[Congressional Record Volume 162, Number 84 (Thursday, May 26, 2016)]
[Senate]
[Page S3355]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 4364. Mr. BROWN submitted an amendment intended to be proposed by
him to the bill S. 2943, to authorize appropriations for fiscal year
2017 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:
At the end of subtitle I of title X, add the following:
SEC. 1097. PROTECTING FINANCIAL AID FOR STUDENTS AND
TAXPAYERS.
(a) Short Title.--This section may be cited as the
``Protecting Financial Aid for Students and Taxpayers Act''.
(b) Findings.--Congress finds the following:
(1) From 1998 to 2013, enrollment in for-profit
institutions of higher education increased by 314 percent,
from 498,176 students to 2,064,920 students.
(2) In the 2012-2013 academic year, students who enrolled
at for-profit institutions of higher education received
$26,469,028,523 in Federal Pell Grants and student loans.
(3) Eight out of the 10 top recipients of Post- 9/11
Educational Assistance funds are for-profit institutions of
higher education. These 8 companies have received
$2,900,000,000 in taxpayer funds to enroll veterans from 2009
to 2013.
(4) An analysis of 15 publicly traded companies that
operate institutions of higher education shows that, on
average, such companies spend 28 percent of expenditures on
advertising, marketing, and recruiting.
(c) Restrictions on Sources of Funds for Recruiting and
Marketing Activities.--Section 119 of the Higher Education
Opportunity Act (20 U.S.C. 1011m) is amended--
(1) in the section heading, by inserting ``and restrictions
on sources of funds for recruiting and marketing activities''
after ``funds'';
(2) in subsection (d), by striking ``subsections (a)
through (c)'' and inserting ``subsections (a), (b), (c), and
(e)'';
(3) by redesignating subsection (e) as subsection (f); and
(4) by inserting after subsection (d) the following:
``(e) Restrictions on Sources of Funds for Recruiting and
Marketing Activities.--
``(1) In general.--An institution of higher education, or
other postsecondary educational institution, may not use
revenues derived from Federal educational assistance funds
for recruiting or marketing activities described in paragraph
(2).
``(2) Covered activities.--Except as provided in paragraph
(3), the recruiting and marketing activities subject to
paragraph (1) shall include the following:
``(A) 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.
``(B) 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 grant, 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
websites established for such purpose and funds paid to third
parties for such purpose.
``(C) Such other activities as the Secretary of Education
may prescribe, including paying for promotion or sponsorship
of education or military-related associations.
``(3) 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 covered activity under paragraph (2).
``(4) Federal educational assistance funds.--In this
subsection, the term `Federal educational assistance funds'
means funds provided directly to an institution or to a
student attending such institution 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) Chapter 30, 31, 32, 33, 34, or 35 of title 38, United
States Code.
``(C) Chapter 101, 105, 106A, 1606, 1607, or 1608 of title
10, United States Code.
``(D) Section 1784a, 2005, or 2007 of title 10, United
States Code.
``(E) Title I of the Workforce Innovation and Opportunity
Act (29 U.S.C. 3111 et seq.).
``(F) The Adult Education and Family Literacy Act (29
U.S.C. 3271 et seq.).
``(5) Rule of construction.--Nothing in this section shall
be construed as a limitation on the use by an institution of
revenues derived from sources other than Federal educational
assistance funds.
``(6) Reports.--Each institution of higher education, or
other postsecondary educational institution, that derives 65
percent or more of revenues from Federal educational
assistance funds shall report annually to the Secretary and
to Congress and shall include in such report--
``(A) the institution's expenditures on advertising,
marketing, and recruiting;
``(B) a verification from an independent auditor that the
institution is in compliance with the requirements of this
subsection; and
``(C) a certification from the institution that the
institution is in compliance with the requirements of this
subsection.''.
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