I 
114TH CONGRESS 
2D SESSION 
H. R. 6062 
To amend title 38, United States Code, to make certain improvements in 
the laws administered by the Secretary of Veterans Affairs, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 15, 2016 
Mr. TAKANO introduced the following bill; which was referred to the Com-
mittee on Veterans’ Affairs, and in addition to the Committees on Armed 
Services, Oversight and Government Reform, Energy and Commerce, 
Ways and Means, Education and the Workforce, Financial Services, 
Small Business, the Budget, and the Judiciary, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend title 38, United States Code, to make certain 
improvements in the laws administered by the Secretary 
of Veterans Affairs, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Supporting, Employing, and Recognizing Veterans in 
Communities Everywhere Act’’ or the ‘‘SERVICE Act’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—ACCOUNTABILITY 
Subtitle A—Whistleblower Protections 
Sec. 101. Treatment of whistleblower complaints in Department of Veterans 
Affairs. 
Subtitle B—Employees 
Sec. 111. Removal of employees of Department of Veterans Affairs based on 
performance or misconduct. 
Sec. 112. Suspension and removal of Department of Veterans Affairs employees 
for performance or misconduct that is a threat to public health 
or safety. 
Sec. 113. Authority to recoup bonuses or awards paid to employees of Depart-
ment of Veterans Affairs. 
Sec. 114. Authority to recoup relocation expenses paid to or on behalf of em-
ployees of Department of Veterans Affairs. 
Subtitle C—Supervisors and Senior Executives 
Sec. 121. Reduction of benefits for members of the Senior Executive Service 
within the Department of Veterans Affairs convicted of certain 
crimes. 
Sec. 122. Improved authorities of Secretary of Veterans Affairs to improve ac-
countability of senior executives. 
Subtitle D—Other Matters 
Sec. 131. Annual report on performance of regional offices of the Department 
of Veterans Affairs. 
TITLE II—HEALTH CARE 
Subtitle A—Access to Care 
Sec. 201. Authorization of agreements between the Department of Veterans Af-
fairs and non-Department health care providers. 
Sec. 202. Modification of authority to enter into agreements with State homes 
to provide nursing home care. 
Sec. 203. Requirement for advance appropriations for the Care in the Commu-
nity account of the Department of Veterans Affairs. 
Sec. 204. Annual transfer of amounts within Department of Veterans Affairs 
to pay for health care from non-Department providers. 
Sec. 205. Elimination of requirement to act as secondary payer for care relat-
ing to non-service-connected disabilities under Choice Program. 
Sec. 206. Authorization of use of certain amounts appropriated to the Veterans 
Choice Fund for other non-Department of Veterans Affairs 
care. 
Sec. 207. Modification of process through which Department of Veterans Af-
fairs records obligations for non-Department care. 
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Sec. 208. Authority to disclose certain medical records of veterans who receive 
non-Department of Veterans Affairs health care. 
Sec. 209. Child care assistance for veterans receiving mental health care and 
other intensive health care services provided by the Department 
of Veterans Affairs. 
Subtitle B—Expansion of Care 
Sec. 211. In vitro fertilization for certain disabled veterans. 
Sec. 212. Adoption assistance for certain disabled veterans. 
Sec. 213. Expansion of eligibility for participation in and services provided 
under family caregiver program of Department of Veterans Af-
fairs. 
Sec. 214. Authority to transfer entitlement to Post-9/11 educational assistance 
to family members by seriously injured veterans in need of per-
sonal care services. 
Sec. 215. Enhancement of special compensation for members of the uniformed 
services with injuries or illnesses requiring assistance in every-
day living. 
Sec. 216. Flexible work arrangements for certain Federal employees. 
Sec. 217. Lifespan respite care. 
Sec. 218. Interagency working group on caregiver policy. 
Sec. 219. Studies on post-September 11, 2001, veterans and seriously injured 
veterans. 
Sec. 220. Increase of maximum age for children eligible for medical care under 
CHAMPVA program. 
Sec. 221. Expansion of reimbursement of veterans for emergency treatment 
and urgent care. 
Sec. 222. Provision of rehabilitative equipment and human-powered vehicles to 
certain disabled veterans. 
Subtitle C—Health Care Quality 
Sec. 231. Establishment of Office of Health Care Quality in Veterans Health 
Administration. 
Subtitle D—Medical Workforce 
Sec. 241. Disregard of resident slots that include VA training against the Medi-
care graduate medical education limitations. 
Sec. 242. Extension of period for increase in graduate medical education resi-
dency positions at medical facilities of the Department of Vet-
erans Affairs. 
Sec. 243. Recruitment of physicians in Department of Veterans Affairs. 
Subtitle E—Mental Health Care 
Sec. 251. Standard of proof for service-connection of mental health conditions 
related to military sexual trauma. 
Subtitle F—Opioid Therapy and Pain Management 
Sec. 261. Findings; sense of Congress. 
Sec. 262. Pilot program to improve treatment for veterans suffering from 
opioid addiction and chronic pain. 
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Sec. 263. Assessment of Department and non-Department capabilities to treat 
opioid dependency and ensure access to needed health care 
services. 
Sec. 264. Increased access to naloxone and other treatments for reversing 
opioid overdose. 
Subtitle G—Toxic Exposure 
Sec. 271. Center of excellence in prevention, diagnosis, mitigation, treatment, 
and rehabilitation of health conditions relating to exposure to 
burn pits and other environmental exposures. 
TITLE III—EDUCATION 
Subtitle A—GI Bill Oversight 
Sec. 301. Department of Veterans Affairs Inspector General heightened scru-
tiny of programs of education. 
Sec. 302. Department of Veterans Affairs disapproval of courses of education 
offered by institutions of higher learning accused of certain de-
ceptive or misleading practices. 
Sec. 303.
Interagency working group on programs of education employing de-
ceptive or misleading practices. 
Sec. 304. Approval of courses for purposes of educational assistance programs 
administered by Secretary of Veterans Affairs. 
Sec. 305. Program participation agreements for proprietary institutions of 
higher education. 
Sec. 306. Department of Defense and Department of Veterans Affairs actions 
on ineligibility of certain proprietary institutions of higher edu-
cation for participation in programs of educational assistance. 
