# LEGAL

**1. REASON FOR ISSUE:** To issue Department of Veterans Affairs (VA)
policies regarding various legal topics pertaining to Federal
employment.

**2. SUMMARY OF CONTENT/MAJOR CHANGES:** This directive sets forth
policies previously contained in law, Federal regulation, and numerous
other issuances. No substantive changes have been made.

**3. RESPONSIBLE OFFICE:** Office of the Deputy Assistant Secretary for
Human Resources and Labor Relations.

**4. RELATED HANDBOOK:** VA Handbook 5025, "Legal."

**5. RESCISSIONS:** Refer to the Transmittal Sheet for VA Directive
5001, "General Introduction and Administration."

**CERTIFIED BY: BY DIRECTION OF THE SECRETARY**

**OF VETERANS AFFAIRS:**

John A. Gauss Jacob Lozada, Ph.D.

Assistant Secretary for Assistant Secretary for Human

Information and Technology Resources and Administration

# LEGAL

**1. PURPOSE.** This directive provides Department-wide policies on
various legal issues pertaining to Federal employment, such as the
Freedom of Information Act, Privacy Act, employee responsibilities and
conduct, ethical conduct, political activity under the Hatch Act, claims
against the Government, and employment of relatives.

**2. POLICY.** Statutes and regulations establish the policies
concerning the matters contained in this directive. (See references
below.) These policies are summarized in the accompanying handbook for
the convenience and ease of reference for the reader. Users should
consult the specific references listed for more definitive information.

**3. RESPONSIBILITIES**

a\. The Office of Human Resources Management \[and Labor Relations\]
shall advise management and operating officials on the policies and
procedures contained herein.

b\. HRM Officers are responsible for advising facility directors on the
policies and procedures contained herein.

c\. Additional responsibilities are specified in individual parts of the
accompanying handbook.

**4. REFERENCES**

a\. 5 United States Code (U.S.C.) 522, 552, 3110, 7321-7326

b\. 18 U.S.C. 201-209

c\. 28 U.S.C. 2671-2680

d\. 31 U.S.C. 3721

e\. 38 U.S.C. 703, 2201, 3301(f), 4132

f\. 41 U.S.C. 423

g\. 5 Code of Federal Regulations (CFR) 293, 294, 297, 310, 735, 2634,
2635, 2636, 2638, 2640

h\. 38 CFR 0.735, 1.218, 1.500, 1.550-1.559, 1.576, 14.664-14.669,
17.115

i\. 41 CFR 101

j\. Executive Orders 12674 and 12731

k\. VA Directive and Handbook 6300.3, Procedures for Processing Request
for Records Subject to the Privacy Act

l\. VA Directive and Handbook 6300.4, Procedures for Implementing the
Freedom of Information Act

m\. VHA Handbook 1660.3

n\. Public Law 93-579, Privacy Act of 1974

o\. Public Law 104-262, Veterans Health Care Eligibility Reform Act of
1996

p\. Public Law 95-521, Ethics in Government Act of 1978

q\. W-1, Part 11, Chapter 21

r\. MP-6, Part V, Supplement No. 1.5

s\. Office of Personnel Management (OPM) Operating Manual -- The Guide
to Personnel Recordkeeping

# LEGAL

**1. REASON FOR ISSUE:** To issue Department of Veterans Affairs (VA)
procedures regarding various legal topics pertaining to Federal
employment. Statutes and regulations establish the policies concerning
the matters contained in this handbook. These policies are summarized in
the handbook for the convenience and ease of reference for the reader.
Users should consult the specific references noted for more definitive
information on a topic.

**2. SUMMARY OF CONTENT/MAJOR CHANGES:** This handbook sets forth
mandatory procedures previously contained in law, Federal regulation,
and numerous other issuances. No substantive changes have been made.

**3. RESPONSIBLE OFFICE:** Office of the Deputy Assistant Secretary for
Human Resources \[Management and Labor Relations\].

**4. RELATED DIRECTIVE:** VA Directive 5025, "Legal."

**5. RESCISSIONS:** Refer to the Transmittal Sheet for VA Handbook 5001,
"General Introduction and Administration."

**CERTIFIED BY: BY DIRECTION OF THE SECRETARY**

**OF VETERANS AFFAIRS:**

John A. Gauss Jacob Lozada, Ph.D.

Assistant Secretary for Assistant Secretary for Human

Information and Technology Resources and Administration

**LEGAL**

**CONTENTS**

**[PART I](#ptI). AVAILABILITY OF OFFICIAL INFORMATION**

**(FREEDOM OF INFORMATION ACT)**

**[PART II](#ptII). PRIVACY ACT**

**[PART III](#ptIII). EMPLOYEE RESPONSIBILITIES AND CONDUCT**

**[PART IV](#ptIV). ETHICAL CONDUCT**

**[PART V](#ptV). POLITICAL ACTIVITY**

**[PART VI](#ptVI). FINANCIAL DISCLOSURE**

**[PART VII](#ptVII). EMPLOYMENT OF RELATIVES**

**[PART VIII](#ptVIII). CLAIMS AGAINST THE GOVERNMENT**

#### [PART IX](#ptIX). EMPLOYEE LIABILITY

**[PART X](#ptX). EMPLOYEE ORGANIZATIONS AND ACTIVITIES**

\[**[PART XI](#PtXI). LIMITATIONS ON REMUNERATED OUTSIDE PROFESSIONAL
ACTIVITIES**

**OF INCUMBENTS OF CERTAIN VETERANS HEALTH ADMINISTRATION**

**POSITIONS**\]

**LEGAL**

[]{#ptI .anchor}**PART I. FREEDOM OF INFORMATION ACT (FOIA)**

**CONTENTS**

### **PARAGRAPH PAGE**

1\. [SCOPE](#ptIpar1) I-1

2\. [GENERAL PROVISIONS](#ptIpar2) I-1

3\. [REFERENCES](#ptIpar3) I-1

4\. [RESPONDING TO REQUESTS FOR INFORMATION UNDER THE](#ptIpar4)

[FREEDOM OF INFORMATION ACT](#ptIpar4) I-1

5\. [REQUESTS FOR CERTAIN INFORMATION FROM PERSONNEL RECORDS](#ptIpar5)
I-2

# PART I. FREEDOM OF INFORMATION ACT (FOIA)

**1.** []{#ptIpar1 .anchor}**SCOPE.** This part applies to the release
of information from personnel records in the custody of VA under the
Freedom of Information Act (FOIA).

**2.** []{#ptIpar2 .anchor}**GENERAL PROVISIONS.** Within the guidelines
set forth in 5 CFR 294, VA will honor requests for information from
title 5 personnel records established and maintained under OPM
regulations and instructions. These records are outlined in 5 CFR 293
and the OPM Operating Manual - The Guide to Personnel Recordkeeping.
Title 38 personnel records will be released in accordance with VA
regulations and policies. Field facility heads will, in each instance,
assure that the release of information from personnel records meets the
criteria above.

**3.** []{#ptIpar3 .anchor}**REFERENCES**

a\. 5 U.S.C. 552a Privacy Act

b.  b\. 5 CFR 293 Personnel Records

c\. 5 CFR 294 Availability of Official Information

d\. 38 CFR 1.550-.557 Release of information from VA Records other than
Claimant Records

e\. VA Directive and Handbook 6300.3 Procedures for Implementing the
Freedom of Information Act

f\. VA Directive and Handbook 6300.4 Procedures for Processing Requests
for Records Subject to the Privacy Act

g\. OPM Operating Manual - The Guide to Personnel Recordkeeping

**4.** []{#ptIpar4 .anchor}**RESPONDING TO REQUESTS FOR INFORMATION
UNDER THE FREEDOM OF INFORMATION ACT**

a\. **General.** Requests for information from personnel records will be
considered to have been made under the Freedom of Information Act (FOIA)
whether or not they are so identified by the requester. Requests from
individuals for access to records retrieved by their name or social
security number from a "system of records" will also be processed under
the Privacy Act (part II of this handbook). Requests from individuals
for information pertaining to them which is contained in other than a
"system of records" (e.g., merit promotion files) will be processed as a
FOIA request. All requests will be processed in accordance with VA
Directive 6300.3, Procedures for Implementing the Freedom of Information
Act.

b\. **Annual Report.** All denials for information from records
maintained by VA will be made a matter of record and will be included in
the facility's "Annual Report of Compliance with the Freedom of
Information Act". Reports Control Number (RCN) 72-0408 is assigned to
this report.

c\. **Fees.** Charges for information, if any, will be determined based
on 5 U.S.C. 552, 5 CFR 294 or 38 CFR 1.555. The office releasing the
records is responsible for assessing, collecting and depositing fees.
Payment may be made by check or money order made payable to the
Department of Veterans Affairs. Payments must be deposited with the
Agent Cashier. The office depositing the check must make sure that the
payment is identified as a FOIA payment.

**5.** []{#ptIpar5 .anchor}**REQUESTS FOR CERTAIN INFORMATION FROM
PERSONNEL RECORDS.** 5 CFR 293 permits the release of the following
information without written consent: name, present and past position
titles and occupational series; present and past grades; present and
past annual salary rates (including performance awards or bonuses,
incentive awards, merit pay amount, Meritorious or Distinguished
Executive Ranks, and allowances and differentials); present and past
duty stations (includes room numbers, shop designations, or other
identifying information regarding buildings or places of employment);
and position descriptions, identification of job elements and those
performance standards (but not actual performance appraisals) that the
release of which would not interfere with law enforcement programs or
severely inhibit agency effectiveness. Performance elements and
standards (or work expectations) may be withheld when they are so
intertwined with performance appraisals that their disclosure would
reveal an individual's performance appraisal.

**LEGAL**

[]{#ptII .anchor}**PART II. PRIVACY ACT**

# CONTENTS

### **PARAGRAPH PAGE**

1\. [SCOPE](#ptIIpar1) II-1

2\. [GENERAL PROVISIONS](#ptIIpar2) II-1

3\. [REFERENCES](#ptIIpar3) II-1

4\. [DEFINITIONS](#ptIIpar4) II-2

5\. [SAFEGUARDING PERSONNEL RECORDS](#ptIIpar5) II-2

6\. [MAINTENANCE AND USES OF PERSONNEL RECORDS](#ptIIpar6) II-3

7\. [RELEASE OF PERSONNEL FOLDERS](#ptIIpar7) II-5

8\. [ACCESS TO RECORDS](#ptIIpar8) II-5

9\. [REQUESTS FOR CORRECTION OR AMENDMENT](#ptIIpar9) II-7

10\. [DISCLOSURE OF PERSONNEL RECORDS](#ptIIpar10) II-7

11\. [FEES](#ptIIpar11) II-9

#### 

#### 

#### PART II. PRIVACY ACT

**1.** []{#ptIIpar1 .anchor}**SCOPE.** This part contains the policy,
procedures and instructions applicable to the protection of individual
privacy in personnel records maintained or owned by the Department of
Veterans Affairs (VA). The procedures contained in this part are
applicable only to records maintained in a \"systems of records\" as
defined in 5 U.S.C 552a(a).

**2.** []{#ptIIpar2 .anchor}**GENERAL PROVISIONS.** Officials who
establish or maintain personnel records covered by this part are
responsible for meeting the requirements of 5 U.S.C. 552a.

