248
(5) by striking paragraph (18) and inserting the
following:
‘‘(18) The institution will meet the requirements
established pursuant to section 485(g).’’; and
(6) by striking paragraph (21) and inserting the
following:
‘‘(21) The institution will meet the requirements
established by the Secretary, appropriate State agen-
cies, and accrediting agencies, pursuant to part H of
this title.’’.
(b) AUDITS; FINANCIAL
RESPONSIBILITY.—Section
487(c) is amended—
(1) in paragraph (1)(A)(i), by striking ‘‘State
agencies’’ and everything that follows through the
semicolon and inserting ‘‘and appropriate State agen-
cies;’’;
(2) in paragraph (2), by striking ‘‘subpart 3’’
and inserting ‘‘subpart 2’’;
(3) in paragraph (4), by striking ‘‘, after con-
sultation’’ and everything that follows through ‘‘part
H,’’; and
(4) in paragraph (5), by striking ‘‘State review’’
and everything that follows through ‘‘part H’’ and in-
serting ‘‘appropriate State agencies’’.
249
SEC. 469. QUALITY ASSURANCE AND REGULATORY SIM-
PLIFICATION.
Section 487A (20 U.S.C. 1094a) is amended to read
as follows:
‘‘SEC. 487A. QUALITY ASSURANCE AND REGULATORY SIM-
PLIFICATION PROGRAM.
‘‘(a) IN GENERAL.—The Secretary is authorized to se-
lect institutions for voluntary participation in a Regu-
latory Simplification Program that provides participating
institutions with the opportunity to develop and implement
an alternative management program that—
‘‘(1) shall allow alternative methods of comply-
ing with regulations issued with respect to parts A
through E and G of this title;
‘‘(2) shall not modify or waive the application of
any requirement or other provision of this Act; and
‘‘(3) may include a Quality Assurance Program
through which individual schools develop and imple-
ment their own comprehensive systems to verify stu-
dent financial aid application data, thereby enhanc-
ing program integrity within the student aid delivery
system.
‘‘(b) SELECTION CRITERIA.—The criteria for selecting
institutions for participation in the Regulatory Simplifica-
tion Program shall be based on criteria that include dem-
onstrated institutional performance, as determined by the
250
Secretary, and shall take into consideration regulatory sim-
plification goals, as determined by the Secretary. The selec-
tion criteria shall ensure the participation of representa-
tives of institutions of higher education according to size,
mission, and geographical distribution.
‘‘(c) REMOVAL FROM THE PROGRAM.—The Secretary
is authorized to determine—
‘‘(1) when an institution that is unable to ad-
minister the Regulatory Simplification Program
must be removed from such program, and
‘‘(2) when institutions desiring to cease partici-
pation in such Program will be required to complete
the current award year under the requirements of the
Program.
‘‘(d) EXPERIMENTAL SITES.—The Secretary is author-
ized to designate institutions selected for participation in
the Regulatory Simplification Program as Experimental
Sites.
‘‘(e) DEFINITIONS.—For purposes of this section, the
term ‘current award year’ means the award year during
which the participating institution indicates its intention
to cease participation.’’.
SEC. 470. DISTANCE EDUCATION DEMONSTRATION PRO-
GRAMS.
Part G of title IV is amended—
251
(1) by redesignating section 487B (20 U.S.C.
1094b) as section 487C; and
(2) by inserting after section 487A (as amended
by section 469) the following new section:
‘‘SEC. 487B. DISTANCE EDUCATION DEMONSTRATION PRO-
GRAMS.
‘‘(a) PURPOSE.—It is the purpose of this section—
‘‘(1) to allow demonstration programs that are
strictly monitored by the Department of Education to
test the quality and viability of expanded distance
education programs currently restricted under this
Act;
‘‘(2) to provide for increased student access to
higher education through distance education pro-
grams;
‘‘(3) to help determine the most effective means
of delivering quality education via distance education
course offerings; and
‘‘(4) to help determine the appropriate level of
Federal assistance for students enrolled in distance
education programs.
‘‘(b) DEMONSTRATION PROGRAMS AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary is authorized
to select institutions or a consortia of institutions for
voluntary participation in a Distance Education
252
Demonstration Program that provides participating
institutions with the ability to offer distance edu-
cation programs without regard to the current restric-
tions in part F or G of this title or part A of title
I.
‘‘(2) EXEMPTIONS.—The Secretary is authorized
to exempt any institution or consortia participating
in a Distance Education Demonstration Program
from any of the requirements of parts F or G of this
title, or part A of title I, or the regulations prescribed
under such parts.
‘‘(c) APPLICATION.—Each institution or consortia of
institutions desiring to participate in a demonstration pro-
gram under this section shall submit an application to the
Secretary at such time, in such manner, and accompanied
by such information as the Secretary may require.
‘‘(d) SELECTION.—To the extent feasible, the Secretary
shall select a representative sample institutions for partici-
pation in the demonstration program authorized under this
section. In selecting institutions for participation, the Sec-
retary shall take into consideration the institution’s finan-
cial and administrative capability and the type of program
or programs being offered via distance education course of-
ferings. The Secretary shall, in the exercise of his discretion,
determine the number of demonstration programs to be al-
253
lowed based on the number and quality of applications re-
ceived and the Department’s capacity to oversee and mon-
itor each demonstration program.
‘‘(e) EVALUATION AND REPORT.—
‘‘(1) EVALUATION.—The Secretary shall, on an
annual basis, evaluate the demonstration programs
authorized under this section. Such evaluations shall
specifically review—
‘‘(A) the quality of the programs being of-
fered;
‘‘(B) issues related to student financial as-
sistance for distance education; and
‘‘(C) effective technologies for delivering dis-
tance education course offerings.
‘‘(2) POLICY ANALYSIS.—In addition, the Sec-
retary shall review current policies and identify those
policies which present impediments to the develop-
ment and use of distance learning and other non-
traditional methods of expanding access to education.
‘‘(3) REPORT.—The Secretary shall report to the
appropriate committees of Congress with respect to—
‘‘(A) the evaluations of the demonstration
programs authorized under this section; and
‘‘(B) any proposed legislative changes de-
signed to enhance the use of distance education.’’.