I 
115TH CONGRESS 
1ST SESSION H. R. 2859 
To amend the Higher Education Act of 1965 to establish demonstration 
projects for competency-based education. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 8, 2017 
Mr. POLIS (for himself, Mr. MESSER, Mrs. DAVIS of California, Mr. TAKANO, 
Mr. ESPAILLAT, Mr. SCOTT of Virginia, Mr. SABLAN, and Mr. DANNY 
K. DAVIS of Illinois) introduced the following bill; which was referred to 
the Committee on Education and the Workforce 
A BILL 
To amend the Higher Education Act of 1965 to establish 
demonstration projects for competency-based education. 
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 ‘‘Advancing Com-
petency-Based Education Act of 2017’’. 
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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 amend-
ed by inserting after section 486A the following: 
‘‘SEC. 486B. COMPETENCY-BASED EDUCATION DEMONSTRA-
TION 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 and receive waiv-
ers or other flexibility described in subsection (e) to carry 
out such projects. 
‘‘(b) APPLICATION.— 
‘‘(1) IN GENERAL.—Each eligible entity desir-
ing 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, Na-
tive American-serving, nontribal institutions, institu-
tions serving students with special needs, and insti-
tutions located in rural areas to provide those insti-
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tutions with information on the opportunity to apply 
to carry out a demonstration project under this sec-
tion. 
‘‘(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.—Not-
withstanding the assurance required with re-
spect to maximum enrollment under paragraph 
(4)(I)— 
‘‘(i) an eligible entity whose dem-
onstration project has been evaluated 
under subsection (g)(2) not less than twice 
may submit to the Secretary an amend-
ment 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— 
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‘‘(I) the proposed maximum en-
rollment or annual enrollment growth 
for the project; 
‘‘(II) how the eligible entity will 
successfully carry out the project with 
such maximum enrollment or enroll-
ment 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 dem-
onstration project based on the project’s 
evaluations under subsection (g)(2). 
‘‘(4) CONTENTS.—Each application under para-
graph (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 proposed aca-
demic delivery, business, and financial models 
for the demonstration project, including expla-
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nations of how each competency-based edu-
cation program offered under the demonstration 
project will— 
‘‘(i) result in the achievement of com-
petencies; 
‘‘(ii) differ from standard credit hour 
approaches, in whole or in part; and 
‘‘(iii) result in lower costs or short-
ened time to the completion of a recog-
nized educational credential; 
‘‘(C) a description of how each com-
petency-based education program offered under 
the demonstration project will progress a stu-
dent toward completion of a recognized edu-
cational credential; 
‘‘(D) a description of the meaningful role 
of the appropriate faculty of the eligible entity 
in the development, design, implementation, de-
livery, and evaluation of each such competency- 
based education program; 
‘‘(E) a description of how each such com-
petency-based education program will provide 
strong post-enrollment earnings and loan repay-
ment outcomes; 
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‘‘(F) a description of how the eligible enti-
ty will articulate the transcript from a com-
petency-based education program offered under 
the demonstration project to another program 
at the eligible entity or at another institution of 
higher education; 
‘‘(G) 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 dem-
onstration project; 
‘‘(H) a description of how a third party 
will assess student learning for each com-
petency-based education program offered under 
the demonstration project; 
‘‘(I) 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 
how such competencies and assessments are 
aligned with workforce needs; 
‘‘(J) a description of the proposal for de-
termining a student’s Federal student aid eligi-
bility under this title for participating in the 
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demonstration project, the award and distribu-
tion of such aid, and the safeguards to ensure 
that students are making satisfactory progress 
that warrants the disbursement of such aid; 
‘‘(K) an assurance that the demonstration 
project 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; 
‘‘(L) a description of the population of stu-
dents to whom competency-based education 
under the demonstration project will be offered, 
including demographic information and prior 
educational experience, disaggregated by stu-
dents who are Federal Pell Grant recipients, 
students of color, students with disabilities, stu-
