38 U.S.C. § 7616 — Obligated service

Page 1269 TITLE 38—VETERANS’ BENEFITS § 7616 pend of a participant who is a part-time student shall be adjusted as provided in sections 7614(1) and 7614(2) of this title. (c) The Secretary may arrange with an edu- cational institution in which a participant in the Scholarship Program is enrolled for the pay- ment to the educational institution of the amounts of tuition and other reasonable edu- cational expenses described in subsection (a) of this section. Such payments may be made with- out regard to subsections (a) and (b) of section 3324 of title 31. (Added Pub. L. 100–322, title II, § 216(b), May 20, 1988, 102 Stat. 521, § 4313; renumbered § 7613 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.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–40, § 402(b)(1), renumbered section 4313 of this title as this section. Subsec. (b). Pub. L. 102–83, § 4(a)(3), (4), substituted ‘‘Department’’ for ‘‘Veterans’ Administration’’. Pub. L. 102–40, § 402(d)(1), substituted ‘‘7631’’ for ‘‘4331’’ and ‘‘7614(1) and 7614(2)’’ for ‘‘4314(1) and ‘‘4314(2)’’. Subsec. (c). Pub. L. 102–83, § 4(b)(1), (2)(E), substituted ‘‘Secretary’’ for ‘‘Administrator’’. § 7614. Part-time students In the case of a participant who is a part-time student— (1) the maximum amount of the stipend pay- able to the participant shall be reduced in ac- cordance with the proportion that the number of credit hours carried by such participant bears to the number of credit hours required to be carried by a full-time student in the course of education or training being pursued by the participant; (2) a stipend may not be paid for any month during which the participant is not actually attending the course of training in which the participant is enrolled; and (3) the Secretary may extend the period for which a scholarship may be awarded to the participant to a maximum of six school years if the Secretary determines that the extension would be in the best interest of the United States. (Added Pub. L. 100–322, title II, § 216(b), May 20, 1988, 102 Stat. 522, § 4314; renumbered § 7614, Pub. L. 102–40, title IV, § 402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102–83, § 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–40 renumbered section 4314 of this title as this section. Par. (3). Pub. L. 102–83 substituted ‘‘Secretary’’ for ‘‘Administrator’’ in two places. § 7615. Status of participants Participants in the Scholarship Program shall not by reason of their participation in such pro- gram (1) be considered to be employees of the Federal Government, or (2) be counted against any personnel ceiling affecting the Veterans Health Administration. (Added Pub. L. 100–322, title II, § 216(b), May 20, 1988, 102 Stat. 522, § 4315; renumbered § 7615, Pub. L. 102–40, title IV, § 402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 103–446, title XII, § 1201(b)(1), Nov. 2, 1994, 108 Stat. 4682.) Editorial Notes AMENDMENTS 1994—Pub. L. 103–446 substituted ‘‘Veterans Health Administration’’ for ‘‘Department of Medicine and Sur- gery’’. 1991—Pub. L. 102–40 renumbered section 4315 of this title as this section. § 7616. Obligated service (a) Each participant in the Scholarship Pro- gram shall provide service as a full-time em- ployee of the Department for the period of obli- gated service provided in the agreement of the participant entered into under section 7603 of this title. Such service shall be provided in the full-time clinical practice of such participant’s profession or in another health-care position in an assignment or location determined by the Secretary. (b)(1) Not later than 60 days before the partici- pant’s service commencement date, the Sec- retary shall notify the participant of that serv- ice commencement date. That date is the date for the beginning of the participant’s period of obligated service. (2) As soon as possible after the participant’s service commencement date, the Secretary shall— (A) in the case of a participant who is not a full-time employee in the Veterans Health Ad- ministration, appoint such participant as such an employee; and (B) in the case of a participant who is an em- ployee in the Veterans Health Administration but is not serving in a position for which such participant’s course of education or training prepared such participant, assign such partici- pant to such a position. (3)(A)(i) In the case of a participant receiving a degree from a school of medicine, osteopathy, dentistry, optometry, or podiatry, the partici- pant’s service commencement date is the date upon which the participant becomes licensed to practice medicine, osteopathy, dentistry, op- tometry, or podiatry, as the case may be, in a State. However, the Secretary may, at the re- quest of such participant, defer such date until the end of the period of time required for the participant to complete an internship or resi- dency or other advanced clinical training. If the participant requests such a deferral, the Sec- retary shall notify the participant that such de- ferral could lead to an additional period of obli- gated service in accordance with paragraph (4) of this subsection. (ii) No such period of internship or residency or other advanced clinical training shall be counted toward satisfying a period of obligated service under this subchapter. (B) In the case of a participant receiving a de- gree from a school of nursing, the participant’s 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-