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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4706 Introduced in House (IH)]

<DOC>

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Advancing Competency-Based Education 
Act of 2019''.

SEC. 2. COMPETENCY-BASED EDUCATION DEMONSTRATION PROJECTS.

    (a) Projects.--Part G of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1088 et seq.) is amended by inserting after section 
486A the following:

``SEC. 486B. COMPETENCY-BASED EDUCATION DEMONSTRATION PROJECTS.

    ``(a) Demonstration Projects Authorized.--The Secretary shall 
select, in accordance with subsection (d), eligible entities to 
voluntarily carry out competency-based education demonstration projects 
for a duration of 5 years and receive waivers or other flexibility 
described in subsection (e) to carry out such projects.
    ``(b) Application.--
            ``(1) In general.--Each eligible entity desiring to carry 
        out a demonstration project under this section shall submit an 
        application to the Secretary, at such time and in such manner 
        as the Secretary may require.
            ``(2) Outreach.--
                    ``(A) In general.--The Secretary shall, prior to 
                any deadline to submit applications under paragraph 
                (1), conduct outreach to institutions, including those 
                described in subparagraph (B) to provide those 
                institutions with information on the opportunity to 
                apply to carry out a demonstration project under this 
                section.
                    ``(B) Institutions.--The institutions described in 
                this subparagraph are the following:
                            ``(i) Part B institutions (as defined in 
                        section 322).
                            ``(ii) Hispanic-serving institutions (as 
                        defined in section 502).
                            ``(iii) Tribal Colleges or Universities (as 
                        defined in section 316).
                            ``(iv) Alaska Native-serving institutions 
                        (as defined in section 317(b)).
                            ``(v) Native Hawaiian-serving institutions 
                        (as defined in section 317(b)).
                            ``(vi) Predominantly Black Institutions (as 
                        defined in section 318).
                            ``(vii) Asian American and Native American 
                        Pacific Islander-serving institutions (as 
                        defined in section 320(b)).
                            ``(viii) Native American-serving, nontribal 
                        institutions (as defined in section 319).
                            ``(ix) Institutions predominately serving 
                        adult learners.
                            ``(x) Institutions serving students with 
                        special needs.
                            ``(xi) Institutions located in rural areas.
            ``(3) Amendments.--
                    ``(A) In general.--An eligible entity that has been 
                selected to carry out a demonstration project under 
                this section may submit to the Secretary amendments to 
                the eligible entity's approved application under 
                paragraph (1), at such time and in such manner as the 
                Secretary may require, which the Secretary shall 
                approve or deny within 30 days of receipt.
                    ``(B) Expanding enrollment.--Notwithstanding the 
                assurance required with respect to maximum enrollment 
                under paragraph (4)(N)--
                            ``(i) an eligible entity whose 
                        demonstration project has been evaluated under 
                        subsection (g)(2) not less than twice, may 
                        submit to the Secretary an amendment to the 
                        eligible entity's application under paragraph 
                        (1) to increase enrollment in the project to 
                        more than 3,000 students, but not more than 
                        5,000 students, and which shall specify--
                                    ``(I) the proposed maximum 
                                enrollment and annual enrollment growth 
                                for the project;
                                    ``(II) how the eligible entity will 
                                successfully carry out the project with 
                                such maximum enrollment and enrollment 
                                growth; and
                                    ``(III) any other amendments to the 
                                eligible entity's application under 
                                paragraph (1) that are related to such 
                                maximum enrollment or enrollment 
                                growth; and
                            ``(ii) the Secretary shall determine 
                        whether to approve or deny an amendment 
                        submitted under clause (i) for a demonstration 
                        project based on the project's evaluations 
                        under subsection (g)(2).
