[House Report 114-336]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 114-336
======================================================================
CAREER-READY STUDENT VETERANS ACT
_______
November 16, 2015.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Miller of Florida, from the Committee on Veterans' Affairs,
submitted the following
R E P O R T
[To accompany H.R. 2360]
[Including cost estimate of the Congressional Budget Office]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 2360) to amend title 38, United States Code, to
improve the approval of certain programs of education for
purposes of educational assistance provided by the Department
of Veterans Affairs, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 3
Background and Need for Legislation.............................. 3
Hearings......................................................... 4
Subcommittee Consideration....................................... 5
Committee Consideration.......................................... 5
Committee Votes.................................................. 5
Committee Oversight Findings..................................... 5
Statement of General Performance Goals and Objectives............ 5
New Budget Authority, Entitlement Authority, and Tax Expenditures 6
Earmarks and Tax and Tariff Benefits............................. 6
Committee Cost Estimate.......................................... 6
Congressional Budget Office Estimate............................. 6
Federal Mandates Statement....................................... 7
Advisory Committee Statement..................................... 7
Constitutional Authority Statement............................... 7
Applicability to Legislative Branch.............................. 7
Statement on Duplication of Federal Programs..................... 7
Disclosure of Directed Rulemaking................................ 8
Section-by-Section Analysis of the Legislation................... 8
Changes in Existing Law Made by the Bill as Reported............. 9
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Career-Ready Student Veterans Act''.
SEC. 2. APPROVAL OF COURSES FOR PURPOSES OF EDUCATIONAL ASSISTANCE
PROGRAMS ADMINISTERED BY SECRETARY OF VETERANS
AFFAIRS.
(a) Approval of Non-Accredited Courses.--Subsection (c) of section
3676 of title 38, United States Code, is amended--
(1) by redesignating paragraph (14) as paragraph (16); and
(2) by inserting after paragraph (13) the following new
paragraphs:
``(14) In the case of a program designed to prepare an
individual for licensure or certification in a State, the
program meets any instructional curriculum licensure or
certification requirements of such State.
``(15) In the case of a program designed to prepare an
individual for employment pursuant to standards developed by a
board or agency of a State in an occupation that requires
approval or licensure, the program is approved or licensed by
such board or agency of the State.''.
(b) Exceptions.--Such section is further amended by adding at the end
the following new subsection:
``(f)(1) The Secretary may waive the requirements of paragraph (14)
or (15) of subsection (c) in the case of a program of education offered
by an educational institution if the Secretary determines all of the
following:
``(A) The educational institution is not accredited by an
agency or association recognized by the Secretary of Education.
``(B) The program did not meet the requirements of such
paragraph at any time during the two-year period preceding the
date of the waiver.
``(C) The waiver furthers the purposes of the educational
assistance programs administered by the Secretary or would
further the education interests of individuals eligible for
assistance under such programs.
``(D) 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.
``(2) Not later than 30 days after the Secretary issues a waiver
under paragraph (1), the Secretary shall submit to Congress notice of
the waiver and the justification of the Secretary for issuing the
waiver.''.
(c) Approval of Accredited Programs.--Section 3675(b)(3) of such
title is amended--
(1) by striking ``and (3)'' and inserting ``(3), (14), and
(15)''; and
(2) by inserting before the period at the end the following:
``(or, with respect to such paragraphs (14) and (15), the
requirements under such paragraphs are waived pursuant to
subsection (f) of section 3676)''.
(d) Disapproval of Courses.--Section 3679 of such title is amended by
adding at the end the following new subsection:
``(d) Notwithstanding any other provision of this chapter, the
Secretary shall disapprove a course of education described in section
3676(c)(14) or (15) unless the educational institution providing the
course of education publicly discloses any conditions or additional
requirements, including training, experience, or exams, required to
obtain the license, certification, or approval for which the course of
education is designed to provide preparation.''.
(e) Conforming Amendment.--Section 3672(b)(2)(A)(i) of such title is
amended by striking ``An accredited'' and inserting ``Except as
provided in paragraphs (14) and (15) of section 3676(c) of this title,
an accredited''.
