SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘VA Accountability First 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, 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 employ-
ees of Department of Veterans Affairs. 
Sec. 7. Time period for response to notice of adverse actions against super-
visory 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 em-
ployees. 
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. 
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 provi-
sion, the reference shall be considered to be made to a 
section or other provision of title 38, United States Code. 
SEC. 3. REMOVAL, DEMOTION, AND SUSPENSION OF EM-
PLOYEES BASED ON PERFORMANCE OR MIS-
CONDUCT. 
(a) IN GENERAL.—Subchapter I of chapter 7 is 
amended by adding at the end the following new section:
‘‘§ 719. Employees: removal, demotion, or suspension 
based on performance or misconduct 
‘‘(a) IN GENERAL.—The Secretary may remove, de-
mote, or suspend an individual who is an employee of the 
Department if the Secretary determines the performance 
or misconduct of the individual warrants such removal, de-
motion, or suspension. If the Secretary so removes, de-
motes, or suspends such an individual, the Secretary 
may— 
‘‘(1) remove the individual from the civil service 
(as defined in section 2101 of title 5); 
‘‘(2) demote the individual by means of a reduc-
tion in grade for which the individual is qualified, 
that the Secretary determines is appropriate, and 
that reduces the annual rate of pay of the individual; 
or 
‘‘(3) suspend the individual. 
‘‘(b) PAY OF CERTAIN DEMOTED INDIVIDUALS.—(1) 
Notwithstanding any other provision of law, any individual 
subject to a demotion under subsection (a)(2) shall, begin-
ning on the date of such demotion, receive the annual rate 
of pay applicable to such grade. 
‘‘(2) An individual so demoted may not be placed on 
administrative leave during the period during which an ap-
peal (if any) under this section is ongoing, and may only 
receive pay if the individual reports for duty or is approved
to use accrued unused annual, sick, family medical, mili-
tary, or court leave. If an individual so demoted does not 
report for duty or receive approval to use accrued unused 
leave, such individual shall not receive pay or other bene-
fits pursuant to subsection (e)(5). 
‘‘(c) NOTICE TO CONGRESS.—(1) Not later than 30 
days after removing, demoting, or suspending an indi-
vidual employed in a senior executive position under sub-
section (a) or after removing, demoting, or suspending an 
individual under chapter 74 of this title, the Secretary 
shall submit to the Committees on Veterans’ Affairs of 
the Senate and House of Representatives and to each 
Member of Congress representing a district in the State 
or territory where the facility where the individual was em-
ployed immediately before being removed, demoted, or sus-
pended is located notice in writing of such removal, demo-
tion, or suspension. Such notice shall include the job title 
of the individual, the location where the individual was em-
ployed immediately before being removed, demoted, or sus-
pended, the proposed action, and the reason for such re-
moval, demotion, or suspension. 
‘‘(2) Not later than 30 days after the last day of a 
fiscal year, the Secretary shall submit to the Committees 
on Veterans’ Affairs of the Senate and House of Rep-
resentatives a report listing all removals, demotions, and
suspensions under this section or under chapter 74 of this 
title during such fiscal year. Each such report shall in-
clude the job title of each individual removed, demoted, 
or suspended, the location where the individual was em-
ployed immediately before being so removed, demoted or 
suspended, the proposed action, and the reason for such 
removal, demotion, or suspension. 
‘‘(3) In this subsection, the term ‘senior executive po-
sition’ means, with respect to a career appointee (as that 
term is defined in section 3132(a)(4) of title 5), a Senior 
Executive Service position (as such term is defined in sec-
tion 3132(a)(2) of title 5). 
‘‘(d) PROCEDURE.—(1) Subsection (b) of section 
7513 of title 5 shall apply with respect to a removal, demo-
tion, or suspension under this section, except that the pe-
riod 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 10 business days. 
Subsection (c) of such section and section 7121 of such 
title shall not apply with respect to such a removal, demo-
tion, or suspension. 
‘‘(2) The Secretary shall issue a final decision with 
respect to a removal, demotion, or suspension under this 
section—
‘‘(A) in the case of a proposed removal, demo-
tion, or suspension to which an individual responds 
under paragraph (1), not later than five business 
days after receiving the response of the individual; 
or 
‘‘(B) in the case of a proposed removal, demo-
tion, or suspension to which an individual does not 
respond, not later than 15 business days after the 
Secretary provides notice to the individual under 
paragraph (1). 
