Laws & Guidance HIGHER EDUCATION
1998 Amendments to the Higher Education Act of 1965
P.L. 105-244

Sec 101--Revision of Title I (cont'd)
PART B--ADDITIONAL GENERAL PROVISIONS

`(a) IN GENERAL- Institutions of higher education receiving Federal financial assistance may not use such financial assistance, directly or indirectly, to undertake any study or project or fulfill the terms of any contract containing an express or implied provision that any person or persons of a particular race, religion, sex, or national origin be barred from performing such study, project, or contract, except that nothing in this subsection shall be construed to prohibit an institution from conducting objective studies or projects concerning the nature, effects, or prevention of discrimination, or to have the institution??s curriculum restricted on the subject of discrimination.

`(b) LIMITATIONS ON STATUTORY CONSTRUCTION- Nothing in this Act shall be construed to limit the rights or responsibilities of any individual under the Americans With Disabilities Act of 1990, the Rehabilitation Act of 1973, or any other law.

`SEC. 112. PROTECTION OF STUDENT SPEECH AND ASSOCIATION RIGHTS.

`(a) PROTECTION OF RIGHTS- It is the sense of Congress that no student attending an institution of higher education on a full- or part-time basis should, on the basis of participation in protected speech or protected association, be excluded from participation in, be denied the benefits of, or be subjected to discrimination or official sanction under any education program, activity, or division of the institution directly or indirectly receiving financial assistance under this Act, whether or not such program, activity, or division is sponsored or officially sanctioned by the institution.

`(b) CONSTRUCTION- Nothing in this section shall be construed--

`(1) to discourage the imposition of an official sanction on a student that has willfully participated in the disruption or attempted disruption of a lecture, class, speech, presentation, or performance made or scheduled to be made under the auspices of the institution of higher education; or

`(2) to prevent an institution of higher education from taking appropriate and effective action to prevent violations of State liquor laws, to discourage binge drinking and other alcohol abuse, to protect students from sexual harassment including assault and date rape, to prevent hazing, or to regulate unsanitary or unsafe conditions in any student residence.

`(c) DEFINITIONS- For the purposes of this section:

`(1) OFFICIAL SANCTION- The term `official sanction??--

`(A) means expulsion, suspension, probation, censure, condemnation, reprimand, or any other disciplinary, coercive, or adverse action taken by an institution of higher education or administrative unit of the institution; and

`(B) includes an oral or written warning made by an official of an institution of higher education acting in the official capacity of the official.

`(2) PROTECTED ASSOCIATION- The term `protected association?? means the joining, assembling, and residing with others that is protected under the first and 14th amendments to the Constitution, or would be protected if the institution of higher education involved were subject to those amendments.

`(3) PROTECTED SPEECH- The term `protected speech?? means speech that is protected under the first and 14th amendments to the Constitution, or would be protected if the institution of higher education involved were subject to those amendments.

`SEC. 113. TREATMENT OF TERRITORIES AND TERRITORIAL STUDENT ASSISTANCE.

`(a) WAIVER AUTHORITY- The Secretary is required to waive the eligibility criteria of any postsecondary education program administered by the Department where such criteria do not take into account the unique circumstances in Guam, the United States Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Freely Associated States.

`(b) ELIGIBILITY- Notwithstanding any other provision of law, an institution of higher education that is located in any of the Freely Associated States, rather than in another State, shall be eligible, if otherwise qualified, for assistance under chapter 1 of subpart 2 of part A of title IV. This subsection shall cease to be effective on September 30, 2004.

`SEC. 114. NATIONAL ADVISORY COMMITTEE ON INSTITUTIONAL QUALITY AND INTEGRITY.

`(a) ESTABLISHMENT- There is established in the Department a National Advisory Committee on Institutional Quality and Integrity (hereafter in this section referred to as the `Committee??), which shall be composed of 15 members appointed by the Secretary from among individuals who are representatives of, or knowledgeable concerning, education and training beyond secondary education, including representatives of all sectors and types of institutions of higher education (as defined in section 102), to assess the process of eligibility and certification of such institutions under title IV and the provision of financial aid under title IV.

`(b) TERMS OF MEMBERS- Terms of office of each member of the Committee shall be 3 years, except that any member appointed to fill a vacancy occurring prior to the expiration of the term for which the member??s predecessor was appointed shall be appointed for the remainder of such term.

`(c) PUBLIC NOTICE- The Secretary shall--

`(1) annually publish in the Federal Register a list containing the name of each member of the Committee and the date of the expiration of the term of office of the member; and

`(2) publicly solicit nominations for each vacant position or expiring term of office on the Committee.

