38 U.S.C. § 7617 — Breach of agreement: liability

Page 1270 TITLE 38—VETERANS’ BENEFITS § 7617 service commencement date is the later of (i) the participant’s course completion date, or (ii) the date upon which the participant becomes li- censed as a registered nurse in a State. (C) In the case of a participant not covered by subparagraph (A) or (B) of this paragraph, the participant’s service commencement date is the later of (i) the participant’s course completion date, or (ii) the date the participant meets any applicable licensure or certification require- ments. (4) A participant whose period of obligated service is deferred under paragraph (3)(A) of this subsection shall be required to undertake in- ternship or residency or other advanced clinical training in an accredited program in an edu- cational institution which is an affiliated insti- tution (as defined in section 7423(d)(1) of this title) and with respect to which the affiliation agreement provides that all or part of the in- ternship or residency or other advanced clinical training will be undertaken in a Department health-care facility. Such a participant may, at the discretion of the Secretary and upon the rec- ommendation of the Under Secretary for Health, incur an additional period of obligated service— (A) at the rate of one-half of a calendar year for each year of internship or residency or other advanced clinical training (or a propor- tionate ratio thereof), if the internship, resi- dency, or advanced clinical training is in a medical specialty necessary to meet the health-care requirements of the Department (as determined under regulations prescribed by the Secretary); or (B) at the rate of three-quarters of a cal- endar year for each year of internship or resi- dency or other advanced clinical training (or a proportionate ratio thereof), if the internship, residency, or advanced clinical training is not in a medical specialty necessary to meet the health-care requirements of the Department (as determined under regulations prescribed by the Secretary). (5) The Secretary shall by regulation prescribe the service commencement date for participants who were part-time students. Such regulations shall prescribe terms as similar as practicable to the terms set forth in paragraph (3) of this sub- section. (c)(1) Except as provided in paragraph (2) of this subsection, a participant in the Scholarship Program shall be considered to have begun serv- ing such participant’s period of obligated serv- ice— (A) on the date, after such participant’s course completion date, on which such partici- pant (in accordance with subsection (b) of this section) is appointed under this chapter as a full-time employee in the Veterans Health Ad- ministration; or (B) if the participant is a full-time employee in the Veterans Health Administration on such course completion date, on the date thereafter on which such participant is as- signed to a position for which such partici- pant’s course of training prepared such partic- ipant. (2) A participant in the Scholarship Program who on such participant’s course completion date is a full-time employee in the Veterans Health Administration serving in a capacity for which such participant’s course of training pre- pared such participant shall be considered to have begun serving such participant’s period of obligated service on such course completion date. (3) For the purposes of this section, the term ‘‘course completion date’’ means the date on which a participant in the Scholarship Program completes such participant’s course of education or training under the program. (Added Pub. L. 100–322, title II, § 216(b), May 20, 1988, 102 Stat. 522, § 4316; renumbered § 7616 and amended Pub. L. 102–40, title IV, §§ 402(b)(1), (d)(1), 403(b)(5), May 7, 1991, 105 Stat. 238–240; Pub. L. 102–83, § 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 102–405, title III, § 302(c)(1), Oct. 9, 1992, 106 Stat. 1984; Pub. L. 103–446, title XII, § 1201(b)(1), Nov. 2, 1994, 108 Stat. 4682.) Editorial Notes AMENDMENTS 1994—Subsecs. (b)(2), (c)(1), (2). Pub. L. 103–446 sub- stituted ‘‘Veterans Health Administration’’ for ‘‘De- partment of Medicine and Surgery’’ wherever appear- ing. 1992—Subsec. (b)(4). Pub. L. 102–405 substituted ‘‘Under Secretary for Health’’ for ‘‘Chief Medical Direc- tor’’. 1991—Pub. L. 102–40, § 402(b)(1), renumbered section 4316 of this title as this section. Subsec. (a). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Secretary’’ for ‘‘Administrator’’. Pub. L. 102–83, § 4(a)(3), (4), substituted ‘‘Department’’ for ‘‘Veterans’ Administration’’. Pub. L. 102–40, § 402(d)(1), substituted ‘‘7603’’ for ‘‘4303’’. Subsec. (b)(1) to (3). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Secretary’’ for ‘‘Administrator’’ wherever appearing. Subsec. (b)(4). Pub. L. 102–83, § 4(b)(1), (2)(E), sub- stituted ‘‘Secretary’’ for ‘‘Administrator’’ wherever ap- pearing. Pub. L. 102–83, § 4(a)(3), (4), substituted ‘‘Department’’ for ‘‘Veterans’ Administration’’ wherever appearing. Pub. L. 102–40, § 403(b)(5), substituted ‘‘7423(d)(1)’’ for ‘‘4108(c)(1)’’ in introductory provisions. Subsec. (b)(5). Pub. L. 102–83, § 4(b)(1), (2)(E), sub- stituted ‘‘Secretary’’ for ‘‘Administrator’’. § 7617. Breach of agreement: liability (a) A participant in the Scholarship Program (other than a participant described in subsection (b) of this section) 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 7603 of this title shall be liable to the United States for liquidated damages in the amount of $1,500. Such liability is in addition to any period of ob- ligated service or other obligation or liability under the agreement. (b) A participant in the Scholarship 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: (1) The participant fails to maintain an ac- ceptable level of academic standing in the edu- Page 1271 TITLE 38—VETERANS’ BENEFITS § 7618 cational institution in which the participant is enrolled (as determined by the educational institution under regulations prescribed by the Secretary). (2) The participant is dismissed from such educational institution for disciplinary rea- sons. (3) The participant voluntarily terminates the course of training in such educational in- stitution before the completion of such course of training. (4) In the case of a participant who is en- rolled in a program or education or training leading to employment as a physician, the participant fails to successfully complete post- graduate training leading to eligibility for board certification in a specialty. (5) The participant fails to become licensed to practice medicine, osteopathy, dentistry, podiatry, or optometry in a State, fails to be- come licensed as a registered nurse in a State, or fails to meet any applicable licensure re- quirement in the case of any other health-care personnel who provide either direct patient- care services or services incident to direct pa- tient-care services, during a period of time de- termined under regulations prescribed by the Secretary. (6) In the case of a participant who is a part- time student, the participant fails to maintain employment, while enrolled in the course of training being pursued by such participant, as a Department employee permanently assigned to a Department health-care facility. Liability under this subsection is in lieu of any service obligation arising under the partici- pant’s agreement. (c)(1) If a participant in the Scholarship Pro- gram breaches the agreement by failing (for any reason) to complete such participant’s period of obligated service, the United States shall be en- titled to recover from the participant an amount determined in accordance with the fol- lowing formula: t¥s A=3Φ +——, t In such formula: (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 bear- ing 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 participant’s period of obligated service, in- cluding any additional period of obligated service in accordance with section 7616(b)(4) of this title. (D) ‘‘s’’ is the number of months of such pe- riod served by the participant in accordance with section 7613 of this title. (2) Any amount of damages which 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. (Added Pub. L. 100–322, title II, § 216(b), May 20, 1988, 102 Stat. 524, § 4317; renumbered § 7617 and amended Pub. L. 102–40, title IV, § 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102–83, § 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 115–182, title III, § 301(b), June 6, 2018, 132 Stat. 1463.) Editorial Notes AMENDMENTS 2018—Subsec. (b)(4) to (6). Pub. L. 115–182, which di- rected addition of par. (4) and redesignation of former pars. (4) and (5) as pars. (5) and (6), respectively, with- out specifying the subsec. amended, was executed to subsec. (b) to reflect the probable intent of Congress. 1991—Pub. L. 102–40, § 402(b)(1), renumbered section 4317 of this title as this section. Subsec. (a). Pub. L. 102–40, § 402(d)(1), substituted ‘‘7603’’ for ‘‘4303’’. Subsec. (b)(1), (4). Pub. L. 102–83, § 4(b)(1), (2)(E), sub- stituted ‘‘Secretary’’ for ‘‘Administrator’’. Subsec. (b)(5). Pub. L. 102–83, § 4(a)(3), (4), substituted ‘‘Department’’ for ‘‘Veterans’ Administration’’ in two places. Subsec. (c)(1). Pub. L. 102–40, § 402(d)(1), substituted ‘‘7616(b)(4)’’ for ‘‘4316(b)(4)’’ in subpar. (C) and ‘‘7613’’ for ‘‘4313’’ in subpar. (D). § 7618. Additional program requirements (a) PROGRAM MODIFICATION.—Notwithstanding any provision of this subchapter, the Secretary shall carry out this subchapter after the date of the enactment of this section by modifying the Scholarship Program in such a manner that the program and hiring processes are designed to fully employ Scholarship Program graduates as soon as possible, if not immediately, upon grad- uation and completion of necessary certifi- cations, and to actively assist and monitor grad- uates to ensure certifications are obtained in a minimal amount of time following graduation. (b) CLINICAL TOURS.—The Secretary shall re- quire participants in the Scholarship Program to perform clinical tours in assignments or loca- tions determined by the Secretary while the participants are enrolled in the course of edu- cation or training for which the scholarship is provided. (c) MENTORS.—The Secretary shall ensure that at the commencement of the period of obligated service of a participant in the Scholarship Pro- gram, the participant is assigned to a mentor who is employed in the same facility where the participant performs such service. (Added Pub. L. 111–163, title VI, § 603(c)(2), May 5, 2010, 124 Stat. 1173.) Editorial Notes REFERENCES IN TEXT The date of the enactment of this section, referred to in subsec. (a), is the date of enactment of Pub. L. 111–163, which was approved May 5, 2010. PRIOR PROVISIONS A prior section 7618 was renumbered section 7619 of this title.