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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4625 Referred in Senate (RFS)]

<DOC>
116th CONGRESS
  1st Session
                                H. R. 4625

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           November 13, 2019

    Received; read twice and referred to the Committee on Veterans' 
                                Affairs

_______________________________________________________________________

                                 AN ACT

 
  To amend title 38, United States Code, to require that educational 
institutions abide by certain principles as a condition of approval for 
 purposes of the educational assistance programs of the Department of 
               Veterans Affairs, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Protect the GI 
Bill Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Clarification of educational assistance for individuals who 
                            pursue an approved program of education 
                            leading to a degree while on active duty.
Sec. 3. Verification of enrollment for purposes of receipt of Post-9/11 
                            Educational Assistance benefits.
Sec. 4. Clarification regarding the dependents to whom entitlement to 
                            educational assistance may be transferred 
                            under the Post 9/11 Educational Assistance 
                            Program.
Sec. 5. Expansion of reasons for which a course of education may be 
                            disapproved.
Sec. 6. Oversight of educational institutions subject to Government 
                            action for purposes of the educational 
                            assistance programs of the Department of 
                            Veterans Affairs.
Sec. 7. Additional requirement for approval of educational institutions 
                            for purposes of the educational assistance 
                            programs of the Department of Veterans 
                            Affairs.
Sec. 8. Clarification of accreditation for law schools for purposes of 
                            the educational assistance programs of the 
                            Department of Veterans Affairs.
Sec. 9. Clarification of grounds for disapproval of a course for 
                            purposes of the educational assistance 
                            programs of the Department of Veterans 
                            Affairs.
Sec. 10. Requirements for educational institutions participating in the 
                            educational assistance programs of the 
                            Department of Veterans Affairs.
Sec. 11. Overpayments to eligible persons or veterans.
Sec. 12. Improvements to limitation on certain advertising, sales, and 
                            enrollment practices.
Sec. 13. Additional limitation on certain advertising, sales, and 
                            enrollment practices of educational 
                            institutions.
Sec. 14. Charge to entitlement to educational assistance for 
                            individuals who do not transfer credits 
                            from certain closed or disapproved programs 
                            of education.
Sec. 15. Determination of budgetary effects.

SEC. 2. CLARIFICATION OF EDUCATIONAL ASSISTANCE FOR INDIVIDUALS WHO 
              PURSUE AN APPROVED PROGRAM OF EDUCATION LEADING TO A 
              DEGREE WHILE ON ACTIVE DUTY.

    Section 3313(e) of title 38, United States Code, is amended--
            (1) in the heading, by inserting ``for a Period of More 
        Than 30 Days'' after ``Active Duty'';
            (2) in paragraph (1), by inserting ``for a period of more 
        than 30 days'' after ``active duty''; and
            (3) in paragraph (2), in the matter preceding subparagraph 
        (A), by inserting ``for a period of more than 30 days'' after 
        ``active duty''.

SEC. 3. VERIFICATION OF ENROLLMENT FOR PURPOSES OF RECEIPT OF POST-9/11 
              EDUCATIONAL ASSISTANCE BENEFITS.

    (a) In General.--Section 3313 of title 38, United States Code, as 
amended by section 2, is further amended by adding at the end the 
following new subsection:
    ``(l) Verification of Enrollment.--(1) The Secretary shall 
require--
            ``(A) each educational institution to submit to the 
        Secretary verification of each individual who is enrolled in a 
        course or program of education at the educational institution 
        and is receiving educational assistance under this chapter for 
        each month during which the individual is so enrolled and 
        receiving such educational assistance; and
            ``(B) each individual who is enrolled in a course or 
        program of education and is receiving educational assistance 
        under this chapter to submit to the Secretary verification of 
        such enrollment for each month during which the individual is 
        so enrolled and receiving such educational assistance.
    ``(2) Verification under this subsection shall be in an electronic 
form prescribed by the Secretary.
    ``(3) If an individual fails to submit the verification required 
under paragraph (1)(B) for two consecutive months, the Secretary may 
not make a monthly stipend payment to the individual under this section 
until the individual submits such verification.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on August 1, 2020.

