Proprietary Education Oversight Coordination Improvement Act - Establishes the Proprietary Education Oversight Coordination Committee to:
Requires the Committee to: (1) meet at least once each quarter of each fiscal year; and (2) meet at least once each fiscal year, and otherwise interact regularly, with state Attorneys General, state approval agencies, veterans service organizations, and consumer advocates.
Directs the Committee to submit, and make publicly available, an annual report to Congress that includes: (1) recommendations for legislative and administrative actions the Committees deems necessary to improve the enforcement of applicable federal laws, increase the accountability of proprietary IHEs to students and taxpayers, and ensure the promotion of quality education programs; and (2) specified financial and consumer information regarding such IHEs.
Requires the Committee, each academic year, to publish the For-Profit College Warning List for Parents and Students, which is to be comprised of proprietary IHEs:
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2204 Introduced in Senate (IS)]
113th CONGRESS
2d Session
S. 2204
To establish the Proprietary Education Oversight Coordination
Committee.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 3, 2014
Mr. Durbin (for himself, Mr. Harkin, and Mr. Brown) introduced the
following bill; which was read twice and referred to the Committee on
Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To establish the Proprietary Education Oversight Coordination
Committee.
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 Oversight
Coordination Improvement Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) 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.
(2) Federal education assistance.--The term ``Federal
education assistance'' means any Federal financial assistance
provided under any Federal law through a grant, a contract, a
subsidy, a loan, a guarantee, an insurance, or any other means
to a proprietary institution of higher education, including
Federal financial assistance that is disbursed or delivered to
such institution, on behalf of a student, or to a student to be
used to attend such institution, except that such term shall
not include any monthly housing stipend provided under chapter
33 of title 38, United States Code.
(3) Private education loan.--The term ``private education
loan''--
(A) means 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.
(4) 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)).
(5) 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.
(ii) 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--
(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 through websites established
for such purpose and funds paid to
third parties for such purpose.
(iii) 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).
(6) 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.
(7) Veterans service organization.--The term ``veterans
service organization'' means an organization recognized by the
Secretary of Veterans Affairs for the representation of
veterans under section 5902 of title 38, United States Code.
SEC. 3. ESTABLISHMENT OF COMMITTEE.
(a) Establishment.--There is established a committee to be known as
the ``Proprietary Education Oversight Coordination Committee''
(referred to in this Act as the ``Committee'') and to be composed of
the head (or the designee of such head) 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) Coordinate Federal oversight of proprietary
institutions of higher education to--
(A) improve enforcement of applicable Federal laws
and regulations;
(B) increase accountability of proprietary
institutions of higher education to students and
taxpayers; and
(C) ensure the promotion of quality education
programs.
(2) Coordinate Federal activities to protect students from
unfair, deceptive, abusive, unethical, fraudulent, or predatory
practices, policies, or procedures of proprietary institutions
of higher education.
(3) Encourage information sharing among agencies related to
Federal investigations, audits, or inquiries of proprietary
institutions of higher education.
(4) 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.
(5) Develop best practices and 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.
(c) Membership.--
(1) Designees.--For any designee described in subsection
(a), the head of the member entity shall appoint a high-level
official who exercises significant decisionmaking authority for
the oversight or investigatory activities and responsibilities
related to proprietary institutions of higher education of the
respective Federal entity of such head.
(2) Chairperson.--The Secretary of Education or the
designee of such Secretary shall serve as the Chairperson of
the Committee.
(3) Committee support.--The head of each entity described
in subsection (a) shall ensure appropriate staff and officials
of such entity are available to support the Committee-related
work of such entity.
SEC. 4. MEETINGS.
(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).
(b) Meetings With State Agencies and Stakeholders.--The Committee
shall meet not less than once each fiscal year, and shall otherwise
interact regularly, with State Attorneys General, State approval
agencies, veterans service organizations, and consumer advocates to
carry out the purposes described in section 3(b).
SEC. 5. REPORT.
(a) In General.--The Committee shall submit a report each year 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 in accordance with the best
practices developed under section 3(b)(5).
(c) Contents.--
(1) In general.--The report shall include--
(A) an accounting of any action (as defined in
paragraph (3)) taken by the Federal Government, any
member entity of the Committee, or a State--
(i) to enforce Federal or State laws and
regulations applicable to proprietary
institutions of higher education;
(ii) to hold proprietary institutions of
higher education accountable to students and
taxpayers; and
(iii) to promote quality education
programs;
(B) a summary of complaints against each
proprietary institution of higher education received by
any member entity of the Committee;
(C) the data described in paragraph (2) and any
other data relevant to proprietary institutions of
higher education that the Committee determines
appropriate; and
(D) 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; and
(iii) 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) tuition assistance provided
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 (V) 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 an annual list of cohort default rates (as
defined in such section) for all proprietary
institutions of higher education;
(vi) 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
(vii) the use of private education loans at
proprietary institutions of higher education
that includes--
(I) an estimate of the total number
of such loans; and
(II) information on the average
debt, default rate, and interest rate
of such loans.
(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 total cost of attendance
for each program at each such
proprietary institution of higher
education, and information comparing
such total cost for each such program
to--
(aa) the total cost of
attendance for each program at
each public institution of
higher education; and
(bb) the average total cost
of attendance for each program
at all institutions 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; and
(bb) individuals enrolled
in programs that are not taken
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 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 defined in such section) for all
proprietary institutions of higher
education;
(VII) the median educational debt
incurred by students who complete a
program at such a proprietary
institution of higher education;
(VIII) the median 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; and
(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.
(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)(A), 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. 6. FOR-PROFIT COLLEGE WARNING LIST FOR PARENTS AND STUDENTS.
(a) In General.--Each academic year, 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 engaged in illegal activity during the
previous academic year as determined by a Federal or State
court;
(2) that have entered into a settlement resulting in a
monetary payment;
(3) that have had any higher education program withdrawn or
suspended; or
(4) for which the Committee has sufficient evidence of
widespread or systemic unfair, deceptive, abusive, unethical,
fraudulent, or predatory practices, policies, or procedures
that pose a threat to the academic success, financial security,
or general best interest of students.
(b) Determinations.--In making a determination pursuant to
subsection (a)(4), the Committee may consider evidence that includes
the following:
(1) Any consumer complaint collected by any member entity
of the Committee.
(2) Any complaint filed by a Federal or State agency in a
Federal, State, local, or tribal court.
(3) Any administrative proceeding by a Federal or State
agency involving noncompliance of any applicable law or
regulation.
(4) 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.
(5) Data or information submitted by a proprietary
institution of higher education to any accrediting agency or
association recognized by the Secretary of Education pursuant
to section 496 of the Higher Education Act of 1965 (20 U.S.C.
1099b) or the findings or adverse actions of any such
accrediting agency or association.
(6) Information submitted by a proprietary institution of
higher education to any member entity of the Committee.
(7) Any other evidence that the Committee determines
relevant in making a determination pursuant to subsection
(a)(4).
(c) Publication.--Not later than July 1 of each fiscal year, the
Committee shall publish the list described in subsection (a)
prominently and in a manner that is easily accessible to parents,
students, and other stakeholders in accordance with any best practices
developed under section 3(b)(5).
<all>
Introduced in Senate
Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (text of measure as introduced: CR S2162-2164)
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