[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4625 Engrossed in House (EH)]
<DOC>
116th CONGRESS
1st Session
H. R. 4625
_______________________________________________________________________
AN ACT
To amend title 38, United States Code, to require that educational
institutions abide by certain principles as a condition of approval for
purposes of the educational assistance programs of the Department of
Veterans Affairs, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Protect the GI
Bill Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Clarification of educational assistance for individuals who
pursue an approved program of education
leading to a degree while on active duty.
Sec. 3. Verification of enrollment for purposes of receipt of Post-9/11
Educational Assistance benefits.
Sec. 4. Clarification regarding the dependents to whom entitlement to
educational assistance may be transferred
under the Post 9/11 Educational Assistance
Program.
Sec. 5. Expansion of reasons for which a course of education may be
disapproved.
Sec. 6. Oversight of educational institutions subject to Government
action for purposes of the educational
assistance programs of the Department of
Veterans Affairs.
Sec. 7. Additional requirement for approval of educational institutions
for purposes of the educational assistance
programs of the Department of Veterans
Affairs.
Sec. 8. Clarification of accreditation for law schools for purposes of
the educational assistance programs of the
Department of Veterans Affairs.
Sec. 9. Clarification of grounds for disapproval of a course for
purposes of the educational assistance
programs of the Department of Veterans
Affairs.
Sec. 10. Requirements for educational institutions participating in the
educational assistance programs of the
Department of Veterans Affairs.
Sec. 11. Overpayments to eligible persons or veterans.
Sec. 12. Improvements to limitation on certain advertising, sales, and
enrollment practices.
Sec. 13. Additional limitation on certain advertising, sales, and
enrollment practices of educational
institutions.
Sec. 14. Charge to entitlement to educational assistance for
individuals who do not transfer credits
from certain closed or disapproved programs
of education.
Sec. 15. Determination of budgetary effects.
SEC. 2. CLARIFICATION OF EDUCATIONAL ASSISTANCE FOR INDIVIDUALS WHO
PURSUE AN APPROVED PROGRAM OF EDUCATION LEADING TO A
DEGREE WHILE ON ACTIVE DUTY.
Section 3313(e) of title 38, United States Code, is amended--
(1) in the heading, by inserting ``for a Period of More
Than 30 Days'' after ``Active Duty'';
(2) in paragraph (1), by inserting ``for a period of more
than 30 days'' after ``active duty''; and
(3) in paragraph (2), in the matter preceding subparagraph
(A), by inserting ``for a period of more than 30 days'' after
``active duty''.
SEC. 3. VERIFICATION OF ENROLLMENT FOR PURPOSES OF RECEIPT OF POST-9/11
EDUCATIONAL ASSISTANCE BENEFITS.
(a) In General.--Section 3313 of title 38, United States Code, as
amended by section 2, is further amended by adding at the end the
following new subsection:
``(l) Verification of Enrollment.--(1) The Secretary shall
require--
``(A) each educational institution to submit to the
Secretary verification of each individual who is enrolled in a
course or program of education at the educational institution
and is receiving educational assistance under this chapter for
each month during which the individual is so enrolled and
receiving such educational assistance; and
``(B) each individual who is enrolled in a course or
program of education and is receiving educational assistance
under this chapter to submit to the Secretary verification of
such enrollment for each month during which the individual is
so enrolled and receiving such educational assistance.
``(2) Verification under this subsection shall be in an electronic
form prescribed by the Secretary.
``(3) If an individual fails to submit the verification required
under paragraph (1)(B) for two consecutive months, the Secretary may
not make a monthly stipend payment to the individual under this section
until the individual submits such verification.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on August 1, 2020.
SEC. 4. CLARIFICATION REGARDING THE DEPENDENTS TO WHOM ENTITLEMENT TO
EDUCATIONAL ASSISTANCE MAY BE TRANSFERRED UNDER THE POST
9/11 EDUCATIONAL ASSISTANCE PROGRAM.
(a) In General.--Section 3319(c) of title 38, United States Code,
is amended to read as follows:
``(c) Eligible Dependents.--
``(1) Transfer.--An individual approved to transfer an
entitlement to educational assistance under this section may
transfer the individual's entitlement to an eligible dependent
or a combination of eligible dependents.
