38 U.S.C. § 7699A — Obligated service

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 PROGRAM OF STUDY.—(1) Except as provided in subsection (d), a partici- pant 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 ac- ceptable level of academic standing in the edu- cational 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 rea- sons. (C) The participant voluntarily terminates the program of study in such educational in- stitution before the completion of such pro- gram of study. (2) Liability under this subsection is in lieu of any service obligation arising under the agree- ment. (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 de- termined in accordance with the following for- mula: 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 de- termined 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 pe- riod served by the participant. (d) LIMITATION ON LIABILITY FOR REDUCTIONS- IN-FORCE.—Liability shall not arise under sub- section (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 en- titled 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 agree- ment. (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. CHAPTER 77—VETERANS BENEFITS ADMINISTRATION SUBCHAPTER I—ORGANIZATION; GENERAL Sec. 7701. Organization of the Administration. 7703. Functions of the Administration. SUBCHAPTER II—QUALITY ASSURANCE 7731. Establishment. 7732. Functions. 7732A. Employee certification. 7733. Personnel. 7734. Annual report to Congress. Editorial Notes AMENDMENTS 2008—Pub. L. 110–389, title II, § 225(a)(2), Oct. 10, 2008, 122 Stat. 4158, added item 7732A. 2006—Pub. L. 109–233, title IV, § 402(d)(2), June 15, 2006, 120 Stat. 411, substituted ‘‘QUALITY ASSURANCE’’ for ‘‘VETERANS OUTREACH SERVICES PROGRAM’’ in item for subchapter II and struck out former items 7721 ‘‘Purpose; definitions’’, 7722 ‘‘Outreach services’’, 7723 ‘‘Veterans assistance offices’’, 7724 ‘‘Outstationing of counseling and outreach personnel’’, 7725 ‘‘Use of other agencies’’, 7726 ‘‘Annual report to Congress’’, 7727 ‘‘Out- reach for eligible dependents’’, and subchapter III ‘‘QUALITY ASSURANCE’’. 2001—Pub. L. 107–14, § 6(b)(2), June 5, 2001, 115 Stat. 31, added item 7727.