,i #aafth ,,congress #ast ,session ,h4 ,r4 #ccfi ,,in ,,the ,,house ,,of ,,representatives ,june #ai1 #bjai,ms4 ,shalala 7for herself1 ,ms4 ,wasserman ,schultz1 ,mr4 ,moulton1 ,mr4 ,cisneros1 ,ms4 ,houlahan1 ,ms4 ,mucarsel-,powell1 ,mr4 ,lujn1 and ,ms4 ,sherrill7 introduced the following bill2 which was referred to the ,committee on ,education and ,labor ,a ,,bill ,to close the ,,gi ,bill loophole and update the #hj_/bj rule for proprietary institutions of higher education4 #a4 ,short title ,this ,act may be cited as the ,defending ,all ,veterans ,in ,education ,act or the ,,davie ,act4 #b4 ,closing the ,,gi ,bill loophole and updating the #hj_/bj rule for proprietary institutions of higher education 7a7 ,in general ,section #ajb7;b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajjb7;b771 is further amended-- 7#a7 in paragraph 7#a7-- 7,a7 in subparagraph 7,d71 by striking and after the semicolon2 7,b7 in subparagraph 7,e71 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7,f7 meets the requirements of paragraph 7#b74 2 7#b7 by redesignating paragraph 7#b7 as paragraph 7#c72 and 7#c7 by inserting after paragraph 7#a7 the following3 7#b7 ,revenue sources 7,a7 ,in general ,in order to qualify as a proprietary institution of higher education under this subsection1 an institution shall derive not less than #bj percent of the institution's revenues from sources other than ,federal funds1 as calculated in accordance with subparagraphs 7,b7 and 7,c74 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 7,c7 ,implementation of non-,federal revenue requirement ,in making calculations under subparagraph 7,a71 an institution of higher education shall-- 7i7 use the cash basis of accounting2 7ii7 consider as revenue only those funds generated by the institution from-- 7,i7 tuition1 fees1 and other institutional charges for students enrolled in programs eligible for assistance under title ,,iv2 7,,ii7 activities conducted by the institution that are necessary for the education and training of the institution's students1 if such activities are-- 7aa7 conducted on campus or at a facility under the control of the institution2 7bb7 performed under the supervision of a member of the institution's faculty2 and 7cc7 required to be performed by all students in a specific educational program at the institution2 and 7,,iii7 a contractual arrangement with a ,federal agency for the purpose of providing job training to low-income individuals who are in need of such training2 7iii7 presume that any ,federal education assistance funds that are disbursed or delivered to an institution on behalf of a student or directly to a student will be used to pay the student's tuition1 fees1 or other institutional charges1 regardless of whether the institution credits such funds to the student's account or pays such funds directly to the student1 except to the extent that the student's tuition1 fees1 or other institutional charges are satisfied by-- 7,i7 grant funds provided by an outside source that-- 7aa7 has no affiliation with the institution2 and 7bb7 shares no employees1 executives1 or board members with the institution2 7,,ii7 funds provided under a contractual arrangement with a ,federal1 ,state1 or local government agency for the purpose of providing job training to low-income individuals who are in need of that training2 or 7,,iii7 institutional scholarships described in clause 7v72 7iv7 include no loans made by an institution of higher education as revenue to the school1 except for payments made by students on such loans2 7v7 include a scholarship provided by the institution-- 7,i7 only if the scholarship is in the form of monetary aid based upon the academic achievements or financial need of students1 disbursed to qualified student recipients during each fiscal year from an established restricted account2 and 7,,ii7 only to the extent that funds in that account represent designated funds1 or income earned on such funds1 from an outside source that-- 7aa7 has no affiliation with the institution2 and 7bb7 shares no employees1 executives1 or board members with the institution2 and 7vi7 exclude from revenues-- 7,i7 the amount of funds the institution received under part ,c of title ,,iv1 unless the institution used those funds to pay a student's institutional charges2 7,,ii7 the amount of funds the institution received under subpart #d of part ,a of title ,,iv2 7,,iii7 the amount of funds provided by the institution as matching funds for any ,federal program2 7,,iv7 the amount of ,federal education assistance funds provided to the institution to pay institutional charges for a student that were refunded or returned2 and 7,v7 the amount charged for books1 supplies1 and equipment1 unless the institution includes that amount as tuition1 fees1 or other institutional charges4 7,d7 ,report to congress ,not later than ,july #a1 #bjbj1 and by ,july #a of each succeeding year1 the ,secretary shall submit to the authorizing committees a report that contains1 for each proprietary institution of higher education that receives assistance under title ,,iv and as provided in the audited financial statements submitted to the ,secretary by each institution pursuant to the requirements of section #dhg7;c7-- 7i7 the amount and percentage of such institution's revenues received from ,federal education assistance funds2 and 7ii7 the amount and percentage of such institution's revenues received from other sources4 4 7b7 ,repeal of existing requirements ,section #dhg of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7 is amended-- 7#a7 in subsection 7a7-- 7,a7 by striking paragraph 7#bd72 7,b7 by redesignating paragraphs 7#be7 through 7#bi7 as paragraphs 7#bd7 through 7#bh71 respectively2 7,c7 in paragraph 7#bd77;,a77ii7 7as redesignated by subparagraph 7,b771 by striking subsection 7e7 and inserting subsection 7d72 and 7,d7 in paragraph 7#bf7 7as redesignated by subparagraph 7,b771 by striking subsection 7h7 and inserting subsection 7g72 7#b7 by striking subsection 7d72 7#c7 by redesignating subsections 7e7 through 7j7 as subsections 7d7 through 7i71 respectively2 7#d7 in subsection 7d7 7as redesignated by paragraph 7#c771 by striking 7a77#be7 and inserting 7a77#bd72 7#e7 in subsection 7f77#a7 7as redesignated by paragraph 7#c771 by striking subsection 7e77#b7 and inserting subsection 7d77#b72 and 7#f7 in subsection 7g77#a7 7as redesignated by paragraph 7#c771 by striking subsection 7a77#bg7 in the matter preceding subparagraph 7,a7 and inserting subsection 7a77#bf74 7c7 ,conforming amendments ,the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja et seq47 is amended-- 7#a7 in section #aeb 7#bj ,u4,s4,c4 #ajai;a7-- 7,a7 in subsection 7a77#a77;,a71 by striking subsections 7a77#bg7 and 7h7 of section #dhg and inserting subsections 7a77#bf7 and 7g7 of section #dhg2 and 7,b7 in subsection 7b77#a77;,b77i77,i71 by striking section #dhg7;e7 and inserting section #dhg7;d72 7#b7 in section #aec7;c77#c7 7#bj ,u4,s4,c4 #ajai;b7c77#c771 by striking section #dhg7;a77#be7 each place the term appears and inserting section #dhg7;a77#bd72 7#c7 in section #dif7;c77#c77;,a7 7#bj ,u4,s4,c4 #ajii;b7c77#c77;,a771 by striking section #dhg7;f7 and inserting section #dhg7;e72 and 7#d7 in section #dih7k77#a7 7#bj ,u4,s4,c4 #ajii;c7k77#a771 by striking section #dhg7;f7 and inserting section #dhg7;e74 #c4 ,effective date ,the amendments made by section #b shall take effect one year after the date of the enactment of this ,act4