program for which assistance is
sought, teachers, and, where applicable, secondary school'
students, of which at least half the members shall be such
parents, and at least half shall be persons from minority
groups;
(8) sets forth such policies and procedures as will insure that
the program for which assistance is sought will be operated in consultation with, and with the involvement of, parents of the children and representatives of the area to be served, including the
committee established for the purposes of clause (2) (B) ;
(4) sets forth such policies and procedures, and contains such
information, as will insure that funds paid to the applicant under
the application will be used solely to pay the additional cost to
the applicant in carrying out the plan, program, and activity
described in the application;
(5) contains such assurances and other information as will
insure that the program for which assistance is sought will be
administered by the applicant, and that any funds received by
the applicant, and any property derived therefrom, will remain
under the administration and control of the applicant;
(6) sets forth assurances that the applicant is not reasonably
able to provide, out of non-Federal sources, the assistance for
which the application is made ;
(7) provides that the plan with respect to which such agency is Freedom of
choice.
seeking assistance (as specified in section 706(a) (1) (A) does not
involve freedom of choice as a means of desegregation, unless the
Assistant Secretary determines that freedom of choice has
achieved, or will achieve, the complete elimination of a dual school
system in the school district of such agency;
(8) provides assurances that for each academic year for which
assistance is made available to the applicant under this title such
agencj^ has taken or is in the process of taking all practicable steps
to avail itself of all assistance for which it is eligible under any
program administered by the Commissioner;
(9) provides assurances that such agency will carry out, and
comply with, all provisions, terms, and conditions of any plan,
program, or activity as described in section 706 or section 708(c)
upon w'hich a determination of its eligibility for assistance under
this title is based;
Non-Federal
(10) sets forth such policies and procedures, and contains such funds,
supplantainformation, as will insure that funds made available to the appli- tion, prohibition.
cant (A) under this title will be so used (i) as to supplement and,
to the extent practicable, increase the level of funds that would, in
the absence of such funds, be made available from non-Federal
sources for the purposes of the program for which assistance is
sought, and for promoting the integration of the schools of the
applicant, and for the education of children participating in such
program, and (ii) in no case, as to supplant such funds from nonFederal sources, and (B) under any other law of the United States
will, in accordance wit.li standards established by regulation, be
used in coordination with such programs to the extent consistent
with such other law;

363

364

Private schools.

Reports.

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

(11) in the case of an application for assistance under section
706, provides that the program, project, or activity to be assisted
will involve an additional expenditure per pupil to be served,
determined in accordance with regulations prescribed by the
Assistant Secretary, of sufficient magnitude to provide reasonable
assurance that the desired funds under this title will not be dispersed in such a way as to undermine their effectiveness;
(12) provides that (A) to the extent consistent with the number
of minority group children in the area to be served who are
enrolled in private nonprofit elementary and secondary schools
which are operated in a manner free from discrimination on the
basis of race, color, or national origin, and which do not serve as
alternatives for children seeking to avoid attendance in desegregated or integrated public schools, whose participation would
assist in achieving the purpose of this title stated in section 702(b)
provides assurance that such agency (after consultation with the
appropriate private school officials) has made provision for their
participation on an equitable basis, and (B) to the extent consistent with the number of children, teachers, and other educational
staff in the school district of such agency enrolled or employed
in private nonprofit elementary and secondary schools whose participation would assist in achieving the purpose of this title stated
in section 702(b) or, in the case of an application under section
708(c), would assist in meeting the needs described in that subsection, such agency (after consultation with the appropriate
private school officials) has made provisions for their participation on an equitable basis;
(13) provides that the applicant has not reduced its fiscal effort
for the provision of free public education for children in attendance at the schools of such agency for the fiscal year for which
assistance is sought under this title to less than that of the second
preceding fiscal year, and that the current expenditure per pupil
which such agency makes from revenues derived from its local
sources for the fiscal year for which assistance under this title will
be made available to such agency is not less than such expenditure per pupil which such agency made from such revenue
for (A) the fiscal year preceding the fiscal year during which
the implementation of a plan described in section 706(a) (1) (A)
was commenced, or (B) the third fiscal year preceding the fiscal
year for which such assistance will be made available under this
title, whichever is later;
(14) provides that the appropriate State educational agency
has been given reasonable opportunity to offer recommendations
to the applicant and to submit comments to the Assistant Secre*^9^5
.
.
.
.
.
(15) sets forth effective procedures, including provisions for
objective measurement of change in educational achievement and
other change to be effected by programs conducted under this
title, for the continuing evaluation of programs, projects, or
activities under this title, including their effectiveness m achieving
clearly stated program goals, their impact on related programs
and upon the community served, and their structure and mechanisms for the delivery of services, and including, where appropriate, comparisons with proper control groups composed of persons who have not participated in such programs or projects; and
(16) provides (A) that the applicant will make periodic reports
at such time, in such form, and containing such information
as the Assistant Secretary may require by regulation, which regulation may require at least—

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

(i) in the case of reports relating to performance, that the
reports be consistent with specific criteria related to the program objectives, and
(ii) that the reports include information relating to educational achievement of children in the schools of the applicant,
and (B) that the applicant will keep such records and afford such
^ .4

.

^^

^

365

Records, a c c e s Recor
sibility

access thereto as—
(i) will be necessary to assure the correctness of such
reports and to verify them, and
(ii) will be necessary to assure the public adequate access to
Committee comsuch reports and other written materials.
(b) No application under this section may be approved which is ments, hearing
not accompanied by the written comments of a committee established opportunity
pursuant to clause (2) (B) of subsection ( a ) . The Assistant Secretary
shall not approve an application without first affording the committee
an opportunity for an informal hearing if the committee requests such
a hearing.
(c) I n approving applications submitted under this title (except
for those submitted under sections 708 (b) and (c) and 711), the
Assistant Secretary shall apply only the following criteria:
(1) the need for assistance, taking into account such factors as—
(A) the extent of minority group isolation (including the
number of minority group isolated children and the relative
concentration of such children) in the school district to be
served as compared to other school districts in the State,
(B) the financial need of such school district as compared
to other school districts in the State,
(C) the expense and difficulty of effectively carrying out
a plan or activity described in section 706 or a program
described in section 708(a) in such school district as compared to other school districts in the State, and
(D) the degree to which measurable deficiencies in the
quality of pumic education afforded in such school district
exceed those of other school districts within the State;
(2) the degree to which the plan or activity described in section 706(a), and the program or project to be assisted, or the
program described in section 708(a) are likely to effect a decrease
m minority group isolation in minority group isolated schools,
or in the case of applications submitted under section 706
( a ) ( l ) ( C ) ( i i i ) , the degree to which the plan and the program
or project, are likely to prevent minority group isolation from
occurring or increasing (in the absence of assistance under this
title);
(3) the extent to which the plan or activity described in section
706 constitutes a comprehensive districtwide approach to the
elimination of minority groups isolation, to the maximum extent
practicable, in the schools of such school district;
(4) the degree to which the program, project, or activity to be
assisted affords promise of achieving the purpose of this title
stated in section 702(b);
(5) that (except in the case of an application submitted under
section 708(a)) the amount necessary to carrv out effectivelv the
project or activity does not exceed the amount available for assistance in the State under this title in relation to the other applications from the State pending before him; and
(6) the degree to which the plan or activity described in section
706 involves to the fullest extent practicable the total educational
resources, both public and private, of the community to be served.
(d) (1) The Assistant Secretary shall not give less favorable con-

