I 
113TH CONGRESS 
2D SESSION 
H. R. 4391 
To establish the Proprietary Education Oversight Coordination Committee. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 3, 2014 
Mr. CUMMINGS introduced the following bill; which was referred to the 
Committee on Education and the Workforce 
A BILL 
To establish the Proprietary Education Oversight 
Coordination Committee. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Proprietary Education 
Oversight Coordination Improvement Act’’. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) EXECUTIVE OFFICER.—The term ‘‘executive 
officer’’, with respect to a proprietary institution of 
higher education that is a publicly traded corpora-
tion, means— 
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(A) the president of such corporation; 
(B) a vice president of such corporation 
who is in charge of a principal business unit, di-
vision, or function of such corporation, such as 
sales, administration, or finance; or 
(C) any other officer or person who per-
forms a policy-making function for such cor-
poration. 
(2) FEDERAL
EDUCATION
ASSISTANCE.—The 
term ‘‘Federal education assistance’’ means any 
Federal financial assistance provided under any Fed-
eral law through a grant, a contract, a subsidy, a 
loan, a guarantee, an insurance, or any other means 
to a proprietary institution of higher education, in-
cluding Federal financial assistance that is disbursed 
or delivered to such institution, on behalf of a stu-
dent, or to a student to be used to attend such insti-
tution, except that such term shall not include any 
monthly housing stipend provided under chapter 33 
of title 38, United States Code. 
(3) PRIVATE
EDUCATION
LOAN.—The term 
‘‘private education loan’’— 
(A) means a loan provided by a private 
educational lender (as defined in section 140(a) 
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of the Truth in Lending Act (15 U.S.C. 
1650(a))) that— 
(i) is not made, insured, or guaran-
teed under title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070 et 
seq.); 
(ii) is issued expressly for postsec-
ondary educational expenses to a borrower, 
regardless of whether the loan is provided 
through the educational institution that 
the subject student attends or directly to 
the borrower from the private educational 
lender (as so defined); and 
(iii) is not made, insured, or guaran-
teed under title VII or title VIII of the 
Public Health Service Act (42 U.S.C. 292 
et seq. and 296 et seq.); and 
(B) does not include an extension of credit 
under an open-end consumer credit plan, a re-
verse mortgage transaction, a residential mort-
gage transaction, or any other loan that is se-
cured by real property or a dwelling. 
(4) PROPRIETARY
INSTITUTION
OF
HIGHER 
EDUCATION.—The term ‘‘proprietary institution of 
higher education’’ has the meaning given the term in 
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section 102(b) of the Higher Education Act of 1965 
(20 U.S.C. 1002(b)). 
(5) RECRUITING
AND
MARKETING
ACTIVI-
TIES.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘‘recruiting and 
marketing activities’’ means activities that con-
sist of the following: 
(i) Advertising and promotion activi-
ties, including paid announcements in 
newspapers, magazines, radio, television, 
billboards, electronic media, naming rights, 
or any other public medium of communica-
tion, including paying for displays or pro-
motions at job fairs, military installations, 
or college recruiting events. 
(ii) Efforts to identify and attract 
prospective students, either directly or 
through a contractor or other third party, 
including contact concerning a prospective 
student’s potential enrollment or applica-
tion for a grant, a loan, or work assistance 
under title IV of the Higher Education Act 
of 1965 (20 U.S.C. 1070 et seq.) or par-
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ticipation in preadmission or advising ac-
tivities, including— 
(I) paying employees responsible 
for overseeing enrollment and for con-
tacting potential students in-person, 
by phone, by email, or by other inter-
net communications regarding enroll-
ment; and 
(II) soliciting an individual to 
provide contact information to an in-
stitution of higher education, includ-
ing through websites established for 
such purpose and funds paid to third 
parties for such purpose. 
(iii) Such other activities as the Sec-
retary of Education may prescribe, includ-
ing paying for promotion or sponsorship of 
education or military-related associations. 
