best practices program


FEDERAL REGULATIONS

Discussion

VHA Handbooks 1200.17 and 1400.2 provide that “all corporation board members, officers, and employees are subject to federal statutes and regulations applicable to federal employees with respect to conduct and conflicts of interest (emphasis added)." Applicable Federal statutes and regulations include: 

Although the NPC authorizing statute and its legislative history specify only conflicts of interest, VA General Counsel has determined that NPC board members, officers and employees meet the definition of a federal employee for purposes of conduct and therefore are subject to federal conduct regulations as well as conflicts of interest in the performance of their duties. The definition of a federal employee can be found at 5 U.S.C. part 2105 http://www4.law.cornell.edu/uscode/5/2105.html.

NPC officers, directors and employees must certify that they are aware of and in compliance with federal conduct and conflicts of interest statutes and regulations. However, the federal rules provide that employees must report potential conflicts to their supervisors who will presumably step in to manage the situation. Unfortunately, this is often impractical when it comes to NPC boards. Therefore, NAVREF strongly recommends that NPC boards adopt a conflict of interest policy that requires annual disclosure and provides a process for managing potential conflicts.

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last updated: 01/31/08

 

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