Higher Education Student Protection Act

I 116TH CONGRESS 1ST SESSION H. R. 4475 To amend the Higher Education Act of 1965 to determine the expenditures of an institution of higher education on instruction, student services, marketing, recruitment, advertising, and lobbying, and for other pur- poses. IN THE HOUSE OF REPRESENTATIVES SEPTEMBER 24, 2019 Mr. MALINOWSKI introduced the following bill; which was referred to the Committee on Education and Labor A BILL To amend the Higher Education Act of 1965 to determine the expenditures of an institution of higher education on instruction, student services, marketing, recruitment, advertising, and lobbying, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Higher Education Stu- 4 dent Protection Act’’. 5 VerDate Sep 11 2014 00:41 Sep 28, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4475.IH H4475 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 4475 IH SEC. 2. INSTITUTIONAL EXPENDITURES. 1 (a) CONSUMER INFORMATION.—Section 132(i)(1) of 2 the Higher Education Act of 1965 (20 U.S.C. 3 1015a(i)(1)) is amended by adding at the end: 4 ‘‘(AA) The institution’s expenditures on in- 5 struction, student services, marketing, recruit- 6 ment, advertising, and lobbying.’’. 7 (b) RESTRICTIONS ON CERTAIN EXPENDITURES.— 8 Part G of title IV of the Higher Education Act of 1965 9 is amended by adding at the end the following: 10 ‘‘SEC. 498E. RESTRICTIONS ON CERTAIN EXPENDITURES. 11 ‘‘(a) ESTABLISHING DEFINITIONS.— 12 ‘‘(1) IN GENERAL.—For purposes of each sur- 13 vey conducted under the Integrated Postsecondary 14 Education Data System after the date of enactment 15 of the Higher Education Student Protection Act and 16 this Act, the Secretary shall define the following 17 terms: 18 ‘‘(A) Marketing. 19 ‘‘(B) Recruitment. 20 ‘‘(C) Advertising. 21 ‘‘(D) Lobbying. 22 ‘‘(E) Student services. 23 ‘‘(2) EXCLUSION OF CERTAIN ACTIVITIES.—In 24 defining the term ‘student services’ under paragraph 25 (1)(E), the Secretary shall ensure that such term 26 VerDate Sep 11 2014 00:41 Sep 28, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4475.IH H4475 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 4475 IH does not include marketing, recruitment, advertising, 1 or lobbying. 2 ‘‘(b) LIMITATION ON EXPENDITURES.—In a case in 3 which the Secretary determines with respect to an institu- 4 tion of higher education participating in any program 5 under this title that, for any of the 3 most recent institu- 6 tional fiscal years for which the institution submits to the 7 Secretary disclosures on the expenditures of the institution 8 on instruction, the amount expended by such institution 9 on instruction for such fiscal year is less than an amount 10 equal to 1/3 of institution’s revenues derived from tuition 11 and fees— 12 ‘‘(1) for any institutional fiscal year after such 13 determination is made, the sum of the amount ex- 14 pended by the institution on marketing, recruitment, 15 advertising, and lobbying may not exceed the 16 amount of the institution’s revenues derived from 17 sources other than Federal education assistance 18 funds; and 19 ‘‘(2) in a case in which the institution fails to 20 meet the requirements of paragraph (1) for 2 con- 21 secutive institutional fiscal years, the institution 22 shall be ineligible to participate in the programs au- 23 thorized by this title for a period of not less than 24 two institutional fiscal years. 25 VerDate Sep 11 2014 00:41 Sep 28, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4475.IH H4475 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 4475 IH ‘‘(c) PUBLICATION ON WEBSITE.—The Secretary 1 shall, on an annual basis, publicly disclose on the Depart- 2 ment’s website, information with respect to any institution 3 of higher education that is subject to the requirements of 4 subsection (b)(1), including— 5 ‘‘(1) the quotient of the amount that the insti- 6 tution expends on instruction for purposes of section 7 132(i)(1)(AA) divided by the institution’s revenues 8 derived from tuition and fees, expressed as a per- 9 centage; 10 ‘‘(2) the sum of such institution’s expenditures 11 on advertising, recruiting, marketing, and lobbying; 12 ‘‘(3) the amount of such institution’s revenues 13 received from sources outside of Federal education 14 assistance funds; and 15 ‘‘(4) the difference between paragraphs (2) and 16 (3).’’. 17 Æ VerDate Sep 11 2014 00:41 Sep 28, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H4475.IH H4475 pamtmann on DSKBC07HB2PROD with BILLS