[House Report 117-384]
[From the U.S. Government Publishing Office]
117th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 117-384
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CAMPUS PREVENTION AND RECOVERY SERVICES FOR STUDENTS ACT OF 2022
_______
June 23, 2022.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Scott of Virginia, from the Committee on Education and Labor,
submitted the following
R E P O R T
[To accompany H.R. 6493]
[Including cost estimate of the Congressional Budget Office]
The Committee on Education and Labor, to whom was referred
the bill (H.R. 6493) to amend the Higher Education Act of 1965
to prevent certain alcohol and substance misuse, having
considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 3
Committee Action................................................. 4
Committee Views.................................................. 5
Section-by-Section Analysis...................................... 10
Explanation of Amendments........................................ 10
Application of Law to the Legislative Branch..................... 11
Unfunded Mandate Statement....................................... 11
Earmark Statement................................................ 11
Roll Call Votes.................................................. 11
Statement of Performance Goals and Objectives.................... 11
Duplication of Federal Programs.................................. 11
Hearings......................................................... 11
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 12
New Budget Authority and CBO Cost Estimate....................... 12
Committee Cost Estimate.......................................... 14
Changes in Existing Law Made by the Bill, as Reported............ 14
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Campus Prevention and Recovery
Services for Students Act of 2022''.
SEC. 2. ALCOHOL AND SUBSTANCE MISUSE PREVENTION.
Section 120 of the Higher Education Act of 1965 (20 U.S.C. 1011i) is
amended--
(1) in the section heading, by striking ``drug and alcohol
abuse'' and inserting ``alcohol and substance misuse'';
(2) in subsection (a)--
(A) in the matter preceding paragraph (1), by
striking ``a program to prevent the use of illicit
drugs and the abuse of alcohol by students and
employees that,'' and inserting ``an evidence-based
program to prevent alcohol and substance misuse by
students and employees that,'';
(B) by amending paragraph (1)(D) to read as follows:
``(D) a description of any alcohol or substance
misuse counseling, treatment, rehabilitation, recovery,
re-entry, or recovery support programs provided by the
institution (including in partnership with a community-
based organization) that are available to employees or
students; and''; and
(C) in paragraph (1)(E), by striking ``that the
institution will impose'' and inserting ``of the
policies of the institution regarding'';
(3) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``and'' at the end of
subparagraph (A);
(ii) in subparagraph (B), by striking the
period and inserting ``; and''; and
(iii) by adding at the end the following:
``(C) compliance assistance to assist institutions in
complying with the requirements of this section.'';
(B) by redesignating paragraph (2) as paragraph (4);
and
(C) by inserting after paragraph (1) the following:
``(2) Interagency agreement.--Not later than 180 days after
the date of enactment of this paragraph, the Secretary shall
enter into an interagency agreement with the Secretary of
Health and Human Services to--
``(A) develop best practices that inform criteria
which satisfy the requirement under subsection (a) that
an institution of higher education has adopted and has
implemented an evidence-based program described in such
subsection;
``(B) establish a process for disseminating the best
practices for adopting and implementing such an
evidence-based program; and
``(C) establish a process that promotes coordination
and collaboration between institutions of higher
education and the respective State agencies that
administer the Substance Abuse Prevention and Treatment
Block Grants pursuant to subpart II of part B of title
XIX of the Public Health Service Act (42 U.S.C. 300x-
21).
``(3) Guidance.--Not later than 1 year after the date of the
enactment of this paragraph, the Secretary shall, in
coordination with the Secretary of Health and Human Services,
issue guidance with respect to the criteria described in
paragraph (2)(A).''; and
(4) in subsection (e)--
(A) in the subsection heading, by striking ``drug
abuse'' in the heading and inserting ``substance
misuse'';
(B) in paragraph (1)--
(i) by striking ``other organizations'' and
inserting ``community-based organizations that
partner with institutions of higher
education'';
(ii) by striking ``programs of prevention,
and education (including treatment-referral) to
reduce and eliminate the illegal use of drugs
and alcohol and the violence associated with
such use'' and inserting ``evidence-based
programs of alcohol and substance misuse
prevention and education (including programs to
improve access to treatment, referral for
treatment services, or crisis intervention
services) to eliminate illegal substance use,
decrease substance misuse, and improve public
health and safety''; and
(iii) by striking ``alcohol and drug abuse''
and inserting ``substance use disorder'';
(C) by redesignating paragraphs (2) through (5) as
paragraphs (3) through (6), respectively; and
(D) by inserting after paragraph (1) the following:
``(2) Additional uses.--In addition to the activities
described in paragraph (1), a grant or contract awarded under
paragraph (1) may be used to carry out one or more of the
following evidence-based programs or activities:
``(A) Providing programs for recovery support
services, and peer-to-peer support services and
counseling for students with a substance use disorder.
``(B) Promoting integration and collaboration in
campus-based health services between primary care,
substance use disorder services, and mental health
services.
``(C) Promoting integrated care services for students
related to screening, diagnosis, prevention, and
treatment of mental, behavioral, and substance use
disorders.
``(D) Providing re-entry assistance for students on
academic probation due to their substance use disorder.
``(E) Preventing fatal and nonfatal overdoses,
including restoring existing mental health and
substance use disorder services after a natural
disaster or public health emergency declared by the
Secretary of Health and Human Services under section
319 of the Public Health Service Act (42 U.S.C. 247d).
``(F) Providing education to students, faculty, or
other personnel on--
``(i) recognizing the signs and symptoms of
substance use disorder, and how to engage and
support a person in a crisis situation;
``(ii) resources available in the community,
within the institution of higher education, and
other relevant resources for individuals with a
substance use disorder; and
``(iii) safely de-escalating crisis
situations involving individuals with a
substance use disorder.''; and
(E) by amending paragraph (6), as redesignated by
subparagraph (C), to read as follows:
``(6) Authorization of appropriations.--There are authorized
to be appropriated to carry out this section $15,000,000 for
fiscal year 2023 and each of the 5 succeeding fiscal years.''.
SEC. 3. PROGRAM PARTICIPATION AGREEMENTS.
Section 487(a)(10) of the Higher Education Act of 1965 (20 U.S.C.
1094(a)(10)) is amended--
(1) by striking ``(10)'' and inserting ``(10)(A)'';
(2) by striking ``a drug abuse prevention program'' and
inserting ``an alcohol and substance misuse prevention program
in accordance with section 120''; and
(3) by adding at the end the following:
``(B) The institution shall be considered in compliance with
the requirements of subparagraph (A) unless there is a showing
that the institution knowing and willfully did not implement a
prevention program described in such subparagraph.''.
SEC. 4. REPORT.
The Secretary of Education shall report to the Committee on Education
and Labor of the House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate on the efforts of the
Secretary carried out under the amendments made by this Act, and best
practices from institutions receiving a grant under section 120(e) of
the Higher Education Act of 1965 (20 U.S.C. 1011i(e)), as amended by
section 2 of this Act--
(1) not later than one year after the date of enactment of
this Act; and
(2) three years after the date of enactment of this Act.
SEC. 5. APPLICABILITY.
The amendments made by sections 2(2) and 3 shall apply to
institutions of higher education beginning on the date that is 2 years
after the date of the enactment of this Act.
Purpose and Summary
The purpose of H.R. 6493, the bipartisan Campus Prevention
and Recovery Services for Students Act of 2022, is to improve
and update provisions of the Higher Education Act of 1965
related to alcohol and substance abuse prevention. The
amendments outlined in H.R. 6493 will better support students
struggling with substance use disorder (SUD) and ensure that
alcohol and drug misuse prevention and recovery efforts
mandated by federal law are focused on evidence-based
practices.
Millions of Americans--including college students--struggle
with substance use disorder.\1\ Providing tools to allow them
to safely recover is paramount to improving the health and
wellbeing of communities. Building off decades of research on
SUD, H.R. 6493 better aligns statutory requirements regarding
campus-based substance misuse prevention efforts with proven
approaches. H.R. 6493 requires institutions of higher education
(IHEs) receiving federal funding to adopt and implement an
evidence-based programs to prevent campus alcohol and substance
misuse by students and employees. The legislation also requires
the Secretary of Education (Secretary) to coordinate with the
Secretary of Health and Human Services to develop and promote
best practices for IHEs to support the implementation of these
evidence-based programs.
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\1\See e.g., John F. Kelly et al., Prevalence and pathways of
recovery from drug and alcohol problems in the United States
population: Implications for practice, research, and policy, 181 Drug &
Alcohol Dependence, 162, 166 (2017), https://doi.org/10.1016/
j.drugalcdep.2017.09.028.
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The bipartisan Campus Prevention and Recovery Services for
Students Act of 2022 is supported by the National Council for
Mental Wellbeing and the Trust for America's Health.
Committee Action
116TH CONGRESS
On June 28, 2019, Rep. David Trone (D-MD-06) introduced
H.R. 3591, the Campus Prevention and Recovery Services for
Students Act of 2019, with Reps. Dusty Johnson (R-SD-AL), Chris
Pappas (D-NH-01), John Joyce (R-PA-03), Lucy McBath (D-GA-06),
Michael Guest (R-MS-03) as original cosponsors. The bill was
referred solely to the Committee on Education and Labor.
On October 15, 2019, Chairman Robert C. ``Bobby'' Scott (D-
VA-03) introduced H.R. 4674, the College Affordability Act
(CAA), a bill to reauthorize the Higher Education Act of 1965.
On October 29, 2019, Committee met in legislative session to
mark up CAA. At that markup, an Amendment in the Nature of a
Substitute (ANS) was offered to H.R. 4674, which included H.R.
3591. The ANS was adopted by a voice vote and on October 31,
2019. The Committee voted to report CAA to the House favorably
with the ANS and other approved amendments by a vote of 28-22.
117TH CONGRESS
On April 15, 2021, the Subcommittee on Health, Employment,
Labor, and Pensions (HELP Subcommittee) held a hearing titled
``Meeting the Moment: Improving Access to Behavioral and Mental
Health Care'' to examine barriers to access for behavioral
health care, particularly limited coverage of mental health and
substance use disorder treatment and the importance of mental
health parity laws. The Subcommittee heard testimony from: Dr.
