est and shall be repaid in such installments as may be determined by the Administrator, by proper deductions from future payments of subsistence allowance, compensation, pension, or retirement pay. (Amended P.L. 92-540, § 101 (3); P.L. 94-502, § 104 (6).)

§ 1508. Regulations to promote good conduct

The Administrator shall prescribe such rules and regulations as the Administrator deems necessary in order to promote good conduct and cooperation on the part of veterans who are receiving vocational rehabilitation. Penalties for the breach of such rules and regulations may extend to (1) forfeiture by the offender for three months of subsistence allowance otherwise payable, and (2) permanent disqualification for further vocational rehabilitation. (Amended P.L. 94-502, § 104 (7).) §1509. Books, supplies, and equipment

(a) Any books, supplies, or equipment furnished a veteran under this chapter shall be deemed released to the veteran, except that if, because of fault on the veteran's part, the veteran fails to complete the course of vocational rehabilitation, the veteran may be required by the Administrator to return any or all of such books, supplies, or equipment not actually expended, or to repay the reasonable value thereof. (Amended P.L. 94-502, § 104 (8).)

(b) Returned books, supplies, and equipment may be turned in to educational or training institutions for credit under such terms as may be approved by the Administrator, or may be disposed of in such other manner as the Administrator may approve. (Amended P.L. 94–502, § 104 (9).)

-81510. Vocational rehabilitation for hospitalized persons

Vocational rehabilitation may be afforded under this chapter to any a person who is hospitalized pending final discharge from the active military, naval, or air service, if such person is qualified for such vocational rehabilitation in every respect except for discharge. No subsistence allowance shall be payable to any person while such person is receiving vocational rehabilitation solely by reason of this section. (Amended P.L. 94-502, § 104 (10).)

§ 1511. Training and training facilities

The Administrator shall prescribe and provide vocational rehabilitation to veterans eligible therefor. For such purpose, the Administrator may

(1) employ additional personnel and experts, as the Administrator deems necessary;

(2) utilize and extend Veterans' Administration facilities; (3) utilize facilities of any agency of the United States, or any facilities maintained by joint Federal and State contributions;

(4) provide, by agreement or contract with public or private institutions or establishments, for such additional training facilities as may be suitable and necessary;

(5) cooperate with and employ the facilities of other governmental and State employment agencies for the purpose of placing in gainful employment persons who have received vocational rehabilitation.

Notwithstanding any other provision of law, the facilities of any agency of the United States, as designated in clause (3) of this section, may be used to provide unpaid training or work experience as part or all of a veteran's program of vocational rehabilitation when the Administrator determines such training or work experience to be neces sary to accomplish vocational rehabilitation. While pursuing such training or work experience, an uncompensated veteran shall be deemed an employee of the United States for the purposes of the benefits of chapter 81 of title 5 but not for the purposes of laws administered by the Civil Service Commission. (Amended P.L. 94-502, §§ 103, 104 (11).)

CHAPTER 32-POST-VIETNAM ERA VETERANS'

EDUCATIONAL ASSISTANCE 1

SUBCHAPTER I-PURPOSE; DEFINITIONS

Sec.

1601. Purpose.

1602. Definitions.

SUBCHAPTER II—ELIGIBILITY; CONTRIBUTIONS; AND MATCHING FUND

1621. Eligibility.

1622. Contributions; matching fund.

1623. Refunds of contributions upon disenrollment.

1624. Death of participant.

1625. Discharge or release under conditions which would bar use of benefits.

It is the purpose of this chapter (1) to provide educational assistance to those men and women who enter the Armed Forces after

1 Section 408, Public Law 94-502, provides:

"SEC. 408. (a) (1) No individual on active duty in the Armed Forces may initially enroll in the educational assistance program provided for in chapter 32 of title 38, United States Code (as added by section 404 of this Act) after December 31. 1981, unless

(A) before June 1, 1981, the President submits to both Houses of Congress a written recommendation that such program continue to be open for new enrollments: and (B) before the close of the 60-day period after the day on which the President submits to Congress the recommendation described in subparagraph (A), neither the House of Representatives nor the Senate adopts, by an affirmative vote of a majority of those present and voting in that House, a resolution which in substance disapproves such recommendation. (2) For purposes of computing the 60-day period referred to in paragraph (1)(B), there shall be excluded

(A) the days on which either House is not in session because of an adjournment of more than 3 days to a day certain or an adjournment of the Congress sine die, and (B) any Saturday and Sunday, not excluded under the preceding subparagraph. when either House is not in session.

