IB 

Union Calendar No. 16 

115TH CONGRESS 

1ST SESSION H. R. 1259 

[Report No. 115–34, Part I] 

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 HOUSE OF REPRESENTATIVES 

FEBRUARY 28, 2017 

Mr. ROE of Tennessee (for himself, Mr. BILIRAKIS, Mr. ARRINGTON, Mr. 

COFFMAN, Mr. WENSTRUP, Mrs. RADEWAGEN, Mr. BOST, Mr. BERGMAN, 

Mr. POLIQUIN, Mr. BANKS of Indiana, and Miss GONZA ́LEZ-COLO ́N of 

Puerto Rico) introduced the following bill; which was referred to the 

Committee on Veterans’ Affairs, and in addition to the Committee on 

Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

MARCH 10, 2017 

Additional sponsors: Mr. HIGGINS of Louisiana, Mr. DESANTIS, Mr. ROYCE

of California, Mr. PITTENGER, Mr. DAVIDSON, Mrs. WALORSKI, Mr. 

DUNN, Mr. ROKITA, Mr. BYRNE, Mr. HARPER, Mr. RENACCI, Mr. SESSIONS, Mr. COLE, Ms. SINEMA, Mr. TIPTON, and Mr. SAM JOHNSON of 

Texas 

MARCH 10, 2017 

Reported from the Committee on Veterans’ Affairs 

MARCH 10, 2017 

The Committee on Oversight and Government Reform discharged; committed 

to the Committee of the Whole House on the State of the Union and ordered to be printed 


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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. 


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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘VA Accountability First Act of 2017’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. References to title 38, United States Code. 

Sec. 3. Removal, demotion, and suspension of employees based on performance 

or misconduct. 

Sec. 4. Reduction of benefits for Department of Veterans Affairs employees 

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. Time period for response to notice of adverse actions against supervisory employees who commit prohibited personnel actions. 

Sec. 8. Direct hiring authority for medical center directors and VISN directors. 

Sec. 9. Time periods for review of adverse actions with respect to certain employees. 

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

9 Except as otherwise expressly provided, whenever in 

10 this Act an amendment or repeal is expressed in terms 

11 of an amendment to, or repeal of, a section or other provi12 sion, the reference shall be considered to be made to a 

13 section or other provision of title 38, United States Code. 

14 SEC. 3. REMOVAL, DEMOTION, AND SUSPENSION OF EM15 PLOYEES BASED ON PERFORMANCE OR MIS16 CONDUCT. 

17 (a) IN GENERAL.—Subchapter I of chapter 7 is 

18 amended by adding at the end the following new section: 


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1 ‘‘§ 719. Employees: removal, demotion, or suspension 

2 based on performance or misconduct 

3 ‘‘(a) IN GENERAL.—The Secretary may remove, de4 mote, or suspend an individual who is an employee of the 

5 Department if the Secretary determines the performance 

6 or misconduct of the individual warrants such removal, de7 motion, or suspension. If the Secretary so removes, de8 motes, or suspends such an individual, the Secretary 

9 may— 

10 ‘‘(1) remove the individual from the civil service 

11 (as defined in section 2101 of title 5); 

12 ‘‘(2) demote the individual by means of a reduc13 tion in grade for which the individual is qualified, 

14 that the Secretary determines is appropriate, and 

15 that reduces the annual rate of pay of the individual; 

16 or 

17 ‘‘(3) suspend the individual. 

18 ‘‘(b) PAY OF CERTAIN DEMOTED INDIVIDUALS.—(1) 

19 Notwithstanding any other provision of law, any individual 

20 subject to a demotion under subsection (a)(2) shall, begin21 ning on the date of such demotion, receive the annual rate 

22 of pay applicable to such grade. 

23 ‘‘(2) An individual so demoted may not be placed on 

24 administrative leave during the period during which an ap25 peal (if any) under this section is ongoing, and may only 

26 receive pay if the individual reports for duty or is approved 


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1 to use accrued unused annual, sick, family medical, mili2 tary, or court leave. If an individual so demoted does not 

3 report for duty or receive approval to use accrued unused 

4 leave, such individual shall not receive pay or other bene5 fits pursuant to subsection (e)(5). 

