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38 U.S.C. § 3696 — Prohibition on certain advertising, sales,

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38 U.S.C. § 3696 — Prohibition on certain advertising, sales,

Page 862 TITLE 38—VETERANS’ BENEFITS § 3696 1980—Pub. L. 96–466 designated existing provisions as subsec. (a), substituted in par. (4) ‘‘chapters 32, 34, 35, and 36 of this title and the former chapter 33;’’ for ‘‘chapters 31, 34, 35, and 36 of this title, and the former chapter 33’’, in provisions following par. (4) struck out ‘‘, but this section shall not be deemed to limit the pe- riod for which assistance may be received under chap- ter 31 alone’’ after ‘‘(or the part-time equivalent there- of)’’, and added subsec. (b). 1972—Pub. L. 92–540, § 403(13), inserted reference to chapter 36 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2012 AMENDMENT Pub. L. 112–154, title IV, § 401(b), Aug. 6, 2012, 126 Stat. 1188, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall take effect on October 1, 2013, and shall not operate to revive any en- titlement to assistance under chapter 35 of title 38, United States Code, or the provisions of law referred to in section 3695(a) of such title, as in effect on the day before such date, that was terminated by reason of the operation of section 3695(a) of such title, as so in effect, before such date.’’ EFFECTIVE DATE OF 2008 AMENDMENT Amendment by Pub. L. 110–252 effective Aug. 1, 2009, see section 5003(d) of Pub. L. 110–252, set out as a note under section 16163 of Title 10, Armed Forces. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–466 effective Oct. 1, 1980, see section 802(a)(6) of Pub. L. 96–466, set out as a note under section 3681 of this title. EFFECTIVE DATE Section effective first day of second calendar month which begins after Oct. 23, 1968, see section 6(a) of Pub. L. 90–631, set out as a note under section 3500 of this title

