[Congressional Record Volume 160, Number 54 (Thursday, April 3, 2014)]
[Senate]
[Pages S2162-S2165]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. DURBIN (for himself, Mr. Harkin, and Mr. Brown):
S. 2204. A bill to establish the Proprietary Education Oversight
Coordination Committee; to the Committee on Health, Education, Labor,
and Pensions.
Mr. DURBIN. Mr. President, I ask unanimous consent that the text of
the bill be printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 2204
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 ``Proprietary Education
Oversight Coordination Improvement Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Executive officer.--The term ``executive officer'',
with respect to a proprietary institution of higher education
that is a publicly traded corporation, means--
(A) the president of such corporation;
(B) a vice president of such corporation who is in charge
of a principal business unit, division, or function of such
corporation, such as sales, administration, or finance; or
(C) any other officer or person who performs a policy
making function for such corporation.
(2) Federal education assistance.--The term ``Federal
education assistance'' means any Federal financial assistance
provided under any Federal law through a grant, a contract, a
subsidy, a loan, a guarantee, an insurance, or any other
means to a proprietary institution of higher education,
including Federal financial assistance that is disbursed or
delivered to such institution, on behalf of a student, or to
a student to be used to attend such institution, except that
such term shall not include any monthly housing stipend
provided under chapter 33 of title 38, United States Code.
(3) Private education loan.--The term ``private education
loan''--
(A) means a loan provided by a private educational lender
(as defined in section 140(a) of the Truth in Lending Act (15
U.S.C. 1650(a))) that--
(i) is not made, insured, or guaranteed under title IV of
the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.);
(ii) is issued expressly for postsecondary educational
expenses to a borrower, regardless of whether the loan is
provided through the educational institution that the subject
student attends or directly to the borrower from the private
educational lender (as so defined); and
(iii) is not made, insured, or guaranteed under title VII
or title VIII of the Public Health Service Act (42 U.S.C. 292
et seq. and 296 et seq.); and
(B) does not include an extension of credit under an open
end consumer credit plan, a reverse mortgage transaction, a
residential mortgage transaction, or any other loan that is
secured by real property or a dwelling.
(4) Proprietary institution of higher education.--The term
``proprietary institution of higher education'' has the
meaning
[[Page S2163]]
given the term in section 102(b) of the Higher Education Act
of 1965 (20 U.S.C. 1002(b)).
(5) Recruiting and marketing activities.--
(A) In general.--Except as provided in subparagraph (B),
the term ``recruiting and marketing activities'' means
activities that consist of the following:
(i) Advertising and promotion activities, including paid
announcements in newspapers, magazines, radio, television,
billboards, electronic media, naming rights, or any other
public medium of communication, including paying for displays
or promotions at job fairs, military installations, or
college recruiting events.
(ii) Efforts to identify and attract prospective students,
either directly or through a contractor or other third party,
including contact concerning a prospective student's
potential enrollment or application for a grant, a loan, or
work assistance under title IV of the Higher Education Act of
1965 (20 U.S.C. 1070 et seq.) or participation in
preadmission or advising activities, including--
(I) paying employees responsible for overseeing enrollment
and for contacting potential students in-person, by phone, by
email, or by other internet communications regarding
enrollment; and
(II) soliciting an individual to provide contact
information to an institution of higher education, including
through websites established for such purpose and funds paid
to third parties for such purpose.
(iii) Such other activities as the Secretary of Education
may prescribe, including paying for promotion or sponsorship
of education or military-related associations.
(B) Exceptions.--Any activity that is required as a
condition of receipt of funds by an institution under title
IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et
seq.), is specifically authorized under such title, or is
otherwise specified by the Secretary of Education, shall not
be considered to be a recruiting and marketing activity under
subparagraph (A).
(6) State approval agency.--The term ``State approval
agency'' means any State agency that determines whether an
institution of higher education is legally authorized within
such State to provide a program of education beyond secondary
education.
(7) Veterans service organization.--The term ``veterans
service organization'' means an organization recognized by
the Secretary of Veterans Affairs for the representation of
veterans under section 5902 of title 38, United States Code.
SEC. 3. ESTABLISHMENT OF COMMITTEE.