(f) Applicability.--If after enrollment in a course of education that
is subject to disapproval by reason of an amendment made by this Act,
an individual pursues one or more courses of education at the same
educational institution while remaining continuously enrolled (other
than during regularly scheduled breaks between courses, semesters or
terms) at that institution, any course so pursued by the individual at
that institution while so continuously enrolled shall not be subject to
disapproval by reason of such amendment.
Purpose and Summary
H.R. 2360, ``Career-Ready Student Veterans Act,'' was
introduced by Representative Mark Takano of California on May
15, 2015. H.R. 2360, as amended, was ordered to be favorably
reported to the full House by the Committee on Veterans Affairs
on September 17, 2015, and would require that, in order to be
eligible for G.I. Bill benefits, a program that requires a
licensing or credentialing test at the end of the program must
be accredited by the association that administers the test.
Background and Need for Legislation
Section 1. Short title
This Section provides the short title for this bill to be
the ``Career-Ready Student Veterans Act.''
Section 2. Approval of courses for purposes of Educational Assistance
Programs administered by the Secretary of Veterans Affairs
Chapter 3672 of Title 38, U.S.C., sets requirements for
education and training programs to be eligible for veterans
education benefits provided by the U.S. Department of Veterans
Affairs (VA). State Approving Agencies review programs
accreditation and other factors to ensure that veterans attend
programs of sufficient quality. There are different types of
accreditation and, while national and regional accreditation
bestowed on schools and training programs are sufficient for
most fields of study, some professions require an even higher
level of accreditation to be successful or gain entry into the
career field. Some schools may meet national and regional
accreditation standards, while individual programs of education
may not meet the programmatic standard that many States require
for certain licenses and certifications. The Committee found
that this can lead to student veterans using their Post-9/11
G.I. Bill benefits for a program of education which will not
allow them to receive the necessary credentials or take the
necessary tests to practice in the career field they used their
benefits to study for. At the Subcommittee on Economic
Opportunitys legislative hearing on this bill, held on June 2,
2015, Mr. Brendon Gehrke of the Veterans of Foreign Wars of the
United States testified about the problem, stating:
Some schools offer degrees that do not provide
graduates the needed credentials to qualify for certain
professions. Worse yet, when asked, many of these
schools offer prospective students unclear information
about programmatic accreditation and the requirements
for professional certification. Some schools use terms
like ``fully accredited,'' which in theory may be true,
but in reality do not offer the program accreditation
needed to gain employment. Unfortunately, student
veterans often fall prey to misleading recruiting sales
tactics.
At this same hearing, Mr. Steve Gonzalez with The American
Legion offered an example of how programmatic accreditation is
required for licensed clinical psychologists in the state of
Virginia, which requires the applicant to have graduated from a
university that was accredited by the American Psychological
Association. He went on to argue that having VA education
benefits pay for such a program that does not lead to
programmatic accreditation is problematic:
This does not make effective use of GI Bill benefits
if an individual uses the benefit to prepare for a
licensed or certification occupation, but the program
does not meet licensure requirements. This would
include the requirement that a program be accredited by
a programmatic accrediting agency.
The National Defense Authorization Act for Fiscal Year 2014
(P.L. 113-66; 127 Stat. 672) contained nearly identical
language as Section two regarding the Tuition Assistance
Program provided to servicemembers by the Department of Defense
(DoD). The Committee believes that this section is needed to
align with DoD's requirements and to protect veterans to the
same extent as servicemembers. Therefore, this Section would
amend section 3576(c) of Title 38, U.S.C., to require that
programs of education meet state accreditation, licensure or
certification standards, if they exist, in order to be eligible
to receive Post-9/11 G.I. Bill benefits.
The Committee believes that such a standard is important so
that veterans are not shut out of their chosen profession
because they used their G.I. Bill benefits on a program that
does not meet State requirements. This Section would apply
equally to both accredited and non-accredited courses and
programs. Section two also provides an appropriate waiver to
allow programs that do not meet this requirement to be phased
out of G.I. Bill eligibility to protect current students.