‘‘(3) The procedures under chapter 43 of title 5 shall 
not apply to a removal, demotion, or suspension under this 
section. 
‘‘(4)(A) Subject to subparagraph (B) and subsection 
(e), any removal, demotion, or suspension under sub-
section (a) may be appealed to the Merit Systems Protec-
tion Board, which shall refer such appeal to an adminis-
trative judge pursuant to section 7701(b)(1) of title 5. 
‘‘(B) An appeal under subparagraph (A) of a re-
moval, demotion, or suspension may only be made if such 
appeal is made not later than 7 days after the date of 
such removal, demotion, or suspension. 
‘‘(e) EXPEDITED REVIEW.—(1) Upon receipt of an 
appeal under subsection (d)(4)(A), the administrative 
judge shall expedite any such appeal under such section
and, in any such case, shall issue a final and complete 
decision not later than 45 business days after the date 
of the appeal. 
‘‘(2) Notwithstanding section 7701(c)(1)(B) of title 
5, the administrative judge shall uphold the decision of 
the Secretary to remove, demote, or suspend an employee 
under subsection (a) if the decision is supported by sub-
stantial evidence. If the decision of the Secretary is sup-
ported by substantial evidence, the administrative judge 
shall not mitigate the penalty prescribed by the Secretary. 
‘‘(3)(A) The decision of the administrative judge 
under paragraph (1) may be appealed to the Merit Sys-
tems Protection Board. 
‘‘(B) An appeal under subparagraph (A) of a decision 
of an administrative judge may only be made if such ap-
peal is made not later than 7 business days after the date 
of the decision of the administrative judge. 
‘‘(4) In any case in which the administrative judge 
cannot issue a decision in accordance with the 45-day re-
quirement under paragraph (1), the Merit Systems Pro-
tection Board shall, not later than 14 business days after 
the expiration of the 45-day period, submit to the Commit-
tees on Veterans’ Affairs of the Senate and House of Rep-
resentatives a report that explains the reasons why a deci-
sion was not issued in accordance with such requirement.
‘‘(5)(A) A decision of the Merit Systems Protection 
Board under paragraph (3) may be appealed to the United 
States Court of Appeals for the Federal Circuit pursuant 
to section 7703 of title 5. 
‘‘(B) An appeal under subparagraph (A) of a decision 
of the Merit Systems Protection Board may only be made 
if such appeal is made not later than 7 business days after 
the date of the decision of the Board. 
‘‘(C) Any decision by such Court shall be in compli-
ance with section 7462(f)(2) of this title. 
‘‘(6) The Merit Systems Protection Board may not 
stay any removal, demotion, under this section. 
‘‘(7) During the period beginning on the date on 
which an individual appeals a removal from the civil serv-
ice under subsection (d) and ending on the date that the 
United States Court of Appeals for the Federal Circuit 
issues a final decision on such appeal, such individual may 
not receive any pay, awards, bonuses, incentives, allow-
ances, differentials, student loan repayments, special pay-
ments, or benefits related to the employment of the indi-
vidual by the Department. 
‘‘(8) To the maximum extent practicable, the Sec-
retary shall provide to the Merit Systems Protection 
Board such information and assistance as may be nec-
essary to ensure an appeal under this subsection is expe-
dited. 
‘‘(9) If an employee prevails on appeal under this sec-
tion, the employee shall be entitled to backpay (as pro-
vided in section 5596 of title 5). 
‘‘(10) This subsection shall supercede any collective 
bargaining agreement to the extent that such an agree-
ment conflicts with this subsection. 
‘‘(f) WHISTLEBLOWER PROTECTION.—(1) In the 
case of an individual seeking corrective action (or on be-
half of whom corrective action is sought) from the Office 
of Special Counsel based on an alleged prohibited per-
sonnel practice described in section 2302(b) of title 5 or 
section 733(c) of this title, the Secretary may not remove, 
demote, or suspend 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 whis-
tleblower complaint, as such term is defined in section 731 
of this title, the Secretary may not remove, demote, or 
suspend 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 provi-
sion of law, the Special Counsel (established by section 
1211 of title 5) may terminate an investigation of a pro-
hibited 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) VACANCIES.—In the case of an individual who 
is removed or demoted under subsection (a), to the max-
imum extent feasible, the Secretary shall fill the vacancy 
arising as a result of such removal or demotion. 