(a) Establishment.--There is established a committee to be
known as the ``Proprietary Education Oversight Coordination
Committee'' (referred to in this Act as the ``Committee'')
and to be composed of the head (or the designee of such head)
of each of the following Federal entities:
(1) The Department of Education.
(2) The Consumer Financial Protection Bureau.
(3) The Department of Justice.
(4) The Securities and Exchange Commission.
(5) The Department of Defense.
(6) The Department of Veterans Affairs.
(7) The Federal Trade Commission.
(8) The Department of Labor.
(9) The Internal Revenue Service.
(10) At the discretion of the President, any other relevant
Federal agency or department.
(b) Purposes.--The Committee shall have the following
purposes:
(1) Coordinate Federal oversight of proprietary
institutions of higher education to--
(A) improve enforcement of applicable Federal laws and
regulations;
(B) increase accountability of proprietary institutions of
higher education to students and taxpayers; and
(C) ensure the promotion of quality education programs.
(2) Coordinate Federal activities to protect students from
unfair, deceptive, abusive, unethical, fraudulent, or
predatory practices, policies, or procedures of proprietary
institutions of higher education.
(3) Encourage information sharing among agencies related to
Federal investigations, audits, or inquiries of proprietary
institutions of higher education.
(4) Increase coordination and cooperation between Federal
and State agencies, including State Attorneys General and
State approval agencies, with respect to improving oversight
and accountability of proprietary institutions of higher
education.
(5) Develop best practices and consistency among Federal
and State agencies in the dissemination of consumer
information regarding proprietary institutions of higher
education to ensure that students, parents, and other
stakeholders have easy access to such information.
(c) Membership.--
(1) Designees.--For any designee described in subsection
(a), the head of the member entity shall appoint a high-level
official who exercises significant decision making authority
for the oversight or investigatory activities and
responsibilities related to proprietary institutions of
higher education of the respective Federal entity of such
head.
(2) Chairperson.--The Secretary of Education or the
designee of such Secretary shall serve as the Chairperson of
the Committee.
(3) Committee support.--The head of each entity described
in subsection (a) shall ensure appropriate staff and
officials of such entity are available to support the
Committee-related work of such entity.
SEC. 4. MEETINGS.
(a) Committee Meetings.--The members of the Committee shall
meet regularly, but not less than once during each quarter of
each fiscal year, to carry out the purposes described in
section 3(b).
(b) Meetings With State Agencies and Stakeholders.--The
Committee shall meet not less than once each fiscal year, and
shall otherwise interact regularly, with State Attorneys
General, State approval agencies, veterans service
organizations, and consumer advocates to carry out the
purposes described in section 3(b).
SEC. 5. REPORT.
(a) In General.--The Committee shall submit a report each
year to the Committee on Health, Education, Labor, and
Pensions of the Senate, the Committee on Education and the
Workforce of the House of Representatives, and any other
committee of Congress that the Committee determines
appropriate.
(b) Public Access.--The report described in subsection (a)
shall be made available to the public in a manner that is
easily accessible to parents, students, and other
stakeholders in accordance with the best practices developed
under section 3(b)(5).
(c) Contents.--
(1) In general.--The report shall include--
(A) an accounting of any action (as defined in paragraph
(3)) taken by the Federal Government, any member entity of
the Committee, or a State--
(i) to enforce Federal or State laws and regulations
applicable to proprietary institutions of higher education;
(ii) to hold proprietary institutions of higher education
accountable to students and taxpayers; and
(iii) to promote quality education programs;
(B) a summary of complaints against each proprietary
institution of higher education received by any member entity
of the Committee;
(C) the data described in paragraph (2) and any other data
relevant to proprietary institutions of higher education that
the Committee determines appropriate; and
(D) recommendations of the Committee for such legislative
and administrative actions as the Committee determines are
necessary to--
(i) improve enforcement of applicable Federal laws;
(ii) increase accountability of proprietary institutions of
higher education to students and taxpayers; and
(iii) ensure the promotion of quality education programs.