``(2) Definition of eligible dependent.--For purposes of
this subsection, the term `eligible dependent' has the meaning
given the term `dependent' under paragraph (2) of section 1072
of title 10.''.
(b) Applicability.--The amendment made by subsection (a) shall
apply with respect to educational assistance payable under chapter 33
of title 38, United States Code, before, on, or after the date of the
enactment of this Act.
SEC. 5. EXPANSION OF REASONS FOR WHICH A COURSE OF EDUCATION MAY BE
DISAPPROVED.
(a) In General.--Section 3672(b)(2) of title 38, United States
Code, is amended--
(1) in subparagraph (A)(i), by inserting or ``or (D)''
after ``subparagraph (C)''; and
(2) by adding at the end the following new subparagraph:
``(D) A program that is described in subparagraph (A)(i) of this
paragraph and offered by an educational institution that is at risk of
losing accreditation shall not be deemed to be approved for purposes of
this chapter. For purposes of this subparagraph, an educational
institution is at risk of losing accreditation if that educational
institution has received from the relevant accrediting agency or
association a notice described in section 3673(e)(2)(D) of this
title.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on the date that is 180 days after the date of the
enactment of this Act.
SEC. 6. OVERSIGHT OF EDUCATIONAL INSTITUTIONS SUBJECT TO GOVERNMENT
ACTION FOR PURPOSES OF THE EDUCATIONAL ASSISTANCE
PROGRAMS OF THE DEPARTMENT OF VETERANS AFFAIRS.
(a) In General.--Section 3673 of title 38, United States Code, is
amended by adding at the end the following new subsection:
``(e) Notice of Government Action.--(1)(A) If the Secretary
receives notice under paragraph (2), or otherwise becomes aware of an
action or event described in paragraph (3), with respect to an
educational institution, the Secretary shall transmit such notice or
provide notice of such action or event to the State approving agency
for the State where the educational institution is located by not later
than 30 days after the date on which the Secretary receives such notice
or becomes aware of such action or event. A State approving agency
shall perform a risk-based oversight survey to the educational
institution by not later than 60 days after receiving notice under this
subparagraph.
``(B) If a State approving agency receives notice as described in
paragraph (2), or otherwise becomes aware of an action or event
described in paragraph (3), with respect to an educational institution,
the State approving agency shall perform a risk-based oversight survey
to the educational institution by not later than 60 days after
receiving such notice or otherwise becoming aware of such action or
event.
``(2) Notice under this paragraph is any of the following:
``(A) Notice from the Secretary of Education of an event
under paragraph (3)(A).
``(B) Notice of an event under paragraph (3)(B).
``(C) Notice from a State of an action take by that State
under paragraph (3)(C).
``(D) Notice provided by an accrediting agency or
association of an action described in paragraph (3)(D) taken by
that agency or association.
``(E) Notice that the Secretary of Education has placed the
educational institution on provisional status.
``(3) An action or event under this paragraph is any of the
following:
``(A) The receipt by an educational institution of payments
under the heightened cash monitoring payment method pursuant to
section 487(c)(1)(B) of the Higher Education Act of 1965 (20
U.S.C. 1094).
``(B) Final punitive action taken by the Attorney General,
the Federal Trade Commission, or any other Federal department
or agency against an educational institution relating to
misconduct or misleading marketing practices, as defined by the
Secretary of Veterans Affairs.
``(C) Final punitive action taken by a State against an
educational institution.
``(D) The loss, or risk of loss, by an educational
institution of an accreditation from an accrediting agency or
association, including notice of probation, suspension, an
order to show cause, or revocation of accreditation.
``(E) The placement of an educational institution on
provisional status by the Secretary of Education.
``(4) If a State approving agency disapproves or suspends an
educational institution, the State approving agency shall provide
notice of such disapproval or suspension to the Secretary and to the
other State approving agencies.
``(5) This subsection shall be carried out using amounts made
available pursuant to section 3674(a)(4) of this title as long as such
amounts remain available.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on August 1, 2020.
SEC. 7. ADDITIONAL REQUIREMENT FOR APPROVAL OF EDUCATIONAL INSTITUTIONS
FOR PURPOSES OF THE EDUCATIONAL ASSISTANCE PROGRAMS OF
THE DEPARTMENT OF VETERANS AFFAIRS.