dents who are veterans or members of the 
Armed Forces, and first generation college stu-
dents, and how such eligible entity will, when 
appropriate, address the specific needs of each 
such population of students when carrying out 
the demonstration project; 
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‘‘(M) an assurance that students partici-
pating in the demonstration project will not, on 
average, be eligible for more Federal assistance 
under this title than such students would have 
been eligible for under a traditional program; 
‘‘(N) the cost of attendance for each com-
petency-based education program offered under 
the demonstration project, disaggregated by 
each of the applicable costs or allowances de-
scribed in paragraphs (1) through (13) of sec-
tion 472, and the estimated amount of the cost 
of attendance of each such program to be cov-
ered by need-based grant aid and merit-based 
grant aid from Federal, State, institutional, and 
private sources; 
‘‘(O) an assurance that the eligible entity 
will identify and disseminate best practices with 
respect to the demonstration project to other el-
igible entities carrying out a demonstration 
project under this section; 
‘‘(P) a description of other competency- 
based education the eligible entity offers or 
plans to offer outside of the demonstration 
project; 
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petency that is assessed for the award of a rec-
ognized educational credential; 
‘‘(D) a standard for the amount of learn-
ing that is included in a unit of competency; 
‘‘(E) reasonable benchmarks for gradua-
tion rates and the employment and earnings of 
graduates, including placements in a field for 
which the program prepares students, debt-to- 
earnings ratios, loan repayment rates, and stu-
dent satisfaction; and 
‘‘(F) regular evaluation of whether the pro-
gram meets the benchmarks under subpara-
graph (E). 
‘‘(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, including standards for pro-
viding 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 de-
scribed in section 496(a)(6)(B); and 
‘‘(B) for the eligible entity or program to 
appeal any adverse action under this subpara-
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graph before an appeals panel that meets the 
requirements of section 496(a)(6)(C). 
‘‘(d) SELECTION.— 
‘‘(1) IN GENERAL.—Not later than 9 months 
after the date of enactment of the Advancing Com-
petency-Based Education Act of 2017, the Secretary 
shall select 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. 
‘‘(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 sub-
section (b); 
‘‘(ii) commitment and ability to effec-
tively 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; 
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‘‘(iv) history of compliance with the 
requirements of this Act; 
‘‘(v) commitment to work with the Di-
rector of the Institute of Education 
Sciences and the Secretary to evaluate the 
demonstration project and the impact of 
the demonstration project under subsection 
(g)(2); and 
‘‘(vi) commitment and ability to as-
sess student learning through a third 
party; 
‘‘(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 partici-
pation in a demonstration project; and 
‘‘(E) not select an eligible entity that has 
had, for 1 of the preceding 2 fiscal years, a co-
hort default rate (defined in section 435(m)) 
that is 30 percent or greater. 
‘‘(e) WAIVERS AND OTHER FLEXIBILITY.— 
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‘‘(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 provi-
sions of law (including any regulations promul-
gated under such provisions) listed in para-
graph (2) for which the eligible entity has pro-
vided a reason for waiving under subsection 
(b)(4)(F); 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 
for such flexibility under subsection (b)(4)(F). 
‘‘(2) PROVISIONS
ELIGIBLE
FOR
WAIVERS.— 
The Secretary may waive the following under para-
graph (1)(A): 
‘‘(A) Subparagraphs (A) and (B) of section 
102(a)(3). 
‘‘(B) Section 484(l)(1). 
‘‘(3) 
PROVISIONS
ELIGIBLE
FOR
FLEXI-
BILITY.—The Secretary may provide the flexibility 
described in paragraph (1)(B) with respect to the re-
quirements under provisions in title I, part F of this 
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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. 
‘‘(E) Requirements for substantive inter-
action with faculty. 
‘‘(F) Definitions of the terms ‘academic 
year’, ‘full-time student’, ‘term’ (including 
‘standard term’, ‘non-term’, and ‘non-standard 
term’), ‘satisfactory academic progress’, ‘edu-
cational activity’, ‘project of study’, and ‘pay-
ment period’. 
‘‘(G) Methods of disbursing student finan-
cial aid by institutions of higher education se-
lected, as of the date of enactment of the Ad-
vancing Competency-Based Education Act of 
2017, as experimental sites under section 
487A(b)(3) to carry out competency-based edu-
cation programs. 
