IIB 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Protect the GI Bill Act’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 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. 


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1 SEC. 2. CLARIFICATION OF EDUCATIONAL ASSISTANCE 

2 FOR INDIVIDUALS WHO PURSUE AN AP3 PROVED PROGRAM OF EDUCATION LEADING 

4 TO A DEGREE WHILE ON ACTIVE DUTY. 

5 Section 3313(e) of title 38, United States Code, is 

6 amended— 

7 (1) in the heading, by inserting ‘‘FOR A PERIOD

8 OF MORE THAN 30 DAYS’’ after ‘‘ACTIVE DUTY’’; 

9 (2) in paragraph (1), by inserting ‘‘for a period 

10 of more than 30 days’’ after ‘‘active duty’’; and 

11 (3) in paragraph (2), in the matter preceding 

12 subparagraph (A), by inserting ‘‘for a period of 

13 more than 30 days’’ after ‘‘active duty’’. 

14 SEC. 3. VERIFICATION OF ENROLLMENT FOR PURPOSES OF 

15 RECEIPT OF POST-9/11 EDUCATIONAL ASSIST16 ANCE BENEFITS. 

17 (a) IN GENERAL.—Section 3313 of title 38, United 

18 States Code, as amended by section 2, is further amended 

19 by adding at the end the following new subsection: 

20 ‘‘(l) VERIFICATION OF ENROLLMENT.—(1) The Sec21 retary shall require— 

22 ‘‘(A) each educational institution to submit to 

23 the Secretary verification of each individual who is 

24 enrolled in a course or program of education at the 

25 educational institution and is receiving educational 

26 assistance under this chapter for each month during 


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1 which the individual is so enrolled and receiving such 

2 educational assistance; and 

3 ‘‘(B) each individual who is enrolled in a course 

4 or program of education and is receiving educational 

5 assistance under this chapter to submit to the Sec6 retary verification of such enrollment for each month 

7 during which the individual is so enrolled and receiv8 ing such educational assistance. 

9 ‘‘(2) Verification under this subsection shall be in an 

10 electronic form prescribed by the Secretary. 

11 ‘‘(3) If an individual fails to submit the verification 

12 required under paragraph (1)(B) for two consecutive 

13 months, the Secretary may not make a monthly stipend 

14 payment to the individual under this section until the indi15 vidual submits such verification.’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 subsection (a) shall take effect on August 1, 2020. 

18 SEC. 4. CLARIFICATION REGARDING THE DEPENDENTS TO 

19 WHOM ENTITLEMENT TO EDUCATIONAL AS20 SISTANCE MAY BE TRANSFERRED UNDER 

21 THE POST 9/11 EDUCATIONAL ASSISTANCE 

22 PROGRAM. 

23 (a) IN GENERAL.—Section 3319(c) of title 38, 

24 United States Code, is amended to read as follows: 

25 ‘‘(c) ELIGIBLE DEPENDENTS.— 


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1 ‘‘(1) TRANSFER.—An individual approved to 

2 transfer an entitlement to educational assistance 

3 under this section may transfer the individual’s enti4 tlement to an eligible dependent or a combination of 

5 eligible dependents. 

6 ‘‘(2) DEFINITION OF ELIGIBLE DEPENDENT.— 

7 For purposes of this subsection, the term ‘eligible 

8 dependent’ has the meaning given the term ‘depend9 ent’ under paragraph (2) of section 1072 of title 

10 10.’’. 

11 (b) APPLICABILITY.—The amendment made by sub12 section (a) shall apply with respect to educational assist13 ance payable under chapter 33 of title 38, United States 

14 Code, before, on, or after the date of the enactment of 

15 this Act. 

16 SEC. 5. EXPANSION OF REASONS FOR WHICH A COURSE OF 

17 EDUCATION MAY BE DISAPPROVED. 

18 (a) IN GENERAL.—Section 3672(b)(2) of title 38, 

19 United States Code, is amended— 

20 (1) in subparagraph (A)(i), by inserting or ‘‘or 

21 (D)’’ after ‘‘subparagraph (C)’’; and 

22 (2) by adding at the end the following new sub23 paragraph: 

24 ‘‘(D) A program that is described in subparagraph 

25 (A)(i) of this paragraph and offered by an educational inVerDate Sep 11 2014 22:59 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4625.RFS H4625

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1 stitution that is at risk of losing accreditation shall not 

2 be deemed to be approved for purposes of this chapter. 

3 For purposes of this subparagraph, an educational institu4 tion is at risk of losing accreditation if that educational 

5 institution has received from the relevant accrediting 

6 agency or association a notice described in section 

7 3673(e)(2)(D) of this title.’’. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 subsection (a) shall take effect on the date that is 180 

10 days after the date of the enactment of this Act. 

