II 113th CONGRESS 1st Session S. 1717 IN THE SENATE OF THE UNITED STATES November 14, 2013 Mr. Kaine (for himself and Mr. Chambliss ) introduced the following bill; which was read twice and referred to the Committee on Veterans' Affairs A BILL To amend title 38, United States Code, to improve oversight of educational assistance provided under laws administered by the Secretary of Veterans Affairs and the Secretary of Defense, and for other purposes.

1. Short title This Act may be cited as the Servicemember Education Reform and Vocational Enhancement Act of 2013 or the SERVE Act of 2013 . 2. Additional requirements for approval of courses of education for purposes of educational assistance under laws administered by Secretary of Veterans Affairs and Secretary of Defense (a) Automatic approval by Secretary of Veterans Affairs of degree programs approved by Secretary of Education Clause (i) of section 3672(b)(2)(A) of title 38, United States Code, is amended to read as follows: (i) A course that is described by section 3675(a) of this title. . (b) Approval by Secretary of Veterans Affairs of non-Degree programs approved by Secretary of Education (1) In general Section 3675 of such title is amended— (A) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; (B) by striking subsection (a); and (C) by inserting before subsection (c), as redesignated by subparagraph (A), the following new subsections: (a) The Secretary or a State approving agency may only approve a course that leads to an associate or higher degree when such course is an eligible program (as defined in section 481 of the Higher Education Act of 1965 ( 20 U.S.C. 1088 )) offered by an institution of higher education (as defined in section 102 of such Act (20 U.S.C. 1002)) that has entered into, and is complying with, a program participation agreement under section 487 of such Act ( 20 U.S.C. 1094 ). (b) (1) The Secretary or a State approving agency may approve a course that does not lead to an associate or higher degree when— (A) such course— (i) is an eligible program (as defined in section 481 of the Higher Education Act of 1965 ( 20 U.S.C. 1088 )) offered by an institution of higher education (as defined in section 102 of such Act (20 U.S.C. 1002)) that has entered into, and is complying with, a program participation agreement under section 487 of such Act ( 20 U.S.C. 1094 ); (ii) in the case of a course designed to prepare individuals for licensure or certification, meets the instructional curriculum licensure or certification requirements of the State in which the institution is located; and (iii) in the case of a course designed to prepare an individual for employment by a State board or agency in an occupation that requires approval or licensure for such employment, is approved or licensed by such State board or agency; (B) such course is accepted by the State department of education for credit for a teacher's certificate; or (C) such course is approved by the State as meeting the requirement of regulations prescribed by the Secretary of Health and Human Services under sections 1819(f)(2)(A)(i) and 1919(f)(2)(A)(i) of the Social Security Act ( 42 U.S.C. 1395i–3(f)(2)(A)(i) and 1396r(f)(2)(A)(i)). (2) (A) An educational institution shall submit an application for approval of courses to the appropriate State approving agency. In making application for approval, the institution (other than an elementary school or secondary school) shall transmit to the State approving agency copies of its catalog or bulletin which must be certified as true and correct in content and policy by an authorized representative of the institution. (B) Each catalog or bulletin transmitted by an institution under subparagraph (A) of this paragraph shall— (i) state with specificity the requirements of the institution with respect to graduation; (ii) include the information required under paragraphs (6) and (7) of section 3676(b) of this title; and (iii) include any attendance standards of the institution, if the institution has and enforces such standards. . (2) Conforming amendments Such title is amended— (A) in section 3452(g), by striking under the provisions of section 3675 of this title ; (B) in section 3501(11), by striking under the provisions of section 3675 of this title ; (C) in section 3672(b)(2)(A), by striking 3675(b)(1) and (b)(2) and inserting 3675(c)(1) and (c)(2) ; and (D) in the heading for section 3675, by striking accredited courses and inserting courses approved by Secretary of Education . (3) Clerical amendment The table of sections at the beginning of chapter 36 of such title is amended by striking the item relating to section 3675 and inserting the following new item: 3675. Approval of courses approved by Secretary of Education. . (c) Approval by Secretary of Veterans Affairs of non-Degree programs not approved by Secretary of Education (1) In general Subsection (a) of section 3676 of such title is amended to read as follows: (a) No course of education which has not been approved by the Secretary or a State approving agency under section 3675 of this title shall be approved for the purposes of this chapter unless— (1) the course— (A) does not lead to an associate or higher degree; (B) was not an eligible program (as defined in section 481 of the Higher Education Act of 1965 ( 20 U.S.C. 1088 )) at any time during the most recent two-year period; and (C) is a course that the Secretary or State approving agency determines, in accordance with this section and such regulations as the Secretary shall prescribe and on a case-by-case basis, that approval of which would further the purposes of this chapter or any of chapters 30 through 35 of this title; and (2) the educational institution offering such course submits to the appropriate State approving agency a written application for approval of such course in accordance with the provisions of this chapter. . (2) Additional requirements Subsection (c) of section 3676 of such title is amended— (A) by redesignating paragraph (14) as paragraph (18); and (B) by inserting after paragraph (13) the following new paragraphs: (14) Courses that prepare individuals for licensure or certification have verified that the course’s instructional curriculum appropriately includes the licensure or certification requirements in the State in which the institution deems such curriculum does. (15) Courses for which a State board or agency in the State in which the course is designed to prepare a student requires approval or licensure for employment in the recognized occupation in the State is approved or licensed by such State board or agency. (16) In the case of an educational institution that advertises job placement rates as a means of attracting students to enroll in a course of education offered by the educational institution, the application contains any other information necessary to substantiate the truthfulness of such advertisements. (17) The educational institution does not make any misrepresentations (as defined in section 668.71 of title 34, Code of Federal Regulations (or any corresponding similar regulation or ruling)) regarding the nature of its educational program, the nature of its financial charges, or the employability of its graduates (as defined in sections 668.72 through 668.74 of such title, respectively (or any corresponding similar regulations or rulings)). . (3) Conforming amendments Section 3676 of such title is amended— (A) in the heading for such section, by striking nonaccredited courses and inserting courses not approved by Secretary of Education ; and (B) in subsection (c), in the matter before paragraph (1), by striking non-accredited . (4) Clerical amendment The table of sections at the beginning of chapter 36 of such title is amended by striking the item relating to section 3675 and inserting the following new item: 3676. Approval of courses not approved by Secretary of Education. . (d) Additional requirements for approval of programs for educational assistance for persons enlisting for active duty Section 2143 of title 10, United States Code, is amended— (1) in subsection (a), by striking to subsection (b) and inserting to subsections (b) and (c) ; (2) by redesignating subsection (c) as subsection (d); and (3) by inserting after subsection (b) the following new subsection (c): (c) (1) Except as provided in paragraph (2), a person entitled to assistance under this chapter may only use such assistance for educational expenses incurred for an eligible program (as defined in section 481 of the Higher Education Act of 1965 ( 20 U.S.C. 1088 )) that— (A) is offered by an institution of higher education (as defined in section 102 of such Act ( 20 U.S.C. 1002 )) that has entered into, and is complying with, a program participation agreement under section 487 of such Act ( 20 U.S.C. 1094 ); (B) in the case of a program designed to prepare individuals for licensure or certification, meets the instructional curriculum licensure or certification requirements of the State in which the institution is located; and (C) in the case of a program designed to prepare individuals for employment by a State board or agency in an occupation that requires approval or licensure for such employment, is approved or licensed by such State board or agency. (2) The Secretary may, in accordance with regulations the Secretary shall prescribe, authorize the use of educational assistance awarded under this chapter for educational expenses incurred for a program of education that is not described in paragraph (1) if such program— (A) is accredited and approved by a nationally recognized accrediting agency or association; (B) was not an eligible program described in paragraph (1) at any time during the most recent two-year period; and (C) is a program that the Secretary determines, on a case-by-case basis, that approval of which would further the purposes of the program established under section 2141 of this title. . (e) Effective date The amendments made by this section shall take effect on August 1, 2014. 3. Requirement that educational institutions furnish Secretary of Veterans Affairs with information necessary to provide education information to veterans Section 3698 of title 38, United States Code, is amended— (1) redesignating subsection (f) as subsection (g); and (2) by inserting after subsection (e) the following new subsection (f): (f) Authority To obtain information from educational institutions (1) If the Secretary determines that the Secretary requires information from an educational institution to provide information pursuant to subsection (b)(5), the Secretary may request such information from such educational institution. (2) The Secretary may not approve a course offered by an educational institution under this chapter if such educational institution fails to comply with a request made by the Secretary under paragraph (1). . 4. Requirement that educational institutions provide academic or career counseling to veterans and members of Armed Forces (a) Academic and career counseling (1) In general Subchapter I of chapter 36 of title 38, United States Code, is amended by adding at the end the following new section: 3679A. Provision of academic or career counseling (a) In general (1) An educational institution with a covered individual enrolled in programs of education at the educational institution may not be approved under this chapter unless the educational institution provides academic or career counseling to each covered individual enrolled in a program of education at the educational institution. (2) Counseling provided under paragraph (1) to a covered individual shall be provided before the educational institution receives any amount from the Secretary for the individual's pursuit of a program of education. (3) At a minimum, the academic or career counseling provided under paragraph (1) shall include the following: (A) An overview of the educational assistance resources available to the individual at the educational institution. (B) Discussion of how enrollment in the individual's program of education