[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3136 Engrossed in House (EH)]
113th CONGRESS
2d Session
H. R. 3136
_______________________________________________________________________
AN ACT
To establish a demonstration program for competency-based education.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Advancing Competency-Based Education
Demonstration Project Act of 2014''.
SEC. 2. COMPETENCY-BASED EDUCATION DEMONSTRATION PROJECTS.
(a) Projects.--Part G of title IV of the Higher Education Act of
1965 (20 U.S.C. 1088 et seq.) is amended by inserting after section
486A the following:
``SEC. 486B. COMPETENCY-BASED EDUCATION DEMONSTRATION PROJECTS.
``(a) Demonstration Projects Authorized.--The Secretary shall
select, in accordance with subsection (c), eligible entities to
voluntarily carry out competency-based education demonstration projects
and receive waivers described in subsection (d) to carry out such
projects.
``(b) Application.--
``(1) In general.--Each eligible entity desiring to carry
out a demonstration project under this section shall submit an
application to the Secretary, at such time and in such manner
as the Secretary may require.
``(2) Outreach.--The Secretary shall, prior to any deadline
to submit applications under paragraph (1), conduct outreach to
historically Black colleges and universities, Hispanic-serving
institutions, Native American-serving, nontribal institutions,
institutions serving students with special needs, and
institutions located in rural areas to provide those
institutions with information on the opportunity to apply to
carry out a demonstration project under this section.
``(3) Amendments.--
``(A) In general.--An eligible entity that has been
selected to carry out a demonstration project under
this section may submit to the Secretary amendments to
the eligible entity's approved application under
paragraph (1), at such time and in such manner as the
Secretary may require, which the Secretary shall
approve or deny within 15 days of receipt.
``(B) Expanding enrollment.--Notwithstanding the
assurance required with respect to maximum enrollment
under paragraph (3)(H)--
``(i) an eligible entity whose
demonstration project has been evaluated under
subsection (f)(2) not less than twice may
submit to the Secretary an amendment to the
eligible entity's application under paragraph
(1) to increase enrollment in the project to
more than 3,000 students, but not more than
5,000 students, and which shall specify--
``(I) the proposed maximum
enrollment or annual enrollment growth
for the project;
``(II) how the eligible entity will
successfully carry out the project with
such maximum enrollment or enrollment
growth; and
``(III) any other amendments to the
eligible entity's application under
paragraph (1) that are related to such
maximum enrollment or enrollment
growth; and
``(ii) the Secretary shall determine
whether to approve or deny an amendment
submitted under clause (i) for a demonstration
project based on the project's evaluations
under subsection (f)(2).
``(4) Contents.--Each application shall include--
``(A) a description of the competency-based
education to be offered by the eligible entity under
the demonstration project;
``(B) a description of the proposed academic
delivery, business, and financial models for the
demonstration project, including explanations of how
competency-based education offered under the
demonstration project would--
``(i) result in the achievement of
competencies;
``(ii) differ from standard credit hour
approaches, in whole or in part; and
``(iii) result in lower costs or shortened
time to degree, certificate, or credential
completion;
``(C) a description of how the competency-based
education offered under the demonstration project will
progress a student toward completion of a degree,
certificate, or credential;
``(D) a description of how the eligible entity will
articulate the transcript from the competency-based
education demonstration project to another program
within an institution of higher education that is part
of the eligible entity or to another institution of
higher education;
``(E) a description of the statutory and regulatory
requirements described in subsection (d) for which the
eligible entity is seeking a waiver, and why such
waiver is necessary to carry out the demonstration
project;
``(F) a description of how the eligible entity will
develop and evaluate the competencies and assessments
of student knowledge (which may include prior-learning
assessments) administered as part of the demonstration
project, including how such competencies and
assessments are aligned with workforce needs;
``(G) a description of the proposal for determining
a student's Federal student aid eligibility under this
title for participating in the demonstration project,
the award and distribution of such aid, and safeguards
to ensure that students are making satisfactory
progress that warrants disbursement of such aid;
``(H) a description of the students to whom
competency-based education will be offered, including
an assurance that the demonstration project will enroll
a minimum of 50 and a maximum of 3,000 students;
``(I) an assurance that students participating in
the demonstration project will not be eligible for more
Federal assistance under this title than such students
would have been eligible for under a traditional
program;
``(J) an assurance the eligible entity will
identify and disseminate best practices with respect to
the demonstration project to other eligible entities
carrying out a demonstration project under this
section; and
``(K) A description of the population of students
served by the eligible entity that are veterans or
members of the Armed Forces and how such eligible
entity will, when appropriate, incorporate the specific
needs of such population when carrying out the
demonstration project.