366

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

sideration to the application of a local educational agency (including
an agency currently classified as legally desegregated by the Secretary) which has voluntarily adopted a plan qualified for assistance
under this title (due only to the voluntary nature of the action) than
to the application of a local educational agency which has been legally
required to adopt such a plan.
(2) The Assistant Secretary shall not finally disapprove in whole
or in part any application for funds submitted by a local educational
agency without first notifying the local educational agency of the
specific reasons for his disapproval and without affording the agency
an appropriate opportunity to modify its application.
(e) The Assistant Secretary may, from time to time, set dates by
which applications shall be filed.
(f) I n the case of an application by a combination of local educational agencies for jointly carrying out a program or project under this
title, at least one such agency shall be a local educational agency
described in section 706(a) or section 708 (a) or (c) and any one or
more of such agencies joining in such application may be authorized
to administer such program Or proj ect.
(g) Xo State shall reduce the amount of State aid with resx)ect to
the provision of free public education in any school district of any
local educational agency within such State because of assistance made
or to be made aCvailable to such agency under this title.
EDUCATIONAL

TELEVISION

SEC. 711. (a) The sums reserved pursuant to section 704(b) (2) (B)
for the purpose of carrying out tnis section shall be available for
grants and contracts in accordance with subsection (b).
(b) (1) The Assistant Secretai-y shall carry out a program of making
grants to, or contracts with, not more than ten public or private nonprofit agencies, institutions, or organizations with the capability of
providing expertise in the development of television programing, in
sufficient number to assure diversity, to pav the cost of development
and production of integrated children's television programs of cognitive and effective educational value.
(2) Television programs developed in whole or in part with assistance provided under this title shall be made reasonably available for
transmission, free of charge, and shall not be transmitted under commercial sponsorship.
(3) The Assistant Secretary may approve an application under
this section only if he determines that the applicant—
(A) will employ members of minority groups in responsible
positions in development, production, and administrative staffs;
(B) will use modem television techniques of research and production; and
(C) has adopted effective procedures for evaluating education
and other change achieved by children viewing the program.
PAYMENTS

SEC. 712. (a) Upon his approval of an application for assistance
under this title, the Assistant Secretary shall reserve from the applicable apportionment (including any applicable reapportionment)
available therefor the amount fixed for such application.
(b) The Assistant Secretary shall pay to the applicant such reserved
amount, in advance or by way of reimbursement, and in such installments consistent with established practice, as he may determine.

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

(c) (1) If a local educational agency in a State is prohibited by law
from providing for the participation of children and staff enrolled
or employed in private nonprofit elementary and secondary schools as
required by j)aragraph (12) of section 710(a), the Assistant Secretary may waive such requirement with respect to local educational
agencies in such State and, upon the approval of an application from
a local educational agency within such State, shall arrange for the
provision of services to such children enrolled in, or teachers or othereducational staff' of, any nonprofit private elementary or secondary
school located within the school district of such agency if the participation of such children and staff would assist in achieving the purpose
of this title stated in section 702(b) or in the case of an application
under section 708(c) would assist in meeting the needs described in
that subsection. The services to be provided through arrangements
made by the Assistant Secretary under this paragraph shall be comparable to the services to be provided by such local educational agency
under such application. The Assistant Secretary shall pay the cost of
such arrangements from such State's allotment or, in the case of an
application under section 708 (c), from the funds reserved under section
7 0 4 ( b ) ( 2 ) ( A ) , or in case of an application mider section 708(a),
from the sums available to the Assistant Secretary under section
704(b) (2) for the purpose of that subsection.
(2) I n determining the amount to be paid pursuant to paragraph
(1), the Assistant Secretary shall take into account the number of
children and teachers and other educational staff who, except for
provisions of State law, might reasonably be expected to participate
in the program carried out under this title by such local educational
agency.
(3) If the Assistant Secretary determines that a local educational
agency has substantially failed to provide for the participation on
an equitable basis of children and staff enrolled or employed in private
nonprofit elementary -and secondary schools as required by paragraph
(12) of section 710(a) he shall arrange for the provision of services
to children enrolled in, or teachers or other educational staff' of, the
nonprofit private elementary or secondary school or schools located
within the school district of such local educational agency, which services shall, to the maximum extent feasible, be identical with the services which would have been provided such children or staff had the
local educational agency carried out such assurance. The Assistant Secretary shall pay the cost of such services from the grant to such local
educational agency and shall have the authority for this purpose of
recovering from such agency any funds paid to it under such grant.
(d) After making a grant or contract under this title, the Assistant
Secretary shall notify the appropriate State educational agency of the
name of the approved applicant and of the amount approved.
EVALUATIONS

SEC. 713. The Assistant Secretary is authorized to reserve not in
excess of 1 per centum of the sums appropriated under this title, and
reserved pursuant to section 704 (b) (2), for any fiscal year for the purposes of this section. From such reservation, the Assistant Secretary is
authorized to make grants to, and contracts with. State e.ducational
agencies, institutions of higher education and private organizations,
institutions, and agencies, including committees established pursuant
to section 710(a) (2) for the purpose of evaluating specific programs
and projects assisted under this title.

367
waiver,

*

368

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

REPORTS

84 Stat. 8 0 3 .

Report to P r e s i dent and c o n g r e s sional c o m m i t t e e s .

SEC. 714, The Assistant Secretary shall make periodic detailed
reports concerning his activities in connection with the program
authorized by this title and the program carried out with appropriations under the paragraph headed "Emergency School Assistance" in
the Office of Education Appropriations Act, 1971 (Public Law 9 1 380), and the effectiveness of programs and projects assisted under this
title in achieving the purpose of this title stated in section 702 (b). Such
reports shall contain such information as may be necessary to permit
adequate evaluation of the program authorized by this title, and shall
include application forms, regulations, program guides, and guidelines
used in the administration of the program. The report shall be submitted to the President and to the Committee on Labor and Public
Welfare of the Senate and the Committee on Education and Labor of
the House of Representatives. The first report submitted pursuant to
this section shall be submitted no later than ninety days after the enactment of this title. Subsequent reports shall be submitted no less often
than two times annually.
JOINT

Waiver.