11 SEC. 6. OVERSIGHT OF EDUCATIONAL INSTITUTIONS SUB12 JECT TO GOVERNMENT ACTION FOR PUR13 POSES OF THE EDUCATIONAL ASSISTANCE 

14 PROGRAMS OF THE DEPARTMENT OF VET15 ERANS AFFAIRS. 

16 (a) IN GENERAL.—Section 3673 of title 38, United 

17 States Code, is amended by adding at the end the fol18 lowing new subsection: 

19 ‘‘(e) NOTICE OF GOVERNMENT ACTION.—(1)(A) If 

20 the Secretary receives notice under paragraph (2), or oth21 erwise becomes aware of an action or event described in 

22 paragraph (3), with respect to an educational institution, 

23 the Secretary shall transmit such notice or provide notice 

24 of such action or event to the State approving agency for 

25 the State where the educational institution is located by 


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1 not later than 30 days after the date on which the Sec2 retary receives such notice or becomes aware of such ac3 tion or event. A State approving agency shall perform a 

4 risk-based oversight survey to the educational institution 

5 by not later than 60 days after receiving notice under this 

6 subparagraph. 

7 ‘‘(B) If a State approving agency receives notice as 

8 described in paragraph (2), or otherwise becomes aware 

9 of an action or event described in paragraph (3), with re10 spect to an educational institution, the State approving 

11 agency shall perform a risk-based oversight survey to the 

12 educational institution by not later than 60 days after re13 ceiving such notice or otherwise becoming aware of such 

14 action or event. 

15 ‘‘(2) Notice under this paragraph is any of the fol16 lowing: 

17 ‘‘(A) Notice from the Secretary of Education of 

18 an event under paragraph (3)(A). 

19 ‘‘(B) Notice of an event under paragraph 

20 (3)(B). 

21 ‘‘(C) Notice from a State of an action take by 

22 that State under paragraph (3)(C). 

23 ‘‘(D) Notice provided by an accrediting agency 

24 or association of an action described in paragraph 

25 (3)(D) taken by that agency or association. 


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1 ‘‘(E) Notice that the Secretary of Education 

2 has placed the educational institution on provisional 

3 status. 

4 ‘‘(3) An action or event under this paragraph is any 

5 of the following: 

6 ‘‘(A) The receipt by an educational institution 

7 of payments under the heightened cash monitoring 

8 payment method pursuant to section 487(c)(1)(B) of 

9 the Higher Education Act of 1965 (20 U.S.C. 

10 1094). 

11 ‘‘(B) Final punitive action taken by the Attor12 ney General, the Federal Trade Commission, or any 

13 other Federal department or agency against an edu14 cational institution relating to misconduct or mis15 leading marketing practices, as defined by the Sec16 retary of Veterans Affairs. 

17 ‘‘(C) Final punitive action taken by a State 

18 against an educational institution. 

19 ‘‘(D) The loss, or risk of loss, by an educational 

20 institution of an accreditation from an accrediting 

21 agency or association, including notice of probation, 

22 suspension, an order to show cause, or revocation of 

23 accreditation. 


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1 ‘‘(E) The placement of an educational institu2 tion on provisional status by the Secretary of Edu3 cation. 

4 ‘‘(4) If a State approving agency disapproves or sus5 pends an educational institution, the State approving 

6 agency shall provide notice of such disapproval or suspen7 sion to the Secretary and to the other State approving 

8 agencies. 

9 ‘‘(5) This subsection shall be carried out using 

10 amounts made available pursuant to section 3674(a)(4) 

11 of this title as long as such amounts remain available.’’. 

12 (b) EFFECTIVE DATE.—The amendment made by 

13 subsection (a) shall take effect on August 1, 2020. 

14 SEC. 7. ADDITIONAL REQUIREMENT FOR APPROVAL OF 

15 EDUCATIONAL INSTITUTIONS FOR PURPOSES 

16 OF THE EDUCATIONAL ASSISTANCE PRO17 GRAMS OF THE DEPARTMENT OF VETERANS 

18 AFFAIRS. 

19 (a) IN GENERAL.—Section 3675 of title 38, United 

20 States Code, is amended— 

21 (1) in subsection (b), by adding at the end the 

22 following new paragraph: 

23 ‘‘(4) The educational institution is approved 

24 and participates in a program under title IV of the 

25 Higher Education Act of 1965 (20 U.S.C. 1070 et 


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1 seq.) or the Secretary has waived the requirement 

2 under this paragraph with respect to an educational 

3 institution and submits to the Committees on Vet4 erans’ Affairs of the Senate and House of Rep5 resentatives notice of such waiver.’’. 