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Page 862 TITLE 38—VETERANS’ BENEFITS § 3696 1980—Pub. L. 96–466 designated existing provisions as subsec. (a), substituted in par. (4) ‘‘chapters 32, 34, 35, and 36 of this title and the former chapter 33;’’ for ‘‘chapters 31, 34, 35, and 36 of this title, and the former chapter 33’’, in provisions following par. (4) struck out ‘‘, but this section shall not be deemed to limit the pe- riod for which assistance may be received under chap- ter 31 alone’’ after ‘‘(or the part-time equivalent there- of)’’, and added subsec. (b). 1972—Pub. L. 92–540, § 403(13), inserted reference to chapter 36 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2012 AMENDMENT Pub. L. 112–154, title IV, § 401(b), Aug. 6, 2012, 126 Stat. 1188, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall take effect on October 1, 2013, and shall not operate to revive any en- titlement to assistance under chapter 35 of title 38, United States Code, or the provisions of law referred to in section 3695(a) of such title, as in effect on the day before such date, that was terminated by reason of the operation of section 3695(a) of such title, as so in effect, before such date.’’ EFFECTIVE DATE OF 2008 AMENDMENT Amendment by Pub. L. 110–252 effective Aug. 1, 2009, see section 5003(d) of Pub. L. 110–252, set out as a note under section 16163 of Title 10, Armed Forces. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–466 effective Oct. 1, 1980, see section 802(a)(6) of Pub. L. 96–466, set out as a note under section 3681 of this title. EFFECTIVE DATE Section effective first day of second calendar month which begins after Oct. 23, 1968, see section 6(a) of Pub. L. 90–631, set out as a note under section 3500 of this title. REVIVAL OF ENTITLEMENT REDUCED BY PRIOR UTILIZATION OF CHAPTER 35 ASSISTANCE Pub. L. 112–154, title IV, § 401(c), Aug. 6, 2012, 126 Stat. 1188, provided that: ‘‘(1) IN GENERAL.—Subject to paragraph (2), in the case of an individual whose period of entitlement to as- sistance under a provision of law referred to in section 3695(a) of title 38, United States Code (other than chap- ter 35 of such title), as in effect on September 30, 2013, was reduced under such section 3695(a), as so in effect, by reason of the utilization of entitlement to assist- ance under chapter 35 of such title before October 1, 2013, the period of entitlement to assistance of such in- dividual under such provision shall be determined with- out regard to any entitlement so utilized by the indi- vidual under chapter 35 of such title. ‘‘(2) LIMITATION.—The maximum period of entitle- ment to assistance of an individual under paragraph (1) may not exceed 81 months.’’ § 3696. Prohibition on certain advertising, sales, and enrollment practices (a) PROHIBITION ON ENGAGING IN SUBSTANTIAL MISREPRESENTATION.—An educational institu- tion with a course or program of education ap- proved under this chapter, and an entity that owns such an educational institution, shall not engage in substantial misrepresentation de- scribed in subsection (b). (b) SUBSTANTIAL MISREPRESENTATION DE- SCRIBED.—(1) Substantial misrepresentation de- scribed in this paragraph is substantial mis- representation by an educational institution, a representative of the institution, or any person with whom the institution has an agreement to provide educational programs, marketing, ad- vertising, recruiting or admissions services, con- cerning any of the following: (A) The nature of the educational program of the institution, including misrepresentation regarding— (i) the particular type, specific source, or nature and extent, of the accreditation of the institution or a course of education at the institution; (ii) whether a student may transfer course credits to another institution; (iii) conditions under which the institution will accept transfer credits earned at an- other institution; (iv) whether successful completion of a course of instruction qualifies a student— (I) for acceptance to a labor union or similar organization; or (II) to receive, to apply to take, or to take an examination required to receive a local, State, or Federal license, or a non- governmental certification required as a precondition for employment, or to per- form certain functions in the States in which the educational program is offered, or to meet additional conditions that the institution knows or reasonably should know are generally needed to secure em- ployment in a recognized occupation for which the program is represented to pre- pare students; (v) the requirements for successfully com- pleting the course of study or program and the circumstances that would constitute grounds for terminating the student’s enroll- ment; (vi) whether the courses of education at the institution are recommended or have been the subject of unsolicited testimonials or endorsements by— (I) vocational counselors, high schools, colleges, educational organizations, em- ployment