Hearings
On June 2, 2015 the Subcommittee on Economic Opportunity
conducted a legislative hearing on various bills introduced
during the 114th Congress, including H.R. 2360. The following
witnesses testified:
The Honorable Jeff Miller, U.S. House of Representatives,
1st District of Florida; The Honorable Bill Flores, U.S. House
of Representatives, 17th District of Texas; The Honorable Paul
Cook, U.S. House of Representatives, 8th District of
California; The Honorable Sean Patrick Maloney, U.S. House of
Representatives, 18th District of New York; Mr. Paul R. Varela,
Assistant National Legislative Director, Disabled American
Veterans; Mr. Brendon Gehrke, Senior Legislative Associate of
the National Legislative Service, Veterans of Foreign Wars of
the United States; Mr. Steve Gonzalez, Assistant Director of
the Veterans Employment and Education Division, The American
Legion; Mr. David Borer, General Counsel, American Federation
of Government Employees, AFL-CIO; Mr. Christopher Neiweem,
Legislative Associate, Iraq and Afghanistan Veterans of
America; Mr. Rick Weidman, Executive Director of Government
Affairs, Vietnam Veterans of America; Mr. Curtis L. Coy, Deputy
Under Secretary for Economic Opportunity of the Veterans
Benefits Administration, U.S. Department of Veterans Affairs
who was accompanied by Ms. Cathy Mitrano, Deputy Assistant
Secretary for the Office of Resource Management of the Human
Resources and Administration, U.S. Department of Veterans
Affairs; Ms. Teresa W. Gerton, Acting Assistant Secretary of
the Veterans Employment and Training Service, U.S. Department
of Labor; and Dr. Susan S. Kelly, Director of the Transition to
Veterans Program Office at the Office of the Under Secretary of
Defense for Personnel and Readiness, U.S. Department of
Defense.
A statement for the record was submitted by the following:
Paralyzed Veterans of America
Subcommittee Consideration
On June 25, 2015, the Subcommittee on Economic Opportunity
met in open markup session, a quorum being present, and
favorably forwarded H.R. 2360, as amended, to the Full
Committee via voice vote. During consideration of the bills,
the following amendment was considered and agreed to by voice
vote:
An amendment in the nature of a substitute offered by Mr.
Takano of California, which provided the provisions of this
bill apply to both accredited and non-accredited courses,
grandfathered current programs for two years, and provided
authority for VA to waive the requirements of this bill if a
program of education met certain requirements.
Committee Consideration
On September 17, 2015, the full Committee met in open
markup session, a quorum being present, and ordered H.R. 2360,
as amended, reported favorably to the House of Representatives,
by voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report the legislation and amendments thereto.
There were no recorded votes taken on amendments or in
connection with ordering H.R. 2360, as amended, reported to the
House. A motion by Ranking Member Corrine Brown of Florida to
report H.R. 2360, as amended, favorably to the House of
Representatives was agreed to by voice vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committees oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee performance
goals and objectives are to further protect the G.I. Bill and
ensure that veterans are able to receive the proper training
and credentials needed following their education program.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Earmarks and Tax and Tariff Benefits
H.R. 2360, as amended, does not contain any Congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9 of rule XXI of the Rules of the House of
Representatives.
Committee Cost Estimate
The Committee adopts as its own the cost estimate on H.R.
2360, as amended, prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
for H.R. 2360, as amended, provided by the Congressional Budget
Office pursuant to section 402 of the Congressional Budget Act
of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, October 22, 2015.
Hon. Jeff Miller,
Chairman, Committee on Veterans' Affairs, House of Representatives,
Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2360, the Career-
Ready Student Veterans Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is David Newman.
Sincerely,
Keith Hall.
Enclosure.
H.R. 2360--Career-Ready Student Veterans Act
The Department of Veterans Affairs (VA) provides eligible
military personnel, veterans, and certain family members with
educational benefits such as payment for tuition and fees at
institutions of higher learning. VA must approve any courses
for which those benefits may be used. H.R. 2360 would require
certain courses to meet new requirements to be approved. Under
the bill, education programs that prepare students for
employment in fields that require licensure or certification by
a state would have to demonstrate that the courses satisfy
state prerequisites or have otherwise been approved by the
state. The Secretary of Veterans Affairs could waive that
requirement if certain criteria were met.
CBO expects that application of the new criteria would not
affect the use of educational benefits. Many courses that
fulfil the new requirements are already available and program
providers that do not currently meet the criteria would have an
incentive to comply in order to accept payment for training VA-
funded students. Additionally, beneficiaries can choose from a
broad array of approved educational programs to which the new
criteria do not apply. Thus, enacting the bill would not
significantly affect the availability of licensing or
certification programs for the purpose of using educational
benefits, and would not affect use of those benefits.