‘‘(i) SEMI-ANNUAL REPORT ON TRANSFERRED EM-
PLOYEES.—The Secretary shall submit to the Committees 
on Veterans’ Affairs of the Senate and House of Rep-
resentatives semi-annual reports on senior executive em-
ployees who are transferred within the Department. Each 
such report shall include, for each such senior executive 
employee transferred during the period covered by the re-
port, the reason for the transfer and any costs associated 
with the transfer. 
‘‘(j) DEFINITIONS.—In this section:
‘‘(1) The term ‘individual’ means an individual 
occupying a position at the Department but does not 
include— 
‘‘(A) an individual appointed pursuant to 
section 7306, 7401(1), or 7405 of this title; 
‘‘(B) an individual who has not completed 
a probationary or trial period; or 
‘‘(C) a political appointee. 
‘‘(2) The term ‘suspend’ means the placing of 
an employee, for disciplinary reasons, in a temporary 
status without duties and pay for a period in excess 
of 14 days. 
‘‘(3) The term ‘grade’ has the meaning given 
such term in section 7511(a) of title 5. 
‘‘(4) The term ‘misconduct’ includes neglect of 
duty, malfeasance, or failure to accept a directed re-
assignment or to accompany a position in a transfer 
of function. 
‘‘(5) The term ‘political appointee’ means an in-
dividual 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 confiden-
tial or policy-determining character under 
schedule C of subpart C of part 213 of title 5 
of the Code of Federal Regulations.’’. 
(b) REPEAL OF SUPERCEDED PROVISION OF LAW.— 
(1) IN
GENERAL.—Section 713 of title 38, 
United States Code, is hereby repealed. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 7 is amended by 
striking the item relating to section 713. 
(c) CLERICAL AND CONFORMING AMENDMENTS.— 
(1) CLERICAL.—The table of sections at the be-
ginning of chapter 7 is amended by inserting after 
the item relating to section 717 the following new 
item: 
‘‘719. Employees: removal, demotion, or suspension based on performance or 
misconduct.’’. 
(2) CONFORMING.—Section 4303(f) of title 5, 
United States Code, is amended— 
(A) by striking ‘‘or’’ at the end of para-
graph (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 
719 of title 38.’’. 
(d) TEMPORARY EXEMPTION FROM CERTAIN LIMI-
TATION ON INITIATION FROM REMOVAL FROM SENIOR 
EXECUTIVE SERVICE.—During the 120-day period begin-
ning on the date of enactment of this Act, an action to 
remove an individual from the Senior Executive Service 
at the Department of Veterans Affairs pursuant to this 
section may be initiated, notwithstanding section 3592(b) 
of title 5, United States Code, or any other provision of 
law. 
SEC. 4. REDUCTION OF BENEFITS FOR DEPARTMENT OF 
VETERANS AFFAIRS EMPLOYEES CONVICTED 
OF CERTAIN CRIMES. 
(a) REDUCTION OF BENEFITS.— 
(1) IN GENERAL.—Subchapter I of chapter 7 is 
further amended by inserting after section 719, as 
added by section 3, the following new section: 
‘‘§ 721. Reduction of benefits of employees convicted 
of certain crimes 
‘‘(a) REDUCTION OF ANNUITY FOR REMOVED EM-
PLOYEE.—(1) The Secretary shall order that the covered 
service of an employee of the Department removed from 
a position for performance or misconduct under section
719 or 7461 of this title or any other provision of law 
shall not be taken into account for purposes of calculating 
an annuity with respect to such individual under chapter 
83 or chapter 84 of title 5, if— 
‘‘(A) the Secretary determines that the indi-
vidual is convicted of a felony that influenced the in-
dividual’s performance while employed in the posi-
tion; 
‘‘(B) before such order is made, the individual 
is afforded— 
‘‘(i) notice of the proposed order; and 
‘‘(ii) an opportunity to respond to the pro-
posed order by not later than ten business days 
following receipt of such notice; and 
‘‘(C) the Secretary issues the order— 
‘‘(i) in the case of a proposed order to 
which an individual responds under subpara-
graph (B)(ii), not later than five business days 
after receiving the response of the individual; or 
‘‘(ii) in the case of a proposed order to 
which an individual does not respond, not later 
than 15 business days after the Secretary pro-
vides notice to the individual under subpara-
graph (B)(i).