            ``(4) Contents.--Each application under paragraph (1) shall 
        include--
                    ``(A) a description of each competency-based 
                education program to be offered by the eligible entity 
                under the demonstration project;
                    ``(B) a description of the alignment of the 
                proposed competency-based education program to the 
                institution's mission, and evidence of institutional 
                commitment to such program;
                    ``(C) a description of how each program will work 
                with employers and local industry to assess and 
                incorporate competencies that are relevant in the labor 
                market and how the program aligns with employer needs;
                    ``(D) a description of the proposed academic 
                design, academic and support services, delivery, 
                business, and financial models for the demonstration 
                project, including explanations and supporting 
                documents, including financial statements, and, any 
                revenue-sharing agreements with third-party servicers 
                or online program managers, of how each competency-
                based education program offered under the demonstration 
                project will--
                            ``(i) result in the achievement of 
                        competencies;
                            ``(ii) differ from standard credit hour 
                        approaches, in whole or in part; and
                            ``(iii) result in lower costs or shortened 
                        time to the completion of a certificate or 
                        degree;
                    ``(E) a description of how each competency-based 
                education program offered under the demonstration 
                project will award academic credit to advance the 
                progress of a student toward completion of a 
                certificate or degree that is portable and used by in-
                demand employers for making employment decisions;
                    ``(F) a description of how each credit-bearing 
                competency-based education program offered under the 
                demonstration project is aligned with a career pathway;
                    ``(G) a description of the meaningful role of the 
                appropriate instructors of the eligible entity in the 
                development, design, implementation, delivery, and 
                evaluation of each such competency-based education 
                program;
                    ``(H) a description of how each such competency-
                based education program will provide strong post-
                enrollment job placement, earnings, and loan repayment 
                outcomes;
                    ``(I) a description of how the eligible entity will 
                facilitate transfer, postsecondary study, and employer 
                understanding by articulating a competency-based 
                transcript from a competency-based education program 
                offered under the demonstration project to a credit 
                hour transcript at another program at the eligible 
                entity and to other institutions of higher education;
                    ``(J) a description of the statutory and regulatory 
                requirements described in subsection (e) for which the 
                eligible entity is seeking a waiver or other 
                flexibility, and why such waiver or flexibility is 
                necessary to carry out the demonstration project;
                    ``(K) a description of indicators of a program's 
                effectiveness to inform how a third party will reliably 
                assess student learning for each competency-based 
                education program offered under the demonstration 
                project;
                    ``(L) a description of how the eligible entity will 
                develop and evaluate the competencies and assessments 
                of student knowledge administered as part of the 
                demonstration project, including whether there is a 
                relationship between the competency unit and a 
                traditional credit or clock hour, the average time it 
                takes to earn a competency, how such competencies and 
                assessments are aligned with workforce needs and any 
                other considerations the institution made when it 
                developed its unit of competency;
                    ``(M) a description of the proposal for determining 
                a student's Federal student aid eligibility under this 
                title for participating in the demonstration project, 
                the award and distribution of such aid, and the 
                safeguards to ensure that students are making 
                satisfactory progress that warrants the disbursement of 
                such aid;
                    ``(N) an assurance that the demonstration project 
                at each eligible entity--
                            ``(i) will enroll a minimum of 25 students 
                        and a maximum of 3,000 students or, in the case 
                        of an eligible entity with an application 
                        amendment approved under paragraph (3)(B), the 
                        maximum enrollment approved under such 
                        paragraph;
                            ``(ii) will identify and disseminate best 
                        practices with respect to the demonstration 
                        project to the Secretary and to other eligible 
                        entities carrying out a demonstration project 
                        under this section;
                            ``(iii) operates under an agreement with 
                        the accrediting agency or association of the 
                        eligible entity to establish the standards 
                        described in subsection (c); and
                            ``(iv) uses available funds solely for 
                        purposes of awarding academic credit to 
                        eligible students based on the achievement of 
                        competencies and for the related costs or fees 
                        of demonstrating the achievement of 
                        competencies;
                    ``(O) a description of the population of students 
                to whom competency-based education under the 
                demonstration project will be offered, including 
                demographic information and prior educational 
                experience, disaggregated by students who are Federal 
                Pell Grant recipients, students of color, Native 
                students, students with disabilities, students who are 
                veterans or members of the Armed Forces, adult 
                learners, and first generation college students, and 
                how such eligible entity will, when appropriate, 
                address the specific needs of each such population of 
                students when carrying out the demonstration project;
                    ``(P) a description of outreach and communication 
                activities to students who may benefit under the 
                demonstration project, including those described in 
                subparagraph (O);
                    ``(Q) a description of how the institution is 
                ensuring that students participating in the 
                demonstration project will not, on average, be eligible 
                for more or less Federal assistance under this title 
                than such students would have been eligible for under a 
                program measured in credit or clock hours;
                    ``(R) the cost of attendance for each competency-
                based education program offered under the demonstration 
                project, disaggregated by each of the applicable costs 
                or allowances described in paragraphs (1) through (13) 
                of section 472, and the estimated amount of the cost of 
                attendance of each such program to be covered by need-
                based grant aid and merit-based grant aid from Federal, 
                State, institutional, and private sources;
                    ``(S) a description of other competency-based 
                education programs the eligible entity offers or plans 
                to offer outside of the demonstration project;
                    ``(T) a description of how the eligible entity will 
                use data to--
                            ``(i) ensure that each competency-based 
                        education program under the demonstration 
                        project meets the benchmarks established in 
                        accordance with subsection (c)(2)(E);
                            ``(ii) confirm relevancy of competencies in 
                        the labor market; and
                            ``(iii) improve each such program; and
                    ``(U) such other elements as the Secretary may 
                require.