The new criteria for approving education programs would be
implemented by state approving agencies. Funding for those
agencies is capped in current law at $19 million a year and we
expect that full amount to be spent each year. Therefore, CBO
estimates no additional costs for implementing the new
criteria.
Enacting H.R. 2360 would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply.
CBO estimates that enacting H.R. 2360 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2026.
H.R. 2360 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contact for this estimate is David Newman.
The estimate was approved by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 2360, as amended, prepared by the
Director of the Congressional Budget Office pursuant to section
423 of the Unfunded Mandates Reform Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
2360, as amended.
Statement of Constitutional Authority
Pursuant to Article I, section 8 of the United States
Constitution, the reported bill is authorized by Congress'
power to ``provide for the common Defense and general Welfare
of the United States.''
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Statement on Duplication of Federal Programs
Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015),
the Committee finds that no provision of H.R. 2360, as amended,
establishes or reauthorizes a program of the Federal Government
known to be duplicative of another Federal program, a program
that was included in any report from the Government
Accountability Office to Congress pursuant to section 21 of
Public Law 111-139, or a program related to a program
identified in the most recent Catalog of Federal Domestic
Assistance.
Disclosure of Directed Rulemaking
Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015),
the Committee estimates that H.R. 2360, as amended, contains no
directed rule making that would require the Secretary to
prescribe regulations.
Section-by-Section Analysis of the Legislation
Section 1. Short title
Section 1 provides the short title of H.R. 2360, as
amended, as the ``Career-Ready Student Veterans Act of 2015.''
Section 2. Approval of course for the purposes of Educational
Assistance Programs administered by the Secretary of Veterans
Affairs
Section 2(a) would amend section 3676 of Title 38, U.S.C.,
by adding paragraphs 14 and 15, which would require that a non-
accredited program designed to prepare an individual for
licensure or certification in a state must meet any
instructional curriculum licensure or certification
requirements of such state.
Section 2(b) would further amend section 3676 of Title 38,
U.S.C., to allow the VA Secretary to waive these requirements
should the Secretary determine all of the following: (1) the
educational institution is accredited by an agency or
association recognized by the Secretary of Education; (2) the
program did not meet the requirements of such paragraph at any
time during the two-year period preceding the date of the
waiver; (3) the waiver furthers the purposes of the educational
assistance programs administered by the Secretary or would
further the education interests of individuals eligible for
assistance under such programs; and (4) 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. This Section
would further require that not later than 30 days after the
Secretary issues a waiver, VA shall submit to Congress notice
of such waiver and the justification of its issuance.
Section 2(c) would amend section 3675(b)(3) of Title 38
U.S.C., to require that an accredited education program meet a
state's licensure of certification requirements as a condition
of approval under this Section.
Section 2(d) would require the Secretary to disapprove a
course of education described in Sections 2(a) and 2(c) unless
the educational institution publicly discloses any conditions
or additional requirements, including additional training,
experience, or exams, that will be required to obtain the
license, certification or approval for which the course of
education was taken.
Section 2(e) includes conforming amendments.
Section 2(f) would allow that, for an individual who
remains continuously enrolled in a course of education at the
same educational institution, any course that individual
pursues shall not be subject to disapproval by reason of the
changes made by this Section.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART III--READJUSTMENT AND RELATED BENEFITS
* * * * * * *
CHAPTER 36--ADMINISTRATION OF EDUCATIONAL BENEFITS
* * * * * * *
SUBCHAPTER I--STATE APPROVING AGENCIES
* * * * * * *
Sec. 3672. Approval of courses
(a) An eligible person or veteran shall receive the benefits
of this chapter and chapters 34 and 35 of this title while
enrolled in a course of education offered by an educational
institution only if (1) such course is approved as provided in
this chapter and chapters 34 and 35 of this title by the State
approving agency for the State where such educational
institution is located, or by the Secretary, or (2) such course
is approved (A) for the enrollment of the particular individual
under the provisions of section 3536 of this title or (B) for
special restorative training under subchapter V of chapter 35
of this title. Approval of courses by State approving agencies
shall be in accordance with the provisions of this chapter and
chapters 34 and 35 of this title and such other regulations and
policies as the State approving agency may adopt. Each State
approving agency shall furnish the Secretary with a current
list of educational institutions specifying courses which it
has approved, and, in addition to such list, it shall furnish
such other information to the Secretary as it and the Secretary
may determine to be necessary to carry out the purposes of this
chapter and chapters 34 and 35 of this title. Each State
approving agency shall notify the Secretary of the disapproval
of any course previously approved and shall set forth the
reasons for such disapproval.
