
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 38USC1718]

 
                      TITLE 38--VETERANS' BENEFITS
 
                        PART II--GENERAL BENEFITS
 
    CHAPTER 17--HOSPITAL, NURSING HOME, DOMICILIARY, AND MEDICAL CARE
 
 SUBCHAPTER II--HOSPITAL, NURSING HOME, OR DOMICILIARY CARE AND MEDICAL 
                                TREATMENT
 
Sec. 1718. Therapeutic and rehabilitative activities

    (a) In providing rehabilitative services under this chapter, the 
Secretary, upon the recommendation of the Under Secretary for Health, 
may use the services of patients and members in Department health care 
facilities for therapeutic and rehabilitative purposes. Such patients 
and members shall not under these circumstances be held or considered as 
employees of the United States for any purpose. The Secretary shall 
prescribe the conditions for the use of such services.
    (b)(1) In furnishing rehabilitative services under this chapter, the 
Secretary, upon the recommendation of the Under Secretary for Health, 
may enter into a contract or other arrangement with any appropriate 
source (whether or not an element of the Department of Veterans Affairs 
or of any other Federal entity) to provide for therapeutic work for 
patients and members in Department health care facilities.
    (2) Notwithstanding any other provision of law, the Secretary may 
also furnish rehabilitative services under this subsection through 
contractual arrangements with nonprofit entities to provide for such 
therapeutic work for such patients. The Secretary shall establish 
appropriate fiscal, accounting, management, recordkeeping, and reporting 
requirements with respect to the activities of any such nonprofit entity 
in connection with such contractual arrangements.
    (c)(1) There is hereby established in the Treasury of the United 
States a revolving fund known as the Department of Veterans Affairs 
Special Therapeutic and Rehabilitation Activities Fund (hereinafter in 
this section referred to as the ``fund'') for the purpose of furnishing 
rehabilitative services authorized in subsection (b) of this section. 
Such amounts of the fund as the Secretary may determine to be necessary 
to establish and maintain operating accounts for the various 
rehabilitative services activities may be deposited in checking accounts 
in other depositaries selected or established by the Secretary.
    (2) All funds received by the Department under contractual 
arrangements made under subsection (b) of this section, or by nonprofit 
entities described in paragraph (2) of such subsection, shall be 
deposited in or credited to the fund, and the Secretary shall distribute 
out of the fund moneys to participants at rates not less than the wage 
rates specified in the Fair Labor Standards Act (29 U.S.C. 201 et seq.) 
and regulations prescribed thereunder for work of similar character.
    (3) The Under Secretary for Health shall prepare, for inclusion in 
the annual report submitted to Congress under section 529 of this title, 
a description of the scope and achievements of activities carried out 
under this section (including pertinent data regarding productivity and 
rates of distribution) during the prior twelve months and an estimate of 
the needs of the program of therapeutic and rehabilitation activities to 
be carried out under this section for the ensuing fiscal year.
    (d) In providing rehabilitative services under this chapter, the 
Secretary shall take appropriate action to make it possible for the 
patient to take maximum advantage of any benefits to which such patient 
is entitled under chapter 31, 34, or 35 of this title, and, if the 
patient is still receiving treatment of a prolonged nature under this 
chapter, the provision of rehabilitative services under this chapter 
shall be continued during, and coordinated with, the pursuit of 
education and training under such chapter 31, 34, or 35.
    (e) The Secretary shall prescribe regulations to ensure that the 
priorities set forth in section 1705 of this title shall be applied, 
insofar as practicable, to participation in therapeutic and 
rehabilitation activities carried out under this section.
    (f)(1) The Secretary may not consider any of the matters stated in 
paragraph (2) as a basis for the denial or discontinuance of a rating of 
total disability for purposes of compensation or pension based on the 
veteran's inability to secure or follow a substantially gainful 
occupation as a result of disability.
    (2) Paragraph (1) applies to the following:
        (A) A veteran's participation in an activity carried out under 
    this section.
        (B) A veteran's receipt of a distribution as a result of 
    participation in an activity carried out under this section.
        (C) A veteran's participation in a program of rehabilitative 
    services that (i) is provided as part of the veteran's care 
    furnished by a State home and (ii) is approved by the Secretary as 
    conforming appropriately to standards for activities carried out 
    under this section.
        (D) A veteran's receipt of payment as a result of participation 
    in a program described in subparagraph (C).

    (3) A distribution of funds made under this section and a payment 
made to a veteran under a program of rehabilitative services described 
in paragraph (2)(C) shall be considered for the purposes of chapter 15 
of this title to be a donation from a public or private relief or 
welfare organization.

(Added Pub. L. 87-574, Sec. 2(1), Aug. 6, 1962, 76 Stat. 308, Sec. 618; 
amended Pub. L. 94-581, title I, Sec. 105(a), Oct. 21, 1976, 90 Stat. 
2845; Pub. L. 98-543, title III, Sec. 303, Oct. 24, 1984, 98 Stat. 2748; 
Pub. L. 99-576, title II, Sec. 205, Oct. 28, 1986, 100 Stat. 3256; Pub. 
L. 102-54, Secs. 10, 14(b)(12), June 13, 1991, 105 Stat. 273, 284; 
renumbered Sec. 1718 and amended Pub. L. 102-83, Secs. 2(c)(3), 4(a)(3), 
(4), (b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 402, 404-406; 
Pub. L. 102-86, title V, Sec. 506(a)(1), Aug. 14, 1991, 105 Stat. 426; 
Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 Stat. 
1984; Pub. L. 102-585, title IV, Sec. 401, Nov. 4, 1992, 106 Stat. 4953; 
Pub. L. 103-446, title XII, Sec. 1201(i)(1), Nov. 2, 1994, 108 Stat. 
4688; Pub. L. 104-262, title I, Sec. 101(d)(7), Oct. 9, 1996, 110 Stat. 
3180.)

                       References in Text

    The Fair Labor Standards Act, referred to in subsec. (c)(2), 
probably means the Fair Labor Standards Act of 1938, act June 25, 1938, 
ch. 676, 52 Stat. 1060, as amended, which is classified generally to 
chapter 8 (Sec. 201 et seq.) of Title 29, Labor. For complete 
classification of this Act to the Code, see section 201 of Title 29 and 
Tables.


                               Amendments

    1996--Subsec. (e). Pub. L. 104-262 substituted ``section 1705'' for 
``section 1712(i)''.
    1994--Subsec. (c)(1). Pub. L. 103-446 substituted ``Department of 
Veterans Affairs'' for ``Department''.
    1992--Subsecs. (a), (b)(1), (c)(3). Pub. L. 102-405 substituted 
``Under Secretary for Health'' for ``Chief Medical Director''.
    Subsec. (f). Pub. L. 102-585 amended subsec. (f) generally. Prior to 
amendment, subsec. (f) read as follows:
    ``(1) Neither a veteran's participation in an activity carried out 
under this section nor a veteran's receipt of a distribution as a result 
of such participation may be considered as a basis for the denial or 
discontinuance of a rating of total disability for purposes of 
compensation or pension based on the veteran's inability to secure or 
follow a substantially gainful occupation as a result of disability.
    ``(2) A distribution of funds made under this section shall be 
considered for purposes of chapter 15 of this title to be a donation 
from a public or private relief or welfare organization.''
    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 618 of this 
title as this section.
    Subsec. (a). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted 
``Secretary'' for ``Administrator'' in two places.
    Pub. L. 102-83, Sec. 4(a)(3), (4), substituted ``Department'' for 
``Veterans' Administration''.
    Subsec. (b)(1). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted 
``Secretary'' for ``Administrator''.
    Pub. L. 102-83, Sec. 4(a)(3), (4), substituted ``Department'' for 
``Veterans' Administration''.
    Pub. L. 102-54, Sec. 10(a), substituted ``a contract or other 
arrangement with any appropriate source (whether or not an element of 
the Department of Veterans Affairs or of any other Federal entity)'' for 
``contractual arrangements with private industry or other sources 
outside the Veterans' Administration''.
    Subsec. (b)(2). Pub. L. 102-86 amended subsec. (b)(2) of this 
section as in effect before the redesignations made by Pub. L. 102-83, 
Sec. 5, by substituting ``arrangements'' for ``arangements'' in first 
sentence.
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator'' in two places.
    Subsec. (c)(1). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted 
``Secretary'' for ``Administrator'' in two places.
    Pub. L. 102-83, Sec. 4(a)(3), (4), substituted ``Department'' for 
``Veterans' Administration''.
    Pub. L. 102-54, Sec. 10(b), substituted ``furnishing rehabilitative 
services authorized in'' for ``carrying out the provisions of''.
    Subsec. (c)(2). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted 
``Secretary'' for ``Administrator''.
    Pub. L. 102-83, Sec. 4(a)(3), (4), substituted ``Department'' for 
``Veterans' Administration''.
    Subsec. (c)(3). Pub. L. 102-83, Sec. 2(c)(3), substituted ``section 
529'' for ``section 214''.
    Pub. L. 102-54, Sec. 14(b)(12), inserted ``and'' after 
``productivity''.
    Subsec. (d). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted 
``Secretary'' for ``Administrator''.
    Subsec. (e). Pub. L. 102-83, Sec. 5(c)(1), substituted ``1712(i)'' 
for ``612(i)''.
    Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for 
``Administrator''.
    1986--Subsec. (a). Pub. L. 99-576, Sec. 205(1), substituted ``may 
use'' for ``may utilize'', ``purposes. Such'' for ``purposes, at nominal 
remuneration, and such'', and ``use'' for ``utilization''.
    Subsec. (b)(1). Pub. L. 99-576, Sec. 205(2), struck out ``for 
remuneration'' after ``therapeutic work''.
    Subsec. (c)(2), (3). Pub. L. 99-576, Sec. 205(3), substituted 
``distribute'' for ``pay'' in par. (2), and substituted ``rates of 
distribution'' for ``and wage rates'' in par. (3).
    Subsec. (f). Pub. L. 99-576, Sec. 205(4), designated existing 
provisions as par. (1), substituted ``a distribution'' for 
``remuneration'', and added par. (2).
    1984--Subsec. (f). Pub. L. 98-543 added subsec. (f).
    1976--Subsec. (a). Pub. L. 94-581, Sec. 105(a)(1), (2), designated 
existing provisions as subsec. (a) and substituted ``In providing 
rehabilitative services under this chapter, the'' for ``The'' and 
``health care facilities'' for ``hospitals and domiciliaries''.
    Subsecs. (b) to (e). Pub. L. 94-581, Sec. 105(a)(3), added subsecs. 
(b) to (e).


