COOPERATIVE EDUCATION.

SEC. 801. COOPERATIVE EDUCATION. Title VIII of the Act (20 U.S.C. 1133 et seq.) is amended to read as follows: “TITLE VIII— COOPERATIVE EDUCATION “SEC. 801. STATEMENT OF PURPOSE; DEFINITION. “(a) Purpose.— It is the purpose of this title to award grants to institutions of higher education or combinations of such institutions to encourage such institutions to develop and make available to as many of their students as possible work experience that will aid such students in future careers and will enable such students to support themselves financially while in school. “(b) Definition.— For the purpose of this title the term ‘cooperative education’ means the provision of alternating or parallel periods of academic study and public or private employment in order to give students work experiences related to their academic or occupational objectives and an opportunity to earn the funds necessary for continuing and completing their education. “SEC. 802. AUTHORIZATION OF APPROPRIATIONS; RESERVATIONS. “(a) Appropriations Authorized.— There are authorized to be appropriated to carry out this title $30,000,000 for fiscal year 1993 and such sums as may be necessary for each of the 4 succeeding fiscal years. “(b) Reservations.— Of the amounts appropriated in each fiscal year— “(1) not less than 50 percent shall be available for carrying out grants to institutions of higher education and combinations of such institutions described in section 803(a)(1)(A) for cooperative education under section 803; 106 STAT. 756 “(2) not less than 25 percent shall be available for carrying out grants to institutions of higher education described in section 803(a)(1)(B) for cooperative education under section 803; “(3) not to exceed 11 percent shall be available for demonstration projects under paragraph (1) of section 804(a); “(4) not to exceed 11 percent shall be available for training and resource centers under paragraph (2) of section 804(a); and “(5) not to exceed 3 percent shall be available for research under paragraph (3) of section 804(a). “(c) Availability of Appropriations.— Appropriations under this title shall not be available for the payment of compensation of students for employment by employers under arrangements pursuant to this title. “SEC. 803. GRANTS FOR COOPERATIVE EDUCATION. “(a) Grants Authorized.— “(1) In general.— The Secretary is authorized— “(A) from the amount available under section 802(b)(1) in each fiscal year and in accordance with the provisions of this title, to make grants to institutions of higher education or combinations of such institutions that have not received a grant under this paragraph in the 10-year period preceding the date for which a grant under this section is requested to pay the Federal share of the cost of planning, establishing, expanding, or carrying out programs of cooperative education by such institutions or combinations of institutions; and “(B) from the amount available under section 802(b)(2) in each fiscal year and in accordance with the provisions of this title, to make grants to institutions of higher education that are operating an existing cooperative education program as determined by the Secretary to pay the cost of planning, establishing, expanding, or carrying out programs of cooperative education by such institutions. “(2) Program requirement.— Cooperative education programs assisted under this section shall provide alternating or parallel periods of academic study and of public or private employment, giving students work experience related to their academic or occupational objectives and the opportunity to earn the funds necessary for continuing and completing their education. “(3) Amount of grants.— (A) The amount of each grant awarded pursuant to paragraph (1)(A) to any institution of higher education or combination of such institutions in any fiscal year shall not exceed $500,000. “(B) (i) Except as provided in clauses (ii) and (iii), the Secretary shall award grants in each fiscal year to each institution of higher education described in paragraph (1)(B) that has an application approved under subsection (b) in an amount which bears the same ratio to the amount reserved pursuant to section 802(b)(2) for such fiscal year as the number of unduplicated students placed in cooperative education jobs during the preceding fiscal year (other than cooperative education jobs under section 804 and as determined by the Secretary) by such institution of higher education bears to the total num-106 STAT. 757ber of all such students placed in such jobs during the preceding fiscal year by all such institutions. “(ii) No institution of higher education shall receive a grant pursuant to paragraph (1)(B) in any fiscal year in an amount which exceeds 25 percent of such institution’s cooperative education program’s personnel and operating budget for the preceding fiscal year. “(iii) The minimum annual grant amount which an institution of higher education is eligible to receive under paragraph (1)(B) is $1,000 and the maximum annual grant amount is $75,000. “(4) Limitation.