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108th CONGRESS
1st Session
S. 479
To amend title IV of the Higher Education Act of 1965 to provide grants
for homeland security scholarships.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 27, 2003
Mr. Edwards introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend title IV of the Higher Education Act of 1965 to provide grants
for homeland security scholarships.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protect America Scholarships Act of
2003''.
SEC. 2. GRANTS AUTHORIZED.
Part A of title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.) is amended by adding at the end the following:
``Subpart 9--Homeland Security Scholarships
``SEC. 420K. PURPOSES.
``The purposes of this subpart are--
``(1) to recruit talented young people to professions that
are needed to ensure the Nation's homeland security; and
``(2) to make college education more affordable.
``SEC. 420L. DEFINITIONS.
``In this subpart:
``(1) Eligible entity.--The term `eligible entity' means a
partnership between--
``(A) an institution of higher education (or
consortium of such institutions); and
``(B) a qualified employer (or consortium of such
employers).
``(2) Eligible student.--The term `eligible student' means
an individual who--
``(A)(i) is enrolled as a full- or part-time
student at an institution of higher education with a
qualified academic major or program; or
``(ii) has been accepted for enrollment at an
institution of higher education and intends to major in
a qualified academic major or program;
``(B) submits an application for a scholarship
under this subpart; and
``(C) submits a written contract, prior to
receiving assistance, accepting payment of a
scholarship in exchange for providing qualified
service.
``(3) Qualified academic major or program.--
``(A) In general.--The term `qualified academic
major or program' means an academic major or program of
study designated by the Secretary for each State in an
annual notice in the Federal Register that--
``(i) prepares students in such majors or
programs for a career that--
``(I) is primarily related to
homeland security;
``(II) requires specialized
expertise; and
``(III) suffers from a critical
shortage of qualified personnel; and
``(ii) is a--
``(I) national priority, as
determined by the Secretary in
consultation with the Secretary of
Homeland Security; or
``(II) State priority, as
determined by the chief executive
officer in the State in which the
student seeking a scholarship under
this subpart--
``(aa) graduated from
secondary school; or
``(bb) is enrolled at an
institution of higher
education.
``(B) Continuation of qualification.--An academic
major or program of study designated by the Secretary
under subparagraph (A) shall continue to be considered
a qualified academic major or program for a student if
such academic major or program of study was a qualified
academic major or program at the time such student
commenced study of such major or program of study.
``(4) Qualified employer.--The term `qualified employer'
means--
``(A) a nonprofit organization; or
``(B) a public agency.
``(5) Qualified service.--
``(A) In general.--The term `qualified service'
means full-time employment with the qualified employer
of the eligible entity that awarded the eligible
student a scholarship or with another qualified employer (consistent
with the guidelines issued by the Secretary pursuant to subparagraph
(B)), for a period of 2 years for the first year of a scholarship award
and an additional 1 year for each additional year of a scholarship
award, in a position that--
``(i) is primarily related to homeland
security;
``(ii) requires specialized expertise
related to the qualified academic major or
program of the eligible student; and
``(iii) suffers from a critical lack of
qualified personnel.
``(B) Service with different employer.--The
Secretary shall issue guidelines describing when
employment may be completed with a qualified employer
who is not the qualified employer of the eligible
entity that awarded the eligible student a scholarship.
``SEC. 420M. GRANTS TO ELIGIBLE ENTITIES.
``(a) In General.--From funds appropriated under section 420O, the
Secretary shall award grants, on a competitive basis, to eligible
entities to enable the entities to award scholarships to eligible
students in exchange for qualified service from such students.
``(b) Application.--An eligible entity that desires to receive a
grant under this subpart shall submit an application to the Secretary
at such time, in such manner, and containing such information as the
Secretary may require.
``(c) Use of Grant Funds.--
``(1) Scholarship awards.--An eligible entity that receives
a grant under this subpart shall award scholarships to eligible
students in exchange for qualified service from such students.
``(2) Application form.--An eligible entity that receives a
grant under this subpart shall create an application form for a
student desiring to receive a scholarship under this subpart,
and include in such form a summary of the rights and
liabilities of a student whose application is approved (and
whose contract is accepted) by the eligible entity.
``(3) Contract.--
``(A) In general.--An eligible entity that receives
a grant under this subpart shall prepare a written
contract that shall be provided to a student desiring
to receive a scholarship under this subpart at the time
that an application is provided to such student.