    ``(c) Recognition by Accrediting Agency or Association.--Unless a 
program has already been recognized as a direct assessment program by 
the accrediting agency or association of the eligible entity, in order 
to carry out a competency-based education program under a demonstration 
project under this section, an eligible entity shall include in its 
application under subsection (b), a letter from the accrediting agency 
or association of the eligible entity that describes how it will 
establish and enforce the following standards with respect to such 
competency-based education program:
            ``(1) Standards for determining whether the eligible entity 
        or the program requires students to demonstrate competencies 
        that are--
                    ``(A) capable of being validly and reliably 
                assessed; and
                    ``(B) appropriate in scope and rigor for the award 
                of the relevant certificate or degree.
            ``(2) Standards for determining whether the eligible entity 
        or the program demonstrate--
                    ``(A) the administrative capacity and expertise 
                that will ensure--
                            ``(i) the validity and reliability of 
                        assessments of competencies; and
                            ``(ii) good practices in assessment and 
                        measurement;
                    ``(B) sufficient educational content, activities, 
                and resources (including faculty support)--
                            ``(i) to enable students to learn or 
                        develop what is required to demonstrate or 
                        attain mastery of competencies; and
                            ``(ii) that are consistent with the 
                        qualifications of graduates of traditional 
                        programs;
                    ``(C) that the quality of demonstration of 
                competence is judged at mastery for each competency 
                that is assessed for the award of a certificate or 
                degree;
                    ``(D) a standard for the amount of learning that is 
                included in a unit of competency;
                    ``(E) reasonable, clear, and actionable benchmarks 
                for graduation rates and the employment and earnings of 
                graduates, including job placements in a field for 
                which the program prepares students, debt-to-earnings 
                ratios, loan repayment rates, and student satisfaction;
                    ``(F) regular evaluation of whether the program 
                meets the benchmarks under subparagraph (E), and 
                address what may be the cause with identified 
                interventions; and
                    ``(G) that students may not receive a subsequent 
                disbursement until they have completed the anticipated 
                number of credits for the payment period.
            ``(3) Standards for determining when to deny, withdraw, 
        suspend, or terminate the accreditation of the program if the 
        benchmarks under paragraph (2)(E) are not achieved after 4 
        consecutive title IV payment periods, including standards for 
        providing sufficient opportunity--
                    ``(A) for the eligible entity or program to provide 
                a written response regarding the failure to achieve 
                such benchmarks be considered by the agency or 
                association in the manner described in section 
                496(a)(6)(B); and
                    ``(B) for the eligible entity or program to appeal 
                any adverse action under this subparagraph before an 
                appeals panel that meets the requirements of section 
                496(a)(6)(C).
    ``(d) Selection.--
            ``(1) In general.--Not later than 12 months after the date 
        of enactment of the Advancing Competency-Based Education Act of 
        2019, the Secretary shall select not less than 25 and not more 
        than 100 eligible entities to carry out a demonstration project 
        under this section under which at least 1 competency-based 
        education program is offered at each eligible entity.
            ``(2) Considerations.--In selecting eligible entities under 
        paragraph (1), the Secretary shall--
                    ``(A) consider the number and quality of 
                applications received;
                    ``(B) consider an eligible entity's--
                            ``(i) ability to successfully execute the 
                        demonstration project as described in the 
                        eligible entity's application under subsection 
                        (b);
                            ``(ii) commitment and ability to 
                        effectively finance the demonstration project;
                            ``(iii) ability to provide administrative 
                        capability and the expertise to evaluate 
                        student progress based on measures other than 
                        credit hours or clock hours;
                            ``(iv) history of compliance with the 
                        requirements of this Act;
                            ``(v) commitment to work with the Director 
                        and the Secretary to evaluate the demonstration 
                        project and the impact of the demonstration 
                        project under subsection (g)(2);
                            ``(vi) commitment and ability to assess 
                        student learning through a third party;
                            ``(vii) commitment of the accrediting 
                        agency or association of the eligible entity to 
                        establish and enforce the standards described 
                        in subsection (c); and
                            ``(viii) commitment to collaboration with 
                        an employer advisory group or specific 
                        employers to determine how the demonstration 
                        project will meet employer needs;
                    ``(C) ensure the selection of a diverse group of 
                eligible entities with respect to size, mission, 
                student population, and geographic distribution;
                    ``(D) not limit the types of programs of study or 
                courses of study approved for participation in a 
                demonstration project; and
                    ``(E) not select an eligible entity--
                            ``(i) that, for 1 or both of the preceding 
                        2 fiscal years--
                                    ``(I) had a cohort default rate 
                                (defined in section 435(m)) that was 30 
                                percent or higher;
                                    ``(II) failed to meet the 
                                requirement under section 487(a)(24); 
                                or
                                    ``(III) was--
                                            ``(aa) under probation or 
                                        an equivalent status from the 
                                        accrediting agency or 
                                        association of the eligible 
                                        entity;
                                            ``(bb) under sanction from 
                                        the authorization agency of the 
                                        State in which the eligible 
                                        entity is located; or
                                            ``(cc) under public 
                                        investigation or facing a 
                                        pending lawsuit from a State or 
                                        Federal agency;
                            ``(ii) if the Department has concerns with 
                        the entity's compliance based on program 
                        reviews or audits; or
                            ``(iii) if the eligible entity fails to 
                        meet the financial responsibility standards 
                        prescribed by the Secretary in accordance with 
                        section 498(c) or is placed on a reimbursement 
                        system of payment by the Secretary.
