38 U.S.C. § 7699 — Eligibility; agreement

Page 1285 TITLE 38—VETERANS’ BENEFITS § 7699 (4) except as provided in subsection (b), to begin such service as a full-time practice em- ployee by not later than 60 days after com- pleting a residency. (b) FELLOWSHIP.—In the case of a participant who receives an accredited fellowship in a med- ical specialty other than a medical specialty de- scribed in section 7692 of this title, the Sec- retary, on written request of the participant, may delay the term of obligated service under subsection (a) for the participant until after the participant completes the fellowship, but in no case later than 60 days after completion of such fellowship. (c) PENALTY.—(1) An employee who does not complete a period of obligated service under this section shall owe the Federal Government an amount determined in accordance with the fol- lowing formula: A = B × ((T ¥ S) ÷ T). (2) In the formula in paragraph (1): (A) ‘‘A’’ is the amount the employee owes the Federal Government. (B) ‘‘B’’ is the sum of all payments to or for the participant under the Specialty Education Loan Repayment Program. (C) ‘‘T’’ is the number of months in the pe- riod of obligated service of the employee. (D) ‘‘S’’ is the number of whole months of such period of obligated service served by the employee. (Added Pub. L. 115–182, title III, § 303(a), June 6, 2018, 132 Stat. 1465; amended Pub. L. 116–61, § 6(8), Sept. 30, 2019, 133 Stat. 1117.) Editorial Notes AMENDMENTS 2019—Subsec. (c)(1). Pub. L. 116–61 struck out second closing parenthesis before period at end. § 7697. Relationship to Educational Assistance Program Assistance under the Specialty Education Loan Repayment Program may be in addition to other assistance available to individuals under the Educational Assistance Program. (Added Pub. L. 115–182, title III, § 303(a), June 6, 2018, 132 Stat. 1466.) SUBCHAPTER IX—READJUSTMENT COUN- SELING SERVICE SCHOLARSHIP PRO- GRAM § 7698. Requirement for program As part of the Educational Assistance Pro- gram, the Secretary shall carry out a scholar- ship program under this subchapter. The pro- gram shall be known as the Department of Vet- erans Affairs Readjustment Counseling Service Scholarship Program (in this subchapter re- ferred to as the ‘‘Program’’). (Added Pub. L. 116–171, title V, § 502(a), Oct. 17, 2020, 134 Stat. 815.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 116–171, title V, § 502(c), Oct. 17, 2020, 134 Stat. 818, provided that: ‘‘The Secretary of Veterans Affairs shall begin awarding scholarships under subchapter IX of chapter 76 of title 38, United States Code, as added by subsection (a), for programs of study beginning not later than one year after the date of the enactment of this Act [Oct. 17, 2020].’’ § 7699. Eligibility; agreement (a) IN GENERAL.—An individual is eligible to participate in the Program, as determined by the Readjustment Counseling Service of the De- partment, if the individual— (1) is accepted for enrollment or enrolled (as described in section 7602 of this title) in a pro- gram of study at an accredited educational in- stitution, school, or training program leading to a terminal degree in psychology, social work, marriage and family therapy, or mental health counseling that would meet the edu- cation requirements for appointment to a po- sition under section 7402(b) of this title; and (2) enters into an agreement with the Sec- retary under subsection (c). (b) PRIORITY.—In selecting individuals to par- ticipate in the Program, the Secretary shall give priority to the following individuals: (1) An individual who agrees to be employed by a Vet Center located in a community that is— (A) designated as a medically underserved population under section 330(b)(3) of the Public Health Service Act (42 U.S.C. 254b(b)(3)); and (B) in a State with a per capita population of veterans of more than five percent accord- ing to the National Center for Veterans Analysis and Statistics and the Bureau of the Census. (2) An individual who is a veteran. (c) AGREEMENT.—An agreement between the Secretary and a participant in the Program shall (in addition to the requirements set forth in section 7604 of this title) include the fol- lowing: (1) An agreement by the Secretary to pro- vide the participant with a scholarship under the Program for a specified number of school years during which the participant pursues a program of study described in subsection (a)(1) that meets the requirements set forth in sec- tion 7602(a) of this title. (2) An agreement by the participant to serve as a full-time employee of the Department at a Vet Center for a six-year period following the completion by the participant of such pro- gram of study (in this subchapter referred to as the ‘‘period of obligated service’’). (d) VET CENTER DEFINED.—In this section, the term ‘‘Vet Center’’ has the meaning given that term in section 1712A(h) of this title. (Added Pub. L. 116–171, title V, § 502(a), Oct. 17, 2020, 134 Stat. 815.) 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. 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.