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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2179 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 2179

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

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 8, 2012

  Mr. Webb (for himself, Mr. Harkin, Mr. Brown of Massachusetts, Mr. 
 Carper, and Mrs. McCaskill) introduced the following bill; which was 
     read twice and referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL

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

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Military and Veterans Educational 
Reform Act of 2012''.

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

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

``3675. Approval of courses approved by Secretary of Education.''.
    (c) Approval by Secretary of Veterans Affairs of Non-Degree 
Programs Not Approved by Secretary of Education.--
            (1) In general.--Subsection (a) of section 3676 of such 
        title is amended to read as follows:
    ``(a) No course of education which has not been approved by the 
Secretary or a State approving agency under section 3675 of this title 
shall be approved for the purposes of this chapter unless--
            ``(1) the course--
                    ``(A) does not lead to an associate or higher 
                degree;
                    ``(B) was not an eligible program (as defined in 
                section 481 of the Higher Education Act of 1965 (20 
                U.S.C. 1088)) at any time during the most recent two-
                year period; and
                    ``(C) is a course that the Secretary or State 
                approving agency determines, in accordance with this 
                section and such regulations as the Secretary shall 
                prescribe and on a case-by-case basis, that approval of 
                which would further the purposes of this chapter or any 
                of chapters 30 through 35 of this title; and
            ``(2) the educational institution offering such course 
        submits to the appropriate State approving agency a written 
        application for approval of such course in accordance with the 
        provisions of this chapter.''.
            (2) Additional requirements.--Subsection (c) of section 
        3676 of such title is amended--
                    (A) by redesignating paragraph (14) as paragraph 
                (21); and
                    (B) by inserting after paragraph (13) the following 
                new paragraphs:
            ``(14) Such courses providing less than 600 clock hours of 
        instruction, or its equivalent, have verified completion and 
        placement rates of at least 70 percent.
            ``(15) Courses that prepare individuals for licensure or 
        certification have verified that the course's instructional 
        curriculum appropriately includes the licensure or 
        certification requirements in the State in which the 
        institution deems such curriculum does.
            ``(16) Courses for which a State board or agency in the 
        State in which the course is designed to prepare a student 
        requires approval or licensure for employment in the recognized 
        occupation in the State is approved or licensed by such State 
        board or agency.
            ``(17) In the case of an educational institution that 
        advertises job placement rates as a means of attracting 
        students to enroll in a course of education offered by the 
        educational institution, the application contains any other 
        information necessary to substantiate the truthfulness of such 
        advertisements.
            ``(18) 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.
            ``(19) The educational institution does not make any 
        misrepresentations (as defined in section 668.71 of title 34, 
        Code of Federal Regulations (or any corresponding similar 
        regulation or ruling)) regarding the nature of its educational 
        program, the nature of its financial charges, or the 
        employability of its graduates (as defined in sections 668.72 
        through 668.74 of such title, respectively (or any 
        corresponding similar regulations or rulings)).
            ``(20) The educational institution has provided information 
        necessary to substantiate that it complies with the 
        requirements set forth under section 600.9 of title 34 Code of 
        Federal Regulations (or any corresponding similar regulation or 
        ruling).''.
            (3) Requirement that additional requirements imposed by 
        state approving agencies be approved by secretary of veterans 
        affairs.--Paragraph (21) of such subsection, as redesignated by 
        paragraph (2)(A), is amended by inserting ``and approved by the 
        Secretary'' before the period at the end.
            (4) Conforming amendments.--Section 3676 of such title is 
        amended--
                    (A) in the heading for such section, by striking 
                ``nonaccredited courses'' and inserting ``courses not 
                approved by Secretary of Education''; and
                    (B) in subsection (c), in the matter before 
                paragraph (1), by striking ``non-accredited''.
            (5) Clerical amendment.--The table of sections at the 
        beginning of chapter 36 of such title is amended by striking 
        the item relating to section 3675 and inserting the following 
        new item:

``3676. Approval of courses not approved by Secretary of Education.''.
    (d) Additional Requirements for Approval of Programs for 
Educational Assistance for Persons Enlisting for Active Duty.--Section 
2143 of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``to subsection (b)'' 
        and inserting ``to subsections (b) and (c)'';
            (2) by redesignating subsection (c) as subsection (d); and
            (3) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c)(1) Except as provided in paragraph (2), a person entitled to 
assistance under this chapter may only use such assistance for 
educational expenses incurred for an eligible program (as defined in 
section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088)) 
that--
            ``(A) is offered by an institution of higher education (as 
        defined in section 102 of such Act (20 U.S.C. 1002)) that has 
        entered into, and is complying with, a program participation 
        agreement under section 487 of such Act (20 U.S.C. 1094);
            ``(B) in the case of a program designed to prepare 
        individuals for licensure or certification, meets the 
        instructional curriculum licensure or certification 
        requirements of the State in which the institution is located; 
        and
            ``(C) in the case of a program designed to prepare 
        individuals for employment by a State board or agency in an 
        occupation that requires approval or licensure for such 
        employment, is approved or licensed by such State board or 
        agency.
    ``(2) The Secretary may, in accordance with regulations the 
Secretary shall prescribe, authorize the use of educational assistance 
awarded under this chapter for educational expenses incurred for a 
program of education that is not described in paragraph (1) if such 
program--
            ``(A) is accredited and approved by a nationally recognized 
        accrediting agency or association;
            ``(B) was not an eligible program described in paragraph 
        (1) at any time during the most recent two-year period; and
            ``(C) is a program that the Secretary determines, on a 
        case-by-case basis, that approval of which would further the 
        purposes of the program established under section 2141 of this 
        title.''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on August 1, 2013.

SEC. 3. REQUIREMENT THAT EDUCATIONAL INSTITUTIONS INFORM STUDENTS OF 
              MATTERS RELATING TO ACCREDITATION AND OUTCOMES AS 
              CONDITION OF APPROVAL FOR PURPOSES OF EDUCATIONAL 
              ASSISTANCE UNDER LAWS ADMINISTERED BY SECRETARY OF 
              VETERANS AFFAIRS AND SECRETARY OF DEFENSE.

