[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7804 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 7804
To establish the Proprietary Education Interagency Oversight
Coordination Committee and facilitate the disclosure and reporting of
information regarding complaints and investigations related to
proprietary institutions of higher education eligible to receive
Federal education assistance.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 22, 2024
Mr. Jackson of North Carolina (for himself, Ms. Adams, Ms. Bonamici,
Mr. Bowman, Ms. DeLauro, Ms. Jayapal, Mr. Schiff, and Ms. Waters)
introduced the following bill; which was referred to the Committee on
Education and the Workforce
_______________________________________________________________________
A BILL
To establish the Proprietary Education Interagency Oversight
Coordination Committee and facilitate the disclosure and reporting of
information regarding complaints and investigations related to
proprietary institutions of higher education eligible to receive
Federal education assistance.
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 ``Proprietary Education Interagency
Oversight Coordination Improvement Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Accrediting agency.--The term ``accrediting agency''
means a private educational association that acts as a reliable
authority on the quality of education or training provided by
an institution of higher education and is recognized by the
Secretary of Education under section 496 of the Higher
Education Act of 1965 (20 U.S.C. 1099b).
(2) Executive officer.--The term ``executive officer'',
with respect to a proprietary institution of higher education
that is a publicly traded corporation, means--
(A) the president of such corporation;
(B) a vice president of such corporation who is in
charge of a principal business unit, division, or
function of such corporation, such as sales,
administration, or finance; or
(C) any other officer or person who performs a
policy making function for such corporation, including
an executive officer of a subsidiary of the corporation
if the officer performs a policy making function for
the corporation.
(3) Federal education assistance.--The term ``Federal
education assistance'' when used with respect to a proprietary
institution of higher education, means Federal funds that are
disbursed or delivered to or on behalf of a student to be used
for tuition, fees, instruction, or any component of the
student's cost of attendance (as defined in section 472 of the
Higher Education Act of 1965 (20 U.S.C. 1087ll)) to attend such
institution.
(4) Institutional debt.--The term ``institutional debt''
means any debt owed by a student or the parent of a student to
an institution of higher education, including--
(A) debt owed through a private loan program or
income share agreement operated by the institution;
(B) debt owed from a return of student assistance
made, insured, or guaranteed under title IV of the
Higher Education Act 1965 (20 U.S.C. 1070 et seq.) to
the Department of Education; and
(C) debt owed from the student's nonpayment of
institutional charges or fees.
(5) Private education loan.--The term ``private education
loan'' means--
(A) a loan provided by a private educational lender
(as defined in section 140(a) of the Truth in Lending
Act (15 U.S.C. 1650(a))) that--
(i) is not made, insured, or guaranteed
under title IV of the Higher Education Act of
1965 (20 U.S.C. 1070 et seq.);
(ii) is issued expressly for postsecondary
educational expenses to a borrower, regardless
of whether the loan is provided through the
educational institution that the subject
student attends or directly to the borrower
from the private educational lender (as so
defined); and
(iii) is not made, insured, or guaranteed
under title VII or title VIII of the Public
Health Service Act (42 U.S.C. 292 et seq. and
296 et seq.); and
(B) does not include an extension of credit under
an open end consumer credit plan, a reverse mortgage
transaction, a residential mortgage transaction, or any
other loan that is secured by real property or a
dwelling.
(6) Proprietary institution of higher education.--The term
``proprietary institution of higher education'' has the meaning
given the term in section 102(b) of the Higher Education Act of
1965 (20 U.S.C. 1002(b)).
(7) Recruiting and marketing activities.--
(A) In general.--Except as provided in subparagraph
(B), the term ``recruiting and marketing activities''
means activities that consist of the following:
(i) 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, that are made directly or indirectly to
a student, a prospective student, the public,
an accrediting agency, a State agency, or to
the Secretary by an institution of higher
education, one of its representatives, or any
person with whom the institution has an
agreement to provide educational programs,
advertising, or admissions services.