agencies, members of a par- ticular industry, students, former stu- dents, or others; or (II) officials of a local or State govern- ment or the Federal Government; (vii) the size, location, facilities, or equip- ment of the institution; (viii) the availability, frequency, and ap- propriateness of the courses of education and programs to the employment objectives that the institution states the courses and programs are designed to meet; (ix) the nature, age, and availability of the training devices or equipment of the institu- tion and the appropriateness to the employ- ment objectives that the institution states the courses and programs are designed to meet; (x) the number, availability, and qualifica- tions, including the training and experience, of the faculty and other personnel of the in- stitution; (xi) the availability of part-time employ- ment or other forms of financial assistance; (xii) the nature and availability of any tu- torial or specialized instruction, guidance Page 863 TITLE 38—VETERANS’ BENEFITS § 3696 and counseling, or other supplementary as- sistance the institution will provide stu- dents before, during, or after the completion of a course of education; (xiii) the nature or extent of any pre- requisites established for enrollment in any course of education; (xiv) the subject matter, content of the course of education, or any other fact re- lated to the degree, diploma, certificate of completion, or any similar document that the student is to be, or is, awarded upon completion of the course of education; and (xv) whether the degree that the institu- tion will confer upon completion of the course of education has been authorized by the appropriate State educational agency, including with respect to cases where the in- stitution fails to disclose facts regarding the lack of such authorization in any adver- tising or promotional materials that ref- erence such degree. (B) The financial charges of the institution, including misrepresentation regarding— (i) offers of scholarships to pay all or part of a course charge; (ii) whether a particular charge is the cus- tomary charge at the institution for a course; (iii) the cost of the program and the refund policy of the institution if the student does not complete the program; (iv) the availability or nature of any finan- cial assistance offered to students, including a student’s responsibility to repay any loans, regardless of whether the student is successful in completing the program and obtaining employment; and (v) the student’s right to reject any par- ticular type of financial aid or other assist- ance, or whether the student must apply for a particular type of financial aid, such as fi- nancing offered by the institution. (C) The employability of the graduates of the institution, including misrepresentation regarding— (i) the relationship of the institution with any organization, employment agency, or other agency providing authorized training leading directly to employment; (ii) the plans of the institution to main- tain a placement service for graduates or otherwise assist graduates to obtain employ- ment; (iii) the knowledge of the institution about the current or likely future conditions, com- pensation, or employment opportunities in the industry or occupation for which the students are being prepared; (iv) job market statistics maintained by the Federal Government in relation to the potential placement of the graduates of the institution; and (v) other requirements that are generally needed to be employed in the fields for which the training is provided, such as require- ments related to commercial driving li- censes or permits to carry firearms, and fail- ing to disclose factors that would prevent an applicant from qualifying for such require- ments, such as prior criminal records or pre- existing medical conditions. (2) In this subsection: (A) The term ‘‘misleading statement’’ in- cludes any communication, action, omission, or intimation made in writing, visually, oral- ly, or through other means, that has the like- lihood or tendency to mislead the intended re- cipient of the communication under the cir- cumstances in which the communication is made. Such term includes the use of student endorsements or testimonials for an edu- cational institution that a student gives to the institution either under duress or because the institution required the student to make such an endorsement or testimonial to partici- pate in a program of education. (B) The term ‘‘misrepresentation’’ means any false, erroneous, or misleading statement, action, omission, or intimation made directly or indirectly to a student, a prospective stu- dent, the public, an accrediting agency, a State agency, or to the Secretary by an eligi- ble institution, one of its representatives, or any person with whom the institution has an agreement to provide educational programs, marketing, advertising, recruiting or admis- sions services. (C) The term ‘‘substantial misrepresenta- tion’’ means misrepresentation in which the person to whom it was made could reasonably be expected to rely, or has reasonably relied, to that person’s detriment. (c) LIMITATION ON CERTAIN COMMISSIONS, BO- NUSES, AND OTHER INCENTIVE PAYMENTS.