    (a) Educational Assistance Under Laws Administered by Secretary of 
Veterans Affairs.--Section 3672 of title 38, United States Code, is 
amended--
            (1) by adding at the end the following new subsection:
    ``(f)(1) A course of education that is offered by an educational 
institution may not be approved under this chapter unless the 
educational institution discloses and makes readily available the 
information described in paragraph (2) to--
            ``(A) each individual considering enrolling in the course 
        of education at or before the moment at which the individual 
        applies for enrollment in such course of education;
            ``(B) each student who is enrolled in the course of 
        education each year the student is so enrolled; and
            ``(C) the public.
    ``(2) The information described in this paragraph with respect to 
an educational institution or a course of education of the educational 
institution is the following:
            ``(A) The names of associations, agencies, or governmental 
        bodies which accredit, approve, or license the educational 
        institution and its courses of education and the procedures 
        under which any current or prospective student may obtain or 
        review upon request a copy of the documents describing the 
        educational institution's accreditation, approval, or 
        licensing.
            ``(B) Whether the educational institution is a public 
        educational institution, a private nonprofit educational 
        institution, or a private for-profit educational institution.
            ``(C) The rates of graduation of students who enroll in the 
        course of education and the average dropout rate of all 
        students enrolled in the course of education.
            ``(D) The percentage of students enrolled in the course of 
        education who complete the course within--
                    ``(i) the standard period for completion of such 
                course of education;
                    ``(ii) 150 percent of such period; and
                    ``(iii) 200 percent of such period.
            ``(E) The median educational debt incurred by students who 
        complete the course of education.
            ``(F) The cohort default rate, as defined in section 435(m) 
        of the Higher Education Act of 1965 (20 U.S.C. 1085(m)), of the 
        educational institution.
            ``(G) The rates of job placement of students who complete 
        the course of education, as applicable, and the types of 
        employment obtained by such students.
            ``(H) For any job for which the course of education is 
        designed to prepare a student, the relevant licensing or 
        certification requirements for such job in the State for which 
        the course is designed to prepare the student to obtain such 
        license or certificate and the examination and licensure test 
        pass rates, as applicable.
            ``(I) The tuition and fees for programs of education at the 
        educational institution.
            ``(J) The percentage of students enrolled in programs of 
        education at the educational institution who have submitted a 
        complaint under section 3697C(a) of this title.
            ``(K) With respect to the information reported under 
        subparagraphs (C) through (J), indicators of how the 
        educational institution compares with the averages of all 
        public educational institutions with similar courses of 
        education in the State in which the educational institution is 
        located.
            ``(L) A description of the procedures by which student may 
        submit complaints regarding educational institutions to 
        applicable Federal and State agencies, including State 
        approving agencies and accrediting agencies or associations and 
        such contact information as may be necessary to submit such 
        complaints.
            ``(M) A description of the process established under 
        section 3697C(a) of this title and such contact information as 
        may be necessary to submit a complaint in accordance with such 
        process.
            ``(N) The policies established by the educational 
        institution regarding transfer of course credit, including the 
        following:
                    ``(i) Any established criteria the educational 
                institution uses regarding the transfer of course 
                credit earned at another educational institution.
                    ``(ii) A list of educational institutions that will 
                accept transfer of course credit for specific programs 
                of education offered by the educational institution.
                    ``(iii) A list of educational institutions from 
                which the educational institution will accept transfer 
                of course credit for specific programs offered by that 
                educational institution.
                    ``(iv) Any changes by the educational institution 
                in such policies and established criteria that first 
                took effect in the most recent one-year period.
            ``(O) A statement of the requirements of any refund 
        policies of the educational institution.
            ``(P) A statement of the requirements for officially 
        withdrawing from a course of education at the educational 
        institution.
            ``(Q) The standards which a student must maintain in order 
        to be considered to be making satisfactory progress in a course 
        of education at the educational institution.
            ``(R) A description of the services available at the 
        educational institution that are tailored specifically to meet 
        the needs of individuals receiving assistance under this 
        chapter, any of chapters 30 through 35 of this title, or 
        chapter 106A or 1606 of title 10, including services provided 
        under section 3679A(a) of this title.
            ``(S) In the case of an educational institution that 
        advertises job placement rates as a means of attracting 
        students to enroll in the educational institution, such 
        information as may be necessary to substantiate the 
        truthfulness of the claims made in such advertising.
    ``(3) The information disclosed and made readily available under 
paragraph (1) to individuals and students described in subparagraphs 
(A) and (B) of such paragraph, respectively, shall be disclosed and 
made readily available--
            ``(A) in language that can be easily understood by such 
        individuals and students; and
            ``(B) in a uniform manner that is appropriate for such 
        individuals and students, including by publications, mailings, 
        and electronic media.''; and
            (2) in subsection (b)(2)(A), as amended by section 2(b)(2), 
        in the matter before clause (i), by inserting ``subsection (f) 
        and'' after ``Subject to''.
    (b) Educational Assistance for Persons Enlisting for Active Duty.--
            (1) In general.--Chapter 106A of title 10, United States 
        Code, is amended by inserting after section 2149 the following 
        new section:
``Sec. 2149A. Disclosure requirements of educational institutions
    ``The Secretary may not provide a payment of educational expenses 
under an educational assistance program established under section 2141 
of this title for instruction at an accredited institution (as defined 
in section 2143 of this title) unless such institution discloses and 
makes readily available the information described in paragraph (2) of 
section 3672(f) of title 38 as described in paragraph (3) of such 
section to--
            ``(1) each individual considering enrolling in the course 
        of education at or before the moment at which the individual 
        applies for enrollment in such course of education;
            ``(2) each student who is enrolled in the course of 
        education each year the student is so enrolled; and
            ``(3) the public.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 106A of such title is amended by adding at 
        the end the following new item:

``2149A. Disclosure requirements of educational institutions.''.
    (c) Effective Date.--Subsection (f) of section 3672 of title 38, 
United States Code, as added by subsection (a)(1), and section 2149A of 
title 10, United States Code, as added by subsection (b)(1), shall take 
effect on August 1, 2013.