`(d) FUNCTIONS- The Committee shall--

`(1) advise the Secretary with respect to establishment and enforcement of the standards of accrediting agencies or associations under subpart 2 of part H of title IV;

`(2) advise the Secretary with respect to the recognition of a specific accrediting agency or association;

`(3) advise the Secretary with respect to the preparation and publication of the list of nationally recognized accrediting agencies and associations;

`(4) develop and recommend to the Secretary standards and criteria for specific categories of vocational training institutions and institutions of higher education for which there are no recognized accrediting agencies, associations, or State agencies, in order to establish the eligibility of such institutions on an interim basis for participation in federally funded programs;

`(5) advise the Secretary with respect to the eligibility and certification process for institutions of higher education under title IV, together with recommendations for improvements in such process;

`(6) advise the Secretary with respect to the relationship between--

`(A) accreditation of institutions of higher education and the certification and eligibility of such institutions; and

`(B) State licensing responsibilities with respect to such institutions; and

`(7) carry out such other advisory functions relating to accreditation and institutional eligibility as the Secretary may prescribe.

`(e) MEETING PROCEDURES- The Committee shall meet not less than twice each year at the call of the Chairperson. The date of, and agenda for, each meeting of the Committee shall be submitted in advance to the Secretary for approval. A representative of the Secretary shall be present at all meetings of the Committee.

`(f) REPORT- Not later than November 30 of each year, the Committee shall make an annual report through the Secretary to Congress. The annual report shall contain--

`(1) a list of the members of the Committee and their addresses;

`(2) a list of the functions of the Committee;

`(3) a list of dates and places of each meeting during the preceding fiscal year; and

`(4) a summary of the activities, findings and recommendations made by the Committee during the preceding fiscal year.

`(g) TERMINATION- The Committee shall cease to exist on September 30, 2004.

`SEC. 115. STUDENT REPRESENTATION.

`The Secretary shall, in appointing individuals to any commission, committee, board, panel, or other body in connection with the administration of this Act, include individuals who are, at the time of appointment, attending an institution of higher education.

`SEC. 116. FINANCIAL RESPONSIBILITY OF FOREIGN STUDENTS.

`Nothing in this Act or any other Federal law shall be construed to prohibit any institution of higher education from requiring a student who is a foreign national (and not admitted to permanent residence in the United States) to guarantee the future payment of tuition and fees to such institution by--

`(1) making advance payment of such tuition and fees;

`(2) making deposits in an escrow account administered by such institution for such payments; or

`(3) obtaining a bond or other insurance that such payments will be made.

`SEC. 117. DISCLOSURES OF FOREIGN GIFTS.

`(a) DISCLOSURE REPORT- Whenever any institution is owned or controlled by a foreign source or receives a gift from or enters into a contract with a foreign source, the value of which is $250,000 or more, considered alone or in combination with all other gifts from or contracts with that foreign source within a calendar year, the institution shall file a disclosure report with the Secretary on January 31 or July 31, whichever is sooner.

`(b) CONTENTS OF REPORT- Each report to the Secretary required by this section shall contain the following:

`(1) For gifts received from or contracts entered into with a foreign source other than a foreign government, the aggregate dollar amount of such gifts and contracts attributable to a particular country. The country to which a gift is attributable is the country of citizenship, or if unknown, the principal residence for a foreign source who is a natural person, and the country of incorporation, or if unknown, the principal place of business, for a foreign source which is a legal entity.

`(2) For gifts received from or contracts entered into with a foreign government, the aggregate amount of such gifts and contracts received from each foreign government.

`(3) In the case of an institution which is owned or controlled by a foreign source, the identity of the foreign source, the date on which the foreign source assumed ownership or control, and any changes in program or structure resulting from the change in ownership or control.

`(c) ADDITIONAL DISCLOSURES FOR RESTRICTED AND CONDITIONAL GIFTS- Notwithstanding the provisions of subsection (b), whenever any institution receives a restricted or conditional gift or contract from a foreign source, the institution shall disclose the following:

`(1) For such gifts received from or contracts entered into with a foreign source other than a foreign government, the amount, the date, and a description of such conditions or restrictions. The report shall also disclose the country of citizenship, or if unknown, the principal residence for a foreign source which is a natural person, and the country of incorporation, or if unknown, the principal place of business for a foreign source which is a legal entity.

`(2) For gifts received from or contracts entered into with a foreign government, the amount, the date, a description of such conditions or restrictions, and the name of the foreign government.

