Title V Program Statute The following is an excerpt of the Higher Education Act of 1965, as amended through September !!

6" TITLE VDEVELOPING INSTITUTIONS PART AHISPANIC-SERVING INSTITUTIONS SE#" 5!1" $%&'%&(S) *+,*-SE) A&' *,-(,A. A+TH-,%T/" 0a1 $%&'%&(" 22 #ongress ma3es the following findings4 011 Hispanic Americans are at high ris3 of not enrolling or graduating from institutions of higher education" 0 1 'isparities between the enrollment of non2Hispanic white students and Hispanic students in postsecondar5 education are increasing" 6etween 1978 and 1999, enrollment of white secondar5 school graduate in 925ear institutions of higher education increased at a rate two times higher than that of Hispanic secondar5 school graduates" 081 'espite significant limitations in resources, Hispanic2ser:ing institutions pro:ide a significant proportion of postsecondar5 opportunities for Hispanic students" 091 ,elati:e to other institution of higher education, Hispanic2ser:ing institutions are under funded" Such institutions recei:e significantl5 less in State and local funding, per full2 time e;ui:alent student, than other institutions of higher education" 051 Hispanic2ser:ing institutions are succeeding in educating Hispanic students despite significant resources problems that22 0A1 limit the abilit5 of such institutions to expand and impro:e the academic programs of such institutions) and 061 could imperil the financial and administrati:e stabilit5 of such institutions" 061 There is a national interest in remed5ing the disparities described in paragraphs 0 1 and 091 and ensuring that Hispanic students ha:e an e;ual opportunit5 to pursue postsecondar5 opportunities" 0b1 *urpose" 22 The purpose of this title is to22 011 expand educational opportunities for, and impro:e the academic attainment of Hispanic students, and) 0 1 expand and enhance the academic offerings, program ;ualit5, and institutional stabilit5 of colleges and uni:ersities that are educating the ma<orit5 of Hispanic college students and helping large number of Hispanic students and other low2income indi:iduals complete postsecondar5 degrees" 0c1 *rogram Authorit5" 22 The Secretar5 shall pro:ide grants and related assistance to Hispanic2ser:ing institutions to enable such institutions to impro:e and expand their capacit5 to ser:e Hispanic students and other low2income indi:iduals"

SE#" 5! 'E$%&%T%-&S) E=%(%6%=%T/" 0a1 'efinitions" $or the purpose of this title4 011 E'+#AT%-&A= A&' (E&E,A= E>*E&'%T+,ES" The term ?educational and general expenditures@ means the total amount expended b5 and institution for instruction, research, public ser:ice, academic support 0including librar5 expenditures1, student ser:ices, institutional support, scholarships and fellowships, operation and maintenance expenditures for the ph5sical plant, and an mandator5 transfers that the institution is re;uired to pa5 b5 law" 0 1 E=%(%6=E %&ST%T+T%-&" The term ?eligible institution@ means22 0A1 an institution of higher education22 0i1 has an enrollment of need5 students as re;uired b5 subsection 0b1) 0ii1 except as pro:ided in section 51 0b1, the a:erage educational and general expenditures of which are low, per full time e;ui:alent undergraduate student, in comparison with the a:erage educational and general expenditures per full time e;ui:alent undergraduate student of institutions that offer similar instruction4 0iii1 that is22 0%1 legall5 authoriAed to pro:ide, and pro:ides within the State, an education program for which the institution awards a bachelorBs degree or 0%%1 a <unior or communit5 college) 0i:1 that is accredited b5 a nationall5 recogniAed accrediting agenc5 or association determined b5 the Secretar5 to be reliable authorit5 as to the ;ualit5 of training offered or that is, according to such an agenc5 or association, ma3ing reasonable progress toward accreditation) 0:1 that meets such other re;uirements as the Secretar5 ma5 prescribe) and 0:i1 that is located in a State) and 061 an5 branch of an5 institution of higher education described under subparagraph 0A1 that b5 itself satisfies the re;uirements contained in clauses 0%1 and 0ii1 of such subparagraph" $or purposes of the determination of whether an institution is an eligible institution under this paragraph, the factor described under subparagraph 0A10%1 shall be gi:en twice the weight of the factor described under subparagraph 0A10ii1" 081 E&'-C.E&T $+&'"22 The term ?endowment fund@ means a fund that 0A1 is established b5 State law, b5 a Hispanic2ser:ing institution, or b5 a foundation that is exempt from $ederal income taxation) 061 is maintained for the purpose of generating income for the support of the institution) and