6 ‘‘(c) NOTICE TO CONGRESS.—(1) Not later than 30 

7 days after removing, demoting, or suspending an indi8 vidual employed in a senior executive position under sub9 section (a) or after removing, demoting, or suspending an 

10 individual under chapter 74 of this title, the Secretary 

11 shall submit to the Committees on Veterans’ Affairs of 

12 the Senate and House of Representatives and to each 

13 Member of Congress representing a district in the State 

14 or territory where the facility where the individual was em15 ployed immediately before being removed, demoted, or sus16 pended is located notice in writing of such removal, demo17 tion, or suspension. Such notice shall include the job title 

18 of the individual, the location where the individual was em19 ployed immediately before being removed, demoted, or sus20 pended, the proposed action, and the reason for such re21 moval, demotion, or suspension. 

22 ‘‘(2) Not later than 30 days after the last day of a 

23 fiscal year, the Secretary shall submit to the Committees 

24 on Veterans’ Affairs of the Senate and House of Rep25 resentatives a report listing all removals, demotions, and 


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1 suspensions under this section or under chapter 74 of this 

2 title during such fiscal year. Each such report shall in3 clude the job title of each individual removed, demoted, 

4 or suspended, the location where the individual was em5 ployed immediately before being so removed, demoted or 

6 suspended, the proposed action, and the reason for such 

7 removal, demotion, or suspension. 

8 ‘‘(3) In this subsection, the term ‘senior executive po9 sition’ means, with respect to a career appointee (as that 

10 term is defined in section 3132(a)(4) of title 5), a Senior 

11 Executive Service position (as such term is defined in sec12 tion 3132(a)(2) of title 5). 

13 ‘‘(d) PROCEDURE.—(1) Subsection (b) of section 

14 7513 of title 5 shall apply with respect to a removal, demo15 tion, or suspension under this section, except that the pe16 riod for notice and response, which includes the advance 

17 notice period required by paragraph (1) of such subsection 

18 and the response period required by paragraph (2) of such 

19 subsection, shall not exceed a total of 10 business days. 

20 Subsection (c) of such section and section 7121 of such 

21 title shall not apply with respect to such a removal, demo22 tion, or suspension. 

23 ‘‘(2) The Secretary shall issue a final decision with 

24 respect to a removal, demotion, or suspension under this 

25 section— 


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1 ‘‘(A) in the case of a proposed removal, demo2 tion, or suspension to which an individual responds 

3 under paragraph (1), not later than five business 

4 days after receiving the response of the individual; 

5 or 

6 ‘‘(B) in the case of a proposed removal, demo7 tion, or suspension to which an individual does not 

8 respond, not later than 15 business days after the 

9 Secretary provides notice to the individual under 

10 paragraph (1). 

11 ‘‘(3) The procedures under chapter 43 of title 5 shall 

12 not apply to a removal, demotion, or suspension under this 

13 section. 

14 ‘‘(4)(A) Subject to subparagraph (B) and subsection 

15 (e), any removal, demotion, or suspension under sub16 section (a) may be appealed to the Merit Systems Protec17 tion Board, which shall refer such appeal to an adminis18 trative judge pursuant to section 7701(b)(1) of title 5. 

19 ‘‘(B) An appeal under subparagraph (A) of a re20 moval, demotion, or suspension may only be made if such 

21 appeal is made not later than 7 days after the date of 

22 such removal, demotion, or suspension. 

23 ‘‘(e) EXPEDITED REVIEW.—(1) Upon receipt of an 

24 appeal under subsection (d)(4)(A), the administrative 

25 judge shall expedite any such appeal under such section 


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1 and, in any such case, shall issue a final and complete 

2 decision not later than 45 business days after the date 

3 of the appeal. 

4 ‘‘(2) Notwithstanding section 7701(c)(1)(B) of title 

5 5, the administrative judge shall uphold the decision of 

6 the Secretary to remove, demote, or suspend an employee 

7 under subsection (a) if the decision is supported by sub8 stantial evidence. If the decision of the Secretary is sup9 ported by substantial evidence, the administrative judge 

10 shall not mitigate the penalty prescribed by the Secretary. 

11 ‘‘(3)(A) The decision of the administrative judge 

12 under paragraph (1) may be appealed to the Merit Sys13 tems Protection Board. 

