Title: Advancing Competency-Based Education Act of 2017
Policy area: Education

Summary:
Advancing Competency-Based Education Act of 2017
This amends title IV (Student Assistance) of the Higher Education Act of 1965 to establish competency-based education demonstration projects, which measure academic progress and attainment by the assessment of student learning in lieu of, or in addition to, credit or clock hours.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2859 Introduced in House (IH)]

<DOC>






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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Advancing Competency-Based Education 
Act of 2017''.

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 amended by inserting after section 
486A the following:

``SEC. 486B. COMPETENCY-BASED EDUCATION DEMONSTRATION 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 waivers or other flexibility described in subsection (e) to 
carry out such projects.
    ``(b) Application.--
            ``(1) In general.--Each eligible entity desiring 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, Native American-serving, nontribal institutions, 
        institutions serving students with special needs, and 
        institutions located in rural areas to provide those 
        institutions with information on the opportunity to apply to 
        carry out a demonstration project under this section.
            ``(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.--Notwithstanding the 
                assurance required with respect to maximum enrollment 
                under paragraph (4)(I)--
                            ``(i) an eligible entity whose 
                        demonstration project has been evaluated under 
                        subsection (g)(2) not less than twice may 
                        submit to the Secretary an amendment 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--
                                    ``(I) the proposed maximum 
                                enrollment or annual enrollment growth 
                                for the project;
                                    ``(II) how the eligible entity will 
                                successfully carry out the project with 
                                such maximum enrollment or enrollment 
                                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 demonstration 
                        project based on the project's evaluations 
                        under subsection (g)(2).
            ``(4) Contents.--Each application under paragraph (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 academic 
                delivery, business, and financial models for the 
                demonstration project, including explanations of how 
                each competency-based education program offered under 
                the demonstration project will--
                            ``(i) result in the achievement of 
                        competencies;
                            ``(ii) differ from standard credit hour 
                        approaches, in whole or in part; and
                            ``(iii) result in lower costs or shortened 
                        time to the completion of a recognized 
                        educational credential;
                    ``(C) a description of how each competency-based 
                education program offered under the demonstration 
                project will progress a student toward completion of a 
                recognized educational credential;
                    ``(D) a description of the meaningful role of the 
                appropriate faculty of the eligible entity in the 
                development, design, implementation, delivery, and 
                evaluation of each such competency-based education 
                program;
                    ``(E) a description of how each such competency-
                based education program will provide strong post-
                enrollment earnings and loan repayment outcomes;
                    ``(F) a description of how the eligible entity will 
                articulate the transcript from a competency-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 demonstration project;
                    ``(H) a description of how a third party will 
                assess student learning for each competency-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 determining 
                a student's Federal student aid eligibility under this 
                title for participating in the demonstration project, 
                the award and distribution 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 students 
                to whom competency-based education under the 
                demonstration project will be offered, including 
                demographic information and prior educational 
                experience, disaggregated by students who are Federal 
                Pell Grant recipients, students of color, students with 
                disabilities, students who are veterans or members of 
                the Armed Forces, and first generation college 
                students, and how such eligible entity will, when 
                appropriate, address the specific needs of each such 
                population of students when carrying out the 
                demonstration project;
                    ``(M) an assurance that students participating 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 competency-
                based education program offered under the demonstration 
                project, disaggregated by each of the applicable costs 
                or allowances described in paragraphs (1) through (13) 
                of section 472, and the estimated amount of the cost of 
                attendance of each such program to be covered 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 eligible 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;
                    ``(Q) an assurance that the eligible entity will 
                use data to--
                            ``(i) ensure that each competency-education 
                        program under the demonstration project meets 
                        the benchmarks established in accordance with 
                        subsection (c)(2)(E); and
                            ``(ii) improve each such program;
                    ``(R) an assurance that the eligible entity has an 
                agreement with the accrediting agency or association of 
                the eligible entity to establish the standards 
                described in subsection (c); and
                    ``(S) such other elements as the Secretary may 
                require.
    ``(c) Recognition by Accrediting Agency or Association.--To carry 
out a competency-based education program under a demonstration project 
under this section, an eligible entity shall ensure that before, on, or 
after the date of approval of the eligible entity's application under 
subsection (b), the accrediting agency or association of the eligible 
entity will establish the following standards with respect to such 
competency-based education program:
            ``(1) Standards for determining whether the eligible entity 
        or the program requires students to demonstrate competencies 
        that are--
                    ``(A) capable of being validly and reliably 
                assessed; and
                    ``(B) appropriate in scope and rigor for the award 
                of the relevant recognized educational credential.
            ``(2) Standards for determining whether the eligible entity 
        or the program demonstrate--
                    ``(A) the administrative capacity and expertise 
                that will ensure--
                            ``(i) the validity and reliability of 
                        assessments of competencies; and
