I 
116TH CONGRESS 
1ST SESSION H. R. 3512 
To protect students of institutions of higher education and the taxpayer 
investment in institutions of higher education by improving oversight 
and accountability of institutions of higher education, particularly for- 
profit colleges, improving protections for students and borrowers, and 
ensuring the integrity of postsecondary education programs, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 26, 2019 
Mrs. LEE of Nevada (for herself, Ms. DELAURO, Mr. HORSFORD, Mrs. 
TRAHAN, Mr. PAPPAS, Mr. CISNEROS, Ms. SCANLON, Mr. COHEN, and 
Ms. PORTER) introduced the following bill; which was referred to the 
Committee on Education and Labor, and in addition to the Committee 
on the Judiciary, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To protect students of institutions of higher education and 
the taxpayer investment in institutions of higher edu-
cation by improving oversight and accountability of insti-
tutions of higher education, particularly for-profit col-
leges, improving protections for students and borrowers, 
and ensuring the integrity of postsecondary education 
programs, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Preventing Risky Operations from Threatening the Edu-
cation and Career Trajectories of Students Act of 2019’’ 
or the ‘‘PROTECT Students Act of 2019’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. References. 
Sec. 3. Effective date. 
Sec. 4. Definitions. 
TITLE I—FOR-PROFIT INSTITUTIONS 
Sec. 101. Closing the GI Bill loophole and restoring the 85/15 rule for for-prof-
it institutions. 
Sec. 102. Process for for-profit institutions to convert to nonprofit or public 
status. 
Sec. 103. For-Profit Education Oversight Coordination Committee. 
TITLE II—STUDENT AND BORROWER PROTECTIONS 
Sec. 201. Gainful employment programs. 
Sec. 202. Prohibition on institutions limiting student legal action. 
Sec. 203. Enforcement unit established in the Office of Federal Student Aid. 
Sec. 204. Establishment and maintenance of complaint resolution and tracking 
system. 
Sec. 205. Borrower defense to repayment. 
TITLE III—ENSURING INTEGRITY AT INSTITUTIONS OF HIGHER 
EDUCATION 
Sec. 301. Restrictions on sources of funds for recruiting and marketing activi-
ties. 
Sec. 302. Strengthening the incentive compensation ban. 
Sec. 303. Definition of nonprofit institution of higher education. 
Sec. 304. Definition of public institution of higher education. 
Sec. 305. Enhanced civil penalties, State enforcement, and private right of ac-
tion. 
Sec. 306. Substantial misrepresentation prohibited. 
SEC. 2. REFERENCES. 
Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
sion, the reference shall be considered to be made to a 
section or other provision of the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.). 
SEC. 3. EFFECTIVE DATE. 
Except as otherwise specified, this Act, and the 
amendments made by this Act, shall take effect beginning 
on July 1, 2020. 
SEC. 4. DEFINITIONS. 
(a) IN GENERAL.—Section 103 (20 U.S.C. 1003) is 
amended— 
(1) by redesignating paragraphs (15) through 
(22), (23), and (24) as paragraphs (17) through 
(24), (26), and (27); 
(2) by inserting after paragraph (14) the fol-
lowing: 
‘‘(16) REVENUE
SHARING
ARRANGEMENTS.— 
The term ‘revenue sharing arrangement’ means an 
arrangement between an institution of higher edu-
cation and a third party contractor under which— 
‘‘(A) the third party contractor provides, 
exclusively or nonexclusively, educational prod-
ucts or services to prospective students or stu-
dents attending the institution of higher edu-
cation; and 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
‘‘(B) the third party contractor or institu-
tion of higher education pays a fee or provides 
other material benefits, including revenue- or 
profit-sharing, to the institution of higher edu-
cation or third party contractor in connection 
with the educational products or services pro-
vided to prospective students or students at-
tending the institution of higher education.’’; 
and 
(3) by inserting after paragraph (24), as redes-
ignated by paragraph (1), the following: 
‘‘(25) THIRD PARTY CONTRACTOR.—The term 
‘third party contractor’ means any State, person, or 
entity that enters into a contract or agreement, in-
cluding a revenue sharing arrangement, with an eli-
gible institution of higher education to act on the in-
stitution’s behalf, including any entity that— 
‘‘(A) sells the names of prospective stu-
dents (also known as a ‘lead generator’); or 
‘‘(B) offers services including recruiting, fi-
nancial aid packaging, curriculum development, 
facilities management, hiring and oversight of 
faculty, and the provision of student services 
representatives, job placement counselors, or 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
other employees (also known as an ‘online pro-
gram manager’).’’. 
