Outside Compensation Guidelines: Guidance under development

On December 29, 2022, The Joseph Maxwell Cleland and Robert Joseph Dole Memorial Veterans Benefits and Health Care Improvement Act of 2022 § 182 (2022), which is part of the Consolidated Appropriations Act, 2023 (P.L. 117-328) was signed into law by President Biden. The Act included the following provision in section 7382 :  ``(b) OUTSIDE EARNED INCOME FOR RESEARCH FOR THE DEPARTMENT. --(1) Compensation from a nonprofit corporation established under subchapter IV of this chapter, or a university affiliated with the Department, may be paid, without regard to section 209 of title 18, to an employee described in paragraph (2), for research conducted pursuant to section 7303 of this title if --

``(A) the research has been approved in accordance with procedures prescribed by the Under Secretary for Health;

``(B) the employee conducts research under the supervision of personnel of the Department; and

``(C) the Secretary agreed to the terms of such compensation in writing.

ORD is currently working on implementation guidance addressing (A) and (B) by seeking a delegation of authority from the Secretary to the Facility Directors to approve the outside compensation to address (C).  The review of the compensation will be done at the local VA Facility level.  It will be required as part of the VA Facility’s Research and Development review process for research activities with a recommendation to the Facility Director for approval or non-approval.