,,iib  #aacth ,,congress  #b;d ,session 
,h4 ,r4 #cacf  ,,in ,,the ,,senate ,,of 
,,the ,,united ,,states  ,july #bd1     
#bjad,received2 read twice and referred 
to the ,committee on ,health1           
,education1 ,labor1 and ,pensions  ,,an 
,,act  ,to establish a demonstration    
program for competency-based education4 
#a4 ,short title ,this ,act may be cited
 as the ,advancing ,competency-,based   
,education ,demonstration ,project ,act 
of #bjad4  #b4 ,competency-based        
education demonstration projects  7a7   
,projects ,part ,g of title ,,iv of the 
,higher ,education ,act of #aife 7#bj   
,u4,s4,c4 #ajhh et seq47 is amended by  
inserting after section #dhf;,a the     
following3  #dhf;,b4 ,competency-based  
education demonstration projects  7a7   
,demonstration projects authorized ,the 
,secretary shall select1 in accordance  
with subsection 7c71 eligible entities  
to voluntarily carry out                
competency-based education demonstration
 projects and receive waivers described 

in subsection 7d7 to carry out such     
projects4  7b7 ,application  7#a7 ,in   
general ,each eligible entity desiring  
to carry out a demonstration project    
under this section shall submit an      
application to the ,secretary1 at such  
time and in such manner as the          
,secretary may require4  7#b7 ,outreach 
,the ,secretary shall1 prior to any     
deadline to submit applications under   
paragraph 7#a71 conduct outreach to     
historically ,black colleges and        
universities1 ,hispanic-serving         
institutions1 ,native ,american-serving1
 nontribal institutions1 institutions   
serving students with special needs1 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 section4  7#c7 ,amendments   
7,a7 ,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 7#a71 at    
such time and in such manner as the     
,secretary may require1 which the       
,secretary shall approve or deny within 
#ae days of receipt4  7,b7 ,expanding   
enrollment ,notwithstanding the         
assurance required with respect to      
maximum enrollment under paragraph      
7#c77;,h7--  7i7 an eligible entity     
whose demonstration project has been    
evaluated under subsection 7f77#b7 not  
less than twice may submit to the       
,secretary an amendment to the eligible 
entity's application under paragraph    
7#a7 to increase enrollment in the      
project to more than #c1jjj students1   
but not more than #e1jjj students1 and  
which shall specify--  7,i7 the proposed
 maximum enrollment or annual enrollment
 growth for the project2  7,,ii7 how the
 eligible entity will successfully carry
 out the project with such maximum      
enrollment or enrollment growth2 and    
7,,iii7 any other amendments to the     

eligible entity's application under     
paragraph 7#a7 that are related to such 
maximum enrollment or enrollment growth2
 and  7ii7 the ,secretary shall         
determine whether to approve or deny an 
amendment submitted under clause 7i7 for
 a demonstration project based on the   
project's evaluations under subsection  
7f77#b74  7#d7 ,contents ,each          
application shall include--  7,a7 a     
description of the competency-based     
education to be offered by the eligible 
entity under the demonstration project2 
7,b7 a description of the proposed      
academic delivery1 business1 and        
financial models for the demonstration  
project1 including explanations of how  
competency-based education offered under
 the demonstration project would--  7i7 
result in the achievement of            
competencies2  7ii7 differ from standard
 credit hour approaches1 in whole or in 
part2 and  7iii7 result in lower costs  
or shortened time to degree1            
certificate1 or credential completion2  