FUNDING

SEC. 715. Pursuant to regulations prescribed by the President, where
funds are advanced under this title, and by one or more other Federal
agencies for any project or activity funded in whole or in part under
this title, any one of such Federal agencies may be designated to act
for all in administering the funds advanced. In such cases, any such
agency may waive any technical grant or contract requirement (as
defined by regulations) which is inconsistent with the similar requirements of the administering agency or which the administering agenc}^
does not impose. Nothing in this section shall be construed to authorize (1) the use of any funds appropriated under this title for anv purpose not authorized herein, (2) a variance of any reservation or
apportionment under section 704 or 705, or (3) waiver of any requirement set forth in sections 706 through 711.
N A T I O N A L ADVISORY C O U N C I L

Establishment.

Report to Congress.

Ante,

p . 326.

.

SEC. 716. (a) There is hereby established a National Advisory Council on Equality of Educational Opportunity, consisting of fifteen members, at least one-half of whom shall be representative of minority
groups, appointed by the President, which shall—
(1) advise the Assistant Secretary with respect to the operation
of the program authorized by this title, including the preparation
of regulations and the development of criteria for the approval of
applications;
(2) review the operation of the program (A) with respect to its
effectiveness in achieving its purpose as stated in section 702(b),
and (B) with respect to the Assistant Secretary's conduct in the
administration of the program;
(3) meet not less than four times in the period during which the
program is authorized, and submit through the Secretary, to the
Congress at least two interim reports, which reports shall include
a statement of its activities and of any recommendations it may
have with respect to the operation of the program; and
(4) not later than December 1, 1973, submit to the Congress
a final report on the operation of the program.
(b) The Assistant Secretary shall submit an estimate in the same
manner provided under section 400(c) and part D of the General
Education Provisions Act to the Congress for the appropriations necessary for the Council created by subsection (a) to carry out its functions.

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

369

GENERAL PROVISIONS

SEC. 717. (a) The provisions of parts C and D of the General Education Provisions Act shall apply to the program of Federal assistance
authorized under this title as if such program were an applicable
program under such General Education Provisions Act, and the
Assistant Secretary shall have the authority vested in the Commissioner of Education by such parts with respect to such j)rogram.
(b) Section 422 of such General Education Provisions Act is
amended by inserting "the Emergency School Aid Act;" after "the
International Education Act of 1966;".

Ante, p. 326.

^"'®' P- ^^'*so sta^ ^loee.
note.

ATTORNEY FEES

SEC. 718. Upon the entry of a final order by a court of the United
States against a local educational agency, a State (or any agency
thereof), or the United States (or any agency thereof), for failure to
comply with any provision of this title or for discrimination on the
basis of race, color, or national origin in violation of title V I of the
Civil Eights Act of 1964, or the fourteenth amendment to the Constitution of the United States as they pertain to elementary and
secondary education, the court, in its discretion, upon a finding that
the proceedings were necessary to bring about compliance, may allow
the prevailing party, other than the United States, a reasonable
attorney's fee as part of the costs.
NEIGHBORHOOD SCHOOLS

SEC. 719. Nothing in this title shall be construed as requiring any
local educational agency which assigns students to schools on the
basis of geographic attendance areas drawn on a racially nondiscriminatory basis to adopt any other method of student assignment.
DEFINITIONS

SEC. 720. Except as otherwise specified, the following definitions
shall apply to the terms used in this title:
(1) The term "Assistant Secretary" means the Assistant Secretary
of Health, Education, and Welfare for Education.
(2) The term "current expenditure per pupil" for a local educational agency means (1) the expenditures for free public education,
including expenditures for administration, instruction, attendance
and health services, pupil transportation services, operation and maintenance of plant, fixed charges, and net expenditures to cover deficits
for food services and student body activities, but not including expenditures for community services, capital outlay and debt service, or any
expenditure made from funds granted under such Federal program
of assistance as the Secretary may prescribe, divided by (2) the number of children in average daily attendance to whom such agency
provided free public education during the year for which the computation is made.
(.3) The term "elementary school" means a day or residential school
which provides elementary education, as determined under State law.
(4) The term "equipment" includes machinery, utilities and built-in
equipment and any necessary enclosures or structures to house them,
and includes all other items necessary for the provision of educational
services, such as instructional equipment and necessary furniture,
printed, published, and audiovisual instructional materials, and other
related material.

^s sta^ ^2^5^2^^
use prec. title i.

370

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

(5) The term "institution of higher education" means an educational institution in any State which—
(A) admits as regular students only individuals having a certificate of graduation from a high school, or the recognized equivalent of such a certificate;
(B) is legally authorized within such State to provide a
program of education beyond high school;
(C) provides an educational program for which it awards a
bachelor's degree; or provides not less than a two-year program
which is acceptable for full credit toward such a degree, or offers a
two-year program in engineering, mathematics, or the physical or
biological sciences which is designed to prepare the student to work
as a technician and at a semiprofessional level in engineering,
scientific, or other technological fields which require the understanding and application of basic engineering, scientific, or mathematical principles or knowledge;
(D) is a public or other nonprofit institution; and
(E) is accredited by a nationally recognized accrediting agency
or association listed by the Commissioner for the purposes of this
paragraph.
(6) For the purpose of section 706 (a) (2) and section 709 ( a ) ( 1 ) , the
term "integrated school" means a school with an enrollment in which a
substantial proportion of the children is from educationally advantaged backgrounds, in which the proportion of minority group children
is at least 50 per centum of the proportion of minority group children
enrolled in all schools of the local educational agencies within the
Standard Metropolitan Statistical Area, and which has a faculty and
administrative staff with substantial representation of minority group
persons.
(7) F o r the purpose of section 706(a)(3), the term "integrated
school" means a school with (i) an enrollment in which a substantial
proportion of the children is from educationally advantaged backgrounds, and in which the Assistant Secretary determines that the
number of nonminority group children constitutes that proportion
of the enrollment which will achieve stability, in no event more than 65
per centum thereof, and (ii) a faculty which is representative of the
minority group and nonminority group population of the larger
community in which it is located, or, whenever the Assistant Secretary
determines that the local educational agency concerned is attempting
to increase the proportions of minority group teachers, supervisors,
and administrators in its employ^ a faculty which is representative
of the minority group and nonminority group faculty employed by
the local educational agency.
(8) The term "local educational agency" means a public board of
education or other public authority legally constituted within a State
for either administrative control or direction of, public elementary or
secondary schools in a city, county, township, school district, or other
political subdivision of a State, or a federally recognized Indian reservation, or such combination of school districts, or counties as are
recognized in a State as an administrative agency for its public elementary or secondary schools, or a combination of local educational
agencies; and includes any other public institution or agency having
administrative control and direction of a public elementary or secondary school and where responsibility for the control and direction
of the activities in such schools which are to be assisted under this title
is vested in an agency subordinate to such a board or other authority,
the Assistant Secretary may consider such subordinate agency as a
local educational agency for purpose of this title.