14 ‘‘(B) An appeal under subparagraph (A) of a decision 

15 of an administrative judge may only be made if such ap16 peal is made not later than 7 business days after the date 

17 of the decision of the administrative judge. 

18 ‘‘(4) In any case in which the administrative judge 

19 cannot issue a decision in accordance with the 45-day re20 quirement under paragraph (1), the Merit Systems Pro21 tection Board shall, not later than 14 business days after 

22 the expiration of the 45-day period, submit to the Commit23 tees on Veterans’ Affairs of the Senate and House of Rep24 resentatives a report that explains the reasons why a deci25 sion was not issued in accordance with such requirement. 


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1 ‘‘(5)(A) A decision of the Merit Systems Protection 

2 Board under paragraph (3) may be appealed to the United 

3 States Court of Appeals for the Federal Circuit pursuant 

4 to section 7703 of title 5. 

5 ‘‘(B) An appeal under subparagraph (A) of a decision 

6 of the Merit Systems Protection Board may only be made 

7 if such appeal is made not later than 7 business days after 

8 the date of the decision of the Board. 

9 ‘‘(C) Any decision by such Court shall be in compli10 ance with section 7462(f)(2) of this title. 

11 ‘‘(6) The Merit Systems Protection Board may not 

12 stay any removal, demotion, under this section. 

13 ‘‘(7) During the period beginning on the date on 

14 which an individual appeals a removal from the civil serv15 ice under subsection (d) and ending on the date that the 

16 United States Court of Appeals for the Federal Circuit 

17 issues a final decision on such appeal, such individual may 

18 not receive any pay, awards, bonuses, incentives, allow19 ances, differentials, student loan repayments, special pay20 ments, or benefits related to the employment of the indi21 vidual by the Department. 

22 ‘‘(8) To the maximum extent practicable, the Sec23 retary shall provide to the Merit Systems Protection 

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1 essary to ensure an appeal under this subsection is expe2 dited. 

3 ‘‘(9) If an employee prevails on appeal under this sec4 tion, the employee shall be entitled to backpay (as pro5 vided in section 5596 of title 5). 

6 ‘‘(10) This subsection shall supercede any collective 

7 bargaining agreement to the extent that such an agree8 ment conflicts with this subsection. 

9 ‘‘(f) WHISTLEBLOWER PROTECTION.—(1) In the 

10 case of an individual seeking corrective action (or on be11 half of whom corrective action is sought) from the Office 

12 of Special Counsel based on an alleged prohibited per13 sonnel practice described in section 2302(b) of title 5, the 

14 Secretary may not remove, demote, or suspend such indi15 vidual under subsection (a) without the approval of the 

16 Special Counsel under section 1214(f) of title 5. 

17 ‘‘(2) In the case of an individual who has filed a whis18 tleblower complaint, as such term is defined in section 731 

19 of this title, the Secretary may not remove, demote, or 

20 suspend such individual under subsection (a) until a final 

21 decision with respect to the whistleblower complaint has 

22 been made. 

23 ‘‘(g) TERMINATION OF INVESTIGATIONS BY OFFICE

24 OF SPECIAL COUNSEL.—Notwithstanding any other provi25 sion of law, the Special Counsel (established by section 


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1 1211 of title 5) may terminate an investigation of a pro2 hibited personnel practice alleged by an employee or 

3 former employee of the Department after the Special 

4 Counsel provides to the employee or former employee a 

5 written statement of the reasons for the termination of 

6 the investigation. Such statement may not be admissible 

7 as evidence in any judicial or administrative proceeding 

8 without the consent of such employee or former employee. 

9 ‘‘(h) VACANCIES.—In the case of an individual who 

10 is removed or demoted under subsection (a), to the max11 imum extent feasible, the Secretary shall fill the vacancy 

12 arising as a result of such removal or demotion. 

13 ‘‘(i) DEFINITIONS.—In this section: 

14 ‘‘(1) The term ‘individual’ means an individual 

15 occupying a position at the Department but does not 

16 include— 

17 ‘‘(A) an individual appointed pursuant to 

18 section 7306, 7401(1), or 7405 of this title; 

19 ‘‘(B) an individual who has not completed 

20 a probationary or trial period; or 

21 ‘‘(C) a political appointee. 