    ``(e) Waivers and Other Flexibility.--
            ``(1) In general.--With respect to any eligible entity 
        selected to carry out a demonstration project under this 
        section, the Secretary may--
                    ``(A) waive any requirements of the provisions of 
                law (including any regulations promulgated under such 
                provisions) listed in paragraph (2) for which the 
                eligible entity has provided a reason for waiving under 
                subsection (b)(4)(J); or
                    ``(B) provide other flexibility, but not waive, any 
                requirements of the provisions of law (including any 
                regulations promulgated under such provisions) listed 
                in paragraph (3) for which the eligible entity has 
                provided a reason with which the Secretary agrees for 
                such flexibility under subsection (b)(4)(J).
            ``(2) Provisions eligible for waivers.--The Secretary may 
        waive the following under paragraph (1)(A):
                    ``(A) Subparagraphs (A) and (B) of section 
                102(a)(3).
                    ``(B) Section 484(l)(1).
            ``(3) Provisions eligible for flexibility.--The Secretary 
        may provide the flexibility described in paragraph (1)(B) with 
        respect to the requirements under provisions in title I, part F 
        of this title, or this part, that inhibit the operation of a 
        competency-based education program, relating to the following:
                    ``(A) Documenting attendance.
                    ``(B) Weekly academic activity.
                    ``(C) Minimum weeks of instructional time.
                    ``(D) Requirements for credit hour or clock hour 
                equivalencies if an institution proposes a measure 
                clearly defined in its application that accounts for 
                the academic intensity of study.
                    ``(E) Requirements for regular and substantive 
                interaction with the instructor.
                    ``(F) Definitions of the terms `academic year', 
                `full-time student', `part-time student', `term' 
                (including `standard term', `non-term', and `non-
                standard term'), `satisfactory academic progress', 
                `educational activity', `program of study', and 
                `payment period'.
                    ``(G) Methods of disbursing student financial aid 
                by institutions of higher education selected, as of the 
                date of enactment of the Advancing Competency-Based 
                Education Act of 2019, as experimental sites under 
                section 487A(b)(3) to carry out competency-based 
                education programs.
                    ``(H) Restrictions regarding concurrent student 
                enrollment in Direct Assessment and non-Direct 
                Assessment programs.
            ``(4) Measurement of activity or academic work.--An 
        institution granted flexibility under paragraph (3) related to 
        requirements for credit hour or clock hour equivalencies shall 
        include a measurement of activity or academic `work' by 
        students as considered comparable to the standard practice for 
        measuring credit or clock hours for these areas.
    ``(f) Notification.--Not later than 9 months after the date of 
enactment of the Advancing Competency-Based Education Act of 2019, the 
Secretary shall make available to the authorizing committees and the 
public a list of eligible entities selected to carry out a 
demonstration project under this section, which shall include for each 
such eligible entity--
            ``(1) the specific waiver or other flexibility from 
        statutory or regulatory requirements offered under subsection 
        (e); and
            ``(2) a description of the competency-based education 
        programs, and its associated accreditation standards, to be 
        offered under the project.
    ``(g) Information and Evaluation.--
            ``(1) Information.--
                    ``(A) Student-level data.--Each eligible entity 
                that carries out a demonstration project under this 
                section shall provide to the Director the student-level 
                data for the students enrolled in a program described 
                in subparagraph (C)(i)(I), the student-level data for 
                the students enrolled in a program described in 
                subparagraph (C)(i)(II), and the student-level data for 
                students enrolled in a program described in 
                subparagraph (C)(i)(III) to enable the Director--
                            ``(i) to determine the aggregate 
                        information described in subparagraph (B) with 
                        respect to each such program; and
                            ``(ii) to the extent practicable, to 
                        compare the programs using a rigorous 
                        evaluation, such as propensity score matching.