SEC. 4. CLARIFICATION REGARDING THE DEPENDENTS TO WHOM ENTITLEMENT TO 
              EDUCATIONAL ASSISTANCE MAY BE TRANSFERRED UNDER THE POST 
              9/11 EDUCATIONAL ASSISTANCE PROGRAM.

    (a) In General.--Section 3319(c) of title 38, United States Code, 
is amended to read as follows:
    ``(c) Eligible Dependents.--
            ``(1) Transfer.--An individual approved to transfer an 
        entitlement to educational assistance under this section may 
        transfer the individual's entitlement to an eligible dependent 
        or a combination of eligible dependents.
            ``(2) Definition of eligible dependent.--For purposes of 
        this subsection, the term `eligible dependent' has the meaning 
        given the term `dependent' under paragraph (2) of section 1072 
        of title 10.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply with respect to educational assistance payable under chapter 33 
of title 38, United States Code, before, on, or after the date of the 
enactment of this Act.

SEC. 5. EXPANSION OF REASONS FOR WHICH A COURSE OF EDUCATION MAY BE 
              DISAPPROVED.

    (a) In General.--Section 3672(b)(2) of title 38, United States 
Code, is amended--
            (1) in subparagraph (A)(i), by inserting or ``or (D)'' 
        after ``subparagraph (C)''; and
            (2) by adding at the end the following new subparagraph:
    ``(D) A program that is described in subparagraph (A)(i) of this 
paragraph and offered by an educational institution that is at risk of 
losing accreditation shall not be deemed to be approved for purposes of 
this chapter. For purposes of this subparagraph, an educational 
institution is at risk of losing accreditation if that educational 
institution has received from the relevant accrediting agency or 
association a notice described in section 3673(e)(2)(D) of this 
title.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date that is 180 days after the date of the 
enactment of this Act.

SEC. 6. OVERSIGHT OF EDUCATIONAL INSTITUTIONS SUBJECT TO GOVERNMENT 
              ACTION FOR PURPOSES OF THE EDUCATIONAL ASSISTANCE 
              PROGRAMS OF THE DEPARTMENT OF VETERANS AFFAIRS.

    (a) In General.--Section 3673 of title 38, United States Code, is 
amended by adding at the end the following new subsection:
    ``(e) Notice of Government Action.--(1)(A) If the Secretary 
receives notice under paragraph (2), or otherwise becomes aware of an 
action or event described in paragraph (3), with respect to an 
educational institution, the Secretary shall transmit such notice or 
provide notice of such action or event to the State approving agency 
for the State where the educational institution is located by not later 
than 30 days after the date on which the Secretary receives such notice 
or becomes aware of such action or event. A State approving agency 
shall perform a risk-based oversight survey to the educational 
institution by not later than 60 days after receiving notice under this 
subparagraph.
    ``(B) If a State approving agency receives notice as described in 
paragraph (2), or otherwise becomes aware of an action or event 
described in paragraph (3), with respect to an educational institution, 
the State approving agency shall perform a risk-based oversight survey 
to the educational institution by not later than 60 days after 
receiving such notice or otherwise becoming aware of such action or 
event.
    ``(2) Notice under this paragraph is any of the following:
            ``(A) Notice from the Secretary of Education of an event 
        under paragraph (3)(A).
            ``(B) Notice of an event under paragraph (3)(B).
            ``(C) Notice from a State of an action take by that State 
        under paragraph (3)(C).
            ``(D) Notice provided by an accrediting agency or 
        association of an action described in paragraph (3)(D) taken by 
        that agency or association.
            ``(E) Notice that the Secretary of Education has placed the 
        educational institution on provisional status.
    ``(3) An action or event under this paragraph is any of the 
following:
            ``(A) The receipt by an educational institution of payments 
        under the heightened cash monitoring payment method pursuant to 
        section 487(c)(1)(B) of the Higher Education Act of 1965 (20 
        U.S.C. 1094).
            ``(B) Final punitive action taken by the Attorney General, 
        the Federal Trade Commission, or any other Federal department 
        or agency against an educational institution relating to 
        misconduct or misleading marketing practices, as defined by the 
        Secretary of Veterans Affairs.
            ``(C) Final punitive action taken by a State against an 
        educational institution.
            ``(D) The loss, or risk of loss, by an educational 
        institution of an accreditation from an accrediting agency or 
        association, including notice of probation, suspension, an 
        order to show cause, or revocation of accreditation.
            ``(E) The placement of an educational institution on 
        provisional status by the Secretary of Education.
    ``(4) If a State approving agency disapproves or suspends an 
educational institution, the State approving agency shall provide 
notice of such disapproval or suspension to the Secretary and to the 
other State approving agencies.
    ``(5) This subsection shall be carried out using amounts made 
available pursuant to section 3674(a)(4) of this title as long as such 
amounts remain available.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on August 1, 2020.

