[Congressional Record Volume 161, Number 20 (Thursday, February 5, 2015)]
[Senate]
[Pages S834-S836]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN:
  S. 396. 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, 396

       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 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

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     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) assistance for tuition and expenses 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 
     (VI) 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 so defined) 
     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

       (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;

[[Page S836]]

       (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 so 
     defined) 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 under 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).
                                 ______