text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Opportunities for Success Act of 
  2013''.
  
  SEC. 2. FINDINGS.
  
      Congress finds the following:
              (1) Internships are increasingly important to the ability 
          of college students to gain skills, make professional 
          connections, and find jobs after graduation.
              (2) In 2011, according to the National Association of 
          Colleges and Employers, employers offered full-time positions 
          to 61.2 percent of their interns with an acceptance rate of 
          86.5 percent.
              (3) Many students struggle to make ends meet; 66 percent of 
          young community college students dedicate more than 20 hours a 
          week to an outside job, and the need of many students to 
          maintain a part-time or full-time job reduces or eliminates the 
          time available for an internship.
              (4) Internships often require significant time commitments 
          or temporary relocation, which many students are unable to 
          afford; these additional living expenses include housing, 
          meals, and travel, and these costs make unpaid internships with 
          employers like non-profit organizations and government even 
          more inaccessible for those with low and middle incomes.
              (5) In 2011, 46 percent of students who had completed an 
          internship were offered jobs, compared with 31 percent of 
          students who did not complete an internship; more than 76 
          percent of employers rank relevant experience as the most 
          important quality when hiring.
              (6) Many university officials and employers acknowledge 
          that participating in an undergraduate internship is extremely 
          helpful for finding meaningful employment in today's job 
          market.
  
  SEC. 3. OPPORTUNITIES FOR SUCCESS PROGRAM.
  
      (a) Program Authorized.--From the amounts made available to carry 
  out this Act, the Secretary of Education shall establish a grant 
  program to award grants to qualifying educational institutions in 
  accordance with this section in order to support eligible students 
  attending such institutions during internships.
      (b) Application.--To receive a grant under this section, a 
  qualifying educational institution shall submit to the Secretary an 
  application at such time, in such manner, and containing such 
  information as the Secretary may require.
      (c) Use of Funds by Qualifying Educational Institutions.--A 
  qualifying educational institution receiving a grant under this section 
  shall use the grant funds in accordance with the following:
              (1) Activities.--Such institution may only use the grant to 
          fund internship awards in accordance with this section to 
          eligible students enrolled at the institution.
              (2) Administration of internship awards.--Internship awards 
          made from the grant--
                      (A) shall be administered by the financial aid 
                  office of such institution; and
                      (B) may be administered in conjunction with the 
                  career development office and career center of such 
                  institution.
              (3) Prohibition on alteration of financial aid.--A 
          student's receipt of an internship award from a grant under 
          this section shall not be taken into account in determining the 
          need or eligibility of the student for financial assistance 
          under title IV of the Higher Education Act of 1965 (20 U.S.C. 
          1070 et seq.).
              (4) Supplement not supplant.--Funds made available to carry 
          out this section shall be used to supplement, and not supplant, 
          other Federal and State funds available to carry out the 
          activities described in this section.
              (5) Deadline for summer internships.--Such institution 
          shall make an award for a summer internship under this section 
          by June 30 of a calendar year preceding the first day of the 
          summer internship for that year.
      (d) Calculating Award Amounts.--
              (1) Amount to qualifying educational institutions.--
                      (A) In general.--In determining a grant amount for 
                  a qualifying educational institution under this 
                  section, the Secretary shall ensure that the 
                  institution's grant is equal to an amount that bears 
                  the same relationship to the total funds available to 
                  carry out this section for a fiscal year as the number 
                  of eligible students enrolled at the institution (as 
                  determined by the Secretary on the basis of the most 
                  recent satisfactory data) bears to the total number of 
                  eligible students enrolled at all qualifying 
                  educational institutions, as so determined.
                      (B) Reallocation.--If a qualifying educational 
                  institution does not receive funds under this 
                  paragraph, the Secretary shall reallocate such funds to 
                  other qualifying educational institutions in the same 
                  proportion funds are allocated under subparagraph (A).
                      (C) Exception.--In the case of a qualifying 
                  educational institution that does not award all of the 
                  grant funds received under this section for a fiscal 
                  year to eligible students in accordance with this 
                  section, the Secretary, in awarding grants under this 
                  section for the succeeding fiscal year--
                              (i) shall reallocate the unused funds to 
                          other qualifying educational institutions in 
                          the same proportion funds are allocated under 
                          subparagraph (A); and
                              (ii) may award such institution a grant in 
                          an amount that is less than the full grant 
                          amount such institution would have otherwise 
                          received under subparagraph (A) for such year.
              (2) Student award parameters.--
                      (A) Maximum student award.--A student receiving an 
                  award of funds from a grant to a qualifying educational 
                  institution under this section may not receive--
                              (i) more than $5,000 from such grant if the 
                          award is for a full-time internship; and
                              (ii) more than $2,500 from such grant if 
                          the award is for a part-time internship.
                      (B) Calculation of student award.--
                              (i) Unpaid internships.--
                                      (I) Awards for in-school 
                                  students.--Subject to subparagraph (A), 
                                  in the case of a student receiving an 
                                  award for an unpaid internship that 
                                  occurs during a period of enrollment at 
                                  the awarding qualifying educational 
                                  institution, the amount of the award 
                                  shall be, to the extent practicable, an 
                                  amount based on the higher of--
                                              (aa) the applicable Federal 
                                          minimum wage by each hour of 
                                          the internship; or
                                              (bb) the applicable State 
                                          minimum wage of the State in 
                                          which the institution is 
                                          located by each hour of the 
                                          internship.
                                      (II) Awards for students during 
                                  summer and winter terms.--
                                              (aa) In general.--Subject 
                                          to subparagraph (A), in the 
                                          case of a student receiving an 
                                          award for an unpaid internship 
                                          that occurs during a period of 
                                          nonattendance at the awarding 
                                          educational institution, the 
                                          amount of the award shall, to 
                                          the extent practicable, be an 
                                          amount that covers reasonable 
                                          cost of living expenses for the 
                                          student.
                                              (bb) Reasonable cost of 
                                          living expenses.--For purposes 
                                          of item (aa), ``reasonable cost 
                                          of living expenses'' shall 
                                          include considerations of--
  
