I 
114TH CONGRESS 
2D SESSION 
H. R. 5526 
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 purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 16, 2016 
Mr. WENSTRUP (for himself and Mrs. WALORSKI) introduced the following 
bill; which was referred to the Committee on Veterans’ Affairs, and in 
addition to the Committee on Oversight and Government Reform, for a 
period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the com-
mittee concerned 
A BILL 
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, 
SECTION 1. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Table of contents. 
Sec. 2. Appointment and pay for directors of medical centers and Veterans In-
tegrated Services Networks. 
Sec. 3. Modification to annual determination of staffing shortages in Veterans 
Health Administration. 
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Sec. 4. Repeal of compensation panels to determine market pay for physicians 
and dentists. 
Sec. 5. Executive management fellowship program. 
Sec. 6. Accountability of leaders for managing the Department of Veterans Af-
fairs. 
Sec. 7. Modification to veterans preference. 
Sec. 8. Reemployment of former employees. 
Sec. 9. Recruiting database. 
Sec. 10. Human resources academy. 
Sec. 11. Promotional opportunities for technical experts. 
Sec. 12. Comptroller General study on succession planning. 
Sec. 13. Information on hiring effectiveness. 
Sec. 14. Employment of students and recent graduates. 
Sec. 15. Exit surveys. 
SEC. 2. APPOINTMENT AND PAY FOR DIRECTORS OF MED-
ICAL CENTERS AND VETERANS INTEGRATED 
SERVICES NETWORKS. 
(a) 
APPOINTMENT.—Paragraph 
(4) 
of 
section 
7306(a) of title 38, United States Code, is amended to 
read as follows: 
‘‘(4) Such medical directors and directors of 
Veterans Integrated Service Networks as may be ap-
pointed to suit the needs of the Department, who, to 
the extent practicable, shall be a qualified doctor of 
medicine, a qualified doctor of dental surgery or 
dental medicine, or other qualified medical profes-
sional.’’. 
(b) PAY.— 
(1) IN GENERAL.—Subchapter IV of chapter 74 
of title 38, United States Code, is amended by add-
ing after section 7459 the following new section: 
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‘‘§ 7460. Medical directors and directors of Veterans 
Integrated Service Networks 
‘‘(a) ELEMENTS OF PAY.—Pay for covered directors 
shall consist of the following elements: 
‘‘(1) Base pay as provided for under subsection 
(b). 
‘‘(2) Market pay as provided for under sub-
section (c). 
‘‘(b) BASE PAY.—Each covered director is entitled to 
base pay determined under subsection (a)(1) of section 
7404 of this title. 
‘‘(c) MARKET PAY.—(1) Each covered director is eli-
gible for market pay under this subsection. 
‘‘(2) Market pay shall consist of pay intended to re-
flect the recruitment and retention needs for the assign-
ment (as defined by the Secretary) of a particular covered 
director. 
‘‘(3) The annual amount of the market pay payable 
to a covered director shall be determined by the Secretary 
on a case-by-case basis. 
‘‘(4) In determining the amount of market pay for 
covered directors, the Secretary shall— 
‘‘(A) consult two or more national surveys of 
pay for hospital directors, medical facility directors, 
or others individuals in similar positions, whether 
prepared by private, public, or quasi-public entities 
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in order to make a general assessment of the range 
of pays payable to covered directors, as applicable; 
and 
‘‘(B) take into account— 
‘‘(i) the experience of the covered director 
in managing facilities or program offices of the 
Department; 
‘‘(ii) the experience of the covered director 
in managing medical facilities for other depart-
ments or agencies of the Federal Government, 
private entities, or non-profit entities; 
‘‘(iii) the complexity of the facility man-
aged or to be managed by the covered director; 
‘‘(iv) the labor market for hospital direc-
tors, medical facility directors, or other individ-
uals in similar positions, which may cover any 
geographic area the Secretary considers appro-
priate; and 
‘‘(v) such other considerations as the Sec-
retary considers appropriate. 
‘‘(5) The amount of market pay of a covered director 
shall be evaluated by the Secretary not less often than 
once every two years. The amount of market pay may be 
adjusted as the result of such an evaluation. A covered 
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director whose market pay is so evaluated shall receive 
written notice of the results of such evaluation. 