0#1 does not include real estate" 091 $+==2T%.E ED+%EA=E&T ST+'E&TS"22The term ?full2time e;ui:alent students@ means the sum of the number of students enrolled full time at an institution, plus the full2 time e;ui:alent of the number of students enrolled part time 0determined on the basis of the ;uotient of the sum of the credit hours or all part2time student di:ided b5 1 1 at such institution" 051 H%S*A&%#2SE,E%&( %&ST%T+T%-&" 22 The term ?Hispanic2Ser:ing institution@ means an institution of higher education thatF 0A1 is an eligible institution) and 061 has an enrollment of undergraduate full2time e;ui:alent students that is at least 5 percent Hispanic students at the end of the award 5ear immediatel5 preceding the date of application" 061 G+&%-, -, #-..+&%T/ #-==E(E" The term ?<unior or communit5 college@ means an institution of higher education22 0A1 that admits as regular students persons who are be5ond the age of compulsor5 school attendance in the State in which the institution is located and who ha:e the abilit5 to benefit from the training offered b5 the institution) 061 that does not pro:ide an educational program for which the institution awards a bachelorBs degree 0or an e;ui:alent degree1) and 0#1 that22 0%1 pro:ides an educational program of not less than is acceptable for full credit toward such a degree) or 5ears in duration that

0ii1 offers a 25ear program in engineering, mathematics or the ph5sical or biological sciences, designed to prepare a student to wor3 as a technician or a the semiprofessional le:el in engineering, scientific, or other technological fields re;uiring the understanding the application of basic engineering, scientific, or mathematical principles of 3nowledge" 0b1 Enrollment of &eed5 Students"22 $or the purpose of this title, the term ?enrollment of need5 students@ means an enrollment at an institution with respect to which22 011 at least 5! percent of the degree students so enrolled are recei:ing need2 based assistance under title %E in the second fiscal 5ear preceding the fiscal 5ear for which the determination is made 0other than loans for which an interest subsid5 is paid pursuant to section 9 H1) or 0 1 a substantial percentage of the students so enrolled are recei:ing $ederal *ell (rants in the second fiscal 5ear preceding the fiscal 5ear for which determination is made compared to the percentage of students recei:ing $ederal *ell (rants at all

such institutions in the second fiscal 5ear preceding the fiscal 5ear for which the determination is made, unless the re;uirement of this paragraph is wai:ed under section 51 0a1"

