S 2342 — Innovation Zone Act

Summary

Innovation Zone Act This bill amends the Higher Education Act of 1965 to replace the Experimental Sites Initiative of the Department of Education (ED) with an innovation zone initiative consisting of voluntary experiments by participating institutions of higher education. Under the experiments, ED and the institutions may test the effectiveness of statutory and regulatory flexibility that aims for: (1) an increase in student success (e.g., reductions in student loan debt and increases in student retention and job placement rates); and (2) a reduction of regulations on institutions or ED, without harm to students.

Bill Text

• Introduced Introduced in Senate Current html January 25, 2018

From the bill's own amending language, matched to the official United States Code (current through Public Law 119-121).

Also cites: 44 U.S.C. § 3507

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill creates an 'Innovation Zone Initiative' under the Higher Education Act, replacing the existing Quality Assurance Program framework.

• 20 U.S.C. 1094a

  The Secretary is authorized to select institutions for voluntary participation in a Quality Assurance Program that provides participating institutions with an alternative management approach through which individual schools develop and implement their own comprehensive systems, related to processing and disbursement of student financial aid, verification of student financial aid application data, and entrance and exit interviews, thereby enhancing program integrity within the student aid delivery system. → The Secretary is authorized to establish an innovation zone initiative consisting of voluntary experiments under which the Secretary and institutions of higher education are permitted to test the effectiveness of statutory and regulatory flexibility that aims to achieve the following outcomes: (A) Increase in student success, which may be defined as one or more of the following: (i) Reduction in student loan debt. (ii) Increase in student retention and program completion at institutions of higher education. (iii) Increase in student job placement rate upon graduation. (iv) Improved financial aid disbursement and service to students. (v) Increase in student safety, wellness, or food and housing security. (vi) Other innovative practices that benefit students.

  Replaces the Quality Assurance Program with the Innovation Zone Initiative focused on experimental flexibility in higher education administration.

• 20 U.S.C. 1094a

  The Quality Assurance Program authorized by this section shall be based on criteria that include demonstrated institutional performance, as determined by the Secretary, and shall take into consideration current quality assurance goals, as determined by the Secretary. The selection criteria shall ensure the participation of a diverse group of institutions of higher education with respect to size, mission, and geographical distribution. → The Secretary shall base any such selection on the following: (A) Sufficient interest in the experiment among institutions of higher education, researchers, and practitioners. (B) Promising evidence of fulfilling outcomes described in subsection (a)(1). (C) Other general interest, as supported by evidence.

  Modifies selection criteria from focusing on quality assurance to evaluating experiments based on interest and evidence of potential success.

• 20 U.S.C. 1094a

  The Secretary is authorized to waive for any institution participating in the Quality Assurance Program any regulations dealing with reporting or verification requirements in this subchapter that are addressed by the institution’s alternative management system, and may substitute such quality assurance reporting as the Secretary determines necessary to ensure accountability and compliance with the purposes of the programs under this subchapter. → The Secretary is authorized to waive, for any institution of higher education participating in an innovation zone experiment under paragraph (1), one or more requirements of title I or IV.

  Broadens the scope of waivers that the Secretary can grant under the new initiative compared to the existing program.

• 20 U.S.C. 1094a

  The Secretary shall review and evaluate the Quality Assurance Program conducted by each participating institution and, on the basis of that evaluation, make recommendations regarding amendments to this chapter that will streamline the administration and enhance the integrity of Federal student assistance programs. Such recommendations shall be submitted to the authorizing committees. → The Secretary shall-- (i) review and evaluate the experience of all institutions participating in each experiment carried out under this section; and (ii) beginning 2 years after the date of enactment of the Innovation Zone Act, and every 2 years thereafter-- (I) prepare and submit a report regarding the innovation zone initiative under this section to the authorizing committees; and (II) post the report on the public website of the Department.

  Changes the focus of the Secretary's review from the Quality Assurance Program to the ongoing evaluation of experiments under the Innovation Zone Initiative, instituting regular reporting.

• 20 U.S.C. 1094a

  Notwithstanding section 3507 of title 44, United States Code, the Secretary shall be deemed to have the authority to approve, for purposes of such section 3507, any proposed collection of information related to an experiment conducted under this section, in the same manner and to the same extent as such authority is provided to a senior official by the Director of the Office of Management and Budget under section 3507(i) of such title.

  Grants the Secretary authority to expedite information collection for experiments without typical constraints under existing law.

Action History

1. January 25, 2018

   Introduced in Senate

2. January 25, 2018

   Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Sponsors

• Todd Young · Primary

Subjects