IIB 
114TH CONGRESS 
1ST SESSION H. R. 1994 
IN THE SENATE OF THE UNITED STATES 
JULY 30, 2015 
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. 
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. SHORT TITLE. 
This Act may be cited as the ‘‘VA Accountability Act 
of 2015’’. 
SEC. 2. REMOVAL OR DEMOTION OF EMPLOYEES BASED ON 
PERFORMANCE OR MISCONDUCT. 
(a) IN GENERAL.—Chapter 7 of title 38, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 715. Employees: removal or demotion based on 
performance or misconduct 
‘‘(a) IN GENERAL.—The Secretary may remove or 
demote an individual who is an employee of the Depart-
ment if the Secretary determines the performance or mis-
conduct of the individual warrants such removal or demo-
tion. If the Secretary so removes or demotes such an indi-
vidual, the Secretary may— 
‘‘(1) remove the individual from the civil service 
(as defined in section 2101 of title 5); or 
‘‘(2) demote the individual by means of— 
‘‘(A) a reduction in grade for which the in-
dividual is qualified and that the Secretary de-
termines is appropriate; or 
‘‘(B) a reduction in annual rate of pay 
that the Secretary determines is appropriate. 
‘‘(b) PAY OF CERTAIN DEMOTED INDIVIDUALS.—(1) 
Notwithstanding any other provision of law, any individual 
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subject to a demotion under subsection (a)(2)(A) shall, be-
ginning 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 or any other category of paid leave 
during the period during which an appeal (if any) under 
this section is ongoing, and may only receive pay if the 
individual reports for duty. If an individual so demoted 
does not report for duty, such individual shall not receive 
pay or other benefits pursuant to subsection (e)(5). 
‘‘(c) NOTICE TO CONGRESS.—Not later than 30 days 
after removing or demoting an individual under subsection 
(a), the Secretary shall submit to the Committees on Vet-
erans’ Affairs of the Senate and House of Representatives 
notice in writing of such removal or demotion and the rea-
son for such removal or demotion. 
‘‘(d) PROCEDURE.—(1) The procedures under section 
7513(b) of title 5 and chapter 43 of such title shall not 
apply to a removal or demotion under this section. 
‘‘(2)(A) Subject to subparagraph (B) and subsection 
(e), any removal or demotion under subsection (a) may 
be appealed to the Merit Systems Protection Board under 
section 7701 of title 5. 
‘‘(B) An appeal under subparagraph (A) of a removal 
or demotion may only be made if such appeal is made not 
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later than seven days after the date of such removal or 
demotion. 
‘‘(e) EXPEDITED
REVIEW
BY
ADMINISTRATIVE 
JUDGE.—(1) Upon receipt of an appeal under subsection 
(d)(2)(A), the Merit Systems Protection Board shall refer 
such appeal to an administrative judge pursuant to section 
7701(b)(1) of title 5. The administrative judge shall expe-
dite any such appeal under such section and, in any such 
case, shall issue a decision not later than 45 days after 
the date of the appeal. 
‘‘(2) Notwithstanding any other provision of law, in-
cluding section 7703 of title 5, the decision of an adminis-
trative judge under paragraph (1) shall be final and shall 
not be subject to any further appeal. 
‘‘(3) In any case in which the administrative judge 
cannot issue a decision in accordance with the 45-day re-
quirement under paragraph (1), the removal or demotion 
is final. In such a case, the Merit Systems Protection 
Board shall, within 14 days after the date that such re-
moval or demotion is final, submit to Congress and the 
Committees on Veterans’ Affairs of the Senate and House 
of Representatives a report that explains the reasons why 
a decision was not issued in accordance with such require-
ment. 
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‘‘(4) The Merit Systems Protection Board or admin-
istrative judge may not stay any removal or demotion 
under this section. 
‘‘(5) 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 
administrative judge issues a final decision on such appeal, 
such individual may not receive any pay, awards, bonuses, 
incentives, allowances, differentials, student loan repay-
ments, special payments, or benefits. 
