I 
115TH CONGRESS 
1ST SESSION 
H. R. 611 
To amend title 38, United States Code, to provide for the removal or demotion 
of employees of the Department of Veterans Affairs based on perform-
ance or misconduct, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 23, 2017 
Mr. LAMBORN 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 
A BILL 
To amend title 38, United States Code, to provide for the 
removal or demotion of employees of the Department 
of Veterans Affairs based on performance or misconduct, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘VA Accountability First and Appeals Modernization Act 
of 2017’’. 
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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. 
Sec. 2. References to title 38, United States Code. 
Sec. 3. Removal or demotion of employees based on performance or misconduct. 
Sec. 4. Reduction of benefits for members of the Senior Executive Service with-
in the Department of Veterans Affairs convicted of certain 
crimes. 
Sec. 5. Authority to recoup bonuses or awards paid to employees of Department 
of Veterans Affairs. 
Sec. 6. Authority to recoup relocation expenses paid to or on behalf of employ-
ees of Department of Veterans Affairs. 
Sec. 7. Expansion of personnel actions for senior executives based on perform-
ance or misconduct and establishment of Senior Executive Dis-
ciplinary Appeals Board. 
Sec. 8. Reform of rights and processes relating to appeals of decisions regard-
ing claims for benefits under laws administered by Secretary 
of Veterans Affairs. 
Sec. 9. Limitation on awards and bonuses paid to senior executive employees 
of Department of Veterans Affairs. 
SEC. 2. REFERENCES TO TITLE 38, UNITED STATES CODE. 
Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision of title 38, United States Code. 
SEC. 3. REMOVAL OR DEMOTION OF EMPLOYEES BASED ON 
PERFORMANCE OR MISCONDUCT. 
(a) IN GENERAL.—Chapter 7 is amended— 
(1) by redesignating section 715 as section 725; 
and 
(2) by inserting after section 713 the following 
new section 715: 
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‘‘§ 715. Employees: removal or demotion based on 
performance or misconduct 
‘‘(a) IN GENERAL.—The Secretary may remove or 
demote an individual who is an employee of the Depart-
ment if the Secretary determines the performance or mis-
conduct of the individual warrants such removal or demo-
tion. If the Secretary so removes or demotes such an indi-
vidual, the Secretary may— 
‘‘(1) remove the individual from the civil service 
(as defined in section 2101 of title 5); or 
‘‘(2) demote the individual by means of— 
‘‘(A) a reduction in grade for which the in-
dividual is qualified and that the Secretary de-
termines is appropriate; or 
‘‘(B) a reduction in annual rate of pay 
that the Secretary determines is appropriate. 
‘‘(b) PAY OF CERTAIN DEMOTED INDIVIDUALS.—(1) 
Notwithstanding any other provision of law, any individual 
subject to a demotion by a reduction in grade under sub-
section (a)(2)(A) shall, beginning on the date of such de-
motion, receive the annual rate of pay applicable to such 
grade. 
‘‘(2) An individual demoted as described in paragraph 
(1) may not be placed on administrative leave or any other 
category of paid leave during the period during which an 
appeal (if any) under this section is ongoing, and may only 
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receive pay if the individual reports for duty. If an indi-
vidual so demoted does not report for duty, such individual 
shall not receive any pay, awards, bonuses, incentives, al-
lowances, differentials, student loan repayments, special 
payments, or benefits from the Department. 
‘‘(c) NOTICE TO CONGRESS.—Not later than 30 days 
after removing or demoting an individual under subsection 
(a), the Secretary shall submit to the Committee on Vet-
erans’ Affairs of the Senate and the Committee on Vet-
erans’ Affairs of the House of Representatives notice in 
writing of such removal or demotion and the reason for 
such removal or demotion. 
‘‘(d) PROCEDURE.—(1) Subsection (b) of section 
7513 of title 5 shall apply with respect to a removal or 
demotion under this section, except that the period for no-
tice and response, which includes the advance notice pe-
riod required by paragraph (1) of such subsection and the 
response period required by paragraph (2) of such sub-
section, shall not exceed a total of ten calendar days. 
‘‘(2) The procedures under chapter 43 of title 5 shall 
not apply to a removal or demotion under this section. 
‘‘(3)(A) Subject to subparagraph (B) and subsection 
(e), any removal or demotion under subsection (a) may 
be appealed to the Merit Systems Protection Board under 
section 7701 of title 5. 
