20 U.S.C. § 4357 — Federal endowment programs for Gal-

Page 1232 TITLE 20—EDUCATION § 4356 1998—Subsec. (c). Pub. L. 105–244 substituted ‘‘1998 through 2003’’ for ‘‘1993, 1994, 1995, 1996, and 1997’’. 1993—Subsec. (a). Pub. L. 103–73 substituted ‘‘individ- uals who are deaf or hard of hearing’’ for ‘‘individuals who are deaf’’ and struck out ‘‘the provisions of’’ after ‘‘pursuant to’’. 1992—Pub. L. 102–421, § 135(a), amended section gen- erally. Prior to amendment, section read as follows: ‘‘The Secretary shall conduct monitoring and evalua- tion activities of the education programs and activities and the administrative operations of Gallaudet Univer- sity and of the National Technical Institute for the Deaf. In carrying out the responsibilities described in this section, the Secretary is authorized to employ such consultants as may be necessary pursuant to the provisions of section 3109 of title 5.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see sec- tion 3 of Pub. L. 105–244, set out as a note under section 1001 of this title. EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–421 effective Oct. 1, 1992, see section 161 of Pub. L. 102–421, set out as a note under section 4301 of this title. § 4356. Liaison for educational programs (a) Designation of liaison The Secretary shall designate an individual in the Office of Special Education and Rehabilita- tive Services of the Department of Education from among individuals who have experience in the education of individuals who are deaf to serve as liaison between the Department and Gallaudet University, the National Technical Institute for the Deaf, and other postsecondary educational programs for individuals who are deaf under the Individuals with Disabilities Edu- cation Act [20 U.S.C. 1400 et seq.], the Rehabili- tation Act of 1973 [29 U.S.C. 701 et seq.], and other Federal or non-Federal agencies, institu- tions, or organizations involved with the edu- cation or rehabilitation of individuals who are deaf or hard of hearing. (b) Duties of liaison The individual serving as liaison for edu- cational programs for individuals who are deaf or hard of hearing shall: (1) provide information to institutions re- garding the Department’s efforts directly af- fecting the operation of such programs by such institutions; (2) review research and other activities car- ried out by the University, NTID, and other Federal or non-Federal agencies, institutions, or organizations involved with the education or rehabilitation of individuals who are deaf or hard of hearing for the purpose of determining overlap and opportunities for coordination among such entities; and (3) provide such support and assistance as such institutions may request and the Sec- retary considers appropriate. (c) Authority of Secretary Nothing in this section may be construed to affect the authority of the Secretary under this chapter or any other Act with respect to Gal- laudet University or the National Technical In- stitute for the Deaf. (Pub. L. 99–371, title II, § 206, formerly title IV, § 406, Aug. 4, 1986, 100 Stat. 790; Pub. L. 101–476, title IX, § 901(a)(2), Oct. 30, 1990, 104 Stat. 1142; renumbered title II, § 206, and amended Pub. L. 102–421, title I, §§ 101(b)(5), (6), 136, 151(a)(4), (5), Oct. 16, 1992, 106 Stat. 2151, 2159, 2164; Pub. L. 103–73, title II, § 204(e), Aug. 11, 1993, 107 Stat. 735; Pub. L. 110–315, title IX, § 908, Aug. 14, 2008, 122 Stat. 3453.) Editorial Notes REFERENCES IN TEXT The Individuals with Disabilities Education Act, re- ferred to in subsec. (a), is title VI of Pub. L. 91–230, Apr. 13, 1970, 84 Stat. 175, which is classified generally to chapter 33 (§ 1400 et seq.) of this title. For complete classification of this Act to the Code, see section 1400 of this title and Tables. The Rehabilitation Act of 1973, referred to in subsec. (a), is Pub. L. 93–112, Sept. 26, 1973, 87 Stat. 355, which is classified generally to chapter 16 (§ 701 et seq.) of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under section 701 of Title 29 and Tables. AMENDMENTS 2008—Subsec. (a). Pub. L. 110–315 substituted ‘‘The’’ for ‘‘Not later than 30 days after August 4, 1986, the’’. 1993—Subsec. (b). Pub. L. 103–73, which directed amendment of subsec. (b) by inserting ‘‘or hard of hear- ing’’ after ‘‘individuals who are deaf’’, was executed by making the insertion in introductory provisions but not in par. (2) to reflect the probable intent of Con- gress. 