6 (2) by adding at the end the following new sub7 section: 

8 ‘‘(d) The Secretary shall submit to Congress an an9 nual report on any waivers issued pursuant to subsection 

10 (b)(4) or section 3672(b)(2)(A)(i) of this title. Each such 

11 report shall include, for the year covered by the report— 

12 ‘‘(1) the name of each educational institution 

13 for which a waiver was issued; 

14 ‘‘(2) the justification for each such waiver; and 

15 ‘‘(3) the total number of waivers issued.’’. 

16 (b) REQUIREMENT FOR APPROVAL OF STANDARD

17 COLLEGE DEGREE PROGRAMS.—Clause (i) of subpara18 graph (A) of paragraph (2) of subsection (b) of section 

19 3672 of such title is amended to read as follows: 

20 ‘‘(i) Except as provided in subparagraph 

21 (C) or (D), an accredited standard college de22 gree program offered at a public or not-for23 profit proprietary educational institution that— 


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1 ‘‘(I) is accredited by an agency or as2 sociation recognized for that purpose by 

3 the Secretary of Education; and 

4 ‘‘(II) is approved and participates in a 

5 program under title IV of the Higher Edu6 cation Act of 1965 (20 U.S.C. 1070 et 

7 seq.), unless the Secretary has waived the 

8 requirement to participate in a program 

9 under title IV of the Higher Education Act 

10 of 1965 (20 U.S.C. 1070 et seq.).’’. 

11 (c) EFFECTIVE DATE.—The amendments made by 

12 subsections (a) and (b) shall take effect on August 1, 

13 2020. 

14 SEC. 8. CLARIFICATION OF ACCREDITATION FOR LAW 

15 SCHOOLS FOR PURPOSES OF THE EDU16 CATIONAL ASSISTANCE PROGRAMS OF THE 

17 DEPARTMENT OF VETERANS AFFAIRS. 

18 (a) IN GENERAL.—Paragraphs (14)(B) and (15)(B) 

19 of section 3676(c) of title 38, United States Code, are 

20 each amended by striking ‘‘an accrediting agency’’ both 

21 places it appears and inserting ‘‘a specialized accrediting 

22 agency’’. 

23 (b) EFFECTIVE DATE.—The amendments made by 

24 subsection (a) shall take effect on August 1, 2020. 


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1 SEC. 9. CLARIFICATION OF GROUNDS FOR DISAPPROVAL 

2 OF A COURSE FOR PURPOSES OF THE EDU3 CATIONAL ASSISTANCE PROGRAMS OF THE 

4 DEPARTMENT OF VETERANS AFFAIRS. 

5 (a) IN GENERAL.—Section 3679(a)(1) of title 38, 

6 United States Code, is amended by inserting ‘‘(including 

7 failure to comply with a risk-based survey under section 

8 3673(d) of this title and secure an affirmation of approval 

9 by the appropriate State approving agency following the 

10 survey)’’ after ‘‘requirements of this chapter’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 subsection (a) shall take effect on August 1, 2020. 

13 SEC. 10. REQUIREMENTS FOR EDUCATIONAL INSTITUTIONS 

14 PARTICIPATING IN THE EDUCATIONAL AS15 SISTANCE PROGRAMS OF THE DEPARTMENT 

16 OF VETERANS AFFAIRS. 

17 (a) IN GENERAL.—Section 3679 of title 38, United 

18 States Code, as amended by section 6, is further amended 

19 by adding at the end the following new subsection: 

20 ‘‘(f)(1) Except as provided by paragraph (5), a State 

21 approving agency, or the Secretary when acting in the role 

22 of the State approving agency, may take an action de23 scribed in paragraph (4)(A) if the State approving agency 

24 or the Secretary determines that an educational institution 

25 does not perform any of the following: 


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1 ‘‘(A) Prior to the enrollment of a covered indi2 vidual in a course of education at the educational in3 stitution, provide the individual with a form that 

4 contains information personalized to the individual 

5 that describes— 

6 ‘‘(i) the estimated total cost of the course, 

7 including tuition, fees, books, supplies, and any 

8 other additional costs; 

9 ‘‘(ii) an estimate of the cost for living ex10 penses for students enrolled in the course; 

11 ‘‘(iii) the amount of the costs under 

12 clauses (i) and (ii) that are covered by the edu13 cational assistance provided to the individual 

14 under chapter 30, 32, 33, or 35 of this title, or 

15 chapter 1606 or 1607 of title 10, as the case 

16 may be; 

