,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #caab  ,,in ,,the ,,house ,,of  
,,representatives  ,june #e1 #bjai,ms4  
,waters introduced the following bill2  
which was referred to the ,committee on 
,education and ,labor1 and in addition  
to the ,committees on ,armed ,services1 
and ,veterans' ,affairs1 for a period to
 be subsequently determined by the      
,speaker1 in each case for consideration
 of such provisions as fall within the  
jurisdiction of the committee concerned 
,a ,,bill  ,to revise the #ij-aj rule   
under the ,higher ,education ,act of    
#aife1 and for other purposes4  #a4     
,short title ,this ,act may be cited as 
the ,for-,profit ,fraud ,act4  #b4      
#he_/ae ,rule ,section #dhg of the      
,higher ,education ,act of #aife 7#bj   
,u4,s4,c4 #ajid7 is amended--  7#a7 in  
subsection 7a77#bd7-- 7,a7 by striking  
,in the case and inserting3  7,a7 ,in   
the case  2  7,b7 by striking not less  
than ten percent of such institution's  
revenues from sources other than funds  

provided under this title and inserting 
not less than #ae percent of such       
institution's revenues from sources     
other than ,federal funds2 and  7,c7 by 
adding at the end the following3  7,b7  
,federal funds ,in this paragraph1 the  
term ,federal funds means any ,federal  
funds provided1 under this ,act or any  
other ,federal law1 through a grant1    
contract1 subsidy1 loan1 guarantee1     
insurance1 or other means to a          
proprietary institution1 including      
,federal funds disbursed or delivered to
 an institution or on behalf of a       
student or to a student to be used to   
attend the institution1 except that such
 term shall not include any monthly     
housing stipend provided under the      
,post-#i_/aa ,educational ,assistance   
,program under chapter #cc of title #ch1
 ,united ,states ,code4  2 and  7#b7 in 
subsection 7d7-- 7,a7 in the heading1 by
 amending the heading to read as        
follows3 ,implementation of revenue     
requirements for non-,federal education 

assistance funds2 and  7,b7 in paragraph
 7#b77;,a71 by inserting at the end the 
following3 ,the ,secretary of ,education
 shall notify the ,secretary of ,defense
 and the ,secretary of ,veterans        
,affairs when1 by reason of failing to  
meet a requirement of subsection        
7a77#bd71 a proprietary institution of  
higher education becomes ineligible to  
participate in the programs authorized  
by this title1 and when the institution 
regains such eligibility42  #c4         
,ineligibility of certain proprietary   
institutions of higher education to     
participate in ,department of ,defense  
or ,department ,of ,veterans ,affairs   
programs of educational assistance  7a7 
,department of ,defense  7#a7 ,in       
general ,chapter #aja of title #aj1     
,united ,states ,code1 is amended by    
inserting after section #bjjh the       
following new section3  #bjjh;a4        
,ineligibility of certain proprietary   
institutions of higher education to     
participate in ,department of ,defense  

programs of educational assistance ,upon
 notice from the ,secretary of          
,education under section                
#dhg7;d77#b77;,a7 of the ,higher        
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajid7;d77#b77;,a77 that a proprietary  
institution of higher education is      
ineligible to participate in the        
programs authorized by title ,,iv of    
such ,act 7#bj ,u4,s4,c4 #ajgj et seq471
 the ,secretary of ,defense shall ensure
 that no educational assistance provided
 by the ,secretary under this title or  
any other provision of law is available 
or used for education at the institution
 for the period of institutional fiscal 
years during which the institution      
remains ineligible to participate in the
 programs authorized by title ,,iv of   
the ,higher ,education ,act of #aife    
7#bj ,u4,s4,c4 #ajgj et seq474  4  7#b7 
,clerical amendment ,the table of       
sections at the beginning of chapter    
#aja of such title is amended by        
inserting after the item relating to    

section #bjjh the following new item3   
#bjjh;a4 ,ineligibility of certain      
proprietary institutions of higher      
education to participate in ,department 
of ,defense programs of educational     
assistance4  4  7b7 ,department of      
,veterans ,affairs  7#a7 ,in general    
,subchapter ,,ii of chapter #cf of title
 #ch1 ,united ,states ,code1 is amended 
by inserting after section #cfha the    
following new section3  #cfha;,a4       
,ineligibility of certain proprietary   
institutions of higher education to     
participate in ,department of ,veterans 
,affairs programs of educational        
assistance  7a7 ,in general ,upon notice
 from the ,secretary of ,education under
 section #dhg7;d77#b77;,a7 of the       
,higher ,education ,act of #aife 7#bj   
,u4,s4,c4 #ajid7;d77#b77;,a77 that a    
proprietary institution of higher       
education is ineligible to participate  
in the programs authorized by title ,,iv
 of such ,act 7#bj ,u4,s4,c4 #ajgj et   
seq471 the ,secretary of ,veterans      

,affairs shall ensure that no           
educational assistance provided by the  
,secretary under this title or any other
 provision of law is available or used  
for education at the institution for the
 period of institutional fiscal years   
during which the institution remains    
ineligible to participate in the        
programs authorized by title ,,iv of the
 ,higher ,education ,act of #aife 7#bj  
,u4,s4,c4 #ajgj et seq474  4  7#b7      
,clerical amendment ,the table of       
sections at the beginning of chapter #cf
 of such title is amended by inserting  
after the item relating to section #cfha
 the following new item3  #cfha;,a4     
,ineligibility of certain proprietary   
institutions of higher education to     
participate in ,department of ,veterans 
,affairs programs of educational        
assistance4  4