IIB 

115TH CONGRESS 

1ST SESSION H. R. 1259 

IN THE SENATE OF THE UNITED STATES 

MARCH 21, 2017 

Received; read twice and referred to the Committee on Veterans’ Affairs 

AN ACT 

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. 

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


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

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

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

5 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. 

Sec. 10. Annual report on performance awards and bonuses awarded to certain 

high-level employees of the Department of Veterans Affairs. 

Sec. 11. Accountability of supervisors at Department of Veterans Affairs for 

addressing performance of employees. 

Sec. 12. Improvement of training for supervisors. 

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

7 Except as otherwise expressly provided, whenever in 

8 this Act an amendment or repeal is expressed in terms 

9 of an amendment to, or repeal of, a section or other provi10 sion, the reference shall be considered to be made to a 

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

12 SEC. 3. REMOVAL, DEMOTION, AND SUSPENSION OF EM13 PLOYEES BASED ON PERFORMANCE OR MIS14 CONDUCT. 

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

16 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 

24 Board such information and assistance as may be necVerDate Sep 11 2014 23:02 Mar 21, 2017 Jkt 069200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1259.RFS H1259

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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 or 

14 section 733(c) of this title, the Secretary may not remove, 

15 demote, or suspend such individual under subsection (a) 

16 without the approval of the Special Counsel under section 

17 1214(f) of title 5. 

18 ‘‘(2) In the case of an individual who has filed a whis19 tleblower complaint, as such term is defined in section 731 

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

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

22 decision with respect to the whistleblower complaint has 

23 been made. 

24 ‘‘(g) TERMINATION OF INVESTIGATIONS BY OFFICE

25 OF SPECIAL COUNSEL.—Notwithstanding any other proviVerDate Sep 11 2014 23:02 Mar 21, 2017 Jkt 069200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1259.RFS H1259

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1 sion of law, the Special Counsel (established by section 

2 1211 of title 5) may terminate an investigation of a pro3 hibited personnel practice alleged by an employee or 

4 former employee of the Department after the Special 

5 Counsel provides to the employee or former employee a 

6 written statement of the reasons for the termination of 

7 the investigation. Such statement may not be admissible 

8 as evidence in any judicial or administrative proceeding 

9 without the consent of such employee or former employee. 

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

11 is removed or demoted under subsection (a), to the max12 imum extent feasible, the Secretary shall fill the vacancy 

13 arising as a result of such removal or demotion. 

14 ‘‘(i) SEMI-ANNUAL REPORT ON TRANSFERRED EM15 PLOYEES.—The Secretary shall submit to the Committees 

16 on Veterans’ Affairs of the Senate and House of Rep17 resentatives semi-annual reports on senior executive em18 ployees who are transferred within the Department. Each 

19 such report shall include, for each such senior executive 

20 employee transferred during the period covered by the re21 port, the reason for the transfer and any costs associated 

22 with the transfer. 

23 ‘‘(j) DEFINITIONS.—In this section: 


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

2 occupying a position at the Department but does not 

3 include— 

4 ‘‘(A) an individual appointed pursuant to 

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

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

7 a probationary or trial period; or 

8 ‘‘(C) a political appointee. 

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

10 an employee, for disciplinary reasons, in a temporary 

11 status without duties and pay for a period in excess 

12 of 14 days. 

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

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

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

16 duty, malfeasance, or failure to accept a directed re17 assignment or to accompany a position in a transfer 

18 of function. 

19 ‘‘(5) The term ‘political appointee’ means an in20 dividual who is— 

21 ‘‘(A) employed in a position described 

22 under sections 5312 through 5316 of title 5 

23 (relating to the Executive Schedule); 

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

25 emergency appointee, or noncareer appointee in 


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1 the Senior Executive Service, as defined under 

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

3 section 3132(a) of title 5; or 

4 ‘‘(C) employed in a position of a confiden5 tial or policy-determining character under 

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

7 of the Code of Federal Regulations.’’. 

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

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

10 United States Code, is hereby repealed. 

11 (2) CLERICAL AMENDMENT.—The table of sec12 tions at the beginning of chapter 7 is amended by 

13 striking the item relating to section 713. 

14 (c) CLERICAL AND CONFORMING AMENDMENTS.— 

15 (1) CLERICAL.—The table of sections at the be16 ginning of chapter 7 is amended by inserting after 

17 the item relating to section 717 the following new 

18 item: 

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

misconduct.’’. 

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

20 United States Code, is amended— 

21 (A) by striking ‘‘or’’ at the end of para22 graph (2); 

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

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


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

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

3 719 of title 38.’’. 

4 (d) TEMPORARY EXEMPTION FROM CERTAIN LIMI5 TATION ON INITIATION FROM REMOVAL FROM SENIOR

6 EXECUTIVE SERVICE.—During the 120-day period begin7 ning on the date of enactment of this Act, an action to 

8 remove an individual from the Senior Executive Service 

9 at the Department of Veterans Affairs pursuant to this 

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

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

12 law. 

13 SEC. 4. REDUCTION OF BENEFITS FOR DEPARTMENT OF 

14 VETERANS AFFAIRS EMPLOYEES CONVICTED 

15 OF CERTAIN CRIMES. 

16 (a) REDUCTION OF BENEFITS.— 

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

18 further amended by inserting after section 719, as 

19 added by section 3, the following new section: 

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

21 of certain crimes 

22 ‘‘(a) REDUCTION OF ANNUITY FOR REMOVED EM23 PLOYEE.—(1) The Secretary shall order that the covered 

24 service of an employee of the Department removed from 

25 a position for performance or misconduct under section 


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1 719 or 7461 of this title or any other provision of law 

2 shall not be taken into account for purposes of calculating 

3 an annuity with respect to such individual under chapter 

4 83 or chapter 84 of title 5, if— 

5 ‘‘(A) the Secretary determines that the indi6 vidual is convicted of a felony that influenced the in7 dividual’s performance while employed in the posi8 tion; 

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

10 is afforded— 

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

12 ‘‘(ii) an opportunity to respond to the pro13 posed order by not later than ten business days 

14 following receipt of such notice; and 

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

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

17 which an individual responds under subpara18 graph (B)(ii), not later than five business days 

19 after receiving the response of the individual; or 

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

21 which an individual does not respond, not later 

22 than 15 business days after the Secretary pro23 vides notice to the individual under subpara24 graph (B)(i). 


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

2 under paragraph (1), the individual shall have an oppor3 tunity to appeal the order to the Director of the Office 

4 of Personnel Management before the date that is seven 

5 business days after the date of such issuance. 

6 ‘‘(3) The Director of the Office of Personnel Manage7 ment shall make a final decision with respect to an appeal 

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

9 the appeal. 

10 ‘‘(b) REDUCTION OF ANNUITY FOR RETIRED EM11 PLOYEE.—(1) The Secretary may order that the covered 

12 service of an individual who is removed for performance 

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

14 any other provision of law but who leaves employment at 

15 the Department prior to the issuance of a final decision 

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

17 for purposes of calculating an annuity with respect to such 

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

19 ‘‘(A) the Secretary determines that the indi20 vidual is convicted of a felony that influenced the in21 dividual’s performance while employed in the posi22 tion; 

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

24 is afforded— 

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


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1 ‘‘(ii) opportunity to respond to the pro2 posed order by not later than ten business days 

3 following receipt of such notice; and 

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

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

6 which an individual responds under subpara7 graph (B)(ii), not later than five business days 

8 after receiving the response of the individual; or 

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

10 which an individual does not respond, not later 

11 than 15 business days after the Secretary pro12 vides notice to the individual under subpara13 graph (B)(i). 

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

15 under paragraph (1), the individual shall have an oppor16 tunity to appeal the order to the Director of the Office 

17 of Personnel Management before the date that is seven 

18 business days after the date of such issuance. 

19 ‘‘(3) The Director of the Office of Personnel Manage20 ment shall make a final decision with respect to an appeal 

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

22 the appeal. 

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

24 than 37 business days after the Secretary issues a final 

25 order under subsection (a) or (b), the Director of the OfVerDate Sep 11 2014 23:02 Mar 21, 2017 Jkt 069200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H1259.RFS H1259

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1 fice of Personnel Management shall recalculate the annu2 ity of the individual. 

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

4 with respect to whom an annuity is reduced under sub5 section (a) or (b) shall be entitled to be paid so much of 

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

7 period of covered service. 

8 ‘‘(e) SPOUSE OR CHILDREN EXCEPTION.—The Sec9 retary, in consultation with the Office of Personnel Man10 agement, shall prescribe regulations that may provide for 

11 the payment to the spouse or children of any individual 

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

13 (but for this subsection) would otherwise have been non14 payable by reason of such subsections. Any such regula15 tions shall be consistent with the requirements of sections 

16 8332(o)(5) and 8411(l)(5) of title 5, as the case may be. 