22 ‘‘(2) The term ‘suspend’ means the placing of 

23 an employee, for disciplinary reasons, in a temporary 

24 status without duties and pay for a period in excess 

25 of 14 days. 


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1 ‘‘(3) The term ‘grade’ has the meaning given 

2 such term in section 7511(a) of title 5. 

3 ‘‘(4) The term ‘misconduct’ includes neglect of 

4 duty, malfeasance, or failure to accept a directed re5 assignment or to accompany a position in a transfer 

6 of function. 

7 ‘‘(5) The term ‘political appointee’ means an in8 dividual who is— 

9 ‘‘(A) employed in a position described 

10 under sections 5312 through 5316 of title 5 

11 (relating to the Executive Schedule); 

12 ‘‘(B) a limited term appointee, limited 

13 emergency appointee, or noncareer appointee in 

14 the Senior Executive Service, as defined under 

15 paragraphs (5), (6), and (7), respectively, of 

16 section 3132(a) of title 5; or 

17 ‘‘(C) employed in a position of a confiden18 tial or policy-determining character under 

19 schedule C of subpart C of part 213 of title 5 

20 of the Code of Federal Regulations.’’. 

21 (b) REPEAL OF SUPERCEDED PROVISION OF LAW.— 

22 (1) IN GENERAL.—Section 713 of title 38, 

23 United States Code, is hereby repealed. 


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1 (2) CLERICAL AMENDMENT.—The table of sec2 tions at the beginning of chapter 7 is amended by 

3 striking the item relating to section 713. 

4 (c) CLERICAL AND CONFORMING AMENDMENTS.— 

5 (1) CLERICAL.—The table of sections at the be6 ginning of chapter 7 is amended by inserting after 

7 the item relating to section 717 the following new 

8 item: 

‘‘719. Employees: removal, demotion, or suspension based on performance or 

misconduct.’’. 

9 (2) CONFORMING.—Section 4303(f) of title 5, 

10 United States Code, is amended— 

11 (A) by striking ‘‘or’’ at the end of para12 graph (2); 

13 (B) by striking the period at the end of 

14 paragraph (3) and inserting ‘‘, or’’; and 

15 (C) by adding at the end the following: 

16 ‘‘(4) any removal or demotion under section 

17 719 of title 38.’’. 

18 (d) TEMPORARY EXEMPTION FROM CERTAIN LIMI19 TATION ON INITIATION FROM REMOVAL FROM SENIOR

20 EXECUTIVE SERVICE.—During the 120-day period begin21 ning on the date of enactment of this Act, an action to 

22 remove an individual from the Senior Executive Service 

23 at the Department of Veterans Affairs pursuant to this 

24 section may be initiated, notwithstanding section 3592(b) 


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1 of title 5, United States Code, or any other provision of 

2 law. 

3 SEC. 4. REDUCTION OF BENEFITS FOR DEPARTMENT OF 

4 VETERANS AFFAIRS EMPLOYEES CONVICTED 

5 OF CERTAIN CRIMES. 

6 (a) REDUCTION OF BENEFITS.— 

7 (1) IN GENERAL.—Subchapter I of chapter 7 is 

8 further amended by inserting after section 719, as 

9 added by section 3, the following new section: 

10 ‘‘§ 721. Reduction of benefits of employees convicted 

11 of certain crimes 

12 ‘‘(a) REDUCTION OF ANNUITY FOR REMOVED EM13 PLOYEE.—(1) The Secretary shall order that the covered 

14 service of an employee of the Department removed from 

15 a position for performance or misconduct under section 

16 719 or 7461 of this title or any other provision of law 

17 shall not be taken into account for purposes of calculating 

18 an annuity with respect to such individual under chapter 

19 83 or chapter 84 of title 5, if— 

20 ‘‘(A) the Secretary determines that the indi21 vidual is convicted of a felony that influenced the in22 dividual’s performance while employed in the posi23 tion; 

24 ‘‘(B) before such order is made, the individual 

25 is afforded— 


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1 ‘‘(i) notice of the proposed order; and 

2 ‘‘(ii) an opportunity to respond to the pro3 posed order by not later than ten business days 

4 following receipt of such notice; and 

5 ‘‘(C) the Secretary issues the order— 

6 ‘‘(i) in the case of a proposed order to 

7 which an individual responds under subpara8 graph (B)(ii), not later than five business days 

9 after receiving the response of the individual; or 

10 ‘‘(ii) in the case of a proposed order to 

11 which an individual does not respond, not later 

12 than 15 business days after the Secretary pro13 vides notice to the individual under subpara14 graph (B)(i). 