‘‘(6) To the maximum extent practicable, the Sec-
retary shall provide to the Merit Systems Protection 
Board, and to any administrative judge to whom an appeal 
under this section is referred, such information and assist-
ance as may be necessary to ensure an appeal under this 
subsection is expedited. 
‘‘(f) WHISTLEBLOWER PROTECTION.—(1) In the 
case of an individual seeking corrective action (or on 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, the 
Secretary may not remove or demote such individual 
under subsection (a) without the approval of the Special 
Counsel under section 1214(f) of title 5. 
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‘‘(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 or demote such 
individual under subsection (a) until the central whistle-
blower office under section 732(h) of this title has made 
a final decision with respect to the whistleblower com-
plaint. 
‘‘(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) RELATION TO TITLE 5.—The authority provided 
by this section is in addition to the authority provided by 
subchapter V of chapter 75 of title 5 and chapter 43 of 
such title. 
‘‘(i) DEFINITIONS.—In this section: 
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‘‘(1) The term ‘individual’ means an individual 
occupying a position at the Department but does not 
include— 
‘‘(A) an individual, as that term is defined 
in section 713(g)(1); or 
‘‘(B) a political appointee. 
‘‘(2) The term ‘grade’ has the meaning given 
such term in section 7511(a) of title 5. 
‘‘(3) 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. 
‘‘(4) 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 
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schedule C of subpart C of part 213 of title 5 
of the Code of Federal Regulations.’’. 
(b) CLERICAL AND CONFORMING AMENDMENTS.— 
(1) CLERICAL.—The table of sections at the be-
ginning of such chapter is amended by adding at the 
end the following new item: 
‘‘715. Employees: removal or demotion 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 
715 of title 38.’’. 
SEC. 3. REQUIRED PROBATIONARY PERIOD FOR NEW EM-
PLOYEES OF DEPARTMENT OF VETERANS AF-
FAIRS. 
(a) PROBATIONARY PERIOD.— 
(1) IN GENERAL.—Chapter 7 of title 38, United 
States Code, as amended by section 2, is further 
amended by adding at the end the following new sec-
tion: 
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‘‘§ 717. Probationary period for employees 
‘‘(a) IN GENERAL.—Notwithstanding sections 3321 
and 3393(d) of title 5, the appointment of a covered em-
ployee shall become final only after such employee has 
served a probationary period of 18 months. The Secretary 
may extend a probationary period under this subsection 
at the discretion of the Secretary. 
‘‘(b) COVERED EMPLOYEE.—In this section, the term 
‘covered employee’— 
‘‘(1) means any individual— 
‘‘(A) appointed to a permanent position 
within the competitive service at the Depart-
ment; or 
‘‘(B) appointed as a career appointee (as 
that term is defined in section 3132(a)(4) of 
title 5) within the Senior Executive Service at 
the Department; and 
‘‘(2) does not include any individual with a pro-
bationary period prescribed by section 7403 of this 
title. 
‘‘(c) PERMANENT HIRES.—Upon the expiration of a 
covered employee’s probationary period under subsection 
(a), the supervisor of the employee shall determine wheth-
er the appointment becomes final based on regulations 
prescribed for such purpose by the Secretary.’’. 
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(2) CLERICAL
AND
CONFORMING
AMEND-
MENTS.— 
(A) CLERICAL.—The table of sections at 
the beginning of such chapter, as amended by 
section 2, is further amended by adding at the 
end the following new item: 
‘‘717. Probationary period for employees.’’. 
(B) CONFORMING.—Title 5, United States 
Code, is amended— 
(i) in section 3321(c)— 
(I) by striking ‘‘Service or’’ and 
inserting ‘‘Service,’’; and 
(II) by inserting at the end be-
fore the period the following: ‘‘, or 
any individual covered by section 717 
of title 38’’; and 
(ii) in section 3393(d), by adding at 
the end after the period the following: 
‘‘The preceding sentence shall not apply to 
any individual covered by section 717 of 
title 38.’’. 
