Sec. 304. Reforms to eligibility and certification procedures
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Section 498 ( 20 U.S.C. 1099c ) is amended— in subsection (a)— by striking For purposes and inserting the following: For purposes ; by striking status, and and inserting status, ; by inserting , and the institution’s compliance with all other eligibility requirements in accordance with paragraph (2), after an institution of higher education ; and by adding at the end the following: In making a determination of institutional eligibility under this section, the Secretary shall— require that an institution demonstrate compliance with each provision required under this title in order to receive a full, non-provisional certification of eligibility for purposes of this section; reflect that an institution is not entitled to continued participation in programs under this title absent a demonstration of full compliance; and determine that an institution is not eligible for participation in programs under this title if it is not in full compliance with section 487(a)(16). ; and in subsection (f)— by striking The Secretary shall ensure and inserting the following:
The Secretary shall ensure ; and by striking The personnel and inserting the following: The Secretary shall not automatically certify or recertify an institution for participation in a program under this title as a result of delay in conducting a full review of the institution’s application. The personnel . Section 498 ( 20 U.S.C. 1099c ) is amended— in subsection (h)— in paragraph (1)(B)— in clause (ii), by striking or after the semicolon; in clause (iii), by striking the period at the end and inserting a semicolon; and by adding at the end the following: the institution has violated any requirement of this title; the institution has violated the terms of its program participation agreement under section 487; or the Secretary determines that the institution’s continued participation in programs under this title poses a significant risk to students and taxpayers. ; by redesignating paragraphs
(2)and
(3)as paragraphs
(3)and (4), respectively; and by inserting after paragraph
(1)the following: The Secretary shall require a provisionally certified institution to comply with such additional conditions as the Secretary determines necessary or appropriate based on the circumstances of the institution, as specified in the institution’s program participation agreement under section 487. ; by redesignating subsections (i), (j), and
(k)as subsections (j), (k), and (l), respectively; and by inserting after subsection
(h)the following: If an institution that is provisionally certified under subsection
(h)is unable to meet its responsibilities under its program participation agreement or is in violation of any requirement established under this title (including if the institution has engaged in substantial misrepresentations), or if a final administrative finding or judicial judgment determines that the institution violated a State or Federal consumer protection law or regulation, the Secretary may terminate the institution’s participation in the programs under this title. . Section 487(c) ( 20 U.S.C. 1094(c) ) is amended by adding at the end the following: An institution that submits a misrepresentation or false claim on an application for funds under this title, or knowingly (as defined in section 3729 of title 31, United States Code) fails to comply with the requirements of the program participation agreement under this section, shall be subject to sections 3729 through 3733 of such title. For purposes of section 3729(a) of title 31, United States Code, the amount of damages that the Government sustains because of the act of the institution described in subparagraph
(A)shall be the total amount of funds distributed to the institution for loans made to students under part D during the period beginning on the date of the submission of the application or the failure to comply (as the case may be) and ending on the date on which a final decision finding a violation of section 3729 of such Code is made. . Paragraph
(21)of section 487(a) ( 20 U.S.C. 1094(a)(21) ) is amended to read as follows: The institution— acknowledges that the agreement certifies the institution's compliance with all terms of the program participation agreement and all applicable Federal laws and regulations that govern an institution's eligibility to receive funds under this title; agrees that any violation of the terms of a program participation agreement or any other Federal law or regulation described in subparagraph
(A)constitutes material noncompliance with a condition of payment; and will meet the requirements established by the Secretary and accrediting agencies or associations, and will provide evidence to the Secretary that the institution has the authority to operate within a State. .
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