[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1717 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1717

    To amend title 38, United States Code, to improve oversight of 
    educational assistance provided under laws administered by the 
  Secretary of Veterans Affairs and the Secretary of Defense, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 14, 2013

  Mr. Kaine (for himself and Mr. Chambliss) introduced the following 
 bill; which was read twice and referred to the Committee on Veterans' 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
    To amend title 38, United States Code, to improve oversight of 
    educational assistance provided under laws administered by the 
  Secretary of Veterans Affairs and the Secretary of Defense, and for 
                            other purposes.

    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 ``Servicemember Education Reform and 
Vocational Enhancement Act of 2013'' or the ``SERVE Act of 2013''.

SEC. 2. ADDITIONAL REQUIREMENTS FOR APPROVAL OF COURSES OF EDUCATION 
              FOR PURPOSES OF EDUCATIONAL ASSISTANCE UNDER LAWS 
              ADMINISTERED BY SECRETARY OF VETERANS AFFAIRS AND 
              SECRETARY OF DEFENSE.

    (a) Automatic Approval by Secretary of Veterans Affairs of Degree 
Programs Approved by Secretary of Education.--Clause (i) of section 
3672(b)(2)(A) of title 38, United States Code, is amended to read as 
follows:
            ``(i) A course that is described by section 3675(a) of this 
        title.''.
    (b) Approval by Secretary of Veterans Affairs of Non-Degree 
Programs Approved by Secretary of Education.--
            (1) In general.--Section 3675 of such title is amended--
                    (A) by redesignating subsections (b) and (c) as 
                subsections (c) and (d), respectively;
                    (B) by striking subsection (a); and
                    (C) by inserting before subsection (c), as 
                redesignated by subparagraph (A), the following new 
                subsections:
    ``(a) The Secretary or a State approving agency may only approve a 
course that leads to an associate or higher degree when such course is 
an eligible program (as defined in section 481 of the Higher Education 
Act of 1965 (20 U.S.C. 1088)) offered by an institution of higher 
education (as defined in section 102 of such Act (20 U.S.C. 1002)) that 
has entered into, and is complying with, a program participation 
agreement under section 487 of such Act (20 U.S.C. 1094).
    ``(b)(1) The Secretary or a State approving agency may approve a 
course that does not lead to an associate or higher degree when--
            ``(A) such course--
                    ``(i) is an eligible program (as defined in section 
                481 of the Higher Education Act of 1965 (20 U.S.C. 
                1088)) offered by an institution of higher education 
                (as defined in section 102 of such Act (20 U.S.C. 
                1002)) that has entered into, and is complying with, a 
                program participation agreement under section 487 of 
                such Act (20 U.S.C. 1094);
                    ``(ii) in the case of a course designed to prepare 
                individuals for licensure or certification, meets the 
                instructional curriculum licensure or certification 
                requirements of the State in which the institution is 
                located; and
                    ``(iii) in the case of a course designed to prepare 
                an individual for employment by a State board or agency 
                in an occupation that requires approval or licensure 
                for such employment, is approved or licensed by such 
                State board or agency;
            ``(B) such course is accepted by the State department of 
        education for credit for a teacher's certificate; or
            ``(C) such course is approved by the State as meeting the 
        requirement of regulations prescribed by the Secretary of 
        Health and Human Services under sections 1819(f)(2)(A)(i) and 
        1919(f)(2)(A)(i) of the Social Security Act (42 U.S.C. 1395i-
        3(f)(2)(A)(i) and 1396r(f)(2)(A)(i)).
    ``(2)(A) An educational institution shall submit an application for 
approval of courses to the appropriate State approving agency. In 
making application for approval, the institution (other than an 
elementary school or secondary school) shall transmit to the State 
approving agency copies of its catalog or bulletin which must be 
certified as true and correct in content and policy by an authorized 
representative of the institution.
    ``(B) Each catalog or bulletin transmitted by an institution under 
subparagraph (A) of this paragraph shall--
            ``(i) state with specificity the requirements of the 
        institution with respect to graduation;
            ``(ii) include the information required under paragraphs 
        (6) and (7) of section 3676(b) of this title; and
            ``(iii) include any attendance standards of the 
        institution, if the institution has and enforces such 
        standards.''.
            (2) Conforming amendments.--Such title is amended--
                    (A) in section 3452(g), by striking ``under the 
                provisions of section 3675 of this title'';
                    (B) in section 3501(11), by striking ``under the 
                provisions of section 3675 of this title'';
                    (C) in section 3672(b)(2)(A), by striking 
                ``3675(b)(1) and (b)(2)'' and inserting ``3675(c)(1) 
                and (c)(2)''; and
                    (D) in the heading for section 3675, by striking 
                ``accredited courses'' and inserting ``courses approved 
                by Secretary of Education''.
            (3) Clerical amendment.--The table of sections at the 
        beginning of chapter 36 of such title is amended by striking 
        the item relating to section 3675 and inserting the following 
        new item:

``3675. Approval of courses approved by Secretary of Education.''.
    (c) Approval by Secretary of Veterans Affairs of Non-Degree 
Programs Not Approved by Secretary of Education.--
            (1) In general.--Subsection (a) of section 3676 of such 
        title is amended to read as follows:
    ``(a) No course of education which has not been approved by the 
Secretary or a State approving agency under section 3675 of this title 
shall be approved for the purposes of this chapter unless--
            ``(1) the course--
                    ``(A) does not lead to an associate or higher 
                degree;
                    ``(B) was not an eligible program (as defined in 
                section 481 of the Higher Education Act of 1965 (20 
                U.S.C. 1088)) at any time during the most recent two-
                year period; and
                    ``(C) is a course that the Secretary or State 
                approving agency determines, in accordance with this 
                section and such regulations as the Secretary shall 
                prescribe and on a case-by-case basis, that approval of 
                which would further the purposes of this chapter or any 
                of chapters 30 through 35 of this title; and
            ``(2) the educational institution offering such course 
        submits to the appropriate State approving agency a written 
        application for approval of such course in accordance with the 
        provisions of this chapter.''.
            (2) Additional requirements.--Subsection (c) of section 
        3676 of such title is amended--
                    (A) by redesignating paragraph (14) as paragraph 
                (18); and
                    (B) by inserting after paragraph (13) the following 
                new paragraphs:
            ``(14) Courses that prepare individuals for licensure or 
        certification have verified that the course's instructional 
        curriculum appropriately includes the licensure or 
        certification requirements in the State in which the 
        institution deems such curriculum does.
            ``(15) Courses for which a State board or agency in the 
        State in which the course is designed to prepare a student 
        requires approval or licensure for employment in the recognized 
        occupation in the State is approved or licensed by such State 
        board or agency.
            ``(16) In the case of an educational institution that 
        advertises job placement rates as a means of attracting 
        students to enroll in a course of education offered by the 
        educational institution, the application contains any other 
        information necessary to substantiate the truthfulness of such 
        advertisements.
            ``(17) The educational institution does not make any 
        misrepresentations (as defined in section 668.71 of title 34, 
        Code of Federal Regulations (or any corresponding similar 
        regulation or ruling)) regarding the nature of its educational 
        program, the nature of its financial charges, or the 
        employability of its graduates (as defined in sections 668.72 
        through 668.74 of such title, respectively (or any 
        corresponding similar regulations or rulings)).''.
            (3) Conforming amendments.--Section 3676 of such title is 
        amended--
                    (A) in the heading for such section, by striking 
                ``nonaccredited courses'' and inserting ``courses not 
                approved by Secretary of Education''; and
                    (B) in subsection (c), in the matter before 
                paragraph (1), by striking ``non-accredited''.
            (4) Clerical amendment.--The table of sections at the 
        beginning of chapter 36 of such title is amended by striking 
        the item relating to section 3675 and inserting the following 
        new item:

``3676. Approval of courses not approved by Secretary of Education.''.
    (d) Additional Requirements for Approval of Programs for 
Educational Assistance for Persons Enlisting for Active Duty.--Section 
2143 of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``to subsection (b)'' 
        and inserting ``to subsections (b) and (c)'';
            (2) by redesignating subsection (c) as subsection (d); and
            (3) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c)(1) Except as provided in paragraph (2), a person entitled to 
assistance under this chapter may only use such assistance for 
educational expenses incurred for an eligible program (as defined in 
section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088)) 
that--
            ``(A) is offered by an institution of higher education (as 
        defined in section 102 of such Act (20 U.S.C. 1002)) that has 
        entered into, and is complying with, a program participation 
        agreement under section 487 of such Act (20 U.S.C. 1094);
            ``(B) in the case of a program designed to prepare 
        individuals for licensure or certification, meets the 
        instructional curriculum licensure or certification 
        requirements of the State in which the institution is located; 
        and
            ``(C) in the case of a program designed to prepare 
        individuals for employment by a State board or agency in an 
        occupation that requires approval or licensure for such 
        employment, is approved or licensed by such State board or 
        agency.
    ``(2) The Secretary may, in accordance with regulations the 
Secretary shall prescribe, authorize the use of educational assistance 
awarded under this chapter for educational expenses incurred for a 
program of education that is not described in paragraph (1) if such 
program--
            ``(A) is accredited and approved by a nationally recognized 
        accrediting agency or association;
            ``(B) was not an eligible program described in paragraph 
        (1) at any time during the most recent two-year period; and
            ``(C) is a program that the Secretary determines, on a 
        case-by-case basis, that approval of which would further the 
        purposes of the program established under section 2141 of this 
        title.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on August 1, 2014.

