I 

116TH CONGRESS 

1ST SESSION H. R. 4706 

To amend the Higher Education Act of 1965 to authorize competency-based 

education demonstration projects. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 16, 2019 

Mr. NEGUSE introduced the following bill; which was referred to the 

Committee on Education and Labor 

A BILL 

To amend the Higher Education Act of 1965 to authorize 

competency-based education demonstration projects. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Advancing Com5 petency-Based Education Act of 2019’’. 

6 SEC. 2. COMPETENCY-BASED EDUCATION DEMONSTRATION 

7 PROJECTS. 

8 (a) PROJECTS.—Part G of title IV of the Higher 

9 Education Act of 1965 (20 U.S.C. 1088 et seq.) is amend10 ed by inserting after section 486A the following: 


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1 ‘‘SEC. 486B. COMPETENCY-BASED EDUCATION DEMONSTRA2 TION PROJECTS. 

3 ‘‘(a) DEMONSTRATION PROJECTS AUTHORIZED.— 

4 The Secretary shall select, in accordance with subsection 

5 (d), eligible entities to voluntarily carry out competency6 based education demonstration projects for a duration of 

7 5 years and receive waivers or other flexibility described 

8 in subsection (e) to carry out such projects. 

9 ‘‘(b) APPLICATION.— 

10 ‘‘(1) IN GENERAL.—Each eligible entity desir11 ing to carry out a demonstration project under this 

12 section shall submit an application to the Secretary, 

13 at such time and in such manner as the Secretary 

14 may require. 

15 ‘‘(2) OUTREACH.— 

16 ‘‘(A) IN GENERAL.—The Secretary shall, 

17 prior to any deadline to submit applications 

18 under paragraph (1), conduct outreach to insti19 tutions, including those described in subpara20 graph (B) to provide those institutions with in21 formation on the opportunity to apply to carry 

22 out a demonstration project under this section. 

23 ‘‘(B) INSTITUTIONS.—The institutions de24 scribed in this subparagraph are the following: 

25 ‘‘(i) Part B institutions (as defined in 

26 section 322). 


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1 ‘‘(ii) Hispanic-serving institutions (as 

2 defined in section 502). 

3 ‘‘(iii) Tribal Colleges or Universities 

4 (as defined in section 316). 

5 ‘‘(iv) Alaska Native-serving institu6 tions (as defined in section 317(b)). 

7 ‘‘(v) Native Hawaiian-serving institu8 tions (as defined in section 317(b)). 

9 ‘‘(vi) Predominantly Black Institu10 tions (as defined in section 318). 

11 ‘‘(vii) Asian American and Native 

12 American Pacific Islander-serving institu13 tions (as defined in section 320(b)). 

14 ‘‘(viii) Native American-serving, non15 tribal institutions (as defined in section 

16 319). 

17 ‘‘(ix) Institutions predominately serv18 ing adult learners. 

19 ‘‘(x) Institutions serving students with 

20 special needs. 

21 ‘‘(xi) Institutions located in rural 

22 areas. 

23 ‘‘(3) AMENDMENTS.— 

24 ‘‘(A) IN GENERAL.—An eligible entity that 

25 has been selected to carry out a demonstration 


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1 project under this section may submit to the 

2 Secretary amendments to the eligible entity’s 

3 approved application under paragraph (1), at 

4 such time and in such manner as the Secretary 

5 may require, which the Secretary shall approve 

6 or deny within 30 days of receipt. 

7 ‘‘(B) EXPANDING ENROLLMENT.—Not8 withstanding the assurance required with re9 spect to maximum enrollment under paragraph 

10 (4)(N)— 

11 ‘‘(i) an eligible entity whose dem12 onstration project has been evaluated 

13 under subsection (g)(2) not less than 

14 twice, may submit to the Secretary an 

15 amendment to the eligible entity’s applica16 tion under paragraph (1) to increase en17 rollment in the project to more than 3,000 

18 students, but not more than 5,000 stu19 dents, and which shall specify— 

20 ‘‘(I) the proposed maximum en21 rollment and annual enrollment 

22 growth for the project; 

23 ‘‘(II) how the eligible entity will 

24 successfully carry out the project with 


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1 such maximum enrollment and enroll2 ment growth; and 

3 ‘‘(III) any other amendments to 

4 the eligible entity’s application under 

5 paragraph (1) that are related to such 

6 maximum enrollment or enrollment 

7 growth; and 

8 ‘‘(ii) the Secretary shall determine 

9 whether to approve or deny an amendment 

10 submitted under clause (i) for a dem11 onstration project based on the project’s 

12 evaluations under subsection (g)(2). 