7,c7 a description of how the           
competency-based education offered under
 the demonstration project will progress
 a student toward completion of a       
degree1 certificate1 or credential2     
7,d7 a description of how the eligible  
entity will articulate the transcript   
from the competency-based education     
demonstration project to another program
 within an institution of higher        
education that is part of the eligible  
entity or to another institution of     
higher education2  7,e7 a description of
 the statutory and regulatory           
requirements described in subsection 7d7
 for which the eligible entity is       
seeking a waiver1 and why such waiver is
 necessary to carry out the             
demonstration project2  7,f7 a          
description of how the eligible entity  
will develop and evaluate the           
competencies and assessments of student 
knowledge 7which may include            
prior-learning assessments7 administered
 as part of the demonstration project1  

including how such competencies and     
assessments are aligned with workforce  
needs2  7,g7 a description of the       
proposal for determining a student's    
,federal student aid eligibility under  
this title for participating in the     
demonstration project1 the award and    
distribution of such aid1 and safeguards
 to ensure that students are making     
satisfactory progress that warrants     
disbursement of such aid2  7,h7 a       
description of the students to whom     
competency-based education will be      
offered1 including an assurance that the
 demonstration project will enroll a    
minimum of #ej and a maximum of #c1jjj  
students2  7,i7 an assurance that       
students participating in the           
demonstration project will not be       
eligible for more ,federal assistance   
under this title than such students     
would have been eligible for under a    
traditional program2  7,j7 an assurance 
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        
section2 and  7,k7 ,a description of the
 population of students served by the   
eligible entity that are veterans or    
members of the ,armed ,forces and how   
such eligible entity will1 when         
appropriate1 incorporate the specific   
needs of such population when carrying  
out the demonstration project4  7c7     
,selection  7#a7 ,in general ,not later 
than #f months after the date of        
enactment of this section1 the          
,secretary shall select not more than   
#cj eligible entities to carry out a    
competency-based education demonstration
 project under this section4  7#b7      
,considerations ,in selecting eligible  
entities under paragraph 7#a71 the      
,secretary shall--  7,a7 prioritize     
projects which show promise in reducing 
the time or cost required to complete a 
degree1 certificate1 or credential2     
7,b7 consider the number and quality of 

applications received2  7,c7 consider an
 eligible entity's--  7i7 ability to    
successfully execute the demonstration  
project as described in the eligible    
entity's application under subsection   
7b72  7ii7 commitment and ability to    
effectively finance the demonstration   
project2  7iii7 ability to provide      
administrative capability and the       
expertise to evaluate student progress  
based on measures other than credit     
hours or clock hours2 and  7iv7         
commitment to work with the ,secretary  
to evaluate the demonstration project   
and the impact of the demonstration     
project2  7,d7 ensure the selection of a
 diverse group of eligible entities with
 respect to size1 mission1 and          
geographic distribution of the eligible 
entities2  7,e7 not limit the types of  
programs of study or courses of study   
approved for participation in a         
demonstration project2 and  7,f7 not    
select an eligible entity that has had1 
for #a of the preceding #b fiscal       

years--  7i7 a cohort default rate      
7defined in section #dce7m77 that is #cj
 percent or greater2 and  7ii7 a        
borrowing rate of loans under this title
 of more than #ej percent of the        
students enrolled at institutions of    
higher education of the eligible entity4
  7d7 ,waivers ,the ,secretary may waive
 for any eligible entity selected to    
carry out a demonstration project under 
this section any requirements of the    
following provisions of law 7including  
any regulations promulgated under such  
provisions7 or regulations and for which
 the eligible entity has provided a     
reason for waiving under subsection     
7b77#c77;,e73  7#a7 ,subparagraphs 7,a7 
and 7,b7 of section #ajb7;a77#c74  7#b7 
,subsections 7a7 and 7b7 of section     
#dha1 as such subsections relate to     
requirements for a minimum number of    
weeks of instruction4  7#c7 ,section    
#dhd7l77#a74  7#d7 ,section             
#ffh4cb7;a77#a77;iii7 of title #cd1     
,code of ,federal ,regulations4  7#e7   

