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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 152 Introduced in Senate (IS)]

<DOC>

115th CONGRESS
  1st Session
                                 S. 152

 To amend title 38, United States Code, to provide for the removal or 
 demotion of employees of the Department of Veterans Affairs based on 
           performance or misconduct, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 17, 2017

  Mr. Rubio (for himself, Mr. McCain, and Mr. Toomey) introduced the 
 following bill; which was read twice and referred to the Committee on 
                           Veterans' Affairs

_______________________________________________________________________

                                 A BILL

 
 To amend title 38, United States Code, to provide for the removal or 
 demotion of employees of the Department of Veterans Affairs based on 
           performance or misconduct, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``VA Accountability 
First and Appeals Modernization Act of 2017''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References to title 38, United States Code.
Sec. 3. Removal or demotion of employees based on performance or 
                            misconduct.
Sec. 4. Reduction of benefits for members of the Senior Executive 
                            Service within the Department of Veterans 
                            Affairs convicted of certain crimes.
Sec. 5. Authority to recoup bonuses or awards paid to employees of 
                            Department of Veterans Affairs.
Sec. 6. Authority to recoup relocation expenses paid to or on behalf of 
                            employees of Department of Veterans 
                            Affairs.
Sec. 7. Expansion of personnel actions for senior executives based on 
                            performance or misconduct and establishment 
                            of Senior Executive Disciplinary Appeals 
                            Board.
Sec. 8. Reform of rights and processes relating to appeals of decisions 
                            regarding claims for benefits under laws 
                            administered by Secretary of Veterans 
                            Affairs.
Sec. 9. Limitation on awards and bonuses paid to senior executive 
                            employees of Department of Veterans 
                            Affairs.

SEC. 2. REFERENCES TO TITLE 38, UNITED STATES CODE.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of title 38, United States 
Code.

SEC. 3. REMOVAL OR DEMOTION OF EMPLOYEES BASED ON PERFORMANCE OR 
              MISCONDUCT.

    (a) In General.--Chapter 7 is amended--
            (1) by redesignating section 715 as section 725; and
            (2) by inserting after section 713 the following new 
        section 715:
``Sec. 715. Employees: removal or demotion based on performance or 
              misconduct
    ``(a) In General.--The Secretary may remove or demote an individual 
who is an employee of the Department if the Secretary determines the 
performance or misconduct of the individual warrants such removal or 
demotion. If the Secretary so removes or demotes such an individual, 
the Secretary may--
            ``(1) remove the individual from the civil service (as 
        defined in section 2101 of title 5); or
            ``(2) demote the individual by means of--
                    ``(A) a reduction in grade for which the individual 
                is qualified and that the Secretary determines is 
                appropriate; or
                    ``(B) a reduction in annual rate of pay that the 
                Secretary determines is appropriate.
    ``(b) Pay of Certain Demoted Individuals.--(1) Notwithstanding any 
other provision of law, any individual subject to a demotion by a 
reduction in grade under subsection (a)(2)(A) shall, beginning on the 
date of such demotion, receive the annual rate of pay applicable to 
such grade.
    ``(2) An individual demoted as described in paragraph (1) may not 
be placed on administrative leave or any other category of paid leave 
during the period during which an appeal (if any) under this section is 
ongoing, and may only receive pay if the individual reports for duty. 
If an individual so demoted does not report for duty, such individual 
shall not receive any pay, awards, bonuses, incentives, allowances, 
differentials, student loan repayments, special payments, or benefits 
from the Department.
    ``(c) Notice to Congress.--Not later than 30 days after removing or 
demoting an individual under subsection (a), the Secretary shall submit 
to the Committee on Veterans' Affairs of the Senate and the Committee 
on Veterans' Affairs of the House of Representatives notice in writing 
of such removal or demotion and the reason for such removal or 
demotion.
    ``(d) Procedure.--(1) Subsection (b) of section 7513 of title 5 
shall apply with respect to a removal or demotion under this section, 
except that the period for notice and response, which includes the 
advance notice period required by paragraph (1) of such subsection and 
the response period required by paragraph (2) of such subsection, shall 
not exceed a total of ten calendar days.
    ``(2) The procedures under chapter 43 of title 5 shall not apply to 
a removal or demotion under this section.
    ``(3)(A) Subject to subparagraph (B) and subsection (e), any 
removal or demotion under subsection (a) may be appealed to the Merit 
Systems Protection Board under section 7701 of title 5.
    ``(B) An appeal under subparagraph (A) of a removal or demotion may 
only be made if such appeal is made not later than seven days after the 
date of such removal or demotion.
    ``(e) Expedited Review by Merit Systems Protection Board.--(1) Upon 
receipt of an appeal under subsection (d)(3)(A), the Merit Systems 
Protection Board shall expedite any such appeal under such section and, 
in any such case, shall issue a decision not later than 60 days after 
the date of the appeal.
    ``(2) Notwithstanding section 7701(c)(1)(B) of title 5, the Merit 
Systems Protection Board shall uphold the decision of the Secretary to 
remove or demote an employee under subsection (a) if the decision is 
supported by substantial evidence.
    ``(3) The decision of the Merit Systems Protection Board under 
paragraph (1), and any final removal or demotion described in paragraph 
(4), may be appealed to the United States Court of Appeals for the 
Federal Circuit pursuant to section 7703 of title 5. Any decision by 
such Court shall be in compliance with section 7462(f)(2) of this 
title.
    ``(4) In any case in which the Merit Systems Protection Board 
cannot issue a decision in accordance with the 60-day requirement under 
paragraph (1), the removal or demotion is final. In such a case, the 
Merit Systems Protection Board shall, within 14 days after the date 
that such removal or demotion is final, submit to Congress and 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) The Merit Systems Protection Board may not stay any removal 
or demotion under this section.
    ``(6) During the period beginning on the date on which an 
individual appeals a removal from the civil service under subsection 
(d) and ending on the date that the Merit Systems Protection Board 
issues a final decision on such appeal, such individual may not receive 
any pay, awards, bonuses, incentives, allowances, differentials, 
student loan repayments, special payments, or benefits from the 
Department.
    ``(7) 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.
    ``(f) Whistleblower Protection.--(1) In the case of an 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 or demote such individual under subsection 
(a) without the approval of the Special Counsel under section 1214(f) 
of title 5.
    ``(2) In the case of an individual who has filed a whistleblower 
complaint, as such term is defined in section 731 of this title, the 
Secretary may not remove or demote such individual under subsection (a) 
until a final decision with respect to the whistleblower complaint has 
been made.
    ``(g) Termination of Investigations by Office of Special Counsel.--
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. Such statement may not be admissible 
as evidence in any judicial or administrative proceeding without the 
consent of such employee or former employee.
    ``(h) Relation to Other Authorities.--The authority provided by 
this section is in addition to the authority provided by subchapter V 
of chapter 74 of this title, subchapter II of chapter 75 of title 5, 
chapter 43 of such title, and any other authority with respect to 
disciplining an individual.
    ``(i) Definitions.--In this section:
            ``(1) The term `individual' means an individual occupying a 
        position at the Department but does not include--
                    ``(A) an individual, as that term is defined in 
                section 713(g); or
                    ``(B) a political appointee.
            ``(2) The term `grade' has the meaning given that term in 
        section 7511(a) of title 5.
            ``(3) 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.
            ``(4) 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 of the Code of Federal 
                Regulations (or any successor regulation).''.
    (b) Clerical and Conforming Amendments.--
            (1) Clerical.--The table of sections at the beginning of 
        chapter 7 is amended--
                    (A) by striking the item relating to section 715 
                and inserting the following new item:

``715. Employees: removal or demotion based on performance or 
                            misconduct.'';
                and
                    (B) by inserting after the item relating to section 
                715 the following new item:

``725. Congressional testimony by employees: treatment as official 
                            duty.''.
            (2) Conforming.--Section 4303(f) of title 5, United States 
        Code, is amended--
                    (A) by striking ``or'' at the end of paragraph (2);
                    (B) by striking the period at the end of paragraph 
                (3) and inserting ``, or''; and
                    (C) by adding at the end the following:
            ``(4) any removal or demotion under section 715 of title 
        38.''.

SEC. 4. REDUCTION OF BENEFITS FOR MEMBERS OF THE SENIOR EXECUTIVE 
              SERVICE WITHIN THE DEPARTMENT OF VETERANS AFFAIRS 
              CONVICTED OF CERTAIN CRIMES.

    (a) Reduction of Benefits.--
            (1) In general.--Chapter 7 is further amended by inserting 
        after section 715, as added by section 3, the following new 
        section:
``Sec. 717. Senior executives: reduction of benefits of individuals 
              convicted of certain crimes
    ``(a) Reduction of Annuity for Removed Employee.--(1) The Secretary 
shall order that the covered service of an individual removed from a 
senior executive position for performance or misconduct under section 
713 of this title, chapter 43 or subchapter V of chapter 75 of title 5, 
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 individual is convicted of a felony that 
        influenced the individual's performance while employed in the 
        senior executive position; and
            ``(B) before such order is made, the individual is 
        afforded--
                    ``(i) notice of the order and an opportunity to 
                respond to the order; and
                    ``(ii) consistent with paragraph (2), an 
                opportunity to appeal the order to another department 
                or agency of the Federal Government.
    ``(2) If a final decision on an appeal made under paragraph 
(1)(B)(ii) is not made by the applicable department or agency of the 
Federal Government within 30 days after receiving such appeal, the 
order of the Secretary under paragraph (1) shall be final and not 
subject to further appeal.
    ``(b) Reduction of Annuity for Retired Employee.--(1) The Secretary 
may order that the covered service of an individual who is subject to a 
removal or transfer action for performance or misconduct under section 
713 of this title, chapter 43 or subchapter V of chapter 75 of title 5, 
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 individual is convicted of a felony that 
        influenced the individual's performance while employed in the 
        senior executive position; and
            ``(B) before such order is made, the individual is 
        afforded--
                    ``(i) notice of the order and an opportunity to 
                respond to the order; and
                    ``(ii) an opportunity for a hearing conducted by 
                another department or agency of the Federal Government.
    ``(2) The Secretary shall make such an order not later than seven 
days after the date of the conclusion of a hearing described in 
paragraph (1)(B) that determines that such order is lawful.
    ``(c) Administrative Requirements.--(1) Not later than 30 days 
after the Secretary issues an order under subsection (a) or (b), the 
Director of the Office of Personnel Management shall recalculate the 
annuity of the individual.
    ``(2) A decision regarding whether the covered service of an 
individual shall be taken into account for purposes of calculating an 
annuity under subsection (a) or (b) is final and may not be reviewed by 
any department or agency or any court.
    ``(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.--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 that (but for this subsection) would otherwise have been 
nonpayable by reason of subsection (a) or (b). Any such regulations 
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 or transfer for performance or 
        misconduct under section 713 of this title, chapter 43 or 
        subchapter V of chapter 75 of title 5, 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 or 
        transferred from the senior executive position or leaves 
        employment at the Department prior to the issuance of a final 
        decision with respect to such action, as the case may be.
            ``(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 `senior executive position' has the meaning 
        given such term in section 713(g)(3) of this title.
            ``(4) 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 is further amended by inserting after 
        the item relating to section 715, as added by section 3, the 
        following new item:

``717. Senior executives: reduction of benefits of individuals 
                            convicted of certain crimes.''.
    (b) Application.--Section 717 of title 38, United States Code, as 
added by subsection (a)(1), shall apply to any action of removal or 
transfer under section 713 of title 38, United States Code, commencing 
on or after the date of the enactment of this Act.

SEC. 5. AUTHORITY TO RECOUP BONUSES OR AWARDS PAID TO EMPLOYEES OF 
              DEPARTMENT OF VETERANS AFFAIRS.

    (a) In General.--Chapter 7 is further amended by inserting after 
section 717, as added by section 4, the following new section:
``Sec. 719. Recoupment of bonuses or awards paid to employees of 
              Department
    ``(a) Recoupment.--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 chapter 45 or 53 of 
such title, or this title if--
            ``(1) the Secretary determines such repayment appropriate 
        pursuant to regulations prescribed under subsection (c); and
            ``(2) before such repayment, the employee is afforded 
        notice and an opportunity for a hearing conducted by another 
        department or agency of the Federal Government.
    ``(b) Review.--(1) Upon the issuance of an order by the Secretary 
under subsection (a), the employee shall be afforded--
            ``(A) notice of the order and an opportunity to respond to 
        the order; and
            ``(B) consistent with paragraph (2), an opportunity to 
        appeal the order to another department or agency of the Federal 
        Government.
    ``(2) If a final decision on an appeal made under paragraph (1)(B) 
is not made by the applicable department or agency of the Federal 
Government within 30 days after receiving such appeal, the order of the 
Secretary under subsection (a) shall be final and not subject to 
further appeal.
    ``(c) Regulations.--The Secretary shall prescribe regulations to 
carry out this section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 7 is further amended by inserting after the item relating to 
section 717, as added by section 4, the following new item:

``719. Recoupment of bonuses or awards paid to employees of 
                            Department.''.
    (c) Effective Date.--Section 719 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 section or the amendments made 
by this section 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. 6. AUTHORITY TO RECOUP RELOCATION EXPENSES PAID TO OR ON BEHALF OF 
              EMPLOYEES OF DEPARTMENT OF VETERANS AFFAIRS.

    (a) In General.--Chapter 7 is further amended by inserting after 
section 719, as added by section 5, the following new section:
``Sec. 721. Recoupment of relocation expenses paid on behalf of 
              employees of Department
    ``(a) Recoupment.--(1) Notwithstanding any other provision of law, 
the Secretary may direct an employee of the Department to repay the 
amount, or a portion of the amount, paid to or on behalf of the 
employee for relocation expenses under title 5, including any expenses 
under section 5724 or 5724a of such title, or this title if--
            ``(A) the Secretary determines that--
                    ``(i) the employee has committed an act of fraud, 
                waste, or malfeasance; and
                    ``(ii) such repayment is appropriate pursuant to 
                regulations prescribed under subsection (c); and
            ``(B) before such repayment is ordered, the individual is 
        afforded--
                    ``(i) notice of the determination of the Secretary 
                and an opportunity to respond to the determination; and
                    ``(ii) consistent with paragraph (2), an 
                opportunity to appeal the determination to another 
                department or agency of the Federal Government.
    ``(2) If a final decision on an appeal made under paragraph 
(1)(B)(ii) is not made by the applicable department or agency of the 
Federal Government within 30 days after receiving such appeal, the 
order of the Secretary under paragraph (1) shall be final and not 
subject to further appeal.
    ``(b) Review.--A decision by the applicable department or agency of 
the Federal Government regarding a repayment by an employee pursuant to 
subsection (a)(1)(B)(ii) is final and may not be reviewed by any 
department, agency, or court.
    ``(c) Regulations.--The Secretary shall prescribe regulations to 
carry out this section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 7 is further amended by inserting after the item relating to 
section 719, as added by section 5, the following new item:

``721. Recoupment of relocation expenses paid to or on behalf of 
                            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 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.
    (d) Construction.--Nothing in this section or the amendments made 
by this section 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. 7. EXPANSION OF PERSONNEL ACTIONS FOR SENIOR EXECUTIVES BASED ON 
              PERFORMANCE OR MISCONDUCT AND ESTABLISHMENT OF SENIOR 
              EXECUTIVE DISCIPLINARY APPEALS BOARD.