``(B) Content.--The contract described in
subparagraph (A) shall be an agreement between the
eligible entity and student that states that, subject
to subparagraph (C)--
``(i) the eligible entity agrees to provide
the student with a scholarship, that may be
renewed in each year of study at the
institution of higher education for a total of
not more than 4 years; and
``(ii) the student agrees to--
``(I)(aa) accept provision of such
a scholarship to the student;
``(bb) maintain enrollment in the
qualified academic major or program
until the student completes the course
of study at the institution of higher
education;
``(cc) while enrolled in such
qualified academic major or program,
maintain an acceptable level of
academic standing (as determined by the
institution of higher education); and
``(dd) provide qualified service;
and
``(II) repay the scholarship under
the terms of this subpart if the
student fails to comply with the
requirements of subclause (I).
``(C) Limitation.--The contract described in
subparagraph (A) shall contain a provision that any
financial obligation of the United States arising out
of a contract entered into under this subpart and any
obligation of the student which is conditioned thereon,
is contingent upon funds being appropriated for
scholarships under this subpart.
``(4) Information on scholarship recipients.--An eligible
entity that receives a grant under this subpart shall submit a
report to the Secretary at the time a scholarship award is
provided to an eligible student identifying--
``(A) such student's name, date of birth, and
social security number; and
``(B) the amount of such scholarship.
``(d) Matching Funds.--An eligible entity receiving Federal
assistance under this subpart shall contribute non-Federal matching
funds in an amount equal to 50 percent of the amount of Federal
assistance.
``(e) Duration of Grant.--Grants awarded under this subpart shall
be for a term of 5 years.
``SEC. 420N. SCHOLARSHIPS.
``(a) Submission of Application and Written Contract.--A student
that desires to receive a scholarship under this subpart shall submit
an application and written contract to an eligible entity at such time,
in such manner, and containing such information as the eligible entity
may require.
``(b) Payment.--
``(1) In general.--Subject to paragraph (2), a scholarship
provided to an eligible student under this subpart for a school
year shall consist of payment to, or (in accordance with
paragraph (3)) on behalf of, the eligible student of the amount
of the tuition and fees, described in section 472(1), of the
eligible student in such school year.
``(2) Maximum scholarship amount.--A scholarship awarded
under this subpart during fiscal year 2004 shall not exceed
$10,000. The Secretary shall determine the maximum scholarship
amount for each succeeding fiscal year after adjusting for
inflation.
``(3) Contract.--The Secretary may contract with an
institution of higher education, in which an eligible student
is enrolled, for the payment to the institution of higher
education of the amounts of tuition and fees described in
paragraph (1).
``(c) Verification of Qualified Service.--
``(1) Documentation.----
``(A) From eligible student.--An eligible student
that receives a scholarship under this subpart shall
submit documentation to the eligible entity that
awarded the student the scholarship, under standards
and procedures determined by the eligible entity,
verifying that the student has completed such student's
qualified service.
``(B) From eligible entity.--An eligible entity
that receives a grant under this subpart shall submit
documentation to the Secretary by a date specified by
the Secretary and under standards and procedures
determined by the Secretary, verifying that each
eligible student awarded a scholarship under this
subpart has completed such student's qualified service.
``(2) Role of secretary.--If the Secretary does not receive
satisfactory documentation under paragraph (1)(B) by the date
specified by the Secretary, then the Secretary shall collect
the scholarship amount determined under paragraph (3) as a loan
under the terms and conditions for repayment of loans under
part B (including provisions under such part that provide for
loan repayment over time).
``(3) Breach of agreement.--Subject to paragraph (4), if an
eligible student receives a scholarship under this subpart and
agrees to provide qualified service in consideration for
receipt of the scholarship, the eligible student is liable to
the Federal Government for the amount of such award, for
interest on such amount at the rate applicable at the time of
noncompliance for Stafford loans under section 427A, and for
reasonable collections costs, if the eligible student fails to
submit the documentation required under paragraph (1)(A).
``(4) Waiver or suspension of liability.--The Secretary
shall waive liability under paragraph (3) if--
``(A) the student subsequently demonstrates that
such student has provided qualified service;
``(B) the student suffers death or permanent and
total disability;
``(C) the student is unable to complete the program
in which such student was enrolled due to the closure
of the institution of higher education; or
``(D) the Secretary determines that compliance by
the student with the agreement involved is impossible
or would involve extreme hardship to such student.
``(5) Amounts to remain available.--Any amounts collected
by the Secretary under this subsection shall remain available
for grant awards under this subpart.
``(d) Tax-Free.--The amount of any scholarship that is received
under this subpart shall not, consistent with section 108(f) of the
Internal Revenue Code of 1986, be treated as gross income for Federal
income tax purposes.
``SEC. 420O. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
subpart--
``(1) $50,000,000 for fiscal year 2004;
``(2) $100,000,000 for fiscal year 2005;
``(3) $150,000,000 for fiscal year 2006; and
``(4) such sums as may be necessary for each of fiscal
years 2007 and 2008.''.
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