SEC. 7. ADDITIONAL REQUIREMENT FOR APPROVAL OF EDUCATIONAL INSTITUTIONS 
              FOR PURPOSES OF THE EDUCATIONAL ASSISTANCE PROGRAMS OF 
              THE DEPARTMENT OF VETERANS AFFAIRS.

    (a) In General.--Section 3675 of title 38, United States Code, is 
amended--
            (1) in subsection (b), by adding at the end the following 
        new paragraph:
            ``(4) The educational institution is approved and 
        participates in a program under title IV of the Higher 
        Education Act of 1965 (20 U.S.C. 1070 et seq.) or the Secretary 
        has waived the requirement under this paragraph with respect to 
        an educational institution and submits to the Committees on 
        Veterans' Affairs of the Senate and House of Representatives 
        notice of such waiver.''.
            (2) by adding at the end the following new subsection:
    ``(d) The Secretary shall submit to Congress an annual report on 
any waivers issued pursuant to subsection (b)(4) or section 
3672(b)(2)(A)(i) of this title. Each such report shall include, for the 
year covered by the report--
            ``(1) the name of each educational institution for which a 
        waiver was issued;
            ``(2) the justification for each such waiver; and
            ``(3) the total number of waivers issued.''.
    (b) Requirement for Approval of Standard College Degree Programs.--
Clause (i) of subparagraph (A) of paragraph (2) of subsection (b) of 
section 3672 of such title is amended to read as follows:
                    ``(i) Except as provided in subparagraph (C) or 
                (D), an accredited standard college degree program 
                offered at a public or not-for-profit proprietary 
                educational institution that--
                            ``(I) is accredited by an agency or 
                        association recognized for that purpose by the 
                        Secretary of Education; and
                            ``(II) is approved and participates in a 
                        program under title IV of the Higher Education 
                        Act of 1965 (20 U.S.C. 1070 et seq.), unless 
                        the Secretary has waived the requirement to 
                        participate in a program under title IV of the 
                        Higher Education Act of 1965 (20 U.S.C. 1070 et 
                        seq.).''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on August 1, 2020.

SEC. 8. CLARIFICATION OF ACCREDITATION FOR LAW SCHOOLS FOR PURPOSES OF 
              THE EDUCATIONAL ASSISTANCE PROGRAMS OF THE DEPARTMENT OF 
              VETERANS AFFAIRS.

    (a) In General.--Paragraphs (14)(B) and (15)(B) of section 3676(c) 
of title 38, United States Code, are each amended by striking ``an 
accrediting agency'' both places it appears and inserting ``a 
specialized accrediting agency''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on August 1, 2020.

SEC. 9. CLARIFICATION OF GROUNDS FOR DISAPPROVAL OF A COURSE FOR 
              PURPOSES OF THE EDUCATIONAL ASSISTANCE PROGRAMS OF THE 
              DEPARTMENT OF VETERANS AFFAIRS.

    (a) In General.--Section 3679(a)(1) of title 38, United States 
Code, is amended by inserting ``(including failure to comply with a 
risk-based survey under section 3673(d) of this title and secure an 
affirmation of approval by the appropriate State approving agency 
following the survey)'' after ``requirements of this chapter''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on August 1, 2020.

SEC. 10. REQUIREMENTS FOR EDUCATIONAL INSTITUTIONS PARTICIPATING IN THE 
              EDUCATIONAL ASSISTANCE PROGRAMS OF THE DEPARTMENT OF 
              VETERANS AFFAIRS.