Subtitle B—Supports for Student Veterans 
Sec. 311. Restoration of entitlement to educational assistance and other relief 
for veterans affected by closures of educational institutions. 
Sec. 312. Work-study allowance. 
Sec. 313. Costs of applying to institution of higher learning. 
Sec. 314. Grant program to establish, maintain, and improve veteran student 
centers. 
Sec. 315. Continuation of awards. 
Sec. 316. Department of Veterans Affairs grants to educational institutions for 
provision of child care services. 
Sec. 317. Pilot program to provide educational assistance to physician assist-
ants to be employed at the Department of Veterans Affairs. 
Sec. 318. Establishment of standards for the Department of Veterans Affairs 
for using educational assistance programs to educate and hire 
physician assistants. 
Sec. 319. Establishment of pay grades for physician assistants of the Depart-
ment of Veterans Affairs and requirement to provide competi-
tive pay. 
Subtitle C—Eligibility 
Sec. 321. Consideration of eligibility for post-9/11 educational assistance for 
certain time on active duty in reserve components of armed 
forces. 
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Sec. 322. Clarification of eligibility for Marine Gunnery Sergeant John David 
Fry Scholarship. 
Sec. 323. Consideration of eligibility for Post-9/11 Educational Assistance for 
certain time on active duty in reserve components of Armed 
Forces. 
Sec. 324. Eligibility for Post-9/11 Educational Assistance for certain members 
of reserve components of Armed Forces who lost entitlement to 
educational assistance under Reserve Educational Assistance 
Program. 
TITLE IV—DISABILITY COMPENSATION AND PENSION 
Sec. 401. Appeals reform. 
Sec. 402. Treatment of medical evidence provided by non-Department of Vet-
erans Affairs medical professionals in support of claims for dis-
ability compensation. 
Sec. 403. Report on progress of Acceptable Clinical Evidence initiative. 
Sec. 404. Annual report. 
Sec. 405. Board of Veterans’ Appeals video hearings. 
Sec. 406. Expedited payment of survivor’s benefits. 
Sec. 407. Definition of spouse for purposes of veteran benefits to reflect new 
State definitions of spouse. 
Sec. 408. Concurrent receipt of both retired pay and veterans’ disability com-
pensation for military retirees with compensable service-con-
nected disabilities. 
Sec. 409. Extension of certain authorities of Secretary of Veterans Affairs re-
garding associations between diseases and exposure to dioxin 
and other chemical compounds in herbicides. 
TITLE V—HOUSING AND HOMELESSNESS 
Sec. 501. Five-year extension of homeless veterans reintegration programs. 
Sec. 502. Clarification of eligibility for services under homeless veterans re-
integration programs. 
Sec. 503. Special assistant for Veterans Affairs in the Department of Housing 
and Urban Development. 
Sec. 504. Annual supplemental report on veterans homelessness. 
Sec. 505. Establishment of pilot grant program for homeless veterans. 
Sec. 506. Expansion of definition of homeless veteran for purposes of benefits 
under the laws administered by the Secretary of Veterans Af-
fairs. 
TITLE VI—EMPLOYMENT AND TRAINING 
Sec. 601. Direct employment pilot program for members of the National Guard 
and Reserve and veterans of the Armed Forces. 
Sec. 602. Preference for offerors employing veterans. 
Sec. 603. Veterans Manufacturing Employment Program. 
Sec. 604. Modification of treatment under contracting goals and preferences of 
Department of Veterans Affairs. 
Sec. 605. Access to excess or surplus property for veteran-owned small busi-
nesses. 
TITLE VII—CONSTRUCTION AND LEASES 
Sec. 701. Congressional approval of Department of Veterans Affairs major 
medical facility leases. 
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Sec. 702. Program for the construction of Department of Veterans Affairs 
major medical facility projects by non-Federal entities under 
partnership agreements. 
Sec. 703. Pilot program to accept medical facilities and related property. 
Sec. 704. Authority to enter into certain leases at the Department of Veterans 
Affairs West Los Angeles Campus. 
Sec. 705. Authorization of major medical facility lease in Oxnard, California. 
TITLE VIII—OTHER MATTERS 
Sec. 801. Provision of status under law by honoring certain members of the re-
serve components as veterans. 
Sec. 802. Return of noncitizen veterans removed from the United States; status 
for noncitizen veterans in the United States. 
Sec. 803. Review of discharge characterization. 
Sec. 804. Historical review of discharges from the Armed Forces due to sexual 
orientation. 
Sec. 805. Modification of Article 125 of the Uniform Code of Military Justice. 
Sec. 806. Exemption from immigrant visa limit. 
Sec. 807. Certain service in the organized military forces of the Philippines and 
the Philippine Scouts deemed to be active service. 
Sec. 808. Eligibility for interment in national cemeteries. 
TITLE I—ACCOUNTABILITY 
Subtitle A—Whistleblower 
Protections 
SEC. 101. TREATMENT OF WHISTLEBLOWER COMPLAINTS 
IN DEPARTMENT OF VETERANS AFFAIRS. 
(a) IN GENERAL.—Chapter 7 of title 38, United 
States Code, is amended by adding at the end the fol-
lowing new subchapter: 
‘‘SUBCHAPTER II—WHISTLEBLOWER 
COMPLAINTS 
‘‘§ 741. Office of Accountability and Whistleblower 
Protection 
‘‘(a) ESTABLISHMENT.—There is established in the 
Department an office to be known as the Office of Ac-
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countability and Whistleblower Protection (in this section 
referred to as the ‘Office’). 
‘‘(b) HEAD OF OFFICE.—(1) The head of the Office 
shall be responsible for the functions of the Office and 
shall be appointed by the President pursuant to section 
308(a) of this title. 
‘‘(2) The head of the Office shall be known as the 
‘Assistant Secretary for Accountability and Whistleblower 
Protection’. 
‘‘(3) The Assistant Secretary shall report directly to 
the Secretary on all matters relating to the Office. 
‘‘(4) Notwithstanding section 308(b) of this title, the 
Secretary may only assign to the Assistant Secretary re-
sponsibilities relating to the functions of the Office set 
forth in subsection (c). 