Brian Smedley, Chief of Psychology in the Public Interest,
American Psychological Association, Washington, DC; Dr.
Christine Yu Moutier, Chief Medical Officer, American
Foundation for Suicide Prevention, New York, NY; Mr. James
Gelfand, Senior Vice President, Health Policy, The ERISA
Industry Committee, Washington, DC; and Dr. Meiram Bendat,
Founder, Psych-Appeal, Santa Barbara, CA.
On January 25, 2022, Rep. Teresa Leger Fernandez (D-NM-03)
introduced H.R. 6493, the Campus Prevention and Recovery
Services for Students Act of 2022, with Reps. Dusty Johnson,
Trone, Pappas, John Joyce, McBath, and Guest as original
cosponsors. The bill was referred solely to the Committee on
Education and Labor.
On May 18, 2022, the Committee considered H.R. 6493 in
legislative session and reported it favorably, as amended to
the House of Representative by a voice vote.
The Committee considered the following amendments to H.R.
6493:
Rep. Leger Fernandez offered an ANS that:
Altered the interagency
agreement to have the Secretary of Health and
Human Services develop the best practices which
inform the criteria that satisfy the Title IV
eligibility requirements;
Required the Secretary to issue
a report to Congress on efforts and best
practices from institutions receiving the
alcohol and substance misuse prevention grants;
Allowed grant funds to be used
to restore mental health and substance misuse
prevention programs during public health
emergencies and natural disasters; and
Clarified that institutions of
higher education will not be found out of
compliance with requirements unless they
knowingly and willfully did not adopt and
implement a prevention program.
Committee Views
BEHAVIORAL HEALTH CHALLENGES FACING COLLEGE STUDENTS
Drug and alcohol misuse, addiction, and abuse, now commonly
referred to as substance abuse disorders (SUDs), remain major
behavioral health challenges in the United States.\2\ The
country is currently in the fifth year of an opioid public
health emergency, and national statistics show that instances
of substance use and abuse, already too common, have increased
during the COVID-19 pandemic.\3\ Behavioral health needs--in
part exacerbated by COVID-19--are rising and demand for
services is rising.\4\ During the 2021 HELP Subcommittee
hearing titled ``Meeting the Moment: Improving Access to
Behavioral and Mental Health Care'', Rep. DeSaulnier
highlighted the need to address mental health concerns with
evidence-based practices by saying:
\2\See e.g., Substance Abuse & Mental Health Services
Administration, Key Substance Use & Mental Health Indicators in the
United States: Results from the 20200 National Survey on Drug Use &
Health 3 (Oct. 2021).
\3\Id. at 5.
\4\Melissa Ezarik, Students Struggle but Don't Seek Colleges' Help,
Inside Higher Ed, (April 14, 2021), https://www.insidehighered.com/
news/2021/04/14/students-struggling-not-seeking-campus-mental-health-
support.
Our communities, particularly underserved
communities, have been left to deal with the lasting
and potentially fatal mental health consequences on
this pandemic on their own. This is in spite of
exponential research and knowledge about behavioral
health and substance abuse and evidence-based research
that would help Americans if we provide these
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services.\5\
\5\Meeting the Moment: Improving Access to Behavioral and Mental
Health Care Before the Subcomm. on Health, Education, Labor & Pensions
of the H. Comm. on Education & Labor, 117th Cong. (Apr. 15, 2021)
(statement of Mark DeSaulnier, Chairman of the Subcommittee).
The Committee recognizes that behavioral health challenges
like SUDs are a rising problem with college students. For many
students living away from home for the first time, college is a
time of freedom and independence. For older students dealing
with stressors like work and family, the responsibilities of
college are heaped onto an already full plate. Students,
regardless of their residency or attendance status commonly
experience social anxiety, academic stress, and overwhelming
amounts of pressure during college.\6\ Too many of these
students turn to alcohol and substances to cope with the
challenges of college.\7\
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\6\Andy Rosen, How Social Anxiety Impacts Higher Education and
Career Choices, National Social Anxiety Center (July 14, 2018), https:/
/nationalsocialanxietycenter.com/2018/07/14/social-
anxiety-impacts-higher-education-career-choices/; American Institute of
Stress,
Stress in College Students, (2022),
https://www.stress.org/college-
students#::text=Stress%20was%20ranked%20fourth%20by,
family%20issues%2C%20and%20relationship%20problems.
\7\Substance Abuse & Mental Health Services Administration, Talking
with Your College-Bound Young Adult About Alcohol, HHS Pub SMA-18-4897,
(2018), https://store.samhsa.gov/sites/default/files/d7/priv/sma18-
4897.pdf.
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Like the rest of the country, college campuses have not
been immune to increased prevalence of opioid use disorder as
well as other SUDs. Research in 2019 found that college
students were particularly vulnerable to opioid misuse;
according to the National Survey on Drug Use and Health, young
adults ages 18 to 25 reported the highest previous year opioid
use prevalence of all age groups.\8\ And the COVID-19 pandemic
has also had disproportionate effect on the behavioral health
of college students. Elevated anxiety among college students
has persisted throughout the pandemic and led to higher rates
of moderate-to-heavy drinking, sleep impairment, and
depression.\9\ While college students experiencing more
pandemic-related mental distress did not consume more
substances than their less distressed counterparts, college
students affected by substance misuse and mental distress were
more likely to increase their alcohol consumption to cope with
pandemic-related trauma.\10\
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\8\Justine Welsh, et al., Substance Use Among College Students, 17
Focus: The Journal of Lifelong Learning in Psychiatry No. 2, 118
(Spring, 2019), https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6527004/
#::text=The%20risk%20for%20opioid%20use,a%20low%20GPA%20(25).
\9\Margo Hurlocker et al., Mental Health Risk Profiles and Related
Substance Use During Coronavirus Pandemic Among College Students Who
Use Substances, Int'l. J. of Mental Health & Addiction 8, 13-14 (March
28, 2022); Hans Oh et al., Stressors experienced during the COVID-19
pandemic and substance use among US college students, 1 Drug and
Alcohol Dependence Reports, 4-5 (Nov. 2021).
\10\Hurlocker, supra note 9, at 13-14.
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Unfortunately, high-quality mental health and substance use
disorder treatment services remain out of reach for many
students. Since the start of the pandemic, campus counseling
centers have responded to an increased demand for student
mental health services with limited funding, staff, and
resources.\11\ In a campus-wide survey conducted by the
Pennsylvania State University, about 94 percent of student
seeking mental health services reported that COVID-19 has
negatively (72 percent), motivation or focus (68 percent),
loneliness or isolation (67 percent), and academics (66
percent) as the most frequently affected areas.\12\ Even as
student need for high-quality behavioral health care continues
to increase, lack of access to resources remains the primary
barrier to receiving care for students on campus.\13\ It is
against this backdrop the Committee considered H.R. 6493.
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\11\Ezarik, supra note 4.
\12\Center for Collegiate Mental Health, The Pennsylvania State
University, Part 1 of 5: COVID-19 Impact on College Student Mental
Health (Feb. 2, 2021), https://ccmh.psu.edu/
index.php?option=com_dailyplanetblog&view=entry&year=2021&month=02&day=0
1&id=9:part-1-of-5-covid-19-s-impact-on-college-student-mental-health.
\13\Wenhua Lu et al., Examination of Young US Adults' Reasons for
Not Seeking Mental Health Care for Depression, 2011-2019, JAMA
NetworkOpen (2022), https://jamanetwork.com/journals/jamanetworkopen/
fullarticle/2792128.
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HEA SUBSTANCE MISUSE PREVENTION PROGRAM REQUIREMENT FOR IHES
Under current law, section 120 of the Higher Education Act
of 1965 (HEA) requires institutions of higher education (IHEs)
to adopt alcohol and substance misuse prevention programs in
order to participate in federal student aid programs (e.g.,
Direct Loans, Federal Work Study, Pell Grants) or to receive
funds or any other federal financial assistance from any
federal program.\14\ IHEs have a responsibility to support
students and provide resources to address students' use of
alcohol and substances. Failure to operate a Drug and Alcohol
Prevention Program may result in a range of actions by the
Department, from providing technical assistance to help such
institution address shortfalls up to sanctions against the
institution, including the repayment of any or all title IV
Federal assistance received while in violation of the
requirement.\15\
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\14\20 U.S.C. Sec. 1011i, 1094.
\15\Letter from Robin Minor, FSA Chief Compliance Officer, Mark
Love, FSA Audit Liaison, and Janie Funkhouser, OPE Audit Liaison to
James W. Runcie, FSA Chief Operating Officer (March 14, 2012), U.S.
Department of Education Office of Inspector General, https://
www2.ed.gov/about/offices/list/oig/aireports/i13l0002.pdf.
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The Drug and Alcohol Prevention Program requirement since
has not undergone major revision since the passage of the
Higher Education Amendments of 1986.\16\ That reauthorization
of HEA was the first time the law included a requirement (in
section 487) that an IHE must provide an assurance it
maintained a Drug and Alcohol Prevention program as part of its
agreement with the Department to participate in the federal
student aid programs authorized under title IV.\17\ Originally
referred to as the Drug Abuse Program, the provision requiring
IHE compliance to receive title IV aid was incorporated into
the reauthorization during conference negotiations at the
request of Rep. Thomas Coleman (R-MO-06), a conferee.\18\
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\16\Pub. L. 99-498.
\17\Id.
\18\Janet Hook, Student Loan, Grant Provisions Settled: Conferees
Reach Agreement on Higher Education Measure, CQ WEEKLY, (September 13,
1986). https://www.edweek.org/education/agreement-reached-on-college-
student-aid-programs/1986/09.