SEC. 4. ADDITIONAL REQUIREMENTS OF EDUCATIONAL INSTITUTIONS FOR SUPPORT 
              OF VETERANS AND MEMBERS OF ARMED FORCES.

    (a) Requirements.--
            (1) In general.--Subchapter I of chapter 36 of title 38, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec. 3679A. Additional requirements
    ``(a) Provision of Counseling and Services.--(1) An educational 
institution with 20 or more covered individuals enrolled in programs of 
education at the educational institution may not be approved under this 
chapter unless the educational institution provides adequate academic 
and student support services (as determined by the Secretary), 
including remediation, tutoring, and career and job placement 
counseling services to such covered individuals.
    ``(2) The Secretary may, on a case-by-case basis, waive the 
requirement to provide services under paragraph (1) for an educational 
institution for an academic year if--
            ``(A) the Secretary determines that the educational 
        institution has demonstrated that providing such services 
        during such academic year would lead to severe financial 
        hardship; and
            ``(B) the educational institution submits to the Secretary 
        a plan to provide such services during the following academic 
        year.
    ``(b) Minimum Standards for Employment of Points of Contact.--
Except as provided in paragraph (2), an educational institution may not 
be approved under this chapter unless the educational institution 
employs a number of full-time equivalent employees that the Secretary 
considers adequate, but not less than one full-time equivalent 
employee, who--
            ``(1) acts as a point of contact for covered individuals on 
        matters relating to educational assistance available to 
        individuals under this chapter and chapters 30 through 35 of 
        this title and under chapters 106A and 1606 of title 10;
            ``(2) is knowledgeable about such educational assistance 
        and such other financial aid, admissions, counseling and 
        referral services, and matters relating to postsecondary 
        education as are important to the educational success of 
        covered individuals; and
            ``(3) is available to assist covered individuals on a full-
        time basis.
    ``(c) Covered Individual Defined.--In this section, the term 
`covered individual', with respect to enrollment in a program of 
education, means an individual who is receiving educational assistance 
under this chapter or any of chapters 30 through 35 of this title or 
under chapters 106A and 1606 of title 10 for such program of 
education.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 36 of such title is amended by inserting 
        after the item relating to section 3679 the following new item:

``3679A. Additional requirements.''.
    (b) Conforming Amendment.--Section 3672(b)(2)(A) of such title (as 
amended by section 3(a)(2)) is further amended by striking ``and 3696'' 
and inserting ``3696, and 3679A''.
    (c) Effective Date.--Section 3679A of such title, as added by 
paragraph (1), shall take effect on August 1, 2013.

SEC. 5. STATE APPROVING AGENCIES.

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

``3674B. Education and outreach.''.
    (b) Audits.--Section 3673(d) of such title is amended--
            (1) by inserting ``(1)'' before ``The Secretary''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Each year, each State approving agency, as a condition of 
receiving reimbursement of expenses under section 3674 of this title, 
shall conduct such audits as the Secretary considers appropriate, 
including unannounced audits and audits using risk-based approaches, of 
educational institutions in the State of the State approving agency 
that have students enrolled in programs of education at the educational 
institutions who are receiving educational assistance under this 
chapter or any of chapters 30 through 35 of this title (without regard 
to whether the Secretary or the State approving agency approved the 
courses offered) in such State--
            ``(A) to detect misrepresentation, fraud, waste, and abuse;
            ``(B) to ensure full compliance with the provisions of this 
        chapter; and
            ``(C) for such other purposes as the Secretary considers 
        appropriate.''.
    (c) Reports.--Section 3674(a)(3) of such title is amended--
            (1) by inserting ``(A)'' before ``Each State''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) Each report submitted under subparagraph (A) shall include 
the following:
            ``(i) The number of visits made by the agency to 
        educational institutions, including the number of such visits 
        that were made without the prior knowledge of such educational 
        institution.
            ``(ii) A description of the audits carried out by the 
        agency under section 3673(d)(2) of this title and the findings 
        of the agency, including with respect to any substantiated 
        findings of misrepresentation, fraud, waste, abuse, or failure 
        to comply with an applicable requirement of this chapter and 
        the steps taken by the agency to address such fraud, waste, 
        abuse, or failure to comply.
            ``(iii) A description of the outreach and training 
        activities conducted by the agency under section 3674B of this 
        title.''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on August 1, 2013.