(b) RENAMING PROPRIETARY INSTITUTIONS FOR- 
PROFIT INSTITUTIONS.— 
(1) IN
GENERAL.—Section 102 (20 U.S.C. 
1002) is amended— 
(A) in subsection (a)(1)(A), by striking 
‘‘proprietary institution’’ and inserting ‘‘for- 
profit institution’’; and 
(B) in subsection (b)— 
(i) in the subsection heading, by strik-
ing ‘‘PROPRIETARY’’ and inserting ‘‘FOR- 
PROFIT’’; 
(ii) in the matter preceding subpara-
graph (A) of paragraph (1), by striking 
‘‘proprietary’’ and inserting ‘‘for-profit’’; 
and 
(iii) in paragraph (2), by striking 
‘‘proprietary’’ each place the term appears 
and inserting ‘‘for-profit’’. 
(2) CONFORMING AMENDMENTS.— 
(A) DEPARTMENT OF EDUCATION ORGANI-
ZATION
ACT.—The Department of Education 
Organization Act (20 U.S.C. 3401 et seq.) is 
amended— 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
(i) in section 219 (20 U.S.C. 3426)— 
(I) in the section heading, by 
striking ‘‘PROPRIETARY’’ and insert-
ing ‘‘FOR-PROFIT’’; 
(II) by striking ‘‘Proprietary’’ 
each place the term appears and in-
serting ‘‘For-Profit’’; and 
(III) by striking ‘‘proprietary’’ 
each place the term appears and in-
serting ‘‘for-profit’’; and 
(ii) in section 1, by striking the item 
relating to section 219 in the table of con-
tents and inserting the following: 
‘‘219. Liaison for For-Profit Institutions of Higher Education.’’. 
(B) HIGHER EDUCATION ACT OF 1965.— 
The Act (20 U.S.C. 1001 et seq.) is amended— 
(i) in each of sections 435 and 
443(b)(8), by striking ‘‘proprietary’’ each 
place the term appears and inserting ‘‘for- 
profit’’; and 
(ii) in section 807(d)(1)(A)(iii), by 
striking ‘‘proprietary’’ and inserting ‘‘for- 
profit’’. 
(C) SCIENTIFIC
AND
ADVANCED-TECH-
NOLOGY
ACT
OF
1992.—Section 3(j)(2)(B) of 
the Scientific and Advanced-Technology Act of 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
1992 (20 U.S.C. 1862i(j)(2)(B)) is amended by 
striking ‘‘proprietary institution’’ and inserting 
‘‘for-profit institution’’. 
(3) REFERENCES.— 
(A) PROPRIETARY INSTITUTION.—Any ref-
erence to a proprietary institution, as defined in 
section 102(b) of the Higher Education Act of 
1965 (20 U.S.C. 1002) on the day before the 
date of enactment of this Act, in any law, rule, 
regulation, certificate, directive, instruction, or 
other official paper in force on the date of en-
actment of this Act shall be considered to refer 
and apply to a for-profit institution, as defined 
in section 102(b) of the Higher Education Act 
of 1965 (20 U.S.C. 1002(b)), as amended by 
this Act. 
(B) LIAISON.—Any reference to the Liai-
son for Proprietary Institutions of Higher Edu-
cation in any law, rule, regulation, certificate, 
directive, instruction, or other official paper in 
force on the date of enactment of this Act shall 
be considered to refer and apply to the Liaison 
for For-Profit Institutions of Higher Education 
established under section 219 of the Depart-
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
ment of Education Organization Act (20 U.S.C. 
3401), as amended by this Act. 
TITLE I—FOR-PROFIT 
INSTITUTIONS 
SEC. 101. CLOSING THE GI BILL LOOPHOLE AND RESTOR-
ING THE 85/15 RULE FOR FOR-PROFIT INSTI-
TUTIONS. 
(a) IN GENERAL.—Section 102(b) (20 U.S.C. 1002), 
as amended by section 4(b), is further amended— 
(1) in paragraph (1)— 
(A) in subparagraph (D), by striking 
‘‘and’’ after the semicolon; 
(B) in subparagraph (E), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(F) meets the requirements of paragraph 
(2).’’; 
(2) by redesignating paragraph (2) as para-
graph (3); and 
(3) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) REVENUE SOURCES.— 
‘‘(A) IN GENERAL.—In order to qualify as 
a for-profit institution of higher education 
under this subsection, an institution shall derive 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
not less than 15 percent of the institution’s rev-
enues from sources other than Federal edu-
cation assistance funds, as calculated in accord-
ance with subparagraphs (B) and (C). 
