IB 
Union Calendar No. 17 
115TH CONGRESS 
1ST SESSION H. R. 1367 
[Report No. 115–35, Part I] 
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 
MARCH 6, 2017 
Mr. WENSTRUP introduced the following bill; which was referred to the Com-
mittee on Veterans’ Affairs, and in addition to the Committee on Over-
sight and Government Reform, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
MARCH 10, 2017 
Additional sponsors: Miss GONZA´LEZ-COLO´N of Puerto Rico, Mr. DUNN, Mr. 
SESSIONS, and Ms. SINEMA 
MARCH 10, 2017 
Reported from the Committee on Veterans’ Affairs 
MARCH 10, 2017 
The Committee on Oversight and Government Reform discharged; committed 
to the Committee of the Whole House on the State of the Union and or-
dered to be printed 
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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. 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. Information on hiring effectiveness. 
Sec. 12. Employment of students and recent graduates. 
Sec. 13. Exit surveys. 
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 ‘‘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 one-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. 
‘‘(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 two years as speci-
fied in the agreement; and 
‘‘(iii) that, during the two-year period be-
ginning on the last day of the fellowship, the 
participant will not accept employment in the 
same industry as the industry of the private- 
sector entity at which the participant accepts 
the fellowship. 
‘‘(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 seven days after receiving each such report, the 
Secretary shall submit to the Committees on Veterans’ Af-
fairs of the Senate and House of Representatives such re-
port 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 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 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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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. 
‘‘(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, 
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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 717 the fol-
lowing new item: 
‘‘719. Annual performance plan for political appointees.’’. 
SEC. 5. MODIFICATION TO VETERANS PREFERENCE. 
(a) 
ACTIVE
DUTY
REQUIREMENT.—Section 
2108(1)(B) and (D) of title 5, United States Code, are 
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’’. 
SEC. 6. 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 
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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. 
(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 two 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. 7. 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. 
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(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-
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. 8. 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 
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SEC. 10. COMPTROLLER GENERAL STUDY ON SUCCESSION 
PLANNING. 
(a) STUDY.—The Comptroller General of the United 
States shall conduct a study on each of the following: 
(1) The succession planning at each medical fa-
cility of the Department of Veterans Affairs. 
(2) The succession planning at the Veterans 
Benefits Administration and the National Cemetery 
Administration of the Department. 
(b) ELEMENTS.—The study under subsection (a) 
shall include, for each entity studied under the study, the 
following: 
(1) A determination of the mission-critical posi-
tions within the entity and the vacancy risk of such 
positions. 
(2) An analysis of the future needs for mission- 
critical positions and gaps within the existing talent 
pool of the entity. 
(3) A description of strategies to close skill 
gaps through the use of training for existing staff, 
targeted recruitment, and hiring. 
(4) A plan to regularly evaluate progress of 
staff and update existing succession plans using 
clear and measurable metrics and benchmarks. 
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(5) A demonstration of the capacity of the enti-
ty to execute succession plans with successful succes-
sion management strategies. 
(6) Any other matters the Comptroller General 
determines appropriate. 
(c) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Comptroller General shall 
submit to the Committees on Veterans’ Affairs of the 
House of Representatives and the Senate a report con-
taining each study conducted under subsection (a). 
SEC. 11. INFORMATION ON HIRING EFFECTIVENESS. 
(a) IN GENERAL.—The Secretary of Veterans Affairs 
shall measure and collect information on indicators of hir-
ing effectiveness as follows: 
(1) With respect to recruiting and hiring— 
(A) the ability to reach and recruit well- 
qualified talent from diverse talent pools, in-
cluding sources of candidates for mission-crit-
ical occupations; 
(B) the use and impact of special hiring 
authorities and flexibilities to recruit most 
qualified applicants, including the use of stu-
dent internships as a talent pool for permanent 
hires; 
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(C) the use and impact of special hiring 
authorities and flexibilities to recruit diverse 
candidates, including veteran, minority and dis-
abled candidates; 
(D) the use and impact of special hiring 
authorities and flexibilities to recruit candidates 
for mission-critical occupations and occupations 
with shortages; 
(E) the age, educational level, and source 
of applicants; 
(F) the length of time between the date on 
which a position is advertised and the date on 
which a first offer of employment is made; 
(G) the length of time between the date on 
which a first offer of employment for a position 
is made and the date on which a new hire 
starts in that position; 
(H) the number of internal and external 
applicants for positions; and 
(I) the number of offers accepted com-
pared to the number of offers made for perma-
nent positions. 
(2) With respect to the hiring authority— 
(A) the satisfaction of the hiring authority 
with— 
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(i) the quality of new hires; 
(ii) the match between the skills of 
newly hired individuals and the needs of 
the Department; 
(iii) the hiring process and hiring out-
comes after the first year of the employ-
ment of a new hire; and 
(iv) the length of time that elapses to 
fill a position and for a new hire to begin 
working in a new position; and 
(B) mission-critical deficiencies filled by 
new hires and the connection between mission- 
critical deficiencies and annual agency perform-
ance. 
