Title: Protecting Financial Aid for Students and Taxpayers Act
Policy area: Education

Summary:
Protecting Financial Aid for Students and Taxpayers Act
This bill amends the Higher Education Opportunity Act to prohibit an institution of higher education or postsecondary educational institution from using revenues derived from federal educational assistance funds for recruiting or marketing activities.
Federal educational assistance funds include federal student aid under title IV of the Higher Education Act of 1965, education benefits for military personnel and veterans, and grants for workforce development programs.


[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3762 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 3762

To amend the Higher Education Opportunity Act to restrict institutions 
     of higher education from using revenues derived from Federal 
educational assistance funds for advertising, marketing, or recruiting 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 17, 2018

Mr. Brown (for himself, Mr. Murphy, Mr. Blumenthal, Mr. Durbin, and Mr. 
    Carper) introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
To amend the Higher Education Opportunity Act to restrict institutions 
     of higher education from using revenues derived from Federal 
educational assistance funds for advertising, marketing, or recruiting 
                               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 ``Protecting Financial Aid for 
Students and Taxpayers Act''.

SEC. 2. RESTRICTIONS ON SOURCES OF FUNDS FOR RECRUITING AND MARKETING 
              ACTIVITIES.

    Section 119 of the Higher Education Opportunity Act (20 U.S.C. 
1011m) is amended--
            (1) in the section heading, by inserting ``and restrictions 
        on sources of funds for recruiting and marketing activities'' 
        after ``funds'';
            (2) in subsection (d), by striking ``subsections (a) 
        through (c)'' and inserting ``subsections (a), (b), (c), and 
        (e)'';
            (3) by redesignating subsection (e) as subsection (f); and
            (4) by inserting after subsection (d) the following:
    ``(e) Restrictions on Sources of Funds for Recruiting and Marketing 
Activities.--
            ``(1) In general.--An institution of higher education, or 
        other postsecondary educational institution, may not use 
        revenues derived from Federal educational assistance funds for 
        recruiting or marketing activities described in paragraph (2).
            ``(2) Covered activities.--Except as provided in paragraph 
        (3), the recruiting and marketing activities subject to 
        paragraph (1) shall include the following:
                    ``(A) Advertising and promotion activities, 
                including paid announcements in newspapers, magazines, 
                radio, television, billboards, electronic media, naming 
                rights, or any other public medium of communication, 
                including paying for displays or promotions at job 
                fairs, military installations, or college recruiting 
                events.
                    ``(B) Efforts to identify and attract prospective 
                students, either directly or through a contractor or 
                other third party, including contact concerning a 
                prospective student's potential enrollment or 
                application for grant, loan, or work assistance under 
                title IV of the Higher Education Act of 1965 (20 U.S.C. 
                1070 et seq.) or participation in preadmission or 
                advising activities, including--
                            ``(i) paying employees responsible for 
                        overseeing enrollment and for contacting 
                        potential students in-person, by phone, by 
                        email, or by other Internet communications 
                        regarding enrollment; and
                            ``(ii) soliciting an individual to provide 
                        contact information to an institution of higher 
                        education, including websites established for 
                        such purpose and funds paid to third parties 
                        for such purpose.
                    ``(C) Such other activities as the Secretary of 
                Education may prescribe, including paying for promotion 
                or sponsorship of education or military-related 
                associations.
            ``(3) Exceptions.--Any activity that is required as a 
        condition of receipt of funds by an institution under title IV 
        of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), 
        is specifically authorized under such title, or is otherwise 
        specified by the Secretary of Education, shall not be 
        considered to be a covered activity under paragraph (2).
            ``(4) Federal educational assistance funds.--In this 
        subsection, the term `Federal educational assistance funds' 
        means funds provided directly to an institution or to a student 
        attending such institution under any of the following 
        provisions of law:
                    ``(A) Title IV of the Higher Education Act of 1965 
                (20 U.S.C. 1070 et seq.).
                    ``(B) Chapter 30, 31, 32, 33, 34, or 35 of title 
                38, United States Code.
                    ``(C) Chapter 101, 105, 106A, 1606, 1607, or 1608 
                of title 10, United States Code.
                    ``(D) Section 1784a, 2005, or 2007 of title 10, 
                United States Code.
                    ``(E) Title I of the Workforce Innovation and 
                Opportunity Act (29 U.S.C. 3111 et seq.).
                    ``(F) The Adult Education and Family Literacy Act 
                (29 U.S.C. 3271 et seq.).
            ``(5) Rule of construction.--Nothing in this section shall 
        be construed as a limitation on the use by an institution of 
        revenues derived from sources other than Federal educational 
        assistance funds.
            ``(6) Reports.--Each institution of higher education, or 
        other postsecondary educational institution, that derives 65 
        percent or more of revenues from Federal educational assistance 
        funds shall report annually to the Secretary and to Congress 
        and shall include in such report--
                    ``(A) the institution's expenditures on 
                advertising, marketing, and recruiting;
                    ``(B) a verification from an independent auditor 
                that the institution is in compliance with the 
                requirements of this subsection; and
                    ``(C) a certification from the institution that the 
                institution is in compliance with the requirements of 
                this subsection.''.
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