‘‘(B) FEDERAL
EDUCATION
ASSISTANCE 
FUNDS.—In this paragraph, the term ‘Federal 
education assistance funds’ means any Federal 
financial assistance provided, under this Act or 
any other Federal law, through a grant, con-
tract, subsidy, loan, guarantee, insurance, or 
other means to an institution of higher edu-
cation, including Federal financial assistance 
that is disbursed or delivered to an institution 
or on behalf of a student or to a student to be 
used to attend the institution, except that such 
term shall not include any monthly housing sti-
pend provided under the Post-9/11 Veterans 
Educational Assistance Program under chapter 
33 of title 38, United States Code. 
‘‘(C) IMPLEMENTATION OF NON-FEDERAL 
REVENUE REQUIREMENT.—In making calcula-
tions under subparagraph (A), an institution of 
higher education shall— 
‘‘(i) use the cash basis of accounting; 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
‘‘(ii) consider as revenue only those 
funds generated by the institution from— 
‘‘(I) tuition, fees, and other insti-
tutional charges for students enrolled 
in programs eligible for assistance 
under title IV; 
‘‘(II) activities conducted by the 
institution that are necessary for the 
education and training of the institu-
tion’s students, if such activities are— 
‘‘(aa) conducted on campus 
or at a facility under the control 
of the institution; 
‘‘(bb) performed under the 
supervision of a member of the 
institution’s faculty; and 
‘‘(cc) required to be per-
formed by all students in a spe-
cific educational program at the 
institution; and 
‘‘(III) a contractual arrangement 
with a Federal agency for the purpose 
of providing job training to low-in-
come individuals who are in need of 
such training; 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
‘‘(iii) presume that any Federal edu-
cation assistance funds that are disbursed 
or delivered to an institution on behalf of 
a student or directly to a student will be 
used to pay the student’s tuition, fees, or 
other institutional charges, regardless of 
whether the institution credits such funds 
to the student’s account or pays such 
funds directly to the student, except to the 
extent that the student’s tuition, fees, or 
other institutional charges are satisfied 
by— 
‘‘(I) grant funds provided by an 
outside source that— 
‘‘(aa) has no affiliation with 
the institution; and 
‘‘(bb) shares no employees, 
executives, or board members 
with the institution; 
‘‘(II) funds provided under a con-
tractual arrangement with a Federal, 
State, or local government agency for 
the purpose of providing job training 
to low-income individuals who are in 
need of that training; or 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
‘‘(III) institutional scholarships 
described in clause (v); 
‘‘(iv) include no loans made by an in-
stitution of higher education as revenue to 
the school, except for payments made by 
students on such loans; 
‘‘(v) include a scholarship provided by 
the institution— 
‘‘(I) only if the scholarship is in 
the form of monetary aid based upon 
the academic achievements or finan-
cial need of students, disbursed to 
qualified student recipients during 
each fiscal year from an established 
restricted account; and 
‘‘(II) only to the extent that 
funds in that account represent des-
ignated funds, or income earned on 
such funds, from an outside source 
that— 
‘‘(aa) has no affiliation with 
the institution; and 
‘‘(bb) shares no employees, 
executives, or board members 
with the institution; and 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
‘‘(vi) exclude from revenues— 
‘‘(I) the amount of funds the in-
stitution received under part C of title 
IV, unless the institution used those 
funds to pay a student’s institutional 
charges; 
‘‘(II) the amount of funds the in-
stitution received under subpart 4 of 
part A of title IV; 
‘‘(III) the amount of funds pro-
vided by the institution as matching 
funds for any Federal program; 
‘‘(IV) the amount of Federal edu-
cation assistance funds provided to 
the institution to pay institutional 
charges for a student that were re-
funded or returned; and 
‘‘(V) the amount charged for 
books, supplies, and equipment, unless 
the institution includes that amount 
as tuition, fees, or other institutional 
charges. 