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There are two distinct characteristics of this requirement
that speak to the time at which section 487 was revised to
require participation in section 120. First, the inclusion of
the Drug Abuse Program assurance reflects a larger government
push to combat drug abuse in the 1980s.\19\ The rising
popularity of cocaine led to a demand from the public that drug
abuse be addressed. According to CRS, by 1989, 27% of Americans
felt drugs or drug abuse was the most important problem facing
the country, compared to 1985 when 2% gave this response.\20\
As such, section 120 as written in 1986 focused heavily on
requiring IHE drug abuse programs to convey to students
sanctions, both legal and administrative, they could face if
they used illicit drugs. Schools could meet the requirements of
the law by telling students what would happen if they were
caught using drugs and did not have to provide any treatment
options.
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\19\Id.
\20\Lisa N. Sacco, Drug Enforcement in the United States: History,
Policy, and Trends, Congressional Research Service, (October 2, 2014).
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Second, the conferees emphasized that the requirement that
an IHE have a program did not permit the Secretary of Education
to develop any new rules or regulations relating to the content
of the Drug Abuse Program.\21\ This reflects the desire to keep
the emphasis on the program faced on deterrence, and not allow
the Department to place more requirements on an IHE than those
spelled out in the statute.
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\21\Hook, supra note 18.
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While the Committee recognizes the earlier efforts to
curtail drug use, this approach did not eliminate drug usage
among college students. With nearly 40 years of hindsight, and
advancements in the science around addiction generally, and
drug and alcohol abuse in particular, the Committee feels this
is a prime opportunity to revise what actions an IHE should
take to better serve the health of its students. The focus
within substance misuse public policy has shifted away from
punitive measures to developing opportunities to improve access
to prevention and treatment services.\22\ H.R. 6493 amends the
Drug and Alcohol Prevention Program requirement and updates
language to promote evidence-based prevention and recovery
services.
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\22\Office of the Surgeon General, Facing Addiction in America: The
Surgeon General's Report on Alcohol, Drugs, and Health, (2016), https:/
/www.ncbi.nlm.nih.gov/books/NBK424861/.
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ENSURING IHES PROVIDE EVIDENCE-BASED PREVENTION AND RECOVERY SUPPORT
Campus prevention and recovery programs are essential for
preventing student and employee substance misuse and providing
support for those with SUDs. Many schools now go over and above
what is required in the law and employ evidence-based practices
to reduce SUDs. For example, to fulfill the current Drug and
Alcohol Prevention Program requirement, many IHEs provide an
initial alcohol and substance misuse training for new students
during orientation. But, the University of Massachusetts-
Amherst (UMass Amherst) requires new students to complete a
two-part online course that provides them with tools and
information to healthily navigate alcohol and substance use on
campus.\23\ The school also provides additional programs,
including BASICS, a program aimed at reducing risky behavior
and generating discussion about the negative consequences of
substance misuse with students. The Collegiate Recovery
Community, another UMass Amherst program, provides a supportive
living environment for students recovering from SUDs.\24\
Together, these collaborative programs provide students with
comprehensive support from prevention to recovery. UMass
Amherst has previously earned recognition as a national model
for their prevention and recovery efforts.\25\
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\23\Ctr. for Health Promotion, AlcoholEdu, U. of Mass. Amherst,
https://www.umass.edu/studentlife/health-safety/chp/alcoholedu.
\24\Ctr. for Health Promotion, BASICS, U. of Mass. Amherst, https:/
/www.umass.edu/studentlife/wellbeing-safety/center-health-promotion-
chp/basics; Ctr. for Health Promotion, Collegiate Recovery Communities,
U. of Mass. Amherst, https://www.umass.edu/studentlife/health-safety/
chp/recovery.
\25\Press Release, U. of Mass. Amherst, UMass Amherst alcohol and
drug abuse prevention program earns recognition as a national model,
wins federal grant award (July 28, 2008), https://www.umass.edu/
archivenewsoffice/article/umass-amherst-alcohol-and-drug-abuse-
prevention-program-earns-recognition-national-model.
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The Committee feels many IHEs need additional guidance to
improve their campus-based drug abuse prevention services and
treatment programs. H.R. 6493 ensures IHEs focus prevention and
recovery services on evidence-based practices but also provides
additional tools for IHEs to do so. Specifically, the
legislation requires collaboration between the Secretary of
Education and Secretary of Health and Human Services through an
interagency agreement. Together, the Secretaries are tasked
with supporting IHEs in developing evidence-based prevention
and recovery programs that prevent alcohol and substance misuse
and support students with SUDs. This guidance will provide IHEs
with new, innovative, and evidence-based ways to support
students impacted by SUDs and will give IHEs a clear framework
for how they can meet the updated requirements under section
120. Incorporating evidence-based approaches into campus-based
substance misuse prevention programs enables IHEs to reduce
short-term and long-term risks for students recovering from
substance misuse. Further, recognizing the interconnectedness
between mental health and substance use disorder, H.R. 6493
encourages IHEs to holistically address substance use and
mental health concerns through campus collaboration and service
integration.
In addition to providing clear guidance and support, H.R.
6493 revitalizes the current statute's competitive grant
program. The Higher Education Amendments of 1998 first
authorized $5 million for competitive grants to help IHEs
develop and implement drug abuse prevention programs. H.R. 6493
updates the grant program and ensures that prevention programs
align with current advancements in mental health and substance
misuse prevention to provide adequate support for campus
substance use disorder prevention efforts. H.R. 6493 also
reauthorizes the grant program at $15 million annually for the
next five years. IHEs can use grant funds for substance misuse
prevention activities including, but not limited to, recovery
support services to students, re-entry assistance for students
on academic probation resulting from substance misuse, and
efforts to prevent fatal and nonfatal overdoses.
H.R. 6493 updates the section of the HEA that outlines what
must go into Program Participation Agreements between IHEs and
the Department of Education (section 487) to ensure that IHEs
are implementing evidence-based programs in order to access
student aid in title IV. It also revises all references of
``drug and alcohol abuse'' to ``alcohol and substance misuse''
to align with current terminology and ensure the law addresses
all SUDs.
CONCLUSION
This Campus Prevention and Recovery Services for Students
Act of 2022 will enhance the efforts of colleges and
universities to provide strong evidence-based prevention
recovery services for students and employees. The Committee
urges the House to pass this bipartisan policy solution swiftly
to improve the state of prevention and treatment services on
our nation's campuses.
Section-by-Section Analysis
Sec. 1. Short title
This section states that the title of the bill is the
Campus Prevention and Recovery Services for Students Act of
2022.
Sec. 2. Alcohol and substance misuse prevention
This section requires institutions that receive federal
funding to adopt and implement an evidence-based program to
prevent alcohol and substance misuse by students and employees.
The section also requires the Secretary to enter into an
agreement with the Secretary of Health and Human Services to
develop best practices to inform the criteria that satisfy the
evidence-based program requirements and promote best practices
for adopting and implementing a program.
This section also updates and improves federal grants to
support evidence-based alcohol and substance misuse prevention
programs. Grant funding under this section can be used for
activities including (but not limited to) providing recovery
support services to students, re-entry assistance for students
on academic probation due to substance misuse, and the
prevention of fatal and nonfatal overdoses. This section
authorizes $15 million for FY 2023 and the five succeeding
fiscal years for these grants.
Sec. 3. Program Participation Agreements
This section updates the Program Participation Agreement
for institutions of higher education to ensure institutions are
implementing evidence-based programs in order to access student
aid in title IV of the Higher Education Act (i.e., Federal Pell
Grants, Federal Work Study, Direct Loans). The section also
clarifies that institutions will not be found out of compliance
with Sec. 120 unless they knowingly and willfully did not adopt
and implement a prevention program.
Sec. 4. Report
Requires the Secretary of Education to report to the House
Committee on Education and Labor and Senate Committee on
Health, Education, Labor and Pensions on efforts of the
Secretary to support the implementation of evidence-based,
substance misuse prevention programs and best practices from
institutions receiving a grant under this section.
Sec. 5. Applicability
This section requires institutions to implement evidence-
based programming beginning two years after the enactment of
the bill.
Explanation of Amendments
The Amendment in the Nature of a Substitute is explained in
the descriptive portions of this report.
Application of Law to the Legislative Branch
Pursuant to section 102(b)(3) of the Congressional
Accountability Act of 1995, Pub. L. No. 104-1, H.R. 6493 does
not apply to terms and conditions of employment or to access to
public services or accommodations within the legislative
branch.
Unfunded Mandate Statement
Pursuant to Section 423 of the Congressional Budget and
Impoundment Control Act of 1974, Pub. L. No. 93-344 (as amended
by Section 101(a)(2) of the Unfunded Mandates Reform Act of
1995, Pub. L. No. 104-4), the Committee adopts as its own the
estimate of federal mandates regarding H.R. 6493, as amended,
prepared by the Director of the Congressional Budget Office.
Earmark Statement
In accordance with clause 9 of rule XXI of the Rules of the
House of Representatives, H.R. 6493 does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as described in clauses 9(e), 9(f), and 9(g) of rule
XXI.
Roll Call Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the Committee advises that there
were no roll call votes taken during the Committee's
consideration of H.R. 6493.
Statement of Performance Goals and Objectives
Pursuant to clause (3)(c) of rule XIII of the Rules of the
House of Representatives, the goal of H.R. 6493 is to improve
and update the section 120 of the Higher Education Act (HEA) to
ensure IHEs utilize evidence-based practices in alcohol and
drug misuse prevention and recovery programs.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of H.R. 6493 is known to be duplicative of another
federal program, including any program that was included in a
report to Congress pursuant to section 21 of Pub. L. No. 111-
139 or the most recent Catalog of Federal Domestic Assistance.
Hearings
Pursuant to section clause 3(c)(6) of rule XIII of the
Rules of the House of Representatives, the Subcommittee on
Health, Employment, Labor and Pensions (HELP) held a hearing
entitled Meeting the Moment: Improving Access to Behavioral and
Mental Health Care, which informed the development of H.R.
6493. The Committee heard testimony on: coverage of mental
health and substance use disorder treatment; the importance of
improving enforcement of health parity laws; the importance of
behavioral health to overall health; the impact of COVID-19 on
mental health; and inequities in access to care. The Committee
heard testimony from: Meiram Bendat, J.D., Ph.D., Founder at
Psych-Appeal; Christine Yu Moutier, M.D., Chief Medical Officer
at the American Foundation for Suicide Prevention; Brian D.