(2) Data.--
(A) Industry-wide data.--The report shall include data on
all proprietary institutions of higher education that
consists of information regarding--
(i) the total amount of Federal education assistance that
proprietary institutions of higher education received for the
previous academic year, and the percentage of the total
amount of Federal education assistance provided to
institutions of higher education (as defined in section 102
of the Higher Education Act of 1965 (20 U.S.C. 1002)) for
such previous academic year that reflects such total amount
of Federal education assistance provided to proprietary
institutions of higher education for such previous academic
year;
(ii) the total amount of Federal education assistance that
proprietary institutions of higher education received for the
previous academic year, disaggregated by--
(I) educational assistance in the form of a loan provided
under title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.);
(II) educational assistance in the form of a grant provided
under title IV of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.);
(III) educational assistance provided under chapter 33 of
title 38, United States Code;
(IV) tuition assistance provided under section 2007 of
title 10, United States Code;
(V) assistance provided under section 1784a of title 10,
United States Code; and
(VI) Federal education assistance not described in
subclauses (I) through (V);
(iii) the percentage of the total amount of Federal
education assistance provided to institutions of higher
education (as defined in section 102 of the Higher Education
Act of 1965 (20 U.S.C. 1002)) for such previous academic year
for each of the programs described in subclauses (I) through
(V) of clause (ii) that reflects such total amount of Federal
education assistance provided to proprietary institutions of
higher education for such previous academic year for each of
such programs;
(iv) the average retention and graduation rates for
students pursuing a degree at proprietary institutions of
higher education;
(v) the average cohort default rate (as defined in section
435(m) of the Higher Education Act of 1965 (20 U.S.C.
1085(m)) for proprietary institutions of higher education,
and an annual list of cohort default rates (as defined in
such section) for all proprietary institutions of higher
education;
(vi) for careers requiring the passage of a licensing
examination--
(I) the passage rate of individuals who attended a
proprietary institution of higher education taking such
examination to pursue such a career; and
(II) the passage rate of all individuals taking such exam
to pursue such a career; and
[[Page S2164]]
(vii) the use of private education loans at proprietary
institutions of higher education that includes--
(I) an estimate of the total number of such loans; and
(II) information on the average debt, default rate, and
interest rate of such loans.
(B) Data on publicly traded corporations.--
(i) In general.--The report shall include data on
proprietary institutions of higher education that are
publicly traded corporations, consisting of information on--
(I) any pre-tax profit of such proprietary institutions of
higher education--
(aa) reported as a total amount and an average percent of
revenue for all such proprietary institutions of higher
education; and
(bb) reported for each such proprietary institution of
higher education;
(II) revenue for such proprietary institutions of higher
education spent on recruiting and marketing activities,
student instruction, and student support services, reported--
(aa) as a total amount and an average percent of revenue
for all such proprietary institutions of higher education;
and
(bb) for each such proprietary institution of higher
education;
(III) total compensation packages of the executive officers
of each such proprietary institution of higher education;
(IV) a list of institutional loan programs offered by each
such proprietary institution of higher education that
includes information on the default and interest rates of
such programs; and
(V) the data described in clauses (ii) and (iii).
(ii) Disaggregated by ownership.--The report shall include
data on proprietary institutions of higher education that are
publicly traded corporations, disaggregated by corporate or
parent entity, brand name, and campus, consisting of--
(I) the total cost of attendance for each program at each
such proprietary institution of higher education, and
information comparing such total cost for each such program
to--
(aa) the total cost of attendance for each program at each
public institution of higher education; and
(bb) the average total cost of attendance for each program
at all institutions of higher education, including such
institutions that are public and such institutions that are
private;
(II) total enrollment, disaggregated by--
(aa) individuals enrolled in programs taken online; and
(bb) individuals enrolled in programs that are not taken
online;
(III) the average retention and graduation rates for
students pursuing a degree at such proprietary institutions
of higher education;
(IV) the percentage of students enrolled in such
proprietary institutions of higher education who complete a
program of such an institution within--
(aa) the standard period of completion for such program;
and
(bb) a period that is 150 percent of such standard period
of completion;
(V) the total cost of attendance for each program at such
proprietary institutions of higher education;
(VI) the average cohort default rate, as defined in section
435(m) of the Higher Education Act of 1965 (20 U.S.C.