86

STAT.]

PUBLIC LAW 92-318-JUNE 23, 1972

371

(9) (A) The term "minority group" refers to (i) persons who are
Negro, American Indian, Spanish-sumamed American, Portuguese,
Oriental, Alaskan natives, and Hawaiian natives and (ii) (except for
the purposes of section 705), as determined by the Assistant Secretary,
persons who are from environments in which a dominant language is
other than English and who, as a result of language barriers and cultural differences, do not have an equal educational opportunity, and
(B) the term "Spanish-surnamed American" includes persons of
Mexican, Puerto Rican, Cuban, or Spanish origin or ancestry.
(10) The terms "minority group isolated school" and "minority
group isolation" in reference to a school mean a school and condition,
respectively, in which minority group children constitute more than
50 per centum of the enrollment of a school.
(11) The term "nonprofit" as applied to a school, agency, organization, or institution means a school, agency, organization, or institution
owned and operated by one or more nonprofit corporations or associations no part of the net earnings of which inures, or may lawfully
inure, to the benefit of any private shareholder or individual.
(12) The term "secondary school" means a day or residential school
which provides secondary education, as determined under State law,
except that it does not include any education provided beyond grade 12.
(13) The term "Standard Metropolitan Statistical Area" means the
area in and around a city of fifty thousand inhabitants or more as
defined by the Office of Management and Budget.
(14) The term "State" means one of the fifty States or the District
of Columbia, and for purposes of section 708(a), Puerto Rico, Guam,
American Samoa, the Virgin Islands, and the Trust Territory of the
Pacific Islands shall be deemed to be States.
(15) The term "State educational agency" means the State board of
education or other agency or officer primarily responsible for the State
supervision of public elementary and secondary schools, or, if there
is no such officer or agency, an officer or agency designated by the
Governor or by State law for this purpose.
TITLE V I I I — G E N E R A L P R O V I S I O N S R E L A T I N G T O T H E
A S S I G N M E N T OR T R A N S P O R T A T I O N O F S T U D E N T S
PROHIBITION' AGAINST ASSIGNMENT OR TRANSPORTATION OF STUDENTS TO
OVERCOME RACIAL IMBALANCE

SEC. 801. No provision of this Act shall be construed to require the
assignment or transportation of students or teachers in order to overcome racial imbalance.
PROHIBITION AGAINST USE OF APPROPRIATED FUNDS FOR BUSING

SEC. 802(a). No funds appropriated for the purpose of carrying out
any applicable program may be used for the transportation of students
or teachers (or for the purchase of equipment for such transportation)
in order to overcome racial imbalance in any school or school system, or
for the transportation of students or teachers (or for the purchase of
equipment for such transportation) in order to carry out a plan of
racial desegregation of any school or school system, except on the
express written voluntary request of appropriate local school officials.
No such funds shall be made available for transportation when the time
or distance of travel is so great as to risk the health of the children or
significantly impinge on the educational process of such children, or
where the educational opportunities available at the school to which it
is proposed that any such student be transported will be substantially

w.

372

Ante,

PUBLIC LAW 92-318-JUNE 23, 1972

p . 326.

[86 STAT.

inferior to those opportunities offered at the school to which such student would otherwise be assigned under a nondiscriminatory system of
school assignments based on geographic zones established without discrimination on account of race, religion, color, or national origin.
(b) No officer, agent, or employee of the Department of Health,
Education, and Welfare (including the Office of Education), the
Department of Justice, or any other Federal agency shall, by rule,
regulation, order, guideline, or otherwise (1) urge, persuade, induce,
or require any local education agency, or any private nonprofit agency,
institution, or organization to use any funds derived from any State
or local sources for any purpose, unless constitutionally reo[uired, foiwhich Federal funds appropriated to carry out any applicable program may not be used, as provided in this section, or (2) condition
the receipt of Federal funds under any Federal program upon any
action by any State or local public officer or employee which would
be prohibited by clause (1) on the part of a Federal officer or employee.
No officer, agent, or employee of the Department of Health, Education,
and Welfare (including the Office of Education) or any other Federal
agency shall urge, persuade, induce, or require any local education
agency to undertake transportation of any student where the time or
distance of travel is so great as to risk th^ health of the child or significantly impinge on his or her educational process; or where the
educational opportunities available at the school to which it is proposed
that such student be transported will be substantially inferior to those
offered at the school to which such student would otherwise be
assigned under a nondiscriminatory system of school assignments based
on geographic zones established without discrimination on account of
race, religion, color, or national origin.
(c) An applicable program means a program to which the General
Education Provisions Act applies.
PROVISION R E L A T I N G TO COURT A P P E A L S

SEC. 803. Notwithstanding any other law or provision of law, in
the case of any order on the part of any United States district court
which requires the transfer or transportation of any student or students
from any school attendance area prescribed by competent State or
local authority for the purposes of achieving a balance among students
with respect to race, sex, religion, or socioeconomic status, the effectiveness of such order shall be postponed until all appeals in connection
with such order have been exlhausted or, in the event no appeals are
Expiration date, taken, uutil the time for such appeals has expired. This section shall
expire at midnight on January 1, 1974.
^ .
,,

PROVISION A U T H O R I Z I N G I N T E R V E N T I O N

I N COURT ORDERS

SEC. 804. A parent or guardian of a child, or parents or guardians
of children similarly situated, transported to a public school in accordance with a court order, may seek to reopen or intervene in the further
implementation of such court order, currently in effect, if the time or
distance of travel is so great as to risk the health of the student or
significantly impinge on his or her educational process.
PROVISION R E Q U I R I N G T H A T R U L E S OF EVIDENCE BE U N I F O R M

SEC. 805. The rules of evidence required to prove that State or local
authorities are practicing racial discrimination in assigning students
to public schools shall be uniform throughout the United States.