17 ‘‘(iv) the type and amount of Federal fi18 nancial aid not administered by the Secretary 

19 and financial aid offered by the institution that 

20 the individual may qualify to receive; 

21 ‘‘(v) an estimate of the amount of student 

22 loan debt the individual would have upon grad23 uation; 

24 ‘‘(vi) information regarding graduation 

25 rates; 


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1 ‘‘(vii) job-placement rates for graduates of 

2 the course, if available; 

3 ‘‘(viii) information regarding the accept4 ance by the institution of transfer of credits, in5 cluding military credits; 

6 ‘‘(ix) any conditions or additional require7 ments, including training, experience, or exami8 nations, required to obtain the license, certifi9 cation, or approval for which the course of edu10 cation is designed to provide preparation; and 

11 ‘‘(x) other information to facilitate com12 parison by the individual of aid packages of13 fered by different educational institutions. 

14 ‘‘(B) Not later than 15 days after the date on 

15 which the institution (or the governing body of the 

16 institution) determines tuition rates and fees for an 

17 academic year that is different than the amount 

18 being charged by the institution, provide a covered 

19 individual enrolled in a course of education at the 

20 educational institution with the form under subpara21 graph (A) that contains updated information. 

22 ‘‘(C) Maintain policies to— 

23 ‘‘(i) inform each covered individual enrolled 

24 in a course of education at the educational in25 stitution of the availability of Federal financial 


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1 aid not administered by the Secretary and fi2 nancial aid offered by the institution; and 

3 ‘‘(ii) alert such individual of the potential 

4 eligibility of the individual for such financial aid 

5 before packaging or arranging student loans or 

6 alternative financing programs for the indi7 vidual. 

8 ‘‘(D) Maintain policies to— 

9 ‘‘(i) prohibit the automatic renewal of a 

10 covered individual in courses and programs of 

11 education; and 

12 ‘‘(ii) ensure that each covered individual 

13 approves of the enrollment of the individual in 

14 a course. 

15 ‘‘(E) Provide to a covered individual enrolled in 

16 a course of education at the educational institution 

17 with information regarding the requirements to 

18 graduate from such course, including information re19 garding when required classes will be offered and a 

20 timeline to graduate. 

21 ‘‘(F) With respect to an accredited educational 

22 institution, obtain the approval of the accrediting 

23 agency for each new course or program of the insti24 tution before enrolling covered individuals in such 

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1 mines that such approval is appropriate under the 

2 substantive change requirements of the accrediting 

3 agency regarding the quality, objectives, scope, or 

4 control of the institution. 

5 ‘‘(G) Maintain a policy that— 

6 ‘‘(i) ensures that members of the Armed 

7 Forces, including the reserve components and 

8 the National Guard, who enroll in a course of 

9 education at the educational institution may be 

10 readmitted at such institution if such members 

11 are temporarily unavailable or have to suspend 

12 such enrollment by reason of serving in the 

13 Armed Forces; and 

14 ‘‘(ii) otherwise accommodates such mem15 bers during short absences by reason of such 

16 service. 

17 ‘‘(H) Designate an employee of the educational 

18 institution to serve as a point of contact for covered 

19 individuals and the family of such individuals need20 ing assistance with respect to academic counseling, 

21 financial counseling, disability counseling, and other 

22 information regarding completing a course of edu23 cation at such institution, including by referring 

24 such individuals and family to the appropriate per25 sons for such counseling and information. 


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1 ‘‘(2) Except as provided by paragraph (5), a State 

2 approving agency, or the Secretary when acting in the role 

3 of the State approving agency, may take an action de4 scribed in paragraph (4)(A) if the State approving agency, 

5 the Secretary, or the Federal Trade Commission, deter6 mines that an educational institution does any of the fol7 lowing: 

8 ‘‘(A) Carries out deceptive or persistent recruit9 ing techniques, including on military installations, 

10 that may include— 

11 ‘‘(i) misrepresentation (as defined in sec12 tion 3696(e)(2)(B) of this title) or payment of 

13 incentive compensation; 

14 ‘‘(ii) during any 1-month period making 

15 three or more unsolicited contacts to a covered 

16 individual, including contacts by phone, email, 

17 or in-person; or 

18 ‘‘(iii) engaging in same-day recruitment 

19 and registration. 

20 ‘‘(B) Pays inducements, including any gratuity, 

21 favor, discount, entertainment, hospitality, loan, 

22 transportation, lodging, meals, or other item having 

23 a monetary value of more than a de minimis 

24 amount, to any individual or entity, or its agents in25 cluding third party lead generators or marketing 


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1 firms other than salaries paid to employees or fees 

2 paid to contractors in conformity with all applicable 

3 laws for the purpose of securing enrollments of cov4 ered individuals or obtaining access to educational 

5 assistance under this title, with the exception of 

6 scholarships, grants, and tuition reductions provided 

7 by the educational institution. 

