SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Increasing the Department of 
Veterans Affairs Accountability to Veterans Act of 2016''.

SEC. 2. REDUCTION OF BENEFITS FOR SENIOR EXECUTIVES AND CERTAIN HEALTH 
              CARE EMPLOYEES OF DEPARTMENT OF VETERANS AFFAIRS 
              CONVICTED OF A FELONY.

    (a) In General.--Chapter 7 of title 38, United States Code, is 
amended by adding at the end the following new section:
``Sec. 715. Senior executives and section 7401(1) employees: reduction 
              of benefits of individuals convicted of a felony
    ``(a) Reduction of Annuity for Removed Individual.--The covered 
service of an individual removed from a covered position at the 
Department by the Secretary for performance or misconduct shall not be 
taken into account for purposes of calculating an annuity with respect 
to such individual under chapter 83 or chapter 84 of title 5, if the 
individual is convicted of a felony (and the conviction is final) that 
was related, as determined by the Director of the Office of Personnel 
Management, to the individual's conduct or performance while employed 
in such covered position.
    ``(b) Reduction of Annuity for Retired Individual.--(1) The 
Secretary may order that the covered service of an individual who is 
subject to a removal or transfer from a covered position at the 
Department by the Secretary for performance or misconduct but who 
leaves employment at the Department prior to the issuance of a final 
decision with respect to such removal or transfer shall not be taken 
into account for purposes of calculating an annuity with respect to 
such individual under chapter 83 or chapter 84 of title 5, if the 
individual is convicted of a felony (and the conviction is final) that 
was related, as determined by the Director of the Office of Personnel 
Management, to the individual's performance while employed in such 
covered position.
    ``(2) The Secretary shall make such an order not later than 7 days 
after the date on which such individual is convicted of such felony.
    ``(3) Not later than 30 days after the Secretary issues any order 
with respect to an individual under paragraph (1), the Director of the 
Office of Personnel Management shall recalculate the annuity of the 
individual.
    ``(c) Lump-sum Annuity Credit.--Any individual with respect to whom 
an annuity is reduced under subsection (a) or (b) shall be entitled to 
be paid so much of such individual's lump-sum credit as is attributable 
to the period of covered service.
    ``(d) Review of Reduction of Annuity.--Any individual whose annuity 
is reduced under subsection (a) or (b) may appeal the reduction to the 
Director of the Office of Personnel Management.
    ``(e) Definitions.--In this section:
            ``(1) The term `covered position' is--
                    ``(A) a senior executive position; or
                    ``(B) a position listed in section 7401(1) of this 
                title that is not a senior executive position.
            ``(2) The term `covered service' means, with respect to an 
        individual subject to a removal or transfer from a covered 
        position at the Department for performance or misconduct, the 
        period of service beginning on the date that the Secretary 
        determines that such individual engaged in activity that gave 
        rise to such action and ending on the date that such individual 
        is removed from the civil service or leaves employment at the 
        Department prior to the issuance of a final decision with 
        respect to such action, as the case may be.
            ``(3) The term `lump-sum credit' has the meaning given such 
        term in section 8331 or 8401 of title 5, as the case may be.
            ``(4) The term `senior executive position' has the meaning 
        given such term in section 713(g) of this title.
            ``(5) The term `service' has the meaning given such term in 
        section 8331 or 8401 of title 5, as the case may be.''.
    (b) Application.--Section 715 of such title, as added by subsection 
(a), shall apply to any action of removal or transfer from a covered 
position (as defined in subsection (e) of such section) at the 
Department of Veterans Affairs commencing on or after the date of the 
enactment of this Act.
    (c) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``715. Senior executives and section 7401(1) employees: reduction of 
                            benefits of individuals convicted of a 
                            felony.''.

SEC. 3. LIMITATION ON ADMINISTRATIVE LEAVE FOR EMPLOYEES OF DEPARTMENT 
              OF VETERANS AFFAIRS.