will further the student's academic or career goals. (4) The Secretary shall encourage educational institutions to assist covered individuals in developing a personalized academic and career plan as part of individualized, one-on-one educational counseling provided under paragraph (1). (b) Waiver The Secretary may, on a case-by-case basis, waive the requirement to provide academic or career counseling under paragraph (1) for an educational institution for an academic year if— (1) the Secretary determines that the educational institution has demonstrated that providing such counseling during such academic year would lead to severe financial hardship; and (2) the educational institution submits to the Secretary a plan to provide such counseling during the following academic year. (c) Covered individual defined In this section, the term covered individual , with respect to enrollment in a program of education, means an individual who is receiving educational assistance under this chapter or any of chapters 30 through 35 of this title or under chapters 106A and 1606 of title 10 for such program of education. . (2) Clerical amendment The table of sections at the beginning of chapter 36 of such title is amended by inserting after the item relating to section 3679 the following new item: 3679A. Provision of academic or career counseling. . (b) Conforming amendment Section 3672(b)(2)(A) of such title (as amended by section 3(a)(2)) is further amended by striking and 3696 and inserting 3696, and 3679A . (c) Effective date Section 3679A of such title, as added by paragraph (1), shall take effect on August 1, 2014. 5. State approving agencies (a) Education and outreach (1) In general Subchapter I of chapter 36 of title 38, United States Code, is amended by inserting after section 3674A the following new section: 3674B. Education and outreach (a) Education and outreach required As a condition on receipt of reimbursement expenses under section 3674 of this title, each State approving agency shall conduct such education and outreach activities for individuals who are eligible to receive or are receiving educational assistance under this chapter or any of chapters 30 through 35 of this title as the Secretary considers appropriate to assist such individuals in making well-informed choices about their education and successfully tran­si­tion­ing into an educational environment. (b) Coordination Each State approving agency conducting outreach activities under subsection (a) shall coordinate with the Secretary of Defense to ensure, as the Secretary of Defense considers appropriate, that information on educational assistance available under this chapter and chapters 30 through 35 of this title is made readily available as part of the Transition Assistance Program (TAP) of the Department of Defense in the State of the State approving agency. (c) Manner Information made available as part of education and outreach activities under this section shall be made— (1) in language that can be easily understood by individuals described in paragraph (1); (2) in a uniform and easily accessible manner; and (3) through such means as may be appropriate and effective, including through publications, mailings, and electronic media. . (2) Clerical amendment The table of sections at the beginning of chapter 36 of such title is amended by inserting after the item relating to section 3674A the following new item: 3674B. Education and outreach. . (b) Audits Section 3673(d) of such title is amended— (1) by inserting (1) before The Secretary ; and (2) by adding at the end the following new paragraph: (2) Each year, each State approving agency, as a condition of receiving reimbursement of expenses under section 3674 of this title, shall conduct such audits as the Secretary considers appropriate, including unannounced audits and audits using risk-based approaches, of educational institutions in the State of the State approving agency that have students enrolled in programs of education at the educational institutions who are receiving educational assistance under this chapter or any of chapters 30 through 35 of this title (without regard to whether the Secretary or the State approving agency approved the courses offered) in such State— (A) to detect misrepresentation, fraud, waste, and abuse; (B) to ensure full compliance with the provisions of this chapter; and (C) for such other purposes as the Secretary considers appropriate. . (c) Reports Section 3674(a)(3) of such title is amended— (1) by inserting (A) before Each State ; and (2) by adding at the end the following new subparagraph: (B) Each report submitted under subparagraph (A) shall include the following: (i) The number of visits made by the agency to educational institutions, including the number of such visits that were made without the prior knowledge of such educational institution. (ii) A description of the audits carried out by the agency under section 3673(d)(2) of this title and the findings of the agency, including with respect to any substantiated findings of misrepresentation, fraud, waste, abuse, or failure to comply with an applicable requirement of this chapter and the steps taken by the agency to address such fraud, waste, abuse, or failure to comply. (iii) A description of the outreach and training activities conducted by the agency under section 3674B of this title. . (d) Effective date The amendments made by this section shall take effect on August 1, 2014. 