(b)(1) The Secretary shall be responsible for the approval of
courses of education offered by any agency of the Federal
Government authorized under other laws to supervise such
education. The Secretary may approve any course in any other
educational institution in accordance with the provisions of
this chapter and chapters 34 and 35 of this title.
(2)(A) Subject to sections 3675(b)(1) and (b)(2), 3680A,
3684, and 3696 of this title, the following programs are deemed
to be approved for purposes of this chapter:
(i) [An accredited] Except as provided in paragraphs
(14) and (15) of section 3676(c) of this title, an
accredited standard college degree program offered at a
public or not-for-profit proprietary educational
institution that is accredited by an agency or
association recognized for that purpose by the
Secretary of Education.
(ii) A flight training course approved by the Federal
Aviation Administration that is offered by a certified
pilot school that possesses a valid Federal Aviation
Administration pilot school certificate.
(iii) An apprenticeship program registered with the
Office of Apprenticeship (OA) of the Employment
Training Administration of the Department of Labor or a
State apprenticeship agency recognized by the Office of
Apprenticeship pursuant to the Act of August 16, 1937
(popularly known as the ``National Apprenticeship
Act''; 29 U.S.C. 50 et seq.).
(iv) A program leading to a secondary school diploma
offered by a secondary school approved in the State in
which it is operating.
(B) A licensure test offered by a Federal, State, or local
government is deemed to be approved for purposes of this
chapter.
(c)(1) In the case of programs of apprenticeship where--
(A) the apprenticeship standards have been approved
by the Secretary of Labor pursuant to section 2 of the
Act of August 16, 1937 (popularly known as the
``National Apprenticeship Act'') (29 U.S.C. 50a), as a
national apprenticeship program for operation in more
than one State, and
(B) the training establishment is a carrier directly
engaged in interstate commerce which provides such
training in more than one State,
the Secretary shall act as a ``State approving agency'' as such
term is used in section 3687(a)(1) of this title and shall be
responsible for the approval of all such programs.
(2) The period of a program of apprenticeship may be
determined based upon a specific period of time (commonly
referred to as a ``time-based program''), based upon the
demonstration of successful mastery of skills (commonly
referred to as a ``competency-based program''), or based upon a
combination thereof.
(3)(A) In the case of a competency-based program of
apprenticeship, State approving agencies shall determine the
period for which payment may be made for such a program under
chapters 30 and 35 of this title and chapter 1606 of title 10.
In determining the period of such a program, State approving
agencies shall take into consideration the approximate term of
the program recommended in registered apprenticeship program
standards recognized by the Secretary of Labor.
(B) The sponsor of a competency-based program of
apprenticeship shall provide notice to the State approving
agency involved of any such standards that may apply to the
program and the proposed approximate period of training under
the program.
(4) The sponsor of a competency-based program of
apprenticeship shall notify the Secretary upon the successful
completion of a program of apprenticeship by an individual
under chapter 30 or 35 of this title, or chapter 1606 of title
10, as the case may be.
(d)(1) Pursuant to regulations prescribed by the Secretary in
consultation with the Secretary of Labor, the Secretary and
State approving agencies shall actively promote the development
of apprenticeship and on the job training programs for the
purposes of sections 3677 and 3687 of this title and shall
utilize the services of disabled veterans' outreach program
specialists under section 4103A of this title to promote the
development of such programs. The Secretary of Labor shall
provide assistance and services to the Secretary, and to State
approving agencies, to increase the use of apprenticeships.
(2) In conjunction with outreach services provided by the
Secretary under chapter 77 of this title for education and
training benefits, each State approving agency shall conduct
outreach programs and provide outreach services to eligible
persons and veterans about education and training benefits
available under applicable Federal and State law.
