Veterans' Administration Health-Care Amendments of 1980
PL 96-330 (H.R.7102), enacted 08/26/1980

94 STAT. 1030 
PUBLIC LAW 96-330—AUG. 26, 1980 
Aug. 26, 1980 
[H.R. 7102] 
Veterans' 
Administration 
Health-Care 
Amendments of 
1980. 
38 u s e 101 note. 
Public Law 96-330 
96th Congress 
An Act 
To amend title 38, United States Code, to promote the recruitment and retention of 
physicians, dentists, nurses, and other health-care personnel in the Department of 
Medicine and Surgery of the Veterans' Administration, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled. That (a) this Act 
may be cited as the "Veterans' Administration Health-Care Amend-
ments of 1980". 
(b) Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of title 38, United 
States Code. 
TITLE I—HEALTH-CARE PERSONNEL AMENDMENTS 
PART A—PHYSICIANS AND DENTISTS SPECIAL PAY 
38 u s e 4104 
note. 
38 u s e 4118. 
PERMANENT AUTHORITY FOR PHYSICIANS AND DENTISTS 
COMPARABILITY PAY 
SEC. 101. Section 6 of the Veterans' Administration Physician and 
Dentist Pay Comparability Act of 1975 (Public Law 94-123; 38 U.S.C. 
4118 note) is amended by striking out "(1)" the first and third places it 
appears and by striking out paragraph (2) of subsection (a). 
REVISION OF SPECIAL PAY FOR PHYSICIANS AND DENTISTS 
SEC. 102, (a)(1) Paragraph (1) of subsection (a) of section 4118 is 
amended— 
(A) by striking out "hereunder" and inserting in lieu thereof 
"to carry out this section"; 
(B) by inserting "that (except as provided under subsection (d) 
of this section) is" after "in an amount"; 
(C) bv striking out "$13,500 per annum" and "$6,750 per 
annum and inserting in lieu thereof "$22,500 per annum" and 
"$10,000 per annum", respectively; 
(D) by inserting after "Department of Medicine and Surgery" 
the second place it appears the following: "on a full-time basis (or 
in the case of a physician employed on a part-time basis, a 
proportional amount of the maximum amount that would be 
paid under this section to such physician if such physician were 
employed on a full-time basis, calculated on the basis of the 
proportion which the part-time employment of such physician in 
the Department of Medicine and Surgery bears to full-time 
employment)"; and 
(E) by inserting after "so employed" the following: "on a full-
time basis (or in the case of a dentist employed on a part-time 
basis, a proportional amount of the maximum amount that 
physicians. 
PUBLIC LAW 96-330—AUG. 26, 1980 
94 STAT. 1031 
would be paid under this section to such dentist if such dentist 
were employed on a full-time basis, calculated on the basis of the 
proportion which the part-time employment of such dentist in 
the Department of Medicine and Surgery bears to full-time 
employment)". 
(2) Notwithstanding subsection (a)(2)(C) of section 4118 of title 38, 38 USC 4118 
United States Code, special pay may be paid under such section to a "°^®-
physician or dentist employed by the Department of Medicine and 
Surgery of the Veterans' Administration who is a reemployed annu-
itant if such physician or dentist was automatically separated before 
September 30, 1978, under section 8335(a) of title 5, United States 
Code, as in effect before such date, for having become 70 years of age. 
(b) Subsection (b) of such section is amended by striking out 38 USC 4118. 
"$5,000" both places it appears and inserting in lieu thereof "$7,000". 
(c) Subsections (c) and (d) of such section are amended to read as 
follows: 
"(c)(1) In the case of eligible full-time physicians appointed under Incentive special 
this chapter, the Administrator shall provide, in addition to the P^^i/ni^'^'™^ 
primary special pay provided for in subsection (b)(2) of this section 
and in accordance with regulations prescribed to carry out this 
section, incentive special pay of not more than $15,500 to any eligible 
physician. In prescribing such regulations to carry out this para-
graph, the Administrator shall take into account only the following 
factors and may pay no more than the following per annum amounts 
of incentive special pay to any full-time physician eligible therefor: 
"(A)(i) For full-time status, $6,000. 
"(ii) For tenure of service within the Department of Medicine 
and Surgery— 
"(I) of two years but less than five years, $1,000; 
"(II) of five years but less than eight years, $2,000; and 
"(III) of eight years or more, $3,000. 
"(iii) For service in a medical specialty with respect to which 
the Chief Medical Director has determined, pursuant to such 
regulations, that there are extraordinary difficulties in the 
recruitment or retention of qualified physicians, an amount (to 
be determined by the Chief Medical Director pursuant to such 
regulations) of not less than $4,000 nor more than $15,500. 
"(B) For service— 
"(i) as a Service Chief (or in a comparable position as 
determined by the Chief Medical Director), $9,900; 
"(ii) as a Chief of Staff or in an Executive Grade, $12,600; 
"(iii) as a Deputy Service Director or in a Director Grade, 
$13,000; 
"(iv) as a Service Director, $13,500; 
"(v) as a Deputy Assistant Chief Medical Director, $14,440; 
or 
"(vi) as an Associate Deputy Chief Medical Director or 
Assistant Chief Medical Director, $15,300. 
"(C) For— 
"(i) specialty or first board certification, $2,000; or 
"(ii) subspecialty or secondary board certification, $2,500. 
"(D) For service (i) in a specific geographic location with 
respect to which the Chief Medical Director has determined, 
pursuant to such regulations, that there are extraordinary 
difficulties in the recruitment or retention of qualified physi-
cians in the specific category of physicians, or (ii) in the Central 
Office of the Department of Medicine and Surgery, an amount (to 
94 STAT. 1032 
PUBLIC LAW 96-330—AUG. 26, 1980 
Incentive special 
pay for dentists. 
Incentive special 
pay for part-time 
physicians. 
be determined by the Chief Medical Director pursuant to such 
regulations) of not less than $2,000 nor more than $5,000. 
"(2) In the case of eligible full-time dentists appointed under this 
chapter, the Administrator shall provide, in addition to the primary 
special pay provided for in subsection (b)(2) of this section and in 
accordance with regulations prescribed to carry out this section, 
incentive special pay of not more than $7,500 to any eligible dentist. 
In prescribing such regulations to carry out this paragraph, the 
Administrator shall take into account only the following factors and 
may pay no more than the following per annum amounts of incentive 
special pay to any full-time dentist eligible therefor: 
"(A)(i) For full-time status, $1,000. 
"(ii) For tenure of service within the Department of Medicine 
and Surgery— 
"(I) of two years but less than seven years, $500; and 
"(II) of seven years or more, $1,000. 
"(iii) For service in a dental specialty with respect to which the 
Chief Medical Director has determined, pursuant to such regula-
tions, that there are extraordinary difficulties in the recruitment 
or retention of qualified dentists, an amount (to be determined by 
the Chief Medical Director pursuant to such regulations) of not 
less than $2,000 nor more than $7,500. 
"(B) For service— 
"(i) as a Service Chief (or in a comparable position as 
determined by the Chief Medical Director), $2,750; 
"(ii) as a Chief of Staff or in an Executive Grade, $3,500; 
"(iii) as a Deputy Service Director or in a Director Grade, 
$3,625; 
"(iv) as a Service Director, $3,750; 
"(v) as a Deputy Assistant Chief Medical Director, $4,000, 
or 
"(vi) as an Assistant Chief Medical Director, $4,250. 
"(C) For service in a specific geographic location with respect to 
which the Chief Medical Director has determined, pursuant to 
such regulations, that there are extraordinary difficulties in the 
recruitment or retention of qualified dentists in the specific 
category of dentists, an amount (to be determined by the Chief 
Medical Director pursuant to such regulations) of not less than 
$1,750 nor more than $2,500. 
"(3) In the case of eligible part-time physicians appointed under 
this chapter, the Administrator shall provide, in addition to the 
primary special pay provided for in subsection (b)(3) of this section 
and in accordance with regulations prescribed to carry out this 
section, incentive special pay of not more than $15,500 to any eligible 
physician. In prescribing such regulations to carry out this para-
graph, the Administrator shall take into account only the following 
factors and may pay no more than a proportional amount of the 
following per annum amounts of incentive special pay to any part-
time physician eligible therefor, which proportional amount shall be 
calculated on the basis of the proportion which the part-time employ-
ment in the Department of Medicine and Surgery of such physician 
bears to full-time employment: 
"(A)(i) For tenure of service within the Department of Medi-
cine and Surgery— 
"(I) of more than two years but less than five years, $750; 
"(II) of five years but less than eight years, $1,500; and 
"(III) of eight years or more, $2,250. 
PUBLIC LAW 96-330—AUG. 26, 1980 
94 STAT. 1033 
Incentive special 
pay for part-time 
dentists. 