‘‘(2) Upon the issuance of an order by the Secretary 
under paragraph (1), the individual shall have an oppor-
tunity to appeal the order to the Director of the Office 
of Personnel Management before the date that is seven 
business days after the date of such issuance. 
‘‘(3) The Director of the Office of Personnel Manage-
ment shall make a final decision with respect to an appeal 
under paragraph (2) within 30 business days of receiving 
the appeal. 
‘‘(b) REDUCTION OF ANNUITY FOR RETIRED EM-
PLOYEE.—(1) The Secretary may order that the covered 
service of an individual who is removed for performance 
or misconduct under section 719 or 7461 of this title or 
any other provision of law but who leaves employment at 
the Department prior to the issuance of a final decision 
with respect to such action shall not be taken into account 
for purposes of calculating an annuity with respect to such 
individual under chapter 83 or chapter 84 of title 5, if— 
‘‘(A) the Secretary determines that the indi-
vidual is convicted of a felony that influenced the in-
dividual’s performance while employed in the posi-
tion; 
‘‘(B) before such order is made, the individual 
is afforded— 
‘‘(i) notice of the proposed order; and
‘‘(ii) opportunity to respond to the pro-
posed order by not later than ten business days 
following receipt of such notice; and 
‘‘(C) the Secretary issues the order— 
‘‘(i) in the case of a proposed order to 
which an individual responds under subpara-
graph (B)(ii), not later than five business days 
after receiving the response of the individual; or 
‘‘(ii) in the case of a proposed order to 
which an individual does not respond, not later 
than 15 business days after the Secretary pro-
vides notice to the individual under subpara-
graph (B)(i). 
‘‘(2) Upon the issuance of an order by the Secretary 
under paragraph (1), the individual shall have an oppor-
tunity to appeal the order to the Director of the Office 
of Personnel Management before the date that is seven 
business days after the date of such issuance. 
‘‘(3) The Director of the Office of Personnel Manage-
ment shall make a final decision with respect to an appeal 
under paragraph (2) within 30 business days of receiving 
the appeal. 
‘‘(c) ADMINISTRATIVE REQUIREMENTS.—Not later 
than 37 business days after the Secretary issues a final 
order under subsection (a) or (b), the Director of the Of-
fice of Personnel Management shall recalculate the annu-
ity of the individual. 
‘‘(d) LUMP-SUM ANNUITY CREDIT.—Any individual 
with respect to whom an annuity is reduced under sub-
section (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 Sec-
retary, in consultation with the Office of Personnel Man-
agement, shall prescribe regulations that may provide for 
the payment to the spouse or children of any individual 
referred to in subsection (a) or (b) of any amounts which 
(but for this subsection) would otherwise have been non-
payable by reason of such subsections. Any such regula-
tions shall be consistent with the requirements of sections 
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 re-
spect to an individual subject to a removal for per-
formance or misconduct under section 719 or 7461 
of this title or any other provision of law, the period 
of service beginning on the date that the Secretary 
determines under such applicable provision that the 
individual engaged in activity that gave rise to such 
action and ending on the date that the individual is
removed from or leaves a position of employment at 
the Department prior to the issuance of a final deci-
sion with respect to such action. 
‘‘(2) The term ‘lump-sum credit’ has the mean-
ing given such term in section 8331(8) or section 
8401(19) of title 5, as the case may be. 
‘‘(3) The term ‘service’ has the meaning given 
such term in section 8331(12) or section 8401(26) 
of title 5, as the case may be.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 7 is amended by 
inserting after the item relating to section 719, as 
added by section 3, the following new item: 
‘‘721. Reduction of benefits of employees convicted of certain crimes.’’. 
(b) APPLICATION.—Section 721 of title 38, United 
States Code, as added by subsection (a)(1), shall apply 
to any action of removal of an employee of the Department 
of Veterans Affairs under section 719 or 7461 of this title 
or any other provision of law, 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.—Subchapter I of chapter 7 is fur-
ther amended by inserting after section 721, as added by 
section 4, the following new section:
‘‘(B) in the case of a proposed order to 
which an individual does not respond, not later 
than 15 business days after the Secretary pro-
vides notice to the individual under paragraph 
(2)(A). 
