Book G, Supplement No. 70

Custom Federal Regulations Service™

This is supplemental material

for Book G of your set of

Federal Regulations

Title 38, Part 21

Vocational Rehabilitation and Education

Veterans Benefits Administration

Supplement No. 70

Covering period of Federal Register issues

through May 23, 2006

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GENERAL INSTRUCTIONS

Custom Federal Regulations Service™

Supplemental Materials for Book G

Code of Federal Regulations

Title 38, Part 21

Vocational Rehabilitation and Education

Veterans Benefits Administration

Supplement No. 70

25 May 2006

Covering the period of Federal Register issues

through May 23, 2006

When Book G was originally prepared, it was current through final regulations published in the Federal Register of 25 February 1992. These supplemental materials are designed to keep your regulations up to date. You should file the attached pages immediately, and record the fact that you did so on the Supplement Filing Record which is at page G-8 of Book G, Vocational Rehabilitation and Education.

To ensure accuracy and timeliness of your materials,

it is important that you follow these simple procedures:

1. Always file your supplemental materials immediately upon receipt.

2. Before filing, always check the Supplement Filing Record (page G-8) to be sure that all prior supplements have been filed. If you are missing any supplements, contact the Veterans Benefits Administration at the address listed on page G-2.

3. After filing, enter the relevant information on the Supplement Filing Record sheet (page G-8)—the date filed, name/initials of filer, and date through which the Federal Register is covered.

4. If as a result of a failure to file, or an undelivered supplement, you have more than one supplement to file at a time, be certain to file them in chronological order, lower number first.

5. Always retain the filing instructions (simply insert them at the back of the book) as a backup record of filing and for reference in case of a filing error.

6. Be certain that you permanently discard any pages indicated for removal in the filing instructions in order to avoid confusion later.

To execute the filing instructions, simply remove and throw away the pages listed under Remove These Old Pages, and replace them in each case with the corresponding pages from this supplement listed under Add These New Pages. Occasionally new pages will be added without removal of any old material (reflecting new regulations), and occasionally old pages will be removed without addition of any new material (reflecting rescinded regulations)—in these cases the word None will appear in the appropriate column.

FILING INSTRUCTIONS

Book G, Supplement No. 70

May 25, 2006

Remove theseAdd theseSection(s)

old pagesnew pagesAffected

Do not file this supplement until you confirm that all prior supplements have been filed

G-41 to G-42G-41 to G-42Index to Book G

21.50-1 to 21.50-221.50-1 to 21.50-2§21.50

21.4009-2 to 21.4009-321.4009-2 to 21.4009-3§21.4009

21.6001-1 to 21.6005-121.6001-1 to 21.6005-1Tech. corr.; Table of

Contents, Subpart I

21.6054-2 to 21.6058-121.6054-2 to 21.6058-2§21.6056

21.6420-1 to 21.6420-221.6420-1 to 21.6420-2§21.6420

21.6521-1 to 21.6525-121.6521-1 to 21.6525-1§21.6521

21.7550-1 to 21.7550-421.7550-1 to 21.7550-4§21.7550

Be sure to complete the

Supplement Filing Record (page G-8)

when you have finished filing this material.

HIGHLIGHTS

Book G, Supplement No. 70

May 25, 2006

Supplement Highlights references: Where substantive changes are made in the text of regulations, the paragraphs of Highlights sections are cited at the end of the relevant section of text. Thus, if you are reading §3.263, you will see a note at the end of that section which reads: “Supplement Highlights references—6(2).” This means that paragraph 2 of the Highlights section in Supplement No. 6 contains information about the changes made in §3.263. By keeping and filing the Highlights sections, you will have a reference source explaining all substantive changes in the text of the regulations.

Supplement frequency: This Book G (Rehabilitation and Education) was originally supplemented six times a year, in February, April, June, August, October, and December. Beginning 1 August 1995, supplements will be issued every month during which a final rule addition or modification is made to the parts of Title 38 covered by this book. Supplements will be numbered consecutively as issued.

Modifications in this supplement include the following:

1. On 26 April 2006, the VA published a final rule, effective retroactively to 10 January 2006, to reinstate the dropped regulatory text of paragraphs (e)(2)–(e)(4) of §21.7550 that were inadvertently removed when paragraph (e)(1) was redesignated in the in the Federal Register publication of January 10, 2006 (71 Fed. Reg. 1496). [Ed. note: We identified this error, and confirmed it with the VA, for Supplement No. 69, January, 2006; as a result, the removed paragraphs were retained in that update]. Changes:

 In §21.7550, added paragraphs (e)(2)–(4).

2. On 17 May 2006, the VA published a final rule, effective that same date, to correct regulations published in the Federal Register on 17 July 2002 (67 FR 46868) that amended its adjudication and fiduciary regulations in Parts 3 and 13 by replacing the titles of Adjudication Division, Adjudication Officer, and Veterans Services Officer, with Veterans Service Center and Veterans Service Center Manager. Those changes—all non-substantive—are now extended to Parts 1, 4, 6, 14, and 21. Changes in this Book G:

 Corrections made in §§21.50(d), 21.4009(d), 21.6056(b), 21.6420, and 21.6521(b).

G70–1

G-42

Resumption of participation...... 21.5058-1

Schools...... 21.5200-1

State approving agencies...... 21.5150-1

Suspension of participation...... 21.5066-1

Transfer of entitlement...... 21.5294-1

Travel expenses...... 21.5103-1

Tutorial assistance...... 21.5141-1

Work-study program...... 21.5145-1

Subpart H—Educational Assistance Test Program

Administration of benefits program—Chapter 107, Title 10,

United States Code...... 21.5900-1

Applications, claims and time limits...... 21.5730-1

Certifications of enrollment...... 21.5810-1

Charges against entitlement...... 21.5744-1

Commencing date of subsistence allowance...... 21.5831-1

Courses...... 21.5800-1

Definitions...... 21.5720-1

Delegations of authority...... 21.5901-1

Discontinuance dates: General...... 21.5834-1

Educational assistance...... 21.5820-1

Eligibility...... 21.5740-1

Eligibility under more than one program...... 21.5741-1

Entitlement...... 21.5742-1

Establishment of educational assistance test program...... 21.5701-1

False or fraudulent claims...... 21.5816-1

False or misleading statements...... 21.5828-1

Measurement of courses...... 21.5870-1

Nonduplication: Federal programs...... 21.5824-1

Obtaining benefits...... 21.5725-1

Overpayments...... 21.5838-1

Overview...... 21.5703-1

Payment of educational assistance...... 21.5830-1

Period of entitlement...... 21.5745-1

Reports of withdrawals and terminations of attendance

and changes in training time...... 21.5812-1

Specific discontinuance dates...... 21.5835-1

Subsistence allowance...... 21.5822-1

Transfer of authority...... 21.5705-1

Transfer of entitlement...... 21.5743-1

Subpart I—Temporary Program of Vocational Training

for Certain New Pension Recipients

Additional applicable chapter 31 regulations...... 21.6380-1

Applicability of rules and administrative procedures under

38 U.S.C. chapter 31...... 21.6010-1

Authorization of services under chapter 31 rules...... 21.6310-1

Authorization of transportation services...... 21.6370-1

Basic duration of a vocational training program...... 21.6070-1

Case status system...... 21.6180-1

Claims and elections...... 21.6015-1

Completing the plan...... 21.6082-1

Computing the period of vocational training program participation...... 21.6074-1

Consequences of evaluation...... 21.6058-1

Cooperation of the veteran in an evaluation...... 21.6056-1

Coordination with the Veterans Service Center...... 21.6420-1

Counseling...... 21.6100-1

Criteria for determining good employment potential...... 21.6054-1

Definitions...... 21.6005-1

Delegation of authority...... 21.6410-1

Educational and vocational training services...... 21.6120-1

Effective dates of induction into and termination of vocational training...... 21.6282-1