    (a) In General.--Section 3679 of title 38, United States Code, as 
amended by section 6, is further amended by adding at the end the 
following new subsection:
    ``(f)(1) Except as provided by paragraph (5), a State approving 
agency, or the Secretary when acting in the role of the State approving 
agency, may take an action described in paragraph (4)(A) if the State 
approving agency or the Secretary determines that an educational 
institution does not perform any of the following:
            ``(A) Prior to the enrollment of a covered individual in a 
        course of education at the educational institution, provide the 
        individual with a form that contains information personalized 
        to the individual that describes--
                    ``(i) the estimated total cost of the course, 
                including tuition, fees, books, supplies, and any other 
                additional costs;
                    ``(ii) an estimate of the cost for living expenses 
                for students enrolled in the course;
                    ``(iii) the amount of the costs under clauses (i) 
                and (ii) that are covered by the educational assistance 
                provided to the individual under chapter 30, 32, 33, or 
                35 of this title, or chapter 1606 or 1607 of title 10, 
                as the case may be;
                    ``(iv) the type and amount of Federal financial aid 
                not administered by the Secretary and financial aid 
                offered by the institution that the individual may 
                qualify to receive;
                    ``(v) an estimate of the amount of student loan 
                debt the individual would have upon graduation;
                    ``(vi) information regarding graduation rates;
                    ``(vii) job-placement rates for graduates of the 
                course, if available;
                    ``(viii) information regarding the acceptance by 
                the institution of transfer of credits, including 
                military credits;
                    ``(ix) any conditions or additional requirements, 
                including training, experience, or examinations, 
                required to obtain the license, certification, or 
                approval for which the course of education is designed 
                to provide preparation; and
                    ``(x) other information to facilitate comparison by 
                the individual of aid packages offered by different 
                educational institutions.
            ``(B) Not later than 15 days after the date on which the 
        institution (or the governing body of the institution) 
        determines tuition rates and fees for an academic year that is 
        different than the amount being charged by the institution, 
        provide a covered individual enrolled in a course of education 
        at the educational institution with the form under subparagraph 
        (A) that contains updated information.
            ``(C) Maintain policies to--
                    ``(i) inform each covered individual enrolled in a 
                course of education at the educational institution of 
                the availability of Federal financial aid not 
                administered by the Secretary and financial aid offered 
                by the institution; and
                    ``(ii) alert such individual of the potential 
                eligibility of the individual for such financial aid 
                before packaging or arranging student loans or 
                alternative financing programs for the individual.
            ``(D) Maintain policies to--
                    ``(i) prohibit the automatic renewal of a covered 
                individual in courses and programs of education; and
                    ``(ii) ensure that each covered individual approves 
                of the enrollment of the individual in a course.
            ``(E) Provide to a covered individual enrolled in a course 
        of education at the educational institution with information 
        regarding the requirements to graduate from such course, 
        including information regarding when required classes will be 
        offered and a timeline to graduate.
            ``(F) With respect to an accredited educational 
        institution, obtain the approval of the accrediting agency for 
        each new course or program of the institution before enrolling 
        covered individuals in such courses or programs if the 
        accrediting agency determines that such approval is appropriate 
        under the substantive change requirements of the accrediting 
        agency regarding the quality, objectives, scope, or control of 
        the institution.
            ``(G) Maintain a policy that--
                    ``(i) ensures that members of the Armed Forces, 
                including the reserve components and the National 
                Guard, who enroll in a course of education at the 
                educational institution may be readmitted at such 
                institution if such members are temporarily unavailable 
                or have to suspend such enrollment by reason of serving 
                in the Armed Forces; and
                    ``(ii) otherwise accommodates such members during 
                short absences by reason of such service.
            ``(H) Designate an employee of the educational institution 
        to serve as a point of contact for covered individuals and the 
        family of such individuals needing assistance with respect to 
        academic counseling, financial counseling, disability 
        counseling, and other information regarding completing a course 
        of education at such institution, including by referring such 
        individuals and family to the appropriate persons for such 
        counseling and information.
    ``(2) Except as provided by paragraph (5), a State approving 
agency, or the Secretary when acting in the role of the State approving 
agency, may take an action described in paragraph (4)(A) if the State 
approving agency, the Secretary, or the Federal Trade Commission, 