                    ``(B) Aggregate information.--For purposes of the 
                evaluation under paragraph (2), the Director shall use 
                the student-level data provided under subparagraph (A) 
                by an eligible entity to determine the following 
                information with respect to each program described in 
                subparagraph (C)(i) offered at such eligible entity:
                            ``(i) The average number of credit hours 
                        students earned prior to enrollment in the 
                        program, if applicable.
                            ``(ii) The number and percentage of 
                        students enrolled in a competency-based 
                        education program that are also enrolled in 
                        programs of study or courses of study offered 
                        in credit hours or clock hours, disaggregated 
                        by student status as a first-year, second-year, 
                        third-year, fourth-year, or other student.
                            ``(iii) The average period of time between 
                        the enrollment of a student in the program and 
                        the first assessment of student knowledge of 
                        such student.
                            ``(iv) The average time to 25 percent, 50 
                        percent, 75 percent, 100 percent, 150 percent, 
                        and 200 percent completion of a certificate or 
                        degree.
                            ``(v) The number and percentage of students 
                        who begin in a certain cohort and complete a 
                        certificate or degree.
                            ``(vi) The number and percentage of 
                        students who begin in a certain cohort and 
                        withdraw without completing a certificate or 
                        degree.
                            ``(vii) The number and percentage of 
                        students who begin in a certain cohort who 
                        reach 25 percent, 50 percent, 75 percent, 100 
                        percent completion of a certificate or degree.
                            ``(viii) The number and percentage of 
                        students who begin in a certain cohort who re-
                        enroll in a second period.
                            ``(ix) The median number of competencies 
                        completed per period.
                            ``(x) The average number of attempts it 
                        takes students to pass all assessments of 
                        student knowledge during the period of 
                        enrollment in the program.
                            ``(xi) The percentage of summative 
                        assessments of student competence that students 
                        passed on the first attempt during the period 
                        of enrollment in the program.
                            ``(xii) The percentage of summative 
                        assessments of student competence that students 
                        passed on the second attempt and the average 
                        period of time between the first and second 
                        attempts during the period of enrollment in the 
                        program.
                            ``(xiii) The average number of competencies 
                        a student acquired and demonstrated while 
                        enrolled in a program and the period of time 
                        during which the student acquired such 
                        competencies.
                            ``(xiv) The number and percentage of 
                        students completing the program who find 
                        employment that lasts not less than 6 months 
                        within 6 months of graduation, disaggregated by 
                        number and percentage of such students finding 
                        employment in a field related to the program.
                            ``(xv) Student job placement rates 1, 2, 
                        and 3 years after graduating from the program, 
                        if available.
                            ``(xvi) The median student earnings 1, 2, 
                        and 3 years after graduating from the program, 
                        if available.
                            ``(xvii) The number and percentage of 
                        students completing the program who continue 
                        their education.
                            ``(xviii) Such other information as the 
                        Director may reasonably require.
                    ``(C) Disaggregation.--The information determined 
                under subparagraph (B) shall be disaggregated as 
                follows, provided that the disaggregation of the 
                information does not identify any individual student:
                            ``(i) For each eligible entity that carries 
                        out a demonstration project under this section, 
                        disaggregation by--
                                    ``(I) the students enrolled in each 
                                competency-based education program 
                                under the project;
                                    ``(II) the students enrolled in 
                                each competency-based education program 
                                not being carried out under the 
                                project, if the eligible entity has a 
                                competency-based education program not 
                                being carried out under the project; 
                                and
                                    ``(III) the students enrolled in a 
                                program not described in subclause (I) 
                                or (II).
                            ``(ii) For each group of students described 
                        in clause (i), disaggregation by prior 
                        postsecondary experience, age group, race, 
                        gender, disability status, students who are 
                        Veterans or servicemembers, first generation 
                        college students, full-time and part-time 
                        enrollment, and status as a recipient of a 
                        Federal Pell Grant.
                    ``(D) Council.--The Director shall provide to the 
                Competency-Based Education Council any information 
                described in subparagraph (A) or (B) (other than 
                personally identifiable information) that may be 
                necessary for the Council to carry out its duties under 
                section 3(e) of the Advancing Competency-Based 
                Education Act of 2019.