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

18 ‘‘(1) The term ‘covered service’ means, with re19 spect to an individual subject to a removal for per20 formance or misconduct under section 719 or 7461 

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

22 of service beginning on the date that the Secretary 

23 determines under such applicable provision that the 

24 individual engaged in activity that gave rise to such 

25 action and ending on the date that the individual is 


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1 removed from or leaves a position of employment at 

2 the Department prior to the issuance of a final deci3 sion with respect to such action. 

4 ‘‘(2) The term ‘lump-sum credit’ has the mean5 ing given such term in section 8331(8) or section 

6 8401(19) of title 5, as the case may be. 

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

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

9 of title 5, as the case may be.’’. 

10 (2) CLERICAL AMENDMENT.—The table of sec11 tions at the beginning of chapter 7 is amended by 

12 inserting after the item relating to section 719, as 

13 added by section 3, the following new item: 

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

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

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

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

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

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

19 date of the enactment of this Act. 

20 SEC. 5. AUTHORITY TO RECOUP BONUSES OR AWARDS 

21 PAID TO EMPLOYEES OF DEPARTMENT OF 

22 VETERANS AFFAIRS. 

23 (a) IN GENERAL.—Subchapter I of chapter 7 is fur24 ther amended by inserting after section 721, as added by 

25 section 4, the following new section: 


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1 ‘‘§ 723. Recoupment of bonuses or awards paid to em2 ployees of Department 

3 ‘‘(a) IN GENERAL.—Notwithstanding any other pro4 vision of law, the Secretary may issue an order directing 

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

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

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

8 53 of such title, or this title if— 

9 ‘‘(1) the Secretary determines that the indi10 vidual engaged in misconduct or poor performance 

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

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

13 whole or in part, had the misconduct or poor per14 formance been known prior to payment; 

15 ‘‘(2) before such repayment, the employee is af16 forded— 

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

18 ‘‘(B) an opportunity to respond to the pro19 posed order by not later than ten business days 

20 after the receipt of such notice; and 

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

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

23 which an individual responds under paragraph 

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

25 receiving the response of the individual; or 


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

2 which an individual does not respond, not later 

3 than 15 business days after the Secretary pro4 vides notice to the individual under paragraph 

5 (2)(A). 

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

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

8 have an opportunity to appeal the order to another depart9 ment or agency of the Federal Government before the date 

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

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

12 department or agency of the Federal Government shall 

13 make a final decision with respect to an appeal under sub14 section (b) within 30 business days after receiving such 

15 appeal.’’. 

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

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

18 4, is amended by inserting after the item relating to sec19 tion 721, as added by section 4(a)(2), the following new 

20 item: 

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

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

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

23 apply with respect to an award or bonus paid by the Sec24 retary of Veterans Affairs to an employee of the DepartVerDate Sep 11 2014 23:02 Mar 21, 2017 Jkt 069200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H1259.RFS H1259

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1 ment of Veterans Affairs on or after the date of the enact2 ment of this Act. 

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

4 amendments made by this Act may be construed to modify 

5 the certification issued by the Office of Personnel Manage6 ment and the Office of Management and Budget regarding 

7 the performance appraisal system of the Senior Executive 

8 Service of the Department of Veterans Affairs. 

9 SEC. 6. AUTHORITY TO RECOUP RELOCATION EXPENSES 

10 PAID TO OR ON BEHALF OF EMPLOYEES OF 

11 DEPARTMENT OF VETERANS AFFAIRS. 

12 (a) IN GENERAL.—Subchapter I of chapter 7 is fur13 ther amended by adding at the end the following new sec14 tion: 

15 ‘‘§ 725. Recoupment of relocation expenses paid to or 

16 on behalf of employees 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, paid to or on behalf of the em21 ployee under title 5 for relocation expenses, including any 

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

23 this title if— 

24 ‘‘(1) the Secretary determines that relocation 

25 expenses were not lawfully authorized or that the 


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1 employee committed an act of fraud, waste, or mal2 feasance that influenced the authorization of the re3 location expenses; 

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 not later than ten business days 

9 following 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 days after receiving such appeal.’’. 

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

6 at the beginning of such chapter is further amended by 

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

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

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

Department.’’. 

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

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

11 apply with respect to an amount paid by the Secretary 

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

13 Department of Veterans Affairs for relocation expenses on 

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

15 SEC. 7. TIME PERIOD FOR RESPONSE TO NOTICE OF AD16 VERSE ACTIONS AGAINST SUPERVISORY EM17 PLOYEES WHO COMMIT PROHIBITED PER18 SONNEL ACTIONS. 

