38 U.S.C. § 3683 — Conflicting interests

Page 840 TITLE 38—VETERANS’ BENEFITS § 3682 Editorial Notes REFERENCES IN TEXT Chapter 106 of title 10, referred to in subsecs. (a) and (b)(2), which consisted of sections 2131 to 2138, was amended by Pub. L. 103–337, div. A, title XVI, § 1663(b)(2), Oct. 5, 1994, 108 Stat. 3006, to renumber sec- tions 2131 to 2137 as 16131 to 16137, respectively, and transfer them to chapter 1606 of Title 10, Armed Forces. Section 903 of the Department of Defense Authoriza- tion Act, 1981, referred to in subsec. (b)(3), is section 903 of Pub. L. 96–342, title IX, Sept. 8, 1980, 94 Stat. 1115, which is set out as a note under section 2141 of Title 10, Armed Forces. The Hostage Relief Act of 1980, referred to in subsec. (b)(4), is Pub. L. 96–449, Oct. 14, 1980, 94 Stat. 1967, which was formerly set out as a note under section 5561 of Title 5, Government Organization and Employees. The Omnibus Diplomatic Security and Antiterrorism Act of 1986, referred to in subsec. (b)(5), is Pub. L. 99–399, Aug. 27, 1986, 100 Stat. 853. For complete classi- fication of this Act to the Code, see Short Title note set out under section 4801 of Title 22, Foreign Relations and Intercourse, and Tables. PRIOR PROVISIONS Provisions similar to those comprising this section were contained in Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1182, 1201, which was classified to former sections 1632(h)(1) and 1762(b) of this title, prior to repeal by sec- tions 4(a) and 3(a)(2) of Pub. L. 89–358, respectively. AMENDMENTS 2011—Subsec. (b)(2). Pub. L. 111–377 inserted ‘‘and sec- tion 510’’ after ‘‘and 107’’. 1992—Subsec. (a)(2). Pub. L. 102–568 struck out before period at end ‘‘and whose full salary is being paid to such person while so training’’. 1991—Pub. L. 102–83 renumbered section 1781 of this title as this section. 1989—Subsec. (b)(5). Pub. L. 101–237 added par. (5). 1986—Subsec. (b). Pub. L. 99–576 struck out ‘‘for the pursuit of the same program of education’’ after ‘‘pro- visions of law listed below’’ in introductory text and substituted ‘‘Chapters 106 and 107’’ for ‘‘Chapter 107’’ in par. (2). 1984—Subsec. (a). Pub. L. 98–525, § 703(c)(1)(A)–(C), in- serted initial reference to chapter 30 of this title, in- serted references to chapters 106 and 107 of title 10, and struck out comma after ‘‘chapter 31’’. Pub. L. 98–223, § 203(c)(1)(A), designated existing provi- sions as subsec. (a). Subsec. (b). Pub. L. 98–525, § 703(c)(2), inserted ref- erence to chapter 30 of this title in par. (1). Pub. L. 98–223, § 203(c)(1)(B), added subsec. (b). 1982—Pub. L. 97–295 substituted ‘‘chapter 41 of title 5’’ for ‘‘the Government Employees’ Training Act’’. 1980—Pub. L. 96–466 inserted ‘‘, or subsistence allow- ance granted under chapter 31,’’ after ‘‘chapter 34, 35, or 36’’ and substituted ‘‘Department of Health and Human Services’’ for ‘‘Department of Health, Education, and Welfare’’. 1976—Pub. L. 94–502 substituted ‘‘such person’’ for ‘‘him’’. 1972—Pub. L. 92–540 substituted ‘‘granted under chap- ter 34, 35, or 36’’ for ‘‘or special training allowance granted under chapter 34 or 35’’. 1970—Pub. L. 91–219 substituted ‘‘Limitations on edu- cational assistance’’ for ‘‘Nonduplication of benefits’’ as section catchline and limited duplication of benefits bar to cases of persons on active duty with Armed Forces or Public Health Service whose education or training costs are being paid by Federal Government and persons receiving education or training under Gov- ernment Employees’ Training Act being paid their full salary during that period. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2011 AMENDMENT Amendment by Pub. L. 111–377 effective Aug. 1, 2011, see section 202(c) of Pub. L. 111–377, set out as a note under section 3322 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Pub. L. 96–466, title VIII, § 802(a)(6), Oct. 17, 1980, 94 Stat. 2218, provided that: ‘‘The amendments made by sections 102 and 103 [amending this section and section 1795 [now 3695] of this title] shall become effective on October 1, 1980.’’ Amendment by section 801(e) of Pub. L. 96–466 effec- tive Oct. 1, 1980, see section 802(h) of Pub. L. 96–466, set out as a note under section 3452 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–502 effective Oct. 15, 1976, see section 703(b) of Pub. L. 94–502, set out as an Effec- tive Date note under section 3693 of this title. DUPLICATION OF BENEFITS Pub. L. 90–574, title V, § 504, Oct. 15, 1968, 82 Stat. 1012, relating to duplication of benefits, was repealed by Pub. L. 91–219, title II, § 215(a), Mar. 26, 1970, 84 Stat. 85. § 3682. Control by agencies of the United States Except as provided in section 3674A of this title, no department, agency, or officer of the United States, in carrying out this chapter, shall exercise any supervision or control, what- soever, over any