13 ‘‘(4) CONTENTS.—Each application under para14 graph (1) shall include— 

15 ‘‘(A) a description of each competency16 based education program to be offered by the 

17 eligible entity under the demonstration project; 

18 ‘‘(B) a description of the alignment of the 

19 proposed competency-based education program 

20 to the institution’s mission, and evidence of in21 stitutional commitment to such program; 

22 ‘‘(C) a description of how each program 

23 will work with employers and local industry to 

24 assess and incorporate competencies that are 


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1 relevant in the labor market and how the pro2 gram aligns with employer needs; 

3 ‘‘(D) a description of the proposed aca4 demic design, academic and support services, 

5 delivery, business, and financial models for the 

6 demonstration project, including explanations 

7 and supporting documents, including financial 

8 statements, and, any revenue-sharing agree9 ments with third-party servicers or online pro10 gram managers, of how each competency-based 

11 education program offered under the dem12 onstration project will— 

13 ‘‘(i) result in the achievement of com14 petencies; 

15 ‘‘(ii) differ from standard credit hour 

16 approaches, in whole or in part; and 

17 ‘‘(iii) result in lower costs or short18 ened time to the completion of a certificate 

19 or degree; 

20 ‘‘(E) a description of how each com21 petency-based education program offered under 

22 the demonstration project will award academic 

23 credit to advance the progress of a student to24 ward completion of a certificate or degree that 


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1 is portable and used by in-demand employers 

2 for making employment decisions; 

3 ‘‘(F) a description of how each credit-bear4 ing competency-based education program of5 fered under the demonstration project is aligned 

6 with a career pathway; 

7 ‘‘(G) a description of the meaningful role 

8 of the appropriate instructors of the eligible en9 tity in the development, design, implementation, 

10 delivery, and evaluation of each such com11 petency-based education program; 

12 ‘‘(H) a description of how each such com13 petency-based education program will provide 

14 strong post-enrollment job placement, earnings, 

15 and loan repayment outcomes; 

16 ‘‘(I) a description of how the eligible entity 

17 will facilitate transfer, postsecondary study, and 

18 employer understanding by articulating a com19 petency-based transcript from a competency20 based education program offered under the 

21 demonstration project to a credit hour tran22 script at another program at the eligible entity 

23 and to other institutions of higher education; 

24 ‘‘(J) a description of the statutory and reg25 ulatory requirements described in subsection (e) 


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1 for which the eligible entity is seeking a waiver 

2 or other flexibility, and why such waiver or 

3 flexibility is necessary to carry out the dem4 onstration project; 

5 ‘‘(K) a description of indicators of a pro6 gram’s effectiveness to inform how a third 

7 party will reliably assess student learning for 

8 each competency-based education program of9 fered under the demonstration project; 

10 ‘‘(L) a description of how the eligible enti11 ty will develop and evaluate the competencies 

12 and assessments of student knowledge adminis13 tered as part of the demonstration project, in14 cluding whether there is a relationship between 

15 the competency unit and a traditional credit or 

16 clock hour, the average time it takes to earn a 

17 competency, how such competencies and assess18 ments are aligned with workforce needs and any 

19 other considerations the institution made when 

20 it developed its unit of competency; 

21 ‘‘(M) a description of the proposal for de22 termining a student’s Federal student aid eligi23 bility under this title for participating in the 

24 demonstration project, the award and distribu25 tion of such aid, and the safeguards to ensure 


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1 that students are making satisfactory progress 

2 that warrants the disbursement of such aid; 

3 ‘‘(N) an assurance that the demonstration 

4 project at each eligible entity— 

5 ‘‘(i) will enroll a minimum of 25 stu6 dents and a maximum of 3,000 students 

7 or, in the case of an eligible entity with an 

8 application amendment approved under 

9 paragraph (3)(B), the maximum enroll10 ment approved under such paragraph; 

11 ‘‘(ii) will identify and disseminate best 

12 practices with respect to the demonstration 

13 project to the Secretary and to other eligi14 ble entities carrying out a demonstration 

15 project under this section; 

16 ‘‘(iii) operates under an agreement 

17 with the accrediting agency or association 

18 of the eligible entity to establish the stand19 ards described in subsection (c); and 

20 ‘‘(iv) uses available funds solely for 

21 purposes of awarding academic credit to el22 igible students based on the achievement of 

23 competencies and for the related costs or 

24 fees of demonstrating the achievement of 

25 competencies; 


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1 ‘‘(O) a description of the population of stu2 dents to whom competency-based education 

3 under the demonstration project will be offered, 

4 including demographic information and prior 

5 educational experience, disaggregated by stu6 dents who are Federal Pell Grant recipients, 

7 students of color, Native students, students 

8 with disabilities, students who are veterans or 

9 members of the Armed Forces, adult learners, 

10 and first generation college students, and how 

11 such eligible entity will, when appropriate, ad12 dress the specific needs of each such population 

13 of students when carrying out the demonstra14 tion project; 

15 ‘‘(P) a description of outreach and commu16 nication activities to students who may benefit 

17 under the demonstration project, including 

18 those described in subparagraph (O); 

19 ‘‘(Q) a description of how the institution is 

20 ensuring that students participating in the dem21 onstration project will not, on average, be eligi22 ble for more or less Federal assistance under 

23 this title than such students would have been 

24 eligible for under a program measured in credit 

25 or clock hours; 


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1 ‘‘(R) the cost of attendance for each com2 petency-based education program offered under 

3 the demonstration project, disaggregated by 

4 each of the applicable costs or allowances de5 scribed in paragraphs (1) through (13) of sec6 tion 472, and the estimated amount of the cost 

7 of attendance of each such program to be cov8 ered by need-based grant aid and merit-based 

9 grant aid from Federal, State, institutional, and 

10 private sources; 

11 ‘‘(S) a description of other competency12 based education programs the eligible entity of13 fers or plans to offer outside of the demonstra14 tion project; 

15 ‘‘(T) a description of how the eligible enti16 ty will use data to— 

17 ‘‘(i) ensure that each competency18 based education program under the dem19 onstration project meets the benchmarks 

20 established in accordance with subsection 

21 (c)(2)(E); 

22 ‘‘(ii) confirm relevancy of com23 petencies in the labor market; and 

24 ‘‘(iii) improve each such program; and 


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1 ‘‘(U) such other elements as the Secretary 

2 may require. 