                            ``(ii) good practices in assessment and 
                        measurement;
                    ``(B) sufficient educational content, activities, 
                and resources (including faculty support)--
                            ``(i) to enable students to learn or 
                        develop what is required to demonstrate or 
                        attain mastery of competencies; and
                            ``(ii) that are consistent with the 
                        qualifications of graduates of traditional 
                        programs;
                    ``(C) that the quality of demonstration of 
                competence is judged at mastery for each competency 
                that is assessed for the award of a recognized 
                educational credential;
                    ``(D) a standard for the amount of learning that is 
                included in a unit of competency;
                    ``(E) reasonable benchmarks for graduation 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 student satisfaction; and
                    ``(F) regular evaluation of whether the program 
                meets the benchmarks under subparagraph (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 providing 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 described in section 
                496(a)(6)(B); and
                    ``(B) for the eligible entity or program to appeal 
                any adverse action under this subparagraph 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 Competency-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 subsection 
                        (b);
                            ``(ii) commitment and ability to 
                        effectively 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;
                            ``(iv) history of compliance with the 
                        requirements of this Act;
                            ``(v) commitment to work with the Director 
                        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 assess 
                        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 participation in a 
                demonstration project; and
                    ``(E) not select an eligible entity that has had, 
                for 1 of the preceding 2 fiscal years, a cohort default 
                rate (defined in section 435(m)) that is 30 percent or 
                greater.
    ``(e) Waivers and Other Flexibility.--
            ``(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 provisions of 
                law (including any regulations promulgated under such 
                provisions) listed in paragraph (2) for which the 
                eligible entity has provided 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 paragraph (1)(A):
                    ``(A) Subparagraphs (A) and (B) of section 
                102(a)(3).
                    ``(B) Section 484(l)(1).
            ``(3) Provisions eligible for flexibility.--The Secretary 
        may provide the flexibility described in paragraph (1)(B) with 
        respect to the requirements under provisions in title I, part F 
        of this 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 interaction 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', `educational activity', `project of 
                study', and `payment period'.
                    ``(G) Methods of disbursing student financial aid 
                by institutions of higher education selected, as of the 
                date of enactment of the Advancing Competency-Based 
                Education Act of 2017, as experimental sites under 
                section 487A(b)(3) to carry out competency-based 
                education programs.
    ``(f) Notification.--Not later than 9 months after the date of 
enactment of the Advancing Competency-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 
demonstration 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 education 
        programs to be offered under the project.
    ``(g) Information and Evaluation.--
            ``(1) Information.--
                    ``(A) Student-level data.--Each eligible 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 
                subparagraph (C)(i)(II), and the student-level data for 
                students enrolled in a program described in 
                subparagraph (C)(i)(III) to enable the Director--
                            ``(i) to determine the aggregate 
                        information described in subparagraph (B) with 
                        respect to each such program; and
                            ``(ii) to the extent practicable, to 
                        compare the programs using a rigorous 
                        evaluation, 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 
                subparagraph (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 student.
                            ``(iii) The average period of time between 
                        the enrollment of a student in the program and 
                        the first assessment of student 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 enrollment 
                        in the program.
                            ``(vi) The percentage of assessments of 
                        student knowledge that students passed on the 
                        second attempt and the average period of time 
                        between the first and second attempts during 
                        the period of enrollment in the program.
                            ``(vii) The average number of competencies 
                        a student acquired while enrolled in a program 
                        and the period of time during which the student 
                        acquired such competencies.
                            ``(viii) The number and percentage of 
                        students completing the program who find 
                        employment, disaggregated by number and 
                        percentage of such students finding employment 
                        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 identify any individual student:
                            ``(i) For each eligible entity that carries 
                        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 program 
                                not being carried out under the 
                                project; and
                                    ``(III) the students enrolled in a 
                                program not described in subclause (I) 
                                or (II).
                            ``(ii) For each group of students described 
                        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 provide to the 
                Competency-Based Education Council 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 
                Education Act of 2017.
            ``(2) Evaluation.--
                    ``(A) In general.--The Director, in consultation 
                with the Secretary and using the information determined 
                under paragraph (1), shall annually evaluate each 
                eligible entity carrying out a demonstration project 
                under this section. Each evaluation shall be 
                disaggregated in accordance with subparagraph (B) and 
                include--
                            ``(i) the extent to which the eligible 
                        entity has met the elements of its application 
                        under subsection (b)(4);
                            ``(ii) whether the demonstration project 
                        led to reduced cost or time to completion of a 
                        recognized educational credential, and the 
                        amount of cost or time reduced for such 
                        completion;