,any of the requirements under          
provisions in title ,i1 part ,f of this 
title1 or this part1 that inhibit the   
operation of competency-based education1
 including requirements with respect    
to--  7,a7 documenting attendance2  7,b7
 weekly academic activity2  7,c7 minimum
 weeks of instructional time2  7,d7     
requirements for credit hour or clock   
hour equivalencies2  7,e7 requirements  
for substantive interaction with        
faculty2 and  7,f7 definitions of the   
terms academic year1 full-time student1 
term 7including standard term1 non-term1
 and non-standard term71 satisfactory   
academic progress1 educational activity1
 project of study1 and payment period4  
7e7 ,notification ,not later than #f    
months after the date of enactment of   
this section1 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        
section1 which shall include for each   

such eligible entity--  7#a7 the        
specific statutory and regulatory       
requirements being waived under         
subsection 7d72 and  7#b7 a description 
of the competency-based education       
programs of study or courses of study to
 be offered under the project4  7f7     
,information and evaluation  7#a7       
,information  7,a7 ,in general ,each    
eligible entity that carries out a      
demonstration project under this section
 shall provide to the ,director of the  
,institute of ,education ,sciences with 
respect to the students participating in
 the competency-based education project 
carried out by the eligible entity the  
following information3  7i7 ,the average
 number of credit hours the students    
earned prior to enrollment in the       
demonstration project1 if applicable4   
7ii7 ,the number and percentage of      
students participating in the           
demonstration project that are also     
enrolled in programs of study or courses
 of study offered in credit hours or    

clock hours1 disaggregated by student   
status as a first-year1 second-year1    
third-year1 fourth-year1 or other       
student4  7iii7 ,the average period of  
time between the enrollment of a student
 in the demonstration project and the   
first assessment of student knowledge of
 such student4  7iv7 ,the average time  
to #be percent1 #ej percent1 #ge        
percent1 and #ajj percent of the        
completion of a degree1 certificate1 or 
credential by a student who participated
 in the demonstration project4  7v7 ,the
 percentage of assessments of student   
knowledge that students passed on the   
first attempt1 during the period of the 
participation in the demonstration      
project by the students4  7vi7 ,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 by students1 during the period 
of the participation in the             
demonstration project by the students4  

7vii7 ,the average number of            
competencies a student acquired while   
participating in the demonstration      
project and the period of time during   
which the student acquired such         
competencies4  7viii7 ,such other       
information as the ,director may        
reasonably require4  7,b7 ,employment   
data  7i7 ,in general ,each eligible    
entity that carries out a demonstration 
project under this section may provide  
to the ,director of the ,institute of   
,education ,sciences with respect to the
 students participating in the          
competency-based education project      
carried out by the eligible entity the  
number and percentage of students       
completing a competency-based education 
program or course of study offered by   
such eligible entity who find employment
 in a field related to the program or   
course of study of such students4  7ii7 
,technical assistance ,the ,director of 
the ,institute of ,education ,sciences  
shall1 at the request of an eligible    

entity1 provide technical assistance to 
such eligible entity to assist such     
eligible entity in collecting and       
reporting accurate information relating 
to the employment of students           
participating in a competency-based     
education project carried out by such   
eligible entity4  7,c7 ,disaggregation  
,each eligible entity shall provide the 
information required under subparagraph 
7,a7 disaggregated by age1 race1 gender1
 disability status1 and status as a     
recipient of a ,federal ,pell ,grant1   
provided that the disaggregation of the 
information does not identify any       
individual student participating in the 
demonstration project4  7#b7 ,evaluation
 ,the ,director of the ,institute of    
,education ,sciences1 in consultation   
with the ,secretary1 shall annually     
evaluate each demonstration project     
under this section4 ,each evaluation    
shall include--  7,a7 the extent to     
which the eligible entity has met the   
goals set forth in its application to   

the ,secretary2  7,b7 the number and    
types of students participating in the  
competency-based education offered under
 the project1 including the progress of 
participating students toward completion
 of a degree1 certificate1 or           
credential1 and the extent to which     
participation and retention in such     
project increased2  7,c7 whether the    
project led to reduced cost or time to  
completion of a degree1 certificate1 or 
credential1 and the amount of cost or   
time reduced for such completion2  7,d7 
obstacles related to student financial  
assistance for competency-based         
education2  7,e7 the extent to which    
statutory or regulatory requirements not
 waived under subsection 7d7 present    
difficulties for students or            
institutions of higher education2  7,f7 
degree1 certificate1 or credential      
completion rates2  7,g7 retention rates2
  7,h7 total cost and net cost to the   
student of the competency-based         
education offered under the project2    