8 ‘‘(3) A State approving agency, or the Secretary when 

9 acting in the role of the State approving agency, may take 

10 an action described in paragraph (4)(A) if the State ap11 proving agency or the Secretary determines that an edu12 cational institution is the subject of a negative action 

13 made by the accrediting agency that accredits the institu14 tion, including any of the following: 

15 ‘‘(A) A show cause order. 

16 ‘‘(B) Accreditor sanctions. 

17 ‘‘(C) Accreditation probation. 

18 ‘‘(D) The loss of accreditation or candidacy for 

19 accreditation. 

20 ‘‘(4)(A) An action described in this subparagraph is 

21 any of the following: 

22 ‘‘(i) Publishing a warning on the internet 

23 website of the Department described in section 

24 3698(c)(2) of this title, or such other similar inter25 net website of the Department, that describes how 


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1 an educational institution is failing to meet a re2 quirement under paragraph (1) or (2). 

3 ‘‘(ii) Prohibiting the pursuit by an individual of 

4 a course of education at an educational institution 

5 under chapter 30, 32, 33, or 35 of this title during 

6 the period beginning on the date of such prohibition 

7 and ending on a date specified by the State approv8 ing agency, in consultation with the Secretary, or 

9 the Secretary when acting in the role of the State 

10 approving agency, unless the individual was enrolled 

11 at the institution before such period. 

12 ‘‘(B) The Secretary shall establish guidelines to en13 sure that the actions described in subparagraph (A) are 

14 applied in a proportional and uniform manner by State 

15 approving agencies, or the Secretary when acting in the 

16 role of the State approving agency. 

17 ‘‘(5)(A) The Secretary may waive the requirements 

18 of paragraph (1) or waive the requirements of paragraph 

19 (2) with respect to an educational institution for a 1-aca20 demic-year period beginning in August of the year in 

21 which the waiver is made. A single educational institution 

22 may not receive waivers under this paragraph for more 

23 than 2 consecutive academic years. 

24 ‘‘(B) To be considered for a waiver under this para25 graph, an educational institution shall submit to the SecVerDate Sep 11 2014 22:59 Nov 13, 2019 Jkt 099200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H4625.RFS H4625

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1 retary an application prior to the first day of the academic 

2 year for which the waiver is sought. 

3 ‘‘(6) On an annual basis, the Secretary shall submit 

4 to the Committees on Veterans’ Affairs of the House of 

5 Representatives and the Senate the following reports: 

6 ‘‘(A) A report, which shall be made publicly 

7 available, that includes the following: 

8 ‘‘(i) A summary of each action described in 

9 paragraph (4)(A) made during the year covered 

10 by the report, including— 

11 ‘‘(I) the name of the educational insti12 tution; 

13 ‘‘(II) the type of action taken; 

14 ‘‘(III) the rationale for the action, in15 cluding how the educational institution was 

16 not in compliance with this subsection; 

17 ‘‘(IV) the length of time that the edu18 cational institution was not in such compli19 ance; and 

20 ‘‘(V) whether the educational institu21 tion was also not in compliance with this 

22 subsection during any of the 2 years prior 

23 to the year covered by the report. 

24 ‘‘(ii) A summary and justifications for the 

25 waivers made under paragraph (5) during the 


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1 year covered by the report, including the total 

2 number of waivers each educational institution 

3 has received. 

4 ‘‘(B) A report containing the recommendations 

5 of the Secretary with respect to any legislative ac6 tions the Secretary determines appropriate to ensure 

7 that this subsection is carried out in a manner that 

8 is consistent with the requirements that educational 

9 institutions must meet for purposes of other depart10 ments or agencies of the Federal Government. 

11 ‘‘(7) In this subsection, the term ‘covered individual’ 

12 means an individual who is pursuing a course of education 

13 at an educational institution under chapter 30, 32, 33, 

14 or 35 of this title.’’. 

15 (b) APPLICATION DATE.—The amendment made by 

16 this section shall take effect on June 15, 2020, and shall 

17 apply to an educational institution beginning on August 

18 1, 2020, except that an educational institution may submit 

19 an application for a waiver under subsection (f)(5) of sec20 tion 3679 of title 38, United States Code, as added by 

21 subsection (a), beginning on June 15, 2020. 