‘‘(c) FUNCTIONS.—(1) The functions of the Office 
are as follows: 
‘‘(A) Advising the Secretary on all matters of 
the Department relating to accountability, including 
accountability of employees of the Department, re-
taliation against whistleblowers, and such matters as 
the Secretary considers similar and affect public 
trust in the Department. 
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‘‘(B) 
Issuing 
reports 
and 
providing 
rec-
ommendations related to the duties described in sub-
paragraph (A). 
‘‘(C) Receiving whistleblower disclosures. 
‘‘(D) Referring whistleblower disclosures re-
ceived under subparagraph (C) for investigation to 
the Office of the Medical Inspector, the Office of In-
spector General, or other investigative entity, as ap-
propriate, if the Assistant Secretary has reason to 
believe the whistleblower disclosure is evidence of a 
violation of a provision of law, mismanagement, 
gross waste of funds, abuse of authority, or a sub-
stantial and specific danger to public health and 
safety. 
‘‘(E) Receiving and referring disclosures from 
the Special Counsel for investigation to the Medical 
Inspector of the Department, the Inspector General 
of the Department, or such other person with inves-
tigatory authority, as the Assistant Secretary con-
siders appropriate. 
‘‘(F) Recording, tracking, reviewing, and con-
firming implementation of recommendations from 
audits and investigations carried out by the Inspec-
tor General of the Department, the Medical Inspec-
tor of the Department, the Special Counsel, and the 
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Comptroller General of the United States, including 
the imposition of disciplinary actions and other cor-
rective actions contained in such recommendations. 
‘‘(G) Analyzing data from the Office and the 
Office of Inspector General telephone hotlines, other 
whistleblower disclosures, disaggregated by facility 
and area of health care if appropriate, and relevant 
audits and investigations to identify trends and issue 
reports to the Secretary based on analysis conducted 
under this subparagraph. 
‘‘(H) Receiving, reviewing, and investigating al-
legations of misconduct, retaliation, or poor perform-
ance involving— 
‘‘(i) an individual in a senior executive po-
sition (as defined in section 713(d) of this title) 
in the Department; 
‘‘(ii) an individual employed in a confiden-
tial, policy-making, policy-determining, or pol-
icy-advocating position in the Department; or 
‘‘(iii) a supervisory employee, if the allega-
tion involves retaliation against an employee for 
making a whistleblower disclosure. 
‘‘(I) Making such recommendations to the Sec-
retary for disciplinary action as the Assistant Sec-
retary considers appropriate after substantiating any 
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allegation of misconduct or poor performance pursu-
ant to an investigation carried out as described in 
subparagraph (F) or (H). 
‘‘(2) In carrying out the functions of the Office, the 
Assistant Secretary shall ensure that the Office maintains 
a toll-free telephone number and Internet website to re-
ceive anonymous whistleblower disclosures. 
‘‘(3) In any case in which the Assistant Secretary re-
ceives a whistleblower disclosure from an employee of the 
Department under paragraph (1)(C), the Assistant Sec-
retary may not disclose the identity of the employee with-
out the consent of the employee, except in accordance with 
the provisions of section 552a of title 5, or as required 
by any other applicable provision of Federal law. 
‘‘(d) STAFF AND RESOURCES.—The Secretary shall 
ensure that the Assistant Secretary has such staff, re-
sources, and access to information as may be necessary 
to carry out the functions of the Office. 
‘‘(e) RELATION
TO OFFICE
OF GENERAL COUN-
SEL.—The Office shall not be established as an element 
of the Office of the General Counsel and the Assistant 
Secretary may not report to the General Counsel. 
‘‘(f) REPORTS.—(1)(A) Not later than June 30 of 
each calendar year, beginning with June 30, 2017, the As-
sistant Secretary shall submit to the Committee on Vet-
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erans’ Affairs of the Senate and the Committee on Vet-
erans’ Affairs of the House of Representatives a report 
on the activities of the Office during the calendar year 
in which the report is submitted. 
‘‘(B) Each report submitted under subparagraph (A) 
shall include, for the period covered by the report, the fol-
lowing: 
‘‘(i) A full and substantive analysis of the ac-
tivities of the Office, including such statistical infor-
mation as the Assistant Secretary considers appro-
priate. 
‘‘(ii) Identification of any issues reported to the 
Secretary under subsection (c)(1)(G), including such 
data as the Assistant Secretary considers relevant to 
such issues and any trends the Assistant Secretary 
may have identified with respect to such issues. 
‘‘(iii) Identification of such concerns as the As-
sistant Secretary may have regarding the size, staff-
ing, and resources of the Office and such rec-
ommendations as the Assistant Secretary may have 
for legislative or administrative action to address 
such concerns. 
‘‘(iv) Such recommendations as the Assistant 
Secretary may have for legislative or administrative 
action to improve— 
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‘‘(I) the process by which concerns are re-
ported to the Office; and 
‘‘(II) the protection of whistleblowers with-
in the Department. 
‘‘(v) Such other matters as the Assistant Sec-
retary considers appropriate regarding the functions 
of the Office or other matters relating to the Office. 
‘‘(2) If the Secretary receives a recommendation for 
disciplinary action under subsection (c)(1)(I) and does not 
take or initiate the recommended disciplinary action before 
the date that is 60 days after the date on which the Sec-
retary received the recommendation, the Secretary shall 
submit to the Committee on Veterans’ Affairs of the Sen-
ate and the Committee on Veterans’ Affairs of the House 
of Representatives a detailed justification for not taking 
or initiating such disciplinary action. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) The term ‘supervisory employee’ means an 
employee of the Department who is a supervisor as 
defined in section 7103(a) of title 5. 
‘‘(2) The term ‘whistleblower’ means one who 
makes a whistleblower disclosure. 
‘‘(3) The term ‘whistleblower disclosure’ means 
any disclosure of information by an employee of the 
Department or individual applying to become an em-
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ployee of the Department which the employee or in-
dividual reasonably believes evidences— 
‘‘(A) a violation of a provision of law; or 
‘‘(B) gross mismanagement, a gross waste 
of funds, an abuse of authority, or a substantial 
and specific danger to public health or safety. 