``(c) Selection.--
``(1) In general.--Not later than 6 months after the date
of enactment of this section, the Secretary shall select not
more than 30 eligible entities to carry out a competency-based
education demonstration project under this section.
``(2) Considerations.--In selecting eligible entities under
paragraph (1), the Secretary shall--
``(A) prioritize projects which show promise in
reducing the time or cost required to complete a
degree, certificate, or credential;
``(B) consider the number and quality of
applications received;
``(C) consider an eligible entity's--
``(i) ability to successfully execute the
demonstration project as described in the
eligible entity's application under subsection
(b);
``(ii) commitment and ability to
effectively finance the demonstration project;
``(iii) ability to provide administrative
capability and the expertise to evaluate
student progress based on measures other than
credit hours or clock hours; and
``(iv) commitment to work with the
Secretary to evaluate the demonstration project
and the impact of the demonstration project;
``(D) ensure the selection of a diverse group of
eligible entities with respect to size, mission, and
geographic distribution of the eligible entities;
``(E) not limit the types of programs of study or
courses of study approved for participation in a
demonstration project; and
``(F) not select an eligible entity that has had,
for 1 of the preceding 2 fiscal years--
``(i) a cohort default rate (defined in
section 435(m)) that is 30 percent or greater;
and
``(ii) a borrowing rate of loans under this
title of more than 50 percent of the students
enrolled at institutions of higher education of
the eligible entity.
``(d) Waivers.--The Secretary may waive for any eligible entity
selected to carry out a demonstration project under this section any
requirements of the following provisions of law (including any
regulations promulgated under such provisions) or regulations and for
which the eligible entity has provided a reason for waiving under
subsection (b)(3)(E):
``(1) Subparagraphs (A) and (B) of section 102(a)(3).
``(2) Subsections (a) and (b) of section 481, as such
subsections relate to requirements for a minimum number of
weeks of instruction.
``(3) Section 484(l)(1).
``(4) Section 668.32(a)(1)(iii) of title 34, Code of
Federal Regulations.
``(5) Any of the requirements under provisions in title I,
part F of this title, or this part, that inhibit the operation
of competency-based education, including requirements with
respect to--
``(A) documenting attendance;
``(B) weekly academic activity;
``(C) minimum weeks of instructional time;
``(D) requirements for credit hour or clock hour
equivalencies;
``(E) requirements for substantive interaction with
faculty; and
``(F) definitions of the terms `academic year',
`full-time student', `term' (including `standard term',
`non-term', and `non-standard term'), `satisfactory
academic progress', `educational activity', `project of
study', and `payment period'.
``(e) Notification.--Not later than 6 months after the date of
enactment of this section, the Secretary shall make available to the
authorizing committees and the public a list of eligible entities
selected to carry out a demonstration project under this section, which
shall include for each such eligible entity--
``(1) the specific statutory and regulatory requirements
being waived under subsection (d); and
``(2) a description of the competency-based education
programs of study or courses of study to be offered under the
project.
``(f) Information and Evaluation.--
``(1) Information.--
``(A) In general.--Each eligible entity that
carries out a demonstration project under this section
shall provide to the Director of the Institute of
Education Sciences with respect to the students
participating in the competency-based education project
carried out by the eligible entity the following
information:
``(i) The average number of credit hours
the students earned prior to enrollment in the
demonstration project, if applicable.
``(ii) The number and percentage of
students participating in the demonstration
project that are also enrolled in programs of
study or courses of study offered in credit
hours or clock hours, disaggregated by student
status as a first-year, second-year, third-
year, fourth-year, or other student.
``(iii) The average period of time between
the enrollment of a student in the
demonstration project and the first assessment
of student knowledge of such student.
``(iv) The average time to 25 percent, 50
percent, 75 percent, and 100 percent of the
completion of a degree, certificate, or
credential by a student who participated in the
demonstration project.
``(v) The percentage of assessments of
student knowledge that students passed on the
first attempt, during the period of the
participation in the demonstration project by
the students.
``(vi) The percentage of assessments of
student knowledge that students passed on the
second attempt and the average period of time
between the first and second attempts by
students, during the period of the
participation in the demonstration project by
the students.
``(vii) The average number of competencies
a student acquired while participating in the
demonstration project and the period of time
during which the student acquired such
competencies.