(e) A program of education exclusively by correspondence, and
the correspondence portion of a combination correspondence-
residence course leading to a vocational objective, that is
offered by an educational institution (as defined in section
3452(c) of this title) may be approved only if (1) the
educational institution is accredited by an entity recognized
by the Secretary of Education, and (2) at least 50 percent of
those pursuing such a program or course require six months or
more to complete the program or course.
* * * * * * *
Sec. 3675. Approval of accredited courses
(a)(1) The Secretary or a State approving agency may approve
accredited programs (including non-degree accredited programs)
offered by proprietary for-profit educational institutions
when--
(A) such courses have been accredited and approved by
a nationally recognized accrediting agency or
association;
(B) such courses are conducted under the Act of
February 23, 1917 (20 U.S.C. 11 et seq.);
(C) such courses are accepted by the State department
of education for credit for a teacher's certificate or
a teacher's degree; or
(D) such courses are 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) For the purposes of this chapter, the Secretary of
Education shall publish a list of nationally recognized
accrediting agencies and associations which that Secretary
determines to be reliable authority as to the quality of
training offered by an educational institution.
(B) Except as provided in section 3672(e) of this title, a
State approving agency may utilize the accreditation of any
accrediting association or agency listed pursuant to
subparagraph (A) of this paragraph for approval of courses
specifically accredited and approved by such accrediting
association or agency.
(3)(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.
(b) As a condition of approval under this section, the
Secretary or the State approving agency must find the
following:
(1) The educational institution keeps adequate
records, as prescribed by the Secretary or the State
approving agency, to show the progress and grades of
the eligible person or veteran and to show that
satisfactory standards relating to progress and conduct
are enforced.
(2) The educational institution maintains a written
record of the previous education and training of the
eligible person or veteran that clearly indicates that
appropriate credit has been given by the educational
institution for previous education and training, with
the training period shortened proportionately.
(3) The educational institution and its approved
courses meet the criteria of paragraphs (1), (2), [and
(3)] (3), (14), and (15) of section 3676(c) of this
title (or, with respect to such paragraphs (14) and
(15), the requirements under such paragraphs are waived
pursuant to subsection (f) of section 3676).
(c)(1) A State approving agency may approve the
entrepreneurship courses offered by a qualified provider of
entrepreneurship courses.
(2) For purposes of this subsection, the term
``entrepreneurship course'' means a non-degree, non-credit
course of business education that enables or assists a person
to start or enhance a small business concern (as defined
pursuant to section 3(a) of the Small Business Act (15 U.S.C.
632(a))).
(3) Subsection (a) and paragraphs (1) and (2) of subsection
(b) shall not apply to--
(A) an entrepreneurship course offered by a qualified
provider of entrepreneurship courses; and
(B) a qualified provider of entrepreneurship courses
by reason of such provider offering one or more
entrepreneurship courses.
(4) Notwithstanding paragraph (3), a qualified provider of
entrepreneurship courses shall maintain such records as the
Secretary determines to be necessary to comply with reporting
requirements that apply under section 3684(a)(1) of this title
with respect to eligible persons and veterans enrolled in an
entrepreneurship course offered by the provider.
Sec. 3676. Approval of nonaccredited courses
(a) No course of education which has not been approved by a
State approving agency pursuant to section 3675 of this title,
which is offered by a public or private, profit or nonprofit,
educational institution shall be approved for the purposes of
this chapter unless 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.
(b) Such application shall be accompanied by not less than
two copies of the current catalog or bulletin which is
certified as true and correct in content and policy by an
authorized owner or official and includes the following:
(1) Identifying data, such as volume number and date
of publication;
(2) Names of the institution and its governing body,
officials and faculty;
(3) A calendar of the institution showing legal
holidays, beginning and ending date of each quarter,
term, or semester, and other important dates;
(4) Institution policy and regulations on enrollment
with respect to enrollment dates and specific entrance
requirements for each course;
(5) Institution policy and regulations relative to
leave, absences, class cuts, makeup work, tardiness and
interruptions for unsatisfactory attendance;
(6) Institution policy and regulations relative to
standards of progress required of the student by the
institution (this policy will define the grading system
of the institution, the minimum grades considered
satisfactory, conditions for interruption for
unsatisfactory grades or progress and a description of
the probationary period, if any, allowed by the
institution, and conditions of reentrance for those
students dismissed for unsatisfactory progress. A
statement will be made regarding progress records kept
by the institution and furnished the student);
(7) Institution policy and regulations relating to
student conduct and conditions for dismissal for
unsatisfactory conduct;
(8) Detailed schedules of fees, charges for tuition,
books, supplies, tools, student activities, laboratory
fees, service charges, rentals, deposits, and all other
charges;
(9) Policy and regulations of the institution
relative to the refund of the unused portion of
tuition, fees, and other charges in the event the
student does not enter the course or withdraws or is
discontinued therefrom;
(10) A description of the available space,
facilities, and equipment;
(11) A course outline for each course for which
approval is requested, showing subjects or units in the
course, type of work or skill to be learned, and
approximate time and clock hours to be spent on each
subject or unit; and
(12) Policy and regulations of the institution
relative to granting credit for previous educational
training.