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-581 effective Oct. 21, 1976, see section 211 
of Pub. L. 94-581, set out as a note under section 111 of this title.


   Demonstration Program of Compensated Work Therapy and Therapeutic 
                          Transitional Housing

    Section 7 of Pub. L. 102-54, as amended by Pub. L. 102-83, 
Sec. 5(c)(2), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-86, title V, 
Sec. 501, Aug. 14, 1991, 105 Stat. 424; Pub. L. 103-452, title I, 
Sec. 103(f), Nov. 2, 1994, 108 Stat. 4787; Pub. L. 104-110, title I, 
Sec. 102(b), Feb. 13, 1996, 110 Stat. 769, authorized Secretary of 
Veterans' Affairs, between Oct. 1, 1991, and Dec. 31, 1997, to carry out 
compensated work therapy and therapeutic transitional housing 
demonstration program, prior to repeal by Pub. L. 105-114, title II, 
Sec. 202(c)(1), Nov. 21, 1997, 111 Stat. 2287.


                          Settlement of Claims

    Section 105(b) of Pub. L. 94-581, as amended by Pub. L. 97-258, 
Sec. 4(b), Sept. 13, 1982, 96 Stat. 1067; Pub. L. 102-83, Sec. 6(a), 
Aug. 6, 1991, 105 Stat. 407, provided that:
    ``(1) The Secretary of Veterans Affairs may settle claims made by 
the Department of Veterans Affairs against any private nonprofit 
corporation organized under the laws of any State, for the use of 
facilities and personnel of the Department in work projects as a part of 
a therapeutic or rehabilitation program for patients and members in 
health care facilities of the Department, and to execute a binding 
release of all claims by the United States against any such corporation, 
in such amounts, and upon such terms and conditions as the Secretary 
considers appropriate.
    ``(2) For the purposes of this subsection, notwithstanding section 
3302 of title 31, or any other provision of law, the Secretary may 
utilize any funds received under any settlement made pursuant to 
paragraph (1) of this subsection for any purpose agreed upon by the 
Secretary and such corporation.''

                  Section Referred to in Other Sections

    This section is referred to in sections 113, 1771 of this title.
