schedule C of subpart C of part 213 of title 5 
of the Code of Federal Regulations.’’. 
(b) CLERICAL AND CONFORMING AMENDMENTS.— 
(1) CLERICAL.—The table of sections at the be-
ginning of such chapter is amended by adding at the 
end the following new item: 
‘‘715. Employees: removal or demotion based on performance or misconduct.’’. 
(2) CONFORMING.—Section 4303(f) of title 5, 
United States Code, is amended— 
(A) by striking ‘‘or’’ at the end of para-
graph (2); 
(B) by striking the period at the end of 
paragraph (3) and inserting ‘‘, or’’; and 
(C) by adding at the end the following: 
‘‘(4) any removal or demotion under section 
715 of title 38.’’. 
SEC. 3. REQUIRED PROBATIONARY PERIOD FOR NEW EM-
PLOYEES OF DEPARTMENT OF VETERANS AF-
FAIRS. 
(a) PROBATIONARY PERIOD.— 
(1) IN GENERAL.—Chapter 7 of title 38, United 
States Code, as amended by section 2, is further 
amended by adding at the end the following new sec-
tion:
‘‘§ 717. Probationary period for employees 
‘‘(a) IN GENERAL.—Notwithstanding sections 3321 
and 3393(d) of title 5, the appointment of a covered em-
ployee shall become final only after such employee has 
served a probationary period of 18 months. The Secretary 
may extend a probationary period under this subsection 
at the discretion of the Secretary. 
‘‘(b) COVERED EMPLOYEE.—In this section, the term 
‘covered employee’— 
‘‘(1) means any individual— 
‘‘(A) appointed to a permanent position 
within the competitive service at the Depart-
ment; or 
‘‘(B) appointed as a career appointee (as 
that term is defined in section 3132(a)(4) of 
title 5) within the Senior Executive Service at 
the Department; and 
‘‘(2) does not include any individual with a pro-
bationary period prescribed by section 7403 of this 
title. 
‘‘(c) PERMANENT HIRES.—Upon the expiration of a 
covered employee’s probationary period under subsection 
(a), the supervisor of the employee shall determine wheth-
er the appointment becomes final based on regulations 
prescribed for such purpose by the Secretary.’’.
(2) CLERICAL
AND
CONFORMING
AMEND-
MENTS.— 
(A) CLERICAL.—The table of sections at 
the beginning of such chapter, as amended by 
section 2, is further amended by adding at the 
end the following new item: 
‘‘717. Probationary period for employees.’’. 
(B) CONFORMING.—Title 5, United States 
Code, is amended— 
(i) in section 3321(c)— 
(I) by striking ‘‘Service or’’ and 
inserting ‘‘Service,’’; and 
(II) by inserting at the end be-
fore the period the following: ‘‘, or 
any individual covered by section 717 
of title 38’’; and 
(ii) in section 3393(d), by adding at 
the end after the period the following: 
‘‘The preceding sentence shall not apply to 
any individual covered by section 717 of 
title 38.’’. 
(b) APPLICATION.—Section 717 of title 38, United 
States Code, as added by subsection (a)(1), shall apply 
to any covered employee (as that term is defined in sub-
section (b) of such section 717, as so added) appointed 
after the date of the enactment of this Act.
SEC. 4. TREATMENT OF WHISTLEBLOWER COMPLAINTS IN 
DEPARTMENT OF VETERANS AFFAIRS. 
(a) IN GENERAL.—Chapter 7 of title 38, United 
States Code, is further amended by adding at the end the 
following new subchapter: 
‘‘SUBCHAPTER II—WHISTLEBLOWER 
COMPLAINTS 
‘‘§ 731. Whistleblower complaint defined 
‘‘In this subchapter, the term ‘whistleblower com-
plaint’ means a complaint by an employee of the Depart-
ment disclosing, or assisting another employee to disclose, 
a potential violation of any law, rule, or regulation, or 
gross mismanagement, gross waste of funds, abuse of au-
thority, or substantial and specific danger to public health 
and safety. 
‘‘§ 732. Treatment of whistleblower complaints 
‘‘(a) FILING.—(1) In addition to any other method 
established by law in which an employee may file a whistle-
blower complaint, an employee of the Department may file 
a whistleblower complaint in accordance with subsection 
(g) with a supervisor of the employee. 