State approving agency, or State educational agency, or any educational in- stitution. Nothing in this section shall be deemed to prevent any department, agency, or officer of the United States from exercising any supervision or control which such department, agency, or officer is authorized by law to exer- cise over any Federal educational institution or to prevent the furnishing of education under this chapter or chapter 34 or 35 of this title in any institution over which supervision or con- trol is exercised by such other department, agency, or officer under authority of law. (Added Pub. L. 89–358, § 3(b), Mar. 3, 1966, 80 Stat. 21, § 1782; amended Pub. L. 92–540, title IV, § 403(9), Oct. 24, 1972, 86 Stat. 1090; Pub. L. 100–323, § 13(b)(6), May 20, 1988, 102 Stat. 574; re- numbered § 3682 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) Editorial Notes PRIOR PROVISIONS Provisions similar to those comprising this section were contained in Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1190, 1201, which was classified to former sections 1663 and 1763 of this title, prior to repeal by sections 4(a) and 3(a)(3) of Pub. L. 89–358, respectively. AMENDMENTS 1991—Pub. L. 102–83 renumbered section 1782 of this title as this section and substituted ‘‘3674A’’ for ‘‘1774A’’. 1988—Pub. L. 100–323 substituted ‘‘Except as provided in section 1774A of this title, no’’ for ‘‘No’’. 1972—Pub. L. 92–540 inserted ‘‘this chapter or’’ before ‘‘chapter 34 or 35’’. § 3683. Conflicting interests (a) DEPARTMENT OFFICERS AND EMPLOYEES.— (1) An officer or employee of the Department Page 841 TITLE 38—VETERANS’ BENEFITS § 3683 shall receive corrective action or disciplinary action if such officer or employee— (A) has, while serving as such an officer or employee, owned any interest in, or received any wage, salary, dividend, profit, or gift from, any educational institution operated for profit; or (B) has, while serving as a covered officer or employee of the Department, received any service from any educational institution oper- ated for profit. (2) In this subsection, the term ‘‘covered offi- cer or employee of the Department’’ means an officer or employee of the Department who— (A) works on the administration of benefits under chapter 30, 31, 32, 33, 34, 35, or 36 of this title; or (B) has a potential conflict of interest in- volving an educational institution operated for profit, as determined by the Secretary. (b) STATE APPROVING AGENCY EMPLOYEES.—If the Secretary finds that any person who is an of- ficer or employee of a State approving agency has, while such person was such an officer or employee, owned any interest in, or received any wage, salary, dividend, profit, or gift from, an educational institution operated for profit, the Secretary shall discontinue making pay- ments under section 3674 of this title to such State approving agency unless such agency shall, without delay, take such steps as may be necessary to provide corrective action or dis- ciplinary action with respect to such person and such payments shall not be resumed until the completion of such corrective action or discipli- nary action. (c) DISAPPROVAL OF COURSES.—A State approv- ing agency shall not approve any course offered by an educational institution operated for prof- it, and, if any such course has been approved, shall disapprove each such course, if it finds that any officer or employee of the Department or the State approving agency owns an interest in, or receives any wage, salary, dividend, profit, or gift from, such institution. (d) WAIVER AUTHORITY.—(1) The Secretary may waive in writing the application of this sec- tion in the case of any officer or employee of the Department or of a State approving agency, if the Secretary finds that no detriment will result to the United States or to eligible persons or veterans by reasons of such interest or connec- tion of such officer or employee. (2) The Secretary shall provide public notice of any waiver granted under this subsection by not later than 30 days after the date on which such waiver is granted. (Added Pub. L. 89–358, § 3(b), Mar. 3, 1966, 80 Stat. 22, § 1783; amended Pub. L. 92–540, title IV, § 403(10), Oct. 24, 1972, 86 Stat. 1090; Pub. L. 94–502, title V, § 513(a)(14)–(16), Oct. 15, 1976, 90 Stat. 2403; Pub. L. 97–295, § 4(54), Oct. 12, 1982, 96 Stat. 1309; Pub. L. 101–237, title IV, § 423(b)(1), Dec. 18, 1989, 103 Stat. 2092; renumbered § 3683 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 115–251, title III, § 302(a), Sept. 29, 2018, 132 Stat. 3178; Pub. L. 116–61, § 6(5), Sept. 30, 2019, 133 Stat. 1117.) Editorial Notes PRIOR PROVISIONS Provisions similar to those comprising this section were contained in Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1190, 1201, which was classified to former sections 1664 and 1764 of this title, prior to repeal by sections 4(a) and 3(a)(3) of Pub. L. 89–358, respectively. AMENDMENTS 2019—Subsecs. (b) to (d). Pub. L. 116–61 substituted ‘‘(b)’’ for ‘‘(b) (b)’’, ‘‘(c)’’ for ‘‘(c) (c)’’, and ‘‘(d)’’ for ‘‘(d) (d)’’ in subsec. designations. 