3 ‘‘(c) RECOGNITION BY ACCREDITING AGENCY OR AS4 SOCIATION.—Unless a program has already been recog5 nized as a direct assessment program by the accrediting 

6 agency or association of the eligible entity, in order to 

7 carry out a competency-based education program under 

8 a demonstration project under this section, an eligible en9 tity shall include in its application under subsection (b), 

10 a letter from the accrediting agency or association of the 

11 eligible entity that describes how it will establish and en12 force the following standards with respect to such com13 petency-based education program: 

14 ‘‘(1) Standards for determining whether the eli15 gible entity or the program requires students to 

16 demonstrate competencies that are— 

17 ‘‘(A) capable of being validly and reliably 

18 assessed; and 

19 ‘‘(B) appropriate in scope and rigor for the 

20 award of the relevant certificate or degree. 

21 ‘‘(2) Standards for determining whether the eli22 gible entity or the program demonstrate— 

23 ‘‘(A) the administrative capacity and ex24 pertise that will ensure— 


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1 ‘‘(i) the validity and reliability of as2 sessments of competencies; and 

3 ‘‘(ii) good practices in assessment and 

4 measurement; 

5 ‘‘(B) sufficient educational content, activi6 ties, and resources (including faculty sup7 port)— 

8 ‘‘(i) to enable students to learn or de9 velop what is required to demonstrate or 

10 attain mastery of competencies; and 

11 ‘‘(ii) that are consistent with the 

12 qualifications of graduates of traditional 

13 programs; 

14 ‘‘(C) that the quality of demonstration of 

15 competence is judged at mastery for each com16 petency that is assessed for the award of a cer17 tificate or degree; 

18 ‘‘(D) a standard for the amount of learn19 ing that is included in a unit of competency; 

20 ‘‘(E) reasonable, clear, and actionable 

21 benchmarks for graduation rates and the em22 ployment and earnings of graduates, including 

23 job placements in a field for which the program 

24 prepares students, debt-to-earnings ratios, loan 

25 repayment rates, and student satisfaction; 


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1 ‘‘(F) regular evaluation of whether the pro2 gram meets the benchmarks under subpara3 graph (E), and address what may be the cause 

4 with identified interventions; and 

5 ‘‘(G) that students may not receive a sub6 sequent disbursement until they have completed 

7 the anticipated number of credits for the pay8 ment period. 

9 ‘‘(3) Standards for determining when to deny, 

10 withdraw, suspend, or terminate the accreditation of 

11 the program if the benchmarks under paragraph 

12 (2)(E) are not achieved after 4 consecutive title IV 

13 payment periods, including standards for providing 

14 sufficient opportunity— 

15 ‘‘(A) for the eligible entity or program to 

16 provide a written response regarding the failure 

17 to achieve such benchmarks be considered by 

18 the agency or association in the manner de19 scribed in section 496(a)(6)(B); and 

20 ‘‘(B) for the eligible entity or program to 

21 appeal any adverse action under this subpara22 graph before an appeals panel that meets the 

23 requirements of section 496(a)(6)(C). 

24 ‘‘(d) SELECTION.— 


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1 ‘‘(1) IN GENERAL.—Not later than 12 months 

2 after the date of enactment of the Advancing Com3 petency-Based Education Act of 2019, the Secretary 

4 shall select not less than 25 and not more than 100 

5 eligible entities to carry out a demonstration project 

6 under this section under which at least 1 com7 petency-based education program is offered at each 

8 eligible entity. 

9 ‘‘(2) CONSIDERATIONS.—In selecting eligible 

10 entities under paragraph (1), the Secretary shall— 

11 ‘‘(A) consider the number and quality of 

12 applications received; 

13 ‘‘(B) consider an eligible entity’s— 

14 ‘‘(i) ability to successfully execute the 

15 demonstration project as described in the 

16 eligible entity’s application under sub17 section (b); 

18 ‘‘(ii) commitment and ability to effec19 tively finance the demonstration project; 

20 ‘‘(iii) ability to provide administrative 

21 capability and the expertise to evaluate 

22 student progress based on measures other 

23 than credit hours or clock hours; 

24 ‘‘(iv) history of compliance with the 

25 requirements of this Act; 


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1 ‘‘(v) commitment to work with the Di2 rector and the Secretary to evaluate the 

3 demonstration project and the impact of 

4 the demonstration project under subsection 

5 (g)(2); 

6 ‘‘(vi) commitment and ability to as7 sess student learning through a third 

8 party; 

9 ‘‘(vii) commitment of the accrediting 

10 agency or association of the eligible entity 

11 to establish and enforce the standards de12 scribed in subsection (c); and 

13 ‘‘(viii) commitment to collaboration 

14 with an employer advisory group or spe15 cific employers to determine how the dem16 onstration project will meet employer 

17 needs; 

18 ‘‘(C) ensure the selection of a diverse 

19 group of eligible entities with respect to size, 

20 mission, student population, and geographic 

21 distribution; 

22 ‘‘(D) not limit the types of programs of 

23 study or courses of study approved for partici24 pation in a demonstration project; and 

25 ‘‘(E) not select an eligible entity— 


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1 ‘‘(i) that, for 1 or both of the pre2 ceding 2 fiscal years— 