Smedley, Ph.D., Chief of Psychology in the Public Interest at
the American Psychological Association; and James Gelfand,
Senior Vice President of Health Policy at the ERISA Industry
Committee.
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report.
New Budget Authority and CBO Cost Estimate
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a) of the
Congressional Budget and Impoundment Control Act of 1974, and
pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives and section 402 of the Congressional
Budget and Impoundment Control Act of 1974, the Committee has
received the following estimate for H.R. 6493 from the Director
of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 17, 2022.
Hon. Robert C. (Bobby) Scott,
Chairman, Committee on Education and Labor,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 6493, the Campus
Prevention and Recovery Services for Students Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Leah
Koestner.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
H.R. 6493 would amend the Alcohol and Substance Misuse
Prevention Program (currently the Drug and Alcohol Abuse
Prevention Program) and authorize the appropriation of $15
million for each of fiscal years 2023 through 2028 for grants
to institutions of higher education to develop and implement
programs that reduce or prevent alcohol and drug use. (That
authorization would automatically be extended one year under
the General Education Provisions Act.)
The bill also would add new requirements to those
institutions' alcohol and substance misuse prevention programs
in order for them to maintain eligibility for assistance under
any federal program. Finally, the bill would require the
Secretary of Education, in coordination with the Secretary of
Health and Human Services, to develop and issue guidance for
the best practices on implementing those programs.
The costs of the legislation, detailed in Table 1, fall
within budget function 500 (education, training, employment,
and social services).
Based on historical spending patterns of similar grant
programs, and assuming the appropriation of authorized amounts,
CBO estimates that implementing the bill would cost $56 million
over the 2022-2027 period and $49 million after 2027.
TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 6493
----------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
----------------------------------------------------------------------
2022 2023 2024 2025 2026 2027 2022-2027
----------------------------------------------------------------------------------------------------------------
Authorization Level...................... 0 15 15 15 15 15 75
Estimated Outlays........................ 0 1 11 14 15 15 56
----------------------------------------------------------------------------------------------------------------
The CBO staff contact for this estimate is Leah Koestner.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Director of Budget Analysis.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 6493.
However, clause 3(d)(2)(B) of that rule provides that this
requirement does not apply when the committee has included in
its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 402 of the Congressional Budget and Impoundment
Control Act of 1974.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, H.R. 6493, as reported, are shown as follows:
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
HIGHER EDUCATION ACT OF 1965
* * * * * * *
TITLE I--GENERAL PROVISIONS
* * * * * * *
PART B--ADDITIONAL GENERAL PROVISIONS
* * * * * * *
SEC. 120. [DRUG AND ALCOHOL ABUSE] ALCOHOL AND SUBSTANCE MISUSE
PREVENTION.
(a) Restriction on Eligibility.--Notwithstanding any other
provision of law, no institution of higher education shall be
eligible to receive funds or any other form of financial
assistance under any Federal program, including participation
in any federally funded or guaranteed student loan program,
unless the institution certifies to the Secretary that the
institution has adopted and has implemented [a program to
prevent the use of illicit drugs and the abuse of alcohol by
students and employees that,] an evidence-based program to
prevent alcohol and substance misuse by students and employees
that, at a minimum, includes--
(1) the annual distribution to each student and
employee of--
(A) standards of conduct that clearly
prohibit, at a minimum, the unlawful
possession, use, or distribution of illicit
drugs and alcohol by students and employees on
the institution's property or as part of any of
the institution's activities;
(B) a description of the applicable legal
sanctions under local, State, or Federal law
for the unlawful possession or distribution of
illicit drugs and alcohol;
(C) a description of the health-risks
associated with the use of illicit drugs and
the abuse of alcohol;
[(D) a description of any drug or alcohol
counseling, treatment, or rehabilitation or re-
entry programs that are available to employees
or students; and]
(D) a description of any alcohol or substance
misuse counseling, treatment, rehabilitation,
recovery, re-entry, or recovery support
programs provided by the institution (including
in partnership with a community-based
organization) that are available to employees
or students; and
(E) a clear statement [that the institution
will impose] of the policies of the institution
regarding sanctions on students and employees
(consistent with local, State, and Federal
law), and a description of those sanctions, up
to and including expulsion or termination of
employment and referral for prosecution, for
violations of the standards of conduct required
by subparagraph (A); and
(2) a biennial review by the institution of the
institution's program to--
(A) determine the program's effectiveness and
implement changes to the program if the changes
are needed;
(B) determine the number of drug and alcohol-
related violations and fatalities that--
(i) occur on the institution's campus
(as defined in section 485(f)(6)), or
as part of any of the institution's
activities; and
(ii) are reported to campus
officials;
(C) determine the number and type of
sanctions described in paragraph (1)(E) that
are imposed by the institution as a result of
drug and alcohol-related violations and
fatalities on the institution's campus or as
part of any of the institution's activities;
and
(D) ensure that the sanctions required by
paragraph (1)(E) are consistently enforced.
(b) Information Availability.--Each institution of higher
education that provides the certification required by
subsection (a) shall, upon request, make available to the
Secretary and to the public a copy of each item required by
subsection (a)(1) as well as the results of the biennial review
required by subsection (a)(2).
(c) Regulations.--
(1) In general.--The Secretary shall publish
regulations to implement and enforce the provisions of
this section, including regulations that provide for--
(A) the periodic review of a representative
sample of programs required by subsection (a);
[and]
(B) a range of responses and sanctions for
institutions of higher education that fail to
implement their programs or to consistently
enforce their sanctions, including information
and technical assistance, the development of a
compliance agreement, and the termination of
any form of Federal financial assistance[.];
and
(C) compliance assistance to assist
institutions in complying with the requirements
of this section.
(2) Interagency agreement.--Not later than 180 days
after the date of enactment of this paragraph, the
Secretary shall enter into an interagency agreement
with the Secretary of Health and Human Services to--
(A) develop best practices that inform
criteria which satisfy the requirement under
subsection (a) that an institution of higher
education has adopted and has implemented an
evidence-based program described in such
subsection;
(B) establish a process for disseminating the
best practices for adopting and implementing
such an evidence-based program; and
(C) establish a process that promotes
coordination and collaboration between
institutions of higher education and the
respective State agencies that administer the
Substance Abuse Prevention and Treatment Block
Grants pursuant to subpart II of part B of
title XIX of the Public Health Service Act (42
U.S.C. 300x-21).
(3) Guidance.--Not later than 1 year after the date
of the enactment of this paragraph, the Secretary
shall, in coordination with the Secretary of Health and
Human Services, issue guidance with respect to the
criteria described in paragraph (2)(A).
[(2)](4) Rehabilitation program.--The sanctions
required by subsection (a)(1)(E) may include the
completion of an appropriate rehabilitation program.
(d) Appeals.--Upon determination by the Secretary to
terminate financial assistance to any institution of higher
education under this section, the institution may file an
appeal with an administrative law judge before the expiration
of the 30-day period beginning on the date such institution is
notified of the decision to terminate financial assistance
under this section. Such judge shall hold a hearing with
respect to such termination of assistance before the expiration
of the 45-day period beginning on the date that such appeal is
filed. Such judge may extend such 45-day period upon a motion
by the institution concerned. The decision of the judge with
respect to such termination shall be considered to be a final
agency action.
(e) Alcohol and [Drug Abuse] Substance Misuse Prevention
Grants.--
(1) Program authority.--The Secretary may make grants
to institutions of higher education or consortia of
such institutions, and enter into contracts with such
institutions, consortia, and [other organizations]
community-based organizations that partner with
institutions of higher education, to develop,
implement, operate, improve, and disseminate [programs
of prevention, and education (including treatment-
referral) to reduce and eliminate the illegal use of
drugs and alcohol and the violence associated with such
use] evidence-based programs of alcohol and substance
misuse prevention and education (including programs to
improve access to treatment, referral for treatment
services, or crisis intervention services) to eliminate
illegal substance use, decrease substance misuse, and
improve public health and safety. Such grants or
contracts may also be used for the support of a higher
education center for [alcohol and drug abuse] substance
use disorder prevention that will provide training,
technical assistance, evaluation, dissemination, and
associated services and assistance to the higher
education community as determined by the Secretary and
institutions of higher education.
(2) Additional uses.--In addition to the activities
described in paragraph (1), a grant or contract awarded
under paragraph (1) may be used to carry out one or
more of the following evidence-based programs or
activities:
(A) Providing programs for recovery support
services, and peer-to-peer support services and
counseling for students with a substance use
disorder.
(B) Promoting integration and collaboration
in campus-based health services between primary
care, substance use disorder services, and
mental health services.
(C) Promoting integrated care services for
students related to screening, diagnosis,
prevention, and treatment of mental,
behavioral, and substance use disorders.
(D) Providing re-entry assistance for
students on academic probation due to their
substance use disorder.
(E) Preventing fatal and nonfatal overdoses,
including restoring existing mental health and
substance use disorder services after a natural
disaster or public health emergency declared by
the Secretary of Health and Human Services
under section 319 of the Public Health Service
Act (42 U.S.C. 247d).
(F) Providing education to students, faculty,
or other personnel on--
(i) recognizing the signs and
symptoms of substance use disorder, and
how to engage and support a person in a
crisis situation;
(ii) resources available in the
community, within the institution of
higher education, and other relevant
resources for individuals with a
substance use disorder; and
(iii) safely de-escalating crisis
situations involving individuals with a
substance use disorder.
[(2)](3) Awards.--Grants and contracts shall be
awarded under paragraph (1) on a competitive basis.
[(3)](4) Applications.--An institution of higher
education, a consortium of such institutions, or
another organization that desires to receive a grant or
contract under paragraph (1) shall submit an
application to the Secretary at such time, in such
manner, and containing or accompanied by such
information as the Secretary may reasonably require by
regulation.