SEC. 6. MANDATORY COMPLIANCE REVIEWS.

    (a) In General.--Section 3693 of title 38, United States Code, is 
amended by adding at the end the following new subsection:
    ``(c) In addition to the annual compliance surveys conducted under 
subsection (a), the Secretary shall also conduct a compliance review, 
in accordance with such regulations as the Secretary shall prescribe, 
of an educational institution described in such subsection whenever the 
Secretary finds any of the following:
            ``(1) The number of student enrollments at, or the rate of 
        student enrollments of, the educational institution has 
        increased rapidly.
            ``(2) The student dropout rate of the institution has 
        increased rapidly.
            ``(3) The cohort default rate, as defined in section 435(m) 
        of the Higher Education Act of 1965 (20 U.S.C. 1085(m)), of the 
        educational institution has increased rapidly or is 
        consistently higher than the average of cohort default rate of 
        comparable educational institutions.
            ``(4) The number of substantiated complaints filed under 
        section 3697C(a)(1) of this title with respect to the 
        educational institution have increased rapidly or is 
        consistently higher than the number of substantiated complaints 
        filed with respect to other comparable educational 
        institutions.
            ``(5) The educational institution is the subject of a civil 
        lawsuit in Federal or State court, is charged with a crime 
        under Federal or State law, or is the subject of an official 
        investigation of a State or Federal agency for misconduct.
            ``(6) The educational institution has significant growth in 
        revenue resulting from tuition, including tuition paid with 
        assistance provided under this chapter, chapters 30 through 35 
        of this title, or chapters 106A or 1606 of title 10, which 
        cannot be attributed to changes made to such chapters by Acts 
        of Congress or changes to the administration of such chapters.
            ``(7) Such other findings as the Secretary considers 
        warrant conducting a compliance survey under subsection (a).''.
    (b) Effective Date.--Subsection (c) of such section, as added by 
subsection (a), shall take effect on August 1, 2013.

SEC. 7. TRAINING AND COUNSELING SO VETERANS AND MEMBERS OF THE ARMED 
              FORCES CAN MAKE INFORMED DECISIONS ABOUT EDUCATION.