— The Secretary shall not award grants pursuant to paragraphs (1)(A) and (1)(B) to the same institution of higher education or combination of such institution in any one fiscal year. “(5) Uses.— Grants under paragraph (1)(B) shall be used exclusively— “(A) to expand the quality and participation of a cooperative education program; “(B) for outreach in new curricular areas; and “(C) for outreach to potential participants including underrepresented and nontraditional populations. “(b) Applications.— Each institution of higher education or combination of such institutions desiring to receive a grant under this section shall submit an application to the Secretary at such time and in such manner as the Secretary shall prescribe. Each such application shall— “(1) set forth the program or activities for which a grant is authorized under this section; “(2) specify each portion of such program or activities which will be performed by a nonprofit organization or institution other than the applicant and the compensation to be paid for such performance; “(3) provide that the applicant will expend during such fiscal year for the purpose of such program or activities not less than the amount expended for such purpose during the previous fiscal year; “(4) describe the plans which the applicant will carry out to assure, and contain a formal statement of the institution’s commitment which assures, that the applicant will continue the cooperative education program beyond the 5-year period of Federal assistance described in subsection (c)(1) at a level which is not less than the total amount expended for such program during the first year such program was assisted under this section; “(5) provide that, in the case of an institution of higher education that provides a 2-year program which is acceptable for full credit toward a bachelor’s degree, the cooperative education program will be available to students who are certificate or associate degree candidates and who carry at least one-half the normal full-time academic workload; “(6) provide that the applicant will— “(A) make such reports as may be essential to ensure that the applicant is complying with the provisions of this section, including the reports for the second and each succeeding fiscal year for which the applicant receives a grant data with respect to the impact of the cooperative education program in the previous fiscal year, including— 106 STAT. 758 “(i) the number of unduplicated student applicants in the cooperative education program; “(ii) the number of unduplicated students placed in cooperative education jobs; “(iii) the number of employers who have hired cooperative education students; “(iv) the income for students derived from working in cooperative education jobs; and “(v) the increase or decrease in the number of unduplicated students placed in cooperative education jobs in each fiscal year compared to the previous fiscal year; and “(B) keep such records as are essential to ensure that the applicant is complying with the provisions of this title, including the notation of cooperative education employment on the student’s transcript; “(7) describe the extent to which programs in the academic discipline for which the application is made have had a favorable reception by public and private sector employers; “(8) describe the extent to which the institution is committed to extending cooperative education on an institution-wide basis for all students who can benefit; “(9) describe the plans that the applicant will carry out to evaluate the applicant’s cooperative education program at the end of the grant period; “(10) provide 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 this title; “(11) demonstrate a commitment to serving special populations such as women, individuals with disabilities, and African American, Mexican-American, Puerto Rican, Cuban, other Hispanic, American Indian, Alaska Native, Aleut, Native Hawaiian, American Samoan, Micronesian, Guamanian (Chamorro), and Northern Marianian students; and “(12) include such other information as is essential to carry out the provisions of this title. “(c) Duration of Grants; Federal Share.— “(1) Duration of grants.— No individual institution of higher education may receive, individually or as a participant in a combination of such institutions— “(A) a grant pursuant to subsection (a)(1)(A) for more than 5 fiscal years; or “(B) a grant pursuant to subsection (a)(1)(B) for more than 5 fiscal years. “(2) Federal share.— The Federal share of a grant under section 803(a)(1)(A) may not exceed— “(A) 85 percent of the cost of carrying out the program or activities described in the application in the first year the applicant receives a grant under this section; “(B) 70 percent of such cost in the second such year; “(C) 55 percent of such cost in the third such year; “(D) 40 percent of such cost in the fourth such year; and “(E) 25 percent of such cost in the fifth such year. 106 STAT. 759 “(3) Special rule.