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105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     105-14
_______________________________________________________________________


 
            GRADUATION DATA DISCLOSURES TECHNICAL AMENDMENTS

                                _______
                                

 March 11, 1997.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

_______________________________________________________________________


   Mr. Goodling, from the Committee on Education and the Workforce, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 914]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 914) to make certain technical 
corrections in the Higher Education Act of 1965 relating to 
graduation data disclosures, having considered the same, report 
favorably thereon without amendment and recommend that the bill 
do pass.

                                Purpose

    The purpose of H.R. 914 is to make certain technical 
corrections to the Student Right to Know provisions of the 
Higher Education Act of 1965 relating to graduation data 
disclosures.

                           Legislative Action

    On March 4, 1997, Representatives McKeon and Kildee 
introduced H.R. 914. On March 5, 1997, the Committee on 
Education and the Workforce assembled to consider H.R. 914. The 
Committee adopted the bill by a voice vote.

          Background and Need for Legislation/Committee Views

    The Student Right to Know provisions of the Higher 
Education Act require institutions of higher education to 
report graduation rates for their student body. The law 
required institutions to compile these statistics through June 
30 of each year. In H.R. 3610, the Omnibus Appropriations Act 
of 1996, (P.L. 104-208), the language was changed to require 
the statistics to be compiled through August 30 of each year 
for student athletes. Because institutions include July and 
August graduates in their yearly graduation rate calculations, 
the change was made in order to (i) more accurately reflect the 
manner in which institutions collect the data and (ii) 
eliminate the burdensome task of preparing one set of 
graduation rates through June 30 for purposes of Student Right 
to Know compliance and another set to reflect the actual 
graduation rates including July and August graduates.
    Two mistakes were made when this language was included in 
the Appropriations bill. First, because there are 31 days in 
August, the cutoff date should have been August 31 rather than 
August 30. Second, a corresponding date change for calculating 
graduation rates for the student body-at-large was omitted. 
Because of this mistake, colleges participating in national 
athletics will have to report one graduation rate for their 
athletes using a cut-off date of August 30 and another 
graduation rate for the student body-at-large using a cut-off 
date of June 30.
    H.R. 914 corrects both problems. The first change corrects 
the August cut-off from August 30 to August 31. The second 
change conforms the section of the Act dealing with the 
reporting date for student athletes to the section of the Act 
that requires preparation of graduation rates for all students.

                                Summary

    The purpose of H.R. 914 is to make technical corrections to 
the Student Right to Know provisions of the Higher Education 
Act of 1965 relating to graduation data disclosures.

                      Section-by-Section Analysis

    Section 1(a)(1) amends Section 485 of the Higher Education 
Act of 1965 (U.S.C. 1092) by striking in subsection (a)(3)(B) 
``June 30'' and inserting ``August 31''.
    Section 1(a)(2) amends Section 485 of the Higher Education 
Act of 1965 (U.S.C. 1092) by striking in subsection (e)(9) 
``August 30'' and inserting ``August 31''.
    Section 1(b) provides for an effective date for the 
amendments made by subsection (a) with respect to disclosures 
required to be made for academic years beginning on or after 
July 1, 1998. Any institution that complies with such 
amendments before July 1, 1998, shall not be treated as a 
failure to comply with subsections (a)(3)(B) and (e)(9) of 
section 485 of the Higher Education Act of 1965 as in effect on 
the day before enactment of this Act.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives and clause 2(b)(1) of 
rule X of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in the body of this report.

                    Government Reform and Oversight

    With respect to the requirement of clause 2(l)(3)(D) of 
rule XI of the Rules of the House of Representatives, the 
Committee has received no report of oversight findings and 
recommendations from the Committee on Government Reform and 
Oversight on the subject of H.R. 914.

                           Committee Estimate

    Clause 7 of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs which would be incurred in carrying out 
H.R. 914. However, clause 7(d) of that rule provides that this 
requirement does not apply when the Committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 403 of the Congressional Budget Act of 1974.

                Application of Law to Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. This bill is designed to make certain technical 
corrections to the Student Right to Know provisions of the 
Higher Education Act of 1965 relating to graduation data 
disclosures. This bill does not prohibit legislative branch 
employees from receiving the benefits of this legislation.

                   Constitutional Authority Statement

    Section 485 of the Higher Education Act of 1965 and this 
Act are constitutional under the spending clause of the 
constitution, Article I, section 8, clause 1.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act requires a statement of whether the provisions of 
the reported bill include unfunded mandates. The Committee 
received a letter regarding unfunded mandates from the Director 
of the Congressional Budget Office. See infra.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 2(l)(3)(B) of 
rule XI of the House of Representatives and section 308(a) of 
the Congressional Budget Act of 1974 and with respect to 
requirements of clause 2(l)(3)(C) of rule XI of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for H.R. 914 from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 10, 1997.
Hon. Bill Goodling,
Chairman, Committee on Education and the Workforce, House of 
        Representatives, Washington, DC.
    Dear Chairman: The Congressional Budget Office has prepared 
the enclosed cost estimate for H.R. 914, a bill to make certain 
technical corrections in the Higher Education Act of 1965 
relating to graduation data disclosures.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Deborah 
Kalcevic.
            Sincerely,
                                              James L. Blum
                                   (For June E. O'Neill, Director).
    Enclosure.

H.R. 914--A bill to make certain technical corrections in the Higher 
        Education Act of 1965 relating to graduation data disclosures

    CBO estimates that enacting this bill would have no effect 
on the federal budget. Because the bill would not affect direct 
spending or receipts, pay-as-you-go procedures would not apply. 
H.R. 914 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act of 1995 
and would not affect the budgets of state, local, or tribal 
governments.
    The Higher Education Act requires that all schools 
participating in the federal student aid programs disseminate 
information for prospective and enrolled students. Schools must 
publish and make readily available information regarding many 
aspects of the institution, including graduation rates.
    H.R. 914 would change the current reporting period for 
graduation rates at institutions of higher education 
participating in the federal student aid programs. Currently 
the reporting period is the 12 months ending June 30. This bill 
would make the reporting period the 12 months ending August 31.
    The CBO staff contact for this estimate is Deborah 
Kalcevic. This estimate was approved by Robert A. Sunshine, 
Deputy Assistant Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3 of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

            SECTION 485 OF THE HIGHER EDUCATION ACT OF 1965

SEC. 485. INSTITUTIONAL AND FINANCIAL ASSISTANCE INFORMATION FOR 
                    STUDENTS.

    (a) Information Dissemination Activities.--(1) * * *
          * * * * * * *
    (3) In calculating the completion or graduation rate under 
subparagraph (L) of paragraph (1) of this subsection or under 
subsection (e), a student shall be counted as a completion or 
graduation if, within 150 percent of the normal time for 
completion of or graduation from the program, the student has 
completed or graduated from the program, or enrolled in any 
program of an eligible institution for which the prior program 
provides substantial preparation. The information required to 
be disclosed under such subparagraph--
          (A) * * *
          (B) shall cover the one-year period ending on [June 
        30] August 31 of the preceding year.
          * * * * * * *
    (e) Disclosures Required With Respect to Athletically 
Related Student Aid.--(1) * * *
          * * * * * * *
    (9) This subsection shall not be effective until the first 
July 1 that follows, by more than 270 days, the date on which 
the Secretary first prescribes final regulations pursuant to 
this subsection. The reports required by this subsection shall 
be due on that July 1 and each succeeding July 1 and shall 
cover the 1-year period ending [August 30] August 31 of the 
preceding year.
          * * * * * * *