‘‘(2) Except as provided by subsection (d)(1), in mak-
ing a whistleblower complaint under paragraph (1), an 
employee shall file the initial complaint with the imme-
diate supervisor of the employee.
‘‘(b) NOTIFICATION.—(1) Not later than four busi-
ness days after the date on which a supervisor receives 
a whistleblower complaint by an employee under this sec-
tion, the supervisor shall notify, in writing, the employee 
of whether the supervisor determines that there is a rea-
sonable likelihood that the complaint discloses a violation 
of any law, rule, or regulation, or gross mismanagement, 
gross waste of funds, abuse of authority, or substantial 
and specific danger to public health and safety. The super-
visor shall retain written documentation regarding the 
whistleblower complaint and shall submit to the next-level 
supervisor and the central whistleblower office described 
in subsection (h) a written report on the complaint. 
‘‘(2) On a monthly basis, the supervisor shall submit 
to the appropriate director or other official who is superior 
to the supervisor a written report that includes the num-
ber of whistleblower complaints received by the supervisor 
under this section during the month covered by the report, 
the disposition of such complaints, and any actions taken 
because of such complaints pursuant to subsection (c). In 
the case in which such a director or official carries out 
this paragraph, the director or official shall submit such 
monthly report to the supervisor of the director or official 
and to the central whistleblower office described in sub-
section (h).
‘‘(c) POSITIVE DETERMINATION.—If a supervisor 
makes a positive determination under subsection (b)(1) re-
garding a whistleblower complaint of an employee, the su-
pervisor shall include in the notification to the employee 
under such subsection the specific actions that the super-
visor will take to address the complaint. 
‘‘(d) FILING COMPLAINT WITH NEXT-LEVEL SUPER-
VISORS.—(1) If any circumstance described in paragraph 
(3) is met, an employee may file a whistleblower complaint 
in accordance with subsection (g) with the next-level su-
pervisor who shall treat such complaint in accordance with 
this section. 
‘‘(2) An employee may file a whistleblower complaint 
with the Secretary if the employee has filed the whistle-
blower complaint to each level of supervisors between the 
employee and the Secretary in accordance with paragraph 
(1). 
‘‘(3) A circumstance described in this paragraph are 
any of the following circumstances: 
‘‘(A) A supervisor does not make a timely de-
termination under subsection (b)(1) regarding a 
whistleblower complaint. 
‘‘(B) The employee who made a whistleblower 
complaint determines that the supervisor did not
adequately address the complaint pursuant to sub-
section (c). 
‘‘(C) The immediate supervisor of the employee 
is the basis of the whistleblower complaint. 
‘‘(e) TRANSFER OF EMPLOYEE WHO FILES WHIS-
TLEBLOWER COMPLAINT.—If a supervisor makes a posi-
tive determination under subsection (b)(1) regarding a 
whistleblower complaint filed by an employee, the Sec-
retary shall— 
‘‘(1) inform the employee of the ability to vol-
unteer for a transfer in accordance with section 
3352 of title 5; and 
‘‘(2) give preference to the employee for such a 
transfer in accordance with such section. 
‘‘(f) PROHIBITION ON EXEMPTION.—The Secretary 
may not exempt any employee of the Department from 
being covered by this section. 
‘‘(g) WHISTLEBLOWER COMPLAINT FORM.—(1) A 
whistleblower complaint filed by an employee under sub-
section (a) or (d) shall consist of the form described in 
paragraph (2) and any supporting materials or docu-
mentation the employee determines necessary. 
‘‘(2) The form described in this paragraph is a form 
developed by the Secretary, in consultation with the Spe-
cial Counsel, that includes the following:
‘‘(A) An explanation of the purpose of the whis-
tleblower complaint form. 
‘‘(B) Instructions for filing a whistleblower 
complaint as described in this section. 
‘‘(C) An explanation that filing a whistleblower 
complaint under this section does not preclude the 
employee from any other method established by law 
in which an employee may file a whistleblower com-
plaint. 
‘‘(D) A statement directing the employee to in-
formation accessible on the Internet website of the 
Department as described in section 735(c). 