(c) The appropriate State approving agency may approve the
application of such institution when the institution and its
non-accredited courses are found upon investigation to have met
the following criteria:
(1) The courses, curriculum, and instruction are
consistent in quality, content, and length with similar
courses in public schools and other private schools in
the State, with recognized accepted standards.
(2) There is in the institution adequate space,
equipment, instructional material, and instructor
personnel to provide training of good quality.
(3) Educational and experience qualifications of
directors, administrators, and instructors are
adequate.
(4) The institution maintains a written record of the
previous education and training of the eligible person
and clearly indicates that appropriate credit has been
given by the institution for previous education and
training, with the training period shortened
proportionately and the eligible person so notified.
(5) A copy of the course outline, schedule of
tuition, fees, and other charges, regulations
pertaining to absence, grading policy, and rules of
operation and conduct will be furnished the eligible
person upon enrollment.
(6) Upon completion of training, the eligible person
is given a certificate by the institution indicating
the approved course and indicating that training was
satisfactorily completed.
(7) Adequate records as prescribed by the State
approving agency are kept to show attendance and
progress or grades, and satisfactory standards relating
to attendance, progress, and conduct are enforced.
(8) The institution complies with all local, city,
county, municipal, State, and Federal regulations, such
as fire codes, building and sanitation codes. The State
approving agency may require such evidence of
compliance as is deemed necessary.
(9) The institution is financially sound and capable
of fulfilling its commitments for training.
(10) The institution does not utilize advertising of
any type which is erroneous or misleading, either by
actual statement, omission, or intimation. The
institution shall not be deemed to have met this
requirement until the State approving agency (A) has
ascertained from the Federal Trade Commission whether
the Commission has issued an order to the institution
to cease and desist from any act or practice, and (B)
has, if such an order has been issued, given due weight
to that fact.
(11) The institution does not exceed its enrollment
limitations as established by the State approving
agency.
(12) The institution's administrators, directors,
owners, and instructors are of good reputation and
character.
(13) The institution has and maintains a policy for
the refund of the unused portion of tuition, fees, and
other charges in the event the eligible person fails to
enter the course or withdraws or is discontinued
therefrom at any time before completion and--
(A) in the case of an institution (other than
(i) a Federal, State, or local Government
institution or (ii) an institution described in
subparagraph (B)), such policy provides that
the amount charged to the eligible person for
tuition, fees, and other charges for a portion
of the course shall not exceed the approximate
pro rata portion of the total charges for
tuition, fees, and other charges that the
length of the completed portion of the course
bears to its total length; or
(B) in the case of an institution that is a
nonaccredited public educational institution,
the institution has and maintains a refund
policy regarding the unused portion of tuition,
fees, and other charges that is substantially
the same as the refund policy followed by
accredited public educational institutions
located within the same State as such
institution.
(14) In the case of a program designed to prepare an
individual for licensure or certification in a State,
the program meets any instructional curriculum
licensure or certification requirements of such State.
(15) In the case of a program designed to prepare an
individual for employment pursuant to standards
developed by a board or agency of a State in an
occupation that requires approval or licensure, the
program is approved or licensed by such board or agency
of the State.
[(14)] (16) Such additional criteria as may be deemed
necessary by the State approving agency.