[(4)](5) Additional requirements.--
(A) Participation.--In awarding grants and
contracts under this subsection the Secretary
shall make every effort to ensure--
(i) the equitable participation of
private and public institutions of
higher education (including community
and junior colleges); and
(ii) the equitable geographic
participation of such institutions.
(B) Consideration.--In awarding grants and
contracts under this subsection the Secretary
shall give appropriate consideration to
institutions of higher education with limited
enrollment.
[(5) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection such sums as may be necessary for fiscal
year 2009 and each of the five succeeding fiscal
years.]
(6) Authorization of appropriations.--There are
authorized to be appropriated to carry out this section
$15,000,000 for fiscal year 2023 and each of the 5
succeeding fiscal years.
* * * * * * *
TITLE IV--STUDENT ASSISTANCE
* * * * * * *
Part G--General Provisions Relating to Student Assistance Programs
* * * * * * *
SEC. 487. PROGRAM PARTICIPATION AGREEMENTS.
(a) Required for Programs of Assistance; Contents.--In order
to be an eligible institution for the purposes of any program
authorized under this title, an institution must be an
institution of higher education or an eligible institution (as
that term is defined for the purpose of that program) and
shall, except with respect to a program under subpart 4 of part
A, enter into a program participation agreement with the
Secretary. The agreement shall condition the initial and
continuing eligibility of an institution to participate in a
program upon compliance with the following requirements:
(1) The institution will use funds received by it for
any program under this title and any interest or other
earnings thereon solely for the purpose specified in
and in accordance with the provision of that program.
(2) The institution shall not charge any student a
fee for processing or handling any application, form,
or data required to determine the student's eligibility
for assistance under this title or the amount of such
assistance.
(3) The institution will establish and maintain such
administrative and fiscal procedures and records as may
be necessary to ensure proper and efficient
administration of funds received from the Secretary or
from students under this title, together with
assurances that the institution will provide, upon
request and in a timely fashion, information relating
to the administrative capability and financial
responsibility of the institution to--
(A) the Secretary;
(B) the appropriate guaranty agency; and
(C) the appropriate accrediting agency or
association.
(4) The institution will comply with the provisions
of subsection (c) of this section and the regulations
prescribed under that subsection, relating to fiscal
eligibility.
(5) The institution will submit reports to the
Secretary and, in the case of an institution
participating in a program under part B or part E, to
holders of loans made to the institution's students
under such parts at such times and containing such
information as the Secretary may reasonably require to
carry out the purpose of this title.
(6) The institution will not provide any student with
any statement or certification to any lender under part
B that qualifies the student for a loan or loans in
excess of the amount that student is eligible to borrow
in accordance with sections 425(a), 428(a)(2), and
428(b)(1) (A) and (B).
(7) The institution will comply with the requirements
of section 485.
(8) In the case of an institution that advertises job
placement rates as a means of attracting students to
enroll in the institution, the institution will make
available to prospective students, at or before the
time of application (A) the most recent available data
concerning employment statistics, graduation
statistics, and any other information necessary to
substantiate the truthfulness of the advertisements,
and (B) relevant State licensing requirements of the
State in which such institution is located for any job
for which the course of instruction is designed to
prepare such prospective students.
(9) In the case of an institution participating in a
program under part B or D, the institution will inform
all eligible borrowers enrolled in the institution
about the availability and eligibility of such
borrowers for State grant assistance from the State in
which the institution is located, and will inform such
borrowers from another State of the source for further
information concerning such assistance from that State.
[(10)](10)(A) The institution certifies that it has
in operation [a drug abuse prevention program] an
alcohol and substance misuse prevention program in
accordance with section 120 that is determined by the
institution to be accessible to any officer, employee,
or student at the institution.
(B) The institution shall be considered in compliance
with the requirements of subparagraph (A) unless there
is a showing that the institution knowing and willfully
did not implement a prevention program described in
such subparagraph.
(11) In the case of any institution whose students
receive financial assistance pursuant to section
484(d), the institution will make available to such
students a program proven successful in assisting
students in obtaining a certificate of high school
equivalency.
(12) The institution certifies that--
(A) the institution has established a campus
security policy; and
(B) the institution has complied with the
disclosure requirements of section 485(f).
(13) The institution will not deny any form of
Federal financial aid to any student who meets the
eligibility requirements of this title on the grounds
that the student is participating in a program of study
abroad approved for credit by the institution.
(14)(A) The institution, in order to participate as
an eligible institution under part B or D, will develop
a Default Management Plan for approval by the Secretary
as part of its initial application for certification as
an eligible institution and will implement such Plan
for two years thereafter.
(B) Any institution of higher education which changes
ownership and any eligible institution which changes
its status as a parent or subordinate institution
shall, in order to participate as an eligible
institution under part B or D, develop a Default
Management Plan for approval by the Secretary and
implement such Plan for two years after its change of
ownership or status.
(C) This paragraph shall not apply in the case of an
institution in which (i) neither the parent nor the
subordinate institution has a cohort default rate in
excess of 10 percent, and (ii) the new owner of such
parent or subordinate institution does not, and has
not, owned any other institution with a cohort default
rate in excess of 10 percent.
(15) The institution acknowledges the authority of
the Secretary, guaranty agencies, lenders, accrediting
agencies, the Secretary of Veterans Affairs, and the
State agencies under subpart 1 of part H to share with
each other any information pertaining to the
institution's eligibility to participate in programs
under this title or any information on fraud and abuse.
(16)(A) The institution will not knowingly employ an
individual in a capacity that involves the
administration of programs under this title, or the
receipt of program funds under this title, who has been
convicted of, or has pled nolo contendere or guilty to,
a crime involving the acquisition, use, or expenditure
of funds under this title, or has been judicially
determined to have committed fraud involving funds
under this title or contract with an institution or
third party servicer that has been terminated under
section 432 involving the acquisition, use, or
expenditure of funds under this title, or who has been
judicially determined to have committed fraud involving
funds under this title.
(B) The institution will not knowingly contract with
or employ any individual, agency, or organization that
has been, or whose officers or employees have been--
(i) convicted of, or pled nolo contendere or
guilty to, a crime involving the acquisition,
use, or expenditure of funds under this title;
or
(ii) judicially determined to have committed
fraud involving funds under this title.
(17) The institution will complete surveys conducted
as a part of the Integrated Postsecondary Education
Data System (IPEDS) or any other Federal postsecondary
institution data collection effort, as designated by
the Secretary, in a timely manner and to the
satisfaction of the Secretary.
(18) The institution will meet the requirements
established pursuant to section 485(g).
(19) The institution will not impose any penalty,
including the assessment of late fees, the denial of
access to classes, libraries, or other institutional
facilities, or the requirement that the student borrow
additional funds, on any student because of the
student's inability to meet his or her financial
obligations to the institution as a result of the
delayed disbursement of the proceeds of a loan made
under this title due to compliance with the provisions
of this title, or delays attributable to the
institution.
(20) The institution will not provide any commission,
bonus, or other incentive payment based directly or
indirectly on success in securing enrollments or
financial aid to any persons or entities engaged in any
student recruiting or admission activities or in making
decisions regarding the award of student financial
assistance, except that this paragraph shall not apply
to the recruitment of foreign students residing in
foreign countries who are not eligible to receive
Federal student assistance.
(21) The institution will meet the requirements
established by the Secretary and accrediting agencies
or associations, and will provide evidence to the
Secretary that the institution has the authority to
operate within a State.
(22) The institution will comply with the refund
policy established pursuant to section 484B.
(23)(A) The institution, if located in a State to
which section 4(b) of the National Voter Registration
Act of 1993 (42 U.S.C. 1973gg-2(b)) does not apply,
will make a good faith effort to distribute a mail
voter registration form, requested and received from
the State, to each student enrolled in a degree or
certificate program and physically in attendance at the
institution, and to make such forms widely available to
students at the institution.
(B) The institution shall request the forms from the
State 120 days prior to the deadline for registering to
vote within the State. If an institution has not
received a sufficient quantity of forms to fulfill this
section from the State within 60 days prior to the
deadline for registering to vote in the State, the
institution shall not be held liable for not meeting
the requirements of this section during that election
year.
(C) This paragraph shall apply to general and special
elections for Federal office, as defined in section
301(3) of the Federal Election Campaign Act of 1971 (2
U.S.C. 431(3)), and to the elections for Governor or
other chief executive within such State).
(D) The institution shall be considered in
compliance with the requirements of
subparagraph (A) for each student to whom the
institution electronically transmits a message
containing a voter registration form acceptable
for use in the State in which the institution
is located, or an Internet address where such a
form can be downloaded, if such information is
in an electronic message devoted exclusively to
voter registration.
(24) In the case of a proprietary institution of
higher education (as defined in section 102(b)), such
institution will derive not less than ten percent of
such institution's revenues from sources other than
Federal funds that are disbursed or delivered to or on
behalf of a student to be used to attend such
institution (referred to in this paragraph and
subsection (d) as ``Federal education assistance
funds''), as calculated in accordance with subsection
(d)(1), or will be subject to the sanctions described
in subsection (d)(2).
(25) In the case of an institution that participates
in a loan program under this title, the institution
will--
(A) develop a code of conduct with respect to
such loans with which the institution's
officers, employees, and agents shall comply,
that--
(i) prohibits a conflict of interest
with the responsibilities of an
officer, employee, or agent of an
institution with respect to such loans;
and
(ii) at a minimum, includes the
provisions described in subsection (e);
(B) publish such code of conduct prominently
on the institution's website; and
(C) administer and enforce such code by, at a
minimum, requiring that all of the
institution's officers, employees, and agents
with responsibilities with respect to such
loans be annually informed of the provisions of
the code of conduct.
(26) The institution will, upon written request,
disclose to the alleged victim of any crime of violence
(as that term is defined in section 16 of title 18,
United States Code), or a nonforcible sex offense, the
report on the results of any disciplinary proceeding
conducted by such institution against a student who is
the alleged perpetrator of such crime or offense with
respect to such crime or offense. If the alleged victim
of such crime or offense is deceased as a result of
such crime or offense, the next of kin of such victim
shall be treated as the alleged victim for purposes of
this paragraph.
