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38 U.S.C. § 7699B — Breach of agreement: liability

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

38 U.S.C. § 7699B — Breach of agreement: liability

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Source file: Laws/federal/codes/united-states-code/title-38/section-7699b-breach-of-agreement-liability--6105cf6ed0.md
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Source location: Title 38, Chapter 76, § 7699B; chapter-076-health-professionals-educational-assistance-program.md

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**(a) Liquidated Damages.—** (1) A participant in the Program (other than a participant described in subsection (b)) who fails to accept payment, or instructs the educational institution in which the participant is enrolled not to accept payment, in whole or in part, of a scholarship under the agreement entered into under [section 7604 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section7604&num=0&edition=prelim) shall be liable to the United States for liquidated damages in the amount of $1,500. (2) Liability under paragraph (1) is in addition to any period of obligated service or other obligation or liability under such agreement. **(b) Liability During Program of Study.—** (1) Except as provided in subsection (d), a participant in the Program shall be liable to the United States for the amount which has been paid to or on behalf of the participant under the agreement if any of the following occurs: (A) The participant fails to maintain an acceptable level of academic standing in the educational institution in which the participant is enrolled (as determined by the educational institution under regulations prescribed by the Secretary). (B) The participant is dismissed from such educational institution for disciplinary reasons. (C) The participant voluntarily terminates the program of study in such educational institution before the completion of such program of study. (2) Liability under this subsection is in lieu of any service obligation arising under the agreement. **(c) Liability During Period of Obligated Service.—** (1) Except as provided in subsection (d), if a participant in the Program does not complete the period of obligated service of the participant, the United States shall be entitled to recover from the participant an amount determined in accordance with the following formula: A = 3Φ (t−s/t). (2) In the formula in paragraph (1): (A) “A” is the amount the United States is entitled to recover. (B) “Φ” is the sum of— (i) the amounts paid under this subchapter to or on behalf of the participant; and (ii) the interest on such amounts which would be payable if at the time the amounts were paid they were loans bearing interest at the maximum legal prevailing rate, as determined by the Treasurer of the United States. (C) “t” is the total number of months in the period of obligated service of the participant. (D) “s” is the number of months of such period served by the participant. **(d) Limitation on Liability for Reductions-in-force.—** Liability shall not arise under subsection (c) if the participant fails to maintain employment as a Department employee due to a staffing adjustment. **(e) Period for Payment of Damages.—** Any amount of damages that the United States is entitled to recover under this section shall be paid to the United States within the one-year period beginning on the date of the breach of the agreement.

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

38 U.S.C. § 7698 — Requirement for program

As part of the Educational Assistance Program, the Secretary shall carry out a scholarship program under this subchapter. The program shall be known as the Department of Veterans Affairs Readjustment Counseling Service Scholarship Program (in this subchapter referred to as the “Program”).

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

38 U.S.C. § 7604 — Terms of agreement

An agreement between the Secretary and a participant in the Educational Assistance Program shall be in writing, shall be signed by the participant, and shall include the following provisions: (1) The Secretary’s agreement— (A) to provide the participant with educational assistance as authorized in subchapter II, III, V, VI, VIII, or IX of this chapter and specified in the agreement; and (B) to afford the participant the opportunity for employment in the Veterans Health Administration (subject to the availability of appropriated funds for such purpose and other qualifications established in accordance with [section 7402 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section7402&num=0&edition=prelim)). (2) The participant’s agreement— (A) to accept such educational assistance; (B) to maintain enrollment and attendance in the course of training until completed; (C) while enrolled in such course, to maintain an acceptable level of academic standing (as determined by the educational institution offering such course of training under regulations prescribed by the Secretary); and (D) after completion of the course of training, to serve as a full-time employee in the Veterans Health Administration as specified in the agreement in accordance with subchapter II, III, V, VI, VIII, or IX of this chapter. (3) A provision that any financial obligation of the United States arising out of an agreement entered into under this chapter, and any obligation of the participant which is conditioned on such agreement, is contingent upon funds being appropriated for educational assistance under this chapter. (4) A statement of the damages to which the United States is entitled under this chapter for the participant’s breach of the agree

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

38 U.S.C. § 7699B — Breach of agreement: liability

Page 1286 TITLE 38—VETERANS’ BENEFITS § 7699A § 7699A. Obligated service (a) IN GENERAL.—Each participant in the Pro- gram shall provide service as a full-time em- ployee of the Department at a Vet Center (as de- fined in section 7699(d) of this title) for the pe- riod of obligated service set forth in the agree- ment of the participant entered into under sec- tion 7604 of this title. (b) DETERMINATION OF SERVICE COMMENCEMENT DATE.—(1) Not later than 60 days before the service commencement date of a participant, the Secretary shall notify the participant of that service commencement date. (2) The date specified in paragraph (1) with re- spect to a participant is the date for the begin- ning of the period of obligated service of the par- ticipant. (Added Pub. L. 116–171, title V, § 502(a), Oct. 17, 2020, 134 Stat. 816.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Secretary of Veterans Affairs to begin awarding scholarships under this subchapter for programs of study beginning no later than one year after Oct. 17, 2020, see section 502(c) of Pub. L. 116–171, set out as a note under section 7698 of this title. § 7699B. Breach of agreement: liability (a) LIQUIDATED DAMAGES.—(1) A participant in the Program (other than a participant described in subsection (b)) who fails to accept payment, or instructs the educational institution in which the participant is enrolled not to accept pay- ment, in whole or in part, of a scholarship under the agreement entered into under section 7604 of this title shall be liable to the United States for liquidated damages in the amount of $1,500. (2) Liability under paragraph (1) is in addition to any period of obligated service or other obli- gation or liability under such agreement. (b) LIABILITY DURING

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