Eligibility for vocational training and employment assistance...... 21.6040-1

Entry, reentry and completion...... 21.6042-1

Evaluation and improvement of rehabilitation potential...... 21.6140-1

Evaluations...... 21.6052-1

Extending the duration of a vocational training program...... 21.6072-1

Financial assistance...... 21.6260-1

Independent living services...... 21.6060-1

Leaves of absence...... 21.6340-1

Limitations on the number of evaluations...... 21.6059-1

Medical treatment, care and services...... 21.6240-1

Nonduplication—38 U.S.C., chapters 30, 31, 32, 34 and 35...... 21.6021-1

Participation of eligible veterans in an evaluation...... 21.6050-1

Rate of pursuit...... 21.6310-1

Reentrance into a training program...... 21.6284-1

Requirement for an individualized written rehabilitation

or employment assistance plan...... 21.6080-1

Resources for provision of medical treatment, care and services...... 21.6242-1

Satisfactory conduct and cooperation...... 21.6362-1

Services and assistance...... 21.6060-1

Supplies...... 21.6210-1

Temporary vocational training program for certain pension recipients...... 21.6001-1

(No. 70 5/25/06)

21.50-1§21.50—Initial evaluation 21.50-1

Initial and Extended Evaluation

§21.50 Initial evaluation.

(a) Eligibility for initial evaluation. VA shall provide an initial evaluation to each individual who applies for benefits under Chapter 31, if the individual’s compensable service-connected disability meets one of the conditions contained in §21.40(a). (Authority: 38 U.S.C. 3102(1), Pub. L. 101-508)

(b) Purpose. An initial evaluation will be provided to each individual who meets the conditions of paragraph (a) of this section to:

(1) Determine the existence of an employment handicap;

(2) Determine the basic twelve-year period of eligibility;

(3) Determine whether an employment handicap shall be considered a serious employment handicap;

(4) Determine whether the basic twelve-year period of eligibility is extended for a veteran with a serious employment handicap;

(5) Determine as expeditiously as possible, without extended evaluation whether achievement of a vocational goal is currently reasonably feasible.

(6) Evaluate the ability of the veteran to live and function independently within the veteran’s family and community;

(7) Determine if the veteran is eligible for employment services under §21.47;

(8) Develop information necessary to plan an individual program for a veteran found eligible and entitled to services under Chapter 31; and

(9) Assist a veteran who is found ineligible for assistance under Chapter 31 to identify other resources and programs for which he or she may be eligible. (Authority: 38 U.S.C. 523, 3106(a), (d), 3116)

(1) The handicapping effects of the veteran’s service-connected disability on employability and independence in daily living;

(2) The veteran’s residual physical and mental capabilities which contribute to employability and independence in daily living;

(3) The veteran’s ability to function independently in family and community;

(4) Prior assessments of employability by a counseling psychologist;

(5) Assessments authorized to provide additional information necessary for initial evaluation; and

(6) The veteran’s personal history including:

(i) Education and training;

(ii) Employment;

(iii) Nonservice-connected disability(ies), and

(iv) Family and community adjustment.

(Authority: 38 U.S.C. 3106(a))

(d) Responsibility for initial evaluation.

(1) All determinations regarding service requirements for basic entitlement and, the beginning and ending dates of a veteran’s basic twelve-year period of eligibility shall be made by appropriate staff of the Veterans Service Center.

(2) All other determinations, including extension of the basic twelve-year period because of serious employment handicap, and entitlement to assistance under Chapter 31 shall be made by appropriate staff of the Vocation Rehabilitation and Employment Division. (Authority: 38 U.S.C. 3102, 3103, 3115(a))

(e) Cooperation of the veteran. The cooperation of the veteran is essential to an initial evaluation. The purpose of the initial evaluation and the steps in the process shall be explained to the veteran and his or her cooperation requested. If the veteran does not cooperate in the initiation or completion of the initial evaluation the counseling psychologist shall make a reasonable effort through counseling to secure the veteran’s cooperation. If the veteran’s cooperation cannot be secured, the counseling psychologist shall suspend the initial evaluation until such time as the veteran cooperates. The veteran will be informed of any suspension of the initial evaluation, the reasons for this action, and the steps necessary to resume the evaluation. (Authority: 38 U.S.C. 3111)