(b) APPLICATION.—Section 717 of title 38, United 
States Code, as added by subsection (a)(1), shall apply 
to any covered employee (as that term is defined in sub-
section (b) of such section 717, as so added) appointed 
after the date of the enactment of this Act. 
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SEC. 4. TREATMENT OF WHISTLEBLOWER COMPLAINTS IN 
DEPARTMENT OF VETERANS AFFAIRS. 
(a) IN GENERAL.—Chapter 7 of title 38, United 
States Code, is further amended by adding at the end the 
following new subchapter: 
‘‘SUBCHAPTER II—WHISTLEBLOWER 
COMPLAINTS 
‘‘§ 731. Whistleblower complaint defined 
‘‘In this subchapter, the term ‘whistleblower com-
plaint’ means a complaint by an employee of the Depart-
ment disclosing, or assisting another employee to disclose, 
a potential violation of any law, rule, or regulation, or 
gross mismanagement, gross waste of funds, abuse of au-
thority, or substantial and specific danger to public health 
and safety. 
‘‘§ 732. Treatment of whistleblower complaints 
‘‘(a) FILING.—(1) In addition to any other method 
established by law in which an employee may file a whistle-
blower complaint, an employee of the Department may file 
a whistleblower complaint in accordance with subsection 
(g) with a supervisor of the employee. 
‘‘(2) Except as provided by subsection (d)(1), in mak-
ing a whistleblower complaint under paragraph (1), an 
employee shall file the initial complaint with the imme-
diate supervisor of the employee. 
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‘‘(b) NOTIFICATION.—(1) Not later than four busi-
ness days after the date on which a supervisor receives 
a whistleblower complaint by an employee under this sec-
tion, the supervisor shall notify, in writing, the employee 
of whether the supervisor determines that there is a rea-
sonable likelihood that the complaint discloses a violation 
of any law, rule, or regulation, or gross mismanagement, 
gross waste of funds, abuse of authority, or substantial 
and specific danger to public health and safety. The super-
visor shall retain written documentation regarding the 
whistleblower complaint and shall submit to the next-level 
supervisor and the central whistleblower office described 
in subsection (h) a written report on the complaint. 
‘‘(2) On a monthly basis, the supervisor shall submit 
to the appropriate director or other official who is superior 
to the supervisor a written report that includes the num-
ber of whistleblower complaints received by the supervisor 
under this section during the month covered by the report, 
the disposition of such complaints, and any actions taken 
because of such complaints pursuant to subsection (c). In 
the case in which such a director or official carries out 
this paragraph, the director or official shall submit such 
monthly report to the supervisor of the director or official 
and to the central whistleblower office described in sub-
section (h). 
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‘‘(c) POSITIVE DETERMINATION.—If a supervisor 
makes a positive determination under subsection (b)(1) re-
garding a whistleblower complaint of an employee, the su-
pervisor shall include in the notification to the employee 
under such subsection the specific actions that the super-
visor will take to address the complaint. 
‘‘(d) FILING COMPLAINT WITH NEXT-LEVEL SUPER-
VISORS.—(1) If any circumstance described in paragraph 
(3) is met, an employee may file a whistleblower complaint 
in accordance with subsection (g) with the next-level su-
pervisor who shall treat such complaint in accordance with 
this section. 
‘‘(2) An employee may file a whistleblower complaint 
with the Secretary if the employee has filed the whistle-
blower complaint to each level of supervisors between the 
employee and the Secretary in accordance with paragraph 
(1). 
‘‘(3) A circumstance described in this paragraph are 
any of the following circumstances: 
‘‘(A) A supervisor does not make a timely de-
termination under subsection (b)(1) regarding a 
whistleblower complaint. 
‘‘(B) The employee who made a whistleblower 
complaint determines that the supervisor did not 
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adequately address the complaint pursuant to sub-
section (c). 
‘‘(C) The immediate supervisor of the employee 
is the basis of the whistleblower complaint. 