    (a) In General.--Chapter 7 of title 38, United States Code, is 
further amended by adding at the end the following new section:
``Sec. 717. Administrative leave limitation and report
    ``(a) Limitation Applicable to Employees Within the Department.--
(1) The Secretary may not place any covered individual on 
administrative leave for more than a total of 14 business days during 
any 365-day period.
    ``(2)(A) The Secretary may waive the limitation under paragraph (1) 
and extend the period of administrative leave of a covered individual 
if the Secretary submits to the Committee on Veterans' Affairs of the 
Senate and the Committee on Veterans' Affairs of the House of 
Representatives a detailed explanation of the reasons the covered 
individual was placed on administrative leave and the reasons for the 
extension of such leave.
    ``(B) Such explanation shall include the position of the covered 
individual and the location where the covered individual is employed.
    ``(3) In this subsection, the term `covered individual' means an 
employee of the Department, including an employee in a senior executive 
position (as defined in section 713(g) of this title)--
            ``(A) who is subject to an investigation for purposes of 
        determining whether such individual should be subject to any 
        disciplinary action under this title or title 5; or
            ``(B) against whom any disciplinary action is proposed or 
        initiated under this title or title 5.
    ``(b) Report on Administrative Leave.--(1) Not later than 30 days 
after the end of each fiscal year, the Secretary shall submit to the 
Committee on Veterans' Affairs of the Senate and the Committee on 
Veterans' Affairs of the House of Representatives a report listing the 
position of each employee of the Department (if any) who has been 
placed on administrative leave for a period longer than 14 business 
days during such fiscal year.
    ``(2) Each report submitted under paragraph (1) shall include, with 
respect to each employee listed in such report, the following:
            ``(A) The position occupied by the employee.
            ``(B) The number of business days of such leave.
            ``(C) The reason that such employee was placed on such 
        leave.
    ``(3) In submitting each report under paragraph (1), the Secretary 
shall take such measures to protect the privacy of the employees listed 
in the report as the Secretary considers appropriate.
    ``(c) Administrative Leave Defined.--In this section, the term 
`administrative leave'--
            ``(1) means an administratively authorized absence from 
        duty without loss of pay or charge to leave for which the 
        employee is placed due to an investigation on or for whom any 
        disciplinary action is proposed or initiated; and
            ``(2) includes any type of paid non-duty status without a 
        charge to leave.''.
    (b) Application.--
            (1) Administrative leave limitation.--Subsection (a) of 
        section 717 of title 38, United States Code (as added by 
        subsection (a)), shall apply to any period of administrative 
        leave (as defined in such section) commencing on or after the 
        date of the enactment of this Act.
            (2) Report.--The report under section 717(b) of such title 
        (as added by subsection (a)) shall apply beginning in the first 
        quarter that ends after the date that is 180 days after the 
        date of the enactment of this Act.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 7 of such title is further amended by adding at the end the 
following new item:

``717. Administrative leave limitation and report.''.

SEC. 4. ACCOUNTABILITY OF LEADERS FOR MANAGING THE DEPARTMENT OF 
              VETERANS AFFAIRS.

    (a) In General.--Chapter 7 of title 38, United States Code, is 
amended by inserting after section 709 the following new section:
``Sec. 710. Annual performance plan for political appointees
    ``(a) In General.--The Secretary shall conduct an annual 
performance plan for each political appointee of the Department that is 
similar to the annual performance plan conducted for an employee of the 
Department who is appointed as a career appointee (as that term is 
defined in section 3132(a)(4) of title 5) within the Senior Executive 
Service at the Department.
    ``(b) Elements of Plan.--Each annual performance plan conducted 
under subsection (a) with respect to a political appointee of the 
Department shall include, to the extent applicable, an assessment of 
whether the appointee is meeting the following goals:
            ``(1) Recruiting, selecting, and retaining well-qualified 
        individuals for employment at the Department.
            ``(2) Engaging and motivating employees.
            ``(3) Training and developing employees and preparing those 
        employees for future leadership roles within the Department.
            ``(4) Holding each employee of the Department that is a 
        manager accountable for addressing issues relating to 
        performance, in particular issues relating to the performance 
        of employees that report to the manager.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 7 of such title is further amended by inserting after the item 
relating to section 709 the following new item:

``710. Annual performance plan for political appointees.''.

SEC. 5. ACCOUNTABILITY OF SUPERVISORS AT DEPARTMENT OF VETERANS AFFAIRS 
              FOR HIRING WELL-QUALIFIED PEOPLE.

