[Congressional Record Volume 142, Number 66 (Monday, May 13, 1996)]
[Senate]
[Pages S4978-S4979]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SIMPSON (by request):
  S. 1753. A bill to amend title 38, United States Code, to expand the 
authority of the Secretary of Veterans Affairs to suspend a special pay 
agreement for physicians and dentists who enter residency training 
programs; to the Committee on Veterans' Affairs.


                         veterans' legislation

 Mr. SIMPSON. Mr. President, as chairman of the Veterans' 
Affairs Committee, I have today introduced, at the request of the 
Secretary of Veterans Affairs, S. 1753, a bill to expand the authority 
of the Secretary of Veterans' Affairs to suspend special pay agreements 
for physicians and dentists who enter residency training programs. The

[[Page S4979]]

Secretary of Veterans' Affairs submitted this legislation to the 
President of the Senate by letter dated October 18, 1995.
  My introduction of this measure is in keeping with the policy which I 
have adopted of generally introducing--so that there will be specific 
bills to which my colleagues and others may direct their attention and 
comments--all administration-proposed draft legislation referred to the 
Veterans' Affairs Committee. Thus, I reserve the right to support or 
oppose the provisions of, as well as any amendment to, this 
legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record, together with the transmittal letter and the 
enclosed analysis of the draft legislation.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 1753

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled, That 
     except as otherwise expressly provided, whenever in this Act 
     an amendment is expressed in terms of an amendment to a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of title 38, 
     United States Code.
       Sec. 2. Subsection 7432 (b)(2) is amended:
       (a) by inserting ``A'' after ``(2)'' before ``The'', and
       (b) adding a new subsection to read as follows:
       ``(B) The Secretary may, in the case of physician or 
     dentist who enters a residency training program, suspend the 
     special pay agreement. When the physician or dentist 
     completes, withdraws from or is no longer a participant in 
     the program, the special pay agreement shall be reinstated. 
     During such suspension the physician or dentist shall not be 
     subject to the refund requirement of paragraph 1.
                                                                    ____



                                Secretary of Veterans Affairs,

                                     Washington, October 18, 1995.
     Hon. Al Gore,
     President of the Senate,
     Washington, DC.
       Dear Mr. President: There is transmitted herewith a draft 
     bill ``To amend title 38, United States Code, to expand the 
     authority of the Secretary of Veterans Affairs to suspend 
     special pay agreements for physicians and dentists who enter 
     residency training programs.'' We request that it be referred 
     to the appropriate committee for prompt consideration and 
     enactment.
       Under current law, in order to recruit and retain highly 
     qualified physicians and dentists in the Veterans Health 
     Administration, the Secretary is authorized to provide them 
     special pay. This special pay is provided under an agreement 
     that stipulates a period of service in return for receipt of 
     special pay and, in the event of a breach, the amount of 
     special pay paid to the recipient under the agreement must be 
     refunded. The special pay is in addition to any other pay and 
     allowances the recipient of the special pay is entitled to 
     receive.
       However, a physician or dentist entering a residency 
     training program must convert to a special appointment 
     category that is excluded from receipt of special pay. 
     Therefore, accepting a residency training position or 
     entering a non-VA sponsored residency program prior to the 
     expiration of the terms of the special pay agreement 
     constitutes a breach of the agreement triggering an 
     obligation to repay the special pay received in that year.
       This proposal would amend subsection 7432(b)(2) of title 
     38, United States Code to authorize VA to suspend the special 
     pay agreement of a physician or dentist who enters a 
     residency training program, VA sponsored or not. When the 
     physician or dentist completes, withdraws from or is no 
     longer a participant in the program, the special pay 
     agreement shall be reinstated. During such suspension the 
     physician or dentist shall not be subject to the refund 
     requirement of paragraph 1.
       The refund requirement penalty fixed in law for those 
     choosing to enter residency training programs is punitive and 
     counter-productive to VA's medical mission to provide 
     veterans the services of highly qualified and trained health 
     care professionals. In keeping with VA's mission, this 
     proposal would remove the imposition of adverse financial 
     consequences for those wishing to enter residency training 
     programs and would allow them to pursue educational 
     opportunities designed to increase and develop their 
     professional knowledge and skills.
       The Office of Management and Budget has advised that there 
     is no objection to the submission of this draft bill from the 
     standpoint of the Administration's program.
           Sincerely yours,
     Jesse Brown.
                                                                    ____


                         Analysis of Draft Bill

       This draft bill would amend subsection 7432(b)(2) of title 
     38, United States Code by adding a new subsection ``B'' that 
     would expand the authority of the Secretary of Veterans 
     Affairs to suspend a special pay agreement for physicians and 
     dentists who enter residency training programs. When they 
     complete, withdraw from or are no longer participants in the 
     program, the special pay agreement shall be reinstated. 
     During such suspension the physician or dentist shall not be 
     subject to the refund requirement of paragraph 1.
       Under existing law, a physician or dentist who enters a 
     residency training program is converted to a special 
     appointment category that is excluded from receipt of special 
     pay. Entering a residency training position constitutes a 
     breach of the agreement and triggers the obligation to repay 
     the special pay the recipient received in that year.
       The amendment would temporarily suspend the special pay 
     agreement during residency training and allow the return of 
     the physician or dentist to VA employment without incurring a 
     special pay refund obligation. If the physician or dentist 
     does not return, then a repayment obligation would 
     arise.

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