3 ‘‘(I) had a cohort default rate 

4 (defined in section 435(m)) that was 

5 30 percent or higher; 

6 ‘‘(II) failed to meet the require7 ment under section 487(a)(24); or 

8 ‘‘(III) was— 

9 ‘‘(aa) under probation or an 

10 equivalent status from the ac11 crediting agency or association of 

12 the eligible entity; 

13 ‘‘(bb) under sanction from 

14 the authorization agency of the 

15 State in which the eligible entity 

16 is located; or 

17 ‘‘(cc) under public investiga18 tion or facing a pending lawsuit 

19 from a State or Federal agency; 

20 ‘‘(ii) if the Department has concerns 

21 with the entity’s compliance based on pro22 gram reviews or audits; or 

23 ‘‘(iii) if the eligible entity fails to meet 

24 the financial responsibility standards pre25 scribed by the Secretary in accordance 


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1 with section 498(c) or is placed on a reim2 bursement system of payment by the Sec3 retary. 

4 ‘‘(e) WAIVERS AND OTHER FLEXIBILITY.— 

5 ‘‘(1) IN GENERAL.—With respect to any eligible 

6 entity selected to carry out a demonstration project 

7 under this section, the Secretary may— 

8 ‘‘(A) waive any requirements of the provi9 sions of law (including any regulations promul10 gated under such provisions) listed in para11 graph (2) for which the eligible entity has pro12 vided a reason for waiving under subsection 

13 (b)(4)(J); or 

14 ‘‘(B) provide other flexibility, but not 

15 waive, any requirements of the provisions of law 

16 (including any regulations promulgated under 

17 such provisions) listed in paragraph (3) for 

18 which the eligible entity has provided a reason 

19 with which the Secretary agrees for such flexi20 bility under subsection (b)(4)(J). 

21 ‘‘(2) PROVISIONS ELIGIBLE FOR WAIVERS.— 

22 The Secretary may waive the following under para23 graph (1)(A): 

24 ‘‘(A) Subparagraphs (A) and (B) of section 

25 102(a)(3). 


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1 ‘‘(B) Section 484(l)(1). 

2 ‘‘(3) PROVISIONS ELIGIBLE FOR FLEXI3 BILITY.—The Secretary may provide the flexibility 

4 described in paragraph (1)(B) with respect to the re5 quirements under provisions in title I, part F of this 

6 title, or this part, that inhibit the operation of a 

7 competency-based education program, relating to the 

8 following: 

9 ‘‘(A) Documenting attendance. 

10 ‘‘(B) Weekly academic activity. 

11 ‘‘(C) Minimum weeks of instructional time. 

12 ‘‘(D) Requirements for credit hour or clock 

13 hour equivalencies if an institution proposes a 

14 measure clearly defined in its application that 

15 accounts for the academic intensity of study. 

16 ‘‘(E) Requirements for regular and sub17 stantive interaction with the instructor. 

18 ‘‘(F) Definitions of the terms ‘academic 

19 year’, ‘full-time student’, ‘part-time student’, 

20 ‘term’ (including ‘standard term’, ‘non-term’, 

21 and ‘non-standard term’), ‘satisfactory aca22 demic progress’, ‘educational activity’, ‘program 

23 of study’, and ‘payment period’. 

24 ‘‘(G) Methods of disbursing student finan25 cial aid by institutions of higher education seVerDate Sep 11 2014 20:07 Oct 27, 2019 Jkt 099200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H4706.IH H4706

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1 lected, as of the date of enactment of the Ad2 vancing Competency-Based Education Act of 

3 2019, as experimental sites under section 

4 487A(b)(3) to carry out competency-based edu5 cation programs. 

6 ‘‘(H) Restrictions regarding concurrent 

7 student enrollment in Direct Assessment and 

8 non-Direct Assessment programs. 

9 ‘‘(4) MEASUREMENT OF ACTIVITY OR ACADEMIC

10 WORK.—An institution granted flexibility under 

11 paragraph (3) related to requirements for credit 

12 hour or clock hour equivalencies shall include a 

13 measurement of activity or academic ‘work’ by stu14 dents as considered comparable to the standard 

15 practice for measuring credit or clock hours for 

16 these areas. 

17 ‘‘(f) NOTIFICATION.—Not later than 9 months after 

18 the date of enactment of the Advancing Competency19 Based Education Act of 2019, the Secretary shall make 

20 available to the authorizing committees and the public a 

21 list of eligible entities selected to carry out a demonstra22 tion project under this section, which shall include for each 

23 such eligible entity— 


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1 ‘‘(1) the specific waiver or other flexibility from 

2 statutory or regulatory requirements offered under 

3 subsection (e); and 

4 ‘‘(2) a description of the competency-based edu5 cation programs, and its associated accreditation 

6 standards, to be offered under the project. 

7 ‘‘(g) INFORMATION AND EVALUATION.— 

8 ‘‘(1) INFORMATION.— 

9 ‘‘(A) STUDENT-LEVEL DATA.—Each eligi10 ble entity that carries out a demonstration 

11 project under this section shall provide to the 

12 Director the student-level data for the students 

13 enrolled in a program described in subpara14 graph (C)(i)(I), the student-level data for the 

15 students enrolled in a program described in 

16 subparagraph (C)(i)(II), and the student-level 

17 data for students enrolled in a program de18 scribed in subparagraph (C)(i)(III) to enable 

19 the Director— 

20 ‘‘(i) to determine the aggregate infor21 mation described in subparagraph (B) with 

22 respect to each such program; and 

23 ‘‘(ii) to the extent practicable, to com24 pare the programs using a rigorous evalua25 tion, such as propensity score matching. 