SE#" 5!8 A+TH-,%IE' A#T%E%T%ES" 0a1 T/*ES -$ A#T%E%T%ES A+TH-,%IE'" (rants awarded under this title shall be used b5 Hispanic2ser:ing institutions of higher education to assist the institutions to plan, de:elop, underta3e, and carr5 out programs to impro:e and expand such institutionsB capacit5 to ser:e Hispanic students and other low2income students" 0b1 A+TH-,%IE' A#T%E%T%ES" (rants awarded under this section shall be used for one or more of the following acti:ities4 011 *urchase, rental or lease of scientific or laborator5 e;uipment for educational purposes, including instructional and research purposes" 0 1 #onstruction, maintenance, reno:ation, and impro:ement in classrooms, libraries, laboratories, and other instructional facilities" 081 Support of facult5 exchanges, facult5 de:elopment, curriculum de:elopment, academic instruction, and facult5 fellowships to assist in attaining ad:anced degrees in the fellowBs field of instruction" 091 *urchase of librar5 boo3s, periodicals, and other educational materials, including telecommunications program material" 051 Tutoring, counseling, and student ser:ice programs designed to impro:e academic success" 061 $unds management, administrati:e management, and ac;uisition of e;uipment for use in strengthening funds management" 071 Goint use of facilities, such as laboratories and libraries" 0H1 Establishing or impro:ing a de:elopment office to strengthen or impro:e contributions from alumni and the pri:ate sector" 091 Establishing or impro:ing an endowment fund" 01!1 #reating or impro:ing facilities for %nternet or other distance learning academic instruction capabilities, including purchase or rental of telecommunications technolog5 e;uipment or ser:ices" 0111 Establishing or enhancing a program or teacher education designed to ;ualif5 students to teach in public elementar5 schools and secondar5 schools" 01 1 Establishing communit5 outreach programs that will encourage elementar5 school and secondar5 school students to de:elop the academic s3ills and the interest to pursue postsecondar5 education" 0181 Expanding the number of Hispanic and other underrepresented graduate and professional students that can be ser:ed b5 the institution b5 expanding courses and institutional resources" 0191 -ther acti:ities proposed in the application submitted pursuant to section 5!9 that 22 0A1 that contribute to carr5ing out the purposes of this title

061 are appro:ed b5 the Secretar5 as part of the re:iew and acceptance of such application" 0c1 Endowment fund limitations" J 011 *ortion of a grant" 22 A Hispanic2ser:ing institution ma5 not use more than ! percent of the grant funds pro:ided under this title for an5 fiscal 5ear for establishing or impro:ing an endowment fund" 0 1 .atching re;uired" 22 A Hispanic2ser:ing institution that uses an5 portion f the grant funds pro:ided under this title for an5 fiscal 5ear for establishing or impro:ing and endowment fund shall pro:ide from non2$ederal funds an amount e;ual to or greater than the portion" 081 #omparabilit5" 22 The pro:isions of part # of subchapter %%% of this chapter regarding the establishment or increase of an endowment fund, that the Secretar5 determines are not inconsistent with this subsection, shall appl5 to funds used under paragraph 011" SE#" 5!922 '+,AT%-& -$ (,A&T 0a1 Award *eriod 2 The Secretar5 ma5 award a grant to a Hispanic2ser:ing institution under this title for 5 5ears" 0b1 *lanning grants" &otwithstanding subsection 0a1, the Secretar5 ma5 award a grant to a Hispanic2ser:ing institution under this part for a period of one 5ear for the purpose of preparation of plans and applications for a grant under this title" SE#" 5!5" S*E#%A= ,+=E &o Hispanic2ser:ing institution that is eligible for and recei:es funds under this title ma5 concurrentl5 recei:e other funds under part A or 6 of Title %%% during the period for which funds under this title are awarded" PART B--GENERAL PROVISIONS SE#" 511" E=%(%6%=%T/) A**=%#AT%-&" 0a1 %nstitutional Eligibilit5" Each Hispanic2ser:ing institution desiring to recei:e assistance under this title shall submit to the Secretar5 such enrollment data as ma5 be necessar5 to demonstrate that the institution is a Hispanic2ser:ing institution as defined in section 5! , along with such other data and information as the Secretar5 ma5 be regulation re;uire" 0b1 Applications" 011 Applications re;uired" An5 institution which is eligible for assistance under this subchapter shall submit to the Secretar5 an application for assistance at such time, in such form, and containing such information, as ma5 be necessar5 to enable the Secretar5 to

