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SECTION 1. SHORT TITLE.

This Act may be cited as the ''Supporting Academic Freedom through
Regulatory Relief Act''.

SEC. 2. REGULATORY RELIEF.

(a) Regulations Repealed.--
(1) Repeal.--The following regulations (including any
supplement or revision to such regulations) are repealed and
shall have no legal effect:
(A) State authorization.--Sections 600.4(a)(3),
600.5(a)(4), 600.6(a)(3), 600.9, and 668.43(b) of title
34, Code of Federal Regulations (relating to State
authorization), as added or amended by the final
regulations published by the Department of Education in
the Federal Register on October 29, 2010 (75 Fed. Reg.
66832 et seq.).
(B) Definition of credit hour.--The definition of
the term ''credit hour'' in section 600.2 of title 34,
Code of Federal Regulations, as added by the final
regulations published by the Department of Education in
the Federal Register on October 29, 2010 (75 Fed. Reg.
66946), and clauses (i)(A), (ii), and (iii) of
subsection (k)(2) of section 668.8 of such title, as
amended by such final regulations (75 Fed. Reg. 66949
et seq.).
(C) Gainful employment.--Sections 600.10(c),
600.20(d), 668.6, and 668.7, of title 34, Code of
Federal Regulations as added or amended by the final
regulations published by the Department of Education in
the Federal Register on October 29, 2010 (75 Fed. Reg.
66832 et seq. and 75 Fed. Reg. 66665 et seq.) and June
13, 2011 (76 Fed. Reg. 34386 et seq.).
(2) Effect of repeal.--To the extent that regulations
repealed by paragraph (1) amended regulations that were in
effect on June 30, 2011, the provisions of the regulations that
were in effect on June 30, 2011, and were so amended are
restored and revived as if the regulations repealed by
paragraph (1) had not taken effect.
(b) Certain Regulations Prohibited.--
(1) State authorization and gainful employment.--
(A) In general.--The Secretary of Education shall
not, during the period described in subparagraph (B),
promulgate or enforce any regulation or rule not in
effect on the date of enactment of this Act for any
purpose under the Higher Education Act of 1965 (20
U.S.C. 1001 et seq.) with respect to--
(i) the State authorization for
institutions of higher education to operate
within a State; or
(ii) the definition or application of the
term ''gainful employment''.
(B) Period of prohibition.--The period during which
the Secretary is prohibited from promulgating or
enforcing a regulation described in subparagraph (A)
shall be the period beginning on the date of enactment
of this Act and ending on the date of enactment of a
law that extends by not less than 2 fiscal years the
authorization or duration of one or more programs under
the Higher Education Act of 1965 (20 U.S.C. 1001 et
seq.).
(2) Credit hour.--The Secretary of Education shall not, on
or after the date of enactment of this Act, promulgate or
enforce any regulation or rule with respect to the definition
of the term ''credit hour'' for any purpose under the Higher
Education Act of 1965 (20 U.S.C. 1001 et seq.).

SEC. 3. THIRD-PARTY SERVICE PROVIDERS.

Section 487(a)(20) of the Higher Education Act of 1965 (20 U.S.C.
1094(a)(20)) is amended by adding at the end the following:
''Notwithstanding the preceding sentence, an institution described in
section 101 may provide payment, based on the amount of tuition
generated by the institution from student enrollment, to a third-party
entity that provides a set of services to the institution that includes
student recruitment services, regardless of whether the third-party
entity is affiliated with an institution that provides educational
services other than the institution providing such payment, if--
''(A) the third-party entity is not affiliated with
the institution providing such payment;
''(B) the third-party entity does not make
compensation payments to its employees that are
prohibited under this paragraph;
''(C) the set of services provided to the
institution by the third-party entity include services
in addition to student recruitment services, and the
institution does not pay the third-party entity solely
or separately for student recruitment services provided
by the third-party entity; and
''(D) any student recruitment information available
to the third-party entity, including personally
identifiable information, will not be used by, shared
with, or sold to any other person or entity, including
any institution that is affiliated with the third-party
entity.''.
Output:
Supporting Academic Freedom through Regulatory Relief Act - (Sec. 2) Repeals certain Department of Education regulations that for purposes of determining whether a school is eligible to participate in programs under the Higher Education Act of 1965 (HEA): (1) require institutions of higher education (IHEs) and postsecondary vocational institutions (except religious schools) to be legally authorized by the state in which they are situated, (2) delineate what such legal authorization requires of states and schools, (3) impose standards and disclosure requirements on programs that prepare students for gainful employment in a recognized occupation, and (4) define "credit hour." Restores regulations that were in effect on June 30, 2011, but were amended by the regulations that this Act repeals. Prohibits the Secretary of Education from promulgating or enforcing any regulation or rule not in effect on the date of this Act's enactment regarding: (1) the state authorization for IHEs to operate within a state, or (2) the definition or application of the term "gainful employment." Ends that prohibition when a law is enacted that extends by at least two fiscal years the authorization or duration of one or more programs under the HEA. Prohibits the Secretary from promulgating or enforcing any regulation or rule that defines "credit hour" for any purpose under the HEA. (Sec. 3) Amends title IV (Student Assistance) of the HEA to authorize nonprofit IHEs to make payments to third-party entities for services that include student recruitment and are based on the amount of tuition that the IHE generates from student enrollment if the third-party entity: (1) is not affiliated with the IHE, (2) does not provide incentive payments to its employees for their success in enrolling students or securing financial aid for them, (3) is not paid by the IHE solely or separately for student recruitment services, and (4) will not make student recruitment information available to any other person or entity.