‘‘(3) ANNUAL REPORT.—The Director of the In-
stitute 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 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 ex-
pansion 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 demonstra-
tion projects; and 
‘‘(F) the appropriate level and distribution 
methodology of Federal assistance under this title 
for students enrolled in competency-based edu-
cation. 
‘‘(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; and 
‘‘(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. 
‘‘(h) 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 knowledge, 
skills, and experience through assessments of such 
knowledge, skills, or experience in place of or in addi-
tion to the use of credit hours or clock hours. 
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means— 
‘‘(A) an institution of higher education; 
‘‘(B) a system of institutions of higher edu-
cation; or 
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‘‘(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 ex-
perimental sites under any other provision of law. 
(c) 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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Union Calendar No. 395 
113TH CONGRESS 
2D SESSION 
H. R. 3136 
[Report No. 113–529] 
A BILL 
To establish a demonstration program for 
competency-based education. 
JULY 17, 2014 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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