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1 ‘‘(B) AGGREGATE INFORMATION.—For 

2 purposes of the evaluation under paragraph (2), 

3 the Director shall use the student-level data 

4 provided under subparagraph (A) by an eligible 

5 entity to determine the following information 

6 with respect to each program described in sub7 paragraph (C)(i) offered at such eligible entity: 

8 ‘‘(i) The average number of credit 

9 hours students earned prior to enrollment 

10 in the program, if applicable. 

11 ‘‘(ii) The number and percentage of 

12 students enrolled in a competency-based 

13 education program that are also enrolled in 

14 programs of study or courses of study of15 fered in credit hours or clock hours, 

16 disaggregated by student status as a first17 year, second-year, third-year, fourth-year, 

18 or other student. 

19 ‘‘(iii) The average period of time be20 tween the enrollment of a student in the 

21 program and the first assessment of stu22 dent knowledge of such student. 

23 ‘‘(iv) The average time to 25 percent, 

24 50 percent, 75 percent, 100 percent, 150 


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1 percent, and 200 percent completion of a 

2 certificate or degree. 

3 ‘‘(v) The number and percentage of 

4 students who begin in a certain cohort and 

5 complete a certificate or degree. 

6 ‘‘(vi) The number and percentage of 

7 students who begin in a certain cohort and 

8 withdraw without completing a certificate 

9 or degree. 

10 ‘‘(vii) The number and percentage of 

11 students who begin in a certain cohort who 

12 reach 25 percent, 50 percent, 75 percent, 

13 100 percent completion of a certificate or 

14 degree. 

15 ‘‘(viii) The number and percentage of 

16 students who begin in a certain cohort who 

17 re-enroll in a second period. 

18 ‘‘(ix) The median number of com19 petencies completed per period. 

20 ‘‘(x) The average number of attempts 

21 it takes students to pass all assessments of 

22 student knowledge during the period of en23 rollment in the program. 

24 ‘‘(xi) The percentage of summative as25 sessments of student competence that stuVerDate Sep 11 2014 20:07 Oct 27, 2019 Jkt 099200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H4706.IH H4706

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1 dents passed on the first attempt during 

2 the period of enrollment in the program. 

3 ‘‘(xii) The percentage of summative 

4 assessments of student competence that 

5 students passed on the second attempt and 

6 the average period of time between the 

7 first and second attempts during the pe8 riod of enrollment in the program. 

9 ‘‘(xiii) The average number of com10 petencies a student acquired and dem11 onstrated while enrolled in a program and 

12 the period of time during which the stu13 dent acquired such competencies. 

14 ‘‘(xiv) The number and percentage of 

15 students completing the program who find 

16 employment that lasts not less than 6 

17 months within 6 months of graduation, 

18 disaggregated by number and percentage 

19 of such students finding employment in a 

20 field related to the program. 

21 ‘‘(xv) Student job placement rates 1, 

22 2, and 3 years after graduating from the 

23 program, if available. 


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1 ‘‘(xvi) The median student earnings 1, 

2 2, and 3 years after graduating from the 

3 program, if available. 

4 ‘‘(xvii) The number and percentage of 

5 students completing the program who con6 tinue their education. 

7 ‘‘(xviii) Such other information as the 

8 Director may reasonably require. 

9 ‘‘(C) DISAGGREGATION.—The information 

10 determined under subparagraph (B) shall be 

11 disaggregated as follows, provided that the 

12 disaggregation of the information does not iden13 tify any individual student: 

14 ‘‘(i) For each eligible entity that car15 ries out a demonstration project under this 

16 section, disaggregation by— 

17 ‘‘(I) the students enrolled in each 

18 competency-based education program 

19 under the project; 

20 ‘‘(II) the students enrolled in 

21 each competency-based education pro22 gram not being carried out under the 

23 project, if the eligible entity has a 

24 competency-based education program 


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1 not being carried out under the 

2 project; and 

3 ‘‘(III) the students enrolled in a 

4 program not described in subclause 

5 (I) or (II). 

6 ‘‘(ii) For each group of students de7 scribed in clause (i), disaggregation by 

8 prior postsecondary experience, age group, 

9 race, gender, disability status, students 

10 who are Veterans or servicemembers, first 

11 generation college students, full-time and 

12 part-time enrollment, and status as a re13 cipient of a Federal Pell Grant. 

14 ‘‘(D) COUNCIL.—The Director shall pro15 vide to the Competency-Based Education Coun16 cil any information described in subparagraph 

17 (A) or (B) (other than personally identifiable 

18 information) that may be necessary for the 

19 Council to carry out its duties under section 

20 3(e) of the Advancing Competency-Based Edu21 cation Act of 2019. 