**3.** []{#ptIIpar3 .anchor}**REFERENCES**

a\. 5 U.S.C. 552a, as amended.

b\. 42 U.S.C. 290dd-2 and 342(a).

c\. 5 CFR, parts 293 and 297.

d\. 36 CFR Chapter XII, Subchapter B

e\. 38 CFR 1.550-1.582.

f\. 42 C.F.R. Part 2

g\. General Records Schedule 1.

h\. Office of Management and Budget Circular A-130, Management of
Federal Information Resources.

i\. Office of Personnel Management (OPM) Guide to Personnel
Recordkeeping.

j\. Memorandum of Understanding Among the U.S. Office of Personnel
Management, National Archives and Records Administration, and the
Department of Veterans Affairs, concerning certain personnel records and
files.

k\. MP-6, part V, Supplement No. 1.5, chapter 2.

l\. VA Directive and Handbook 6210, AIS Security and Procedures

m\. VA Directive 6300, Records and Information Management.

n\. VA Handbook 6300.4, Procedures for Processing Requests for Records
Subject to the Privacy Act.

o\. VA Handbook 6300.5, Procedures for Establishing and Managing Privacy
Act Systems of Records.

p\. VA Handbook 6300.7, Procedures for Computer Matching Programs.

q\. VA Handbook 6300.1, Records Management Procedures.

r\. Records Control Schedule 10-1, General and Administrative Records.

s\. Records Control Schedule VB-1, Part I, Section V, Personnel.

t\. VHA Handbook 1100.18, Reporting and Responding to State Licensing
Boards.

**4.** []{#ptIIpar4 .anchor}**DEFINITIONS**

a\. **Personnel Record.** Any record concerning an individual that is
maintained and used in the personnel management or the personnel
policy-setting process.

b\. **Other Definitions.** The definitions in 5 U.S.C. 552a(a) shall be
used for the purposes of this part, except that an "individual" also
includes alien applicants and employees lawfully permitted to
temporarily work in the United States.

c\. **Responsible Official.** The Federal official or contractor who is
responsible for the maintenance of records covered by this part.

**NOTE:** *Uncirculated personal notes, papers and records which are
created, retained, or discarded at a supervisor\'s discretion, which are
seen by no one else, and over which the agency exercises no control or
dominion are not considered agency records within the meaning of the
Privacy Act. When any of these notes, papers or records are used to
justify a personnel action, they are then to be included in an
appropriate system of records, subject to the provisions of this par.,
subject to applicable legal restrictions.*

**5.** []{#ptIIpar5 .anchor}**SAFEGUARDING PERSONNEL RECORDS**

a\. **Responsibility.** The individual responsible for maintaining the
record shall be responsible for providing protection and accountability
and for ensuring completeness, relevancy, accuracy and timeliness of
records, including automated records and reports, maintained by that
office. The responsible official will assure that employees who have
access to information protected by the Privacy Act and other
confidentiality laws receive appropriate training in safeguarding
personal privacy. The field facility Director, the HRM officer and
operating officials are responsible for ensuring the same degree of
protection, accountability, accuracy and timeliness for personnel
records maintained in operating offices. Records in operating offices
are maintained in accordance with the provisions of MP-6, part V,
supplement No. 1.5, chapter 2.

b\. **Physical Security**

\(1\) **Paper, Microfilm and Microfiche Records.** Personnel records may
be maintained or stored only where facilities or conditions are adequate
to prevent unauthorized access. Whenever personnel records are not under
the personal control of an authorized individual they will be stored in
a locked metal filing cabinet or secured in a storage system of
equivalent or greater physical security. VA Form 4520, Personnel Folder
Charge Card, may be used in place of the record whenever it is removed
from the file. The charge out card will reflect the date the record was
removed and the individual to whom it was released. Personnel records
include any reports, lists and forms that contain information on
employees that is protected by the Privacy Act. This policy also applies
to personnel records maintained in operating offices.

\(2\) Electronic Records. Access to data by means of on-line (query) or
download is restricted to authorized employees by means of unique user
identification and passwords. These codes are mailed in a sealed
envelope to an employee\'s business address and may be opened only by
the addressed employee. User identifications and passwords are only
given to employees who are authorized access. The security requirements,
including 36 CFR 1234.28, are applicable to electronic records covered
by this part.

**6.** []{#ptIIpar6 .anchor}**MAINTENANCE AND USES OF PERSONNEL
RECORDS**

a\. **Maintenance of Personnel Records.** No personnel record shall be
maintained in a record system other than those systems for which notices
have been published in the Federal Register. Those systems relating to
employee personnel records are listed below. For information related to
the contents of the system of records see the applicable system of
records notice, which is published in the Federal Register.

\(1\) **OPM Government-Wide Systems of Records**

\(a\) General Personnel Records (OPM/GOVT-1).

\(b\) Employee Performance File System Records (OPM/GOVT-2).

\(c\) Records of Adverse Actions and Actions Based on Unacceptable
Performance (OPM/GOVT-3).

\(d\) Recruiting, Examining and Placement Records (OPM/GOVT-5).

\(e\) Personnel Research and Test Validation Records (OPM/GOVT-6).

\(f\) Applicant Race, Sex, National Origin, and Disability Status
Records (OPM/GOVT-7).

\(g\) File on Position Classification Appeals, Job Grading Appeals, and
Retained Grade or Pay Appeals (OPM/GOVT-9).

\(h\) Employee Medical File System Records (OPM/GOVT-10).

\(2\) **Office of Government Ethics Government-Wide Systems of Records**

\(a\) Executive Branch Public Financial Disclosure Reports and Other
Ethics Programs Records (OGE/GOVT-1).

\(b\) Confidential Statements of Employment and Financial Interests
(OGE/GOVT-2).

\(3\) **Department of Labor Government-Wide Systems of Records.** Office
of Workers' Compensation Programs , Federal Employees' Compensation File
(DOL/GOVT-1).

\(4\) **GSA Systems of Records**

\(a\) Employment Under Commercial Activities Contracts (GSA/GOVT-2)

\(b\) Travel Charge Card Program (GSA/GOVT-3)

\(c\) Contracted Travel Services Programs (GSA/GOVT-4)

\(5\) **EEOC Systems of Records.** Equal Employment Opportunity
Complaint Records and Appeal Records (EEOC/GOVT-1)

\(6\) **FEMA Systems of Records.** Uniform Identification Systems for
Federal Employees Performing Essential Duties During Emergencies
(FEMA/GOVT-1)

\(7\) **VA Systems of Records**

\(a\) Applicants for Employment Under title 38, United States Code
(02VA135).

\(b\) Employee Medical File System Records (title 38)-VA (08VA05).

\(c\) Investigation Reports of Persons Allegedly Involved in
Irregularities Concerning VA Laws, Regulations, Etc.,-VA (11VA51).

\(d\) Individuals Serving on a Fee Basis or Without Compensation
(Consultant, Attendings, Others) Personnel Records-VA (14VA135).

\(e\) Personnel and Accounting Pay System--VA (27VA047).

\(f\) Employee Unfair Labor Practice Charges and Complaints, Negotiated
Agreement Grievances and Arbitrations-VA (09VA05).

\(g\) Grievance Records--VA (63VA05).

\(h\) VA Employee Counseling Services Program Records--VA (68VA05).

\(i\) General Personnel Records (title 38)--VA (76VA05).

\(j\) Health Care Provider Credentialing and Privileging Records--VA
(77VA12).

\(k\) Decentralized Hospital Computer Program (DHCP) Medical Management
Records--VA (79VA162).

\(l\) Workers' Compensation/Occupational Safety and Health Management
Information System--VA (86VA058).

\(m\) Professional Standards Board Action and Proficiency Rating Folder
(title 38)--VA (101VA05).

\(n\) Agency-Initiated Personnel Actions (title 38)--VA (102VA05).

\(o\) Health Professional Scholarship Program --VA (73VA14)

\(p\) Disaster Emergency Medical Personnel System (DEMPS)-VA (98VA104)

b\. **Uses of Information.** Individuals who are asked to provide
information protected by the Privacy Act will be informed of the
authority which authorizes the solicitation, the reasons for requesting
the information, how it may be used, the possible disclosures that VA
will make of this information and what the effects, if any, of not
providing the information will be.

c\. **Disposal Procedures.** The disposal and destruction of personnel
records shall be in accordance with existing Government-wide and VA
disposal schedules.

**7.** []{#ptIIpar7 .anchor}**RELEASE OF PERSONNEL FOLDERS.** Persons
authorized access to personnel folders shall be informed that the
information contained in the folders is for official use and must be
kept confidential. Individuals having custody of the personnel folders
will assure that folders are released only to authorized persons. These
procedures are outlined in 5 CFR 294 and supplemented by VA Directive
and Handbook 6300.4 Procedures for Implementing the Freedom of
Information Act.

**8.** []{#ptIIpar8 .anchor}**ACCESS TO RECORDS**

a\. **General.** Access to personnel records is limited to:

\(1\) **VA Officials.** VA employees who have a need for the record in
the performance of their official duties may access the record.

\(2\) **Record Subject.** The individual to whom the personnel record
pertains or the individual's personal representative designated in
writing may access the record.

\(3\) **Other Federal Officials.** OPM and General Accounting Office
officials, in the performance of their official duties and presenting
appropriate identification, may have access to personnel information and
records. The method of transmission and receipt of such information
should safeguard its confidential nature and protect its security.

**NOTE:** *If another individual accompanies the individual to whom the
record pertains, the individual to whom the record pertains must furnish
a written statement authorizing discussion of the record in the
accompanying individual\'s presence. The VA Form 5571, Authorization To
Disclose a Record in the Presence of a Third Party, may be used for this
purpose.*

b\. **Employee\'s Access to Records.** An employee or an employee\'s
representative, designated in writing, may have access to his or her
personnel records, as specified in 5 CFR, part 297, 38 CFR, part 1, 29
CFR subtitle A, sections 70a.1-70a.13, or as indicated in the applicable
system of records. Access will be granted in the presence of a human
resources office employee. The employee may have a copy made of all or
any portion of the record. If the employee's representative is granted
access, he or she may have a copy made of any or all documents that he
or she has been authorized to see by the employee.

c\. **Former Employee\'s Access to Records.** If a personnel record has
been retired to the National Personnel Records Center (Civilian), former
employee are to be advised to contact the National Personnel Records
Center (NPRC), 111 Winnebago Street, St. Louis, Missouri 63118,
regarding their records. Individuals must furnish a signed request with
the following information so their records can be located and their
request responded to: full name(s), current mailing address, date of
birth, social security number, last employing agency (including duty
facility, when applicable), and approximate dates of employment.

d\. **Identification.** Reasonable identification of individuals
requesting access, consistent with the nature of the record being
disclosed, shall be required.

e\. **Denial of Access.** If an individual's request for access is
denied, it will be denied in writing and the individual will be advised
of his or her opportunity to appeal the determination and of the
procedures for appeal. Appeals are to be filed under the applicable
regulations governing the system of records.

\(1\) **Records Under OPM Jurisdiction.** Those records and files
required by 5 CFR 293, including personnel folders, are maintained by
VA, but are under the control of the Office of Personnel Management.
When information contained in these records cannot be released, the
requester will be informed of the specific reason, citing the applicable
CFR or U.S.C. reference. The requester will also be advised that the
information being sought comes under the control of the OPM and that the
denial may be appealed within 10 workdays to the Office of the General
Counsel, Office of Personnel Management, Washington, DC 20415.

\(2\) **Other Personnel Records.** Other personnel records, such as VHA
professional standards board action folders, etc., are under VA control.
If a request for information from such records is denied, the requester
will be told the reason for the denial, citing the applicable VA
regulation which prohibits the release, and of the right to appeal the
denial to the Office of General Counsel (024), Department of Veterans
Affairs, 810 Vermont Street, NW., Washington, D.C. 20420.

**9.** []{#ptIIpar9 .anchor}**REQUESTS FOR CORRECTION OR AMENDMENT.** An
employee who believes the contents of a record pertaining to him or her
to be inaccurate, irrelevant, untimely or incomplete may request a
correction or amendment of the record under the regulations or
procedures that apply to the applicable system of records. Requests are
submitted as follows:

a\. VA Records. For records in VA systems of records, requests are
submitted in accordance with 38 CFR 1.579 and 1.580.

b\. **OPM Records.** Requests to amend OPM records are processed under 5
CFR, part 297, subpart C.

c\. Office of Workers' Compensation Program (OWCP) Records. Requests to
amend records concerning OWCP matters, must be submitted under the
Department of Labor's Privacy Act regulations, 29 CFR subtitle A,
sections 70a.1-70a.13.

d\. Office of Government Ethics (OGE) Records. Information about
contesting OGE records is contained in the applicable system of records
notice. (OGE/GOVT-1 and OGE/GOVT-2)

**10.** []{#ptIIpar10 .anchor}**DISCLOSURE OF PERSONNEL RECORDS**

a\. **Policy.** No information from personnel records may be released
outside VA except where permitted by law and as approved by officials
responsible for maintaining the record or their designees.

b\. **Written Consent**

\(1\) Except as provided in paragraph (2) below, the express written
consent of the individual to whom the personnel record pertains will be
obtained before any information protected by the Privacy Act may be
disclosed. FL 70-21, Request for Individual\'s Consent To Disclose
Records, may be used to request consent.

\(2\) As authorized by 5 U.S.C. 552a(b), information may be disclosed
without the employee's consent provided the disclosure would be:

\(a\) To VA officers and employees who have a need for the record in the
performance of their duties;

\(b\) Required under the Freedom of Information Act (5 U.S.C. 552);

\(c\) For a routine use listed in the applicable Federal Register system
of records notice;

\(d\) To the Bureau of the Census for purposes of planning or carrying
out a census or survey or related activity pursuant to title 13, U.S.C.;

\(e\) To a recipient who has provided VA with adequate written assurance
that the records will be used solely as a statistical or research
reporting record, and the record is transferred in a form that is not
individually identifiable;

\(f\) To the National Archives and Records Administration;

\(g\) To another agency or to an instrumentality of any governmental
jurisdiction within or under the control of the United States for a
civil or criminal law enforcement activity if the activity is authorized
by law, and if the head of the agency or instrumentality has made a
written request to the agency which maintains the records specifying the
particular portion desired and the law enforcement activity for which
the record is sought;

\(h\) To a person pursuant to a showing of compelling circumstances
affecting the health or safety of an individual if upon such disclosure
notification is transmitted to the last known address of the individual;

\(i\) To either House of Congress, or, to the extent of matters within
its jurisdiction, any committee or subcommittee thereof, any joint
committee of Congress or subcommittee of any such joint committee;

**NOTE:** *This provision does not authorize VA to release records to
individual members of Congress who are engaged in constituent service,
even if they are on a committee which oversees VA. These releases
require the employee's consent and are to be accounted for as specified
in paragraph c below.*

\(j\) To the Comptroller General, or any authorized representatives in
the course of the performance of the duties of the General Accounting
Office;

\(k\) Pursuant to an order of a court of competent jurisdiction; and

**NOTE:** *The "court" must be part of a Federal or state judicial
branch of government, not a part of either the executive or legislative
branches. An "order" must also be signed by a court official with the
power to enforce the order, e.g., with the power ultimately to impose
contempt sanctions. If the court official must go to some other entity
to enforce the order, e.g., to a Federal district court judge, the order
does not qualify for the purposes of the Privacy Act. An order signed by
an administrative law judge or a state board does not qualify as a court
order. Subpoenas are not court orders unless signed by a judge or some
other official who has the inherent power to enforce the order with the
intent that they be treated like an order. In addition, the order must
specifically require VA to produce the records. Orders giving VA
permission to file records if it chooses to do not qualify as a court
order for the purposes of this provision. Also, when VA produces the
record pursuant to a court order, it must mail notice of the disclosure
to the last known address of the subject of the record, unless the
individual is present in court when the records are produced.*

\(l\) To a consumer reporting agency pursuant to 31 U.S.C. 3711(e).

\(3\) Additional restrictions also apply to the disclosure of
information concerning substance abuse or mental health, as well as
information concerning the identity of certain medical research
subjects. See 42 U.S.C. 290dd-2 and 242(a).

c\. **Accounting for Disclosures.** A written accounting will be
maintained for all disclosures of personnel records except for official
use within VA, or if required by the Freedom of Information Act. VA Form
70-5572, Accounting of Records/Information Disclosure Under Privacy Act,
may be used for this purpose. The accounting shall include the date,
nature and purpose of each disclosure, and the name and address of the
person to whom the disclosure was made. The accounting will be retained
for the life of the record or for 5 years after the disclosure was made,
whichever is longer. The forms will be filed alphabetically within each
calendar year if the record does not change custody. However, if the
record may change custody, the disclosure is filed as a permanent
document in the record and separate statistical data must be kept to
meet the reporting requirements of the Biennial Privacy Act Report.
Examples of records that change custody include the Official Personnel
Folder, Merged Records Personnel Folder, Employee Medical Folder,
Employee Performance Folder, Competency Folder, Credentialing and
Privileging Folder, and OWCP Folder. Records of disclosure will be made
available to the employee, upon request, except for disclosures for law
enforcement purposes under 5 U.S.C. 522a(b)(7).

d\. **State Licensing Boards.** It is VHA policy to cooperate with a
State licensing board officially inquiring into the professional
performance history of currently employed and former VA employees who
are under the jurisdiction of that State board. Moreover, it is also VHA
policy to notify a State licensing board of jurisdiction that a
currently employed or separated health care employee whose behavior or
clinical practice so substantially failed to meet generally accepted
standards of clinical practice as to raise reasonable concern for the
safety of patients, in accordance with VHA Handbook 1100.18.

**11.** []{#ptIIpar11 .anchor}**FEES.** VA will provide a copy of a
record free of charge to an individual. Normally, this is accomplished
when the record is created (e.g., SF\'s 50-B, letters of reprimand,
SF\'s 2809, grievance and complaint files, etc.). Requests from
individuals for copies of records not previously furnished will be
provided free of charge. Fees may be assessed for additional copies of
records previously furnished to individuals in accordance with 38 CFR
1.577(f).

**LEGAL**

[]{#ptIII .anchor}**PART III. EMPLOYEE RESPONSIBILITIES AND CONDUCT**

**CONTENTS**

### **PARAGRAPH PAGE**

1\. [SCOPE](#ptIIIpar1) III-1

2\. [GENERAL PROVISIONS](#ptIIIpar2) III-1

3\. [RELATIONSHIP WITH BENEFICIARIES AND CLAIMANTS](#ptIIIpar3) III-1

4\. [STANDARDS OF CONDUCT IN SPECIAL AREAS](#ptIIIpar4) III-1

5\. [ADDITIONAL APPLICABLE GOVERNMENT-WIDE RULES ON](#ptIIIpar5)

###  [EMPLOYEE CONDUCT](#ptIIIpar5) III-1

6\. [FEDERAL CRIMINAL CODE PROVISIONS FOCUSED ON EMPLOYEES](#ptIIIpar6)
III-2

7\. [INTERPRETATION, EXEMPTIONS, AND WAIVER GUIDANCE](#ptIIIpar7)

###  [CONCERNING 18 U.S.C. 208](#ptIIIpar7) III-2

8\. [SECURITY AND LAW ENFORCEMENT AT FEDERAL AND VA
FACILITIES](#ptIIIpar8) III-2

# PART III. EMPLOYEE RESPONSIBILITIES AND CONDUCT

**1.** []{#ptIIIpar1 .anchor}**SCOPE.** This part applies to all VA
employees, including special government employees defined in 5 CFR 2635
and 2636. Additional conduct rules (limited to particular groups of
employees) and other ethical guidance appear elsewhere in this and other
parts of the handbook. Also, (especially where noted) refer to the
proper legal reference (United States Code and/or Code of Federal
Regulations) when addressing these issues in detail.

**2.** []{#ptIIIpar2 .anchor}**GENERAL PROVISIONS.** This part is
designed to assist in accomplishing Department objectives through the
exercise of informed judgment by each employee. Employees are expected
to abide by the conduct regulations and policies so that the highest
possible standards of honesty, integrity, impartiality, and ethical
behavior are maintained in the Department.

**3.** []{#ptIIIpar3 .anchor}**RELATIONSHIP WITH BENEFICIARIES AND
CLAIMANTS (38 CFR 0.735).** Employees are expected to be helpful to
beneficiaries, patients and claimants, but:

a\. An employee shall not procure intoxicants or drugs for, or attempt
to sell intoxicants or drugs to, patients or members, or give or attempt
to give intoxicants or drugs to them unless officially prescribed for
medical use;

b\. An employee shall not abuse patients, members, or other
beneficiaries, whether or not provoked.

**4.** []{#ptIIIpar4 .anchor}**STANDARDS OF CONDUCT IN SPECIAL AREAS**
**(38 CFR 0.735)**

a\. **Safety**

\(1\) Employees will observe safety instructions, signs, and normal
safety practices and precautions, including the use of protective
clothing and equipment.

\(2\) An employee shall report each work-connected injury, accident or
disease he or she suffers.

b\. **Furnishing Testimony.** Employees will furnish information and
testify freely and honestly in cases respecting employment and
disciplinary matters. Refusal to testify, concealment of material facts,
or willfully inaccurate testimony in connection with an investigation or
hearing may be grounds for disciplinary action. An employee, however,
will not be required to give testimony against himself or herself in any
matter in which there is indication that he or she may be or in involved
in a violation of law wherein there is a possibility of
self-incrimination.

**5.** []{#ptIIIpar5 .anchor}**ADDITIONAL APPLICABLE GOVERNMENT-WIDE
RULES ON EMPLOYEE CONDUCT (5 CFR 735)**

a\. **Gambling (§735.201).** Although all forms of gambling are
prohibited, promoting betting or acting as an agent for gamblers are
considered especially serious offenses.

b\. **Safeguarding the Examination Process (§735.202).** An employee
shall not engage (for any reason) in teaching, lecturing, or writing for
the purpose of the preparation of a person or class of persons for an
examination of the Office of Personnel Management (OPM) or Board of
Examiners for the Foreign Service that depends on information obtained
as a result of the employee\'s Government employment. Exceptions to this
are:

\(1\) If the information upon which the preparation is based has been
made available to the general public or will be made available on
request, or

\(2\) Such preparation is authorized in writing by the Director of OPM
or the Director General of the Foreign Service (or their designees).

c\. **Conduct Prejudicial to the Government (§735.203).** An employee
shall not engage in criminal, infamous, dishonest, immoral, or
notoriously disgraceful conduct, or other conduct prejudicial to the
Government. Employee conduct, on or off the job, which reflects
adversely on the Federal Government as the employer, may be grounds for
disciplinary action in addition to whatever penalty is prescribed by
law.