            ``(2) Evaluation.--
                    ``(A) In general.--The Director, in consultation 
                with the Secretary and using the information determined 
                under paragraph (1), shall annually evaluate each 
                eligible entity carrying out a demonstration project 
                under this section. Each evaluation shall be 
                disaggregated in accordance with subparagraph (B) and 
                include--
                            ``(i) the extent to which the eligible 
                        entity has met the elements of its application 
                        under subsection (b)(4);
                            ``(ii) whether the demonstration project 
                        led to reduced cost, including as reflected by 
                        median debt levels, or time to completion of a 
                        certificate or degree, and the amount of cost 
                        or time reduced for such completion;
                            ``(iii) obstacles related to student 
                        financial assistance for competency-based 
                        education;
                            ``(iv) the extent to which statutory or 
                        regulatory requirements not waived or for which 
                        flexibility is not provided under subsection 
                        (e) presented difficulties or unintended 
                        consequences for students or eligible entities;
                            ``(v) a description of the waivers or 
                        flexibility provided under subsection (e) that 
                        were most beneficial to students or eligible 
                        entities, and an explanation of such benefits;
                            ``(vi) the percentage of students who 
                        received each of the following--
                                    ``(I) a grant under this title;
                                    ``(II) a loan under this title;
                                    ``(III) a State grant;
                                    ``(IV) a State loan;
                                    ``(V) an institutional grant;
                                    ``(VI) an institutional loan;
                                    ``(VII) a private loan; and
                                    ``(VIII) an employer grant or 
                                subsidy;
                            ``(vii) median annual total cost and net 
                        cost to the student of the program;
                            ``(viii) median total cost and net cost of 
                        the credential and associated examination or 
                        licensure calculated upon completion;
                            ``(ix) median outstanding balance of 
                        principal and interest on loans made under this 
                        title that students have upon graduation;
                            ``(x) the median 3-year and 5-year cohort 
                        default rate;
                            ``(xi) the median 1-year and 3-year 
                        repayment rate of loans made under this title;
                            ``(xii) the median student earnings 1, 3, 
                        and 4 years after graduation;
                            ``(xiii) a description of the curricular 
                        infrastructure, including assessments of 
                        student knowledge and the corresponding 
                        competencies;
                            ``(xiv) a description of the role of 
                        faculty and faculty involvement; and
                            ``(xv) outcomes of the assessments of 
                        student competency.
                    ``(B) Disaggregation.--The data collected under 
                clauses (vi) through (xii) shall be disaggregated by 
                each group of students described in paragraph (1)(C).
            ``(3) Annual report.--The Director, in consultation with 
        the Secretary, shall annually provide to the authorizing 
        committees a report on--
                    ``(A) the evaluations required under paragraph (2);
                    ``(B) the number and types of students receiving 
                assistance under this title for competency-based 
                education programs offered under projects under this 
                section;
                    ``(C) any proposed statutory or regulatory changes 
                designed to support and enhance the expansion of 
                competency-based education programs, which may be 
                independent of or combined with traditional credit hour 
                or clock hour projects;
                    ``(D) the most effective means of delivering 
                competency-based education programs through projects 
                under this section; and
                    ``(E) the appropriate level and distribution 
                methodology of Federal assistance under this title for 
                students enrolled in a competency-based education 
                program.
    ``(h) Coordination.--An eligible entity or the Director shall 
consult with the Secretary of Education or the Secretary of the 
Treasury to obtain the employment, earnings, and loan information that 
may be necessary for purposes of subsection (c)(2)(F) or subsection 
(g), respectively.
    ``(i) Oversight.--In carrying out this section, the Secretary 
shall, on a not less frequently than quarterly basis--
            ``(1) assure compliance of eligible entities with the 
        requirements of this title (other than the provisions of law 
        and regulations that are waived under subsection (e));
            ``(2) provide technical assistance;
            ``(3) monitor fluctuations in the student population 
        enrolled in the eligible entities carrying out the 
        demonstration projects under this section;
            ``(4) consult with appropriate accrediting agencies or 
        associations and appropriate State regulatory authorities for 
        additional ways of improving the delivery of competency-based 
        education programs; and
            ``(5) collect and disseminate to eligible entities carrying 
        out a demonstration project under this section, best practices 
        with respect to such projects.
    ``(j) Data Privacy.--
            ``(1) In general.--It shall be unlawful for any person who 
        obtains or has access to personally identifiable information in 
        connection with this section to willfully disclose to any 
        person (except as authorized in this Act or any Federal law) 
        such personally identifiable information.
            ``(2) Penalty.--Any person who violates paragraph (1) shall 
        be fined not more than $5,000, imprisoned not more than 5 
        years, or both, together with the costs of prosecution.