22 ‘‘(2) EVALUATION.— 

23 ‘‘(A) IN GENERAL.—The Director, in con24 sultation with the Secretary and using the in25 formation determined under paragraph (1), 


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1 shall annually evaluate each eligible entity car2 rying out a demonstration project under this 

3 section. Each evaluation shall be disaggregated 

4 in accordance with subparagraph (B) and in5 clude— 

6 ‘‘(i) the extent to which the eligible 

7 entity has met the elements of its applica8 tion under subsection (b)(4); 

9 ‘‘(ii) whether the demonstration 

10 project led to reduced cost, including as re11 flected by median debt levels, or time to 

12 completion of a certificate or degree, and 

13 the amount of cost or time reduced for 

14 such completion; 

15 ‘‘(iii) obstacles related to student fi16 nancial assistance for competency-based 

17 education; 

18 ‘‘(iv) the extent to which statutory or 

19 regulatory requirements not waived or for 

20 which flexibility is not provided under sub21 section (e) presented difficulties or unin22 tended consequences for students or eligi23 ble entities; 

24 ‘‘(v) a description of the waivers or 

25 flexibility provided under subsection (e) 


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1 that were most beneficial to students or el2 igible entities, and an explanation of such 

3 benefits; 

4 ‘‘(vi) the percentage of students who 

5 received each of the following— 

6 ‘‘(I) a grant under this title; 

7 ‘‘(II) a loan under this title; 

8 ‘‘(III) a State grant; 

9 ‘‘(IV) a State loan; 

10 ‘‘(V) an institutional grant; 

11 ‘‘(VI) an institutional loan; 

12 ‘‘(VII) a private loan; and 

13 ‘‘(VIII) an employer grant or 

14 subsidy; 

15 ‘‘(vii) median annual total cost and 

16 net cost to the student of the program; 

17 ‘‘(viii) median total cost and net cost 

18 of the credential and associated examina19 tion or licensure calculated upon comple20 tion; 

21 ‘‘(ix) median outstanding balance of 

22 principal and interest on loans made under 

23 this title that students have upon gradua24 tion; 


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1 ‘‘(x) the median 3-year and 5-year co2 hort default rate; 

3 ‘‘(xi) the median 1-year and 3-year re4 payment rate of loans made under this 

5 title; 

6 ‘‘(xii) the median student earnings 1, 

7 3, and 4 years after graduation; 

8 ‘‘(xiii) a description of the curricular 

9 infrastructure, including assessments of 

10 student knowledge and the corresponding 

11 competencies; 

12 ‘‘(xiv) a description of the role of fac13 ulty and faculty involvement; and 

14 ‘‘(xv) outcomes of the assessments of 

15 student competency. 

16 ‘‘(B) DISAGGREGATION.—The data col17 lected under clauses (vi) through (xii) shall be 

18 disaggregated by each group of students de19 scribed in paragraph (1)(C). 

20 ‘‘(3) ANNUAL REPORT.—The Director, in con21 sultation with the Secretary, shall annually provide 

22 to the authorizing committees a report on— 

23 ‘‘(A) the evaluations required under para24 graph (2); 


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1 ‘‘(B) the number and types of students re2 ceiving assistance under this title for com3 petency-based education programs offered 

4 under projects under this section; 

5 ‘‘(C) any proposed statutory or regulatory 

6 changes designed to support and enhance the 

7 expansion of competency-based education pro8 grams, which may be independent of or com9 bined with traditional credit hour or clock hour 

10 projects; 

11 ‘‘(D) the most effective means of delivering 

12 competency-based education programs through 

13 projects under this section; and 

14 ‘‘(E) the appropriate level and distribution 

15 methodology of Federal assistance under this 

16 title for students enrolled in a competency17 based education program. 

18 ‘‘(h) COORDINATION.—An eligible entity or the Di19 rector shall consult with the Secretary of Education or the 

20 Secretary of the Treasury to obtain the employment, earn21 ings, and loan information that may be necessary for pur22 poses of subsection (c)(2)(F) or subsection (g), respec23 tively. 


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1 ‘‘(i) OVERSIGHT.—In carrying out this section, the 

2 Secretary shall, on a not less frequently than quarterly 

3 basis— 

4 ‘‘(1) assure compliance of eligible entities with 

5 the requirements of this title (other than the provi6 sions of law and regulations that are waived under 

7 subsection (e)); 

8 ‘‘(2) provide technical assistance; 

9 ‘‘(3) monitor fluctuations in the student popu10 lation enrolled in the eligible entities carrying out 

11 the demonstration projects under this section; 

12 ‘‘(4) consult with appropriate accrediting agen13 cies or associations and appropriate State regulatory 

14 authorities for additional ways of improving the de15 livery of competency-based education programs; and 

16 ‘‘(5) collect and disseminate to eligible entities 

17 carrying out a demonstration project under this sec18 tion, best practices with respect to such projects. 

19 ‘‘(j) DATA PRIVACY.— 

20 ‘‘(1) IN GENERAL.—It shall be unlawful for any 

21 person who obtains or has access to personally iden22 tifiable information in connection with this section to 

23 willfully disclose to any person (except as authorized 

24 in this Act or any Federal law) such personally iden25 tifiable information. 


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1 ‘‘(2) PENALTY.—Any person who violates para2 graph (1) shall be fined not more than $5,000, im3 prisoned not more than 5 years, or both, together 

4 with the costs of prosecution. 

5 ‘‘(3) EMPLOYEE OR OFFICER OF THE UNITED

6 STATES.—If a violation of paragraph (1) is com7 mitted by any officer or employee of the United 

8 States, the officer or employee shall be dismissed 

9 from office or discharged from employment upon 

10 conviction for the violation. 

11 ‘‘(4) SALE OF DATA PROHIBITED.—Data col12 lected under this section shall not be sold to any 

13 third party by the Director, any postsecondary insti14 tution, or any other entity. 