1992—Pub. L. 102–421, § 151(a)(5), struck out ‘‘for the deaf’’ after ‘‘educational programs’’ in section catch- line. Subsec. (a). Pub. L. 102–421, § 151(a)(4), substituted ‘‘individuals who are deaf’’ for ‘‘the deaf’’ in two places. Pub. L. 102–421, § 136(1), substituted ‘‘, the Rehabilita- tion Act of 1973, and other Federal or non-Federal agen- cies, institutions, or organizations involved with the education or rehabilitation of individuals who are deaf or hard of hearing.’’ for ‘‘and the Rehabilitation Act of 1973.’’ Subsec. (b). Pub. L. 102–421, § 151(a)(4), substituted ‘‘individuals who are deaf’’ for ‘‘the deaf’’ in introduc- tory provisions. Subsec. (b)(1) to (3). Pub. L. 102–421, § 136(2), struck out ‘‘and’’ at end of par. (1), added par. (2), and redesig- nated former par. (2) as (3). 1990—Subsec. (a). Pub. L. 101–476 substituted ‘‘Individ- uals with Disabilities Education Act’’ for ‘‘Education of the Handicapped Act’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–421 effective Oct. 1, 1992, see section 161 of Pub. L. 102–421, set out as a note under section 4301 of this title. EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101–476 effective Oct. 1, 1990, see section 1001 of Pub. L. 101–476, set out as a note under section 1087ee of this title. § 4357. Federal endowment programs for Gal- laudet University and the National Technical Institute for the Deaf (a) Establishment of programs (1) The Secretary and the Board of Trustees of Gallaudet University are authorized to establish the Gallaudet University Federal Endowment Page 1233 TITLE 20—EDUCATION § 4357 1 So in original. Probably should be ‘‘hypothecate,’’ Fund as a permanent endowment fund, in ac- cordance with this section, for the purpose of promoting the financial independence of the University. The Secretary and the Board of Trustees may enter into such agreements as may be necessary to carry out the purposes of this section with respect to the University. (2) The Secretary and the Board of Trustees or other governing body of the institution of high- er education with which the Secretary has an agreement under section 4332 of this title are au- thorized to establish the National Technical In- stitute for the Deaf Federal Endowment Fund as a permanent endowment fund, in accordance with this section, for the purpose of promoting the financial independence of NTID. The Sec- retary and the Board or other governing body may enter into such agreements as may be nec- essary to carry out the purposes of this section with respect to NTID. (b) Federal payments (1) The Secretary shall, consistent with this section, make payments to the Federal endow- ment funds established under subsection (a) from amounts appropriated under subsection (h) for the fund involved. (2) Subject to the availability of appropria- tions, the Secretary shall make payments to each Federal endowment fund in amounts equal to sums contributed to the fund from non-Fed- eral sources during the fiscal year in which the appropriations are made available (excluding transfers from other endowment funds of the in- stitution involved). (c) Investments (1) Except as provided in subsection (e), the University and NTID, respectively, shall invest the Federal contribution of its Federal endow- ment fund corpus and income in instruments and securities offered through one or more coop- erative service organizations of operating edu- cational organizations under section 501(f) of title 26, or in low-risk instruments and securi- ties in which a regulated insurance company may invest under the laws of the State in which the institution involved is located. (2) In managing the investment of its Federal endowment fund, the University or NTID shall exercise the judgment and care, under the pre- vailing circumstances, that a person of pru- dence, discretion, and intelligence would exer- cise in the management of that person’s own business affairs. (3) Neither the University nor NTID may in- vest its Federal endowment fund corpus or in- come in real estate, or in instruments or securi- ties issued by an organization in which an exec- utive officer, a member of the Board of Trustees of the University or of the host institution, or a member of the advisory group established under section 4332 of this title is a controlling share- holder, director, or owner within the meaning of Federal securities laws and other applicable laws. Neither the University nor NTID may as- sign, hypothocate,1 encumber, or create a lien on the Federal endowment