determines that an educational institution does any of the following:
            ``(A) Carries out deceptive or persistent recruiting 
        techniques, including on military installations, that may 
        include--
                    ``(i) misrepresentation (as defined in section 
                3696(e)(2)(B) of this title) or payment of incentive 
                compensation;
                    ``(ii) during any 1-month period making three or 
                more unsolicited contacts to a covered individual, 
                including contacts by phone, email, or in-person; or
                    ``(iii) engaging in same-day recruitment and 
                registration.
            ``(B) Pays inducements, including any gratuity, favor, 
        discount, entertainment, hospitality, loan, transportation, 
        lodging, meals, or other item having a monetary value of more 
        than a de minimis amount, to any individual or entity, or its 
        agents including third party lead generators or marketing firms 
        other than salaries paid to employees or fees paid to 
        contractors in conformity with all applicable laws for the 
        purpose of securing enrollments of covered individuals or 
        obtaining access to educational assistance under this title, 
        with the exception of scholarships, grants, and tuition 
        reductions provided by the educational institution.
    ``(3) A State approving agency, or the Secretary when acting in the 
role of the State approving agency, may take an action described in 
paragraph (4)(A) if the State approving agency or the Secretary 
determines that an educational institution is the subject of a negative 
action made by the accrediting agency that accredits the institution, 
including any of the following:
            ``(A) A show cause order.
            ``(B) Accreditor sanctions.
            ``(C) Accreditation probation.
            ``(D) The loss of accreditation or candidacy for 
        accreditation.
    ``(4)(A) An action described in this subparagraph is any of the 
following:
            ``(i) Publishing a warning on the internet website of the 
        Department described in section 3698(c)(2) of this title, or 
        such other similar internet website of the Department, that 
        describes how an educational institution is failing to meet a 
        requirement under paragraph (1) or (2).
            ``(ii) Prohibiting the pursuit by an individual of a course 
        of education at an educational institution under chapter 30, 
        32, 33, or 35 of this title during the period beginning on the 
        date of such prohibition and ending on a date specified by the 
        State approving agency, in consultation with the Secretary, or 
        the Secretary when acting in the role of the State approving 
        agency, unless the individual was enrolled at the institution 
        before such period.
    ``(B) The Secretary shall establish guidelines to ensure that the 
actions described in subparagraph (A) are applied in a proportional and 
uniform manner by State approving agencies, or the Secretary when 
acting in the role of the State approving agency.
    ``(5)(A) The Secretary may waive the requirements of paragraph (1) 
or waive the requirements of paragraph (2) with respect to an 
educational institution for a 1-academic-year period beginning in 
August of the year in which the waiver is made. A single educational 
institution may not receive waivers under this paragraph for more than 
2 consecutive academic years.
    ``(B) To be considered for a waiver under this paragraph, an 
educational institution shall submit to the Secretary an application 
prior to the first day of the academic year for which the waiver is 
sought.
    ``(6) On an annual basis, the Secretary shall submit to the 
Committees on Veterans' Affairs of the House of Representatives and the 
Senate the following reports:
            ``(A) A report, which shall be made publicly available, 
        that includes the following:
                    ``(i) A summary of each action described in 
                paragraph (4)(A) made during the year covered by the 
                report, including--
                            ``(I) the name of the educational 
                        institution;
                            ``(II) the type of action taken;
                            ``(III) the rationale for the action, 
                        including how the educational institution was 
                        not in compliance with this subsection;
                            ``(IV) the length of time that the 
                        educational institution was not in such 
                        compliance; and
                            ``(V) whether the educational institution 
                        was also not in compliance with this subsection 
                        during any of the 2 years prior to the year 
                        covered by the report.
                    ``(ii) A summary and justifications for the waivers 
                made under paragraph (5) during the year covered by the 
                report, including the total number of waivers each 
                educational institution has received.
            ``(B) A report containing the recommendations of the 
        Secretary with respect to any legislative actions the Secretary 
        determines appropriate to ensure that this subsection is 
        carried out in a manner that is consistent with the 
        requirements that educational institutions must meet for 
        purposes of other departments or agencies of the Federal 
        Government.
    ``(7) In this subsection, the term `covered individual' means an 
individual who is pursuing a course of education at an educational 
institution under chapter 30, 32, 33, or 35 of this title.''.
    (b) Application Date.--The amendment made by this section shall 
take effect on June 15, 2020, and shall apply to an educational 
institution beginning on August 1, 2020, except that an educational 
institution may submit an application for a waiver under subsection 
(f)(5) of section 3679 of title 38, United States Code, as added by 
subsection (a), beginning on June 15, 2020.

