§ 3683. Conflicting interests

1,111 words·~5 min read·/usc/title-38/section-3683

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(a)Department Officers and Employees.—

(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)State Approving Agency Employees.— 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)Disapproval of Courses.— 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)Waiver Authority.—

(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.

(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; Pub. L. 115–251, title III, § 302(a), Sept. 29, 2018, 132 Stat. 3178; Pub. L. 116–61, § 6(5), Sept. 30, 2019, 133 Stat. 1117.)

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