—(1) An educational institution with a course or pro- gram of education approved under this chapter, and an entity that owns such an educational in- stitution, shall not provide any commission, bonus, or other incentive payment based di- rectly or indirectly on success in securing en- rollments or financial aid to any persons or en- tities engaged in any student recruiting or ad- mission activities or in making decisions re- garding the award of student financial assist- ance, except for the recruitment of foreign stu- dents residing in foreign countries who are not eligible to receive Federal student assistance. (2) In determining whether a violation of para- graph (1) has occurred, the Under Secretary for Benefits shall construe the requirements of this paragraph in accordance with the regulations and guidance prescribed by the Secretary of Education under section 487(a)(20) of the Higher Education Act of 1965 (20 U.S.C. 1094(a)(20)). (d) REQUIREMENT TO MAINTAIN RECORDS.—(1) To ensure compliance with this section, any educational institution offering courses ap- proved for the enrollment of eligible persons or veterans shall maintain a complete record of all advertising, sales, or enrollment materials (and copies thereof) utilized by or on behalf of the in- stitution during the preceding two-year period. Such record shall be available for inspection by the State approving agency or the Secretary. (2) Such materials shall include but are not limited to any direct mail pieces, brochures, printed literature used by sales persons, films, video tapes, and audio tapes disseminated through broadcast media, material disseminated Page 864 TITLE 38—VETERANS’ BENEFITS § 3696 1 So in original. Probably should be ‘‘for’’. 2 So in original. Probably should be ‘‘Benefits’ ’’. through print, digital, or electronic media, tear sheets, leaflets, handbills, fliers, and any sales or recruitment manuals used to instruct sales personnel, agents, or representatives of such in- stitution. (e) AGREEMENT WITH FEDERAL TRADE COMMIS- SION.—(1) The Secretary shall, pursuant to sec- tion 3694 of this title, enter into an agreement with the Federal Trade Commission to utilize, where appropriate, its services and facilities, consistent with its available resources, in car- rying out investigations and making the Under Secretary of 1 Benefit’s 2 preliminary findings under subsection (g)(1). (2) Such agreement shall provide that cases arising under subsection (a) of this section or any similar matters with respect to any of the requirements of this chapter or chapters 34 and 35 of this title may be referred to the Federal Trade Commission which in its discretion will conduct an investigation and make preliminary findings. (3) The findings and results of any investiga- tion under paragraph (2) shall be referred to the Under Secretary for Benefits, who shall take ap- propriate action under subsection (g) in such cases not later than 60 days after the date of such referral. (f) FINAL JUDGMENTS FROM OTHER FEDERAL AGENCIES.—Whenever the Secretary becomes aware of a final judgment by a Federal agency against an educational institution or owner of an educational institution pertaining to sub- stantial misrepresentation described in sub- section (b) or of other credible evidence relating to a violation of subsection (a), the Secretary, in partnership with the applicable State approving agency, shall— (1) within 30 days, alert the educational in- stitution or owner that it is at risk of losing approval under this chapter of its courses or programs of education; (2) provide the educational institution or owner 60 days to provide any information it wishes to the Secretary; (3) require the educational institution or owner to submit to the Secretary a report pre- pared by an approved third-party auditor of the advertising and enrollment practices of the educational institution or owner; and (4) refer the matter to the Under Secretary of 1 Benefits, who may thereafter make a pre- liminary finding under subsection (g). (g) PRELIMINARY FINDINGS, FINAL DETERMINA- TIONS, AND PROCESSES.