"(ii) For service in a medical specialty with respect to which 
the Chief Medical Director has determined, pursuant to such 
regulations, that there are extraordinary difficulties in the 
recruitment or retention of qualified physicians, an amount (to 
be determined by the Chief Medical Director pursuant to such 
regulations) of not less than $3,000 nor more than $12,375. 
(B) For service— 
"(i) as a Service Chief (or in a comparable position as 
determined by the Chief Medical Director), $7,220; or 
"(ii) as a Chief of Staff or in an Executive Grade, $9,190. 
"(C) For— 
"(i) specialty or first board certification, $1,500; or 
"(ii) subspecialty or secondary board certification, $1,875. 
"(D) For service (i) in a specific geographic location with 
respect to which the Chief Medical Director has determined, 
pursuant to such regulations, that there are extraordinary 
difficulties in the recruitment or retention of qualified physi-
cians in the specific category 6f physicians, or (ii) in the Central 
Office of the Department of Medicine and Surgery, an amount (to 
be determined by the Chief Medical Director pursuant to such 
regulations) of not less than $1,500 nor more than $4,000. 
"(4) In the case of eligible part-time dentists appointed under this 
chapter, the Administrator shall provide, in addition to the primary 
special pay provided for in subsection (b)(3) of this section and in 
accordance with regulations prescribed to carry out this section, 
incentive special pay of not more than $7,500 to any eligible dentist. 
In prescribing such regulations to carry out this paragraph, the 
Administrator shall take into account only the following factors and 
may pay no more than a proportional amount of the following per 
annum amounts of incentive special pay to any dentist eligible 
therefor, which proportional amount shall be calculated on the basis 
of the proportion which the part-time employment in the Depart-
ment of Medicine and Surgery of such dentist bears to full-time 
employment: 
"(A)(i) For tenure of service within the Department of Medi-
cine and Surgery— 
"(I) of more than two years but less than seven years, $500; 
and 
"(II) of seven years or more, $1,000. 
"(ii) For service in a dental specialty with respect to which the 
Chief Medical Director has determined, pursuant to such regula-
tions, that there are extraordinary difficulties in the recruitment 
or retention of qualified dentists, an amount (to be determined by 
the Chief Medical Director pursuant to such regulations) of not 
less than $1,500 nor more than $5,625. 
"(B) For service— 
"(i) as a Service Chief (or in a comparable position as 
determined by the Chief Medical Director), $2,750; or 
"(ii) as a Chief of Staff or in an Executive Grade, $3,500. 
"(C) For service in a specific geographic location with respect to 
which the Chief Medical Director has determined, pursuant to 
such regulations, that there are extraordinary difficulties in the 
recruitment or retention of qualified dentists in a specific cate-
gory of dentists, an amount (to be determined by the Chief 
Medical Director pursuant to such regulations) of not less than 
$1,310 nor more than $1,875. 
"(5)(A) Except as provided in subparagraph (B) of this paragraph, a Exceptions 
physician or dentist may not be provided incentive special pay under 
94 STAT. 1034 
PUBLIC LAW 96-330—AUG. 26, 1980 
38 u s e 4118. 
Effective date. 
38 u s e 4118 
note. 
38 u s e 4118. 
Annuity 
computation. 
5 u s e 8301 et 
seq. 
5 u s e 8331. 
5 u s e 8341. 
both clauses (A) and (B) of paragraph (1), (2), (3), or (4) (whichever is 
applicable) of this subsection. 
"(B)(i) A physician or dentist serving as a Service Chief (or in a 
comparable position as determined by the Chief Medical Director) on 
a full-time basis may be provided incentive special pay under sub-
clauses (i) and (iii) of clause (A) as well as under clause (B) of 
paragraph (1) or (2) (whichever is applicable) of this subsection, 
"(ii) A physician or dentist serving as a Chief of Staff on a full-time 
basis may be provided incentive special pay under clause (A)(i) as well 
as under clause (B) of paragraph (1) or (2) (whichever is applicable) of 
this subsection. 
"(d) In determining— 
"(1) the total amount of special pay provided under this section 
to any physician or dentist for the purpose of determining the 
applicability to the special pay of such physician or dentist of the 
limitation specified in subsection (a) of this section on the total 
amount of such special pay; and 
"(2) the total amount of incentive special pay provided under 
subsection (c) of this section to any physician or dentist for the 
purpose of determining the applicability to the incentive special 
pay of such physician or dentist of the limitation specified in such 
subsection on the total amount of such incentive special pay, 
there shall be excluded any special pay provided to such physician or 
dentist under subsection (c)(1)(D), (c)(2)(C), (c)(3)(D), or (c)(4)(C) of this 
section for service in certain geographic locations.". 
(d) Subsection (e)(1) of such section is amended by striking out the 
third sentence thereof. 
(e) The amendments made by this section shall apply with respect 
to pay periods beginning after December 31,1980. 
CREDITING OF SPECIAL PAY FOR RETIREMENT AND INSURANCE PURPOSES 
SEC. 103. (a) Section 4118(f) is amended— 
(1) by striking out "Any" and inserting in lieu thereof "(1) 
Except as provided in paragraph (2) of this subsection, any"; 
(2) by striking out "81, 83, or 87" and inserting in lieu thereof 
"81 or 83"; and 
(3) by adding at the end thereof the following new paragraphs: 
"(2) Additional compensation paid as special pay under this section 
after September 30, 1980, to any full-time employee shall be included 
in basic pay for purposes of chapter 83 of title 5. Notwithstanding the 
preceding sentence, special pay paid to any full-time employee after 
September 30, 1980, shall be included in average pay, as defined in 
section 8331(4) of such title, for the purposes of computing an annuity 
under such chapter only i
f
— 
"(A) the annuity is paid under section 8337 of title 5 or under 
subsection (d) or (e) of section 8341 of such title; or 
"(B) the employee has completed not less than 15 years of full-
time service in the Department of Medicine and Surgery (except 
that, regardless of the length of such employee's service, no 
special pay may be included in average pay in computing an 
annuity that commences before October 1, 1985, and only one-
half of any special pay paid after September 30, 1980, may be 
included in average pay in computing an annuity that com-
mences on or after October 1, 1985, but before October 1, 1990). 
"(3) Any additional compensation provided as special pay under 
this section shall be considered as annual pay for the purposes of 
PUBLIC LAW 96-330—AUG. 26, 1980 
94 STAT. 1035 
chapter 87 of title 5, relating to life insurance for Federal 
employees.". 
(b)(1) Not later than January 1, 1981, the Administrator of Veter-
ans' Affairs shall notify each employee of the Veterans' Administra-
tion who on October 1, 1980, was a full-time physician or dentist in 
the Department of Medicine and Surgery of the provisions of para-
graph (2) of section 4118(f) of title 38, United States Code, as added by 
subsection (a), and include in such notice an explanation of the 
provisions of such paragraph and of the right of such employee to 
make an election under paragraph (2). 
(2) Each employee described in paragraph (1) may elect not to have 
additional compensation provided such employee as special pay 
under section 4118 of such title included as basic pay (as provided for 
under paragraph (2) of section 4118(f) of such title, as added by 
subsection (a)) for purposes of chapter 83 of title 5, United States 
Code. Any such election shall be in writing and shall be transmitted 
to the Administrator of Veterans' Affairs not later than April 1,1981. 
REPORTS ON ADEQUACY OF SPECIAL PAY FOR PHYSICIANS AND DENTISTS 
SEC. 104. (a) Section 4118 (as amended by sections 102 and 103) is 
further amended by adding at the end the following new subsection: 
"(g)(1) It is the policy of Congress to assure that the levels of total 
pay for Veterans' Administration physicians and dentists are fixed at 
levels reasonably comparable (A) with the levels of total pay of 
physicians and dentists employed by or serving in other departments 
and agencies of the Federal Government, and (B) with the income of 
non-Federal physicians and dentists, so as to make possible the 
recruitment and retention of a well-qualified employee work force of 
physicians and dentists capable of providing quality care for eligible 
veterans. 
"(2) To assist the Congress and the President in carrying out the 
policy stated in paragraph (1) of this subsection, the Administrator 
shall— 
"(A) define the bases for pay distinctions, if any, among various 
categories of physicians and dentists, including between physi-
cians and dentists employed by the Veterans Administration 
and physicians and dentists employed by other departments and 
agencies of the Federal Government and between all Federal 
sector and non-Federal sector physicians and dentists; 
"(B) obtain measures of income from the employment or 
practice of physicians and dentists in the non-Veterans' Adminis-
tration sector, including Federal and non-Federal sectors, for use 
as guidelines for setting and periodically adjusting the amounts 
of special pay for Veterans' Administration physicians and 
dentists; 
"(C) submit a report to the President, on such date as the 
President may designate but not later than December 31, 1982, 
and once every two years thereafter, recommending appropriate 
amounts of special pay to carry out the policy set forth in 
paragraph (1) of this subsection with respect to the pay of 
Veterans' Administration physicians and dentists; and 
"(D) include in such recommendations, when considered appro-
priate and necessary by the Administrator, modifications of the 
special pay levels set forth in this section (i) whenever the 
Veterans' Administration is unable to recruit or retain a suffi-
cient work force of well-qualified physicians and dentists because 
the incomes of non-Veterans' Administration physicians and 
5 u s e 8701 et 
seq. 