‘‘(D) REPORT
TO
CONGRESS.—Not later 
than July 1, 2020, and by July 1 of each suc-
ceeding year, the Secretary shall submit to the 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
authorizing committees a report that contains, 
for each for-profit institution of higher edu-
cation that receives assistance under title IV 
and as provided in the audited financial state-
ments submitted to the Secretary by each insti-
tution pursuant to the requirements of section 
487(c)— 
‘‘(i) the amount and percentage of 
such institution’s revenues received from 
Federal education assistance funds; and 
‘‘(ii) the amount and percentage of 
such institution’s revenues received from 
other sources.’’. 
(b) REPEAL OF EXISTING REQUIREMENTS.—Section 
487 (20 U.S.C. 1094) is amended— 
(1) in subsection (a)— 
(A) by striking paragraph (24); 
(B) by redesignating paragraphs (25) 
through (29) as paragraphs (24) through (28), 
respectively; 
(C) in paragraph (24)(A)(ii) (as redesig-
nated by subparagraph (B)), by striking ‘‘sub-
section (e)’’ and inserting ‘‘subsection (d)’’; and 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
(D) in paragraph (26) (as redesignated by 
subparagraph (B)), by striking ‘‘subsection (h)’’ 
and inserting ‘‘subsection (g)’’; 
(2) by striking subsection (d); 
(3) by redesignating subsections (e) through (j) 
as subsections (d) through (i), respectively; 
(4) in subsection (d) (as redesignated by para-
graph (3)), by striking ‘‘(a)(25)’’ and inserting 
‘‘(a)(24)’’; 
(5) in subsection (f)(1) (as redesignated by 
paragraph (3)), by striking ‘‘subsection (e)(2)’’ and 
inserting ‘‘subsection (d)(2)’’; and 
(6) in subsection (g)(1) (as redesignated by 
paragraph (3)), by striking ‘‘subsection (a)(27)’’ in 
the matter preceding subparagraph (A) and insert-
ing ‘‘subsection (a)(26)’’. 
(c) CONFORMING
AMENDMENTS.—The Act (20 
U.S.C. 1001 et seq.) is amended— 
(1) in section 152 (20 U.S.C. 1019a)— 
(A) in subsection (a)(1)(A), by striking 
‘‘subsections (a)(27) and (h) of section 487’’ 
and inserting ‘‘subsections (a)(26) and (g) of 
section 487’’; and 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
(B) in subsection (b)(1)(B)(i)(I), by strik-
ing ‘‘section 487(e)’’ and inserting ‘‘section 
487(d)’’; 
(2) 
in 
section 
153(c)(3) 
(20 
U.S.C. 
1019b(c)(3)), by striking ‘‘section 487(a)(25)’’ each 
place the term appears and inserting ‘‘section 
487(a)(24)’’; 
(3) 
in 
section 
496(c)(3)(A) 
(20 
U.S.C. 
1099b(c)(3)(A)), by striking ‘‘section 487(f)’’ and 
inserting ‘‘section 487(e)’’; and 
(4) 
in 
section 
498(k)(1) 
(20 
U.S.C. 
1099c(k)(1)), by striking ‘‘section 487(f)’’ and in-
serting ‘‘section 487(e)’’. 
SEC. 102. PROCESS FOR FOR-PROFIT INSTITUTIONS TO 
CONVERT TO NONPROFIT OR PUBLIC STA-
TUS. 
(a) CONVERSION PROCESS.—Part B of title I (20 
U.S.C. 1011 et seq.) is further amended by adding at the 
end the following: 
‘‘SEC. 124. PROCESS FOR FOR-PROFIT INSTITUTIONS TO 
CONVERT TO NONPROFIT OR PUBLIC STA-
TUS. 
‘‘(a) DETERMINATION.— 
‘‘(1) IN GENERAL.—In any case where the Sec-
retary determines that a for-profit institution of 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
higher education, as defined in section 102(b), meets 
the applicable requirements of subsection (b), the 
Secretary shall approve the conversion of the institu-
tion of higher education to a nonprofit or public in-
stitution of higher education for not more than a 5- 
year period. 