`(d) RELATION TO OTHER REPORTING REQUIREMENTS-

`(1) STATE REQUIREMENTS- If an institution described under subsection (a) is within a State which has enacted requirements for public disclosure of gifts from or contracts with a foreign source that are substantially similar to the requirements of this section, a copy of the disclosure report filed with the State may be filed with the Secretary in lieu of a report required under subsection (a). The State in which the institution is located shall provide to the Secretary such assurances as the Secretary may require to establish that the institution has met the requirements for public disclosure under State law if the State report is filed.

`(2) USE OF OTHER FEDERAL REPORTS- If an institution receives a gift from, or enters into a contract with, a foreign source, where any other department, agency, or bureau of the executive branch requires a report containing requirements substantially similar to those required under this section, a copy of the report may be filed with the Secretary in lieu of a report required under subsection (a).

`(e) PUBLIC INSPECTION- All disclosure reports required by this section shall be public records open to inspection and copying during business hours.

`(f) ENFORCEMENT-

`(1) COURT ORDERS- Whenever it appears that an institution has failed to comply with the requirements of this section, including any rule or regulation promulgated under this section, a civil action may be brought by the Attorney General, at the request of the Secretary, in an appropriate district court of the United States, or the appropriate United States court of any territory or other place subject to the jurisdiction of the United States, to request such court to compel compliance with the requirements of this section.

`(2) COSTS- For knowing or willful failure to comply with the requirements of this section, including any rule or regulation promulgated thereunder, an institution shall pay to the Treasury of the United States the full costs to the United States of obtaining compliance, including all associated costs of investigation and enforcement.

`(g) REGULATIONS- The Secretary may promulgate regulations to carry out this section.

`(h) DEFINITIONS- For the purpose of this section--

`(1) the term `contract?? means any agreement for the acquisition by purchase, lease, or barter of property or services by the foreign source, for the direct benefit or use of either of the parties;

`(2) the term `foreign source?? means--

`(A) a foreign government, including an agency of a foreign government;

`(B) a legal entity, governmental or otherwise, created solely under the laws of a foreign state or states;

`(C) an individual who is not a citizen or a national of the United States or a trust territory or protectorate thereof; and

`(D) an agent, including a subsidiary or affiliate of a foreign legal entity, acting on behalf of a foreign source;

`(3) the term `gift?? means any gift of money or property;

`(4) the term `institution?? means any institution, public or private, or, if a multicampus institution, any single campus of such institution, in any State, that--

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

`(B) provides a program for which the institution awards a bachelor??s degree (or provides not less than a 2-year program which is acceptable for full credit toward such a degree) or more advanced degrees; and

`(C) is accredited by a nationally recognized accrediting agency or association and to which institution Federal financial assistance is extended (directly or indirectly through another entity or person), or which institution receives support from the extension of Federal financial assistance to any of the institution??s subunits; and

`(5) the term `restricted or conditional gift or contract?? means any endowment, gift, grant, contract, award, present, or property of any kind which includes provisions regarding--

`(A) the employment, assignment, or termination of faculty;

`(B) the establishment of departments, centers, research or lecture programs, or new faculty positions;

`(C) the selection or admission of students; or

`(D) the award of grants, loans, scholarships, fellowships, or other forms of financial aid restricted to students of a specified country, religion, sex, ethnic origin, or political opinion.

`SEC. 118. APPLICATION OF PEER REVIEW PROCESS.

`All applications submitted under the provisions of this Act which require peer review shall be read by a panel of readers composed of individuals selected by the Secretary, which shall include outside readers who are not employees of the Federal Government. The Secretary shall ensure that no individual assigned under this section to review any application has any conflict of interest with regard to that application which might impair the impartiality with which that individual conducts the review under this section.

`SEC. 119. BINGE DRINKING ON COLLEGE CAMPUSES.

`(a) SHORT TITLE- This section may be cited as the `Collegiate Initiative To Reduce Binge Drinking and Illegal Alcohol Consumption??.

`(b) SENSE OF CONGRESS- It is the sense of Congress that, in an effort to change the culture of alcohol consumption on college campuses, all institutions of higher education should carry out the following:

`(1) The president of the institution should appoint a task force consisting of school administrators, faculty, students, Greek system representatives, and others to conduct a full examination of student and academic life at the institution. The task force should make recommendations for a broad range of policy and program changes that would serve to reduce alcohol and other drug-related problems. The institution should provide resources to assist the task force in promoting the campus policies and proposed environmental changes that have been identified.