(a) In General.--Section 3675 of title 38, United States Code, is
amended--
(1) in subsection (b), by adding at the end the following
new paragraph:
``(4) The educational institution is approved and
participates in a program under title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070 et seq.) or the Secretary
has waived the requirement under this paragraph with respect to
an educational institution and submits to the Committees on
Veterans' Affairs of the Senate and House of Representatives
notice of such waiver.''.
(2) by adding at the end the following new subsection:
``(d) The Secretary shall submit to Congress an annual report on
any waivers issued pursuant to subsection (b)(4) or section
3672(b)(2)(A)(i) of this title. Each such report shall include, for the
year covered by the report--
``(1) the name of each educational institution for which a
waiver was issued;
``(2) the justification for each such waiver; and
``(3) the total number of waivers issued.''.
(b) Requirement for Approval of Standard College Degree Programs.--
Clause (i) of subparagraph (A) of paragraph (2) of subsection (b) of
section 3672 of such title is amended to read as follows:
``(i) Except as provided in subparagraph (C) or
(D), an accredited standard college degree program
offered at a public or not-for-profit proprietary
educational institution that--
``(I) is accredited by an agency or
association recognized for that purpose by the
Secretary of Education; and
``(II) is approved and participates in a
program under title IV of the Higher Education
Act of 1965 (20 U.S.C. 1070 et seq.), unless
the Secretary has waived the requirement to
participate in a program under title IV of the
Higher Education Act of 1965 (20 U.S.C. 1070 et
seq.).''.
(c) Effective Date.--The amendments made by subsections (a) and (b)
shall take effect on August 1, 2020.
SEC. 8. CLARIFICATION OF ACCREDITATION FOR LAW SCHOOLS FOR PURPOSES OF
THE EDUCATIONAL ASSISTANCE PROGRAMS OF THE DEPARTMENT OF
VETERANS AFFAIRS.
(a) In General.--Paragraphs (14)(B) and (15)(B) of section 3676(c)
of title 38, United States Code, are each amended by striking ``an
accrediting agency'' both places it appears and inserting ``a
specialized accrediting agency''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on August 1, 2020.
SEC. 9. CLARIFICATION OF GROUNDS FOR DISAPPROVAL OF A COURSE FOR
PURPOSES OF THE EDUCATIONAL ASSISTANCE PROGRAMS OF THE
DEPARTMENT OF VETERANS AFFAIRS.
(a) In General.--Section 3679(a)(1) of title 38, United States
Code, is amended by inserting ``(including failure to comply with a
risk-based survey under section 3673(d) of this title and secure an
affirmation of approval by the appropriate State approving agency
following the survey)'' after ``requirements of this chapter''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on August 1, 2020.
SEC. 10. REQUIREMENTS FOR EDUCATIONAL INSTITUTIONS PARTICIPATING IN THE
EDUCATIONAL ASSISTANCE PROGRAMS OF THE DEPARTMENT OF
VETERANS AFFAIRS.
(a) In General.--Section 3679 of title 38, United States Code, as
amended by section 6, is further amended by adding at the end the
following new subsection:
``(f)(1) Except as provided by paragraph (5), a State approving
agency, or the Secretary when acting in the role of the State approving
agency, may take an action described in paragraph (4)(A) if the State
approving agency or the Secretary determines that an educational
institution does not perform any of the following:
``(A) Prior to the enrollment of a covered individual in a
course of education at the educational institution, provide the
individual with a form that contains information personalized
to the individual that describes--
``(i) the estimated total cost of the course,
including tuition, fees, books, supplies, and any other
additional costs;
``(ii) an estimate of the cost for living expenses
for students enrolled in the course;
``(iii) the amount of the costs under clauses (i)
and (ii) that are covered by the educational assistance
provided to the individual under chapter 30, 32, 33, or
35 of this title, or chapter 1606 or 1607 of title 10,
as the case may be;
``(iv) the type and amount of Federal financial aid
not administered by the Secretary and financial aid
offered by the institution that the individual may
qualify to receive;
``(v) an estimate of the amount of student loan
debt the individual would have upon graduation;
``(vi) information regarding graduation rates;
``(vii) job-placement rates for graduates of the
course, if available;
``(viii) information regarding the acceptance by
the institution of transfer of credits, including
military credits;
``(ix) any conditions or additional requirements,
including training, experience, or examinations,
required to obtain the license, certification, or
approval for which the course of education is designed
to provide preparation; and
``(x) other information to facilitate comparison by
the individual of aid packages offered by different
educational institutions.
