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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3136 Referred in Senate (RFS)]

113th CONGRESS
  2d Session
                                H. R. 3136

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 24, 2014

     Received; read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 AN ACT

 
  To establish a demonstration program for competency-based education.

    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 
Demonstration Project Act of 2014''.

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 (c), eligible entities to 
voluntarily carry out competency-based education demonstration projects 
and receive waivers described in subsection (d) 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.--The Secretary shall, prior to any deadline 
        to submit applications under paragraph (1), conduct outreach to 
        historically Black colleges and universities, Hispanic-serving 
        institutions, Native American-serving, nontribal institutions, 
        institutions serving students with special needs, and 
        institutions located in rural areas to provide those 
        institutions with information on the opportunity to apply to 
        carry out a demonstration project under this section.
            ``(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 15 days of receipt.
                    ``(B) Expanding enrollment.--Notwithstanding the 
                assurance required with respect to maximum enrollment 
                under paragraph (3)(H)--
                            ``(i) an eligible entity whose 
                        demonstration project has been evaluated under 
                        subsection (f)(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 or annual enrollment growth 
                                for the project;
                                    ``(II) how the eligible entity will 
                                successfully carry out the project with 
                                such maximum enrollment or 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 (f)(2).
            ``(4) Contents.--Each application shall include--
                    ``(A) a description of the competency-based 
                education to be offered by the eligible entity under 
                the demonstration project;
                    ``(B) a description of the proposed academic 
                delivery, business, and financial models for the 
                demonstration project, including explanations of how 
                competency-based education offered under the 
                demonstration project would--
                            ``(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 degree, certificate, or credential 
                        completion;
                    ``(C) a description of how the competency-based 
                education offered under the demonstration project will 
                progress a student toward completion of a degree, 
                certificate, or credential;
                    ``(D) a description of how the eligible entity will 
                articulate the transcript from the competency-based 
                education demonstration project to another program 
                within an institution of higher education that is part 
                of the eligible entity or to another institution of 
                higher education;
                    ``(E) a description of the statutory and regulatory 
                requirements described in subsection (d) for which the 
                eligible entity is seeking a waiver, and why such 
                waiver is necessary to carry out the demonstration 
                project;
                    ``(F) a description of how the eligible entity will 
                develop and evaluate the competencies and assessments 
                of student knowledge (which may include prior-learning 
                assessments) administered as part of the demonstration 
                project, including how such competencies and 
                assessments are aligned with workforce needs;
                    ``(G) 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 safeguards 
                to ensure that students are making satisfactory 
                progress that warrants disbursement of such aid;
                    ``(H) a description of the students to whom 
                competency-based education will be offered, including 
                an assurance that the demonstration project will enroll 
                a minimum of 50 and a maximum of 3,000 students;
                    ``(I) an assurance that students participating in 
                the demonstration project will not be eligible for more 
                Federal assistance under this title than such students 
                would have been eligible for under a traditional 
                program;
                    ``(J) an assurance the eligible entity will 
                identify and disseminate best practices with respect to 
                the demonstration project to other eligible entities 
                carrying out a demonstration project under this 
                section; and
                    ``(K) A description of the population of students 
                served by the eligible entity that are veterans or 
                members of the Armed Forces and how such eligible 
                entity will, when appropriate, incorporate the specific 
                needs of such population when carrying out the 
                demonstration project.
    ``(c) Selection.--
            ``(1) In general.--Not later than 6 months after the date 
        of enactment of this section, the Secretary shall select not 
        more than 30 eligible entities to carry out a competency-based 
        education demonstration project under this section.
            ``(2) Considerations.--In selecting eligible entities under 
        paragraph (1), the Secretary shall--
                    ``(A) prioritize projects which show promise in 
                reducing the time or cost required to complete a 
                degree, certificate, or credential;
                    ``(B) consider the number and quality of 
                applications received;
                    ``(C) 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; and
                            ``(iv) commitment to work with the 
                        Secretary to evaluate the demonstration project 
                        and the impact of the demonstration project;
                    ``(D) ensure the selection of a diverse group of 