    (a) In General.--Subchapter II of chapter 36 of title 38, United 
States Code, is amended by adding at the end the following new section:
``Sec. 3697B. Required one-on-one educational counseling
    ``(a) Provision of Counseling Required.--(1) The Secretary of 
Veterans Affairs shall provide individualized, one-on-one educational 
counseling to all individuals considering pursuing a program of 
education with assistance furnished under this chapter or any of 
chapters 30 through 35 of this title.
    ``(2) The Secretary of Defense shall provide individualized, one-
on-one educational counseling to all individuals considering pursuing a 
program of education with assistance furnished under chapter 106A or 
1606 of title 10.
    ``(b) Time and Manner of Counseling.--(1) Counseling provided under 
subsection (a) to an individual described in such subsection 
considering a program of education shall be provided at or before the 
individual enrolls in such program as follows:
            ``(A) To such individuals who have received fewer than \1/
        3\ of the credits necessary to complete the program of 
        education, a complete version of such counseling.
            ``(B) To such individuals who have received \1/3\ or more 
        of the credits necessary to complete the program of education, 
        a condensed version of such counseling as the Secretary of 
        Veterans Affairs or the Secretary of Defense, as the case may 
        be, considers appropriate.
    ``(2) To the extent practicable, counseling provided under 
subsection (a) to an individual described in paragraph (1)(A) of this 
subsection shall be provided in person.
    ``(3) The Secretary of Veterans Affairs and the Secretary of 
Defense shall each establish, by regulation, procedures by which 
individuals may receive counseling provided under subsection (a) when 
receipt of such counseling in person is not practicable.
    ``(c) Elements.--A complete version of counseling provided under 
subsection (b)(1) for an individual shall include the following:
            ``(1) An overview of educational assistance available to 
        the individual under this chapter and chapters 30 through 35 of 
        this title or under chapters 106A and 1606 of title 10, as the 
        case may be.
            ``(2) Development of a personalized academic and career 
        plan.
            ``(3) An overview of the information disclosed and made 
        readily available under section 3672(f)(1) of this title 
        relevant to the academic and career plan developed under 
        paragraph (2).
            ``(4) A discussion of how enrollment in the program of 
        education at the educational institution will affect the 
        individual's academic and career plan and the financial 
        implications for such individual of such enrollment.
            ``(5) An introduction to the College Navigator Internet 
        website of the Department of Education.
    ``(d) Qualified Counselors.--Counseling provided under subsection 
(a) may only be provided by properly trained counselors, as determined 
by the Secretary of Veterans Affairs and the Secretary of Defense.
    ``(e) Use of Information Disclosed by Educational Institutions.--In 
providing educational assistance under this section, the Secretary of 
Veterans Affairs and the Secretary of Defense shall, to the degree 
practicable, use the information disclosed and made readily available 
under section 3672(f)(1) of this title.
    ``(f) Links to College Navigator Internet Website of Department of 
Education.--The Secretary of Veterans Affairs and the Secretary of 
Defense shall provide links on the Internet websites of the Department 
of Veterans Affairs of the Department of Defense, respectively, to the 
College Navigator Internet website of the Department of Education in 
such a manner as the Secretary of Veterans Affairs and the Secretary of 
Defense consider appropriate to inform veterans and members of the 
Armed Forces of the availability of and the benefits of using the 
College Navigator Internet website.''.
    (b) Clerical Amendment.--The table of sections for chapter 36 of 
such title is amended by adding at the end the following new item:

``3697B. Required one-on-one educational counseling.''.
    (c) Clarification.--
            (1) Heading of section 3697a of title 38.--Section 3697A of 
        such title is amended, in the heading, by adding ``by 
        election'' at the end.
            (2) Table of sections.--The table of sections for chapter 
        36 of such title is amended by amending the item relating to 
        section 3697A to read as follows:

``3697A. Educational and vocational counseling by election.''.
    (d) Effective Date.--Section 3697B of such title, as added by 
paragraph (1), shall take effect on August 1, 2013, and shall apply 
with respect to individuals considering pursuing programs of education 
as described in subsection (a) of such section after such date.

SEC. 8. COORDINATION AND OVERSIGHT OF EDUCATIONAL ASSISTANCE PROGRAMS.