Election of 
additional 
compensation, 
notification. 
38 u s e 4118 
note. 
38 u s e 4118. 
5 u s e 8301 et 
seq. 
Transmittal to 
VA 
Administrator. 
38 u s e 4118. 
Report to 
President. 
94 STAT. 1036 
PUBLIC LAW 96-330—AUG. 26, 1980 
dentists performing comparable types of duties are significantly 
in excess of the levels of total pay (including basic pay and special 
pay) of Veterans' Administration physicians and dentists, or (ii) 
whenever other extraordinary circumstances are such that spe-
cial pay levels are needed to recruit or retain a sufficient number 
of well-qualified physicians and dentists. 
Presidential pay 
"(3) The President shall include in the Budget next transmitted to 
recommendations, the Congress Under section 201 of the Budget and Accounting Act, 
1921 (31 U.S.C. 11), after the submission of each report of the 
Administrator under paragraph (2)(C) of this subsection recommen-
dations with respect to the exact rates of special pay for physicians 
and dentists under this section. 
"(4) Not later than April 30 of each year, the Administrator shall 
submit to the Committees on Veterans' Affairs of the Senate and 
House of Representatives a report regarding the implementation of 
this section. Each such report shall include— 
"(A) a review of the implementation of this section (including 
the Administrator's and Chief Medical Director's actions, find-
ings, recommendations, and other activities under this section) to 
date for the fiscal year during which the report is submitted and 
for such portion of the preceding fiscal year as was not included 
in the previous annual report; and 
"(B) a plan in connection with the implementation of this 
section for the remainder of the fiscal year during which the 
report is submitted and for the succeeding fiscal year.". 
(b) Section 3 of the Veterans' Administration Physician and Dentist 
Pay Comparability Act of 1975 (Public Law 94-123; 89 Stat. 673) is 
repealed. 
Report to 
congressional 
committees. 
Repeal. 
38 u s e 4118 
note. 
38 u s e 4101. 
38 u s e 4103, 
4104, 4114. 
5 u s e 3133 note. 
5 
use 
3131, 
3391, 
3591, 
4311, 
4507, 
5381, 
7541. 
38 
use 
4103. 
38 u s e 4107. 
HEALTH-CARE PROFESSIONALS AND DIRECTORS OF MEDICAL FACILITIES 
EXEMPTED FROM SENIOR EXECUTIVE SERVICE 
SEC 105. (a) Section 4101 is amended by adding at the end thereof 
the following new subsection: 
"(e) Physicians, dentists, nurses, and other health-care professionals 
employed by the Department of Medicine and Surgery and appointed 
under section 4103, 4104(1), or 4114 of this chapter and persons 
appointed under section 4103(a)(8) of this chapter are not subject to the 
provisions of section 413 of the Civil Service Reform Act of 1978 or the 
following provisions of title 5: subchapter II of chapter 31, subchapter 
VIII of chapter 33, subchapter V of chapter 35, subchapter II of chapter 
43, section 4507, subchapter VIII of chapter 53, and subchapter V of 
chapter 75.". 
(b) Section 4103(a) is amended by redesignating clause (8) as clause 
(9) and by inserting after clause (7) the following new clause (8): 
"(8) Such directors of hospitals, domiciliary facilities, medical 
centers, and outpatient facilities as may be appointed by the 
Administrator upon the recommendation of the Chief Medical 
Director.". 
(c) Section 4107(c) is amended by inserting "(1)" after "(c)" and by 
adding at the end the following new paragraphs: 
"(2) Notwithstanding any other provision of this title, the terms 
and conditions of employment of any person to whom paragraph (1) of 
this subsection applies shall (except as provided in paragraph (3) of 
this subsection) be the same as those applicable under this title to a 
physician serving as a director of a hospital, domiciliary faciUty, 
medical center, or outpatient facility. 
PUBLIC LAW 96-330—AUG. 26, 1980 
94 STAT. 1037 
"(3) Notwithstanding the provisions of section 4101(e) of this title, ^"^«' P 1036. 
any person to whom paragraph (1) of this subsection applies shall be 
deemed to be a career appointee for the purposes of section 4507 of 
title 5.". 
PART B—MISCELLANEOUS IMPROVEMENTS IN PERSONNEL 
ADMINISTRATION 
RATES OF PAY FOR TRAVEL AND OVERTIME FOR NURSES 
SEC. 111. Section 4107(e) is amended— 
38 USC 4107. 
(1) by adding at the end of paragraph (5) the following new 
sentence: "For the purposes of this paragraph, the period of a 
nurse's officially ordered or approved travel away from such 
nurse's duty station may not be considered to be hours of service 
unless— 
"(A) such travel occurs during such nurse's tour of duty; or 
"(B) such travel (i) involves the performance of services 
while traveling, (ii) is incident to travel that involves the 
performance of services while traveling, (iii) is carried out 
under arduous conditions as determined by the Administra-
tor, or (iv) results from an event which could not be sched-
uled or controlled administratively."; 
(2) by inserting "or on a holiday designated by Federal statute 
or Executive order" in paragraph (8) after "regular hours"; and 
(3) by adding at the end the following new paragraph: 
"(10) Notwithstanding any other provision of law, if the Adminis-
trator determines it to be necessary in order to obtain or retain the 
services of nurses entitled to additional pay under this subsection, the 
Administrator may increase the amount of additional pay authorized 
under this subsection to be paid to nurses at any specific Veterans' 
Administration health-care facility in order to provide additional pay 
in an amount competitive with, but not exceeding, the amount of the 
same type of pay that is paid to the same category of nurses at non-
Federal health-care facilities in the same geographic area as such 
Veterans' Administration health-care facility (as determined by a 
reasonably representative sampling of such non-Federal facilities).". 
ADMINISTRATIVE ADJUSTMENTS IN RATES OF BASIC PAY 
SEC. 112. Section 4107 is amended by adding at the end the 
following new subsection: 
"(g)(1) Notwithstanding any other provision of law but subject to 
paragraphs (2), (3), and (4) of this subsection, when the Administrator 
determines it to be necessary in order to obtain or retain the 
services— 
"(A) of physicians, dentists, podiatrists, optometrists, nurses, 
physician assistants, or expanded-function dental auxiliaries 
appointed under this subchapter; or 
'(B) of health-care personnel who— 
"(i) are employed in the Department of Medicine and 
Surgery (other than administrative, clerical, and physical 
plant maintenance and protective services employees); 
"(ii) are paid under the General Schedule pursuant to 
section 5332 of title 5; 
"(iii) are determined by the Administrator to be providing 
either direct patient-care services or services incident to 
direct patient-care services; and 
94 STAT. 1038 
PUBLIC LAW 96-330—AUG. 26, 1980 
Basic pay rate 
increase. 
5 u s e 5332. 
Increase denial. 
"(iv) would not otherwise be available to provide medical 
care and treatment for veterans, 
the Administrator may increase the minimum, intermediate, or 
maximum rates of basic pay authorized under applicable statutes and 
regulations. Any increase in such rates of basic pay may be made on a 
nationwide, local, or other geographic basis, for one or more of the 
grades listed in the schedules in subsection (b)(1) of this section, for 
one or more of the health personnel fields within such grades, or for 
one or more of the grades of the General Schedule under section 5332 
of such title. 
"(2) Increases in rates of basic pay may be made under paragraph 
(1) of this subsection only in order— 
"(A) to provide pay in an amount competitive with, but not 
exceeding, the amount of the same type of pay paid to the same 
category of health-care personnel at non-Federal health-care 
facilities in the same labor market; 
"(B) to achieve adequate staffing at particular facilities; or 
"(C) to recruit personnel with specialized skills, especially 
those with skills which are especially difficult or demanding. 
"(3) The amount of any increase under paragraph (1) of this 
subsection in the maximum rate for any grade may not (except in the 
case of nurse anesthetists) exceed the amount by which the maximum 
for such grade (under applicable provisions of law other than this 
subsection) exceeds the minimum for such grade (under applicable 
provisions of law other than this subsection), and the maximum rate 
as so increased may not exceed the rate paid for individuals serving 
as Assistant Chief Medical Director. 
"(4) In the exercise of the authority provided in paragraph (1) of 
this subsection to increase the rates of basic pay for any category of 
personnel not appointed under this subchapter, the Administrator 
shall, not less than ninety days prior to the effective date of a 
proposed increase, notify the President of the Administrator's inten-
tion to provide such an increase. If, prior to such effective date, the 
President disapproves such increase and provides the appropriate 
committees of the Congress with a written statement of the Presi-
dent's reasons for such disapproval, such proposed increase shall not 
take effect.". 
38 u s e 4108. 
"Affiliated 
institution." 
Post, p. 1039. 
' 'Remuneration.' 
38 u s e 4108 
note. 
CHIEFS OF STAFF REQUIRED TO BE EMPLOYED ON A FULL-TIME BASIS 
SEC. 113. (a) Section 4108 is amended by striking out subsections (b) 
and (c) and inserting in lieu thereof the following: 
"(b) Any person serving as a Chief of Staff of a Veterans' Adminis-
tration health-care facility shall be appointed on a full-time basis. 
"(c) As used in this section: 
"(1) The term 'affiliated institution' means any medical school 
or other institution of higher learning with which the Adminis-
trator has a contract or agreement as referred to in section 
4112(b) of this title for the training or education of health 
personnel. 
"(2) The term 'remuneration' means the receipt of any amount 
of monetary benefit from any non-Veterans' Administration 
source 
in 
payment 
for 
carrying 
out 
any 
professional 
responsibilities.'. 
(b) Any individual who on the date of the enactment of this Act is 
serving as a Chief of Staff of a Veterans' Administration health-care 
facility on less than full-time basis may continue to serve in that 
capacity on a part-time basis so long as such individual's proportion 
PUBLIC LAW 96-330—AUG. 26, 1980 
94 STAT. 1039 
of full-time service is not less than the proportion of full-time service 
in which such individual was serving on such date of enactment. 
RETIREMENT CREDIT FOR PART-TIME EMPLOYEES 
SEC. 114. The text of section 4109 is amended to read as follows: ^^ use 4109. 
"(a) Except as provided in subsection (b) of this section, persons 
appointed to the Department of Medicine and Surgery shall be 
subject to the provisions of and entitled to benefits under chapter 83 
of title 5. 
5 u s e 8301 e^ 
"(b) Notwithstanding any other provision of law, an individual ^^^• 
retiring on or after October 1, 1981, who served at any time in a 
position in the Department of Medicine and Surgery to which such 
individual was appointed under this subchapter shall receive service 
credit for purposes of section 8339 of title 5 for any period of service in 
such Department served on less than a full-time basis on a propor-
tionate basis equal to the fraction that such service bears to full-time 
service. In computing the annuity of any individual whose service is 
so credited, the full annual rate of basic pay shall be deemed to be the 
individual's rate of basic pay for the purpose of determining average 
pay, as defined by section 8331(4) of title 5.". 
VETERANS' ADMINISTRATION REPRESENTATIVES ON DEANS' COMMITTEES 
SEC. 115. Section 4112(b) is amended by inserting "(including 38 use 4112. 
appropriate representation from the full-time staff)" after "Veterans' 
Administration". 
RELATIONSHIP BETWEEN TITLE 38 MEDICAL PERSONNEL SYSTEM 
PROVISIONS AND OTHER PROVISIONS OF LAW 
SEC. 116. (a)(1) Subchapter I of chapter 73, as amended by section 
116, is amended by adding at the end thereof the following new 
section: 
38 u s e 4119. 
"§4119. Relationship between this subchapter and other provi-
sions of law 
"Notwithstanding any other provision of law, no provision of title 5 
or any other law pertaining to the civil service system which is 
inconsistent with any provision of this subchapter shall be considered 
to supersede, override, or otherwise modify such provision of this 
subchapter except to the extent that such provision of title 5 or of 
such other law specifically provides, by specific reference to a 
provision of this subchapter, for such provision to be superseded, 
overridden, or otherwise modified.". 
(2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 4118 the 
following new item: 
"4119. Relationship between this subchapter and other provisions of law.". 
(b) Section 4114 is amended by adding at the end thereof the 38 use 4ii4. 
following new subsection: 
"(g) In accordance with the provisions of section 4119 of this title, Supra. 
the provisions of chapter 34 of title 5 shall not apply to part-time 5 use 3401 et 
appointments under this section.". 
^^'^ 
79-194 
O—81—pt, 1 
69 : QL3 
94 STAT. 1040 
PUBLIC LAW 96-330—AUG. 26, 1980 
38 u s e 4101 et 
seq. 
Ante, p. 1030. 
Report to 
congressional 
committees. 
STUDY OF PERSONNEL NEEDS OF VETERANS ADMINISTRATION HEALTH-
CARE SYSTEM 
SEC. 117. (a) In order to evaluate the need for, and the likely impact 
on the ability of the Veterans' Administration to meet most effec-
tively the personnel needs of the Veterans' Administration health-
care program of, the conversion or non-conversion of employees of the 
Veterans' Administration's Department of Medicine and Surgery 
who are providing direct patient-care services or services incident to 
direct patient-care services (as determined by the Administrator of 
Veterans' Affairs for the purposes of paragraph (1) of section 4107(g) 
of title 38, United States Code, as added by section 112) to the pay 
schedules and other administrative provisions of chapter 73 of title 
38, United States Code, the Administrator of Veterans' Affairs shall 
conduct a study to determine (1) which, if any, of the categories of 
such employees should be so converted in order to improve patient 
care, alleviate recruitment and retention problems regarding such 
personnel, and improve employee morale, and (2) the desirability of 
making any such categories of personnel which are not so converted 
eligible for premium pay under the new paragraph (10) which would 
have been added to section 4107(e) of such title by the amendment of 
the Senate to the bill H.R. 7102, Ninety-sixth Congress, agreed to by 
the Senate on June 5,1980, and the impact of making such categories 
of personnel eligible for such pay under such paragraph. 
(b) Not later than the end of the eighteen-month period beginning 
on the date of the enactment of this Act, the Administrator of 
Veterans' Affairs shall submit to the Committees on Veterans' 
Affairs of the Senate and House of Representatives a report on the 
results of such study, together with any recommendations for admin-
istrative or legislative action, or both, that the Administrator consid-
ers appropriate based on the results of such study and other pertinent 
information. 
38 u s e 4104 
note. 
Report to 
Congress. 
STUDY AND PILOT PROGRAM ON NURSE RECRUITMENT AND RETENTION 
SEC. 118. (a) In order to evaluate the effectiveness of various actions 
in enabling the Veterans' Administration to recruit and retain 
sufficient qualified nursing personnel (including licensed practical or 
vocational nurses and nursing assistants) capable of providing qual-
ity care for eligible veterans in Veterans' Administration health-care 
facilities, the Administrator of Veterans' Affairs, in consultation 
with the Chief Medical Director of the Veterans' Administration, 
shall conduct a pilot program and study for a period of not less than 
twenty-four and not more than thirty-six months, in not less than six 
geographic areas in which the Veterans' Administration has experi-
enced difficulties in recruiting and retaining such sufficient qualified 
personnel. In the course of such study, the Administrator shall take 
various administrative actions to overcome such difficulties. 
(b) Not later than the end of the forty-two-month period beginning 
on the date of the enactment of this Act, the Administrator of 
Veterans' Affairs shall submit to the Congress a report on the results 
of such program and study, including an evaluation of the cost factors 
associated with each alternative administrative action on an annual 
basis and the impact on the recruitment and retention of nursing 
personnel at each facility involved, together with any recommenda-
tions for administrative or legislative action, or both, that the 
Administrator considers appropriate based on the results of such 
program and study and other pertinent information. 
PUBLIC LAW 96-330—AUG. 26, 1980 
94 STAT. 1041 
(c) The Administrator of Veterans' Affairs shall submit a report on 
the implementation of such program and the progress of such study 
to the Committees on Veterans Affairs of the Senate and House of 
Representatives not later than six months after the date of the 
enactment of this Act. Such report shall include a report on the 
formulation of regulations to carry out such program and on the 
status of the implementation of 
such program. 
TITLE II—VETERANS' ADMINISTRATION HEALTH 
PROFESSIONAL SCHOLARSHIP PROGRAM 
Report to 
congressional 
committees. 
ESTABLISHMENT OF HEALTH PROFESSIONAL SCHOLARSHIP PROGRAM 
SEC. 201. (a)(1) Chapter 73 is amended by adding at the end thereof 
the following new subchapter: 
"SUBCHAPTER IV-VETERANS' ADMINISTRATION HEALTH 
PROFESSIONAL SCHOLARSHIP PROGRAM 
"§ 4141. Establishment of program; purpose; duration 
"(a) There is hereby established a program to be known as the 
Veterans' Administration Health Professional Scholarship Program 
(hereinafter in this subchapter referred to as the 'Scholarship Pro-
gram'). The purpose of the Scholarship Program is to assist in 
providing an adequate supply of 
trained physicians and nurses for the 
Veterans' Administration and for the Nation and, if needed by the 
Veterans' Administration, other health-care professionals appointed 
under subchapter I of 
this chapter. 
"(b) The Administrator may not furnish scholarships to new 
participants in the Scholarship Program after the last day of the 
tenth fiscal year beginning after the first such scholarship is 
approved by the Administrator. 