(B) EXCEPTIONS.—Any activity that is re-
quired as a condition of receipt of funds by an 
institution under title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070 et seq.), is 
specifically authorized under such title, or is 
otherwise specified by the Secretary of Edu-
cation, shall not be considered to be a recruit-
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ing and marketing activity under subparagraph 
(A). 
(6) STATE
APPROVAL
AGENCY.—The term 
‘‘State approval agency’’ means any State agency 
that determines whether an institution of higher 
education is legally authorized within such State to 
provide a program of education beyond secondary 
education. 
(7) VETERANS
SERVICE
ORGANIZATION.—The 
term ‘‘veterans service organization’’ means an orga-
nization recognized by the Secretary of Veterans Af-
fairs for the representation of veterans under section 
5902 of title 38, United States Code. 
SEC. 3. ESTABLISHMENT OF COMMITTEE. 
(a) ESTABLISHMENT.—There is established a com-
mittee to be known as the ‘‘Proprietary Education Over-
sight Coordination Committee’’ (referred to in this Act as 
the ‘‘Committee’’) and to be composed of the head (or the 
designee of such head) of each of the following Federal 
entities: 
(1) The Department of Education. 
(2) The Consumer Financial Protection Bu-
reau. 
(3) The Department of Justice. 
(4) The Securities and Exchange Commission. 
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(5) The Department of Defense. 
(6) The Department of Veterans Affairs. 
(7) The Federal Trade Commission. 
(8) The Department of Labor. 
(9) The Internal Revenue Service. 
(10) At the discretion of the President, any 
other relevant Federal agency or department. 
(b) PURPOSES.—The Committee shall have the fol-
lowing purposes: 
(1) Coordinate Federal oversight of proprietary 
institutions of higher education to— 
(A) improve enforcement of applicable 
Federal laws and regulations; 
(B) increase accountability of proprietary 
institutions of higher education to students and 
taxpayers; and 
(C) ensure the promotion of quality edu-
cation programs. 
(2) Coordinate Federal activities to protect stu-
dents from unfair, deceptive, abusive, unethical, 
fraudulent, or predatory practices, policies, or proce-
dures of proprietary institutions of higher education. 
(3) Encourage information sharing among 
agencies related to Federal investigations, audits, or 
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inquiries of proprietary institutions of higher edu-
cation. 
(4) Increase coordination and cooperation be-
tween Federal and State agencies, including State 
Attorneys General and State approval agencies, with 
respect to improving oversight and accountability of 
proprietary institutions of higher education. 
(5) Develop best practices and consistency 
among Federal and State agencies in the dissemina-
tion of consumer information regarding proprietary 
institutions of higher education to ensure that stu-
dents, parents, and other stakeholders have easy ac-
cess to such information. 
(c) MEMBERSHIP.— 
(1) DESIGNEES.—For any designee described in 
subsection (a), the head of the member entity shall 
appoint a high-level official who exercises significant 
decisionmaking authority for the oversight or inves-
tigatory activities and responsibilities related to pro-
prietary institutions of higher education of the re-
spective Federal entity of such head. 
(2) CHAIRPERSON.—The Secretary of Edu-
cation or the designee of such Secretary shall serve 
as the Chairperson of the Committee. 
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(3) COMMITTEE SUPPORT.—The head of each 
entity described in subsection (a) shall ensure appro-
priate staff and officials of such entity are available 
to support the Committee-related work of such enti-
ty. 
SEC. 4. MEETINGS. 
(a) COMMITTEE MEETINGS.—The members of the 
Committee shall meet regularly, but not less than once 
during each quarter of each fiscal year, to carry out the 
purposes described in section 3(b). 
(b) MEETINGS WITH STATE AGENCIES AND STAKE-
HOLDERS.—The Committee shall meet not less than once 
each fiscal year, and shall otherwise interact regularly, 
with State Attorneys General, State approval agencies, 
veterans service organizations, and consumer advocates to 
carry out the purposes described in section 3(b). 
SEC. 5. REPORT. 
(a) IN GENERAL.—The Committee shall submit a re-
port each year to the Committee on Health, Education, 
Labor, and Pensions of the Senate, the Committee on 
Education and the Workforce of the House of Representa-
tives, and any other committee of Congress that the Com-
mittee determines appropriate. 