‘‘§ 742. Protection of whistleblowers as criteria in 
evaluation of supervisors 
‘‘(a) DEVELOPMENT
AND USE
OF CRITERIA RE-
QUIRED.—The Secretary, in consultation with the Assist-
ant Secretary of Accountability and Whistleblower Protec-
tion, shall develop criteria that— 
‘‘(1) the Secretary shall use as a critical ele-
ment in any evaluation of the performance of a su-
pervisory employee; and 
‘‘(2) promotes the protection of whistleblowers. 
‘‘(b) PRINCIPLES FOR PROTECTION OF WHISTLE-
BLOWERS.—The criteria required by subsection (a) shall 
include principles for the protection of whistleblowers, 
such as the degree to which supervisory employees respond 
constructively when employees of the Department report 
concerns, take responsible action to resolve such concerns, 
and foster an environment in which employees of the De-
partment feel comfortable reporting concerns to super-
visory employees or to the appropriate authorities. 
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‘‘(c) SUPERVISORY
EMPLOYEE
AND
WHISTLE-
BLOWER DEFINED.—In this section, the terms ‘super-
visory employee’ and ‘whistleblower’ have the meanings 
given such terms in section 323 of this title. 
‘‘§ 743. Training regarding whistleblower disclosures 
‘‘(a) TRAINING.—Not less frequently than once every 
two years, the Secretary, in coordination with the Whistle-
blower Protection Ombudsman designated under section 
3(d)(1)(C) of the Inspector General Act of 1978 (5 U.S.C. 
App.), shall provide to each employee of the Department 
training regarding whistleblower disclosures, including— 
‘‘(1) an explanation of each method established 
by law in which an employee may file a whistle-
blower disclosure; 
‘‘(2) the right of the employee to petition Con-
gress regarding a whistleblower disclosure in accord-
ance with section 7211 of title 5; 
‘‘(3) an explanation that the employee may not 
be prosecuted or reprised against for disclosing in-
formation to Congress, the Inspector General, or an-
other investigatory agency in instances where such 
disclosure is permitted by law, including under sec-
tions 5701, 5705, and 7732 of this title, under sec-
tion 552a of title 5 (commonly referred to as the 
Privacy Act), under chapter 93 of title 18, and pur-
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suant to regulations promulgated under section 
264(c) of the Health Insurance Portability and Ac-
countability Act of 1996 (Public Law 104–191); 
‘‘(4) 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 
‘‘(5) 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) MANNER TRAINING IS PROVIDED.—The Sec-
retary shall ensure, to the maximum extent practicable, 
that training provided under subsection (a) is provided in 
person. 
‘‘(c) CERTIFICATION.—Not less frequently than once 
every two years, the Secretary shall provide training on 
merit system protection in a manner that the Special 
Counsel certifies as being satisfactory. 
‘‘(d) PUBLICATION.—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 make a whistleblower disclosure, includ-
ing the information described in paragraphs (1) through 
(5) of subsection (a). 
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‘‘(e) WHISTLEBLOWER DISCLOSURE DEFINED.—In 
this section, the term ‘whistleblower disclosure’ has the 
meaning given such term in section 323 of this title. 
‘‘§ 744. Congressional testimony by employees: treat-
ment as official duty 
‘‘(a) CONGRESSIONAL TESTIMONY.—An employee of 
the Department is performing official duty during the pe-
riod with respect to which the employee is testifying in 
an official capacity in front of either chamber of Congress, 
a committee of either chamber of Congress, or a joint or 
select committee of Congress. 
‘‘(b) TRAVEL EXPENSES.—The Secretary shall pro-
vide travel expenses, including per diem in lieu of subsist-
ence, in accordance with applicable provisions under sub-
chapter I of chapter 57 of title 5, to any employee of the 
Department of Veterans Affairs performing official duty 
described under subsection (a).’’. 
(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— 
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(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 
‘‘741. Office of Accountability and Whistleblower Protection. 
‘‘742. Protection of whistleblowers as criteria in evaluation of supervisors. 
‘‘743. Training regarding whistleblower disclosures. 
‘‘744. Congressional testimony by employees; treatment as official duty.’’. 
(c) REPORT ON METHODS USED TO INVESTIGATE 
EMPLOYEES OF DEPARTMENT OF VETERANS AFFAIRS.— 
(1) REPORT REQUIRED.—Not later than 540 
days after the date of the enactment of this Act, the 
Assistant Secretary of Veterans Affairs for Account-
ability and Whistleblower Protection under section 
741 of title 38, United States Code, as added by 
subsection (a), shall submit to the Secretary of Vet-
erans Affairs, the Committee on Veterans’ Affairs of 
the Senate, and the Committee on Veterans’ Affairs 
of the House of Representatives a report on methods 
used to investigate employees of the Department of 
Veterans Affairs and whether such methods are used 
to retaliate against whistleblowers. 
(2) CONTENTS.—The report required by sub-
section (a) shall include the following: 
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(A) An assessment of the use of adminis-
trative 
investigation 
boards, 
peer 
review, 
searches of medical records, and other methods 
for investigating employees of the Department. 
(B) A determination of whether and to 
what degree the methods described in para-
graph (1) are being used to retaliate against 
whistleblowers. 
(C) Recommendations for legislative or ad-
ministrative action to implement safeguards to 
prevent the retaliation described in paragraph 
(2). 
(3) WHISTLEBLOWER DEFINED.—In this sec-
tion, the term ‘‘whistleblower’’ has the meaning 
given such term in section 741 of title 38, United 
States Code, as added by subsection (a). 
Subtitle B—Employees 
SEC. 111. REMOVAL OF EMPLOYEES OF DEPARTMENT OF 
VETERANS AFFAIRS BASED ON PERFORM-
ANCE OR MISCONDUCT. 
(a) IN GENERAL.—Chapter 7 of title 38, United 
States Code, is further amended by inserting after section 
713 the following new section: 
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‘‘§ 714. Employees: removal based on performance or 
misconduct 
‘‘(a) IN GENERAL.—(1) The Secretary may remove 
a covered individual who is an employee of the Department 
if the Secretary determines that— 
‘‘(A) the performance or misconduct of the cov-
ered individual warrants such removal; and 
‘‘(B) in the case of removal for performance, a 
portion of such performance occurred during the 
two-year period ending on the date of the determina-
tion. 
‘‘(2) If the Secretary removes a covered individual 
under paragraph (1), the Secretary may remove the cov-
ered individual from the civil service (as defined in section 
2101 of title 5). 
‘‘(3) Nothing in this section may be construed to au-
thorize a finalized performance appraisal of an employee 
to be retroactively amended. 
‘‘(b) NOTICE TO CONGRESS.—Not later than 30 days 
after removing a covered individual under subsection (a), 
the Secretary shall submit to the Committees on Veterans’ 
Affairs of the Senate and House of Representatives notice 
in writing of such removal and the reason for such re-
moval. 
‘‘(c) PROCEDURE.—(1) An employee removed under 
subsection (a) is entitled, before removal, to— 
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‘‘(A) at least 10 business days written notice 
(which, in the case of removal for performance, shall 
identify specific instances as described in clause (i) 
of section 4303(b)(1)(A) of title 5 and critical ele-
ments as described in clause (ii) of such section), 
unless there is reasonable cause to believe that the 
employee committed a crime for which a sentence of 
imprisonment can be imposed— 
‘‘(i) stating the specific reasons for the 
proposed action; and 
‘‘(ii) including a file containing all evidence 
in support of the proposed action; 
‘‘(B) 10 business days to answer the charges 
orally and in writing and to furnish affidavits and 
other documentary evidence in support of the an-
swer; 
‘‘(C) be represented by an attorney or other 
representative; 
‘‘(D) a review of the case by the Secretary be-
fore a decision adverse to the employee is made 
final; 
‘‘(E) as soon as practicable, a decision of the 
Secretary with respect to the charges of the em-
ployee; and 
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‘‘(F) a written statement of the decision of the 
Secretary that— 
‘‘(i) includes the specific reasons of the de-
cision; and 
‘‘(ii) in the case of a removal based on per-
formance, complies with section 4303(b)(1)(D) 
of title 5. 
‘‘(2)(A) Subject to subparagraph (B) and subsection 
(e), any final decision of the Secretary regarding removal 
under subsection (a) may be appealed to the Merit Sys-
tems Protection Board. 
‘‘(B) An appeal under subparagraph (A) of a removal 
may only be made if such appeal is made not later than 
10 business days after the date of such removal. 
‘‘(C)(i) Subject to clause (ii), the decision of the Sec-
retary shall be sustained under subparagraph (A) only if 
the Secretary’s decision— 
‘‘(I) in the case of an action based on perform-
ance, is supported by substantial evidence; or 
‘‘(II) in any other case, is supported by a pre-
ponderance of the evidence. 
‘‘(ii) Notwithstanding clause (i), the Secretary’s deci-
sion may not be sustained under subparagraph (A) if the 
covered individual— 
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‘‘(I) shows harmful error in the application of 
the Secretary’s procedures in arriving at such deci-
sion; 
‘‘(II) shows that the decision was based on any 
prohibited personnel practice described in section 
2302(b) of title 5; or 
‘‘(III) shows that the decision was not in ac-
cordance with law. 
‘‘(3) The procedures under section 7513(b) of title 
5 and chapter 43 of such title shall not apply to a removal 
under this section. 
‘‘(d) EXPEDITED REVIEW.—(1) The Merit Systems 
Protection Board shall promulgate such rules as the 
Board considers appropriate to expedite appeals under 
subsection (c)(2). 
‘‘(2) The Board shall ensure that a final decision on 
an appeal described in paragraph (1) is issued not later 
than 90 days after the appeal is made. 
‘‘(3) During the period beginning on the date on 
which a covered individual appeals a removal from the civil 
service under subsection (c)(2) and ending on the date 
that the Board issues a final decision on such appeal, such 
covered individual may not receive any pay, awards, bo-
nuses, incentives, allowances, differentials, student loan 
repayments, special payments, or benefits. 
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‘‘(4) 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 subsection (c)(2) is expe-
dited. 
‘‘(e) 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. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) The term ‘covered individual’ means an in-
dividual occupying a position at the Department but 
does not include— 
‘‘(A) an individual, as that term is defined 
in section 713(d); or 
‘‘(B) a political appointee. 
‘‘(2) The term ‘misconduct’ includes a violation 
of paragraph (8) or (9) of section 2302(b) of title 
5, neglect of duty, malfeasance, or failure to accept 
a directed reassignment or to accompany a position 
in a transfer of function. 
‘‘(3) The term ‘political appointee’ means an in-
dividual who is— 
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‘‘(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) CLERICAL AND CONFORMING AMENDMENTS.— 
(1) CLERICAL.—The table of sections at the be-
ginning of such chapter is amended by inserting 
after the item relating to section 713 the following 
new item: 
‘‘714. Employees: removal based on performance or misconduct.’’. 
(2) CONFORMING.— 
(A) TITLE 5.—Section 4303(f) of title 5, 
United States Code, is amended— 
(i) in paragraph (2), by striking ‘‘or’’ 
at the end; 
(ii) in paragraph (3), by striking the 
period at the end and inserting ‘‘, or’’; and 
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(iii) by adding at the end the fol-
lowing: 
‘‘(4) any removal under section 714 of title 
38.’’. 
(B) TITLE 38.—Subchapter V of chapter 
74 of title 38, United States Code, is amend-
ed— 
(i) in section 7461(b)(1), by striking 
‘‘If the’’ and inserting ‘‘Except as provided 
in section 714 of this title, if the’’; and 
(ii) in section 7462— 
(I) in subsection (a)(1), by strik-
ing ‘‘Disciplinary’’ and inserting ‘‘Ex-
cept as provided in section 714 of this 
title, the Disciplinary’’; and 
(II) in subsection (b)(1), by 
striking ‘‘In any case’’ and inserting 
‘‘Except as provided in section 714 of 
this title, in any case’’. 