‘‘(E) Fields for the employee to provide— 
‘‘(i) the date that the form is submitted; 
‘‘(ii) the name of the employee; 
‘‘(iii) the contact information of the em-
ployee; 
‘‘(iv) a summary of the whistleblower com-
plaint (including the option to append sup-
porting documents pursuant to paragraph (1)); 
and 
‘‘(v) proposed solutions to complaint. 
‘‘(F) Any other information or fields that the 
Secretary determines appropriate.
‘‘(3) The Secretary, in consultation with the Special 
Counsel, shall develop the form described in paragraph (2) 
by not later than 60 days after the date of the enactment 
of this section. 
‘‘(h) CENTRAL WHISTLEBLOWER OFFICE.—(1) The 
Secretary shall ensure that the central whistleblower of-
fice— 
‘‘(A) is not an element of the Office of the Gen-
eral Counsel; 
‘‘(B) is not headed by an official who reports to 
the General Counsel; 
‘‘(C) does not provide, or receive from, the Gen-
eral Counsel any information regarding a whistle-
blower complaint except pursuant to an action re-
garding the complaint before an administrative body 
or court; and 
‘‘(D) does not provide advice to the General 
Counsel. 
‘‘(2) The central whistleblower office shall be respon-
sible for investigating all whistleblower complaints of the 
Department, regardless of whether such complaints are 
made by or against an employee who is not a member of 
the Senior Executive Service.
‘‘(3) The Secretary shall ensure that the central whis-
tleblower office maintains a toll-free hotline to anony-
mously receive whistleblower complaints. 
‘‘(4) In this subsection, the term ‘central whistle-
blower office’ means the Office of Accountability Review 
or a successor office that is established or designated by 
the Secretary to investigate whistleblower complaints filed 
under this section or any other method established by law. 
‘‘§ 733. Adverse actions against supervisory employ-
ees who commit prohibited personnel ac-
tions 
relating 
to 
whistleblower 
com-
plaints 
‘‘(a) IN GENERAL.—(1) In accordance with para-
graph (2), the Secretary shall carry out the following ad-
verse actions against supervisory employees whom the Sec-
retary, an administrative judge, the Merit Systems Protec-
tion Board, the Office of Special Counsel, an adjudicating 
body provided under a union contract, a Federal judge, 
or the Inspector General of the Department determines 
committed a prohibited personnel action described in sub-
section (c): 
‘‘(A) With respect to the first offense, an ad-
verse action that is not less than a 14-day suspen-
sion and not more than removal.
‘‘(c) 
PROHIBITED
PERSONNEL
ACTION
DE-
SCRIBED.—A prohibited personnel action described in this 
subsection is any of the following actions: 
‘‘(1) Taking or failing to take a personnel ac-
tion in violation of section 2302 of title 5 against an 
employee relating to the employee— 
‘‘(A) filing a whistleblower complaint in ac-
cordance with section 732 of this title; 
‘‘(B) filing a whistleblower complaint with 
the Inspector General of the Department, the 
Special Counsel, or Congress; 
‘‘(C) providing information or participating 
as a witness in an investigation of a whistle-
blower complaint in accordance with section 
732 or with the Inspector General of the De-
partment, the Special Counsel, or Congress; 
‘‘(D) participating in an audit or investiga-
tion by the Comptroller General of the United 
States; 
‘‘(E) refusing to perform an action that is 
unlawful or prohibited by the Department; or 
‘‘(F) engaging in communications that are 
related to the duties of the position or are oth-
erwise protected.
‘‘(2) Preventing or restricting an employee from 
making an action described in any of subparagraphs 
(A) through (F) of paragraph (1). 
‘‘(3) Conducting a peer review or opening a re-
taliatory investigation relating to an activity of an 
employee that is protected by section 2302 of title 
5. 
‘‘(4) Requesting a contractor to carry out an 
action that is prohibited by section 4705(b) or sec-
tion 4712(a)(1) of title 41, as the case may be. 
‘‘§ 734. Evaluation criteria of supervisors and treat-
ment of bonuses 
‘‘(a) EVALUATION CRITERIA.—(1) In evaluating the 
performance of supervisors of the Department, the Sec-
retary shall include the criteria described in paragraph 
(2). 
