Innovation Zone Act
Bill: S.733 | Sponsor: Sen. Young, Todd (R-IN)
Policy area: Education

Summary:
Innovation Zone Act
This bill replaces the Experimental Sites Initiative of the Department of Education (ED) with an innovation zone initiative consisting of voluntary experiments by participating institutions of higher education (IHEs).
Upon selection of an experiment but prior to choosing the participating IHEs, ED must identify the methodology of data collection and the evaluation methods for determining the impact of the experiment, including any differential impacts for historically underrepresented students (e.g., students of color and low-income students).
Under the experiment, ED and the IHEs may test the effectiveness of statutory and regulatory flexibility that aims for (1) an increase in student success (e.g., reductions in student loan debt and increases in student retention and employment outcomes); and (2) a reduction of regulatory burdens on IHEs or ED, without harm to students.
The bill also requires ED to conduct a review of existing experiments.

To amend the Higher Education Act of 1965 to create an innovation zone 
                  initiative, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Innovation Zone Act''.

SEC. 2. INNOVATION ZONE INITIATIVE AUTHORITY.

    Section 487A of the Higher Education Act of 1965 (20 U.S.C. 1094a) 
is amended to read as follows:

``SEC. 487A. INNOVATION ZONE INITIATIVE.

    ``(a) Innovation Zone Initiative.--
            ``(1) In general.--The Secretary is authorized to establish 
        an innovation zone initiative consisting of voluntary 
        experiments under which the Secretary and institutions of 
        higher education are permitted to test the effectiveness of 
        statutory and regulatory flexibility that aims to increase 
        student success, which may be defined as 1 or more of the 
        following:
                    ``(A) Reduction in student loan debt.
                    ``(B) Increase in student retention and program 
                completion at institutions of higher education, 
                especially for historically underrepresented students.
                    ``(C) Decrease in student time to program 
                completion.
                    ``(D) Closing of gaps in enrollment and completion 
                between historically underrepresented students and 
                students who are not historically underrepresented 
                students.
                    ``(E) Increase in student employment outcomes upon 
                graduation.
                    ``(F) Improved financial aid disbursement and 
                service to students.
                    ``(G) Increase in student safety, wellness, or food 
                and housing security.
                    ``(H) Other innovative practices that benefit 
                students.
            ``(2) Reduction of regulatory burden.--Where appropriate, 
        the Secretary may establish experiments, that, in addition to 
        meeting the requirements of paragraph (1), lead to a reduction 
        of regulatory burden on institutions of higher education or the 
        Department, without harm to students.
            ``(3) Waivers.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Secretary is authorized to waive, 
                for any institution of higher education participating 
                in an innovation zone experiment under paragraph (1), 
                one or more requirements of title I or IV, including 
                regulations promulgated under title I or IV.
                    ``(B) Limitations.--The Secretary may not grant a 
                waiver with regard to the following:
                            ``(i) The definition of an institution of 
                        higher education under section 101 or 102.
                            ``(ii) Antidiscrimination provisions under 
                        section 111.
                            ``(iii) Student speech rights provisions 
                        under section 112.
                            ``(iv) Campus safety provisions under 
                        section 119 or 120.
                            ``(v) Preferred lender arrangements under 
                        section 152.
                            ``(vi) Grant or student loan maximums under 
                        title IV.
                            ``(vii) The needs analysis under part F of 
                        title IV.
    ``(b) Solicitation of Experiment Suggestions.--
            ``(1) Solicitation of suggestions.--Not less frequently 
        than every 2 years, the Secretary shall provide an opportunity, 
        through the Department of Education's website, for the public, 
        institutions of higher education, and other stakeholders to 
        submit suggestions for potential experiments under this 
        section.
            ``(2) Contents of suggestions.--Any person that wishes to 
        submit a suggestion under paragraph (1) shall include--
                    ``(A) the goals or objectives of the proposed 
                experiment, and how statutory or regulatory flexibility 
                could allow the institution of higher education to 
                increase student success, as required under subsection 
                (a)(1);
                    ``(B) a description of how the experiment would be 
                conducted, including participation protections or 
                mechanisms in place to ensure that students 
                participating in the experiment will not be negatively 
                impacted, such as by facing additional barriers to 
                completion or losing credit as a result of the 
                experiment;
                    ``(C) the specific statutory or regulatory 
                requirements for which a waiver would be requested;
                    ``(D) an examination of the current need or 
                interest, as of the date of the submission, for the 
                experiment; and
                    ``(E) a description of how the suggested experiment 
                contributes to building the evidence base and how 
                evaluation could be used to generate that evidence.