‘‘(f) NOTIFICATION.—Not later than 9 months after 
the date of enactment of the Advancing Competency- 
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Based Education Act of 2017, the Secretary shall make 
available to the authorizing committees and the public a 
list of eligible entities selected to carry out a demonstra-
tion 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 edu-
cation programs to be offered under the project. 
‘‘(g) INFORMATION AND EVALUATION.— 
‘‘(1) INFORMATION.— 
‘‘(A) STUDENT-LEVEL DATA.—Each eligi-
ble entity that carries out a demonstration 
project under this section shall provide to the 
Director of the Institute of Education Sciences 
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 subpara-
graph (C)(i)(II), and the student-level data for 
students enrolled in a program described in 
subparagraph (C)(i)(III) to enable the Direc-
tor— 
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‘‘(i) to determine the aggregate infor-
mation described in subparagraph (B) with 
respect to each such program; and 
‘‘(ii) to the extent practicable, to com-
pare the programs using a rigorous evalua-
tion, 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 sub-
paragraph (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 
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 stu-
dent. 
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‘‘(iii) The average period of time be-
tween the enrollment of a student in the 
program and the first assessment of stu-
dent 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 
recognized educational credential. 
‘‘(v) The percentage of assessments of 
student knowledge that students passed on 
the first attempt during the period of en-
rollment in the program. 
‘‘(vi) The percentage of assessments 
of student knowledge that students passed 
on the second attempt and the average pe-
riod of time between the first and second 
attempts during the period of enrollment 
in the program. 
‘‘(vii) The average number of com-
petencies a student acquired while enrolled 
in a program and the period of time during 
which the student acquired such com-
petencies. 
‘‘(viii) The number and percentage of 
students completing the program who find 
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employment, disaggregated by number and 
percentage of such students finding em-
ployment in a field related to the program. 
‘‘(ix) The median student earnings 1, 
3, and 4 years after graduating from the 
program, if available. 
‘‘(x) 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 iden-
tify any individual student: 
‘‘(i) For each eligible entity that car-
ries 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 pro-
gram not being carried out under the 
project; and 
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‘‘(III) the students enrolled in a 
program not described in subclause 
(I) or (II). 
‘‘(ii) For each group of students de-
scribed in clause (i), disaggregation by age, 
race, gender, disability status, students 
who are Veterans or servicemembers, first 
generation college students, and status as 
a recipient of a Federal Pell Grant. 
‘‘(D) COUNCIL.—The Director shall pro-
vide to the Competency-Based Education Coun-
cil 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 Edu-
cation Act of 2017. 
‘‘(2) EVALUATION.— 
‘‘(A) IN GENERAL.—The Director, in con-
sultation with the Secretary and using the in-
formation determined under paragraph (1), 
shall annually evaluate each eligible entity car-
rying out a demonstration project under this 
section. Each evaluation shall be disaggregated 
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in accordance with subparagraph (B) and in-
clude— 
‘‘(i) the extent to which the eligible 
entity has met the elements of its applica-
tion under subsection (b)(4); 
‘‘(ii) 
whether 
the 
demonstration 
project led to reduced cost or time to com-
pletion of a recognized educational creden-
tial, and the amount of cost or time re-
duced for such completion; 
‘‘(iii) obstacles related to student fi-
nancial assistance for competency-based 
education; 
‘‘(iv) the extent to which statutory or 
regulatory requirements not waived or for 
which flexibility is not provided under sub-
section (e) presented difficulties or unin-
tended consequences for students or eligi-
ble entities; 
‘‘(v) a description of the waivers or 
flexibility provided under subsection (e) 
that were most beneficial to students or el-
igible entities, and an explanation of such 
benefits; 
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‘‘(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; and 
‘‘(VII) a private loan; 
‘‘(vii) total cost and net cost to the 
student of the program; 
‘‘(viii) the average outstanding bal-
ance of principal and interest on loans 
made under this title that students have 
upon graduation; 
‘‘(ix) the 3-year cohort default rate; 
‘‘(x) the 1- and 3-year repayment rate 
of loans made under this title; 
‘‘(xi) the median student earnings 1, 
3, and 4 years after graduation; 
‘‘(xii) enrollment data, disaggregated 
by— 
‘‘(I) enrollment status, retention 
rates, credit accumulation, and com-
pletion rates for— 
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‘‘(II) first-time, full-time stu-
dents; 
‘‘(III) first-time, part-time stu-
dents; 
‘‘(IV) nonfirst-time, full-time stu-
dents; 
‘‘(V) nonfirst-time, part-time stu-
dents; 
‘‘(VI) eligibility for Federal Pell 
grants; 
‘‘(VII) race and ethnicity; and 
‘‘(VIII) transfer rates; 
‘‘(xiii) a description of the assess-
ments of student knowledge and the cor-
responding competencies; 
‘‘(xiv) a description of the role of fac-
ulty and faculty involvement; and 
‘‘(xv) outcomes of the assessments of 
student knowledge. 