``(B) Not later than 15 days after the date on which the
institution (or the governing body of the institution)
determines tuition rates and fees for an academic year that is
different than the amount being charged by the institution,
provide a covered individual enrolled in a course of education
at the educational institution with the form under subparagraph
(A) that contains updated information.
``(C) Maintain policies to--
``(i) inform each covered individual enrolled in a
course of education at the educational institution of
the availability of Federal financial aid not
administered by the Secretary and financial aid offered
by the institution; and
``(ii) alert such individual of the potential
eligibility of the individual for such financial aid
before packaging or arranging student loans or
alternative financing programs for the individual.
``(D) Maintain policies to--
``(i) prohibit the automatic renewal of a covered
individual in courses and programs of education; and
``(ii) ensure that each covered individual approves
of the enrollment of the individual in a course.
``(E) Provide to a covered individual enrolled in a course
of education at the educational institution with information
regarding the requirements to graduate from such course,
including information regarding when required classes will be
offered and a timeline to graduate.
``(F) With respect to an accredited educational
institution, obtain the approval of the accrediting agency for
each new course or program of the institution before enrolling
covered individuals in such courses or programs if the
accrediting agency determines that such approval is appropriate
under the substantive change requirements of the accrediting
agency regarding the quality, objectives, scope, or control of
the institution.
``(G) Maintain a policy that--
``(i) ensures that members of the Armed Forces,
including the reserve components and the National
Guard, who enroll in a course of education at the
educational institution may be readmitted at such
institution if such members are temporarily unavailable
or have to suspend such enrollment by reason of serving
in the Armed Forces; and
``(ii) otherwise accommodates such members during
short absences by reason of such service.
``(H) Designate an employee of the educational institution
to serve as a point of contact for covered individuals and the
family of such individuals needing assistance with respect to
academic counseling, financial counseling, disability
counseling, and other information regarding completing a course
of education at such institution, including by referring such
individuals and family to the appropriate persons for such
counseling and information.
``(2) Except as provided by paragraph (5), a State approving
agency, or the Secretary when acting in the role of the State approving
agency, may take an action described in paragraph (4)(A) if the State
approving agency, the Secretary, or the Federal Trade Commission,
determines that an educational institution does any of the following:
``(A) Carries out deceptive or persistent recruiting
techniques, including on military installations, that may
include--
``(i) misrepresentation (as defined in section
3696(e)(2)(B) of this title) or payment of incentive
compensation;
``(ii) during any 1-month period making three or
more unsolicited contacts to a covered individual,
including contacts by phone, email, or in-person; or
``(iii) engaging in same-day recruitment and
registration.
``(B) Pays inducements, including any gratuity, favor,
discount, entertainment, hospitality, loan, transportation,
lodging, meals, or other item having a monetary value of more
than a de minimis amount, to any individual or entity, or its
agents including third party lead generators or marketing firms
other than salaries paid to employees or fees paid to
contractors in conformity with all applicable laws for the
purpose of securing enrollments of covered individuals or
obtaining access to educational assistance under this title,
with the exception of scholarships, grants, and tuition
reductions provided by the educational institution.
``(3) A State approving agency, or the Secretary when acting in the
role of the State approving agency, may take an action described in
paragraph (4)(A) if the State approving agency or the Secretary
determines that an educational institution is the subject of a negative
action made by the accrediting agency that accredits the institution,
including any of the following:
``(A) A show cause order.
``(B) Accreditor sanctions.
``(C) Accreditation probation.
``(D) The loss of accreditation or candidacy for
accreditation.
``(4)(A) An action described in this subparagraph is any of the
following:
``(i) Publishing a warning on the internet website of the
Department described in section 3698(c)(2) of this title, or
such other similar internet website of the Department, that
describes how an educational institution is failing to meet a
requirement under paragraph (1) or (2).
``(ii) Prohibiting the pursuit by an individual of a course
of education at an educational institution under chapter 30,
32, 33, or 35 of this title during the period beginning on the
date of such prohibition and ending on a date specified by the
State approving agency, in consultation with the Secretary, or
the Secretary when acting in the role of the State approving
agency, unless the individual was enrolled at the institution
before such period.
