[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1682 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 1682
To provide consumer protections for students.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 21, 2023
Mr. Krishnamoorthi introduced the following bill; which was referred to
the Committee on Education and the Workforce, and in addition to the
Committees on Armed Services, and Veterans' Affairs, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To provide consumer protections for students.
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 ``Protecting Students from Worthless
Degrees Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Federal financial assistance program.--The term
``Federal financial assistance program'' means a program
authorized and funded by the Federal Government under any of
the following provisions of law:
(A) Title IV of the Higher Education Act of 1965
(20 U.S.C. 1070 et seq.).
(B) Title I of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3111 et seq.).
(C) The Adult Education and Family Literacy Act (29
U.S.C. 3271 et seq.).
(D) Chapter 30, 31, 32, 33, 34, 35, or 36 of title
38, United States Code.
(E) Chapter 101, 105, 106A, 1606, 1607, or 1608 of
title 10, United States Code.
(F) Section 1784a, 2005, or 2007 of title 10,
United States Code.
(2) Freely associated states.--The term ``freely associated
States'' means the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau.
(3) Institution of higher education.--The term
``institution of higher education''--
(A) with respect to a program authorized under
paragraph (1)(A), has the meaning given the term in
section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002);
(B) with respect to a program authorized under
paragraph (1)(B), has the meaning given the term in
section 3 of the Workforce Innovation and Opportunity
Act (29 U.S.C. 3102);
(C) with respect to a program authorized under
paragraph (1)(C), has the meaning given the term
``postsecondary educational institution'' under section
203 of the Adult Education and Family Literacy Act (29
U.S.C. 3272);
(D) with respect to a program authorized under
paragraph (1)(D), has the meaning given the term
``educational institution'' under section 3452 of title
38, United States Code;
(E) with respect to a program authorized under
paragraph (1)(E), means an educational institution that
awards a degree or certificate and is located in any
State; and
(F) with respect to a program authorized under
paragraph (1)(F), means an educational institution that
awards a degree or certificate and is located in any
State.
(4) State.--The term ``State'' includes, in addition to the
several States of the United States, the Commonwealth of Puerto
Rico, the District of Columbia, Guam, American Samoa, the
United States Virgin Islands, the Commonwealth of the Northern
Mariana Islands, and the freely associated States.
SEC. 3. PROTECTIONS IN OCCUPATIONS REQUIRING STATE LICENSURE.
Notwithstanding any other provision of law, an institution of
higher education is not eligible to participate in a Federal financial
assistance program with respect to any program of postsecondary
education or training, including a degree or certificate program and
any program offered by distance education or correspondence courses to
students located in a State other than where the institution is
physically located, that is designed to prepare students for entry into
a recognized occupation or profession that requires licensing or other
established requirements as a pre-condition for entry into such
occupation or profession, unless, by not later than 1 year after the
date of enactment of this Act--
(1) the successful completion of the program fully
qualifies a student, in the metropolitan statistical area in
which the student resides, in the State in which the student
resides, and in any State in which the institution indicates,
through advertising or marketing activities or direct contact
with potential students, that a student will be prepared to
work in the occupation or profession after successfully
completing the program, to--
(A) take any examination required for entry into
the recognized occupation or profession in the
metropolitan statistical area and any State described
in this paragraph, including satisfying all Federal,
State, or professionally mandated programmatic and
specialized accreditation requirements, if any; and
(B) be certified or licensed or meet any other
academically related pre-conditions that are required
for entry into the recognized occupation or profession
in any such State; and
(2) the institution offering the program provides timely
placement for all of the academically related pre-licensure
requirements for entry into the recognized occupation or
profession, such as clinical placements, internships, or
apprenticeships.
SEC. 4. CERTIFICATION REQUIREMENTS FOR GAINFUL EMPLOYMENT PROGRAMS.
Section 487 of the Higher Education Act of 1965 (20 U.S.C. 1094) is
amended--
(1) in subsection (a), by adding at the end the following:
``(30) The institution will--
``(A) provide to the Secretary not later than the
first December 31 following the date of enactment of
the Protecting Students from Worthless Degrees Act (or,
for any institution that does not have an active
program participation agreement as of such date, the
first December 31 after the institution enters into the
agreement), in accordance with procedures established
by the Secretary, a certification signed by the most
senior executive officer of the institution that the
institution and each of the eligible gainful employment
programs included on the eligibility and certification
approval report of the institution under subpart 3 of
part H meet the requirements of subsection (k);
``(B) include with its certification an explanation
of how each eligible gainful employment program is not
substantially similar to any ineligible or discontinued
program described in subsection (k)(2)(D); and
``(C) update the certification within 10 days if
there are any changes in the approvals for an eligible
gainful employment program, or other changes for an
eligible gainful employment program that make the
existing certification no longer accurate.''; and
(2) by adding at the end the following:
``(k) Certification Requirements for Gainful Employment Programs.--
``(1) Definition of gainful employment program.--The term
`gainful employment program' means a program of training that--
``(A) in order to qualify for assistance under this
title, is required under subsection (b)(1)(A)(i) or
(c)(1)(A) of section 102, or section 101(b)(1), to
satisfy gainful employment requirements; and
``(B) is offered by an institution eligible to
receive assistance under this title.