‘‘(2) The criteria described in this subsection are the 
following: 
‘‘(A) Whether the supervisor treats whistle-
blower complaints in accordance with section 732. 
‘‘(B) Whether the appropriate deciding official, 
performance review board, or performance review 
committee determines that the supervisor was found 
to have committed a prohibited personnel action de-
scribed in section 733(b) by an administrative judge,
the Merit Systems Protection Board, the Office of 
Special Counsel, an adjudicating body provided 
under a union contract, a Federal judge, or, in the 
case of a settlement of a whistleblower complaint 
(regardless of whether any fault was assigned under 
such settlement), the Secretary. 
‘‘(b) BONUSES.—(1) The Secretary may not pay to 
a supervisor described in subsection (a)(2)(B) an award 
or bonus under this title or title 5, including under chapter 
45 or 53 of such title, during the one-year period begin-
ning on the date on which the determination was made 
under such subsection. 
‘‘(2) Notwithstanding any other provision of law, the 
Secretary shall issue an order directing a supervisor de-
scribed in subsection (a)(2)(B) to repay the amount of any 
award or bonus paid under this title or title 5, including 
under chapter 45 or 53 of such title, if— 
‘‘(A) such award or bonus was paid for per-
formance during a period in which the supervisor 
committed a prohibited personnel action as deter-
mined pursuant to such subsection (a)(2)(B); 
‘‘(B) the Secretary determines such repayment 
appropriate pursuant to regulations prescribed by 
the Secretary to carry out this section; and
‘‘(C) the supervisor is afforded notice and an 
opportunity for a hearing before making such repay-
ment. 
‘‘§ 735. Training regarding whistleblower complaints 
‘‘(a) TRAINING.—The Secretary, in coordination with 
the Whistleblower Protection Ombudsman designated 
under section 3(d)(1)(C) of the Inspector General Act of 
1978 (5 U.S.C. App.), shall annually provide to each em-
ployee of the Department training regarding whistleblower 
complaints, including— 
‘‘(1) an explanation of each method established 
by law in which an employee may file a whistle-
blower complaint; 
‘‘(2) an explanation of prohibited personnel ac-
tions described by section 733(c) of this title; 
‘‘(3) with respect to supervisors, how to treat 
whistleblower complaints in accordance with section 
732 of this title; 
‘‘(4) the right of the employee to petition Con-
gress regarding a whistleblower complaint in accord-
ance with section 7211 of title 5; 
‘‘(5) an explanation that the employee may not 
be prosecuted or reprised against for disclosing in-
formation to Congress in instances where such dis-
closure is permitted by law, including under sections
5701, 5705, and 7732 of this title, under section 
552a of title 5 (commonly referred to as the Privacy 
Act), under chapter 93 of title 18, and pursuant to 
regulations promulgated under section 264(c) of the 
Health Insurance Portability and Accountability Act 
of 1996 (Public Law 104–191); 
‘‘(6) an explanation of the language that is re-
quired to be included in all nondisclosure policies, 
forms, 
and 
agreements 
pursuant 
to 
section 
115(a)(1) of the Whistleblower Protection Enhance-
ment Act of 2012 (5 U.S.C. 2302 note); and 
‘‘(7) the right of contractors to be protected 
from reprisal for the disclosure of certain informa-
tion under section 4705 or 4712 of title 41. 
‘‘(b) CERTIFICATION.—The Secretary shall annually 
provide training on merit system protection in a manner 
that the Special Counsel certifies as being satisfactory. 
‘‘(c) PUBLICATION.—(1) The Secretary shall publish 
on the Internet website of the Department, and display 
prominently at each facility of the Department, the rights 
of an employee to file a whistleblower complaint, including 
the information described in paragraphs (1) through (7) 
of subsection (a).
‘‘(2) The Secretary shall publish on the Internet 
website of the Department, the whistleblower complaint 
form described in section 732(g)(2). 