(27) In the case of an institution that has entered
into a preferred lender arrangement, the institution
will at least annually compile, maintain, and make
available for students attending the institution, and
the families of such students, a list, in print or
other medium, of the specific lenders for loans made,
insured, or guaranteed under this title or private
education loans that the institution recommends,
promotes, or endorses in accordance with such preferred
lender arrangement. In making such list, the
institution shall comply with the requirements of
subsection (h).
(28)(A) The institution will, upon the request of an
applicant for a private education loan, provide to the
applicant the form required under section 128(e)(3) of
the Truth in Lending Act (15 U.S.C. 1638(e)(3)), and
the information required to complete such form, to the
extent the institution possesses such information.
(B) For purposes of this paragraph, the term
``private education loan'' has the meaning given such
term in section 140 of the Truth in Lending Act.
(29) The institution certifies that the institution--
(A) has developed plans to effectively combat
the unauthorized distribution of copyrighted
material, including through the use of a
variety of technology-based deterrents; and
(B) will, to the extent practicable, offer
alternatives to illegal downloading or peer-to-
peer distribution of intellectual property, as
determined by the institution in consultation
with the chief technology officer or other
designated officer of the institution.
(b) Hearings.--(1) An institution that has received written
notice of a final audit or program review determination and
that desires to have such determination reviewed by the
Secretary shall submit to the Secretary a written request for
review not later than 45 days after receipt of notification of
the final audit or program review determination.
(2) The Secretary shall, upon receipt of written notice under
paragraph (1), arrange for a hearing and notify the institution
within 30 days of receipt of such notice the date, time, and
place of such hearing. Such hearing shall take place not later
than 120 days from the date upon which the Secretary notifies
the institution.
(c) Audits; Financial Responsibility; Enforcement of
Standards.--(1) Notwithstanding any other provisions of this
title, the Secretary shall prescribe such regulations as may be
necessary to provide for--
(A)(i) except as provided in clauses (ii) and (iii),
a financial audit of an eligible institution with
regard to the financial condition of the institution in
its entirety, and a compliance audit of such
institution with regard to any funds obtained by it
under this title or obtained from a student or a parent
who has a loan insured or guaranteed by the Secretary
under this title, on at least an annual basis and
covering the period since the most recent audit,
conducted by a qualified, independent organization or
person in accordance with standards established by the
Comptroller General for the audit of governmental
organizations, programs, and functions, and as
prescribed in regulations of the Secretary, the results
of which shall be submitted to the Secretary and shall
be available to cognizant guaranty agencies, eligible
lenders, State agencies, and the appropriate State
agency notifying the Secretary under subpart 1 of part
H, except that the Secretary may modify the
requirements of this clause with respect to
institutions of higher education that are foreign
institutions, and may waive such requirements with
respect to a foreign institution whose students receive
less than $500,000 in loans under this title during the
award year preceding the audit period;
(ii) with regard to an eligible institution which is
audited under chapter 75 of title 31, United States
Code, deeming such audit to satisfy the requirements of
clause (i) for the period covered by such audit; or
(iii) at the discretion of the Secretary, with regard
to an eligible institution (other than an eligible
institution described in section 102(a)(1)(C)) that has
obtained less than $200,000 in funds under this title
during each of the 2 award years that precede the audit
period and submits a letter of credit payable to the
Secretary equal to not less than \1/2\ of the annual
potential liabilities of such institution as determined
by the Secretary, deeming an audit conducted every 3
years to satisfy the requirements of clause (i), except
for the award year immediately preceding renewal of the
institution's eligibility under section 498(g);
(B) in matters not governed by specific program
provisions, the establishment of reasonable standards
of financial responsibility and appropriate
institutional capability for the administration by an
eligible institution of a program of student financial
aid under this title, including any matter the
Secretary deems necessary to the sound administration
of the financial aid programs, such as the pertinent
actions of any owner, shareholder, or person exercising
control over an eligible institution;
(C)(i) except as provided in clause (ii), a
compliance audit of a third party servicer (other than
with respect to the servicer's functions as a lender if
such functions are otherwise audited under this part
and such audits meet the requirements of this clause),
with regard to any contract with an eligible
institution, guaranty agency, or lender for
administering or servicing any aspect of the student
assistance programs under this title, at least once
every year and covering the period since the most
recent audit, conducted by a qualified, independent
organization or person in accordance with standards
established by the Comptroller General for the audit of
governmental organizations, programs, and functions,
and as prescribed in regulations of the Secretary, the
results of which shall be submitted to the Secretary;
or
(ii) with regard to a third party servicer that is
audited under chapter 75 of title 31, United States
Code, such audit shall be deemed to satisfy the
requirements of clause (i) for the period covered by
such audit;
(D)(i) a compliance audit of a secondary market with
regard to its transactions involving, and its servicing
and collection of, loans made under this title, at
least once a year and covering the period since the
most recent audit, conducted by a qualified,
independent organization or person in accordance with
standards established by the Comptroller General for
the audit of governmental organizations, programs, and
functions, and as prescribed in regulations of the
Secretary, the results of which shall be submitted to
the Secretary; or
(ii) with regard to a secondary market that is
audited under chapter 75 of title 31, United States
Code, such audit shall be deemed to satisfy the
requirements of clause (i) for the period covered by
the audit;
(E) the establishment, by each eligible institution
under part B responsible for furnishing to the lender
the statement required by section 428(a)(2)(A)(i), of
policies and procedures by which the latest known
address and enrollment status of any student who has
had a loan insured under this part and who has either
formally terminated his enrollment, or failed to re-
enroll on at least a half-time basis, at such
institution, shall be furnished either to the holder
(or if unknown, the insurer) of the note, not later
than 60 days after such termination or failure to re-
enroll;
(F) the limitation, suspension, or termination of the
participation in any program under this title of an
eligible institution, or the imposition of a civil
penalty under paragraph (3)(B) whenever the Secretary
has determined, after reasonable notice and opportunity
for hearing, that such institution has violated or
failed to carry out any provision of this title, any
regulation prescribed under this title, or any
applicable special arrangement, agreement, or
limitation, except that no period of suspension under
this section shall exceed 60 days unless the
institution and the Secretary agree to an extension or
unless limitation or termination proceedings are
initiated by the Secretary within that period of time;
(G) an emergency action against an institution, under
which the Secretary shall, effective on the date on
which a notice and statement of the basis of the action
is mailed to the institution (by registered mail,
return receipt requested), withhold funds from the
institution or its students and withdraw the
institution's authority to obligate funds under any
program under this title, if the Secretary--
(i) receives information, determined by the
Secretary to be reliable, that the institution
is violating any provision of this title, any
regulation prescribed under this title, or any
applicable special arrangement, agreement, or
limitation,
(ii) determines that immediate action is
necessary to prevent misuse of Federal funds,
and
(iii) determines that the likelihood of loss
outweighs the importance of the procedures
prescribed under subparagraph (D) for
limitation, suspension, or termination,
except that an emergency action shall not exceed 30
days unless limitation, suspension, or termination
proceedings are initiated by the Secretary against the
institution within that period of time, and except that
the Secretary shall provide the institution an
opportunity to show cause, if it so requests, that the
emergency action is unwarranted;
(H) the limitation, suspension, or termination of the
eligibility of a third party servicer to contract with
any institution to administer any aspect of an
institution's student assistance program under this
title, or the imposition of a civil penalty under
paragraph (3)(B), whenever the Secretary has
determined, after reasonable notice and opportunity for
a hearing, that such organization, acting on behalf of
an institution, has violated or failed to carry out any
provision of this title, any regulation prescribed
under this title, or any applicable special
arrangement, agreement, or limitation, except that no
period of suspension under this subparagraph shall
exceed 60 days unless the organization and the
Secretary agree to an extension, or unless limitation
or termination proceedings are initiated by the
Secretary against the individual or organization within
that period of time; and
(I) an emergency action against a third party
servicer that has contracted with an institution to
administer any aspect of the institution's student
assistance program under this title, under which the
Secretary shall, effective on the date on which a
notice and statement of the basis of the action is
mailed to such individual or organization (by
registered mail, return receipt requested), withhold
funds from the individual or organization and withdraw
the individual or organization's authority to act on
behalf of an institution under any program under this
title, if the Secretary--
(i) receives information, determined by the
Secretary to be reliable, that the individual
or organization, acting on behalf of an
institution, is violating any provision of this
title, any regulation prescribed under this
title, or any applicable special arrangement,
agreement, or limitation,
(ii) determines that immediate action is
necessary to prevent misuse of Federal funds,
and
(iii) determines that the likelihood of loss
outweighs the importance of the procedures
prescribed under subparagraph (F), for
limitation, suspension, or termination,
except that an emergency action shall not exceed 30
days unless the limitation, suspension, or termination
proceedings are initiated by the Secretary against the
individual or organization within that period of time,
and except that the Secretary shall provide the
individual or organization an opportunity to show
cause, if it so requests, that the emergency action is
unwarranted.
(2) If an individual who, or entity that, exercises
substantial control, as determined by the Secretary in
accordance with the definition of substantial control in
subpart 3 of part H, over one or more institutions
participating in any program under this title, or, for purposes
of paragraphs (1) (H) and (I), over one or more organizations
that contract with an institution to administer any aspect of
the institution's student assistance program under this title,
is determined to have committed one or more violations of the
requirements of any program under this title, or has been
suspended or debarred in accordance with the regulations of the
Secretary, the Secretary may use such determination,
suspension, or debarment as the basis for imposing an emergency
action on, or limiting, suspending, or terminating, in a single
proceeding, the participation of any or all institutions under
the substantial control of that individual or entity.
(3)(A) Upon determination, after reasonable notice and
opportunity for a hearing, that an eligible institution has
engaged in substantial misrepresentation of the nature of its
educational program, its financial charges, or the
employability of its graduates, the Secretary may suspend or
terminate the eligibility status for any or all programs under
this title of any otherwise eligible institution, in accordance
with procedures specified in paragraph (1)(D) of this
subsection, until the Secretary finds that such practices have
been corrected.