15 ‘‘(2) Upon the issuance of an order by the Secretary 

16 under paragraph (1), the individual shall have an oppor17 tunity to appeal the order to the Director of the Office 

18 of Personnel Management before the date that is seven 

19 business days after the date of such issuance. 

20 ‘‘(3) The Director of the Office of Personnel Manage21 ment shall make a final decision with respect to an appeal 

22 under paragraph (2) within 30 business days of receiving 

23 the appeal. 

24 ‘‘(b) REDUCTION OF ANNUITY FOR RETIRED EM25 PLOYEE.—(1) The Secretary may order that the covered 


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1 service of an individual who is removed for performance 

2 or misconduct under section 719 or 7461 of this title or 

3 any other provision of law but who leaves employment at 

4 the Department prior to the issuance of a final decision 

5 with respect to such action shall not be taken into account 

6 for purposes of calculating an annuity with respect to such 

7 individual under chapter 83 or chapter 84 of title 5, if— 

8 ‘‘(A) the Secretary determines that the indi9 vidual is convicted of a felony that influenced the in10 dividual’s performance while employed in the posi11 tion; 

12 ‘‘(B) before such order is made, the individual 

13 is afforded— 

14 ‘‘(i) notice of the proposed order; and 

15 ‘‘(ii) opportunity to respond to the pro16 posed order by not later than ten business days 

17 following receipt of such notice; and 

18 ‘‘(C) the Secretary issues the order— 

19 ‘‘(i) in the case of a proposed order to 

20 which an individual responds under subpara21 graph (B)(ii), not later than five business days 

22 after receiving the response of the individual; or 

23 ‘‘(ii) in the case of a proposed order to 

24 which an individual does not respond, not later 

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1 vides notice to the individual under subpara2 graph (B)(i). 

3 ‘‘(2) Upon the issuance of an order by the Secretary 

4 under paragraph (1), the individual shall have an oppor5 tunity to appeal the order to the Director of the Office 

6 of Personnel Management before the date that is seven 

7 business days after the date of such issuance. 

8 ‘‘(3) The Director of the Office of Personnel Manage9 ment shall make a final decision with respect to an appeal 

10 under paragraph (2) within 30 business days of receiving 

11 the appeal. 

12 ‘‘(c) ADMINISTRATIVE REQUIREMENTS.—Not later 

13 than 37 business days after the Secretary issues a final 

14 order under subsection (a) or (b), the Director of the Of15 fice of Personnel Management shall recalculate the annu16 ity of the individual. 

17 ‘‘(d) LUMP-SUM ANNUITY CREDIT.—Any individual 

18 with respect to whom an annuity is reduced under sub19 section (a) or (b) shall be entitled to be paid so much of 

20 such individual’s lump-sum credit as is attributable to the 

21 period of covered service. 

22 ‘‘(e) SPOUSE OR CHILDREN EXCEPTION.—The Sec23 retary, in consultation with the Office of Personnel Man24 agement, shall prescribe regulations that may provide for 

25 the payment to the spouse or children of any individual 


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1 referred to in subsection (a) or (b) of any amounts which 

2 (but for this subsection) would otherwise have been non3 payable by reason of such subsections. Any such regula4 tions shall be consistent with the requirements of sections 

5 8332(o)(5) and 8411(l)(5) of title 5, as the case may be. 

6 ‘‘(f) DEFINITIONS.—In this section: 

7 ‘‘(1) The term ‘covered service’ means, with re8 spect to an individual subject to a removal for per9 formance or misconduct under section 719 or 7461 

10 of this title or any other provision of law, the period 

11 of service beginning on the date that the Secretary 

12 determines under such applicable provision that the 

13 individual engaged in activity that gave rise to such 

14 action and ending on the date that the individual is 

15 removed from or leaves a position of employment at 

16 the Department prior to the issuance of a final deci17 sion with respect to such action. 