‘‘(e) TRANSFER OF EMPLOYEE WHO FILES WHIS-
TLEBLOWER COMPLAINT.—If a supervisor makes a posi-
tive determination under subsection (b)(1) regarding a 
whistleblower complaint filed by an employee, the Sec-
retary shall— 
‘‘(1) inform the employee of the ability to vol-
unteer for a transfer in accordance with section 
3352 of title 5; and 
‘‘(2) give preference to the employee for such a 
transfer in accordance with such section. 
‘‘(f) PROHIBITION ON EXEMPTION.—The Secretary 
may not exempt any employee of the Department from 
being covered by this section. 
‘‘(g) WHISTLEBLOWER COMPLAINT FORM.—(1) A 
whistleblower complaint filed by an employee under sub-
section (a) or (d) shall consist of the form described in 
paragraph (2) and any supporting materials or docu-
mentation the employee determines necessary. 
‘‘(2) The form described in this paragraph is a form 
developed by the Secretary, in consultation with the Spe-
cial Counsel, that includes the following: 
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‘‘(A) An explanation of the purpose of the whis-
tleblower complaint form. 
‘‘(B) Instructions for filing a whistleblower 
complaint as described in this section. 
‘‘(C) An explanation that filing a whistleblower 
complaint under this section does not preclude the 
employee from any other method established by law 
in which an employee may file a whistleblower com-
plaint. 
‘‘(D) A statement directing the employee to in-
formation accessible on the Internet website of the 
Department as described in section 735(c). 
‘‘(E) Fields for the employee to provide— 
‘‘(i) the date that the form is submitted; 
‘‘(ii) the name of the employee; 
‘‘(iii) the contact information of the em-
ployee; 
‘‘(iv) a summary of the whistleblower com-
plaint (including the option to append sup-
porting documents pursuant to paragraph (1)); 
and 
‘‘(v) proposed solutions to complaint. 
‘‘(F) Any other information or fields that the 
Secretary determines appropriate. 
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‘‘(3) The Secretary, in consultation with the Special 
Counsel, shall develop the form described in paragraph (2) 
by not later than 60 days after the date of the enactment 
of this section. 
‘‘(h) CENTRAL WHISTLEBLOWER OFFICE.—(1) The 
Secretary shall ensure that the central whistleblower of-
fice— 
‘‘(A) is not an element of the Office of the Gen-
eral Counsel; 
‘‘(B) is not headed by an official who reports to 
the General Counsel; 
‘‘(C) does not provide, or receive from, the Gen-
eral Counsel any information regarding a whistle-
blower complaint except pursuant to an action re-
garding the complaint before an administrative body 
or court; and 
‘‘(D) does not provide advice to the General 
Counsel. 
‘‘(2) The central whistleblower office shall be respon-
sible for investigating all whistleblower complaints of the 
Department, regardless of whether such complaints are 
made by or against an employee who is not a member of 
the Senior Executive Service. 
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‘‘(3) The Secretary shall ensure that the central whis-
tleblower office maintains a toll-free hotline to anony-
mously receive whistleblower complaints. 
‘‘(4) In this subsection, the term ‘central whistle-
blower office’ means the Office of Accountability Review 
or a successor office that is established or designated by 
the Secretary to investigate whistleblower complaints filed 
under this section or any other method established by law. 
‘‘§ 733. Adverse actions against supervisory employ-
ees who commit prohibited personnel ac-
tions 
relating 
to 
whistleblower 
com-
plaints 
‘‘(a) IN GENERAL.—(1) In accordance with para-
graph (2), the Secretary shall carry out the following ad-
verse actions against supervisory employees whom the Sec-
retary, an administrative judge, the Merit Systems Protec-
tion Board, the Office of Special Counsel, an adjudicating 
body provided under a union contract, a Federal judge, 
or the Inspector General of the Department determines 
committed a prohibited personnel action described in sub-
section (c): 
‘‘(A) With respect to the first offense, an ad-
verse action that is not less than a 14-day suspen-
sion and not more than removal. 
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‘‘(B) With respect to the second offense, re-
moval. 
‘‘(2)(A) Except as provided by subparagraph (B), 
and notwithstanding subsections (b) and (c) of section 
7513 and section 7543 of title 5, the provisions of sub-
sections (d) and (e) of section 713 of this title shall apply 
with respect to an adverse action carried out under para-
graph (1). 
‘‘(B) An employee who is notified of being the subject 
of a proposed adverse action under paragraph (1) may not 
be given more than five days following such notification 
to provide evidence to dispute such proposed adverse ac-
tion. If the employee does not provide any such evidence, 
or if the Secretary determines that such evidence is not 
sufficient to reverse the determination to propose the ad-
verse action, the Secretary shall carry out the adverse ac-
tion following such five-day period. 
‘‘(b) LIMITATION ON OTHER ADVERSE ACTIONS.— 
With respect to a prohibited personnel action described in 
subsection (c), if the Secretary carries out an adverse ac-
tion against a supervisory employee, the Secretary may 
carry out an additional adverse action under this section 
based on the same prohibited personnel action if the total 
severity of the adverse actions do not exceed the level spec-
ified in subsection (a). 
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‘‘(c) 
PROHIBITED
PERSONNEL
ACTION
DE-
SCRIBED.—A prohibited personnel action described in this 
subsection is any of the following actions: 
‘‘(1) Taking or failing to take a personnel ac-
tion in violation of section 2302 of title 5 against an 
employee relating to the employee— 
‘‘(A) filing a whistleblower complaint in ac-
cordance with section 732 of this title; 
‘‘(B) filing a whistleblower complaint with 
the Inspector General of the Department, the 
Special Counsel, or Congress; 
‘‘(C) providing information or participating 
as a witness in an investigation of a whistle-
blower complaint in accordance with section 
732 or with the Inspector General of the De-
partment, the Special Counsel, or Congress; 
‘‘(D) participating in an audit or investiga-
tion by the Comptroller General of the United 
States; 
‘‘(E) refusing to perform an action that is 
unlawful or prohibited by the Department; or 
‘‘(F) engaging in communications that are 
related to the duties of the position or are oth-
erwise protected. 
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‘‘(2) Preventing or restricting an employee from 
making an action described in any of subparagraphs 
(A) through (F) of paragraph (1). 
‘‘(3) Conducting a peer review or opening a re-
taliatory investigation relating to an activity of an 
employee that is protected by section 2302 of title 
5. 
‘‘(4) Requesting a contractor to carry out an 
action that is prohibited by section 4705(b) or sec-
tion 4712(a)(1) of title 41, as the case may be. 
‘‘§ 734. Evaluation criteria of supervisors and treat-
ment of bonuses 
‘‘(a) EVALUATION CRITERIA.—(1) In evaluating the 
performance of supervisors of the Department, the Sec-
retary shall include the criteria described in paragraph 
(2). 
‘‘(2) The criteria described in this subsection are the 
following: 
‘‘(A) Whether the supervisor treats whistle-
blower complaints in accordance with section 732. 
‘‘(B) Whether the appropriate deciding official, 
performance review board, or performance review 
committee determines that the supervisor was found 
to have committed a prohibited personnel action de-
scribed in section 733(b) by an administrative judge, 
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the Merit Systems Protection Board, the Office of 
Special Counsel, an adjudicating body provided 
under a union contract, a Federal judge, or, in the 
case of a settlement of a whistleblower complaint 
(regardless of whether any fault was assigned under 
such settlement), the Secretary. 
‘‘(b) BONUSES.—(1) The Secretary may not pay to 
a supervisor described in subsection (a)(2)(B) an award 
or bonus under this title or title 5, including under chapter 
45 or 53 of such title, during the one-year period begin-
ning on the date on which the determination was made 
under such subsection. 
‘‘(2) Notwithstanding any other provision of law, the 
Secretary shall issue an order directing a supervisor de-
scribed in subsection (a)(2)(B) to repay the amount of any 
award or bonus paid under this title or title 5, including 
under chapter 45 or 53 of such title, if— 
‘‘(A) such award or bonus was paid for per-
formance during a period in which the supervisor 
committed a prohibited personnel action as deter-
mined pursuant to such subsection (a)(2)(B); 
‘‘(B) the Secretary determines such repayment 
appropriate pursuant to regulations prescribed by 
the Secretary to carry out this section; and 
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‘‘(C) the supervisor is afforded notice and an 
opportunity for a hearing before making such repay-
ment. 
‘‘§ 735. Training regarding whistleblower complaints 
‘‘(a) TRAINING.—The Secretary, in coordination with 
the Whistleblower Protection Ombudsman designated 
under section 3(d)(1)(C) of the Inspector General Act of 
1978 (5 U.S.C. App.), shall annually provide to each em-
ployee of the Department training regarding whistleblower 
complaints, including— 
‘‘(1) an explanation of each method established 
by law in which an employee may file a whistle-
blower complaint; 
‘‘(2) an explanation of prohibited personnel ac-
tions described by section 733(c) of this title; 
‘‘(3) with respect to supervisors, how to treat 
whistleblower complaints in accordance with section 
732 of this title; 
‘‘(4) the right of the employee to petition Con-
gress regarding a whistleblower complaint in accord-
ance with section 7211 of title 5; 
‘‘(5) an explanation that the employee may not 
be prosecuted or reprised against for disclosing in-
formation to Congress in instances where such dis-
closure is permitted by law, including under sections 
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5701, 5705, and 7732 of this title, under section 
552a of title 5 (commonly referred to as the Privacy 
Act), under chapter 93 of title 18, and pursuant to 
regulations promulgated under section 264(c) of the 
Health Insurance Portability and Accountability Act 
of 1996 (Public Law 104–191); 
‘‘(6) an explanation of the language that is re-
quired to be included in all nondisclosure policies, 
forms, 
and 
agreements 
pursuant 
to 
section 
115(a)(1) of the Whistleblower Protection Enhance-
ment Act of 2012 (5 U.S.C. 2302 note); and 
‘‘(7) the right of contractors to be protected 
from reprisal for the disclosure of certain informa-
tion under section 4705 or 4712 of title 41. 
‘‘(b) CERTIFICATION.—The Secretary shall annually 
provide training on merit system protection in a manner 
that the Special Counsel certifies as being satisfactory. 
‘‘(c) PUBLICATION.—(1) The Secretary shall publish 
on the Internet website of the Department, and display 
prominently at each facility of the Department, the rights 
of an employee to file a whistleblower complaint, including 
the information described in paragraphs (1) through (7) 
of subsection (a). 
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‘‘(2) The Secretary shall publish on the Internet 
website of the Department, the whistleblower complaint 
form described in section 732(g)(2). 
‘‘§ 736. Reports to Congress 
‘‘(a) ANNUAL REPORTS.—The Secretary shall annu-
ally submit to the Committees on Veterans’ Affairs of the 
House of Representatives and the Senate, the Committee 
on Oversight and Government Reform of the House of 
Representatives, and the Committee on Homeland Secu-
rity and Governmental Affairs of the Senate a report that 
includes— 
‘‘(1) with respect to whistleblower complaints 
filed under section 732 during the year covered by 
the report— 
‘‘(A) the number of such complaints filed; 
‘‘(B) the disposition of such complaints; 
and 
‘‘(C) the ways in which the Secretary ad-
dressed such complaints in which a positive de-
termination was made by a supervisor under 
subsection (b)(1) of such section; 
‘‘(2) the number of whistleblower complaints 
filed during the year covered by the report that are 
not included under paragraph (1), including— 
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‘‘(A) the method in which such complaints 
were filed; 
‘‘(B) the disposition of such complaints; 
and 
‘‘(C) the ways in which the Secretary ad-
dressed such complaints; and 
‘‘(3) with respect to disclosures made by a con-
tractor under section 4705 or 4712 of title 41— 
‘‘(A) the number of complaints relating to 
such disclosures that were investigated by the 
Inspector General of the Department of Vet-
erans Affairs during the year covered by the re-
port; 
‘‘(B) the disposition of such complaints; 
and 
‘‘(C) the ways in which the Secretary ad-
dressed such complaints. 
‘‘(b) NOTICE OF OFFICE OF SPECIAL COUNSEL DE-
TERMINATIONS.—Not later than 30 days after the date 
on which the Secretary receives from the Special Counsel 
information relating to a whistleblower complaint pursu-
ant to section 1213 of title 5, the Secretary shall notify 
the Committees on Veterans’ Affairs of the House of Rep-
resentatives and the Senate, the Committee on Oversight 
and Government Reform of the House of Representatives, 
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and the Committee on Homeland Security and Govern-
mental Affairs of the Senate of such information, includ-
ing the determination made by the Special Counsel.’’. 
(b) CONFORMING AND CLERICAL AMENDMENTS.— 
(1) CONFORMING AMENDMENT.—Such chapter 
is further amended by inserting before section 701 
the following: 
‘‘SUBCHAPTER I—GENERAL EMPLOYEE 
MATTERS’’. 
(2) CLERICAL AMENDMENTS.—The table of sec-
tions at the beginning of such chapter is amended— 
(A) by inserting before the item relating to 
section 701 the following new item: 
‘‘SUBCHAPTER I—GENERAL EMPLOYEE MATTERS’’; 
and 
(B) by adding at the end the following new 
items: 
‘‘SUBCHAPTER II—WHISTLEBLOWER COMPLAINTS 
‘‘731. Whistleblower complaint defined. 
‘‘732. Treatment of whistleblower complaints. 
‘‘733. Adverse actions against supervisory employees who commit prohibited 
personnel actions relating to whistleblower complaints. 
‘‘734. Evaluation criteria of supervisors and treatment of bonuses. 
‘‘735. Training regarding whistleblower complaints. 
‘‘736. Reports to Congress.’’. 
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SEC. 5. REFORM OF PERFORMANCE APPRAISAL SYSTEM 
FOR SENIOR EXECUTIVE SERVICE EMPLOY-
EES OF THE DEPARTMENT OF VETERANS AF-
FAIRS. 
(a) PERFORMANCE APPRAISAL SYSTEM.— 
(1) IN GENERAL.—Chapter 7 of title 38, United 
States Code, is further amended by inserting after 
section 717, as added by section 3, the following new 
section: 
‘‘§ 719. Senior executives: performance appraisal 
‘‘(a) PERFORMANCE APPRAISAL SYSTEM.—(1) The 
performance appraisal system for individuals employed in 
senior executive positions in the Department required by 
section 4312 of title 5 shall provide, in addition to the 
requirements of such section, for five annual summary rat-
ings of levels of performance as follows: 
‘‘(A) One outstanding level. 
‘‘(B) One exceeds fully successful level. 
‘‘(C) One fully successful level. 
‘‘(D) One minimally satisfactory level. 
‘‘(E) One unsatisfactory level. 
‘‘(2) The following limitations apply to the rating of 
the performance of such individuals: 
‘‘(A) For any year, not more than 10 percent 
of such individuals who receive a performance rating 
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section 719, as added by section 5, the following new 
section: 
‘‘§ 721. Senior executives: reduction of benefits of in-
dividuals convicted of certain crimes 
‘‘(a) REDUCTION OF ANNUITY FOR REMOVED EM-
PLOYEE.—The Secretary shall order that the covered serv-
ice of an individual removed from a senior executive posi-
tion under section 713 of this title shall not be taken into 
account for purposes of calculating an annuity with re-
spect to such individual under chapter 83 or chapter 84 
of title 5, if— 
‘‘(1) the individual is convicted of a felony that 
influenced the individual’s performance while em-
ployed in the senior executive position; and 
‘‘(2) before such order is made, the individual 
is afforded notice and an opportunity for a hearing 
conducted by another department or agency of the 
Federal Government. 
‘‘(b) REDUCTION OF ANNUITY FOR RETIRED EM-
PLOYEE.—(1) The Secretary may order that the covered 
service of an individual who is subject to a removal or 
transfer action under section 713 of this title 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 
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