"§4142. Eligibility; application; written contract 
"(a) To be eligible to participate in the Scholarship Program, an 
individual must— 
"(1) be accepted for enrollment, or be enrolled, as a full-time 
student (A) in an accredited (as determined by the Administra-
tor) educational institution in a State, and (B) in a course of 
training offered by such institution and approved by the Admin-
istrator, leading to a degree in medicine, osteopathy, dentistry, 
podiatry, optometry, or nursing or a course of training to become 
a physician assistant or expanded-function dental auxiliary; 
"(2) submit an application to the Administrator for participa-
tion in the Scholarship Program; 
"(3) sign and submit to the Administrator, at the time of 
submission of such application, a written contract (described in 
subsection (e) of this section) to accept payment of a scholarship 
and to serve a period of obligated service as provided in section 
4143 of 
this title; and 
"(4) at the time of submission of such application, not be 
obligated under any other Federal program to perform service 
after completion of the course of study or program of such 
individual referred to in clause (1) of 
this subsection. 
"(b)(1) In distributing application forms and contract forms to 
individuals desiring to participate in the Scholarship Program, the 
Administrator shall include with such forms— 
38 u s e 4141. 
38 u s e 4101. 
38 u s e 4142. 
Application and 
contract forms. 
94 STAT. 1042 
PUBLIC LAW 96-330—AUG. 26, 1980 
Selections. 
Scholarship 
award, 
notification of 
congressional 
committees. 
Written 
contract, 
contents. 
38 u s e 4105. 
Participant 
agreement. 
"(A) a fair summary of the rights and Habilities of an individ-
ual whose application is approved (and whose contract is ac-
cepted) by the Administrator, including in the summary a clear 
explanation of the damages to which the United States is entitled 
under section 4144 of this title if the individual breaches the 
contract; and 
"(B) a full description of the terms and conditions that would 
apply to the individual's participation in the Scholarship Pro-
gram and service in the Department of Medicine and Surgery. 
"(2) The Administrator shall make such application forms, contract 
forms, and other information available to individuals desiring to 
participate in the Scholarship Program on a date sufficiently early to 
allow such individuals adequate time to prepare and submit such 
forms. 
"(c)(1) In selecting applicants for acceptance in the Scholarship 
Program, the Administrator shall give priority to the applications of 
individuals who have previously received scholarships under the 
Scholarship Program. 
"(2) Before awarding the initial scholarship in any course of 
training other than in medicine or nursing, the Administrator, not 
less than 60 days before awarding such scholarship, shall notify the 
Committees on Veterans' Affairs of the Senate and House of Repre-
sentatives of the Administrator's intent to award a scholarship in 
such course of training and of the reasons why the award of 
scholarships in such course of training is necessary to assist in 
providing for the Veterans' Administration an adequate supply of 
personnel in the health profession concerned. 
"(d)(1) An individual becomes a participant in the Scholarship 
Program only upon the Administrator's approval of the individual's 
application submitted under subsection (a)(2) of this section and the 
Administrator's acceptance of the contract signed by the individual 
under subsection (a)(3) of this section. 
"(2) The Administrator shall provide written notice to an individ-
ual promptly upon the Administrator's approval under paragraph (1) 
of this subsection of the individual's participation in the Scholarship 
Program. 
"(e) The written contract (referred to in this subchapter) between 
the Administrator and a participant in the Scholarship Program 
shall contain— 
"(1) an agreement that— 
"(A) subject to clause (2) of this subsection, the Adminis-
trator agrees (i) to provide the participant with a scholarship 
(described in subsection (f) of this section) for from one to 
four school years during which period the participant is 
pursuing a course of training described in subsection (a)(1)(B) 
of this section, and (ii) to afford the participant the opportu-
nity for employment in the Department of Medicine and 
Surgery (subject to the availability of appropriated funds for 
such purpose and other qualifications established in accord-
ance with section 4105 of this title); and 
"(B) subject to clause (2) of this subsection, the participant 
agrees— 
"(i) to accept such a scholarship; 
"(ii) to maintain enrollment and attendance in a 
course of training described in subsection (a)(1)(B) of this 
section until the participant completes the course of 
training; 
PUBLIC LAW 96-330—AUG. 26, 1980 
94 STAT. 1043 
"(iii) while enrolled in such course of training, to 
maintain an acceptable level of academic standing (as 
determined by the educational institution offering such 
course of training under regulations prescribed by the 
Administrator); 
"(iv) to serve as a full-time employee in the Depart-
ment of Medicine and Surgery for a period of time 
(hereinafter in this subchapter referred to as the 'period 
of obligated service') equal to the greater o
f
— 
"(I) one calendar year for each school year for 
which the participant was provided a scholarship 
under the Scholarship Program, or 
"(ID two calendar years; and 
"(v) if the participant's period of obligated service is 
deferred under section 4143(b)(3)(A) of this title, to serve 
any additional period of obligated service prescribed by 
the Administrator under section 4143(b)(4)(B) of this 
title; 
"(2) a provision that any financial obligation of the United 
States arising out of a contract entered into under this sub-
chapter, and any obligation of the participant which is condi-
tioned thereon, is contingent upon funds being appropriated for 
scholarships under this subchapter; 
"(3) a statement of the damages to which the United States is 
entitled under section 4144 of this title for the participant's 
breach of the contract; and 
"(4) such other statements of the rights and liabilities of the 
Administrator and of the participant as may be appropriate and 
consistent with the provisions of this subchapter. 
"(f)(1) A scholarship provided to a participant in the Scholarship Scholarships. 
Program for a school year under a written contract under the 
Scholarship Program shall consist o
f
— 
"(A) payment to, or (in accordance with paragraph (2) of this 
subsection) on behalf of, the participant of the amount of— 
"(i) the tuition of the participant in such school year; and 
"(ii) other reasonable educational expenses, including fees, 
books, and laboratory expenses; and 
"(B) payment to the participant of a stipend of not in excess of 
$485 per month (adjusted in accordance with paragraph (3) of this 
subsection) for each of the 12 consecutive months beginning with 
the first month of such school year. 
"(2) The Administrator may contract with an educational institu-
tion in which a participant in the Scholarship Program is enrolled for 
the payment to the educational institution of the amounts of tuition 
and other reasonable educational expenses described in paragraph 
(1)(A) of this subsection. Payment to such an educational institution 
may be made without regard to section 3648 of the Revised Statutes of 
the United States (31 U.S.C. 529). 
"(3) The amount of the monthly stipend, specified in paragraph 
(1)(B) of this subsection and as previously adjusted (if at all) in 
accordance with this paragraph, shall be increased by the Adminis-
trator for each school year ending in a fiscal year beginning after 
September 30, 1980, by an amount (rounded to the next highest 
multiple of $1) equal to the amount of such stipend multiplied by the 
overall percentage (as set forth in the report transmitted to the 
Congress under section 5305 of title 5) of the adjustment (if such 
adjustment is an increase) in the rates of pay under the General 
Monthly 
stipend. 
Stipend 
increases. 
94 STAT. 1044 
PUBLIC LAW 96-330—AUG. 26, 1980 
Report to 
Congress. 
Regulations. 
38 u s e 4143. 
Deferral. 
Schedule made effective in the fiscal year in which such school year 
ends. 
"(g) Notwithstanding any other provision of law, participants in 
the Scholarship Program shall not be considered to be employees of 
the Federal Government and shall not be counted against any 
employment ceiling affecting the Department of Medicine and Sur-
gery while they are undergoing a course of training prior to engaging 
in deferred internship, residency, or other advanced clinical training. 
"(h) The Administrator shall report to Congress not later than 
March 1 of each year— 
"(1) the number of students receiving scholarships under the 
Scholarship Program and the number of students enrolled in 
each type of health profession training; 
"(2) the educational institutions providing such training; 
"(3) the number of applications filed, by health profession 
category, under this section during the school year beginning in 
such year and the total number of such applications so filed for 
all years in which the Scholarship Program has been in 
existence; 
"(4) the number of scholarships accepted, by health profession 
category, during such school year and the number, by health 
profession category, which were offered and not accepted, 
together with a summary of the reasons that such scholarships 
were not accepted; and 
"(5) the amount of tuition and other expenses paid, by health 
profession category, in the aggregate and at each educational 
institution for the school year beginning in such year and for 
prior school years. 
"(i) The Administrator shall prescribe regulations to carry out the 
Scholarship Program. 
"§4143. Obligated service 
"(a) Each participant in the Scholarship Program shall provide 
service in the full-time clinical practice of such participant's profes-
sion or in another health-care position, in an assignment or location 
as determined by the Administrator, as a full-time employee of the 
Veterans' Administration for the period of obligated service provided 
in the contract of such participant entered into under section 4142 of 
this title. 
"(b)(1) Not later than 60 days prior to the date described in 
paragraph (3) of this subsection with respect to a participant in the 
Scholarship Program, the Administrator shall notify the participant 
of the date described in such paragraph for the beginning of such 
participant's period of obligated service. 
