,,ii  #aah? ,,congress  #b;d ,session   
,s4 #dgja  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #aa 7legislative 
day1 ,july #aj71 #bjbd,mr4 ,durb9       
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,heal?1 ,education1 ,labor1 & ,p5sions  
,a ,,bill  ,to am5d ! ,high] ,education 
,act ( #aife reg>d+ propriet>y          
in/itutions ( high] education 9 ord] to 
protect /ud5ts & taxpay]s4  #a4 ,%ort   
title ,?is ,act may be cit$ z !         
,protect+ ,our ,/ud5ts & ,taxpay]s ,act 
( #bjbd or ,,po/ ,act ( #bjbd4  #b4     
#he_/ae rule  7a7 ,9 g5]al ,section     
#ajb7;b7 ( ! ,high] ,education ,act (   
#aife 7#bj ,u4,s4,c4 #ajjb7;b77 is      
am5d$-- 7#a7 9 p>agraph 7#a7-- 7,a7 9   
subp>agraph 7,d71 by /rik+ & aft] !     
semicolon2  7,b7 9 subp>agraph 7,e71 by 
/rik+ ! p]iod at ! end & ins]t+ 2 &2 &  
7,c7 by add+ at ! end ! foll[+3  7,f7   
meets ! requirem5ts ( p>agraph 7#b74  2 
7#b7 by r$esignat+ p>agraph 7#b7 z      
p>agraph 7#c72 &  7#c7 by ins]t+ aft]   

p>agraph 7#a7 ! foll[+3  7#b7 ,rev5ue   
s\rces  7,a7 ,def9itions ,9 ?is         
p>agraph3 7i7 ,alt]native f9anc+        
arrangem5t ,! t]m alt]native f9anc+     
agreem5t means a f9anc+ agreem5t        
betwe5-- 7,i7 a /ud5t ( an in/itution2 &
  7,,ii7 7aa7 ! in/itution2  7bb7 any   
entity or individual-- 7,,aa7 9 !       
in/itution's own]%ip tree2 or 7,,bb7 )  
any common own]%ip ( ! in/itution & !   
entity provid+ ! funds2 or  7cc7 7,,aa7 
an entity t has any o!r relation%ip or  
agreem5t ) ! in/itution2 or 7,,bb7 an   
entity ) common own]%ip ) an entity     
describ$ 9 subitem 7,,aa74  7ii7 ,f$]al 
education assi/ance funds ,! t]m ,f$]al 
education assi/ance funds means ,f$]al  
funds t are disburs$ or deliv]$ to or on
 behalf ( a /ud5t to be us$ to att5d su*
 in/itution1 z calculat$ "u subp>agraph 
7,c74  7,b7 #he_/ae rule ,9 ord] to     
qualify z a propriet>y in/itution (     
high] education "u ?is subsection1 an   
in/itution %all d]ive n less ?an #ae    
p]c5t ( ! in/itution's rev5ues f s\rces 

o!r ?an ,f$]al education assi/ance      
funds1 z calculat$ 9 accordance )       
subp>agraphs 7,a7 & 7,c74  7,c7         
,implem5tation ( non-,f$]al rev5ue      
requirem5t ,9 mak+ calculations "u      
subp>agraph 7,b71 an in/itution ( high] 
education %all-- 7i7 use ! ca% basis (  
acc\nt+2  7ii7 consid] z rev5ue only ^? 
funds g5]at$ by ! in/itution f-- 7,i7   
tuition1 fees1 & o!r in/itutional *>ges 
= /ud5ts enroll$ 9 programs eligible =  
assi/ance "u title ,,iv2  7,,ii7        
activities conduct$ by ! in/itution t   
are necess>y = ! education & tra9+ ( !  
in/itution's /ud5ts1 if su* activities  
are-- 7aa7 conduct$ on campus or at a   
facility "u ! control ( ! in/itution2   
7bb7 p]=m$ "u ! sup]vision ( a memb] ( !
 in/itution's faculty2  7cc7 requir$ to 
be p]=m$ by all /ud5ts 9 a specific     
educational program at ! in/itution2 &  
7dd7 relat$ directly to s]vices p]=m$ by
 /ud5ts2  7,,iii7 a contractual         
arrangem5t ) a ,f$]al ag5cy = ! purpose 
( provid+ job tra9+ to l[-income        