18 ‘‘(2) The term ‘lump-sum credit’ has the mean19 ing given such term in section 8331(8) or section 

20 8401(19) of title 5, as the case may be. 

21 ‘‘(3) The term ‘service’ has the meaning given 

22 such term in section 8331(12) or section 8401(26) 

23 of title 5, as the case may be.’’. 

24 (2) CLERICAL AMENDMENT.—The table of sec25 tions at the beginning of chapter 7 is amended by 


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1 inserting after the item relating to section 719, as 

2 added by section 3, the following new item: 

‘‘721. Reduction of benefits of employees convicted of certain crimes.’’. 

3 (b) APPLICATION.—Section 721 of title 38, United 

4 States Code, as added by subsection (a)(1), shall apply 

5 to any action of removal of an employee of the Department 

6 of Veterans Affairs under section 719 or 7461 of this title 

7 or any other provision of law, commencing on or after the 

8 date of the enactment of this Act. 

9 SEC. 5. AUTHORITY TO RECOUP BONUSES OR AWARDS 

10 PAID TO EMPLOYEES OF DEPARTMENT OF 

11 VETERANS AFFAIRS. 

12 (a) IN GENERAL.—Subchapter I of chapter 7 is fur13 ther amended by inserting after section 721, as added by 

14 section 4, the following new section: 

15 ‘‘§ 723. Recoupment of bonuses or awards paid to em16 ployees of Department 

17 ‘‘(a) IN GENERAL.—Notwithstanding any other pro18 vision of law, the Secretary may issue an order directing 

19 an employee of the Department to repay the amount, or 

20 a portion of the amount, of any award or bonus paid to 

21 the employee under title 5, including under chapter 45 or 

22 53 of such title, or this title if— 

23 ‘‘(1) the Secretary determines that the indi24 vidual engaged in misconduct or poor performance 

25 prior to payment of the award or bonus, and that 


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1 such award or bonus would not have been paid, in 

2 whole or in part, had the misconduct or poor per3 formance been known prior to payment; 

4 ‘‘(2) before such repayment, the employee is af5 forded— 

6 ‘‘(A) notice of the proposed order; and 

7 ‘‘(B) an opportunity to respond to the pro8 posed order by not later than ten business days 

9 after the receipt of such notice; and 

10 ‘‘(3) the Secretary issues the order— 

11 ‘‘(A) in the case of a proposed order to 

12 which an individual responds under paragraph 

13 (2)(B), not later than five business days after 

14 receiving the response of the individual; or 

15 ‘‘(B) in the case of a proposed order to 

16 which an individual does not respond, not later 

17 than 15 business days after the Secretary pro18 vides notice to the individual under paragraph 

19 (2)(A). 

20 ‘‘(b) APPEALS.—Upon the issuance of an order by 

21 the Secretary under subsection (a), the individual shall 

22 have an opportunity to appeal the order to another depart23 ment or agency of the Federal Government before the date 

24 that is seven business days after the date of such issuance. 


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1 ‘‘(c) FINAL DECISIONS.—The head of the applicable 

2 department or agency of the Federal Government shall 

3 make a final decision with respect to an appeal under sub4 section (b) within 30 business days after receiving such 

5 appeal.’’. 

6 (b) CLERICAL AMENDMENT.—The table of sections 

7 at the beginning of such chapter, as amended by section 

8 4, is amended by inserting after the item relating to sec9 tion 721, as added by section 4(a)(2), the following new 

10 item: 

‘‘723. Recoupment of bonuses or awards paid to employees of Department.’’. 

11 (c) EFFECTIVE DATE.—Section 723 of title 38, 

12 United States Code, as added by subsection (a), shall 

13 apply with respect to an award or bonus paid by the Sec14 retary of Veterans Affairs to an employee of the Depart15 ment of Veterans Affairs on or after the date of the enact16 ment of this Act. 