22 SEC. 11. OVERPAYMENTS TO ELIGIBLE PERSONS OR VET23 ERANS. 

24 Subsection (b) of section 3685 of title 38, United 

25 States Code, is amended to read as follows: 


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1 ‘‘(b) Any overpayment by an educational institution 

2 to a veteran or eligible person shall constitute a liability 

3 of the educational institution to the United States if— 

4 ‘‘(1) the Secretary finds that the overpayment 

5 has been made as the result of— 

6 ‘‘(A) the willful or negligent failure of an 

7 educational institution to report, as required 

8 under this chapter or chapter 34 or 35 of this 

9 title, to the Department of Veterans Affairs ex10 cessive absences from a course, or discontinu11 ance or interruption of a course by the veteran 

12 or eligible person; or 

13 ‘‘(B) the willful or negligent false certifi14 cation by an educational institution; or 

15 ‘‘(2) the payment is made pursuant to— 

16 ‘‘(A) section 3313(h) of this title; 

17 ‘‘(B) section 3317 of this title; or 

18 ‘‘(C) section 3680(d) of this title.’’. 

19 SEC. 12. IMPROVEMENTS TO LIMITATION ON CERTAIN AD20 VERTISING, SALES, AND ENROLLMENT PRAC21 TICES. 

22 (a) SUBSTANTIAL MISREPRESENTATION.— 

23 (1) IN GENERAL.—Subsection (a) of section 

24 3696 of title 38, United States Code, is amended to 

25 read as follows: 


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1 ‘‘(a) The Secretary, or a State approving agency act2 ing in the role of the Secretary, shall not approve the en3 rollment of an eligible veteran or eligible person in any 

4 course offered by an institution, or by an entity that owns 

5 the institution, engaged in substantial misrepresentation 

6 described in subsection (e)(1).’’. 

7 (2) DEFINITIONS.—Such section is further 

8 amended by adding at the end the following new 

9 subsection: 

10 ‘‘(e)(1) Substantial misrepresentation described in 

11 this paragraph is substantial misrepresentation by an edu12 cational institution, a representative of the institution, or 

13 any person with whom the institution has an agreement 

14 to provide educational programs, marketing, advertising, 

15 recruiting or admissions services, concerning any of the 

16 following: 

17 ‘‘(A) The nature of the educational program of 

18 the institution, including misrepresentation regard19 ing— 

20 ‘‘(i) the particular type, specific source, or 

21 nature and extent, of the accreditation of the 

22 institution or a course of education at the insti23 tution; 

24 ‘‘(ii) whether a student may transfer 

25 course credits to another institution; 


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1 ‘‘(iii) conditions under which the institu2 tion will accept transfer credits earned at an3 other institution; 

4 ‘‘(iv) whether successful completion of a 

5 course of instruction qualifies a student— 

6 ‘‘(I) for acceptance to a labor union or 

7 similar organization; or 

8 ‘‘(II) to receive, to apply to take, or to 

9 take an examination required to receive a 

10 local, State, or Federal license, or a non11 governmental certification required as a 

12 precondition for employment, or to perform 

13 certain functions in the States in which the 

14 educational program is offered, or to meet 

15 additional conditions that the institution 

16 knows or reasonably should know are gen17 erally needed to secure employment in a 

18 recognized occupation for which the pro19 gram is represented to prepare students; 

20 ‘‘(v) the requirements for successfully com21 pleting the course of study or program and the 

22 circumstances that would constitute grounds for 

23 terminating the student’s enrollment; 

24 ‘‘(vi) whether the courses of education at 

25 the institution are recommended or have been 


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1 the subject of unsolicited testimonials or en2 dorsements by— 

3 ‘‘(I) vocational counselors, high 

4 schools, colleges, educational organizations, 

5 employment agencies, members of a par6 ticular industry, students, former students, 

7 or others; or 

8 ‘‘(II) officials of a local or State gov9 ernment or the Federal Government; 

10 ‘‘(vii) the size, location, facilities, or equip11 ment of the institution; 

12 ‘‘(viii) the availability, frequency, and ap13 propriateness of the courses of education and 

14 programs to the employment objectives that the 

15 institution states the courses and programs are 

16 designed to meet; 

17 ‘‘(ix) the nature, age, and availability of 

18 the training devices or equipment of the institu19 tion and the appropriateness to the employment 

20 objectives that the institution states the courses 

21 and programs are designed to meet; 

22 ‘‘(x) the number, availability, and quali23 fications, including the training and experience, 

24 of the faculty and other personnel of the insti25 tution; 


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1 ‘‘(xi) the availability of part-time employ2 ment or other forms of financial assistance; 

3 ‘‘(xii) the nature and availability of any tu4 torial or specialized instruction, guidance and 