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demotion is final. In such a case, the Merit Systems Pro-
tection Board shall, within 14 days after the date that 
such removal or demotion is final, submit to Congress and 
the Committee on Veterans’ Affairs of the Senate and the 
Committee on Veterans’ Affairs of the House of Rep-
resentatives a report that explains the reasons why a deci-
sion was not issued in accordance with such requirement. 
‘‘(5) The Merit Systems Protection Board may not 
stay any removal or demotion under this section. 
‘‘(6) During the period beginning on the date on 
which an individual appeals a removal from the civil serv-
ice under subsection (d) and ending on the date that the 
Merit Systems Protection Board issues a final decision on 
such appeal, such individual may not receive any pay, 
awards, bonuses, incentives, allowances, differentials, stu-
dent loan repayments, special payments, or benefits from 
the Department. 
‘‘(7) 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 this subsection is expe-
dited. 
‘‘(f) WHISTLEBLOWER PROTECTION.—(1) In the 
case of an individual seeking corrective action (or on be-
half of whom corrective action is sought) from the Office 
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of Special Counsel based on an alleged prohibited per-
sonnel practice described in section 2302(b) of title 5, the 
Secretary may not remove or demote such individual 
under subsection (a) without the approval of the Special 
Counsel under section 1214(f) of title 5. 
‘‘(2) In the case of an individual who has filed a whis-
tleblower complaint, as such term is defined in section 731 
of this title, the Secretary may not remove or demote such 
individual under subsection (a) until a final decision with 
respect to the whistleblower complaint has been made. 
‘‘(g) TERMINATION OF INVESTIGATIONS BY OFFICE 
OF SPECIAL COUNSEL.—Notwithstanding any other provi-
sion of law, the Special Counsel (established by section 
1211 of title 5) may terminate an investigation of a pro-
hibited personnel practice alleged by an employee or 
former employee of the Department after the Special 
Counsel provides to the employee or former employee a 
written statement of the reasons for the termination of 
the investigation. Such statement may not be admissible 
as evidence in any judicial or administrative proceeding 
without the consent of such employee or former employee. 
‘‘(h) RELATION TO OTHER AUTHORITIES.—The au-
thority provided by this section is in addition to the au-
thority provided by subchapter V of chapter 74 of this 
title, subchapter II of chapter 75 of title 5, chapter 43 
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of such title, and any other authority with respect to dis-
ciplining an individual. 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1) The term ‘individual’ means an individual 
occupying a position at the Department but does not 
include— 
‘‘(A) an individual, as that term is defined 
in section 713(g); or 
‘‘(B) a political appointee. 
‘‘(2) The term ‘grade’ has the meaning given 
that term in section 7511(a) of title 5. 
‘‘(3) The term ‘misconduct’ includes neglect of 
duty, malfeasance, or failure to accept a directed re-
assignment or to accompany a position in a transfer 
of function. 
‘‘(4) The term ‘political appointee’ means an in-
dividual who is— 
‘‘(A) employed in a position described 
under sections 5312 through 5316 of title 5 
(relating to the Executive Schedule); 
‘‘(B) a limited term appointee, limited 
emergency appointee, or noncareer appointee in 
the Senior Executive Service, as defined under 
paragraphs (5), (6), and (7), respectively, of 
section 3132(a) of title 5; or 
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‘‘(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 (or any suc-
cessor regulation).’’. 
(b) CLERICAL AND CONFORMING AMENDMENTS.— 
(1) CLERICAL.—The table of sections at the be-
ginning of chapter 7 is amended— 
(A) by striking the item relating to section 
715 and inserting the following new item: 
‘‘715. Employees: removal or demotion based on performance or misconduct.’’; 
and 
(B) by inserting after the item relating to 
section 715 the following new item: 
‘‘725. Congressional testimony by employees: treatment as official duty.’’. 
(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.’’. 
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SEC. 4. 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 is further amend-
ed by inserting after section 715, as added by sec-
tion 3, the following new section: 
‘‘§ 717. 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) 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— 
‘‘(i) notice of the order and an opportunity 
to respond to the order; and 
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‘‘(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 
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— 
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‘‘(i) notice of the order and an opportunity 
to respond to the order; and 
‘‘(ii) an opportunity for a hearing con-
ducted 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 described 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. 
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‘‘(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 that (but for this subsection) would other-
wise have been nonpayable by reason of subsection (a) or 
(b). Any such regulations shall be consistent with the re-
quirements of sections 8332(o)(5) and 8411(l)(5) of title 
5, as the case may be. 
‘‘(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. 
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‘‘(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 is further amend-
ed by inserting after the item relating to section 
715, as added by section 3, the following new item: 
‘‘717. Senior executives: reduction of benefits of individuals convicted of certain 
crimes.’’. 