                eligible entities with respect to size, mission, and 
                geographic distribution of the eligible entities;
                    ``(E) not limit the types of programs of study or 
                courses of study approved for participation in a 
                demonstration project; and
                    ``(F) not select an eligible entity that has had, 
                for 1 of the preceding 2 fiscal years--
                            ``(i) a cohort default rate (defined in 
                        section 435(m)) that is 30 percent or greater; 
                        and
                            ``(ii) a borrowing rate of loans under this 
                        title of more than 50 percent of the students 
                        enrolled at institutions of higher education of 
                        the eligible entity.
    ``(d) Waivers.--The Secretary may waive for any eligible entity 
selected to carry out a demonstration project under this section any 
requirements of the following provisions of law (including any 
regulations promulgated under such provisions) or regulations and for 
which the eligible entity has provided a reason for waiving under 
subsection (b)(3)(E):
            ``(1) Subparagraphs (A) and (B) of section 102(a)(3).
            ``(2) Subsections (a) and (b) of section 481, as such 
        subsections relate to requirements for a minimum number of 
        weeks of instruction.
            ``(3) Section 484(l)(1).
            ``(4) Section 668.32(a)(1)(iii) of title 34, Code of 
        Federal Regulations.
            ``(5) Any of the requirements under provisions in title I, 
        part F of this title, or this part, that inhibit the operation 
        of competency-based education, including requirements with 
        respect to--
                    ``(A) documenting attendance;
                    ``(B) weekly academic activity;
                    ``(C) minimum weeks of instructional time;
                    ``(D) requirements for credit hour or clock hour 
                equivalencies;
                    ``(E) requirements for substantive interaction with 
                faculty; and
                    ``(F) definitions of the terms `academic year', 
                `full-time student', `term' (including `standard term', 
                `non-term', and `non-standard term'), `satisfactory 
                academic progress', `educational activity', `project of 
                study', and `payment period'.
    ``(e) Notification.--Not later than 6 months after the date of 
enactment of this section, 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 statutory and regulatory requirements 
        being waived under subsection (d); and
            ``(2) a description of the competency-based education 
        programs of study or courses of study to be offered under the 
        project.
    ``(f) Information and Evaluation.--
            ``(1) Information.--
                    ``(A) In general.--Each eligible entity that 
                carries out a demonstration project under this section 
                shall provide to the Director of the Institute of 
                Education Sciences with respect to the students 
                participating in the competency-based education project 
                carried out by the eligible entity the following 
                information:
                            ``(i) The average number of credit hours 
                        the students earned prior to enrollment in the 
                        demonstration project, if applicable.
                            ``(ii) The number and percentage of 
                        students participating in the demonstration 
                        project 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 
                        demonstration project and the first assessment 
                        of student knowledge of such student.
                            ``(iv) The average time to 25 percent, 50 
                        percent, 75 percent, and 100 percent of the 
                        completion of a degree, certificate, or 
                        credential by a student who participated in the 
                        demonstration project.
                            ``(v) The percentage of assessments of 
                        student knowledge that students passed on the 
                        first attempt, during the period of the 
                        participation in the demonstration project by 
                        the students.
                            ``(vi) The percentage of assessments of 
                        student knowledge that students passed on the 
                        second attempt and the average period of time 
                        between the first and second attempts by 
                        students, during the period of the 
                        participation in the demonstration project by 
                        the students.
                            ``(vii) The average number of competencies 
                        a student acquired while participating in the 
                        demonstration project and the period of time 
                        during which the student acquired such 
                        competencies.
                            ``(viii) Such other information as the 
                        Director may reasonably require.
                    ``(B) Employment data.--
                            ``(i) In general.--Each eligible entity 
                        that carries out a demonstration project under 
                        this section may provide to the Director of the 
                        Institute of Education Sciences with respect to 
                        the students participating in the competency-
                        based education project carried out by the 
                        eligible entity the number and percentage of 
                        students completing a competency-based 
                        education program or course of study offered by 
                        such eligible entity who find employment in a 
                        field related to the program or course of study 
                        of such students.
                            ``(ii) Technical assistance.--The Director 
                        of the Institute of Education Sciences shall, 
                        at the request of an eligible entity, provide 
                        technical assistance to such eligible entity to 
                        assist such eligible entity in collecting and 
                        reporting accurate information relating to the 