— Any provision of law to the contrary notwithstanding, the Secretary shall not waive the provisions of this subsection. “(d) Maintenance of Effort.— If the Secretary determines that a recipient of funds under this section has failed to maintain the fiscal effort described in subsection (b)(3), then the Secretary may elect not to make grant payments under this section to such recipient. “(e) Factors for Special Consideration of Applications.— “(1) In general.— In approving applications under this section, the Secretary shall give special consideration to applications from institutions of higher education or combinations of such institutions for programs which show the greatest promise of success because of— “(A) the extent to which programs in the academic discipline with respect to which the application is made have had a favorable reception by public and private sector employers; “(B) the strength of the commitment of the institution of higher education or combination of such institutions to cooperative education as demonstrated by the plans and formalized institutional commitment statement which such institution or combination has made to continue the program after the termination of Federal financial assistance, “(C) the extent to which the institution or combination is committed to extending cooperative education for all students who can benefit, and “(D) such other factors as are consistent with the purposes of this section. “(2) Additional special consideration.— The Secretary shall also give special consideration to applications from institutions of higher education or combinations of such institutions which demonstrate a commitment to serving special populations such as women, individuals with disabilities, and African American, Mexican American, Puerto Rican, Cuban, other Hispanic, American Indian, Alaska Native, Aleut, Native Hawaiian, American Samoan, Micronesian, Guamanian (Chamorro), and Northern Mariana students. “SEC. 804. DEMONSTRATION AND INNOVATION PROJECTS; TRAINING AND RESOURCE CENTERS; AND RESEARCH. “(a) Authorization.— The Secretary is authorized, in accordance with the provisions of this section, to make grants and enter into contracts for— “(1) the conduct of demonstration projects designed to demonstrate or determine the feasibility or value of innovative methods of cooperative education from the amounts available in each fiscal year under section 802(b)(3); “(2) the conduct of training and resource centers designed to— “(A) train personnel in the field of cooperative education; “(B) improve materials used in cooperative education programs if such improvement is conducted in conjunction with other activities described in this paragraph; “(C) furnish technical assistance to institutions of higher education to increase the potential of the institution to 106 STAT. 760continue to conduct a cooperative education program without Federal assistance; “(D) encourage model cooperative education programs which furnish education and training in occupations in which there is a national need; “(E) support partnerships under which an institution carrying out a comprehensive cooperative education program joins with one or more institutions of higher education in order to (i) assist the institution other than the comprehensive cooperative education institution to develop and expand an existing program of cooperative education, or (ii) establish and improve or expand comprehensive cooperative education programs; and “(F) encourage model cooperative education programs in the fields of science and mathematics for women and minorities who are underrepresented in such fields from the amounts available in each fiscal year under section 802(b)(4); and “(3) the conduct of research relating to cooperative education, from the amounts available in each fiscal year under section 802(b)(5). “(b) Administrative Provision.— “(1) In general.— To carry out this section, the Secretary may— “(A) make grants to or contracts with institutions of higher education, or combinations of such institutions; and “(B) make grants to or contracts with other public or private nonprofit agencies or organizations, whenever such grants or contracts will make an especially significant contribution to attaining the objectives of this section. “(2) Limitation.— (A) The Secretary may not use more than 3 percent of the amount appropriated to carry out this section in each fiscal year to enter into contracts described in paragraph (1)(A). “(B) The Secretary may use not more than 3 percent of the amount appropriated to carry out this section in each fiscal year to enter into contracts described in paragraph (1)(B). “(c) Supplement Not Supplant.— A recipient of a grant or contract under this section may use the funds provided only so as to supplement and, to the extent possible, increase the level of funds that would, in the absence of such funds, be made available from non-Federal sources to carry out the activities supported by such grant or contract, and in no case to supplant such funds from non-Federal sources.”.