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SEC. 112. SUSPENSION AND REMOVAL OF DEPARTMENT OF 
VETERANS AFFAIRS EMPLOYEES FOR PER-
FORMANCE OR MISCONDUCT THAT IS A 
THREAT TO PUBLIC HEALTH OR SAFETY. 
(a) IN GENERAL.—Chapter 7 of title 38, United 
States Code, is amended by adding after section 714 the 
following new section: 
‘‘§ 715. Employees: suspension and removal for per-
formance or misconduct that is a threat 
to public health or safety 
‘‘(a) SUSPENSION AND REMOVAL.—Subject to sub-
sections (b) and (c), the Secretary may— 
‘‘(1) suspend without pay an employee of the 
Department of Veterans Affairs if the Secretary de-
termines the performance or misconduct of the em-
ployee is a threat to public health or safety, includ-
ing the health and safety of veterans; and 
‘‘(2) remove an employee suspended under 
paragraph (1) when, after such investigation and re-
view as the Secretary considers necessary, the Sec-
retary determines that removal is necessary in the 
interests of public health or safety. 
‘‘(b) PROCEDURE.—An employee suspended under 
subsection (a)(1) is entitled, after suspension and before 
removal, to— 
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‘‘(1) within 30 days after suspension, a written 
statement of the specific charges against the em-
ployee, which may be amended within 30 days there-
after; 
‘‘(2) an opportunity within 30 days thereafter, 
plus an additional 30 days if the charges are amend-
ed, to answer the charges and submit affidavits; 
‘‘(3) a hearing, at the request of the employee, 
by a Department authority duly constituted for this 
purpose; 
‘‘(4) a review of the case by the Secretary, be-
fore a decision adverse to the employee is made 
final; and 
‘‘(5) written statement of the decision of the 
Secretary. 
‘‘(c) RELATION TO OTHER DISCIPLINARY RULES.— 
The authority provided under this section shall be in addi-
tion to the authority provided under section 713 and title 
5 with respect to disciplinary actions for performance or 
misconduct. 
‘‘(d) BACK PAY FOR WHISTLEBLOWERS.—If any em-
ployee of the Department of Veterans Affairs is subject 
to a suspension or removal under this section and such 
suspension or removal is determined by an appropriate au-
thority under applicable law, rule, regulation, or collective 
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bargaining agreement to be a prohibited personnel prac-
tice described under section 2302(b)(8) or (9) of title 5, 
such employee shall receive back pay equal to the total 
amount of basic pay that such employee would have re-
ceived during the period that the suspension and removal 
(as the case may be) was in effect, less any amounts 
earned by the employee through other employment during 
that period. 
‘‘(e) DEFINITIONS.—In this section, the term ‘em-
ployee’ means any individual occupying a position within 
the Department of Veterans Affairs under a permanent 
or indefinite appointment and who is not serving a proba-
tionary or trial period.’’. 
(b) CLERICAL AND CONFORMING AMENDMENTS.— 
(1) CLERICAL.—The table of sections at the be-
ginning of such chapter is amended by adding after 
the item relating to section 714 the following new 
item: 
‘‘715. Employees: suspension and removal for performance or misconduct that 
is a threat to public health or safety.’’. 
(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 
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(C) by adding at the end the following: 
‘‘(4) any suspension or removal under section 
715 of title 38.’’. 
(c) REPORT ON SUSPENSIONS AND REMOVALS.—Not 
later than one year after the date of the enactment of this 
Act, the Inspector General of the Department of Veterans 
Affairs shall submit to the Committees on Veterans’ Af-
fairs of the House of Representatives and the Senate a 
report on suspensions and removals of employees of the 
Department made under section 715 of title 38, United 
States Code, as added by subsection (a). Such report shall 
include, with respect to the period covered by the report, 
the following: 
(1) The number of employees who were sus-
pended under such section. 
(2) The number of employees who were re-
moved under such section. 
(3) A description of the threats to public health 
or safety that caused such suspensions and remov-
als. 
(4) The number of such suspensions or remov-
als, or proposed suspensions or removals, that were 
of employees who filed a complaint regarding— 
(A) an alleged prohibited personnel prac-
tice committed by an officer or employee of the 
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Department 
and 
described 
in 
section 
2302(b)(8) or 2302(b)(9)(A)(i), (B), (C), or 
(D) of title 5, United States Code; or 
(B) the safety of a patient at a medical fa-
cility of the Department. 
(5) Of the number of suspensions and removals 
listed under paragraph (4), the number that the In-
spector General considers to be retaliation for whis-
tleblowing. 
(6) The number of such suspensions or remov-
als that were of an employee who was the subject of 
a complaint made to the Department regarding the 
health or safety of a patient at a medical facility of 
the Department. 
(7) Any recommendations by the Inspector 
General, based on the information described in para-
graphs (1) through (6), to improve the authority to 
make such suspensions and removals. 
SEC. 113. AUTHORITY TO RECOUP BONUSES OR AWARDS 
PAID TO EMPLOYEES OF DEPARTMENT OF 
VETERANS AFFAIRS. 
(a) IN GENERAL.—Such chapter is further amended 
by inserting after section 715, as added by section 111, 
the following new section: 
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‘‘§ 717. Recoupment of bonuses or awards paid to em-
ployees of Department 
‘‘(a) RECOUPMENT.—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, of any award or bonus paid to 
the employee under title 5, including under chapter 45 or 
53 of such title, or this title if— 
‘‘(1) the Secretary determines— 
‘‘(A) the employee has committed an act of 
fraud, waste, or malfeasance; 
‘‘(B) but for such act, the award or bonus 
would have been paid at a lower amount or 
would not have occurred; and 
‘‘(C) such repayment is appropriate pursu-
ant to regulations prescribed under subsection 
(c); and 
‘‘(2) before such repayment, the employee is af-
forded notice and an opportunity for a hearing con-
ducted by another department or agency of the Fed-
eral Government. 
‘‘(b) REVIEW.—(1) Upon the issuance of an order by 
the Secretary under subsection (a), the employee shall be 
afforded— 
‘‘(A) notice of the order and an opportunity to 
respond to the order; and 
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‘‘(B) consistent with paragraph (2), an oppor-
tunity to appeal the order to another department or 
agency of the Federal Government. 