1085(m)), for such proprietary institutions of higher
education, and an annual list of cohort default rates (as
defined in such section) for all proprietary institutions of
higher education;
(VII) the median educational debt incurred by students who
complete a program at such a proprietary institution of
higher education;
(VIII) the median educational debt incurred by students who
start but do not complete a program at such a proprietary
institution of higher education;
(IX) the job placement rate for students who complete a
program at such a proprietary institution of higher education
and the type of employment obtained by such students;
(X) for careers requiring the passage of a licensing
examination, the rate of individuals who attended such a
proprietary institution of higher education and passed such
an examination; and
(XI) the number of complaints from students enrolled in
such proprietary institutions of higher education who have
submitted a complaint to any member entity of the Committee.
(iii) Department of defense and veterans affairs
assistance.--
(I) In general.--To the extent practicable, the report
shall provide information on the data described in clause
(ii) for individuals using, to pay for the costs of attending
such a proprietary institution of higher education, Federal
education assistance provided under--
(aa) chapter 33 of title 38, United States Code;
(bb) section 2007 of title 10, United States Code; and
(cc) section 1784a of title 10, United States Code.
(II) Revenue.--The report shall provide information on the
revenue of proprietary institutions of higher education that
are publicly traded corporations that is derived from the
Federal education assistance described in subclause (I).
(C) Comparison data.--To the extent practicable, the report
shall provide information comparing the data described in
subparagraph (B) for proprietary institutions of higher
education that are publicly traded corporations with such
data for public institutions of higher education
disaggregated by State.
(3) Accounting of any action.--For the purposes of
paragraph (1)(A), the term ``any action'' shall include--
(A) a complaint filed by a Federal or State agency in a
local, State, Federal, or tribal court;
(B) an administrative proceeding by a Federal or State
agency involving noncompliance of any applicable law or
regulation; or
(C) any other review, audit, or administrative process by
any Federal or State agency that results in a penalty,
suspension, or termination from any Federal or State program.
SEC. 6. FOR-PROFIT COLLEGE WARNING LIST FOR PARENTS AND
STUDENTS.
(a) In General.--Each academic year, the Committee shall
publish a list to be known as the ``For-Profit College
Warning List for Parents and Students'' to be comprised of
proprietary institutions of higher education--
(1) that have engaged in illegal activity during the
previous academic year as determined by a Federal or State
court;
(2) that have entered into a settlement resulting in a
monetary payment;
(3) that have had any higher education program withdrawn or
suspended; or
(4) for which the Committee has sufficient evidence of
widespread or systemic unfair, deceptive, abusive, unethical,
fraudulent, or predatory practices, policies, or procedures
that pose a threat to the academic success, financial
security, or general best interest of students.
(b) Determinations.--In making a determination pursuant to
subsection (a)(4), the Committee may consider evidence that
includes the following:
(1) Any consumer complaint collected by any member entity
of the Committee.
(2) Any complaint filed by a Federal or State agency in a
Federal, State, local, or tribal court.
(3) Any administrative proceeding by a Federal or State
agency involving noncompliance of any applicable law or
regulation.
(4) Any other review, audit, or administrative process by
any Federal or State agency that results in a penalty,
suspension, or termination from any Federal or State program.
(5) Data or information submitted by a proprietary
institution of higher education to any accrediting agency or
association recognized by the Secretary of Education pursuant
to section 496 of the Higher Education Act of 1965 (20 U.S.C.
1099b) or the findings or adverse actions of any such
accrediting agency or association.
(6) Information submitted by a proprietary institution of
higher education to any member entity of the Committee.
(7) Any other evidence that the Committee determines
relevant in making a determination pursuant to subsection
(a)(4).
(c) Publication.--Not later than July 1 of each fiscal
year, the Committee shall publish the list described in
subsection (a) prominently and in a manner that is easily
accessible to parents, students, and other stakeholders in
accordance with any best practices developed under section
3(b)(5).