(B)(i) Upon determination, after reasonable notice and
opportunity for a hearing, that an eligible institution--
(I) has violated or failed to carry out any provision
of this title or any regulation prescribed under this
title; or
(II) has engaged in substantial misrepresentation of
the nature of its educational program, its financial
charges, and the employability of its graduates,
the Secretary may impose a civil penalty upon such institution
of not to exceed $25,000 for each violation or
misrepresentation.
(ii) Any civil penalty may be compromised by the Secretary.
In determining the amount of such penalty, or the amount agreed
upon in compromise, the appropriateness of the penalty to the
size of the institution of higher education subject to the
determination, and the gravity of the violation, failure, or
misrepresentation shall be considered. The amount of such
penalty, when finally determined, or the amount agreed upon in
compromise, may be deducted from any sums owing by the United
States to the institution charged.
(4) The Secretary shall publish a list of State agencies
which the Secretary determines to be reliable authority as to
the quality of public postsecondary vocational education in
their respective States for the purpose of determining
eligibility for all Federal student assistance programs.
(5) The Secretary shall make readily available to appropriate
guaranty agencies, eligible lenders, State agencies notifying
the Secretary under subpart 1 of part H, and accrediting
agencies or associations the results of the audits of eligible
institutions conducted pursuant to paragraph (1)(A).
(6) The Secretary is authorized to provide any information
collected as a result of audits conducted under this section,
together with audit information collected by guaranty agencies,
to any Federal or State agency having responsibilities with
respect to student financial assistance, including those
referred to in subsection (a)(15) of this section.
(7) Effective with respect to any audit conducted under this
subsection after December 31, 1988, if, in the course of
conducting any such audit, the personnel of the Department of
Education discover, or are informed of, grants or other
assistance provided by an institution in accordance with this
title for which the institution has not received funds
appropriated under this title (in the amount necessary to
provide such assistance), including funds for which
reimbursement was not requested prior to such discovery or
information, such institution shall be permitted to offset that
amount against any sums determined to be owed by the
institution pursuant to such audit, or to receive reimbursement
for that amount (if the institution does not owe any such
sums).
(d) Implementation of Non-Federal Revenue Requirement.--
(1) Calculation.--In making calculations under
subsection (a)(24), a proprietary institution of higher
education shall--
(A) use the cash basis of accounting, except
in the case of loans described in subparagraph
(D)(i) that are made by the proprietary
institution of higher education;
(B) 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 this title;
(ii) activities conducted by the
institution that are necessary for the
education and training of the
institution's students, if such
activities are--
(I) conducted on campus or at
a facility under the control of
the institution;
(II) performed under the
supervision of a member of the
institution's faculty; and
(III) required to be
performed by all students in a
specific educational program at
the institution; and
(iii) funds paid by a student, or on
behalf of a student by a party other
than the institution, for an education
or training program that is not
eligible for funds under this title, if
the program--
(I) is approved or licensed
by the appropriate State
agency;
(II) is accredited by an
accrediting agency recognized
by the Secretary; or
(III) provides an industry-
recognized credential or
certification;
(C) presume that any Federal education
assistance funds that are disbursed or
delivered to or on behalf of a student will be
used to pay the student's tuition, fees, or
other institutional charges, regardless of
whether the institution credits those funds to
the student's account or pays those 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 non-
Federal public agencies or private
sources independent of the institution;
(ii) funds provided under a
contractual arrangement with a Federal,
State, or local government agency for
the purpose of providing job training
to low-income individuals who are in
need of that training;
(iii) funds used by a student from
savings plans for educational expenses
established by or on behalf of the
student and which qualify for special
tax treatment under the Internal
Revenue Code of 1986; or
(iv) institutional scholarships
described in subparagraph (D)(iii);
(D) include institutional aid as revenue to
the school only as follows:
(i) in the case of loans made by a
proprietary institution of higher
education on or after July 1, 2008 and
prior to July 1, 2012, the net present
value of such loans made by the
institution during the applicable
institutional fiscal year accounted for
on an accrual basis and estimated in
accordance with generally accepted
accounting principles and related
standards and guidance, if the loans--
(I) are bona fide as
evidenced by enforceable
promissory notes;
(II) are issued at intervals
related to the institution's
enrollment periods; and
(III) are subject to regular
loan repayments and
collections;
(ii) in the case of loans made by a
proprietary institution of higher
education on or after July 1, 2012,
only the amount of loan repayments
received during the applicable
institutional fiscal year, excluding
repayments on loans made and accounted
for as specified in clause (i); and
(iii) in the case of scholarships
provided by a proprietary institution
of higher education, only those
scholarships provided by the
institution in the form of monetary aid
or tuition discounts based upon the
academic achievements or financial need
of students, disbursed during each
fiscal year from an established
restricted account, and only to the
extent that funds in that account
represent designated funds from an
outside source or from income earned on
those funds;
(E) in the case of each student who receives
a loan on or after July 1, 2008, and prior to
July 1, 2011, that is authorized under section
428H or that is a Federal Direct Unsubsidized
Stafford Loan, treat as revenue received by the
institution from sources other than funds
received under this title, the amount by which
the disbursement of such loan received by the
institution exceeds the limit on such loan in
effect on the day before the date of enactment
of the Ensuring Continued Access to Student
Loans Act of 2008; and
(F) exclude from revenues--
(i) the amount of funds the
institution received under part C,
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;
(iii) the amount of funds provided by
the institution as matching funds for a
program under this title;
(iv) the amount of funds provided by
the institution for a program under
this title that are required to be
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.
(2) Sanctions.--
(A) Ineligibility.--A proprietary institution
of higher education that fails to meet a
requirement of subsection (a)(24) for two
consecutive institutional fiscal years shall be
ineligible to participate in the programs
authorized by this title for a period of not
less than two institutional fiscal years. To
regain eligibility to participate in the
programs authorized by this title, a
proprietary institution of higher education
shall demonstrate compliance with all
eligibility and certification requirements
under section 498 for a minimum of two
institutional fiscal years after the
institutional fiscal year in which the
institution became ineligible.
(B) Additional enforcement.--In addition to
such other means of enforcing the requirements
of this title as may be available to the
Secretary, if a proprietary institution of
higher education fails to meet a requirement of
subsection (a)(24) for any institutional fiscal
year, then the institution's eligibility to
participate in the programs authorized by this
title becomes provisional for the two
institutional fiscal years after the
institutional fiscal year in which the
institution failed to meet the requirement of
subsection (a)(24), except that such
provisional eligibility shall terminate--
(i) on the expiration date of the
institution's program participation
agreement under this subsection that is
in effect on the date the Secretary
determines that the institution failed
to meet the requirement of subsection
(a)(24); or
(ii) in the case that the Secretary
determines that the institution failed
to meet a requirement of subsection
(a)(24) for two consecutive
institutional fiscal years, on the date
the institution is determined
ineligible in accordance with
subparagraph (A).
(3) Publication on college navigator website.--The
Secretary shall publicly disclose on the College
Navigator website--
(A) the identity of any proprietary
institution of higher education that fails to
meet a requirement of subsection (a)(24); and
(B) the extent to which the institution
failed to meet such requirement.
(4) Report to congress.--Not later than July 1, 2009,
and 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 this title, as
provided in the audited financial statements submitted
to the Secretary by each institution pursuant to the
requirements of subsection (a)(24)--
(A) the amount and percentage of such
institution's revenues received from sources
under this title; and
(B) the amount and percentage of such
institution's revenues received from other
sources.
(e) Code of Conduct Requirements.--An institution of higher
education's code of conduct, as required under subsection
(a)(25), shall include the following requirements:
(1) Ban on revenue-sharing arrangements.--
(A) Prohibition.--The institution shall not
enter into any revenue-sharing arrangement with
any lender.
(B) Definition.--For purposes of this
paragraph, the term ``revenue-sharing
arrangement'' means an arrangement between an
institution and a lender under which--
(i) a lender provides or issues a
loan that is made, insured, or
guaranteed under this title to students
attending the institution or to the
families of such students; and
(ii) the institution recommends the
lender or the loan products of the
lender and in exchange, the lender pays
a fee or provides other material
benefits, including revenue or profit
sharing, to the institution, an officer
or employee of the institution, or an
agent.
(2) Gift ban.--
(A) Prohibition.--No officer or employee of
the institution who is employed in the
financial aid office of the institution or who
otherwise has responsibilities with respect to
education loans, or agent who has
responsibilities with respect to education
loans, shall solicit or accept any gift from a
lender, guarantor, or servicer of education
loans.
(B) Definition of gift.--
(i) In general.--In this paragraph,
the term ``gift'' means any gratuity,
favor, discount, entertainment,
hospitality, loan, or other item having
a monetary value of more than a de
minimus amount. The term includes a
gift of services, transportation,
lodging, or meals, whether provided in
kind, by purchase of a ticket, payment
in advance, or reimbursement after the
expense has been incurred.
(ii) Exceptions.--The term ``gift''
shall not include any of the following:
(I) Standard material,
activities, or programs on
issues related to a loan,
default aversion, default
prevention, or financial
literacy, such as a brochure, a
workshop, or training.
(II) Food, refreshments,
training, or informational
material furnished to an
officer or employee of an
institution, or to an agent, as
an integral part of a training
session that is designed to
improve the service of a
lender, guarantor, or servicer
of education loans to the
institution, if such training
contributes to the professional
development of the officer,
employee, or agent.
(III) Favorable terms,
conditions, and borrower
benefits on an education loan
provided to a student employed
by the institution if such
terms, conditions, or benefits
are comparable to those
provided to all students of the
institution.
(IV) Entrance and exit
counseling services provided to
borrowers to meet the
institution's responsibilities
for entrance and exit
counseling as required by
subsections (b) and (l) of
section 485, as long as--
(aa) the
institution's staff are
in control of the
counseling, (whether in
person or via
electronic
capabilities); and
(bb) such counseling
does not promote the
products or services of
any specific lender.