                            ``(iii) obstacles related to student 
                        financial assistance for competency-based 
                        education;
                            ``(iv) the extent to which statutory or 
                        regulatory requirements not waived or for which 
                        flexibility is not provided under subsection 
                        (e) presented difficulties or unintended 
                        consequences for students or eligible entities;
                            ``(v) a description of the waivers or 
                        flexibility provided under subsection (e) that 
                        were most beneficial to students or eligible 
                        entities, and an explanation of such benefits;
                            ``(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 balance 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 
                                completion rates for--
                                    ``(II) first-time, full-time 
                                students;
                                    ``(III) first-time, part-time 
                                students;
                                    ``(IV) nonfirst-time, full-time 
                                students;
                                    ``(V) nonfirst-time, part-time 
                                students;
                                    ``(VI) eligibility for Federal Pell 
                                grants;
                                    ``(VII) race and ethnicity; and
                                    ``(VIII) transfer rates;
                            ``(xiii) a description of the assessments 
                        of student knowledge and the corresponding 
                        competencies;
                            ``(xiv) a description of the role of 
                        faculty and faculty involvement; and
                            ``(xv) outcomes of the assessments of 
                        student knowledge.
                    ``(B) Disaggregation.--The data collected under 
                clauses (vi) through (xii) shall be disaggregated by 
                each group of students described in paragraph 
                (1)(C)(i).
            ``(3) Annual report.--The Director, in consultation with 
        the Secretary, shall annually provide to the authorizing 
        committees a report on--
                    ``(A) the evaluations required under paragraph (2);
                    ``(B) the number and types of students receiving 
                assistance under this title for competency-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 programs, which may be 
                independent of or combined 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 Director shall 
consult with the Secretary of Education or the Secretary of the 
Treasury to obtain the employment, earnings, and loan information that 
may be necessary for purposes of subsection (c)(2)(F) or subsection 
(g), respectively.
    ``(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 provisions of law 
        and regulations that are waived under subsection (e));
            ``(2) provide technical assistance;
            ``(3) monitor fluctuations in the student population 
        enrolled in the eligible entities carrying out the 
        demonstration projects under this section;
            ``(4) consult with appropriate accrediting agencies or 
        associations and appropriate State regulatory authorities for 
        additional ways of improving the delivery of competency-based 
        education programs; and
            ``(5) collect and disseminate to eligible entities carrying 
        out a demonstration project under this section, 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 identifiable information in 
        connection with this section to willfully disclose to any 
        person (except as authorized in this Act or any Federal law) 
        such personally identifiable information.
            ``(2) Penalty.--Any person who violates paragraph (1) shall 
        be fined not more than $5,000, imprisoned 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 committed 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 collected under this 
        section shall not be sold to any third party by the Director, 
        any postsecondary institution, 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 section for any purpose except as 
        explicitly authorized by this Act.
            ``(6) Law enforcement.--Personally identifiable information 
        collected under this section shall not be used for any law 
        enforcement activity or any other activity that would result in 
        adverse action against any student, including debt collection 
        activity 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 program.--The term 
        `competency-based education program' means a program that 
        provides competency-based education for which the accrediting 
        agency or association of the institution of higher education 
        offering such program has established or will establish the 
        standards described in subsection (c) and, in accordance with 
        such standards--
                    ``(A) measures academic progress and attainment 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 Secretary the 
                number of credit or clock hours that 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, activities, 
                support, and resources necessary to enable students to 
                attain the knowledge, skills, and characteristics that 
                are required to demonstrate mastery of such 
                competencies, including--
                            ``(i) ready access to academic assistance 
                        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 student's 
                        engagement and progress in each competency, in 
                        which faculty are responsible for providing 
                        proactive academic assistance, 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 credential.
            ``(2) Eligible entity.--The term `eligible entity' means an 
        institution of higher education, which may be an institution of 
        higher education that offers a dual or concurrent enrollment 
        program.
            ``(3) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 102, except that such term does not include 
        institutions described in section 102(a)(1)(C).
            ``(4) Dual or concurrent enrollment program.--The term 
        `dual or concurrent enrollment program' has the meaning given 
        the term in section 8101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7801).
            ``(5) Director.--The term `Director' means the Director of 
        the Institute of Education Sciences.
            ``(6) First generation college student.--The term `first 
        generation college student' has the meaning given the term in 
        section 402A(h)(3).''.
    (b) Exception to Student Unit Record Ban.--Section 134(b) of the 
Higher Education Act of 1965 (20 U.S.C. 1015c(b)) is amended--
            (1) by striking the following:
            ``(1) is necessary''; and inserting the following:
            ``(1)(A) is necessary'';
            (2) by striking the following:
            ``(2) was in''; and inserting the following:
                    ``(B) was in'';
            (3) by striking the period at the end and inserting ``; 
        or''; and
            (4) by adding at the end the following:
            ``(2) is necessary for the operation of section 486B.''.
    (c) Rule of Construction.--Nothing in this Act or the amendments 
made by this Act shall be construed to alter the authority of the 
Secretary of Education to establish experimental sites under any other 
provision of law.