e:aluate the institutionBs need for assistance" Sub<ect to the a:ailabilit5 of appropriations to carr5 out this title, the Secretar5 ma5 appro:e an application for a grant under this title onl5 if the Secretar5 determines that2 0A1 the application meets the re;uirements of subsection 0b1) and 061 the institution is eligible for assistance in accordance with the pro:isions of this title under which the assistance is sought" 0 1 *reliminar5 Applications" 22 %n carr5ing out paragraph 011, the Secretar5 ma5 de:elop a preliminar5 application for use b5 Hispanic2ser:ing institutions appl5ing under this title prior to the submissions of the principal application" 0c1 #ontents" A Hispanic2ser:ing institution, in the institutionBs application for a grant, shall 2 011 set forth, or describe how the institution will de:elop, a comprehensi:e de:elopment plan to strengthen the institutionKs academic ;ualit5 and institutional management, and otherwise pro:ide for institutional self2sufficienc5 and growth 0including measurable ob<ecti:es for the institution and the Secretar5 to use in monitoring the effecti:eness of acti:ities under this subchapter1) 0 1 include a 525ear plan for impro:ing the assistance pro:ided b5 the Hispanic2 ser:ing institution to Hispanic students and other low2income indi:iduals) 081 set forth policies and procedures to ensure that $ederal funds made a:ailable under this subchapter for an5 fiscal 5ear will be used to supplement and, to the extent practical, increase the funds that would otherwise be made a:ailable for the purposes of section 5!10b1, and in no case supplant those funds) 091 set forth policies and procedures for e:aluating the effecti:eness in accomplishing the purpose of the acti:ities for which a grant is sought under this title) 051 pro:ide for such fiscal control and fund accounting procedures as ma5 be necessar5 to ensure proper disbursement of and accounting for funds made a:ailable to the applicant under this title) 516) 061 pro:ide that the institution will compl5 with the limitations set forth in Section

071 describe in a comprehensi:e manner an5 proposed pro<ect for which funds are sought under the application and include22 0A1 a description of the :arious components of the proposed pro<ect, including the estimated time re;uired to complete each such component) 061 in the case of an5 de:elopment pro<ect that consists of se:eral components 0as described b5 the institution pursuant to subparagraph 0A11, a statement identif5ing those components which, if separatel5 funded, would be sound in:estments of $ederal funds onl5 if funded under this title in con<unction with other parts of the de:elopment pro<ect 0as specified b5 the institution1) 0#1 an e:aluation b5 the applicant of the priorit5 gi:en an5 proposed pro<ect for which funds are sought in relation to an5 other pro<ects for which funds are sought b5 the applicant under this title, and a similar e:aluation regarding priorities among the components of an5 single proposed pro<ect 0as described b5 the applicant pursuant to subparagraph 0A11)