    (a) Assessment During Probationary Period.--
            (1) Determination required.--With respect to any employee 
        of the Department of Veterans Affairs who is required to serve 
        a probationary period in a position in the Department, the 
        Secretary of Veterans Affairs shall require the supervisor of 
        such employee to determine, during the 30-day period ending on 
        the date on which the probationary period ends, whether the 
        employee--
                    (A) has demonstrated successful performance; and
                    (B) should continue past the probationary period.
            (2) Limitation on employment after probationary period.--
                    (A) In general.--Except as provided in subparagraph 
                (B), no employee of the Department serving a 
                probationary period as described in paragraph (1) may 
                complete that probationary period unless and until the 
                supervisor of the employee, or another supervisor 
                capable of making the requisite determination, has made 
                an affirmative determination under such paragraph.
                    (B) Probationary period deemed completed.--
                            (i) No determination.--If no determination 
                        under paragraph (1) is made with respect to an 
                        employee before the end of the 60-day period 
                        following the end of the 30-day period 
                        specified in such paragraph, the employee shall 
                        be deemed to have completed the probationary 
                        period of the employee effective as of the end 
                        of that 60-day period.
                            (ii) Retroactive effect of determination.--
                        If an affirmative determination under paragraph 
                        (1) is made with respect to an employee after 
                        the end of the 30-day period specified in such 
                        paragraph, the employee shall be deemed to have 
                        completed the probationary period of the 
                        employee effective as of the end of that 30-day 
                        period.
            (3) Notification to congress regarding determinations.--Not 
        less frequently than monthly, the Secretary shall notify the 
        Committee on Veterans' Affairs of the Senate and the Committee 
        on Veterans' Affairs of the House of Representatives 
        regarding--
                    (A) each instance during such month in which a 
                supervisor did not make a determination required under 
                paragraph (1) during the period required in such 
                paragraph; and
                    (B) each such instance included in a previous 
                notification under this paragraph for which the 
                supervisor still has not made such a determination.
    (b) Supervisors.--With respect to any employee of the Department 
who is serving a probationary period in a supervisory position at the 
Department, successful performance under subsection (a) shall include 
demonstrating management competencies in addition to the technical 
skills required for such position.
    (c) Performance Plan.--Each annual performance plan conducted for a 
supervisor of an employee serving a probationary period shall hold the 
supervisor accountable for--
            (1) providing regular feedback to such employee during such 
        period before making a determination under subsection (a) 
        regarding the probationary status of such employee; and
            (2) making a timely determination under subsection (a) 
        regarding the probationary status of such employee.
    (d) Supervisor Defined.--In this section, the term ``supervisor'' 
has the meaning given such term in section 7103(a) of title 5, United 
States Code.

SEC. 6. ACCOUNTABILITY OF MANAGERS FOR ADDRESSING PERFORMANCE OF 
              EMPLOYEES.

    The Secretary of Veterans Affairs shall ensure that, as a part of 
the annual performance plan of an employee of the Department of 
Veterans Affairs who is a manager, the manager is evaluated on the 
following:
            (1) Taking action to address poor performance and 
        misconduct among the employees that report to the manager.
            (2) Taking steps to improve or sustain high levels of 
        employee engagement.

SEC. 7. EXPANSION OF DEFINITION OF PERSONNEL ACTION TO INCLUDE 
              PERFORMANCE EVALUATIONS OF EMPLOYEES OF THE DEPARTMENT OF 
              VETERANS AFFAIRS.

    Section 2302(a)(2)(A)(viii) of title 5, United States Code, is 
amended by inserting ``or under title 38'' after ``chapter 43 of this 
title''.

SEC. 8. WRITTEN OPINION ON CERTAIN EMPLOYMENT RESTRICTIONS AFTER 
              TERMINATING EMPLOYMENT WITH THE DEPARTMENT OF VETERANS 
              AFFAIRS.

    (a) In General.--Chapter 7 of title 38, United States Code, is 
further amended by adding at the end the following new section:
``Sec. 719. Written opinion on certain employment restrictions after 
              terminating employment with the Department
    ``(a)  In General.--Before terminating employment with the 
Department, any official of the Department who has participated 
personally and substantially during the one-year period ending on the 
date of the termination in an acquisition by the Department that 
exceeds $10,000,000 shall obtain a written opinion from an appropriate 
ethics counselor at the Department regarding any restrictions on 
activities that the official may undertake on behalf of a covered 
contractor during the two-year period beginning on the date on which 
the official terminates such employment.
    ``(b) Covered Contractor Defined.--In this section, the term 
`covered contractor' means a contractor carrying out a contract entered 
into with the Department, including pursuant to a subcontract.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 7 of such title is further amended by inserting after the item 
relating to section 717 the following new item:

``719. Written opinion on certain employment restrictions after leaving 
                            the Department.''.