SEC. 11. OVERPAYMENTS TO ELIGIBLE PERSONS OR VETERANS.

    Subsection (b) of section 3685 of title 38, United States Code, is 
amended to read as follows:
    ``(b) Any overpayment by an educational institution to a veteran or 
eligible person shall constitute a liability of the educational 
institution to the United States if--
            ``(1) the Secretary finds that the overpayment has been 
        made as the result of--
                    ``(A) the willful or negligent failure of an 
                educational institution to report, as required under 
                this chapter or chapter 34 or 35 of this title, to the 
                Department of Veterans Affairs excessive absences from 
                a course, or discontinuance or interruption of a course 
                by the veteran or eligible person; or
                    ``(B) the willful or negligent false certification 
                by an educational institution; or
            ``(2) the payment is made pursuant to--
                    ``(A) section 3313(h) of this title;
                    ``(B) section 3317 of this title; or
                    ``(C) section 3680(d) of this title.''.

SEC. 12. IMPROVEMENTS TO LIMITATION ON CERTAIN ADVERTISING, SALES, AND 
              ENROLLMENT PRACTICES.

    (a) Substantial Misrepresentation.--
            (1) In general.--Subsection (a) of section 3696 of title 
        38, United States Code, is amended to read as follows:
    ``(a) The Secretary, or a State approving agency acting in the role 
of the Secretary, shall not approve the enrollment of an eligible 
veteran or eligible person in any course offered by an institution, or 
by an entity that owns the institution, engaged in substantial 
misrepresentation described in subsection (e)(1).''.
            (2) Definitions.--Such section is further amended by adding 
        at the end the following new subsection:
    ``(e)(1) Substantial misrepresentation described in this paragraph 
is substantial misrepresentation by an educational institution, a 
representative of the institution, or any person with whom the 
institution has an agreement to provide educational programs, 
marketing, advertising, recruiting or admissions services, concerning 
any of the following:
            ``(A) The nature of the educational program of the 
        institution, including misrepresentation regarding--
                    ``(i) the particular type, specific source, or 
                nature and extent, of the accreditation of the 
                institution or a course of education at the 
                institution;
                    ``(ii) whether a student may transfer course 
                credits to another institution;
                    ``(iii) conditions under which the institution will 
                accept transfer credits earned at another institution;
                    ``(iv) whether successful completion of a course of 
                instruction qualifies a student--
                            ``(I) for acceptance to a labor union or 
                        similar organization; or
                            ``(II) to receive, to apply to take, or to 
                        take an examination required to receive a 
                        local, State, or Federal license, or a 
                        nongovernmental certification required as a 
                        precondition for employment, or to perform 
                        certain functions in the States in which the 
                        educational program is offered, or to meet 
                        additional conditions that the institution 
                        knows or reasonably should know are generally 
                        needed to secure employment in a recognized 
                        occupation for which the program is represented 
                        to prepare students;
                    ``(v) the requirements for successfully completing 
                the course of study or program and the circumstances 
                that would constitute grounds for terminating the 
                student's enrollment;
                    ``(vi) whether the courses of education at the 
                institution are recommended or have been the subject of 
                unsolicited testimonials or endorsements by--
                            ``(I) vocational counselors, high schools, 
                        colleges, educational organizations, employment 
                        agencies, members of a particular industry, 
                        students, former students, or others; or
                            ``(II) officials of a local or State 
                        government or the Federal Government;
                    ``(vii) the size, location, facilities, or 
                equipment of the institution;
                    ``(viii) the availability, frequency, and 
                appropriateness of the courses of education and 
                programs to the employment objectives that the 
                institution states the courses and programs are 
                designed to meet;
                    ``(ix) the nature, age, and availability of the 
                training devices or equipment of the institution and 
                the appropriateness to the employment objectives that 
                the institution states the courses and programs are 
                designed to meet;
                    ``(x) the number, availability, and qualifications, 
                including the training and experience, of the faculty 
                and other personnel of the institution;
                    ``(xi) the availability of part-time employment or 
                other forms of financial assistance;
                    ``(xii) the nature and availability of any tutorial 
                or specialized instruction, guidance and counseling, or 
                other supplementary assistance the institution ill 
                provide students before, during, or after the 
                completion of a course of education;
                    ``(xiii) the nature or extent of any prerequisites 
                established for enrollment in any course of education;
                    ``(xiv) the subject matter, content of the course 
                of education, or any other fact related to the degree, 
