S.Amdt. 2247

1. Adds SEC. __. POSTSECONDARY EDUCATION STABILIZATION BOARD at the end of title III

   Adds a section

   Inserted: SEC. __. POSTSECONDARY EDUCATION STABILIZATION BOARD.

   Inserted: (a) Appropriations.--

   Inserted: (1) In general.--Notwithstanding any other provision of law, of the amounts made available to the Department of Homeland Security under the heading "Disaster Relief" under the heading "Emergency Preparedness and Response" of Public Law 109-62 (119 Stat. 1991), not less than $5,000,000,000 shall be available to the Postsecondary Education Stabilization Board, established under this section, to establish an Education Relief Fund for the compensation of postsecondary educational institutions for direct and associated losses due to the impact of Hurricane Katrina or Rita and for recovery initiatives.

   Inserted: (2) Amounts available until expended.--The amounts appropriated under paragraph (1) shall remain available until expended.

   Inserted: (b) Postsecondary Educational Institution.--In this section, the term "postsecondary educational institution" means--

   Inserted: (1) a public postsecondary institution;

   Inserted: (2) a private nonprofit postsecondary institution, which is accredited by the appropriate State entity; or

   Inserted: (3) a private for profit postsecondary institution determined by the Postsecondary Education Stabilization Board to be eligible for assistance under this section.

   Inserted: (c) Postsecondary Education Stabilization Board.--

   Inserted: (1) Establishment.--There is established a Postsecondary Education Stabilization Board composed of the Secretary of Education (or a designee of the Secretary of Education), and the Secretary of the Treasury (or a designee of the Secretary of the Treasury).

   Inserted: (2) Duties.--The Postsecondary Education Stabilization Board shall--

   Inserted: (A) establish an Education Relief Fund that includes funds appropriated under this section;

   Show 24 more inserted paragraphsShow less

   Inserted: (B) from such Education Relief Fund provide funds to postsecondary educational institutions for direct or indirect losses resulting from the impact of Hurricane Katrina or Rita, and recovery initiatives of such institutions;

   Inserted: (C) give preference to postsecondary educational institutions that demonstrate to the Postsecondary Education Stabilization Board the greatest need based on the institution's direct or indirect losses; and

   Inserted: (D) give consideration to the overall economic and physical impact of the disaster on the State in which the postsecondary educational institution is based.

   Inserted: (d) Use of Assistance.--Assistance received by a postsecondary educational institution pursuant to this section may be used for--

   Inserted: (1) direct and indirect construction costs and clean-up costs resulting from Hurricane Katrina or Rita;

   Inserted: (2) faculty salaries and incentives for retaining faculty;

   Inserted: (3) educational programs relevant to the recovery effort;

   Inserted: (4) institutional initiatives designed for economic and community revitalization and recovery;

   Inserted: (5) faculty recruitment costs;

   Inserted: (6) costs of lost tuition, revenue, and enrollment; and

   Inserted: (7) debt relief.

   Inserted: (e) Requirements for Assistance Due to Losses.--A postsecondary educational institution that desires to receive assistance under this section shall--

   Inserted: (1) submit a sworn financial statement and other appropriate data, documentation, or other evidence requested by the Postsecondary Education Stabilization Board, to the Postsecondary Education Stabilization Board that indicates that the institution incurred losses resulting from the impact of Hurricane Katrina or Rita and the monetary amount of such losses; and

   Inserted: (2) demonstrate that the institution attempted to minimize the costs of any losses by pursuing collateral source compensation from the Federal Emergency Management Agency, the Small Business Administration, and insurance prior to seeking assistance under this section.

   Inserted: (f) Audit.--The Secretary of Education and the Comptroller General of the United States may audit a statement submitted under subsection (e) and may request any information that the Secretary of Education and Comptroller General determine necessary to conduct such an audit.

   Inserted: (g) Reduction in Assistance.--In calculating assistance to a postsecondary educational institution under this section, the Postsecondary Education Stabilization Board shall calculate a figure that reduces from the monetary amount of losses incurred by such institution, only the amount of collateral source compensation the institution has received from insurance, the Federal Emergency Management Agency, and the Small Business Administration.

   Inserted: (h) Regulations.--Not later than 14 days after the date of enactment of this section, the Office of Management and Budget, in consultation with the Postsecondary Education Stabilization Board, shall issue regulations setting forth procedures for an application for assistance under this section and minimum requirements for receiving assistance under this section, including the following:

   Inserted: (1) Online forms to be used in submitting requests for assistance

   Inserted: (2) Information to be included in forms.

   Inserted: (3) Procedures to assist in filing and pursuing assistance.

   Inserted: (i) Tax Consequences.--

   Inserted: (1) Not income.--Any assistance received by a postsecondary educational institution under this section shall not be treated as income for the purposes of the Internal Revenue Code of 1986.

   Inserted: (2) Tax exempt.--Any Government bond issued to finance the construction of a public or private postsecondary educational institution shall be considered an exempt facility bond for purposes of the Internal Revenue Code of 1986 and shall not be subject to section 146 of such Code.

   Inserted: (j) Waivers.--The Secretary of Education may waive any requirements under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) that are rendered infeasible or unreasonable due to the impact of Hurricane Katrina or Rita, including due diligence requirements and reporting deadlines, for an institution of higher education, eligible lender, or other entity participating in a student assistance program under such title that is located in, or whose operations are directly affected by, an area in which the President has declared that a major disaster exists in accordance with section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170), related to Hurricane Katrina or Rita.

   Original wording

   At the end of title III (before the short title), add the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed