2017 US Code
Title 38 - Veterans' Benefits
Part III - Readjustment and Related Benefits
Chapter 36 - Administration of Educational Benefits
Subchapter II - Miscellaneous Provisions
Sec. 3683 - Conflicting interests

(a) 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.

(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 wages, salary, dividends, profits, gratuities, or services from, an 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, 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 terminate the employment of such person and such payments shall not be resumed while such person is an officer or employee of the State approving agency, or State department of veterans' affairs or State department of education.

(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 of Veterans Affairs or the State approving agency owns an interest in, or receives any wages, salary, dividends, profits, gratuities, or services from, such institution.

(d) The Secretary may, after reasonable notice and public hearings, waive in writing the application of this section in the case of any officer or employee of the Department of Veterans Affairs 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.

(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.)

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.

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.

Amendment 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.