§3683 — Title 38 Veterans' Benefits | U.S. Code

Summary

Department workers must be disciplined or corrected if, while working, they owned part of, got pay, gifts, dividends, or services from a for‑profit school. A "covered" worker means someone who handles benefit programs under chapters 30–36 or anyone the Secretary says might have a conflict. If the Secretary finds a State approving agency worker had such ties while employed, the Secretary will stop payments to that agency under section 3674 until the agency quickly takes corrective or disciplinary steps and the action is finished. A State approving agency must not approve (and must withdraw approval of) courses from a for‑profit school if any Department or agency worker has those ties. The Secretary can waive these rules in writing if there’s no harm, and must publicly announce any waiver within 30 days.

Title 38, §3683

Veterans' Benefits — Source: USLM XML via OLRC

(a)(1)An officer or employee of the Department 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 operated for profit.

(2)In this subsection, the term “covered officer 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 involving an educational institution operated for profit, as determined by the Secretary.

(b)If the Secretary finds that any person who is an officer 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 payments 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 disciplinary action with respect to such person and such payments shall not be resumed until the completion of such corrective action or disciplinary action.

(c)A State approving agency shall not approve any course offered by an educational institution operated for profit, 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)(1)The Secretary may waive in writing the application of this section 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 connection 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.

Notes & Related Subsidiaries

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 section 1664 and 1764 of this title, prior to repeal by section 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 Department 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 program of education or course under this chapter or chapter 34 or 35 of this title shall be immediately dismissed from such officer’s or employee’s office or employment.” 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 action” 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 “operated for profit”. Subsec. (c). Pub. L. 115–251, § 302(a)(3), inserted second subsec. (c) designation and heading, struck out “of Veterans Affairs” after “of the Department”, and substituted “wage, salary, dividend, profit, or gift” for “wages, salary, dividends, profits, gratuities, or services”. 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 notice 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, wherever 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), substituted “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 discontinue”. 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 appearing.

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 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 AmendmentAmendment by Pub. L. 94–502 effective Oct. 15, 1976, see section 703(b) of Pub. L. 94–502, set out as an

Effective Date

note under section 3693 of this title.

§3683 Conflicting interests

Summary

Title 38, §3683

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Amendments

Effective Date

Effective Date

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