0'1 a detailed budget showing the manner in which funds for an5 proposed pro<ect would be spent b5 the applicant) and 0E1 a detailed description of an5 acti:it5 which in:ol:es the expenditure of more than L 5,!!!, as identified in the budget referred to in subparagraph 0E1) and 0H1 pro:ide for ma3ing reports, in such form and containing such information, as the Secretar5 ma5 re;uire to carr5 out the Secretar5Bs functions under this title, including not less than one report annuall5 setting forth the institutionBs progress toward achie:ing the ob<ecti:es for which the funds were awarded and for 3eeping such records and affording such access to such records, as the Secretar5 ma5 find necessar5 to assure the correctness and :erification of such reports) and 091 include such other information as the Secretar5 ma5 prescribe" 0d1 *riorit5" Cith respect to applications for assistance under this section, the Secretar5 shall gi:e priorit5 to an application that contains satisfactor5 e:idence that the Hispanic2 ser:ing institution has entered into or will enter into a collaborati:e arrangement with at least on local education agenc5 or communit52based organiAation to pro:ide such agenc5 or organiAation with assistance 0from funds other than funds pro:ided under this title1 in reducing dropout rates for Hispanic students, impro:ing rates of academic achie:ement for Hispanic students, and increasing the rates at which Hispanic secondar5 school graduates enroll in higher education" 0e1 Eligibilit5 'ata" The Secretar5 shall use the most recent and rele:ant data concerning the number and percentage of students recei:ing need2based assistance under %E in ma3ing eligibilit5 determinations and shall ad:ance the base25ear for the determinations forward following each annual grant c5cle" SE#" 51 " CA%EE, A+TH-,%T/ A&' ,E*-,T%&( ,ED+%,E.E&T 0a1 Cai:er re;uirements) need2based assistance students" The Secretar5 ma5 wai:e the re;uirements set forth in section 5! 0a10 10A10%1 in the case of an institution 011 that is extensi:el5 subsidiAed b5 the State in which it is located and charges low or no tuition) 0 1 which ser:es a substantial number of low2income students as a percentage of its total student population) 081 that is contributing substantiall5 to increasing higher education opportunities for educationall5 disad:antaged, underrepresented, or minorit5 students, who are low2income indi:iduals) 091 which is substantiall5 increasing higher educational opportunities for indi:iduals in rural or other isolated areas which are unser:ed b5 postsecondar5 institutions) 051 where:er located, if the Secretar5 determines that the wai:er will substantiall5 increase higher education opportunities appropriate to the needs of Hispanic Americans" 0b1 Cai:er determinations) expenditures22 011 The Secretar5 ma5 wai:e the re;uirements set forth in section 5! 0a10 10A10ii1 if the Secretar5 determines, based on persuasi:e e:idence submitted b5 the institution, that the institutionKs failure to meet that criterion is

due to factors which, when used in the determination of compliance with such criterion, distort such determination, and that the institutionKs designation as an eligible institution under part A is otherwise consistent with the purposes of this title" "" 0 1 Expenditures22The Secretar5 shall submit to the #ongress e:er5 other 5ear a report concerning the institutions that, although not satisf5ing the re;uirements of section 5! 0a10 10A10ii1, ha:e been determined to be eligible institutions under part A" Such report shall2 0A1 identif5 the factors referred to in paragraph 011 which were considered b5 the Secretar5 as factors that distorted the determination of compliance with clauses 0%1 and 0ii1 of section 5! 0a10 10A1) and 061 contain a list of each institution determined to be an eligible institution under part A including a statement of the reasons for each such determination" SE#" 51822A**=%#AT%-& ,EE%EC *,-#ESS 0a1 ,e:iew panel"22 All applications submitted under this title b5 Hispanic ser:ing institutions of higher education shall be read b5 a panel of readers composed of indi:iduals selected b5 the Secretar5 and who include indi:iduals representing Hispanic2ser:ing institutions" The Secretar5 shall ensure that no indi:idual assigned under this section to re:iew an5 application has an5 conflict of interest with regard to that application which might impair the impartialit5 with which that indi:idual conducts the re:iew under this section" 0b1 %nstruction"22 All readers selected b5 the Secretar5 shall recei:e thorough instruction from the Secretar5 regarding the e:aluation process for applications submitted under this title that are consistent with the pro:isions of this title, including22 011 an enumeration of the factors to be used to determine the ;ualit5 of applications submitted under this title) and 0 1 an enumeration of the factors to be used to determine whether a grant should be awarded for a pro<ect under this title, the Secretar5 shall ta3e into consideration the amount of an5 such grant, and the duration of an5 such grant" 0c1 ,ecommendations of panel" %n awarding grants under this title, the Secretar5 shall ta3e into consideration the recommendations of the panel made under subsection 0a1" 0d1 &otification" &ot later than Gune 8! of each 5ear, the Secretar5 shall notif5 each Hispanic2ser:ing institution ma3ing an application under this title of 011 the scores gi:en the applicant b5 the panel pursuant to this section) 0 1 the recommendations of the panel with respect to such application) and 081 the reasons for the decision of the Secretar5 in awarding or refusing to award a grant under this title, and an5 modifications, if an5, in the recommendations of the panel made b5 the Secretar5" SE#" 51922#--*E,AT%EE A,,A&(E.E&TS 0a1 (eneral authorit5" The Secretar5 ma5 ma3e grants to encourage cooperati:e arrangements with funds a:ailable to carr5 out this title, between Hispanic2ser:ing institutions eligible for assistance under this title and between such institutions and