‘‘(2) If a final decision on an appeal made under 
paragraph (1)(B) is not made by the applicable depart-
ment or agency of the Federal Government within 30 days 
after receiving such appeal, the order of the Secretary 
under subsection (a) shall be final and not subject to fur-
ther appeal. 
‘‘(c) REGULATIONS.—The Secretary shall prescribe 
regulations to carry out this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter, as amended by section 
111, is further amended by inserting after the item relat-
ing to section 715 the following new item: 
‘‘717. Recoupment of bonuses or awards paid to employees of Department.’’. 
(c) EFFECTIVE DATE.—Section 717 of title 38, 
United States Code, as added by subsection (a), shall 
apply with respect to acts of fraud, waste, or malfeasance 
occurring on or after the date of the enactment of this 
Act. 
(d) CONSTRUCTION.—Nothing in this title or the 
amendments made by this title may be construed to mod-
ify the certification issued by the Office of Personnel Man-
agement and the Office of Management and Budget re-
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garding the performance appraisal system of the Senior 
Executive Service of the Department of Veterans Affairs. 
SEC. 114. AUTHORITY TO RECOUP RELOCATION EXPENSES 
PAID TO OR ON BEHALF OF EMPLOYEES OF 
DEPARTMENT OF VETERANS AFFAIRS. 
(a) IN GENERAL.—Such chapter is further amended 
by adding at the end the following new section: 
‘‘§ 719. Recoupment of relocation expenses paid on 
behalf of employees of Department 
‘‘(a) RECOUPMENT.—(1) Notwithstanding any other 
provision of law, the Secretary may direct an employee of 
the Department to repay the amount, or a portion of the 
amount, paid to or on behalf of the employee under title 
5 for relocation expenses, including any expenses under 
section 5724 or 5724a of such title, or this title if— 
‘‘(A) the Secretary determines that— 
‘‘(i) the employee has committed an act of 
fraud, waste, or malfeasance; 
‘‘(ii) but for such act, the expenses would 
have been paid at a lower amount or would not 
have occurred; and 
‘‘(iii) such repayment is appropriate pursu-
ant to regulations prescribed under subsection 
(c); and 
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‘‘(B) before such repayment is ordered, the in-
dividual is afforded— 
‘‘(i) notice of the determination of the Sec-
retary and an opportunity to respond to the de-
termination; and 
‘‘(ii) consistent with paragraph (2), an op-
portunity to appeal the determination to an-
other department or agency of the Federal Gov-
ernment. 
‘‘(2) If a final decision on an appeal made under 
paragraph (1)(B)(ii) is not made by the applicable depart-
ment or agency of the Federal Government within 30 days 
after receiving such appeal, the order of the Secretary 
under paragraph (1) shall be final and not subject to fur-
ther appeal. 
‘‘(b) REVIEW.—A decision regarding a repayment by 
an employee pursuant to subsection (a)(1)(B)(ii) is final 
and may not be reviewed by any department, agency, or 
court. 
‘‘(c) REGULATIONS.—The Secretary shall prescribe 
regulations to carry out this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is further amended by 
adding at the end the following new item: 
‘‘719. Recoupment of relocation expenses paid to or on behalf of employees of 
Department.’’. 
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(c) EFFECTIVE DATE.—Section 719 of title 38, 
United States Code, as added by subsection (a), shall 
apply with respect to acts of fraud, waste, or malfeasance 
occurring on or after the date of the enactment of this 
Act. 
(d) CONSTRUCTION.—Nothing in this section or the 
amendments made by this section may be construed to 
modify the certification issued by the Office of Personnel 
Management and the Office of Management and Budget 
regarding the performance appraisal system of the Senior 
Executive Service of the Department of Veterans Affairs. 
Subtitle C—Supervisors and Senior 
Executives 
SEC. 121. REDUCTION OF BENEFITS FOR MEMBERS OF THE 
SENIOR EXECUTIVE SERVICE WITHIN THE 
DEPARTMENT OF VETERANS AFFAIRS CON-
VICTED OF CERTAIN CRIMES. 
(a) REDUCTION OF BENEFITS.— 
(1) IN GENERAL.—Chapter 7 of title 38, United 
States Code, is further amended by inserting after 
section 719, as added by section 113, the following 
new section: 
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‘‘§ 721. Senior executives: reduction of benefits of in-
dividuals convicted of certain crimes 
‘‘(a) REDUCTION OF ANNUITY FOR REMOVED EM-
PLOYEE.—(1) The Secretary shall order that the covered 
service of an individual removed from a senior executive 
position for performance or misconduct under section 713 
of this title, chapter 43 or subchapter V of chapter 75 
of title 5, 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) such performance or misconduct included 
offenses committed by the individual for which the 
individual is convicted of a felony (and the convic-
tion is final), as determined by the Director of the 
Office of Personnel Management; and 
‘‘(B) before such order is made, the individual 
is afforded— 
‘‘(i) notice of the order and an opportunity 
to respond to the order; and 
‘‘(ii) consistent with paragraph (2), an op-
portunity to appeal the order to another depart-
ment or agency of the Federal Government. 
‘‘(2) If a final decision on an appeal made under 
paragraph (1)(B)(ii) is not made by the applicable depart-
ment or agency of the Federal Government within 30 days 
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after receiving such appeal, the order of the Secretary 
under paragraph (1) shall be final and not subject to fur-
ther appeal. 
‘‘(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 for performance or misconduct under sec-
tion 713 of this title, chapter 43 or subchapter V of chap-
ter 75 of title 5, 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 individual is convicted of a felony that 
influenced the individual’s performance while em-
ployed in the senior executive position; and 
‘‘(B) 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. 
‘‘(2) The Secretary shall make such an order not 
later than seven days after the date of the conclusion of 
a hearing referred to in paragraph (1)(B) that determines 
that such order is lawful. 
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‘‘(c) ADMINISTRATIVE
REQUIREMENTS.—(1) Not 
later than 30 days after the Secretary issues an order 
under subsection (a) or (b), the Director of the Office of 
Personnel Management shall recalculate the annuity of the 
individual. 
