
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 38USC7406]

 
                      TITLE 38--VETERANS' BENEFITS
 
              PART V--BOARDS, ADMINISTRATIONS, AND SERVICES
 
          CHAPTER 74--VETERANS HEALTH ADMINISTRATION--PERSONNEL
 
                       SUBCHAPTER I--APPOINTMENTS
 
Sec. 7406. Residencies and internships

    (a)(1) The Secretary may establish residencies and internships. The 
Secretary may appoint qualified persons to such positions without regard 
to civil service or classification laws, rules, or regulations.
    (2) For the purposes of this section:
        (A) The term ``internship'' includes the equivalency of an 
    internship as determined in accordance with regulations which the 
    Secretary shall prescribe.
        (B) The term ``intern'' means a person serving an internship.

    (b) The Secretary may prescribe the conditions of employment of 
persons appointed under this section, including necessary training, and 
the customary amount and terms of pay for such positions during the 
period of such employment and training. The amount and terms of such pay 
may be established retroactively based on changes in such customary 
amount and terms.
    (c)(1) In order to carry out more efficiently the provisions of 
subsection (a)(1), the Secretary may contract with one or more 
hospitals, medical schools, or medical installations having hospital 
facilities and participating with the Department in the training of 
interns or residents to provide, by the designation of one such 
institution to serve as a central administrative agency, for the central 
administration--
        (A) of stipend payments;
        (B) provision of fringe benefits; and
        (C) maintenance of records for such interns and residents.

    (2) The Secretary may pay to such designated agency, without regard 
to any other law or regulation governing the expenditure of Government 
moneys either in advance or in arrears, an amount to cover the cost for 
the period such intern or resident serves in a Department facility 
furnishing hospital care or medical services of--
        (A) stipends fixed by the Secretary pursuant to paragraph (1);
        (B) hospitalization, medical care, and life insurance and any 
    other employee benefits as are agreed upon by the participating 
    institutions for the period that such intern or resident serves in a 
    Department facility furnishing hospital care or medical services;
        (C) tax on employers pursuant to chapter 21 of the Internal 
    Revenue Code of 1986, where applicable; and
        (D) an amount to cover a pro rata share of the cost of expense 
    of such central administrative agency.

    (3)(A) Any amounts paid by the Secretary to such central 
administrative agency to cover the cost of hospitalization, medical 
care, or life insurance or other employee benefits shall be in lieu of 
any benefits of like nature to which such intern or resident may be 
entitled under the provisions of title 5, and the acceptance of stipends 
and employee benefits from the designated central administrative agency 
shall constitute a waiver by the recipient of any claim such recipient 
might have to any payment of stipends or employee benefits to which such 
recipient may be entitled under this title or title 5.
    (B) Notwithstanding subparagraph (A), any period of service of any 
such intern or resident in a Department facility furnishing hospital 
care or medical services shall be deemed creditable service for the 
purposes of section 8332 of title 5.
    (4) The agreement with such central administrative agency may 
further provide that the designated central administrative agency 
shall--
        (A) make all appropriate deductions from the stipend of each 
    intern and resident for local, State, and Federal taxes;
        (B) maintain all records pertinent to such deductions and make 
    proper deposits of such deductions; and
        (C) maintain all records pertinent to the leave accrued by such 
    intern and resident for the period during which such recipient 
    serves in a participating facility, including a Department facility 
    furnishing hospital care or medical services.

    (5) Leave described in paragraph (4)(C) may be pooled, and the 
intern or resident may be afforded leave by the facility in which such 
person is serving at the time the leave is to be used to the extent of 
such person's total accumulated leave, whether or not earned at the 
facility in which such person is serving at the time the leave is to be 
afforded.

(Added Pub. L. 102-40, title IV, Sec. 401(b)(2), May 7, 1991, 105 Stat. 
227; amended Pub. L. 104-262, title III, Sec. 345, Oct. 9, 1996, 110 
Stat. 3208.)

                       References in Text

    The civil service laws, referred to in subsec. (a)(1), are set out 
in Title 5, Government Organization and Employees. See, particularly, 
section 3301 et seq. of Title 5.
    The classification laws, referred to in subsec. (a)(1), are 
classified generally to chapter 51 (Sec. 5101 et seq.) and to subchapter 
III (Sec. 5331 et seq.) of chapter 53 of Title 5.
    Chapter 21 of the Internal Revenue Code of 1986, referred to in 
subsec. (c)(2)(C), is classified to chapter 21 (Sec. 3101 et seq.) of 
Title 26, Internal Revenue Code.


                            Prior Provisions

    Provisions similar to those in this section were contained in 
section 4114(b) of this title prior to the repeal of that section as 
part of the complete revision of chapter 73 of this title by Pub. L. 
102-40.


                               Amendments

    1996--Subsec. (c)(2), (3)(B). Pub. L. 104-262, Sec. 345(1), 
substituted ``Department facility furnishing hospital care or medical 
services'' for ``Department hospital'' wherever appearing.
    Subsec. (c)(4)(C). Pub. L. 104-262, Sec. 345(2), substituted 
``participating facility'' for ``participating hospital''.
    Pub. L. 104-262, Sec. 345(1), substituted ``Department facility 
furnishing hospital care or medical services'' for ``Department 
hospital''.
    Subsec. (c)(5). Pub. L. 104-262, Sec. 345(3), substituted 
``facility'' for ``hospital'' in two places.

                  Section Referred to in Other Sections

    This section is referred to in sections 7407, 7408, 7423, 7425, 7461 
of this title; title 5 section 5102.
