S.Amdt. 2957

1. Adds SEC. 561. ADDITIONAL REQUIREMENTS FOR APPROVAL OF EDUCATIONAL PROGRAMS FOR PURPOSES OF EDUCATIONAL ASSISTANCE UNDER LAWS ADMINISTERED BY SECRETARY OF DEFENSE AND SECRETARY OF VETERANS AFFAIRS at the end of subtitle F of title V

   Adds a section

   In S. 3254 · Placed on Calendar Senate

   (7) A description of the plans of the Armed Forces to retain or disestablish Reserve Officers' Training Corps program units that do not meet productivity standards.

   Inserted: SEC. 561. ADDITIONAL REQUIREMENTS FOR APPROVAL OF EDUCATIONAL PROGRAMS FOR PURPOSES OF EDUCATIONAL ASSISTANCE UNDER LAWS ADMINISTERED BY SECRETARY OF DEFENSE AND SECRETARY OF VETERANS AFFAIRS.

   Inserted: (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:

   Inserted: "(i) A course that is described by section 3675(a) of this title.".

   Inserted: (b) Approval by Secretary of Veterans Affairs of Non-Degree Programs Approved by Secretary of Education.--

   Inserted: (1) In general.--Section 3675 of such title is amended--

   Inserted: (A) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively;

   Inserted: (B) by striking subsection (a); and

   Inserted: (C) by inserting before subsection (c), as redesignated by subparagraph (A), the following new subsections:

   Inserted: "(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).

   Inserted: "(b)(1) The Secretary or a State approving agency may approve a course that does not lead to an associate or higher degree when--

   Inserted: "(A) such course--

   Inserted: "(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);

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   Inserted: "(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

   Inserted: "(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;

   Inserted: "(B) such course is accepted by the State department of education for credit for a teacher's certificate; or

   Inserted: "(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)).

   Inserted: "(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.

   Inserted: "(B) Each catalog or bulletin transmitted by an institution under subparagraph (A) of this paragraph shall--

   Inserted: "(i) state with specificity the requirements of the institution with respect to graduation;

   Inserted: "(ii) include the information required under paragraphs (6) and (7) of section 3676(b) of this title; and

   Inserted: "(iii) include any attendance standards of the institution, if the institution has and enforces such standards.".

   Inserted: (2) Conforming amendments.--Such title is amended--

   Inserted: (A) in section 3452(g), by striking "under the provisions of section 3675 of this title";

   Inserted: (B) in section 3501(11), by striking "under the provisions of section 3675 of this title";

   Inserted: (C) in section 3672(b)(2)(A), by striking "3675(b)(1) and (b)(2)" and inserting "3675(c)(1) and (c)(2)"; and

   Inserted: (D) in the heading for section 3675, by striking "accredited courses" and inserting "courses approved by Secretary of Education".

   Inserted: (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:

   Inserted: "3675. Approval of courses approved by Secretary of Education.".

   Inserted: (c) Approval by Secretary of Veterans Affairs of Non-Degree Programs Not Approved by Secretary of Education.--

   Inserted: (1) In general.--Subsection (a) of section 3676 of such title is amended to read as follows:

   Inserted: "(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--

   Inserted: "(1) the course--

   Inserted: "(A) does not lead to an associate or higher degree;

   Inserted: "(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

   Inserted: "(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

   Inserted: "(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.".

   Inserted: (2) Additional requirements.--Subsection (c) of section 3676 of such title is amended--

   Inserted: (A) by redesignating paragraph (14) as paragraph (21); and

   Inserted: (B) by inserting after paragraph (13) the following new paragraphs:

   Inserted: "(14) Such courses providing less than 600 clock hours of instruction, or its equivalent, have verified completion and placement rates of at least 70 percent.

   Inserted: "(15) Courses that prepare individuals for licensure or certification have verified that the course's instructional curriculum appropriately includes the licensure or certification requirements in the State in which the institution deems such curriculum does.

   Inserted: "(16) Courses for which a State board or agency in the State in which the course is designed to prepare a student requires approval or licensure for employment in the recognized occupation in the State is approved or licensed by such State board or agency.

   Inserted: "(17) In the case of an educational institution that advertises job placement rates as a means of attracting students to enroll in a course of education offered by the educational institution, the application contains any other information necessary to substantiate the truthfulness of such advertisements.

   Inserted: "(18) The educational institution does not provide any commission, bonus, or other incentive payment based directly or indirectly on success in securing enrollments or financial aid to any persons or entities engaged in any student recruiting or admission activities or in making decisions regarding the award of student financial assistance, except for the recruitment of foreign students residing in foreign countries who are not eligible to receive Federal student assistance.

   Inserted: "(19) The educational institution does not make any misrepresentations (as defined in section 668.71 of title 34, Code of Federal Regulations (or any corresponding similar regulation or ruling)) regarding the nature of its educational program, the nature of its financial charges, or the employability of its graduates (as defined in sections 668.72 through 668.74 of such title, respectively (or any corresponding similar regulations or rulings)).

   Inserted: "(20) The educational institution has provided information necessary to substantiate that it complies with the requirements set forth under section 600.9 of title 34 Code of Federal Regulations (or any corresponding similar regulation or ruling).".

   Inserted: (3) Requirement that additional requirements imposed by state approving agencies be approved by secretary of veterans affairs.--Paragraph (21) of such subsection, as redesignated by paragraph (2)(A), is amended by inserting "and approved by the Secretary" before the period at the end.

   Inserted: (4) Conforming amendments.--Section 3676 of such title is amended--

   Inserted: (A) in the heading for such section, by striking "nonaccredited courses" and inserting "courses not approved by Secretary of Education"; and

   Inserted: (B) in subsection (c), in the matter before paragraph (1), by striking "non-accredited".

