[House Report 118-190]
[From the U.S. Government Publishing Office]


118th Congress }                                             {     Report
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                             {  118-190

======================================================================



 
             ISAKSON-ROE EDUCATION OVERSIGHT EXPANSION ACT

                                _______
                                

 September 8, 2023.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

   Mr. Bost, from the Committee on Veterans' Affairs, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3981]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 3981) to amend title 38, United States Code, to 
improve the methods by which the Secretary of Veterans Affairs 
conducts oversight of certain educational institutions, and for 
other purposes, having considered the same, reports favorably 
thereon with an amendment and recommends that the bill as 
amended do pass.

                                CONTENTS

                                                                   Page
Bill.............................................................     2
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Subcommittee Consideration.......................................     4
Committee Consideration..........................................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
Statement of General Performance Goals and Objectives............     4
Earmarks and Tax and Tariff Benefits.............................     5
Committee Cost Estimate..........................................     5
Budget Authority and Congressional Budget Office Estimate........     5
Federal Mandates Statement.......................................     6
Advisory Committee Statement.....................................     6
Applicability to Legislative Branch..............................     6
Statement on Duplication of Federal Programs.....................     6
Section-by-Section Analysis of the Legislation...................     6
Changes in Existing Law Made by the Bill as Reported.............     6

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Isakson-Roe Education Oversight 
Expansion Act''.

SEC. 2. EXPANSION OF DEPARTMENT OF VETERANS AFFAIRS OVERSIGHT OF 
                    CERTAIN EDUCATIONAL INSTITUTIONS.

  (a) Additional Requirement for Approval.--Section 3675(b) of title 
38, United States Code, is amended by adding at the end the following 
new paragraph:
          ``(5) The educational institution agrees to, not later than 
        30 days after any date on which such educational institution 
        becomes subject to an action or event described in section 
        3673(e)(3) of this title, submit to the State approving agency, 
        or the Secretary when acting in the role of a State approving 
        agency, a notification of such action or event in such form and 
        containing such information as the Secretary determines 
        appropriate.''.
  (b) Additional Requirement for Approval of Nonaccredited Courses.--
          (1) In general.--Section 3676(c) of such title is amended--
                  (A) by redesignating paragraphs (14) through (16) as 
                paragraphs (15) through (17), respectively; and
                  (B) by inserting after paragraph (13) the following 
                new paragraph:
          ``(14) The institution agrees to, not later than 30 days 
        after any date on which such institution becomes subject to an 
        action or event described in section 3673(e)(3) of this title, 
        submit to the State approving agency, or the Secretary when 
        acting in the role of a State approving agency, a notification 
        of such action or event in such form and containing such 
        information as the Secretary determines appropriate.''.
          (2) Conforming amendments.--Such title is further amended--
                  (A) in section 3672(b)(2)(C), by striking ``paragraph 
                (14) or (15)'' and inserting ``paragraph (15) or 
                (16)'';
                  (B) in section 3675(b)(3), by striking ``(14), (15), 
                and (16)'' and inserting ``(15), (16), and (17)'';
                  (C) in section 3679(d), by striking ``described in 
                paragraph (14) or (15)'' and inserting ``described in 
                paragraph (15) or (16)''; and
                  (D) in section 3680A(a)(4)(C)(iii), by striking 
                ``section 3676(c)(14) and (15)'' and inserting 
                ``section 3676(c)(15) and (16)''.
  (c) Additional Grounds for Suspension of Approval.--Section 
3679(f)(1) of such title is amended by adding at the end the following 
new subparagraph:
          ``(I) Comply with the notification requirements under 
        sections 3675(b)(5) and 3676(c)(14) of this title, when 
        applicable.''.
  (d) Deadline for Risk-based Surveys Database.--The Secretary of 
Veterans Affairs shall establish the database required under section 
3673A(c) of title 38, United States Code, by not later than 180 days 
after the date of the enactment of this Act.

                          Purpose and Summary

    H.R. 3981, the ``Isakson-Roe Education Oversight Expansion 
Act of 2023,'' was introduced by Rep. Morgan McGarvey of 
Kentucky on June 9, 2023. H.R. 3981, as amended, would require 
schools to report any adverse actions taken against schools to 
the State Approving Agencies (SAA) and the U.S. Department of 
Veterans Affairs (VA) as part of their approval for G.I. Bill 
benefits. Additionally, VA would be required to develop risk-
based surveys within 180 days of enactment. This legislation 
aims to improve oversight, accountability, and access to 
quality education for veterans, building on the success of the 
Isakson-Roe Act.
    Finally, the bill would also provide an offset for the cost 
of these programs by extending the current rates for VA home 
loan funding fees.

                  Background and Need for Legislation


Section 1: Short title

    This Act may be cited as the ``Veterans Education Oversight 
Expansion Act.''

Section 2: Department of Veterans Affairs oversight of certain 
        educational institutions

    This section would implement a way to track important law-
enforcement, judicial, accreditor actions or events at eligible 
schools, even though such actions or events, if known in a 
timely manner, could and should trigger a review by the SAA or 
VA.
    The Committee believes it is not practical for VA or SAAs 
to have knowledge of every adverse incident or situation that 
occurs in every school. This is due to multiple oversight 
entities, vast programs in different states and territories, 
and significant actions not being made public. The Federal 
Trade Commission, Department of Justice, state law enforcement, 
and accrediting bodies are not obligated to implement mandatory 
reporting measures for participating in Title 38 education 
programs.
    This section would require notifying SAAs of adverse 
actions to lessen the impact on student veterans. This would 
allow for timely reporting and prevent any issues that could 
affect their eligibility for VA programs. This bill aims to 
improve the accountability of educational institutions that 
receive the G.I. Bill. Under the new legislation, schools would 
be required to report any violations within 30 days or face 
additional penalties. Additionally, VA would be required to 
create a readily accessible, searchable database of the results 
of risk-based surveys within 180 days of enactment, which would 
help ensure that federal funds are being used appropriately to 
benefit veteran populations. The Committee believes this is 
important to track consistency.
    Furthermore, the bill includes reporting requirements that 
would allow VA and Congress to effectively oversee the 
program's operations. The Committee believes it is important to 
continue building on the success of the Isakson Roe Act and 
ensure that the G.I. Bill remains a valuable resource for 
veterans seeking meaningful education opportunities.