19 Section 733(a)(2)(B) is amended— 

20 (1) in clause (i), by striking ‘‘14 days’’ and in21 serting ‘‘10 days’’; and 

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

23 and inserting ‘‘10-day period’’. 


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1 SEC. 8. DIRECT HIRING AUTHORITY FOR MEDICAL CENTER 

2 DIRECTORS AND VISN DIRECTORS. 

3 (a) IN GENERAL.—Section 7401 is amended by add4 ing at the end the following new paragraph: 

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

6 Veterans Integrated Service Networks with dem7 onstrated ability in the medical profession, in health 

8 care administration, or in health care fiscal manage9 ment.’’. 

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

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

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

13 WITH RESPECT TO CERTAIN EMPLOYEES. 

14 (a) PHYSICIANS, DENTISTS, PODIATRISTS, CHIRO15 PRACTORS, OPTOMETRISTS, REGISTERED NURSES, PHY16 SICIAN ASSISTANTS, AND EXPANDED-FUNCTION DENTAL

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

18 follows: 

19 ‘‘(2) In any case other than a case described in para20 graph (1) that involves or includes a question of profes21 sional conduct or competence in which a major adverse 

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

23 through Department grievance procedures under section 

24 7463 of this title.’’. 


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1 (b) MAJOR ADVERSE ACTIONS INVOLVING PROFES2 SIONAL CONDUCT OR COMPETENCE.—Section 7462 is 

3 amended— 

4 (1) in subsection (b)— 

5 (A) in paragraph (1)— 

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

7 ‘‘At least 30’’ and inserting ‘‘Ten busi8 ness’’; and 

9 (ii) in subparagraph (B)— 

10 (I) by striking ‘‘A reasonable 

11 time, but not less than seven days’’ 

12 and inserting ‘‘The opportunity, with13 in the ten-day notice period’’; and 

14 (II) by striking ‘‘orally and’’; 

15 (B) in paragraph (3)— 

16 (i) by striking ‘‘(A) If a proposed ad17 verse action covered by this section is not 

18 withdrawn’’ and inserting ‘‘After consid19 ering the employee’s answer, if any’’; 

20 (ii) by striking ‘‘21 days’’ and insert21 ing ‘‘5 business days’’; 

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

23 shall include a statement of’’ and inserting 

24 ‘‘answer stating’’; and 


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1 (iv) by striking subparagraph (B); 

2 and 

3 (C) in paragraph (4)— 

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

5 and all that follows through ‘‘(B) The Sec6 retary’’ and inserting ‘‘The Secretary’’; 

7 and 

8 (ii) by striking ‘‘30 days’’ and insert9 ing ‘‘7 business days’’; 

10 (2) in subsection (c)— 

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

12 hearing must be concluded not later than 30 

13 business days after the date on which the ap14 peal is filed, and’’ after ‘‘If such a hearing is 

15 held,’’; and 

16 (B) in paragraph (4)— 

17 (i) by striking ‘‘45 days’’ and insert18 ing ‘‘15 business days’’; and 

19 (ii) by striking ‘‘120 days’’ and insert20 ing ‘‘45 business days’’; and 

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

22 and inserting ‘‘15 business days’’. 

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

24 amended— 


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

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

3 through (d), respectively; and 

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

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

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

7 and 

8 (B) in subparagraph (B)— 

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

10 and inserting ‘‘the opportunity, within the 

11 ten business day notice period,’’; and 

12 (ii) by striking ‘‘orally and’’. 

13 SEC. 10. ANNUAL REPORT ON PERFORMANCE AWARDS AND 

14 BONUSES AWARDED TO CERTAIN HIGH15 LEVEL EMPLOYEES OF THE DEPARTMENT OF 

16 VETERANS AFFAIRS. 

17 (a) IN GENERAL.—Chapter 7 of title 38, United 

18 States Code, is further amended by inserting after section 

19 723, as added by section 5, the following new section: 

20 ‘‘§ 724. Annual report on performance awards and bo21 nuses awarded to certain high-level em22 ployees 

23 ‘‘(a) IN GENERAL.—Not later than 30 days after the 

24 end of each fiscal year, the Secretary shall submit to the 

25 appropriate committees of Congress a report that conVerDate Sep 11 2014 23:02 Mar 21, 2017 Jkt 069200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H1259.RFS H1259

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1 tains, for the most recent fiscal year ending before the 

2 submittal of the report, a description of the performance 

3 awards and bonuses awarded to Regional Office Directors 

4 of the Department, Directors of Medical Centers of the 

5 Department, Directors of Veterans Integrated Service 

6 Networks, and any other individual employed in a senior 

7 executive position. 

