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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1094 Reported in Senate (RS)]

<DOC>

                                                       Calendar No. 103
115th CONGRESS
  1st Session
                                S. 1094

To amend title 38, United States Code, to improve the accountability of 
    employees of the Department of Veterans Affairs, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 11, 2017

   Mr. Rubio (for himself, Mr. Tester, Mr. Isakson, Mr. Nelson, Mr. 
 McCain, Mrs. Shaheen, Mr. Moran, Ms. Baldwin, Mr. Heller, Mr. Flake, 
  Mr. Boozman, Mr. Cotton, Mr. Inhofe, Mr. Kennedy, Mrs. Capito, Mr. 
Cochran, Mr. Sullivan, Mr. Cornyn, Mr. Cassidy, Mr. Perdue, Mr. Tillis, 
Mr. Wicker, Mr. Daines, and Mr. Rounds) introduced the following bill; 
which was read twice and referred to the Committee on Veterans' Affairs

                              May 24, 2017

               Reported by Mr. Isakson, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL

 
To amend title 38, United States Code, to improve the accountability of 
    employees of the Department of Veterans Affairs, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

<DELETED>    (a) Short Title.--This Act may be cited as the 
``Department of Veterans Affairs Accountability and Whistleblower 
Protection Act of 2017''.</DELETED>
<DELETED>    (b) Table of Contents.--The table of contents for this Act 
is as follows:</DELETED>

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>TITLE I--OFFICE OF ACCOUNTABILITY AND WHISTLEBLOWER PROTECTION

<DELETED>Sec. 101. Establishment of Office of Accountability and 
                            Whistleblower Protection.
<DELETED>Sec. 102. Protection of whistleblowers in Department of 
                            Veterans Affairs.
<DELETED>Sec. 103. Report on methods used to investigate employees of 
                            Department of Veterans Affairs.
 <DELETED>TITLE II--ACCOUNTABILITY OF SENIOR EXECUTIVES, SUPERVISORS, 
                          AND OTHER EMPLOYEES

<DELETED>Sec. 201. Improved authorities of Secretary of Veterans 
                            Affairs to improve accountability of senior 
                            executives.
<DELETED>Sec. 202. Improved authorities of Secretary of Veterans 
                            Affairs to improve accountability of 
                            employees.
<DELETED>Sec. 203. Reduction of benefits for Department of Veterans 
                            Affairs employees convicted of certain 
                            crimes.
<DELETED>Sec. 204. Authority to recoup bonuses or awards paid to 
                            employees of Department of Veterans 
                            Affairs.
<DELETED>Sec. 205. Authority to recoup relocation expenses paid to or 
                            on behalf of employees of Department of 
                            Veterans Affairs.
<DELETED>Sec. 206. Time period for response to notice of adverse 
                            actions against supervisory employees who 
                            commit prohibited personnel actions.
<DELETED>Sec. 207. Direct hiring authority for medical center directors 
                            and VISN directors.
<DELETED>Sec. 208. Time periods for review of adverse actions with 
                            respect to certain employees.
<DELETED>Sec. 209. Improvement of training for supervisors.
<DELETED>Sec. 210. Assessment and report on effect on senior executives 
                            at Department of Veterans Affairs.
<DELETED>Sec. 211. Measurement of Department of Veterans Affairs 
                            disciplinary process outcomes and 
                            effectiveness.

     <DELETED>TITLE I--OFFICE OF ACCOUNTABILITY AND WHISTLEBLOWER 
                          PROTECTION</DELETED>

<DELETED>SEC. 101. ESTABLISHMENT OF OFFICE OF ACCOUNTABILITY AND 
              WHISTLEBLOWER PROTECTION.</DELETED>

<DELETED>    (a) In General.--Chapter 3 of title 38, United States 
Code, is amended by adding at the end the following new 
section:</DELETED>
<DELETED>``Sec. 323. Office of Accountability and Whistleblower 
              Protection</DELETED>
<DELETED>    ``(a) Establishment.--There is established in the 
Department an office to be known as the `Office of Accountability and 
Whistleblower Protection' (in this section referred to as the 
`Office').</DELETED>
<DELETED>    ``(b) Head of Office.--(1) The head of the Office shall be 
responsible for the functions of the Office and shall be appointed by 
the President pursuant to section 308(a) of this title.</DELETED>
<DELETED>    ``(2) The head of the Office shall be known as the 
`Assistant Secretary for Accountability and Whistleblower 
Protection'.</DELETED>
<DELETED>    ``(3) The Assistant Secretary shall report directly to the 
Secretary on all matters relating to the Office.</DELETED>
<DELETED>    ``(4) Notwithstanding section 308(b) of this title, the 
Secretary may only assign to the Assistant Secretary responsibilities 
relating to the functions of the Office set forth in subsection 
(c).</DELETED>
<DELETED>    ``(c) Functions.--(1) The functions of the Office are as 
follows:</DELETED>
        <DELETED>    ``(A) Advising the Secretary on all matters of the 
        Department relating to accountability, including accountability 
        of employees of the Department, retaliation against 
        whistleblowers, and such matters as the Secretary considers 
        similar and affect public trust in the Department.</DELETED>
        <DELETED>    ``(B) Issuing reports and providing 
        recommendations related to the duties described in subparagraph 
        (A).</DELETED>
        <DELETED>    ``(C) Receiving whistleblower 
        disclosures.</DELETED>
        <DELETED>    ``(D) Referring whistleblower disclosures received 
        under subparagraph (C) for investigation to the Office of the 
        Medical Inspector, the Office of Inspector General, or other 
        investigative entity, as appropriate, if the Assistant 
        Secretary has reason to believe the whistleblower disclosure is 
        evidence of a violation of a provision of law, mismanagement, 
        gross waste of funds, abuse of authority, or a substantial and 
        specific danger to public health and safety.</DELETED>
        <DELETED>    ``(E) Receiving and referring disclosures from the 
        Special Counsel for investigation to the Medical Inspector of 
        the Department, the Inspector General of the Department, or 
        such other person with investigatory authority, as the 
        Assistant Secretary considers appropriate.</DELETED>
        <DELETED>    ``(F) Recording, tracking, reviewing, and 
        confirming implementation of recommendations from audits and 
        investigations carried out by the Inspector General of the 
        Department, the Medical Inspector of the Department, the 
        Special Counsel, and the Comptroller General of the United 
        States, including the imposition of disciplinary actions and 
        other corrective actions contained in such 
        recommendations.</DELETED>
        <DELETED>    ``(G) Analyzing data from the Office and the 
        Office of Inspector General telephone hotlines, other 
        whistleblower disclosures, disaggregated by facility and area 
        of health care if appropriate, and relevant audits and 
        investigations to identify trends and issue reports to the 
        Secretary based on analysis conducted under this 
        subparagraph.</DELETED>
        <DELETED>    ``(H) Receiving, reviewing, and investigating 
        allegations of misconduct, retaliation, or poor performance 
        involving--</DELETED>
                <DELETED>    ``(i) an individual in a senior executive 
                position (as defined in section 713(d) of this title) 
                in the Department;</DELETED>
                <DELETED>    ``(ii) an individual employed in a 
                confidential, policy-making, policy-determining, or 
                policy-advocating position in the Department; 
                or</DELETED>
                <DELETED>    ``(iii) a supervisory employee, if the 
                allegation involves retaliation against an employee for 
                making a whistleblower disclosure.</DELETED>
        <DELETED>    ``(I) Making such recommendations to the Secretary 
        for disciplinary action as the Assistant Secretary considers 
        appropriate after substantiating any allegation of misconduct 
        or poor performance pursuant to an investigation carried out as 
        described in subparagraph (F) or (H).</DELETED>
<DELETED>    ``(2) In carrying out the functions of the Office, the 
Assistant Secretary shall ensure that the Office maintains a toll-free 
telephone number and Internet website to receive anonymous 
whistleblower disclosures.</DELETED>
<DELETED>    ``(3) In any case in which the Assistant Secretary 
receives a whistleblower disclosure from an employee of the Department 
under paragraph (1)(C), the Assistant Secretary may not disclose the 
identity of the employee without the consent of the employee, except in 
accordance with the provisions of section 552a of title 5, or as 
required by any other applicable provision of Federal law.</DELETED>
<DELETED>    ``(d) Staff and Resources.--The Secretary shall ensure 
that the Assistant Secretary has such staff, resources, and access to 
information as may be necessary to carry out the functions of the 
Office.</DELETED>
<DELETED>    ``(e) Relation to Office of General Counsel.--The Office 
shall not be established as an element of the Office of the General 
Counsel and the Assistant Secretary may not report to the General 
Counsel.</DELETED>
<DELETED>    ``(f) Reports.--(1)(A) Not later than June 30 of each 
calendar year, beginning with June 30, 2017, the Assistant 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 on the activities of the Office during the calendar year in 
which the report is submitted.</DELETED>
<DELETED>    ``(B) Each report submitted under subparagraph (A) shall 
include, for the period covered by the report, the following:</DELETED>
        <DELETED>    ``(i) A full and substantive analysis of the 
        activities of the Office, including such statistical 
        information as the Assistant Secretary considers 
        appropriate.</DELETED>
        <DELETED>    ``(ii) Identification of any issues reported to 
        the Secretary under subsection (c)(1)(G), including such data 
        as the Assistant Secretary considers relevant to such issues 
        and any trends the Assistant Secretary may have identified with 
        respect to such issues.</DELETED>
        <DELETED>    ``(iii) Identification of such concerns as the 
        Assistant Secretary may have regarding the size, staffing, and 
        resources of the Office and such recommendations as the 
        Assistant Secretary may have for legislative or administrative 
        action to address such concerns.</DELETED>
        <DELETED>    ``(iv) Such recommendations as the Assistant 
        Secretary may have for legislative or administrative action to 
        improve--</DELETED>
                <DELETED>    ``(I) the process by which concerns are 
                reported to the Office; and</DELETED>
                <DELETED>    ``(II) the protection of whistleblowers 
                within the Department.</DELETED>
        <DELETED>    ``(v) Such other matters as the Assistant 
        Secretary considers appropriate regarding the functions of the 
        Office or other matters relating to the Office.</DELETED>
<DELETED>    ``(2) If the Secretary receives a recommendation for 
disciplinary action under subsection (c)(1)(I) and does not take or 
initiate the recommended disciplinary action before the date that is 60 
days after the date on which the Secretary received the recommendation, 
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 detailed justification for not taking or initiating 
such disciplinary action.</DELETED>
<DELETED>    ``(g) Definitions.--In this section:</DELETED>
        <DELETED>    ``(1) The term `supervisory employee' means an 
        employee of the Department who is a supervisor as defined in 
        section 7103(a) of title 5.</DELETED>
        <DELETED>    ``(2) The term `whistleblower' means one who makes 
        a whistleblower disclosure.</DELETED>
        <DELETED>    ``(3) The term `whistleblower disclosure' means 
        any disclosure of information by an employee of the Department 
        or individual applying to become an employee of the Department 
        which the employee or individual reasonably believes 
        evidences--</DELETED>
                <DELETED>    ``(A) a violation of a provision of law; 
                or</DELETED>
                <DELETED>    ``(B) gross mismanagement, a gross waste 
                of funds, an abuse of authority, or a substantial and 
                specific danger to public health or 
                safety.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--Section 308(b) of such title is 
amended by adding at the end the following new paragraph:</DELETED>
        <DELETED>    ``(12) The functions set forth in section 323(c) 
        of this title.''.</DELETED>
<DELETED>    (c) Clerical Amendment.--The table of sections at the 
beginning of chapter 3 of such title is amended by adding at the end 
the following new item:</DELETED>

<DELETED>``323. Office of Accountability and Whistleblower 
                            Protection.''.

<DELETED>SEC. 102. PROTECTION OF WHISTLEBLOWERS IN DEPARTMENT OF 
              VETERANS AFFAIRS.</DELETED>

<DELETED>    (a) In General.--Subchapter II of chapter 7 of title 38, 
United States Code, is amended by--</DELETED>
        <DELETED>    (1) striking sections 731, 732, 734, 735, and 
        736;</DELETED>
        <DELETED>    (2) by redesignating section 733 as section 731; 
        and</DELETED>
        <DELETED>    (3) by adding at the end the following new 
        sections:</DELETED>
<DELETED>``Sec. 732. Protection of whistleblowers as criteria in 
              evaluation of supervisors</DELETED>
<DELETED>    ``(a) Development and Use of Criteria Required.--The 
Secretary, in consultation with the Assistant Secretary of 
Accountability and Whistleblower Protection, shall develop criteria 
that--</DELETED>
        <DELETED>    ``(1) the Secretary shall use as a critical 
        element in any evaluation of the performance of a supervisory 
        employee; and</DELETED>
        <DELETED>    ``(2) promotes the protection of 
        whistleblowers.</DELETED>
<DELETED>    ``(b) Principles for Protection of Whistleblowers.--The 
criteria required by subsection (a) shall include principles for the 
protection of whistleblowers, such as the degree to which supervisory 
employees respond constructively when employees of the Department 
report concerns, take responsible action to resolve such concerns, and 
foster an environment in which employees of the Department feel 
comfortable reporting concerns to supervisory employees or to the 
appropriate authorities.</DELETED>
<DELETED>    ``(c) Supervisory Employee and Whistleblower Defined.--In 
this section, the terms `supervisory employee' and `whistleblower' have 
the meanings given such terms in section 323 of this title.</DELETED>
<DELETED>``Sec. 733. Training regarding whistleblower 
              disclosures</DELETED>
<DELETED>    ``(a) Training.--Not less frequently than once every two 
years, the Secretary, in coordination with the Whistleblower Protection 
Ombudsman designated under section 3(d)(1)(C) of the Inspector General 
Act of 1978 (5 U.S.C. App.), shall provide to each employee of the 
Department training regarding whistleblower disclosures, including--
</DELETED>
        <DELETED>    ``(1) an explanation of each method established by 
        law in which an employee may file a whistleblower 
        disclosure;</DELETED>
        <DELETED>    ``(2) the right of the employee to petition 
        Congress regarding a whistleblower disclosure in accordance 
        with section 7211 of title 5;</DELETED>
        <DELETED>    ``(3) an explanation that the employee may not be 
        prosecuted or reprised against for disclosing information to 
        Congress, the Inspector General, or another investigatory 
        agency in instances where such disclosure is permitted by law, 
        including under sections 5701, 5705, and 7732 of this title, 
        under section 552a of title 5 (commonly referred to as the 
        Privacy Act), under chapter 93 of title 18, and pursuant to 
        regulations promulgated under section 264(c) of the Health 
        Insurance Portability and Accountability Act of 1996 (Public 
        Law 104-191);</DELETED>
        <DELETED>    ``(4) an explanation of the language that is 
        required to be included in all nondisclosure policies, forms, 
        and agreements pursuant to section 115(a)(1) of the 
        Whistleblower Protection Enhancement Act of 2012 (5 U.S.C. 2302 
        note); and</DELETED>
        <DELETED>    ``(5) the right of contractors to be protected 
        from reprisal for the disclosure of certain information under 
        section 4705 or 4712 of title 41.</DELETED>
<DELETED>    ``(b) Manner Training Is Provided.--The Secretary shall 
ensure, to the maximum extent practicable, that training provided under 
subsection (a) is provided in person.</DELETED>
<DELETED>    ``(c) Certification.--Not less frequently than once every 
two years, the Secretary shall provide training on merit system 
protection in a manner that the Special Counsel certifies as being 
satisfactory.</DELETED>
<DELETED>    ``(d) Publication.--The Secretary shall publish on the 
Internet website of the Department, and display prominently at each 
facility of the Department, the rights of an employee to make a 
whistleblower disclosure, including the information described in 
paragraphs (1) through (5) of subsection (a).</DELETED>
<DELETED>    ``(e) Whistleblower Disclosure Defined.--In this section, 
the term `whistleblower disclosure' has the meaning given such term in 
section 323 of this title.''.</DELETED>
<DELETED>    (b) Clerical Amendments.--The table of sections at the 
beginning of such chapter is amended--</DELETED>
        <DELETED>    (1) by striking the items relating to sections 731 
        through 736; and</DELETED>
        <DELETED>    (2) by adding at the end the following new 
        items:</DELETED>