                                Hearings

    On June 14, 2023, the Subcommittee on Economic Opportunity 
held a legislative hearing on H.R. 3981 and other bills that 
were pending before the subcommittee.
    The following witnesses testified:
          Mr. Joseph Garcia, Executive Director of Education 
        Service, U.S. Department of Veterans Affairs; Ms. 
        Melissa Cohen, Deputy Executive Director of Outreach, 
        Transition, and Economic Development, U.S. Department 
        of Veterans Affairs; Ms. Monica Diaz, Executive 
        Director, Office of Homeless Programs, U.S. Department 
        of Veterans Affairs; Mr. James Rodriguez, Assistant 
        Secretary for Veterans' Employment and Training 
        Service, U.S. Department of Labor; Mr. Paul Marone, 
        USERRA Policy Chief for Veterans' Employment and 
        Training Service, U.S. Department of Labor; Mr. Patrick 
        Murray, Director, National Legislative Service, 
        Veterans of Foreign Wars of the United States; Mr. 
        Ricardo Gomez, Employment and Education Policy 
        Associate, The American Legion; Mr. Matthew 
        Schwartzman, Director, Legislation and Military Policy, 
        Reserve Organization of America; Ms. Meredith M. Smith, 
        Government Relations Deputy Director, National Military 
        Family Association, and Mr. Kevin Hollinger, 
        Legislative Director, Enlisted Association of the 
        National Guard of the United States.
    The following individuals and organizations submitted 
statements for the record:
          Helping Veterans and Families of Indiana, The 
        American Legion Department of California, Disabled 
        American Veterans Department of California, Veterans 
        Education Success, Nation's Finest, New England Center 
        and Home for Veterans, Representative Morgan McGarvey 
        of Kentucky, Volunteers of America of Los Angeles, U.S. 
        VETS Long Beach, Family & Community Services Inc., U.S. 
        VETS Prescott, U.S. VETS Inglewood, Veterans 
        Integration Centers, U.S. VETS Inland Empire, Operation 
        Dignity, and the Alston Wilkes Society.

                       Subcommittee Consideration

    On July 19, 2023, the subcommittee on Economic Opportunity 
held a markup on the legislation included in the text of this 
bill. An amendment in the nature of a substitute to H.R. 3981 
offered by Rep. McGarvey was adopted by voice vote and the bill 
was ordered favorably forwarded to the full Committee on 
Veterans Affairs. The amendment in the nature of a substitute 
removed G.I. Bill restoration language that had a CBO 
preliminary score in the double-digit millions.

                        Committee Consideration

    On July 27, 2023, the full Committee met in open markup 
session, a quorum being present, and ordered H.R. 3981, as 
amended, be reported favorably to the House of Representatives 
by voice vote. During consideration of the bill no amendments 
were considered. A motion by Ranking Member Takano to report 
H.R. 3981, as amended, favorably to the House of 
Representatives was agreed to by voice vote.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, 1 recorded vote was taken on 
amendments or in connection with ordering H.R. 3981 as amended, 
reported to the House.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives of H.R. 3981, as amended, are to provide 
additional opportunities for education and training for 
veterans and improve the lives of veterans generally.

                  Earmarks and Tax and Tariff Benefits

    H.R. 3981, as amended, does not contain any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        Committee Cost Estimate

    The Committee adopts as its own the Congressional Budget 
Office cost estimate on this measure.

            Budget Authority and Congressional Budget Office
                             Cost Estimate




    H.R. 3981 would require educational institutions that offer 
certain courses to people who are eligible for education 
benefits administered by the Department of Veterans Affairs 
(VA) to notify VA (or relevant state agencies) of specified 
unfavorable events involving the institution. (Relevant state 
agencies include those responsible for approving educational 
institutions, programs, and courses to receive benefit payments 
from VA.) Reportable events would include punitive actions by 
state or federal agencies, heightened monitoring of federal 
student aid, and the potential loss of accreditation. 
Institutions that fail to report those events would become 
ineligible to receive benefit payments from VA, which are 
classified in the federal budget as direct spending. CBO 
anticipates that almost all students with VA benefits who plan 
to attend schools that do not comply would use their benefits 
at other educational institutions instead. The cost of 
attendance at the substitute institutions could be more or less 
than the costs of the schools the students had planned to 
attend. Thus, requiring those notifications would not 
significantly affect the budget, CBO estimates.
    The CBO staff contact for this estimate is Paul B.A. 
Holland. The estimate was reviewed by Christina Hawley Anthony, 
Deputy Director of Budget Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

                       Federal Mandates Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4) is inapplicable to H.R. 3981.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
3981, as amended.

                  Applicability to Legislative Branch

    The Committee finds that H.R. 3981, as amended, does not 
relate to the terms and conditions of employment or access to 
public services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

              Statement on Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 3981, as amended, would establish or reauthorize a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 would establish the short title of the bill as 
``Veterans Education Oversight Expansion Act.''

Section 2. Department of Veterans Affairs oversight of certain 
        educational institutions

    This section would amend section 3675(b) of title 38 of the 
U.S. Code to require that no more than 30 days after an adverse 
event that, in addition to the VA, that the SAA's must also be 
notified of the event. This section would also include a 
provision of risk-based surveys to provide oversight of the new 
requirement.
    This section would strengthen the reporting requirements of 
educational entities that receive GI Bill education benefits. 
Under this section, educational institutions would be required 
to report any noncompliance within 30 days to avoid penalties.
    Finally, this section would require VA to create a 
previously mandated database of risk-based surveys within 180 
days of enactment.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 38, UNITED STATES CODE