`(2) The institution should provide maximum opportunities for students to live in an alcohol-free environment and to engage in stimulating, alcohol-free recreational and leisure activities.

`(3) The institution should enforce a `zero tolerance?? policy on the illegal consumption of alcohol by students at the institution.

`(4) The institution should vigorously enforce the institution??s code of disciplinary sanctions for those who violate campus alcohol policies. Students with alcohol or other drug-related problems should be referred for assistance, including on-campus counseling programs if appropriate.

`(5) The institution should adopt a policy to discourage alcoholic beverage-related sponsorship of on-campus activities. It should adopt policies limiting the advertisement and promotion of alcoholic beverages on campus.

`(6) The institution should work with the local community, including local businesses, in a `Town/Gown?? alliance to encourage responsible policies toward alcohol consumption and to address illegal alcohol use by students.

`SEC. 120. DRUG AND ALCOHOL ABUSE PREVENTION.

`(a) RESTRICTION ON ELIGIBILITY- Notwithstanding any other provision of law, no institution of higher education shall be eligible to receive funds or any other form of financial assistance under any Federal program, including participation in any federally funded or guaranteed student loan program, unless the institution certifies to the Secretary that the institution has adopted and has implemented a program to prevent the use of illicit drugs and the abuse of alcohol by students and employees that, at a minimum, includes--

`(1) the annual distribution to each student and employee of--

`(A) standards of conduct that clearly prohibit, at a minimum, the unlawful possession, use, or distribution of illicit drugs and alcohol by students and employees on the institution??s property or as part of any of the institution??s activities;

`(B) a description of the applicable legal sanctions under local, State, or Federal law for the unlawful possession or distribution of illicit drugs and alcohol;

`(C) a description of the health-risks associated with the use of illicit drugs and the abuse of alcohol;

`(D) a description of any drug or alcohol counseling, treatment, or rehabilitation or re-entry programs that are available to employees or students; and

`(E) a clear statement that the institution will impose sanctions on students and employees (consistent with local, State, and Federal law), and a description of those sanctions, up to and including expulsion or termination of employment and referral for prosecution, for violations of the standards of conduct required by subparagraph (A); and

`(2) a biennial review by the institution of the institution??s program to--

`(A) determine the program??s effectiveness and implement changes to the program if the changes are needed; and

`(B) ensure that the sanctions required by paragraph (1)(E) are consistently enforced.

`(b) INFORMATION AVAILABILITY- Each institution of higher education that provides the certification required by subsection (a) shall, upon request, make available to the Secretary and to the public a copy of each item required by subsection (a)(1) as well as the results of the biennial review required by subsection (a)(2).

`(c) REGULATIONS-

`(1) IN GENERAL- The Secretary shall publish regulations to implement and enforce the provisions of this section, including regulations that provide for--

`(A) the periodic review of a representative sample of programs required by subsection (a); and

`(B) a range of responses and sanctions for institutions of higher education that fail to implement their programs or to consistently enforce their sanctions, including information and technical assistance, the development of a compliance agreement, and the termination of any form of Federal financial assistance.

`(2) REHABILITATION PROGRAM- The sanctions required by subsection (a)(1)(E) may include the completion of an appropriate rehabilitation program.

`(d) APPEALS- Upon determination by the Secretary to terminate financial assistance to any institution of higher education under this section, the institution may file an appeal with an administrative law judge before the expiration of the 30-day period beginning on the date such institution is notified of the decision to terminate financial assistance under this section. Such judge shall hold a hearing with respect to such termination of assistance before the expiration of the 45-day period beginning on the date that such appeal is filed. Such judge may extend such 45-day period upon a motion by the institution concerned. The decision of the judge with respect to such termination shall be considered to be a final agency action.

`(e) ALCOHOL AND DRUG ABUSE PREVENTION GRANTS-

`(1) PROGRAM AUTHORITY- The Secretary may make grants to institutions of higher education or consortia of such institutions, and enter into contracts with such institutions, consortia, and other organizations, to develop, implement, operate, improve, and disseminate programs of prevention, and education (including treatment-referral) to reduce and eliminate the illegal use of drugs and alcohol and the violence associated with such use. Such grants or contracts may also be used for the support of a higher education center for alcohol and drug abuse prevention that will provide training, technical assistance, evaluation, dissemination, and associated services and assistance to the higher education community as determined by the Secretary and institutions of higher education.

`(2) AWARDS- Grants and contracts shall be awarded under paragraph (1) on a competitive basis.