<DELETED>``731. Adverse actions against supervisory employees who 
                            commit prohibited personnel actions 
                            relating to whistleblower complaints.
<DELETED>``732. Protection of whistleblowers as criteria in evaluation 
                            of supervisors.
<DELETED>``733. Training regarding whistleblower disclosures.''.
<DELETED>    (c) Conforming Amendments.--Section 731 of such title, as 
redesignated by subsection (a)(2), is amended--</DELETED>
        <DELETED>    (1) in subsection (c)--</DELETED>
                <DELETED>    (A) in paragraph (1)--</DELETED>
                        <DELETED>    (i) by striking subparagraphs (A) 
                        and (B) and inserting the following:</DELETED>
                <DELETED>    ``(A) making a whistleblower disclosure to 
                the Assistant Secretary for Accountability and 
                Whistleblower Protection, the Inspector General of the 
                Department, the Special Counsel, or Congress;''; 
                and</DELETED>
                        <DELETED>    (ii) by redesignating 
                        subparagraphs (C) through (F) as subparagraphs 
                        (B) through (E), respectively; and</DELETED>
                        <DELETED>    (iii) in subparagraph (B), as 
                        redesignated by clause (ii), by striking 
                        ``complaint in accordance with section 732 or 
                        with'' and inserting ``disclosure made to the 
                        Assistant Secretary for Accountability and 
                        Whistleblower Protection,''; and</DELETED>
                <DELETED>    (B) in paragraph (2), by striking 
                ``through (F)'' and inserting ``through (E)''; 
                and</DELETED>
        <DELETED>    (2) by adding at the end the following new 
        subsection:</DELETED>
<DELETED>    ``(d) Whistleblower Disclosure Defined.--In this section, 
the term `whistleblower disclosure' has the meaning given such term in 
section 323(g) of this title.''.</DELETED>

<DELETED>SEC. 103. REPORT ON METHODS USED TO INVESTIGATE EMPLOYEES OF 
              DEPARTMENT OF VETERANS AFFAIRS.</DELETED>

<DELETED>    (a) Report Required.--Not later than 540 days after the 
date of the enactment of this Act, the Assistant Secretary for 
Accountability and Whistleblower Protection shall submit to the 
Secretary of Veterans Affairs, the Committee on Veterans' Affairs of 
the Senate, and the Committee on Veterans' Affairs of the House of 
Representatives a report on methods used to investigate employees of 
the Department of Veterans Affairs and whether such methods are used to 
retaliate against whistleblowers.</DELETED>
<DELETED>    (b) Contents.--The report required by subsection (a) shall 
include the following:</DELETED>
        <DELETED>    (1) An assessment of the use of administrative 
        investigation boards, peer review, searches of medical records, 
        and other methods for investigating employees of the 
        Department.</DELETED>
        <DELETED>    (2) A determination of whether and to what degree 
        the methods described in paragraph (1) are being used to 
        retaliate against whistleblowers.</DELETED>
        <DELETED>    (3) Recommendations for legislative or 
        administrative action to implement safeguards to prevent the 
        retaliation described in paragraph (2).</DELETED>
<DELETED>    (c) Whistleblower Defined.--In this section, the term 
``whistleblower'' has the meaning given such term in section 323 of 
title 38, United States Code, as added by section 101.</DELETED>

 <DELETED>TITLE II--ACCOUNTABILITY OF SENIOR EXECUTIVES, SUPERVISORS, 
                     AND OTHER EMPLOYEES</DELETED>

<DELETED>SEC. 201. IMPROVED AUTHORITIES OF SECRETARY OF VETERANS 
              AFFAIRS TO IMPROVE ACCOUNTABILITY OF SENIOR 
              EXECUTIVES.</DELETED>

<DELETED>    (a) In General.--Section 713 of title 38, United States 
Code, is amended to read as follows:</DELETED>
<DELETED>``Sec. 713. Senior executives: removal, demotion, or 
              suspension based on performance or misconduct</DELETED>
<DELETED>    ``(a) Authority.--(1) The Secretary may, as provided in 
this section, reprimand or suspend, involuntarily reassign, demote, or 
remove a covered individual from a senior executive position at the 
Department if the Secretary determines that the misconduct or 
performance of the covered individual warrants such action.</DELETED>
<DELETED>    ``(2) If the Secretary so removes such an individual, the 
Secretary may remove the individual from the civil service (as defined 
in section 2101 of title 5).</DELETED>
<DELETED>    ``(b) Rights and Procedures.--(1) A covered individual who 
is the subject of an action under subsection (a) is entitled to--
</DELETED>
        <DELETED>    ``(A) advance notice of the action;</DELETED>
        <DELETED>    ``(B) be represented by an attorney or other 
        representative of the covered individual's choice; 
        and</DELETED>
        <DELETED>    ``(C) grieve the action in accordance with an 
        internal grievance process that the Secretary, in consultation 
        with the Assistant Secretary for Accountability and 
        Whistleblower Protection, shall establish for purposes of this 
        subsection.</DELETED>
<DELETED>    ``(2)(A) The aggregate period for notice, response, and 
decision on an action under subsection (a) may not exceed 15 business 
days.</DELETED>
<DELETED>    ``(B) The period for the response of a covered individual 
to a notice under paragraph (1)(A) of an action under subsection (a) 
shall be 7 business days.</DELETED>
<DELETED>    ``(C) A decision under this paragraph on an action under 
subsection (a) shall be issued not later than 15 business days after 
notice of the action is provided to the covered individual under 
paragraph (1)(A). The decision shall be in writing, and shall include 
the specific reasons therefor and a file containing all evidence in 
support of the proposed action.</DELETED>
<DELETED>    ``(3)(A) The Secretary shall ensure that the grievance 
process established under paragraph (1)(C) takes fewer than 21 
days.</DELETED>
<DELETED>    ``(B) The Secretary shall ensure that grievances under 
this subsection are reviewed only by employees of the 
Department.</DELETED>
<DELETED>    ``(4) A decision under paragraph (2) that is not grieved, 
and a grievance decision under paragraph (3), shall be final and 
conclusive.</DELETED>
<DELETED>    ``(5) A covered individual adversely affected by a 
decision under paragraph (2) that is not grieved, or by a grievance 
decision under paragraph (3), may obtain judicial review of such 
decision.</DELETED>
<DELETED>    ``(6) In any case in which judicial review is sought under 
paragraph (5), the court shall review the record and may set aside any 
Department action found to be--</DELETED>
        <DELETED>    ``(A) arbitrary, capricious, an abuse of 
        discretion, or otherwise not in accordance with a provision of 
        law;</DELETED>
        <DELETED>    ``(B) obtained without procedures required by a 
        provision of law having been followed; or</DELETED>
        <DELETED>    ``(C) unsupported by substantial 
        evidence.</DELETED>
<DELETED>    ``(c) Relation to Other Provisions of Law.--Section 
3592(b)(1) of title 5 and the procedures under section 7543(b) of such 
title do not apply to an action under subsection (a).</DELETED>
<DELETED>    ``(d) Definitions.--In this section:</DELETED>
        <DELETED>    ``(1) The term `covered individual' means--
        </DELETED>
                <DELETED>    ``(A) a career appointee (as that term is 
                defined in section 3132(a)(4) of title 5); or</DELETED>
                <DELETED>    ``(B) any individual who occupies an 
                administrative or executive position and who was 
                appointed under section 7306(a) or section 7401(1) of 
                this title.</DELETED>
        <DELETED>    ``(2) The term `misconduct' includes neglect of 
        duty, malfeasance, or failure to accept a directed reassignment 
        or to accompany a position in a transfer of function.</DELETED>
        <DELETED>    ``(3) The term `senior executive position' means--
        </DELETED>
                <DELETED>    ``(A) with respect to a career appointee 
                (as that term is defined in section 3132(a) of title 
                5), a Senior Executive Service position (as such term 
                is defined in such section); and</DELETED>
                <DELETED>    ``(B) with respect to a covered individual 
                appointed under section 7306(a) or section 7401(1) of 
                this title, an administrative or executive 
                position.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--Section 7461(c)(1) of such 
title is amended by inserting ``employees in senior executive positions 
(as defined in section 713(d) of this title) and'' before 
``interns''.</DELETED>
<DELETED>    (c) Clerical Amendment.--The table of sections at the 
beginning of chapter 7 of such title is amended by striking the item 
relating to section 713 and inserting the following new item:</DELETED>

<DELETED>``713. Senior executives: removal, demotion, or suspension 
                            based on performance or misconduct.''.

<DELETED>SEC. 202. IMPROVED AUTHORITIES OF SECRETARY OF VETERANS 
              AFFAIRS TO IMPROVE ACCOUNTABILITY OF EMPLOYEES.</DELETED>