‘‘(d) REQUIREMENTS AND LIMITATIONS ON TOTAL 
PAY.—(1)(A) Not less often than once every two years, 
the Secretary shall prescribe for Department-wide applica-
bility the minimum and maximum amounts of annual pay 
that may be paid under this section to covered directors. 
‘‘(B) Amounts prescribed under subparagraph (A) 
shall be published in the Federal Register, and shall not 
take effect until at least 60 days after the date of publica-
tion. 
‘‘(2) The sum of the total amount of the annual rate 
of base pay payable to a covered director under subsection 
(b) and the market pay determined for the covered direc-
tor under subsection (c) may not be less than the min-
imum amount, nor more than the maximum amount, spec-
ified pursuant to paragraph (1)(A). 
‘‘(3) In no case may the total amount of compensa-
tion paid to a covered director in any year exceed the 
amount of annual compensation (excluding expenses) 
specified in section 102 of title 3. 
‘‘(e) TREATMENT OF PAY.—Pay under subsections 
(b) and (c) shall be considered pay for all purposes, includ-
ing retirement benefits under chapters 83 and 84 of title 
5 and other benefits. 
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‘‘(f) ANCILLARY EFFECTS OF DECREASES IN PAY.— 
(1) A decrease in pay of a covered director resulting from 
an adjustment in the amount of market pay of the covered 
director under subsection (c) shall not be treated as an 
adverse action. 
‘‘(2) A decrease in pay of a covered director resulting 
from an involuntary reassignment in connection with a 
disciplinary action taken against the covered director is 
not subject to appeal. 
‘‘(g) DELEGATION OF RESPONSIBILITIES.—The Sec-
retary may delegate to an appropriate officer or employee 
of the Department any responsibility of the Secretary 
under this section, except for the responsibilities of the 
Secretary under subsection (d)(1). 
‘‘(h) COVERED DIRECTORS DEFINED.—In this sec-
tion, the term ‘covered directors’ means medical directors 
and directors of Veterans Integrated Service Networks ap-
pointed under section 7306(a)(4) of this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 7459 
the following new item: 
‘‘7460. Medical directors and directors of Veterans Integrated Service Net-
works.’’. 
(3) CONFORMING AMENDMENTS.—Chapter 74 
of such title is further amended— 
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SEC. 4. REPEAL OF COMPENSATION PANELS TO DETER-
MINE MARKET PAY FOR PHYSICIANS AND 
DENTISTS. 
Section 7431(c) of title 38, United States Code, is 
amended— 
(1) by striking paragraph (4); 
(2) by redesignating paragraphs (5), (6), and 
(7) as paragraphs (4), (5), and (6), respectively; and 
(3) in paragraph (6), as so redesignated, by 
striking ‘‘under paragraph (6)’’ and inserting 
‘‘under paragraph (5)’’. 
SEC. 5. 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 II—EXECUTIVE MANAGEMENT 
FELLOWSHIP PROGRAM 
‘‘§ 721. 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 eligible 
employees of the Veterans Benefits Administration and 
the Veterans Health Administration with training and ex-
perience in the private sector. 
‘‘(b) FELLOWSHIP.—(1) A fellowship provided under 
this section is a one-year fellowship during which the eligi-
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ble employee who is the recipient of the fellowship shall 
receive training at a private-sector entity that is engaged 
in the administration and delivery of health care or other 
services similar to the benefits administered by the Sec-
retary. 
‘‘(2) The Secretary shall enter into such agreements 
with private-sector entities as are necessary to carry out 
this section. 
‘‘(c) SELECTION OF RECIPIENTS.—In August of each 
year, the Secretary shall select not fewer than 18 and not 
more than 30 eligible employees to receive a fellowship 
under this section. To the extent practicable, the Secretary 
shall select such eligible employees from among eligible 
employees who are veterans in a manner that is reflective 
of the demographics of the veteran population of the 
United States. 
‘‘(d) ELIGIBLE EMPLOYEES.—For the purposes of 
this section, an eligible employee is an employee of the 
Veterans Benefits Administration or the Veterans Health 
Administration who— 
‘‘(1) 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 Schedule and not more 
than either the minimum rate of basic pay payable 
to a member of the Senior Executive Service under 
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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; 
‘‘(2) enters into an agreement with the Sec-
retary under subsection (e); and 
‘‘(3) submits to the Secretary an application 
containing such information and assurances as the 
Secretary may require. 