    (a) Expansion of Covered Personnel Actions.--Subsection (a)(1) of 
section 713 is amended, in the matter preceding subparagraph (A), by 
inserting after ``such removal.'' the following: ``If the Secretary 
determines that the performance or misconduct of such an individual 
does not warrant removal from the senior executive service position, 
the Secretary may suspend, reprimand, or admonish the individual.''.
    (b) Removal of Appeal to Merit Systems Protection Board.--Section 
713 is further amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``so removes'' 
                and inserting ``removes''; and
                    (B) by adding at the end the following:
    ``(3) On the date that is five days before taking any personnel 
action against a senior executive under paragraph (1), the Secretary 
shall provide the individual with--
            ``(A) notice in writing of the proposed personnel action, 
        including the reasons for such action; and
            ``(B) an opportunity to respond to the proposed personnel 
        action within the five-day period.'';
            (2) in subsection (b)(2)--
                    (A) by striking ``under this section'' and 
                inserting ``under section 723 of this title''; and
                    (B) by striking the second sentence;
            (3) in subsection (c)--
                    (A) by striking ``30'' and inserting ``five''; and
                    (B) by striking ``and the reason for such removal 
                or transfer'' and inserting ``, the reason for such 
                removal or transfer, the name and position of the 
                individual, and all charging documents and evidence 
                pertaining to such removal or transfer'';
            (4) by striking subsections (d) and (e) and inserting the 
        following:
    ``(d) Procedure.--(1) The procedures under title 5 shall not apply 
to any personnel action under this section.
    ``(2) Subject to paragraph (3), a personnel action under this 
section--
            ``(A) may be appealed to the Senior Executive Disciplinary 
        Appeals Board under section 723 of this title; and
            ``(B) may not be appealed to the Merit Systems Protection 
        Board under section 7701 of title 5.
    ``(3) An appeal under paragraph (2)(A) of a personnel action under 
this section may only be made if such appeal is made not later than 
seven days after the date of such action. If no such appeal is made, 
the decision of the Secretary under this section shall be final.'';
            (5) by redesignating subsections (f) and (g) as subsections 
        (e) and (f), respectively; and
            (6) in subsection (f), as redesignated by paragraph (5), by 
        adding at the end the following:
            ``(4) The term `suspend' means the placing of an individual 
        in a temporary status without duties and pay for a period 
        greater than 14 days.''.
    (c) Removal of Expedited Procedures.--Section 707 of the Veterans 
Access, Choice, and Accountability Act of 2014 (Public Law 113-146; 38 
U.S.C. 713 note) is amended--
            (1) by striking subsection (b); and
            (2) by redesignating subsections (c) and (d) as subsections 
        (b) and (c), respectively.
    (d) Senior Executive Disciplinary Appeals Board.--Chapter 7 is 
further amended by inserting after section 721, as added by section 6, 
the following new section:
``Sec. 723. Senior Executive Disciplinary Appeals Board
    ``(a) In General.--The Secretary shall from time to time appoint a 
board to hear appeals of any personnel action taken under section 713 
of this title. Such board shall be known as the Senior Executive 
Disciplinary Appeals Board (in this section referred to as the 
`Board'). Each Board shall consist of three employees of the 
Department. The Board shall have exclusive jurisdiction to review any 
personnel action under section 713.
    ``(b) Review and Decision.--Upon an appeal of such a personnel 
action, the Board shall--
            ``(1) review all evidence provided by the Secretary and the 
        appellant; and
            ``(2) issue a decision not later than 21 days after the 
        date of the appeal.
    ``(c) Hearing.--The Board shall afford an employee appealing a 
personnel action an opportunity for an oral hearing. If such a hearing 
is held, the appellant may be represented by counsel.
    ``(d) Standard of Review.--The Board shall uphold the decision of 
the Secretary if--
            ``(1) there is substantial evidence supporting the 
        decision; and
            ``(2) the applicable personnel action is within the 
        tolerable bounds of reasonableness.
    ``(e) Reversal by Secretary.--If the Board issues a decision under 
this section that reverses or otherwise mitigates the applicable 
personnel action, the Secretary may reverse the decision of the Board. 
Consistent with the requirements of subsection (g), the decision of the 
Secretary under this subsection shall be final.
    ``(f) No Decision by Board.--In any case in which the Board cannot 
issue a decision in accordance with the 21-day requirement under 
subsection (b)(2), the personnel action is final.
    ``(g) Appeal of Decision.--A petition to review a final order or 
final decision of the Secretary or the Board under this section shall 
be filed in the United States Court of Appeals for the Federal Circuit. 
Any decision by such Court shall be in compliance with section 
7462(f)(2) of this title.
    ``(h) Prohibition on Receipt of Benefits.--During the period 
beginning on the date on which an individual appeals a removal from the 
civil service under section 713(d) of this title and ending on the date 
that the Board or Secretary issues a final decision on such appeal, 
such individual may not receive any pay, awards, bonuses, incentives, 
allowances, differentials, student loan repayments, special payments, 
or benefits from the Department.''.
    (e) Technical and Clerical Amendments.--
            (1) Technical amendment.--The section heading of section 
        713 is amended to read as follows: Senior executives: personnel 
        actions based on performance or misconduct.
            (2) Clerical amendments.--The table of sections at the 
        beginning of chapter 7 is further amended--
                    (A) by striking the item relating to section 713 
                and inserting the following new item:

``713. Senior executives: personnel actions based on performance or 
                            misconduct.'';
                and
                    (B) by inserting after the item relating to section 
                721 the following new item:

``723. Senior Executive Disciplinary Appeals Board.''.
    (f) Rule of Construction.--Nothing in this section or section 723 
of title 38, United States Code, as added by subsection (d), shall be 
construed to apply to an appeal of a removal, transfer, or other 
personnel action that was pending before the date of the enactment of 
this Act.

SEC. 8. REFORM OF RIGHTS AND PROCESSES RELATING TO APPEALS OF DECISIONS 
              REGARDING CLAIMS FOR BENEFITS UNDER LAWS ADMINISTERED BY 
              SECRETARY OF VETERANS AFFAIRS.

    (a) Definitions.--Section 101 is amended by adding at the end the 
following new paragraphs:
            ``(34) The term `agency of original jurisdiction' means the 
        activity which entered the original determination with regard 
        to a claim for benefits under laws administered by the 
        Secretary.
            ``(35) The term `relevant evidence' means evidence that 
        tends to prove or disprove a matter in issue.''.
    (b) Notice Regarding Claims.--Section 5103(a) is amended--
            (1) in paragraph (1), in the first sentence, by striking 
        ``The'' and inserting ``Except as provided in paragraph (3), 
        the'';
            (2) in paragraph (2)(B)(i) by striking ``, a claim for 
        reopening a prior decision on a claim, or a claim for an 
        increase in benefits;'' and inserting ``or a supplemental 
        claim;''; and
            (3) by adding at the end the following new paragraph:
    ``(3) The requirement to provide notice under paragraph (1) shall 
not apply with respect to a supplemental claim that is filed within the 
time frame set forth in subparagraphs (B) and (D) of section 5110(a)(2) 
of this title.''.
    (c) Modification of Rule Regarding Disallowed Claims.--Section 
5103A(f) is amended--
            (1) by striking ``reopen'' and inserting ``readjudicate''; 
        and
            (2) by striking ``material'' and inserting ``relevant''.
    (d) Modification of Duty To Assist Claimants.--
            (1) Limitations on duty.--Section 5103A(a) is amended--
                    (A) in paragraph (1), by striking ``The'' and 
                inserting ``Except as otherwise provided in this 
                subsection, the''; and
                    (B) by adding at the end the following new 
                paragraphs:
    ``(4) The Secretary's duty to assist under paragraph (1) shall 
apply only to a claim, or supplemental claim, for a benefit under a law 
administered by the Secretary until the time that a claimant is 
provided notice of the decision of the agency of original jurisdiction 
with respect to such claim, or supplemental claim, under section 5104 
of this title.
    ``(5) The Secretary's duty to assist under paragraph (1) shall not 
apply to--
            ``(A) higher-level review by the agency of original 
        jurisdiction, pursuant to section 5104B of this title; or
            ``(B) to review on appeal by the Board of Veterans' 
        Appeals.''.
            (2) Correction of errors from duty to assist.--Section 
        5103A is amended--
                    (A) by redesignating subsections (e) through (g) as 
                subsections (f) through (h), respectively; and
                    (B) by inserting after subsection (d) the following 
                new subsection:
    ``(e) Correction of Duty To Assist Errors.--(1) If, during review 
of the agency of original jurisdiction decision under section 5104B of 
this title, the higher-level reviewer identifies an error on the part 
of the agency of original jurisdiction to satisfy its duties under this 
section, and that error occurred prior to the agency of original 
jurisdiction decision being reviewed, unless the claim can be granted 
in full, the higher-level reviewer shall return the claim for 
correction of such error and readjudication.
    ``(2)(A) If the Board, during review on appeal of a decision of the 
agency of original jurisdiction, identifies an error on the part of the 
agency of original jurisdiction to satisfy its duties under section 
5103A of this title, and that error occurred prior to the decision of 
the agency of original jurisdiction on appeal, unless the claim can be 
granted in full, the Board shall remand the claim to the agency of 
original jurisdiction for correction of such error and readjudication.
    ``(B) Remand for correction of an error under suparagraph (A) may 
include directing the agency of original jurisdiction to obtain an 
advisory medical opinion under section 5109 of this title''.
    (e) Decisions and Notices of Decisions.--Subsection (b) of section 
5104 is amended to read as follows:
    ``(b) In any case where the Secretary denies a benefit sought, the 
notice required by subsection (a) shall also include all of the 
following:
            ``(1) Identification of the issues adjudicated.
            ``(2) A summary of the evidence considered by the 
        Secretary.
            ``(3) A summary of the applicable laws and regulations.
            ``(4) Identification of findings favorable to the claimant.
            ``(5) Identification of elements not satisfied leading to 
        the denial.
            ``(6) An explanation of how to obtain or access evidence 
        used in making the decision.
            ``(7) If applicable, identification of the criteria that 
        must be satisfied to grant service connection or the next 
        higher level of compensation.''.
    (f) Binding Nature of Favorable Findings.--
            (1) In general.--Chapter 51 is amended inserting after 
        section 5104 the following new section:
``Sec. 5104A. Binding nature of favorable findings
    ``Any finding favorable to the claimant as described in section 
5104(b)(4) of this title shall be binding on all subsequent 
adjudicators within the Department, unless clear and convincing 
evidence is shown to the contrary to rebut such favorable finding.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 51 is amended by inserting after the item 
        relating to section 5104 the following new item:

``5104A. Binding nature of favorable findings.''.
    (g) Higher-Level Review by Agency of Original Jurisdiction.--
            (1) In general.--Chapter 51, as amended by subsection (f), 
        is further amended by inserting after section 5104A, as added 
        by such subsection, the following new section:
``Sec. 5104B. Higher-level review by the agency of original 
              jurisdiction
    ``(a) In General.--A claimant may request a de novo review of the 
decision of the agency of original jurisdiction by a higher-level 
adjudicator within the agency of original jurisdiction.
    ``(b) Time and Manner of Request.--(1) A request for higher-level 
review by the agency of original jurisdiction shall be--
            ``(A) in writing in such form as the Secretary may 
        prescribe; and
            ``(B) made within one year of the notice of the agency of 
        original jurisdiction's decision.
    ``(2) Such request may specifically indicate whether such review is 
requested by a higher-level adjudicator at the same office within the 
agency of original jurisdiction or by an adjudicator at a different 
office of the agency of original jurisdiction.
    ``(c) Decision.--Notice of a higher-level review decision under 
this section shall be provided in writing.
    ``(d) Evidentiary Record for Review.--The evidentiary record before 
the higher-level reviewer shall be limited to the evidence of record in 
the agency of original jurisdiction decision being reviewed.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 51, as amended by subsection (f), is 
        further amended by inserting after the item relating to section 
        5104A, as added by such subsection, the following new item:

``5104B. Higher-level review by the agency of original jurisdiction.''.
    (h) Supplemental Claims.--
            (1) In general.--Section 5108 is amended to read as 
        follows:
``Sec. 5108. Supplemental claims
    ``If new and relevant evidence is presented or secured with respect 
to a supplemental claim, the Secretary shall readjudicate the claim 
taking into consideration any evidence added to the record prior to the 
former disposition of the claim.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 51 is amended by striking the item 
        relating to section 5108 and inserting the following new item:

``5108. Supplemental claims.''.
    (i) Remand of Claim for Advisory Medical Opinion.--Section 5109 is 
amended by adding at the end the following new subsection:
    ``(d) The Board of Veterans' Appeals may remand a claim to direct 
the agency of original jurisdiction to obtain an advisory medical 
opinion under this section to correct an error on the part of the 
agency of original jurisdiction to satisfy its duties under section 
5103A of this title when such error occurred prior to the decision of 
the agency of original jurisdiction on appeal. The remand instructions 
set forth by the Board shall include the questions to be posed to the 
independent medical expert providing the advisory medical opinion.''.
    (j) Effective Dates of Awards.--Section 5110 is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a)(1) Unless specifically provided otherwise in this chapter, 
the effective date of an award based on an initial claim, or a 
supplemental claim, of compensation, dependency and indemnity 
compensation, or pension, shall be fixed in accordance with the facts 
found, but shall not be earlier than the date of receipt of application 
therefor.
    ``(2) For purposes of determining the effective date of an award 
under this section, the date of application shall be considered the 
date of the filing of the initial application for a benefit if the 
claim is continuously pursued by filing any of the following, either 
alone or in succession:
            ``(A) A request for higher-level review under section 5104B 
        of this title on or before the date that is one year after the 
        date on which the agency of original jurisdiction issues a 
        decision.
            ``(B) A supplemental claim under section 5108 of this title 
        on or before the date that is one year after the date on which 
        the agency of original jurisdiction issues a decision.
            ``(C) A notice of disagreement on or before the date that 
        is one year after the date on which the agency of original 
        jurisdiction issues a decision.
            ``(D) A supplemental claim under section 5108 of this title 
        on or before the date that is one year after the date on which 
        the Board of Veterans' Appeals issues a decision.
    ``(3) Except as otherwise provided in this section, for 
supplemental claims received more than one year after the date on which 
the agency of original jurisdiction issued a decision or the Board of 
Veterans' Appeals issued a decision, the effective date shall be fixed 
in accordance with the facts found, but shall not be earlier than the 
date of receipt of the supplemental claim.''; and
            (2) in subsection (i), in the first sentence--
                    (A) by striking ``reopened'' and inserting 
                ``readjudicated'';
                    (B) by striking ``material'' and inserting 
                ``relevant''; and
                    (C) by striking ``reopening'' and inserting 
                ``readjudication''.
    (k) Definition of Award or Increased Award for Purposes of 
Provisions Relating to Commencement of Period of Payment.--Section 
5111(d)(1) is amended by striking ``or reopened award'' and inserting 
``award or award based on a supplemental claim''.
    (l) Modification on Limitation on Fees Allowable for 
Representation.--Section 5904(c) is amended, in paragraphs (1) and (2), 
by striking ``notice of disagreement is filed'' both places it appears 
and inserting ``claimant is provided notice of the agency of original 
jurisdiction's initial decision under section 5104 of this title''.
    (m) Modification of Board of Veterans' Appeals Referral 
Requirements After Order for Reconsideration of Decisions.--Section 
7103(b)(1) is amended by striking ``heard'' both places it appears and 
inserting ``decided''.
    (n) Conforming Amendment Relating to Readjudication by Board of 
Veterans' Appeals.--Section 7104(b) is amended by striking ``reopened'' 
and inserting ``readjudicated''.
    (o) Modification of Rights and Procedures for Appeals to Board of 
Veterans' Appeals.--
            (1) In general.--Section 7105 is amended--
                    (A) in subsection (a)--
                            (i) by striking the first sentence and 
                        inserting ``Appellate review shall be initiated 
                        by the filing of a notice of disagreement in 
                        the form prescribed by the Secretary.''; and
                            (ii) by striking ``hearing and'';
                    (B) by amending subsection (b) to read as follows:
    ``(b)(1)(A) Except in the case of simultaneously contested claims, 
notice of disagreement shall be filed within one year from the date of 
the mailing of notice of the decision of the agency of original 
jurisdiction pursuant to section 5104, 5104B, or 5108 of this title.
    ``(B) A notice of disagreement postmarked before the expiration of 
the one-year period shall be accepted as timely filed.
    ``(C) A question as to timeliness or adequacy of the notice of 
disagreement shall be decided by the Board.
    ``(2)(A) Notices of disagreement shall be in writing, shall set out 
specific allegations of error of fact or law, and may be filed by the 
claimant, the claimant's legal guardian, or such accredited 
representative, attorney, or authorized agent as may be selected by the 
claimant or legal guardian.
    ``(B) Not more than one recognized organization, attorney, or agent 
may be recognized at any one time in the prosecution of a claim.
    ``(C) Notices of disagreement shall be filed with the Board.
    ``(3)(A) The notice of disagreement shall indicate whether the 
claimant requests--
            ``(i) a hearing before the Board;
            ``(ii) an opportunity to submit additional evidence without 
        a hearing before the Board; or
            ``(iii) a review by the Board without a hearing or 
        submission of additional evidence.
    ``(B) If the claimant does not expressly request a hearing before 
the Board in the notice of disagreement, no hearing before the Board 
may be held.'';
                    (C) by amending subsection (c) to read as follows:
    ``(c) If no notice of disagreement is filed in accordance with this 
chapter within the prescribed period, the action or decision of the 
agency of original jurisdiction shall become final and the claim may 
not thereafter be readjudicated or allowed, except as may otherwise be 
provided by section 5104B or 5108 of this title or such regulations as 
the Secretary may promulgate that are consistent with this title.'';
                    (D) by striking subsection (d) and inserting the 
                following new subsection (d):
    ``(d) The Board of Veterans' Appeals may dismiss any appeal which 
fails to allege specific error of fact or law in the decision being 
appealed.'';
                    (E) by striking subsection (e); and
                    (F) in the section heading, by striking ``notice of 
                disagreement and''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 71 is amended by striking the item 
        relating to section 7105 and inserting the following new item:

``7105. Filing of appeal.''.
    (p) Modification of Procedures and Requirements for Simultaneously 
Contested Claims.--Subsection (b) of section 7105A is amended to read 
as follows:
    ``(b)(1) The substance of the notice of disagreement shall be 
communicated to the other party or parties in interest and a period of 
thirty days shall be allowed for filing a brief or argument in response 
thereto.
    ``(2) Such notice shall be forwarded to the last known address of 
record of the parties concerned, and such action shall constitute 
sufficient evidence of notice.''.
    (q) Repeal of Procedures for Administrative Appeals.--
            (1) In general.--Chapter 71 is amended by striking section 
        7106.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 71 is amended by striking the item 
        relating to section 7106.
    (r) Modifications Relating to Appeals: Dockets; Hearings.--Section 
7107 is amended to read as follows:
``Sec. 7107. Appeals: dockets; hearings
    ``(a) Dockets.--(1) The Board shall maintain two separate dockets 
as follows:
            ``(A) A non-hearing option docket shall be maintained for 
        cases in which no Board hearing is requested and no additional 
        evidence will be submitted.
            ``(B) A separate and distinct hearing option docket shall 
        be maintained for cases in which a Board hearing is requested 
        in the notice of disagreement or in which no Board hearing is 
        requested, but the appellant requests, in the notice of 
        disagreement, an opportunity to submit additional evidence.
    ``(2) Except as provided in subsection (b), each case before the 
Board will be decided in regular order according to its respective 
place on the Board's non-hearing option docket or the hearing option 
docket.
    ``(b) Advancement on the Docket.--(1) A case on either the Board's 
non-hearing option docket or hearing option docket may, for cause 
shown, be advanced on motion for earlier consideration and 
determination.
    ``(2) Any such motion shall set forth succinctly the grounds upon 
which the motion is based.
    ``(3) Such a motion may be granted only--
            ``(A) if the case involves interpretation of law of general 
        application affecting other claims;
            ``(B) if the appellant is seriously ill or is under severe 
        financial hardship; or
            ``(C) for other sufficient cause shown.
    ``(c) Manner and Scheduling of Hearings for Cases on Board Hearing 
Option Docket.--(1) For cases on the Board hearing option docket in 
which a hearing is requested in the notice of disagreement, the Board 
shall notify the appellant whether a Board hearing will be held--
            ``(A) at its principal location, or
            ``(B) by picture and voice transmission at a facility of 
        the Department where the Secretary has provided suitable 
        facilities and equipment to conduct such hearings.
    ``(2)(A) Upon notification of a Board hearing at the Board's 
principal location as described in subparagraph (A) of paragraph (1), 
the appellant may alternatively request a hearing as described in 
subparagraph (B) of such paragraph. If so requested, the Board shall 
grant such request.
    ``(B) Upon notification of a Board hearing by picture and voice 
transmission as described in subparagraph (B) of paragraph (1), the 
appellant may alternatively request a hearing as described in 
subparagraph (A) of such paragraph. If so requested, the Board shall 
grant such request.
    ``(d) Screening of Cases.--Nothing in this section shall be 
construed to preclude the screening of cases for purposes of--
            ``(1) determining the adequacy of the record for decisional 
        purposes; or
            ``(2) the development, or attempted development, of a 
        record found to be inadequate for decisional purposes.''.
    (s) Repeal of Authority for Independent Medical Opinions.--
            (1) In general.--Chapter 71 is amended by striking section 
        7109.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 71 is amended by striking the item 
        relating to section 7109.
            (3) Conforming amendment.--Section 5701(b)(1) is amended by 
        striking ``or 7109''.
    (t) Modification of Standard for Review of Decisions on Grounds of 
Clear and Unmistakable Error.--Section 7111(e) is amended by striking 
``, without referral to any adjudicative or hearing official acting on 
behalf of the Secretary''.
    (u) Evidentiary Record Before Board of Veterans' Appeals.--
            (1) In general.--Chapter 71 is amended by adding at the end 
        the following new section:
``Sec. 7113. Evidentiary record before the Board of Veterans' Appeals
    ``(a) Non-Hearing Option Docket.--For cases in which a hearing 
before the Board of Veterans' Appeals is not requested in the notice of 
disagreement, the evidentiary record before the Board shall be limited 
to the evidence of record at the time of the decision of the agency of 
original jurisdiction on appeal.
    ``(b) Hearing Option Docket.--(1)(A) Except as provided in 
subparagraph (B), for cases on the hearing option docket in which a 
hearing is requested in the notice of disagreement, the evidentiary 
record before the Board shall be limited to the evidence of record at 
the time of the decision of the agency of original jurisdiction on 
appeal.
    ``(B) The evidentiary record before the Board for cases on the 
hearing option docket in which a hearing is requested, shall include 
each of the following, which the Board shall consider in the first 
instance:
            ``(i) Evidence submitted by the appellant and his or her 
        representative, if any, at the Board hearing.
            ``(ii) Evidence submitted by the appellant and his or her 
        representative, if any, within 90 days following the Board 
        hearing.
    ``(2)(A) Except as provided in subparagraph (B), for cases on the 
hearing option docket in which a hearing is not requested in the notice 
of disagreement, the evidentiary record before the Board shall be 
limited to the evidence considered by the agency of original 
jurisdiction in the decision on appeal.
    ``(B) The evidentiary record before the Board for cases on the 
hearing option docket in which a hearing is not requested, shall 
include each of the following, which the Board shall consider in the 
first instance:
            ``(i) Evidence submitted by the appellant and his or her 
        representative, if any, with the notice of disagreement.
            ``(ii) Evidence submitted by the appellant and his or her 
        representative, if any, within 90 days following receipt of the 
        notice of disagreement.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 71 is amended by inserting after the item 
        relating to section 7112 the following new item:

``7113. Evidentiary record before the Board of Veterans' Appeals.''.

SEC. 9. LIMITATION ON AWARDS AND BONUSES PAID TO SENIOR EXECUTIVE 
              EMPLOYEES OF DEPARTMENT OF VETERANS AFFAIRS.

    Section 705 of the Veterans Access, Choice, and Accountability Act 
of 2014 (Public Law 113-146; 38 U.S.C. 703 note) is amended--
            (1) in subsection (a), by striking ``The Secretary'' and 
        inserting ``Except as provided in subsection (b), the 
        Secretary'';
            (2) by redesignating subsection (b) as subsection (c); and
            (3) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Prohibition on Awards and Bonuses for Senior Executive 
Employees.--During each of fiscal years 2017 through 2021, no award or 
bonus may be paid to any employee of the Department of Veterans Affairs 
who is employed in a Senior Executive Service position, as that term is 
defined in section 3132(a)(2) of title 5.''.
                                 <all>
```