______
By Ms. COLLINS (for herself and Ms. Heitkamp):
S. 2210. A bill to amend the Richard B. Russell National School Lunch
Act to require the Secretary of Agriculture to make loan guarantees and
grants to finance certain improvements to school lunch facilities, to
train school food service personnel, and for other purposes; to the
Committee on Agriculture, Nutrition, and Forestry.
Ms. COLLINS. Mr. President, I am pleased today to join my friend from
North Dakota, Senator Heitkamp, in introducing the School Food
Modernization Act to assist schools in providing healthier meals to
students throughout the country.
School meals play a vital role in the lives of our young people. More
than 30 million children participate in the National School Lunch
Program every schoolday. In Maine, 40 percent of children qualify for
free or reduced-price meals based on household income.
The food served to these children has a demonstrable effect on their
health and well-being. Many children consume up to half their daily
caloric intake at school. In fact, children often get their most
nutritious meal of the day at school instead of at home.
At the same time, too many of our children are at risk of serious
disease. One-third of the children in this country are overweight or
obese, which increases their risk for heart disease, high blood
pressure, type 2 diabetes and other chronic diseases. These ailments
may have a lifelong effect on their health as they grow to adulthood.
Given the concerns about the health of our children, the U.S.
Department of Agriculture has issued updated school
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meal nutrition standards that call for increased servings of fruit,
vegetables, low-fat products, and whole grains while limiting the
intake of fats, sugar, salt, and excess calories.
In response, our schools have stepped up to the plate. Nationwide,
schools are working diligently to meet the standards and serve
healthier meals. For example, in the New Sweden Consolidated School in
Aroostook County, ME, food service manager Melanie Lagasse prepares
meals from scratch instead of opening cans or pushing a defrost button.
The school's 64 students, ranging from preschool to eighth grade, have
grown to relish the chicken stew, baked fish, and whole grain pasta and
meatloaf that she makes fresh every day.
Many schools, however, lack the right tools for preparing meals rich
in fresh ingredients and must rely on workarounds that are expensive,
inefficient, and unsustainable. Schools built decades ago lack the
tools and the infrastructure necessary to comply fully with the new
USDA guidelines. In fact, many lack any capacity beyond reheating and
holding food for meal service.
To serve healthier meals to their students, 99 percent of Maine
school districts need at least one piece of equipment and almost half--
48 percent--of districts need kitchen infrastructure upgrades. While
some of the needs appear quite simple--food processors, knives,
serving-portion utensils, scales, utility carts--there is still a cost.
The median equipment need per school is $45,000.
Even more costly would be making the required changes to
infrastructure. Forty-eight percent of Maine schools need some kind of
infrastructure change to serve healthy meals. For example, 41 percent
of schools need more physical space, 22 percent need more electrical
capacity, 21 percent need more plumbing capacity, and 19 percent need
more ventilation. In addition, for Maine, 82 percent of school
districts are in areas defined as rural.
Add the equipment costs together with the infrastructure costs and it
is estimated that overall, $58.8 million would be needed just in Maine
to serve healthy meals to all of our students. That far exceeds the
$74,000 grant the USDA awarded Maine in March for new equipment.
Our bill aims to make better use of current resources by authorizing
loan guarantee assistance and grants for school equipment and
infrastructure improvements and by helping food service personnel meet
the updated nutrition standards. First, it would establish a loan
guarantee assistance program within USDA to help schools acquire new
equipment to prepare and serve healthier, more nutritious meals to
students. School administrators and other eligible borrowers could
obtain Federal guarantees for 80 percent of the loan value needed to
construct, remodel, or expand their kitchens, dining, or food storage
infrastructure.
Second, it would provide targeted grant assistance to give school
administrators and food service directors the seed funding needed to
upgrade kitchen infrastructure or to purchase high- quality, durable
kitchen equipment such as commercial ovens, steamers, and stoves.
Finally, to aid school food service personnel in meeting the updated
nutrition guidelines, the legislation would strengthen training and
provide technical assistance by authorizing USDA to provide support on
a competitive basis to highly qualified third-party trainers to develop
and administer training and technical assistance.
We need to start our schoolchildren off on the right food every day.
If they are going to compete in the global arena, they need to be
healthy and their minds and bodies fully nourished. This bill will help
us achieve that goal.
____________________