5 counseling, or other supplementary assistance 

6 the institution ill provide students before, dur7 ing, or after the completion of a course of edu8 cation; 

9 ‘‘(xiii) the nature or extent of any pre10 requisites established for enrollment in any 

11 course of education; 

12 ‘‘(xiv) the subject matter, content of the 

13 course of education, or any other fact related to 

14 the degree, diploma, certificate of completion, 

15 or any similar document that the student is to 

16 be, or is, awarded upon completion of the 

17 course of education; and 

18 ‘‘(xv) whether the degree that the institu19 tion will confer upon completion of the course 

20 of education has been authorized by the appro21 priate State educational agency, including with 

22 respect to cases where the institution fails to 

23 disclose facts regarding the lack of such author24 ization in any advertising or promotional mate25 rials that reference such degree. 


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1 ‘‘(B) The financial charges of the institution, 

2 including misrepresentation regarding— 

3 ‘‘(i) offers of scholarships to pay all or 

4 part of a course charge; 

5 ‘‘(ii) whether a particular charge is the 

6 customary charge at the institution for a 

7 course; 

8 ‘‘(iii) the cost of the program and the re9 fund policy of the institution if the student does 

10 not complete the program; 

11 ‘‘(iv) the availability or nature of any fi12 nancial assistance offered to students, including 

13 a student’s responsibility to repay any loans, re14 gardless of whether the student is successful in 

15 completing the program and obtaining employ16 ment; and 

17 ‘‘(v) the student’s right to reject any par18 ticular type of financial aid or other assistance, 

19 or whether the student must apply for a par20 ticular type of financial aid, such as financing 

21 offered by the institution. 

22 ‘‘(C) The employability of the graduates of the 

23 institution, including misrepresentation regarding— 

24 ‘‘(i) the relationship of the institution with 

25 any organization, employment agency, or other 


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1 agency providing authorized training leading di2 rectly to employment; 

3 ‘‘(ii) the plans of the institution to main4 tain a placement service for graduates or other5 wise assist graduates to obtain employment; 

6 ‘‘(iii) the knowledge of the institution 

7 about the current or likely future conditions, 

8 compensation, or employment opportunities in 

9 the industry or occupation for which the stu10 dents are being prepared; 

11 ‘‘(iv) job market statistics maintained by 

12 the Federal Government in relation to the po13 tential placement of the graduates of the insti14 tution; and 

15 ‘‘(v) other requirements that are generally 

16 needed to be employed in the fields for which 

17 the training is provided, such as requirements 

18 related to commercial driving licenses or per19 mits to carry firearms, and failing to disclose 

20 factors that would prevent an applicant from 

21 qualifying for such requirements, such as prior 

22 criminal records or preexisting medical condi23 tions. 

24 ‘‘(2) In this subsection: 


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1 ‘‘(A) The term ‘misleading statement’ includes 

2 any communication, action, omission, or intimation 

3 made in writing, visually, orally, or through other 

4 means, that has the likelihood or tendency to mis5 lead the intended recipient of the communication 

6 under the circumstances in which the communication 

7 is made. Such term includes the use of student en8 dorsements or testimonials for an educational insti9 tution that a student gives to the institution either 

10 under duress or because the institution required the 

11 student to make such an endorsement or testimonial 

12 to participate in a program of education. 

13 ‘‘(B) The term ‘misrepresentation’ means any 

14 false, erroneous, or misleading statement, action, 

15 omission, or intimation made directly or indirectly to 

16 a student, a prospective student, the public, an ac17 crediting agency, a State agency, or to the Secretary 

18 by an eligible institution, one of its representatives, 

19 or any person with whom the institution has an 

20 agreement to provide educational programs, mar21 keting, advertising, recruiting or admissions services. 

22 ‘‘(C) The term ‘substantial misrepresentation’ 

23 means misrepresentation in which the person to 

24 whom it was made could reasonably be expected to 


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1 rely, or has reasonably relied, to that person’s det2 riment.’’. 

3 (b) REFERRAL.—Subsection (c) of such section is 

4 amended by striking the last sentence and inserting the 

5 following: ‘‘The findings and results of any such investiga6 tions shall be referred to the State approving agency, or 

7 the Secretary when acting in the role of the State approv8 ing agency, who shall take appropriate action in such cases 

9 not later than 60 days after the date of such referral.’’. 