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

373

A P P L I C A T I O N OF PROVISO O r SECTION 4 0 7 ( a ) OF T H E CIVIL RIGHTS ACT OF
1 9 6 4 TO T H E E N T I R E U N I T E D STATES

SEC. 806. The proviso of section 407(a) of the Civil Eights Act of
1964 providing in substance that no court or official of the United
States shall be empowered to issue any order seeking to achieve a racial
balance in any school by requiring the transportation of pupils or students from one school to another or one school district to another in
order to achieve such racial balance, or otherwise enlarge the existing
power of the court to insure compliance with constitutional standards
shall apply to all public school pupils and to every public school system, public school and public school board, as defined by title IV,
under all circumstances and conditions and at all times in every State,
district, territory, Commonwealth, or possession of the United States
regardless of whether the residence of such public school pupils or the
principal offices of such public school system, public school or public
school board is situated in the northern, eastern, western, or southern
part of the United States.

78 Stat. 2 4 8 .
42 u s e 2000c-€.,

42 u s e 2 0 0 0 c .

TITLE IX—PKOHIBITION OF S E X DISCRIMINATION
SEX D I S C R I M I N A T I O N

PROHIBITED

SEC. 901. (a) No person in the United States shall, on the basis of
sex, be excluded from participation in, be denied the benefits of, or be
subjected to discrimination under any education program or activity
receiving Federal financial assistance, except t h a t :
(1) in regard to admissions to educational institutions, this
section shall apply only to institutions of vocational education,
professional education, and graduate higher education, and to
public institutions of undergraduate higher education;
(2) in regard to admissions to educational institutions, this
section shall not apply (A) for one year from the date of enactment of this Act, nor for six years after such date in the case of an
educational institution which has begun the process of changing
from being an institution which admits only students of one sex
to being an institution which admits students of both sexes, but
only if it is carrying out a plan for such a change which is
approved by the Commissioner of Education or (B) for seven
years from the date an educational institution begins the process of
changing from being an institution which admits only students
of only one sex to being an institution which admits students of
both sexes, but only if it is carrying out a plan for such a change
which is approved by the Commissioner of Education, whichever
is the later;
(3) this section shall not apply to an educational institution
which is controlled by a religious organization if the application
of this subsection would not be consistent with the religious tenets
of such organization;
(4) this section shall not apply to an educational institution
whose primary purpose is the training of individuals for the military services of the United States, or the merchant marine; and
(5) in regard to admissions this section shall not apply to any
public institution of undergraduate higher education which is an
institution that traditionally and continually from its establishment has had a policy of admitting only students of one sex.
(b) Nothing contained in Subsection (a) of this section shall be
interpreted to require any educational institution to grant preferential
or disparate treatment to the members of one sex on account "of an

Exceptions.

374

PUBLIC LAW 92-318-JUNE 23, 1972

[86

STAT.

imbalance wliicli may exist with respect to the total number or percentage of persons of that sex participating in or receiving the benefits
of any federally supported program or activity, in comparison with
the total number or percentage of persons of that sex in any community, State, section, or other area: Provided^ That thife subsection shall
not be construed to prevent the consideration in any hearing or proceeding under this title of statistical evidence tending to show that
such an imbalance exists with respect to the participation in, or receipt
of the benefits of, any such program or activity by the members of
one sex.
(c) F o r purposes of this title an educational institution means any
public or private j)reschool, elementary, or secondary school, or any
institution of vocational, professional, or higher education, except that
in the case of an educational institution composed of more than one
school, college, or department which are administratively separate
units, such term means each such school, college, or department.
FEDERAL A D M I N I S T R A T I V E E N F O R C E M E N T

Report to cong r e s s i o n a l committees.

SEC. 902. Each Federal department and agency which is empowered
to extend Federal financial assistance to any education program or
activity, by way of grant, loan, or contract other than a contract of
insurance o r ^ u a r a n t y , is authorized and directed to effectuate the
provisions of section 901 with respect to such program or activity by
issuing rules, regulations, or orders of general applicability which
shall be consistent with achievement of the objectives of the statute
authorizing the financial assistance in connection with which the
action is taten. No such rule, regulation, or order shall become effective
unless and until approved by the President. Compliance with any
requirement adopted pursuant to this section may be effected (1) by
the termination of or refusal to grant or to continue assistance under
such program or activity to any recipient as to whom there has been
an express finding on the record, after opportunity for hearing, of a
failure to comply with such requirement, but such termination or
refusal shall be limited to the particular political entity, or part
thereof, or other recipient as to whom such a finding has been made,
and shall be limited in its effect to the particular program, or part
thereof, in which such noncompliance has been so found, or (2) by
any other means authorized by law: Provided^ however^ That no such
action shall be taken until the department or agency concerned has
advised the appropriate person or persons of the failure to comply
with the requirement and has determined that compliance cannot be
secured by voluntary means. I n the case of any action terminating, or
refusing to grant or continue, assistance because of failure to comply
with a requirement imposed pursuant to this section, the head of the
Federal department or agency shall file with the committees of the
House and Senate having legislative jurisdiction over the propTam
or activity involved a full written report of the circumstances and the
grounds for such action. No such action shall become effective until
thirty days have elapsed after the filing of such report.
J U D I C I A L REVIEW

SEC. 903. Any department or agency action taken pursuant to
section 1002 shall be subject to such judicial review as may otherwise
be provided by law for similar action taken by such department or
agency on other grounds. In the case of action, not otherwise subject
to judicial review, terminating or refusing to grant or to continue
financial assistance upon a finding of failure to comply with any
requirement imposed pursuant to section 902, any person aggrieved
(including any State or political subdivision thereof and any agency
of either) may obtain judicial review of such action in accordance

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

with chapter 7 of title 5, United States Code, and such action shall
not be deemed committed to unreviewable agency discretion within
the meaning of section 701 of that title.

375
f°usc*7o\^.^'

PROHIBITION AGAINST DISCRIMINATION AGAINST THE BLIND

SEC. 904. No person in. the United States shall, on the ground of
blindness or severely impaired vision, be denied admission in any
course of study by a recipient of Federal financial assistance for any
education program or activity, but nothing herein shall be construed
to require any such institution to provide any special services to such
person because of his blindness or visual impairment.
ETFECT ON OTHER LAWS

SEC. 905. Nothing in this title shall add to or detract from any
existing authority with respect to any program or activity under
which Federal financial assistance is extended by way of a contract of
insurance or guaranty.
AMENDMENTS TO OTHER LAWS

SEC. 906. (a) Sections 401(b), 407(a) (2), 410, and 902 of the Civil
Rights Act of 1964 (42 U.S.C. 2000c(b), 2000c-6(a) (2), 2000c-9, and
2000h-2) are each amended by inserting the word "sex" after the word
"religion".
(b) (1) Section 13(a) of the Fair Labor Standards Act of 1938 (29
U.S.C. 213(a)) is amended by inserting after the words "the provisions of section 6" the following: "(except section 6(d) in the case of
paragraph (1) of this subsection)".
(2) Paragraph (1) of subsection 3(r) of such Act (29 U.S.C. 203
(r) (1)) is amended by deleting "an elementary or secondary school"
and inserting in lieu thereof ''a preschool, elementary or secondary
school".
(3) Section 3 (s) (4) of such Act (29 U.S.C. 203(s) (4)) is amended
by deleting "an elementary or secondary school" and inserting in
lieu thereof "a preschool, elementary or secondary school".