``(viii) Such other information as the
Director may reasonably require.
``(B) Employment data.--
``(i) In general.--Each eligible entity
that carries out a demonstration project under
this section may provide to the Director of the
Institute of Education Sciences with respect to
the students participating in the competency-
based education project carried out by the
eligible entity the number and percentage of
students completing a competency-based
education program or course of study offered by
such eligible entity who find employment in a
field related to the program or course of study
of such students.
``(ii) Technical assistance.--The Director
of the Institute of Education Sciences shall,
at the request of an eligible entity, provide
technical assistance to such eligible entity to
assist such eligible entity in collecting and
reporting accurate information relating to the
employment of students participating in a
competency-based education project carried out
by such eligible entity.
``(C) Disaggregation.--Each eligible entity shall
provide the information required under subparagraph (A)
disaggregated by age, race, gender, disability status,
and status as a recipient of a Federal Pell Grant,
provided that the disaggregation of the information
does not identify any individual student participating
in the demonstration project.
``(2) Evaluation.--The Director of the Institute of
Education Sciences, in consultation with the Secretary, shall
annually evaluate each demonstration project under this
section. Each evaluation shall include--
``(A) the extent to which the eligible entity has
met the goals set forth in its application to the
Secretary;
``(B) the number and types of students
participating in the competency-based education offered
under the project, including the progress of
participating students toward completion of a degree,
certificate, or credential, and the extent to which
participation and retention in such project increased;
``(C) whether the project led to reduced cost or
time to completion of a degree, certificate, or
credential, and the amount of cost or time reduced for
such completion;
``(D) obstacles related to student financial
assistance for competency-based education;
``(E) the extent to which statutory or regulatory
requirements not waived under subsection (d) present
difficulties for students or institutions of higher
education;
``(F) degree, certificate, or credential completion
rates;
``(G) retention rates;
``(H) total cost and net cost to the student of the
competency-based education offered under the project;
``(I) a description of the assessments of student
knowledge and the corresponding competencies; and
``(J) outcomes of the assessments of student
knowledge.
``(3) Annual report.--The Director of the Institute of
Education Sciences shall annually provide to the authorizing
committees a report on--
``(A) the evaluations of the demonstration projects
required under paragraph (2);
``(B) the number and types of students receiving
assistance under this title for competency-based
education under such projects;
``(C) the retention and completion rates of
students participating in such projects;
``(D) any proposed statutory or regulatory changes
designed to support and enhance the expansion of
competency-based education, which may be independent of
or combined with traditional credit hour or clock hour
projects;
``(E) the most effective means of delivering
competency-based education through demonstration
projects; and
``(F) the appropriate level and distribution
methodology of Federal assistance under this title for
students enrolled in competency-based education.
``(g) Oversight.--In carrying out this section, the Secretary
shall, on a continuing basis--
``(1) assure compliance of eligible entities with the
requirements of this title (other than the provisions of law
and regulations that are waived under subsection (d));
``(2) provide technical assistance;
``(3) monitor fluctuations in the student population
enrolled in the eligible entities carrying out the
demonstration projects under this section;
``(4) consult with appropriate accrediting agencies or
associations and appropriate State regulatory authorities for
additional ways of improving the delivery of competency-based
education; and
``(5) collect and disseminate to eligible entities carrying
out a demonstration project under this section, best practices
with respect to demonstration projects under this section.
``(h) Disclosure of Authorization to Sell Student Data.--An
eligible entity carrying out a demonstration project under this section
shall ensure that each institution of higher education of the eligible
entity provides to each student, or the parents of each minor student,
enrolled in the institution of higher education--
``(1) a disclosure letter, which describes the personally
identifiable information of the student that may be sold by a
person with whom the institution of higher education has an
agreement to provide software applications for students; and
``(2) an option to opt-out of such personally identifiable
information from being sold.
``(i) Definitions.--For the purpose of this section:
``(1) Competency-based education.--The term `competency-
based education' means an educational process or program that
measures knowledge, skills, and experience through assessments
of such knowledge, skills, or experience in place of or in
addition to the use of credit hours or clock hours.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) an institution of higher education including
an institution of higher education that offers a dual-
enrollment program under which a secondary school
student is able simultaneously to earn credit toward a
secondary school diploma and a postsecondary degree,
certificate, or credential;
``(B) a system of institutions of higher education;
or
``(C) a consortium of institutions of higher
education.
``(3) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 102, except that such term does not include
institutions described in section 102(a)(1)(C).''.