fund corpus without specific written authorization of the Secretary. (d) Withdrawals and expenditures (1) Except as provided in paragraph (3)(B), nei- ther the University nor NTID may withdraw or expend any of the corpus of its Federal endow- ment fund. (2)(A) The University and NTID, respectively, may withdraw or expend the income of its Fed- eral endowment fund only for expenses nec- essary to the operation of that institution, in- cluding expenses of operations and maintenance, administration, academic and support per- sonnel, construction and renovation, commu- nity and student services programs, technical assistance, and research. (B) Neither the University nor NTID may withdraw or expend the income of its Federal endowment fund for any commercial purpose. (C) The University and NTID shall maintain records of the income generated from its respec- tive Federal endowment fund for the prior fiscal year. (3)(A) Except as provided in subparagraph (B), the University and NTID, respectively, may, on an annual basis, withdraw or expend not more than 50 percent of the income generated from its Federal endowment fund from the current fiscal year. (B) The Secretary may permit the University or NTID to withdraw or expend a portion of its Federal endowment fund corpus or more than 50 percent of the income generated from its Fed- eral endowment fund from the prior fiscal year if the institution involved demonstrates, to the Secretary’s satisfaction, that such withdrawal or expenditure is necessary because of— (i) a financial emergency, such as a pending insolvency or temporary liquidity problem; (ii) a life-threatening situation occasioned by natural disaster or arson; or (iii) another unusual occurrence or exigent circumstance. (e) Investment and expenditure flexibility The corpus associated with a Federal payment (and its non-Federal match) made to the Federal endowment fund of the University or NTID shall not be subject to the investment limitations of subsection (c)(1) after 10 fiscal years following the fiscal year in which the funds are matched, and the income generated from such corpus after the tenth fiscal year described in this sub- section shall not be subject to such investment limitations or to the withdrawal and expendi- ture limitations of subsection (d)(3). (f) Recovery of payments After notice and an opportunity for a hearing, the Secretary is authorized to recover any Fed- eral payments under this section if the Univer- sity or NTID— (1) makes a withdrawal or expenditure of the corpus or income of its Federal endowment fund that is not consistent with this section; (2) fails to comply with the investment standards and limitations under this section; or (3) fails to account properly to the Secretary concerning the investment of or expenditures from the Federal endowment fund corpus or income. (g) Definitions As used in this section: Page 1234 TITLE 20—EDUCATION § 4358 (1) The term ‘‘corpus’’, with respect to a Federal endowment fund under this section, means an amount equal to the Federal pay- ments to such fund, amounts contributed to the fund from non-Federal sources, and appre- ciation from capital gains and reinvestment of income. (2) The term ‘‘Federal endowment fund’’ means a fund, or a tax-exempt foundation, es- tablished and maintained pursuant to this sec- tion by the University or NTID, as the case may be, for the purpose of generating income for the support of the institution involved. (3) The term ‘‘income’’, with respect to a Federal endowment fund under this section, means an amount equal to the dividends and interest accruing from investments of the cor- pus of such fund. (4) The term ‘‘institution involved’’ means the University or NTID, as the case may be. (h) Authorization of appropriations (1) In the case of the University, there are au- thorized to be appropriated for the purposes of this section such sums as may be necessary for each of the fiscal years 2009 through 2014. (2) In the case of NTID, there are authorized to be appropriated for the purposes of this section such sums as may be necessary for each of the fiscal years 2009 through 2014. (3) Amounts appropriated under paragraph (1) or (2) shall remain available until expended. (i) Effective date The provisions of this section shall take effect as if included in this chapter as enacted on Au- gust 4, 1986. (Pub. L. 99–371, title II, § 207, as added Pub. L. 102–421, title I, § 137(2), Oct. 16, 1992, 106 Stat. 2159; amended Pub. L. 