"(2) The Administrator shall appoint each participant in the 
Department of Medicine and Surgery as soon as possible after the 
date described in paragraph (3) of this subsection. 
"(3)(A)(i) With respect to a participant receiving a degree from a 
school of medicine, osteopathy, dentistry, optometry, or podiatry, the 
date for the beginning of the participant's period of obligated service 
is the date upon which the participant becomes licensed to practice 
medicine, osteopathy, dentistry, optometry, or podiatry, as the case 
may be, in a State, except that the Administrator may, at the request 
of such participant, defer such date until the end of the period of time 
required for the participant to complete an internship or residency or 
other advanced clinical training. If the participant requests such a 
deferral, the Administrator shall notify the participant that such 
PUBLIC LAW 96-330—AUG. 26, 1980 
94 STAT. 1045 
deferral could lead to an additional period of obligated service in 
accordance with paragraph (4) of this subsection. 
"(ii) No such period of internship or residency or other advanced 
clinical training shall be counted toward satisfying a period of 
obligated service under this subchapter. 
"(B) With respect to a participant receiving a degree from a school 
of nursing, the date for the beginning of the participant's period of 
obligated service is the date upon which the participant becomes 
registered as a graduate nurse in a State. 
"(C) With respect to a participant receiving a degree from an 
institution other than a school of medicine, osteopathy, dentistry, 
optometry, podiatry, or nursing, the date for the beginning of the 
participant's period of obligated service is the date upon which the 
participant completes the course of training leading to such degree. 
"(4) Any participant whose period of obligated service is deferred 
under paragraph (3)(A) of this subsection— 
"(A) shall be required to undertake internship or residency or 
other advanced clinical training in an accredited program in an 
educational institution which is an affiliated institution (as 
defined in section 4108(c)(1) of this title) and with respect to ^"^^' P- 1038. 
which the affiliation agreement provides that all or part of the 
internship or residency or other advanced clinical training will 
be undertaken in a Veterans' Administration health-care facil-
ity; and 
"(B) may, at the discretion of the Administrator and upon the 
recommendation of the Chief Medical Director, incur an addi-
tional period of obligated service— 
"(i) at the rate of one-half of a calendar year for each year 
of internship or residency or other advanced clinical train-
ing (or a proportionate ratio thereof), if the internship, 
residency, or advanced clinical training is in a medical 
specialty necessary to meet the health care requirements 
of the Veterans' Administration (as determined under regu-
lations prescribed by the Administrator); or 
"(ii) at the rate of three-quarters of a calendar year for 
each year of internship or residency or other advanced 
clinical training (or a proportionate ratio thereof), if the 
internship, residency, or advanced clinical training is not in 
a medical specialty necessary to meet the health care re-
quirements of the Veterans' Administration (as determined 
under regulations prescribed by the Administrator). 
"(c) A participant in the Scholarship Program shall be considered 
to have begun serving a period of obligated service on the date such 
participant, in accordance with subsection (a) of this section, is 
appointed under this chapter as a full-time employee in the Depart-
ment of Medicine and Surgery, 
"§ 4144. Breach of contract; liability; waiver 
38 USC 4144. 
"(a) A participant in the Scholarship Program (other than a 
participant described in subsection (b) of this section) who fails to 
accept payment, or instructs the educational institution in which the 
participant is enrolled not to accept payment, in whole or in part, of a 
scholarship under the contract entered into under section 4142 of this 
title, shall, in addition to any period of obligated service or other 
obligation or liability under the contract, be liable to the United 
States for the amount of $1,500 as liquidated damages. 
"(b) A participant in the Scholarship Program who— 
94 STAT. 1046 
PUBLIC LAW 96-330—AUG. 26, 1980 
Payment of 
damages. 
Death of 
participant. 
Regulations. 
Contract release. 
11 u s e 101. 
"(1) fails to maintain an acceptable level of academic standing 
in the educational institution in which the participant is enrolled 
(such level determined by the educational institution under 
regulations prescribed by the Administrator); 
"(2) is dismissed from such educational institution for discipli-
nary reasons; 
"(3) voluntarily terminates the course of training in such 
educational institution before the completion of such course of 
training; or 
"(4) fails to become licensed to practice medicine, osteopathy, 
dentistry, podiatry, or optometry in a State, fails to become 
registered as a graduate nurse in a State, or fails to meet any 
applicable licensure requirement in the case of a physician 
assistant or expanded-function dental auxiliary, during a period 
of time determined under regulations prescribed by the 
Administrator; 
in lieu of any service obligation arising under such contract, shall be 
liable to the United States for the amount which has been paid to or 
on behalf of the participant under the contract. 
"(c) If a participant in the Scholarship Program breaches the 
written contract by failing (for any reason) to complete such partici-
pant's period of obligated service, the United States shall be entitled 
to recover from the participant an amount determined in accordance 
with the following formula: 
A = 3<J) 
( ^ ) 
in which 'A' is the amount the United States is entitled to recover; >' 
is the sum of the amounts paid under this subchapter or on behalf of 
the participant and the interest on such amounts which would be 
payable if at the time the amounts were paid they were loans bearing 
interest at the maximum legal prevailing rate, as determined by the 
Treasurer of the United States; 't' is the total number of months in 
the participant's period of obligated service, including any additional 
period of obligated service in accordance with section 4143(b)(4)(B) of 
this subchapter; and 's' is the number of months of such period served 
by the participant in accordance with section 4143 of this title. Any 
amount of damages which the United States is entitled to recover 
under this section will, within the one-year period beginning on the 
date of the breach of the written contract, be paid to the United 
States. 
"(d)(1) Any obligation under the Scholarship Program (or a written 
contract thereunder) of a participant in the Scholarship Program for 
service or payment of damages shall be canceled upon the death of 
the participant. 
"(2) The Administrator shall prescribe regulations providing for 
the waiver or suspension of any obligation of a participant for service 
or payment under such Program (or a contract thereunder) whenever 
compliance by the participant is impossible due to circumstances 
beyond the control of the participant or whenever the Administrator 
determines that the waiver or suspension of compliance would be in 
the best interest of the Veterans' Administration. 
"(3) Any obligation of a participant under such Program (or a 
contract thereunder) for payment of damages may not be released by 
a discharge in bankruptcy under title 11 before the expiration of the 
five-year period beginning on the first date that payment of such 
damages is due. 
PUBLIC LAW 96-330—AUG. 26, 1980 
94 STAT. 1047 
"(e) The Administrator, in cooperation with and with the consent of 
the heads of other relevant departments and agencies and with the 
consent of the participant or individual involved, may permit— 
"(1) any period of obligated service required to be performed 
under this subchapter to be performed in another Federal 
department or agency or in the Armed Forces; and 
"(2) any period of obligated service required to be performed in 
another Federal department or agency or in the Armed Forces 
under another Federal health personnel scholarship program to 
be performed in the Department of Medicine and Surgery. 
"§4145. Exemption of scholarship payments from taxation 
"Notwithstanding any other law, any payment to, or on behalf of, 
a participant in the Scholarship Program for tuition, education 
expenses, or a stipend under this subchapter shall be exempt from 
taxation. 
"§ 4146, Program subject to availability of appropriations 
"The authority of the Administrator to make payments under this 
subchapter is effective for any fiscal year only to the extent that 
appropriated funds are available for such purposes.". 
(2) The table of sections at the beginning of such chapter is 
amended by adding at the end thereof the following: 
"SUBCHAPTER IV—VETERANS' ADMINISTRATION HEALTH PROFESSIONAL 
SCHOLARSHIP PROGRAM 
"Sec. 
"4141. Establishment of program; purpose; duration. 
"4142. Eligibility; application; written contract. 
"4143. Obligated service. 
"4144. Breach of contract; liability; waiver. 
"4145. Exemption of scholarship payments from taxation. 
"4146. Program subject to availability of appropriations.". 
(b) Effective October 1, 1980, there are authorized to be appropri-
ated such sums as may be necessary to carry out the program 
established by the amendments made by subsection (a). 
38 u s e 4145. 
38 u s e 4146. 
Effective date. 
38 u s e 4146 
note. 
LIMITATION ON SPECIAL PAY TO PERSONS SERVING OBLIGATED SERVICE 
UNDER THE SCHOLARSHIP PROGRAM 
SEC. 202. Section 4118 (as amended by sections 102,103, and 104) is 
further amended by adding at the end thereof the following new 
subsection: 
"(h) A physician or dentist serving a period of obligated service 
pursuant to subchapter IV of this chapter is not eligible for incentive 
special pay under this section during the first three years of such 
obligated service and may only be paid primary special pay under 
this section at the discretion of the Administrator upon the recom-
mendation of the Chief Medical Director.". 
Ante, p. 1035. 
Ante, p. 1041. 
REPORT ON IMPLEMENTATION OF SCHOLARSHIP PROGRAM 
SEC. 203. The Administrator of Veterans' Affairs shall submit a 
report on the implementation of the Veterans' Administration 
Health Professional Scholarship Program to the Committees on 
Veterans' Affairs of the Senate and House of Representatives not 
later than six months after the date of the enactment of this Act. 
