PROGRAM PARTICIPATION AGREEMENTS.

SEC. 489. PROGRAM PARTICIPATION AGREEMENTS. (a) Required Content.— Section 487(a) (20 U.S.C. 1094(a)) is amended— (1) in paragraph (3)— (A) by striking subparagraph (B); and (B) by redesignating subparagraphs (C) and (D) as subparagraphs (B) and (C), respectively; (2) in paragraph (4), by striking “subsection (b)” and inserting “subsection (c)”; (3) in paragraph (9), by striking “part B” and inserting “part B or D”; (4) in paragraph (14)— (A) in subparagraph (A), by striking “part B” and inserting “part B or D”; and (B) in subparagraph (B), by striking “part B” and inserting “part B or D”; and (C) by adding at the end the following: “(C) This paragraph shall not apply in the case of an institution in which (i) neither the parent nor the subordinate institution has a cohort default rate in excess of 10 percent, and (ii) the new owner of such parent or subordinate institution does not, and has not, owned any other institution with a cohort default rate in excess of 10 percent.”; (5) in paragraph (15), by striking “State review entities” and inserting “the State agencies”; (6) by amending paragraph (18) to read as follows: “(18) The institution will meet the requirements established pursuant to section 485(g).”; and (7) by amending paragraph (21) to read as follows: “(21) The institution will meet the requirements established by the Secretary and accrediting agencies or associations, and will provide evidence to the Secretary that the institution has the authority to operate within a State.”. (b) Provision of Voter Registration Forms.— (1) Program participation requirement.— Section 487(a) (20 U.S.C. 1094(a)) is amended by adding at the end the following: “(23) (A) The institution, if located in a State to which section 4(b) of the National Voter Registration Act (42 U.S.C. 1973gg-2(b)) does not apply, will make a good faith effort to distribute a mail voter registration form, requested and 112 STAT. 1751received from the State, to each student enrolled in a degree or certificate program and physically in attendance at the institution, and to make such forms widely available to students at the institution. “(B) The institution shall request the forms from the State 120 days prior to the deadline for registering to vote within the State. If an institution has not received a sufficient quantity of forms to fulfill this section from the State within 60 days prior to the deadline for registering to vote in the State, the institution shall not be held liable for not meeting the requirements of this section during that election year. “(C) This paragraph shall apply to elections as defined in section 301(1) of the Federal Election Campaign Act of 1971 (2 U.S.C. 431(1)), and includes the election for Governor or other chief executive within such State).”. (2) Regulation prohibited.— No officer of the executive branch is authorized to instruct the institution in the manner in which the amendment made by this subsection is carried out. (c) Audits; Financial Responsibility.— Section 487(c) is amended— (1) in paragraph (1)(A)— (A) in clause (i)— (i) by striking “clause (ii)” and inserting “clauses(ii) and (iii)”; (ii) by striking “State review entities referred to in” and inserting “appropriate State agency notifying the Secretary under”; and (iii) by striking “or” after the semicolon; (B) in clause (ii), by inserting “or” after the semicolon; and (C) by adding at the end the following: “(iii) at the discretion of the Secretary, with regard to an eligible institution (other than an eligible institution described in section 102(a)(1)(C)) that has obtained less than $200,000 in funds under this title during each of the 2 award years that precede the audit period and submits a letter of credit payable to the Secretary equal to not less than ½ of the annual potential liabilities of such institution as determined by the Secretary, deeming an audit conducted every 3 years to satisfy the requirements of clause (i), except for the award year immediately preceding renewal of the institution’s eligibility under section 498(g);“; (2) in paragraph (4), by striking “, after consultation with each State review entity designated under subpart 1 of part H,”; and (3) in paragraph (5), by striking “State review entities designated” and inserting “State agencies notifying the Secretary”.