h2>TITLE III--INSTITUTIONAL AID
SEC. 304. STRENGTHENING HBCU's
(a) GRANTS- Section 323 (20 U.S.C. 1062) is amended--
(1) by redesignating subsection (b) as subsection (c);
(2) by inserting after subsection (a) the following:
`(b) ENDOWMENT FUND-
`(1) IN GENERAL- An institution may use not more than 20 percent of the grant funds provided under this part to establish or increase an endowment fund at the institution.
`(2) MATCHING REQUIREMENT- In order to be eligible to use grant funds in accordance with paragraph (1), the eligible institution shall provide matching funds from non-Federal sources, in an amount equal to or greater than the Federal funds used in accordance with paragraph (1), for the establishment or increase of the endowment fund.
`(3) COMPARABILITY- The provisions of part C regarding the establishment or increase of an endowment fund, that the Secretary determines are not inconsistent with this subsection, shall apply to funds used under paragraph (1).'; and
(3) in subsection (c) (as redesignated by paragraph (1)), by striking paragraph (3).
(b) PROFESSIONAL OR GRADUATE INSTITUTIONS-
(1) GENERAL AUTHORIZATION- Section 326(a) (20 U.S.C. 1063b(a)) is amended--
(A) in subsection (a)--
(i) in paragraph (1), by inserting `in mathematics, engineering, or the physical or natural sciences' after `graduate education opportunities'; and
(ii) in paragraph (2)--
(I) by striking `$500,000' and inserting `$1,000,000'; and
(II) by striking `except that' and all that follows and inserting the following: `, except that no institution shall be required to match any portion of the first $1,000,000 of the institution's award from the Secretary. After funds are made available to each eligible institution under the funding rules described in subsection (f), the Secretary shall distribute, on a pro rata basis, any amounts which were not so made available (by reason of the failure of an institution to comply with the matching requirements of this paragraph) among the institutions that have complied with such matching requirement.'; and
(B) in subsection (d)(2), by striking `$500,000' and inserting `$1,000,000'.
(2) USE OF FUNDS- Section 326(c) (20 U.S.C. 1063b(c)) is amended by striking paragraphs (1) through (3) and inserting the following:
`(1) purchase, rental or lease of scientific or laboratory equipment for educational purposes, including instructional and research purposes;
`(2) construction, maintenance, renovation, and improvement in classroom, library, laboratory, and other instructional facilities, including purchase or rental of telecommunications technology equipment or services;
`(3) purchase of library books, periodicals, technical and other scientific journals, microfilm, microfiche, and other educational materials, including telecommunications program materials;
`(4) scholarships, fellowships, and other financial assistance for needy graduate and professional students to permit the enrollment of the students in and completion of the doctoral degree in medicine, dentistry, pharmacy, veterinary medicine, law, and the doctorate degree in the physical or natural sciences, engineering, mathematics, or other scientific disciplines in which African Americans are underrepresented;
`(5) establish or improve a development office to strengthen and increase contributions from alumni and the private sector;
`(6) assist in the establishment or maintenance of an institutional endowment to facilitate financial independence pursuant to section 331; and
`(7) funds and administrative management, and the acquisition of equipment, including software, for use in strengthening funds management and management information systems.'.
(3) ELIGIBILITY- Section 326(e) (20 U.S.C. 1063b(e)) is amended--
(A) in paragraph (1)--
(i) by striking `include--' and inserting `are the following';
(ii) by inserting `and other qualified graduate programs' before the semicolon at the end of subparagraphs (E) through (J);
(iii) by striking `and' at the end of subparagraph (O); and
(iv) in subparagraph (P)--
(I) by inserting `University' after `State'; and
(II) by striking the period and inserting a semicolon; and
(III) by adding at the end the following:
`(Q) Norfolk State University qualified graduate programs; and
`(R) Tennessee State University qualified graduate programs.';
(B) by striking paragraphs (2) and (3) and inserting the following:
`(2) QUALIFIED GRADUATE PROGRAM- (A) For the purposes of this section, the term `qualified graduate program' means a graduate or professional program that provides a program of instruction in the physical or natural sciences, engineering, mathematics, or other scientific discipline in which African Americans are underrepresented and has students enrolled in such program at the time of application for a grant under this section.
`(B) Notwithstanding the enrollment requirement contained in subparagraph (A), an institution may use an amount equal to not more than 10 percent of the institution's grant under this section for the development of a new qualified graduate program.
`(3) SPECIAL RULE- Institutions that were awarded grants under this section prior to October 1, 1998, shall continue to receive such grants, subject to the availability of appropriated funds, regardless of the eligibility of the institutions described in subparagraphs (Q) and (R) of paragraph (1).'; and
(C) by adding at the end the following:
`(5) INSTITUTIONAL CHOICE- The president or chancellor of the institution may decide which graduate or professional school or qualified graduate program will receive funds under the grant in any 1 fiscal year, if the allocation of funds among the schools or programs is delineated in the application for funds submitted to the Secretary under this section.'.
(4) FUNDING RULE- Section 326(f) (20 U.S.C. 1063b(f)) is amended--
(A) by striking `Of the amount appropriated' and inserting `Subject to subsection (g), of the amount appropriated';
(B) in paragraph (1)--
(i) by striking `$12,000,000' and inserting `$26,600,000'; and
(ii) by striking `(A) through (E)' and inserting `(A) through (P)';
(C) by striking paragraph (2) and inserting the following:
`(2) any amount in excess of $26,600,000, but not in excess of $28,600,000, shall be available for the purpose of making grants to institutions or programs described in subparagraphs (Q) and (R) of subsection (e)(1); and
`(3) any amount in excess of $28,600,000, shall be made available to each of the institutions or programs identified in subparagraphs (A) through (R) pursuant to a formula developed by the Secretary that uses the following elements:
`(A) The ability of the institution to match Federal funds with non-Federal funds.
`(B) The number of students enrolled in the programs for which the eligible institution received funding under this section in the previous year.
`(C) The average cost of education per student, for all full-time graduate or professional students (or the equivalent) enrolled in the eligible professional or graduate school, or for doctoral students enrolled in the qualified graduate programs.
`(D) The number of students in the previous year who received their first professional or doctoral degree from the programs for which the eligible institution received funding under this section in the previous year.
`(E) The contribution, on a percent basis, of the programs for which the institution is eligible to receive funds under this section to the total number of African Americans receiving graduate or professional degrees in the professions or disciplines related to the programs for the previous year.'.
(5) HOLD HARMLESS RULE- Section 326 is further amended by adding at the end the following new subsection:
`(g) HOLD HARMLESS RULE- Notwithstanding paragraphs (2) and (3) of subsection (f), no institution or qualified program identified in subsection (e)(1) that received a grant for fiscal year 1998 and that is eligible to receive a grant in a subsequent fiscal year shall receive a grant amount in any such subsequent fiscal year that is less than the grant amount received for fiscal year 1998, unless the amount appropriated is not sufficient to provide such grant amounts to all such institutions and programs, or the institution cannot provide sufficient matching funds to meet the requirements of this section.'.
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