<DELETED>    (a) In General.--Subchapter I of chapter 7 of title 38, 
United States Code, is amended by inserting after section 713 the 
following new section:</DELETED>
<DELETED>``Sec. 714. Employees: removal, demotion, or suspension based 
              on performance or misconduct</DELETED>
<DELETED>    ``(a) In General.--(1) The Secretary may remove, demote, 
or suspend a covered individual who is an employee of the Department if 
the Secretary determines the performance or misconduct of the covered 
individual warrants such removal, demotion, or suspension.</DELETED>
<DELETED>    ``(2) If the Secretary so removes, demotes, or suspends 
such a covered individual, the Secretary may--</DELETED>
        <DELETED>    ``(A) remove the covered individual from the civil 
        service (as defined in section 2101 of title 5);</DELETED>
        <DELETED>    ``(B) demote the covered individual by means of a 
        reduction in grade for which the covered individual is 
        qualified, that the Secretary determines is appropriate, and 
        that reduces the annual rate of pay of the covered individual; 
        or</DELETED>
        <DELETED>    ``(C) suspend the covered individual.</DELETED>
<DELETED>    ``(b) Pay of Certain Demoted Individuals.--(1) 
Notwithstanding any other provision of law, any covered individual 
subject to a demotion under subsection (a)(2) shall, beginning on the 
date of such demotion, receive the annual rate of pay applicable to 
such grade.</DELETED>
<DELETED>    ``(2)(A) A covered individual so demoted may not be placed 
on administrative leave during the period during which an appeal (if 
any) under this section is ongoing, and may only receive pay if the 
covered individual reports for duty or is approved to use accrued 
unused annual, sick, family medical, military, or court 
leave.</DELETED>
<DELETED>    ``(B) If a covered individual so demoted does not report 
for duty or receive approval to use accrued unused leave, such covered 
individual shall not receive pay or other benefits pursuant to 
subsection (d)(5).</DELETED>
<DELETED>    ``(c) Procedure.--(1)(A) The aggregate period for notice, 
response, and final decision in a removal, demotion, or suspension 
under this section may not exceed 15 business days.</DELETED>
<DELETED>    ``(B) The period for the response of a covered individual 
to a notice of a proposed removal, demotion, or suspension under this 
section shall be 7 business days.</DELETED>
<DELETED>    ``(C) Paragraph (3) of subsection (b) of section 7513 of 
title 5 shall apply with respect to a removal, demotion, or suspension 
under this section.</DELETED>
<DELETED>    ``(D) The procedures in this subsection shall supersede 
any collective bargaining agreement to the extent that such agreement 
is inconsistent with such procedures.</DELETED>
<DELETED>    ``(2) The Secretary shall issue a final decision with 
respect to a removal, demotion, or suspension under this section not 
later than 15 business days after the Secretary provides notice, 
including a file containing all the evidence in support of the proposed 
action, to the covered individual of the removal, demotion, or 
suspension. The decision shall be in writing and shall include the 
specific reasons therefor.</DELETED>
<DELETED>    ``(3) The procedures under chapter 43 of title 5 shall not 
apply to a removal, demotion, or suspension under this 
section.</DELETED>
<DELETED>    ``(4)(A) Subject to subparagraph (B) and subsection (d), 
any removal or demotion under this section, and any suspension of more 
than 14 days under this section, may be appealed to the Merit Systems 
Protection Board, which shall refer such appeal to an administrative 
judge pursuant to section 7701(b)(1) of title 5.</DELETED>
<DELETED>    ``(B) An appeal under subparagraph (A) of a removal, 
demotion, or suspension may only be made if such appeal is made not 
later than 10 business days after the date of such removal, demotion, 
or suspension.</DELETED>
<DELETED>    ``(d) Expedited Review.--(1) Upon receipt of an appeal 
under subsection (c)(4)(A), the administrative judge shall expedite any 
such appeal under section 7701(b)(1) of title 5 and, in any such case, 
shall issue a final and complete decision not later than 180 days after 
the date of the appeal.</DELETED>
<DELETED>    ``(2)(A) Notwithstanding section 7701(c)(1)(B) of title 5, 
the administrative judge shall uphold the decision of the Secretary to 
remove, demote, or suspend an employee under subsection (a) if the 
decision is supported by substantial evidence.</DELETED>
<DELETED>    ``(B) If the decision of the Secretary is supported by 
substantial evidence, the administrative judge shall not mitigate the 
penalty prescribed by the Secretary.</DELETED>
<DELETED>    ``(3) The decision of the administrative judge under 
paragraph (1) may be appealed to the Merit Systems Protection 
Board.</DELETED>
<DELETED>    ``(4) In any case in which the administrative judge cannot 
issue a decision in accordance with the 180-day requirement under 
paragraph (1), the Merit Systems Protection Board shall, not later than 
14 business days after the expiration of the 180-day period, submit to 
the Committee on Veterans' Affairs of the Senate and the Committee on 
Veterans' Affairs of the House of Representatives a report that 
explains the reasons why a decision was not issued in accordance with 
such requirement.</DELETED>
<DELETED>    ``(5)(A) A decision of the Merit Systems Protection Board 
under paragraph (3) may be appealed to the United States Court of 
Appeals for the Federal Circuit pursuant to section 7703 of title 
5.</DELETED>
<DELETED>    ``(B) Any decision by such Court shall be in compliance 
with section 7462(f)(2) of this title.</DELETED>
<DELETED>    ``(6) The Merit Systems Protection Board may not stay any 
removal or demotion under this section, except as provided in section 
1214(b) of title 5.</DELETED>
<DELETED>    ``(7) During the period beginning on the date on which a 
covered individual appeals a removal from the civil service under 
subsection (c) and ending on the date that the United States Court of 
Appeals for the Federal Circuit issues a final decision on such appeal, 
such covered individual may not receive any pay, awards, bonuses, 
incentives, allowances, differentials, student loan repayments, special 
payments, or benefits related to the employment of the individual by 
the Department.</DELETED>
<DELETED>    ``(8) To the maximum extent practicable, the Secretary 
shall provide to the Merit Systems Protection Board such information 
and assistance as may be necessary to ensure an appeal under this 
subsection is expedited.</DELETED>
<DELETED>    ``(9) If an employee prevails on appeal under this 
section, the employee shall be entitled to backpay (as provided in 
section 5596 of title 5).</DELETED>
<DELETED>    ``(10) If an employee who is subject to a collective 
bargaining agreement chooses to grieve an action taken under this 
section through a grievance procedure provided under the collective 
bargaining agreement, the timelines and procedures set forth in 
subsection (c) and this subsection shall apply.</DELETED>
<DELETED>    ``(e) Whistleblower Protection.--(1) In the case of a 
covered individual seeking corrective action (or on behalf of whom 
corrective action is sought) from the Office of Special Counsel based 
on an alleged prohibited personnel practice described in section 
2302(b) of title 5, the Secretary may not remove, demote, or suspend 
such covered individual under subsection (a) without the approval of 
the Special Counsel under section 1214(f) of title 5.</DELETED>
<DELETED>    ``(2) In the case of a covered individual who has made a 
whistleblower disclosure to the Assistant Secretary for Accountability 
and Whistleblower Protection, the Secretary may not remove, demote, or 
suspend such covered individual under subsection (a) until--</DELETED>
        <DELETED>    ``(A) in the case in which the Assistant Secretary 
        determines to refer the whistleblower disclosure under section 
        323(c)(1)(D) of this title to an office or other investigative 
        entity, a final decision with respect to the whistleblower 
        disclosure has been made by such office or other investigative 
        entity; or</DELETED>
        <DELETED>    ``(B) in the case in which the Assistant Secretary 
        determines not to the refer the whistleblower disclosure under 
        such section, the Assistant Secretary makes such 
        determination.</DELETED>
<DELETED>    ``(f) Termination of Investigations by Office of Special 
Counsel.--(1) Notwithstanding any other provision of law, the Special 
Counsel (established by section 1211 of title 5) may terminate an 
investigation of a prohibited personnel practice alleged by an employee 
or former employee of the Department after the Special Counsel provides 
to the employee or former employee a written statement of the reasons 
for the termination of the investigation.</DELETED>
<DELETED>    ``(2) Such statement may not be admissible as evidence in 
any judicial or administrative proceeding without the consent of such 
employee or former employee.</DELETED>
<DELETED>    ``(g) Vacancies.--In the case of a covered individual who 
is removed or demoted under subsection (a), to the maximum extent 
feasible, the Secretary shall fill the vacancy arising as a result of 
such removal or demotion.</DELETED>
<DELETED>    ``(h) Definitions.--In this section:</DELETED>
        <DELETED>    ``(1) The term `covered individual' means an 
        individual occupying a position at the Department, but does not 
        include--</DELETED>
                <DELETED>    ``(A) an individual occupying a senior 
                executive position (as defined in section 713(d) of 
                this title);</DELETED>
                <DELETED>    ``(B) an individual appointed pursuant to 
                sections 7306, 7401(1), or 7405 of this 
                title;</DELETED>
                <DELETED>    ``(C) an individual who has not completed 
                a probationary or trial period; or</DELETED>
                <DELETED>    ``(D) a political appointee.</DELETED>
        <DELETED>    ``(2) The term `suspend' means the placing of an 
        employee, for disciplinary reasons, in a temporary status 
        without duties and pay for a period in excess of 14 
        days.</DELETED>
        <DELETED>    ``(3) The term `grade' has the meaning given such 
        term in section 7511(a) of title 5.</DELETED>
        <DELETED>    ``(4) The term `misconduct' includes neglect of 
        duty, malfeasance, or failure to accept a directed reassignment 
        or to accompany a position in a transfer of function.</DELETED>
        <DELETED>    ``(5) The term `political appointee' means an 
        individual who is--</DELETED>
                <DELETED>    ``(A) employed in a position described 
                under sections 5312 through 5316 of title 5 (relating 
                to the Executive Schedule);</DELETED>
                <DELETED>    ``(B) a limited term appointee, limited 
                emergency appointee, or noncareer appointee in the 
                Senior Executive Service, as defined under paragraphs 
                (5), (6), and (7), respectively, of section 3132(a) of 
                title 5; or</DELETED>
                <DELETED>    ``(C) employed in a position of a 
                confidential or policy-determining character under 
                schedule C of subpart C of part 213 of title 5, Code of 
                Federal Regulations, or successor regulation.</DELETED>
        <DELETED>    ``(6) The term `whistleblower disclosure' has the 
        meaning given such term in section 323(g) of this 
        title.''.</DELETED>
<DELETED>    (b) Clerical and Conforming Amendments.--</DELETED>
        <DELETED>    (1) Clerical.--The table of sections at the 
        beginning of chapter 7 of such title is amended by inserting 
        after the item relating to section 713 the following new 
        item:</DELETED>

<DELETED>``714. Employees: removal, demotion, or suspension based on 
                            performance or misconduct.''.
        <DELETED>    (2) Conforming.--Section 4303(f) of title 5, 
        United States Code, is amended--</DELETED>
                <DELETED>    (A) in paragraph (2), by striking ``or'' 
                at the end;</DELETED>
                <DELETED>    (B) in paragraph (3), by striking the 
                period at the end and inserting ``, or''; and</DELETED>
                <DELETED>    (C) by adding at the end the 
                following:</DELETED>
        <DELETED>    ``(4) any removal or demotion under section 714 of 
        title 38.''.</DELETED>

<DELETED>SEC. 203. REDUCTION OF BENEFITS FOR DEPARTMENT OF VETERANS 
              AFFAIRS EMPLOYEES CONVICTED OF CERTAIN CRIMES.</DELETED>

<DELETED>    (a) Reduction of Benefits.--</DELETED>
        <DELETED>    (1) In general.--Subchapter I of chapter 7 of 
        title 38, United States Code, is amended by adding at the end 
        the following new section:</DELETED>
<DELETED>``Sec. 719. Reduction of benefits of employees convicted of 
              certain crimes</DELETED>
<DELETED>    ``(a) Reduction of Annuity for Removed Employee.--(1) The 
Secretary shall order that the covered service of an employee of the 
Department removed from a position for performance or misconduct under 
section 719 or 7461 of this title or any other provision of law 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--</DELETED>
        <DELETED>    ``(A) the Secretary determines that the individual 
        is convicted of a felony (and the conviction is final) that 
        influenced the individual's performance while employed in the 
        position; and</DELETED>
        <DELETED>    ``(B) before such order is made, the individual is 
        afforded--</DELETED>
                <DELETED>    ``(i) notice of the proposed order; 
                and</DELETED>
                <DELETED>    ``(ii) an opportunity to respond to the 
                proposed order by not later than ten business days 
                following receipt of such notice; and</DELETED>
        <DELETED>    ``(C) the Secretary issues the order--</DELETED>
                <DELETED>    ``(i) in the case of a proposed order to 
                which an individual responds under subparagraph 
                (B)(ii), not later than five business days after 
                receiving the response of the individual; or</DELETED>
                <DELETED>    ``(ii) in the case of a proposed order to 
                which an individual does not respond, not later than 15 
                business days after the Secretary provides notice to 
                the individual under subparagraph (B)(i).</DELETED>
<DELETED>    ``(2) Any individual with respect to whom an annuity is 
reduced under this subsection may appeal the reduction to the Director 
of the Office of Personnel Management pursuant to such regulations as 
the Director may prescribe for purposes of this subsection.</DELETED>
<DELETED>    ``(b) Reduction of Annuity for Retired Employee.--(1) The 
Secretary may order that the covered service of an individual who is 
removed for performance or misconduct under section 719 or 7461 of this 
title or any other provision of law but who leaves employment at the 
Department prior to the issuance of a final decision with respect to 
such action 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--</DELETED>
        <DELETED>    ``(A) the Secretary determines that individual is 
        convicted of a felony (and the conviction is final) that 
        influenced the individual's performance while employed in the 
        position; and</DELETED>
        <DELETED>    ``(B) before such order is made, the individual is 
        afforded--</DELETED>
                <DELETED>    ``(i) notice of the proposed 
                order;</DELETED>
                <DELETED>    ``(ii) opportunity to respond to the 
                proposed order by not later than ten business days 
                following receipt of such notice; and</DELETED>
        <DELETED>    ``(C) the Secretary issues the order--</DELETED>
                <DELETED>    ``(i) in the case of a proposed order to 
                which an individual responds under subparagraph 
                (B)(ii), not later than five business days after 
                receiving the response of the individual; or</DELETED>
                <DELETED>    ``(ii) in the case of a proposed order to 
                which an individual does not respond, not later than 15 
                business days after the Secretary provides notice to 
                the individual under subparagraph (B)(i).</DELETED>
<DELETED>    ``(2) Upon the issuance of an order by the Secretary under 
paragraph (1), the individual shall have an opportunity to appeal the 
order to the Director of the Office of Personnel Management before the 
date that is seven business days after the date of such 
issuance.</DELETED>
<DELETED>    ``(3) The Director of the Office of Personnel Management 
shall make a final decision with respect to an appeal under paragraph 
(2) within 30 business days of receiving the appeal.</DELETED>
<DELETED>    ``(c) Administrative Requirements.--Not later than 37 
business days after the Secretary issues a final order under subsection 
(a) or (b) with respect to an individual, the Director of the Office of 
Personnel Management shall recalculate the annuity of the 
individual.</DELETED>
<DELETED>    ``(d) 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.</DELETED>
<DELETED>    ``(e) Spouse or Children Exception.--(1) The Secretary, in 
consultation with the Director of the Office of Personnel Management, 
shall prescribe regulations that may provide for the payment to the 
spouse or children of any individual referred to in subsection (a) or 
(b) of any amounts which (but for this subsection) would otherwise have 
been nonpayable by reason of such subsections.</DELETED>
<DELETED>    ``(2) Regulations prescribed under paragraph (1) shall be 
consistent with the requirements of section 8332(o)(5) and 8411(l)(5) 
of title 5, as the case may be.</DELETED>
<DELETED>    ``(f) Definitions.--In this section:</DELETED>
        <DELETED>    ``(1) The term `covered service' means, with 
        respect to an individual subject to a removal for performance 
        or misconduct under section 719 or 7461 of this title or any 
        other provision of law, the period of service beginning on the 
        date that the Secretary determines under such applicable 
        provision that the individual engaged in activity that gave 
        rise to such action and ending on the date that the individual 
        is removed from or leaves a position of employment at the 
        Department prior to the issuance of a final decision with 
        respect to such action.</DELETED>
        <DELETED>    ``(2) The term `lump-sum credit' has the meaning 
        given such term in section 8331(8) or section 8401(19) of title 
        5, as the case may be.</DELETED>
        <DELETED>    ``(3) The term `service' has the meaning given 
        such term in section 8331(12) or section 8401(26) of title 5, 
        as the case may be.''.</DELETED>
        <DELETED>    (2) Clerical amendment.--The table of sections at 
        the beginning of chapter 7 of such title is amended by 
        inserting after the item relating to section 717 the following 
        new item:</DELETED>

<DELETED>``719. Reduction of benefits of employees convicted of certain 
                            crimes.''.
<DELETED>    (b) Application.--Section 719 of title 38, United States 
Code, as added by subsection (a)(1), shall apply to any action of 
removal of an employee of the Department of Veterans Affairs under 
section 719 or 7461 of such title or any other provision of law, 
commencing on or after the date of the enactment of this Act.</DELETED>

<DELETED>SEC. 204. AUTHORITY TO RECOUP BONUSES OR AWARDS PAID TO 
              EMPLOYEES OF DEPARTMENT OF VETERANS AFFAIRS.</DELETED>

<DELETED>    (a) In General.--Subchapter I of chapter 7 of title 38, 
United States Code, as amended by section 203, is further amended by 
adding at the end the following new section:</DELETED>
<DELETED>``Sec. 721. Recoupment of bonuses or awards paid to employees 
              of Department</DELETED>
<DELETED>    ``(a) In General.--Notwithstanding any other provision of 
law, the Secretary may issue an order directing an employee of the 
Department to repay the amount, or a portion of the amount, of any 
award or bonus paid to the employee under title 5, including under 
chapters 45 or 53 of such title, or this title if--</DELETED>
        <DELETED>    ``(1) the Secretary determines that the individual 
        engaged in misconduct or poor performance prior to payment of 
        the award or bonus, and that such award or bonus would not have 
        been paid, in whole or in part, had the misconduct or poor 
        performance been known prior to payment; and</DELETED>
        <DELETED>    ``(2) before such repayment, the employee is 
        afforded--</DELETED>
                <DELETED>    ``(A) notice of the proposed order; 
                and</DELETED>
                <DELETED>    ``(B) an opportunity to respond to the 
                proposed order by not later than 10 business days after 
                the receipt of such notice; and</DELETED>
        <DELETED>    ``(3) the Secretary issues the order--</DELETED>
                <DELETED>    ``(A) in the case of a proposed order to 
                which an individual responds under paragraph (2)(B), 
                not later than five business days after receiving the 
                response of the individual; or</DELETED>
                <DELETED>    ``(B) in the case of a proposed order to 
                which an individual does not respond, not later than 15 
                business days after the Secretary provides notice to 
                the individual under paragraph (2)(A).</DELETED>
<DELETED>    ``(b) Appeal of Order of Secretary.--(1) Upon the issuance 
of an order by the Secretary under subsection (a) with respect to an 
individual, the individual shall have an opportunity to appeal the 
order to the Director of the Office of Personnel Management before the 
date that is seven business days after the date of such 
issuance.</DELETED>
<DELETED>    ``(2) The Director shall make a final decision with 
respect to an appeal under paragraph (1) within 30 business days after 
receiving such appeal.</DELETED>
<DELETED>    ``(c) Appeal of Final Decision on Appeal of Order.--An 
individual may appeal a final decision on an appeal under subsection 
(b) to the Merit Systems Protection Board under section 7701 of title 
5.''.</DELETED>
<DELETED>    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter, as amended by section 203(a)(2), is further 
amended by inserting after the item relating to section 719 the 
following new item:</DELETED>

<DELETED>``721. Recoupment of bonuses or awards paid to employees of 
                            Department.''.
<DELETED>    (c) Effective Date.--Section 721 of title 38, United 
States Code, as added by subsection (a), shall apply with respect to an 
award or bonus paid by the Secretary of Veterans Affairs to an employee 
of the Department of Veterans Affairs on or after the date of the 
enactment of this Act.</DELETED>
<DELETED>    (d) Construction.--Nothing in this Act or the amendments 
made by this Act may be construed to modify the certification issued by 
the Office of Personnel Management and the Office of Management and 
Budget regarding the performance appraisal system of the Senior 
Executive Service of the Department of Veterans Affairs.</DELETED>

<DELETED>SEC. 205. AUTHORITY TO RECOUP RELOCATION EXPENSES PAID TO OR 
              ON BEHALF OF EMPLOYEES OF DEPARTMENT OF VETERANS 
              AFFAIRS.</DELETED>

<DELETED>    (a) In General.--Subchapter I of chapter 7 of title 38, 
United States Code, as amended by section 204, is further amended by 
adding at the end the following new section:</DELETED>
<DELETED>``Sec. 723. Recoupment of relocation expenses paid on behalf 
              of employees of Department</DELETED>
<DELETED>    ``(a) In General.--Notwithstanding any other provision of 
law, the Secretary may issue an order directing an employee of the 
Department to repay the amount, or a portion of the amount, paid to or 
on behalf of the employee under title 5 for relocation expenses, 
including any expenses under section 5724 or 5724a of such title, or 
this title if--</DELETED>
        <DELETED>    ``(1) the Secretary determines that relocation 
        expenses were paid following an act of fraud or malfeasance 
        that influenced the authorization of the relocation 
        expenses;</DELETED>
        <DELETED>    ``(2) before such repayment, the employee is 
        afforded--</DELETED>
                <DELETED>    ``(A) notice of the proposed order; 
                and</DELETED>
                <DELETED>    ``(B) an opportunity to respond to the 
                proposed order not later than ten business days 
                following the receipt of such notice; and</DELETED>
        <DELETED>    ``(3) the Secretary issues the order--</DELETED>
                <DELETED>    ``(A) in the case of a proposed order to 
                which an individual responds under paragraph (2)(B), 
                not later than five business days after receiving the 
                response of the individual; or</DELETED>
                <DELETED>    ``(B) in the case of a proposed order to 
                which an individual does not respond, not later than 15 
                business days after the Secretary provides notice to 
                the individual under paragraph (2)(A).</DELETED>
<DELETED>    ``(b) Appeal of Order of Secretary.--(1) Upon the issuance 
of an order by the Secretary under subsection (a) with respect to an 
individual, the individual shall have an opportunity to appeal the 
order to the Director of the Office of Personnel Management before the 
date that is seven business days after the date of such 
issuance.</DELETED>
<DELETED>    ``(2) The Director shall make a final decision with 
respect to an appeal under paragraph (1) within 30 days after receiving 
such appeal.</DELETED>
<DELETED>    ``(c) Appeal of Final Decision on Appeal of Order.--An 
individual may appeal a final decision on an appeal under subsection 
(b) to the Merit Systems Protection Board under section 7701 of title 
5.''.</DELETED>
<DELETED>    (b) Clerical Amendment.--The table of sections at the 
beginning of such chapter is further amended by inserting after the 
item relating to section 721, as added by section 204(b), the following 
new item:</DELETED>

<DELETED>``723. Recoupment of relocation expenses paid on behalf of 
                            employees of Department.''.
<DELETED>    (c) Effective Date.--Section 723 of title 38, United 
States Code, as added by subsection (a), shall apply with respect to an 
amount paid by the Secretary of Veterans Affairs to or on behalf of an 
employee of the Department of Veterans Affairs for relocation expenses 
on or after the date of the enactment of this Act.</DELETED>

<DELETED>SEC. 206. TIME PERIOD FOR RESPONSE TO NOTICE OF ADVERSE 
              ACTIONS AGAINST SUPERVISORY EMPLOYEES WHO COMMIT 
              PROHIBITED PERSONNEL ACTIONS.</DELETED>

<DELETED>    Section 731(a)(2)(B) of title 38, United States Code, as 
redesignated by section 102(a)(2), is amended--</DELETED>
        <DELETED>    (1) in clause (i), by striking ``14 days'' and 
        inserting ``10 days''; and</DELETED>
        <DELETED>    (2) in clause (ii), by striking ``14-day period'' 
        and inserting ``10-day period''.</DELETED>

<DELETED>SEC. 207. DIRECT HIRING AUTHORITY FOR MEDICAL CENTER DIRECTORS 
              AND VISN DIRECTORS.</DELETED>

<DELETED>    (a) In General.--Section 7401 of title 38, United States 
Code, is amended by adding at the end the following new 
paragraph:</DELETED>
        <DELETED>    ``(4) Directors of medical centers and directors 
        of Veterans Integrated Service Networks with demonstrated 
        ability in the medical profession, in health care 
        administration, or in health care fiscal 
        management.''.</DELETED>
<DELETED>    (b) Conforming Amendment.--Section 7404(a)(1) of such 
title is amended by inserting ``and 7401(4)'' after ``7306''.</DELETED>

<DELETED>SEC. 208. TIME PERIODS FOR REVIEW OF ADVERSE ACTIONS WITH 
              RESPECT TO CERTAIN EMPLOYEES.</DELETED>

<DELETED>    (a) Physicians, Dentists, Podiatrists, Chiropractors, 
Optometrists, Registered Nurses, Physician Assistants, and Expanded-
function Dental Auxiliaries.--Paragraph (2) of section 7461(b) of title 
38, United States Code, is amended to read as follows:</DELETED>
<DELETED>    ``(2) In any case other than a case described in paragraph 
(1) that involves or includes a question of professional conduct or 
competence in which a major adverse action was not taken, such an 
appeal shall be made through Department grievance procedures under 
section 7463 of this title.''.</DELETED>
<DELETED>    (b) Major Adverse Actions Involving Professional Conduct 
or Competence.--Section 7462(b) of such title is amended--</DELETED>
        <DELETED>    (1) in paragraph (1)--</DELETED>
                <DELETED>    (A) in the matter preceding subparagraph 
                (A), by inserting ``, within the aggregate time period 
                specified in paragraph (5)(A),'' after ``is 
                entitled'';</DELETED>
                <DELETED>    (B) in subparagraph (A)--</DELETED>
                        <DELETED>    (i) by striking ``At least 30 days 
                        advance written notice'' and inserting 
                        ``Advance written notice'';</DELETED>
                        <DELETED>    (ii) by striking ``and a 
                        statement'' and inserting ``a statement''; 
                        and</DELETED>
                        <DELETED>    (iii) by inserting ``and a file 
                        containing all the evidence in support of each 
                        charge,'' after ``with respect to each 
                        charge,''; and</DELETED>
                <DELETED>    (C) in subparagraph (B), by striking ``A 
                reasonable time, but not less than seven days'' and 
                inserting ``The opportunity, within the time period 
                provided for in paragraph (4)(A)'';</DELETED>
        <DELETED>    (2) by striking paragraph (3) and inserting the 
        following new paragraph (3):</DELETED>
<DELETED>    ``(3) After considering the employee's answer, if any, and 
within the time period provided for in paragraph (5)(B), the deciding 
official shall render a decision on the charges. The decision shall be 
in writing and shall include the specific reasons 
therefor.'';</DELETED>
        <DELETED>    (3) in paragraph (4)--</DELETED>
                <DELETED>    (A) by striking subparagraph (A) and 
                inserting the following new subparagraph (A):</DELETED>
<DELETED>    ``(A) The period for the response of an employee under 
paragraph (1)(B) to advance written under paragraph (1)(A) shall be 
seven business days.''; and</DELETED>
                <DELETED>    (B) in subparagraph (B), by striking ``30 
                days'' and inserting ``seven business days''; 
                and</DELETED>
        <DELETED>    (4) by adding at the end the following new 
        paragraphs:</DELETED>
<DELETED>    ``(5)(A) The aggregate period for the resolution of 
charges against an employee under this subsection may not exceed 15 
business days.</DELETED>
<DELETED>    ``(B) The deciding official shall render a decision under 
paragraph (3) on charges under this subsection not later than 15 
business days after the Under Secretary provides notice on the charges 
for purposes of paragraph (1)(A).</DELETED>
<DELETED>    ``(6) The procedures in this subsection shall supersede 
any collective bargaining agreement to the extent that such agreement 
is inconsistent with such procedures.''.</DELETED>
<DELETED>    (c) Other Adverse Actions.--Section 7463(c) of such title 
is amended--</DELETED>
        <DELETED>    (1) in paragraph (1), by striking ``the same 
        notice and opportunity to answer with respect to those charges 
        as provided in subparagraphs (A) and (B) of section 7462(b)(1) 
        of this title'' and inserting ``notice and an opportunity to 
        answer with respect to those charges in accordance with 
        subparagraphs (A) and (B) of section 7462(b)(1) of this title, 
        but within the time periods specified in paragraph 
        (3)'';</DELETED>
        <DELETED>    (2) in paragraph (2)--</DELETED>
                <DELETED>    (A) in the matter preceding subparagraph 
                (A), by inserting ``, within the aggregate time period 
                specified in paragraph (3)(A),'' after ``is 
                entitled'';</DELETED>
                <DELETED>    (B) in subparagraph (A), by striking ``an 
                advance written notice'' and inserting ``written 
                notice''; and</DELETED>
                <DELETED>    (C) in subparagraph (B), by striking ``a 
                reasonable time'' and inserting ``time to answer''; 
                and</DELETED>
        <DELETED>    (3) by adding at the end the following new 
        paragraph (3):</DELETED>
<DELETED>    ``(3)(A) The aggregate period for the resolution of 
charges against an employee under paragraph (1) or (2) may not exceed 
15 business days.</DELETED>
<DELETED>    ``(B) The period for the response of an employee under 
paragraph (1) or (2)(B) to written notice of charges under paragraph 
(1) or (2)(A), as applicable, shall be seven business days.</DELETED>
<DELETED>    ``(C) The deciding official shall render a decision on 
charges under paragraph (1) or (2) not later than 15 business days 
after notice is provided on the charges for purposes of paragraph (1) 
or (2)(A), as applicable.''.</DELETED>

<DELETED>SEC. 209. IMPROVEMENT OF TRAINING FOR SUPERVISORS.</DELETED>

<DELETED>    (a) In General.--The Secretary of Veterans Affairs shall 
provide to each employee of the Department of Veterans Affairs who is 
employed as a supervisor periodic training on the following:</DELETED>
        <DELETED>    (1) The rights of whistleblowers and how to 
        address a report by an employee of a hostile work environment, 
        reprisal, or harassment.</DELETED>
        <DELETED>    (2) How to effectively motivate, manage, and 
        reward the employees who report to the supervisor.</DELETED>
        <DELETED>    (3) How to effectively manage employees who are 
        performing at an unacceptable level and access assistance from 
        the human resources office of the Department and the Office of 
        the General Counsel of the Department with respect to those 
        employees.</DELETED>
<DELETED>    (b) Definitions.--In this section:</DELETED>
        <DELETED>    (1) Supervisor.--The term ``supervisor'' has the 
        meaning given such term in section 7103(a) of title 5, United 
        States Code.</DELETED>
        <DELETED>    (2) Whistleblower.--The term ``whistleblower'' has 
        the meaning given such term in section 323(g) of title 38, 
        United States Code, as added by section 101.</DELETED>

<DELETED>SEC. 210. ASSESSMENT AND REPORT ON EFFECT ON SENIOR EXECUTIVES 
              AT DEPARTMENT OF VETERANS AFFAIRS.</DELETED>