8 ‘‘(b) ELEMENTS.—Each report submitted under sub9 section (a) shall include the following with respect to each 

10 performance award or bonus awarded to an individual de11 scribed in such subsection: 

12 ‘‘(1) The amount of each award or bonus. 

13 ‘‘(2) The job title of the individual awarded the 

14 award or bonus. 

15 ‘‘(3) The location where the individual awarded 

16 the award or bonus works. 

17 ‘‘(c) DEFINITIONS.—In this section: 

18 ‘‘(1) The term ‘appropriate committees of Con19 gress’ means— 

20 ‘‘(A) the Committee on Veterans’ Affairs 

21 and the Committee on Appropriations of the 

22 Senate; and 

23 ‘‘(B) the Committee on Veterans’ Affairs 

24 and the Committee on Appropriations of the 

25 House of Representatives. 


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1 ‘‘(2) The term ‘individual’ means— 

2 ‘‘(A) a career appointee (as that term is 

3 defined in section 3132(a)(4) of title 5); or 

4 ‘‘(B) any individual who occupies an ad5 ministrative or executive position and who was 

6 appointed under section 7306(a) or section 

7 7401(1) of this title. 

8 ‘‘(3) The term ‘senior executive position’ 

9 means— 

10 ‘‘(A) with respect to a career appointee (as 

11 that term is defined in section 3132(a)(4) of 

12 title 5), a Senior Executive Service position (as 

13 such term is defined in section 3132(a)(2) of 

14 title 5); and 

15 ‘‘(B) with respect to an individual ap16 pointed under section 7306(a) or section 

17 7401(1) of this title, an administrative or exec18 utive position.’’. 

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

20 at the beginning of chapter 7 of such title is amended by 

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

22 by section 5, the following new item: 

‘‘724. Annual report on performance awards and bonuses awarded to certain 

high-level employees.’’. 


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1 SEC. 11. ACCOUNTABILITY OF SUPERVISORS AT DEPART2 MENT OF VETERANS AFFAIRS FOR ADDRESS3 ING PERFORMANCE OF EMPLOYEES. 

4 (a) IN GENERAL.—The Secretary of Veterans Affairs 

5 shall ensure that, as a part of the annual performance 

6 plan of a supervisor in the Department, the supervisor is 

7 evaluated on the following: 

8 (1) Taking action to address poor performance 

9 and misconduct among the employees that report to 

10 the supervisor. 

11 (2) Taking steps to improve or sustain high lev12 els of employee engagement. 

13 (3) Promoting a positive culture of service 

14 that— 

15 (A) reflects the mission of the Department 

16 and the values of integrity, commitment, advo17 cacy, respect, and excellence; and 

18 (B) emphasizes the greatest degree of per19 formance and conduct. 

20 (b) SUPERVISOR DEFINED.—In this section, the term 

21 ‘‘supervisor’’ has the meaning given such term in section 

22 7103(a) of title 5, United States Code. 

23 SEC. 12. IMPROVEMENT OF TRAINING FOR SUPERVISORS. 

24 (a) IN GENERAL.—The Secretary of Veterans Affairs 

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1 erans Affairs who is employed as a supervisor periodic 

2 training on the following: 

3 (1) The rights of whistleblowers and how to ad4 dress a report by an employee of a hostile work envi5 ronment, reprisal, or harassment. 

6 (2) How to effectively motivate, manage, and 

7 reward the employees who report to the supervisor. 

8 (3) How to effectively manage employees who 

9 are performing at an unacceptable level and access 

10 assistance from the human resources office of the 

11 Department and the Office of the General Counsel 

12 of the Department with respect to those employees. 

13 (b) DEFINITIONS.—In this section: 

14 (1) SUPERVISOR.—The term ‘‘supervisor’’ has 

15 the meaning given such term in section 7103(a) of 

16 title 5, United States Code. 

17 (2) WHISTLEBLOWER.—The term ‘‘whistle18 blower’’ has the meaning given such term in section 

19 323(g) of title 38, United States Code, as added by 

20 section 101. 

Passed the House of Representatives March 16, 

2017. 

Attest: KAREN L. HAAS, 

Clerk. 


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