Veterans Education Enhancement Act of 2016

Summary: Veterans Education Enhancement Act of 2016 This bill revises the fee that is deducted from a veteran's education entitlement under the Department of Veterans Affairs (VA) Post-9/11 educational assistance program from a monthly to a prorated fee for: (1) certain license and certification tests, and (2) national tests. The Veterans' Advisory Committee on Education is extended through December 31, 2021. The VA shall, in consultation with state approving agencies, prescribe training requirements for a school certifying official (SCO) employed by a covered educational institution offering approved veterans education courses. The VA may disapprove any course of education offered by a covered educational institution that does not ensure that an SCO meets such requirements. (A covered educational institution is an institution that has enrolled 20 or more individuals using veterans educational assistance.)  The bill extends the applicability of provisions requiring rounding down, and delays the applicability of provisions requiring rounding up, of veterans educational assistance increases for: (1) the All-Volunteer Force, and (2) survivors and dependents. The VA shall reduce the monthly housing stipend on a pro rata basis for a student who reduces his or her course load, effective for a month that begins on or after August 1, 2017. A reporting fee paid by the VA to an educational institution or joint apprenticeship training committee with respect to an institution that has 75 or more enrollees may not be used for or merged with amounts available for the general fund of the educational institution or joint apprenticeship training committee.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Education Enhancement Act 
of 2016''.

SEC. 2. CHARGE TO ENTITLEMENT FOR CERTAIN LICENSURE AND CERTIFICATION 
              TESTS AND NATIONAL TESTS UNDER DEPARTMENT OF VETERANS 
              AFFAIRS POST-9/11 EDUCATIONAL ASSISTANCE PROGRAM.

    (a) Licensure and Certification Tests.--Section 3315(c) of title 
38, United States Code, is amended by striking ``shall be determined'' 
and all that follows and inserting ``shall be pro-rated based on the 
actual amount of the fee charged for the test''.
    (b) National Tests.--Section 3315A of such title is amended--
            (1) in subsection (a), by adding at the end the following 
        new paragraph:
            ``(3) A national test that evaluates prior learning and 
        knowledge and provides an opportunity for course credit at an 
        institution of higher learning as so described.''; and
            (2) in subsection (c), by striking ``shall be determined'' 
        and all that follows and inserting ``shall be pro-rated based 
        on the actual amount of the fee charged for the test''.
    (c) Effective Date.--The amendments made by this Act shall apply to 
a test taken after the date that is 90 days after the date of the 
enactment of this Act.

SEC. 3. MODIFICATION OF PERCENTAGE INCREASE IN RATES PAYABLE UNDER 
              DEPARTMENT OF VETERANS AFFAIRS EDUCATIONAL ASSISTANCE 
              PROGRAMS.

    (a) All-Volunteer Force.--Section 3015(h)(2) of title 38, United 
States Code, is amended--
            (1) by striking ``fiscal year 2014'' and inserting ``fiscal 
        year 2025''; and
            (2) by striking ``fiscal year 2013'' and inserting ``fiscal 
        year 2024''.
    (b) Survivors and Dependents.--Section 3564(b) of such title is 
amended--
            (1) by striking ``fiscal year 2014'' and inserting ``fiscal 
        year 2025''; and
            (2) by striking ``fiscal year 2013'' and inserting ``fiscal 
        year 2024''.

SEC. 4. EXTENSION OF AUTHORITY FOR VETERANS' ADVISORY COMMITTEE ON 
              EDUCATION.

    Section 3692(c) of such title is amended by striking ``December 31, 
2016'' and inserting ``December 31, 2021''.

SEC. 5. TRAINING FOR SCHOOL CERTIFYING OFFICIALS.