SEC. 3. COMPETENCY-BASED EDUCATION COUNCIL.

    (a) Establishment of a Committee on Competency-Based Education.--
Not later than 6 months after the date of enactment of this Act, there 
shall be established the Competency-Based Education Council (referred 
to in this section as the ``Council'').
    (b) Membership.--
            (1) Composition.--The Council shall be composed of--
                    (A) 3 individuals appointed by the Secretary of 
                Education;
                    (B) 2 individuals appointed by the Director of the 
                Consumer Financial Protection Bureau;
                    (C) not less than 8 and not more than 13 
                individuals appointed by the Comptroller General of the 
                United States, representing--
                            (i) experts in competency-based education;
                            (ii) faculty members in competency-based 
                        education programs;
                            (iii) administrators at institutions that 
                        offer competency-based education programs;
                            (iv) individuals currently enrolled in or 
                        graduated from a competency-based education 
                        program;
                            (v) accrediting agencies or associations 
                        that recognize competency-based education 
                        programs; and
                            (vi) experts from the State education 
                        agency;
                    (D) 4 members appointed by--
                            (i) the majority leader of the Senate;
                            (ii) the minority leader of the Senate;
                            (iii) the Speaker of the House of 
                        Representatives; and
                            (iv) the minority leader of the House of 
                        Representatives.
                    (E) Chairperson.--The Council shall select a 
                Chairperson from among its members.
                    (F) Vacancies.--Any vacancy in the Council shall 
                not affect the powers of the Council and shall be 
                filled in the same manner as an initial appointment.
    (c) Meetings.--The Council shall hold, at the call of the 
Chairperson, not less than 6 meetings before completing the study 
required under subsection (e) and the report required under subsection 
(f).
    (d) Personnel Matters.--
            (1) Compensation of members.--Each member of the Council 
        shall serve without compensation in addition to any such 
        compensation received for the member's service as an officer or 
        employee of the United States, if applicable.
            (2) Travel expenses.--The members of the Council shall be 
        allowed travel expenses, including per diem in lieu of 
        subsistence, at rates authorized for employees of agencies 
        under subchapter 1 of chapter 57 of title 5, United States 
        Code, while away from their homes or regular places of business 
        in the performance of services for the Council.
    (e) Duties of the Council.--
            (1) Study.--The Council shall conduct a study on the 
        ongoing innovation and development of competency-based 
        education programs.
            (2) Recommendations.--Based on the findings of the study 
        under paragraph (1), the Council shall develop recommendations 
        for the authorization of competency-based education under the 
        Higher Education Act of 1965, including recommendations that--
                    (A) provide or update standard definitions, if 
                needed, for relevant terms, including--
                            (i) competency-based education; and
                            (ii) competency-based education program; 
                        and
                    (B) address--
                            (i) the amount of learning in a competency 
                        unit;
                            (ii) the transfer of competency-based 
                        education credits to other institutions or 
                        programs;
                            (iii) the minimum amount of time in an 
                        academic year for competency-based education 
                        programs, for financial aid purposes;
                            (iv) considerations for accreditation 
                        agencies before recognizing competency-based 
                        education programs;
                            (v) address the role of faculty and faculty 
                        involvement in competency-based education 
                        programs; and
                            (vi) additional resources that may be 
                        needed for adequate oversight of competency-
                        based education programs.
    (f) Report.--Not later than 6 years after the date of enactment of 
this Act, the Council shall prepare and submit a report to the 
Secretary of Education and to Congress containing the findings of the 
study under subsection (e)(1) and the recommendations developed under 
subsection (e)(2).
                                 <all>