           *       *       *       *       *       *       *
PART III--READJUSTMENT AND RELATED BENEFITS

           *       *       *       *       *       *       *


CHAPTER 36--ADMINISTRATION OF EDUCATIONAL BENEFITS

           *       *       *       *       *       *       *



SUBCHAPTER II--STATE APPROVING AGENCIES

           *       *       *       *       *       *       *



Sec. 3672. Approval of courses

  (a) An eligible person or veteran shall receive the benefits 
of this chapter and chapters 34 and 35 of this title while 
enrolled in a course of education offered by an educational 
institution only if (1) such course is approved as provided in 
this chapter and chapters 34 and 35 of this title by the State 
approving agency for the State where such educational 
institution is located, or by the Secretary, or (2) such course 
is approved (A) for the enrollment of the particular individual 
under the provisions of section 3536 of this title or (B) for 
special restorative training under subchapter V of chapter 35 
of this title. Approval of courses by State approving agencies 
shall be in accordance with the provisions of this chapter and 
chapters 34 and 35 of this title and such other regulations and 
policies as the State approving agency may adopt. Each State 
approving agency shall furnish the Secretary with a current 
list of educational institutions specifying courses which it 
has approved, and, in addition to such list, it shall furnish 
such other information to the Secretary as it and the Secretary 
may determine to be necessary to carry out the purposes of this 
chapter and chapters 34 and 35 of this title. Each State 
approving agency shall notify the Secretary of the disapproval 
of any course previously approved and shall set forth the 
reasons for such disapproval.
  (b)(1) The Secretary shall be responsible for the approval of 
courses of education offered by any agency of the Federal 
Government authorized under other laws to supervise such 
education. The Secretary may approve any course in any other 
educational institution in accordance with the provisions of 
this chapter and chapters 34 and 35 of this title.
  (2)(A) Subject to sections 3675(b)(1) and (b)(2), 3680A, 
3684, and 3696 of this title, a program of education is deemed 
to be approved for purposes of this chapter if a State 
approving agency, or the Secretary when acting in the role of a 
State approving agency, determines that the program is one of 
the following programs:
          (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.).
          (ii) A flight training course approved by the Federal 
        Aviation Administration that is offered by a certified 
        pilot school that possesses a valid Federal Aviation 
        Administration pilot school certificate.
          (iii) An apprenticeship program registered with the 
        Office of Apprenticeship (OA) of the Employment 
        Training Administration of the Department of Labor or a 
        State apprenticeship agency recognized by the Office of 
        Apprenticeship pursuant to the Act of August 16, 1937 
        (popularly known as the ``National Apprenticeship 
        Act''; 29 U.S.C. 50 et seq.).
          (iv) A program leading to a secondary school diploma 
        offered by a secondary school approved in the State in 
        which it is operating.
  (B) A licensure test offered by a Federal, State, or local 
government is deemed to be approved for purposes of this 
chapter.
  (C) A course that is described in both subparagraph (A)(i) of 
this paragraph and in [paragraph (14) or (15)] paragraph (15) 
or (16) of section 3676(c) of this title shall not be deemed to 
be approved for purposes of this chapter unless--
          (i) a State approving agency, or the Secretary when 
        acting in the role of a State approving agency, 
        determines that the course meets the applicable 
        criteria in such paragraphs; or
          (ii) the Secretary issues a waiver for such course 
        under section 3676(f)(1) of this title.
  (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.
  (c)(1)(A) The State approving agency for a multi-State 
apprenticeship program is--
          (i) for purposes of approval of the program, the 
        State approving agency for the State in which the 
        headquarters of the apprenticeship program is located; 
        and
          (ii) for all other purposes, the State approving 
        agency for the State in which the apprenticeship 
        program takes place.
  (B) In this paragraph, the term ``multi-State apprenticeship 
program'' means a non-Federal apprenticeship program operating 
in more than one State that meets the minimum national program 
standards, as developed by the Department of Labor.
  (2) The period of a program of apprenticeship may be 
determined based upon a specific period of time (commonly 
referred to as a ``time-based program''), based upon the 
demonstration of successful mastery of skills (commonly 
referred to as a ``competency-based program''), or based upon a 
combination thereof.
  (3)(A) In the case of a competency-based program of 
apprenticeship, State approving agencies shall determine the 
period for which payment may be made for such a program under 
chapters 30 and 35 of this title and chapter 1606 of title 10. 
In determining the period of such a program, State approving 
agencies shall take into consideration the approximate term of 
the program recommended in registered apprenticeship program 
standards recognized by the Secretary of Labor.
  (B) The sponsor of a competency-based program of 
apprenticeship shall provide notice to the State approving 
agency involved of any such standards that may apply to the 
program and the proposed approximate period of training under 
the program.
  (4) The sponsor of a competency-based program of 
apprenticeship shall notify the Secretary upon the successful 
completion of a program of apprenticeship by an individual 
under chapter 30 or 35 of this title, or chapter 1606 of title 
10, as the case may be.
  (d)(1) Pursuant to regulations prescribed by the Secretary in 
consultation with the Secretary of Labor, the Secretary and 
State approving agencies shall actively promote the development 
of apprenticeship and on the job training programs for the 
purposes of sections 3677 and 3687 of this title and shall 
utilize the services of disabled veterans' outreach program 
specialists under section 4103A of this title to promote the 
development of such programs. The Secretary of Labor shall 
provide assistance and services to the Secretary, and to State 
approving agencies, to increase the use of apprenticeships.
  (2) In conjunction with outreach services provided by the 
Secretary under chapter 77 of this title for education and 
training benefits, each State approving agency shall conduct 
outreach programs and provide outreach services to eligible 
persons and veterans about education and training benefits 
available under applicable Federal and State law.
  (e) A program of education exclusively by correspondence, and 
the correspondence portion of a combination correspondence-
residence course leading to a vocational objective, that is 
offered by an educational institution (as defined in section 
3452(c) of this title) may be approved only if (1) the 
educational institution is accredited by an entity recognized 
by the Secretary of Education, and (2) at least 50 percent of 
those pursuing such a program or course require six months or 
more to complete the program or course.

