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"Sec.

"1766. Overpayments to eligible persons.

"1767. Examination of records.

"1768. False or misleading statements.

"SUBCHAPTER VII-STATE APPROVING AGENCIES

"1771. Designation.

"1772. Approval of courses.

"1773. Cooperation.

"1774. Reimbursment of expenses.

"1775. Approval of accredited courses.

"1776. Approval of nonaccredited courses. "1777. Notice of approval of courses.

"1778. Disapproval of courses."

(11) striking out the term "eligible persons" in sections 1773 (a) and 1774 and inserting in lieu thereof "eligible persons or

veterans".

(b) Title 38 of the United States Code is further amended by adding immediately following section 1778, the following new subchapter:

"SUBCHAPTER II-MISCELLANEOUS PROVISIONS

"§ 1781. Nonduplication of benefits

"No educational assistance allowances or special training allowance shall be paid on behalf of any eligible person or veteran under chapter 34 or 35 of this title for any period during which such person or veteran is enrolled in and pursuing a program of education or course paid for by the United States under any provision of law other than such chapters, where the payment of an allowance would constitute a duplication of benefits paid from the Federal Treasury to the eligible person or veteran or to his parent or guardian in his behalf. "§ 1782. Control by agencies of the United States

"No department, agency, or officer of the United States, in carrying out this chapter, shall exercise any supervision or control, whatsoever, over any State approving agency, or State educational agency, or any educational institution. Nothing in this section shall be deemed to prevent any department, agency, or officer of the United States from exercising any supervision or control which such department, agency, or officer is authorized by law to exercise over any Federal educational institution or to prevent the furnishing of education under chapter 34 or 35 of this title in any institution over which supervision or control is exercised by such other department, agency, or officer under authority of law.

"§ 1783. Conflicting interests

"(a) Every officer or employee of the Veterans' Administration 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 chapter 34 or 35 shall be immediately dismissed from his office or employment.

"(b) If the Administrator finds that any person who is an officer or employee of a State approving agency has, while he 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 chapter 34 or 35 of this title, he shall discontinue making payments under section 1774 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 Veterans' Administration or the State approving agency owns an interest in, or receives any wages, salary, dividends, profits, gratuities, or services from, such institution. "(d) The Administrator 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 Veterans' Administration or of a State approving agency, if he 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.

"§ 1784. Reports by institutions

"Educational institutions shall, without delay, report to the Administrator in the form prescribed by him, the enrollment, interruption, and termination of the education of each eligible person or veteran enrolled therein under chapter 34 or 35.

"§ 1785. Overpayments to eligible persons or veterans

"Whenever the Administrator finds that an overpayment has been made to an eligible person or veteran as the result of (1) the willful or negligent failure of an educational institution to report, as required by chapter 34 or 35 of this title and applicable regulations, to the Veterans' Administration excessive absences from a course, or discontinuance or interruption of a course by the eligible person or veteran, or (2) false certification by an educational institution, the amount of such overpayment shall constitute a liability of such institution, and may be recovered in the same manner as any other debt due the United States. Any amount so collected shall be reimbursed if the overpayment is recovered from the eligible person or veteran. This section shall not preclude the imposition of any civil or criminal liability under under this or any other law.

"S 1786. Examination of records

"The records and accounts of educational institutions pertaining to eligible persons or veterans who received education under chapter 34 or 35 of this title shall be available for examination by duly authorized representatives of the Government.

"§ 1787. False or misleading statements

"Whenever the Administrator finds that an educational institution has willfully submitted a false or misleading claim, or that a person or veteran, with the complicity of an educational institution, has submitted such a claim, he 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.

"§ 1788. Advisory committee

"There shall be an advisory committee formed by the Administrator which shall be composed of persons who are eminent in their respective fields of education, labor, and management, and of representatives of the various types of institutions and establishments furnishing vocational rehabilitation under chapter 31 of this title or education to eligible persons or veterans enrolled under chapter 34 or 35 of this title. The Commissioner of Education and the Administrator, Manpower Administration, Department of Labor, shall be ex officio members of the advisory committee. The Administrator shall advise and consult with the committee from time to time with respect to the administration of this chapter and chapters 31, 34, and 35 of this title, and the committee may make such reports and recommendations as it deems desirable to the Administrator and to the Congress. "§ 1789. Institutions listed by Attorney General

"The Administrator shall not approve the enrollment of, or payment of an additional assistance allowance to, any eligible veteran or eligible person under chapter 34 or 35 of this title in any course in an educational institution while it is listed by the Attorney General under section 12 of Executive Order 10450.

"S1790. Use of other Federal agencies

"In carrying out his functions under this chapter or chapter 34 or 35 of this title, the Administrator may utilize the facilities and services of any other Federal department or agency. Any such utilization shall be pursuant to proper agreement with the Federal department or agency concerned; and payment to cover the cost thereof shall be made either in advance or by way of reimbursement, as may be provided in such agreement."

SEC. 4. (a) Chapter 33 of title 38, United States Code, is hereby repealed.

(b) Nothing in this Act or any amendment or repeal made by it, shall affect any right or liability (civil or criminal) which matured under chapter 33 of title 38 before the date of enactment of this Act; and all offenses committed, and all penalties and forfeitures incurred, under any provision of law amended or repealed by this Act, may be punished or recovered, as the case may be, in the same manner and with the same effect as if such amendments or repeals had not been made.

(c) The analyses of title 38, United States Code, and of part III thereof, are both amended by (1) striking out

"33. Education of Korean Conflict Veterans..

(2) inserting in lieu thereof,

"34. Veterans' Educational Assistance___

1601";

1650";

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(d) Section 101 of such title 38, United States Code, is amended. by adding the following sentence to paragraph (20) thereof: "For the purpose of section 903 and chapters 34 and 35 of this title, such term also includes the Canal Zone."

(e) Section 102(a) (2) of such title 38 is amended by striking out "Except for the purposes of chapter 33 of this title, dependency" and inserting in lieu thereof "Dependency".

(f) Section 102(b) of such title 38 is amended by striking out "(except chapters 19 and 33)", and inserting in lieu thereof, "(except chapter 19)".

(g) Section 111(a) of such title 38 is amended by striking out "33" and inserting in lieu thereof "34".

(h) Section 211 (a) of such title 38 is amended by striking out "755, 784, 1661, 1761" and inserting in lieu thereof "775, 784".

(i) Section 903 (b) of such title 38 is amended by deleting the last sentence thereof.

(j) Section 1701 of such title 38 is amended (1) by striking out. "1013(c) (1) of title 50" in subsection (a) (3) (C) and inserting in lieu thereof "511(d) of title 10" (2) by striking out paragraphs (8) and (9) in subsection (a) thereof and redesignating paragraph (10) of such subsection as paragraph (8) and (3) by striking out "and prior to the end of the induction period" in subsections (a) (1) and (d)

thereof.

(k) Section 1711 (b) of such title 38 is amended by striking out "33" and inserting in lieu thereof "34", and by inserting immediately before the period at the end thereof the following: "or under chapter 33 of this title as in effect before February 1, 1965".

(1) Section 1731 of title 38, United States Code, is amended by striking out subsection (c) thereof and inserting immediately after subsection (b) the following new subsections:

“(c) The Administrator may, pursuant to such regulations as he may prescribe, determine enrollment in, pursuit of, and attendance at, any program of education or course by an eligible person for any period for which an educational assistance allowance is paid on behalf of such eligible person under this chapter for pursuing such program

or course.

"(d) No educational assistance allowance shall be paid on behalf of an eligible person enrolled in a course in an educational institution which does not lead to a standard college degree for any period until the Administrator shall have received

"(1) from the eligible person a certification as to his actual attendance during such period; and

"(2) from the educational institution, a certification, or an endorsement on the eligible person's certificate, that he was enrolled in and pursuing a course of education during such period. "(e) Educational assistance allowances shall be paid as soon as practicable after the Administrator is assured of the eligible person's enrollment in and pursuit of the program of education for the period for which such allowance is to be paid."

(m) Section 1734 of such title 38 is amended by (1) striking out "33" in subsection (a) and inserting in lieu thereof "34", and (2) striking out "1634" in subsection (b) and inserting in lieu thereof "1684".

(n) Section 1735 of such title 38 is amended to read as follows: "An eligible person shall receive the benefits of this chapter while enrolled in a course of education offered by an educational institution only if such course (1) is approved in accordance with the provisions of subchapter I of chapter 36 of this title, or (2) is approved for the enrollment of the particular individual under the provisions of section 1737 of this title."

(0) Section 1736 of such title 38 is amended by (1) striking out "(a)", (2) striking out all of subsection (b) thereof, and (3) inserting after the phrase "this.chapter", both times it appears, the following: ", or of chapter 36 of this title,".

(p) Section 3013 of this title 38 is amended by striking out "33" and inserting in lieu thereof "34".

GUARANTEED HOME AND FARM LOANS

SEC. 5. (a) Chapter 37 of title 38 of the United States Code is amended by inserting immediately after section 1817 the following new section:

"§ 1818. Veterans who serve after January 31, 1955

"(a) Each eligible veteran, as defined in paragraphs (1) and (2) of subsection (a) of section 1652 of this title, shall be eligible for the benefits of this chapter (except sections 1813 and 1815, and business loans under section 1814, of this title), subject to the provisions of this section.

"(b) Entitlement under subsection (a), (1) shall cancel any unused entitlement under other provisions of this chapter derived from service during World War II or the Korean conflict, and (2) shall be reduced by the amount by which entitlement from service during World War II or the Korean conflict has been used to obtain a direct, guaranteed, or insured loan

"(A) on real property which the veteran owns at the time of application; or

(B) as to which the Administrator has incurred actual liability or loss, unless in the event of loss or the incurrence and payment of such liability by the Administrator the resulting indebtedness has been paid in full.

"(c) (1) Entitlement to the benefits of this section will expire as follows:

"(A) Ten years from the date of discharge or release from the last period of active duty of the veteran, any part of which occurred after January 31, 1955, plus an additional period equal to one year for each three months of active duty performed by the veteran after such date, except that entitlement shall not continue in any case after twenty years from the date of the veteran's discharge or release from his last period of active duty, nor shall entitlement expire in any case prior to the date ten years after the date of enactment of this Act; or

"(B) Twenty years from the date of the veteran's discharge or release for a service-connected disability from a period of active duty, any part of which occurred after January 31, 1955.

"(C) Direct loans authorized by this section shall not be made after January 31, 1975, except pursuant to commitments issued by the Administrator on or before that date.

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