``(2) In general.--Each eligible gainful employment program
included on the eligibility and certification approval report
of an institution of higher education shall comply with each of
the following:
``(A) The gainful employment program is approved by
a recognized accrediting agency or is otherwise
included in the institution's accreditation by its
recognized accrediting agency, or, if the institution
is a public postsecondary vocational institution, the
program is approved by a recognized State agency for
the approval of public postsecondary vocational
education in lieu of accreditation.
``(B) The gainful employment program is
programmatically accredited, if such accreditation is
required by--
``(i) a Federal governmental entity;
``(ii) a governmental entity in the State
in which the institution is located; or
``(iii) a governmental entity in a State in
which the institution is not physically
located, if the institution--
``(I) offers postsecondary
education through distance education or
correspondence courses to students
located in that State; or
``(II) is otherwise subject to that
State's jurisdiction, as determined by
that State.
``(C) The gainful employment program satisfies the
applicable educational prerequisites for professional
licensure or certification requirements in the State in
which the institution is located or a State described
in subparagraph (B)(iii), so that a student who
completes the program and seeks employment in any such
State qualifies to take any licensure or certification
examination that is needed for the student to practice
or find employment in an occupation that the program
prepares students to enter.
``(D) The gainful employment program is not
substantially similar to a program offered by the
institution that, in any of the 3 years prior to the
date of the eligibility and certification approval
report--
``(i) became ineligible for funding under
this title due to a debt to earning rates
measure, or any subsequent outcome measure,
that the Secretary determines serves the best
interests of students and taxpayers; and
``(ii) was voluntarily discontinued by the
institution.
``(3) Requirements ensuring student awareness.--Before an
institution offering a gainful employment program enrolls any
student who intends to reside, practice, or seek employment in
a State for which the program does not satisfy the applicable
educational prerequisites for professional licensure or
certification requirements needed for that occupation in that
State, the institution shall--
``(A) notify the student that the gainful
employment program does not satisfy the prerequisites;
and
``(B) obtain from the student a handwritten
statement, in the student's own words and signed by the
student, acknowledging that the student wishes to
enroll in the gainful employment program despite
knowing that the gainful employment program does not
meet the licensure or certification requirements for
the occupation in the State in which the student
intends to reside, practice, or seek employment.
``(4) Requirements regarding reestablishment of
eligibility.--The institution shall not seek to reestablish the
eligibility of a gainful employment program that is ineligible
for funding under this subsection until not less than 3 years
following the date specified in the notice of determination
informing the institution of the program's ineligibility.''.
SEC. 5. STATE AUTHORIZATION REQUIREMENTS FOR DISTANCE EDUCATION
PROGRAMS.
Section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001(a))
is amended--
(1) in subsection (a)(2), by inserting ``, in accordance
with subsection (d)'' before the semicolon; and
(2) by adding at the end the following:
``(d) State Authorization.--
``(1) In general.--An institution that offers postsecondary
education through distance education or correspondence courses
shall meet the requirements of subsection (a)(2) by being
legally authorized within each State in which the institution's
enrolled students are located, subject to paragraph (2).
``(2) State authorization reciprocity agreements.--An
institution described in paragraph (1) that is located in a
State that participates in a State authorization reciprocity
agreement with another State and that is covered by such State
authorization reciprocity agreement, is considered to meet
State requirements for the institution to be legally offering
postsecondary distance education or correspondence courses in
the other State--
``(A) subject to any additional requirements of
that State; and
``(B) if the institution documents, in the manner
required by the Secretary, that each State in which the
institution's enrolled students are located has a State
process--
``(i) to review and take appropriate action
on complaints from any of such enrolled
students concerning the institution, including
enforcing applicable State law; and
``(ii) to make the complaints public.
``(3) State authorization reciprocity agreement defined.--
In this subsection, the term `State authorization reciprocity
agreement' means an agreement between 2 or more States that--
``(A) authorizes an institution located and legally
authorized in a State covered by the agreement to
provide postsecondary education through distance
education or correspondence courses to students located
in other States covered by the agreement; and
``(B) does not prohibit any State in the agreement
from enforcing the State's own statutes and
regulations, regardless as to whether such statutes and
regulations are general and apply to all educational
institutions or specifically directed at a subset of
educational institutions.''.
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