‘‘(2) PERIODIC
REVIEW.—For each for-profit 
institution that is converted under this section to a 
nonprofit or public institution of higher education, 
the Secretary shall— 
‘‘(A) review the determination not less 
than once every 5 years; and 
‘‘(B) at the conclusion of a review de-
scribed in subparagraph (A)— 
‘‘(i) in a case where the Secretary de-
termines the institution continues to meet 
the requirements of this section, approve 
the institution’s status as a nonprofit insti-
tution of higher education or public insti-
tution of higher education for an additional 
period not to exceed 5 years; and 
‘‘(ii) in a case where the Secretary de-
termines the institution no longer meets 
the requirements, classify the institution as 
a for-profit institution. 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
‘‘(b) REQUIREMENTS.—To be eligible to convert to 
a nonprofit or public institution of higher education, a for- 
profit institution of higher education shall submit an ap-
plication to the Secretary that demonstrates that— 
‘‘(1) the institution, as of the date of the appli-
cation, meets the definition of a nonprofit or public 
institution of higher education; 
‘‘(2) the institution has not acquired any other 
institution of higher education (as defined in section 
102), or a significant portion of the assets of such 
other institution, for more than the value of such 
other institution or such assets, respectively, as de-
termined in accordance with subsection (d); and 
‘‘(3) in the case of an institution that has been 
acquired by another party, such institution is not 
controlled by such party. 
‘‘(c) TRANSITION PERIOD.—A for-profit institution 
of higher education approved for conversion under sub-
section (a) shall be subject to any rules and regulations 
that apply to for-profit institutions of higher education, 
as defined in section 102(b), for a minimum 5-year period 
after conversion, which may be extended by the Secretary 
if the Secretary identifies a reason for concern relating 
to the institution’s converted status. 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
‘‘(d) VALUE.—The term ‘value’, with respect to an 
acquisition under subsection (b)(2)— 
‘‘(1) includes the value of any ongoing relation-
ship (including any contract, agreement, lease, or 
other arrangement between the acquiring institution 
and the acquired institution) between affiliates, as 
defined in section 180.905 of title 2, Code of Fed-
eral Regulations, as in effect on the date of enact-
ment of the PROTECT Students Act of 2019; and 
‘‘(2) may be demonstrated through— 
‘‘(A) third-party valuation; 
‘‘(B) independent financing of the acquisi-
tion based upon the assets acquired; or 
‘‘(C) full and open competition in the ac-
quisition, as such term is defined in section 
2.101(b) of title 48, Code of Federal Regula-
tions, as in effect on the date of the enactment 
of the PROTECT Students Act of 2019, of 
services or assets. 
‘‘(e) PUBLICATION.— 
‘‘(1) APPLICATION.—Before the Secretary may 
approve the conversion of an institution of higher 
education under subsection (a), the Secretary shall 
publish the application of the institution in the Fed-
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
‘‘(I) include a test for non-re-
sponse bias; 
‘‘(II) allow for an exception to 
issues of bias due to sample sizes 
below 10; and 
‘‘(III) subject the institutional 
survey instrument and survey re-
sponses to an audit by the Inspector 
General of the Department; and 
‘‘(ii) the Inspector General of the De-
partment shall— 
‘‘(I) audit the institutional survey 
instrument, and the survey responses, 
submitted by an institution under 
clause (i); and 
‘‘(II) furnish data showing the 
Inspector General verified the accu-
racy of student survey responses; and 
‘‘(B) require the Secretary to accept the 
alternate earnings estimate from an institu-
tional survey if the test for non-response bias 
includes a response rate that guarantees that 
the lower bound of the 95 percent confidence 
interval of the alternate earnings estimate is at 
or above the earnings level retrieved from the 
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00055
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS
111 
‘‘(dd) payments based on 
meeting a certain quota or nu-
merical target, or avoiding pen-
alties for a benchmark set in 
Federal law, relating to covered 
activities; and 
‘‘(ee) bonuses or other pay-
ments based on meeting a certain 
quota or numerical target, or 
avoiding penalties for a bench-
mark set in Federal law, relating 
to covered activities; 
‘‘(III) a decrease or removal of a 
payment or benefit described in sub-
clause (I) or (II) (and not excluded 
under clause (ii)), if that decrease or 
removal is based directly or indirectly 
on meeting a certain quota or numer-
ical target, or avoiding penalties for a 
benchmark set in Federal law, relat-
ing to covered activities; and 
‘‘(IV) a change in employment 
status, such as a promotion, demo-
tion, or termination if based on meet-
ing a certain quota or numerical tar-
VerDate Sep 11 2014 
23:18 Jul 10, 2019
Jkt 089200
PO 00000
Frm 00111
Fmt 6652
Sfmt 6201
E:\BILLS\H3512.IH
H3512
jbell on DSK3GLQ082PROD with BILLS