SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of Veterans Affairs 
Employment Discrimination Resolution and Adjudication Act''.

SEC. 2. EQUAL EMPLOYMENT RESPONSIBILITIES IN THE DEPARTMENT OF VETERANS 
              AFFAIRS.

    (a) In General.--(1) Chapter 5 of title 38, United States Code, is 
amended by inserting at the end of subchapter I the following new 
section:
``Sec. 516. Equal employment responsibilities
    ``(a) The Secretary shall provide that the employment 
discrimination complaint resolution system within the Department be 
established and administered so as to encourage timely and fair 
resolution of concerns and complaints. The Secretary shall take steps 
to ensure that the system is administered in an objective, fair, and 
effective manner and in a manner that is perceived by employees and 
other interested parties as being objective, fair, and effective.
    ``(b) The Secretary shall provide--
            ``(1) that employees responsible for counseling functions 
        associated with employment discrimination and for receiving, 
        investigating, and processing complaints of employment 
        discrimination shall be supervised in those functions by, and 
        report to, an Assistant Secretary or a Deputy Assistant 
        Secretary for complaint resolution management; and
            ``(2) that employees performing employment discrimination 
        complaint resolution functions at a facility of the Department 
        shall not be subject to the authority, direction, and control 
        of the Director of the facility with respect to those 
        functions.
    ``(c) The Secretary shall ensure that all employees of the 
Department receive adequate education and training for the purposes of 
this section and section 319 of this title.
    ``(d) The Secretary shall impose appropriate disciplinary measures, 
as authorized by law, in the case of employees of the Department who 
engage in unlawful employment discrimination, including retaliation 
against an employee asserting rights under an equal employment 
opportunity law.
    ``(e) The number of employees of the Department whose duties 
include equal employment opportunity counseling functions as well as 
other, unrelated functions may not exceed 40 full-time equivalent 
employees. Any such employee may be assigned equal employment 
opportunity counseling functions only at Department facilities in 
remote geographic locations (as determined by the Secretary). The 
Secretary may waive the limitation in the preceding sentence in 
specific cases.
    ``(f) The provisions of this section shall be implemented in a 
manner consistent with procedures applicable under regulations 
prescribed by the Equal Employment Opportunity Commission.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 515 the 
following new item:

``516. Equal employment responsibilities.''.
    (b) Reports on Implementation.--The Secretary of Veterans Affairs 
shall submit to Congress reports on the implementation and operation of 
the equal employment opportunity system within the Department of 
Veterans Affairs. The first such report shall be submitted not later 
than April 1, 1998, and subsequent reports shall be submitted not later 
than January 1, 1999, and January 1, 2000. Each such report shall set 
forth the actions taken by the Secretary to implement section 516 of 
title 38, United States Code, as added by subsection (a), and other 
actions taken by the Secretary in relation to the equal employment 
opportunity system within the Department of Veterans Affairs.

SEC. 3. DISCRIMINATION COMPLAINT ADJUDICATION AUTHORITY IN THE 
              DEPARTMENT OF VETERANS AFFAIRS.

    (a) In General.--(1) Chapter 3 of title 38, United States Code, is 
amended by adding at the end the following new section:
``Sec. 319. Office of Employment Discrimination Complaint Adjudication
    ``(a)(1) There is in the Department an Office of Employment 
Discrimination Complaint Adjudication. There is at the head of the 
Office a Director.
    ``(2) The Director shall be a career appointee in the Senior 
Executive Service.
    ``(3) The Director reports directly to the Secretary or the Deputy 
Secretary concerning matters within the responsibility of the Office.
    ``(b)(1) The Director is responsible for making the final agency 
decision within the Department on the merits of any employment 
discrimination complaint filed by an employee, or an applicant for 
employment, with the Department. The Director shall make such decisions 
in an impartial and objective manner.
    ``(2) No person may make any ex parte communication to the Director 
or to any employee of the Office with respect to a matter on which the 
Director has responsibility for making a final agency decision.
    ``(c) Whenever the Director has reason to believe that there has 
been retaliation against an employee by reason of the employee 
asserting rights under an equal employment opportunity law, the 
Director shall report the suspected retaliatory action directly to the 
Secretary or Deputy Secretary, who shall take appropriate action 
thereon.
    ``(d)(1) The Office shall employ a sufficient number of attorneys 
and other personnel as are necessary to carry out the functions of the 
Office. Attorneys shall be compensated at a level commensurate with 
attorneys employed by the Office of General Counsel.
    ``(2) The Secretary shall ensure that the Director is furnished 
sufficient resources in addition to personnel under paragraph (1) to 
enable the Director to carry out the functions of the Office in a 
timely manner.
    ``(3) The Secretary shall ensure that any performance appraisal of 
the Director of the Office of Employment Discrimination Complaint 
Adjudication or of any employee of the Office does not take into 
consideration the record of the Director or employee in deciding cases 
for or against the Department.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``319. Office of Employment Discrimination Complaint Adjudication.''.
    (b) Reports on Implementation.--The Director of the Office of 
Employment Discrimination Complaint Adjudication of the Department of 
Veterans Affairs (established by section 319 of title 38, United States 
Code, as added by subsection (a)) shall submit to the Secretary and to 
Congress reports on the implementation and the operation of that 
office. The first such report shall be submitted not later than April 
1, 1998, and subsequent reports shall be submitted not later than 
January 1, 1999, and January 1, 2000.

SEC. 4. EFFECTIVE DATE.

    Sections 516 and 319 of title 38, United States Code, as added by 
sections 2 and 3 of this Act, shall take effect 90 days after the date 
of the enactment of this Act.