—(1) The Under Secretary for Benefits shall make preliminary findings and final determinations on violations of sub- sections (a), (c), and (d). (2)(A) The Under Secretary shall establish a process for making preliminary findings and final determinations under paragraph (1). (B) The process established under subpara- graph (A) shall— (i) clearly define what triggers an oversight visit by the Under Secretary for purposes of enforcing subsections (a), (c), and (d); (ii) set forth factors an educational institu- tion, or the owner of the educational institu- tion, must meet in order to retain approval status under this section, including with re- spect to the factors set forth under subsection (h)(2); (iii) include a process for the provision of no- tice to an educational institution, or the owner of the educational institution, that the Under Secretary has made a preliminary find- ing under paragraph (1) that the education in- stitution or owner has violated subsection (a), (c), or (d), which the Under Secretary shall provide to the educational institution or owner within such period after making the preliminary finding as the Under Secretary shall establish for purposes of this clause, ex- cept that, in every case, such period shall end before the date on which the Under Secretary makes a final determination under such para- graph; and (iv) include— (I) a process for receipt of findings from a third-party pertinent to this section; and (II) a process for an educational institu- tion or an owner to provide such information as the educational institution or owner de- termines appropriate to the Secretary, in- cluding information about corrective actions the educational institution or owner may have taken in response to preliminary find- ings under paragraph (1). (C) The process established under subpara- graph (A) shall not prohibit a State approving agency from— (i) independently investigating a potential violation of subsection (a), (c), or (d); or (ii) taking action if the State approving agency finds a violation of subsection (a), (c), or (d). (3) Upon a preliminary finding under this sub- section of a violation of subsection (a), (c), or (d) by an educational institution, or the owner of an educational institution, the Under Secretary shall require the educational institution or owner to submit to the Under Secretary a report prepared by an approved third-party auditor of the advertising and enrollment practices of the educational institution or owner. (4)(A) Before making a final determination under this subsection regarding a violation of subsection (a), (c), or (d) by an educational insti- tution or owner of an educational institution, the Under Secretary shall— (i) review the practices of the educational institution or owner that pertain to activities and practices covered by subsections (a), (c), and (d); (ii) consider the results of a risk-based sur- vey conducted by a State approving agency, if available; and (iii) review— (I) the findings and information received pursuant to the processes established under paragraph (2)(B)(iii); (II) in a case in which a report was sub- mitted under subsection (f)(3), such report; (III) the report submitted under paragraph (3); (IV) any findings and results submitted under subsection (e)(3); (V) the marketing and outreach material of the educational institution and the con- tractors of the educational institution. Page 865 TITLE 38—VETERANS’ BENEFITS § 3696 (B) The Under Secretary may not make a final determination under this subsection solely based on preliminary findings. (5) The Under Secretary may not delegate au- thority to make a final determination under this subsection, including to any employee of the Department or to the Federal Trade Com- mission. (h) ENFORCEMENT.—(1)(A) Upon a final deter- mination by the Under Secretary for Benefits under subsection (g) that an educational institu- tion or the owner of an educational institution violated subsection (a), (c), or (d), the Under Secretary shall, but subject to subparagraphs (B), (C), and (D) of this paragraph, take one of the following actions independent of any actions taken under section 3690 of this title: (i) Publish a caution flag on the GI Bill Com- parison Tool, or successor tool, about that educational institution and alert its currently enrolled eligible veterans and eligible persons. (ii) Suspend the approval of the courses and programs of education offered by the edu- cational institution by disapproving new en- rollments of eligible veterans and eligible per- sons in each course or program of education offered by that educational institution. (iii) Revoke the approval of the courses and programs of education offered by the edu- cational institution by disapproving all enroll- ments of eligible veterans and eligible persons in each course or program of education offered by that educational institution. (B) In deciding upon a course of action under subparagraph (A), for the first violation of this section, the Secretary shall consider the factors set forth in paragraph (2). (C) Subject to subsection (i), any repeat viola- tion and final finding within five years of the first violation of this section shall result in— (i) a suspension of approval of new enroll- ments as described in subparagraph (A)(ii) of this paragraph until reinstatement under sub- section (j); or (ii) a revocation of approval under this chap- ter as described in subparagraph (A)(iii) of this paragraph until reinstatement under sub- section (j). (D) Subject to subsection (i), any third viola- tion within three