individuals :o are 9 ne$ ( su* tra9+2 & 
7,,iv7 funds paid by a /ud5t1 or on     
behalf ( a /ud5t by a p>ty unrelat$ to !
 in/itution1 its own]s1 or affiliates1 =
 an education or tra9+ program t is n   
eligible = assi/ance "u title ,,iv1 z   
long z-- 7aa7 su* noneligible program   
does n include any c\rses (f]$ 9 an     
eligible program ( ! propriet>y         
in/itution2  7bb7 su* noneligible       
program is provid$ by ! in/itution1 &   
taught by an in/ructor ( ! in/itution1  
at-- 7,,aa7 its ma9 campus or "o ( its  
additional locations1 z approv$ by !    
appropriate accr$it+ ag5cy or           
association2 7,,bb7 ano!r s*ool facility
 approv$ by ! appropriate ,/ate ag5cy or
 accr$it+ ag5cy or association2 or      
7,,cc7 an employ] facility2 &  7cc7 su* 
noneligible program is n a program :]e !
 in/itution is m]ely provid+ facilities 
= te/ prep>ation c\rses1 act+ z a       
proctor1 or ov]see+ a c\rse ( self-/udy2
  7iii7 presume t any ,f$]al education  
assi/ance funds t are disburs$ or       

deliv]$ to an in/itution on behalf ( a  
/ud5t or directly to a /ud5t w be us$ to
 pay ! /ud5t's tuition1 fees1 or o!r    
in/itutional *>ges1 reg>dless ( :e!r !  
in/itution cr$its su* funds to ! /ud5t's
 acc\nt or pays su* funds directly to ! 
/ud5t1 except to ! ext5t t ! /ud5t's    
tuition1 fees1 or o!r in/itutional *>ges
 are satisfi$ by-- 7,i7 grant funds     
provid$ by an outside s\rce t-- 7aa7 has
 no affiliation ) ! in/itution2 &  7bb7 
%>es no employees1 executives1 or bo>d  
memb]s ) ! in/itution2 &  7,,ii7        
in/itutional s*ol>%ips describ$ 9 clause
 7vi72  7iv7 include no loans made by an
 in/itution ( high] education z rev5ue  
to ! s*ool1 except = paym5ts made by    
curr5t or =m] /ud5ts to ! in/itution    
dur+ ! fiscal ye> = :i* ! det]m9ation is
 be+ made on su* loans t are-- 7,i7 us$ 
to satisfy tuition1 fees1 & o!r         
in/itutional *>ges2  7,,ii7 bona fide1 z
 evid5c$ by /&alone repaym5t agreem5ts  
betwe5 ! /ud5ts & ! in/itution t are    
en=ceable promissory notes2  7,,iii7    

issu$ at int]vals relat$ to !           
in/itution's enrollm5t p]iods2  7,,iv7  
subject to regul> loan repaym5ts &      
collections by ! in/itution2 &  7,v7    
sep>ate f ! enrollm5t contracts sign$ by
 ! /ud5ts2  7v7 include funds f an      
income %>e agreem5t1 or any o!r         
alt]native f9anc+ agreem5t1 ) a /ud5t   
only if-- 7,i7 ! in/itution cle>ly      
id5tifies ! /ud5t's in/itutional *>ges1 
& su* *>ges are ! same or less ?an !    
/at$ rate = in/itutional *>ges2  7,,ii7 
! agreem5t cle>ly id5tifies ! maximum "t
 & maximum am\nt a /ud5t w\ld be requir$
 to pay1 includ+ ! impli$ or imput$     
int]e/ rate & any fees & rev5ue g5]at$ =
 a relat$ ?ird p>ty1 ! in/itution1 or an
 entity describ$ 9 subp>agraph          
7,a77i77,,ii71 = t maximum "t p]iod2 &  
7,,iii7 all paym5ts "u ! agreem5t are   
appli$ ) a portion allocat$ to ! return 
( capital & a portion allocat$ to pr(it1
 ) rev5ue1 int]e/1 & fees n includ$ 9 ! 
calculation2  7vi7 include a s*ol>%ip   
provid$ by ! in/itution-- 7,i7 only if !

 s*ol>%ip is 9 ! =m ( monet>y aid bas$  
^u ! academic a*ievem5ts or f9ancial ne$
 ( /ud5ts1 disburs$ to qualifi$ /ud5t   
recipi5ts dur+ ea* fiscal ye> f an      
e/abli%$ re/rict$ acc\nt2 &  7,,ii7 only
 to ! ext5t t funds 9 t acc\nt repres5t 
designat$ funds1 or income e>n$ on su*  
funds1 f an outside s\rce t-- 7aa7 has  
no affiliation ) ! in/itution2 &  7bb7  
%>es no employees1 executives1 or bo>d  
memb]s ) ! in/itution2 &  7vii7 exclude 
f rev5ues-- 7,i7 ! am\nt ( funds !      
in/itution receiv$ "u "p ,c ( title     
,,iv1 unless ! in/itution us$ ^? funds  
to pay a /ud5t's in/itutional *>ges2    
7,,ii7 ! am\nt ( funds ! in/itution     
receiv$ "u subp>t #d ( "p ,a ( title    
,,iv2  7,,iii7 ! am\nt ( funds provid$  
by ! in/itution z mat*+ funds = any     
,f$]al program2  7,,iv7 ! am\nt ( ,f$]al
 education assi/ance funds provid$ to ! 
in/itution to pay in/itutional *>ges = a
 /ud5t t 7 refund$ or return$2 &  7,v7 !
 am\nt *>g$ = books1 supplies1 &        
equipm5t1 unless ! in/itution includes t