7,i7 a description of the assessments of
 student knowledge and the corresponding
 competencies2 and  7,j7 outcomes of the
 assessments of student knowledge4  7#c7
 ,annual report ,the ,director of the   
,institute of ,education ,sciences shall
 annually provide to the authorizing    
committees a report on--  7,a7 the      
evaluations of the demonstration        
projects required under paragraph 7#b72 
7,b7 the number and types of students   
receiving assistance under this title   
for competency-based education under    
such projects2  7,c7 the retention and  
completion rates of students            
participating in such projects2  7,d7   
any proposed statutory or regulatory    
changes designed to support and enhance 
the expansion of competency-based       
education1 which may be independent of  
or combined with traditional credit hour
 or clock hour projects2  7,e7 the most 
effective means of delivering           
competency-based education through      
demonstration projects2 and  7,f7 the   

appropriate level and distribution      
methodology of ,federal assistance under
 this title for students enrolled in    
competency-based education4  7g7        
,oversight ,in carrying out this        
section1 the ,secretary shall1 on a     
continuing basis--  7#a7 assure         
compliance of eligible entities with the
 requirements of this title 7other than 
the provisions of law and regulations   
that are waived under subsection 7d772  
7#b7 provide technical assistance2  7#c7
 monitor fluctuations in the student    
population enrolled in the eligible     
entities carrying out the demonstration 
projects under this section2  7#d7      
consult with appropriate accrediting    
agencies or associations and appropriate
 ,state regulatory authorities for      
additional ways of improving the        
delivery of competency-based education2 
and  7#e7 collect and disseminate to    
eligible entities carrying out a        
demonstration project under this        
section1 best practices with respect to 

demonstration projects under this       
section4  7h7 ,disclosure of            
authorization to sell student data ,an  
eligible entity carrying out a          
demonstration project under this section
 shall ensure that each institution of  
higher education of the eligible entity 
provides to each student1 or the parents
 of each minor student1 enrolled in the 
institution of higher education--  7#a7 
a disclosure letter1 which describes the
 personally identifiable information of 
the student that may be sold by a person
 with whom the institution of higher    
education has an agreement to provide   
software applications for students2 and 
7#b7 an option to opt-out of such       
personally identifiable information from
 being sold4  7i7 ,definitions ,for the 
purpose of this section3  7#a7          
,competency-based education ,the term   
competency-based education means an     
educational process or program that     
measures knowledge1 skills1 and         
experience through assessments of such  

knowledge1 skills1 or experience in     
place of or in addition to the use of   
credit hours or clock hours4  7#b7      
,eligible entity ,the term eligible     
entity means--  7,a7 an institution of  
higher education including an           
institution of higher education that    
offers a dual-enrollment program under  
which a secondary school student is able
 simultaneously to earn credit toward a 
secondary school diploma and a          
postsecondary degree1 certificate1 or   
credential2  7,b7 a system of           
institutions of higher education2 or    
7,c7 a consortium of institutions of    
higher education4  7#c7 ,institution of 
higher education ,the term institution  
of higher education has the meaning     
given the term in section #ajb1 except  
that such term does not include         
institutions described in section       
#ajb7;a77#a77;,c74  4  7b7 ,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 law4  7c7 ,report    
,the ,secretary of ,education shall     
report to ,congress1 every #aj years1 on
 the needs of limited ,english          
proficient students using the ,free     
,application for ,federal ,student ,aid4
  7d7 ,funding  7#a7 ,use of existing   
funds ,of the amount authorized to be   
appropriated for salaries and expenses  
of the ,department of ,education1       
#a1jjj1jjj shall be available to carry  
out this ,act and the amendments made by
 this ,act4  7#b7 ,no additional funds  
authorized ,no funds are authorized to  
be appropriated by this ,act to carry   
out this ,act or the amendments made by 
this ,act4  #c4 ,higher ,education      
,regulatory ,reform ,task ,force  7a7   
,task ,force established ,not later than
 #b months after the date of enactment  
of this ,act1 the ,secretary of         
,education shall establish the ,higher  
,education ,regulatory ,reform ,task    