    ``(c) Selection of Experiments and Designation of Participating 
Institutions.--
            ``(1) Selection considerations.--After considering any 
        suggestions submitted under subsection (b), the Secretary may 
        select experiments to be carried out under subsection (a). The 
        Secretary shall base any such selection on the following:
                    ``(A) Sufficient interest in the experiment among 
                institutions of higher education, researchers, and 
                practitioners.
                    ``(B) Research suggesting promise of fulfilling 
                outcomes described in subsection (a)(1).
                    ``(C) A clear link between how the desired 
                statutory and regulatory flexibility could allow the 
                institution of higher education to increase student 
                success, as required under subsection (a)(1).
                    ``(D) The ability for the Secretary to identify 
                policy-relevant questions for the experiment and design 
                an experiment that can credibly answer those questions, 
                and contribute to the evidence base of innovative 
                practices.
                    ``(E) Other general interest, as supported by 
                evidence.
            ``(2) Determination of evaluation plans.--After selecting 
        an experiment under this section, but before any participating 
        institutions for such experiment are chosen, the Secretary, in 
        consultation with the Director of the Institute of Education 
        Sciences, shall complete the following:
                    ``(A) Identify policy-relevant questions for the 
                experiment and design an experiment that can credibly 
                answer those questions.
                    ``(B) Identify the methodology of data collection 
                for the experiment, including, to the extent 
                practicable, a methodology that allows for 
                disaggregation of data for historically 
                underrepresented students.
                    ``(C) Identify rigorous evaluation methods for 
                determining the impact of the experiment, including 
                whether the experiment has differential impacts for 
                historically underrepresented students. These methods 
                may include rapid cycle evaluation and behavioral 
                insights and are informed by--
                            ``(i) responses to requests from the 
                        Department for information; and
                            ``(ii) feedback from external researchers 
                        and other stakeholders.
                    ``(D) Establish a timeframe for conducting the 
                experiment that shall not exceed 4 years from the award 
                year in which Federal financial aid is first disbursed 
                to students participating in the experiment, at which 
                time the Secretary may opt to extend the experiment for 
                an additional 2 years.
                    ``(E) Estimate the cost of conducting the 
                experiment, to the extent practicable.
                    ``(F) Estimate the size of the study sample (such 
                as the number of participating students or 
                institutions) needed to determine if the experiment has 
                statistically significant effects.
            ``(3) Dissemination of information.--The Secretary shall 
        notify institutions of higher education, through the website of 
        the Department or other means, of the experiments selected by 
        the Secretary under this section and the steps necessary to 
        participate in an experiment. Such notice shall include the 
        information described in subparagraphs (A) through (F) of 
        paragraph (2) for the experiment.
            ``(4) Commencement of experiment.--The Secretary may carry 
        out an experiment, in accordance with the requirements of this 
        section, only if the Secretary has entered into agreements with 
        not less than 5, and not more than 100, institutions of higher 
        education, under which the institutions agree--
                    ``(A) to participate in the experiment described in 
                the applicable evaluation plan under paragraph (2);
                    ``(B) to comply with the data collection 
                requirements under subsection (d)(1) and any other 
                reporting requirements determined by the Secretary; and
                    ``(C)(i) to the methodology for data collection 
                established by the Secretary under paragraph (2)(B) for 
                the experiment; or
                    ``(ii) upon the request of the institution and if 
                the Secretary determines appropriate, to an alternative 
                methodology for data collection.
            ``(5) Technical assistance.--The Secretary may provide 
        technical assistance to institutions of higher education that 
        are not participating in an experiment but have an interest in 
        potentially participating in an experiment.
            ``(6) Fast-track process to comply with information 
        collection requirements.--Notwithstanding section 3507 of title 
        44, United States Code, the Secretary shall be deemed to have 
        the authority to approve, for purposes of such section 3507, 
        any proposed collection of information related to an experiment 
        conducted under this section, in the same manner and to the 
        same extent as such authority is provided to a senior official 
        by the Director of the Office of Management and Budget under 
        section 3507(i) of such title.
    ``(d) Outcomes Reporting.--
            ``(1) Data submission.--Each institution of higher 
        education participating in an experiment under this section 
        shall timely submit to the Secretary, on a periodic basis to be 
        determined by the Secretary, data on outcomes relating to the 
        experiment.
            ``(2) Report.--
                    ``(A) In general.--The Secretary shall--
                            ``(i) review the experience of and 
                        rigorously evaluate, according to a methodology 
                        approved by the Institute of Education 
                        Sciences, the activities of all institutions 
                        participating in each experiment carried out 
                        under this section; and
                            ``(ii) beginning 2 years after the date of 
                        enactment of the Innovation Zone Act, and every 
                        2 years thereafter--
                                    ``(I) prepare and submit a report 
                                regarding the innovation zone 
                                initiative under this section to the 
                                authorizing committees; and
                                    ``(II) post the report on the 
                                public website of the Department.
                    ``(B) Contents of report.--The report required 
                under subparagraph (A)(ii)(I) shall include, for each 
                experiment supported as of the date of the report--
                            ``(i) a summary of the status of the 
                        experiment;
                            ``(ii) a summary and analysis of the 
                        findings, to date, of the experiment, including 
                        the evaluation described in subsection 
                        (c)(2)(C);
                            ``(iii) the methodology of data collection;
                            ``(iv) an analysis of the value of 
                        continuation of the experiment;
                            ``(v) an explanation of any current or 
                        foreseen barriers to conducting the experiment; 
                        and
                            ``(vi) an evaluation of the quality of data 
                        and intended results.
                    ``(C) Completed experiment report.--By not later 
                than 60 days after the completion of the timeframe 
                established under subsection (c)(2)(D) or (e)(2)(B)(ii) 
                for an experiment, the Secretary shall--
                            ``(i) prepare a report that includes--
                                    ``(I) the findings of the 
                                experiment, including, to the extent 
                                practicable, disaggregation of data for 
                                historically underrepresented students; 
                                and
                                    ``(II) in the case of an experiment 
                                for which the Secretary determines 
                                there is sufficient value in continuing 
                                the experiment past the established 
                                timeframe, adequate documentation to 
                                justify such continuation; and
                            ``(ii) publish the report on the public 
                        website of the Department and submit the report 
                        to the authorizing committees.
                    ``(D) Collection of additional data.--The Secretary 
                may collect additional data after the conclusion of an 
                experiment under this section to assess the long-term 
                outcomes of participants.
    ``(e) Transition; Review.--
            ``(1) Continuation of existing experiments.--The Secretary 
        may continue any experiment commenced under this section before 
        the date of enactment of the Innovation Zone Act (referred to 
        in this subsection as an `existing experiment'). Any such 
        existing experiment shall be subject to the requirements of 
        this section, as amended by the Innovation Zone Act, except for 
        the requirements of subsection (c).
            ``(2) Review of existing experiments.--By not later than 90 
        days after the date of enactment of the Innovation Zone Act, 
        the Secretary shall--
                    ``(A) conduct an extensive review and assessment of 
                existing experiments still in effect; and
                    ``(B) prepare and submit to the authorizing 
                committees, and publish on the public website of the 
                Department, a report of the status of the existing 
                experiments, which shall include, for each such 
                experiment--
                            ``(i) the total cost to date and the 
                        projected cost of continuation, to the extent 
                        practicable;
                            ``(ii) an established timeframe for 
                        completion;
                            ``(iii) the current methodology of data 
                        collection;
                            ``(iv) an analysis of findings, as of the 
                        date of the report;
                            ``(v) an analysis of the value in 
                        continuation of the existing experiment; and
                            ``(vi) an analysis of whether the 
                        assessment of the experiment could be 
                        restructured to answer other policy questions.
    ``(f) Definition of Historically Underrepresented Student.--In this 
section, the term `historically underrepresented student'--
            ``(1) means a student, or prospective student, at an 
        institution of higher education who is at risk of educational 
        failure or otherwise in need of special assistance and support; 
        and
            ``(2) may include an adult learner, working student, part-
        time student, student from a low-income background, student of 
        color, Native youth, single parent (including a single pregnant 
        woman), student who is a homeless child or youth (as defined in 
        section 725 of the McKinney-Vento Homeless Assistance Act (42 
        U.S.C. 11434a)), youth who is in, or has aged out of, the 
        foster care system, first generation college student (as 
        defined in section 402A(h)), and student with a disability.''.
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