(b) PUBLIC ACCESS.—The report described in sub-
section (a) shall be made available to the public in a man-
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ner that is easily accessible to parents, students, and other 
stakeholders in accordance with the best practices devel-
oped under section 3(b)(5). 
(c) CONTENTS.— 
(1) IN GENERAL.—The report shall include— 
(A) an accounting of any action (as de-
fined in paragraph (3)) taken by the Federal 
Government, any member entity of the Com-
mittee, or a State— 
(i) to enforce Federal or State laws 
and regulations applicable to proprietary 
institutions of higher education; 
(ii) to hold proprietary institutions of 
higher education accountable to students 
and taxpayers; and 
(iii) to promote quality education pro-
grams; 
(B) a summary of complaints against each 
proprietary institution of higher education re-
ceived by any member entity of the Committee; 
(C) the data described in paragraph (2) 
and any other data relevant to proprietary insti-
tutions of higher education that the Committee 
determines appropriate; and 
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(D) recommendations of the Committee for 
such legislative and administrative actions as 
the Committee determines are necessary to— 
(i) improve enforcement of applicable 
Federal laws; 
(ii) increase accountability of propri-
etary institutions of higher education to 
students and taxpayers; and 
(iii) ensure the promotion of quality 
education programs. 
(2) DATA.— 
(A) INDUSTRY-WIDE
DATA.—The report 
shall include data on all proprietary institutions 
of higher education that consists of information 
regarding— 
(i) the total amount of Federal edu-
cation assistance that proprietary institu-
tions of higher education received for the 
previous academic year, and the percentage 
of the total amount of Federal education 
assistance provided to institutions of high-
er education (as defined in section 102 of 
the Higher Education Act of 1965 (20 
U.S.C. 1002)) for such previous academic 
year that reflects such total amount of 
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corporations, consisting of information 
on— 
(I) any pre-tax profit of such 
proprietary institutions of higher edu-
cation— 
(aa) reported as a total 
amount and an average percent 
of revenue for all such propri-
etary institutions of higher edu-
cation; and 
(bb) reported for each such 
proprietary institution of higher 
education; 
(II) revenue for such proprietary 
institutions of higher education spent 
on recruiting and marketing activities, 
student instruction, and student sup-
port services, reported— 
(aa) as a total amount and 
an average percent of revenue for 
all such proprietary institutions 
of higher education; and 
(bb) for each such propri-
etary institution of higher edu-
cation; 
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(III) total compensation packages 
of the executive officers of each such 
proprietary institution of higher edu-
cation; 
(IV) a list of institutional loan 
programs offered by each such propri-
etary institution of higher education 
that includes information on the de-
fault and interest rates of such pro-
grams; and 
(V) the data described in clauses 
(ii) and (iii). 
(ii) 
DISAGGREGATED
BY
OWNER-
SHIP.—The report shall include data on 
proprietary institutions of higher education 
that are publicly traded corporations, 
disaggregated by corporate or parent enti-
ty, brand name, and campus, consisting 
of— 
(I) the total cost of attendance 
for each program at each such propri-
etary institution of higher education, 
and information comparing such total 
cost for each such program to— 
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(aa) the total cost of attend-
ance for each program at each 
public institution of higher edu-
cation; and 
(bb) the average total cost 
of attendance for each program 
at all institutions of higher edu-
cation, including such institutions 
that are public and such institu-
tions that are private; 
(II) total enrollment, disaggre-
gated by— 
(aa) individuals enrolled in 
programs taken online; and 
(bb) individuals enrolled in 
programs that are not taken on-
line; 
(III) the average retention and 
graduation rates for students pur-
suing a degree at such proprietary in-
stitutions of higher education; 
(IV) the percentage of students 
enrolled in such proprietary institu-
tions of higher education who com-
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plete a program of such an institution 
within— 
(aa) the standard period of 
completion for such program; and 
(bb) a period that is 150 
percent of such standard period 
of completion; 
(V) the total cost of attendance 
for each program at such proprietary 
institutions of higher education; 
(VI) the average cohort default 
rate, as defined in section 435(m) of 
the Higher Education Act of 1965 (20 
U.S.C. 1085(m)), for such proprietary 
institutions of higher education, and 
an annual list of cohort default rates 
(as defined in such section) for all 
proprietary institutions of higher edu-
cation; 
(VII) the median educational 
debt incurred by students who com-
plete a program at such a proprietary 
institution of higher education; 
(VIII) the median educational 
debt incurred by students who start 
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but do not complete a program at 
such a proprietary institution of high-
er education; 
(IX) the job placement rate for 
students who complete a program at 
such a proprietary institution of high-
er education and the type of employ-
ment obtained by such students; 
(X) for careers requiring the pas-
sage of a licensing examination, the 
rate of individuals who attended such 
a proprietary institution of higher 
education and passed such an exam-
ination; and 
(XI) the number of complaints 
from students enrolled in such propri-
etary institutions of higher education 
who have submitted a complaint to 
any member entity of the Committee. 