(ii) Misleading statement,
misrepresentation, and substantial
misrepresentation (as defined in section
668.71(c) of title 34, Code of Federal
Regulations, or any successor regulation).
(iii) 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 a grant, a 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
soliciting an individual to provide contact
information to an institution of higher
education, including through websites
established for such purpose and funds paid to
third parties for such purpose.
(iv) Such other activities as the Secretary
of Education may prescribe, including paying
for promotion or sponsorship of education or
military-related associations.
(B) 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 recruiting
and marketing activity under subparagraph (A).
(8) State approval agency.--The term ``State approval
agency'' means any State agency that determines whether an
institution of higher education is legally authorized within
such State to provide a program of education beyond secondary
education.
(9) Veterans service organization.--The term ``veterans
service organization'' means an organization that is--
(A) recognized by the Secretary of Veterans Affairs
for the representation of veterans under section 5902
of title 38, United States Code;
(B) congressionally chartered under title 36,
United States Code, and serves or represents veterans;
(C) recognized by the Secretary of Veteran Affairs
under section 14.628 of title 38, Code of Federal
Regulations (or a successor regulation), as a national
organization, State organization, tribal organization,
or regional or local organization; or
(D) an organization that has a record of
demonstrating expertise in, assists in, or serves the
interests of veterans in education.
SEC. 3. ESTABLISHMENT OF COMMITTEE.
(a) Establishment.--There is established a committee to be known as
the ``Proprietary Education Interagency Oversight Coordination
Committee'' (referred to in this Act as the ``Committee'') and to be
composed of the head (or the designee of such head who is designated
under subsection (d)) of each of the following Federal entities:
(1) The Department of Education.
(2) The Consumer Financial Protection Bureau.
(3) The Department of Justice.
(4) The Securities and Exchange Commission.
(5) The Department of Defense.
(6) The Department of Veterans Affairs.
(7) The Federal Trade Commission.
(8) The Department of Labor.
(9) The Internal Revenue Service.
(10) At the discretion of the President, any other relevant
Federal agency or department.
(b) Purposes.--The Committee shall have the following purposes:
(1) To improve enforcement of applicable Federal laws and
regulations.
(2) To increase accountability of proprietary institutions
of higher education to students and taxpayers.
(3) To ensure the promotion of quality education programs.
(4) To reduce and prevent fraud and abuse by proprietary
institutions of higher education.
(c) Responsibilities.--To meet the purposes described in subsection
(b), the Committee shall have the following responsibilities:
(1) Coordinate administrative oversight of proprietary
institutions of higher education--
(A) such that the Federal agencies represented on
the Committee may develop a memorandum of understanding
to specify responsibilities of each such Federal agency
in creating the report under section 6;
(B) to encourage information sharing among the
Federal agencies related to Federal investigations,
audits, or inquiries of proprietary institutions of
higher education; and
(C) to increase coordination and cooperation
between Federal and State agencies, including State
Attorneys General and State approval agencies, with
respect to improving oversight and accountability of
proprietary institutions of higher education.
(2) Synthesize cross-agency industry data on proprietary
institutions of higher education to--
(A) develop an annual report under section 6;
(B) publish a ``For-Profit College Warning List for
Parents and Students'', in accordance with section 7;
and
(C) develop consistency among Federal and State
agencies in the dissemination of consumer information
regarding proprietary institutions of higher education
to ensure that students, parents, and other
stakeholders have easy access to such information.
(d) Membership.--
(1) Designees.--The head of a Federal entity described in
subsection (a) may designate a high ranking official of the
entity to serve as a designee on the Committee. The designee
shall be, whenever possible, the head of the portion of the
entity that is most relevant to the purposes described in
subsection (b).
(2) Chairperson.--The Secretary of Education or the
designee of such Secretary shall serve as the Chairperson of
the Committee.
(3) Committee support.--The Chairperson of the Committee
shall ensure appropriate staff and officials at the Department
of Education are available to support Committee-related work.