(V) Philanthropic
contributions to an institution
from a lender, servicer, or
guarantor of education loans
that are unrelated to education
loans or any contribution from
any lender, guarantor, or
servicer that is not made in
exchange for any advantage
related to education loans.
(VI) State education grants,
scholarships, or financial aid
funds administered by or on
behalf of a State.
(iii) Rule for gifts to family
members.--For purposes of this
paragraph, a gift to a family member of
an officer or employee of an
institution, to a family member of an
agent, or to any other individual based
on that individual's relationship with
the officer, employee, or agent, shall
be considered a gift to the officer,
employee, or agent if--
(I) the gift is given with
the knowledge and acquiescence
of the officer, employee, or
agent; and
(II) the officer, employee,
or agent has reason to believe
the gift was given because of
the official position of the
officer, employee, or agent.
(3) Contracting arrangements prohibited.--
(A) Prohibition.--An officer or employee who
is employed in the financial aid office of the
institution or who otherwise has
responsibilities with respect to education
loans, or an agent who has responsibilities
with respect to education loans, shall not
accept from any lender or affiliate of any
lender any fee, payment, or other financial
benefit (including the opportunity to purchase
stock) as compensation for any type of
consulting arrangement or other contract to
provide services to a lender or on behalf of a
lender relating to education loans.
(B) Exceptions.--Nothing in this subsection
shall be construed as prohibiting--
(i) an officer or employee of an
institution who is not employed in the
institution's financial aid office and
who does not otherwise have
responsibilities with respect to
education loans, or an agent who does
not have responsibilities with respect
to education loans, from performing
paid or unpaid service on a board of
directors of a lender, guarantor, or
servicer of education loans;
(ii) an officer or employee of the
institution who is not employed in the
institution's financial aid office but
who has responsibility with respect to
education loans as a result of a
position held at the institution, or an
agent who has responsibility with
respect to education loans, from
performing paid or unpaid service on a
board of directors of a lender,
guarantor, or servicer of education
loans, if the institution has a written
conflict of interest policy that
clearly sets forth that officers,
employees, or agents must recuse
themselves from participating in any
decision of the board regarding
education loans at the institution; or
(iii) an officer, employee, or
contractor of a lender, guarantor, or
servicer of education loans from
serving on a board of directors, or
serving as a trustee, of an
institution, if the institution has a
written conflict of interest policy
that the board member or trustee must
recuse themselves from any decision
regarding education loans at the
institution.
(4) Interaction with borrowers.--The institution
shall not--
(A) for any first-time borrower, assign,
through award packaging or other methods, the
borrower's loan to a particular lender; or
(B) refuse to certify, or delay certification
of, any loan based on the borrower's selection
of a particular lender or guaranty agency.
(5) Prohibition on offers of funds for private
loans.--
(A) Prohibition.--The institution shall not
request or accept from any lender any offer of
funds to be used for private education loans
(as defined in section 140 of the Truth in
Lending Act), including funds for an
opportunity pool loan, to students in exchange
for the institution providing concessions or
promises regarding providing the lender with--
(i) a specified number of loans made,
insured, or guaranteed under this
title;
(ii) a specified loan volume of such
loans; or
(iii) a preferred lender arrangement
for such loans.
(B) Definition of opportunity pool loan.--In
this paragraph, the term ``opportunity pool
loan'' means a private education loan made by a
lender to a student attending the institution
or the family member of such a student that
involves a payment, directly or indirectly, by
such institution of points, premiums,
additional interest, or financial support to
such lender for the purpose of such lender
extending credit to the student or the family.
(6) Ban on staffing assistance.--
(A) Prohibition.--The institution shall not
request or accept from any lender any
assistance with call center staffing or
financial aid office staffing.
(B) Certain assistance permitted.--Nothing in
paragraph (1) shall be construed to prohibit
the institution from requesting or accepting
assistance from a lender related to--
(i) professional development training
for financial aid administrators;
(ii) providing educational counseling
materials, financial literacy
materials, or debt management materials
to borrowers, provided that such
materials disclose to borrowers the
identification of any lender that
assisted in preparing or providing such
materials; or
(iii) staffing services on a short-
term, nonrecurring basis to assist the
institution with financial aid-related
functions during emergencies, including
State-declared or federally declared
natural disasters, federally declared
national disasters, and other localized
disasters and emergencies identified by
the Secretary.
(7) Advisory board compensation.--Any employee who is
employed in the financial aid office of the
institution, or who otherwise has responsibilities with
respect to education loans or other student financial
aid of the institution, and who serves on an advisory
board, commission, or group established by a lender,
guarantor, or group of lenders or guarantors, shall be
prohibited from receiving anything of value from the
lender, guarantor, or group of lenders or guarantors,
except that the employee may be reimbursed for
reasonable expenses incurred in serving on such
advisory board, commission, or group.
(f) Institutional Requirements for Teach-Outs.--
(1) In general.--In the event the Secretary initiates
the limitation, suspension, or termination of the
participation of an institution of higher education in
any program under this title under the authority of
subsection (c)(1)(F) or initiates an emergency action
under the authority of subsection (c)(1)(G) and its
prescribed regulations, the Secretary shall require
that institution to prepare a teach-out plan for
submission to the institution's accrediting agency or
association in compliance with section 496(c)(3), the
Secretary's regulations on teach-out plans, and the
standards of the institution's accrediting agency or
association.
(2) Teach-out plan defined.--In this subsection, the
term ``teach-out plan'' means a written plan that
provides for the equitable treatment of students if an
institution of higher education ceases to operate
before all students have completed their program of
study, and may include, if required by the
institution's accrediting agency or association, an
agreement between institutions for such a teach-out
plan.
(g) Inspector General Report on Gift Ban Violations.--The
Inspector General of the Department shall--
(1) submit an annual report to the authorizing
committees identifying all violations of an
institution's code of conduct that the Inspector
General has substantiated during the preceding year
relating to the gift ban provisions described in
subsection (e)(2); and
(2) make the report available to the public through
the Department's website.
(h) Preferred Lender List Requirements.--
(1) In general.--In compiling, maintaining, and
making available a preferred lender list as required
under subsection (a)(27), the institution will--
(A) clearly and fully disclose on such
preferred lender list--
(i) not less than the information
required to be disclosed under section
153(a)(2)(A);
(ii) why the institution has entered
into a preferred lender arrangement
with each lender on the preferred
lender list, particularly with respect
to terms and conditions or provisions
favorable to the borrower; and
(iii) that the students attending the
institution, or the families of such
students, do not have to borrow from a
lender on the preferred lender list;
(B) ensure, through the use of the list of
lender affiliates provided by the Secretary
under paragraph (2), that--
(i) there are not less than three
lenders of loans made under part B that
are not affiliates of each other
included on the preferred lender list
and, if the institution recommends,
promotes, or endorses private education
loans, there are not less than two
lenders of private education loans that
are not affiliates of each other
included on the preferred lender list;
and
(ii) the preferred lender list under
this paragraph--
(I) specifically indicates,
for each listed lender, whether
the lender is or is not an
affiliate of each other lender
on the preferred lender list;
and
(II) if a lender is an
affiliate of another lender on
the preferred lender list,
describes the details of such
affiliation;
(C) prominently disclose the method and
criteria used by the institution in selecting
lenders with which to enter into preferred
lender arrangements to ensure that such lenders
are selected on the basis of the best interests
of the borrowers, including--
(i) payment of origination or other
fees on behalf of the borrower;
(ii) highly competitive interest
rates, or other terms and conditions or
provisions of loans under this title or
private education loans;
(iii) high-quality servicing for such
loans; or
(iv) additional benefits beyond the
standard terms and conditions or
provisions for such loans;
(D) exercise a duty of care and a duty of
loyalty to compile the preferred lender list
under this paragraph without prejudice and for
the sole benefit of the students attending the
institution, or the families of such students;
(E) not deny or otherwise impede the
borrower's choice of a lender or cause
unnecessary delay in loan certification under
this title for those borrowers who choose a
lender that is not included on the preferred
lender list; and
(F) comply with such other requirements as
the Secretary may prescribe by regulation.
(2) Lender affiliates list.--
(A) In general.--The Secretary shall maintain
and regularly update a list of lender
affiliates of all eligible lenders, and shall
provide such list to institutions for use in
carrying out paragraph (1)(B).
(B) Use of most recent list.--An institution
shall use the most recent list of lender
affiliates provided by the Secretary under
subparagraph (A) in carrying out paragraph
(1)(B).
(i) Definitions.--For the purpose of this section:
(1) Agent.--The term ``agent'' has the meaning given
the term in section 151.
(2) Affiliate.--The term ``affiliate'' means a person
that controls, is controlled by, or is under common
control with another person. A person controls, is
controlled by, or is under common control with another
person if--
(A) the person directly or indirectly, or
acting through one or more others, owns,
controls, or has the power to vote five percent
or more of any class of voting securities of
such other person;
(B) the person controls, in any manner, the
election of a majority of the directors or
trustees of such other person; or
(C) the Secretary determines (after notice
and opportunity for a hearing) that the person
directly or indirectly exercises a controlling
interest over the management or policies of
such other person's education loans.
(3) Education loan.--The term ``education loan'' has
the meaning given the term in section 151.
(4) Eligible institution.--The term ``eligible
institution'' means any such institution described in
section 102 of this Act.
(5) Officer.--The term ``officer'' has the meaning
given the term in section 151.
(6) Preferred lender arrangement.--The term
``preferred lender arrangement'' has the meaning given
the term in section 151.
(j) Construction.--Nothing in the amendments made by the
Higher Education Amendments of 1992 shall be construed to
prohibit an institution from recording, at the cost of the
institution, a hearing referred to in subsection (b)(2),
subsection (c)(1)(D), or subparagraph (A) or (B)(i) of
subsection (c)(2), of this section to create a record of the
hearing, except the unavailability of a recording shall not
serve to delay the completion of the proceeding. The Secretary
shall allow the institution to use any reasonable means,
including stenographers, of recording the hearing.
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