years of the second violation of this section shall result in revocation of ap- proval under this chapter as described in sub- paragraph (A)(iii) of this paragraph until rein- statement under subsection (j). (E) Any action taken under subparagraph (A) of this paragraph regarding a violation of sub- section (a), (c), or (d) by an educational institu- tion or the owner of an educational institution shall be taken on or before the date that is 180 days after the date on which the Under Sec- retary provided notice to the educational insti- tution or owner regarding the violation in ac- cordance with the process established under sub- section (g)(2)(B)(iii). (2) The factors set forth in this paragraph are the following: (A) That the Secretary’s action brings suffi- cient deterrence for future fraud against stu- dents and the programs of education carried out under this title. Fraud against veterans must be met with a repercussion strong enough to send a deterrent message to this and other educational institutions and owners. (B) That the educational institution has se- cured an approved third-party auditor to verify the educational institution’s, or own- er’s, advertising and enrollment practices for at least three years going forward. (C) That the educational institution or owner has repudiated the deceptive practices and has communicated to all employees that deceptive practices will not be tolerated, and has instituted strong governance procedures to prevent recurrence. (D) That the educational institution has taken steps to remove any pressure on its en- rollment recruiters, including by removing en- rollment quotas and incentives for enrollment. (E) That the State approving agency or the Secretary acting in the role of the State ap- proving agency, has completed a risk-based survey and determined the educational insti- tution is worthy of serving eligible veterans and eligible persons. (3) Enforcement action under this section shall not preclude enforcement action under sec- tion 3690 of this title. (4) No action may be carried out under this subsection with respect to a final determination by the Under Secretary under subsection (g) while such final determination is pending review under subsection (i). (i) APPEALS.—(1) The Secretary shall establish a process by which an educational institution or the owner of an educational institution that is the subject of more than one final determina- tion by the Under Secretary under subsection (g)(1) that the educational institution or owner violated subsection (a), may request a review of the most recent final determination. (2)(A) The Secretary shall— (i) review each final determination for which a review is requested under paragraph (1); and (ii) pursuant to such review, issue a final de- cision sustaining, modifying, or overturning the final determination. (B) The Secretary may not delegate any deci- sion under subparagraph (A). (C)(i) Review under subparagraph (A)(i) of this paragraph shall be the exclusive avenue for re- view of a final determination under subsection (g)(1). (ii) A decision issued pursuant to a review under subparagraph (A)(i) may not be appealed to the Secretary for review under section 7104(a) of this title. (3)(A) Not later than 30 days after the date on which the Secretary issues a final decision under paragraph (2)(A)(ii), the Secretary shall submit to Congress a report on such final deci- sion. (B) A report submitted under subparagraph (A) shall include the following: (i) An outline of the decisionmaking process of the Secretary that led to the final decision described in subparagraph (A). (ii) Any relevant material used to make the final decision under paragraph (2)(A)(ii), in- cluding risk-based surveys and documentation from the educational institution or the owners of the educational institution. Page 866 TITLE 38—VETERANS’ BENEFITS § 3697 (iii) Materials that were submitted to the Secretary after the date of the final deter- mination under subsection (g) that was the subject of the final decision under paragraph (2)(A)(ii) of this subsection and before the date on which the Secretary issued such final deci- sion. (j) Reinstatement of Approval.—(1) If an edu- cational institution or the owner of an edu- cational institution has had the approval of the courses or programs of education of the edu- cational institution suspended as described in clause (ii) of subsection (h)(1)(A) or revoked as described in clause (iii) of such subsection for a violation of subsection (a), (c), or (d) pursuant to subparagraph (C) or (D) of subsection (h)(1), the educational institution or owner may submit to the applicable State approving agency or the Secretary when acting as a State approving agency an application for reinstatement of ap- proval under this subsection. (2) Approval under this chapter may not be re- instated under this subsection until— (A) the educational institution or owner sub- mits to the applicable State approving agency or