69–006 

115TH CONGRESS REPT. 115–35 " ! HOUSE OF REPRESENTATIVES 1st Session Part 1 

TO IMPROVE THE AUTHORITY OF THE SECRETARY OF VETERANS AFFAIRS 

TO HIRE AND RETAIN PHYSICIANS AND OTHER EMPLOYEES OF THE DEPARTMENT OF VETERANS AFFAIRS, AND FOR OTHER PURPOSES 

MARCH 10, 2017.—Committed to the Committee of the Whole House on the State 

of the Union and ordered to be printed 

Mr. ROE of Tennessee, from the Committee on Veterans’ Affairs, 

submitted the following 

R E P O R T 

[To accompany H.R. 1367] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Veterans’ Affairs, to whom was referred the 

bill (H.R. 1367) to improve the authority of the Secretary of Veterans Affairs to hire and retain physicians and other employees of 

the Department of Veterans Affairs, and for other purposes, having 

considered the same, report favorably thereon without amendment 

and recommend that the bill do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 2 

Background and Need for Legislation .................................................................... 2 

Hearings ................................................................................................................... 9 

Subcommittee Consideration .................................................................................. 9 

Committee Consideration ........................................................................................ 9 

Committee Votes ...................................................................................................... 9 

Committee Correspondence .................................................................................... 10 

Committee Oversight Findings ............................................................................... 12 

Statement of General Performance Goals and Objectives .................................... 12 

Earmarks and Tax and Tariff Benefits .................................................................. 12 

Committee Cost Estimate ....................................................................................... 12 

Budget Authority and Congressional Budget Office Estimate ............................ 12 

Federal Mandates Statement ................................................................................. 12 

Advisory Committee Statement .............................................................................. 13 

Constitutional Authority Statement ...................................................................... 13 

Applicability to Legislative Branch ........................................................................ 13 

Statement on Duplication of Federal Programs .................................................... 13 

Disclosure of Directed Rulemaking ........................................................................ 13 

Section-by-Section Analysis of the Legislation ...................................................... 13 

Changes in Existing Law Made by the Bill as Reported ...................................... 20 


SSpencer on DSK4SPTVN1PROD with REPORTS
2 

1 Report no. 16–00351–453, VA Office of the Inspector General, ‘‘OIG Determination of VHA 

Occupational Staffing Shortages,’’ September 28, 2016. https://www.va.gov/oig/pubs/VAOIG16-00351-453.pdf 

PURPOSE AND SUMMARY

H.R. 1367 was introduced by Representative Brad Wenstrup of 

Ohio, Chairman of the Committee on Veterans’ Affairs Subcommittee on Health, on March 6, 2017. 

The bill would make a number of improvements to the Department of Veterans Affairs’ (VA’s) ability to identify staffing shortages, recruit and retain high-quality employees, and quickly onboard new hires. 

BACKGROUND AND NEED FOR LEGISLATION

Section 2. Modification to annual determination of staffing shortages in Veterans Health Administration 

Subsection 3304(a) of title 5, United States Code (U.S.C.), authorizes Federal agencies to appoint candidates without regard to 

certain hiring preferences and competitive service selection requirements directly to positions for which the Office of Personnel Management (OPM) has determine there is either a severe shortage of 

candidates or an identified critical hiring need. This is referred to 

as direct hiring authority. 

Committee oversight as well as Government Accountability Office (GAO) and VA Inspector General (IG) reports have found inadequate staffing and gaps in health care professional hiring at VA 

medical facilities nationwide. This can adversely impact care to veteran patients by creating or contributing to access issues and 

scheduling delays. In recognition of this, Congress acted in section 

301 of the Veterans Access, Choice, and Accountability Act of 2014 

(P.L. 113–146) to require the IG to annually identify and publish 

the five occupations of health care providers with the largest staffing shortages and authorize VA to utilize direct hiring authority to 

fill shortages for each of the five occupations identified. According 

to the latest such IG report, which was published on September 28, 

2016, VA’s largest critical need occupations are: (1) Medical Officer; 

(2) Nurse; (3) Psychologist and Physician Assistant (tied); and, (5) 

Physical Therapist and Medical Technologist (tied).1 According to 

the IG, the top five occupations from the two previous reports were 

identical to the 2016 ranking with the exception of the addition of 

Medical Technologist. 

Section 2 of the bill would modify the annual determination of 

Veterans Health Administration (VHA) staffing shortages by including five clinical occupations and five non-clinical occupations 

within each VA medical center. The Committee believes this will 

allow for the identification of local staffing needs—which could vary 

significantly among VA medical facilities and improved utilization 

of direct hiring authority to address those needs, resulting in a VA 

healthcare staff that is better equipped to provide high-quality care 

to veteran patients. 

Section 3. Executive Management Fellowship Program 

According to the 2016 Best Places to Work in the Federal Government survey—based on the nonpartisan Partnership for Public 


SSpencer on DSK4SPTVN1PROD with REPORTS
3 

2Partnership for Public Service, Best Places to Work in the Federal Government, http:// 

bestplacestowork.org/BPTW/. 3Partnership for Public Service, ‘‘Best Places to Work Large Agency Rankings,’’ Accessed 

March 9, 2017. http://bestplacestowork.org/BPTW/rankings/overall/large 

Service’s analysis of OPM’s Federal Employee Viewpoint Survey— 

VA ranks 17 out of 18 among large agencies in effective leadership, 

with a score of just 48.7 out of 100.2 Given that concerning fact, 

the Committee is committed to finding creative ways for VA employees with leadership potential to improve their skills through 

leadership development and training opportunities that could then 

be utilized in those employees’ VA service. Various other Executive 

agencies have similarly sought to promote such opportunities 

through fellowship programs such as the White House Fellows Program and the State Department Franklin Fellows Program, which 

allow employees from the private sector to spend a year serving in 

the Federal government while their private sector employer continues to pay their salary and benefits. This provides a valuable influx of experience and knowledge without diverting resources from 

other priorities. The Committee believes that VA could benefit from 

such a fellowship program that would not only allow private sector 

employees the chance to work in VA but also allow emerging VA 

leaders to hone and enhance their skill sets in comparable private 

sector companies, contingent upon their agreement to return to VA 

employment for at least a certain set time period. 

Accordingly, Section 3 of the bill would establish an Executive 

Management Program to allow eligible VHA and Veterans Benefit 

Administration (VBA) employees the opportunity to take one-year 

fellowship positions in comparable private sector entities and eligible private sector employees to take one year fellowship positions 

in comparable VHA or VBA sites. The Committee believes this program will foster and facilitate a mutually-beneficial exchange of 

people, ideas, knowledge, and best practices between VA and comparable private sector entities, while providing VA employees with 

an additional leadership development opportunity that is vital to 

maintaining the long-term health of VA’s workforce. 

Section 4. Accountability of leaders in managing the Department of 

Veterans Affairs 

As referenced for Section 3 above, VA ranked 17 out of 18 among 

large Federal agencies in effective leadership according to the 2016 

Best Places to Work survey.3 Since the 2014 VA nationwide access 

scandal, the Committee’s legislative and oversight efforts have focused on increasing accountability for VA employees as a means of 

assessing leadership and strengthening the Department as a 

whole. Accordingly, the Committee has often reviewed performance 

plans for VA’s many Senior Executive Service (SES) employees. 