                                                      (AA) the location 
                                                  of the internship;
  
                                                      (BB) the length of 
                                                  the internship;
  
                                                      (CC) travel costs 
                                                  associated with the 
                                                  internship;
  
                                                      (DD) housing costs 
                                                  during the duration of 
                                                  the internship;
  
                                                      (EE) meal costs 
                                                  during the duration of 
                                                  the internship; and
  
                                                      (FF) whether the 
                                                  internship is full-time 
                                                  or part-time.
  
                              (ii) Paid internships.--In the case of a 
                          student receiving an award for a paid 
                          internship, the amount of the award shall be 
                          determined by reducing the amount such student 
                          would receive for an unpaid internship as 
                          calculated under clause (i) by the amount of 
                          income that the internship will provide to the 
                          student.
      (e) Awards Non-Taxable.--An award received by a student under this 
  section shall not be considered taxable income.
      (f) Carry-Back Authorized.--A qualifying educational institution 
  receiving a grant under this section for a fiscal year may use such 
  grant funds to make internship awards under this section prior to the 
  beginning of the fiscal year, but after the end of the previous 
  academic year.
      (g) Reports.--Not later than 1 year after the date of enactment of 
  this Act and each succeeding year in which the Secretary makes grants 
  under this section, the Secretary shall submit to Congress a report 
  detailing, with regard to grants made under this section for the 
  previous academic year--
              (1) the percentage of students receiving internship funds 
          from grants under this section who, not later than 2 years 
          after graduating from a qualifying educational institution, are 
          hired in a field related to the internship for which the 
          students received such funds;
              (2) the number of qualifying educational institutions 
          receiving grants under this section;
              (3) the categories of qualifying educational institutions 
          (such as 4-year public institutions, 4-year private, nonprofit 
          institutions, 2-year public institutions, and 2-year private, 
          nonprofit institutions) receiving grants under this section;
              (4) the number of students receiving internship funds from 
          grants under this section, and the degrees such students are 
          pursuing;
              (5) the number of paid internships, and the number of 
          unpaid internships, funded by such grants;
              (6) the locations of internships funded by such grants;
              (7) the number of students who used internship funds 
          awarded under this section to complete an internship more than 
          60 miles from the qualifying educational institution that made 
          such award or that required the students to temporarily 
          relocate for the duration of the internship; and
              (8) the types of internships (such as full-time summer 
          internships, part-time summer internship, or part-time semester 
          internships) completed by students receiving awards funded by 
          such grants.
      (h) Regulations.--The Secretary shall prescribe such regulations as 
  may be necessary to carry out this section, including regulations that 
  provide guidance to qualifying educational institutions on how to 
  determine whether an internship meets the requirements of subclauses 
  (I) through (III) of subsection (i)(1)(F)(vi).
      (i) Definitions.--For purposes of this section:
              (1) Eligible student.--The term ``eligible student'' means 
          a student who--
                      (A) is a full-time or half-time student (as such 
                  terms are defined in section 668.2 of title 34, Code of 
                  Federal Regulations (or a successor regulation));
                      (B) is eligible for a Federal Pell Grant under 
                  section 401 of the Higher Education Act of 1965 (20 
                  U.S.C. 1070a et seq.);
                      (C) is enrolled at a qualifying educational 
                  institution in a program of study that leads to an 
                  associate's or bachelor's degree;
                      (D) if the student has accepted an internship 
                  during a period of nonattendance at a qualifying 
                  educational institution--
                              (i) demonstrates that the student is 
                          planning to re-enroll at such institution for 
                          the next period of enrollment at such 
                          institution by registering for such period of 
                          enrollment at the institution or accepting the 
                          institution's offer of admittance for such 