17 (d) CONSTRUCTION.—Nothing in this Act or the 

18 amendments made by this Act may be construed to modify 

19 the certification issued by the Office of Personnel Manage20 ment and the Office of Management and Budget regarding 

21 the performance appraisal system of the Senior Executive 

22 Service of the Department of Veterans Affairs. 


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1 SEC. 6. AUTHORITY TO RECOUP RELOCATION EXPENSES 

2 PAID TO OR ON BEHALF OF EMPLOYEES OF 

3 DEPARTMENT OF VETERANS AFFAIRS. 

4 (a) IN GENERAL.—Subchapter I of chapter 7 is fur5 ther amended by adding at the end the following new sec6 tion: 

7 ‘‘§ 725. Recoupment of relocation expenses paid on 

8 behalf of employees of Department 

9 ‘‘(a) IN GENERAL.—Notwithstanding any other pro10 vision of law, the Secretary may issue an order directing 

11 an employee of the Department to repay the amount, or 

12 a portion of the amount, paid to or on behalf of the em13 ployee under title 5 for relocation expenses, including any 

14 expenses under section 5724 or 5724a of such title, or 

15 this title if— 

16 ‘‘(1) the Secretary determines that relocation 

17 expenses were not lawfully authorized or that the 

18 employee committed an act of fraud, waste, or mal19 feasance that influenced the authorization of the re20 location expenses; 

21 ‘‘(2) before such repayment, the employee is af22 forded— 

23 ‘‘(A) notice of the proposed order; and 

24 ‘‘(B) an opportunity to respond to the pro25 posed order not later than ten business days 

26 following the receipt of such notice; and 


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1 ‘‘(3) the Secretary issues the order— 

2 ‘‘(A) in the case of a proposed order to 

3 which an individual responds under paragraph 

4 (2)(B), not later than five business days after 

5 receiving the response of the individual; or 

6 ‘‘(B) in the case of a proposed order to 

7 which an individual does not respond, not later 

8 than 15 business days after the Secretary pro9 vides notice to the individual under paragraph 

10 (2)(A). 

11 ‘‘(b) APPEALS.—Upon the issuance of an order by 

12 the Secretary under subsection (a), the individual shall 

13 have an opportunity to appeal the order to another depart14 ment or agency of the Federal Government before the date 

15 that is seven business days after the date of such issuance. 

16 ‘‘(c) FINAL DECISIONS.—The head of the applicable 

17 department or agency of the Federal Government shall 

18 make a final decision with respect to an appeal under sub19 section (b) within 30 days after receiving such appeal.’’. 

20 (b) CLERICAL AMENDMENT.—The table of sections 

21 at the beginning of such chapter is further amended by 

22 inserting after the item relating to section 723, as added 

23 by section 5(b), the following new item: 

‘‘725. Recoupment of relocation expenses paid to or on behalf of employees of 

Department.’’. 


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1 (c) EFFECTIVE DATE.—Section 725 of title 38, 

2 United States Code, as added by subsection (a), shall 

3 apply with respect to an amount paid by the Secretary 

4 of Veterans Affairs to or on behalf of an employee of the 

5 Department of Veterans Affairs for relocation expenses on 

6 or after the date of the enactment of this Act. 

7 SEC. 7. TIME PERIOD FOR RESPONSE TO NOTICE OF AD8 VERSE ACTIONS AGAINST SUPERVISORY EM9 PLOYEES WHO COMMIT PROHIBITED PER10 SONNEL ACTIONS. 

11 Section 733(a)(2)(B) is amended— 

12 (1) in clause (i), by striking ‘‘14 days’’ and in13 serting ‘‘10 days’’; and 

14 (2) in clause (ii), by striking ‘‘14-day period’’ 

15 and inserting ‘‘10-day period’’. 

16 SEC. 8. DIRECT HIRING AUTHORITY FOR MEDICAL CENTER 

17 DIRECTORS AND VISN DIRECTORS. 

18 (a) IN GENERAL.—Section 7401 is amended by add19 ing at the end the following new paragraph: 

20 ‘‘(4) Medical center directors and directors of 

21 Veterans Integrated Service Networks with dem22 onstrated ability in the medical profession, in health 

23 care administration, or in health care fiscal manage24 ment.’’. 


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1 (b) CONFORMING AMENDMENT.—Section 7404(a)(1) 

2 is amended by inserting ‘‘and 7401(4)’’ after ‘‘7306’’. 

