
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: 38USC7432]

 
                      TITLE 38--VETERANS' BENEFITS
 
              PART V--BOARDS, ADMINISTRATIONS, AND SERVICES
 
          CHAPTER 74--VETERANS HEALTH ADMINISTRATION--PERSONNEL
 
         SUBCHAPTER III--SPECIAL PAY FOR PHYSICIANS AND DENTISTS
 
Sec. 7432. Special pay: written agreements

    (a) An agreement entered into by a physician or dentist under this 
subchapter shall cover a period of one year of service in the Veterans 
Health Administration unless the physician or dentist agrees to an 
agreement for a longer period of service, not to exceed four years, as 
specified in the agreement. A physician or dentist who has previously 
entered into such an agreement is eligible to enter into a subsequent 
agreement unless the physician or dentist has failed to refund to the 
United States any amount which the physician or dentist is obligated to 
refund under any such previous agreement.
    (b)(1) An agreement under this subchapter shall provide that, if the 
physician or dentist entering into the agreement voluntarily, or because 
of misconduct, fails to complete any of the years of service covered by 
the agreement (measured from the anniversary date of the agreement), the 
physician or dentist shall refund an amount of special pay received 
under the agreement for that year equal to--
        (A) in the case of a failure during the first year of service 
    under the agreement, 100 percent of the amount received for that 
    year;
        (B) in the case of a failure during the second year of service 
    under the agreement, 75 percent of the amount received for that 
    year;
        (C) in the case of a failure during the third year of service 
    under the agreement, 50 percent of the amount received for that 
    year; and
        (D) in the case of a failure during the fourth year of service 
    under the agreement, 25 percent of the amount received for that 
    year.

    (2)(A) The Secretary may waive (in whole or in part) the requirement 
for a refund under paragraph (1) in any case if the Secretary determines 
(in accordance with regulations prescribed under section 7431(a) of this 
title) that the failure to complete such period of service is the result 
of circumstances beyond the control of the physician or dentist.
    (B) The Secretary may suspend a special pay agreement entered into 
under this section in the case of a physician or dentist who, having 
entered into the special pay agreement, enters a residency training 
program. Any such suspension shall terminate when the physician or 
dentist completes, withdraws from, or is no longer a participant in the 
program. During the period of such a suspension, the physician or 
dentist is not subject to the provisions of paragraph (1).
    (3) Any such agreement shall specify the terms under which the 
Department and the physician or dentist may elect to terminate the 
agreement.
    (c)(1) If a proposed agreement under this subchapter will provide a 
total annual amount of special pay to be provided to a physician or 
dentist who has previously entered into an agreement under this 
subchapter (or under section 4118 \1\ of this title as in effect before 
the effective date of the Department of Veterans Affairs Physician and 
Dentist Recruitment and Retention Act of 1991) that will exceed the 
previous annual amount of special pay provided for the physician or 
dentist by more than 50 percent (other than in the case of a physician 
or dentist employed in an executive position in the Central Office of 
the Department), or that will be less than the previous annual amount of 
special pay provided for the physician or dentist by more than 25 
percent, the proposed agreement shall be promptly submitted to the 
Secretary. The proposed agreement shall not take effect if it is 
disapproved by the Secretary within 60 days after the date on which the 
physician or dentist entered into the proposed agreement.
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    \1\ See References in Text note below.
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    (2) For purposes of paragraph (1), the previous annual amount of 
special pay provided for a physician or dentist is the total annual 
amount of special pay provided, or to be provided, to the physician or 
dentist for the most recent year covered by an agreement entered into by 
the physician or dentist under this subchapter or under section 4118 \1\ 
of this title. In the case of an agreement entered into under section 
4118 \1\ of this title, incentive pay shall be treated as special pay 
for purposes of this paragraph.
    (3) The Secretary shall adjust special pay as necessary for purposes 
of this subsection to reflect appropriately any change in the status of 
a physician or dentist (A) from full-time status to part-time status, 
(B) from part-time status to full-time status, or (C) from one 
proportion of time spent as a Department employee under part-time status 
employment to a different proportion.
    (d)(1) If a proposed agreement under this subchapter (other than an 
agreement in the case of the Under Secretary for Health) will provide a 
total annual amount of special pay to be provided to a physician or 
dentist which, when added to the amount of basic pay of the physician or 
dentist, will be in excess of the amount payable for positions specified 
in section 5312 of title 5, the proposed agreement shall be promptly 
submitted for approval to the Secretary through the Under Secretary for 
Health. The agreement shall take effect at the end of the 60-day period 
beginning on the date on which the physician or dentist entered into the 
proposed agreement if it is neither approved nor disapproved within that 
60-day period. If the agreement is approved within that period, the 
agreement shall take effect as of the date of the approval. A proposed 
agreement may be disapproved under this paragraph only if it is 
determined that the amounts of special pay proposed to be paid are not 
necessary to recruit or retain the physician or dentist.
    (2) A proposed agreement under this subchapter with the Under 
Secretary for Health may provide for payment of special pay for which 
the Under Secretary for Health is eligible under this subchapter (other 
than that specified in section 7433(b)(4)(B) of this title) only to the 
extent specifically approved by the Secretary.
    (3) The Secretary shall include in the annual report required by 
section 7440 of this title--
        (A) a statement of the number of agreements entered into during 
    the period covered by the report under which the total amount of 
    special pay to be provided, when added to the amount of basic pay of 
    the physician or dentist, will be in excess of the amount payable 
    for positions specified in section 5312 of title 5;
        (B) a statement of the number of proposed agreements which 
    during the period covered by the report were disapproved under this 
    subsection; and
        (C) a detailed explanation of the basis for disapproval of each 
    such proposed agreement which was disapproved under this subsection.

    (4) This subsection does not apply to any proposed agreement entered 
into after September 30, 1994.

(Added Pub. L. 102-40, title I, Sec. 102, May 7, 1991, 105 Stat. 189; 
amended Pub. L. 102-405, title III, Sec. 302(c)(1), Oct. 9, 1992, 106 
Stat. 1984; Pub. L. 104-262, title III, Sec. 346, Oct. 9, 1996, 110 
Stat. 3208.)

                       References in Text

    Section 4118 of this title, referred to in subsec. (c)(1), (2), was 
repealed by Pub. L. 102-40, title IV, Sec. 401(a)(3), May 7, 1991, 105 
Stat. 210.
    The effective date of the Department of Veterans Affairs Physician 
and Dentist Recruitment and Retention Act of 1991, referred to in 
subsec. (c)(1), probably means the effective date of title I of Pub. L. 
102-40, which enacted this subchapter, and which is generally effective 
on first day of first pay period after July 1, 1991, subject to certain 
transition and savings provisions, see section 104 of Pub. L. 102-40, 
set out as a note under section 7431 of this title.


                            Prior Provisions

    Provisions similar to those in this subchapter were contained in 
section 4118 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. (b)(2). Pub. L. 104-262 designated existing provisions 
as subpar. (A) and added subpar. (B).
    1992--Subsec. (d)(1), (2). Pub. L. 102-405 substituted ``Under 
Secretary for Health'' for ``Chief Medical Director'' wherever 
appearing.


                             Effective Date

    Section effective on first day of first pay period after July 1, 
1991, subject to transition and savings provisions and prohibition on 
retroactive agreements, see section 104 of Pub. L. 102-40, set out as a 
note under section 7431 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 7431 of this title.
