[Congressional Record Volume 162, Number 88 (Monday, June 6, 2016)]
[Senate]
[Pages S3468-S3469]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 4446. Mr. DURBIN 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 E of title V, add the following:
SEC. 565 PROPRIETARY INSTITUTIONS OF HIGHER EDUCATION.
(a) Definition.--Section 102(b) of the Higher Education Act
of 1965 (20 U.S.C. 1002(b)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (D), by striking ``and'' after the
semicolon;
(B) in subparagraph (E), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(F) meets the requirements of paragraph (2).'';
(2) by redesignating paragraph (2) as paragraph (3); and
(3) by inserting after paragraph (1) the following:
``(2) Revenue sources.--
``(A) In general.--In order to qualify as a proprietary
institution of higher education under this subsection, an
institution shall derive not less than 15 percent of the
institution's revenues from sources other than Federal funds,
as calculated in accordance with subparagraphs (B) and (C).
``(B) Federal funds.--In this paragraph, the term `Federal
funds' means any Federal financial assistance provided, under
this Act or any other Federal law, through a grant, contract,
subsidy, loan, guarantee, insurance, or other means to a
proprietary institution, including Federal financial
assistance that is disbursed or delivered to an institution
or on behalf of a student or to a student to be used to
attend the institution, except that such term shall not
include any monthly housing stipend provided under the Post-
9/11 Veterans Educational Assistance Program under chapter 33
of title 38, United States Code.
``(C) Implementation of non-federal revenue requirement.--
In making calculations under subparagraph (A), an institution
of higher education shall--
``(i) use the cash basis of accounting;
``(ii) consider as revenue only those funds generated by
the institution from--
``(I) tuition, fees, and other institutional charges for
students enrolled in programs eligible for assistance under
title IV;
``(II) activities conducted by the institution that are
necessary for the education and training of the institution's
students, if such activities are--
``(aa) conducted on campus or at a facility under the
control of the institution;
``(bb) performed under the supervision of a member of the
institution's faculty; and
``(cc) required to be performed by all students in a
specific educational program at the institution; and
``(III) a contractual arrangement with a Federal agency for
the purpose of providing job training to low-income
individuals who are in need of such training;
``(iii) presume that any Federal funds that are disbursed
or delivered to an institution on behalf of a student or
directly to a student will be used to pay the student's
tuition, fees, or other institutional charges, regardless of
whether the institution credits such funds to the student's
account or pays such funds directly to the student, except to
the extent that the student's tuition, fees, or other
institutional charges are satisfied by--
``(I) grant funds provided by an outside source that--
``(aa) has no affiliation with the institution; and
``(bb) shares no employees with the institution; and
``(II) institutional scholarships described in clause (v);
``(iv) include no loans made by an institution of higher
education as revenue to the school, except for payments made
by students on such loans;
[[Page S3469]]
``(v) include a scholarship provided by the institution--
``(I) only if the scholarship is in the form of monetary
aid based upon the academic achievements or financial need of
students, disbursed to qualified student recipients during
each fiscal year from an established restricted account; and
``(II) only to the extent that funds in that account
represent designated funds, or income earned on such funds,
from an outside source that--
``(aa) has no affiliation with the institution; and
``(bb) shares no employees with the institution; and
``(vi) exclude from revenues--
``(I) the amount of funds the institution received under
part C of title IV, unless the institution used those funds
to pay a student's institutional charges;
``(II) the amount of funds the institution received under
subpart 4 of part A of title IV;
``(III) the amount of funds provided by the institution as
matching funds for any Federal program;
``(IV) the amount of Federal funds provided to the
institution to pay institutional charges for a student that
were refunded or returned; and
``(V) the amount charged for books, supplies, and
equipment, unless the institution includes that amount as
tuition, fees, or other institutional charges.
``(D) Report to congress.--Not later than July 1, 2016, and
by July 1 of each succeeding year, the Secretary shall submit
to the authorizing committees a report that contains, for
each proprietary institution of higher education that
receives assistance under title IV and as provided in the
audited financial statements submitted to the Secretary by
each institution pursuant to the requirements of section
487(c)--
``(i) the amount and percentage of such institution's
revenues received from Federal funds; and
``(ii) the amount and percentage of such institution's
revenues received from other sources.''.
(b) Program Participation Agreements.--Section 487 of the
Higher Education Act of 1965 (20 U.S.C. 1094) is amended--
(1) in subsection (a)--
(A) by striking paragraph (24);
(B) by redesignating paragraphs (25) through (29) as
paragraphs (24) through (28), respectively;
(C) in paragraph (24)(A)(ii) (as redesignated by
subparagraph (B)), by striking ``subsection (e)'' and
inserting ``subsection (d)''; and
(D) in paragraph (26) (as redesignated by subparagraph
(B)), by striking ``subsection (h)'' and inserting
``subsection (g)'';
(2) by striking subsection (d);
(3) by redesignating subsections (e) through (j) as
subsections (d) through (i), respectively;
(4) in subsection (f)(1) (as redesignated by paragraph
(3)), by striking ``subsection (e)(2)'' and inserting
``subsection (d)(2)''; and
(5) in subsection (g)(1) (as redesignated by paragraph
(3)), by striking ``subsection (a)(27)'' in the matter
preceding subparagraph (A) and inserting ``subsection
(a)(26)''.
(c) Conforming Amendments.--The Higher Education Act of
1965 (20 U.S.C. 1001 et seq.) is amended--
(1) in section 152 (20 U.S.C. 1019a)--
(A) in subsection (a)(1)(A), by striking ``subsections
(a)(27) and (h) of section 487'' and inserting ``subsections
(a)(26) and (g) of section 487''; and
(B) in subsection (b)(1)(B)(i)(I), by striking ``section
487(e)'' and inserting ``section 487(d)'';
(2) in section 153(c)(3) (20 U.S.C. 1019b(c)(3)), by
striking ``section 487(a)(25)'' each place the term appears
and inserting ``section 487(a)(24)'';
(3) in section 496(c)(3)(A) (20 U.S.C. 1099b(c)(3)(A)), by
striking ``section 487(f)'' and inserting ``section 487(e)'';
and
(4) in section 498(k)(1) (20 U.S.C. 1099c(k)(1)), by
striking ``section 487(f)'' and inserting ``section 487(e)''.
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