[49 FR 40814, Oct. 18, 1984, as amended at 53 FR 50956, Dec. 19, 1988; 56 FR 15836, April 18, 1991; 62 FR 17707, Apr. 11, 1997; 66 FR 44053, Aug. 22, 2001; 71 FR 28586, May 17, 2006]

Supplement Highlights reference: 30(2)

(No. 70 5/25/06)

21.4009-1§21.4009—Overpayments-waiver or recovery21.4009-1

(i) The school’s failure to report, or to report timely facts which resulted in an overpayment, or

(ii) The school’s submission of an incorrect certification as to fact.

(2) In either instance the Department of Veterans Affairs will consider other pertinent factors such as:

(i) Allowing for occasional clerical error or occasional administrative error:

(ii) The school’s past reliability in reporting;

(iii) The adequacy of the school’s reporting system, and

(iv) The extent of noncompliance with reporting requirements. (Authority: 38 U.S.C. 3685)

(c) Committee on school liability. Each field station having jurisdiction over schools with courses approved for training under Chapter 1606, Title 10, United States Code, Chapters 30, 32, 34, 35 and/or 36, Title 38, United States Code shall establish a Committee on School Liability. The committee or a panel designated by the committee chairperson and drawn from the committee, is authorized to find whether a school is liable for an overpayment. (Authority: 10 U.S.C. 16136(b), 38 U.S.C. 3034(a), 3241, 3685)

(d) Initial determination. The Veterans Service Center Manager of the Department of Veterans Affairs facility of jurisdiction will determine whether there is evidence that would warrant a finding that the school is potentially liable for an overpayment. When the decision is in the affirmative, the Finance Officer of the Department of Veterans Affairs facility of jurisdiction will notify the school in writing of the Department of Veterans Affairs’ intent to apply the liability provisions of paragraph (a) of this section. The notice will identify the students overpaid and will set out in each student’s case the actions or omissions by the school which resulted in the finding that the school was potentially liable for the overpayment. The notice will also state that a determination of liability will be made on the basis of the evidence of record unless additional evidence or a request for a hearing is received within 30 days of the date of receipt of such notice by the school.

(e) Hearings. A school is entitled to a hearing before a panel drawn from the Committee on School Liability before a decision is made as to whether it is liable for an overpayment. Every hearing will be preceded by a prehearing conference unless the conference is waived by the school. The Committee on School Liability will consider all evidence and testimony presented at the hearing.

(f) Extent of liability. Waiver of collection of an overpayment as to a veteran or eligible person will not relieve the school of liability for the overpayment. Recovery in whole or in part from the veteran or eligible person will limit such liability accordingly. If an overpayment has been recovered from the school and the veteran or eligible person subsequently repays the amount in whole or in part, the amount repaid will be reimbursed to the school.

(g) Notice to school. The school shall be notified in writing of the decision of the Committee on School Liability. If the school is found liable for an overpayment, the school also will be notified of the right to appeal the decision to the Central Office School Liability Appeals Board within 60 days from the date of the letter to the school containing notice of the decision. The 60-day time limit may be extended to 90 days at the discretion of the chairperson of the Committee on School Liability. The appeal must be in writing setting forth fully the alleged errors of fact and law. If an appeal is not received within the 60-day time limit, the Committee decision is final.

(h) Appeals. An appeal will be forwarded to Central Office where it will be considered by the School Liability Appeals Board. The Board’s decision will serve as authority for instituting collection proceedings, if appropriate, or for discontinuing collection proceedings instituted on the basis of the original decision of the Committee on School Liability in any case where the Board reverses a decision made by the Committee that the school is liable.

(i) Review. Review by the School Liability Appeals Board is limited to the issues raised by the school and shall be on the record and not de novo in character. The Board may affirm, modify or reverse a decision of the Committee on School Liability or may remand an appeal for further consideration by the appropriate Committee on School Liability. If new and material evidence is discovered while the School Liability Appeals Board is considering a case, the Board may remand the case to the appropriate Committee on School Liability.