(b) APPLICATION.—Section 717 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. 5. AUTHORITY TO RECOUP BONUSES OR AWARDS 
PAID TO EMPLOYEES OF DEPARTMENT OF 
VETERANS AFFAIRS. 
(a) IN GENERAL.—Chapter 7 is further amended by 
inserting after section 717, as added by section 4, the fol-
lowing new section: 
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‘‘§ 719. 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 such repayment 
appropriate pursuant 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 
‘‘(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 
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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 chapter 7 is further amended by insert-
ing after the item relating to section 717, as added by 
section 4, the following new item: 
‘‘719. Recoupment of bonuses or awards paid to employees of Department.’’. 
(c) EFFECTIVE DATE.—Section 719 of title 38, 
United States Code, as added by subsection (a), shall 
apply with respect to an award or bonus paid by the Sec-
retary of Veterans Affairs to an employee of the Depart-
ment of Veterans Affairs on or after the date of the enact-
ment 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. 
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SEC. 6. AUTHORITY TO RECOUP RELOCATION EXPENSES 
PAID TO OR ON BEHALF OF EMPLOYEES OF 
DEPARTMENT OF VETERANS AFFAIRS. 
(a) IN GENERAL.—Chapter 7 is further amended by 
inserting after section 719, as added by section 5, the fol-
lowing new section: 
‘‘§ 721. 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 for relocation 
expenses under title 5, including any expenses under sec-
tion 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; and 
‘‘(ii) such repayment is appropriate pursu-
ant to regulations prescribed under subsection 
(c); and 
‘‘(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 
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‘‘(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 by the applicable depart-
ment or agency of the Federal Government regarding a 
repayment by an employee pursuant to subsection 
(a)(1)(B)(ii) is final and may not be reviewed by any de-
partment, 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 chapter 7 is further amended by insert-
ing after the item relating to section 719, as added by 
section 5, the following new item: 
‘‘721. Recoupment of relocation expenses paid to or on behalf of employees of 
Department.’’. 
(c) EFFECTIVE DATE.—Section 721 of title 38, 
United States Code, as added by subsection (a), shall 
apply with respect to an amount paid by the Secretary 
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of Veterans Affairs to or on behalf of an employee of the 
Department of Veterans Affairs for relocation expenses 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. 
SEC. 7. EXPANSION OF PERSONNEL ACTIONS FOR SENIOR 
EXECUTIVES BASED ON PERFORMANCE OR 
MISCONDUCT AND ESTABLISHMENT OF SEN-
IOR 
EXECUTIVE 
DISCIPLINARY 
APPEALS 
BOARD. 
(a) EXPANSION
OF
COVERED
PERSONNEL
AC-
TIONS.—Subsection (a)(1) of section 713 is amended, in 
the matter preceding subparagraph (A), by inserting after 
‘‘such removal.’’ the following: ‘‘If the Secretary deter-
mines that the performance or misconduct of such an indi-
vidual does not warrant removal from the senior executive 
service position, the Secretary may suspend, reprimand, 
or admonish the individual.’’. 
(b) REMOVAL OF APPEAL TO MERIT SYSTEMS PRO-
TECTION BOARD.—Section 713 is further amended— 
(1) in subsection (a)— 
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(A) in paragraph (1), by striking ‘‘so re-
moves’’ and inserting ‘‘removes’’; and 
(B) by adding at the end the following: 
‘‘(3) On the date that is five days before taking any 
personnel action against a senior executive under para-
graph (1), the Secretary shall provide the individual 
with— 
‘‘(A) notice in writing of the proposed personnel 
action, including the reasons for such action; and 
‘‘(B) an opportunity to respond to the proposed 
personnel action within the five-day period.’’; 
(2) in subsection (b)(2)— 
(A) by striking ‘‘under this section’’ and 
inserting ‘‘under section 723 of this title’’; and 
(B) by striking the second sentence; 
(3) in subsection (c)— 
(A) by striking ‘‘30’’ and inserting ‘‘five’’; 
and 
(B) by striking ‘‘and the reason for such 
removal or transfer’’ and inserting ‘‘, the rea-
son for such removal or transfer, the name and 
position of the individual, and all charging doc-
uments and evidence pertaining to such removal 
or transfer’’; 
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(4) by striking subsections (d) and (e) and in-
serting the following: 
‘‘(d) PROCEDURE.—(1) The procedures under title 5 
shall not apply to any personnel action under this section. 