   Inserted: (5) Clerical amendment.--The table of sections at the beginning of chapter 36 of such title is amended by striking the item relating to section 3675 and inserting the following new item:

   Inserted: "3676. Approval of courses not approved by Secretary of Education.".

   Inserted: (d) Assistance Under Certain Department of Defense Educational Assistance Programs Available for Use Only at FDSL Participating Institutions.--

   Inserted: (1) In general.--Chapter 101 of title 10, United States Code, is amended by inserting after section 2006 the following new section:

   Inserted: "Sec. 2006a. Assistance for education and training:

   Inserted: availability of certain assistance for use only at Federal Direct Student Loan participating institutions

   Inserted: "(a) In General.--Effective as of August, 1, 2013, an individual eligible for assistance under a Department of Defense educational assistance program or authority covered by this section may, except as provided in subsection (b), 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--

   Inserted: "(1) is offered by an institution of higher education that has entered into, and is complying with, a program participation agreement under section 487 of such Act (20 U.S.C. 1094);

   Inserted: "(2) 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

   Inserted: "(3) 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.

   Inserted: "(b) Waiver.--The Secretary of Defense may, by regulation, authorize the use of educational assistance under a Department of Defense educational assistance program or authority covered by this chapter for educational expenses incurred for a program of education that is not described in subsection (a) if the program--

   Inserted: "(1) is accredited and approved by a nationally recognized accrediting agency or association;

   Inserted: "(2) was not an eligible program described in subsection (a) at any time during the most recent two-year period;

   Inserted: "(3) is a program that the Secretary determines would further the purposes of the educational assistance programs or authorities covered by this chapter, or would further the education interests of students eligible for assistance under the such programs or authorities;

   Inserted: "(4) in the case of a program consisting of less than 600 clock hours of instruction, or its equivalent, has verified completion and placement rates of at least 70 percent;

   Inserted: "(5) in the case of a program that prepares individuals for licensure or certification, has instructional curriculum that appropriately includes the licensure or certification requirements in the State in which the institution deems such curriculum does;

   Inserted: "(6) in the case of a program designed to prepare a student for employment in a recognized occupation requiring approval or licensure for employment by a State board or agency, the program is approved or licensed by such State board or agency; and

   Inserted: "(7) the institution providing the program does not provide any commission, bonus, or other incentive payment based directly or indirectly on success in securing enrollments or financial aid to any persons or entities engaged in any student recruiting or admission activities or in making decisions regarding the award of student financial assistance, except for the recruitment of foreign students residing in foreign countries who are not eligible to receive Federal student assistance.

   Inserted: "(c) Definitions.--In this section:

   Inserted: "(1) The term 'Department of Defense educational assistance programs and authorities covered by this section' means the programs and authorities as follows:

   Inserted: "(A) The programs to assist military spouses in achieving education and training to expand employment and portable career opportunities under section 1784a of this title.

   Inserted: "(B) The authority to pay tuition for off-duty training or education of members of the armed forces under section 2007 of this title.

   Inserted: "(C) The program of educational assistance for members of the Selected Reserve under chapter 1606 of this title.

   Inserted: "(D) The program of educational assistance for reserve component members supporting contingency operations and certain other operations under chapter 1607 of this title.

   Inserted: "(E) Any other program or authority of the Department of Defense for assistance in education or training carried out under the laws administered by the Secretary of Defense that is designated by the Secretary, by regulation, for purposes of this section.

   Inserted: "(2) The term 'institution of higher education' has the meaning given that term in section 102 of the Higher Education Act for 1965 (20 U.S.C. 1002).".

   Inserted: (2) Clerical amendment.--The table of sections at the beginning of chapter 101 of such title is amended by inserting after the item relating to section 2006 the following new item:

   Inserted: "2006a. Assistance for education and training: availability of certain assistance for use only at Federal Direct Student Loan participating institutions.".

   Inserted: (e) Effective Date.--The amendments made by this section shall take effect on August 1, 2013.

   Inserted: SEC. 562. MANDATORY COMPLIANCE REVIEWS.

   Inserted: (a) In General.--Section 3693 of title 38, United States Code, is amended by adding at the end the following new subsection:

   Inserted: "(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:

   Inserted: "(1) The number of student enrollments at, or the rate of student enrollments of, the educational institution has increased rapidly.

   Inserted: "(2) The student dropout rate of the institution has increased rapidly.

   Inserted: "(3) The cohort default rate, as defined in section 435(m) of the Higher Education Act of 1965 (20 U.S.C. 1085(m)), of the educational institution has increased rapidly or is consistently higher than the average of cohort default rate of comparable educational institutions.

   Inserted: "(4) The number of substantiated complaints filed under section 3697C(a)(1) of this title with respect to the educational institution have increased rapidly or is consistently higher than the number of substantiated complaints filed with respect to other comparable educational institutions.

   Inserted: "(5) The educational institution is the subject of a civil lawsuit in Federal or State court, is charged with a crime under Federal or State law, or is the subject of an official investigation of a State or Federal agency for misconduct.

   Inserted: "(6) The educational institution has significant growth in revenue resulting from tuition, including tuition paid with assistance provided under this chapter, chapters 30 through 35 of this title, or the educational assistance programs or authorities specified in section 2006a(c)(1) 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, programs, or authorities.

   Inserted: "(7) Such other findings as the Secretary considers warrant conducting a compliance survey under subsection (a).".

   Inserted: (b) Effective Date.--Subsection (c) of such section, as added by subsection (a), shall take effect on August 1, 2013.

   Original wording

   At the end of subtitle F of title V, add the following:

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As printed