                diploma, certificate of completion, or any similar 
                document that the student is to be, or is, awarded upon 
                completion of the course of education; and
                    ``(xv) whether the degree that the institution will 
                confer upon completion of the course of education has 
                been authorized by the appropriate State educational 
                agency, including with respect to cases where the 
                institution fails to disclose facts regarding the lack 
                of such authorization in any advertising or promotional 
                materials that reference such degree.
            ``(B) The financial charges of the institution, including 
        misrepresentation regarding--
                    ``(i) offers of scholarships to pay all or part of 
                a course charge;
                    ``(ii) whether a particular charge is the customary 
                charge at the institution for a course;
                    ``(iii) the cost of the program and the refund 
                policy of the institution if the student does not 
                complete the program;
                    ``(iv) the availability or nature of any financial 
                assistance offered to students, including a student's 
                responsibility to repay any loans, regardless of 
                whether the student is successful in completing the 
                program and obtaining employment; and
                    ``(v) the student's right to reject any particular 
                type of financial aid or other assistance, or whether 
                the student must apply for a particular type of 
                financial aid, such as financing offered by the 
                institution.
            ``(C) The employability of the graduates of the 
        institution, including misrepresentation regarding--
                    ``(i) the relationship of the institution with any 
                organization, employment agency, or other agency 
                providing authorized training leading directly to 
                employment;
                    ``(ii) the plans of the institution to maintain a 
                placement service for graduates or otherwise assist 
                graduates to obtain employment;
                    ``(iii) the knowledge of the institution about the 
                current or likely future conditions, compensation, or 
                employment opportunities in the industry or occupation 
                for which the students are being prepared;
                    ``(iv) job market statistics maintained by the 
                Federal Government in relation to the potential 
                placement of the graduates of the institution; and
                    ``(v) other requirements that are generally needed 
                to be employed in the fields for which the training is 
                provided, such as requirements related to commercial 
                driving licenses or permits to carry firearms, and 
                failing to disclose factors that would prevent an 
                applicant from qualifying for such requirements, such 
                as prior criminal records or preexisting medical 
                conditions.
    ``(2) In this subsection:
            ``(A) The term `misleading statement' includes any 
        communication, action, omission, or intimation made in writing, 
        visually, orally, or through other means, that has the 
        likelihood or tendency to mislead the intended recipient of the 
        communication under the circumstances in which the 
        communication is made. Such term includes the use of student 
        endorsements or testimonials for an educational institution 
        that a student gives to the institution either under duress or 
        because the institution required the student to make such an 
        endorsement or testimonial to participate in a program of 
        education.
            ``(B) The term `misrepresentation' means any false, 
        erroneous, or misleading statement, action, omission, or 
        intimation made directly or indirectly to a student, a 
        prospective student, the public, an accrediting agency, a State 
        agency, or to the Secretary by an eligible institution, one of 
        its representatives, or any person with whom the institution 
        has an agreement to provide educational programs, marketing, 
        advertising, recruiting or admissions services.
            ``(C) The term `substantial misrepresentation' means 
        misrepresentation in which the person to whom it was made could 
        reasonably be expected to rely, or has reasonably relied, to 
        that person's detriment.''.
    (b) Referral.--Subsection (c) of such section is amended by 
striking the last sentence and inserting the following: ``The findings 
and results of any such investigations shall be referred to the State 
approving agency, or the Secretary when acting in the role of the State 
approving agency, who shall take appropriate action in such cases not 
later than 60 days after the date of such referral.''.
    (c) Requirements for Nonaccredited Courses.--Paragraph (10) of 
section 3676(c) of such title is amended to read as follows:
            ``(10) The institution, and any entity that owns the 
        institution, does not engage in substantial misrepresentation 
        described in section 3696(e) of this title. The institution 
        shall not be deemed to have met this requirement until the 
        State approving agency--
                    ``(A) has ascertained that no Federal department or 
                agency has taken a punitive action, not including a 
                settlement agreement, against the school for misleading 
                or deceptive practices;
                    ``(B) has, if such an order has been issued, given 
                due weight to that fact; and
                    ``(C) has reviewed the complete record of 
                advertising, sales, or enrollment materials (and copies 
                thereof) used by or on behalf of the institution during 
                the preceding 12-month period.''.
    (d) Application Date.--The amendments made by this section shall 
apply to an educational institution beginning on August 1, 2020.