‘‘(b) APPEALS.—Upon the issuance of an order by 
the Secretary under subsection (a), the individual shall 
have an opportunity to appeal the order to another depart-
ment or agency of the Federal Government before the date 
that is seven business days after the date of such issuance. 
‘‘(c) FINAL DECISIONS.—The head of the applicable 
department or agency of the Federal Government shall 
make a final decision with respect to an appeal under sub-
section (b) within 30 business days after receiving such 
appeal.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter, as amended by section 
4, is amended by inserting after the item relating to sec-
tion 721, as added by section 4(a)(2), the following new 
item: 
‘‘723. Recoupment of bonuses or awards paid to employees of Department.’’. 
(c) EFFECTIVE DATE.—Section 723 of title 38, 
United States Code, as added by subsection (a), shall 
apply with respect to an award or bonus paid by the Sec-
retary of Veterans Affairs to an employee of the Depart-
ment of Veterans Affairs on or after the date of the enact-
ment of this Act. 
(d) CONSTRUCTION.—Nothing in this Act or the 
amendments made by this Act may be construed to modify 
the certification issued by the Office of Personnel Manage-
ment 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.—Subchapter I of chapter 7 is fur-
ther amended by adding at the end the following new sec-
tion: 
‘‘§ 725. Recoupment of relocation expenses paid to or 
on behalf of employees of Department 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of law, the Secretary may issue an order directing 
an employee of the Department to repay the amount, or 
a portion of the amount, paid to or on behalf of the em-
ployee under title 5 for relocation expenses, including any 
expenses under section 5724 or 5724a of such title, or 
this title if— 
‘‘(1) the Secretary determines that relocation 
expenses were not lawfully authorized or that the
employee committed an act of fraud, waste, or mal-
feasance that influenced the authorization of the re-
location expenses; 
‘‘(2) before such repayment, the employee is af-
forded— 
‘‘(A) notice of the proposed order; and 
‘‘(B) an opportunity to respond to the pro-
posed order not later than ten business days 
following the receipt of such notice; and 
‘‘(3) the Secretary issues the order— 
‘‘(A) in the case of a proposed order to 
which an individual responds under paragraph 
(2)(B), not later than five business days after 
receiving the response of the individual; or 
‘‘(B) in the case of a proposed order to 
which an individual does not respond, not later 
than 15 business days after the Secretary pro-
vides notice to the individual under paragraph 
(2)(A). 
‘‘(b) APPEALS.—Upon the issuance of an order by 
the Secretary under subsection (a), the individual shall 
have an opportunity to appeal the order to another depart-
ment or agency of the Federal Government before the date 
that is seven business days after the date of such issuance.
‘‘(c) FINAL DECISIONS.—The head of the applicable 
department or agency of the Federal Government shall 
make a final decision with respect to an appeal under sub-
section (b) within 30 days after receiving such appeal.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is further amended by 
inserting after the item relating to section 723, as added 
by section 5(b), the following new item: 
‘‘725. Recoupment of relocation expenses paid to or on behalf of employees of 
Department.’’. 
(c) EFFECTIVE DATE.—Section 725 of title 38, 
United States Code, as added by subsection (a), shall 
apply with respect to an amount paid by the Secretary 
of Veterans Affairs to or on behalf of an employee of the 
Department of Veterans Affairs for relocation expenses on 
or after the date of the enactment of this Act. 
SEC. 7. TIME PERIOD FOR RESPONSE TO NOTICE OF AD-
VERSE ACTIONS AGAINST SUPERVISORY EM-
PLOYEES WHO COMMIT PROHIBITED PER-
SONNEL ACTIONS. 
Section 733(a)(2)(B) is amended— 
(1) in clause (i), by striking ‘‘14 days’’ and in-
serting ‘‘10 days’’; and 
(2) in clause (ii), by striking ‘‘14-day period’’ 
and inserting ‘‘10-day period’’.
SEC. 8. DIRECT HIRING AUTHORITY FOR MEDICAL CENTER 
DIRECTORS AND VISN DIRECTORS. 