SEC. 4. MEETINGS AND ADVISORY COMMITTEE.
(a) Committee Meetings.--The members of the Committee shall meet
regularly, but not less than once during each quarter of each fiscal
year, to carry out the purposes described in section 3(b) and
responsibilities described in section 3(c).
(b) Proprietary Education Oversight Advisory Committee.--
(1) In general.--The Committee shall establish a
Proprietary Education Oversight Advisory Committee to advise
the Proprietary Education Interagency Oversight Coordination
Committee that meets not less than twice each fiscal year.
(2) FACA applicability.--The activities of the Proprietary
Education Oversight Advisory Committee shall be subject to the
provisions of the Federal Advisory Committee Act (5 U.S.C.
App.).
(3) Membership.--The Proprietary Education Oversight
Advisory Committee shall be composed of the following members:
(A) State Attorneys General.
(B) Representatives from State approval agencies.
(C) Representatives from veterans service
organizations.
(D) Representatives from accrediting agencies.
(E) Representatives from civil rights
organizations.
(F) Representatives from proprietary institutions
of higher education.
(G) Consumer advocates.
(H) Any additional stakeholders deemed relevant by
the Proprietary Education Interagency Oversight
Coordination Committee to provide input and information
to enable the Proprietary Education Interagency
Oversight Coordination Committee to carry out the
purposes described in section 3(b) and responsibilities
in section 3(c).
SEC. 5. COLLECTION AND TRACKING OF COMPLAINTS.
(a) In General.--In consultation with the Committee, the Secretary
of Education shall establish a single, toll-free telephone number, a
website, and a database (or utilize an existing database) to facilitate
the centralized collection of, monitoring of, and response to student
complaints regarding the services or activities of any proprietary
institution of higher education eligible for Federal education
assistance. The Committee shall coordinate with the Federal agencies
represented on the Committee to route complaints to such agencies,
where appropriate.
(b) Routing Calls to States.--To the extent practicable, State
approval agencies may receive appropriate complaints from the systems
established under subsection (a), if--
(1) the State approval agency system has the functional
capacity to receive calls or electronic reports routed by the
Department of Education systems;
(2) the State approval agency has satisfied any conditions
of participation in the system that the Department of Education
may establish, including treatment of personally identifiable
information and sharing of information on complaint resolution
or related compliance procedures and resources; and
(3) participation by the State approval agency includes
measures necessary to provide for protection of personally
identifiable information that conform to the standards for
protection of the confidentiality of personally identifiable
information and for data integrity and security that apply to
the Federal agencies described in subsection (c).
(c) Data Sharing Required.--To facilitate preparation of the
reports required under section 6, supervision and enforcement
activities, and monitoring of the market for educational services
provided by any proprietary institution of higher education eligible
for Federal education assistance, the Committee members shall share
student complaint information with accrediting agencies, the Federal
Trade Commission, other Federal agencies, and State agencies, subject
to the standards applicable to Federal agencies for protection of the
confidentiality of personally identifiable information and for data
security and integrity. The accrediting agencies, the Federal Trade
Commission, and other Federal agencies shall share data relating to
student complaints regarding educational services provided by any
proprietary institution of higher education with the Department of
Education, subject to the standards applicable to Federal agencies for
protection of confidentiality of personally identifiable information
and for data security and integrity.
SEC. 6. REPORT.
(a) In General.--The Committee shall submit an annual report to the
Committee on Health, Education, Labor, and Pensions of the Senate, the
Committee on Education and the Workforce of the House of
Representatives, and any other committee of Congress that the Committee
determines appropriate.
(b) Public Access.--The report described in subsection (a) shall be
made available to the public in a manner that is easily accessible to
parents, students, and other stakeholders.