The recommendation referred to in paragraph (1)(A) shall be delivered to both Houses of Congress on the same day and shall be delivered to the Clerk of the House of Represent atives if the House is not in session and to the Secretary of the Senate if the Senate is not in session.

(b) If new enrollments after December 31, 1981, in the educational assistance program provided for in such chapter 32 are authorized after the application of the provisions of subsection (a). then effective January 1, 1982. section 1622 (b) of title 38, United States Code, is amended by striking out 'Veterans' Administration' and inserting in lieu thereof Department of Defense'."

December 31, 1976, (2) to assist young men and women in obtaining an education they might not otherwise be able to afford, and (3) to promote and assist the all volunteer military program of the United States by attracting qualified men and women to serve in the Armed Forces. (Added P.L. 94-502, § 404.)

§ 1602. Definitions

For the purposes of this chapter

(1) (A) The term "eligible veteran" means any veteran who (i) initially entered military service on or after January 1, 1977, served on active duty for a period of more than 180 days commencing on or after such date, and was discharged or released there from under conditions other than dishonorable, or (ii) initially entered military service on or after January 1, 1977, and was discharged or released from active duty after such date for a service-connected disability. (B) The requirement of discharge or release, prescribed in subparagraph (A), shall be waived in the case of any participant who has completed his or her first obligated period of active duty (which began after December 31, 1976) or 6 years of active duty (which began after December 31, 1976), whichever period is less.

(C) For the purposes of subparagraphs (A) and (B), the term "active duty" does not include any period during which an individual (i) was assigned full time by the Armed Forces to a civilian institution for a course of education which was substantially the same as established courses offered to civilians, (ii) served as a cadet or midshipman at one of the service academies, or (iii) served under the provisions of section 511(d) of title 10 pursuant to an enlistment in the Army National Guard or the Air National Guard, or as a Reserve for service in the Army Reserve, Naval Reserve, Air Force Reserve, Marine Corps Reserve, or Coast Guard Reserve.

(2) The terms "program of education" and "educational institution" shall have the same meaning ascribed to them in sections 1652(b) and 1652 (c), respectively, of this title.

(3) The term "participant" is a person who is participating in the educational benefits program established under this chapter. (Added P.L. 94-502, § 404.)

Subchapter II-Eligibility; Contributions; and Matching Fund §1621. Eligibility

(a) Each person entering military service on or after January 1, 1977, shall have the right to enroll in the educational benefits program provided by this chapter (hereinafter in this chapter referred to as the "program" except where the text indicates otherwise) at any time during such person's service on active duty. When a person elects to enroll in the program, such person must participate for at least 12 consecutive months before disenrolling or suspending participation. (Added P.L. 94-502, § 404.)

(b) The requirement for 12 consecutive months of participation required by subsection (a) of this section shall not apply when (1) the participant suspends participation or disenrolls from the program because of personal hardship as defined in regulations issued jointly by the Administrator and the Secretary of Defense (hereinafter in this chapter referred to as the "Secretary"), or (2) the participant is discharged or released from active duty. (Added P.L. 94-502, § 404.)

(c) A participant shall be permitted to suspend participation of disenroll from the program at the end of any 12-consecutive-month period of participation. If participation is suspended, the participant shall be eligible to make additional contributions to the program under such terms and conditions as shall be prescribed by regulations issued jointly by the Administrator and the Secretary. (Added P.L. 94–502. § 404.)

(d) If a participant disenrolls from the program, such participant forfeits any entitlement to benefits under the program except as provided in subsection (e) of this section. A participant who disenrolls from the program is eligible for a refund of such participant's contributions as provided in section 1623 of this title. (Added P.L. 94–502, $ 404.)