(d) The Secretary may waive, in whole or in part, the
requirements of subsection (c)(13) of this section in the case
of an educational institution which--
(1) is a college, university, or similar institution
offering postsecondary level academic instruction that
leads to an associate or higher degree,
(2) is operated by an agency of a State or of a unit
of local government,
(3) is located within such State or, in the case of
an institution operated by an agency of a unit of local
government, within the boundaries of the area over
which such unit has taxing jurisdiction, and
(4) is a candidate for accreditation by a regional
accrediting association,
if the Secretary determines, pursuant to regulations which the
Secretary shall prescribe, that such requirements would work an
undue administrative hardship because the total amount of
tuition, fees, and other charges at such institution is
nominal.
(e) Notwithstanding any other provision of this title, a
course of education shall not be approved under this section if
it is to be pursued in whole or in part by independent study.
(f)(1) The Secretary may waive the requirements of paragraph
(14) or (15) of subsection (c) in the case of a program of
education offered by an educational institution if the
Secretary determines all of the following:
(A) The educational institution is not accredited by
an agency or association recognized by the Secretary of
Education.
(B) The program did not meet the requirements of such
paragraph at any time during the two-year period
preceding the date of the waiver.
(C) The waiver furthers the purposes of the
educational assistance programs administered by the
Secretary or would further the education interests of
individuals eligible for assistance under such
programs.
(D) 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.
(2) Not later than 30 days after the Secretary issues a
waiver under paragraph (1), the Secretary shall submit to
Congress notice of the waiver and the justification of the
Secretary for issuing the waiver.
* * * * * * *
Sec. 3679. Disapproval of courses
(a) Any course approved for the purposes of this chapter
which fails to meet any of the requirements of this chapter
shall be immediately disapproved by the Secretary or the
appropriate State approving agency. An educational institution
which has its courses disapproved by the Secretary or a State
approving agency will be notified of such disapproval by a
certified or registered letter of notification and a return
receipt secured.
(b) Each State approving agency shall notify the Secretary of
each course which it has disapproved under this section. The
Secretary shall notify the State approving agency of the
Secretary's disapproval of any educational institution under
chapter 31 of this title.
(c)(1) Notwithstanding any other provision of this chapter
and subject to paragraphs (3) through (6), the Secretary shall
disapprove a course of education provided by a public
institution of higher learning if the institution charges
tuition and fees for that course for covered individuals who
are pursuing the course with educational assistance under
chapter 30 or 33 of this title while living in the State in
which the institution is located at a rate that is higher than
the rate the institution charges for tuition and fees for that
course for residents of the State in which the institution is
located, regardless of the covered individual's State of
residence.
(2) For purposes of this subsection, a covered individual is
any individual as follows:
(A) A veteran who was discharged or released from a
period of not fewer than 90 days of service in the
active military, naval, or air service less than three
years before the date of enrollment in the course
concerned.
(B) An individual who is entitled to assistance under
section 3311(b)(9) or 3319 of this title by virtue of
such individual's relationship to a veteran described
in subparagraph (A).
(3) If after enrollment in a course of education that is
subject to disapproval under paragraph (1) by reason of
paragraph (2)(A) or (2)(B) a covered individual pursues one or
more courses of education at the same public institution of
higher learning while remaining continuously enrolled (other
than during regularly scheduled breaks between courses,
semesters or terms) at that institution of higher learning, any
course so pursued by the covered individual at that institution
of higher learning while so continuously enrolled shall also be
subject to disapproval under paragraph (1).
(4) It shall not be grounds to disapprove a course of
education under paragraph (1) if a public institution of higher
learning requires a covered individual pursuing a course of
education at the institution to demonstrate an intent, by means
other than satisfying a physical presence requirement, to
establish residency in the State in which the institution is
located, or to satisfy other requirements not relating to the
establishment of residency, in order to be charged tuition and
fees for that course at a rate that is equal to or less than
the rate the institution charges for tuition and fees for that
course for residents of the State.
(5) The Secretary may waive such requirements of paragraph
(1) as the Secretary considers appropriate.
(6) Disapproval under paragraph (1) shall apply only with
respect to educational assistance under chapters 30 and 33 of
this title.
(d) Notwithstanding any other provision of this chapter, the
Secretary shall disapprove a course of education described in
section 3676(c)(14) or (15) unless the educational institution
providing the course of education publicly discloses any
conditions or additional requirements, including training,
experience, or exams, required to obtain the license,
certification, or approval for which the course of education is
designed to provide preparation.
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