``(B) The Secretary shall establish guidelines to ensure that the
actions described in subparagraph (A) are applied in a proportional and
uniform manner by State approving agencies, or the Secretary when
acting in the role of the State approving agency.
``(5)(A) The Secretary may waive the requirements of paragraph (1)
or waive the requirements of paragraph (2) with respect to an
educational institution for a 1-academic-year period beginning in
August of the year in which the waiver is made. A single educational
institution may not receive waivers under this paragraph for more than
2 consecutive academic years.
``(B) To be considered for a waiver under this paragraph, an
educational institution shall submit to the Secretary an application
prior to the first day of the academic year for which the waiver is
sought.
``(6) On an annual basis, the Secretary shall submit to the
Committees on Veterans' Affairs of the House of Representatives and the
Senate the following reports:
``(A) A report, which shall be made publicly available,
that includes the following:
``(i) A summary of each action described in
paragraph (4)(A) made during the year covered by the
report, including--
``(I) the name of the educational
institution;
``(II) the type of action taken;
``(III) the rationale for the action,
including how the educational institution was
not in compliance with this subsection;
``(IV) the length of time that the
educational institution was not in such
compliance; and
``(V) whether the educational institution
was also not in compliance with this subsection
during any of the 2 years prior to the year
covered by the report.
``(ii) A summary and justifications for the waivers
made under paragraph (5) during the year covered by the
report, including the total number of waivers each
educational institution has received.
``(B) A report containing the recommendations of the
Secretary with respect to any legislative actions the Secretary
determines appropriate to ensure that this subsection is
carried out in a manner that is consistent with the
requirements that educational institutions must meet for
purposes of other departments or agencies of the Federal
Government.
``(7) In this subsection, the term `covered individual' means an
individual who is pursuing a course of education at an educational
institution under chapter 30, 32, 33, or 35 of this title.''.
(b) Application Date.--The amendment made by this section shall
take effect on June 15, 2020, and shall apply to an educational
institution beginning on August 1, 2020, except that an educational
institution may submit an application for a waiver under subsection
(f)(5) of section 3679 of title 38, United States Code, as added by
subsection (a), beginning on June 15, 2020.
SEC. 11. OVERPAYMENTS TO ELIGIBLE PERSONS OR VETERANS.
Subsection (b) of section 3685 of title 38, United States Code, is
amended to read as follows:
``(b) Any overpayment by an educational institution to a veteran or
eligible person shall constitute a liability of the educational
institution to the United States if--
``(1) the Secretary finds that the overpayment has been
made as the result of--
``(A) the willful or negligent failure of an
educational institution to report, as required under
this chapter or chapter 34 or 35 of this title, to the
Department of Veterans Affairs excessive absences from
a course, or discontinuance or interruption of a course
by the veteran or eligible person; or
``(B) the willful or negligent false certification
by an educational institution; or
``(2) the payment is made pursuant to--
``(A) section 3313(h) of this title;
``(B) section 3317 of this title; or
``(C) section 3680(d) of this title.''.
SEC. 12. IMPROVEMENTS TO LIMITATION ON CERTAIN ADVERTISING, SALES, AND
ENROLLMENT PRACTICES.
(a) Substantial Misrepresentation.--
(1) In general.--Subsection (a) of section 3696 of title
38, United States Code, is amended to read as follows:
``(a) The Secretary, or a State approving agency acting in the role
of the Secretary, shall not approve the enrollment of an eligible
veteran or eligible person in any course offered by an institution, or
by an entity that owns the institution, engaged in substantial
misrepresentation described in subsection (e)(1).''.