institutions not recei:ing assistance under this title, for assistance under this title, for the acti:ities described in section 5!8 so that the resources of the cooperating institutions might be combined and shared in order to achie:e the purposes of this title, to a:oid costl5 duplicati:e efforts and to enhance the de:elopment of part A and part 6 eligible institutions" 0b1 *riorit5" The Secretar5 shall gi:e priorit5 to grants for the purposes described under subsection 0a1 whene:er the Secretar5 determines that the cooperati:e arrangement is geographicall5 and economicall5 sound or will benefit the applicant Hispanic2ser:ing institution" 0c1 'uration" (rants to Hispanic2ser:ing institutions ha:ing a cooperati:e arrangement ma5 be made under this section for a period as determined under section 5!5" SE#" 515" ASS%STA&#E T- %&ST%T+T%-&S +&'E, -THE, *,-(,A.S 0a1 Assistance eligibilit5" Each Hispanic2ser:ing institution that the Secretar5 determines to be an institution eligible under this title ma5 be eligible for wai:ers in accordance with subsection 0b1" 0b1 Cai:er applicabilit5 011 %n (eneral2Sub<ect to, and in accordance with, regulations promulgated for the purposes of this section, in the case of an5 application b5 a Hispanic2ser:ing institution referred to in subsection 0a1 for assistance under an5 programs specified in paragraph 0 1, the Secretar5 is authoriAed, if such application is otherwise appro:able, to wai:e an5 re;uirement for a non2$ederal share of the cost of the program or pro<ect, or, to the extent not inconsistent with other law, to gi:e, or re;uire to be gi:en, priorit5 consideration of the application in relation to applications from other institutions" 0 1 The pro:isions of this section shall appl5 to an5 program authoriAed b5 Title %E or section 6!9" 0c1 =imitation" The Secretar5 shall not wai:e, under subsection 0b1 of this section, the non2 $ederal share re;uirement for an5 program for applications which, if appro:ed, would re;uire the expenditure of more than 1! percent of the appropriations for the program for an5 fiscal 5ear" SE#" 516" =%.%TAT%-&S

The funds appropriated under section 51H ma5 not be used 011 for a school or department of di:init5 or an5 religious worship or sectarian acti:it5) 0 1 for an acti:it5 that is inconsistent with a State plan for desegregation of higher education applicable to a Hispanic2ser:ing institution) 081 for an acti:it5 that is inconsistent with a State plan of higher education applicable to a Hispanic2ser:ing institution) or 091 for purposes other than the purposes set forth in the appro:ed application under which the funds were made a:ailable to a Hispanic2ser:ing institution"

SE#" 517F*E&A=T%ES Choe:er, being an officer, director, agent, or emplo5ee of, or connected in an5 capacit5 with, an5 recipient of $ederal financial assistance or grant pursuant to this subchapter embeAAles, willfull5 misapplies, steals, or obtains b5 fraud an5 of the funds which are the sub<ect of such grant or assistance, shall be fined not more than L1!,!!! or imprisoned for not more than 5ears, or both" SE#" 51H22A+TH-,%IAT%-&S -$ A**,-*,%AT%-&S 0a1 AuthoriAations" 22 There are authoriAed to be appropriated to carr5 out this title L6 ,5!!,!!! for fiscal 5ear 1999, and such sums as ma5 be necessar5 for each of the 9 succeeding fiscal 5ears" 0b1 +se of multiple 5ear awards" %n the e:ent of a multiple 5ear award to an5 Hispanic2 ser:ing institution under this title, the Secretar5 shall ma3e funds a:ailable for such award from funds appropriated for this title for the fiscal 5ear in which such funds are to be used b5 the institution"