<DELETED>    (a) In General.--Not later than two years after the date 
of the enactment of this Act, the Secretary of Veterans Affairs shall--
</DELETED>
        <DELETED>    (1) measure and assess the effect of the enactment 
        of this title on the morale, engagement, hiring, promotion, 
        retention, discipline, and productivity of individuals in 
        senior executive positions at the Department of Veterans 
        Affairs; and</DELETED>
        <DELETED>    (2) submit to the Committee on Veterans' Affairs 
        of the Senate and the Committee on Veterans' Affairs of the 
        House of Representatives a report on the findings of the 
        Secretary with respect to the measurement and assessment 
        carried out under paragraph (1).</DELETED>
<DELETED>    (b) Elements.--The assessment required by subsection 
(a)(1) shall include the following:</DELETED>
        <DELETED>    (1) With respect to engagement, trends in morale 
        of individuals in senior executive positions and individuals 
        aspiring to senior executive positions.</DELETED>
        <DELETED>    (2) With respect to promotions--</DELETED>
                <DELETED>    (A) whether the Department is experiencing 
                an increase or decrease in the number of employees 
                participating in leadership development and candidate 
                development programs with the intention of becoming 
                candidates for senior executive positions; 
                and</DELETED>
                <DELETED>    (B) trends in applications to senior 
                executive positions within the Department.</DELETED>
        <DELETED>    (3) With respect to retention--</DELETED>
                <DELETED>    (A) trends in retirement rates of 
                individuals in senior executive positions at the 
                Department;</DELETED>
                <DELETED>    (B) trends in quit rates of individuals in 
                senior executive positions at the Department;</DELETED>
                <DELETED>    (C) rates of transfer of--</DELETED>
                        <DELETED>    (i) individuals from other Federal 
                        agencies into senior executive positions at the 
                        Department; and</DELETED>
                        <DELETED>    (ii) individuals from senior 
                        executive positions at the Department to other 
                        Federal agencies; and</DELETED>
                <DELETED>    (D) trends in total loss rates by job 
                function.</DELETED>
        <DELETED>    (4) With respect to disciplinary processes--
        </DELETED>
                <DELETED>    (A) regarding individuals in senior 
                executive positions at the Department who are the 
                subject of disciplinary action--</DELETED>
                        <DELETED>    (i) the length of the disciplinary 
                        process in days for such individuals both 
                        before the date of the enactment of this Act 
                        and under the provisions of this Act described 
                        in subsection (a)(1); and</DELETED>
                        <DELETED>    (ii) the extent to which appeals 
                        by such individuals are upheld under such 
                        provisions as compared to before the date of 
                        the enactment of this Act;</DELETED>
                <DELETED>    (B) the components or offices of the 
                Department which experience the greatest number of 
                proposed adverse actions against individuals in senior 
                executive positions and components and offices which 
                experience the least relative to the size of the 
                components or offices' total number of senior executive 
                positions;</DELETED>
                <DELETED>    (C) the tenure of individuals in senior 
                executive positions who are the subject of disciplinary 
                action;</DELETED>
                <DELETED>    (D) whether the individuals in senior 
                executive positions who are the subject of disciplinary 
                action have previously been disciplined; and</DELETED>
                <DELETED>    (E) the number of instances of 
                disciplinary action taken by the Secretary against 
                individuals in senior executive positions at the 
                Department as compared to governmentwide discipline 
                against individuals in Senior Executive Service 
                positions (as defined in section 3132(a) of title 5, 
                United States Code) as a percentage of the total number 
                of individuals in senior executive positions at the 
                Department and Senior Executive Service positions (as 
                so defined).</DELETED>
        <DELETED>    (5) With respect to hiring--</DELETED>
                <DELETED>    (A) the degree to which the skills of 
                newly hired individuals in senior executive positions 
                at the Department are appropriate with respect to the 
                needs of the Department;</DELETED>
                <DELETED>    (B) the types of senior executive 
                positions at the Department most commonly filled under 
                the authorities in the provisions described in 
                subsection (a)(1);</DELETED>
                <DELETED>    (C) the number of senior executive 
                positions at the Department filled by hires outside of 
                the Department compared to hires from within the 
                Department;</DELETED>
                <DELETED>    (D) the length of time to fill a senior 
                executive position at the Department and for a new hire 
                to begin working in a new senior executive 
                position;</DELETED>
                <DELETED>    (E) the mission-critical deficiencies 
                filled by newly hired individuals in senior executive 
                positions and the connection between mission-critical 
                deficiencies filled under the provisions described in 
                subsection (a) and annual performance of the 
                Department;</DELETED>
                <DELETED>    (F) the satisfaction of applicants for 
                senior executive positions at the Department with the 
                hiring process, including the clarity of job 
                announcements, reasons for withdrawal of applications, 
                communication regarding status of applications, and 
                timeliness of hiring decision; and</DELETED>
                <DELETED>    (G) the satisfaction of newly hired 
                individuals in senior executive positions at the 
                Department with the hiring process and the process of 
                joining and becoming oriented with the 
                Department.</DELETED>
<DELETED>    (c) Senior Executive Position Defined.--In this section, 
the term ``senior executive position'' has the meaning given such term 
in section 713 of title 38, United States Code.</DELETED>

<DELETED>SEC. 211. MEASUREMENT OF DEPARTMENT OF VETERANS AFFAIRS 
              DISCIPLINARY PROCESS OUTCOMES AND 
              EFFECTIVENESS.</DELETED>

<DELETED>    (a) Measuring and Collecting.--</DELETED>
        <DELETED>    (1) In general.--The Secretary of Veterans Affairs 
        shall measure and collect information on the outcomes of 
        disciplinary actions carried out by the Department of Veterans 
        Affairs during the three-year period ending on the date of the 
        enactment of this Act and the effectiveness of such 
        actions.</DELETED>
        <DELETED>    (2) Elements.--In measuring and collecting 
        pursuant to paragraph (1), the Secretary shall measure and 
        collect information regarding the following:</DELETED>
                <DELETED>    (A) The average time from the initiation 
                of an adverse action against an employee at the 
                Department to the final resolution of that 
                action.</DELETED>
                <DELETED>    (B) The number of distinct steps and 
                levels of review within the Department involved in the 
                disciplinary process and the average length of time 
                required to complete these steps.</DELETED>
                <DELETED>    (C) The rate of use of alternate 
                disciplinary procedures compared to traditional 
                disciplinary procedures and the frequency with which 
                employees who are subject to alternative disciplinary 
                procedures commit additional offenses.</DELETED>
                <DELETED>    (D) The number of appeals from adverse 
                actions filed against employees of the Department, the 
                number of appeals upheld, and the reasons for which the 
                appeals were upheld.</DELETED>
                <DELETED>    (E) The use of paid administrative leave 
                during the disciplinary process and the length of such 
                leave.</DELETED>
<DELETED>    (b) Report.--</DELETED>
        <DELETED>    (1) In general.--Not later than December 31, 2017, 
        the Secretary shall submit to the appropriate committees of 
        Congress a report on the disciplinary procedures and actions of 
        the Department.</DELETED>
        <DELETED>    (2) Contents.--The report submitted under 
        paragraph (1) shall include the following:</DELETED>
                <DELETED>    (A) The information collected under 
                subsection (a).</DELETED>
                <DELETED>    (B) The findings of the Secretary with 
                respect to the measurement and collection carried out 
                under subsection (a).</DELETED>
                <DELETED>    (C) An analysis of the disciplinary 
                procedures and actions of the Department.</DELETED>
                <DELETED>    (D) Suggestions for improving the 
                disciplinary procedures and actions of the 
                Department.</DELETED>
                <DELETED>    (E) Such other matters as the Secretary 
                considers appropriate.</DELETED>
        <DELETED>    (3) Appropriate committees of congress.--In this 
        subsection, the term ``appropriate committees of Congress'' 
        means--</DELETED>
                <DELETED>    (A) the Committee on Appropriations and 
                the Committee on Veterans' Affairs of the Senate; 
                and</DELETED>
                <DELETED>    (B) the Committee on Appropriations and 
                the Committee on Veterans' Affairs of the House of 
                Representatives.</DELETED>

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Department of 
Veterans Affairs Accountability and Whistleblower Protection Act of 
2017''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

     TITLE I--OFFICE OF ACCOUNTABILITY AND WHISTLEBLOWER PROTECTION

Sec. 101. Establishment of Office of Accountability and Whistleblower 
                            Protection.
Sec. 102. Protection of whistleblowers in Department of Veterans 
                            Affairs.
Sec. 103. Report on methods used to investigate employees of Department 
                            of Veterans Affairs.

 TITLE II--ACCOUNTABILITY OF SENIOR EXECUTIVES, SUPERVISORS, AND OTHER 
                               EMPLOYEES

Sec. 201. Improved authorities of Secretary of Veterans Affairs to 
                            improve accountability of senior 
                            executives.
Sec. 202. Improved authorities of Secretary of Veterans Affairs to 
                            improve accountability of employees.
Sec. 203. Reduction of benefits for Department of Veterans Affairs 
                            employees convicted of certain crimes.
Sec. 204. Authority to recoup bonuses or awards paid to employees of 
                            Department of Veterans Affairs.
Sec. 205. Authority to recoup relocation expenses paid to or on behalf 
                            of employees of Department of Veterans 
                            Affairs.
Sec. 206. Time period for response to notice of adverse actions against 
                            supervisory employees who commit prohibited 
                            personnel actions.
Sec. 207. Direct hiring authority for medical center directors and VISN 
                            directors.
Sec. 208. Time periods for review of adverse actions with respect to 
                            certain employees.
Sec. 209. Improvement of training for supervisors.
Sec. 210. Assessment and report on effect on senior executives at 
                            Department of Veterans Affairs.
Sec. 211. Measurement of Department of Veterans Affairs disciplinary 
                            process outcomes and effectiveness.

     TITLE I--OFFICE OF ACCOUNTABILITY AND WHISTLEBLOWER PROTECTION

SEC. 101. ESTABLISHMENT OF OFFICE OF ACCOUNTABILITY AND WHISTLEBLOWER 
              PROTECTION.

    (a) In General.--Chapter 3 of title 38, United States Code, is 
amended by adding at the end the following new section:
``Sec. 323. Office of Accountability and Whistleblower Protection
    ``(a) Establishment.--There is established in the Department an 
office to be known as the `Office of Accountability and Whistleblower 
Protection' (in this section referred to as the `Office').
    ``(b) Head of Office.--(1) The head of the Office shall be 
responsible for the functions of the Office and shall be appointed by 
the President pursuant to section 308(a) of this title.
    ``(2) The head of the Office shall be known as the `Assistant 
Secretary for Accountability and Whistleblower Protection'.
    ``(3) The Assistant Secretary shall report directly to the 
Secretary on all matters relating to the Office.
    ``(4) Notwithstanding section 308(b) of this title, the Secretary 
may only assign to the Assistant Secretary responsibilities relating to 
the functions of the Office set forth in subsection (c).
    ``(c) Functions.--(1) The functions of the Office are as follows:
            ``(A) Advising the Secretary on all matters of the 
        Department relating to accountability, including accountability 
        of employees of the Department, retaliation against 
        whistleblowers, and such matters as the Secretary considers 
        similar and affect public trust in the Department.
            ``(B) Issuing reports and providing recommendations related 
        to the duties described in subparagraph (A).
            ``(C) Receiving whistleblower disclosures.
            ``(D) Referring whistleblower disclosures received under 
        subparagraph (C) for investigation to the Office of the Medical 
        Inspector, the Office of Inspector General, or other 
        investigative entity, as appropriate, if the Assistant 
        Secretary has reason to believe the whistleblower disclosure is 
        evidence of a violation of a provision of law, mismanagement, 
        gross waste of funds, abuse of authority, or a substantial and 
        specific danger to public health or safety.
            ``(E) Receiving and referring disclosures from the Special 
        Counsel for investigation to the Medical Inspector of the 
        Department, the Inspector General of the Department, or such 
        other person with investigatory authority, as the Assistant 
        Secretary considers appropriate.
            ``(F) Recording, tracking, reviewing, and confirming 
        implementation of recommendations from audits and 
        investigations carried out by the Inspector General of the 
        Department, the Medical Inspector of the Department, the 
        Special Counsel, and the Comptroller General of the United 
        States, including the imposition of disciplinary actions and 
        other corrective actions contained in such recommendations.
            ``(G) Analyzing data from the Office and the Office of 
        Inspector General telephone hotlines, other whistleblower 
        disclosures, disaggregated by facility and area of health care 
        if appropriate, and relevant audits and investigations to 
        identify trends and issue reports to the Secretary based on 
        analysis conducted under this subparagraph.
            ``(H) Receiving, reviewing, and investigating allegations 
        of misconduct, retaliation, or poor performance involving--
                    ``(i) an individual in a senior executive position 
                (as defined in section 713(d) of this title) in the 
                Department;
                    ``(ii) an individual employed in a confidential, 
                policy-making, policy-determining, or policy-advocating 
                position in the Department; or
                    ``(iii) a supervisory employee, if the allegation 
                involves retaliation against an employee for making a 
                whistleblower disclosure.
            ``(I) Making such recommendations to the Secretary for 
        disciplinary action as the Assistant Secretary considers 
        appropriate after substantiating any allegation of misconduct 
        or poor performance pursuant to an investigation carried out as 
        described in subparagraph (F) or (H).
    ``(2) In carrying out the functions of the Office, the Assistant 
Secretary shall ensure that the Office maintains a toll-free telephone 
number and Internet website to receive anonymous whistleblower 
disclosures.
    ``(3) In any case in which the Assistant Secretary receives a 
whistleblower disclosure from an employee of the Department under 
paragraph (1)(C), the Assistant Secretary may not disclose the identity 
of the employee without the consent of the employee, except in 
accordance with the provisions of section 552a of title 5, or as 
required by any other applicable provision of Federal law.
    ``(d) Staff and Resources.--The Secretary shall ensure that the 
Assistant Secretary has such staff, resources, and access to 
information as may be necessary to carry out the functions of the 
Office.
    ``(e) Relation to Office of General Counsel.--The Office shall not 
be established as an element of the Office of the General Counsel and 
the Assistant Secretary may not report to the General Counsel.
    ``(f) Reports.--(1)(A) Not later than June 30 of each calendar 
year, beginning with June 30, 2017, the Assistant 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 
on the activities of the Office during the calendar year in which the 
report is submitted.
    ``(B) Each report submitted under subparagraph (A) shall include, 
for the period covered by the report, the following:
            ``(i) A full and substantive analysis of the activities of 
        the Office, including such statistical information as the 
        Assistant Secretary considers appropriate.
            ``(ii) Identification of any issues reported to the 
        Secretary under subsection (c)(1)(G), including such data as 
        the Assistant Secretary considers relevant to such issues and 
        any trends the Assistant Secretary may have identified with 
        respect to such issues.
            ``(iii) Identification of such concerns as the Assistant 
        Secretary may have regarding the size, staffing, and resources 
        of the Office and such recommendations as the Assistant 
        Secretary may have for legislative or administrative action to 
        address such concerns.
            ``(iv) Such recommendations as the Assistant Secretary may 
        have for legislative or administrative action to improve--
                    ``(I) the process by which concerns are reported to 
                the Office; and
                    ``(II) the protection of whistleblowers within the 
                Department.
            ``(v) Such other matters as the Assistant Secretary 
        considers appropriate regarding the functions of the Office or 
        other matters relating to the Office.
    ``(2) If the Secretary receives a recommendation for disciplinary 
action under subsection (c)(1)(I) and does not take or initiate the 
recommended disciplinary action before the date that is 60 days after 
the date on which the Secretary received the recommendation, 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 detailed justification for not taking or initiating 
such disciplinary action.
    ``(g) Definitions.--In this section:
            ``(1) The term `supervisory employee' means an employee of 
        the Department who is a supervisor as defined in section 
        7103(a) of title 5.
            ``(2) The term `whistleblower' means one who makes a 
        whistleblower disclosure.
            ``(3) The term `whistleblower disclosure' means any 
        disclosure of information by an employee of the Department or 
        individual applying to become an employee of the Department 
        which the employee or individual reasonably believes 
        evidences--
                    ``(A) a violation of a law, rule, or regulation; or
                    ``(B) gross mismanagement, a gross waste of funds, 
                an abuse of authority, or a substantial and specific 
                danger to public health or safety.''.
    (b) Conforming Amendment.--Section 308(b) of such title is amended 
by adding at the end the following new paragraph:
            ``(12) The functions set forth in section 323(c) of this 
        title.''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 3 of such title is amended by adding at the end the following 
new item:

``323. Office of Accountability and Whistleblower Protection.''.

SEC. 102. PROTECTION OF WHISTLEBLOWERS IN DEPARTMENT OF VETERANS 
              AFFAIRS.

    (a) In General.--Subchapter II of chapter 7 of title 38, United 
States Code, is amended by--
            (1) striking sections 731, 732, 734, 735, and 736;
            (2) by redesignating section 733 as section 731; and
            (3) by adding at the end the following new sections:
``Sec. 732. Protection of whistleblowers as criteria in evaluation of 
              supervisors
    ``(a) Development and Use of Criteria Required.--The Secretary, in 
consultation with the Assistant Secretary of Accountability and 
Whistleblower Protection, shall develop criteria that--
            ``(1) the Secretary shall use as a critical element in any 
        evaluation of the performance of a supervisory employee; and
            ``(2) promotes the protection of whistleblowers.
    ``(b) Principles for Protection of Whistleblowers.--The criteria 
required by subsection (a) shall include principles for the protection 
of whistleblowers, such as the degree to which supervisory employees 
respond constructively when employees of the Department report 
concerns, take responsible action to resolve such concerns, and foster 
an environment in which employees of the Department feel comfortable 
reporting concerns to supervisory employees or to the appropriate 
authorities.
    ``(c) Supervisory Employee and Whistleblower Defined.--In this 
section, the terms `supervisory employee' and `whistleblower' have the 
meanings given such terms in section 323 of this title.
``Sec. 733. Training regarding whistleblower disclosures
    ``(a) Training.--Not less frequently than once every two years, the 
Secretary, in coordination with the Whistleblower Protection Ombudsman 
designated under section 3(d)(1)(C) of the Inspector General Act of 
1978 (5 U.S.C. App.), shall provide to each employee of the Department 
training regarding whistleblower disclosures, including--
            ``(1) an explanation of each method established by law in 
        which an employee may file a whistleblower disclosure;
            ``(2) the right of the employee to petition Congress 
        regarding a whistleblower disclosure in accordance with section 
        7211 of title 5;
            ``(3) an explanation that the employee may not be 
        prosecuted or reprised against for disclosing information to 
        Congress, the Inspector General, or another investigatory 
        agency in instances where such disclosure is permitted by law, 
        including under sections 5701, 5705, and 7732 of this title, 
        under section 552a of title 5 (commonly referred to as the 
        Privacy Act), under chapter 93 of title 18, and pursuant to 
        regulations promulgated under section 264(c) of the Health 
        Insurance Portability and Accountability Act of 1996 (Public 
        Law 104-191);
            ``(4) an explanation of the language that is required to be 
        included in all nondisclosure policies, forms, and agreements 
        pursuant to section 115(a)(1) of the Whistleblower Protection 
        Enhancement Act of 2012 (5 U.S.C. 2302 note); and
            ``(5) the right of contractors to be protected from 
        reprisal for the disclosure of certain information under 
        section 4705 or 4712 of title 41.
    ``(b) Manner Training Is Provided.--The Secretary shall ensure, to 
the maximum extent practicable, that training provided under subsection 
(a) is provided in person.
    ``(c) Certification.--Not less frequently than once every two 
years, the Secretary shall provide training on merit system protection 
in a manner that the Special Counsel certifies as being satisfactory.
    ``(d) Publication.--The Secretary shall publish on the Internet 
website of the Department, and display prominently at each facility of 
the Department, the rights of an employee to make a whistleblower 
disclosure, including the information described in paragraphs (1) 
through (5) of subsection (a).
    ``(e) Whistleblower Disclosure Defined.--In this section, the term 
`whistleblower disclosure' has the meaning given such term in section 
323 of this title.''.
    (b) Clerical Amendments.--The table of sections at the beginning of 
such chapter is amended--
            (1) by striking the items relating to sections 731 through 
        736; and
            (2) by adding at the end the following new items:

``731. Adverse actions against supervisory employees who commit 
                            prohibited personnel actions relating to 
                            whistleblower complaints.
``732. Protection of whistleblowers as criteria in evaluation of 
                            supervisors.
``733. Training regarding whistleblower disclosures.''.
    (c) Conforming Amendments.--Section 731 of such title, as 
redesignated by subsection (a)(2), is amended--
            (1) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) by striking subparagraphs (A) and (B) 
                        and inserting the following:
                    ``(A) making a whistleblower disclosure to the 
                Assistant Secretary for Accountability and 
                Whistleblower Protection, the Inspector General of the 
                Department, the Special Counsel, or Congress;''; and
                            (ii) by redesignating subparagraphs (C) 
                        through (F) as subparagraphs (B) through (E), 
                        respectively; and
                            (iii) in subparagraph (B), as redesignated 
                        by clause (ii), by striking ``complaint in 
                        accordance with section 732 or with'' and 
                        inserting ``disclosure made to the Assistant 
                        Secretary for Accountability and Whistleblower 
                        Protection,''; and
                    (B) in paragraph (2), by striking ``through (F)'' 
                and inserting ``through (E)''; and
            (2) by adding at the end the following new subsection:
    ``(d) Whistleblower Disclosure Defined.--In this section, the term 
`whistleblower disclosure' has the meaning given such term in section 
323(g) of this title.''.

SEC. 103. REPORT ON METHODS USED TO INVESTIGATE EMPLOYEES OF DEPARTMENT 
              OF VETERANS AFFAIRS.

    (a) Report Required.--Not later than 540 days after the date of the 
enactment of this Act, the Assistant Secretary for Accountability and 
Whistleblower Protection shall submit to the Secretary of Veterans 
Affairs, the Committee on Veterans' Affairs of the Senate, and the 
Committee on Veterans' Affairs of the House of Representatives a report 
on methods used to investigate employees of the Department of Veterans 
Affairs and whether such methods are used to retaliate against 
whistleblowers.
    (b) Contents.--The report required by subsection (a) shall include 
the following:
            (1) An assessment of the use of administrative 
        investigation boards, peer review, searches of medical records, 
        and other methods for investigating employees of the 
        Department.
            (2) A determination of whether and to what degree the 
        methods described in paragraph (1) are being used to retaliate 
        against whistleblowers.
            (3) Recommendations for legislative or administrative 
        action to implement safeguards to prevent the retaliation 
        described in paragraph (2).
    (c) Whistleblower Defined.--In this section, the term 
``whistleblower'' has the meaning given such term in section 323 of 
title 38, United States Code, as added by section 101.

 TITLE II--ACCOUNTABILITY OF SENIOR EXECUTIVES, SUPERVISORS, AND OTHER 
                               EMPLOYEES

SEC. 201. IMPROVED AUTHORITIES OF SECRETARY OF VETERANS AFFAIRS TO 
              IMPROVE ACCOUNTABILITY OF SENIOR EXECUTIVES.

    (a) In General.--Section 713 of title 38, United States Code, is 
amended to read as follows:
``Sec. 713. Senior executives: removal, demotion, or suspension based 
              on performance or misconduct
    ``(a) Authority.--(1) The Secretary may, as provided in this 
section, reprimand or suspend, involuntarily reassign, demote, or 
remove a covered individual from a senior executive position at the 
Department if the Secretary determines that the misconduct or 
performance of the covered individual warrants such action.
    ``(2) If the Secretary so removes such an individual, the Secretary 
may remove the individual from the civil service (as defined in section 
2101 of title 5).
    ``(b) Rights and Procedures.--(1) A covered individual who is the 
subject of an action under subsection (a) is entitled to--
            ``(A) advance notice of the action and a file containing 
        all evidence in support of the proposed action;
            ``(B) be represented by an attorney or other representative 
        of the covered individual's choice; and
            ``(C) grieve the action in accordance with an internal 
        grievance process that the Secretary, in consultation with the 
        Assistant Secretary for Accountability and Whistleblower 
        Protection, shall establish for purposes of this subsection.
    ``(2)(A) The aggregate period for notice, response, and decision on 
an action under subsection (a) may not exceed 15 business days.
    ``(B) The period for the response of a covered individual to a 
notice under paragraph (1)(A) of an action under subsection (a) shall 
be 7 business days.
    ``(C) A decision under this paragraph on an action under subsection 
(a) shall be issued not later than 15 business days after notice of the 
action is provided to the covered individual under paragraph (1)(A). 
The decision shall be in writing, and shall include the specific 
reasons therefor.
    ``(3) The Secretary shall ensure that the grievance process 
established under paragraph (1)(C) takes fewer than 21 days.
    ``(4) A decision under paragraph (2) that is not grieved, and a 
grievance decision under paragraph (3), shall be final and conclusive.
    ``(5) A covered individual adversely affected by a decision under 
paragraph (2) that is not grieved, or by a grievance decision under 
paragraph (3), may obtain judicial review of such decision.
    ``(6) In any case in which judicial review is sought under 
paragraph (5), the court shall review the record and may set aside any 
Department action found to be--
            ``(A) arbitrary, capricious, an abuse of discretion, or 
        otherwise not in accordance with a provision of law;
            ``(B) obtained without procedures required by a provision 
        of law having been followed; or
            ``(C) unsupported by substantial evidence.
    ``(c) Relation to Other Provisions of Law.--Section 3592(b)(1) of 
title 5 and the procedures under section 7543(b) of such title do not 
apply to an action under subsection (a).
    ``(d) Definitions.--In this section:
            ``(1) The term `covered individual' means--
                    ``(A) a career appointee (as that term is defined 
                in section 3132(a)(4) of title 5); or
                    ``(B) any individual who occupies an administrative 
                or executive position and who was appointed under 
                section 7306(a), section 7401(1), or section 7401(4) of 
                this title.
            ``(2) The term `misconduct' includes neglect of duty, 
        malfeasance, or failure to accept a directed reassignment or to 
        accompany a position in a transfer of function.
            ``(3) The term `senior executive position' means--
                    ``(A) with respect to a career appointee (as that 
                term is defined in section 3132(a) of title 5), a 
                Senior Executive Service position (as such term is 
                defined in such section); and
                    ``(B) with respect to a covered individual 
                appointed under section 7306(a) or section 7401(1) of 
                this title, an administrative or executive position.''.
    (b) Conforming Amendment.--Section 7461(c)(1) of such title is 
amended by inserting ``employees in senior executive positions (as 
defined in section 713(d) of this title) and'' before ``interns''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
chapter 7 of such title is amended by striking the item relating to 
section 713 and inserting the following new item:

``713. Senior executives: removal, demotion, or suspension based on 
                            performance or misconduct.''.

SEC. 202. IMPROVED AUTHORITIES OF SECRETARY OF VETERANS AFFAIRS TO 
              IMPROVE ACCOUNTABILITY OF EMPLOYEES.