(2) Definitions.--Such section is further amended by adding
at the end the following new subsection:
``(e)(1) Substantial misrepresentation described in this paragraph
is substantial misrepresentation by an educational institution, a
representative of the institution, or any person with whom the
institution has an agreement to provide educational programs,
marketing, advertising, recruiting or admissions services, concerning
any of the following:
``(A) The nature of the educational program of the
institution, including misrepresentation regarding--
``(i) the particular type, specific source, or
nature and extent, of the accreditation of the
institution or a course of education at the
institution;
``(ii) whether a student may transfer course
credits to another institution;
``(iii) conditions under which the institution will
accept transfer credits earned at another institution;
``(iv) whether successful completion of a course of
instruction qualifies a student--
``(I) for acceptance to a labor union or
similar organization; or
``(II) to receive, to apply to take, or to
take an examination required to receive a
local, State, or Federal license, or a
nongovernmental certification required as a
precondition for employment, or to perform
certain functions in the States in which the
educational program is offered, or to meet
additional conditions that the institution
knows or reasonably should know are generally
needed to secure employment in a recognized
occupation for which the program is represented
to prepare students;
``(v) the requirements for successfully completing
the course of study or program and the circumstances
that would constitute grounds for terminating the
student's enrollment;
``(vi) whether the courses of education at the
institution are recommended or have been the subject of
unsolicited testimonials or endorsements by--
``(I) vocational counselors, high schools,
colleges, educational organizations, employment
agencies, members of a particular industry,
students, former students, or others; or
``(II) officials of a local or State
government or the Federal Government;
``(vii) the size, location, facilities, or
equipment of the institution;
``(viii) the availability, frequency, and
appropriateness of the courses of education and
programs to the employment objectives that the
institution states the courses and programs are
designed to meet;
``(ix) the nature, age, and availability of the
training devices or equipment of the institution and
the appropriateness to the employment objectives that
the institution states the courses and programs are
designed to meet;
``(x) the number, availability, and qualifications,
including the training and experience, of the faculty
and other personnel of the institution;
``(xi) the availability of part-time employment or
other forms of financial assistance;
``(xii) the nature and availability of any tutorial
or specialized instruction, guidance and counseling, or
other supplementary assistance the institution ill
provide students before, during, or after the
completion of a course of education;
``(xiii) the nature or extent of any prerequisites
established for enrollment in any course of education;
``(xiv) the subject matter, content of the course
of education, or any other fact related to the degree,
diploma, certificate of completion, or any similar
document that the student is to be, or is, awarded upon
completion of the course of education; and
``(xv) whether the degree that the institution will
confer upon completion of the course of education has
been authorized by the appropriate State educational
agency, including with respect to cases where the
institution fails to disclose facts regarding the lack
of such authorization in any advertising or promotional
materials that reference such degree.
``(B) The financial charges of the institution, including
misrepresentation regarding--
``(i) offers of scholarships to pay all or part of
a course charge;
``(ii) whether a particular charge is the customary
charge at the institution for a course;
``(iii) the cost of the program and the refund
policy of the institution if the student does not
complete the program;
``(iv) the availability or nature of any financial
assistance offered to students, including a student's
responsibility to repay any loans, regardless of
whether the student is successful in completing the
program and obtaining employment; and
``(v) the student's right to reject any particular
type of financial aid or other assistance, or whether
the student must apply for a particular type of
financial aid, such as financing offered by the
institution.
``(C) The employability of the graduates of the
institution, including misrepresentation regarding--
``(i) the relationship of the institution with any
organization, employment agency, or other agency
providing authorized training leading directly to
employment;
``(ii) the plans of the institution to maintain a
placement service for graduates or otherwise assist
graduates to obtain employment;
``(iii) the knowledge of the institution about the
current or likely future conditions, compensation, or
employment opportunities in the industry or occupation
for which the students are being prepared;
``(iv) job market statistics maintained by the
Federal Government in relation to the potential
placement of the graduates of the institution; and
``(v) other requirements that are generally needed
to be employed in the fields for which the training is
provided, such as requirements related to commercial
driving licenses or permits to carry firearms, and
failing to disclose factors that would prevent an
applicant from qualifying for such requirements, such
as prior criminal records or preexisting medical
conditions.
``(2) In this subsection:
``(A) The term `misleading statement' includes any
communication, action, omission, or intimation made in writing,
visually, orally, or through other means, that has the
likelihood or tendency to mislead the intended recipient of the
communication under the circumstances in which the
communication is made. Such term includes the use of student
endorsements or testimonials for an educational institution
that a student gives to the institution either under duress or
because the institution required the student to make such an
endorsement or testimonial to participate in a program of
education.
``(B) The term `misrepresentation' means any false,
erroneous, or misleading statement, action, omission, or
intimation made directly or indirectly to a student, a
prospective student, the public, an accrediting agency, a State
agency, or to the Secretary by an eligible institution, one of
its representatives, or any person with whom the institution
has an agreement to provide educational programs, marketing,
advertising, recruiting or admissions services.