Such report shall include a report on the formulation of regulations 
Report to 
congressional 
committees. 
94 STAT. 1048 
PUBLIC LAW 96-330—AUG. 26, 1980 
to carry out such program and on the status of the implementation of 
such program. 
TITLE III-GERIATIC RESEARCH AND CARE 
PURPOSE 
38 use 4101 
SEC. 301. The purposes of this title are (1) to improve and expand 
"°*^ 
the capability of Veterans' Administration health-care facilities to 
respond with the most effective and appropriate services possible to 
the medical, psychological and social needs of the increasing number 
of older veterans, and (2) to advance scientific knowledge regarding 
such needs and the methods of meeting them by facilitating higher 
quality geriatric care for eligible older veterans through geriatric and 
gerontological research, the training of health personnel in the 
provision of health care to older individuals, and the development of 
improved models of clinical services for eligible older veterans. 
CENTERS OF GERIATRIC RESEARCH, EDUCATION, AND CLINICAL 
ACTIVITIES 
Ante, p. 1036. 
SEC. 302. Section 4101, as amended by section 105(a), is amended by 
adding at the end the following new subsection: 
"(f)(1)(A) The Administrator, upon the recommendation of the 
Chief Medical Director and pursuant to the provisions of this subsec-
tion, shall designate not more than fifteen Veterans' Administration 
health-care facilities as the locations for centers of geriatric research, 
education, and clinical activities and (subject to the appropriation of 
sufficient funds for such purpose) shall establish and operate such 
centers at such locations in accordance with this subsection. 
"(B) In designating locations for centers under subparagraph (A) of 
this paragraph, the Administrator, upon the recommendation of the 
ChiefMedical Director, shall— 
"(i) designate each Veterans' Administration health-care fa-
cility that on the date of the enactment of the Veterans' Adminis-
tration Health-Care Amendments of 1980 is operating a geriatric 
research, education, and clinical center unless, on the recommen-
dation of the Chief Medical Director, the Administrator deter-
mines that such facility does not meet the requirements of 
subparagraph (C) of this paragraph or has not demonstrated 
effectiveness in carrying out the established purposes of such 
center or the purposes of title III of the Veterans' Administration 
Supra. 
Health-Care Amendments of 1980 or the potential to carry out 
such purposes effectively in the reasonably foreseeable future; 
and 
"(ii) assure appropriate geographic distribution of such 
facilities. 
"(C) The Administrator may not designate any health-care facility 
as a location for a center under subparagraph (A) of this paragraph 
unless the Administrator, upon the recommendation of the Chief 
Medical Director, determines that the facility has (or may reasonably 
be anticipated to develop)— 
"(i) an arrangement with an accredited medical school which 
provides education and training in geriatrics and with which 
such facility is affiliated under which residents receive education 
and training in geriatrics through regular rotation through such 
center and through nursing home, extended care, or domiciliary 
units of such facility so as to provide such residents with training 
PUBLIC LAW 96-330—AUG. 26, 1980 
94 STAT. 1049 
in the diagnosis and treatment of chronic diseases of older 
individuals, 
including 
cardiopulmonary 
conditions, 
senile 
dementia, and neurological disorders; 
"(ii) an arrangement under which nursing or allied health 
personnel receive training and education in geriatrics through 
regular rotation through nursing home, extended care, or domi-
ciliary units of such facility; 
"(iii) the ability to attract the participation of scientists who 
are capable of ingenuity and creativity in health-care research 
efforts; 
"(iv) a policymaking advisory committee composed of appropri-
ate health-care and research representatives of the facility and of 
the affiliated school or schools to advise the directors of such 
facility and such center on policy matters pertaining to the 
activities of such center during the period of the operation of 
such center; and 
"(v) the capability to conduct effectively evaluations of the 
activities of such center. 
"(D) Prior to providing funds for the operation of any such center at 
a health-care facility other than a health-care facility designated 
under subparagraph (B)(i) of this paragraph, the Administrator shall 
assure that the center at each facility designated under such subpara-
graph is receiving adequate funding to enable such center to function 
effectively in the areas of geriatric research, education, and clinical 
activities. 
"(2)(A) The Administrator shall establish in the Department of 
Medicine and Surgery a Geriatrics and Gerontology Advisory Com-
mittee (hereinafter in this subsection referred to as the 'Committee'). 
The membership of the Committee shall be appointed by the Admin-
istrator, upon the recommendation of the Chief Medical Director, and 
shall include individuals who are not employees of the Federal 
Government and who have demonstrated interest and expertise in 
research, education, and clinical activities related to aging and at 
least one representative of a national veterans' service organization. 
The Administrator, upon the recommendation of the Chief Medical 
Director, shall invite representatives of other appropriate depart-
ments and agencies of the United States to participate in the 
activities of the Committee and shall provide the Committee with 
such staff and other support as may be necessary for the Committee 
to carry out effectively its functions under this paragraph. 
"(B) The Committee shall— 
"(i) advise the Chief Medical Director on all matters pertaining 
to geriatrics and gerontology; 
"(ii) assess, through an evaluation process (including a site 
visit conducted not later than three years after the date of the 
establishment of each new center and not later than two years 
after the date oi the last evaluation of those centers in operation 
on the date of the enactment of this subsection), the ability of 
each center established under paragraph (1) of this subsection to 
achieve its established purposes and the purposes of title III of 
the Veterans' Administration Health-Care Amendments of 1980; 
"(iii) assess the capability of the Veterans' Administration to 
provide high quality geriatric, extended, and other health-care 
services to eligible older veterans, taking into consideration the 
likely demand for such services from such veterans; 
"(iv) assess the current and projected needs of eligible older 
veterans for geriatric, extended-care, and other health-care serv-
Geriatrics and 
Gerontology 
Advisory 
Committee. 
Membership. 
Functions. 
Ante, p. 1048. 
94 STAT. 1050 
PUBLIC LAW 96-330—AUG. 26, 1980 
Report. 
Reports. 
Report to 
congressional 
committees. 
Appropriation 
authorization. 
Funding. 
38 u s e 4103. 
ices from the Veterans' Administration and its activities and 
plans designed to meet such needs; and 
"(v) perform such additional functions as the Administrator or 
Chief Medical Director may direct. 
"(C)(i) Not later than April 1,1983, the Committee shall submit to 
the Administrator, through the Chief Medical Director, a report with 
respect to its findings and conclusions under subparagraph (B) of this 
paragraph. Such report shall include— 
"(I) descriptions of the operations of the centers of geriatric 
research, education, and clinical activities established pursuant 
to paragraph (1) of this subsection; 
(II) assessments of the quality of the operations of such 
centers; 
"(III) an assessment of the extent to which the Veterans' 
Administration, through the operation of such centers and other 
health-care facilities and programs, is meeting the needs of 
eligible older veterans for geriatric and extended-care and other 
health-care services; 
"(IV) assessments of and recommendations for correcting any 
deficiencies in the operations of such centers; and 
"(V) recommendations for such other geriatric, extended-care, 
and other health-care services as may be needed to meet the 
needs of older veterans. 
Following the submission of such report, the Committee shall also 
submit to the Administrator, through the Chief Medical Director, 
such further reports as the Committee considers appropriate with 
respect to the matters described in clauses (I) through (V) of the 
preceding sentence. 
"(ii) Not later than ninety days after receipt of a report submitted 
under division (i) of this subparagraph, the Administrator shall 
transmit such report, together with the Administrator's comments 
and recommendations thereon, to the appropriate committees of the 
Congress. 
"(3) There are hereby authorized to be appropriated for the basic 
support of the research and education activities of the centers of 
geriatric research, education, and clinical activities established pur-
suant to paragraph (1) of this subsection $10,000,000 for fiscal year 
1981 and $25,000,000 for each of the next three fiscal years. The Chief 
Medical Director shall allocate to such centers from other funds 
appropriated generally for the Veterans' Administration medical 
care account and medical and prosthetics research account, as 
appropriate, such amounts as the Chief Medical Director determines 
appropriate, and, with respect to fiscal year 1984, as the Chief 
Medical Director determines appropriate after taking into account 
the report submitted by the Committee under paragraph (2) of this 
subsection. 
"(4) Activities of clinical and scientific investigation at each center 
established under paragraph (1) of this subsection shall be eligible to 
compete for the award of funding from funds appropriated for the 
Veterans' Administration medical and prosthetics research account 
and shall receive priority in the award of funding from such account 
insofar as funds are awarded to projects for research in geriatrics and 
gerontology.". 