(j) Finality of decisions. The School Liability Appeals Board has authority to act for the Secretary in deciding appeals concerning a school’s liability for an overpayment. There is no right of additional administrative appeal of a decision of the School Liability Appeals Board.

[32 FR 4533, Mar. 25, 1967, as amended at 44 FR 15492, Mar. 14, 1979; 48 FR 37976, Aug. 22, 1983; 49 FR 35630, Sept. 11, 1984; 51 FR 16316, May 2, 1986; 61 FR 20728, May 8, 1996; 61 FR 26112, May 24, 1996; 62 FR 55760, Oct. 28, 1997; 71 FR 28586, May 17, 2006]

Supplement Highlights reference: 27(1)

Next Section is §21.4020

(No. 70 5/25/06)

21.6001-1§21.6001—Temporary vocational training program for certain pension recipients21.6001-1

Subpart I—Temporary Program of Vocational Training

for Certain New Pension Recipients

Authority: Pub. L. 98-543, 38 U.S.C. 501 and chapter 15,

sections specifically cited, unless otherwise noted.

Source: 53 FR 4397, Feb. 16, 1988, unless otherwise noted.

Note: This subpart includes regulations governing the determination of eligibility, and the services which may be provided to veterans under this program. The numbering of the regulations follows the numbering of regulations under 38 U.S.C. chapter 31 to the extent possible. Additional regulations affecting this program are found in Part 3 and Part 17, Title 38 Code of Federal Regulations.

General

21.6001 Temporary vocational training program for certain pension recipients...... 21.6001-1

21.6005 Definitions...... 21.6005-1

21.6010Applicability of rules and administrative procedures

under 38 U.S.C. chapter 31...... 21.6010-1

21.6015 Claims and elections...... 21.6015-1

21.6021 Nonduplication—38 U.S.C., chapters 30, 31, 32, 34 and 35...... 21.6021-1

Basic eligibility requirements

21.6040 Eligibility for vocational training and employment assistance...... 21.6040-1

21.6042Entry, reentry and completion...... 21.6042-1

Evaluation

21.6050 Participation of eligible veterans in an evaluation...... 21.6050-1

21.6052 Evaluations...... 21.6050-1

21.6054 Criteria for determining good employment potential...... 21.6050-1

21.6056 Cooperation of the veteran in an evaluation...... 21.6050-1

21.6058 Consequences of evaluation...... 21.6050-1

21.6059 Limitations on the number of evaluations...... 21.6050-1

Services and assistance to program participants

21.6060 Services and assistance...... 21.6060-1

Duration of training

21.6070 Basic duration of a vocational training program...... 21.6070-1

21.6072 Extending the duration of a vocational training program...... 21.6072-1

21.6074 Computing the period of vocational training program participation...... 21.6074-1

Individualized written rehabilitation plan

21.6080 Requirement for an individualized written rehabilitation

or employment assistance plan...... 21.6080-1

21.6082 Completing the plan...... 21.6082-1

Counseling

21.6100 Counseling...... 21.6100-1

Educational and vocational training services

21.6120 Educational and vocational training services...... 21.6120-1

Evaluation and improvement of rehabilitation potential

21.6140 Evaluation and improvement of rehabilitation potential...... 21.6140-1

Independent living services

21.6060 Independent living services...... 21.6060-1

Case status system

21.6180 Case status system...... 21.6180-1

Supplies

21.6210 Supplies...... 21.6210-1

Medical and related services

21.6240 Medical treatment, care and services...... 21.6240-1

21.6242 Resources for provision of medical treatment, care and services...... 21.6242-1

Financial assistance

21.6260 Financial assistance...... 21.6260-1

Entering vocational training

21.6282 Effective dates of induction into and termination of vocational training.....21.6282-1

21.6284 Reentrance into a training program...... 21.6284-1

21.6290 Training resources...... 21.6290-1

Rate of pursuit

21.6310 Rate of pursuit...... 21.6310-1