            ``(3) Employee or officer of the united states.--If a 
        violation of paragraph (1) is committed by any officer or 
        employee of the United States, the officer or employee shall be 
        dismissed from office or discharged from employment upon 
        conviction for the violation.
            ``(4) Sale of data prohibited.--Data collected under this 
        section shall not be sold to any third party by the Director, 
        any postsecondary institution, or any other entity.
            ``(5) Limitation on use by other federal agencies.--The 
        Director shall not allow any other Federal agency to use 
        personally identifiable data collected under this section for 
        any purpose except as explicitly authorized by this Act.
            ``(6) Law enforcement.--Personally identifiable information 
        collected under this section shall not be used for any law 
        enforcement activity or any other activity that would result in 
        adverse action against any student, including debt collection 
        activity or enforcement of the immigration laws.
    ``(k) Authorization of Appropriations.--There are authorized to be 
appropriated $5,000,000 to the Department to carry out the project 
under this section.
    ``(l) Definitions.--For the purpose of this section:
            ``(1) Career pathway.--The term `career pathway' has the 
        meaning given the term in section 3 of the Workforce Innovation 
        and Opportunity Act (29 U.S.C. 3102).
            ``(2) Competency.--The term `competency' means the 
        knowledge, skill, and abilities demonstrated for a particular 
        program of study.
            ``(3) Competency-based education program.--The term 
        `competency-based education program' means a postsecondary 
        program that provides competency-based education for which the 
        accrediting agency or association of the institution of higher 
        education offering such program has established or will 
        establish the standards described in subsection (c) and, in 
        accordance with such standards--
                    ``(A) measures academic progress and credential 
                attainment by the assessment of student learning in 
                lieu of, or in addition to, credit or clock hours;
                    ``(B) measures and assesses such academic progress 
                and attainment in terms of a student's mastery of 
                competencies by identifying what students know and the 
                skills mastered through rigorous assessment;
                    ``(C) determines and reports to the Secretary the 
                number of credit or clock hours that would be needed 
                for the attainment of a similar level of knowledge, 
                skills, and characteristics in a standard credit or 
                clock hour program;
                    ``(D) provides the educational content, activities, 
                support, and resources necessary to enable students to 
                develop and attain the competencies that are required 
                to demonstrate mastery of such competencies, including 
                a system for monitoring a student's engagement and 
                progress in each competency, in which faculty are 
                responsible for providing proactive academic 
                assistance, when needed, on the basis of such 
                monitoring;
                    ``(E) upon a student's demonstration or mastery of 
                a set of competencies identified and required by the 
                institution, leads to or results in the awarding of a 
                certificate or degree;
                    ``(F) ensures that funds received under this title 
                may be used only for learning that results from 
                instruction provided or overseen by the institution and 
                not for the portion of the program of which the student 
                has demonstrated mastery prior to enrollment in the 
                program or tests of learning that are not associated 
                with educational activities overseen by the 
                institution;
                    ``(G) is organized in a manner that an institution 
                can determine, based on the method of measurement 
                selected by the institution, and approved by the 
                accreditor as described in subsection (c), what 
                constitutes a full-time, three-quarter time, half-time, 
                and less than half-time workload for the purposes of 
                awarding and administering assistance under this title, 
                or assistance provided under another provision of 
                Federal law to attend an institution of higher 
                education; and
                    ``(H) may use a disaggregated faculty model in 
                which the educational responsibilities for an academic 
                course are divided among a number of individuals, each 
                performing specific tasks essential to instruction, 
                including curriculum design, content delivery, and 
                student assessment.
            ``(4) Director.--The term `Director' means the Director of 
        the Institute of Education Sciences.
            ``(5) Dual or concurrent enrollment program.--The term 
        `dual or concurrent enrollment program' has the meaning given 
        the term in section 8101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7801).
            ``(6) Eligible entity.--The term `eligible entity' means an 
        institution of higher education, which may be an institution of 
        higher education that offers a dual or concurrent enrollment 
        program.
            ``(7) First generation college student.--The term `first 
        generation college student' has the meaning given the term in 
        section 402A(h)(3).
            ``(8) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 102, except that such term does not include 
        institutions described in section 102(a)(1)(C).''.
    (b) Exception to Student Unit Record Ban.--Section 134(b) of the 
Higher Education Act of 1965 (20 U.S.C. 1015c(b)) is amended--
            (1) by striking ``(1) is necessary'' and inserting the 
        following ``(1)(A) is necessary'';
            (2) by striking ``(2) was in'' and inserting the following 
        ``(B) was in'';
            (3) by striking the period at the end and inserting ``; 
        or''; and
            (4) by adding at the end the following:
            ``(2) is necessary for the operation of section 486B.''.