‘‘§ 736. Reports to Congress 
‘‘(a) ANNUAL REPORTS.—The Secretary shall annu-
ally submit to the Committees on Veterans’ Affairs of the 
House of Representatives and the Senate, the Committee 
on Oversight and Government Reform of the House of 
Representatives, and the Committee on Homeland Secu-
rity and Governmental Affairs of the Senate a report that 
includes— 
‘‘(1) with respect to whistleblower complaints 
filed under section 732 during the year covered by 
the report— 
‘‘(A) the number of such complaints filed; 
‘‘(B) the disposition of such complaints; 
and 
‘‘(C) the ways in which the Secretary ad-
dressed such complaints in which a positive de-
termination was made by a supervisor under 
subsection (b)(1) of such section; 
‘‘(2) the number of whistleblower complaints 
filed during the year covered by the report that are 
not included under paragraph (1), including—
‘‘(A) the method in which such complaints 
were filed; 
‘‘(B) the disposition of such complaints; 
and 
‘‘(C) the ways in which the Secretary ad-
dressed such complaints; and 
‘‘(3) with respect to disclosures made by a con-
tractor under section 4705 or 4712 of title 41— 
‘‘(A) the number of complaints relating to 
such disclosures that were investigated by the 
Inspector General of the Department of Vet-
erans Affairs during the year covered by the re-
port; 
‘‘(B) the disposition of such complaints; 
and 
‘‘(C) the ways in which the Secretary ad-
dressed such complaints. 
‘‘(b) NOTICE OF OFFICE OF SPECIAL COUNSEL DE-
TERMINATIONS.—Not later than 30 days after the date 
on which the Secretary receives from the Special Counsel 
information relating to a whistleblower complaint pursu-
ant to section 1213 of title 5, the Secretary shall notify 
the Committees on Veterans’ Affairs of the House of Rep-
resentatives and the Senate, the Committee on Oversight 
and Government Reform of the House of Representatives,
and the Committee on Homeland Security and Govern-
mental Affairs of the Senate of such information, includ-
ing the determination made by the Special Counsel.’’. 
(b) CONFORMING AND CLERICAL AMENDMENTS.— 
(1) CONFORMING AMENDMENT.—Such chapter 
is further amended by inserting before section 701 
the following: 
‘‘SUBCHAPTER I—GENERAL EMPLOYEE 
MATTERS’’. 
(2) CLERICAL AMENDMENTS.—The table of sec-
tions at the beginning of such chapter is amended— 
(A) by inserting before the item relating to 
section 701 the following new item: 
‘‘SUBCHAPTER I—GENERAL EMPLOYEE MATTERS’’; 
and 
(B) by adding at the end the following new 
items: 
‘‘SUBCHAPTER II—WHISTLEBLOWER COMPLAINTS 
‘‘731. Whistleblower complaint defined. 
‘‘732. Treatment of whistleblower complaints. 
‘‘733. Adverse actions against supervisory employees who commit prohibited 
personnel actions relating to whistleblower complaints. 
‘‘734. Evaluation criteria of supervisors and treatment of bonuses. 
‘‘735. Training regarding whistleblower complaints. 
‘‘736. Reports to Congress.’’.
SEC. 5. REFORM OF PERFORMANCE APPRAISAL SYSTEM 
FOR SENIOR EXECUTIVE SERVICE EMPLOY-
EES OF THE DEPARTMENT OF VETERANS AF-
FAIRS. 
(a) PERFORMANCE APPRAISAL SYSTEM.— 
(1) IN GENERAL.—Chapter 7 of title 38, United 
States Code, is further amended by inserting after 
section 717, as added by section 3, the following new 
section: 
‘‘§ 719. Senior executives: performance appraisal 
‘‘(a) PERFORMANCE APPRAISAL SYSTEM.—(1) The 
performance appraisal system for individuals employed in 
senior executive positions in the Department required by 
section 4312 of title 5 shall provide, in addition to the 
requirements of such section, for five annual summary rat-
ings of levels of performance as follows: 
‘‘(A) One outstanding level. 
‘‘(B) One exceeds fully successful level. 
‘‘(C) One fully successful level. 
‘‘(D) One minimally satisfactory level. 
‘‘(E) One unsatisfactory level. 
‘‘(2) The following limitations apply to the rating of 
the performance of such individuals: 
‘‘(A) For any year, not more than 10 percent 
of such individuals who receive a performance rating
during that year may receive the outstanding level 
under paragraph (1)(A). 
‘‘(B) For any year, not more than 20 percent 
of such individuals who receive a performance rating 
during that year may receive the exceeds fully suc-
cessful level under paragraph (1)(B). 