(3) Satisfaction of employment applicants with 
the hiring process, including with respect to the clar-
ity of job announcement, reasons for withdrawal of 
applications, user-friendliness of the application 
process, communication regarding status of applica-
tion, and timeliness of hiring decision. 
(4) With respect to a newly hired employee— 
(A) the satisfaction of the employee with 
the hiring process as described in paragraph 
(3); 
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(B) the satisfaction with the process of 
joining and becoming oriented with the Depart-
ment, including with respect to the timeliness of 
such process after the hiring decision, the ori-
entation process, and being provided with time-
ly and useful new employee information and as-
sistance after the hire is made but before the 
new hire starts in that position and after the 
new hire has begun; 
(C) attrition and reasons for leaving; 
(D) investment in training and develop-
ment for the employee during the first year of 
employment; and 
(E) significant barriers to the effective re-
cruitment, selection, joining and becoming ori-
ented with the Department, and retention of 
employees. 
(b) DISAGGREGATION OF DATA.—To the extent prac-
ticable and in a manner which protects personally identifi-
able information of applicants and employees, the Sec-
retary shall collect and report data collected under sub-
section (a) disaggregated by facility or Veterans Inte-
grated Service Network. 
(c) REPORTS.— 
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(1) IN GENERAL.—On an annual basis, the Sec-
retary shall submit to the Committees on Veterans’ 
Affairs of the House of Representatives and the Sen-
ate a report of the information collected under sub-
section (a). 
(2) AVAILABILITY OF RECRUITING AND HIRING 
INFORMATION.—On an annual basis, the Secretary 
shall make publicly available the information col-
lected under subsection (a) in a consistent and ma-
chine-readable format to allow for a comparison of 
hiring effectiveness and experience by Veterans Inte-
grated Service Network or comparable public or pri-
vate sector organization. 
SEC. 12. EMPLOYMENT OF STUDENTS AND RECENT GRAD-
UATES. 
(a) IN GENERAL.—The Secretary of Veterans Affairs 
shall prescribe regulations to allow for excepted service ap-
pointments of students and recent graduates leading to 
conversion to career or career conditional employment of 
a student or recent graduate of a qualifying educational 
institution, as defined by the Department. 
(b) APPLICABILITY.—The conversion authority de-
scribed in subsection (a) shall be applicable to individuals 
in good standing who— 
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priate non-Department entity with experience developing 
such surveys. 
(b) SURVEY CONTENT.—The survey shall include, at 
a minimum— 
(1) reasons for leaving the Department; 
(2) efforts made by the supervisor of the em-
ployee to retain the individual; 
(3) the extent of job satisfaction and engage-
ment during the employment; 
(4) the intent of employee to either remain em-
ployed within the Federal Government or to leave 
employment with the Federal Government; and 
(5) such other matters as the Secretary deter-
mines appropriate. 
(c) ANONYMITY OF SURVEY CONTENT.—The Sec-
retary shall ensure that, to the extent possible, data col-
lected under subsection (a) is anonymized and personally 
identifiable information is removed. 
(d) SHARING
OF SURVEY DATA.—The Secretary 
shall ensure that the results of the survey required by sub-
section (a) are shared on an annual basis with directors 
and managers of facilities of the Department and the Vet-
erans Integrated Service Networks. 
(e) REPORT.—Not later than one year after the date 
of the enactment of this Act, and annually thereafter, the 
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Secretary shall submit to the Committees on Veterans’ Af-
fairs of the House of Representatives and the Senate a 
report containing the aggregate results of the exit survey 
under subsection (a) covering the year prior to the report. 
The report shall include— 
(1) an analysis of the most common reasons 
employees choose to leave the Department; 
(2) steps the Secretary is taking to improve re-
tention, particularly for mission-critical occupations; 
(3) the demographic characteristics of employ-
ees choosing to leave the Department; 
(4) any legislative barriers to improving em-
ployee retention; and 
(5) the number of employees who took the exit 
survey under subsection (a). 
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Union Calendar No. 17 
115TH CONGRESS 
1ST SESSION 
H. R. 1367 
[Report No. 115–35, Part I] 
A BILL 
To improve the authority of the Secretary of Vet-
erans Affairs to hire and retain physicians and 
other employees of the Department of Veterans 
Affairs, and for other purposes. 
MARCH 10, 2017 
Reported from the Committee on Veterans’ Affairs 
MARCH 10, 2017 
The Committee on Oversight and Government Reform 
discharged; committed to the Committee of the Whole 
House on the State of the Union and ordered to be 
printed 
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