SEC. 3. REQUIREMENT THAT EDUCATIONAL INSTITUTIONS FURNISH SECRETARY OF 
              VETERANS AFFAIRS WITH INFORMATION NECESSARY TO PROVIDE 
              EDUCATION INFORMATION TO VETERANS.

    Section 3698 of title 38, United States Code, is amended--
            (1) redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f) Authority To Obtain Information From Educational 
Institutions.--(1) If the Secretary determines that the Secretary 
requires information from an educational institution to provide 
information pursuant to subsection (b)(5), the Secretary may request 
such information from such educational institution.
    ``(2) The Secretary may not approve a course offered by an 
educational institution under this chapter if such educational 
institution fails to comply with a request made by the Secretary under 
paragraph (1).''.

SEC. 4. REQUIREMENT THAT EDUCATIONAL INSTITUTIONS PROVIDE ACADEMIC OR 
              CAREER COUNSELING TO VETERANS AND MEMBERS OF ARMED 
              FORCES.

    (a) Academic and Career Counseling.--
            (1) In general.--Subchapter I of chapter 36 of title 38, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec. 3679A. Provision of academic or career counseling
    ``(a) In General.--(1) An educational institution with a covered 
individual enrolled in programs of education at the educational 
institution may not be approved under this chapter unless the 
educational institution provides academic or career counseling to each 
covered individual enrolled in a program of education at the 
educational institution.
    ``(2) Counseling provided under paragraph (1) to a covered 
individual shall be provided before the educational institution 
receives any amount from the Secretary for the individual's pursuit of 
a program of education.
    ``(3) At a minimum, the academic or career counseling provided 
under paragraph (1) shall include the following:
            ``(A) An overview of the educational assistance resources 
        available to the individual at the educational institution.
            ``(B) Discussion of how enrollment in the individual's 
        program of education will further the student's academic or 
        career goals.
    ``(4) The Secretary shall encourage educational institutions to 
assist covered individuals in developing a personalized academic and 
career plan as part of individualized, one-on-one educational 
counseling provided under paragraph (1).
    ``(b) Waiver.--The Secretary may, on a case-by-case basis, waive 
the requirement to provide academic or career counseling under 
paragraph (1) for an educational institution for an academic year if--
    ``(1) the Secretary determines that the educational institution has 
demonstrated that providing such counseling during such academic year 
would lead to severe financial hardship; and
    ``(2) the educational institution submits to the Secretary a plan 
to provide such counseling during the following academic year.
    ``(c) Covered Individual Defined.--In this section, the term 
`covered individual', with respect to enrollment in a program of 
education, means an individual who is receiving educational assistance 
under this chapter or any of chapters 30 through 35 of this title or 
under chapters 106A and 1606 of title 10 for such program of 
education.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 36 of such title is amended by inserting 
        after the item relating to section 3679 the following new item:

``3679A. Provision of academic or career counseling.''.
    (b) Conforming Amendment.--Section 3672(b)(2)(A) of such title (as 
amended by section 3(a)(2)) is further amended by striking ``and 3696'' 
and inserting ``3696, and 3679A''.
    (c) Effective Date.--Section 3679A of such title, as added by 
paragraph (1), shall take effect on August 1, 2014.

SEC. 5. STATE APPROVING AGENCIES.