(c) Contents.--
(1) In general.--The report shall include--
(A) a description of the role of each member of the
Committee in achieving the purposes described in
section 3(b);
(B) an accounting of any action taken by the
Federal Government, any member entity of the Committee,
or a State to enforce Federal or State laws and
regulations applicable to a proprietary institution of
higher education;
(C) a summary of complaints received, resolved, or
pending against each proprietary institution of higher
education during the applicable year, including--
(i) student complaints collected by the
complaint system established under section 5 or
received by any member entity of the Committee;
(ii) any complaint filed by a Federal or
State agency in a Federal, State, local, or
tribal court;
(iii) any administrative proceeding by a
Federal or State agency involving noncompliance
of any applicable law or regulation;
(iv) any other review, audit, or
administrative process by any Federal or State
agency that results in a penalty, suspension,
or termination from any Federal or State
program; and
(v) any complaint, review, audit, or
administrative process initiated against the
proprietary institution of higher education by
an accrediting agency or any adverse action
taken by an accrediting agency during the
applicable year;
(D) the data described in paragraph (2) and any
other data relevant to proprietary institutions of
higher education that the Committee determines
appropriate; and
(E) recommendations of the Committee for such
legislative and administrative actions as the Committee
determines are necessary to--
(i) improve enforcement of applicable
Federal laws;
(ii) increase accountability of proprietary
institutions of higher education to students
and taxpayers;
(iii) reduce and prevent fraud and abuse by
proprietary institutions of higher education;
and
(iv) ensure the promotion of quality
education programs.
(2) Data.--
(A) Industry-wide data.--The report shall include
data on all proprietary institutions of higher
education that consists of information regarding--
(i) the total amount of Federal education
assistance that proprietary institutions of
higher education received for the previous
academic year, and the percentage of the total
amount of Federal education assistance provided
to institutions of higher education (as defined
in section 102 of the Higher Education Act of
1965 (20 U.S.C. 1002)) for such previous
academic year that reflects such total amount
of Federal education assistance provided to
proprietary institutions of higher education
for such previous academic year;
(ii) the total amount of Federal education
assistance that proprietary institutions of
higher education received for the previous
academic year, disaggregated by--
(I) educational assistance in the
form of a loan provided under title IV
of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.);
(II) educational assistance in the
form of a grant provided under title IV
of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.);
(III) educational assistance
provided under chapter 33 of title 38,
United States Code;
(IV) assistance for tuition and
expenses under section 2007 of title
10, United States Code;
(V) assistance provided under
section 1784a of title 10, United
States Code; and
(VI) Federal education assistance
not described in subclauses (I) through
(V);
(iii) the percentage of the total amount of
Federal education assistance provided to
institutions of higher education (as defined in
section 102 of the Higher Education Act of 1965
(20 U.S.C. 1002)) for such previous academic
year for each of the programs described in
subclauses (I) through (VI) of clause (ii) that
reflects such total amount of Federal education
assistance provided to proprietary institutions
of higher education for such previous academic
year for each of such programs;
(iv) the average retention and graduation
rates for students pursuing a degree at
proprietary institutions of higher education;
(v) the average cohort default rate (as
defined in section 435(m) of the Higher
Education Act of 1965 (20 U.S.C. 1085(m)) for
proprietary institutions of higher education,
and list of each cohort default rate for each
proprietary institution of higher education;
(vi) the average pre-enrollment
expenditures on a per-enrolled-student basis,
including expenditures on recruiting and
marketing activities;
(vii) the average educational and general
expenditures (as defined in section 502 of the
Higher Education Act of 1965 (20 U.S.C. 1101a))
per student, excluding all pre-enrollment
expenditures;
(viii) for careers requiring the passage of
a licensing examination--
(I) the passage rate of individuals
who attended a proprietary institution
of higher education taking such
examination to pursue such a career;
and
(II) the passage rate of all
individuals taking such exam to pursue
such a career; and
(ix) the use of private education loans at
proprietary institutions of higher education
that includes--
(I) an estimate of the total number
of such loans;
(II) information on the average
debt, default rate, and interest rate
of such loans; and
(III) the names of each lender
providing private education loans to
borrowers with respect to each
proprietary institution of higher
education in the prior academic year,
including--
(aa) the number of
borrowers receiving loans from
each lender; and
(bb) the volume of dollars
provided to borrowers with
respect to the proprietary
institution of higher education
by each lender.