2018—Subsec. (a). Pub. L. 115–251, § 302(a)(1), added subsec. (a) and struck out former subsec. (a) which read as follows: ‘‘Every officer or employee of the Depart- ment of Veterans Affairs who has, while such an officer or employee, owned any interest in, or received any wages, salary, dividends, profits, gratuities, or services from, any educational institution operated for profit in which an eligible person or veteran was pursuing a pro- gram of education or course under this chapter or chap- ter 34 or 35 of this title shall be immediately dismissed from such officer’s or employee’s office or employ- ment.’’ Subsec. (b). Pub. L. 115–251, § 302(a)(2), inserted second subsec. (b) designation and heading, substituted ‘‘wage, salary, dividend, profit, or gift’’ for ‘‘wages, salary, dividends, profits, gratuities, or services’’, ‘‘provide corrective action or disciplinary action with respect to’’ for ‘‘terminate the employment of’’, and ‘‘until the completion of such corrective action or disciplinary ac- tion’’ for ‘‘while such person is an officer or employee of the State approving agency, or State department of veterans’ affairs or State department of education’’, and struck out ‘‘in which an eligible person or veteran was pursuing a program of education or course under this chapter or chapter 34 or 35 of this title’’ after ‘‘op- erated for profit’’. Subsec. (c). Pub. L. 115–251, § 302(a)(3), inserted second subsec. (c) designation and heading, struck out ‘‘of Vet- erans Affairs’’ after ‘‘of the Department’’, and sub- stituted ‘‘wage, salary, dividend, profit, or gift’’ for ‘‘wages, salary, dividends, profits, gratuities, or serv- ices’’. Subsec. (d). Pub. L. 115–251, § 302(a)(4), inserted second subsec. (d) designation and heading, designated existing provisions as par. (1), struck out ‘‘, after reasonable no- tice and public hearings,’’ after ‘‘The Secretary may’’ and ‘‘of Veterans Affairs’’ after ‘‘of the Department’’, and added par. (2). 1991—Pub. L. 102–83, § 5(a), renumbered section 1783 of this title as this section. Subsec. (b). Pub. L. 102–83, § 5(c)(1), substituted ‘‘3674’’ for ‘‘1774’’. 1989—Pub. L. 101–237 substituted ‘‘Secretary’’ and ‘‘Department of Veterans Affairs’’ for ‘‘Administrator’’ and ‘‘Veterans’ Administration’’, respectively, wher- ever appearing. 1982—Subsec. (a). Pub. L. 97–295 inserted ‘‘of this title’’ after ‘‘34 or 35’’. 1976—Subsec. (a). Pub. L. 94–502, § 513(a)(14), sub- stituted ‘‘such officer’s or employee’s’’ for ‘‘his’’. Subsec. (b). Pub. L. 94–502, § 513(a)(15), substituted ‘‘while such person was’’ for ‘‘while he was’’ and ‘‘the Administrator shall discontinue’’ for ‘‘he shall dis- continue’’. Subsec. (d). Pub. L. 94–502, § 513(a)(16), substituted ‘‘if the Administrator finds’’ for ‘‘if he finds’’. 1972—Subsecs. (a), (b). Pub. L. 92–540 inserted ‘‘this chapter or’’ before ‘‘chapter 34 or 35’’ wherever appear- ing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2018 AMENDMENT Pub. L. 115–251, title III, § 302(b), Sept. 29, 2018, 132 Stat. 3179, provided that: ‘‘The amendments made by subsection (a) [amending this section] shall take effect Page 842 TITLE 38—VETERANS’ BENEFITS § 3684 1 See Modifications of Reporting Fee Multipliers During Cer- tain Periods notes below. on the date of the enactment of this Act [Sept. 29, 2018] and shall apply with respect to conflicts of interest that occur on or after that date.’’ EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–502 effective Oct. 15, 1976, see section 703(b) of Pub. L. 94–502, set out as an Effec- tive Date note under section 3693 of this title. § 3684. Reports by veterans, eligible persons, and institutions; reporting fee (a)(1) Except as provided in paragraph (2) of this subsection, the veteran or eligible person and the educational institution offering a course in which such veteran or eligible person is en- rolled under chapter 31, 32, 33, 34, 35, or 36 of this title shall, without delay, report to the Sec- retary, in the form prescribed by the Secretary, such enrollment and any interruption or termi- nation of the education of each such veteran or eligible person. The date of such interruption or termination will be the last date of pursuit, or, in the case of correspondence training, the last date a lesson was serviced by a school. (2)(A) In the case of a program of independent study pursued on less than a half-time basis in an educational institution, the Secretary may approve a delay by the educational institution in reporting the enrollment or reenrollment of an eligible veteran or eligible person until the end of the term, quarter, or semester