    (a) In General.--Subchapter I of chapter 7 of title 38, United 
States Code, is amended by inserting after section 713 the following 
new section:
``Sec. 714. Employees: removal, demotion, or suspension based on 
              performance or misconduct
    ``(a) In General.--(1) The Secretary may remove, demote, or suspend 
a covered individual who is an employee of the Department if the 
Secretary determines the performance or misconduct of the covered 
individual warrants such removal, demotion, or suspension.
    ``(2) If the Secretary so removes, demotes, or suspends such a 
covered individual, the Secretary may--
            ``(A) remove the covered individual from the civil service 
        (as defined in section 2101 of title 5);
            ``(B) demote the covered individual by means of a reduction 
        in grade for which the covered individual is qualified, that 
        the Secretary determines is appropriate, and that reduces the 
        annual rate of pay of the covered individual; or
            ``(C) suspend the covered individual.
    ``(b) Pay of Certain Demoted Individuals.--(1) Notwithstanding any 
other provision of law, any covered individual subject to a demotion 
under subsection (a)(2) shall, beginning on the date of such demotion, 
receive the annual rate of pay applicable to such grade.
    ``(2)(A) A covered individual so demoted may not be placed on 
administrative leave during the period during which an appeal (if any) 
under this section is ongoing, and may only receive pay if the covered 
individual reports for duty or is approved to use accrued unused 
annual, sick, family medical, military, or court leave.
    ``(B) If a covered individual so demoted does not report for duty 
or receive approval to use accrued unused leave, such covered 
individual shall not receive pay or other benefits pursuant to 
subsection (d)(5).
    ``(c) Procedure.--(1)(A) The aggregate period for notice, response, 
and final decision in a removal, demotion, or suspension under this 
section may not exceed 15 business days.
    ``(B) The period for the response of a covered individual to a 
notice of a proposed removal, demotion, or suspension under this 
section shall be 7 business days.
    ``(C) Paragraph (3) of subsection (b) of section 7513 of title 5 
shall apply with respect to a removal, demotion, or suspension under 
this section.
    ``(D) The procedures in this subsection shall supersede any 
collective bargaining agreement to the extent that such agreement is 
inconsistent with such procedures.
    ``(2) The Secretary shall issue a final decision with respect to a 
removal, demotion, or suspension under this section not later than 15 
business days after the Secretary provides notice, including a file 
containing all the evidence in support of the proposed action, to the 
covered individual of the removal, demotion, or suspension. The 
decision shall be in writing and shall include the specific reasons 
therefor.
    ``(3) The procedures under chapter 43 of title 5 shall not apply to 
a removal, demotion, or suspension under this section.
    ``(4)(A) Subject to subparagraph (B) and subsection (d), any 
removal or demotion under this section, and any suspension of more than 
14 days under this section, may be appealed to the Merit Systems 
Protection Board, which shall refer such appeal to an administrative 
judge pursuant to section 7701(b)(1) of title 5.
    ``(B) An appeal under subparagraph (A) of a removal, demotion, or 
suspension may only be made if such appeal is made not later than 10 
business days after the date of such removal, demotion, or suspension.
    ``(d) Expedited Review.--(1) Upon receipt of an appeal under 
subsection (c)(4)(A), the administrative judge shall expedite any such 
appeal under section 7701(b)(1) of title 5 and, in any such case, shall 
issue a final and complete decision not later than 180 days after the 
date of the appeal.
    ``(2)(A) Notwithstanding section 7701(c)(1)(B) of title 5, the 
administrative judge shall uphold the decision of the Secretary to 
remove, demote, or suspend an employee under subsection (a) if the 
decision is supported by substantial evidence.
    ``(B) Notwithstanding title 5 or any other provision of law, if the 
decision of the Secretary is supported by substantial evidence, the 
administrative judge shall not mitigate the penalty prescribed by the 
Secretary.
    ``(3)(A) The decision of the administrative judge under paragraph 
(1) may be appealed to the Merit Systems Protection Board.
    ``(B) Notwithstanding section 7701(c)(1)(B) of title 5, the Merit 
Systems Protection Board shall uphold the decision of the Secretary to 
remove, demote, or suspend an employee under subsection (a) if the 
decision is supported by substantial evidence.
    ``(C) Notwithstanding title 5 or any other provision of law, if the 
decision of the Secretary is supported by substantial evidence, the 
Merit Systems Protection Board shall not mitigate the penalty 
prescribed by the Secretary.
    ``(4) In any case in which the administrative judge cannot issue a 
decision in accordance with the 180-day requirement under paragraph 
(1), the Merit Systems Protection Board shall, not later than 14 
business days after the expiration of the 180-day period, submit to the 
Committee on Veterans' Affairs of the Senate and the Committee on 
Veterans' Affairs of the House of Representatives a report that 
explains the reasons why a decision was not issued in accordance with 
such requirement.
    ``(5)(A) A decision of the Merit Systems Protection Board under 
paragraph (3) may be appealed to the United States Court of Appeals for 
the Federal Circuit pursuant to section 7703 of title 5 or to any court 
of appeals of competent jurisdiction pursuant to subsection (b)(1)(B) 
of such section.
    ``(B) Any decision by such Court shall be in compliance with 
section 7462(f)(2) of this title.
    ``(6) The Merit Systems Protection Board may not stay any removal 
or demotion under this section, except as provided in section 1214(b) 
of title 5.
    ``(7) During the period beginning on the date on which a covered 
individual appeals a removal from the civil service under subsection 
(c) and ending on the date that the United States Court of Appeals for 
the Federal Circuit issues a final decision on such appeal, such 
covered individual may not receive any pay, awards, bonuses, 
incentives, allowances, differentials, student loan repayments, special 
payments, or benefits related to the employment of the individual by 
the Department.
    ``(8) To the maximum extent practicable, the Secretary shall 
provide to the Merit Systems Protection Board such information and 
assistance as may be necessary to ensure an appeal under this 
subsection is expedited.
    ``(9) If an employee prevails on appeal under this section, the 
employee shall be entitled to backpay (as provided in section 5596 of 
title 5).
    ``(10) If an employee who is subject to a collective bargaining 
agreement chooses to grieve an action taken under this section through 
a grievance procedure provided under the collective bargaining 
agreement, the timelines and procedures set forth in subsection (c) and 
this subsection shall apply.
    ``(e) Whistleblower Protection.--(1) In the case of a covered 
individual seeking corrective action (or on behalf of whom corrective 
action is sought) from the Office of Special Counsel based on an 
alleged prohibited personnel practice described in section 2302(b) of 
title 5, the Secretary may not remove, demote, or suspend such covered 
individual under subsection (a) without the approval of the Special 
Counsel under section 1214(f) of title 5.
    ``(2) In the case of a covered individual who has made a 
whistleblower disclosure to the Assistant Secretary for Accountability 
and Whistleblower Protection, the Secretary may not remove, demote, or 
suspend such covered individual under subsection (a) until--
            ``(A) in the case in which the Assistant Secretary 
        determines to refer the whistleblower disclosure under section 
        323(c)(1)(D) of this title to an office or other investigative 
        entity, a final decision with respect to the whistleblower 
        disclosure has been made by such office or other investigative 
        entity; or
            ``(B) in the case in which the Assistant Secretary 
        determines not to the refer the whistleblower disclosure under 
        such section, the Assistant Secretary makes such determination.
    ``(f) Termination of Investigations by Office of Special Counsel.--
(1) Notwithstanding any other provision of law, the Special Counsel 
(established by section 1211 of title 5) may terminate an investigation 
of a prohibited personnel practice alleged by an employee or former 
employee of the Department after the Special Counsel provides to the 
employee or former employee a written statement of the reasons for the 
termination of the investigation.
    ``(2) Such statement may not be admissible as evidence in any 
judicial or administrative proceeding without the consent of such 
employee or former employee.
    ``(g) Vacancies.--In the case of a covered individual who is 
removed or demoted under subsection (a), to the maximum extent 
feasible, the Secretary shall fill the vacancy arising as a result of 
such removal or demotion.
    ``(h) Definitions.--In this section:
            ``(1) The term `covered individual' means an individual 
        occupying a position at the Department, but does not include--
                    ``(A) an individual occupying a senior executive 
                position (as defined in section 713(d) of this title);
                    ``(B) an individual appointed pursuant to sections 
                7306, 7401(1), 7401(4), or 7405 of this title;
                    ``(C) an individual who has not completed a 
                probationary or trial period; or
                    ``(D) a political appointee.
            ``(2) The term `suspend' means the placing of an employee, 
        for disciplinary reasons, in a temporary status without duties 
        and pay for a period in excess of 14 days.
            ``(3) The term `grade' has the meaning given such term in 
        section 7511(a) of title 5.
            ``(4) The term `misconduct' includes neglect of duty, 
        malfeasance, or failure to accept a directed reassignment or to 
        accompany a position in a transfer of function.
            ``(5) The term `political appointee' means an individual 
        who is--
                    ``(A) employed in a position described under 
                sections 5312 through 5316 of title 5 (relating to the 
                Executive Schedule);
                    ``(B) a limited term appointee, limited emergency 
                appointee, or noncareer appointee in the Senior 
                Executive Service, as defined under paragraphs (5), 
                (6), and (7), respectively, of section 3132(a) of title 
                5; or
                    ``(C) employed in a position of a confidential or 
                policy-determining character under schedule C of 
                subpart C of part 213 of title 5, Code of Federal 
                Regulations, or successor regulation.
            ``(6) The term `whistleblower disclosure' has the meaning 
        given such term in section 323(g) of this title.''.
    (b) Clerical and Conforming Amendments.--
            (1) Clerical.--The table of sections at the beginning of 
        chapter 7 of such title is amended by inserting after the item 
        relating to section 713 the following new item:

``714. Employees: removal, demotion, or suspension based on performance 
                            or misconduct.''.
            (2) Conforming.--Section 4303(f) of title 5, United States 
        Code, is amended--
                    (A) in paragraph (2), by striking ``or'' at the 
                end;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``, or''; and
                    (C) by adding at the end the following:
            ``(4) any removal or demotion under section 714 of title 
        38.''.

SEC. 203. REDUCTION OF BENEFITS FOR DEPARTMENT OF VETERANS AFFAIRS 
              EMPLOYEES CONVICTED OF CERTAIN CRIMES.

    (a) Reduction of Benefits.--
            (1) In general.--Subchapter I of chapter 7 of title 38, 
        United States Code, is amended by adding at the end the 
        following new section:
``Sec. 719. Reduction of benefits of employees convicted of certain 
              crimes
    ``(a) Reduction of Annuity for Removed Employee.--(1) The Secretary 
shall order that the covered service of an employee of the Department 
removed from a position for performance or misconduct under section 
713, 714, or 7461 of this title or any other provision of law 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--
            ``(A) the Secretary determines that the individual is 
        convicted of a felony (and the conviction is final) that 
        influenced the individual's performance while employed in the 
        position; and
            ``(B) before such order is made, the individual is 
        afforded--
                    ``(i) notice of the proposed order; and
                    ``(ii) an opportunity to respond to the proposed 
                order by not later than ten business days following 
                receipt of such notice; and
            ``(C) the Secretary issues the order--
                    ``(i) in the case of a proposed order to which an 
                individual responds under subparagraph (B)(ii), not 
                later than five business days after receiving the 
                response of the individual; or
                    ``(ii) in the case of a proposed order to which an 
                individual does not respond, not later than 15 business 
                days after the Secretary provides notice to the 
                individual under subparagraph (B)(i).
    ``(2) Any individual with respect to whom an annuity is reduced 
under this subsection may appeal the reduction to the Director of the 
Office of Personnel Management pursuant to such regulations as the 
Director may prescribe for purposes of this subsection.
    ``(b) Reduction of Annuity for Retired Employee.--(1) The Secretary 
may order that the covered service of an individual who the Secretary 
proposes to remove for performance or misconduct under section 713, 
714, or 7461 of this title or any other provision of law but who leaves 
employment at the Department prior to the issuance of a final decision 
with respect to such action 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--
            ``(A) the Secretary determines that individual is convicted 
        of a felony (and the conviction is final) that influenced the 
        individual's performance while employed in the position; and
            ``(B) before such order is made, the individual is 
        afforded--
                    ``(i) notice of the proposed order;
                    ``(ii) opportunity to respond to the proposed order 
                by not later than ten business days following receipt 
                of such notice; and
            ``(C) the Secretary issues the order--
                    ``(i) in the case of a proposed order to which an 
                individual responds under subparagraph (B)(ii), not 
                later than five business days after receiving the 
                response of the individual; or
                    ``(ii) in the case of a proposed order to which an 
                individual does not respond, not later than 15 business 
                days after the Secretary provides notice to the 
                individual under subparagraph (B)(i).
    ``(2) Upon the issuance of an order by the Secretary under 
paragraph (1), the individual shall have an opportunity to appeal the 
order to the Director of the Office of Personnel Management before the 
date that is seven business days after the date of such issuance.
    ``(3) The Director of the Office of Personnel Management shall make 
a final decision with respect to an appeal under paragraph (2) within 
30 business days of receiving the appeal.
    ``(c) Administrative Requirements.--Not later than 37 business days 
after the Secretary issues a final order under subsection (a) or (b) 
with respect to an individual, the Director of the Office of Personnel 
Management shall recalculate the annuity of the individual.
    ``(d) 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.
    ``(e) Spouse or Children Exception.--(1) The Secretary, in 
consultation with the Director of the Office of Personnel Management, 
shall prescribe regulations that may provide for the payment to the 
spouse or children of any individual referred to in subsection (a) or 
(b) of any amounts which (but for this subsection) would otherwise have 
been nonpayable by reason of such subsections.
    ``(2) Regulations prescribed under paragraph (1) shall be 
consistent with the requirements of section 8332(o)(5) and 8411(l)(5) 
of title 5, as the case may be.
    ``(f) Definitions.--In this section:
            ``(1) The term `covered service' means, with respect to an 
        individual subject to a removal for performance or misconduct 
        under section 719 or 7461 of this title or any other provision 
        of law, the period of service beginning on the date that the 
        Secretary determines under such applicable provision that the 
        individual engaged in activity that gave rise to such action 
        and ending on the date that the individual is removed from or 
        leaves a position of employment at the Department prior to the 
        issuance of a final decision with respect to such action.
            ``(2) The term `lump-sum credit' has the meaning given such 
        term in section 8331(8) or section 8401(19) of title 5, as the 
        case may be.
            ``(3) The term `service' has the meaning given such term in 
        section 8331(12) or section 8401(26) of title 5, as the case 
        may be.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 7 of such title is amended by inserting 
        after the item relating to section 717 the following new item:

``719. Reduction of benefits of employees convicted of certain 
                            crimes.''.
    (b) Application.--Section 719 of title 38, United States Code, as 
added by subsection (a)(1), shall apply to any action of removal of an 
employee of the Department of Veterans Affairs under section 719 or 
7461 of such title or any other provision of law, commencing on or 
after the date of the enactment of this Act.

SEC. 204. AUTHORITY TO RECOUP BONUSES OR AWARDS PAID TO EMPLOYEES OF 
              DEPARTMENT OF VETERANS AFFAIRS.

    (a) In General.--Subchapter I of chapter 7 of title 38, United 
States Code, as amended by section 203, is further amended by adding at 
the end the following new section:
``Sec. 721. Recoupment of bonuses or awards paid to employees of 
              Department
    ``(a) In General.--Notwithstanding any other provision of law, the 
Secretary may issue an order directing an employee of the Department to 
repay the amount, or a portion of the amount, of any award or bonus 
paid to the employee under title 5, including under chapters 45 or 53 
of such title, or this title if--
            ``(1) the Secretary determines that the individual engaged 
        in misconduct or poor performance prior to payment of the award 
        or bonus, and that such award or bonus would not have been 
        paid, in whole or in part, had the misconduct or poor 
        performance been known prior to payment; and
            ``(2) before such repayment, the employee is afforded--
                    ``(A) notice of the proposed order; and
                    ``(B) an opportunity to respond to the proposed 
                order by not later than 10 business days after the 
                receipt of such notice; and
            ``(3) the Secretary issues the order--
                    ``(A) in the case of a proposed order to which an 
                individual responds under paragraph (2)(B), not later 
                than five business days after receiving the response of 
                the individual; or
                    ``(B) in the case of a proposed order to which an 
                individual does not respond, not later than 15 business 
                days after the Secretary provides notice to the 
                individual under paragraph (2)(A).
    ``(b) Appeal of Order of Secretary.--(1) Upon the issuance of an 
order by the Secretary under subsection (a) with respect to an 
individual, the individual shall have an opportunity to appeal the 
order to the Director of the Office of Personnel Management before the 
date that is seven business days after the date of such issuance.
    ``(2) The Director shall make a final decision with respect to an 
appeal under paragraph (1) within 30 business days after receiving such 
appeal.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter, as amended by section 203(a)(2), is further amended by 
inserting after the item relating to section 719 the following new 
item:

``721. Recoupment of bonuses or awards paid to employees of 
                            Department.''.
    (c) Effective Date.--Section 721 of title 38, United States Code, 
as added by subsection (a), shall apply with respect to an award or 
bonus paid by the Secretary of Veterans Affairs to an employee of the 
Department of Veterans Affairs on or after the date of the enactment of 
this Act.
    (d) Construction.--Nothing in this Act or the amendments made by 
this Act may be construed to modify the certification issued by the 
Office of Personnel Management and the Office of Management and Budget 
regarding the performance appraisal system of the Senior Executive 
Service of the Department of Veterans Affairs.

SEC. 205. AUTHORITY TO RECOUP RELOCATION EXPENSES PAID TO OR ON BEHALF 
              OF EMPLOYEES OF DEPARTMENT OF VETERANS AFFAIRS.

