IIB 
115TH CONGRESS 
1ST SESSION H. R. 1367 
IN THE SENATE OF THE UNITED STATES 
MARCH 21, 2017 
Received; read twice and referred to the Committee on Veterans’ Affairs 
AN ACT 
To improve the authority of the Secretary of Veterans Affairs 
to hire and retain physicians and other employees of 
the Department of Veterans Affairs, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Table of contents. 
Sec. 2. Modification to annual determination of staffing shortages in Veterans 
Health Administration. 
Sec. 3. Executive management fellowship program. 
Sec. 4. Accountability of leaders for managing the Department of Veterans Af-
fairs. 
Sec. 5. Modification to veterans preference. 
Sec. 6. Reemployment of former employees. 
Sec. 7. Recruiting database. 
Sec. 8. Human resources academy. 
Sec. 9. Promotional opportunities for technical experts. 
Sec. 10. Comptroller General study on succession planning. 
Sec. 11. Employment of students and recent graduates. 
Sec. 12. Exit surveys. 
Sec. 13. Encouraging transition of military medical professionals into employ-
ment with Veterans Health Administration. 
Sec. 14. Plan to hire directors of medical centers of Department of Veterans 
Affairs. 
Sec. 15. Recruitment of physicians in Department of Veterans Affairs. 
SEC. 2. MODIFICATION TO ANNUAL DETERMINATION OF 
STAFFING SHORTAGES IN VETERANS HEALTH 
ADMINISTRATION. 
Section 7412(a) of title 38, United States Code, is 
amended— 
(1) by striking ‘‘the five occupations’’ and in-
serting ‘‘at a minimum, the five clinical occupations 
and the five nonclinical occupations’’; and 
(2) by striking ‘‘throughout the Department’’ 
and inserting ‘‘with respect to each medical center of 
the Department,’’. 
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SEC. 3. EXECUTIVE MANAGEMENT FELLOWSHIP PROGRAM. 
(a) FELLOWSHIP PROGRAM.—Chapter 7 of title 38, 
United States Code, is amended by adding at the end the 
following new subchapter: 
‘‘SUBCHAPTER III—EXECUTIVE MANAGEMENT 
FELLOWSHIP PROGRAM 
‘‘§ 741. Executive Management Fellowship Program 
‘‘(a) FELLOWSHIP PROGRAM.—There is in the De-
partment an Executive Management Fellowship Program. 
The purpose of the program shall be to provide— 
‘‘(1) eligible employees of the Veterans Benefits 
Administration and the Veterans Health Administra-
tion with training and experience in the private sec-
tor; and 
‘‘(2) eligible employees of a private-sector entity 
with training and experience in the Department of 
Veterans Affairs. 
‘‘(b) FELLOWSHIP.—(1) A fellowship provided under 
this section is a 1-year fellowship during which— 
‘‘(A) with respect to a Department participant, 
the participant receives training and experience at a 
private-sector entity that is engaged in the adminis-
tration and delivery of health care or other services 
similar to the benefits administered by the Sec-
retary; and 
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‘‘(B) with respect to a private-sector partici-
pant, the participant receives training and experi-
ence at the Veterans Benefits Administration or the 
Veterans Health Administration. 
‘‘(2) The Secretary shall enter into such agreements 
with private-sector entities as are necessary to carry out 
this section. 
‘‘(c) SELECTION OF RECIPIENTS.—(1) In August of 
each year, the Secretary shall select— 
‘‘(A) not fewer than 18 and not more than 30 
eligible employees of the Veterans Benefits Adminis-
tration and the Veterans Health Administration to 
receive a fellowship under this section; and 
‘‘(B) not fewer than 18 and not more than 30 
eligible employees of private-sector entities to receive 
a fellowship under this section. 
‘‘(2) To the extent practicable, the Secretary shall se-
lect eligible employees under subparagraphs (A) and (B) 
of paragraph (1) from among eligible employees who are 
veterans in a manner that is reflective of the demographics 
of the veteran population of the United States and that 
whenever practicable provides a preference to such em-
ployees who represent or service rural areas. 
‘‘(d) ELIGIBLE EMPLOYEES.—For the purposes of 
this section, an eligible employee is— 
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‘‘(1) with respect to an employee of the Vet-
erans Benefits Administration or the Veterans 
Health Administration, an employee who— 
‘‘(A) is compensated at a rate of basic pay 
not less than the minimum rate of basic pay 
payable for grade GS–14 of the General Sched-
ule and not more than either the minimum rate 
of basic pay payable to a member of the Senior 
Executive Service under section 5382 of title 5, 
United States Code, or the minimum rate of 
basic pay payable pursuant to chapter 74 of 
this title, as the case may be; 
‘‘(B) enters into an agreement with the 
Secretary under subsection (e); and 
‘‘(C) submits to the Secretary an applica-
tion containing such information and assur-
ances as the Secretary may require; and 
‘‘(2) with respect to an employee of a private- 
sector entity, an employee who— 
‘‘(A) is employed in a position whose du-
ties and responsibilities are commensurate with 
an employee of the Department described in 
paragraph (1); 
‘‘(B) enters into an agreement with the 
Secretary under subsection (e); and 
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‘‘(C) submits to the Secretary an applica-
tion containing such information and assur-
ances as the Secretary may require. 