10 (c) REQUIREMENTS FOR NONACCREDITED

11 COURSES.—Paragraph (10) of section 3676(c) of such 

12 title is amended to read as follows: 

13 ‘‘(10) The institution, and any entity that owns 

14 the institution, does not engage in substantial mis15 representation described in section 3696(e) of this 

16 title. The institution shall not be deemed to have 

17 met this requirement until the State approving agen18 cy— 

19 ‘‘(A) has ascertained that no Federal de20 partment or agency has taken a punitive action, 

21 not including a settlement agreement, against 

22 the school for misleading or deceptive practices; 

23 ‘‘(B) has, if such an order has been issued, 

24 given due weight to that fact; and 


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1 ‘‘(C) has reviewed the complete record of 

2 advertising, sales, or enrollment materials (and 

3 copies thereof) used by or on behalf of the insti4 tution during the preceding 12-month period.’’. 

5 (d) APPLICATION DATE.—The amendments made by 

6 this section shall apply to an educational institution begin7 ning on August 1, 2020. 

8 SEC. 13. ADDITIONAL LIMITATION ON CERTAIN ADVER9 TISING, SALES, AND ENROLLMENT PRAC10 TICES OF EDUCATIONAL INSTITUTIONS. 

11 (a) IN GENERAL.—Section 3696(a) of title 38, 

12 United States Code, as amended by section 11, is further 

13 amended— 

14 (1) by inserting ‘‘(1)’’ before ‘‘The Secretary’’; 

15 and 

16 (2) by adding at the end the following new 

17 paragraph: 

18 ‘‘(2) Not later than 120 days after a State or Federal 

19 department or agency takes final punitive action against 

20 an educational institution relating to practices described 

21 in paragraph (1), the Secretary or the relevant State ap22 proving agency may— 

23 ‘‘(A) take an action described in subsection 

24 (f)(4)(A) of section 3679 of this title; or 


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1 ‘‘(B) disapprove under such section each course 

2 offered by that educational institution.’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 subsection (a) shall take effect on August 1, 2020. 

5 SEC. 14. CHARGE TO ENTITLEMENT TO EDUCATIONAL AS6 SISTANCE FOR INDIVIDUALS WHO DO NOT 

7 TRANSFER CREDITS FROM CERTAIN CLOSED 

8 OR DISAPPROVED PROGRAMS OF EDU9 CATION. 

10 (a) IN GENERAL.—Subsection (c) of section 3699 of 

11 title 38, United States Code, is amended to read as fol12 lows: 

13 ‘‘(c) PERIOD NOT CHARGED.—(1) The period for 

14 which, by reason of this subsection, educational assistance 

15 is not charged against entitlement or counted toward the 

16 applicable aggregate period under section 3695 of this title 

17 shall not exceed the aggregate of— 

18 ‘‘(A) the portion of the period of enrollment in 

19 the course from which the individual did not receive 

20 credit or with respect to which the individual lost 

21 training time, as determined under subsection 

22 (b)(2); and 

23 ‘‘(B) the period by which a monthly stipend is 

24 extended under section 3680(a)(2)(B) of this title. 


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1 ‘‘(2)(A) An individual described in subparagraph (B) 

2 who transfers fewer than 12 credits from a program of 

3 education that is closed or disapproved as described in 

4 subsection (b)(1) shall be deemed to be an individual who 

5 did not receive such credits, as described in subsection 

6 (b)(2), except that the period for which such individual’s 

7 entitlement is not charged shall be the entire period of 

8 the individual’s enrollment in the program of education. 

9 In carrying out this subparagraph, the Secretary, in con10 sultation with the Secretary of Education, shall establish 

11 procedures to determine whether the individual trans12 ferred credits to a comparable course or program of edu13 cation. 

14 ‘‘(B) An individual described in this subparagraph is 

15 an individual who is enrolled in a course or program of 

16 education closed or discontinued as described in subsection 

17 (b)(1) during the period beginning on the date that is 120 

18 days before the date of such closure or discontinuance and 

19 ending on the date of such closure or discontinuance, as 

20 the case may be. 

21 ‘‘(C) This paragraph shall apply with respect to a 

22 course or program of education closed or discontinued be23 fore September 30, 2023.’’. 

24 (b) EFFECTIVE DATE.—The amendment made by 

25 subsection (a) shall take effect on August 1, 2020. 


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1 SEC. 15. DETERMINATION OF BUDGETARY EFFECTS. 

2 The budgetary effects of this Act, for the purpose of 

3 complying with the Statutory Pay-As-You-Go Act of 2010, 

4 shall be determined by reference to the latest statement 

5 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

6 Act, submitted for printing in the Congressional Record 

7 by the Chairman of the House Budget Committee, pro8 vided that such statement has been submitted prior to the 

9 vote on passage. 

Passed the House of Representatives November 12, 

2019. 

Attest: CHERYL L. JOHNSON, 

Clerk. 


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