6. Mandatory compliance reviews (a) In general Section 3693 of title 38, United States Code, is amended by adding at the end the following new subsection: (c) In addition to the annual compliance surveys conducted under subsection (a), the Secretary shall also conduct a compliance review, in accordance with such regulations as the Secretary shall prescribe, of an educational institution described in such subsection whenever the Secretary finds any of the following: (1) The student dropout rate of the institution has increased rapidly. (2) The cohort default rate, as defined in section 435(m) of the Higher Education Act of 1965 ( 20 U.S.C. 1085(m) ), of the educational institution has increased rapidly or is consistently higher than the average of cohort default rate of comparable educational institutions. (3) The number of substantiated complaints filed with the centralized complaint system established under section 4 of Executive Order 13607 (77 Fed. Reg. 25863) with respect to the educational institution have increased rapidly or is consistently higher than the number of substantiated complaints filed with respect to other comparable educational institutions. (4) The educational institution is the subject of a civil lawsuit in Federal or State court, is charged with a crime under Federal or State law, or is the subject of an official investigation of a State or Federal agency for misconduct. (5) The educational institution has significant growth in revenue resulting from tuition, including tuition paid with assistance provided under this chapter, chapters 30 through 35 of this title, or chapters 106A or 1606 of title 10, which cannot be attributed to changes made to such chapters by Acts of Congress or changes to the administration of such chapters. (6) Such other findings as the Secretary considers warrant conducting a compliance survey under subsection (a). . (b) Effective date Subsection (c) of such section, as added by subsection (a), shall take effect on August 1, 2014. 7. Pilot program on facilitating pursuit of programs of apprenticeship and other on-job training with educational assistance under Post-9/11 Educational Assistance (a) Pilot program required The Secretary of Veterans Affairs, in cooperation with the Secretary of Defense, the Secretary of Education, the Secretary of Labor, and such State agencies as the Secretary of Veterans Affairs considers appropriate, shall commence a pilot program to assess the feasibility and advisability of developing policy, processes, and best practices— (1) to ensure the availability of covered programs of education to veterans seeking to pursue such programs with educational assistance under chapter 33 of title 38, United States Code; and (2) to encourage veterans to pursue covered programs of education with educational assistance under such chapter. (b) Covered programs of education For purposes of this section, a covered program of education is— (1) a program of apprenticeship or other on-job training; or (2) a program of vocational training that is developed with the intent and the ability to place veterans in positions of employment with identified companies in specific career fields. (c) Locations The Secretary of Veterans Affairs shall carry out the pilot program in five States selected by the Secretary for purposes of the pilot program. (d) Outreach Under the pilot program, the Secretary of Veterans Affairs shall conduct outreach as follows: (1) To members of the Armed Forces and veterans through the Transition Assistance Program (TAP), veterans service organizations, one-stop centers, workforce investment boards and agencies, the Disabled Veterans' Outreach Program, local employment representatives, education and employment centers of the Department of Veterans Affairs, and such other methods, programs, and venues as the Secretary of Veterans Affairs considers appropriate on— (A) the availability of educational assistance under chapter 33 of title 38, United States Code, for the pursuit of a covered program of education; (B) the benefits of pursuing a covered program of education; and (C) the process for obtaining such assistance. (2) To members of the business community and nonprofit organizations on any tax, financial, or other incentives or benefits as may be available— (A) for providing programs of apprenticeship or other on-job training to individuals eligible for educational assistance under such chapter to pursue such programs; or (B) for cooperating with or supporting a program described in subsection (b)(2). (e) Definitions In this section; (1) One-stop center The term one-stop center means a center described in section 134(c) of the Workforce Investment Act of 1998 ( 29 U.S.C. 2864(c) ). (2) Veterans service organization The term veterans service organization means an organization recognized by the Secretary of Veterans Affairs for the representation of veterans under section 5902 of title 38, United States Code. 8. Expansion of reporting requirements Section 3325 of title 38, United States Code, is amended— (1) in subsection (a)(1), by inserting and chapters 106A and 1606 of title 10 after this chapter ; (2) in subsection (b), in the matter before paragraph (1), by inserting , disaggregated by for-profit and not-for-profit educational institutions after this section ; (3) in subsection (c), in the matter before paragraph (1), by inserting , disaggregated by for-profit and not-for-profit educational institutions after this section ; (4) by redesignating subsection (d) as subsection (e); and (5) by inserting after subsection (c) the following new subsection (d): (d) Contents of reports of both secretaries Each secretary shall include in each report submitted under this section, for the period covered by the report and disaggregated by for-profit and not-for-profit educational institutions, the following: (1) All substantiated reports of misrepresentation, waste, fraud, abuse, or other acts that are inconsistent with the requirements of chapter 36 of this title by an educational institution at which an individual is enrolled in a program of education for which the individual is receiving educational assistance under a law administered by the respective Secretary, including complaints filed with the centralized complaint system established under section 4 of Executive Order 13607 (77 Fed. Reg. 25863). (2) A list of educational institutions which had courses of education that were approved under chapter 36 of this title in the previous year but were found, in the year covered by the report, not in compliance with a requirement of such chapter. .