
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: 38USC3690]

 
                      TITLE 38--VETERANS' BENEFITS
 
               PART III--READJUSTMENT AND RELATED BENEFITS
 
           CHAPTER 36--ADMINISTRATION OF EDUCATIONAL BENEFITS
 
                 SUBCHAPTER II--MISCELLANEOUS PROVISIONS
 
Sec. 3690. Overcharges by educational institutions; 
        discontinuance of allowances; examination of records; false or 
        misleading statements
        

                 Overcharges by Educational Institutions

    (a) If the Secretary finds that an educational institution has--
        (1) charged or received from any eligible veteran or eligible 
    person pursuing a program of education under this chapter or chapter 
    34 or 35 of this title any amount for any course in excess of the 
    charges for tuition and fees which such institution requires 
    similarly circumstanced nonveterans not receiving assistance under 
    such chapters who are enrolled in the same course to pay, or
        (2) instituted, after October 24, 1972, a policy or practice 
    with respect to the payment of tuition, fees, or other charges in 
    the case of eligible veterans and the Secretary finds that the 
    effect of such policy or practice substantially denies to veterans 
    the benefits of the advance allowances under such section,

the Secretary may disapprove such educational institution for the 
enrollment of any eligible veteran or eligible person not already 
enrolled therein under this chapter or chapter 31, 34, or 35 of this 
title.

                      Discontinuance of Allowances

    (b)(1) The Secretary may discontinue the educational assistance 
allowance of any eligible veteran or eligible person if the Secretary 
finds that the program of education or any course in which the veteran 
or person is enrolled fails to meet any of the requirements of this 
chapter or chapter 34 or 35 of this title, or if the Secretary finds 
that the educational institution offering such program or course has 
violated any provision of this chapter or chapter 34 or 35 of this 
title, or fails to meet any of the requirements of such chapters.
    (2) Except as provided in paragraph (3) of this subsection, any 
action by the Secretary under paragraph (1) of this subsection to 
discontinue (including to suspend) assistance provided to any eligible 
veteran or eligible person under this chapter or chapter 31, 32, 34, or 
35 of this title shall be based upon evidence that the veteran or 
eligible person is not or was not entitled to such assistance. Whenever 
the Secretary so discontinues any such assistance, the Secretary shall 
concurrently provide written notice to such veteran or person of such 
discontinuance and that such veteran or person is entitled thereafter to 
a statement of the reasons for such action and an opportunity to be 
heard thereon.
    (3)(A) The Secretary may suspend educational assistance to eligible 
veterans and eligible persons already enrolled, and may disapprove the 
enrollment or reenrollment of any eligible veteran or eligible person, 
in any course as to which the Secretary has evidence showing a 
substantial pattern of eligible veterans or eligible persons, or both, 
who are receiving such assistance by virtue of their enrollment in such 
course but who are not entitled to such assistance because (i) the 
course approval requirements of this chapter are not being met, or (ii) 
the educational institution offering such course has violated one or 
more of the recordkeeping or reporting requirements of this chapter or 
chapter 30, 32, 34, or 35 of this title.
    (B) Action may be taken under subparagraph (A) of this paragraph 
only after--
        (i) the Secretary provides to the State approving agency 
    concerned and the educational institution concerned written notice 
    of any such failure to meet such approval requirements and any such 
    violation of such recordkeeping or reporting requirements;
        (ii) such institution refuses to take corrective action or does 
    not within 60 days after such notice (or within such longer period 
    as the Secretary determines is reasonable and appropriate) take 
    corrective action; and
        (iii) the Secretary, not less than 30 days before taking action 
    under such subparagraph, provides to each eligible veteran and 
    eligible person already enrolled in such course written notice of 
    the Secretary's intent to take such action (and the reasons 
    therefor) unless such corrective action is taken within such 60 days 
    (or within such longer period as the Secretary has determined is 
    reasonable and appropriate), and of the date on which the Secretary 
    intends to take action under such subparagraph.

                         Examination of Records

    (c) Notwithstanding any other provision of law, the records and 
accounts of educational institutions pertaining to eligible veterans or 
eligible persons who received educational assistance under this chapter 
or chapter 31, 32, 34, or 35 of this title, as well as the records of 
other students which the Secretary determines necessary to ascertain 
institutional compliance with the requirements of such chapters, shall 
be available for examination by duly authorized representatives of the 
Government.

                     False or Misleading Statements

    (d) Whenever the Secretary finds that an educational institution has 
willfully submitted a false or misleading claim, or that a veteran or 
person, with the complicity of an educational institution, has submitted 
such a claim, the Secretary shall make a complete report of the facts of 
the case to the appropriate State approving agency and, where deemed 
advisable, to the Attorney General of the United States for appropriate 
action.

(Added Pub. L. 92-540, title III, Sec. 316(2), Oct. 24, 1972, 86 Stat. 
1088, Sec. 1790; amended Pub. L. 94-502, title V, Secs. 510, 513(a)(19), 
Oct. 15, 1976, 90 Stat. 2401, 2403; Pub. L. 95-202, title III, Sec. 306, 
Nov. 23, 1977, 91 Stat. 1445; Pub. L. 96-466, title VIII, Sec. 801(f), 
Oct. 17, 1980, 94 Stat. 2216; Pub. L. 97-295, Sec. 4(59), Oct. 12, 1982, 
96 Stat. 1309; Pub. L. 97-306, title II, Sec. 207, Oct. 14, 1982, 96 
Stat. 1435; Pub. L. 101-237, title IV, Sec. 423(a)(9), (b)(1)(A), (2), 
Dec. 18, 1989, 103 Stat. 2092; renumbered Sec. 3690, Pub. L. 102-83, 
Sec. 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102-86, title V, 
Sec. 506(b)(1), Aug. 14, 1991, 105 Stat. 426.)


                            Prior Provisions

    Provisions similar to those comprising subsec. (a) were contained in 
former section 1685, as added by Pub. L. 89-358, Sec. 2, Mar. 3, 1966, 
80 Stat. 19, Sec. 1684; renumbered Pub. L. 90-77, title III, 
Sec. 304(a), Aug. 31, 1967, 81 Stat. 186, and former section 1734, Pub. 
L. 85-857, Sept. 2, 1958, 72 Stat. 1199; Pub. L. 89-358, Sec. 4(m), Mar. 
3, 1966, 80 Stat. 25; provisions similar to those comprising subsec. (b) 
were contained in former section 1687, as added by Pub. L. 89-358, 
Sec. 2, Mar. 3, 1966, 80 Stat. 19, Sec. 1686; renumbered Pub. L. 90-77, 
title III, Sec. 304(a), Aug. 31, 1967, 81 Stat. 186; and former section 
1736, Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1199; Pub. L. 88-126, 
Sec. 2, Sept. 23, 1963, 77 Stat. 162; Pub. L. 89-358, Sec. 4(o), Mar. 3, 
1966, 80 Stat. 25; provisions similar to those comprising subsec. (c) 
were contained in former section 1786, as added by Pub. L. 89-358, 
Sec. 3(b), Mar. 3, 1966, 80 Stat. 23; and provisions similar to those 
comprising subsec. (d) were contained in former section 1787, as added 
by Pub. L. 89-358, Sec. 3(b), Mar. 3, 1966, 80 Stat. 23; prior to the 
general revision by Pub. L. 92-540.


                               Amendments

    1991--Pub. L. 102-83 renumbered section 1790 of this title as this 
section.
    Subsec. (b). Pub. L. 102-86 made technical amendment to directory 
language of Pub. L. 101-237, Sec. 423(b)(2). See 1989 Amendment note 
below.
    1989--Subsec. (a). Pub. L. 101-237, Sec. 423(a)(9)(A), (b)(1)(A), 
substituted ``Secretary'' for ``Administrator'' wherever appearing and 
struck out ``and prepayment'' after ``advance'' in par. (2).
    Subsec. (b). Pub. L. 101-237, Sec. 423(a)(9)(B), (C), (b)(1)(A), 
substituted ``Secretary'' for ``Administrator'' wherever appearing, 
inserted ``30,'' before ``32'' in par. (3)(A), and in par. (3)(B) 
substituted ``(B)'' for ``(B)(i)'' and redesignated subcls. (I), (II), 
and (III) as cls. (i), (ii), and (iii), respectively.
    Pub. L. 101-237, Sec. 423(b)(2), as amended by Pub. L. 102-86, 
substituted ``Secretary's'' for ``Administrator's'' in par. (3)(B)(iii).
    Subsecs. (c), (d). Pub. L. 101-237, Sec. 423(b)(1)(A), substituted 
``Secretary'' for ``Administrator'' wherever appearing.
    1982--Subsec. (a). Pub. L. 97-295, Sec. 4(59)(A), substituted 
``after October 24, 1972'' for ``after the effective date of section 
1780 of this title'' in par. (2), and struck out the comma after ``or 
35'' in provisions following par. (2).
    Subsec. (b)(1). Pub. L. 97-295, Sec. 4(59)(B), inserted ``of this 
title'' after ``provision of this chapter or chapter 34 or 35''.
    Subsec. (b)(2). Pub. L. 97-306, Sec. 207(1), substituted ``Except as 
provided in paragraph (3) of this subsection, any'' for ``Any''.
    Subsec. (b)(3). Pub. L. 97-306, Sec. 207(2), added par. (3).
    1980--Subsec. (b)(2). Pub. L. 96-466 substituted ``for'' for 
``therefor''.
    1977--Subsec. (b). Pub. L. 95-202 designated existing provisions as 
par. (1) and added par. (2).
    1976--Subsec. (a). Pub. L. 94-502, Sec. 513(a)(19), substituted 
``the Administrator may disapprove'' for ``he may disapprove''.
    Subsec. (b). Pub. L. 94-502, Sec. 513(a)(19), substituted ``if the 
Administrator finds'' for ``if he finds'' in two places.
    Subsec. (c). Pub. L. 94-502, Sec. 510, substituted ``chapter 31, 32, 
34, or 35'' for ``chapter 31, 34, or 35'' and required the records of 
other students which the Administrator determines necessary to ascertain 
institutional compliance to be available for inspection.
    Subsec. (d). Pub. L. 94-502, Sec. 513(a)(19), substituted ``the 
Administrator shall make'' for ``he shall make''.


                    Effective Date of 1991 Amendment

    Section 506(b)(1) of Pub. L. 102-86 provided that the amendment made 
by that section is effective as of Dec. 18, 1989.


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-466 effective Oct. 1, 1980, see section 
802(h) of Pub. L. 96-466, set out as a note under section 3452 of this 
title.


                    Effective Date of 1977 Amendment

    Amendment by Pub. L. 95-202 effective Nov. 23, 1977, see section 501 
of Pub. L. 95-202, set out as a note under section 101 of this title.


                    Effective Date of 1976 Amendment

    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.