`(3) APPLICATIONS- An institution of higher education, a consortium of such institutions, or another organization that desires to receive a grant or contract under paragraph (1) shall submit an application to the Secretary at such time, in such manner, and containing or accompanied by such information as the Secretary may reasonably require by regulation.

`(4) ADDITIONAL REQUIREMENTS-

`(A) PARTICIPATION- In awarding grants and contracts under this subsection the Secretary shall make every effort to ensure--

`(i) the equitable participation of private and public institutions of higher education (including community and junior colleges); and

`(ii) the equitable geographic participation of such institutions.

`(B) CONSIDERATION- In awarding grants and contracts under this subsection the Secretary shall give appropriate consideration to institutions of higher education with limited enrollment.

`(5) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out this subsection $5,000,000 for fiscal year 1999 and such sums as may be necessary for each of the 4 succeeding fiscal years.

`(f) NATIONAL RECOGNITION AWARDS-

`(1) PURPOSE- It is the purpose of this subsection to provide models of innovative and effective alcohol and drug abuse prevention programs in higher education and to focus national attention on exemplary alcohol and drug abuse prevention efforts.

`(2) AWARDS-

`(A) IN GENERAL- The Secretary shall make 5 National Recognition Awards for outstanding alcohol prevention programs and 5 National Recognition Awards for outstanding drug abuse prevention programs, on an annual basis, to institutions of higher education that--

`(i) have developed and implemented innovative and effective alcohol prevention programs or drug abuse prevention programs; and

`(ii) with respect to an application for an alcohol prevention program award, demonstrate in the application submitted under paragraph (3) that the institution has undertaken efforts designed to change the culture of college drinking consistent with the review criteria described in paragraph (3)(C)(iii).

`(B) CEREMONY- The awards shall be made at a ceremony in Washington, D.C.

`(C) DOCUMENT- The Secretary shall publish a document describing the alcohol and drug abuse prevention programs of institutions of higher education that receive the awards under this subsection and disseminate the document nationally to all public and private secondary school guidance counselors for use by secondary school juniors and seniors preparing to enter an institution of higher education. The document shall be disseminated not later than January 1 of each academic year.

`(D) AMOUNT AND USE- Each institution of higher education selected to receive an award under this subsection shall receive an award in the amount of $50,000. Such award shall be used for the maintenance and improvement of the institution??s outstanding prevention program for the academic year following the academic year for which the award is made.

`(3) APPLICATION-

`(A) IN GENERAL- Each institution of higher education desiring an award under this subsection shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may require. Each such application shall contain--

`(i) a clear description of the goals and objectives of the prevention program of the institution;

`(ii) a description of program activities that focus on alcohol or drug policy issues, policy development, modification, or refinement, policy dissemination and implementation, and policy enforcement;

`(iii) a description of activities that encourage student and employee participation and involvement in activity development and implementation;

`(iv) the objective criteria used to determine the effectiveness of the methods used in such programs and the means used to evaluate and improve the programs?? efforts;

`(v) a description of special initiatives used to reduce high-risk behavior or increase low-risk behavior; and

`(vi) a description of coordination and networking efforts that exist in the community in which the institution is located for purposes of such programs.

`(B) APPLICATION REVIEW- The Secretary shall appoint a committee to review applications submitted under this paragraph. The committee may include representatives of Federal departments or agencies the programs of which include alcohol abuse prevention and education efforts and drug abuse prevention and education efforts, directors or heads (or their representatives) of professional associations that focus on alcohol and drug abuse prevention efforts, and non-Federal scientists who have backgrounds in social science evaluation and research methodology and in education. Decisions of the committee shall be made directly to the Secretary without review by any other entity in the Department.

`(C) REVIEW CRITERIA- The committee described in subparagraph (B) shall develop specific review criteria for reviewing and evaluating applications submitted under this paragraph. The review criteria shall include--

`(i) measures of the effectiveness of the program of the institution, that includes changes in the campus alcohol or other drug environment or the climate and changes in alcohol or other drug use before and after the initiation of the program;

`(ii) measures of program institutionalization, including--

`(I) an assessment of needs of the institution;

`(II) the institution??s alcohol and drug policies, staff and faculty development activities, drug prevention criteria, student, faculty, and campus community involvement; and

`(III) whether the program will be continued after the cessation of Federal funding; and

`(iii) with respect to an application for an alcohol prevention program award, criteria for determining whether the institution has policies in effect that--

`(I) prohibit alcoholic beverage sponsorship of athletic events, and prohibit alcoholic beverage advertising inside athletic facilities;

`(II) prohibit alcoholic beverage marketing on campus, which may include efforts to ban alcohol advertising in institutional publications or efforts to prohibit alcohol-related advertisements at campus events;

`(III) establish or expand upon alcohol-free living arrangements for all college students;

`(IV) establish partnerships with community members and organizations to further alcohol prevention efforts on campus and the areas surrounding campus; and

`(V) establish innovative communications programs involving students and faculty in an effort to educate students about alcohol-related risks.