    (a) In General.--Subchapter I of chapter 7 of title 38, United 
States Code, as amended by section 204, is further amended by adding at 
the end the following new section:
``Sec. 723. Recoupment of relocation expenses paid on behalf of 
              employees of Department
    ``(a) In General.--Notwithstanding any other provision of law, the 
Secretary may issue an order directing an employee of the Department to 
repay the amount, or a portion of the amount, paid to or on behalf of 
the employee under title 5 for relocation expenses, including any 
expenses under section 5724 or 5724a of such title, or this title if--
            ``(1) the Secretary determines that relocation expenses 
        were paid following an act of fraud or malfeasance that 
        influenced the authorization of the relocation expenses;
            ``(2) before such repayment, the employee is afforded--
                    ``(A) notice of the proposed order; and
                    ``(B) an opportunity to respond to the proposed 
                order not later than ten business days following the 
                receipt of such notice; and
            ``(3) the Secretary issues the order--
                    ``(A) in the case of a proposed order to which an 
                individual responds under paragraph (2)(B), not later 
                than five business days after receiving the response of 
                the individual; or
                    ``(B) in the case of a proposed order to which an 
                individual does not respond, not later than 15 business 
                days after the Secretary provides notice to the 
                individual under paragraph (2)(A).
    ``(b) Appeal of Order of Secretary.--(1) Upon the issuance of an 
order by the Secretary under subsection (a) with respect to an 
individual, the individual shall have an opportunity to appeal the 
order to the Director of the Office of Personnel Management before the 
date that is seven business days after the date of such issuance.
    ``(2) The Director shall make a final decision with respect to an 
appeal under paragraph (1) within 30 days after receiving such 
appeal.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is further amended by inserting after the item relating to 
section 721, as added by section 204(b), the following new item:

``723. Recoupment of relocation expenses paid on behalf of employees of 
                            Department.''.
    (c) Effective Date.--Section 723 of title 38, United States Code, 
as added by subsection (a), shall apply with respect to an amount paid 
by the Secretary of Veterans Affairs to or on behalf of an employee of 
the Department of Veterans Affairs for relocation expenses on or after 
the date of the enactment of this Act.

SEC. 206. TIME PERIOD FOR RESPONSE TO NOTICE OF ADVERSE ACTIONS AGAINST 
              SUPERVISORY EMPLOYEES WHO COMMIT PROHIBITED PERSONNEL 
              ACTIONS.

    Section 731(a)(2)(B) of title 38, United States Code, as 
redesignated by section 102(a)(2), is amended--
            (1) in clause (i), by striking ``14 days'' and inserting 
        ``10 days''; and
            (2) in clause (ii), by striking ``14-day period'' and 
        inserting ``10-day period''.

SEC. 207. DIRECT HIRING AUTHORITY FOR MEDICAL CENTER DIRECTORS AND VISN 
              DIRECTORS.

    (a) In General.--Section 7401 of title 38, United States Code, is 
amended by adding at the end the following new paragraph:
            ``(4) Directors of medical centers and directors of 
        Veterans Integrated Service Networks with demonstrated ability 
        in the medical profession, in health care administration, or in 
        health care fiscal management.''.
    (b) Conforming Amendments.--Section 7404(a)(1) of such title is 
amended--
            (1) by inserting ``(A)'' before ``The annual''; and
            (2) in subparagraph (A), as designated by paragraph (1)--
                    (A) by inserting ``and 7401(4)'' after ``7306''; 
                and
                    (B) by adding at the end the following new 
                subparagraph:
    ``(B) Section 5377 of title 5 shall apply to a position under 
section 7401(4) of this title as if such position were included in the 
definition of `position' in section 5377(a) of title 5.''.

SEC. 208. TIME PERIODS FOR REVIEW OF ADVERSE ACTIONS WITH RESPECT TO 
              CERTAIN EMPLOYEES.

    (a) Physicians, Dentists, Podiatrists, Chiropractors, Optometrists, 
Registered Nurses, Physician Assistants, and Expanded-function Dental 
Auxiliaries.--Paragraph (2) of section 7461(b) of title 38, United 
States Code, is amended to read as follows:
    ``(2) In any case other than a case described in paragraph (1) that 
involves or includes a question of professional conduct or competence 
in which a major adverse action was not taken, such an appeal shall be 
made through Department grievance procedures under section 7463 of this 
title.''.
    (b) Major Adverse Actions Involving Professional Conduct or 
Competence.--Section 7462(b) of such title is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``, within the aggregate time period 
                specified in paragraph (5)(A),'' after ``is entitled'';
                    (B) in subparagraph (A)--
                            (i) by striking ``At least 30 days advance 
                        written notice'' and inserting ``Advance 
                        written notice'';
                            (ii) by striking ``and a statement'' and 
                        inserting ``a statement''; and
                            (iii) by inserting ``and a file containing 
                        all the evidence in support of each charge,'' 
                        after ``with respect to each charge,''; and
                    (C) in subparagraph (B), by striking ``A reasonable 
                time, but not less than seven days'' and inserting 
                ``The opportunity, within the time period provided for 
                in paragraph (4)(A)'';
            (2) by striking paragraph (3) and inserting the following 
        new paragraph (3):
    ``(3) After considering the employee's answer, if any, and within 
the time period provided for in paragraph (5)(B), the deciding official 
shall render a decision on the charges. The decision shall be in 
writing and shall include the specific reasons therefor.'';
            (3) in paragraph (4)--
                    (A) by striking subparagraph (A) and inserting the 
                following new subparagraph (A):
    ``(A) The period for the response of an employee under paragraph 
(1)(B) to advance written under paragraph (1)(A) shall be seven 
business days.''; and
                    (B) in subparagraph (B), by striking ``30 days'' 
                and inserting ``seven business days''; and
            (4) by adding at the end the following new paragraphs:
    ``(5)(A) The aggregate period for the resolution of charges against 
an employee under this subsection may not exceed 15 business days.
    ``(B) The deciding official shall render a decision under paragraph 
(3) on charges under this subsection not later than 15 business days 
after the Under Secretary provides notice on the charges for purposes 
of paragraph (1)(A).
    ``(6) The procedures in this subsection shall supersede any 
collective bargaining agreement to the extent that such agreement is 
inconsistent with such procedures.''.
    (c) Other Adverse Actions.--Section 7463(c) of such title is 
amended--
            (1) in paragraph (1), by striking ``the same notice and 
        opportunity to answer with respect to those charges as provided 
        in subparagraphs (A) and (B) of section 7462(b)(1) of this 
        title'' and inserting ``notice and an opportunity to answer 
        with respect to those charges in accordance with subparagraphs 
        (A) and (B) of section 7462(b)(1) of this title, but within the 
        time periods specified in paragraph (3)'';
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``, within the aggregate time period 
                specified in paragraph (3)(A),'' after ``is entitled'';
                    (B) in subparagraph (A), by striking ``an advance 
                written notice'' and inserting ``written notice''; and
                    (C) in subparagraph (B), by striking ``a reasonable 
                time'' and inserting ``time to answer''; and
            (3) by adding at the end the following new paragraph (3):
    ``(3)(A) The aggregate period for the resolution of charges against 
an employee under paragraph (1) or (2) may not exceed 15 business days.
    ``(B) The period for the response of an employee under paragraph 
(1) or (2)(B) to written notice of charges under paragraph (1) or 
(2)(A), as applicable, shall be seven business days.
    ``(C) The deciding official shall render a decision on charges 
under paragraph (1) or (2) not later than 15 business days after notice 
is provided on the charges for purposes of paragraph (1) or (2)(A), as 
applicable.''.

SEC. 209. IMPROVEMENT OF TRAINING FOR SUPERVISORS.

    (a) In General.--The Secretary of Veterans Affairs shall provide to 
each employee of the Department of Veterans Affairs who is employed as 
a supervisor periodic training on the following:
            (1) The rights of whistleblowers and how to address a 
        report by an employee of a hostile work environment, reprisal, 
        or harassment.
            (2) How to effectively motivate, manage, and reward the 
        employees who report to the supervisor.
            (3) How to effectively manage employees who are performing 
        at an unacceptable level and access assistance from the human 
        resources office of the Department and the Office of the 
        General Counsel of the Department with respect to those 
        employees.
    (b) Definitions.--In this section:
            (1) Supervisor.--The term ``supervisor'' has the meaning 
        given such term in section 7103(a) of title 5, United States 
        Code.
            (2) Whistleblower.--The term ``whistleblower'' has the 
        meaning given such term in section 323(g) of title 38, United 
        States Code, as added by section 101.

SEC. 210. ASSESSMENT AND REPORT ON EFFECT ON SENIOR EXECUTIVES AT 
              DEPARTMENT OF VETERANS AFFAIRS.

    (a) In General.--Not later than two years after the date of the 
enactment of this Act, the Secretary of Veterans Affairs shall--
            (1) measure and assess the effect of the enactment of this 
        title on the morale, engagement, hiring, promotion, retention, 
        discipline, and productivity of individuals in senior executive 
        positions at the Department of Veterans Affairs; and
            (2) submit to the Committee on Veterans' Affairs of the 
        Senate and the Committee on Veterans' Affairs of the House of 
        Representatives a report on the findings of the Secretary with 
        respect to the measurement and assessment carried out under 
        paragraph (1).
    (b) Elements.--The assessment required by subsection (a)(1) shall 
include the following:
            (1) With respect to engagement, trends in morale of 
        individuals in senior executive positions and individuals 
        aspiring to senior executive positions.
            (2) With respect to promotions--
                    (A) whether the Department is experiencing an 
                increase or decrease in the number of employees 
                participating in leadership development and candidate 
                development programs with the intention of becoming 
                candidates for senior executive positions; and
                    (B) trends in applications to senior executive 
                positions within the Department.
            (3) With respect to retention--
                    (A) trends in retirement rates of individuals in 
                senior executive positions at the Department;
                    (B) trends in quit rates of individuals in senior 
                executive positions at the Department;
                    (C) rates of transfer of--
                            (i) individuals from other Federal agencies 
                        into senior executive positions at the 
                        Department; and
                            (ii) individuals from senior executive 
                        positions at the Department to other Federal 
                        agencies; and
                    (D) trends in total loss rates by job function.
            (4) With respect to disciplinary processes--
                    (A) regarding individuals in senior executive 
                positions at the Department who are the subject of 
                disciplinary action--
                            (i) the length of the disciplinary process 
                        in days for such individuals both before the 
                        date of the enactment of this Act and under the 
                        provisions of this Act described in subsection 
                        (a)(1); and
                            (ii) the extent to which appeals by such 
                        individuals are upheld under such provisions as 
                        compared to before the date of the enactment of 
                        this Act;
                    (B) the components or offices of the Department 
                which experience the greatest number of proposed 
                adverse actions against individuals in senior executive 
                positions and components and offices which experience 
                the least relative to the size of the components or 
                offices' total number of senior executive positions;
                    (C) the tenure of individuals in senior executive 
                positions who are the subject of disciplinary action;
                    (D) whether the individuals in senior executive 
                positions who are the subject of disciplinary action 
                have previously been disciplined; and
                    (E) the number of instances of disciplinary action 
                taken by the Secretary against individuals in senior 
                executive positions at the Department as compared to 
                governmentwide discipline against individuals in Senior 
                Executive Service positions (as defined in section 
                3132(a) of title 5, United States Code) as a percentage 
                of the total number of individuals in senior executive 
                positions at the Department and Senior Executive 
                Service positions (as so defined).
            (5) With respect to hiring--
                    (A) the degree to which the skills of newly hired 
                individuals in senior executive positions at the 
                Department are appropriate with respect to the needs of 
                the Department;
                    (B) the types of senior executive positions at the 
                Department most commonly filled under the authorities 
                in the provisions described in subsection (a)(1);
                    (C) the number of senior executive positions at the 
                Department filled by hires outside of the Department 
                compared to hires from within the Department;
                    (D) the length of time to fill a senior executive 
                position at the Department and for a new hire to begin 
                working in a new senior executive position;
                    (E) the mission-critical deficiencies filled by 
                newly hired individuals in senior executive positions 
                and the connection between mission-critical 
                deficiencies filled under the provisions described in 
                subsection (a) and annual performance of the 
                Department;
                    (F) the satisfaction of applicants for senior 
                executive positions at the Department with the hiring 
                process, including the clarity of job announcements, 
                reasons for withdrawal of applications, communication 
                regarding status of applications, and timeliness of 
                hiring decision; and
                    (G) the satisfaction of newly hired individuals in 
                senior executive positions at the Department with the 
                hiring process and the process of joining and becoming 
                oriented with the Department.
    (c) Senior Executive Position Defined.--In this section, the term 
``senior executive position'' has the meaning given such term in 
section 713 of title 38, United States Code.

SEC. 211. MEASUREMENT OF DEPARTMENT OF VETERANS AFFAIRS DISCIPLINARY 
              PROCESS OUTCOMES AND EFFECTIVENESS.

    (a) Measuring and Collecting.--
            (1) In general.--The Secretary of Veterans Affairs shall 
        measure and collect information on the outcomes of disciplinary 
        actions carried out by the Department of Veterans Affairs 
        during the three-year period ending on the date of the 
        enactment of this Act and the effectiveness of such actions.
            (2) Elements.--In measuring and collecting pursuant to 
        paragraph (1), the Secretary shall measure and collect 
        information regarding the following:
                    (A) The average time from the initiation of an 
                adverse action against an employee at the Department to 
                the final resolution of that action.
                    (B) The number of distinct steps and levels of 
                review within the Department involved in the 
                disciplinary process and the average length of time 
                required to complete these steps.
                    (C) The rate of use of alternate disciplinary 
                procedures compared to traditional disciplinary 
                procedures and the frequency with which employees who 
                are subject to alternative disciplinary procedures 
                commit additional offenses.
                    (D) The number of appeals from adverse actions 
                filed against employees of the Department, the number 
                of appeals upheld, and the reasons for which the 
                appeals were upheld.
                    (E) The use of paid administrative leave during the 
                disciplinary process and the length of such leave.
    (b) Report.--
            (1) In general.--Not later than December 31, 2017, the 
        Secretary shall submit to the appropriate committees of 
        Congress a report on the disciplinary procedures and actions of 
        the Department.
            (2) Contents.--The report submitted under paragraph (1) 
        shall include the following:
                    (A) The information collected under subsection (a).
                    (B) The findings of the Secretary with respect to 
                the measurement and collection carried out under 
                subsection (a).
                    (C) An analysis of the disciplinary procedures and 
                actions of the Department.
                    (D) Suggestions for improving the disciplinary 
                procedures and actions of the Department.
                    (E) Such other matters as the Secretary considers 
                appropriate.
            (3) Appropriate committees of congress.--In this 
        subsection, the term ``appropriate committees of Congress'' 
        means--
                    (A) the Committee on Appropriations and the 
                Committee on Veterans' Affairs of the Senate; and
                    (B) the Committee on Appropriations and the 
                Committee on Veterans' Affairs of the House of 
                Representatives.
                                                       Calendar No. 103

115th CONGRESS

  1st Session

                                S. 1094

_______________________________________________________________________

                                 A BILL

To amend title 38, United States Code, to improve the accountability of 
    employees of the Department of Veterans Affairs, and for other 
                               purposes.

_______________________________________________________________________

                              May 24, 2017

                       Reported with an amendment
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