           *       *       *       *       *       *       *


Sec. 3675. Approval of accredited courses

  (a)(1) A State approving agency, or the Secretary when acting 
in the role of a State approving agency, may approve accredited 
programs (including non-degree accredited programs) not covered 
by section 3672 of this title when--
          (A) such courses have been accredited and approved by 
        a nationally recognized accrediting agency or 
        association;
          (B) such courses are conducted under the Act of 
        February 23, 1917 (20 U.S.C. 11 et seq.);
          (C) such courses are accepted by the State department 
        of education for credit for a teacher's certificate or 
        a teacher's degree; or
          (D) such courses are 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) For the purposes of this chapter, the Secretary of 
Education shall publish a list of nationally recognized 
accrediting agencies and associations which that Secretary 
determines to be reliable authority as to the quality of 
training offered by an educational institution.
  (B) Except as provided in section 3672(e) of this title, a 
State approving agency may utilize the accreditation of any 
accrediting association or agency listed pursuant to 
subparagraph (A) of this paragraph for approval of courses 
specifically accredited and approved by such accrediting 
association or agency.
  (3)(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.
  (b) As a condition of approval under this section, the State 
approving agency, or the Secretary when acting in the role of a 
State approving agency, must find the following:
          (1) The educational institution keeps adequate 
        records, as prescribed by the State approving agency, 
        or the Secretary when acting in the role of a State 
        approving agency, to show the progress and grades of 
        the eligible person or veteran and to show that 
        satisfactory standards relating to progress and conduct 
        are enforced.
          (2) The educational institution maintains a written 
        record of the previous education and training of the 
        eligible person or veteran that clearly indicates that 
        appropriate credit has been given by the educational 
        institution for previous education and training, with 
        the training period shortened proportionately.
          (3) The educational institution and its approved 
        courses meet the criteria of paragraphs (1), (2), (3), 
        [(14), (15), and (16)] (15), (16), and (17) of section 
        3676(c) of this title (or, with respect to such 
        paragraphs (14) and (15), the requirements under such 
        paragraphs are waived pursuant to subsection (f)(1) of 
        section 3676 of this title).
          (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 Committee on Veterans' Affairs of 
        the Senate and the Committee on Veterans' Affairs of 
        the House of Representatives notice of such waiver.
          (5) The educational institution agrees to, not later 
        than 30 days after any date on which such educational 
        institution becomes subject to an action or event 
        described in section 3673(e)(3) of this title, submit 
        to the State approving agency, or the Secretary when 
        acting in the role of a State approving agency, a 
        notification of such action or event in such form and 
        containing such information as the Secretary determines 
        appropriate.
  (c)(1) A State approving agency may approve the 
entrepreneurship courses offered by a qualified provider of 
entrepreneurship courses.
  (2) For purposes of this subsection, the term 
``entrepreneurship course'' means a non-degree, non-credit 
course of business education that enables or assists a person 
to start or enhance a small business concern (as defined 
pursuant to section 3(a) of the Small Business Act (15 U.S.C. 
632(a))).
  (3) Subsection (a) and paragraphs (1) and (2) of subsection 
(b) shall not apply to--
          (A) an entrepreneurship course offered by a qualified 
        provider of entrepreneurship courses; and
          (B) a qualified provider of entrepreneurship courses 
        by reason of such provider offering one or more 
        entrepreneurship courses.
  (4) Notwithstanding paragraph (3), a qualified provider of 
entrepreneurship courses shall maintain such records as the 
Secretary determines to be necessary to comply with reporting 
requirements that apply under section 3684(a)(1) of this title 
with respect to eligible persons and veterans enrolled in an 
entrepreneurship course offered by the provider.
  (d)(1) 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.
  (2) Each report submitted under paragraph (1) shall include, 
for the year covered by the report, the following:
          (A) The name of each educational institution for 
        which a waiver was issued.
          (B) The justification for each such waiver.
          (C) The total number of waivers issued.

