20 U.S.C. § 1066 — Findings

Page 303 TITLE 20—EDUCATION § 1066 § 331 and amended Pub. L. 102–325, title III, § 304(a)(3), (b), July 23, 1992, 106 Stat. 476; Pub. L. 103–208, § 2(a)(8), (10), (11), Dec. 20, 1993, 107 Stat. 2457, 2458; Pub. L. 105–244, title III, § 305, Oct. 7, 1998, 112 Stat. 1646; Pub. L. 110–315, title III, § 313, Aug. 14, 2008, 122 Stat. 3180.) Editorial Notes PRIOR PROVISIONS A prior section 331 of Pub. L. 89–329, title III, as added Pub. L. 99–498, title III, § 301(a), Oct. 17, 1986, 100 Stat. 1298, related to establishment of challenge grant pro- gram, was classified to section 1064 of this title prior to repeal by Pub. L. 102–325, § 304(a)(2). A prior section 1065, Pub. L. 89–329, title III, § 332, as added Pub. L. 96–374, title III, § 301, Oct. 3, 1980, 94 Stat. 1396, related to applications for challenge grants, prior to the general revision of this subchapter by Pub. L. 99–498. Another prior section 1065, Pub. L. 89–329, title IV, § 405, Nov. 8, 1965, 79 Stat. 1234; Pub. L. 90–575, title I, § 101(b)(2), Oct. 16, 1968, 82 Stat. 1017, related to allot- ment and reallotment of funds among the States, prior to the general revision of part A of subchapter IV of this chapter by Pub. L. 92–318, title I, § 131(b)(1), June 23, 1972, 86 Stat. 247. A prior section 1065a, Pub. L. 89–329, title III, § 333, as added Pub. L. 98–95, § 2, Sept. 26, 1983, 97 Stat. 708, estab- lished program of matching grants to increase endow- ments at eligible institutions of higher education, prior to the general revision of this subchapter by Pub. L. 99–498. AMENDMENTS 2008—Subsec. (b)(2)(B)(i). Pub. L. 110–315, § 313(a)(1), substituted ‘‘$1,000,000’’ for ‘‘$500,000’’. Subsec. (b)(5). Pub. L. 110–315, § 313(a)(2), substituted ‘‘$100,000’’ for ‘‘$50,000’’. Subsec. (i). Pub. L. 110–315, § 313(b), added subsec. (i). 1998—Subsec. (b)(1). Pub. L. 105–244, § 305(1), sub- stituted ‘‘section 1068h’’ for ‘‘section 1069f’’. Subsec. (b)(2)(B), (C). Pub. L. 105–244, § 305(2), added subpars. (B) and (C) and struck out former subpars. (B) and (C) which authorized Secretary to make grants under this part to eligible institutions in amounts which varied depending on amount appropriated in each fiscal year to carry out this part and limited rights of institutions to reapply for grants when amount appropriated was below specified amounts. 1993—Subsecs. (a)(2)(D), (b)(2)(B), (C), (5). Pub. L. 103–208 realigned margins and in subsec. (b)(5) sub- stituted ‘‘An endowment’’ for ‘‘an endowment’’. 1992—Subsec. (a)(1). Pub. L. 102–325, § 304(b)(1)(A), struck out ‘‘of higher education’’ after ‘‘eligible insti- tutions’’. Subsec. (a)(2)(D). Pub. L. 102–325, § 304(b)(1)(B), added subpar. (D). Subsec. (b)(1). Pub. L. 102–325, § 304(b)(2), inserted ‘‘en- dowment’’ before ‘‘challenge grants’’ and struck out ‘‘of higher education’’ after ‘‘eligible institutions’’. Subsec. (b)(2)(B), (C). Pub. L. 102–325, § 304(b)(3), amended subpars. (B) and (C) generally. Prior to amendment, subpars. (B) and (C) read as follows: ‘‘(B) In any fiscal year in which the appropriations for this part exceeds $10,000,000, the Secretary may make a grant under this part to an eligible institution of higher education if such institution— ‘‘(i) has deposited in its endowment fund estab- lished under this section an amount which is equal to one-half of the amount of such grant; and ‘‘(ii) applies for a grant in an amount exceeding $1,000,000. ‘‘(C) An eligible institution of higher education that is awarded a grant under this section shall not be eligi- ble to reapply for a grant under this section during the 10 years immediately following the period that it re- ceived such grant.’’ Subsec. (b)(4)(A). Pub. L. 102–325, § 304(b)(4), sub- stituted ‘‘subsection (a)(2)(D) of this section’’ for ‘‘sec- tion 1064(a)(1) of this title’’. Subsec. (b)(4)(B). Pub. L. 102–325, § 304(b)(5), sub- stituted ‘‘an endowment challenge grant’’ for ‘‘a chal- lenge grant’’. Subsec. (b)(5). Pub. L. 102–325, § 304(b)(6), amended par. (5) generally. Prior to amendment, par. (5) read as fol- lows: ‘‘Except as provided in paragraph (2)(B), a chal- lenge grant under this section to an eligible institution year shall— ‘‘(A) not be less than $50,000 for any fiscal year; and ‘‘(B) not be more than (i) $250,000 for fiscal year 1987; or (ii) $500,000 for fiscal year 1988 or any suc- ceeding fiscal year.’’ Subsec. (f)(1). Pub. L. 102–325, § 304(b)(7), amended par. (1) generally. Prior to amendment, par. (1) read as fol- lows: ‘‘give priority to an applicant which is a recipient of a grant made under part A or B of this subchapter (or section 1069a of this title) during the academic year in which the applicant is applying for a grant under this section;’’. Subsec. (g). Pub. L. 102–325, § 304(b)(8), inserted ‘‘, including a description of the long- and short-term plans for raising and using the funds under this part’’ before period at end of first sentence. 1987—Subsec. (f)(1). Pub. L. 100–50 inserted ‘‘(or sec- tion 1069a of this title)’’. 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 1993 AMENDMENT Amendment by Pub. L. 103–208 effective as if included in the Higher Education Amendments of 1992, Pub. L. 102–325, except as otherwise provided, see section 5(a) of Pub. L. 103–208, set out as a note under section 1051 of this title. EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–325 effective Oct. 1, 1992, see section 2 of Pub. L. 102–325, set out as a note under section 1001 of this title. EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100–50 effective as if enacted as part of the Higher Education Amendments of 1986, Pub. L. 99–498, see section 27 of Pub. L. 100–50, set out as a note under section 1001 of this title. PART D—HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING Editorial Notes CODIFICATION Pub. L. 105–244, title III, § 301(a)(3), Oct. 7, 1998, 112 Stat. 1636, redesignated part B of subchapter VII of this chapter as part D of subchapter III of this chapter. PRIOR PROVISIONS A prior part D, consisting of sections 1066 to 1069, 1069b to 1069d, and 1069f, was redesignated part F (§ 1068 et seq.) of this subchapter by Pub. L. 105–244, title III, § 301(a)(1), Oct. 7, 1998, 112 Stat. 1636. § 1066. Findings The Congress finds that— (1) a significant part of the Federal mission in education has been to attain equal oppor- tunity in higher education for low-income, educationally disadvantaged Americans and African Americans; Page 304 TITLE 20—EDUCATION § 1066a (2) the Nation’s historically Black colleges and universities have played a prominent role in American history and have an unparalleled record of fostering the development of African American youth by recognizing their poten- tial, enhancing their academic and technical skills, and honing their social and political skills through higher education; (3) the academic and residential facilities on the campuses of all historically Black colleges and universities have suffered from neglect, deferred maintenance and are in need of cap- ital improvements in order to provide appro- priate settings for learning and social develop- ment through higher education; (4) due to their small enrollments, limited endowments and other financial factors nor- mally considered by lenders in construction fi- nancing, historically Black colleges and uni- versities often lack access to the sources of funding necessary to undertake the necessary capital improvements through borrowing and bond financing; (5) despite their track record of long-stand- ing and remarkable institutional longevity and viability, historically Black colleges and universities often lack the financial resources necessary to gain access to traditional sources of capital financing such as bank loans and bond financing; and (6) Federal assistance to facilitate low-cost capital basis for historically Black colleges and universities will enable such colleges and universities to continue and expand their edu- cational mission and enhance their significant role in American higher education. (Pub. L. 89–329, title III, § 341, formerly title VII, § 721, as added Pub. L. 102–325, title VII, § 704, July 23, 1992, 106 Stat. 741; renumbered title III, § 341, Pub. L. 