**6.** []{#ptIIIpar6 .anchor}**FEDERAL CRIMINAL CODE PROVISIONS FOCUSED
ON EMPLOYEES (18 U.S.C. §§201-209).** For information concerning federal
criminal code provisions which focus on employees (bribery, acts
affecting personal financial interests, activities of employees in
matters against the government, etc.), see 18 U.S.C. §§201-209.

**7.** []{#ptIIIpar7 .anchor}**INTERPRETATION, EXEMPTIONS, AND WAIVER
GUIDANCE CONCERNING 18 U.S.C. 208 (Acts affecting a Personal Financial
Interest) (5 CFR 2640).** 18 U.S.C. 208(a) prohibits officers or
employees of the executive branch, from participating in an official
capacity in particular matters in which they have a personal financial
interest, or in which certain persons or organizations with which they
are affiliated have a financial interest. However, in certain cases, the
nature and size of the financial interest and the nature of the matter
in which the employee would act are unlikely to affect an employee\'s
official actions. 5 CFR 2640 describes in part these financial interests
which are too remote or inconsequential to affect the integrity of the
services of the employees to which the prohibition applies. In these
circumstances, the appointing official may issue a waiver of the
conflict law. 5 CFR 2640 also provides guidance to agencies on the
factors to consider when issuing these individual waivers.

**8.** []{#ptIIIpar8 .anchor}**SECURITY AND LAW ENFORCEMENT AT FEDERAL
AND VA FACILITIES (38 CFR 1.218).** For information concerning rules and
regulations applied at all property under the charge and control of VA
and to all persons entering in or on such property, see 38 CFR 1.218.
This section deals with VA Police and Security issues such as conformity
with signs and emergency conditions, disturbances, gambling, alcoholic
beverages and narcotics, solicitation, sexual misconduct, etc. Such
issues, while not located specifically within HRM policy may be useful
in certain circumstances relating to employee responsibilities and
conduct. For additional rules relating to conduct while on any Federal
property, refer to 41 CFR 101.

**LEGAL**

[]{#ptIV .anchor}**PART IV. ETHICAL CONDUCT**

**CONTENTS**

### **PARAGRAPH PAGE**

1\. [ETHICS FRAMEWORK AND ADVICE](#ptIVpar1) IV-1

2\. [OUTSIDE ACTIVITIES AND TITLE 38 EMPLOYEES](#ptIVpar2) IV-1

3\. [SPECIAL GOVERNMENT EMPLOYEES AND PROCUREMENT OFFICIALS](#ptIVpar3)
IV-2

4\. [ETHICS ORIENTATION](#ptIVpar4) IV-3

5\. [REFERENCES](#ptIVpar5) IV-3

#### APPENDIX

IV-A. [FOURTEEN PRINCIPLES OF ETHICAL CONDUCT FOR FEDERAL
EMPLOYEES](#AppIVA) IV-A-1

# PART IV. ETHICAL CONDUCT

**1.** []{#ptIVpar1 .anchor}**ETHICS FRAMEWORK AND ADVICE**

a\. All VA employees are subject to the criminal conflict of interest
statutes at chapter 11 of title 18, United States Code and the Executive
Branch Standards of Conduct at 5 C.F.R. Part 2635.

b\. VA Regional Counsels and General Counsel (023) maintain ethics
expertise and provide ethics counseling services. By regulation,
employees consulting these ethics counselors receive a guarantee that
they will not be disciplined for conforming to the advice of these
ethics counselors. Employees are encouraged to contact their respective
Regional Counsels, and those at Central Office should contact the
Assistant General Counsel for Professional Staff Group III (023) who
serves as the Designated Agency Ethics Official. A [VA ethics
website](http://152.125.42.70/ethics/) is maintained by the Office of
the General Counsel.

c\. The U.S. Office of Government Ethics (OGE) maintains a
[website](http://www.usoge.gov/) that provides information on, and the
text of, the aforementioned ethics laws, and includes a list of other
agencies to contact regarding other applicable laws which do not fall
under OGE\'s jurisdiction, e.g. the Hatch Act. (See part V of this
handbook.) In addition to seeking counseling, employees concerned about
whether certain conduct will implicate these laws may thus access the
[OGE website.](http://www.usoge.gov/) The fourteen principles of ethical
conduct for Federal employees are listed in Appendix A of this part.

**2.** []{#ptIVpar2 .anchor}**OUTSIDE ACTIVITIES AND TITLE 38
EMPLOYEES**

a\. The following references are used to implement changes in Veterans
Health Administration (VHA) policy regarding outside activities and
title 38 employees.

\(1\) Public Law 104-262, the Veterans Health Care Eligibility Reform
Act of 1996;.

\(2\) Title 38 U.S.C., chapters 73 & 74;

\(3\) Title 18 U.S.C. Section 208(a); and

\(4\) 5 CFR Section 2635.

b\. Call Back provisions including call back for emergency, disaster, or
other patient care needs require full-time employees appointed under
title 38 U.S.C., chapter 73 and 74 to be able to meet those needs beyond
the minimum tour of duty and meet other institutional requirements as
prescribed by the Under Secretary for Health. Full-time physicians,
dentists, podiatrists, \[chiropractors,\] and optometrists will be
continuously subject to call, 24 hours per day, 7 days per week. Nurses,
nurse anesthetists, physician assistants, and Expanded-Function Dental
Auxiliary (EFDAs) are subject to call back, but entitled to premium pay.
Employees will continue to be expected to report for work on time,
capable of performing assigned duties without interference or
interruption from non-VA employment sources.

c\. Full-time title 38 employees may provide care for non-VA patients
outside their tours of duty. No advance approval to perform outside
professional activities will be required. However, due to the call back
provisions, employees are to provide management with information on how
they can be reached outside their VA tour of duty.

d\. Medical Center Directors are responsible for ensuring that all VHA
mission requirements and patient care needs are met. In support of these
needs and requirements, title 38 employees are subject to call back and
are responsible for ensuring that any outside employment they accept
will not conflict with their VA responsibilities. Employees who are
unable to meet these responsibilities due to outside commitments, may be
subject to disciplinary action.

e\. A Federal criminal statute prohibits a Government employee, whether
full-time, part-time, or a special Government employee, from
participating personally and substantially in a particular matter in
which the employee, to the employee's knowledge, has a financial
interest, if the matter would directly and predictably affect that
financial interest (18 U.S.C. 208(a); 5 CFR 2635.402). The statute
imputes to the employee, as a personal financial interest for purposes
of this restriction, the financial interests of the employee's spouse,
minor children, general partners, and any organization in which the
employee serves as an officer, director, trustee, general partner, or
employee. The law further imputes to the employee the financial
interests of a person or organization with which the employee is
negotiating for employment or has an arrangement for prospective
employment. The Government-wide Standards of Ethical Conduct for
Employees of the Executive Branch, distributed to all employees,
contains additional restrictions on outside activities. These are found
in 5 CFR 2635.

f\. The Designated Agency Ethics Official (Assistant General Counsel)
(023), Regional Counsels, and medical center Directors are responsible
for bringing to the attention of all title 38 employees conflict of
interest and employee Standard of Conduct requirements. Although
approval of outside professional activities is no longer required, when
facilities are involved in scarce medical specialist contracts, sharing
agreements, or affiliation agreements, particular care must be given to
ensure that employees do not violate the conflict of interest and other
applicable statutes. Of paramount concern is the impact on Service
Chiefs, Product Line Managers, and Chiefs of Staff. Each employee
involved in an outside contractual relationship is responsible for
ensuring that no violations of these statutes and standards occur. When
contractual relationships exist, medical center staff may wish to
consult with the appropriate Regional Counsel or Office of the General
Counsel (023) regarding possible conflicts of interest.

g\. Employees should consult their supervisors and facility Human
Resources Manager on matters such as patient care responsibilities, call
back, call schedules, and tours of duty.

**3.** []{#ptIVpar3 .anchor}**SPECIAL GOVERNMENT EMPLOYEES AND
PROCUREMENT OFFICIALS**

a\. **Special Government Employees.** This term, as defined in
18 U.S.C. 202(a), applies to employees who are retained, designated,
appointed, or employed to perform temporary duties, either on a
full-time or intermittent basis, with or without compensation, for a
period not to exceed 130 days during any consecutive 365-day period.
Special Government employees are subject to many of the ethics statutes
and to most of the Standards of Ethical Conduct. However, part of some
of the statutes and certain Standards do not apply at all to these
employees and some impose reduced standards.

b\. **Employees Involved in Procurements, Handling Procurements and/or
Administering Contracts.** These employees, while subject to the ethics
statutes and the Standards, are also subject to 41 U.S.C. 423. This
statute is implemented at part 3.104 of the Federal Acquisition
Regulation and imposes more rigorous standards relating to employment
discussions, post-employment activities, and disclosure of
procurement-sensitive information. For details, contact the ethics unit
at the Regional Counsels Office or at the Office of the General Counsel
in Washington, DC.

**4.** []{#ptIVpar4 .anchor}**ETHICS ORIENTATION.** All new employees
are required to be given a minimum of one hour to review the Standards
of Ethical Conduct for Employees of the Executive Branch. 5 CFR 2638.703
The Office of Human Resources and Administration provides a copy of the
Standards of Ethical Conduct for Employees of the Executive Branch to
all new employees.

**5.** []{#ptIVpar5 .anchor}**REFERENCES**

a\. 5 CFR 2635

b\. Executive Order (EO) 12674, as amended by EO 12731

[]{#AppIVA .anchor}**APPENDIX A.**

# FOURTEEN PRINCIPLES OF ETHICAL CONDUCT FOR FEDERAL EMPLOYEES

1\. Public service is a public trust, requiring employees to place
loyalty to the Constitution, the laws and ethical principles above
private gain.

2\. Employees shall not hold financial interests that conflict with the
conscientious performance of duty.

3\. Employees shall not engage in financial transactions using nonpublic
Government information or allow the improper use of such information to
further any private interest.

4\. An employee shall not, except as permitted by the Standards of
Ethical Conduct, solicit or accept any gift or other item of monetary
value from any person or entity seeking official action from, doing
business with, or conducting activities regulated by the employee's
agency, or whose interests may be substantially affected by the
performance or nonperformance of the employee's duties.

5\. Employees shall put forth honest effort in the performance of their
duties.

6\. Employees shall not knowingly make unauthorized commitments or
promises of any kind purporting to bind the Government.

7\. Employees shall not use public office for private gain.

8\. Employees shall act impartially and not give preferential treatment
to any private organization or individual.

9\. Employees shall protect and conserve Federal property and shall not
use it for other than authorized activities.

10\. Employees shall not engage in outside employment or activities,
including seeking or negotiating for employment, that conflict with
official Government duties and responsibilities.

11\. Employees shall disclose waste, fraud, abuse, and corruption to
appropriate authorities.

12\. Employees shall satisfy in good faith their obligations as
citizens, including all financial obligations, especially those -- such
as Federal, State, or local taxes -- that are imposed by law.

13\. Employees shall adhere to all laws and regulations that provide
equal opportunity for all Americans regardless of race, color, religion,
sex, national origin, age, or handicap.

14\. Employees shall endeavor to avoid any actions creating the
appearance that they are violating the law or the ethical standards set
forth in the Standards of Ethical Conduct. Whether particular
circumstances create an appearance that the law or these standards have
been violated shall be determined from the perspective of a reasonable
person with knowledge of the relevant facts.

**LEGAL**

[]{#ptV .anchor}**PART V. POLITICAL ACTIVITY**

**CONTENTS**

### **PARAGRAPH PAGE**

1\. [BACKGROUND](#ptVpar1) V-1

2\. [ADVICE](#ptVpar2) V-1

3\. [POLITICAL ACTIVITY UNDER THE HATCH ACT REFORM AMENDMENTS](#ptVpar3)
V-1

4\. [PENALTIES FOR VIOLATIONS](#ptVpar4) V-2

5\. [OTHER PROHIBITIONS](#ptVpar5) V-2

6\. [REFERENCES](#ptVpar6) V-2

# PART V. POLITICAL ACTIVITY

**1.** []{#ptVpar1 .anchor}**BACKGROUND.** 5 U.S.C. 7321 through 7326
permits employees outside of the career Senior Executive Service (SES)
and Board of Contract Appeal Judges freedom to engage in partisan
political activities. (Permitted and restricted activities for all SES
employees are contained in Directive and Handbook 5027, Senior Executive
Service.)

**2.** []{#ptVpar2 .anchor}**ADVICE.** For telephone numbers of the
nearest Regional Counsel Office, contact your local Human Resources
Management Office or Office of General Counsel, Washington, DC.

**3.** []{#ptVpar3 .anchor}**POLITICAL ACTIVITY UNDER THE HATCH ACT
REFORM AMENDMENTS.** The following permitted and prohibited activities
generally apply to VA employees, except career SES and the Board of
Contract Appeals judges:

  ----------------------------------- -----------------------------------
  **May** generally be involved in    ***May not*** use their official
  partisan political activities when  authority or influence to interfere
  off-duty.                           with an election.

  **May** be candidates for public    ***May not*** solicit, accept or
  office in nonpartisan elections.    receive political contributions
                                      unless both individuals are members
                                      of the same Federal labor or
                                      employee organization, the
                                      individual solicited is not a
                                      subordinate employee, and the
                                      solicitation is for a contribution
                                      to the organization's
                                      multicandidate political committee.

  **May** contribute money to         ***May not*** knowingly solicit or
  political organizations.            discourage the political activity
                                      of any person who has business
                                      before the agency.

  **May** attend political            ***May not*** engage in political
  fundraising functions.              activity while on duty, on Federal
                                      premises, in uniform, or using a
                                      vehicle owned or leased by the
                                      government.

  **May** attend and be active at     ***May not*** display partisan
  political rallies and meetings.     political buttons or posters while
                                      on duty or in any government
                                      office.

  **May** join and be an active       ***May not*** solicit, accept, or
  member of a political party or      receive political contributions
  club.                               from the general public.

  **May** campaign for or against     ***May not*** run for the
  candidates in partisan elections.   nomination or as a candidate for
                                      public office in a partisan
                                      election.

  **May** make campaign speeches for  ***May not*** complete allotment
  candidates in partisan elections.   forms for voluntary contributions
                                      to PACs at work or on-duty, or
                                      personally deliver the completed
                                      forms to his or her agency payroll
                                      office.

  **May** distribute campaign         ***May not*** solicit, accept, or
  literature in partisan elections.   receive individual uncompensated
                                      volunteer services from
                                      subordinates.

  **May** participate in a political  ***May not*** participate in
  convention as a delegate,           partisan political activities, or
  alternate, or proxy.                display partisan political posters
                                      or banners, in the office of
                                      Federal employee labor
                                      organizations which are located on
                                      Federal premises.

  **May** hold office in political    
  parties or clubs.                   

  **May** voluntarily contribute to a 
  PAC through a voluntary salary      
  allotment in agencies where the     
  agency head permits employees to    
  make such allotments.               
  ----------------------------------- -----------------------------------

**4.** []{#ptVpar4 .anchor}**PENALTIES FOR VIOLATIONS (5 U.S.C. 7326).**
Removal, unless the Merit System Protection Board determines by
unanimous vote to mitigate the penalty to suspension without pay for not
less than 30 days.

**5.** []{#ptVpar5 .anchor}**OTHER PROHIBITIONS.** In addition to
amending the Hatch Act, the Reform Amendments:

a\. Make it a crime to intimidate, threaten, command, or coerce a
Federal employee to engage in, or not to engage in, any political
activity.

b\. Forbid specified individuals from making, transmitting, soliciting,
requesting, considering, or accepting political recommendations.

**6.** []{#ptVpar6 .anchor}**REFERENCES.**

a\. 5 CFR, parts 733, 734

b\. [OSC website](http://www.osc.gov/)

**LEGAL**

[]{#ptVI .anchor}**PART VI. FINANCIAL DISCLOSURE**

**CONTENTS**

### **PARAGRAPH PAGE**

1\. [BACKGROUND](#ptVIpar1) VI-1

2\. [PUBLIC](#ptVIpar2) VI-1

3\. [CONFIDENTIAL](#ptVIpar3) VI-\[2\]

4\. [ETHICS TRAINING](#ptVIpar4) VI-\[3\]

5\. [NEW EMPLOYEE ORIENTATION](#ptVIpar5) VI-\[3\]

6\. [CONTACT INFORMATION](#ptVIpar6) VI-\[3\]

# PART VI. FINANCIAL DISCLOSURE AND ETHICS TRAINING

**1.** []{#ptVIpar1 .anchor}**BACKGROUND.** One component of the
Department's ethics program is the financial disclosure program. There
are two financial disclosure programs, public and confidential
\[required by the Ethics in Government Act of 1978, as amended (Pub.L.
95-521). Financial disclosure statements required for researchers are
not covered under the Act and the requirements for submitting a Research
Financial Conflict of Interest Statement are not outlined in this
handbook\].

**2.** []{#ptVIpar2 .anchor}**PUBLIC**

a\. **Who is a Filer.** \[Public filers include:

\(1\) Employees whose positions are classified above GS-15. See 5 CFR
2634.202(c).

\(2\) Employees, whose rate of basic pay is fixed, other than under the
General Schedule (i.e. title 38 employees), at a rate equal to or
greater than 120 percent of the minimum rate of basic pay for GS-15. See
5 CFR 2634.202(c). In most instances, the rate of basic pay used for the
purpose of this determination is the Step 1 equivalent, exclusive of
locality pay. For title 38 physicians and dentists, the rate of basic
pay used for this determination is the Step1 rate on the Physician and
Dentist Base and Longevity Pay Schedule.

\(3\) Employees who are appointed as administrative law judges pursuant
to 5 U.S.C. 3105. See 5 CFR 2634.202(d).

\(4\) Employees who are in a position which is excepted from the
competitive service by reason of being of a confidential or
policy-making character (i.e. Schedule C employees). See
5 CFR 2634.202(e).\]

b\. **When to File.** The Ethics in Government Act of 1978, as amended
(Pub.L. No. 95-521) requires that public filers file Public Financial
Disclosure Reports \[(SF 278) as follows\]:

\(1\) \[A "new entrant" report\] within 30 days after appointment to a
public filer position,

\(2\) \[An "incumbent" report\] annually, before May 15, while occupying
a public filer position, and

\(3\) \[A "terminee" report\] within 30 days after leaving a public
filer position.

\[(4) Employees appointed on November 1st through December 31st file a
new entrant report but do not need to file an incumbent report the
following year. Employees appointed on January 1st through October
31^st^ will still need to file an incumbent report no later than May of
the following year, in addition to the new entrant report.

\(5\) Employees who leave a public filer position in another Executive
Branch Federal agency within 30 days prior to appointment to VA do not
file a new entrant report. See 5 CFR 2634.201(b)(2)(i). Human Resources
staff should notify the Office of General Counsel (023C) of the
appointment and request the new employee to provide a copy of his last
incumbent report filed at the former agency to the Office of General
Counsel (023C).

\(6\) Public filers do not need to fill out a terminee report if, within
30 of separating from VA, the employee transfers to another covered
position with another Executive Branch Federal agency. Notify the Office
of General Counsel (023C) that the employee will transfer to another
covered position at a different Federal agency so the Office of General
Counsel can update its records and provide the gaining agency a copy of
the filer's previous SF 278.

\(7\) Public filers that will separate from the covered position on
January 1^st^ through May 14th need only file a terminee report. They do
not have to file an incumbent report for that year. The rules permit
employees combine the incumbent and terminee reports if the employee
will separate from the covered position after May 15 but before August
13. Employees should contact Office of General Counsel (023C) to request
the required extension necessary to file a combination report.\]

\[c.\] **Where to File.** Completed \[original SF 278\] reports must be
filed directly with the DAEO in the Office of General Counsel (023C) for
review and approval. \[Reports are considered filed when received by the
Office of General Counsel (023C).\] The address is Office of the General
Counsel (023C), 810 Vermont Avenue, NW, Washington, D.C. 20420. The DAEO
(023), the Assistant General Counsel for Professional Staff Group III\[,
or his designee\] in the Central Office, can grant extensions. Failure
to file the report in a timely manner results in a \$200 fine.

**3.** []{#ptVIpar3 .anchor}**CONFIDENTIAL**

a\. **Who is a Filer.** The determination as to \[which employee must
file\] a confidential financial disclosure report is \[based on the
duties of his or her position\]. (See 5 CFR 2634.904.) The Department
has determined which positions are confidential filing positions. The
DAEO, the Assistant General Counsel (023), has the authority to maintain
and amend the listing. A copy of the position listing can be obtained
from the DAEO's office or from a Regional Counsel's Office.

b\. **When to File.** The Ethics in Government Act of 1978, as amended
(Pub.L. No. 95-521) requires that \[ \] employees \[in designated
positions\] file Confidential Financial Disclosure Reports \[(OGE Form
450) as follows\]:

\(1\) \[A "new entrant" report\] within 30 days after assuming a
designated position and

\(2\) \[An "annual" report every year\], no later than October \[31\],
while occupying a designated position.

\[(3) Employees appointed to designated positions on August 2^nd^
through September 30^th^ file a new

entrant report but do not need to file an annual report in October of
the year of appointment. They will file an annual report in October of
the following year. Employees appointed on October 1^st^ through August
1^st^ will still need to file an annual report in October, in addition
to the new entrant report.

\(4\) Employees that transfer from another executive branch Federal
agency from a public or confidential filer position within 30 days of
appointment to VA, do not file a new entrant report. See 5 CFR
2634.903(b)(2)(i). Notify the Office of General Counsel (023C) of the
appointment and request the new employee to provide a copy of his last
annual report to the Office of General Counsel (023C).

\(5\) Employees who retire or otherwise leave VA [before]{.underline}
the October 31st due date are not required to complete a confidential
disclosure report. Employees that will retire or leave VA
[after]{.underline} the October 31st due date, however, are required to
complete a confidential disclosure report if they worked over 60 days in
the designated filing position during the fiscal year. See 5 CFR
2634.903(a).\]

c\. **What to File.** Certain \[confidential\] "filers," may substitute
a shorter "\[Confidential Certificate of\] No New Interests \[ \], \[OGE
Optional\] Form 450A" \[form\] instead of the \[long\] form \[ \]. The
short form may not be used \[by new entrant filers or by annual filers\]
for more than three consecutive years. Filers should contact either the
DAEO's office or a Regional Counsel's office for clarification of the
proper form to file.

d\. **Where to File.** \[ \] Central Office \[and Resident Engineer
filers must submit completed original\] confidential financial
disclosure reports \[ \] to the Office of General Counsel (023C). In the
field, all confidential financial disclosure reports \[ \] are submitted
to Regional Counsel within the appropriate jurisdiction. \[Reports are
considered filed when received by the appropriate office.\]

**4.** []{#ptVIpar4 .anchor}**ETHICS TRAINING.** Public financial
disclosure filers, i.e., SES, Schedule C, noncareer SES appointees and
\[certain\] title 38 executives are required to receive one hour of
\["verbal"\] ethics training each year by a qualified \[instructor\].
\[See\] 5 CFR 2638. \[The training regulation requires that all
confidential filers receive annual ethics training. Unlike the public
financial disclosure filers, the confidential financial disclosure
filers require "verbal" training only once every three calendar years
and may receive written briefings for the other two years*.* See 5 CFR
2638.705.\] Regional Counsel \[ethics staffs\] conduct training for
\[public and confidential filers\] in the field; the DAEO's ethics staff
in Central Office conducts training for \[public and confidential filers
in\] Central Office \[ \]. \[Facilities may require their employees to
receive additional ethics training and may request ethics attorneys as
presenters or secure videos or other materials for that purpose.\]

**5.** []{#ptVIpar5 .anchor}**NEW EMPLOYEE ORIENTATION.** \[Within 90
days from the time an employee begins working for VA,\] Human Resources
Management Service provides new employees a minimum of one hour to
review a copy of the Standards of Ethical Conduct for Employees of the
Executive Branch pursuant to

5 CFR 2638.703. The Standards are available on the [VA ethics
website.](http://152.125.42.70/ethics/)

**6.** []{#ptVIpar6 .anchor}**CONTACT INFORMATION.** For more
information, Human Resources Management Service staff or other VA
employees may contact their Regional Counsel or the DAEO.

**LEGAL**

[]{#ptVII .anchor}**PART VII. EMPLOYMENT OF RELATIVES**

# CONTENTS

### **PARAGRAPH PAGE**

1\. [COVERAGE](#ptVIIpar1) VII-1

2\. [DEFINITIONS](#ptVIIpar2) VII-1

3\. [RESTRICTIONS](#ptVIIpar3) VII-1

4\. [EXCEPTIONS (TITLE 5)](#ptVIIpar4) VII-2

# PART VII. EMPLOYMENT OF RELATIVES

**1.** []{#ptVIIpar1 .anchor}**COVERAGE**

a\. **Statutory.** The restrictions on the employment of relatives
applies to all VA employees.

\(1\) 5 U.S.C. 2302(b)(7), 3110 for title 5 positions.

\(2\) 5 U.S.C. 2105 (f) and 2302 (b) (7) for title 38 positions.

b\. **Regulatory.** 5 CFR, part 310 applies to appointment, employment,
promotion or advancement in the competitive service and the excepted
service in the Executive Branch. VA Handbook 5005, part II, chapter 3,
section A, paragraph 3d extends restrictions in those regulations to
title 38 employees.

**2.** []{#ptVIIpar2 .anchor}**DEFINITIONS (5 U.S.C. 3110)**

a\. **Public Official.** An officer, including the President and a
Member of Congress, a member of the uniformed services, an employee, or
any other individual in whom is vested the authority by law, rule or
regulation or to whom the authority has been delegated to appoint,
employ, promote or advance individuals, or to recommend individuals for
appointment, employment, promotion, or advancement in connection with
employment in an agency.

b\. **Relative.** With respect to a public official, an individual who
is related to the public official as father, mother, son, daughter,
brother, sister, uncle, aunt, first cousin, nephew, niece, husband,
wife, father-in-law, mother-in-law, son-in-law, daughter-in-law,
brother-in-law, sister-in-law, stepfather, stepmother, stepson,
stepdaughter, stepbrother, stepsister, half brother, or half sister.

**3.** []{#ptVIIpar3 .anchor}**RESTRICTIONS (5 U.S.C. 3110)**

a\. Public officials shall not appoint, employ, promote, advance,
advocate or recommend for appointment, employment, promotion, or
advancement, in or to a civilian position in the agency in which they
are serving or over which they exercise jurisdiction or control, any
individual who is a relative of the public official. Public officials
may not recommend or refer a relative for consideration by a public
official standing lower in the chain of command. (title 5 and title 38)

b\. Money shall not be paid from the Treasury as pay to an individual
appointed, employed, promoted, or advanced in violation of this section.
(title 5)

c\. Extreme care must be taken to avoid any possibility or likelihood
that the nepotism law may be violated in an employment action.
Appointing and selecting officials will be guided by the regulations and
policy requirements in 5 CFR, part 310. Management officials will take
appropriate actions to avoid situations which have the potential for, or
appearance of, being in violation of nepotism requirements. As a
minimum, management officials and HRM Officers will identify and
document those instances in which relatives are employed, or are being
considered for employment, in the same organizational element or in
positions within the same chain of command. These officials will review
all proposed personnel actions affecting relatives of employees to
assure that there is no violation of merit principles and that the
requirements contained in 5 U.S.C. 2302 and 5 U.S.C. 3110 have been met.
(title 5)

**4.** []{#ptVIIpar4 .anchor}**EXCEPTIONS (TITLE 5)**

a\. In the competitive service, preference eligibles may be appointed if
their names are within reach for selection from an appropriate
certificate of eligibles and no alternative selection can be made from
the certificate without passing over the preference eligible for a
non-preference eligible.

b\. In the event of an emergency resulting from a natural disaster or
similar unforeseen event, the Office of Personnel Management may
prescribe regulations authorizing the temporary employment of
individuals whose employment would otherwise be prohibited.

**LEGAL**

[]{#ptVIII .anchor}**PART VIII. CLAIMS AGAINST THE GOVERNMENT**

**CONTENTS**

### **PARAGRAPH PAGE**

1\. [SCOPE](#ptVIIIpar1) VIII-1

2\. [REIMBURSEMENT FOR DAMAGE OR DESTRUCTION OF](#ptVIIIpar2)

#####  [PERSONAL PROPERTY CAUSED BY A PATIENT](#ptVIIIpar2) VIII-1

3\. [REIMBURSEMENT FOR DAMAGE OR DESTRUCTION OF](#ptVIIIpar3)

[PERSONAL PROPERTY NOT CAUSED BY A PATIEN](#ptVIIIpar3)T VIII-1

# PART VIII. CLAIMS AGAINST THE GOVERNMENT

**1.** []{#ptVIIIpar1 .anchor}**SCOPE.** This part applies to monetary
claims made against the Federal government due to damage or loss of
personal property.

**2.** []{#ptVIIIpar2 .anchor}**REIMBURSEMENT FOR DAMAGE OR DESTRUCTION
OF PERSONAL PROPERTY CAUSED BY A PATIENT**

a\. Employees may claim reimbursement under 38 U.S.C. 703(e),
38 CFR 17.115, for their personal property damaged or destroyed by a
patient or patient member while the employee was engaged in the
performance of official duties. Personal property is that normally used
in day-to-day employment (e.g., eyeglasses, hearing aids, clothing,
etc.) which does not violate VA or field facility policies or
regulations.

b\. The supervisor or appropriate official will inspect the damage or
destroyed property, preferably at the time the incident occurs. All
damaged property should be repaired whenever possible, but replacement
is allowed when repair is not economically feasible. Reimbursement for
repair or replacement will be made only to the employee.

c\. Claims will be filed on VA Form 4629, Claim for Reimbursement for
Damaged or Destroyed Personal Property, as soon as practicable after the
damage or destruction occurs.

\(1\) The employee who sustains the loss will complete section I of VA
Form 4629, obtain the signatures of witnesses, if any, and submit the
claim to the supervisor or other appropriate official.

\(2\) An appropriate official, normally the chief of a service at a
medical center or equivalent at other field facilities, will review the
claim, obtain any additional information needed and, if possible,
determine the feasibility of repair. The official will complete section
II of the form and forward the claim to the field facility Director or
designee. The field facility Director or designee will approve the claim
and forward it for payment, or give the reasons for disapproval.

\(3\) A receipt, or a merchant's estimate, for the cost of repair or
replacement will accompany the claim. The facility Director may waive
this requirement when it is impractical to get a receipt or estimate.
The Director will certify that the amount claimed has been verified as
fair and reasonable.

d\. The Director of the facility where the incident occurs will
adjudicate an employee claim. The claimant may be an employee of another
VA organizational element, such as a regional office Veterans Benefits
Counselor on duty at a medical center.

**3.** []{#ptVIIIpar3 .anchor}**REIMBURSEMENT FOR DAMAGE OR DESTRUCTION
OF PERSONAL PROPERTY NOT CAUSED BY A PATIENT.** An employee may file a
claim under the Military Personnel and Civilian Employee's Claim Act, 31
U.S.C. 3721 (38 CFR 14.664 through 14.669) to recover not more than
\$40,000 due to damage or loss of personal property incident to service.
However, a claim of this type generally may not be considered unless it
was first filed under 38 U.S.C. 703(e), 38 CFR 17.115 (see par. 2 of
this part), and was denied.

**LEGAL**

[]{#ptIX .anchor}**PART IX. EMPLOYEE LIABILITY**

**CONTENTS**

### **PARAGRAPH PAGE**

1\. [SCOPE](#ptIXpar1) IX-1

2\. [EMPLOYEE LIABILITY](#ptIXpar2) IX-1

3\. [EXCLUSIONS](#ptIXpar3) IX-1

# PART IX. EMPLOYEE LIABILITY

**1.** []{#ptIXpar1 .anchor}**SCOPE.** This part applies to claims made
against Government employees for injury or death resulting from
negligent or wrongful acts or omission.

**2.** []{#ptIXpar2 .anchor}**EMPLOYEE LIABILITY**

a\. Title 28 U.S.C. §2671 --2680 provides that a suit against the United
States will be the exclusive remedy available to a claimant for injury
or death resulting from negligent or wrongful act or omission of any
Government employee while acting within the scope of employment.

b\. The claimant must file an administrative claim with the Federal
agency, which has 6 months to consider it prior to its approval or
denial. The Regional Counsel should be consulted for further information
on this subject.

**3.** []{#ptIXpar3 .anchor}**EXCLUSIONS**

a\. Employees who operate motor vehicles or privately owned vehicles on
Government property would not be covered for an accident while driving a
Government vehicle not in the scope of employment, such as deviating
from a generally traveled route in order to perform personal errands.
Those employees should consider carrying private liability insurance to
cover the situation in which the employee may not be afforded the
protection of 28 U.S.C. § 2679, as discussed above.

b\. If an employee operator of a motor vehicle is injured or killed in
the scope of employment, the sole resource against the Government would
be limited to the provisions of 5 U.S.C., chapter 81, Compensation for
Work Injuries, since that chapter of title 5 is exclusive remedy against
the Government for work-related injuries. See VA Directive 5810,
Managing Workers' Compensation Cases and Costs.