‘‘(e) AGREEMENTS.—An agreement between the Sec-
retary and a recipient of a fellowship shall be in writing, 
shall be signed by the recipient, and shall include the fol-
lowing provisions: 
‘‘(1) The Secretary’s agreement— 
‘‘(A) to provide the recipient with a fellow-
ship under this section; and 
‘‘(B) to afford the participant the oppor-
tunity for employment in the Veterans Benefits 
Administration or the Veterans Health Admin-
istration (subject to the availability of appro-
priated funds for such purpose and other quali-
fications established in accordance with section 
7402 of this title). 
‘‘(2) The recipient’s agreement— 
‘‘(A) to accept the fellowship; 
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‘‘(B) 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 two years as speci-
fied in the agreement; and 
‘‘(C) that, during the two-year period be-
ginning on the last day of the fellowship, the re-
cipient will not accept employment in the same 
industry as the industry of the private entity at 
which the recipient accepts the fellowship. 
‘‘(3) A provision that any financial obligation of 
the United States arising out of an agreement en-
tered into under this subchapter, and any obligation 
of the recipient which is conditioned on such agree-
ment, is contingent upon funds being appropriated 
for educational assistance under this subchapter. 
‘‘(4) A statement of the damages to which the 
United States is entitled under this subchapter for 
the recipient’s breach of the agreement. 
‘‘(5) Such other terms as the Secretary deter-
mines are required to be included in the agreement. 
‘‘(f) TREATMENT OF RECIPIENTS.—The recipient of 
a fellowship under this section shall be considered an em-
ployee of the Department for all purposes, including for 
purposes of receiving a salary and benefits, and shall re-
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main eligible for all promotion and incentive programs 
otherwise available to such an employee. 
‘‘(g) REPORT TO CONGRESS.—Not later than 60 days 
after completing a fellowship under this section, a recipi-
ent of the fellowship shall submit to the Secretary a report 
on the fellowship. Each such report shall describe the du-
ties of the recipient during the fellowship and any rec-
ommendations of the recipient for the application of indus-
try processes, technologies, and best practices. Not later 
than seven 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) PRIVATE-SECTOR ENTITY DEFINED.—In this 
section, the term ‘private-sector entity’ includes an entity 
operating under a public-private partnership.’’. 
(b) DEADLINE
FOR IMPLEMENTATION.—Not later 
than 90 days 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 721 of title 38, United States Code, as added by 
subsection (a). 
(c) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new items: 
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‘‘SUBCHAPTER II—EXECUTIVE MANAGEMENT FELLOWSHIP PROGRAM 
‘‘721. Executive Management Fellowship Program.’’. 
SEC. 6. 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 709 the 
following new section: 
‘‘§ 709A. 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 
is appointed as a career appointee (as that term is defined 
in section 3132(a)(4) of title 5) within the Senior Execu-
tive Service at the Department. 
‘‘(b) ELEMENTS OF PLAN.—Each annual perform-
ance plan conducted under subsection (a) with respect to 
a political appointee of the Department shall include an 
assessment of whether the appointee is meeting the fol-
lowing goals: 
‘‘(1) Recruiting, selecting, and retaining well- 
qualified individuals for employment at the Depart-
ment. 
‘‘(2) Engaging and motivating employees. 
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‘‘(3) Training and developing employees and 
preparing those employees for future leadership roles 
within the Department. 
‘‘(4) Holding each employee of the Department 
that is a manager accountable for addressing issues 
relating to performance, in particular issues relating 
to the performance of employees that report to the 
manager. 
‘‘(c) DEFINITION
OF POLITICAL APPOINTEE.—In 
this section, the term ‘political appointee’ means an em-
ployee of the Department who holds— 
‘‘(1) a position which has been excepted from 
the competitive service by reason of its confidential, 
policy-determining, policy-making, or policy-advo-
cating character; or 
‘‘(2) a position in the Senior Executive Service 
as a noncareer appointee (as such term is defined in 
section 3132(a) of title 5).’’. 
(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 709 the fol-
lowing new item: 
‘‘709A. Annual performance plan for political appointees.’’. 
SEC. 7. MODIFICATION TO VETERANS PREFERENCE. 
(a) 
ACTIVE
DUTY
REQUIREMENT.—Section 
2108(1)(B) and (D) of title 5, United States Code, are 
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amended by striking ‘‘consecutive’’ in each instance it ap-
pears and inserting ‘‘cumulative’’. 