(B) Data on publicly traded corporations.--
(i) In general.--The report shall include
data on proprietary institutions of higher
education that are publicly traded
corporations, consisting of information on--
(I) any pre-tax profit of such
proprietary institutions of higher
education--
(aa) reported as a total
amount and an average percent
of revenue for all such
proprietary institutions of
higher education; and
(bb) reported for each such
proprietary institution of
higher education;
(II) revenue for such proprietary
institutions of higher education spent
on recruiting and marketing activities,
student instruction, and student
support services, reported--
(aa) as a total amount and
an average percent of revenue
for all such proprietary
institutions of higher
education; and
(bb) for each such
proprietary institution of
higher education;
(III) total compensation packages
of the executive officers of each such
proprietary institution of higher
education;
(IV) a list of institutional loan
programs offered by each such
proprietary institution of higher
education that includes information on
the default and interest rates of such
programs; and
(V) the data described in clauses
(ii) and (iii).
(ii) Disaggregated by ownership.--The
report shall include data on proprietary
institutions of higher education that are
publicly traded corporations, disaggregated by
corporate or parent entity, brand name, and
campus, consisting of--
(I) the average total cost of
attendance at each such proprietary
institution of higher education, and
information comparing such total cost
for each such program to--
(aa) the average total cost
of attendance--
(AA) at each public
institution of higher
education; and
(BB) at each public
institution of higher
education that offers
the same level of
education degree or
certification as the
proprietary institution
of higher education;
and
(bb) the average total cost
of attendance--
(AA) at all
institutions of higher
education, including
such institutions that
are public and such
institutions that are
private; and
(BB) at all
institutions of higher
education that offer
the same level of
education degree or
certification as the
proprietary institution
of higher education,
including such
institutions that are
public and such
institutions that are
private;
(II) total enrollment,
disaggregated by--
(aa) individuals enrolled
in programs taken online;
(bb) individuals enrolled
in programs that are not taken
online; and
(cc) individuals enrolled
in programs taken both online
and not online;
(III) the average retention and
graduation rates for students pursuing
a degree at such proprietary
institutions of higher education;
(IV) the percentage of students
enrolled in such proprietary
institutions of higher education who
complete a program of such an
institution within--
(aa) the standard period of
completion for such program;
and
(bb) a period that is 150
percent of such standard period
of completion;
(V) the average total cost of
attendance for each program at such
proprietary institutions of higher
education;
(VI) the average cohort default
rate, as defined in section 435(m) of
the Higher Education Act of 1965 (20
U.S.C. 1085(m)), for such proprietary
institutions of higher education, and
an annual list of cohort default rates
(as so defined) for all proprietary
institutions of higher education;
(VII) the median Federal
educational debt incurred by students
who complete a program at such a
proprietary institution of higher
education;
(VIII) the median Federal
educational debt incurred by students
who start but do not complete a program
at such a proprietary institution of
higher education;
(IX) the job placement rate for
students who complete a program at such
a proprietary institution of higher
education and the type of employment
obtained by such students;
(X) for careers requiring the
passage of a licensing examination, the
rate of individuals who attended such a
proprietary institution of higher
education and passed such an
examination;
(XI) the number of complaints from
students enrolled in such proprietary
institutions of higher education who
have submitted a complaint to any
member entity of the Committee; and
(XII) the volume of institutional
debt, number of students who owe
institutional debts, and average amount
of institutional debt owed by each
student.
(iii) Department of defense and veterans
affairs assistance.--
(I) In general.--To the extent
practicable, the report shall provide
information on the data described in
clause (ii) for individuals using, to
pay for the costs of attending such a
proprietary institution of higher
education, Federal education assistance
provided under--
(aa) chapter 33 of title
38, United States Code;
(bb) section 2007 of title
10, United States Code; and
(cc) section 1784a of title
10, United States Code.
