[House Report 117-384]
[From the U.S. Government Publishing Office]


117th Congress    }                                    {     Report
                        HOUSE OF REPRESENTATIVES
  2d Session      }                                    {     117-384

======================================================================

 
    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.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \19\Id.
    \20\Lisa N. Sacco, Drug Enforcement in the United States: History, 
Policy, and Trends, Congressional Research Service, (October 2, 2014).
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \21\Hook, supra note 18.
---------------------------------------------------------------------------
    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.
---------------------------------------------------------------------------
    \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\
---------------------------------------------------------------------------
    \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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