Sec. 3676. Approval of nonaccredited courses

  (a) No course of education which has not been approved by a 
State approving agency pursuant to section 3675 of this title, 
which is offered by a public or private, profit or nonprofit, 
educational institution shall be approved for the purposes of 
this chapter unless 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.
  (b) Such application shall be accompanied by not less than 
two copies of the current catalog or bulletin which is 
certified as true and correct in content and policy by an 
authorized owner or official and includes the following:
          (1) Identifying data, such as volume number and date 
        of publication;
          (2) Names of the institution and its governing body, 
        officials and faculty;
          (3) A calendar of the institution showing legal 
        holidays, beginning and ending date of each quarter, 
        term, or semester, and other important dates;
          (4) Institution policy and regulations on enrollment 
        with respect to enrollment dates and specific entrance 
        requirements for each course;
          (5) Institution policy and regulations relative to 
        leave, absences, class cuts, makeup work, tardiness and 
        interruptions for unsatisfactory attendance;
          (6) Institution policy and regulations relative to 
        standards of progress required of the student by the 
        institution (this policy will define the grading system 
        of the institution, the minimum grades considered 
        satisfactory, conditions for interruption for 
        unsatisfactory grades or progress and a description of 
        the probationary period, if any, allowed by the 
        institution, and conditions of reentrance for those 
        students dismissed for unsatisfactory progress. A 
        statement will be made regarding progress records kept 
        by the institution and furnished the student);
          (7) Institution policy and regulations relating to 
        student conduct and conditions for dismissal for 
        unsatisfactory conduct;
          (8) Detailed schedules of fees, charges for tuition, 
        books, supplies, tools, student activities, laboratory 
        fees, service charges, rentals, deposits, and all other 
        charges;
          (9) Policy and regulations of the institution 
        relative to the refund of the unused portion of 
        tuition, fees, and other charges in the event the 
        student does not enter the course or withdraws or is 
        discontinued therefrom;
          (10) A description of the available space, 
        facilities, and equipment;
          (11) A course outline for each course for which 
        approval is requested, showing subjects or units in the 
        course, type of work or skill to be learned, and 
        approximate time and clock hours to be spent on each 
        subject or unit; and
          (12) Policy and regulations of the institution 
        relative to granting credit for previous educational 
        training.
  (c) The appropriate State approving agency may approve the 
application of such institution when the institution and its 
non-accredited courses are found upon investigation to have met 
the following criteria:
          (1) The courses, curriculum, and instruction are 
        consistent in quality, content, and length with similar 
        courses in public schools and other private schools in 
        the State, with recognized accepted standards.
          (2) There is in the institution adequate space, 
        equipment, instructional material, and instructor 
        personnel to provide training of good quality.
          (3) Educational and experience qualifications of 
        directors, administrators, and instructors are 
        adequate.
          (4) The institution maintains a written record of the 
        previous education and training of the eligible person 
        and clearly indicates that appropriate credit has been 
        given by the institution for previous education and 
        training, with the training period shortened 
        proportionately and the eligible person so notified.
          (5) A copy of the course outline, schedule of 
        tuition, fees, and other charges, regulations 
        pertaining to absence, grading policy, and rules of 
        operation and conduct will be furnished the eligible 
        person upon enrollment.
          (6) Upon completion of training, the eligible person 
        is given a certificate by the institution indicating 
        the approved course and indicating that training was 
        satisfactorily completed.
          (7) Adequate records as prescribed by the State 
        approving agency are kept to show attendance and 
        progress or grades, and satisfactory standards relating 
        to attendance, progress, and conduct are enforced.
          (8) The institution complies with all local, city, 
        county, municipal, State, and Federal regulations, such 
        as fire codes, building and sanitation codes. The State 
        approving agency may require such evidence of 
        compliance as is deemed necessary.
          (9) The institution is financially sound and capable 
        of fulfilling its commitments for training.
          (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.
          (11) The institution does not exceed its enrollment 
        limitations as established by the State approving 
        agency.
          (12) The institution's administrators, directors, 
        owners, and instructors are of good reputation and 
        character.
          (13) The institution has and maintains a policy for 
        the refund of the unused portion of tuition, fees, and 
        other charges in the event the eligible person fails to 
        enter the course or withdraws or is discontinued 
        therefrom at any time before completion and--
                  (A) in the case of an institution (other than 
                (i) a Federal, State, or local Government 
                institution or (ii) an institution described in 
                subparagraph (B)), such policy provides that 
                the amount charged to the eligible person for 
                tuition, fees, and other charges for a portion 
                of the course shall not exceed the approximate 
                pro rata portion of the total charges for 
                tuition, fees, and other charges that the 
                length of the completed portion of the course 
                bears to its total length; or
                  (B) in the case of an institution that is a 
                nonaccredited public educational institution, 
                the institution has and maintains a refund 
                policy regarding the unused portion of tuition, 
                fees, and other charges that is substantially 
                the same as the refund policy followed by 
                accredited public educational institutions 
                located within the same State as such 
                institution.
          (14) The institution agrees to, not later than 30 
        days after any date on which such institution becomes 
        subject to an action or event described in section 
        3673(e)(3) of this title, submit to the State approving 
        agency, or the Secretary when acting in the role of a 
        State approving agency, a notification of such action 
        or event in such form and containing such information 
        as the Secretary determines appropriate.
          [(14)] (15) In the case of a course designed to 
        prepare an individual for licensure or certification in 
        a State, the course--
                  (A) meets all instructional curriculum 
                licensure or certification requirements of such 
                State; and
                  (B) in the case of a course designed to 
                prepare an individual for licensure to practice 
                law in a State, is accredited by a specialized 
                accrediting agency for programs of legal 
                education or association recognized by the 
                Secretary of Education under subpart 2 of part 
                H of title IV of the Higher Education Act of 
                1965 (20 U.S.C. 1099b), from which recipients 
                of law degrees from such accredited programs 
                are eligible to sit for a bar examination in 
                any State.
          [(15)] (16) In the case of a course designed to 
        prepare an individual for employment pursuant to 
        standards developed by a board or agency of a State in 
        an occupation that requires approval, licensure, or 
        certification, the course--
                  (A) meets such standards; and
                  (B) in the case of a course designed to 
                prepare an individual for licensure to practice 
                law in a State, is accredited by a specialized 
                accrediting agency for programs of legal 
                education or association recognized by the 
                Secretary of Education under subpart 2 of part 
                H of title IV of the Higher Education Act of 
                1965 (20 U.S.C. 1099b), from which recipients 
                of law degrees from such accredited programs 
                are eligible to sit for a bar examination in 
                any State.
          [(16)] (17) Such additional criteria as may be deemed 
        necessary by the State approving agency if the 
        Secretary, in consultation with the State approving 
        agency and pursuant to regulations prescribed to carry 
        out this paragraph, determines such criteria are 
        necessary and treat public, private, and proprietary 
        for-profit educational institutions equitably.
  (d) The Secretary may waive, in whole or in part, the 
requirements of subsection (c)(13) of this section in the case 
of an educational institution which--
          (1) is a college, university, or similar institution 
        offering postsecondary level academic instruction that 
        leads to an associate or higher degree,
          (2) is operated by an agency of a State or of a unit 
        of local government,
          (3) is located within such State or, in the case of 
        an institution operated by an agency of a unit of local 
        government, within the boundaries of the area over 
        which such unit has taxing jurisdiction, and
          (4) is a candidate for accreditation by a regional 
        accrediting association,
if the Secretary determines, pursuant to regulations which the 
Secretary shall prescribe, that such requirements would work an 
undue administrative hardship because the total amount of 
tuition, fees, and other charges at such institution is 
nominal.
  (e) Notwithstanding any other provision of this title, a 
course of education shall not be approved under this section if 
it is to be pursued in whole or in part by independent study.
  (f)(1) The Secretary may waive the requirements of paragraph 
(14) or (15) of subsection (c) in the case of a course of 
education offered by an educational institution (either 
accredited or not accredited) if the Secretary determines all 
of the following:
          (A) The educational institution is not accredited by 
        an agency or association recognized by the Secretary of 
        Education.
          (B) The course did not meet the requirements of such 
        paragraph at any time during the 2-year period 
        preceding the date of the waiver.
          (C) The waiver furthers the purposes of the 
        educational assistance programs administered by the 
        Secretary or would further the education interests of 
        individuals eligible for assistance under such 
        programs.
          (D) The educational institution does not provide any 
        commission, bonus, or other incentive payment based 
        directly or indirectly on success in securing 
        enrollments or financial aid to any persons or entities 
        engaged in any student recruiting or admission 
        activities or in making decisions regarding the award 
        of student financial assistance, except for the 
        recruitment of foreign students residing in foreign 
        countries who are not eligible to receive Federal 
        student assistance.
  (2) Not later than 30 days after the date on which the 
Secretary issues a waiver under paragraph (1), the Secretary 
shall submit to Congress notice of such waiver and a 
justification for issuing such waiver.