15 ‘‘(5) LIMITATION ON USE BY OTHER FEDERAL

16 AGENCIES.—The Director shall not allow any other 

17 Federal agency to use personally identifiable data 

18 collected under this section for any purpose except 

19 as explicitly authorized by this Act. 

20 ‘‘(6) LAW ENFORCEMENT.—Personally identifi21 able information collected under this section shall 

22 not be used for any law enforcement activity or any 

23 other activity that would result in adverse action 

24 against any student, including debt collection activ25 ity or enforcement of the immigration laws. 


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1 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated $5,000,000 to the De3 partment to carry out the project under this section. 

4 ‘‘(l) DEFINITIONS.—For the purpose of this section: 

5 ‘‘(1) CAREER PATHWAY.—The term ‘career 

6 pathway’ has the meaning given the term in section 

7 3 of the Workforce Innovation and Opportunity Act 

8 (29 U.S.C. 3102). 

9 ‘‘(2) COMPETENCY.—The term ‘competency’ 

10 means the knowledge, skill, and abilities dem11 onstrated for a particular program of study. 

12 ‘‘(3) COMPETENCY-BASED EDUCATION PRO13 GRAM.—The term ‘competency-based education pro14 gram’ means a postsecondary program that provides 

15 competency-based education for which the accred16 iting agency or association of the institution of high17 er education offering such program has established 

18 or will establish the standards described in sub19 section (c) and, in accordance with such standards— 

20 ‘‘(A) measures academic progress and cre21 dential attainment by the assessment of student 

22 learning in lieu of, or in addition to, credit or 

23 clock hours; 

24 ‘‘(B) measures and assesses such academic 

25 progress and attainment in terms of a student’s 


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1 mastery of competencies by identifying what 

2 students know and the skills mastered through 

3 rigorous assessment; 

4 ‘‘(C) determines and reports to the Sec5 retary the number of credit or clock hours that 

6 would be needed for the attainment of a similar 

7 level of knowledge, skills, and characteristics in 

8 a standard credit or clock hour program; 

9 ‘‘(D) provides the educational content, ac10 tivities, support, and resources necessary to en11 able students to develop and attain the com12 petencies that are required to demonstrate mas13 tery of such competencies, including a system 

14 for monitoring a student’s engagement and 

15 progress in each competency, in which faculty 

16 are responsible for providing proactive academic 

17 assistance, when needed, on the basis of such 

18 monitoring; 

19 ‘‘(E) upon a student’s demonstration or 

20 mastery of a set of competencies identified and 

21 required by the institution, leads to or results 

22 in the awarding of a certificate or degree; 

23 ‘‘(F) ensures that funds received under 

24 this title may be used only for learning that re25 sults from instruction provided or overseen by 


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1 the institution and not for the portion of the 

2 program of which the student has demonstrated 

3 mastery prior to enrollment in the program or 

4 tests of learning that are not associated with 

5 educational activities overseen by the institu6 tion; 

7 ‘‘(G) is organized in a manner that an in8 stitution can determine, based on the method of 

9 measurement selected by the institution, and 

10 approved by the accreditor as described in sub11 section (c), what constitutes a full-time, three12 quarter time, half-time, and less than half-time 

13 workload for the purposes of awarding and ad14 ministering assistance under this title, or assist15 ance provided under another provision of Fed16 eral law to attend an institution of higher edu17 cation; and 

18 ‘‘(H) may use a disaggregated faculty 

19 model in which the educational responsibilities 

20 for an academic course are divided among a 

21 number of individuals, each performing specific 

22 tasks essential to instruction, including cur23 riculum design, content delivery, and student 

24 assessment. 


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1 ‘‘(4) DIRECTOR.—The term ‘Director’ means 

2 the Director of the Institute of Education Sciences. 

3 ‘‘(5) DUAL OR CONCURRENT ENROLLMENT

4 PROGRAM.—The term ‘dual or concurrent enrollment 

5 program’ has the meaning given the term in section 

6 8101 of the Elementary and Secondary Education 

7 Act of 1965 (20 U.S.C. 7801). 

8 ‘‘(6) ELIGIBLE ENTITY.—The term ‘eligible en9 tity’ means an institution of higher education, which 

10 may be an institution of higher education that offers 

11 a dual or concurrent enrollment program. 

12 ‘‘(7) FIRST GENERATION COLLEGE STUDENT.— 

13 The term ‘first generation college student’ has the 

14 meaning given the term in section 402A(h)(3). 

15 ‘‘(8) INSTITUTION OF HIGHER EDUCATION.— 

16 The term ‘institution of higher education’ has the 

17 meaning given the term in section 102, except that 

18 such term does not include institutions described in 

19 section 102(a)(1)(C).’’. 

20 (b) EXCEPTION TO STUDENT UNIT RECORD BAN.— 

21 Section 134(b) of the Higher Education Act of 1965 (20 

22 U.S.C. 1015c(b)) is amended— 

23 (1) by striking ‘‘(1) is necessary’’ and inserting 

24 the following ‘‘(1)(A) is necessary’’; 


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1 (2) by striking ‘‘(2) was in’’ and inserting the 

2 following ‘‘(B) was in’’; 

3 (3) by striking the period at the end and insert4 ing ‘‘; or’’; and 

5 (4) by adding at the end the following: 

6 ‘‘(2) is necessary for the operation of section 

7 486B.’’. 

