[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4625 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 4625

  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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 8, 2019

   Mr. Levin of California introduced the following bill; which was 
             referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
  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.

    This Act may be cited as the ``Protect the GI Bill Act''.

SEC. 2. REQUIREMENTS FOR EDUCATIONAL INSTITUTIONS PARTICIPATING IN THE 
              EDUCATIONAL ASSISTANCE PROGRAMS OF THE DEPARTMENT OF 
              VETERANS AFFAIRS.

    Section 3679 of title 38, United States Code, is 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, shall 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 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) 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
                    ``(ix) 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, shall 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 fraudulent or persistent recruiting 
        techniques, including on military installations, that may 
        include--
                    ``(i) misrepresentation or payment of incentive 
                compensation;
                    ``(ii) during any one-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, shall 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, or chapter 1606 or 1607 of title 
        10, 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) The Secretary may waive the requirements of paragraph (1) or 
waive the requirements of paragraph (2) with respect to an educational 
institution for a one-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 two consecutive 
academic years.
    ``(6) On an annual basis, the Secretary shall submit to the 
Committees on Veterans' Affairs of the House of Representatives and the 
Senate, and make publicly available, a report that includes the 
following:
            ``(A) 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 two years prior to the year covered by the report.
            ``(B) 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.
            ``(C) 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.''.

SEC. 3. 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 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 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 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 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 90 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 from the Federal Trade 
                Commission whether the Commission has issued an order 
                to the institution to cease and desist from any act or 
                practice described in such subsection;
                    ``(B) has, if such an order has been issued, given 
                due weight to that fact; and
                    ``(C) has reviewed the complete record of all 
                advertising, sales, or enrollment materials (and copies 
                thereof) used by or on behalf of the institution during 
                the preceding 12-month period.''.

SEC. 4. APPLICATION DATE.

    The amendments made by this Act shall apply to an educational 
institution beginning on the date that is 180 days after the date of 
the enactment of this Act.
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