    (a) Training Requirement.--The Secretary of Veterans Affairs shall, 
in consultation with the State approving agencies, set forth 
requirements relating to training for school certifying officials 
employed by covered educational institutions offering courses of 
education approved under chapter 36 of title 38, United States Code. If 
a covered educational institution does not ensure that a school 
certifying official employed by the educational institution meets such 
requirements, the Secretary may disapprove any course of education 
offered by such educational institution.
    (b) Definitions.--In this section:
            (1) The term ``covered educational institution'' means an 
        educational institution that has enrolled 20 or more 
        individuals using educational assistance under title 38, United 
        States Code.
            (2) The term ``school certifying official'' means an 
        employee of an educational institution with primary 
        responsibility for certifying veteran enrollment at the 
        educational institution.
            (3) The term ``State approving agency'' means a department 
        or agency of a State designated under section 3671 of title 38, 
        United States Code.

SEC. 6. REDUCTION OF AMOUNT OF HOUSING STIPEND PAYMENTS FOR REDUCTION 
              OF COURSE HOURS.

    (a) In General.--Subsection (i) of section 3313 of title 38, United 
States Code, is amended to read as follows:
    ``(i) Determination of Housing Stipend Payments.--
            ``(1) In general.--Any monthly housing stipend payable 
        under this section during the academic year beginning on August 
        1 of a calendar year shall be determined utilizing rates for 
        basic allowances for housing payable under section 403 of title 
        37 in effect as of January 1 of such calendar year.
            ``(2) Reduction in cases of dropped classes.--In the case 
        of any individual who receives a monthly housing stipend 
        payable under this section who reduces the number of course 
        hours borne by the individual after the beginning of an 
        academic period, the Secretary shall reduce the amount of the 
        monthly housing stipend payable to the individual accordingly 
        on a pro rata basis. If the Secretary determines that an 
        individual received a monthly housing stipend at the beginning 
        of a month and that the individual reduced the number of course 
        hours borne by the individual such that the individual was not 
        entitled to the full amount of the payment received for that 
        month, the Secretary may reduce the amount payable to the 
        individual for the subsequent month by an amount equal to the 
        amount of the overpayment.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to a month that begins on or after August 1, 2017.

SEC. 7. LIMITATION ON USE OF REPORTING FEES PAYABLE TO EDUCATIONAL 
              INSTITUTIONS AND JOINT APPRENTICESHIP TRAINING 
              COMMITTEES.

    Section 3684(c) of title 38, United States Code, is amended to read 
as follows:
    ``(c)(1) The Secretary may pay to any educational institution, or 
to the sponsor of a program of apprenticeship, furnishing education or 
training under either this chapter or chapter 31, 34, or 35 of this 
title, a reporting fee which will be in lieu of any other compensation 
or reimbursement for reports or certifications which such educational 
institution or joint apprenticeship training committee is required to 
submit to the Secretary by law or regulation.
    ``(2) Such reporting fee shall be computed for each calendar year 
by multiplying $12 by the number of eligible veterans or eligible 
persons enrolled under this chapter or chapter 31, 34, or 35 of this 
title, or $15 in the case of those eligible veterans and eligible 
persons whose educational assistance checks are directed in care of 
each institution for temporary custody and delivery and are delivered 
at the time of registration as provided under section 3680(d)(4) of 
this title, during the calendar year. The reporting fee shall be paid 
to such educational institution or joint apprenticeship training 
committee as soon as feasible after the end of the calendar year for 
which it is applicable.
    ``(3) No reporting fee payable to an educational institution under 
this subsection shall be subject to offset by the Secretary against any 
liability of such institution for any overpayment for which such 
institution may be administratively determined to be liable under 
section 3685 of this title unless such liability is not contested by 
such institution or has been upheld by a final decree of a court of 
appropriate jurisdiction.
    ``(4) Any reporting fee paid to an educational institution or joint 
apprenticeship training committee after the date of the enactment of 
the Post-9/11 Veterans Educational Assistance Improvements Act of 2011 
(Public Law 111-377)--
            ``(A) shall be utilized by such institution or committee 
        solely for the making of certifications required under this 
        chapter or chapter 31, 34, or 35 of this title or for otherwise 
        supporting programs for veterans; and
            ``(B) with respect to an institution that has 75 or more 
        enrollees described in paragraph (2), may not be used for or 
        merged with amounts available for the general fund of the 
        educational institution or joint apprenticeship training 
        committee.
    ``(5) The reporting fee payable under this subsection shall be paid 
from amounts appropriated for readjustment benefits.''.