SEC. 13. ADDITIONAL LIMITATION ON CERTAIN ADVERTISING, SALES, AND 
              ENROLLMENT PRACTICES OF EDUCATIONAL INSTITUTIONS.

    (a) In General.--Section 3696(a) of title 38, United States Code, 
as amended by section 11, is further amended--
            (1) by inserting ``(1)'' before ``The Secretary''; and
            (2) by adding at the end the following new paragraph:
    ``(2) Not later than 120 days after a State or Federal department 
or agency takes final punitive action against an educational 
institution relating to practices described in paragraph (1), the 
Secretary or the relevant State approving agency may--
            ``(A) take an action described in subsection (f)(4)(A) of 
        section 3679 of this title; or
            ``(B) disapprove under such section each course offered by 
        that educational institution.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on August 1, 2020.

SEC. 14. CHARGE TO ENTITLEMENT TO EDUCATIONAL ASSISTANCE FOR 
              INDIVIDUALS WHO DO NOT TRANSFER CREDITS FROM CERTAIN 
              CLOSED OR DISAPPROVED PROGRAMS OF EDUCATION.

    (a) In General.--Subsection (c) of section 3699 of title 38, United 
States Code, is amended to read as follows:
    ``(c) Period Not Charged.--(1) The period for which, by reason of 
this subsection, educational assistance is not charged against 
entitlement or counted toward the applicable aggregate period under 
section 3695 of this title shall not exceed the aggregate of--
            ``(A) the portion of the period of enrollment in the course 
        from which the individual did not receive credit or with 
        respect to which the individual lost training time, as 
        determined under subsection (b)(2); and
            ``(B) the period by which a monthly stipend is extended 
        under section 3680(a)(2)(B) of this title.
    ``(2)(A) An individual described in subparagraph (B) who transfers 
fewer than 12 credits from a program of education that is closed or 
disapproved as described in subsection (b)(1) shall be deemed to be an 
individual who did not receive such credits, as described in subsection 
(b)(2), except that the period for which such individual's entitlement 
is not charged shall be the entire period of the individual's 
enrollment in the program of education. In carrying out this 
subparagraph, the Secretary, in consultation with the Secretary of 
Education, shall establish procedures to determine whether the 
individual transferred credits to a comparable course or program of 
education.
    ``(B) An individual described in this subparagraph is an individual 
who is enrolled in a course or program of education closed or 
discontinued as described in subsection (b)(1) during the period 
beginning on the date that is 120 days before the date of such closure 
or discontinuance and ending on the date of such closure or 
discontinuance, as the case may be.
    ``(C) This paragraph shall apply with respect to a course or 
program of education closed or discontinued before September 30, 
2023.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on August 1, 2020.

SEC. 15. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the House Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

            Passed the House of Representatives November 12, 2019.

            Attest:

                                             CHERYL L. JOHNSON,

                                                                 Clerk.
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