78 Stat. 246
266.
75 Stat. 7 1 ;
80 S t a t . 8 3 3 .
77 Stat. 56.
29 u s e 206.

80 Stat. 831.

INTERPRETATION WITH RESPECT TO LIVING FACILITIES

SEC. 907. Notwithstanding anything to the contrary contained in
this title, nothing contained herein shall be construed to prohibit any
educational institution receiving funds under this Act, from maintaining separate living facilities for the different sexes.
TITLE X—ASSISTANCE TO INSTITUTIONS OF HIGHER
EDUCATION
ASSISTANCE TO INSTITUTIONS OF HIGHER EDUCATION

•Sec. 1001. (a) Part A of Title IV of the Higher Education Act of
1965 is amended by inserting at the end thereof the following new ^"^^' P- ^47.
subpart:
"Subpart 5—^Assistance to Institutions of Higher Education
" P A Y M E N T S T O INSTITUTIONS OF HIGHER EDUCATION

"SEC. 419. (a) Each institution of higher education shall be entitled
for each fiscal year to a cost-of-education payment in accordance with
the provisions of this section.
82-081 O - 73 - 27

376

PUBLIC LAW 92-318-JUNE 23, 1972

• . •;';

Ante, p. 248.

" ( b ) (1) The amount of the cost-of-education payment to which an
institution shall be entitled under this section for a fiscal year shall be,
subject to subsection ( d ) , the amount determined under paragraph
(2) (A) plus the amount determined under paragraph (2) ( B ) .
" ( 2 ) ( A ) ( i ) The Commissioner shall determine the amount to which
an institution is entitled under this subparagraph on the basis of the
total number of undergraduate students who are in attendance at the
institution and the number of students who are also recipients of basic
grants under subpart 1, in accordance with the following table:
"If the total number of students in
attendance is—

Not over 1,000
Over 1,000 but not over 2,500
Over 2,500 but not over 5,000

Over 5,000 but not over 10,000

Over 10,000

;,.,..,

Ante, p. 251.

Ante, p. 271.
Ante, p. 273.

;|..f ,q

.jii'-.n-

[86 STAT.

.,

, .

_:

Tlie amount of the grant is^—

$500 for each recipient
$500 for each of 100 recipients; plus $400
for each recipient in excess of 100.
$500 for each of 100 recipients; plus $400
for each of 150 recipients in excess of 100;
plus $300 for each recipient in excess of
250.
$500 for each 100 recipients; plus $400
for each of 150 recipients in excess of 100;
plus $300 for each of 250 recipients in
excess of 250; plus $200 for each recipient
in Excess of 500.
$500 for each of the 100 recipients; plus
$400 for each of 150 recipients in excess of
100; plus $300 for each of 250 recipients
in excess of 250; plus $200 for each of 500
recipients in excess of 500; plus $100 for
each recipient in excess of 1,000.

" (ii) I n any case where a recipient of a basic grant under subpart 1
attends an institution receiving a cost-of-education payment under
this subpart on less than a full-time basis, the amount determined under
this subparagraph with respect to that student shall be reduced in
proportion to the degree to which that student is not attending on a
full-time basis.
" (iii) If during any period of any fiscal year the funds available for
miaking payments on the basis of entitlements established under this
subparagraph are insufficient to satisfy fully all such entitlements, the
amount paid with respect to each such entitlement shall be ratably
reduced. When additional funds become available for such purpose,
the amount of payment from such additional funds shall be in proportion to the degree to which each such entitlement is unsatisfied by the
payments made under the first sentence of this division.
" ( B ) (i) The Commissioner shall determine with respect to each
institution an amount equal to the appropriate per centum (specified
on the table below) of the aggregate of—
" ( I ) supplemental educational opportunity grants under subpart 2 ;
« ( j j ) 'work-study payments under p a r t C ; a n d
" ( H I ) loaus to students under part E ;
made for such year to students who are in attendance at such institution. The Commissioner shall determine such amounts on the basis of
percentages of such aggregate, and the number of students in attendance at institutions during the most recent academic year ending prior
to such fiscal year, in accordance with the following table:
"If the number of students in attendance at the institution is—

The percentage of such aggregate
shall be—

Not over 1,000
Over 1,000 but not over 3,000
Over 3,000 but not over 10,000
Over 10,000

50 per centum.
4G per centum.
42 per centum.
38 per centum.

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

" (ii) If during any period of any fiscal year the funds available for
making payments on the basis of entitlements established under this
subparagraph are insufficient to satisfy fully all such entitlements, the
amount paid with respect to each such entitlement shall be ratably
reduced. When additional funds become available for such purpose,
the amount of payment from such additional funds shall be in proportion to the degree to which each such entitlement is unsatisfied by the
payments made under the first sentence of this division.
" (3) (A) In determining the number of students in attendance at institutions of higher education under this subsection, the Commissioner
shall compute the full-time equivalent of part-time students.
" ( B ) The Commissioner shall make a separate determination of
the number of students in attendance at an institution of higher education and the number of recipients of basic grants at any such institution at each branch or separate campus of that institution located
in a different community from the principal campus of that institution
pursuant to criteria established by him.
"(c) (1) An institution of higner education may receive a cost-ofeducation payment in accordance with this section only upon application therefor. A n application under this section shall be submitted
at such time or times, m such manner, and containing such information as the Commissioner determines necessary to carry out his functions under this title, and shall—
" (A) set forth such policies, assurances, and procedures as will
insure that—
" ( i ) the funds received by the institution under this section will be used solely to defray instructional expenses in
academically related programs of the applicant;
"(ii) the funds received by the institution under this section will not be used for a school or department of divinity
or for any religious worship or sectarian activity;
"(iii) the applicant will expend, during the academic year
for which a payment is sought, for all academically related
programs of the institution, an amount equal to at least the
average amount so expended during the three years preceding
the year for which the grant is sought; and
"(iv) the applicant will submit to the Commissioner such
reports as the Commissioner may require by regulation; and
" ( B ) contain such other statement of policies, assurances, and
procedures as the Commissioner may require by regulation in order
to protect the financial interests of the United States.
" ( d ) ( 1 ) The Commissioner shall pay to each institution of higher
education for each fiscal year the amount to which it is entitled under
this section.
" (2) Of the total sums appropriated to make payments on the basis
of entitlements established under this section and on the basis of entitlements established under part F of title I X —
" (A) 45 per centum shall be available for making payments on
the basis of entitlements established under paragraph (2) (A) of
subsection ( a ) ;
" ( B ) 45 per centum shall be available for making payments on
the basis of entitlements established under paragraph (2) (B) of
subsection ( a ) ; and
" ( C ) 10 per centum shall be available for making payments on
the basis of entitlements established under part F of title I X .
"(3) No payments on the basis of entitlements established under
paragraph (2) (A) of subsection (a) may be made during any fiscal
year for which the appropriations for making grants under subpart 1
does not equal at least 50 per centum of the appropriation necessary