 am\nt z tuition1 fees1 or o!r          
in/itutional *>ges4  7,d7 ,rega9+       
eligibility ,not)/&+ subp>agraph 7,b71 a
 propriet>y in/itution ( high] education
 t fails to meet ! requirem5ts ( su*    
subp>agraph = a fiscal ye> %all be      
ineligible = purposes ( ?is p>agraph = a
 p]iod ( n less ?an #b in/itutional     
fiscal ye>s4 ,to rega9 eligibility "u   
?is p>agraph1 ! propriet>y in/itution   
%all demon/rate compliance ) all        
eligibility & c]tification requirem5ts  
"u section #dih = a m9imum ( #b         
in/itutional fiscal ye>s aft] !         
in/itutional fiscal ye> 9 :i* !         
in/itution became ineligible4  7,e7     
,report to congress ,n lat] ?an ,july   
#a1 #bjbf1 & by ,july #a ( ea* succe$+  
ye>1 ! ,secret>y %all submit to !       
au?oriz+ committees a report t conta9s1 
= ea* propriet>y in/itution ( high]     
education t receives assi/ance "u title 
,,iv & z provid$ 9 ! audit$ f9ancial    
/atem5ts submitt$ to ! ,secret>y by ea* 
in/itution pursuant to ! requirem5ts (  

section #dhg7;c7-- 7i7 ! am\nt &        
p]c5tage ( su* in/itution's rev5ues     
receiv$ f ,f$]al education assi/ance    
funds2 &  7ii7 ! am\nt & p]c5tage ( su* 
in/itution's rev5ues receiv$ f o!r      
s\rces4  4  7b7 ,repeal ( exi/+         
requirem5ts ,section #dhg ( ! ,high]    
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajid7 is am5d$-- 7#a7 9 subsection     
7a7-- 7,a7 by /rik+ p>agraph 7#bd72     
7,b7 by r$esignat+ p>agraphs 7#be7 ?r\gh
 7#bi7 z p>agraphs 7#bd7 ?r\gh 7#bh71   
respectively2  7,c7 9 p>agraph          
7#bd77;,a77ii7 7z r$esignat$ by         
subp>agraph 7,b771 by /rik+ subsection  
7e7 & ins]t+ subsection 7d72 &  7,d7 9  
p>agraph 7#bf7 7z r$esignat$ by         
subp>agraph 7,b771 by /rik+ subsection  
7h7 & ins]t+ subsection 7g72  7#b7 by   
/rik+ subsection 7d72  7#c7 by          
r$esignat+ subsections 7e7 ?r\gh 7j7 z  
subsections 7d7 ?r\gh 7i71 respectively2
  7#d7 9 ! matt] prec$+ p>agraph 7#a7 ( 
subsection 7d7 7z r$esignat$ by p>agraph
 7#c771 by /rik+ 7a77#be7 & ins]t+      

7a77#bd72  7#e7 9 subsection 7f77#a7 7z 
r$esignat$ by p>agraph 7#c771 by /rik+  
subsection 7e77#b7 & ins]t+ subsection  
7d77#b72 &  7#f7 9 subsection 7g77#a7 7z
 r$esignat$ by p>agraph 7#c771 by /rik+ 
subsection 7a77#bg7 9 ! matt] prec$+    
subp>agraph 7,a7 & ins]t+ subsection    
7a77#bf74  7c7 ,con=m+ am5dm5ts ,!      
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajja et seq47 is am5d$-- 7#a7
 9 section #aeb 7#bj ,u4,s4,c4          
#ajai;a7-- 7,a7 9 subsection            
7a77#a77;,a71 by /rik+ subsections      
7a77#bg7 & 7h7 ( section #dhg & ins]t+  
subsections 7a77#bf7 & 7g7 ( section    
#dhg2 &  7,b7 9 subsection              
7b77#a77;,b77i77,i71 by /rik+ section   
#dhg7;e7 & ins]t+ section #dhg7;d72     
7#b7 9 section #aec7;c77#c7 7#bj        
,u4,s4,c4 #ajai;b7c77#c771 by /rik+     
section #dhg7;a77#be7 ea* place ! t]m   
appe>s & ins]t+ section #dhg7;a77#bd72  
7#c7 9 section #dif7;c77#c77;,a7 7#bj   
,u4,s4,c4 #ajii;b7c77#c77;,a771 by /rik+
 section #dhg7;f7 & ins]t+ section      

#dhg7;e72 &  7#d7 9 section #dih7k77#a7 
7#bj ,u4,s4,c4 #ajii;c7k77#a771 by /rik+
 section #dhg7;f7 & ins]t+ section      
#dhg7;e74  #c4 ,effective date ,!       
am5dm5ts made by ?is ,act %all take     
effect on ,july #a1 #bjbe4