(e) A participant who has disenrolled may be permitted to reenroll in the program under such conditions as shall be prescribed jointly by the Administrator and the Secretary. (Added P.L. 94-502, § 404.) § 1622. Contributions; matching fund

(a) Each person electing to participate in the program shall agree to have a monthly deduction made from such person's military par Such monthly deduction shall be in any amount not less than $50 nor more than $75 except that the amount must be divisible by 5. Any such amount contributed by the participant or contributed by the Secretary pursuant to subsection (c) of this section shall be deposited in a deposit fund account entitled the "Post-Vietnam Era Veterans Education Account" (hereinafter in this chapter referred to as the "fund") to be established in the Treasury of the United States. Contributions made by the participant shall be limited to a maximum of $2,700 (Added P.L. 94-502, § 404.)

(b) Except as otherwise provided in this chapter, each monthly contribution made by a participant under subsection (a) shall entitle the participant to matching funds from the Veterans' Administration at the rate of $2 for each $1 contributed by the participant. (Added P.L. 94-502, § 404.)

(c) The Secretary is authorized to contribute to the fund of any participant such contributions as the Secretary deems necessary of appropriate to encourage persons to enter or remain in the Armed Forces. The Secretary is authorized to issue such rules and regulations as the Secretary deems necessary or appropriate to implement the provisions of this subsection. (Added P.L. 94-502, § 404.)

§ 1623. Refunds of contributions upon disenrollment

(a) Contributions made to the program by a participant may refunded only after the participant has disenrolled from the program or as provided in section 1624. (Added P.L. 94-502. § 404.)

(b) If a participant disenrolls from the program prior to discharge or release from active duty, such participant's contributions will be refunded on the date of the participant's discharge or release from active duty or within 60 days of receipt of notice by the Administrator of the participant's discharge or disenrollment, except that refunds may be made earlier in instances of hardship or other good reason as prescribed in regulations issued jointly by the Administrator and the Secretary. (Added P.L. 94-502, § 404.)

(c) If a participant disenrolls from the program after discharge or release from active duty, the participant's contributions shall be refunded within 60 days of receipt of an application for a refund from the participant. (Added P.L. 94-502, § 404.)

(d) In the event the participant (1) dies while on active duty, (2) dies after discharge or release from active duty, or (3) disenrolls or is disenrolled from the program without having utilized any entitlement, the participant may have accrued under the program, or, in the event the participant utilizes part of such participant's entitlement and disenrolls or is disenrolled from the program, the amount contributed by the Secretary under the authority of section 1622 (c) remaining in the fund shall be refunded to the Secretary. (Added P.L. 94-502, § 404.) § 1624. Death of participant

(a) If a participant dies, the amount of such participant's unused contributions to the fund shall be paid (1) to the beneficiary or beneficiaries designated by such participant under such participant's Servicemen's Group Life Insurance policy, or (2) to the participant's estate if no beneficiary has been designated under such policy or if the participant is not insured under the Servicemen's Group Life Insurance program. (Added P.L. 94-502, § 404.)

(b) If a participant dies after having been discharged or released from active duty and before using any or all of the contributions which the participant made to the fund, such unused contributions shall be paid as prescribed in subsection (a) of this section. (Added =P.L. 94-502, § 404.)

§ 1625. Discharge or release under conditions which would bar the use of benefits

If a participant in the program is discharged or released from active duty under dishonorable conditions, such participant is automatically disenrolled and any contributions made by such participant shall be refunded to such participant on the date of such participant's discharge or release from active duty or within 60 days from receipt. of notice by the Administrator of such discharge or release, whichever is later. (Added P.L. 94-502, § 404.)

Subchapter III-Entitlement; Duration

§ 1631. Entitlement; loan eligibility

(a) (1) A participant shall be entitled to a maximum of 36 monthly benefit payments (or their equivalent in the event of part-time benefit payments).

(2) The amount of the monthly payment to which any eligible veteran is entitled shall be ascertained by (A) adding all contributions made to the fund by the eligible veteran, (B) multiplying the sum by 3, (C) adding all contributions made to the fund for such veteran by the Secretary, and (D) dividing the sum by the lesser of 36 or the number of months in which contributions were made by such veteran. (3) Payment of benefits under this chapter may be made only for periods of time during which an eligible veteran is actually enrolled in and pursuing an approved program of education and, except as provided in paragraph (4), only after an eligible veteran has been discharged or released from active duty.

37-945 O 79-13