377

, ^ ,,. j ,

P°^^' P- ^SO.

378

PUBLIC LAW 92-318-JUNE 23, 1972

[86 STAT.

for satisfying the total of all entitlements established under such subpart. I n no event shall, during any fiscal year, the aggregate of the
payments to which this paragraph applies exceed that percentage
of the total entitlements established under such paragraph (2) (A)
which equals the percentage of the total entitlements established under
subpart 1 which are satisfied by appropriations for such purpose for
that fiscal year.
"VETERANS' COST-OF-INSTRUCTION PAYMENTS TO INSTITUTIONS OF
HIGHER EDUCATION

38 use' 1501.'
80 Stat. 12;
^'^sl^uscVesi.

, vu ,.! .-,

"SEC. 420. (a) (1) During the period beginning July 1, 1972 and
ending June 30, 1975, each institution of higher education shall be
entitled to a payment under, and in accordance with, this section during any fiscal year, if the number of persons who are veterans receiving
vocational rehabilitation under chapter 31 of title 38, United States
Code, or veterans receiving educational assistance under chapter 34 of
such title, and who are in attendance as undergraduate students at such
institution during any academic year, equals at least 110 per centum
of the number of such recipients who were in attendance at such institution during the preceding academic year.
"(2) During the period specified in paragraph (1), each institution
which has qualified for a payment under this section for any year shall
be entitled during the succeeding year, notwithstanding paragraph
(1), to a payment under and in accordance with this section, if the
number of persons referred to in such paragraph (1) equals at least
the number of such persons who were in attendance at such institution
during the preceding academic year. Each institution which is entitled
to a payment for any fiscal year by reason of the preceding sentence
shall be deemed, for the purposes of any such year succeeding the year
for which it is so entitled, to have been entitled to a payment under
paragraph (1) during the preceding fiscal year.
" ( b ) (1) The amount of the payment to which any institution shall
be entitled under this section for any fiscal year shall be—
" ( A ) $300 for each person who is a veteran receiving vocational rehabilitation under chapter 31 of title 38, United States
Code, or a veteran receiving educational assistance under chapter
34 of such title 38, and who is in attendance at such institution as
an undergraduate student during such year; and
" ( B ) in addition, $150, except in the case of persons on behalf
of whom the institution has received a payment in excess of $150
under section 419, for each person who has been the recipient of
educational assistance under subchapter V or subchapter V I of
chapter 34 of such title 38, and who is in attendance at such institution as an undergraduate student during such year.
"(2) I n any case where a person on behalf of whom a payment is
made under this section attends an institution on less than a full-time
basis, the amount of the payment on behalf of that person shall be.
reduced in proportion to the degree to which that person is not attending on a full-time basis.
" ( c ) ( 1 ) An institution of higher education shall be eligible to receive
the payment to which it is entitled under this section only if it makes
application therefor to the Commissioner. An application under this
section shall be submitted at such time or times, in such manner, in
such form, and containing such information as the Commissioner
determines necessary to carry out his functions under this title, and
shall—
" (A) meet the requirements set forth in clauses (A) and (B) of
section 4 1 9 ( c ) ( 1 ) ;

86 STAT. ]

PUBLIC LAW 92-318-JUNE 23, 1972

" ( B ) set forth such plans, policies, assurances, and procedures
as will insure that the applicant will make an adequate eifort—
" (i) to maintain a full-time office of veterans' affairs which
has responsibility for veterans' outreach, recruitment, and
special education programs, including the provision of educational, vocational, and pei*sonal counseling for veterans,
"(ii) to carry out programs designed to prepare educationally disadvantaged veterans for postsecondary education
(I) under subchapter V of chapter 34 of title 38, United
States Code, and ( I I ) in the case of any institution located
near a military installation, under subchapter V I of such
chapter 34,
"(iii) to carry out active outreach, recruiting, and counseling activities through the use of funds availaole under federally assisted work-study programs, and
"(iv) to carry out an active tutorial assistance program
(including dissemination of information regarding such program) in order to make maximum use of the benefits available under section 1692 of such title 38,
except that an institution with less than 2,500 students in attendance
( I ) which the Commissioner determines, in accordance with regulations jointly prescribed by the Commissioner and the Administrator
of Veterans' Affairs (hereinafter referred to as the 'Administrator'),
cannot feasibly itself carry out any or all of the programs set forth in
subclauses (i) through (iv) of this clause, may carry out such program
oi' programs through a consortium agreement with one or more other
institutions of higher education, and ( I I ) shall be required to carry
out such programs only to the extent that the Commissioner determines, in accordance with regulations jointly prescribed by the Commissioner and the Administrator, is appropriate in terms of the number
of veterans in attendance at such institution. The adequacy of efforts
to meet the requirements of clause (B) in the preceding sentence shall
be determined by the Commissioner, based upon the recommendation
of the Administrator, in accordance with criteria established in regulations jointly prescribed by the Commissioner and the Administrator.
"(2) The Commissioner shall not approve an application under this
subsection unless he determines that the applicant will implement the
requirements of clause (B) of paragraph (1) within the first academic
year during which it receives a payment under this section.
" ( d ) The Commissioner shall pay to each institution of higher education which has had an application approved under subsection (c) the
amount to which it is entitled under this section. Payments under this
subsection shall be made in not less than three installments during each
academic year and shall be based on the actual number of persons on
behalf of whom such payments are made in attendance at the institution
at the time of the payment.
"(e) No less than 50 per centum of the amount of payments received
by any institution under subsection (d) of this section in each academic
year shall be applied by such institution to implement the requirement
of subclause (i) of clause (B) of paragraph (1) of subsection (c) of
this section, and, to the extent that such 50 per centum amount is not
exhausted, the requirements of subclauses (ii), (iii), and (iv) of such
clause, except that the Commissioner may, in accordance with criteria
established in regulations jointly prescribed by the Commissioner with
the Administrator, waive the requirement of this subsection to the
extent that he finds that such institution is adequately carrying out all
such requirements without the necessity for such application of such
amount of the payments received under this subsection.".