(a) IN GENERAL.—Section 7401 is amended by add-
ing at the end the following new paragraph: 
‘‘(4) Medical center directors and directors of 
Veterans Integrated Service Networks with dem-
onstrated ability in the medical profession, in health 
care administration, or in health care fiscal manage-
ment.’’. 
(b) CONFORMING AMENDMENT.—Section 7404(a)(1) 
is amended by inserting ‘‘and 7401(4)’’ after ‘‘7306’’. 
SEC. 9. TIME PERIODS FOR REVIEW OF ADVERSE ACTIONS 
WITH RESPECT TO CERTAIN EMPLOYEES. 
(a) PHYSICIANS, DENTISTS, PODIATRISTS, CHIRO-
PRACTORS, OPTOMETRISTS, REGISTERED NURSES, PHY-
SICIAN ASSISTANTS, AND EXPANDED-FUNCTION DENTAL 
AUXILIARIES.—Section 7461(b)(2) is amended to read as 
follows: 
‘‘(2) In any case other than a case described in para-
graph (1) that involves or includes a question of profes-
sional conduct or competence in which a major adverse 
action was not taken, such an appeal shall be made 
through Department grievance procedures under section 
7463 of this title.’’.
(b) MAJOR ADVERSE ACTIONS INVOLVING PROFES-
SIONAL CONDUCT
OR COMPETENCE.—Section 7462 is 
amended— 
(1) in subsection (b)— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by striking 
‘‘At least 30’’ and inserting ‘‘Ten busi-
ness’’; and 
(ii) in subparagraph (B)— 
(I) by striking ‘‘A reasonable 
time, but not less than seven days’’ 
and inserting ‘‘The opportunity, with-
in the ten-day notice period’’; and 
(II) by striking ‘‘orally and’’; 
(B) in paragraph (3)— 
(i) by striking ‘‘(A) If a proposed ad-
verse action covered by this section is not 
withdrawn’’ and inserting ‘‘After consid-
ering the employee’s answer, if any’’; 
(ii) by striking ‘‘21 days’’ and insert-
ing ‘‘5 business days’’; 
(iii) by striking ‘‘answer. The decision 
shall include a statement of’’ and inserting 
‘‘answer stating’’; and
(iv) by striking subparagraph (B); 
and 
(C) in paragraph (4)— 
(i) by striking ‘‘(A) The Secretary’’ 
and all that follows through ‘‘(B) The Sec-
retary’’ and inserting ‘‘The Secretary’’; 
and 
(ii) by striking ‘‘30 days’’ and insert-
ing ‘‘7 business days’’; 
(2) in subsection (c)— 
(A) in paragraph (3), by inserting ‘‘the 
hearing must be concluded not later than 30 
business days after the date on which the ap-
peal is filed, and’’ after ‘‘If such a hearing is 
held,’’; and 
(B) in paragraph (4)— 
(i) by striking ‘‘45 days’’ and insert-
ing ‘‘15 business days’’; and 
(ii) by striking ‘‘120 days’’ and insert-
ing ‘‘45 business days’’; and 
(3) in subsection (d)(1), by striking ‘‘90 days’’ 
and inserting ‘‘15 business days’’. 
(c) OTHER ADVERSE ACTIONS.—Section 7463 is 
amended—
(1) by striking subsection (b) and redesignating 
subsections (c) through (e) as subsections (b) 
through (d), respectively; and 
(2) in subsection (b)(2), as so redesignated— 
(A) in subparagraph (A), by striking ‘‘an 
advance’’ and inserting ‘‘ten business days’’; 
and 
(B) in subparagraph (B)— 
(i) by striking ‘‘a reasonable time’’ 
and inserting ‘‘the opportunity, within the 
ten business day notice period,’’; and 
(ii) by striking ‘‘orally and’’. 
SEC. 10. ANNUAL REPORT ON PERFORMANCE AWARDS AND 
BONUSES 
AWARDED 
TO 
CERTAIN 
HIGH- 
LEVEL EMPLOYEES OF THE DEPARTMENT OF 
VETERANS AFFAIRS. 