the Secretary when acting as a State ap- proving agency an application for reinstate- ment of approval under paragraph (1); (B) the date that is 540 days after the date of the most recent suspension or revocation de- scribed in paragraph (1) of the educational in- stitution or owner; (C) the educational institution submits a re- port by an approved third-party auditor on the advertising and enrollment practices of the educational institution, including those of its third-party contractors; (D) procedures are in place to prevent any future violation of subsection (a), (c), or (d); (E) that the educational institution has met all factors set forth in subsection (h)(2); and (F) the Secretary agrees to such reinstate- ment. (k) RULE OF CONSTRUCTION REGARDING STATE APPROVING AGENCIES AND RISK-BASED SUR- VEYS.—Nothing in this section shall be con- strued to prohibit a State approving agency from conducting any risk-based survey the State approving agency considers appropriate at any educational institution that it considers ap- propriate for oversight purposes. (l) DEFINITIONS.—In this section: (1) The term ‘‘approved third-party auditor’’ means an independent third-party auditor that is approved by the Secretary for purposes of third-party audits under this section. (2) The term ‘‘risk-based survey’’ means the risk-based survey developed under section 3673A of this title. (Added Pub. L. 93–508, title II, § 212(a), Dec. 3, 1974, 88 Stat. 1585, § 1796; amended Pub. L. 94–502, title V, §§ 512, 513(a)(22), Oct. 15, 1976, 90 Stat. 2402, 2403; Pub. L. 98–543, title IV, § 401, Oct. 24, 1984, 98 Stat. 2749; Pub. L. 101–237, title IV, § 423(b)(1)(A), (2), Dec. 18, 1989, 103 Stat. 2092; re- numbered § 3696 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 112–249, § 2, Jan. 10, 2013, 126 Stat. 2401; Pub. L. 116–315, title I, § 1020(a)(1), Jan. 5, 2021, 134 Stat. 4950; Pub. L. 117–16, § 7(a)(5), June 8, 2021, 135 Stat. 285; Pub. L. 117–76, § 3(b)(3), Dec. 21, 2021, 135 Stat. 1518.) Editorial Notes AMENDMENTS 2021—Pub. L. 116–315 amended section generally. Prior to amendment, section related to limitation on certain advertising, sales, and enrollment practices. Subsec. (c). Pub. L. 117–76 designated existing provi- sions as par. (1), inserted ‘‘, except for the recruitment of foreign students residing in foreign countries who are not eligible to receive Federal student assistance’’ after ‘‘assistance’’, and added par. (2). Subsec. (g)(4)(A)(iii)(III). Pub. L. 117–16 substituted ‘‘paragraph (3)’’ for ‘‘paragraph (3)(B) of this sub- section’’. 2013—Subsec. (d). Pub. L. 112–249 added subsec. (d). 1991—Pub. L. 102–83, § 5(a), renumbered section 1796 of this title as this section. Subsec. (c). Pub. L. 102–83, § 5(c)(1), substituted ‘‘3694’’ for ‘‘1794’’. 1989—Pub. L. 101–237 substituted ‘‘Secretary’’ for ‘‘Ad- ministrator’’ wherever appearing and ‘‘Secretary’s’’ for ‘‘Administrator’s’’ in subsec. (c). 1984—Subsec. (d). Pub. L. 98–543 struck out subsec. (d) which provided that not later than 60 days after the end of each fiscal year the Administrator would be required to report to Congress regarding the disposition of cases under this section. 1976—Subsec. (b). Pub. L. 94–502, § 512, added subsec. (b) and redesignated former subsec. (b) as (c). Subsec. (c). Pub. L. 94–502, §§ 512(1), 513(a)(22), redesig- nated former subsec. (b) as (c) and substituted ‘‘making the Administrator’s determinations’’ for ‘‘making his determinations’’. Former subsec. (c) redesignated (d). Subsec. (d). Pub. L. 94–502, § 512(1), redesignated former subsec. (c) as (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2021 AMENDMENT Amendment by Pub. L. 116–315 effective on Aug. 1, 2021, see section 1020(c) of Pub. L. 116–315, set out as a note under section 3676 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by sections 512 and 513(a)(22) of Pub. L. 94–502 effective Dec. 1, 1976, and Oct. 15, 1976, respec- tively, see section 703(b), (c) of Pub. L. 94–502, set out as an Effective Date note under section 3693 of this title. EFFECTIVE DATE Section effective Dec. 3, 1974, see section 503 of Pub. L. 93–508, set out as an Effective Date of 1974 Amend- ment note under section 3452 of this title. § 3697. Funding of contract educational and voca- tional counseling (a) Subject to subsection (b) of this section, educational or vocational counseling services obtained by the Department of Veterans Affairs by contract and provided to an individual under section 3697A of this title or to an individual ap- plying for or receiving benefits under section 1524 or chapter 30, 32, 33, 34, or 35 of this title, or chapter 106 of title 10, shall be paid for out of funds appropriated, or otherwise available, to the Department of Veterans Affairs for payment of readjustment benefits. (b) Payments under this section shall not ex- ceed $6,000,000 in any fiscal year. (Added Pub. L. 100–687, div. B, title XIII, § 1302(a), Nov. 18, 1988, 102 Stat. 4127, § 1797;