,force4  7b7 ,membership ,the ,higher   
,education ,regulatory ,reform ,task    
,force shall include--  7#a7 the        
,secretary of ,education or the         
,secretary's designee2  7#b7 a          
representative of the ,advisory         
,committee on ,student ,financial       
,assistance established under section   
#dia of the ,higher ,education ,act of  
#aife 7#bj ,u4,s4,c4 #ajih72 and  7#c7  
representatives from the higher         
education community1 including--  7,a7  
institutions of higher education1 with  
equal representation of public and      
private nonprofit institutions1 and     
two-year and four-year institutions1 and
 with not less than #be percent of such 
representative institutions carrying out
 distance education programs2 and  7,b7 
nonprofit organizations representing    
institutions of higher education4  7c7  
,activities  7#a7 ,report required ,not 
later than #f months after the date of  
enactment of this ,act1 the ,secretary  
of ,education shall submit to ,congress 

and make available on a publicly        
available website a report 7in this     
section referred to as the ,higher      
,education ,regulatory ,reform ,report7 
prepared by the ,higher ,education      
,regulatory ,reform ,task ,force on     
,department of ,education regulatory    
requirements for institutions of higher 
education described in paragraph 7#b74  
7#b7 ,contents of report ,the ,higher   
,education ,regulatory ,reform ,report  
shall contain the following with respect
 to ,department of ,education regulatory
 requirements for institutions of higher
 education3  7,a7 ,a list of rules that 
are determined to be outmoded1          
duplicative1 ineffective1 or excessively
 burdensome4  7,b7 ,for each rule listed
 in accordance with subparagraph 7,a7   
and that is in effect at the time of the
 review under subparagraph 7,a71 an     
analysis of whether the costs outweigh  
the benefits for such rule4  7,c7       
,recommendations to consolidate1 modify1
 simplify1 or repeal such rules to make 

such rules more effective or less       
burdensome4  7,d7 ,a description of the 
justification for and impact of the     
recommendations described in            
subparagraph 7,c71 as appropriate and   
available1 including supporting data for
 such justifications and the financial  
impact of such recommendations on       
institutions of higher education of     
varying sizes and types4  7,e7          
,recommendations on the establishment of
 a permanent entity to review new       
,department of ,education regulatory    
requirements affecting institutions of  
higher education4  7#c7 ,notice and     
comment ,at least #cj days before       
submission of the ,higher ,education    
,regulatory ,reform ,report required    
under paragraph 7#a71 the ,secretary of 
,education shall publish the report in  
the ,federal ,register for public notice
 and comment4 ,the ,higher ,education   
,regulatory ,reform ,task ,force may    
modify the report in response to any    
comments received before submission of  

the report to ,congress4  7d7           
,definition of institution of higher    
education ,for the purposes of this     
section1 the term institution of higher 
education has the meaning given such    
term in section #ajb of the ,higher     
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajjb71 except that such term does not  
include institutions described in       
subsection 7a77#a77;,c7 of such section 
#ajb4  #d4 ,study on use of individual  
income tax returns as primary           
application for federal student aid     
,section #dhc of the ,higher ,education 
,act of #aife 7#bj ,u4,s4,c4 #ajij7 is  
amended by adding at the end the        
following new subsection3  7i7 ,study on
 use of individual income tax returns as
 primary application for federal student
 aid  7#d7 ,study ,the ,secretary of    
,education1 in consultation with the    
,commissioner of ,internal ,revenue1    
shall conduct a study on the feasibility
 and advantages and disadvantages of    
using individual income tax returns as  

the primary form of application for     
student aid under the ,higher ,education
 ,act of #aife 7#bj ,u4,s4,c4 #ajja et  
seq474  7#e7 ,report ,not later than one
 year after the date of the enactment of
 this subsection1 the ,secretary1 in    
consultation with the ,commissioner1    
shall submit to ,congress a report      
containing the results of the study     
conducted under subsection 7a74  4      
,passed the ,house of ,representatives  
,july #bc1 #bjad4,karen ,l4 ,haas1,clerk