3 SEC. 9. TIME PERIODS FOR REVIEW OF ADVERSE ACTIONS 

4 WITH RESPECT TO CERTAIN EMPLOYEES. 

5 (a) PHYSICIANS, DENTISTS, PODIATRISTS, CHIRO6 PRACTORS, OPTOMETRISTS, REGISTERED NURSES, PHY7 SICIAN ASSISTANTS, AND EXPANDED-FUNCTION DENTAL

8 AUXILIARIES.—Section 7461(b)(2) is amended to read as 

9 follows: 

10 ‘‘(2) In any case other than a case described in para11 graph (1) that involves or includes a question of profes12 sional conduct or competence in which a major adverse 

13 action was not taken, such an appeal shall be made 

14 through Department grievance procedures under section 

15 7463 of this title.’’. 

16 (b) MAJOR ADVERSE ACTIONS INVOLVING PROFES17 SIONAL CONDUCT OR COMPETENCE.—Section 7462 is 

18 amended— 

19 (1) in subsection (b)— 

20 (A) in paragraph (1)— 

21 (i) in subparagraph (A), by striking 

22 ‘‘At least 30’’ and inserting ‘‘Ten busi23 ness’’; and 

24 (ii) in subparagraph (B)— 


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1 (I) by striking ‘‘A reasonable 

2 time, but not less than seven days’’ 

3 and inserting ‘‘The opportunity, with4 in the ten-day notice period’’; and 

5 (II) by striking ‘‘orally and’’; 

6 (B) in paragraph (3)— 

7 (i) by striking ‘‘(A) If a proposed ad8 verse action covered by this section is not 

9 withdrawn’’ and inserting ‘‘After consid10 ering the employee’s answer, if any’’; 

11 (ii) by striking ‘‘21 days’’ and insert12 ing ‘‘5 business days’’; 

13 (iii) by striking ‘‘answer. The decision 

14 shall include a statement of’’ and inserting 

15 ‘‘answer stating’’; and 

16 (iv) by striking subparagraph (B); 

17 and 

18 (C) in paragraph (4)— 

19 (i) by striking ‘‘(A) The Secretary’’ 

20 and all that follows through ‘‘(B) The Sec21 retary’’ and inserting ‘‘The Secretary’’; 

22 and 

23 (ii) by striking ‘‘30 days’’ and insert24 ing ‘‘7 business days’’; 

25 (2) in subsection (c)— 


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1 (A) in paragraph (3), by inserting ‘‘the 

2 hearing must be concluded not later than 30 

3 business days after the date on which the ap4 peal is filed, and’’ after ‘‘If such a hearing is 

5 held,’’; and 

6 (B) in paragraph (4)— 

7 (i) by striking ‘‘45 days’’ and insert8 ing ‘‘15 business days’’; and 

9 (ii) by striking ‘‘120 days’’ and insert10 ing ‘‘45 business days’’; and 

11 (3) in subsection (d)(1), by striking ‘‘90 days’’ 

12 and inserting ‘‘15 business days’’. 

13 (c) OTHER ADVERSE ACTIONS.—Section 7463 is 

14 amended— 

15 (1) by striking subsection (b) and redesignating 

16 subsections (c) through (e) as subsections (b) 

17 through (d), respectively; and 

18 (2) in subsection (b)(2), as so redesignated— 

19 (A) in subparagraph (A), by striking ‘‘an 

20 advance’’ and inserting ‘‘ten business days’’; 

21 and 

22 (B) in subparagraph (B)— 

23 (i) by striking ‘‘a reasonable time’’ 

24 and inserting ‘‘the opportunity, within the 

25 ten business day notice period,’’; and 


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1 (ii) by striking ‘‘orally and’’. 


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Union Calendar No. 16 

115TH CONGRESS 

1ST SESSION H. R. 1259 

[Report No. 115–34, Part I] 

A BILL 

To amend title 38, United States Code, to provide 

formance or misconduct, and for other purposes. Department of Veterans Affairs based on perfor the removal or demotion of employees of the 

MARCH 10, 2017 

Reported from the Committee on Veterans’ Affairs 

MARCH 10, 2017 

The Committee on Oversight and Government Reform 

printed House on the State of the Union and ordered to be discharged; committed to the Committee of the Whole 


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