HR 3136 RFS 
dents participating in a competency-based 
education project carried out by such eligi-
ble entity. 
‘‘(C) DISAGGREGATION.—Each eligible en-
tity 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 Insti-
tute of Education Sciences, in consultation with the 
Secretary, shall annually evaluate each demonstra-
tion 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 com-
pletion of a degree, certificate, or credential, 
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and the extent to which participation and reten-
tion in such project increased; 
‘‘(C) whether the project led to reduced 
cost or time to completion of a degree, certifi-
cate, 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 regu-
latory requirements not waived under sub-
section (d) present difficulties for students or 
institutions of higher education; 
‘‘(F) degree, certificate, or credential com-
pletion 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 com-
petencies; and 
‘‘(J) outcomes of the assessments of stu-
dent knowledge. 
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HR 3136 RFS 
‘‘(3) ANNUAL
REPORT.—The Director of the 
Institute of Education Sciences shall annually pro-
vide 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 re-
ceiving assistance under this title for com-
petency-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 tradi-
tional credit hour or clock hour projects; 
‘‘(E) the most effective means of delivering 
competency-based 
education 
through 
dem-
onstration 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— 
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‘‘(1) assure compliance of eligible entities with 
the requirements of this title (other than the provi-
sions of law and regulations that are waived under 
subsection (d)); 
‘‘(2) provide technical assistance; 
‘‘(3) monitor fluctuations in the student popu-
lation enrolled in the eligible entities carrying out 
the demonstration projects under this section; 
‘‘(4) consult with appropriate accrediting agen-
cies or associations and appropriate State regulatory 
authorities for additional ways of improving the de-
livery of competency-based education; and 
‘‘(5) collect and disseminate to eligible entities 
carrying out a demonstration project under this sec-
tion, best practices with respect to demonstration 
projects under this section. 
‘‘(h) DISCLOSURE OF AUTHORIZATION TO SELL STU-
DENT DATA.—An eligible entity carrying out a demonstra-
tion project under this section shall ensure that each insti-
tution of higher education of the eligible entity provides 
to each student, or the parents of each minor student, en-
rolled in the institution of higher education— 
‘‘(1) a disclosure letter, which describes the per-
sonally identifiable information of the student that 
may be sold by a person with whom the institution 
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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 edu-
cational process or program that measures knowl-
edge, 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 en-
tity’ means— 
‘‘(A) an institution of higher education in-
cluding 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 di-
ploma and a postsecondary degree, certificate, 
or credential; 
‘‘(B) a system of institutions of higher 
education; or 
‘‘(C) a consortium of institutions of higher 
education. 
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HR 3136 RFS 
‘‘(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 es-
tablish experimental sites under any other provision of 
law. 
(c) REPORT.—The Secretary of Education shall re-
port 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 ex-
penses 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. 
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HR 3136 RFS 
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 Sec-
retary of Education shall establish the Higher Education 
Regulatory Reform Task Force. 
(b) MEMBERSHIP.—The Higher Education Regu-
latory Reform Task Force shall include— 
(1) the Secretary of Education or the Sec-
retary’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 non-
profit 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.— 
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HR 3136 RFS 
(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 re-
port (in this section referred to as the ‘‘Higher Edu-
cation 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 Edu-
cation 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 exces-
sively 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 bene-
fits for such rule. 
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(C) Recommendations to consolidate, mod-
ify, 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 avail-
able, including supporting data for such jus-
tifications and the financial impact of such rec-
ommendations on institutions of higher edu-
cation of varying sizes and types. 
(E) Recommendations on the establish-
ment of a permanent entity to review new De-
partment of Education regulatory requirements 
affecting institutions of higher education. 
(3) NOTICE AND COMMENT.—At least 30 days 
before submission of the Higher Education Regu-
latory Reform Report required under paragraph (1), 
the Secretary of Education shall publish the report 
in the Federal Register for public notice and com-
ment. The Higher Education Regulatory Reform 
Task Force may modify the report in response to 
any comments received before submission of the re-
port to Congress. 
(d) DEFINITION OF INSTITUTION OF HIGHER EDU-
CATION.—For the purposes of this section, the term ‘‘in-
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stitution 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 sec-
tion 102. 
SEC. 4. STUDY ON USE OF INDIVIDUAL INCOME TAX RE-
TURNS AS PRIMARY APPLICATION FOR FED-
ERAL STUDENT AID. 
Section 483 of the Higher Education Act of 1965 (20 
U.S.C. 1090) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(i) STUDY ON USE OF INDIVIDUAL INCOME TAX 
RETURNS AS PRIMARY APPLICATION FOR FEDERAL STU-
DENT AID.— 
‘‘(4) STUDY.—The Secretary of Education, in 
consultation with the Commissioner of Internal Rev-
enue, shall conduct a study on the feasibility and ad-
vantages and disadvantages of using individual in-
come 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, 
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shall submit to Congress a report containing the re-
sults of the study conducted under subsection (a).’’. 
Passed the House of Representatives July 23, 2014. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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