(b) EXPANSION OF ELIGIBILITY OF RETIRED VET-
ERANS.—Section 2108(4) of title 5, United States Code, 
is amended to read as follows: 
‘‘(4) ‘preference eligible’ includes a retired 
member of the armed forces; and’’. 
(c) VETERANS PREFERENCE FOR VA SENIOR EX-
ECUTIVES.— 
(1) IN GENERAL.—To the greatest extent prac-
ticable and notwithstanding the matter following 
subparagraph (H) of section 2108(3) of title 5, 
United States Code, the Secretary of Veterans Af-
fairs shall give a hiring preference to any preference 
eligible when selecting an individual for appointment 
to a senior executive position. 
(2) DEFINITIONS.—For purposes of this sub-
section— 
(A) the term ‘‘preference eligible’’ has the 
meaning given such term in section 2108(3) of 
title 5, United States Code; and 
(B) the terms ‘‘individual’’ and ‘‘senior ex-
ecutive position’’ have the meaning given such 
terms in paragraphs (1) and (3), respectively, 
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of section 713(g) of title 38, United States 
Code. 
(3) 
CONFORMING
AMENDMENT.—Section 
2108(3) of title 5, United States Code, is amended 
in the matter following subparagraph (H) by insert-
ing ‘‘(except as provided for under section 8(c) of 
the To improve the authority of the Secretary of 
Veterans Affairs to hire and retain physicians and 
other employees of the Department of Veterans Af-
fairs, and for other purposes Act of 2016)’’ after 
‘‘members of, the Senior Executive Service’’. 
SEC. 8. REEMPLOYMENT OF FORMER EMPLOYEES. 
(a) IN GENERAL.—The Secretary of Veterans Affairs 
may noncompetitively appoint a qualified former employee 
to any position within the competitive service or any ex-
cepted service position under chapter 74 of title 38, United 
States Code, at the Department of Veterans Affairs that 
is one grade higher than the grade of the position at the 
Department most recently occupied by the employee. 
(b) LIMITATION.—The Secretary may not appoint a 
qualified former employee to a position that is more than 
one grade (or equivalent) higher than the position at the 
Department most recently occupied by the employee. 
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(c) DEFINITION
OF
QUALIFIED
FORMER
EM-
PLOYEE.—For purposes of this section, the term ‘‘quali-
fied former employee’’ means any individual who— 
(1) formerly occupied any position at the De-
partment of Veterans Affairs within 2 years before 
applying for reemployment at the Department; 
(2) voluntarily left such position, or was subject 
to a reduction in force, and had a satisfactory per-
formance record while occupying such position; and 
(3) since leaving such position has maintained 
licensing requirements, related to the position, if 
any, and gained skill, knowledge, or other factors re-
lated to the position. 
SEC. 9. RECRUITING DATABASE. 
(a) ESTABLISHMENT.—The Secretary of Veterans 
Affairs shall establish a single database that lists each va-
cant position in the Department of Veterans Affairs that 
the Secretary determines is critical to the mission of the 
Department, difficult to fill, or both. 
(b) QUALIFIED APPLICANT.—If the Secretary deter-
mines that an applicant for a vacant position listed in the 
database established under subsection (a) is qualified for 
such position but does not select the applicant for such 
position, the Secretary, at the election of the applicant, 
shall consider the applicant for other similar vacant posi-
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tions listed in the database for which the applicant is 
qualified. 
(c) PROLONGED VACANCIES.—If the Secretary does 
not fill a vacant position listed in the database established 
under subsection (a) after a period determined appro-
priate by the Secretary, the Secretary— 
(1) shall ensure that applicants described in 
subsection (b) are considered for such position; and 
(2) shall use the database established under 
subsection (a) to assist in filling such position. 
(d) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretary shall submit 
to Congress a report on the use and efficacy of the data-
base established under subsection (a). 
SEC. 10. HUMAN RESOURCES ACADEMY. 
(a) IN GENERAL.—The Secretary of Veterans Affairs 
shall provide to human resources professionals of the Vet-
erans Health Administration of the Department of Vet-
erans Affairs training on how to best recruit and retain 
employees of the Veterans Health Administration, includ-
ing with respect to any recruitment and retention matters 
that are unique to the Veterans Health Administration 
pursuant to chapter 74 of title 38, United States Code, 
or other provisions of law. The Secretary shall provide 
such training in a manner that the Secretary determines 
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