‘‘(e) AGREEMENTS.—(1) An agreement between the 
Secretary and a Department participant shall be in writ-
ing, shall be signed by the participant, and shall include 
the following provisions: 
‘‘(A) The Secretary’s agreement to provide the 
participant with a fellowship under this section; 
‘‘(B) The participant’s agreement— 
‘‘(i) to accept the fellowship; 
‘‘(ii) after completion of the fellowship, to 
serve as a full-time employee in the Veterans 
Benefits Administration or the Veterans Health 
Administration for at least 2 years as specified 
in the agreement; and 
‘‘(iii) that, during the 2-year period begin-
ning on the last day of the fellowship, the par-
ticipant will not accept employment in the same 
industry as the industry of the private-sector 
entity at which the participant accepts the fel-
lowship. 
‘‘(C) A provision that any financial obligation of 
the United States arising out of an agreement en-
tered into under this subchapter, and any obligation 
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of the participant which is conditioned on such 
agreement, is contingent upon funds being appro-
priated. 
‘‘(D) A statement of the damages to which the 
United States is entitled under this subchapter for 
the participant’s breach of the agreement. 
‘‘(E) Such other terms as the Secretary deter-
mines are required to be included in the agreement. 
‘‘(2) An agreement between the Secretary and a pri-
vate-sector participant shall be in writing, shall be signed 
by the participant, and shall include the following provi-
sions: 
‘‘(A) The Secretary’s agreement to provide the 
participant with a fellowship under this section. 
‘‘(B) The participant’s agreement to accept the 
fellowship. 
‘‘(C) Such other terms as the Secretary deter-
mines are required to be included in the agreement. 
‘‘(f) TREATMENT OF RECIPIENTS.—(1) A Depart-
ment participant shall be considered an employee of the 
Department for all purposes, including for purposes of re-
ceiving a salary and benefits, and shall remain eligible for 
all promotion and incentive programs otherwise available 
to such an employee. 
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‘‘(2) A private-sector participant shall be considered 
an employee of the private-sector entity that employs the 
participant for all purposes, including for purposes of re-
ceiving a salary and benefits, and during the fellowship 
shall be treated as a contractor of the Department. 
‘‘(g) REPORTS.—Not later than 60 days after com-
pleting a fellowship under this section, a recipient of the 
fellowship shall submit to the Secretary a report on the 
fellowship. Each such report shall describe the duties of 
the recipient during the fellowship and any recommenda-
tions of the recipient for the application by the Secretary 
of industry processes, technologies, and best practices. Not 
later than 7 days after receiving each such report, the Sec-
retary shall submit to the Committees on Veterans’ Affairs 
of the Senate and House of Representatives such report 
without change. 
‘‘(h) DEFINITIONS.—In this section: 
‘‘(1) The term ‘Department participant’ means 
an employee of the Veterans Benefits Administration 
or the Veterans Health Administration who is par-
ticipating in the fellowship under this section. 
‘‘(2) The term ‘private-sector entity’ includes 
an entity operating under a public-private partner-
ship. 
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‘‘(3) The term ‘private-sector participant’ 
means an employee of a private-sector entity who is 
participating in the fellowship under this section.’’. 
(b) DEADLINE
FOR IMPLEMENTATION.—Not later 
than 1 year after the date of the enactment of this Act, 
the Secretary of Veterans Affairs shall implement the Ex-
ecutive Management Fellowship Program required under 
section 741 of title 38, United States Code, as added by 
subsection (a). 
(c) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 7 of title 38, United States 
Code, is amended by adding at the end the following new 
items: 
‘‘SUBCHAPTER III—EXECUTIVE MANAGEMENT FELLOWSHIP PROGRAM 
‘‘741. Executive Management Fellowship Program.’’. 
SEC. 4. ACCOUNTABILITY OF LEADERS FOR MANAGING 
THE DEPARTMENT OF VETERANS AFFAIRS. 
(a) IN GENERAL.—Chapter 7 of title 38, United 
States Code, is amended by inserting after section 717 the 
following new section: 
‘‘§ 719. Annual performance plan for political ap-
pointees 
‘‘(a) IN GENERAL.—The Secretary shall conduct an 
annual performance plan for each political appointee of 
the Department that is similar to the annual performance 
plan conducted for an employee of the Department who 
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