ASSISTANT CHIEF MEDICAL DIRECTOR 
SEC. 303. Section 4103(a)(4) is amended by adding at the end the 
following new sentence: "One Assistant Chief Medical Director shall 
PUBLIC LAW 96-330—AUG. 26, 1980 
94 STAT. 1051 
be a qualified physician trained in, or having suitable extensive 
experience in, geriatrics who shall be responsible to the Chief Medical 
Director for evaluating all research, educational, and clinical health-
care programs carried out in the Department in the field of geriatrics 
and who shall serve as the principal advisor to the Chief Medical 
Director with respect to such programs.". 
EFFECTIVE DATE 
SEC. 304. (a) The amendments made by sections 302 and 303 shall 38 use 4ioi 
take effect on October 1,1980. 
"°*^ 
(b) The Geriatrics and Gerontology Advisory Committee required 38 use 4ioi 
to be established by the Administrator in the Department of Medi- "°*®-
cine and Surgery of the Veterans' Administration pursuant to 
subsection (f)(2)(A) of section 4101 of title 38, United States Code, as 
added by section 302, shall be established not later than January 1, 
1981. 
TITLE IV—MISCELLANEOUS AMENDMENTS 
STANDARDS FOR PRESUMPTION OF INABILITY TO DEFRAY MEDICAL 
EXPENSES 
SEC. 401. (a) Section 622 is amended to read as follows: 
"§ 622. Evidence of inability to defray necessary expenses 
38 use 622. 
"For the purposes of sections 610(a)(1)(B), 610(b)(2), 624(c), and 
632(a)(2) of this title, the fact that an individual is— 
38 ^se 6io, 624, 
"(1) eligible to receive medical assistance under a State plan 
approved under title XIX of the Social Security Act (42 U.S.C. 
1396etseq.); 
"(2) a veteran with a service-connected disability; or 
"(3) in receipt of pension under any law administered by the 
Veterans' Administration; 
shall be accepted as sufficient evidence of such individual's inability 
to defray necessary expenses.". 
(b) The item relating to such section in the table of sections at the 
beginning of chapter 17 is amended to read as follows: 
"622. Evidence of inability to defray necessary expenses.". 
REVOLVING SUPPLY FUND 
SEC. 402. (a) Section 5021(a) is amended— 
93 Stat. 61. 
(1) by inserting after "direct" in clause (2) "cost (which may be ^^ ^^^ ^^^^• 
based on the cost of recent significant purchases of the equip-
ment or supply item involved)"; and 
(2) by striking out the second sentence in such section and 
inserting in lieu thereof the following: 
"At the end of each fiscal year, there shall be covered into the 
Treasury of the United States as miscellaneous receipts such 
amounts as the Administrator determines to be in excess of the 
requirements necessary for the maintenance of adequate inventory 
levels and for the effective financial management of the revolving 
supply fund.". 
(b) The amendments made by subsection (a) shall take effect as of Effective date. 
October 1,1979. 
38 use 5021 
note. 
94 STAT. 1052 
PUBLIC LAW 96-330—AUG. 26, 1980 
38 u s e 5022. 
Report to 
congressional 
committees. 
Transfer of 
interest. 
38 u s e 5070. 
MANAGEMENT OF REAL PROPERTY 
SEC. 403. (a) Section 5022(a) is amended by inserting "(1)" after "(a)" 
and by adding at the end thereof the following new paragraph: 
"(2)(A) Before entering into a transaction described in subpara-
graph (B) of this paragraph with respect to any real property owned 
by the United States and administered by the Veterans' Administra-
tion which has an estimated value in excess of $50,000, the Adminis-
trator shall submit a report of the facts concerning the proposed 
transaction to the Committees on Veterans' Affairs of the Senate and 
House of Representatives, and such transaction may not then be 
entered into until after the expiration of 30 days from the date upon 
which the report is submitted. 
"(B) Subparagraph (A) of this paragraph applies to (i) any transfer 
of an interest in real property to another Federal agency or to a State 
(or any political subdivision of a State), and (ii) any report to a Federal 
disposal agency of excess real property. 
"(C) A statement in an instrument of conveyance, including a lease, 
that the requirements of this paragraph have been met, or that the 
conveyance is not subject to this paragraph, is conclusive for the 
purposes of all matters pertaining to the ownership of any right or 
interest in the property conveyed by such instrument.". 
(b) Section 5070(e) is amended by inserting a comma and "but no 
such lease may be for a period of more than 50 years" before the 
period at the end of the second sentence of such section. 
NUMBER OF BEDS REQUIRED TO PROVIDE ADEQUATE NURSING HOME 
CARE IN STATE HOME FACILITIES 
38 use 5034. 
SEC. 404. Section 5034(1) is amended by striking out the comma and 
"which number" and all that follows in such section and inserting in 
lieu thereof a period. 
REPEAL OF REQUIREMENT THAT RECIPIENTS OF HEALTH-CARE PERSONNEL 
TRAINING GRANTS MUST INCREASE NUMBER OF INDIVIDUALS RECEIV-
ING TRAINING 
38 use 5093. 
SEC. 405. Section 5093(b)(1) is amended by striking out "and will 
result" and all that follows through "training at such institution". 
AVAILABILITY OF FUNDS FOR BENEFICIARY TRAVEL 
38 use 111 note. 
SEC. 406. No provision of law enacted after the date of the 
enactment of this Act which imposes any restriction or limitation on 
the availability of funds for the travel and transportation of officers 
and employees of the executive branch of the Government and their 
dependents, or on the transportation of things of such officers and 
employees and their dependents, shall be applicable to the travel of 
eligible veterans, dependents, or survivors, for which reimbursement 
38 use 101. 
is authorized under title 38, United States Code, pursuant to the 
38 use 111. 
terms and conditions of section 111 of such title, unless such provision 
is expressly made applicable to the travel of such veterans, depend-
ents, or survivors. 
PUBLIC LAW 96-330—AUG. 26, 1980 
94 STAT. 1053 
EXTENSION OF TIME FOR SUBMISSION OF REPORT ON HOSPITAL CARE AND 
MEDICAL SERVICES FURNISHED IN THE COMMONWEALTH OF PUERTO 
RICO AND THE VIRGIN ISLANDS 
SEC. 407. Section 8(a) of the Veterans' Administration Programs 
Extension Act of 1978 (Public Law 95-520; 92 Stat. 1822) is amended 38 use 601 note. 
by striking out "February 1, 1980" and inserting in lieu thereof 
"February 1,1981". 
TECHNICAL AMENDMENTS 
SEC. 408. Section 4101(b) is amended by striking out "manpower" 
38 USC 4101. 
both places it appears and inserting in lieu thereof "personnel". 
THOMAS P. O'NEILL, JR. 
Speaker of the House of Representatives. 
WALTER F. MONDALE 
Vice President of the United States and 
President of the Senate. 
IN THE HOUSE OF REPRESENTATIVES, U.S., 
August 26, 1980. 
The House of Representatives having proceeded to reconsider the 
bill (H.R. 7102) entitled "An Act to amend title 38, United States 
Code, to promote the recruitment and retention of physicians, den-
tists, nurses, and other health-care personnel in the Department of 
Medicine and Surgery of the Veterans' Administration, and for other 
purposes", returned by the President of the United States with his 
objections, to the House of Representatives, in which it originated, it 
was 
Resolved, That the said bill pass, two-thirds of the House of 
Representatives agreeing to pass the same. 
EDMUND L. HENSHAW, JR. 
Clerk. 
By Thomas E. Ladd 
Assistant to the Clerk. 
I certify that this Act originated in the House of Representatives. 
EDMUND L. HENSHAW, JR. 
Clerk. 
By W. Raymond Colley 
Deputy Clerk. 
94 STAT. 1054 
PUBLIC LAW 96-330—AUG. 26, 1980 
IN THE SENATE OF THE UNITED STATES, 
August 26 (legislative day, June 12), 1980. 
The Senate having proceeded to reconsider the bill (H.R. 7102) 
entitled "An Act to amend title 38, United States Code, to promote 
the recruitment and retention of physicians, dentists, nurses, and 
other health-care personnel in the Department of Medicine and 
Surgery of the Veterans' Administration, and for other purposes", 
returned by the President of the United States with his objections, to 
the House of Representatives, in which it originated, and passed by 
the House of Representatives on reconsideration of the same, it was 
Resolved, That the said bill pass, two-thirds of the Senators 
present having voted in the affirmative. 
Attest: 
J. S. KiMMITT 
Secretary. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 96-958 (Comm. on Veterans' Affairs). 
SENATE REPORT No. 96-747 accompanying S. 2534 (Comm. on Veterans' Affairs). 
CONGRESSIONAL RECORD, Vol. 126 (1980): 
May 19, 20, considered and passed House. 
June 5, considered and passed Senate, amended, in lieu of S. 2534. 
July 31, House concurred in Senate amendment with an amendment. 
Aug. 1, Senate concurred in House amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 16, No. 34: 
Aug. 22, vetoed; Presidential message. 
CONGRESSIONAL RECORD, Vol. 126 (1980): 
Aug. 26, House and Senate overrode veto. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 16, No. 35: 
Aug. 26, Presidential statement.