‘‘(2) A decision regarding whether the covered service 
of an individual shall be taken into account for purposes 
of calculating an annuity under subsection (a) or (b) is 
final and may not be reviewed by any department or agen-
cy or any court. 
‘‘(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 Director of the Office of 
Personnel Management, 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 other-
wise have been nonpayable by reason of such subsections. 
Any such regulations shall be consistent with the require-
ments of sections 8332(o)(5) and 8411(l)(5) of title 5, as 
the case may be. 
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‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) The term ‘covered service’ means, with re-
spect to an individual subject to a removal or trans-
fer for performance or misconduct under section 713 
of this title, chapter 43 or subchapter V of chapter 
75 of title 5, or any other provision of law, the pe-
riod of service beginning on the date that the Sec-
retary determines under such applicable provision 
that the individual engaged in activity that gave rise 
to such action and ending on the date that the indi-
vidual is removed or transferred from the senior ex-
ecutive position or leaves employment at the Depart-
ment prior to the issuance of a final decision with 
respect to such action, as the case may be. 
‘‘(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 ‘senior executive position’ has 
the meaning given such term in section 713(g)(3) of 
this title. 
‘‘(4) 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 of such title is 
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amended by inserting after the item relating to sec-
tion 719, as added by section 113, the following new 
item: 
‘‘721. Senior executives: reduction of benefits of individuals 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 or transfer under section 713 
of title 38, United States Code, relating to performance 
or misconduct occurring on or after the date of the enact-
ment of this Act. 
SEC. 122. IMPROVED AUTHORITIES OF SECRETARY OF VET-
ERANS 
AFFAIRS 
TO 
IMPROVE 
ACCOUNT-
ABILITY OF SENIOR EXECUTIVES. 
(a) ACCOUNTABILITY OF SENIOR EXECUTIVES.— 
(1) IN
GENERAL.—Section 713 of title 38, 
United States Code, is amended to read as follows: 
‘‘§ 713. Accountability of senior executives 
‘‘(a) AUTHORITY.—(1) The Secretary may, as pro-
vided in this section, reprimand or suspend, involuntarily 
reassign, demote, or remove a covered individual from a 
senior executive position at the Department if the Sec-
retary determines that the misconduct or performance of 
the covered individual warrants such action. 
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‘‘(2) If the Secretary so removes such an individual, 
the Secretary may remove the individual from the civil 
service (as defined in section 2101 of title 5). 
‘‘(b) RIGHTS AND PROCEDURES.—(1) A covered indi-
vidual who is the subject of an action under subsection 
(a) is entitled to— 
‘‘(A) be represented by an attorney or other 
representative of the covered individual’s choice; 
‘‘(B) not fewer than 10 business days advance 
written notice of the charges and evidence sup-
porting the action and an opportunity to respond, in 
a manner prescribed by the Secretary, before a deci-
sion is made regarding the action; and 
‘‘(C) grieve the action in accordance with an in-
ternal grievance process that the Secretary, in con-
sultation with the Assistant Secretary for Account-
ability and Whistleblower Protection, shall establish 
for purposes of this subsection. 
‘‘(2)(A) The Secretary shall ensure that the grievance 
process established under paragraph (1)(C) takes fewer 
than 21 days. 
‘‘(B) The Secretary shall ensure that, under the proc-
ess established pursuant to paragraph (1)(C), grievances 
are reviewed only by employees of the Department. 
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‘‘(3) A decision or grievance decision under para-
graph (1)(C) shall be final and conclusive. 
‘‘(4) A covered individual adversely affected by a final 
decision under paragraph (1)(C) may obtain judicial re-
view of the decision. 
‘‘(5) In any case in which judicial review is sought 
under paragraph (4), the court shall review the record and 
may set aside any Department action found to be— 
‘‘(A) arbitrary, capricious, an abuse of discre-
tion, or otherwise not in accordance with a provision 
of law; 
‘‘(B) obtained without procedures required by a 
provision of law having been followed; or 
‘‘(C) unsupported by substantial evidence. 
‘‘(c) RELATION TO OTHER PROVISIONS OF LAW.— 
(1) The authority provided by subsection (a) is in addition 
to the authority provided by section 3592 or subchapter 
V of chapter 75 of title 5. 
‘‘(2) Section 3592(b)(1) of title 5 and the procedures 
under section 7543(b) of such title do not apply to an ac-
tion under subsection (a). 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘covered individual’ means— 
‘‘(A) a career appointee (as that term is 
defined in section 3132(a)(4) of title 5); or 
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‘‘(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. 
‘‘(2) 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. 
‘‘(3) The term ‘senior executive position’ 
means— 
‘‘(A) with respect to a career appointee (as 
that term is defined in section 3132(a) of title 
5), a Senior Executive Service position (as such 
term is defined in such section); and 
‘‘(B) with respect to a covered individual 
appointed under section 7306(a) or section 
7401(1) of this title, an administrative or exec-
utive position.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
7461(c)(1) of such title is amended by inserting 
‘‘employees in senior executive positions (as defined 
in section 713(d) of this title) and’’ before ‘‘interns’’. 
(b) PERFORMANCE MANAGEMENT.— 
(1) IN GENERAL.—The Secretary of Veterans 
Affairs shall establish a performance management 
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system for employees in senior executive positions, 
as defined in section 713(d) of title 38, United 
States Code, as amended by subsection (a), that en-
sures performance ratings and awards given to such 
employees— 
(A) meaningfully differentiate extraor-
dinary from satisfactory contributions; and 
(B) substantively reflect organizational 
achievements over which the employee has re-
sponsibility and control. 
(2) REGULATIONS.—The Secretary shall pre-
scribe regulations to carry out paragraph (1). 
Subtitle D—Other Matters 
SEC. 131. ANNUAL REPORT ON PERFORMANCE OF RE-
GIONAL OFFICES OF THE DEPARTMENT OF 
VETERANS AFFAIRS. 
Section 7734 of title 38, United States Code, is 
amended— 
(1) in the first sentence, by inserting before the 
period the following: ‘‘and on the performance of 
any regional office that fails to meet its administra-
tive goals’’; 
(2) in paragraph (2), by striking ‘‘and’’; 
(3) by redesignating paragraph (3) as para-
graph (4); and 
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