`(4) ELIGIBILITY- In order to be eligible to receive a National Recognition Award an institution of higher education shall--

`(A) offer an associate or baccalaureate degree;

`(B) have established an alcohol abuse prevention and education program or a drug abuse prevention and education program;

`(C) nominate itself or be nominated by others, such as professional associations or student organizations, to receive the award; and

`(D) not have received an award under this subsection during the 5 academic years preceding the academic year for which the determination is made.

`(5) AUTHORIZATION OF APPROPRIATIONS-

`(A) IN GENERAL- There is authorized to be appropriated to carry out this subsection $750,000 for fiscal year 1999.

`(B) AVAILABILITY- Funds appropriated under subparagraph (A) shall remain available until expended.

`SEC. 121. PRIOR RIGHTS AND OBLIGATIONS.

`(a) AUTHORIZATION OF APPROPRIATIONS-

`(1) PRE-1987 PARTS C AND D OF TITLE VII- There are authorized to be appropriated such sums as may be necessary for fiscal year 1999 and for each of the 4 succeeding fiscal years to pay obligations incurred prior to 1987 under parts C and D of title VII, as such parts were in effect before the effective date of the Higher Education Amendments of 1992.

`(2) POST-1992 AND PRE-1998 PART C OF TITLE VII- There are authorized to be appropriated such sums as may be necessary for fiscal year 1999 and for each of the 4 succeeding fiscal years to pay obligations incurred prior to the date of enactment of the Higher Education Amendments of 1998 under part C of title VII, as such part was in effect during the period--

`(A) after the effective date of the Higher Education Amendments of 1992; and

`(B) prior to the date of enactment of the Higher Education Amendments of 1998.

`(b) LEGAL RESPONSIBILITIES-

`(1) PRE-1987 TITLE VII- All entities with continuing obligations incurred under parts A, B, C, and D of title VII, as such parts were in effect before the effective date of the Higher Education Amendments of 1992, shall be subject to the requirements of such part as in effect before the effective date of the Higher Education Amendments of 1992.

`(2) POST-1992 AND PRE-1998 PART C OF TITLE VII- All entities with continuing obligations incurred under part C of title VII, as such part was in effect during the period--

`(A) after the effective date of the Higher Education Amendments of 1992; and

`(B) prior to the date of enactment of the Higher Education Amendments of 1998,

shall be subject to the requirements of such part as such part was in effect during such period.

`SEC. 122. RECOVERY OF PAYMENTS.

`(a) PUBLIC BENEFIT- Congress declares that, if a facility constructed with the aid of a grant under part A of title VII as such part A was in effect prior to the date of enactment of the Higher Education Amendments of 1998, or part B of such title as part B was in effect prior to the date of enactment of the Higher Education Amendments of 1992, is used as an academic facility for 20 years following completion of such construction, the public benefit accruing to the United States will equal in value the amount of the grant. The period of 20 years after completion of such construction shall therefore be deemed to be the period of Federal interest in such facility for the purposes of such title as so in effect.

`(b) RECOVERY UPON CESSATION OF PUBLIC BENEFIT- If, within 20 years after completion of construction of an academic facility which has been constructed, in part with a grant under part A of title VII as such part A was in effect prior to the date of enactment of the Higher Education Amendments of 1998, or part B of title VII as such part B was in effect prior to the date of enactment of the Higher Education Amendments of 1992--

`(1) the applicant under such parts as so in effect (or the applicant??s 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?? (as such term was defined under title VII, as so in effect), 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 value of the facility at that time (or so much thereof as constituted an approved project or projects) the same ratio as the amount of Federal grant bore to the cost of the facility financed with the aid of such grant. The 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) PROHIBITION ON USE FOR RELIGION- Notwithstanding the provisions of subsections (a) and (b), no project assisted with funds under title VII (as in effect prior to the date of enactment of the Higher Education Amendments of 1998) shall ever be used for religious worship or a sectarian activity or for a school or department of divinity.

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Last Modified: 09/23/2003