Defines a week of instruction as one in which at least one day of instruction, examination preparation, or examination occurs, for purposes of determining an academic year for HEA student aid programs.
Prohibits higher education institutions participating in HEA student assistance programs from making any incentive, non-salary payment, based directly on success in securing enrollments or financial aid, to any person or entity directly engaged in student recruiting or admission activities, or making decisions regarding the award of student financial assistance. Exempts from such prohibition recruitment of foreign students not eligible to receive Federal student assistance.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1445 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 1445
To amend the Higher Education Act of 1965 to expand the opportunities
for higher education via telecommunications.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 21, 2001
Mr. Enzi (for himself, Mr. Dorgan, Mr. Frist, and Mr. Hutchinson)
introduced the following bill; which was read twice and referred to the
Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to expand the opportunities
for higher education via telecommunications.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Internet Equity and Education Act of
2001''.
SEC. 2. EXCEPTION TO 50 PERCENT CORRESPONDENCE COURSE LIMITATIONS.
(a) Definition of Institution of Higher Education for Title IV
Purposes.--Section 102(a) of the Higher Education Act of 1965 (20
U.S.C. 1002(a)) is amended by adding at the end the following:
``(7) Exception to limitation based on course of study.--
Courses offered via telecommunications (as defined in section
484(l)(4)) shall not be considered to be correspondence courses
for purposes of paragraph (3)(A) for any institution that--
``(A) is participating in either or both of the
loan programs under part B or D of title IV on the date
of enactment of the Internet Equity and Education Act
of 2001; and
``(B) has a cohort default rate (as determined
under section 435(m)) for each of the 3 most recent
fiscal years for which data are available that is less
than 10 percent.''.
(b) Definition of Eligible Student.--Section 484(l)(1) of the
Higher Education Act of 1965 (20 U.S.C. 1091(l)(1)) is amended by
adding at the end the following:
``(C) Exception to 50 percent limitation.--
Notwithstanding the 50 percent limitation in
subparagraph (A), a student enrolled in a course of
instruction described in such subparagraph shall not be
considered to be enrolled in correspondence courses if
the student is enrolled in an institution that--
``(i) is participating in either or both of
the loan programs under part B or D of title IV
on the date of enactment of the Internet Equity
and Education Act of 2001; and
``(ii) has a cohort default rate (as
determined under section 435(m)) for each of
the 3 most recent fiscal years for which data
are available that is less than 10 percent.''.
SEC. 3. DEFINITION OF ACADEMIC YEAR.
Section 481(a)(2) of the Higher Education Act of 1965 (20 U.S.C.
1088(a)(2)) is amended by inserting after the first sentence the
following: ``For purposes of any program under this title (whether a
standard or nonstandard term program), a ``week of instruction'' is
defined as a week in which at least 1 day of instruction, examination,
or preparation for examination occurs.''.
SEC. 4. INCENTIVE COMPENSATION.
(a) Amendment.--Part G of title IV of the Higher Education Act of
1965 (20 U.S.C. 1088 et seq.) is amended by inserting after section
484B (20 U.S.C. 1091b) the following:
``SEC. 484C. INCENTIVE COMPENSATION PROHIBITED.
``(a) Prohibition.--No institution of higher education
participating in a program under this title shall make any payment of a
commission, bonus, or other incentive, non-salary payment, based
directly on success in securing enrollments or financial aid, to any
person or entity directly engaged in student recruiting or admission
activities, or making decisions regarding the award of student
financial assistance, except that this section shall not apply to the
recruitment of foreign students residing in foreign countries who are
not eligible to receive Federal student assistance.
``(b) Exception.--Subsection (a) shall not apply to any contract
with any third-party service provider that has no control over
eligibility for admission or enrollment or the awarding of financial
aid at the institution of higher education, if no employee of the
third-party service provider is compensated solely on the basis of
student recruitment goals or objectives.
``(c) Definition of Salary.--For purposes of subsection (a), a
person shall be treated as receiving a salary (and not as receiving
incentive compensation) when such person receives a fixed compensation
that is paid regularly for services and that is adjusted no more
frequently than every 6 months.''.
(b) Conforming Amendment.--Paragraph (20) of section 487(a) of the
Higher Education Act of 1965 (20 U.S.C. 1094(a)(20)) is repealed.
(c) Technical Amendment.--Section 487(c)(1) of the Higher Education
Act of 1965 (20 U.S.C. 1094(c)(1)) is amended by striking ``paragraph
(2)(B)'' each place it appears in subparagraphs (F) and (H) and
inserting ``paragraph (3)(B)''.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S9624-9625)
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
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