if the edu- cational institution requests the delay and the Secretary determines that it is not feasible for the educational institution to monitor interrup- tion or termination of the veteran’s or eligible person’s pursuit of such program. (B) An educational institution which, pursu- ant to subparagraph (A) of this paragraph, is de- laying the reporting of the enrollment or re- enrollment of a veteran shall provide the vet- eran with notice of the delay at the time that the veteran enrolls or reenrolls. (3)(A) Subject to subparagraph (B) of this paragraph, an educational institution offering courses on a term, quarter, or semester basis may certify the enrollment of a veteran who is not on active duty, or of an eligible person, in such courses for more than one term, quarter, or semester at a time, but not for a period extend- ing beyond the end of a school year (including the summer enrollment period). (B) Subparagraph (A) of this paragraph shall not apply with respect to any term, quarter, or semester for which the veteran or eligible per- son is enrolled on a less than half-time basis and shall not be construed as restricting the Sec- retary from requiring that an educational insti- tution, in reporting an enrollment for more than one term, quarter, or semester, specify the dates of any intervals within or between any such terms, quarters, or semesters. (4) A course offered by an educational institu- tion that does not begin on the first day of an academic term, but does begin seven or fewer days after such day, shall be treated as begin- ning on such day for purposes of this section. (5) For purposes of this subsection, the term ‘‘educational institution’’ may include a group, district, or consortium of separately accredited educational institutions located in the same State that are organized in a manner that facili- tates the centralized reporting of the enroll- ments in such group, district, or consortium of institutions. (b) The Secretary, prior to making payment of a reporting fee to an educational institution, as provided for in subsection (c) of this section, shall require such institution to certify that it has exercised reasonable diligence in deter- mining whether such institution or any course offered by such institution approved for the en- rollment of veterans or eligible persons meets all of the applicable requirements of chapters 31, 34, 35, and 36 of this title and that it will, with- out delay, report any failure to meet any such requirement to the Secretary. (c)(1) The Secretary may pay to any edu- cational institution, or to the sponsor of a pro- gram of apprenticeship, furnishing education or training under either this chapter or chapter 31, 34, or 35 of this title, a reporting fee which will be in lieu of any other compensation or reim- bursement for reports or certifications which such educational institution or sponsor of a pro- gram of apprenticeship is required to submit to the Secretary by law or regulation. (2) Such reporting fee shall be computed for each calendar year by multiplying $16 1 by the number of eligible veterans or eligible persons enrolled under this chapter or chapter 31, 34, or 35 of this title. The reporting fee shall be paid to such educational institution or sponsor of a pro- gram of apprenticeship as soon as feasible after the end of the calendar year for which it is ap- plicable. (3) No reporting fee payable to an educational institution under this subsection shall be sub- ject to offset by the Secretary against any li- ability of such institution for any overpayment for which such institution may be administra- tively determined to be liable under section 3685 of this title unless such liability is not con- tested by such institution or has been upheld by a final decree of a court of appropriate jurisdic- tion. (4) Any reporting fee paid to an educational institution or sponsor of a program of appren- ticeship after the date of the enactment of the Post-9/11 Veterans Educational Assistance Im- provements Act of 2011 (Public Law 111–377)— (A) shall be utilized by such institution or sponsor solely for the making of certifications required under this chapter or chapter 31, 34, or 35 of this title or for otherwise supporting programs for veterans; and (B) with respect to an institution that has 100 or more enrollees described in paragraph (2) may not be used for or merged with amounts available for the general fund of the educational institution or sponsor of a pro- gram of apprenticeship. (5) The reporting fee payable under this sub- section shall be paid from amounts appropriated for readjustment benefits. (d) Not later than 90 days after the date of the enactment of this subsection, the Secretary shall ensure that the Department provides per- sonnel of educational institutions who are charged with submitting reports or certifi-