(II) Revenue.--The report shall
provide information on the revenue of
proprietary institutions of higher
education that are publicly traded
corporations that is derived from the
Federal education assistance described
in subclause (I).
(C) Comparison data.--To the extent practicable,
the report shall provide information comparing the data
described in subparagraph (B) for proprietary
institutions of higher education that are publicly
traded corporations with such data for public
institutions of higher education disaggregated by
State.
(3) Accounting of any action.--For the purposes of
paragraph (1)(B), the term ``any action'' shall include--
(A) a complaint filed by a Federal or State agency
in a local, State, Federal, or tribal court;
(B) an administrative proceeding by a Federal or
State agency involving noncompliance of any applicable
law or regulation; or
(C) any other review, audit, or administrative
process by any Federal or State agency that results in
a penalty, suspension, or termination from any Federal
or State program.
SEC. 7. FOR-PROFIT COLLEGE WARNING LIST FOR PARENTS AND STUDENTS.
(a) In General.--Each academic year, the Secretary of Education on
behalf of the Committee shall publish a list to be known as the ``For-
Profit College Warning List for Parents and Students'' to be comprised
of proprietary institutions of higher education--
(1) that have been sued for financial relief by a Federal
or State authority, or through a qui tam action in which the
Federal Government has intervened;
(2) that are required to pay a debt or incur a liability
from a settlement, arbitration proceeding, or final judgment in
a judicial proceeding with a Federal or State agency and the
case addresses misrepresentation, fraud, liability under
sections 3729 through 3733 of title 31, United States Code
(commonly known as the ``False Claims Act''), or other borrower
defense to repayment claims;
(3) that have pending claims for borrower relief discharge
under the borrower defense to repayment regulations from
students or former students of the institution and the
Secretary of Education has formed a group process to consider
the claims;
(4) that have had any eligibility for participation
withdrawn or suspended with respect to--
(A) educational assistance in the form of a loan
provided under title IV of the Higher Education Act of
1965 (20 U.S.C. 1070 et seq.);
(B) educational assistance in the form of a grant
provided under title IV of the Higher Education Act of
1965 (20 U.S.C. 1070 et seq.);
(C) educational assistance provided under chapter
33 of title 38, United States Code;
(D) assistance for tuition and expenses under
section 2007 of title 10, United States Code;
(E) assistance provided under section 1784a of
title 10, United States Code; or
(F) Federal education assistance not described in
subparagraphs (A) through (E); or
(5) that have been deemed ineligible to receive Federal
education assistance for the next year or required to repay
Federal education assistance previously received in applicable
report year.
(b) Summary.--The For-Profit College Warning List for Parents and
Students shall include a summary in plain language of the basis of each
proprietary institution of higher education's inclusion on the list.
(c) Procedures.--The Committee shall establish and apply review
procedures for the For-Profit College Warning List for Parents and
Students, including evaluation and withdrawal proceedings that
provide--
(1) for adequate written specification of--
(A) the procedure for identifying proprietary
intuitions of higher education for inclusion on the
list; and
(B) identified deficiencies at the proprietary
institutions of higher education; and
(2) for sufficient opportunity for a written response by a
proprietary institution of higher education regarding any
deficiencies identified by the Committee--
(A) within a timeframe determined by the Committee;
and
(B) prior to the final publication of the For-
Profit College Warning List for Parents and Students.
(d) Publication.--Not later than July 1 of each fiscal year, on
behalf of the Committee, the Secretary of Education shall publish the
For-Profit College Warning List for Parents and Students prominently
and in a manner that is easily accessible to parents, current students,
prospective students, and other stakeholders. The Secretary of
Education may incorporate the For-Profit College Warning List for
Parents and Students into preexisting, widely used platforms.
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