**LEGAL**

[]{#ptX .anchor}**PART X. EMPLOYEE ORGANIZATIONS AND ACTIVITIES**

**CONTENTS**

### **PARAGRAPH PAGE**

1\. [SCOPE](#ptXpar1) X-1

2\. [REFERENCES](#ptXpar2) X-1

3\. [POLICY](#ptXpar3) X-1

4\. [TYPICAL ACTIVITIES](#ptXpar4) X-1

5\. [EMPLOYEE ASSOCIATIONS AND SIMILAR GROUPS](#ptXpar5) X-1

6\. \[[PROFESSIONAL ASSOCIATIONS AND SIMILAR GROUPS](#ptxpar6)\] X-1

\[7.\] [MANAGEMENT-ASSOCIATION RELATIONSHIPS](#ptxpar6) \[X-2\]

\[8.\] [GENERAL LIMITATIONS](#ptXpar7) X-2

\[9.\] [PRIVILEGES AND STANDARDS](#ptXpar8) X-2

\[10.\] [CREDIT UNIONS](#ptXpar9) X-3

# 

# PART X. EMPLOYEE ORGANIZATIONS AND ACTIVITIES

**1.** []{#ptXpar1 .anchor}**SCOPE.** This part prescribes policies and
instructions concerning employee associations and other employee groups
of similar purpose or nature in VA, regardless of the name given the
organization. While credit unions come within this category, they are
subject to the special provisions of paragraph 9, rather than the other
provisions of this part.

**2.** []{#ptXpar2 .anchor}**REFERENCES.** 12 U.S.C. 1751-1775.

**3.** []{#ptXpar3 .anchor}**POLICY**

a\. VA recognizes that voluntary, cooperative activities by employees to
meet their mutual needs or interests, to serve their common welfare, or
to make their relationships and their employment more pleasant can
contribute substantially to a favorable work environment. VA therefore
looks with favor on such activities, and on democratically constituted
associations and similar groups voluntarily formed for those purposes.
Subject to the provisions of this chapter, an employee association or
similar group may engage in any activity in the interest of employees,
of the general type of those described in paragraph 4 but not limited to
those specifically mentioned therein, that its membership wishes to take
up.

b\. VA officials and employees, in their official capacities, will not
represent VA in any activity or function which is held in a facility
which segregates the races or excludes minority group participation.

**4.** []{#ptXpar4 .anchor}**TYPICAL ACTIVITIES.** Typical of the
activities appropriate for an employee association or similar group are
athletic, recreational, entertainment, social or cultural activities;
employee newspapers; welfare or emergency assistance funds; group
insurance other than Government-provided plans; and concessions (such as
for vending machines) which they may properly be authorized to operate.
These services are treated in more detail elsewhere in this manual.

**5.** []{#ptXpar5 .anchor}**EMPLOYEE ASSOCIATIONS AND SIMILAR GROUPS.**
The typical organization of this nature is composed of or open to all VA
employees in an installation. The payment of nominal dues may be a
requirement of membership. Normally, this organization is referred to as
an employee association, and engages in several activities or is formed
for specific or general purposes. Its individual activities may be
carried on directly by the association itself or by subordinate groups
therein. Groups may be formed for a limited purpose, either in the
absence of a typical association or separate from an existing one. This
chapter applies to all such groups as well as the typical associations,
even though references hereinafter are only to associations.

**6.** \[**PROFESSIONAL ASSOCIATIONS AND SIMILAR GROUPS. ** Activities
appropriate for a professional association or similar group are social,
fraternal, or professional activities that may include, but are not
limited to, such things as continuing education, training, and
professional development.  Activities may not include dealings ***that
assume the character of negotiations*** with management over personnel
policies, practices, or matters involving conditions of employment where
an exclusive bargaining unit exists.\]

\[**7.**\][]{#ptxpar6 .anchor} **MANAGEMENT-ASSOCIATION RELATIONSHIPS**

a\. Employee associations and their interests are essentially private
matters and their activities are private activities. Yet associations
are composed entirely of VA employees and are closely identified with
VA. The relationship between an association and local management is
therefore a cooperative one, based on mutual recognition of each
other\'s interests, responsibilities, rights, and limitations.

> b\. Local management consults with associations or employees wishing
> to start one, on their request, and makes available advisory
> assistance on such questions as organization, constitution, bylaws,
> finance, recreation, and publications. If there is sufficient evidence
> of employee interest, it is appropriate for management to help start
> an association or activity to meet a clear need. The human resources
> office will usually represent management in dealing with associations.

c\. VA gives encouragement, assistance, recognition, and privileges to
employee associations because of their services to employees and their
benefits to employee welfare and morale. At the same time, certain
safeguards are to be observed because VA is affected by the acts of its
employees and is concerned with their welfare and morale.

\[**8.**\] []{#ptXpar7 .anchor}**GENERAL LIMITATIONS**

a\. The activities of an employee association shall be compatible with
applicable laws, regulations, VA and facility policies, and good
community relations.

b\. No use may be made of the name, sponsorship, facilities or activity
of VA by or for any employee association or recreational organization
practicing discrimination based on race, creed, color or national
origin.

c\. The activities will be not represented, directly or implied, as
official activities of VA. The association\'s name, membership cards,
and publicity will be such as to make this clear.

d\. No funds appropriated to VA will be used for any employee
association activities.

e\. Restrictions on the use by employees of VA recreational facilities
and equipment, given elsewhere in this manual, shall include the use by
associations.

f\. Employee associations will not be recognized for the purpose of
presenting or considering individual personnel matters, grievances, or
appeals. (See VA Directive and Handbook 5023, Labor-Management
Relations.)

\[**9.**\] []{#ptXpar8 .anchor}**PRIVILEGES AND STANDARDS**

a\. As long as an association is constituted and operated in accordance
with the standards listed below, it will not only be given encouragement
and cooperation but will be authorized to:

\(1\) Conduct meetings or activities outside working hours on VA
premises in accordance with arrangements with the Human Resources
Officer or other appropriate administrative official:

\(2\) Publicize its activities by the use of bulletin boards and by
circularizing employees.

\(3\) Exercise such other privileges which will not add any expense to
the Government or interfere with the regularly assigned duties of
employees or with VA\'s services to veterans.

\[(4) All employee associations and similar groups (as defined in
paragraph 5) shall be afforded access to VA facilities to post notices
and conduct appropriate activities on equal bases. Such access shall not
be unreasonably withheld.\]

b\. The standards for an association to be given such privileges are
that:

\(1\) It is democratically organized and operated and all employees in
the area for which it is established are eligible for membership at
their option.

\(2\) It provides full opportunity for all members to elect those who
conduct its affairs, and elections are held at sufficiently frequent
intervals to permit membership control. In addition, the typical
association usually will have a constitution and bylaws.

\(3\) It has a financial audit of its funds made annually by a qualified
person or persons not a part of the association management, and
furnishes the facility head a copy of the audit report.

\(4\) Full information about it is supplied its members.

\(a\) If there is a constitution and bylaws, each member will be
furnished copies of these documents including all changes. This may be
done by periodic publication.

\(b\) Members will be currently informed on its activities.

\(c\) An annual and adequate financial report will be prepared and will
either be posted on all bulletin boards or otherwise effectively brought
to the attention of all members.

\(5\) If there is a constitution and bylaws, copies thereof and of
changes therein shall be supplied the installation\'s human resources
office. Copies of activity and financial reports will also be supplied
the human resources office.

\(6\) The association must recognize that VA has a legitimate concern
with its operations, and provide local VA management with a reasonable
opportunity to discharge its responsibility.

\[c. All professional or qualifying employee associations (and similar
groups) must be given equal access for use of VA facilities to the
extent the access is granted to other professional or qualifying
employee associations (and similar groups) at a particular facility.\]

\[**10.**\] []{#ptXpar9 .anchor}**CREDIT UNIONS**

a\. The credit union is one of the employee organizations looked upon
with favor, particularly whenever employees are interested in organizing
and operating one. Credit unions are to be chartered either under State
law or under the Federal Credit Union Act, 12 U.S.C. 1751-1775. This act
is administered by the National Credit Union Administration. Advice and
assistance with respect to the organization or operation of credit
unions may be secured either from the appropriate State agency or from
the National Credit Union Administration.

b\. In accordance with the provisions of 12 U.S.C. 1770, VA
installations may allot space for the transaction of credit union
business. In addition, credit unions may be permitted (1) to transact
business during working hours, provided there is no interference with
the performance of the employees\' official duties; (2) to publicize
their activities through the use of bulletin boards and by circularizing
individual employees; (3) to make incidental use of office equipment;
and (4) to exercise such other privileges as will not entail any expense
to the Government or disruption of the official activities of the office
or facility. The human resources management office will usually
represent management in dealing with credit unions.

\[**LEGAL**

**PART XI. LIMITATIONS ON REMUNERATED OUTSIDE PROFESSIONAL ACTIVITIES OF
INCUMBENTS OF CERTAIN VETERANS HEALTH ADMINISTRATION POSITIONS**

**CONTENTS**

### PARAGRAPH PAGE

1\. [SCOPE](#PtXIScope) XI-1

2\. [BACKGROUND](#PtXIBackground) XI-1

3\. [POLICY](#PtXIPolicy) XI-2

4\. [SUSPENSIONS AND WAIVERS](#PtXISuspensionsandWaivers) XI-3

5\. [ENROLLMENT IN FEDERAL HEALTH BENEFITS
PROGRAM](#PtXIEnrollinFederalHealthBenefitsProgram) XI-4

6\. [CERTIFICATION REQUIREMENTS](#PtXIReportingRequirements) XI-4

7\. [REFERENCES](#PtXIReferences) XI-4

**APPENDICES**

XI-A. [SAMPLE CERTIFICATION OF RELATIONSHIP WITH AN
AFFILIATE](#PtXIAppendixA) XI-A-1

XI-B. [CERTIFICATION OF COMPLIANCE](#PtXIAppendixB) XI-B-1\]

[]{#PtXI .anchor}

\[**PART XI. LIMITATIONS ON REMUNERATED OUTSIDE PROFESSIONAL ACTIVITIES
OF INCUMBENTS OF CERTAIN VETERANS HEALTH ADMINISTRATION POSITIONS**

[]{#PtXIScope .anchor}**1. SCOPE**

a\. The policies and procedures in this part apply to individuals who
occupy full time title 38 physician and dentist positions of facility
Director, Chief of Staff, Veterans Integrated Service Network (VISN)
Director, VISN Service/Product Line Manager, VISN Chief Medical Officer
and VA Central Office Clinical Executive (including Chief Officers,
Deputy Chief Officers, Chief Consultant and national program managers).
This policy does not pertain to facility positions below the level of
Chief of Staff, or to relationships with the Department of Defense. The
term Chief of Staff includes equivalent assignments in health care
systems such as Deputy Chief of Staff, Associate Chief of Staff or other
titles when incumbents of such positions function as the chief medical
officer for a facility within the health care system.

b\. This part preserves the discretion of affiliated institutions to
approve physicians to supervise residents and does not override any such
approval or limit the supervision itself. This part affects the
relationships between individual physicians and affiliated institutions
only insofar as is necessary, in accordance with law, to avoid conflicts
of interest and the appearance thereof.

c\. This part does not waive or limit conflict of interest laws,
regulations or policies.