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Federal law — U.S. Code and appendices · legal_authorities

20 U.S.C. § 1094 — Program participation agreements

**(a) Required for programs of assistance; contents** In order to be an eligible institution for the purposes of any program authorized under this subchapter, an institution must be an institution of higher education or an eligible institution (as that term is defined for the purpose of that program) and shall, except with respect to a program under subpart 4 of part A, enter into a program participation agreement with the Secretary. The agreement shall condition the initial and continuing eligibility of an institution to participate in a program upon compliance with the following requirements: (1) The institution will use funds received by it for any program under this subchapter and any interest or other earnings thereon solely for the purpose specified in and in accordance with the provision of that program. (2) The institution shall not charge any student a fee for processing or handling any application, form, or data required to determine the student’s eligibility for assistance under this subchapter or the amount of such assistance. (3) The institution will establish and maintain such administrative and fiscal procedures and records as may be necessary to ensure proper and efficient administration of funds received from the Secretary or from students under this subchapter, together with assurances that the institution will provide, upon request and in a timely fashion, information relating to the administrative capability and financial responsibility of the institution to— (A) the Secretary; (B) the appropriate guaranty agency; and (C) the appropriate accrediting agency or association. (4) The institution will comply with the provisions of subsection (c) of this section and the regulations prescribed under that subsection, relating to fiscal eligibili

Source: Supplied U.S. Code snapshot — release unconfirmed · 20 U.S.C. § 1094

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Federal law — U.S. Code and appendices · legal_authorities

20 U.S.C. § 1094 — Program participation agreements

Page 701 TITLE 20—EDUCATION § 1094 Labor and Human Resources of the Senate and the Committee on Education and the Workforce of the House of Representatives’’. Subsec. (f)(3). Pub. L. 110–315, § 491, substituted ‘‘An- nual reports’’ for ‘‘Reports’’ in heading, in subpar. (B) redesignated cls. (i) and (ii) as subpars. (A) and (B), re- spectively, and adjusted their margins, and substituted ‘‘The Secretary shall provide reports to the authorizing committees on an annual basis’’ for former subpar. (A) which required Secretary to report to congressional committees on evaluations of demonstration programs and for introductory provisions of former subpar. (B) which related to additional annual reports. 1998—Pub. L. 105–244 amended section catchline and text generally. Prior to amendment, section authorized Secretary to make grants to nonprofit private organi- zations to provide training for student financial aid ad- ministrators and TRIO personnel. 1992—Pub. L. 102–325 struck out ‘‘and student sup- port’’ after ‘‘aid’’ in section catchline and amended text generally, substituting present provisions for former subsec. (a) relating to program authority, subsec. (b) relating to use of funds, and subsec. (c) relating to au- thorization of appropriations. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Amendment by Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see sec- tion 3 of Pub. L. 105–244, set out as a note under section 1001 of this title. § 1093a. Articulation agreements (a) Definition In this section, the term ‘‘articulation agree- ment’’ means an agreement between or among institutions of higher education that specifies the acceptability of courses in transfer toward meeting sp

Source: Supplied 2024 U.S. Code historical extraction · 20 U.S.C. § 1094

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 3696 — Prohibition on certain advertising, sales, and enrollment practices

**(a) Prohibition on Engaging in Substantial Misrepresentation.—** An educational institution with a course or program of education approved under this chapter, and an entity that owns such an educational institution, shall not engage in substantial misrepresentation described in subsection (b). **(b) Substantial Misrepresentation Described.—** (1) Substantial misrepresentation described in this paragraph is substantial misrepresentation by an educational institution, a representative of the institution, or any person with whom the institution has an agreement to provide educational programs, marketing, advertising, recruiting or admissions services, concerning any of the following: (A) The nature of the educational program of the institution, including misrepresentation regarding— (i) the particular type, specific source, or nature and extent, of the accreditation of the institution or a course of education at the institution; (ii) whether a student may transfer course credits to another institution; (iii) conditions under which the institution will accept transfer credits earned at another institution; (iv) whether successful completion of a course of instruction qualifies a student— (I) for acceptance to a labor union or similar organization; or (II) to receive, to apply to take, or to take an examination required to receive a local, State, or Federal license, or a nongovernmental certification required as a precondition for employment, or to perform certain functions in the States in which the educational program is offered, or to meet additional conditions that the institution knows or reasonably should know are generally needed to secure employment in a recognized occupation for which the program is represented to prepare stu

Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 3696

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