Page:United States Statutes at Large Volume 106 Part 1.djvu/534

 106 STAT. 502 PUBLIC LAW 102-325—JULY 23, 1992 Appropriation authorization. 20 USC 1070a-53. "(c) INFORMING CONGRESS. —The Secretary shall keep the appropriate committees of the Congress informed with respect to the efforts made pursuant to this section and shall recommend any additional legislative authority that will serve the purposes of this section. ''SEC. 409C. DATABASE AND INFORMATION LINE. "There are authorized to be appropriated $20,000,000 for fiscal year 1993 and such siuns as may be necessary for each of the 4 succeeding fiscal years to carry out this chapter. "CHAPTER 6—NATIONAL STUDENT SAVINGS DEMONSTRATION PROGRAM 20 USC 1070a-61. ''SEC. 410A. NATIONAL STUDENT SAVINGS DEMONSTRATION PROGRAM "(a) STATEMENT OF PURPOSE.— It is the purpose of this section to— "(1) create a demonstration program to test the feasibiHty of establishing a national student savings program to encourage families to save for their children's college education and thereby reduce the loan indebtedness of college students; and "(2) help determine the most effective means of achieving the activities described in paragraph (1). "(b) DEMONSTRATION PROGRAM AUTHORIZED. — "(1) IN GENERAL. — The Secretary is authorized to award a demonstration grant to not more than 5 States to enable each such State to conduct a student savings program in accordance with this section. "(2) AMOUNT OF GRANT. —The amount of each grant awarded pursuant to paragraph (1) shall be computed on the basis of— "(A) a Federal match in an amount equal to the initial State deposit into each account established pursuant to subsection (c)(2)(B), except that such Federal match shall not exceed $50 per child; multiplied by "(B) the number of children participating in the program assisted under this part. "(3) PRIORITY.— In awarding grants under this section the Secretary shall give priority to States proposing programs that establish accounts for a child prior to the age of compulsory school attendance in the State in which such child resides. "(4) SPECIAL CONSIDERATION. —In awarding grants under this section the Secretary shall give special considferation to States— "(A) that permit employers to use pretax income in making contributions to a child's account; and (B) that provide assurances that interest earned in accounts shall be exemptfiromState taxes. "(c) APPLICATION. — "(1) IN GENERAL. —Each State desiring a grant under this section shall submit an application to the Secretary at such time, in such manner, and accompanied by such ixibrmation as the Secretary may reasonably require. " (2) CONTENTS. —Each application submitted pursuant to paragraph (1) shall-^ "(A) describe the student savings program to be established and the number of children to be served;

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