[]{#PtXIBackground .anchor}**2. BACKGROUND**

a\. Federal criminal statute and regulation prohibit a Government
employee, whether full-time, part-time, or a special Government
employee, from participating personally and substantially in a
particular matter in which the employee, to the employee's knowledge,
has a financial interest, if the matter would directly and predictably
affect that financial interest (18 U.S.C. 208(a)). The statute imputes
to the employee, as a personal financial interest for purposes of this
restriction, the financial interests of the employee's spouse, minor
children, general partners, and any organization in which the employee
serves as an officer, director, trustee, general partner, or employee.
The law further imputes to the employee the financial interests of a
person or organization with which the employee is negotiating for
employment or has an arrangement for prospective employment. The
Government-wide Standards of Ethical Conduct for Employees of the
Executive Branch, applicable to all employees, contains additional
restrictions on outside activities. These are found in 5 CFR, part 2635,
and applied in VHA Handbook 1660.3.

b\. When VHA facilities are involved in scarce medical specialist
contracts, sharing agreements, or sole source contracting arrangements,
particular care must be given to ensure that employees do not violate
the conflict of interest and other applicable statutes. Of paramount
concern is the impact on facility Directors, Chiefs of Staff, Veterans
Integrated Service Network (VISN) Directors, VISN Service/Product Line
Managers, VISN Chief Medical Officers and VA Central Office Clinical
Executives (including Chief Officers, Deputy Chief Officers, Chief
Consultants and national program managers) who are employees or officers
of an affiliated institution, or who may have, or be negotiating for,
future employment with such institutions. (See VHA Handbook 1660.3)

c\. The policies presented below will enable facility Chiefs of Staff
and individuals in other covered positions to fully exercise their
authority and meet their responsibilities in representing the interest
of VA in negotiations and other dealings with affiliated institutions.
Facility Chiefs of Staff and individuals in other covered positions are
required to exercise oversight and due diligence in the execution of all
contracting relationships with affiliated institutions.

[]{#PtXIPolicy .anchor}**3. POLICY**

a\. In order to ensure that the senior clinician managers are not
restricted by conflicts of interest from carrying out the full
responsibilities of their positions with regard to contracts and other
matters with affiliated institutions, individuals occupying full-time
title 38 physician and dentist positions and serving as facility
Director, Chief of Staff, Veterans Integrated Service Network (VISN)
Director, VISN Service/Product Line Manager, VISN Chief Medical Officer
and VA Central Office Clinical Executive (including Chief Officers,
Deputy Chief Officers, Chief Consultants and national program managers)
are prohibited from accepting remuneration from institutions affiliated
with a VHA organization to which they are assigned, or which fall under
their official responsibility.

b\. This prohibition also applies to remuneration received by covered
employees from or through practice groups or any other entities
associated with the affiliated institution or from entities under
contract with the affiliated institution.

c\. For purposes of this prohibition, remuneration includes current and
ongoing benefits of significant monetary value, including but not
limited to wages, salary and other taxable benefits such as affiliate
contributions to life insurance, disability insurance and retirement
plans. General faculty benefits applicable to all faculty members that
are not part of an employment arrangement and are of minimal value, such
as parking permits, library access, admissions to artistic and athletic
events, access to online university resources, etc. are excluded from
this prohibition. Also excluded from this prohibition are royalties and
other remuneration earned from patents or copyrights, as well as the use
of titles and honorifics associated with faculty membership. Also
excluded from this prohibition are benefits to which an employee has
already accrued entitlement by prior employment with the affiliated
institution, such as funds within retirement accounts and subsidized
tuition benefits for employee or family members, as well as malpractice
coverage for uncompensated clinical care duties. A benefit is accrued if
its receipt is not contingent upon continued employment beyond the
effective date of this prohibition.

d\. Covered employees are also prohibited from negotiating or entering
into arrangements for future remuneration with institutions affiliated
with a VHA organization to which they are assigned, or which fall under
their official responsibility during a period of time that they are
carrying out the full range of their duties and responsibilities.
However, it is recognized that covered employees may have legitimate
need or desire to plan for future employment with affiliated
institutions. Therefore, covered employees must notify their supervisors
when they decide to seek employment opportunities with an affiliated
institution. After proper notification and approval of the supervisor,
covered employees may negotiate or enter into arrangements for
employment with affiliated institutions, provided they fully recuse
themselves from all negotiations with those institutions on behalf of
VA, and from participating in any other matter affecting the financial
interests of the affiliate during the period that such negotiations are
pending. The employee must immediately disclose to the supervisor when
an employment agreement is reached with the affiliate. The employee must
leave VA employment, or leave the covered position, within a six month
period from the time supervisory approval to negotiate is granted. If
the negotiations do not result in an employment arrangement, the
employee must immediately inform the supervisor of this outcome and
resume the full performance of their duties.

e\. Covered employees are prohibited from being employees of affiliated
institutions (except as provided for in paragraph 3g) and from holding
positions with affiliated institutions that involve a fiduciary
responsibility to the institution, such as officers, directors or
trustees; and from negotiating for, or having arrangements for future
employment even in cases where the covered employee receives no
remuneration for holding such a position or having such an arrangement
(except pursuant to a recusal as provided in paragraph 3d above).

f\. These prohibitions are effective 120 days from the date of this
issuance for individuals who are incumbents of covered positions on the
date of issue. They are effective for employees newly appointed to
covered positions as of 120 days from the date of their appointment to
the covered position.

g\. Covered employees may hold honorary titles with affiliated
institutions, such as Dean or Professor, and accept a faculty membership
title (Instructor, Assistant Professor, Associate Professor, Professor)
provided the affiliated institution provides no remuneration with the
title and the institution certifies in accordance with Appendix A of
this part that none of the relationships contemplated by the conflict of
interest law exists between the covered employee and the affiliated
institution.

h\. The conflict of interest law (18 U.S.C. 208) and VHA Handbook 1660.3
prohibit all covered Government employees who have outside employment,
or are officers, directors or trustees, from participating in a sharing
procurement or agreement between VA and entities with which the covered
Government employees have the outside employment or with which they are
officers, directors, or trustees, with whom they are negotiating for
outside employment, or with whom they have an arrangement for future
outside employment.

i\. This part of the handbook does not override either VHA Directive
2004-066, which requires that residents be supervised by credentialed
physicians; or paragraph 4h of VHA Handbook 1400.1, which requires that
physicians supervising residents be approved for that purpose by the
affiliated institution.

[]{#PtXISuspensionsandWaivers .anchor}**4. SUSPENSIONS AND WAIVERS**

a\. The Under Secretary for Health may suspend or waive these
prohibitions, in exceptional cases, if the services of an individual are
needed to assist communities to meet clinical needs that would otherwise
not be met, or when it is determined that a suspension or waiver would
be in the best interest of the Department. Grounds for waiver approval
may include (but are not limited to) the following: unique skills or
expertise required by the affiliated school or institution requiring the
covered employee to assume employee status, requirements for
administration or conduct of active research grants and protocols at the
affiliated institution requiring substantial presence requirements and
grant effort, and/or financial or personal hardship for the individual
or family.

b\. Waiver requests should be submitted in writing and delineate the
duties required of the covered employee, the approximate time commitment
of the additional duties (if necessary) to the affiliated institution,
and should contain discussion of other solutions or options as
appropriate to avoid conflict of interest, and how responsibilities
which the covered employee will not be able to carry out because of
conflicts as a result of the employment or appointment will be
accomplished. Such a suspension or waiver, if granted, will not suspend
or waive conflict of interest laws or regulations. Fully documented and
justified suspension or waiver requests are to be submitted by VISN
Directors, through the Office of the Deputy Under Secretary for Health
for Operations and Management (10N). Remuneration arrangements that
covered employees have in place at the time a waiver or suspension
request is submitted may continue while the request is considered by the
Under Secretary for Health.

[]{#PtXIEnrollinFederalHealthBenefitsProgram .anchor}**5. ENROLLMENT IN
FEDERAL HEALTH BENEFITS PROGRAM**

a\. Office of Personnel Management regulations allow any federal
employee who is eligible for Federal Employees Health Benefits (FEHB)
coverage to enroll or change enrollment when they lose coverage under
any private group health benefits program. These regulations will permit
a covered employee who must relinquish health benefits coverage from an
affiliated institution due to the requirements in this Handbook to
enroll in FEHB.

b\. Covered employees can enroll in FEHB coverage from 31 days prior to
leaving employment with the affiliate to 60 days after the loss of
coverage. The FEHB coverage will be effective the beginning of the first
full pay period after the election is made.

[]{#PtXIReportingRequirements .anchor}**6. CERTIFICATION REQUIREMENTS**

a\. Covered employees who become subject to the provisions of this part
120 days from the issue date will submit a certification to their
supervisor (facility Director, VISN Director, Chief Officer or the
Principal Deputy Under Secretary for Health, as appropriate) that they
are in full compliance with the provisions of this part within 30 days
of becoming subject to these provisions. Employees newly appointed to
covered positions will submit this certification to their supervisors
within 30 days of becoming subject to these prohibitions.

b\. Completed certifications will be filed on the left side of
employee's Merged Records Folder.

c\. A sample certification is provided in Appendix B.

[]{#PtXIReferences .anchor}**7. REFERENCES**

a\. VA Handbook 5025, Legal, Part IV

b\. VHA Handbook 1400.1

c\. VHA Handbook 1660.3

d\. 5 CFR, parts 2635 and 2640

e\. 18 U.S.C. 208 and 209

f\. 38 U.S.C. 7421\]

> []{#PtXIAppendixA .anchor}\[**APPENDIX A.**

**CERTIFICATION DESCRIBING A CHIEF OF STAFF'S\* (OR OTHER COVERED
EMPLOYEE'S) RELATIONSHIP WITH AN AFFILIATED INSTITUTION TO RULE OUT
CONFLICTS OF INTEREST UNDER THE FEDERAL CRIMINAL CODE**

{Affiliate letterhead}

{Date}

{The Affiliate} has appointed {\_\_\_\_\_\_\_\_\_\_\_\_\_}, M.D. {or
DDS} as {Dean of Veterans Affairs or similar title} and/or {faculty
rank} (use same nomenclature as is used in the attached appointment
papers). This appointment does not make Dr.
{\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_} an employee of {the Affiliate},
and {he or she} has no other relationship that constitutes an employment
between {himself or herself} and {the Affiliate}. Specifically {he or
she} is not compensated or, except as necessary in order to administer
the affiliation, supervised by {the Affiliate}.

Moreover, Dr. {\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_} is not negotiating
for employment with

{the Affiliate} and has no arrangement for future employment with {the
Affiliate}.

Finally, Dr. {\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_} is not an officer
or trustee of {the Affiliate}.

Specifically, {he or she\] has no fiduciary obligation to {the
Affiliate}.

My position with {the Affiliate} includes the authority to describe the
conditions

of Dr. {\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_}'s relationship with {the
Affiliate} on its behalf.

{[signature}]{.underline}

{Title}

\* Letter may be modified as appropriate for other covered positions\]

> []{#PtXIAppendixB .anchor}\[**APPENDIX B.**

**CERTIFICATION OF COMPLIANCE**

I {\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_} understand as an
incumbent of the position of

name

{\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_}in
{\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_}

position facility/organization

I am subject to all of the prohibitions and requirements of VA Handbook
5025, Part XI.

I hereby certify that I have read the provisions of this Part and am
fully compliant with its provisions as

of {\_\_\_\_\_\_\_\_\_\_\_}.

date

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_

Employee Signature Date

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_

Supervisor Signature Date\]