(iii) DEPARTMENT OF DEFENSE AND 
VETERANS AFFAIRS ASSISTANCE.— 
(I) IN GENERAL.—To the extent 
practicable, the report shall provide 
information on the data described in 
clause (ii) for individuals using, to pay 
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(3) ACCOUNTING
OF
ANY
ACTION.—For the 
purposes of paragraph (1)(A), the term ‘‘any action’’ 
shall include— 
(A) a complaint filed by a Federal or State 
agency in a local, State, Federal, or tribal 
court; 
(B) an administrative proceeding by a 
Federal or State agency involving noncompli-
ance of any applicable law or regulation; or 
(C) any other review, audit, or administra-
tive process by any Federal or State agency 
that results in a penalty, suspension, or termi-
nation from any Federal or State program. 
SEC. 6. FOR-PROFIT COLLEGE WARNING LIST FOR PAR-
ENTS AND STUDENTS. 
(a) IN GENERAL.—Each academic year, the Com-
mittee shall publish a list to be known as the ‘‘For-Profit 
College Warning List for Parents and Students’’ to be 
comprised of proprietary institutions of higher edu-
cation— 
(1) that have engaged in illegal activity during 
the previous academic year as determined by a Fed-
eral or State court; 
(2) that have entered into a settlement result-
ing in a monetary payment; 
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(3) that have had any higher education pro-
gram withdrawn or suspended; or 
(4) for which the Committee has sufficient evi-
dence of widespread or systemic unfair, deceptive, 
abusive, unethical, fraudulent, or predatory prac-
tices, policies, or procedures that pose a threat to 
the academic success, financial security, or general 
best interest of students. 
(b) DETERMINATIONS.—In making a determination 
pursuant to subsection (a)(4), the Committee may con-
sider evidence that includes the following: 
(1) Any consumer complaint collected by any 
member entity of the Committee. 
(2) Any complaint filed by a Federal or State 
agency in a Federal, State, local, or tribal court. 
(3) Any administrative proceeding by a Federal 
or State agency involving noncompliance of any ap-
plicable law or regulation. 
(4) Any other review, audit, or administrative 
process by any Federal or State agency that results 
in a penalty, suspension, or termination from any 
Federal or State program. 
(5) Data or information submitted by a propri-
etary institution of higher education to any accred-
iting agency or association recognized by the Sec-
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retary of Education pursuant to section 496 of the 
Higher Education Act of 1965 (20 U.S.C. 1099b) or 
the findings or adverse actions of any such accred-
iting agency or association. 
(6) Information submitted by a proprietary in-
stitution of higher education to any member entity 
of the Committee. 
(7) Any other evidence that the Committee de-
termines relevant in making a determination pursu-
ant to subsection (a)(4). 
(c) PUBLICATION.—Not later than July 1 of each fis-
cal year, the Committee shall publish the list described in 
subsection (a) prominently and in a manner that is easily 
accessible to parents, students, and other stakeholders in 
accordance with any best practices developed under sec-
tion 3(b)(5). 
Æ 
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