(a) Agency authority. An agency may appoint a preference eligible or a veteran who has substantially completed at least 3 years of continuous active military service provided
(1) The veteran was selected from among the best qualified following competition under a merit promotion announcement open to candidates outside the agency's workforce; and
(2) The veteran's most recent separation from the military was under honorable conditions.
(b) Definitions. ``Agency'' in this context means an executive agency as defined in 5 U.S.C. 105. The agency determines in individual cases whether a candidate was released ``shortly before'' completing the required 3 years and should therefore be eligible for appointment. [65 FR 14432, Mar. 17, 2000]