rely, or has reasonably relied, to that person’s det-
riment.’’. 
(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 investiga-
tions shall be referred to the State approving agency, or 
the Secretary when acting in the role of the State approv-
ing 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 mis-
representation described in section 3696(e) of this 
title. The institution shall not be deemed to have 
met this requirement until the State approving agen-
cy— 
‘‘(A) has ascertained that no Federal de-
partment 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 insti-
tution during the preceding 12-month period.’’. 
(d) APPLICATION DATE.—The amendments made by 
this section shall apply to an educational institution begin-
ning on August 1, 2020. 
SEC. 13. ADDITIONAL LIMITATION ON CERTAIN ADVER-
TISING, SALES, AND ENROLLMENT PRAC-
TICES 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 ap-
proving 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 AS-
SISTANCE FOR INDIVIDUALS WHO DO NOT 
TRANSFER CREDITS FROM CERTAIN CLOSED 
OR 
DISAPPROVED 
PROGRAMS 
OF 
EDU-
CATION. 
(a) IN GENERAL.—Subsection (c) of section 3699 of 
title 38, United States Code, is amended to read as fol-
lows: 
‘‘(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 con-
sultation with the Secretary of Education, shall establish 
procedures to determine whether the individual trans-
ferred credits to a comparable course or program of edu-
cation. 
‘‘(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 be-
fore 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, pro-
vided that such statement has been submitted prior to the 
vote on passage. 
Passed the House of Representatives November 12, 
2019. 
Attest: 
Clerk.
116TH CONGRESS 
1ST SESSION 
H. R. 4625 
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 De-
partment of Veterans Affairs, and for other pur-
poses.