105–244, title III, § 301(a)(3), (4), Oct. 7, 1998, 112 Stat. 1636.) Editorial Notes CODIFICATION Section was formerly classified to section 1132c of this title prior to renumbering by Pub. L. 105–244. PRIOR PROVISIONS A prior section 1066, Pub. L. 89–329, title III, § 351, as added Pub. L. 99–498, title III, § 301(a), Oct. 17, 1986, 100 Stat. 1302, and amended, which related to applications for assistance under this subchapter, was renumbered section 391 of Pub. L. 89–329 by Pub. L. 105–244, title III, § 301(a)(2), Oct. 7, 1998, 112 Stat. 1636, and transferred to section 1068 of this title. Another prior section 1066, Pub. L. 89–329, title III, § 341, as added Pub. L. 96–374, title III, § 301, Oct. 3, 1980, 94 Stat. 1396, related to applications for assistance, prior to the general amendment of this subchapter by Pub. L. 99–498. Another prior section 1066, Pub. L. 89–329, title IV, § 406, Nov. 8, 1965, 79 Stat. 1234; Pub. L. 90–575, title I, § 101(b)(2), Oct. 16, 1968, 82 Stat. 1017, related to alloca- tion of allotted funds to institutions, filing dates for application, criteria for making allocations, additional allocations and payments, prior to the general amend- ment of part A of subchapter IV of this chapter by Pub. L. 92–318, title I, § 131(b)(1), June 23, 1972, 86 Stat. 247. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Part effective Oct. 1, 1992, see section 2 of Pub. L. 102–325, set out as an Effective Date of 1992 Amendment note under section 1001 of this title. § 1066a. Definitions For the purposes of this part: (1) The term ‘‘eligible institution’’ means a ‘‘part B institution’’ as that term is defined in section 1061(2) of this title. (2) The term ‘‘loan’’ means a loan made to an eligible institution under the provisions of this part and pursuant to an agreement with the Secretary. (3) The term ‘‘qualified bond’’ means any ob- ligation issued by the designated bonding au- thority at the direction of the Secretary, the net proceeds of which are loaned to an eligible institution for the purposes described in sec- tion 1066b(b) of this title. (4) The term ‘‘funding’’ means any payment under this part from the Secretary to the eli- gible institution or its assignee in fulfillment of the insurance obligations of the Secretary pursuant to an agreement under section 1066b of this title. (5) The term ‘‘capital project’’ means, sub- ject to section 1066c(b) of this title, the repair, renovation, or, in exceptional circumstances, the construction or acquisition, of— (A) any classroom facility, library, labora- tory facility, dormitory (including dining fa- cilities) or other facility customarily used by colleges and universities for instructional or research purposes or for housing students, faculty, and staff; (B) a facility for the administration of an educational program, or a student center or student union, except that not more than 5 percent of the loan proceeds provided under this part may be used for the facility, center or union if the facility, center or union is owned, leased, managed, or operated by a private business, that, in return for such use, makes a payment to the eligible institu- tion; (C) instructional equipment, technology, research instrumentation, and any capital equipment or fixture related to facilities de- scribed in subparagraph (A); (D) a maintenance, storage, or utility fa- cility that is essential to the operation of a facility, a library, a dormitory, equipment, instrumentation, a fixture, real property or an interest therein, described in this para- graph; (E) a facility designed to provide primarily outpatient health care for students or fac- ulty; (F) physical infrastructure essential to support the projects authorized under this paragraph, including roads, sewer and drain- age systems, and water, power, lighting, telecommunications, and other utilities; (G) any other facility, equipment or fix- ture which is essential to the maintaining of accreditation of the member institution by an accrediting agency or association recog- nized by the Secretary under subpart 2 of part H of subchapter IV; and