                          period of enrollment; and
                              (ii) will be eligible for a Federal Pell 
                          Grant under section 401 of such Act (20 U.S.C. 
                          1070a et seq.), for such period of enrollment;
                      (E) has not, while pursuing the same degree that 
                  such student is currently pursuing, previously received 
                  an award that included funds granted under subsection 
                  (a) to a qualifying educational institution; and
                      (F) has received an official internship offer, as 
                  defined by the Secretary in regulations, for an 
                  internship that--
                              (i) is located within the United States;
                              (ii) in a case in which the internship 
                          employs (as defined under section 3(g) of the 
                          Fair Labor Standards Act (29 U.S.C. 203(g)) the 
                          student, meets the requirements of such Act (29 
                          U.S.C. 201 et seq.);
                              (iii) is a full-time summer internship, a 
                          part-time summer internship, or a part-time 
                          semester internship;
                              (iv) is not less than 4 weeks in duration, 
                          and is not greater in duration than the shorter 
                          of--
                                      (I) the length of a standard 
                                  academic period at the qualifying 
                                  educational institution; or
                                      (II) in the case of an internship 
                                  that occurs during a period of 
                                  nonattendance at the awarding 
                                  qualifying educational institution, 10 
                                  weeks, or in the case of an internship 
                                  that occurs during a period of 
                                  attendance at the awarding qualifying 
                                  educational institution, 12 weeks;
                              (v) is--
                                      (I) an unpaid internship; or
                                      (II) a paid internship that, 
                                  according to the determination of the 
                                  qualifying educational institution, 
                                  without an award under this section 
                                  such student would otherwise be unable 
                                  to afford participating in such 
                                  internship; and
                              (vi) is determined by the qualifying 
                          educational institution to be an internship 
                          that--
                                      (I) is of good and reputable 
                                  quality;
                                      (II) affords adequate educational 
                                  or skill-building opportunities; and
                                      (III) is reasonably associated with 
                                  the student's course of study at a 
                                  qualifying educational institution.
              (2) Full-time.--The term ``full-time'', when used with 
          respect to an internship, shall be defined by the Secretary in 
          regulations.
              (3) Qualifying educational institution.--The term 
          ``qualifying educational institution'' has the meaning given 
          the term ``institution of higher education'' in section 101(a) 
          of the Higher Education Act of 1965 (20 U.S.C. 1001(a)).
              (4) Part-time.--The term ``part-time'', when used with 
          respect to an internship, shall be defined by the Secretary in 
          regulations.
              (5) Period of nonattendence.--The term ``period of 
          nonattendence'', when used with respect to a student, means a 
          period during which the student is not enrolled at a qualifying 
          educational institution, including a summer or winter term.
              (6) Secretary.--The term ``Secretary'' means the Secretary 
          of Education.
target: Opportunities for Success Act of 2013 - Directs the Secretary of Education to award grants to institutions of higher education for use in providing their students with financial support to engage in internships reasonably associated with their studies. Requires support recipients to be full-time or half-time students who are eligible for Federal Pell Grants. Sets the student support level for unpaid internships at: (1) the higher of the federal or state minimum wage for each hour of the internship, if the internship occurs while the student is enrolled in classes; and (2) the student's reasonable cost of living expenses, if the internship occurs while the student is not enrolled in classes. Sets the support level for paid internships by reducing the amount the student would receive for an unpaid internship by the amount the paid internship provides to the student. Caps the total support a student may receive for full-time and part-time internships. Makes that support nontaxable and excludes it from the calculation of a student's need or eligibility for financial assistance under title IV (Student Assistance) of the Higher Education Act of 1965.
feat_title: Opportunities for Success Act of 2013