                        employment of students participating in a 
                        competency-based education project carried out 
                        by such eligible entity.
                    ``(C) Disaggregation.--Each eligible entity shall 
                provide the information required under subparagraph (A) 
                disaggregated by age, race, gender, disability status, 
                and status as a recipient of a Federal Pell Grant, 
                provided that the disaggregation of the information 
                does not identify any individual student participating 
                in the demonstration project.
            ``(2) Evaluation.--The Director of the Institute of 
        Education Sciences, in consultation with the Secretary, shall 
        annually evaluate each demonstration project under this 
        section. Each evaluation shall include--
                    ``(A) the extent to which the eligible entity has 
                met the goals set forth in its application to the 
                Secretary;
                    ``(B) the number and types of students 
                participating in the competency-based education offered 
                under the project, including the progress of 
                participating students toward completion of a degree, 
                certificate, or credential, and the extent to which 
                participation and retention in such project increased;
                    ``(C) whether the project led to reduced cost or 
                time to completion of a degree, certificate, or 
                credential, and the amount of cost or time reduced for 
                such completion;
                    ``(D) obstacles related to student financial 
                assistance for competency-based education;
                    ``(E) the extent to which statutory or regulatory 
                requirements not waived under subsection (d) present 
                difficulties for students or institutions of higher 
                education;
                    ``(F) degree, certificate, or credential completion 
                rates;
                    ``(G) retention rates;
                    ``(H) total cost and net cost to the student of the 
                competency-based education offered under the project;
                    ``(I) a description of the assessments of student 
                knowledge and the corresponding competencies; and
                    ``(J) outcomes of the assessments of student 
                knowledge.
            ``(3) Annual report.--The Director of the Institute of 
        Education Sciences shall annually provide to the authorizing 
        committees a report on--
                    ``(A) the evaluations of the demonstration projects 
                required under paragraph (2);
                    ``(B) the number and types of students receiving 
                assistance under this title for competency-based 
                education under such projects;
                    ``(C) the retention and completion rates of 
                students participating in such projects;
                    ``(D) any proposed statutory or regulatory changes 
                designed to support and enhance the expansion of 
                competency-based education, which may be independent of 
                or combined with traditional credit hour or clock hour 
                projects;
                    ``(E) the most effective means of delivering 
                competency-based education through demonstration 
                projects; and
                    ``(F) the appropriate level and distribution 
                methodology of Federal assistance under this title for 
                students enrolled in competency-based education.
    ``(g) Oversight.--In carrying out this section, the Secretary 
shall, on a continuing 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 (d));
            ``(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; and
            ``(5) collect and disseminate to eligible entities carrying 
        out a demonstration project under this section, best practices 
        with respect to demonstration projects under this section.
    ``(h) Disclosure of Authorization to Sell Student Data.--An 
eligible entity carrying out a demonstration project under this section 
shall ensure that each institution of higher education of the eligible 
entity provides to each student, or the parents of each minor student, 
enrolled in the institution of higher education--
            ``(1) a disclosure letter, which describes the personally 
        identifiable information of the student that may be sold by a 
        person with whom the institution of higher education has an 
        agreement to provide software applications for students; and
            ``(2) an option to opt-out of such personally identifiable 
        information from being sold.
    ``(i) Definitions.--For the purpose of this section:
            ``(1) Competency-based education.--The term `competency-
        based education' means an educational process or program that 
        measures knowledge, skills, and experience through assessments 
        of such knowledge, skills, or experience in place of or in 
        addition to the use of credit hours or clock hours.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) an institution of higher education including 
                an institution of higher education that offers a dual-
                enrollment program under which a secondary school 
                student is able simultaneously to earn credit toward a 
                secondary school diploma and a postsecondary degree, 
                certificate, or credential;
                    ``(B) a system of institutions of higher education; 
                or
                    ``(C) a consortium of institutions of higher 
                education.
            ``(3) 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) 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.
    (c) Report.--The Secretary of Education shall report to Congress, 
every 10 years, on the needs of limited English proficient students 
using the Free Application for Federal Student Aid.
    (d) Funding.--
            (1) Use of existing funds.--Of the amount authorized to be 
        appropriated for salaries and expenses of the Department of 
        Education, $1,000,000 shall be available to carry out this Act 
        and the amendments made by this Act.
            (2) No additional funds authorized.--No funds are 
        authorized to be appropriated by this Act to carry out this Act 
        or the amendments made by this Act.

