II 

116TH CONGRESS 

1ST SESSION S. 902 

To amend title 38, United States Code, to provide for the non-applicability 

of non-Department of Veterans Affairs covenants not to compete to 

the appointment of physicians in the Veterans Health Administration, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 27, 2019 

Mr. BOOZMAN (for himself and Mr. TESTER) introduced the following bill; 

which was read twice and referred to the Committee on Veterans’ Affairs 

A BILL 

To amend title 38, United States Code, to provide for the 

non-applicability of non-Department of Veterans Affairs 

covenants not to compete to the appointment of physicians in the Veterans Health Administration, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘VA Hiring Enhance5 ment Act’’. 


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1 SEC. 2. NON-APPLICABILITY OF NON-DEPARTMENT OF VET2 ERANS AFFAIRS COVENANTS NOT TO COM3 PETE TO APPOINTMENT OF PHYSICIANS IN 

4 THE VETERANS HEALTH ADMINISTRATION. 

5 (a) IN GENERAL.—Subchapter I of chapter 74 of title 

6 38, United States Code, is amended by adding at the end 

7 the following new section: 

8 ‘‘§ 7414. Effect of non-Department covenants not to 

9 compete on appointment of physicians 

10 ‘‘(a) NON-APPLICABILITY.—Except as provided in 

11 subsection (b), in the case of an individual who is an appli12 cant for appointment to a position as a physician in the 

13 Veterans Health Administration, any covenant not to com14 pete into which the individual has entered with a non-De15 partment facility or other non-Department entity or indi16 vidual shall have no force or effect with respect to the ap17 pointment of the individual to such a position. 

18 ‘‘(b) SERVICE OBLIGATION.—(1) Any individual who 

19 is appointed as a physician in the Veterans Health Admin20 istration and has entered into a covenant not to compete 

21 that is rendered non-applicable pursuant to subsection (a), 

22 shall, as a condition of such appointment, agree to provide 

23 clinical services at a Department medical facility for the 

24 duration of the period described in paragraph (2). 

25 ‘‘(2) The period described in this paragraph is the 

26 period that begins on the date on which an individual is 


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1 appointed as described in paragraph (1) and ends on the 

2 latter of the following dates: 

3 ‘‘(A) The date that is one year after such date 

4 of appointment. 

5 ‘‘(B) The date of the termination of any cov6 enant not to compete that is rendered non-applicable 

7 pursuant to subsection (a). 

8 ‘‘(3) The Secretary may waive the requirement under 

9 paragraph (1) with respect to an individual at the discre10 tion of the Secretary. 

11 ‘‘(c) TERMINATION OF DEPARTMENT EMPLOY12 MENT.—In the case of an individual who is appointed as 

13 a physician in the Veterans Health Administration and 

14 has entered into a covenant not to compete that is ren15 dered non-applicable pursuant to subsection (a), if the em16 ployment of the individual at the Veterans Health Admin17 istration is terminated for any reason before the specified 

18 termination date of such covenant, subsection (a) shall not 

19 apply with respect to such covenant after the date of the 

20 termination of the employment of the individual at the 

21 Veterans Health Administration. 

22 ‘‘(d) COVENANT NOT TO COMPETE DEFINED.—In 

23 this section, the term ‘covenant not to compete’ means an 

24 agreement between an employee and employer or a conVerDate Sep 11 2014 02:56 Apr 03, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S902.IS S902

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1 tractor and principal that restricts such employee or con2 tractor from performing— 

3 ‘‘(1) work for another employer for a specified 

4 period of time; 

5 ‘‘(2) work in a specified geographical area; or 

6 ‘‘(3) work for another employer performing 

7 work that is similar to the work such employee or 

8 contractor performed for the employer or principal. 

9 ‘‘(e) APPLICATION.—This section shall apply to any 

10 covenant not to compete that is entered into after the date 

11 of the enactment of the VA Hiring Enhancement Act.’’. 

12 (b) CLERICAL AMENDMENT.—The table of sections 

13 at the beginning of chapter 74 of such title is amended 

14 by inserting after the item relating to section 7413 the 

15 following new item: 

‘‘7414. Effect of non-Department covenants not to compete on appointment of 

physicians.’’. 

16 SEC. 3. MODIFICATION OF QUALIFICATIONS TO IMPROVE 

17 RECRUITMENT OF PHYSICIANS. 

18 Section 7402(b)(1) of title 38, United States Code, 

19 is amended— 

20 (1) in the matter preceding subparagraph (A), 

21 by inserting ‘‘or to be offered a contingent appoint22 ment to such a position’’ after ‘‘position’’; and 

23 (2) by striking subparagraphs (B) and (C) and 

24 inserting the following: 


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1 ‘‘(B)(i) have completed a post-graduate resi2 dency training program leading to board eligibility in 

3 a specialty satisfactory to the Secretary, or 

4 ‘‘(ii) with respect to an offer for a contingent 

5 appointment, complete a post-graduate residency 

6 training program leading to board eligibility in a 

7 specialty satisfactory to the Secretary by not later 

8 than two years after the date of such offer, and 

9 ‘‘(C)(i) be licensed to practice medicine, sur10 gery, or osteopathy in a State, or 

11 ‘‘(ii) with respect to an offer for a contingent 

12 appointment, be licensed to practice medicine, sur13 gery, or osteopathy in a State by not later than two 

14 years after the date of such offer.’’. 

Æ 


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