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Sec. 3679. Disapproval of courses

  (a)(1) Except as provided by paragraph (2), any course 
approved for the purposes of this chapter which fails to meet 
any of the requirements of this chapter (including failure to 
comply with a risk-based survey under this chapter or secure an 
affirmation of approval by the appropriate State approving 
agency following the survey) shall be immediately disapproved 
by the Secretary or the appropriate State approving agency. An 
educational institution which has its courses disapproved by 
the Secretary or a State approving agency will be notified of 
such disapproval by a certified or registered letter of 
notification and a return receipt secured.
  (2) In the case of a course of education that would be 
subject to disapproval under paragraph (1) solely for the 
reason that the Secretary of Education withdraws the 
recognition of the accrediting agency that accredited the 
course, the Secretary of Veterans Affairs, in consultation with 
the Secretary of Education, and notwithstanding the withdrawal, 
may continue to treat the course as an approved course of 
education under this chapter for a period not to exceed 18 
months from the date of the withdrawal of recognition of the 
accrediting agency, unless the Secretary of Veterans Affairs or 
the appropriate State approving agency determines that there is 
evidence to support the disapproval of the course under this 
chapter. The Secretary shall provide to any veteran enrolled in 
such a course of education notice of the status of the course 
of education.
  (3) In this section, the term ``risk-based survey'' means a 
risk-based survey developed under section 3673A(a) of this 
title.
  (b) Each State approving agency shall notify the Secretary of 
each course which it has disapproved under this section. The 
Secretary shall notify the State approving agency of the 
Secretary's disapproval of any educational institution under 
chapter 31 of this title.
  (c)(1) Notwithstanding any other provision of this chapter 
and subject to paragraphs (3) through (6), the Secretary shall 
disapprove a course of education provided by a public 
institution of higher learning if the institution charges 
tuition and fees for that course for covered individuals who 
are pursuing the course with educational assistance under 
chapter 30, 31, 33, or 35 of this title while living in the 
State in which the institution is located at a rate that is 
higher than the rate the institution charges for tuition and 
fees for that course for residents of the State in which the 
institution is located, regardless of the covered individual's 
State of residence.
  (2) For purposes of this subsection, a covered individual is 
any individual as follows:
          (A) A veteran who was discharged or released from a 
        period of not fewer than 90 days of service in the 
        active military, naval, air, or space service.
          (B) An individual who is entitled to assistance 
        under--
                  (i) section 3311(b)(8) of this title; or
                  (ii) section 3319 of this title by virtue of 
                the individual's relationship to--
                          (I) a veteran described in 
                        subparagraph (A); or
                          (II) a member of the uniformed 
                        services described in section 3319(b) 
                        of this title who is serving on active 
                        duty.
          (C) An individual who is entitled to rehabilitation 
        under section 3102(a) of this title.
          (D) An individual who is entitled to assistance under 
        section 3510 of this title.
  (3) If after enrollment in a course of education that is 
subject to disapproval under paragraph (1) by reason of 
paragraph (2)(A), (2)(B), or (2)(C) a covered individual 
pursues one or more courses of education at the same public 
institution of higher learning while remaining continuously 
enrolled (other than during regularly scheduled breaks between 
courses, semesters or terms) at that institution of higher 
learning, any course so pursued by the covered individual at 
that institution of higher learning while so continuously 
enrolled shall also be subject to disapproval under paragraph 
(1).
  (4)(A) It shall not be grounds to disapprove a course of 
education under paragraph (1) if a public institution of higher 
learning requires a covered individual pursuing a course of 
education at the institution to demonstrate an intent, by means 
other than satisfying a physical presence requirement, to 
establish residency in the State in which the institution is 
located, or to satisfy other requirements not relating to the 
establishment of residency, in order to be charged tuition and 
fees for that course at a rate that is equal to or less than 
the rate the institution charges for tuition and fees for that 
course for residents of the State.
  (B) To the extent feasible, the Secretary shall make publicly 
available on the internet website of the Department a database 
explaining any requirements described in subparagraph (A) that 
are established by a public institution of higher learning for 
an individual to be charged tuition and fees at a rate that is 
equal to or less than the rate the institution charges for 
tuition and fees for residents of the State in which the 
institution is located. The Secretary shall disapprove a course 
of education provided by such an institution that does not 
provide the Secretary--
          (i) an initial explanation of such requirements; and
          (ii) not later than 90 days after the date on which 
        any such requirements change, the updated requirements.
  (5) The Secretary may waive such requirements of paragraph 
(1) as the Secretary considers appropriate.
  (6) Disapproval under paragraph (1) shall apply only with 
respect to educational assistance under chapters 30, 31, 33, 
and 35 of this title.
  (d) Notwithstanding any other provision of this chapter, the 
Secretary or the applicable State approving agency shall 
disapprove a course of education [described in paragraph (14) 
or (15)] described in paragraph (15) or (16) of section 3676(c) 
of this title unless the educational institution providing the 
course of education--
          (1) publicly discloses 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
          (2) makes each disclosure required by paragraph (1) 
        in a manner that the Secretary considers prominent (as 
        specified by the Secretary in regulations prescribed 
        for purposes of this subsection).
  (e)(1) Notwithstanding any other provision of this chapter, 
beginning on August 1, 2019, a State approving agency, or the 
Secretary when acting in the role of the State approving 
agency, shall disapprove a course of education provided by an 
educational institution that has in effect a policy that is 
inconsistent with any of the following:
          (A) A policy that permits any covered individual to 
        attend or participate in the course of education during 
        the period beginning on the date on which the 
        individual provides to the educational institution a 
        certificate of eligibility for entitlement to 
        educational assistance under chapter 31, 33, or 35 of 
        this title and ending on the earlier of the following 
        dates:
                  (i) The date on which the Secretary provides 
                payment for such course of education to such 
                institution.
                  (ii) The date that is 90 days after the date 
                on which the educational institution certifies 
                for tuition and fees following receipt from the 
                student such certificate of eligibility.
          (B) A policy that ensures that the educational 
        institution will not impose any penalty, including the 
        assessment of late fees, the denial of access to 
        classes, libraries, or other institutional facilities, 
        or the requirement that a covered individual borrow 
        additional funds, on any covered individual because of 
        the individual's inability to meet his or her financial 
        obligations to the institution due to the delayed 
        disbursement of a payment to be provided by the 
        Secretary under chapter 31 33, or 35 of this title.
  (2) For purposes of this subsection, a covered individual is 
any individual who is entitled to educational assistance under 
chapter 31 1 33, or 35 of this title.
  (3) The Secretary may waive such requirements of paragraph 
(1) as the Secretary considers appropriate.
  (4) It shall not be inconsistent with a policy described in 
paragraph (1) for an educational institution to require a 
covered individual to take the following additional actions:
          (A) Submit a certificate of eligibility for 
        entitlement to educational assistance not later than 
        the first day of a course of education for which the 
        individual has indicated the individual wishes to use 
        the individual's entitlement to educational assistance.
          (B) Submit a written request to use such entitlement.
          (C) Provide additional information necessary to the 
        proper certification of enrollment by the educational 
        institution.
  (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, when 
acting in the role of the State approving agency, 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, 31, 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, to the maximum extent 
        practicable, 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.
          (I) Comply with the notification requirements under 
        sections 3675(b)(5) and 3676(c)(14) of this title, when 
        applicable.
  (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 any 
Federal agency, determines that an educational institution, or 
any person with whom the institution has an agreement to 
provide educational programs, marketing, advertising, 
recruiting or admissions services, 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 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) Provides a commission, bonus, or other incentive 
        payment based directly or indirectly on success in 
        securing enrollments or financial aid to any persons or 
        entities engaged in any student recruiting or admission 
        activities or in making decisions regarding the award 
        of student financial assistance, except for the 
        recruitment of foreign students residing in foreign 
        countries who are not eligible to receive Federal 
        student assistance.
          (C) In determining whether a violation of 
        subparagraph (B) has occurred, the State approving 
        agency, or the Secretary when acting in the place of 
        the State approving agency, shall construe the 
        requirements of this paragraph in accordance with the 
        regulations and guidance prescribed by the Secretary of 
        Education under section 487(a)(20) of the Higher 
        Education Act of 1965 (20 U.S.C. 1094(a)(20)).
  (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, when acting in the role of the State approving 
agency, 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) Accreditor sanctions.
          (B) Accreditation probation.
          (C) The loss of accreditation or candidacy for 
        accreditation.
  (4)(A) An action described in this subparagraph is any of the 
following:
          (i) Submitting to the Secretary a recommendation that 
        the Secretary publish 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), (2), or (3).
          (ii) Suspending the approval of the courses and 
        programs of education offered by the educational 
        institution by disapproving new enrollments of eligible 
        veterans and eligible persons in each course or program 
        of education offered by that educational institution.
          (iii) Revoking the approval of the courses and 
        programs of education offered by the educational 
        institution by disapproving all enrollments of eligible 
        veterans and eligible persons in each course or program 
        of education offered by that educational institution
  (B)(i) 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.
  (ii) Each State approving agency and the Secretary, when 
acting in the role of the State approving agency, shall adhere 
to the guidelines established under clause (i).
  (C) The State approving agency, in consultation with the 
Secretary, or the Secretary when acting in the role of the 
State approving agency, may limit an action described in 
subparagraph (A)(ii) to individuals not enrolled at the 
educational institution before the period described in such 
subparagraph.
  (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 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 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) Not later than October 1 of each year, the Secretary 
shall submit to the Committee on Veterans' Affairs of the 
Senate and the Committee on Veterans' Affairs of the House of 
Representatives 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) This subsection shall not apply to an educational 
institution--
          (A) located in a foreign country; or
          (B) that provides to a covered individual consumer 
        information regarding costs of the program of education 
        (including financial aid available to such covered 
        individual) using a form or template developed by the 
        Secretary of Education.
  (8) In this subsection, the term ``covered individual'' means 
an individual who is pursuing a course of education at an 
educational institution under chapter 30, 31, 32, 33, or 35 of 
this title, or chapter 1606 or 1607 of title 10.