SEC. 5. INDEPENDENT PANEL TO REVIEW EQUAL EMPLOYMENT OPPORTUNITY AND 
              SEXUAL HARASSMENT PROCEDURES WITHIN THE DEPARTMENT OF 
              VETERANS AFFAIRS.

    (a) Establishment.--There is hereby established a panel to review 
the equal employment opportunity and sexual harassment practices and 
procedures within the Department of Veterans Affairs and to make 
recommendations on improvements to those practices and procedures.
    (b) Panel Functions Relating to Equal Employment Opportunity and 
Sexual Harassment.--The panel shall assess the culture of the 
Department of Veterans Affairs in relationship to the issues of equal 
employment opportunity and sexual harassment, determine the effect of 
that culture on the operation of the Department overall, and provide 
recommendations as necessary to change that culture. As part of the 
review, the panel shall do the following:
            (1) Determine whether laws relating to equal employment 
        opportunity and sexual harassment, as those laws apply to the 
        Department of Veterans Affairs, and regulations and policy 
        directives of the Department relating to equal employment 
        opportunity and sexual harassment have been consistently and 
        fairly applied throughout the Department and make 
        recommendations to correct any disparities.
            (2) Review practices of the Department of Veterans Affairs, 
        relevant studies, and private sector training and reporting 
        concepts as those practices, studies, and concepts pertain to 
        equal employment opportunity, sexual misconduct, and sexual 
        harassment policies and enforcement.
            (3) Provide an independent assessment of the Report on the 
        Equal Employment Opportunity Complaint Process Review Task 
        Force of the Department.
    (c) Composition.--(1) The panel shall be composed of six members, 
appointed as follows:
            (A) Three members shall be appointed jointly by the 
        chairman and ranking minority party member of the Committee on 
        Veterans' Affairs of the House of Representatives.
            (B) Three members shall be appointed jointly by the 
        chairman and ranking minority party member of the Committee on 
        Veterans' Affairs of the Senate.
    (2) The members of the panel shall choose one of the members to 
chair the panel.
    (d) Qualifications.--Members of the panel shall be appointed from 
among private United States citizens with knowledge and expertise in 
one or more of the following:
            (1) Extensive prior military experience, particularly in 
        the area of personnel policy management.
            (2) Extensive experience with equal employment opportunity 
        complaint procedures, either within Federal or State government 
        or in the private sector.
            (3) Extensive knowledge of the Department of Veterans 
        Affairs, and particularly knowledge of personnel practices 
        within the Department.
    (e) Reports.--(1) Not later than six months after the members of 
the panel are appointed, the panel shall submit an interim report on 
its findings and conclusions to the Committees on Veterans' Affairs of 
the Senate and House of Representatives.
    (2) Not later than one year after establishment of the panel, the 
panel shall submit a final report to the Committees on Veterans' 
Affairs of the Senate and House of Representatives. The final report 
shall include an assessment of the equal employment opportunity system 
and the culture within the Department of Veterans Affairs, with 
particular emphasis on sexual harassment. The panel shall include in 
the report recommendations to improve the culture within the 
Department.
    (f) Pay and Expenses of Members.--(1) Each member of the panel 
shall be paid at a rate equal to the daily equivalent of the annual 
rate of basic pay payable for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code, for each day (including 
travel time) during which the member is engaged in the performance of 
the duties of the panel.
    (2) The members of the panel shall be allowed travel expenses, 
including per diem in lieu of subsistence, at rates authorized for 
employees of agencies under subchapter I of chapter 57 of title 5, 
United States Code, while away from their homes or regular places of 
business in the performance of services for the panel.
    (g) Administrative Support.--The Chairman may hire such staff as 
necessary to accomplish the duties outlined under this title.
    (h) Funding.--The Secretary of Veterans Affairs shall, upon the 
request of the panel, make available to the panel such amounts as the 
panel may require, not to exceed $400,000, to carry out its duties 
under this title.
    (i) Termination of Panel.--The panel shall terminate 60 days after 
the date on which it submits its final report under subsection (e)(2).

            Passed the House of Representatives October 6, 1997.

            Attest:

                                                ROBIN H. CARLE,

                                                                 Clerk.
Department of Veterans Affairs Employment Discrimination Resolution and Adjudication Act - Directs the Secretary of Veterans Affairs to provide that the employment discrimination complaint resolution system within the Department of Veterans Affairs be established and administered so as to encourage timely and fair resolution of concerns and complaints and that the system is administered in an objective, fair, and effective manner as perceived by Department employees.  Directs the Secretary to impose appropriate disciplinary measures for Department employees who engage in unlawful employment discrimination, including retaliation against employees asserting equal employment opportunity (EEO) rights.  Limits to 40 the number of Department employees whose duties include EEO counseling functions as well as other unrelated functions.  Allows such splitting of functions only at Department facilities located in remote geographic locations.  Directs the Secretary to submit to the Congress reports on the implementation and operation of the EEO system within the Department. 
Establishes in the Department an Office of Employment Discrimination Complaint Adjudication headed by a Director who shall be responsible for making final agency decisions on the merits of any unlawful employment discrimination complaints filed by a Department employee.  Requires the Director to report to the Secretary or Deputy Secretary of Veterans Affairs when the Director has reason to believe that there has been retaliation against an employee asserting EEO rights.  Requires the Director to submit to the Secretary and the Congress reports on the implementation and operation of the Office. 
Establishes an independent panel to review and report to the veterans' committees on the EEO and sexual harassment practices and procedures within the Department and to make recommendations on improvements.
Department of Veterans Affairs Employment Discrimination Resolution and Adjudication Act