However, while performance plans are required for career SES employees by subchapter II of Chapter 43 of title 5, U.S.C., political 

appointees are not required to undergo performance plans. As senior leaders, political appointees play a critical role in setting and 

achieving Departmental priorities and, as such, the Committee believes that they should be held accountable as well for their performance and achievements. 

Section 4 of the bill would require VA to conduct annual performance plans for VA political appointees. This would ensure that the 


SSpencer on DSK4SPTVN1PROD with REPORTS
4 

4 U.S. Office of Personnel Management, ‘‘VET Guide’’ https://www.opm.gov/policy-data-oversight/veterans-services/vet-guide-for-hr-professionals/ 

Department’s senior political appointees undergo a performance 

planning and appraisal process similar to that of the Department’s 

career senior executives, which the Committee believes will assist 

in establishing a culture of accountability throughout VA and in restoring transparency and trust in the Department’s senior leaders. 

Each performance plan would be required to contain assessments 

in the following areas: recruiting, selecting, and retaining wellqualified individuals for VA employment; engaging and motivating 

employees; training and developing employees and preparing them 

for future VA leadership roles; and, holding each manager accountable for addressing performance issues for the employees under 

their purview. The goal of the Committee, however, is not to provide performance awards to political appointees as a result of these 

new required performance plans. These plans would only serve to 

provide the Secretary and others a way to track the performance 

of these senior employees who are critical to the Department’s 

overall mission and management. 

Section 5. Modification to veterans preference 

One of the hallmarks of hiring within the civil service system is 

veterans’ preference, which, in some form, dates back to the Civil 

War. The purpose of veterans’ preference is to provide eligible veterans with an advantage when they compete with equally qualified 

non-veteran candidates for Federal employment. For decades, Congress has seen the benefit of rewarding those who serve by providing them with hiring preference in the Federal government. According to OPM, ‘‘. . .[v]eterans’ preference recognizes the economic loss suffered by citizens who have served their country in 

uniform, restores veterans to a favorable competitive position for 

government employment, and acknowledges the larger obligation 

owed to disabled veterans.’’ 4 Under current law, there are several 

different categories of preference that are based on a veteran’s time 

on active duty service or their disability rating. 

The Committee believes that the economy and the Federal government, as a whole, benefit from having more qualified veterans 

employed within their ranks. Unfortunately, there are certain segments of veterans and servicemembers that do not qualify for veterans’ preference due to an outdated statute that does not accurately reflect the current characteristics of the U.S. Armed Forces. 

For example, section 2108 of title 5, U.S.C., requires that in order 

to receive veterans’ preference, a national guardsman or reservist 

must have served at least180 consecutive days on active duty. The 

Committee believes that this requirement is obsolete and does not 

take into account, the reality of the Department of Defense’s utilization of the National Guard or Reserve components since September 11, 2001. In a statement for the record for a March 16, 

2016, legislative hearing on this section, the Reserve Officers Association (ROA) indicated that, ‘‘since September 11, 2001, more than 

900,000 members of our reserve components—the National Guard 

and Reserves of our Army, Navy, Air Force, Marines and Coast 

Guard—have served in support of the war on terrorism. More than 


SSpencer on DSK4SPTVN1PROD with REPORTS
5 

5Statement for the Record of the Reserve Officers Association for the House Committee on 

Veterans Affairs Subcommittee on Health and Subcommittee on Economic Opportunity Hearing, 

‘‘Legislative Hearing on draft legislation to improve the authority of the Secretary of Veterans 

Affairs to hire and retain physicians and other employees of the Department of Veterans Affairs,’’ March 16, 2016. http://docs.house.gov/meetings/VR/VR03/20160316/104606/HHRG114-VR03-20160316-SD011.pdf 

1,200 have died in that fight.5’’ ROA’s statement for the record also 

attested to the fact that it was not uncommon for individuals in the 

National Guard and Reserve components to serve less than 180 

consecutive days on active duty service at any given point, therefore making them ineligible for veterans’ preference benefits. The 

Committee believes that this is important to note, despite the unemployment rate for veterans continuing, on average, to be lower 

than their non-veteran counterparts, because there is a concern 

about the growing unemployment rate amongst members of the 

National Guard and Reserve. 

The Committee is also a concerned that section 2108 of title 5, 

U.S.C., does not allow for retired members of the Armed Forces to 

receive some form of veterans’ preference. While the Committee 

agrees that veterans’ preference was put in place mainly to assist 

enlisted servicemembers, the Committee believes that in today’s 

growing economy, and with the reality that many military retirees 

do not ‘‘retire’’ from the workforce following their military service, 

there is no need to make the distinction between retirees and other 

veterans in providing veterans’ preference eligibility. 

Therefore, to address both of these issues, Section 5 would 

amend section 2108 of title 5, U.S.C., to change the requirement 

that guardsmen and reservists must serve 180 consecutive days on 

active duty to require that they instead serve 180 cumulative days 

on active duty to be eligible for veterans’ preference. Additionally, 

this Section would further amend section 2108 of title 5 U.S.C., to 

allow retired members of the Armed Forces to qualify for veterans’ 

preference. The Committee believes that these two changes are 

necessary to modernize this important benefit, bring needed skill 

sets to Federal service unique to those who have served in uniform, 

and potentially reduce the unemployment rates among this population of veterans. 

Section 6. Reemployment of former employees 

Currently, former Federal employees who have left Federal service may be non-competitively reinstated only to a job at or below 

the grade level they last held. As a result, medical and other professionals who have left VA employment to gain valuable education 

and/or experience elsewhere cannot be considered for non-competitive reinstatement to a position above their prior grade level. This 

creates a disincentive for former employees to return to VA employment and utilize new skills to benefit veterans and assist in addressing the significant access and other challenges facing VA. 

To address this recruitment issue, Section 6 of the bill would 

allow VA to noncompetitively reappoint a former VA employee to 

a position not more than one grade higher than his or her former 

position as long as the employee left voluntarily within the prior 

two years, had a satisfactory performance record, and maintained 

necessary licensures and credentials. The Committee believes this 

will encourage experienced former employees to reconsider VA 

service while providing VA an additional recruitment tool and a 


SSpencer on DSK4SPTVN1PROD with REPORTS
6 

6GAO–17–30, December 2016, ‘‘Management Attention is Needed to Address Systemic, Longstanding Human Capital Challenges,’’ http://www.gao.gov/assets/690/681805.pdf 

talented applicant pool that can be quickly leveraged to meet immediate hiring needs. 

Section 7. Recruiting database 

The Committee has long been concerned about the lack of stable 

leadership at many VA medical facilities. During an October 22, 

2015, interview on CNN, then VA Deputy Secretary, Sloan Gibson, 

stated that, ‘‘[m]ore than 50 percent of our senior leaders in the 

Veterans Health Administration have turned over in the last 24 

months.’’ When questioned by the Committee, VA has been unable 

to produce a plan to prioritize recruitment and retention for medical center leaders to address that turnover. 

Section 7 of the bill would require VA to establish a recruiting 

database listing each vacant position that VA determines is critical 

to its mission, is difficult to fill, or both. The database would contain information on qualified individuals who applied for a position 

within VA and were not chosen but could be qualified for other 

similar VA positions elsewhere. VA would be required to use the 

database of qualified applicants in an effort to fill prolonged vacant 

positions. The Committee believes such a database will assist VA 

in increasing the identification and hiring of qualified applicants 

system-wide for critical medical facility leadership positions. 

Section 8. Human resources academy 

In late 2016, GAO found that, between the end of fiscal year 

2011 and the end of fiscal year 2015, VHA lost 1,904 human resources (HR) staff to attrition, which is a reflection of a government-wide struggle to recruit and retain HR professionals.6 In VA’s 

case, the Committee believes that VHA HR personnel are at an increased likelihood of departure due to burnout resulting from a failure to properly train HR officials on the intricacies of VHA hiring 

practices. VHA currently utilizes two personnel systems one for 

title 5 U.S.C., competitive service and another one for title 38, 

U.S.C. excepted service. Of the two, hiring authorities under title 

38, U.S.C., are unique to VHA and can be complex. In an effort to 

increase the retention of needed HR professionals and also increase 

the efficiency of hiring across VHA, Section 8 of the bill would require VA to train VHA HR professionals after their initial hire and 

annually thereafter on how to recruit and retain VHA employees, 

in general, and on recruitment and retention matters that are 

unique to VHA under title 38, U.S.C., specifically. 

Section 9. Promotional opportunities for technical experts 

The Committee has a demonstrated interest in seeing VA retain 

high-quality employees and recognizes that many positions 

throughout the Department require a high-level of technical expertise. However, according to testimony from the Partnership for 

Public Service in 2016, ‘‘[t]he rigid structure of the GS system requires employees to move into supervisory and management roles, 

even in cases where the employee may not have the skills or desire 

to perform as a manager but must take on such duties in order to 


SSpencer on DSK4SPTVN1PROD with REPORTS
7 

7Testimony from the Partnership for Public Service, March 16, 2016, ‘‘Legislative Hearing on 

draft legislation to improve the authority of the Secretary of Veterans Affairs to hire and retain 

physicians and other employees of the Department of Veterans Affairs,’’ https://veterans.house.gov/hearings/legislative-hearing-draft-legislation-improve-authority-secretary-veterans-affairs-hire-0. 8 Ibid. 

9GAO–17–30, December 2016, ‘‘Management Attention is Needed to Address Systemic, Longstanding Human Capital Challenges,’’ http://www.gao.gov/assets/690/681805.pdf 

advance in their career.’’7 Requiring highly technical employees to 

either leave VA employment, remain in their current position indefinitely, or take on managerial roles for which they may be illsuited and uninterested is not an effective recruitment or retention 

tool. 

To address this issue and create a pathway to promotion for 

high-performing employees in highly-technical positons, Section 9 

of the bill would require VA to establish a promotional track for 

technical experts that does not require transition to a managerial 

position. The Committee believes this will allow VA to retain needed, high-quality employees who desire to advance in their career 

without taking on management role within VA. 

Section 10. Comptroller general study on succession planning 

Succession planning is a process for identifying and developing 

new leaders to replace those retiring or otherwise vacating their 

current roles. According to testimony from the Partnership for Public Service before the Subcommittees on Health and Economic Opportunity in March 2016, VA’s considerable recruitment and retention issues are worsened by an aging workforce that is becoming 

increasingly retirement-eligible.8 Given that, succession planning is 

particularly critical for VA to prevent gaps or a reduction in the 

quality of services provided to veterans as current employees depart. However, the Committee believes that VA’s succession planning efforts across VHA, VBA, and the National Cemetery Administration (NCA) is in need of greater study. 

Section 10 of the bill would require GAO to study and report on 

succession planning for each medical facility within VHA as well as 

mission-critical positions within VBA and NCA. This study would 

include: a determination of the mission-critical positions and the 

vacancy risk of such positions; an analysis of the future needs for 

the identified positions; and, strategies to fill gaps through training 

for existing staff, targeted recruitment and hiring. 

Section 11. Information on hiring effectiveness 

In December 2016, GAO released a report, which found that 

VHA fell short of Federal standards for effective internal controls 

to support HR functions, compromising VHA’s ability to deliver HR 

services and effectively serve veteran patients.9 This finding is consistent with the Committee’s findings that VA and VHA HR employees in the field and in leadership often lack information regarding key measures that could indicate weaknesses in HR practices. 

GAO subsequently recommended that VA develop a plan to collect 

and apply leading HR practices within the Department, a finding 

with which the Committee concurs. 

As such, Section 11 of the bill would require VA to collect information, indicators, and measurements on hiring effectiveness and 

employee satisfaction and submit an annual report to Congress on 


SSpencer on DSK4SPTVN1PROD with REPORTS
8 

10GAO–15–794, September 2015, ‘‘Oversight Improvements Needed for Nurse Recruitment 

and Retention Initiatives,’’ http://www.gao.gov/assets/680/672839.pdf 11Testimony from the Partnership for Public Service, March 16, 2016, ‘‘Legislative Hearing 

on draft legislation to improve the authority of the Secretary of Veterans Affairs to hire and 

retain physicians and other employees of the Department of Veterans Affairs,’’ https://veterans.house.gov/hearings/legislative-hearing-draft-legislation-improve-authority-secretary-veterans-affairs-hire-0 

the information collected for each Veterans Integrated Service Network. Some of these indicators include: recruiting and hiring wellqualified talent from diverse talent pools, the use and impact of 

special hiring authorities and flexibilities to recruit the most qualified applicants (including the use of student internships as a talent 

pool for future hires), and the use and impact of special hiring authorities and flexibilities to recruit diverse candidates (including 

veteran, minority and disabled candidates). The Committee believes that this requirement will assist VA leaders and HR professionals in identifying shortcomings and targeting improvements as 

well as provide needed transparency to Congress, allowing the 

Committee to conduct better oversight of VA’s HR functions. 

Section 12. Employment of students and recent graduates 

As noted in Section 10 above, VA’s existing workforce is aging 

and increasingly retirement eligible, creating concerns about the 

Department’s ability to continue providing high-quality benefits 

and services to future generations of veterans. Worryingly, in 2015, 

GAO found that 42% of VHA’s overall senior leadership was eligible to retire and, by fiscal year 2019, one in five VA nurses would 

be eligible to retire.10 The Committee believes that improving the 

recruitment and retention of younger employees is critical to the 

Department’s continued success. However, VA has historically performed poorly in comparison to other Federal agencies in hiring 

younger employees. According to OPM, in 2015, 25.2% of new hires 

government-wide were under the age of 30 compared to just 15.7% 

of VA’s new hires. While VA has an important medical professional 

training mission that could be leveraged to recruit young providers 

to VA service, just 0.68% of VA’s total workforce were under the 

age of 25 and just 5.35% were under the age of 30 in 2015.11

To assist VA in bringing needed young employees on-board, Section 12 of the bill would require VA to promulgate regulations to 

allow for excepted service appointments for students and recent 

graduates leading to conversion to career or career conditional employment. The Committee is hopeful that this authority will be useful in creating a pipeline of younger professionals that will offset 

staffing shortages as the current VA workforce retires. 

Section 13. Exit surveys 

Voluntary, anonymous exit surveys are an important tool to inform HR professionals and agency leaders about why departing employees choose to leave their current positions and, thus, how to 

better retain others in the workforce. While VHA has an existing 

exit survey process, the Committee believes that VHA currently 

does a lackluster job at administering exit surveys and often fails 

to request the completion of a survey from a departing employee, 

thus denying VHA the opportunity to improve retention moving 

forward. This is evidenced by a 2016 GAO finding that only an average of 30 percent of all clinical employees who leave have comVerDate Sep 11 2014 03:12 Mar 11, 2017 Jkt 069006 PO 00000 Frm 00008 Fmt 6659 Sfmt 6602 E:\HR\OC\HR035P1.XXX HR035P1

SSpencer on DSK4SPTVN1PROD with REPORTS
9 

12GAO–16–666R, July 29, 2016, ‘‘Personnel Data Show Losses Increased for Clinical Occupations from Fiscal Year 2011 through 2015, Driven by Voluntary Resignations and Retirements,’’ 

http://www.gao.gov/products/GAO-16-666R. 13 Ibid. 

pleted VHA’s exit survey over the last five years.12 This is particularly concerning given that GAO also found that voluntary resignations accounted for an average of 54 percent of losses from VA’s top 

five most critical shortage occupations from 2011 to 2015.13 Factors 

that lead to employee resignations cannot be addressed if they are 

not identified. To address this shortcoming, Section 13 of the bill 

would require VA to develop and conduct a standardized, anonymous exit survey to be voluntarily completed by VA employees who 

voluntarily elect to terminate their employment with the Department. The results of these surveys are to be compiled and shared 

with Congress in an annual report. 

HEARINGS

There were no Subcommittee or Full Committee hearings held on 

H.R. 1367. 

SUBCOMMITTEE CONSIDERATION

There was no Subcommittee consideration of H.R. 1367. 

COMMITTEE CONSIDERATION

On March 8, 2017, the Full Committee met in open markup session, a quorum being present, and ordered H.R. 1367 to be reported 

favorably to the House of Representatives by voice vote. A motion 

by Representative Tim Walz of Minnesota, Ranking Member of the 

Committee on Veterans’ Affairs, to report H.R. 1367 favorably to 

the House of Representatives was agreed to by voice vote. 

COMMITTEE VOTES

In compliance with clause 3(b) of rule XIII of the Rules of the 

House of Representatives, there were no recorded votes taken on 

amendments or in connection with ordering H.R. 1367 reported to 

the House. 


SSpencer on DSK4SPTVN1PROD with REPORTS
10 


SSpencer on DSK4SPTVN1PROD with REPORTSInsert offset folio 10 here HR35P1.001
11 


SSpencer on DSK4SPTVN1PROD with REPORTSInsert offset folio 11 here HR35P1.002
12 

COMMITTEE OVERSIGHT FINDINGS

In compliance with clause 3(c)(1) of rule XIII and clause (2)(b)(1) 

of rule X of the Rules of the House of Representatives, the Committee’s oversight findings and recommendations are reflected in the 

descriptive portions of this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

In accordance with clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee’s performance goals and 

objectives are to improve VA’s ability to identify staffing shortages 

and recruit, retain, and quickly on-board high-quality employees to 

serve veteran patients and beneficiaries. 

EARMARKS AND TAX AND TARIFF BENEFITS

H.R. 1367 does not contain any Congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI of the Rules of the House of Representatives. 

COMMITTEE COST ESTIMATE

Clause 3(d)(2) of rule XIII of the Rules of the House of Representatives requires an estimate and a comparison by the Committee of the costs that would be incurred in carrying out this bill. 

However, clause 3(d)(3)(B) of that Rule provides that this requirement does not apply when the Committee has included in its report 

a timely submitted cost estimate of the bill prepared by the Director of the Congressional Budget Office under section 402 of the 

Congressional Budget Act of 1974. The Committee has requested 

but not received a cost estimate for this bill from the Director of 

the Congressional Budget Office. The Committee believes that enactment of this bill would result in no additional direct spending 

over the 2018–2022 period. Assuming the appropriation of authorized amounts, the Committee estimates that the legislation would 

also have a discretionary cost of $33 million over the 2018–2022 period. 

BUDGET AUTHORITY AND CONGRESSIONAL BUDGET OFFICE COST

ESTIMATE

With respect to the requirements of clause 3(c)(2) of rule XIII of 

the Rules of the House of Representatives and section 308(a) of the 

Congressional Budget Act of 1974 and with respect to requirements 

of clause (3)(c)(3) of rule XIII of the Rules of the House of Representatives and section 402 of the Congressional Budget Act of 

1974, the Committee has requested but not received a cost estimate 

for this bill from the Director of Congressional Budget Office. The 

Committee has requested but not received from the Director of the 

Congressional Budget Office a statement as to whether this bill 

contains any new budget authority, spending authority, credit authority, or an increase or decrease in revenues or tax expenditures. 

FEDERAL MANDATES STATEMENT

With respect to the requirements of Section 423 of the Congressional Budget and Impoundment Control Act (as amended by SecVerDate Sep 11 2014 03:12 Mar 11, 2017 Jkt 069006 PO 00000 Frm 00012 Fmt 6659 Sfmt 6602 E:\HR\OC\HR035P1.XXX HR035P1

SSpencer on DSK4SPTVN1PROD with REPORTS
13 

tion 101(a)(2) of the Unfunded Mandate Reform Act, P.L. 104–4), 

the Committee has requested but not received from the Director of 

the Congressional Budget Office a statement as to whether the provisions of the reported bill include unfunded mandates. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act would be created by H.R. 1367. 

STATEMENT OF CONSTITUTIONAL AUTHORITY

Pursuant to Article I, section 8 of the United States Constitution, 

H.R. 1367 is authorized by Congress’ power to ‘‘provide for the common Defense and general Welfare of the United States.’’ 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that H.R. 1367 does not relate to the terms 

and conditions of employment or access to public services or accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

STATEMENT ON DUPLICATION OF FEDERAL PROGRAMS

Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House 

of Representatives, the Committee finds that no provision of H.R. 

1367 establishes or reauthorizes a program of the Federal Government known to be duplicative of another Federal program, a program that was included in any report from the Government Accountability Office to Congress pursuant to section 21 of Public 

Law 111–139, or a program related to a program identified in the 

most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(i) of H. Res. 5, 115th Cong. (2017), H.R. 

1367 would require the Secretary of Veterans Affairs to prescribe 

regulations pursuant to Section 12 of the bill that would allow for 

excepted service appointments of students and recent graduates of 

qualifying educational institutions leading to conversion to career 

or career conditional employment at the Department of Veterans 

Affairs. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Table of contents 

Section 1 of the bill would establish the table of contents. 

Section 2. Modification to annual determination of staffing shortages in Veterans Health Administration 

Section 2 of the bill would amend section 7412(a) of title 38 

U.S.C. by striking ‘‘five occupations’’ and inserting ‘‘the five clinical 

occupations and the five nonclinical occupations’’ and striking 

‘‘throughout the Department’’ and inserting ‘‘with respect to each 

medical center of the Department.’’ 


SSpencer on DSK4SPTVN1PROD with REPORTS
14 

Section 3. Executive Management Fellowship Program 

Section 3(a) of the bill would amend chapter 7 of title 38 U.S.C. 

by adding at the end the following new subchapter, ‘‘SUBCHAPTER III—EXECUTIVE MANAGEMENT FELLOWSHIP 

PROGRAM §741. Executive Management Fellowship Program’’. 

Section 741(a) would establish an Executive Management Fellowship Program within VA with the purpose of providing eligible 

VHA and VBA employees with training and experience in the private sector and eligible private sector employees with training and 

experience in VA. 

Section 741(b) would stipulate that the fellowship established 

pursuant to section 741(b) would last for one year. The VA participant would receive training and experience at a private sector entity that is engaged in the administration and delivery of health care 

or other services similar to the benefits administered by the Secretary of Veterans Affairs. The private sector participant would receive training and experience at VBA or VHA. Section 741(b) would 

also require VA to enter into agreements with private-sector entities as are necessary to carry out this Section. 

Section 741(c) would require the Secretary, in August of each 

year, to select not fewer than 18 and not more than 30 eligible employees of VBA and VHA and not fewer than 18 and not more than 

30 eligible employees of private-sector entities to receive a fellowship pursuant to section 741(a). Section 741(c) would also require 

the Secretary, to the extent practicable, to select eligible employee 

to participate in the fellowship from among employees who are veterans in a manner that is reflective of the demographics of the veteran population of the United States. 

Section 741(d) would define an eligible employee with respect to 

a VBA or VBA employee, as an employee who: is compensated at 

a rate of basic pay not less than the minimum rate of basic pay 

payable for grade GS–14 of the General Schedule and not more 

than either the minimum rate of basic pay payable to a member 

of the Senior Executive Service under section 5382 of title 5 U.S.C. 

or the minimum rate of basic pay payable pursuant to chapter 74 

of title 38 U.S.C. as the case may be; enters into an agreement 

with the Secretary under section 741(e); and, submits to the Secretary an application containing such information and assurances 

as the Secretary may require. Section 741(d) would define an eligible employee with respect to an employee of a private sector entity 

as an employee who: is employed in a position whose duties and 

responsibilities are commensurate with an eligible VA employee; 

enters into an agreement with the Secretary under section 741(e); 

and, submits to the Secretary an application containing such information and assurances as the Secretary may require. 

Section 741(e) would require an agreement between the Secretary and a VA participant in the fellowship program established 

pursuant to section 741(a) to be in writing, to be signed by the participant, and to include the following: the Secretary’s agreement to 

provide the participant with a fellowship agreement; the participant’s agreement to accept the fellowship and to serve as a fulltime employee in VBA or VHA for at least two years after completion of the fellowship as specified in the agreement and, that, during the two-year period beginning on the last day of the fellowship, 

the participant will not accept employment in the same industry of 


SSpencer on DSK4SPTVN1PROD with REPORTS
15 

the private sector entity at which the participant accepts the fellowship; a statement of the damages to which the United States is 

entitled under this subchapter for the participant’s breach of this 

agreement; and, such other terms as the Secretary determines are 

required to be included in the agreement. Section 741(e) also requires an agreement between the Secretary and a private sector 

participant to be in writing, to be signed by the participant, and 

to include the following provisions: the Secretary’s agreement to 

provide the participant with a fellowship, the participant’s agreement to accept the fellowship, and such other terms as the Secretary determines are required to be included in the agreement. 

Section 741(f) would require a VA participant to be considered a 

VA employee for all purposes, including for purposes of receiving 

a salary and benefits, and to remain eligible for all promotion and 

incentive programs otherwise available to such employee. Section 

741(f) would also require a private sector participant to be considered an employee of the private sector entity that employs the participant for all purposes, including for purposes of receiving a salary and benefits, and to be treated as a VA contractor during the 

fellowship. 

Section 741(g) would, not later than 60 days after completing a 

fellowship, require the Secretary to submit a report on the fellowship describing the duties of the fellowship participants and any 

recommendations of the participant for the Secretary of industry 

processes, technologies, and best practices and to submit such report without change to the Committees on Veterans’ Affairs of the 

House of Representatives and of the Senate no later than seven 

days after receiving such report. 

Section 741(h) would define the term ‘‘Department participant’’ 

as an employee of VBA or VHA who is participating in the fellowship pursuant to section 741 (a) and the term ‘‘private sector participant’’ as an employee of a private sector entity who is participating in the fellowship pursuant to section 741 (a). 

Section 3(b) of the bill would require the Secretary to implement 

the Executive Management Fellowship Program required under 

section 741 of title 38 U.S.C. as added by Section 3(a) of the bill 

not later than 90 days after the date of enactment. 

Section 3(c) of the bill would amend the table of sections at the 

beginning of chapter 7 of title 38 U.S.C. by adding at the end the 

following new items, ‘‘SUBCHAPTER III—EXECUTIVE MANAGEMENT FELLOWSHIP PROGRAM § 741. Executive Management 

Fellowship Program’’. 

Section 4. Accountability of leaders in managing the Department of 

Veterans Affairs 

Section 4(a) of the bill would amend chapter 7 of title 38 U.S.C. 

by inserting after section 717 the following new section, ‘‘§719. Annual performance plan for political appointees’’. 

Section 719(a) would require the Secretary of Veterans Affairs to 

conduct an annual performance plan for each VA political appointee that is similar to the annual performance plan conducted 

for a VA employee who is appointed as a career appointee (as that 

term is defined in section 3132(a)(4) of title 5 U.S.C. within the VA 

Senior Executive Service. 


SSpencer on DSK4SPTVN1PROD with REPORTS
16 

Section 719(b) would require each performance plan pursuant to 

section 719(a) to include an assessment of whether the appointee 

is meeting the following goals: recruiting, selecting, and retaining 

well-qualified individuals at VA; engaging and motivating employees; training and developing employees and preparing those employees for future leadership roles within VA; and, holding each VA 

employee that is a manager accountable for addressing issues relating to performance, in particular issues relating to the performance 

of employees that relate to the manager. 

Section 719(c) would define the term ‘‘political appointee’’ as a 

VA employee who holds a position which has been excepted from 

the competitive service by reason of its confidential policy-determining, policy-making, or policy-advocating character or a position 

in the Senior Executive Service as a noncareer appointee as such 

term is defined in section 3132(a) of title 5 U.S.C. 

Section 4(b) of the bill would amend the table of sections at the 

beginning of chapter 7 of title 38 U.S.C. by amending after the 

item relating to section 717 the following new item, ‘‘§719. Annual 

performance plan for political appointees’’. 

Section 5. Modification to veterans preference 

Section 5(a) of the bill would amend section 2108(1)(B) and (D) 

of title 5 U.S.C. by striking ‘‘consecutive’’ and inserting ‘‘cumulative’’ in every instance. 

Section 5(b) of the bill would amend section 2108(4) of title 5 

U.S.C. to read as follows: ‘‘(4) ‘preference eligible’ includes a retired 

member of the armed forces; and’’. 

Section 6. Reemployment of former employees 

Section 6(a) of the bill would allow the Secretary of Veterans Affairs to noncompetitively appoint a qualified former employee to 

any position within the competitive service or any excepted service 

position under chapter 74 of title 38 U.S.C. at VA that is one grade 

higher than the grade of the position at VA most recently occupied 

by the employee. 

Section 6(b) of the bill would prohibit the Secretary from appointing a qualified former employee to a position that is more than one 

grade (or equivalent) higher than the position at VA most recently 

occupied by the employee. 

Section 6(c) of the bill would define the term ‘‘qualified former 

employee’’ to mean any individual who: formerly occupied any position at VA within two years of applying for reemployment at VA; 

voluntarily left such position or was subject to a reduction in force 

and had a satisfactory performance record; and, since leaving, has 

maintained licensing requirements related to the position, if any, 

and gained skill, knowledge, or other factors related to the position. 

Section 7. Recruiting database 

Section 7(a) of the bill would establish a single database that 

lists each vacant position at VA that the Secretary of Veterans Affairs determines is critical to VA’s mission, difficult to fill, or both. 

Section 7(b) of the bill would require the Secretary, at the election of the applicant, to consider the applicant for other similar vacant positions listed in the database established under Section 7(a) 

of the bill if the Secretary determines that the applicant for a vaVerDate Sep 11 2014 03:12 Mar 11, 2017 Jkt 069006 PO 00000 Frm 00016 Fmt 6659 Sfmt 6602 E:\HR\OC\HR035P1.XXX HR035P1

SSpencer on DSK4SPTVN1PROD with REPORTS
17 

cant position listed in the database is qualified for such position 

but does not select the applicant for same. 

Section 7(c) of the bill would stipulate that, if the Secretary does 

not fill a vacant positon listed in the database established under 

Section 7(a) of the bill after a period determined appropriate by the 

Secretary, the Secretary is required to ensure that applicants described in Section 7(b) of the bill are considered for such position 

and are required to use the database established under Section 7(a) 

of the bill to assist in filling such position. 

Section 7(d) of the bill would require the Secretary to submit a 

report to Congress on the use and efficacy of the database established under Section 7(a) of the bill not later than one year after 

the date of enactment. 

Section 8. Human Resources Academy 

Section 8(a) of the bill would require the Secretary of Veterans 

Affairs to provide VHA HR professionals training on how to best 

recruit and retain VHA employees, including with respect to any 

recruitment and retention matters that are unique to VHA pursuant to chapter 74 of title 38 U.S.C. or other provisions of law. Section 8(a) of the bill would also provide such training in manner in 

which the Secretary determines appropriate in light of budget, 

travel, and other constraints. 

Section 8(b) of the bill would require the Secretary to ensure that 

each VHA HR professional receives the training described in Section 8(a) of the bill as soon as practicable after being hired by the 

Secretary as a HR professional and annually thereafter. 

Section 8(c) of the bill would require the Secretary to ensure that 

each VHA HR professional, upon completion of the training described in Section 8(a) of the bill, certifies that the professional received the training and understands the information provided by 

the training. 

Section 8(d) of the bill would require the Secretary to submit the 

Committees on Veterans’ Affairs of the House of Representatives 

and the Senate an annual report on the training described in Section 8(a) of the bill, including the cost of providing such training 

and the number of human resources professionals who received 

such training during the year covered by the report. 

Section 9. Promotional opportunities for technical experts 

Section 9 of the bill would, not later than one year after the date 

of enactment, require the Secretary of Veterans Affairs to establish 

a promotional track system for VA employees that the Secretary 

determines are technical experts pursuant to regulations prescribed 

by the Secretary for purposes of carrying out this Section. The promotional track system is required to provide any such employee the 

opportunity to advance within VA without being required to transition to a management system and, for the purposes of achieving career advancement, provide for the establishment of new positions 

within VA and provide for increases in pay for any such employee, 

notwithstanding any other provision of law. 

Section 10. Comptroller General study on succession planning 

Section 10(a) of the bill would require the Comptroller General 

of the United States to conduct a study on the succession planning 


SSpencer on DSK4SPTVN1PROD with REPORTS
18 

conducted at each VA medical facility as well as the succession 

planning at VBA and NCA. 

Section 10(b) of the bill would require the study mandated under 

Section 10(a) of the bill to include, for each entity, the following: 

a determination of the mission-critical positions within the entity 

and the vacancy risk of such positions; an analysis of the future 

needs for mission-critical positions and gaps within the existing talent pool of the entity; a description of strategies to close skill gaps 

through the use of training for existing staff, targeted recruitment, 

and hiring; a plan to regularly evaluate progress of staff and update existing succession plans using clear and measurable metrics 

and benchmarks; a demonstration of the capacity of the entity to 

execute succession plans with successful succession management 

strategies; and, any other matters the Comptroller General determines appropriate. 

Section 10(c) of the bill would, not later than one year after the 

date of enactment, require the Comptroller General to submit to 

the Committees on Veterans’ Affairs of the House of Representatives and of the Senate a report containing each study conducted 

under section 10(a) of the bill. 

Section 11. Information on hiring effectiveness 

Section 11(a) of the bill would require the Secretary of Veterans 

Affairs to measure and collect the following information on indicators of hiring effectiveness: (1) with respect to recruiting and hiring, (A) the ability to reach and recruit well-qualified talent from 

diverse talent pools, including sources of candidates for missioncritical occupations, (B) the use and impact of special hiring authorities and flexibilities to recruit most qualified applicants, including the use of student internships as a talent pool for permanent hires, (C) the use and impact of special hiring authorities and 

flexibilities to recruit diverse candidates including veteran, minority, and disabled candidates, (D) the use and impact of special hiring authorities to recruit candidates for mission-critical occupations 

and occupations with shortages, (E) the age, educational level, and 

source of applicants, (F) the length of time between the date on 

which a position is advertised and the date on which a first offer 

of employment is made, (G) the length of time between the date on 

which a first offer of employment for a position is made and the 

date on which a new hire starts in that position, (H) the number 

of internal and external applicants for positions, (I) and the number of offers accepted compared to the number of offers made for 

permanent positions; (2) with respect to hiring authority, the satisfaction of the hiring authority with the quality of new hires, the 

match between the skills of newly hired individuals and the needs 

of VA, the hiring process and hiring outcomes after the first year 

of the new hire’s employment, the length of time that elapses to fill 

a position for a new hire to begin working in a new positon, and 

mission-critical deficiencies filled by new hires and the connection 

between mission-critical deficiencies and annual agency performance; (3) satisfaction of employment applicants with the hiring 

process, including with respect to the clarity of the job announcement, reasons for withdrawal of applications, user-friendliness of 

the application process, communication regarding status of applications, and timeliness of hiring decisions; (4) with respect to a newly 


SSpencer on DSK4SPTVN1PROD with REPORTS
19 

hired employee, (A) the satisfaction of the employee with the hiring 

process, (B) the satisfaction with the process of joining and becoming oriented with VA, including with respect to timeliness, the orientation process, and being provider with timely and useful new 

employee information and assistance after the hire is made but before the new hire starts and after the new hire has begun, (C) attrition and reasons for leaving, (D) investment in training and development for the employee during the first year of employment, (E) 

and significant barriers to effective recruitment, selection, joining, 

and becoming oriented with VA and retention of employees. 

Section 11(b) of the bill would, to the extent practicable and in 

a manner which protects personally identifiable information of applicants and employees, require the Secretary to collect and report 

the data collected pursuant to Section 11(a) of the bill 

disaggregated by facility or Veterans Integrated Service Network. 

Section 11(c) of the bill would require the Secretary to submit to 

the Committees on Veterans’ Affairs of the House of Representatives and Senate a report on the information collected pursuant to 

Section 11(a) of the bill on an annual basis. Section 11(c) of the bill 

would also require the Secretary to make publicly available the information collected pursuant to Section 11(a) of the bill in a consistent and machine-readable format to allow for a comparison of 

hiring effectiveness and experience by Veterans Integrated Service 

Network or comparable public or private sector organization. 

Section 12. Employment of students and recent graduates 

Section 12(a) of the bill would require the Secretary to prescribe 

regulations to allow for excepted service appointments of students 

and recent graduates leading to conversion to career or career conditional employment of a student or recent graduate of a qualifying 

educational institution, as defined by the Department. 

Section 12(b) of the bill would require the conversion authority 

described in Section 12(a) of the bill to be applicable to individuals 

in good standing who are employed in a qualifying internship or 

fellowship program at VA; are employed by VA in a volunteer capacity and performing substantive duties comparable to those individuals in internships or fellowship programs and meet the required number of hours for conversion; or are employed by VA 

under a contract or agreement with an external non-profit organization and performing substantive duties comparable to those of individuals in internship or fellowship programs. 

Section 12(c) of the bill would, for the purposes of Section 12(b) 

of the bill, require the hours of work performed by an individual 

to be considered equal to those performed by an individual employed in a qualifying internship or fellowship program of VA. 

Section 13. Exit surveys 

Section 13(a) of the bill would require VA to develop and carry 

out a standardized exit survey to be voluntarily completed by career and noncareer employees and executives at VA who voluntarily separate from VA. Section 13(a) would also require the exit 

survey to be developed in consultation with an appropriate non-VA 

entity with experience developing such surveys. 

Section 13(b) of the bill would require the survey to contain, at 

a minimum, the: reasons for leaving VA; efforts made by the superVerDate Sep 11 2014 03:12 Mar 11, 2017 Jkt 069006 PO 00000 Frm 00019 Fmt 6659 Sfmt 6602 E:\HR\OC\HR035P1.XXX HR035P1

SSpencer on DSK4SPTVN1PROD with REPORTS
20 

visor of the employee to retain the individual; extent of job satisfaction and engagement during the employment; intent of the employee to either remain employed within the Federal government 

or to leave employment with the Federal government; and other 

matters the Secretary determines appropriate. 

Section 13(d) of the bill would require the Secretary to ensure 

that the results of the survey required by Section 13(a) of the bill 

are shared on an annual basis with directors and managers of VA 

and Veterans Integrated Service Network facilities. 

Section 13(e) of the bill would, not later than one year after the 

date of enactment, require the Secretary to submit to the Committees on Veterans’ Affairs of the House of Representatives and the 

Senate a report containing aggregate results of the exit survey 

under Section 13(a) of the bill covering the year prior to the report 

and containing: an analysis of the most common reasons employees 

choose to leave VA; steps the Secretary is taking to improve retention, particularly for mission-critical occupations; the demographic 

characteristics of employees choosing to leave VA; any legislative 

barriers to improving employee retention; and the number of employees who took the exit survey under Section 13(a) of the bill. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

and existing law in which no change is proposed is shown in 

roman): 

TITLE 38, UNITED STATES CODE 

* * * * * * * 

PART I—GENERAL PROVISIONS 

* * * * * * * 

CHAPTER 7—EMPLOYEES 

SUBCHAPTER I —GENERAL EMPLOYEE MATTERS 

Sec. 

701. Placement of employees in military installations. 

* * * * * * * 

719. Annual performance plan for political appointees. 

* * * * * * * 

SUBCHAPTER III—EXECUTIVE MANAGEMENT FELLOWSHIP PROGRAM 

741. Executive Management Fellowship Program. 

* * * * * * * 

SUBCHAPTER I—GENERAL EMPLOYEE MATTERS 

* * * * * * * 


SSpencer on DSK4SPTVN1PROD with REPORTS
21 

§ 719. 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 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. 

(c) DEFINITION OF POLITICAL APPOINTEE.—In this section, the 

term ‘‘political appointee’’ means an employee of the Department 

who holds— 

(1) a position which has been excepted from the competitive 

service by reason of its confidential, policy-determining, policymaking, or policy-advocating character; or 

(2) a position in the Senior Executive Service as a noncareer 

appointee (as such term is defined in section 3132(a) of title 5). 

* * * * * * * 

SUBCHAPTER III—EXECUTIVE MANAGEMENT FELLOWSHIP 

PROGRAM 

§ 741. Executive Management Fellowship Program 

(a) FELLOWSHIP PROGRAM.—There is in the Department an Executive Management Fellowship Program. The purpose of the program 

shall be to provide— 

(1) eligible employees of the Veterans Benefits Administration 

and the Veterans Health Administration with training and experience in the private sector; and 

(2) eligible employees of a private-sector entity with training 

and experience in the Department of Veterans Affairs. 

(b) FELLOWSHIP.—(1) A fellowship provided under this section is 

a one-year fellowship during which— 

(A) with respect to a Department participant, the participant 

receives training and experience at a private-sector entity that 

is engaged in the administration and delivery of health care or 

other services similar to the benefits administered by the Secretary; and 

(B) with respect to a private-sector participant, the participant receives training and experience at the Veterans Benefits 

Administration or the Veterans Health Administration. 

(2) The Secretary shall enter into such agreements with privatesector entities as are necessary to carry out this section. 


SSpencer on DSK4SPTVN1PROD with REPORTS
22 

(c) SELECTION OF RECIPIENTS.—(1) In August of each year, the 

Secretary shall select— 

(A) not fewer than 18 and not more than 30 eligible employees of the Veterans Benefits Administration and the Veterans 

Health Administration to receive a fellowship under this section; and 

(B) not fewer than 18 and not more than 30 eligible employees of private-sector entities to receive a fellowship under this 

section. 

(2) To the extent practicable, the Secretary shall select eligible employees under subparagraphs (A) and (B) of paragraph (1) from 

among eligible employees who are veterans in a manner that is reflective of the demographics of the veteran population of the United 

States. 

(d) ELIGIBLE EMPLOYEES.—For the purposes of this section, an eligible employee is— 

(1) with respect to an employee of the Veterans Benefits Administration or the Veterans Health Administration, an employee who— 

(A) is compensated at a rate of basic pay not less than 

the minimum rate of basic pay payable for grade GS–14 of 

the General Schedule and not more than either the minimum rate of basic pay payable to a member of the Senior 

Executive Service under section 5382 of title 5, United 

States Code, or the minimum rate of basic pay payable pursuant to chapter 74 of this title, as the case may be; 

(B) enters into an agreement with the Secretary under 

subsection (e); and 

(C) submits to the Secretary an application containing 

such information and assurances as the Secretary may require; and 

(2) with respect to an employee of a private-sector entity, an 

employee who— 

(A) is employed in a position whose duties and responsibilities are commensurate with an employee of the Department described in paragraph (1); 

(B) enters into an agreement with the Secretary under 

subsection (e); and 

(C) submits to the Secretary an application containing 

such information and assurances as the Secretary may require. 

(e) AGREEMENTS.—(1) An agreement between the Secretary and a 

Department participant shall be in writing, shall be signed by the 

participant, and shall include the following provisions: 

(A) The Secretary’s agreement to provide the participant with 

a fellowship under this section; 

(B) The participant’s agreement— 

(i) to accept the fellowship; 

(ii) after completion of the fellowship, to serve as a fulltime employee in the Veterans Benefits Administration or 

the Veterans Health Administration for at least two years 

as specified in the agreement; and 

(iii) that, during the two-year period beginning on the 

last day of the fellowship, the participant will not accept 

employment in the same industry as the industry of the priVerDate Sep 11 2014 03:12 Mar 11, 2017 Jkt 069006 PO 00000 Frm 00022 Fmt 6659 Sfmt 6603 E:\HR\OC\HR035P1.XXX HR035P1

SSpencer on DSK4SPTVN1PROD with REPORTS
23 

vate-sector entity at which the participant accepts the fellowship. 

(C) A provision that any financial obligation of the United 

States arising out of an agreement entered into under this subchapter, and any obligation of the participant which is conditioned on such agreement, is contingent upon funds being appropriated. 

(D) A statement of the damages to which the United States 

is entitled under this subchapter for the participant’s breach of 

the agreement. 

(E) Such other terms as the Secretary determines are required 

to be included in the agreement. 

(2) An agreement between the Secretary and a private-sector participant shall be in writing, shall be signed by the participant, and 

shall include the following provisions: 

(A) The Secretary’s agreement to provide the participant with 

a fellowship under this section. 

(B) The participant’s agreement to accept the fellowship. 

(C) Such other terms as the Secretary determines are required 

to be included in the agreement. 

(f) TREATMENT OF RECIPIENTS.—(1) A Department participant 

shall be considered an employee of the Department for all purposes, 

including for purposes of receiving a salary and benefits, and shall 

remain eligible for all promotion and incentive programs otherwise 

available to such an employee. 

(2) A private-sector participant shall be considered an employee of 

the private-sector entity that employs the participant for all purposes, including for purposes of receiving a salary and benefits, and 

during the fellowship shall be treated as a contractor of the Department. 

(g) REPORTS.—Not later than 60 days after completing a fellowship under this section, a recipient of the fellowship shall submit to 

the Secretary a report on the fellowship. Each such report shall describe the duties of the recipient during the fellowship and any recommendations of the recipient for the application by the Secretary 

of industry processes, technologies, and best practices. Not later 

than seven days after receiving each such report, the Secretary shall 

submit to the Committees on Veterans’ Affairs of the Senate and 

House of Representatives such report without change. 

(h) DEFINITIONS.—In this section: 

(1) The term ‘‘Department participant’’ means an employee of 

the Veterans Benefits Administration or the Veterans Health 

Administration who is participating in the fellowship under 

this section. 

(2) The term ‘‘private-sector entity’’ includes an entity operating under a public-private partnership. 

(3) The term ‘‘private-sector participant’’ means an employee 

of a private-sector entity who is participating in the fellowship 

under this section. 

* * * * * * * 


SSpencer on DSK4SPTVN1PROD with REPORTS
24 

PART V—BOARDS, ADMINISTRATIONS, AND 

SERVICES 

* * * * * * * 

CHAPTER 74—VETERANS HEALTH ADMINISTRATION - 

PERSONNEL 

SUBCHAPTER I—APPOINTMENTS 

* * * * * * * 

§ 7412. Annual determination of staffing shortages; recruitment and appointment for needed occupations 

(a) IN GENERAL.—Not later than September 30 of each year, the 

Inspector General of the Department shall determine, and the Secretary shall publish in the Federal Register, øthe five occupations¿ 

the five clinical occupations and the five nonclinical occupations of 

personnel of this title of the Department covered under section 

7401 of this title for which there are the largest staffing shortages 

øthroughout the Department¿ with respect to each medical center 

of the Department, as calculated over the five-year period preceding 

the determination. 

(b) RECRUITMENT AND APPOINTMENT.—Notwithstanding sections 

3304 and 3309 through 3318 of title 5, the Secretary may, upon a 

determination by the Inspector General under subsection (a) that 

there is a staffing shortage throughout the Department with respect to a particular occupation, recruit and directly appoint, during the fiscal year after the fiscal year during which such determination is made, qualified personnel to serve in that particular occupation for the Department. 

* * * * * * * 

TITLE 5, UNITED STATES CODE 

* * * * * * * 

PART III—EMPLOYEES 

* * * * * * * 

SUBPART A—GENERAL PROVISIONS 

* * * * * * * 

CHAPTER 21—DEFINITIONS 

* * * * * * * 

§ 2108. Veteran; disabled veteran; preference eligible 

For the purpose of this title— 

(1) ‘‘veteran’’ means an individual who— 

(A) served on active duty in the armed forces during a 

war, in a campaign or expedition for which a campaign 


SSpencer on DSK4SPTVN1PROD with REPORTS
25 

badge has been authorized, or during the period beginning 

April 28, 1952, and ending July 1, 1955; 

(B) served on active duty as defined by section 101(21) 

of title 38 at any time in the armed forces for a period of 

more than 180 øconsecutive¿ cumulative days any part of 

which occurred after January 31, 1955, and before October 

15, 1976, not including service under section 12103(d) of 

title 10 pursuant to an enlistment in the Army National 

Guard or the Air National Guard or as a Reserve for service in the Army Reserve, Navy Reserve, Air Force Reserve, 

Marine Corps Reserve, or Coast Guard Reserve; 

(C) served on active duty as defined by section 101(21) 

of title 38 in the armed forces during the period beginning 

on August 2, 1990, and ending on January 2, 1992; or 

(D) served on active duty as defined by section 101(21) 

of title 38 at any time in the armed forces for a period of 

more than 180 øconsecutive¿ cumulative days any part of 

which occurred during the period beginning on September 

11, 2001, and ending on the date prescribed by Presidential proclamation or by law as the last date of Operation Iraqi Freedom; 

and, except as provided under section 2108a, who has been discharged or released from active duty in the armed forces under 

honorable conditions; 

(2) ‘‘disabled veteran’’ means an individual who has served 

on active duty in the armed forces, (except as provided under 

section 2108a) has been separated therefrom under honorable 

conditions, and has established the present existence of a service-connected disability or is receiving compensation, disability 

retirement benefits, or pension because of a public statute administered by the Department of Veterans Affairs or a military 

department; 

(3) ‘‘preference eligible’’ means, except as provided in paragraph (4) of this section or section 2108a(c)— 

(A) a veteran as defined by paragraph (1)(A) of this section; 

(B) a veteran as defined by paragraph (1)(B), (C), or (D) 

of this section; 

(C) a disabled veteran; 

(D) the unmarried widow or widower of a veteran as defined by paragraph (1)(A) of this section; 

(E) the wife or husband of a service-connected disabled 

veteran if the veteran has been unable to qualify for any 

appointment in the civil service or in the government of 

the District of Columbia; 

(F) the parent of an individual who lost his or her life 

under honorable conditions while serving in the armed 

forces during a period named by paragraph (1)(A) of this 

section, if— 

(i) the spouse of that parent is totally and permanently disabled; or 

(ii) that parent, when preference is claimed, is unmarried or, if married, legally separated from his or 

her spouse; 


SSpencer on DSK4SPTVN1PROD with REPORTS
26 

(G) the parent of a service-connected permanently and 

totally disabled veteran, if— 

(i) the spouse of that parent is totally and permanently disabled; or 

(ii) that parent, when preference is claimed, is unmarried or, if married, legally separated from his or 

her spouse; and 

(H) a veteran who was discharged or released from a period of active duty by reason of a sole survivorship discharge (as that term is defined in section 1174(i) of title 

10); 

but does not include applicants for, or members of, the Senior 

Executive Service, the Defense Intelligence Senior Executive 

Service, the Senior Cryptologic Executive Service, or the Federal Bureau of Investigation and Drug Enforcement Administration Senior Executive Service; 

ø(4) except for the purposes of chapters 43 and 75 of this 

title, ‘‘preference eligible’’ does not include a retired member of 

the armed forces unless— 

ø(A) the individual is a disabled veteran; or 

ø(B) the individual retired below the rank of major or its 

equivalent; and¿ 

(4) ‘‘preference eligible’’ includes a retired member of the 

armed forces; and 

(5) ‘‘retired member of the armed forces’’ means a member or 

former member of the armed forces who is entitled, under statute, to retired, retirement, or retainer pay on account of service 

as a member. 

* * * * * * * 

Æ 


SSpencer on DSK4SPTVN1PROD with REPORTS