    (c) Rule of Construction.--Nothing in this Act or the amendments 
made by this Act shall be construed to alter the authority of the 
Secretary of Education to establish experimental sites under any other 
provision of law.

SEC. 3. COMPETENCY-BASED EDUCATION COUNCIL.

    (a) Establishment of a Committee on Competency-Based Education.--
Not later than 6 months after the date of enactment of this Act, there 
shall be established the Competency-Based Education Council (referred 
to in this section as the ``Council'').
    (b) Membership.--
            (1) Composition.--The Council shall be composed of--
                    (A) 3 individuals appointed by the Secretary of 
                Education;
                    (B) 2 individuals appointed by the Director of the 
                Bureau of Consumer Financial Protection;
                    (C) not less than 8 and not more than 13 
                individuals appointed by the Comptroller General of the 
                United States, representing--
                            (i) experts in competency-based education;
                            (ii) faculty members in competency-based 
                        education programs;
                            (iii) administrators at institutions that 
                        offer competency-based education programs;
                            (iv) individuals currently enrolled in or 
                        graduated from a competency-based education 
                        program;
                            (v) accrediting agencies or associations 
                        that recognize competency-based education 
                        programs;
                            (vi) experts from State educational 
                        agencies; and
                            (vii) business and industry 
                        representatives;
                    (D) 4 members appointed by--
                            (i) the majority leader of the Senate;
                            (ii) the minority leader of the Senate;
                            (iii) the Speaker of the House of 
                        Representatives; and
                            (iv) the minority leader of the House of 
                        Representatives.
            (2) Chairperson.--The Council shall select a Chairperson 
        from among its members.
            (3) Vacancies.--Any vacancy in the Council shall not affect 
        the powers of the Council and shall be filled in the same 
        manner as an initial appointment.
    (c) Meetings.--The Council shall hold, at the call of the 
Chairperson, not less than 6 meetings before completing the study 
required under subsection (e) and the report required under subsection 
(f).
    (d) Personnel Matters.--
            (1) Compensation of members.--Each member of the Council 
        shall serve without compensation in addition to any such 
        compensation received for the member's service as an officer or 
        employee of the United States, if applicable.
            (2) Travel expenses.--The members of the Council shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter 1 of chapter 57 of title 5, United States 
        Code, while away from their homes or regular places of business 
        in the performance of services for the Council.
    (e) Duties of the Council.--
            (1) Study.--The Council shall conduct a study on the 
        ongoing innovation and development of competency-based 
        education programs.
            (2) Recommendations.--Based on the findings of the study 
        under paragraph (1), and the annual evaluations of the 
        demonstration projects under section 486B of the Higher 
        Education Act of 1965, the Council shall develop 
        recommendations for the authorization of competency-based 
        education under the Higher Education Act of 1965, including 
        recommendations that--
                    (A) provide or update standard definitions, if 
                needed, for relevant terms, including--
                            (i) competency-based education;
                            (ii) competency-based education program; 
                        including quality indicators, that include 
                        appropriate student outcome metrics, for such 
                        programs; and
                            (iii) any other relevant definitions agreed 
                        upon; and
                    (B) address--
                            (i) the amount of learning in a competency 
                        unit;
                            (ii) the transfer of competency-based 
                        education credits to other institutions or 
                        programs;
                            (iii) the minimum amount of time in an 
                        academic year for competency-based education 
                        programs, for financial aid purposes;
                            (iv) considerations for accreditation 
                        agencies before recognizing competency-based 
                        education programs;
                            (v) address the role of faculty and faculty 
                        involvement in competency-based education 
                        programs;
                            (vi) additional resources that may be 
                        needed for adequate oversight of competency-
                        based education programs; and
                            (vii) the responsiveness of competencies to 
                        the labor market and employers.
    (f) Reports.--
            (1) Interim reports.--Not later than 2 years after the date 
        of enactment of this Act, and biennially thereafter until the 
        final report is submitted under paragraph (2), the Council 
        shall prepare and submit to the Secretary of Education and 
        Congress and make available to the public a report that 
        provides ongoing feedback to the annual evaluations of the 
        demonstration projects under section 486B(g)(2) of the Higher 
        Education Act of 1965, including a discussion of implementation 
        challenges programs face, and the items listed in subsection 
        (e)(2)(B).
            (2) Final report.--Not later than 6 years after the date of 
        enactment of this Act, the Council shall prepare and submit to 
        the Secretary of Education and Congress and make available to 
        the public a report containing the findings of the study under 
        subsection (e)(1) and the recommendations developed under 
        subsection (e)(2).
                                 <all>
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