    (a) In General.--Subchapter II of chapter 36 of title 38, United 
States Code, as amended by section 6, is further amended by adding at 
the end the following new section:
``Sec. 3697C. Coordination and oversight
    ``(a) Development of Centralized Complaints Process.--(1) Not later 
than 180 days after the date of the enactment of the Military and 
Veterans Educational Reform Act of 2012, the Secretary of Veterans 
Affairs and the Secretary of Defense shall each establish, by 
regulation, a process whereby persons are able to submit to the 
Secretaries, including by submitting via State approving agencies, 
complaints regarding educational institutions relevant to the provision 
of educational assistance provided under this chapter and chapters 30 
through 35 of this title and under chapters 106A and 1606 of title 10, 
including complaints regarding misrepresentation, fraud, waste, and 
abuse.
    ``(2) The process required by paragraph (1) shall include 
procedures to address complaints in a timely manner, including review 
and investigation of such complaints.
    ``(3) Each year, the Secretary of Veterans Affairs and the 
Secretary of Defense shall each compile the information they collect 
under this subsection and share such information with each other and 
the Secretary of Education, as otherwise allowed under law.
    ``(b) Information Sharing Between Secretary of Veterans Affairs, 
Secretary of Defense, and Secretary of Education.--(1) Not later than 
180 days after the date of the enactment of the Military and Veterans 
Educational Reform Act of 2012, the Secretary of Veterans Affairs and 
the Secretary of Defense shall each establish, by regulation, a process 
by which information may be reported by their respective departments to 
the Secretary of Education and each other regarding information with 
respect to substantiated acts by educational institutions of 
misrepresentation, fraud, waste, or abuse or failure to comply with an 
applicable requirement of this chapter or other information considered 
appropriate by the reporting Secretary by an educational institution at 
which an individual is enrolled in a program of education for which the 
individual receives educational assistance under this chapter, any of 
chapters 30 through 35 of this title, or chapter 106A or 1606 of title 
10 relevant to the purpose and effective implementation of Federal 
programs of educational assistance provided under such chapters.
    ``(2) Not later than 180 days after the date of the enactment of 
the Military and Veterans Educational Reform Act of 2012, the Secretary 
of Education shall establish a process by which the Secretary of 
Education notifies the Secretary of Veterans Affairs and the Secretary 
of Defense of the following with respect to educational institutions:
            ``(A) Substantiated acts by educational institutions of 
        misrepresentation, fraud, waste, or abuse.
            ``(B) Loss of accreditation.
            ``(C) Loss of eligibility under title IV of the Higher 
        Education Act of 1965 (20 U.S.C. 1070 et seq.).
            ``(D) Has been reported by a Federal or State agency or a 
        nationally recognized accrediting agency or association as 
        failing to comply with, or has a significant risk of failing to 
        comply with, a provision of Federal or State law or a 
        requirement that is a condition for accreditation established 
        by a nationally recognized accrediting agency or association.
            ``(E) Such other information as the Secretary of Education 
        considers appropriate.
    ``(c) Annual Report on Educational Assistance Provided by 
Department of Veterans Affairs and Department of Defense.--(1) Not less 
frequently than once each year, the Secretary of Veterans Affairs and 
the Secretary of Defense shall each submit to Congress a report on the 
provision of educational assistance under this chapter and chapters 30 
through 35 of this title and under chapters 106A and 1606 of title 10, 
respectively.
    ``(2) Each report submitted under subsection (a) shall include, for 
the period covered by the report and disaggregated by for-profit and 
not-for-profit educational institutions, the following:
            ``(A) The number of individuals who received assistance 
        under laws administered by the respective Secretary.
            ``(B) The amounts of assistance provided.
            ``(C) A description of any complaints reported under 
        subsection (a) to the respective Secretary or State approving 
        agencies by such individuals with respect to the receipt or use 
        of educational assistance under laws administered by the 
        respective Secretary.
            ``(D) All substantiated reports of misrepresentation, 
        waste, fraud, abuse, or other acts that are inconsistent with 
        the requirements of this chapter by an educational institution 
        at which an individual is enrolled in a program of education 
        for which the individual is receiving educational assistance 
        under a law administered by the respective Secretary.
            ``(E) A list of educational institutions which had courses 
        of education that were approved under this chapter in the 
        previous year but were found, in the year covered by the 
        report, not in compliance with a requirement of such chapter.
            ``(F) Such recommendations for legislative or regulatory 
        action as the respective Secretary considers appropriate to 
        improve the provision of educational assistance under the laws 
        administered by the respective Secretary.
            ``(G) An assessment of the academic performance of 
        individuals who received educational assistance described in 
        paragraph (1), including graduation rates and dropout rates.
            ``(H) A list of educational institutions that were approved 
        under this chapter, disaggregated by educational institutions 
        approved under section 3676 of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 36 of such title, as amended by section 6, is further amended 
by adding at the end the following new item:

``3697C. Coordination and oversight.''.
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