    (a) Education and Outreach.--
            (1) In general.--Subchapter I of chapter 36 of title 38, 
        United States Code, is amended by inserting after section 3674A 
        the following new section:
``Sec. 3674B. Education and outreach
    ``(a) Education and Outreach Required.--As a condition on receipt 
of reimbursement expenses under section 3674 of this title, each State 
approving agency shall conduct such education and outreach activities 
for individuals who are eligible to receive or are receiving 
educational assistance under this chapter or any of chapters 30 through 
35 of this title as the Secretary considers appropriate to assist such 
individuals in making well-informed choices about their education and 
successfully transitioning into an educational environment.
    ``(b) Coordination.--Each State approving agency conducting 
outreach activities under subsection (a) shall coordinate with the 
Secretary of Defense to ensure, as the Secretary of Defense considers 
appropriate, that information on educational assistance available under 
this chapter and chapters 30 through 35 of this title is made readily 
available as part of the Transition Assistance Program (TAP) of the 
Department of Defense in the State of the State approving agency.
    ``(c) Manner.--Information made available as part of education and 
outreach activities under this section shall be made--
            ``(1) in language that can be easily understood by 
        individuals described in paragraph (1);
            ``(2) in a uniform and easily accessible manner; and
            ``(3) through such means as may be appropriate and 
        effective, including through publications, mailings, and 
        electronic media.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 36 of such title is amended by inserting 
        after the item relating to section 3674A the following new 
        item:

``3674B. Education and outreach.''.
    (b) Audits.--Section 3673(d) of such title is amended--
            (1) by inserting ``(1)'' before ``The Secretary''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Each year, each State approving agency, as a condition of 
receiving reimbursement of expenses under section 3674 of this title, 
shall conduct such audits as the Secretary considers appropriate, 
including unannounced audits and audits using risk-based approaches, of 
educational institutions in the State of the State approving agency 
that have students enrolled in programs of education at the educational 
institutions who are receiving educational assistance under this 
chapter or any of chapters 30 through 35 of this title (without regard 
to whether the Secretary or the State approving agency approved the 
courses offered) in such State--
            ``(A) to detect misrepresentation, fraud, waste, and abuse;
            ``(B) to ensure full compliance with the provisions of this 
        chapter; and
            ``(C) for such other purposes as the Secretary considers 
        appropriate.''.
    (c) Reports.--Section 3674(a)(3) of such title is amended--
            (1) by inserting ``(A)'' before ``Each State''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) Each report submitted under subparagraph (A) shall include 
the following:
            ``(i) The number of visits made by the agency to 
        educational institutions, including the number of such visits 
        that were made without the prior knowledge of such educational 
        institution.
            ``(ii) A description of the audits carried out by the 
        agency under section 3673(d)(2) of this title and the findings 
        of the agency, including with respect to any substantiated 
        findings of misrepresentation, fraud, waste, abuse, or failure 
        to comply with an applicable requirement of this chapter and 
        the steps taken by the agency to address such fraud, waste, 
        abuse, or failure to comply.
            ``(iii) A description of the outreach and training 
        activities conducted by the agency under section 3674B of this 
        title.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on August 1, 2014.

SEC. 6. MANDATORY COMPLIANCE REVIEWS.

    (a) In General.--Section 3693 of title 38, United States Code, is 
amended by adding at the end the following new subsection:
    ``(c) In addition to the annual compliance surveys conducted under 
subsection (a), the Secretary shall also conduct a compliance review, 
in accordance with such regulations as the Secretary shall prescribe, 
of an educational institution described in such subsection whenever the 
Secretary finds any of the following:
            ``(1) The student dropout rate of the institution has 
        increased rapidly.
            ``(2) The cohort default rate, as defined in section 435(m) 
        of the Higher Education Act of 1965 (20 U.S.C. 1085(m)), of the 
        educational institution has increased rapidly or is 
        consistently higher than the average of cohort default rate of 
        comparable educational institutions.
            ``(3) The number of substantiated complaints filed with the 
        centralized complaint system established under section 4 of 
        Executive Order 13607 (77 Fed. Reg. 25863) with respect to the 
        educational institution have increased rapidly or is 
        consistently higher than the number of substantiated complaints 
        filed with respect to other comparable educational 
        institutions.
            ``(4) The educational institution is the subject of a civil 
        lawsuit in Federal or State court, is charged with a crime 
        under Federal or State law, or is the subject of an official 
        investigation of a State or Federal agency for misconduct.
            ``(5) The educational institution has significant growth in 
        revenue resulting from tuition, including tuition paid with 
        assistance provided under this chapter, chapters 30 through 35 
        of this title, or chapters 106A or 1606 of title 10, which 
        cannot be attributed to changes made to such chapters by Acts 
        of Congress or changes to the administration of such chapters.
            ``(6) Such other findings as the Secretary considers 
        warrant conducting a compliance survey under subsection (a).''.
    (b) Effective Date.--Subsection (c) of such section, as added by 
subsection (a), shall take effect on August 1, 2014.