‘‘(B) DISAGGREGATION.—The data col-
lected under clauses (vi) through (xii) shall be 
disaggregated by each group of students de-
scribed in paragraph (1)(C)(i). 
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‘‘(3) ANNUAL REPORT.—The Director, in con-
sultation with the Secretary, shall annually provide 
to the authorizing committees a report on— 
‘‘(A) the evaluations required under para-
graph (2); 
‘‘(B) the number and types of students re-
ceiving assistance under this title for com-
petency-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 pro-
grams, which may be independent of or com-
bined 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 Di-
rector shall consult with the Secretary of Education or the 
Secretary of the Treasury to obtain the employment, earn-
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ings, and loan information that may be necessary for pur-
poses of subsection (c)(2)(F) or subsection (g), respec-
tively. 
‘‘(i) 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 provi-
sions of law and regulations that are waived under 
subsection (e)); 
‘‘(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 programs; and 
‘‘(5) collect and disseminate to eligible entities 
carrying out a demonstration project under this sec-
tion, 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 iden-
tifiable information in connection with this section to 
willfully disclose to any person (except as authorized 
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in this Act or any Federal law) such personally iden-
tifiable information. 
‘‘(2) PENALTY.—Any person who violates para-
graph (1) shall be fined not more than $5,000, im-
prisoned 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 com-
mitted 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 col-
lected under this section shall not be sold to any 
third party by the Director, any postsecondary insti-
tution, or any other entity. 
‘‘(5) LIMITATION ON USE BY OTHER FEDERAL 
AGENCIES.—The Director shall not allow any other 
Federal agency to use data collected under this sec-
tion for any purpose except as explicitly authorized 
by this Act. 
‘‘(6) LAW ENFORCEMENT.—Personally identifi-
able information collected under this section shall 
not be used for any law enforcement activity or any 
other activity that would result in adverse action 
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against any student, including debt collection activ-
ity or enforcement of the immigration laws. 
‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated $5,000,000 to carry out 
this section. 
‘‘(l) DEFINITIONS.—For the purpose of this section: 
‘‘(1) COMPETENCY-BASED
EDUCATION
PRO-
GRAM.—The term ‘competency-based education pro-
gram’ means a program that provides competency- 
based education for which the accrediting agency or 
association of the institution of higher education of-
fering such program has established or will establish 
the standards described in subsection (c) and, in ac-
cordance with such standards— 
‘‘(A) measures academic progress and at-
tainment 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 Sec-
retary the number of credit or clock hours that 
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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, ac-
tivities, support, and resources necessary to en-
able students to attain the knowledge, skills, 
and characteristics that are required to dem-
onstrate mastery of such competencies, includ-
ing— 
‘‘(i) ready access to academic assist-
ance from faculty who meet the standards 
of the agency or association for providing 
instruction in the subject area; and 
‘‘(ii) a system for monitoring a stu-
dent’s engagement and progress in each 
competency, in which faculty are respon-
sible for providing proactive academic as-
sistance, when needed, on the basis of such 
monitoring; and 
‘‘(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 recognized educational cre-
dential. 
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