103–73, title II, § 204(f), Aug. 11, 1993, 107 Stat. 735; Pub. L. 105–244, title IX, § 919, Oct. 7, 1998, 112 Stat. 1831; Pub. L. 110–315, title IX, § 909, Aug. 14, 2008, 122 Stat. 3453.) Editorial Notes PRIOR PROVISIONS A prior section 4357, Pub. L. 99–371, title II, § 207, for- merly title IV, § 407, Aug. 4, 1986, 100 Stat. 791; renum- bered title II, § 207, Pub. L. 102–421, title I, § 101(b)(5), (6), Oct. 16, 1992, 106 Stat. 2151, provided for Gallaudet Uni- versity Federal endowment program, prior to repeal ef- fective Oct. 1, 1992, by Pub. L. 102–421, title I, §§ 137(1), 161, Oct. 16, 1992, 106 Stat. 2159, 2164. AMENDMENTS 2008—Subsec. (h)(1), (2). Pub. L. 110–315 substituted ‘‘fiscal years 2009 through 2014’’ for ‘‘fiscal years 1998 through 2003’’. 1998—Subsec. (b)(2). Pub. L. 105–244, § 919(1)(A), amend- ed par. (2) generally. Prior to amendment, par. (2) read as follows: ‘‘Subject to the availability of appropria- tions and the non-Federal matching requirements of paragraph (3), the Secretary shall make payments to each Federal endowment fund in amounts equal to sums contributed to the fund from non-Federal sources (excluding transfers from other endowment funds of the institution involved).’’ Subsec. (b)(3). Pub. L. 105–244, § 919(1)(B), struck out par. (3) which read as follows: ‘‘Effective for fiscal year 1993 and each succeeding fiscal year, for any fiscal year in which the sums contributed to the Federal endow- ment fund of the institution involved from non-Federal sources exceed $1,000,000, the non-Federal contribution to the Federal endowment fund shall be $2 for each Fed- eral dollar provided in excess of $1,000,000 (excluding transfers from other endowment funds of the institu- tion involved).’’ Subsec. (c)(1). Pub. L. 105–244, § 919(2), inserted ‘‘the Federal contribution of’’ after ‘‘shall invest’’. Subsec. (d)(2)(C). Pub. L. 105–244, § 919(3)(A), sub- stituted ‘‘The University’’ for ‘‘Beginning on October 1, 1992, the University’’. Subsec. (d)(3)(A). Pub. L. 105–244, § 919(3)(B), sub- stituted ‘‘current’’ for ‘‘prior’’. Subsec. (h)(1), (2). Pub. L. 105–244, § 919(4), substituted ‘‘1998 through 2003’’ for ‘‘1993 through 1997’’. 1993—Subsec. (c)(3). Pub. L. 103–73, § 204(f)(1), sub- stituted ‘‘advisory group established under section 4332 of this title’’ for ‘‘Advisory Board of NTID’’. Subsec. (e). Pub. L. 103–73, § 204(f)(2), substituted ‘‘such investment limitations or’’ for ‘‘such investment limitations and’’. Subsec. (i). Pub. L. 103–73, § 204(f)(3), substituted ‘‘this chapter as enacted on August 4, 1986’’ for ‘‘the provi- sions of the Education of the Deaf Act of 1986’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see sec- tion 3 of Pub. L. 105–244, set out as a note under section 1001 of this title. § 4358. Repealed. Pub. L. 105–244, title IX, § 920, Oct. 7, 1998, 112 Stat. 1831 Section, Pub. L. 99–371, title II, § 208, as added Pub. L. 102–421, title I, § 138, Oct. 16, 1992, 106 Stat. 2162, related to scholarship program for deaf education or special education careers. A prior section 4358, Pub. L. 99–371, title II, § 208, for- merly title IV, § 408, Aug. 4, 1986, 100 Stat. 792; renum- bered title II, § 208, Pub. L. 102–421, title I, § 101(b)(5), (6), Oct. 16, 1992, 106 Stat. 2151, provided for a National Technical Institute for the Deaf endowment program, prior to repeal effective Oct. 1, 1992, by Pub. L. 102–421, title I, §§ 137(1), 161, Oct. 16, 1992, 106 Stat. 2159, 2164. See section 4357 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective Oct. 1, 1998, except as otherwise pro- vided in Pub. L. 105–244, see section 3 of Pub. L. 105–244, set out as an Effective Date of 1998 Amendment note under section 1001 of this title. § 4359. Oversight and effect of agreements (a) Oversight activities Nothing in this chapter shall be construed to diminish the oversight activities of the Com- mittee on Education and Labor of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate with respect to any agreement entered into be- tween the Secretary of Education and Gallaudet University, and the institution of higher edu- cation with which the Secretary has an agree- ment under part B of subchapter I. (b) Construction of agreements The agreements described in subsection (a) of this section shall continue in effect, to the ex- tent that such agreements are not inconsistent with this chapter. (Pub. L. 99–371, title II, § 208, formerly title IV, § 409, Aug. 4, 1986, 100 Stat. 794; renumbered title