(b) Rule of Construction.--Nothing in this Act or the amendments
made by this Act shall be construed to alter the authority of the
Secretary of Education to establish experimental sites under any other
provision of law.
(c) Report.--The Secretary of Education shall report to Congress,
every 10 years, on the needs of limited English proficient students
using the Free Application for Federal Student Aid.
(d) Funding.--
(1) Use of existing funds.--Of the amount authorized to be
appropriated for salaries and expenses of the Department of
Education, $1,000,000 shall be available to carry out this Act
and the amendments made by this Act.
(2) No additional funds authorized.--No funds are
authorized to be appropriated by this Act to carry out this Act
or the amendments made by this Act.
SEC. 3. HIGHER EDUCATION REGULATORY REFORM TASK FORCE.
(a) Task Force Established.--Not later than 2 months after the date
of enactment of this Act, the Secretary of Education shall establish
the Higher Education Regulatory Reform Task Force.
(b) Membership.--The Higher Education Regulatory Reform Task Force
shall include--
(1) the Secretary of Education or the Secretary's designee;
(2) a representative of the Advisory Committee on Student
Financial Assistance established under section 491 of the
Higher Education Act of 1965 (20 U.S.C. 1098); and
(3) representatives from the higher education community,
including--
(A) institutions of higher education, with equal
representation of public and private nonprofit
institutions, and two-year and four-year institutions,
and with not less than 25 percent of such
representative institutions carrying out distance
education programs; and
(B) nonprofit organizations representing
institutions of higher education.
(c) Activities.--
(1) Report required.--Not later than 6 months after the
date of enactment of this Act, the Secretary of Education shall
submit to Congress and make available on a publicly available
website a report (in this section referred to as the ``Higher
Education Regulatory Reform Report'') prepared by the Higher
Education Regulatory Reform Task Force on Department of
Education regulatory requirements for institutions of higher
education described in paragraph (2).
(2) Contents of report.--The Higher Education Regulatory
Reform Report shall contain the following with respect to
Department of Education regulatory requirements for
institutions of higher education:
(A) A list of rules that are determined to be
outmoded, duplicative, ineffective, or excessively
burdensome.
(B) For each rule listed in accordance with
subparagraph (A) and that is in effect at the time of
the review under subparagraph (A), an analysis of
whether the costs outweigh the benefits for such rule.
(C) Recommendations to consolidate, modify,
simplify, or repeal such rules to make such rules more
effective or less burdensome.
(D) A description of the justification for and
impact of the recommendations described in subparagraph
(C), as appropriate and available, including supporting
data for such justifications and the financial impact
of such recommendations on institutions of higher
education of varying sizes and types.
(E) Recommendations on the establishment of a
permanent entity to review new Department of Education
regulatory requirements affecting institutions of
higher education.
(3) Notice and comment.--At least 30 days before submission
of the Higher Education Regulatory Reform Report required under
paragraph (1), the Secretary of Education shall publish the
report in the Federal Register for public notice and comment.
The Higher Education Regulatory Reform Task Force may modify
the report in response to any comments received before
submission of the report to Congress.
(d) Definition of Institution of Higher Education.--For the
purposes of this section, the term ``institution of higher education''
has the meaning given such term in section 102 of the Higher Education
Act of 1965 (20 U.S.C. 1002), except that such term does not include
institutions described in subsection (a)(1)(C) of such section 102.
SEC. 4. STUDY ON USE OF INDIVIDUAL INCOME TAX RETURNS AS PRIMARY
APPLICATION FOR FEDERAL STUDENT AID.
Section 483 of the Higher Education Act of 1965 (20 U.S.C. 1090) is
amended by adding at the end the following new subsection:
``(i) Study on Use of Individual Income Tax Returns as Primary
Application for Federal Student Aid.--
``(4) Study.--The Secretary of Education, in consultation
with the Commissioner of Internal Revenue, shall conduct a
study on the feasibility and advantages and disadvantages of
using individual income tax returns as the primary form of
application for student aid under the Higher Education Act of
1965 (20 U.S.C. 1001 et seq.).
``(5) Report.--Not later than one year after the date of
the enactment of this subsection, the Secretary, in
consultation with the Commissioner, shall submit to Congress a
report containing the results of the study conducted under
subsection (a).''.
Passed the House of Representatives July 23, 2014.
Attest:
Clerk.
113th CONGRESS
2d Session
H. R. 3136
_______________________________________________________________________
AN ACT
To establish a demonstration program for competency-based education.