379

^^ ?^*|*- ^^•
as use i695.

.

waiver,

,

380
Ante,

PUBLIC LAW 92-318-JUNE 23, 1972
p. 304.

[86 STAT.

(b) Title I X of the Higher Education Act of 1965 is amended by
adding at the end thereof the following new p a r t :
" P A R T F — G E N E R A L ASSISTANCE TO GRADUATE SCHOOLS

((GENERAL ASSISTANCE GRANTS

Waiver.

Prohibition.

Report to Congress.

"SEC. 981. (a) Each institution of higher education shall, during the
period beginning July 1, 1972 and ending June 30, 1975, be entitled
to a general assistance grant (hereinafter m this section referred to as
'grant') in accordance with the provisions of this section.
" ( b ) The amount of a grant to which an institution shall be entitled
for any fiscal year shall be $200 multiplied by the number of students
in full-time enrollment (including the full-time equivalent of the parttime enrollment for credit) at such institution who are pursuing a program of post-baccalaureate study.
"(c) In order to be eligible for the grant to which it is entitled, an
institution shall make application therefor to the Commissioner. Such
application shall be submitted at such time or times and in such manner
as the Commissioner shall prescribe by regulation. Such application
shall be approved if the Commissioner determines that it—
"(1) describes general educational ^oals and specific objectives
of the graduate programs of the institution, and the amount of
institutional income needed to meet such goals and objectives;
"(2) provides satisfactory assurance that—
" (A) the proceeds of the grant will be used for programs
of the applicant consistent with such goals and objectives,
" ( B ) current operating support from non-Federal sources
for educationally related graduate programs of the applicant
has not been reduced in anticipation of funds to be received
under this section, and
" ( C ) the applicant will make such reports as the Commissioner may require including a summary report describing
how the grant was expended and an evaluation of its effectiveness in achieving such goals and objectives; and
" (3) contains such provisions as the Commissioner may require
by regulation in order to protect the financial interests of the
United States.
The Commissioner may waiv^ the requirement set forth in clause (2)
(B) in the preceding sentence for any fiscal year if he determines, in
accordance with criteria prescribed by regulation, that such waiver
would promote the purposes of this section.
" ( d ) (1) The Commissioner shall pay to each applicant the amount
for which it is eligible under this section.
" (2) If, during any period, the funds available for making payments
pursuant to paragraph (1) are insufficient to satisfy fully the amounts
for which all institutions are eligible imder this section, the amounts
for which all applicants are eligible shall be ratably reduced.
"(e) None of the proceeds from a grant may be used to support a
school or department of divinity or for religious worship or sectarian
instruction.
" ( f ) The Commissioner shall report to Congress not later than 120
days after the end of each fiscal year regarding the effectiveness of
assistance under this section in achieving the goals and objectives of
institutions of higher education and in encouraging diversity and
autonomy among such institutions of higher education. The Commissioner, in such report, shall include sueh recommendations as may be
appropriate regarding the continuation, modification, or extension of
assistance under this section.".

86 STAT. ]

PUBLIC LAW 92-319-JUNE 23, 1972

(c)(1) Section 401(a) of the Higher Education Act of 1965 is
amended (A) by striking out the word "and" at the end of paragraph
(3) of such section; ( B ) by strikinff out the period at the end of paragraph (4) and inserting in lieu mereof a semicolon and the word
''and"; and (C) by adding at the end thereof the following new paragraph:
"(5) providing assistance to institutions of higher education.".
(2) Section 401(b) of such Act is amended by striking out "and 4 "
and inserting in lieu thereof "4 and 5".
(3) Section 491(b) (1) of such Act is amended by inserting after
"For the purposes of this title," the following "except subpart 5 of
part A,".
(d) T h e total of the payments made under subpart 5 of part A of
title IV, of the Higher Education Act of 1965 (except section 420)
and under part F o f title I X of such Act may not exceed $1,000,000,000
during any fiscal year.
Approved June 2 3 , 1972.

381
Ante, p. 247.

Ante, p. 272.
Anto, p. 3 7 5 .
Limitation.
Ante, p. 380.

Public Law 92-319
AN ACT
'!'(» direct the Se<-i'Kiir.v of .\4?ricultiu*e to release on lielinlf of tlie Inited States
11 condition in H deed conveying <'ertflin lands to the Arl\ans«s (Janie aiid Kisli
Conimissioii, and for other purposes.

June 23, 1972
[H. R. S404]

/^e it enacted by the ISeimte and Home of RepremntathieH of the
l.nited States of America in Congresa assemMed. That, notwithstaiul- Land"use"condiing the provisions of subsection (c) of section 32 of the Bankhead- tion, release.
Jones Farm Tenant Act, as amended (7 L^.S.C. 1011 ( c ) ) , the Secretary so stat. 525;
of Agriculture is authorized and directed to release on behalf of tlie 56 Stat. 725.
ITnited States with respect to lands designated pursuant to sectioM
•2 hereof the condition in a deed dated Ootooer 2,1969, conveying lands
in the State of Arkansas to the Arkansas State Game and Fisli
(Commission, which requires that the lands so conveyed be used for
public purposes and provides for a reversion of such lands to the
I "nited States if at any time they cease to be so used.
SEC. 2. The Secretai'y shall release the condition refei'red to in the
Hrst section of this Act only with respect to lands covered by and
described in an agi'eement or agreements entered into between the
Secretary and the Arkansas State Game and Fish Gommission in
which such State agency, in consideration of the release of such
conditions as to such lands, agrees:
(a) that if lands with respect to which the condition is released
are exchanged, they shall be exchanged for lands or other propeity of approximately comparable value and that the lands so
acquired by exchange shall be used for public purposes: and
(b) that proceeds from a sale, lease, exchange, or other- disposition of lands with respect to which the condition is released
shall be held in a separate fund open to inspection by the Secretary of Agricultui-e and shall be used by the (Commission for the
acquisition of lands to be held or used for public purposes.
Mineral
SKC, 8. Fpon application all the undivided mineral interests of interests.
the United States ni any parcel or tract of land released pursuant to
this Act from the condition as to such lands shall be conveyed to the
Arkansas State Game and Fish ("Commission for- the use and benefit of
the Gommission by.the Secretary of the Interior. In areas where the
Secretary of the Interior determines that there is no active mineral