SUBCHAPTER III--MISCELLANEOUS PROVISIONS

           *       *       *       *       *       *       *



Sec. 3680A. Disapproval of enrollment in certain courses

  (a) The Secretary shall not approve the enrollment of an 
eligible veteran in any of the following:
          (1) Any bartending course or personality development 
        course.
          (2) Any sales or sales management course which does 
        not provide specialized training within a specific 
        vocational field.
          (3) Any type of course which the Secretary finds to 
        be avocational or recreational in character (or the 
        advertising for which the Secretary finds contains 
        significant avocational or recreational themes) unless 
        the veteran submits justification showing that the 
        course will be of bona fide use in the pursuit of the 
        veteran's present or contemplated business or 
        occupation.
          (4) Any independent study program except an 
        independent study program (including such a program 
        taken over open circuit television) that--
                  (A) is accredited by an accrediting agency or 
                association recognized by the Secretary of 
                Education under subpart 2 of part H of title IV 
                of the Higher Education Act of 1965 (20 U.S.C. 
                1099b);
                  (B) leads to--
                          (i) a standard college degree;
                          (ii) a certificate that reflects 
                        educational attainment offered by an 
                        institution of higher learning; or
                          (iii) a certificate that reflects 
                        completion of a course of study offered 
                        by--
                                  (I) an area career and 
                                technical education school (as 
                                defined in subparagraphs (C) 
                                and (D) of section 3(3) of the 
                                Carl D. Perkins Career and 
                                Technical Education Act of 2006 
                                (20 U.S.C. 2302(3))) that 
                                provides education at the 
                                postsecondary level; or
                                  (II) a postsecondary 
                                vocational institution (as 
                                defined in section 102(c) of 
                                the Higher Education Act of 
                                1965 (20 U.S.C. 1002(c))) that 
                                provides education at the 
                                postsecondary level; and
                  (C) in the case of a program described in 
                subparagraph (B)(iii)--
                          (i) provides training aligned with 
                        the requirements of employers in the 
                        State or local area where the program 
                        is located, which may include in-demand 
                        industry sectors or occupations; and
                          (ii) provides a student, upon 
                        completion of the program, with a 
                        recognized postsecondary credential 
                        that is recognized by employers in the 
                        relevant industry, which may include a 
                        credential recognized by industry or 
                        sector partnerships in the State or 
                        local area where the industry is 
                        located; and
                          (iii) meets such content and 
                        instructional standards as may be 
                        required to comply with the criteria 
                        under [section 3676(c)(14) and (15)] 
                        section 3676(c)(15) and (16) of this 
                        title.
  (b) Except to the extent otherwise specifically provided in 
this title or chapter 106 of title 10, the Secretary shall not 
approve the enrollment of an eligible veteran in any course of 
flight training other than one given by an educational 
institution of higher learning for credit toward a standard 
college degree the eligible veteran is seeking.
  (c) The Secretary shall not approve the enrollment of an 
eligible veteran in any course to be pursued by radio.
  (d)(1) The Secretary shall not approve the enrollment of any 
eligible veteran, not already enrolled, in any course for any 
period during which the Secretary finds that more than 85 
percent of the students enrolled in the course are having all 
or part of their tuition, fees, or other charges paid to or for 
them by the educational institution or by the Department of 
Veterans Affairs under this title or under chapter 1606 of 
title 10, except with respect to tuition, fees, or other 
charges that are paid under a payment plan at an educational 
institution that the Secretary determines has a history of 
offering payment plans that are completed not later than 180 
days after the end of the applicable term, quarter, or 
semester.
  (2) The Secretary may waive the requirements of paragraph 
(1), in whole or in part, if the Secretary determines, pursuant 
to regulations which the Secretary shall prescribe, it to be in 
the interest of the eligible veteran and the Federal 
Government.
  (3)(A) The Secretary shall establish a process by which an 
educational institution may request a review of a determination 
that the educational institution does not meet the requirements 
of paragraph (1).
  (B) An educational institution that requests a review under 
subparagraph (A)--
          (i) shall request the review not later than 30 days 
        after the start of the term, quarter, or semester for 
        which the determination described in subparagraph (A) 
        applies; and
          (ii) may include any information that the educational 
        institution believes the Department should have taken 
        into account when making the determination, including 
        with respect to any mitigating circumstances.
  (C) The Under Secretary of Benefits shall issue an initial 
decision for each review requested under subparagraph (A) by 
not later than 30 days after the date of the request, to the 
extent feasible.
  (D) An educational institution may request the Secretary to 
review the decision by the Under Secretary under subparagraph 
(C). The Secretary shall review each decision so requested and, 
pursuant to such review, shall issue a final decision 
sustaining, modifying, or overturning the decision by the Under 
Secretary.
  (E) The Secretary shall carry out this paragraph without 
regard to any review process carried out by the Secretary under 
chapter 51 of this title.
  (4) Paragraph (1) shall not apply to any course offered by an 
educational institution if--
          (A) the majority of courses offered by the 
        educational institution are approved under section 3672 
        or 3675 of this title; and
          (B) the total number of veterans and persons 
        receiving assistance under this title or under chapter 
        1606 of title 10 who are enrolled in such institution 
        equals 35 percent or less of the total student 
        enrollment at such institution (computed separately for 
        the main campus and any branch or extension of such 
        institution).
  (5)(A) Paragraph (1) shall not apply to any course offered by 
an educational institution if--
          (i) the majority of courses offered by the 
        educational institution are approved under section 3676 
        of this title; and
          (ii) the total number of veterans and persons 
        receiving assistance under this title or under chapter 
        1606 of title 10 who are enrolled in such institution 
        equals 35 percent or less of the total student 
        enrollment at such institution (computed separately for 
        the main campus and any branch or extension of such 
        institution).
  (B) Notwithstanding subparagraph (A), on a case by case 
basis, the Secretary may apply paragraph (1) with respect to 
any course otherwise covered by such subparagraph if the 
Secretary has reason to believe that the enrollment of veterans 
and persons described in clause (ii) of such subparagraph may 
be in excess of 85 percent of the total student enrollment in 
such course.
  (6) The Secretary shall ensure that an educational 
institution that meets the requirements of paragraph (4) or (5) 
submits information to the Secretary on a biennial basis to 
verify meeting such requirements. During such biennial period 
in which an educational institution is covered by such 
verification, the Secretary may not require the educational 
institution to submit information with respect to meeting the 
requirements of paragraph (1).
  (7) Paragraph (1) shall not apply with respect to the 
enrollment of a veteran--
          (A) in a program of education for which fewer than 10 
        students are having all or part of their tuition, fees, 
        or other charges paid to or for them by the educational 
        institution or by the Department of Veterans Affairs 
        under this title or under chapter 1606 of title 10;
          (B) in a course offered pursuant to section 3019, 
        3034(a)(3), 3234, or 3241(a)(2) of this title;
          (C) in a farm cooperative training course; or
          (D) in a course described in subsection (g).
  (e) The Secretary may not approve the enrollment of an 
eligible veteran in a course not leading to a standard college 
degree offered by a proprietary profit or proprietary nonprofit 
educational institution if--
          (1) the educational institution has been operating 
        for less than two years;
          (2) the course is offered at a branch of the 
        educational institution and the branch has been 
        operating for less than two years; or
          (3) following either a change in ownership or a 
        complete move outside its original general locality, 
        the educational institution does not retain 
        substantially the same faculty, student body, and 
        courses as before the change in ownership or the move 
        outside the general locality (as determined in 
        accordance with regulations the Secretary shall 
        prescribe) unless the educational institution following 
        such change or move has been in operation for at least 
        two years.
  (f)(1) Except as provided in paragraph (2), the Secretary may 
not approve the enrollment of an eligible veteran in a course 
as a part of a program of education offered by an educational 
institution if the course is provided under contract by another 
educational institution or entity and--
          (A) the Secretary would be barred under subsection 
        (e) from approving the enrollment of an eligible 
        veteran in the course of the educational institution or 
        entity providing the course under contract; or
          (B) the educational institution or entity providing 
        the course under contract has not obtained approval for 
        the course under this chapter.
  (2)(A) In the case of a covered study-abroad course, the 
Secretary may approve the course for a period of not more than 
five years, if the contract or other written agreement under 
which the course is offered provides that--
          (i) the educational institution that offers a course 
        that is approved under this chapter agrees--
                  (I) to assume responsibility for the quality 
                and content of the covered study-abroad course; 
                and
                  (II) to serve as the certifying official for 
                the course for purposes of this chapter; and
          (ii) the educational institution that offers the 
        covered study-abroad course agrees to seek the approval 
        of the course under this chapter by not later than five 
        years after the date of the agreement.
  (B) In this paragraph, the term ``covered study-abroad 
course'' means a course that--
          (i) is provided as a part of a program of education 
        offered by an educational institution under a contract 
        or other written agreement by another educational 
        institution that offers a course that is approved under 
        this chapter;
          (ii) is provided at a location in a foreign country; 
        and
          (iii) has not been approved under this chapter.
  (g) Notwithstanding subsections (e) and (f)(1), the Secretary 
may approve the enrollment of an eligible veteran in a course 
approved under this chapter if the course is offered by an 
educational institution under contract with the Department of 
Defense or the Department of Homeland Security and is given on 
or immediately adjacent to a military base, Coast Guard 
station, National Guard facility, or facility of the Selected 
Reserve.
  (h) In this section, the terms ``State or local area'', 
``recognized postsecondary credential'', ``industry or sector 
partnership'', and ``in-demand industry sector or occupation'' 
have the meaning given such terms in section 3 of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3102).

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