``(C) The term `substantial misrepresentation' means
misrepresentation in which the person to whom it was made could
reasonably be expected to rely, or has reasonably relied, to
that person's detriment.''.
(b) Referral.--Subsection (c) of such section is amended by
striking the last sentence and inserting the following: ``The findings
and results of any such investigations shall be referred to the State
approving agency, or the Secretary when acting in the role of the State
approving agency, who shall take appropriate action in such cases not
later than 60 days after the date of such referral.''.
(c) Requirements for Nonaccredited Courses.--Paragraph (10) of
section 3676(c) of such title is amended to read as follows:
``(10) The institution, and any entity that owns the
institution, does not engage in substantial misrepresentation
described in section 3696(e) of this title. The institution
shall not be deemed to have met this requirement until the
State approving agency--
``(A) has ascertained that no Federal department or
agency has taken a punitive action, not including a
settlement agreement, against the school for misleading
or deceptive practices;
``(B) has, if such an order has been issued, given
due weight to that fact; and
``(C) has reviewed the complete record of
advertising, sales, or enrollment materials (and copies
thereof) used by or on behalf of the institution during
the preceding 12-month period.''.
(d) Application Date.--The amendments made by this section shall
apply to an educational institution beginning on August 1, 2020.
SEC. 13. ADDITIONAL LIMITATION ON CERTAIN ADVERTISING, SALES, AND
ENROLLMENT PRACTICES OF EDUCATIONAL INSTITUTIONS.
(a) In General.--Section 3696(a) of title 38, United States Code,
as amended by section 11, is further amended--
(1) by inserting ``(1)'' before ``The Secretary''; and
(2) by adding at the end the following new paragraph:
``(2) Not later than 120 days after a State or Federal department
or agency takes final punitive action against an educational
institution relating to practices described in paragraph (1), the
Secretary or the relevant State approving agency may--
``(A) take an action described in subsection (f)(4)(A) of
section 3679 of this title; or
``(B) disapprove under such section each course offered by
that educational institution.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on August 1, 2020.
SEC. 14. CHARGE TO ENTITLEMENT TO EDUCATIONAL ASSISTANCE FOR
INDIVIDUALS WHO DO NOT TRANSFER CREDITS FROM CERTAIN
CLOSED OR DISAPPROVED PROGRAMS OF EDUCATION.
(a) In General.--Subsection (c) of section 3699 of title 38, United
States Code, is amended to read as follows:
``(c) Period Not Charged.--(1) The period for which, by reason of
this subsection, educational assistance is not charged against
entitlement or counted toward the applicable aggregate period under
section 3695 of this title shall not exceed the aggregate of--
``(A) the portion of the period of enrollment in the course
from which the individual did not receive credit or with
respect to which the individual lost training time, as
determined under subsection (b)(2); and
``(B) the period by which a monthly stipend is extended
under section 3680(a)(2)(B) of this title.
``(2)(A) An individual described in subparagraph (B) who transfers
fewer than 12 credits from a program of education that is closed or
disapproved as described in subsection (b)(1) shall be deemed to be an
individual who did not receive such credits, as described in subsection
(b)(2), except that the period for which such individual's entitlement
is not charged shall be the entire period of the individual's
enrollment in the program of education. In carrying out this
subparagraph, the Secretary, in consultation with the Secretary of
Education, shall establish procedures to determine whether the
individual transferred credits to a comparable course or program of
education.
``(B) An individual described in this subparagraph is an individual
who is enrolled in a course or program of education closed or
discontinued as described in subsection (b)(1) during the period
beginning on the date that is 120 days before the date of such closure
or discontinuance and ending on the date of such closure or
discontinuance, as the case may be.
``(C) This paragraph shall apply with respect to a course or
program of education closed or discontinued before September 30,
2023.''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect on August 1, 2020.
SEC. 15. DETERMINATION OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of complying
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the House Budget Committee, provided that
such statement has been submitted prior to the vote on passage.
Passed the House of Representatives November 12, 2019.
Attest:
Clerk.
116th CONGRESS
1st Session
H. R. 4625
_______________________________________________________________________
AN ACT
To amend title 38, United States Code, to require that educational
institutions abide by certain principles as a condition of approval for
purposes of the educational assistance programs of the Department of
Veterans Affairs, and for other purposes.