‘‘(3) In evaluating the performance of an individual 
under the performance appraisal system, the Secretary 
shall take into consideration— 
‘‘(A) any complaint or report (including any 
pending or published report) submitted by the In-
spector General of the Department, the Comptroller 
General of the United States, the Equal Employ-
ment Opportunity Commission, or any other appro-
priate person or entity, related to any facility or pro-
gram managed by the individual, as determined by 
the Secretary; 
‘‘(B) efforts made by the individual to maintain 
high levels of satisfaction and commitment among 
the employees supervised by the individual; and 
‘‘(C) the criteria described in section 734(a)(2) 
of this title. 
‘‘(b) CHANGE OF POSITION.—(1) At least once every 
five years, the Secretary shall reassign each individual em-
ployed in a senior executive position to a position at a dif-
ferent location that does not include the supervision of the 
same personnel or programs. The Secretary shall make 
such reassignments on a rolling basis based on the date 
on which an individual was originally assigned to a posi-
tion. 
‘‘(2) The Secretary may waive the requirement under 
paragraph (1) for any such individual, if the Secretary 
submits to the Committees on Veterans’ Affairs of the 
Senate and House of Representatives notice of the waiver 
and an explanation of the reasons for the waiver. 
‘‘(c) REPORT.—Not later than March 1 of each year, 
the Secretary shall submit to the Committees on Veterans’ 
Affairs and Homeland Security and Governmental Affairs 
of the Senate and the Committees on Veterans’ Affairs 
and Oversight and Government Reform of the House of 
Representatives a report on the performance appraisal 
system of the Department under subsection (a). Each such 
report shall include, for the year preceding the year during 
which the report is submitted, each of the following: 
‘‘(1) All documentation concerning each of the 
following for each individual employed in a senior 
executive position in the Department: 
‘‘(A) The initial performance appraisal. 
‘‘(B) The higher level review, if requested.
‘‘(C) The recommendations of the perform-
ance review board. 
‘‘(D) The final summary review. 
‘‘(E) The number of initial performance 
ratings raised as a result of the recommenda-
tions of the performance review board. 
‘‘(F) The number of initial performance 
ratings lowered as a result of the recommenda-
tions of the performance review board. 
‘‘(G) Any adverse action taken against any 
such individual who receives a performance rat-
ing of less than fully successful. 
‘‘(2) The review of the Inspector General of the 
Department of the information described in subpara-
graphs (A) through (D) of paragraph (1). 
‘‘(3) A summary of the documentation provided 
under paragraph (1). 
‘‘(d) DEFINITION
OF SENIOR EXECUTIVE POSI-
TION.—In this section, the term ‘senior executive position’ 
has the meaning given that term in section 713(g)(3) of 
this title.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter, as amended 
by section 3, is further amended by inserting after
the item relating to section 717 the following new 
item: 
‘‘719. Senior executives: performance appraisal.’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
4312(b) of title 5, United States Code, is amend-
ed— 
(A) in paragraph (2), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (3), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(4) that, in the case of the Department of Vet-
erans Affairs, the performance appraisal system 
meets the requirements of section 719 of title 38.’’. 
(b) REVIEW OF SES MANAGEMENT TRAINING.— 
(1) REVIEW.—Not later than 180 days after 
the date of the enactment of this Act, the Secretary 
of Veterans Affairs shall enter into a contract with 
a nongovernmental entity to review the management 
training program for individuals employed in senior 
executive positions (as such term is defined in sec-
tion 713(g)(3) of title 38, United States Code) of 
the Department of Veterans Affairs that is being 
provided as of the date of the enactment of this Act. 
Such review shall include a comparison of the train-
ing provided by the Department of Veterans Affairs
to the management training provided for senior ex-
ecutives of other Federal departments and agencies 
and to the management training provided to senior 
executives in the private sector. The contract shall 
provide that the nongovernmental entity must com-
plete and submit to the Secretary a report con-
taining the findings and conclusions of the review by 
not later than 180 days after the date on which the 
Secretary and the nongovernmental entity enter into 
the contract. 