SEC. 3. HIGHER EDUCATION REGULATORY REFORM TASK FORCE.

    (a) Task Force Established.--Not later than 2 months after the date 
of enactment of this Act, the Secretary of Education shall establish 
the Higher Education Regulatory Reform Task Force.
    (b) Membership.--The Higher Education Regulatory Reform Task Force 
shall include--
            (1) the Secretary of Education or the Secretary's designee;
            (2) a representative of the Advisory Committee on Student 
        Financial Assistance established under section 491 of the 
        Higher Education Act of 1965 (20 U.S.C. 1098); and
            (3) representatives from the higher education community, 
        including--
                    (A) institutions of higher education, with equal 
                representation of public and private nonprofit 
                institutions, and two-year and four-year institutions, 
                and with not less than 25 percent of such 
                representative institutions carrying out distance 
                education programs; and
                    (B) nonprofit organizations representing 
                institutions of higher education.
    (c) Activities.--
            (1) Report required.--Not later than 6 months after the 
        date of enactment of this Act, the Secretary of Education shall 
        submit to Congress and make available on a publicly available 
        website a report (in this section referred to as the ``Higher 
        Education Regulatory Reform Report'') prepared by the Higher 
        Education Regulatory Reform Task Force on Department of 
        Education regulatory requirements for institutions of higher 
        education described in paragraph (2).
            (2) Contents of report.--The Higher Education Regulatory 
        Reform Report shall contain the following with respect to 
        Department of Education regulatory requirements for 
        institutions of higher education:
                    (A) A list of rules that are determined to be 
                outmoded, duplicative, ineffective, or excessively 
                burdensome.
                    (B) For each rule listed in accordance with 
                subparagraph (A) and that is in effect at the time of 
                the review under subparagraph (A), an analysis of 
                whether the costs outweigh the benefits for such rule.
                    (C) Recommendations to consolidate, modify, 
                simplify, or repeal such rules to make such rules more 
                effective or less burdensome.
                    (D) A description of the justification for and 
                impact of the recommendations described in subparagraph 
                (C), as appropriate and available, including supporting 
                data for such justifications and the financial impact 
                of such recommendations on institutions of higher 
                education of varying sizes and types.
                    (E) Recommendations on the establishment of a 
                permanent entity to review new Department of Education 
                regulatory requirements affecting institutions of 
                higher education.
            (3) Notice and comment.--At least 30 days before submission 
        of the Higher Education Regulatory Reform Report required under 
        paragraph (1), the Secretary of Education shall publish the 
        report in the Federal Register for public notice and comment. 
        The Higher Education Regulatory Reform Task Force may modify 
        the report in response to any comments received before 
        submission of the report to Congress.
    (d) Definition of Institution of Higher Education.--For the 
purposes of this section, the term ``institution of higher education'' 
has the meaning given such term in section 102 of the Higher Education 
Act of 1965 (20 U.S.C. 1002), except that such term does not include 
institutions described in subsection (a)(1)(C) of such section 102.

SEC. 4. STUDY ON USE OF INDIVIDUAL INCOME TAX RETURNS AS PRIMARY 
              APPLICATION FOR FEDERAL STUDENT AID.

    Section 483 of the Higher Education Act of 1965 (20 U.S.C. 1090) is 
amended by adding at the end the following new subsection:
    ``(i) Study on Use of Individual Income Tax Returns as Primary 
Application for Federal Student Aid.--
            ``(4) Study.--The Secretary of Education, in consultation 
        with the Commissioner of Internal Revenue, shall conduct a 
        study on the feasibility and advantages and disadvantages of 
        using individual income tax returns as the primary form of 
        application for student aid under the Higher Education Act of 
        1965 (20 U.S.C. 1001 et seq.).
            ``(5) Report.--Not later than one year after the date of 
        the enactment of this subsection, the Secretary, in 
        consultation with the Commissioner, shall submit to Congress a 
        report containing the results of the study conducted under 
        subsection (a).''.

            Passed the House of Representatives July 23, 2014.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.
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