SEC. 7. PILOT PROGRAM ON FACILITATING PURSUIT OF PROGRAMS OF 
              APPRENTICESHIP AND OTHER ON-JOB TRAINING WITH EDUCATIONAL 
              ASSISTANCE UNDER POST-9/11 EDUCATIONAL ASSISTANCE.

    (a) Pilot Program Required.--The Secretary of Veterans Affairs, in 
cooperation with the Secretary of Defense, the Secretary of Education, 
the Secretary of Labor, and such State agencies as the Secretary of 
Veterans Affairs considers appropriate, shall commence a pilot program 
to assess the feasibility and advisability of developing policy, 
processes, and best practices--
            (1) to ensure the availability of covered programs of 
        education to veterans seeking to pursue such programs with 
        educational assistance under chapter 33 of title 38, United 
        States Code; and
            (2) to encourage veterans to pursue covered programs of 
        education with educational assistance under such chapter.
    (b) Covered Programs of Education.--For purposes of this section, a 
covered program of education is--
            (1) a program of apprenticeship or other on-job training; 
        or
            (2) a program of vocational training that is developed with 
        the intent and the ability to place veterans in positions of 
        employment with identified companies in specific career fields.
    (c) Locations.--The Secretary of Veterans Affairs shall carry out 
the pilot program in five States selected by the Secretary for purposes 
of the pilot program.
    (d) Outreach.--Under the pilot program, the Secretary of Veterans 
Affairs shall conduct outreach as follows:
            (1) To members of the Armed Forces and veterans through the 
        Transition Assistance Program (TAP), veterans service 
        organizations, one-stop centers, workforce investment boards 
        and agencies, the Disabled Veterans' Outreach Program, local 
        employment representatives, education and employment centers of 
        the Department of Veterans Affairs, and such other methods, 
        programs, and venues as the Secretary of Veterans Affairs 
        considers appropriate on--
                    (A) the availability of educational assistance 
                under chapter 33 of title 38, United States Code, for 
                the pursuit of a covered program of education;
                    (B) the benefits of pursuing a covered program of 
                education; and
                    (C) the process for obtaining such assistance.
            (2) To members of the business community and nonprofit 
        organizations on any tax, financial, or other incentives or 
        benefits as may be available--
                    (A) for providing programs of apprenticeship or 
                other on-job training to individuals eligible for 
                educational assistance under such chapter to pursue 
                such programs; or
                    (B) for cooperating with or supporting a program 
                described in subsection (b)(2).
    (e) Definitions.--In this section;
            (1) One-stop center.--The term ``one-stop center'' means a 
        center described in section 134(c) of the Workforce Investment 
        Act of 1998 (29 U.S.C. 2864(c)).
            (2) Veterans service organization.--The term ``veterans 
        service organization'' means an organization recognized by the 
        Secretary of Veterans Affairs for the representation of 
        veterans under section 5902 of title 38, United States Code.

SEC. 8. EXPANSION OF REPORTING REQUIREMENTS.

    Section 3325 of title 38, United States Code, is amended--
            (1) in subsection (a)(1), by inserting ``and chapters 106A 
        and 1606 of title 10'' after ``this chapter'';
            (2) in subsection (b), in the matter before paragraph (1), 
        by inserting ``, disaggregated by for-profit and not-for-profit 
        educational institutions'' after ``this section'';
            (3) in subsection (c), in the matter before paragraph (1), 
        by inserting ``, disaggregated by for-profit and not-for-profit 
        educational institutions'' after ``this section'';
            (4) by redesignating subsection (d) as subsection (e); and
            (5) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Contents of Reports of Both Secretaries.--Each secretary 
shall include in each report submitted under this section, for the 
period covered by the report and disaggregated by for-profit and not-
for-profit educational institutions, the following:
            ``(1) All substantiated reports of misrepresentation, 
        waste, fraud, abuse, or other acts that are inconsistent with 
        the requirements of chapter 36 of this title by an educational 
        institution at which an individual is enrolled in a program of 
        education for which the individual is receiving educational 
        assistance under a law administered by the respective 
        Secretary, including complaints filed with the centralized 
        complaint system established under section 4 of Executive Order 
        13607 (77 Fed. Reg. 25863).
            ``(2) A list of educational institutions which had courses 
        of education that were approved under chapter 36 of this title 
        in the previous year but were found, in the year covered by the 
        report, not in compliance with a requirement of such 
        chapter.''.
                                 <all>