(2) REPORT TO CONGRESS.—Not later than 60 
days after the date on which the Secretary receives 
the report under paragraph (1), the Secretary shall 
submit to the Committees on Veterans’ Affairs of 
the Senate and House of Representatives the report 
together with a plan for carrying out the rec-
ommendations contained in the report. 
SEC. 6. 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 5, the following new 
section: 
‘‘§ 721. Senior executives: reduction of benefits of in-
dividuals convicted of certain crimes 
‘‘(a) REDUCTION OF ANNUITY FOR REMOVED EM-
PLOYEE.—The Secretary shall order that the covered serv-
ice of an individual removed from a senior executive posi-
tion under section 713 of this title shall not be taken into 
account for purposes of calculating an annuity with re-
spect to such individual under chapter 83 or chapter 84 
of title 5, if— 
‘‘(1) the individual is convicted of a felony that 
influenced the individual’s performance while em-
ployed in the senior executive position; and 
‘‘(2) before such order is made, the individual 
is afforded notice and an opportunity for a hearing 
conducted by another department or agency of the 
Federal Government. 
‘‘(b) REDUCTION OF ANNUITY FOR RETIRED EM-
PLOYEE.—(1) The Secretary may order that the covered 
service of an individual who is subject to a removal or 
transfer action under section 713 of this title but who 
leaves employment at the Department prior to the 
issuance of a final decision with respect to such action 
shall not be taken into account for purposes of calculating
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. 
‘‘(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) DEFINITIONS.—In this section: 
‘‘(1) The term ‘covered service’ means, with re-
spect to an individual subject to a removal or trans-
fer action under section 713 of this title, the period 
of service beginning on the date that the Secretary 
determines under such section that such individual 
engaged in activity that gave rise to such action and 
ending on the date that such individual is removed 
from the civil service or leaves employment at the 
Department 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
amended by inserting after the item relating to sec-
tion 719, as added by section 5, 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, commencing on or after 
the date of the enactment of this Act. 
SEC. 7. LIMITATION ON ADMINISTRATIVE LEAVE FOR EM-
PLOYEES DEPARTMENT OF VETERANS AF-
FAIRS. 
(a) LIMITATION.— 
(1) IN GENERAL.—Chapter 7 of title 38, United 
States Code, is further amended by inserting after 
section 721, as added by section 6, the following new 
section: 
‘‘§ 723. Limitation on administrative leave 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(b), the Secretary may not place any covered individual 
on administrative leave, or any other type of paid non- 
duty status without charge to leave, for more than a total 
of 14 days during any 365-day period. 
‘‘(b) WAIVER.—The Secretary may waive the limita-
tion under subsection (a) and extend the administrative
leave or other paid non-duty status without charge to leave 
of a covered individual placed on such leave or status 
under subsection (a) if the Secretary submits to the Com-
mittees on Veterans’ Affairs of the Senate and House of 
Representatives a detailed explanation of the reasons the 
individual was placed on administrative leave or other paid 
non-duty status without charge to leave and the reasons 
for the extension of such leave or status. Such explanation 
shall include the name of the covered individual, the loca-
tion where the individual is employed, and the individual’s 
job title. 
‘‘(c) COVERED INDIVIDUAL.—In this subsection, the 
term ‘covered individual’ means an employee of the De-
partment— 
‘‘(1) who is subject to an investigation for pur-
poses of determining whether such individual should 
be subject to any disciplinary action under this title 
or title 5; or 
‘‘(2) against whom any disciplinary action is 
proposed or initiated under this title or title 5.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter, as amended 
by section 6, is further amended by inserting after 
the item relating to section 721 the following new 
item: 
‘‘723. Limitation on administrative leave.’’.
(b) APPLICATION.—Section 723 of title 38, United 
States Code, as added by subsection (a)(1), shall apply 
with respect to any 365-day period beginning on or after 
the date of enactment of this Act. 
SEC. 8. TREATMENT OF CONGRESSIONAL TESTIMONY BY 
DEPARTMENT OF VETERANS AFFAIRS EM-
PLOYEES AS OFFICIAL DUTY. 
(a) IN GENERAL.—Chapter 7 of title 38, United 
States Code, is further amended by inserting after section 
723, as added by section 7, the following new section: 
‘‘§ 725. 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 House of Congress, 
a committee of either House 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).’’.