SEC. 9. REQUIREMENT FOR CONTRACTORS OF THE DEPARTMENT EMPLOYING CERTAIN 
              RECENTLY SEPARATED DEPARTMENT EMPLOYEES.

    (a) In General.--Subchapter II of chapter 81 of title 38, United 
States Code, is amended by adding at the end the following new section:
``Sec. 8129. Requirement for contractors employing certain recently 
              separated Department employees
    ``(a) In General.--A covered contractor may not knowingly provide 
compensation to an individual described in subsection (b) during the 
two-year period beginning on the date on which the individual 
terminates employment with the Department unless the covered contractor 
determines that the individual--
            ``(1) has obtained the written opinion required under 
        section 719(a) of this title; or
            ``(2) has requested such written opinion not later than 30 
        days before receiving compensation from the covered contractor.
    ``(b) Individual Described.--An individual described in this 
subsection is any official of the Department who participated 
personally and substantially during the one-year period ending on the 
date of the termination individual's employment with the Department in 
an acquisition by the Department that exceeds $10,000,000.
    ``(c) Covered Contractor Defined.--In this section, the term 
`covered contractor' means a contractor carrying out a contract entered 
into with the Department, including pursuant to a subcontract.''.
    (b) Application.--The requirement under section 8129(a) of title 
38, United States Code, as added by subsection (a), shall apply with 
respect to any entity that enters into a contract with the Department 
on or after the date of the enactment of this Act.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 81 of such title is amended by inserting after the item 
relating to section 8128 the following new item:

``8129. Requirement for contractors employing certain recently 
                            separated Department employees.''.

            Passed the Senate December 10 (legislative day, December 
      9), 2016.

            Attest:

                                                             Secretary.
114th CONGRESS

  2d Session

                                 S. 290

_______________________________________________________________________

                                 AN ACT

To amend title 38, United States Code, to improve the accountability of 
    employees of the Department of Veterans Affairs, and for other 
                               purposes.
Increasing the Department of Veterans Affairs Accountability to Veterans Act of 2016  This bill requires the reduction of the federal annuities of individuals removed from the Department of Veterans Affairs (VA) Senior Executive Service (SES) if they are convicted of a felony that influenced their performance while employed in such position. The VA may order the reduction of the federal annuities of individuals who were convicted of such a felony and were subject to removal or transfer from the SES but who left the VA before final action was taken. Such annuities shall be reduced by excluding the covered service performed after the activity that subjects such an individual to transfer or removal occurs.  An individual whose annuity is reduced may appeal the reduction to the Office of Personnel Management.  The VA may not place an SES employee on administrative leave for more than a total of 14 days during any 365-day period. The VA may waive such prohibition if it provides Congress with a detailed explanation of the reasons the employee was placed on administrative leave and the reasons for extending such leave.  The VA shall conduct an annual performance plan for each political appointee that is similar to the plan conducted for career appointee SES employees.   A supervisor of an employee on probation shall determine, during the 30-day period ending on the date on which the probationary period ends, whether the employee: (1) has demonstrated successful performance, and (2) should continue past the probationary period.  Each annual performance plan for a supervisor of an employee serving a probationary period shall hold the supervisor accountable for: (1) providing regular feedback to the employee before making a determination regarding such employee's probationary status, and (2) making a timely probationary status determination.  The evaluation of VA managers shall include actions taken to address employee performance.   Before terminating VA employment, an official who has participated personally and substantially in a VA acquisition that exceeds $1 million or who held a key acquisitions position at the VA shall obtain a written opinion from a VA ethics counselor regarding any restrictions on activities that the official may undertake on behalf of a contractor during the two-year period after the official terminates VA employment. A contractor may not knowingly provide compensation to such an individual during such two-year period unless the contractor determines that the individual has obtained or requested such written opinion. 
Increasing the Department of Veterans Affairs Accountability to Veterans Act of 2016