SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Promoting Readiness through Early 
Pell Act of 2016'' or the ``PREP Act of 2016''.

SEC. 2. FEDERAL PELL GRANTS FOR STUDENTS DUALLY OR CONCURRENTLY 
              ENROLLED AT AN ELIGIBLE INSTITUTION THAT IS A PUBLIC 
              INSTITUTION OF HIGHER EDUCATION AND A SECONDARY SCHOOL.

    (a) Amount and Determinations of Federal Pell Grants.--Section 401 
of the Higher Education Act of 1965 (20 U.S.C. 1070a) is amended--
            (1) in subsection (a), by inserting ``or is dually or 
        concurrently enrolled at an eligible institution that is a 
        public institution of higher education and a secondary 
        school,'' after ``undergraduate,''; and
            (2) in subsection (c)--
                    (A) in paragraph (1), by inserting ``, or the 
                period in which the student is dually or concurrently 
                enrolled at an eligible institution that is a public 
                institution of higher education and a secondary 
                school,'' after ``at which the student is in 
                attendance''; and
                    (B) in paragraph (4)--
                            (i) by amending subparagraph (A) to read as 
                        follows:
            ``(A) is--
                    ``(i) carrying at least one-half the normal full-
                time work load for the course of study the student is 
                pursuing, as determined by the institution of higher 
                education; and
                    ``(ii) enrolled or accepted for enrollment in a 
                postbaccalaureate program that does not lead to a 
                graduate degree and courses required by a State in 
                order for the student to receive a professional 
                certification or licensing credential that is required 
                for employment as a teacher in an elementary school or 
                secondary school in that State; or'';
                            (ii) by amending subparagraph (B) to read 
                        as follows:
            ``(B) demonstrates evidence of a credible disruption or 
        redirection in course of study necessitating additional time to 
        complete--
                    ``(i) a postsecondary degree; or
                    ``(ii) a recognized postsecondary credential, as 
                the term is defined in section 3 of the Workforce 
                Innovation and Opportunity Act (29 U.S.C. 3102),''; and
                            (iii) in the undesignated matter at the 
                        end, by striking ``except that this paragraph'' 
                        and inserting ``except that subparagraph (A)''.
    (b) Student Eligibility.--Section 484 of the Higher Education Act 
of 1965 (20 U.S.C. 1091) is amended--
            (1) in subsection (a)(1), by inserting ``, except as 
        provided in subsection (d)(2)'' after ``secondary school''; and
            (2) in subsection (d)--
                    (A) by redesignating paragraph (2) as paragraph 
                (3); and
                    (B) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) Student eligibility for federal pell grants.--In 
        order for a student who does not have a certificate of 
        graduation from a school providing secondary education, or the 
        recognized equivalent of such certificate, and who does not 
        meet one of the requirements under paragraph (1), to be 
        eligible for assistance under subpart 1 of part A of this 
        title, the student shall be dually or concurrently enrolled at 
        an eligible institution that is a public institution of higher 
        education and a secondary school.''.

SEC. 3. NON-FEDERAL FUNDS FOR DUAL OR CONCURRENT ENROLLMENT PROGRAMS.

    (a) In General.--Subpart 2 of part F of title VIII of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7901 et seq.) 
is amended by adding at the end the following new section:

``SEC. 8549D. NON-FEDERAL FUNDS FOR DUAL OR CONCURRENT ENROLLMENT 
              PROGRAMS.

    ``As a condition of receiving funds under this Act, with respect to 
a State educational agency or local educational agency offering a dual 
or concurrent enrollment program in partnership with an institution of 
higher education and in which a student is receiving a Federal Pell 
Grant under subpart 1 of part A of title IV of the Higher Education Act 
of 1965 (20 U.S.C. 1070a et seq.) to enroll in such institution as a 
participant in such program, such agency may not reduce the funds that, 
in the absence of such Federal Pell Grant, would otherwise be made 
available from State or local sources for such program.''.
    (b) Technical Amendment.--The table of contents of the Elementary 
and Secondary Education Act of 1965 is amended by inserting after the 
item relating to section 8549C the following new item:

``Sec. 8549D. Non-Federal funds for dual or concurrent enrollment 
                            programs.''.

SEC. 4. REGULATIONS.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Education shall prescribe 
regulations requiring that a secondary school offering a dual or 
concurrent enrollment program shall--
            (1) consult with teachers and school administrators, 
        including secondary school career and guidance counseling 
        staff, to ensure that the enrollment of a student in such 
        program is a component of a personalized learning plan for the 
        student that is based on the academic and career goals of the 
        student;
            (2) provide information to teachers, school administrators, 
        faculty and staff of the post-secondary institution, students, 
        and the families of such students regarding the standards of 
        the post-secondary institution and the effect that enrollment 
        in such program will have on the eligibility of a student for 
        Federal financial aid; and
            (3) submit an annual report to the Secretary that includes 
        the following:
                    (A) The total number and percentage of students who 
                enroll in and subsequently complete courses of study at 
                a public institution of higher education through the 
                dual or concurrent enrollment program.
                    (B) The number of postsecondary credits earned by 
                students while enrolled in the dual or concurrent 
                enrollment program that may be applied toward a 
                postsecondary degree or a recognized postsecondary 
                credential.
                    (C) The percentage of students who enroll in an 
                institution of higher education after graduation from 
                the secondary school.
                    (D) The percentage of students who concurrently 
                earn a secondary school diploma and an associate 
                degree.
                    (E) The percentage of students who concurrently 
                earn a secondary school diploma and a recognized 
                postsecondary credential.
    (b) Definitions.--In this section:
            (1) ESEA terms.--The terms ``dual or concurrent enrollment 
        program'' and ``secondary school'' have the meanings given 
        those terms, respectively, in section 8101 of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 7801).
            (2) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given such 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            (3) Recognized postsecondary credential.--The term 
        ``recognized postsecondary credential'' has the meaning given 
        such term in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
Promoting Readiness through Early Pell Act of 2016 or the PREP Act of 2016 This bill amends the Higher Education Act of 1965 by allowing a Federal Pell Grant to be awarded to a student who is dually or concurrently enrolled at a public institution of higher education and a secondary school.
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