(a) IN GENERAL.—Chapter 7 of title 38, United 
States Code, is further amended by inserting after section 
723, as added by section 5, the following new section: 
‘‘§ 724. Annual report on performance awards and bo-
nuses awarded to certain high-level em-
ployees 
‘‘(a) IN GENERAL.—Not later than 30 days after the 
end of each fiscal year, the Secretary shall submit to the 
appropriate committees of Congress a report that con-
tains, for the most recent fiscal year ending before the 
submittal of the report, a description of the performance 
awards and bonuses awarded to Regional Office Directors 
of the Department, Directors of Medical Centers of the 
Department, Directors of Veterans Integrated Service 
Networks, and any other individual employed in a senior 
executive position. 
‘‘(b) ELEMENTS.—Each report submitted under sub-
section (a) shall include the following with respect to each 
performance award or bonus awarded to an individual de-
scribed in such subsection: 
‘‘(1) The amount of each award or bonus. 
‘‘(2) The job title of the individual awarded the 
award or bonus. 
‘‘(3) The location where the individual awarded 
the award or bonus works. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘appropriate committees of Con-
gress’ means— 
‘‘(A) the Committee on Veterans’ Affairs 
and the Committee on Appropriations of the 
Senate; and 
‘‘(B) the Committee on Veterans’ Affairs 
and the Committee on Appropriations of the 
House of Representatives.
‘‘(2) The term ‘individual’ means— 
‘‘(A) a career appointee (as that term is 
defined in section 3132(a)(4) of title 5); or 
‘‘(B) any individual who occupies an ad-
ministrative or executive position and who was 
appointed under section 7306(a) or section 
7401(1) of this title. 
‘‘(3) The term ‘senior executive position’ 
means— 
‘‘(A) with respect to a career appointee (as 
that term is defined in section 3132(a)(4) of 
title 5), a Senior Executive Service position (as 
such term is defined in section 3132(a)(2) of 
title 5); and 
‘‘(B) with respect to an individual ap-
pointed under section 7306(a) or section 
7401(1) of this title, an administrative or exec-
utive position.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 7 of such title is amended by 
inserting after the item relating to section 723, as added 
by section 5, the following new item: 
‘‘724. Annual report on performance awards and bonuses awarded to certain 
high-level employees.’’.
SEC. 11. ACCOUNTABILITY OF SUPERVISORS AT DEPART-
MENT OF VETERANS AFFAIRS FOR ADDRESS-
ING PERFORMANCE OF EMPLOYEES. 
(a) IN GENERAL.—The Secretary of Veterans Affairs 
shall ensure that, as a part of the annual performance 
plan of a supervisor in the Department, the supervisor is 
evaluated on the following: 
(1) Taking action to address poor performance 
and misconduct among the employees that report to 
the supervisor. 
(2) Taking steps to improve or sustain high lev-
els of employee engagement. 
(3) Promoting a positive culture of service 
that— 
(A) reflects the mission of the Department 
and the values of integrity, commitment, advo-
cacy, respect, and excellence; and 
(B) emphasizes the greatest degree of per-
formance and conduct. 
(b) SUPERVISOR DEFINED.—In this section, the term 
‘‘supervisor’’ has the meaning given such term in section 
7103(a) of title 5, United States Code. 
SEC. 12. IMPROVEMENT OF TRAINING FOR SUPERVISORS. 
(a) IN GENERAL.—The Secretary of Veterans Affairs 
shall provide to each employee of the Department of Vet-
erans Affairs who is employed as a supervisor periodic 
training on the following: 
(1) The rights of whistleblowers and how to ad-
dress a report by an employee of a hostile work envi-
ronment, reprisal, or harassment. 
(2) How to effectively motivate, manage, and 
reward the employees who report to the supervisor. 
(3) How to effectively manage employees who 
are performing at an unacceptable level and access 
assistance from the human resources office of the 
Department and the Office of the General Counsel 
of the Department with respect to those employees. 
(b) DEFINITIONS.—In this section: 
(1) SUPERVISOR.—The term ‘‘supervisor’’ has 
the meaning given such term in section 7103(a) of 
title 5, United States Code. 
(2) WHISTLEBLOWER.—The term ‘‘whistle-
blower’’ has the meaning given such term in section 
323(g) of title 38, United States Code, as added by 
section 101. 
Passed the House of Representatives March 16, 
2017. 
Attest: 
Clerk.
115TH CONGRESS 
1ST SESSION 
H. R. 1259 
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 per-
formance or misconduct, and for other purposes.