8 (c) RULE OF CONSTRUCTION.—Nothing in this Act 

9 or the amendments made by this Act shall be construed 

10 to alter the authority of the Secretary of Education to es11 tablish experimental sites under any other provision of 

12 law. 

13 SEC. 3. COMPETENCY-BASED EDUCATION COUNCIL. 

14 (a) ESTABLISHMENT OF A COMMITTEE ON COM15 PETENCY-BASED EDUCATION.—Not later than 6 months 

16 after the date of enactment of this Act, there shall be es17 tablished the Competency-Based Education Council (re18 ferred to in this section as the ‘‘Council’’). 

19 (b) MEMBERSHIP.— 

20 (1) COMPOSITION.—The Council shall be com21 posed of— 

22 (A) 3 individuals appointed by the Sec23 retary of Education; 


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1 (B) 2 individuals appointed by the Director 

2 of the Bureau of Consumer Financial Protec3 tion; 

4 (C) not less than 8 and not more than 13 

5 individuals appointed by the Comptroller Gen6 eral of the United States, representing— 

7 (i) experts in competency-based edu8 cation; 

9 (ii) faculty members in competency10 based education programs; 

11 (iii) administrators at institutions that 

12 offer competency-based education pro13 grams; 

14 (iv) individuals currently enrolled in 

15 or graduated from a competency-based 

16 education program; 

17 (v) accrediting agencies or associa18 tions that recognize competency-based edu19 cation programs; 

20 (vi) experts from State educational 

21 agencies; and 

22 (vii) business and industry representa23 tives; 

24 (D) 4 members appointed by— 

25 (i) the majority leader of the Senate; 


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1 (ii) the minority leader of the Senate; 

2 (iii) the Speaker of the House of Rep3 resentatives; and 

4 (iv) the minority leader of the House 

5 of Representatives. 

6 (2) CHAIRPERSON.—The Council shall select a 

7 Chairperson from among its members. 

8 (3) VACANCIES.—Any vacancy in the Council 

9 shall not affect the powers of the Council and shall 

10 be filled in the same manner as an initial appoint11 ment. 

12 (c) MEETINGS.—The Council shall hold, at the call 

13 of the Chairperson, not less than 6 meetings before com14 pleting the study required under subsection (e) and the 

15 report required under subsection (f). 

16 (d) PERSONNEL MATTERS.— 

17 (1) COMPENSATION OF MEMBERS.—Each mem18 ber of the Council shall serve without compensation 

19 in addition to any such compensation received for 

20 the member’s service as an officer or employee of the 

21 United States, if applicable. 

22 (2) TRAVEL EXPENSES.—The members of the 

23 Council shall be allowed travel expenses, including 

24 per diem in lieu of subsistence, at rates authorized 

25 for employees of agencies under subchapter 1 of 


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1 chapter 57 of title 5, United States Code, while 

2 away from their homes or regular places of business 

3 in the performance of services for the Council. 

4 (e) DUTIES OF THE COUNCIL.— 

5 (1) STUDY.—The Council shall conduct a study 

6 on the ongoing innovation and development of com7 petency-based education programs. 

8 (2) RECOMMENDATIONS.—Based on the find9 ings of the study under paragraph (1), and the an10 nual evaluations of the demonstration projects under 

11 section 486B of the Higher Education Act of 1965, 

12 the Council shall develop recommendations for the 

13 authorization of competency-based education under 

14 the Higher Education Act of 1965, including rec15 ommendations that— 

16 (A) provide or update standard definitions, 

17 if needed, for relevant terms, including— 

18 (i) competency-based education; 

19 (ii) competency-based education pro20 gram; including quality indicators, that in21 clude appropriate student outcome metrics, 

22 for such programs; and 

23 (iii) any other relevant definitions 

24 agreed upon; and 

25 (B) address— 


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1 (i) the amount of learning in a com2 petency unit; 

3 (ii) the transfer of competency-based 

4 education credits to other institutions or 

5 programs; 

6 (iii) the minimum amount of time in 

7 an academic year for competency-based 

8 education programs, for financial aid pur9 poses; 

10 (iv) considerations for accreditation 

11 agencies before recognizing competency12 based education programs; 

13 (v) address the role of faculty and fac14 ulty involvement in competency-based edu15 cation programs; 

16 (vi) additional resources that may be 

17 needed for adequate oversight of com18 petency-based education programs; and 

19 (vii) the responsiveness of com20 petencies to the labor market and employ21 ers. 

22 (f) REPORTS.— 

23 (1) INTERIM REPORTS.—Not later than 2 years 

24 after the date of enactment of this Act, and bienni25 ally thereafter until the final report is submitted 


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1 under paragraph (2), the Council shall prepare and 

2 submit to the Secretary of Education and Congress 

3 and make available to the public a report that pro4 vides ongoing feedback to the annual evaluations of 

5 the demonstration projects under section 486B(g)(2) 

6 of the Higher Education Act of 1965, including a 

7 discussion of implementation challenges programs 

8 face, and the items listed in subsection (e)(2)(B). 

9 (2) FINAL REPORT.—Not later than 6 years 

10 after the date of enactment of this Act, the Council 

11 shall prepare and submit to the Secretary of Edu12 cation and Congress and make available to the pub13 lic a report containing the findings of the study 

14 under subsection (e)(1) and the recommendations 

15 developed under subsection (e)(2). 

Æ 


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