‘‘(2) Subject to paragraph (3), a personnel action 
under this section— 
‘‘(A) may be appealed to the Senior Executive 
Disciplinary Appeals Board under section 723 of 
this title; and 
‘‘(B) may not be appealed to the Merit Systems 
Protection Board under section 7701 of title 5. 
‘‘(3) An appeal under paragraph (2)(A) of a per-
sonnel action under this section may only be made if such 
appeal is made not later than seven days after the date 
of such action. If no such appeal is made, the decision 
of the Secretary under this section shall be final.’’; 
(5) by redesignating subsections (f) and (g) as 
subsections (e) and (f), respectively; and 
(6) in subsection (f), as redesignated by para-
graph (5), by adding at the end the following: 
‘‘(4) The term ‘suspend’ means the placing of 
an individual in a temporary status without duties 
and pay for a period greater than 14 days.’’. 
(c) REMOVAL OF EXPEDITED PROCEDURES.—Sec-
tion 707 of the Veterans Access, Choice, and Account-
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ability Act of 2014 (Public Law 113–146; 38 U.S.C. 713 
note) is amended— 
(1) by striking subsection (b); and 
(2) by redesignating subsections (c) and (d) as 
subsections (b) and (c), respectively. 
(d) SENIOR EXECUTIVE DISCIPLINARY APPEALS 
BOARD.—Chapter 7 is further amended by inserting after 
section 721, as added by section 6, the following new sec-
tion: 
‘‘§ 723. Senior Executive Disciplinary Appeals Board 
‘‘(a) IN GENERAL.—The Secretary shall from time 
to time appoint a board to hear appeals of any personnel 
action taken under section 713 of this title. Such board 
shall be known as the Senior Executive Disciplinary Ap-
peals Board (in this section referred to as the ‘Board’). 
Each Board shall consist of three employees of the De-
partment. The Board shall have exclusive jurisdiction to 
review any personnel action under section 713. 
‘‘(b) REVIEW AND DECISION.—Upon an appeal of 
such a personnel action, the Board shall— 
‘‘(1) review all evidence provided by the Sec-
retary and the appellant; and 
‘‘(2) issue a decision not later than 21 days 
after the date of the appeal. 
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‘‘(c) HEARING.—The Board shall afford an employee 
appealing a personnel action an opportunity for an oral 
hearing. If such a hearing is held, the appellant may be 
represented by counsel. 
‘‘(d) STANDARD OF REVIEW.—The Board shall up-
hold the decision of the Secretary if— 
‘‘(1) there is substantial evidence supporting 
the decision; and 
‘‘(2) the applicable personnel action is within 
the tolerable bounds of reasonableness. 
‘‘(e) REVERSAL BY SECRETARY.—If the Board issues 
a decision under this section that reverses or otherwise 
mitigates the applicable personnel action, the Secretary 
may reverse the decision of the Board. Consistent with the 
requirements of subsection (g), the decision of the Sec-
retary under this subsection shall be final. 
‘‘(f) NO DECISION BY BOARD.—In any case in which 
the Board cannot issue a decision in accordance with the 
21-day requirement under subsection (b)(2), the personnel 
action is final. 
‘‘(g) APPEAL OF DECISION.—A petition to review a 
final order or final decision of the Secretary or the Board 
under this section shall be filed in the United States Court 
of Appeals for the Federal Circuit. Any decision by such 
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Court shall be in compliance with section 7462(f)(2) of 
this title. 
‘‘(h) PROHIBITION
ON RECEIPT
OF BENEFITS.— 
During the period beginning on the date on which an indi-
vidual appeals a removal from the civil service under sec-
tion 713(d) of this title and ending on the date that the 
Board or Secretary issues a final decision on such appeal, 
such individual may not receive any pay, awards, bonuses, 
incentives, allowances, differentials, student loan repay-
ments, special payments, or benefits from the Depart-
ment.’’. 
(e) TECHNICAL AND CLERICAL AMENDMENTS.— 
(1) TECHNICAL
AMENDMENT.—The section 
heading of section 713 is amended to read as fol-
lows: ‘‘Senior executives: personnel actions 
based on performance or misconduct’’. 
(2) CLERICAL AMENDMENTS.—The table of sec-
tions at the beginning of chapter 7 is further amend-
ed— 
(A) by striking the item relating to section 
713 and inserting the following new item: 
‘‘713. Senior executives: personnel actions based on performance or mis-
conduct.’’; 
and 
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(B) by inserting after the item relating to 
section 721 the following new item: 
‘‘723. Senior Executive Disciplinary Appeals Board.’’. 
(f) RULE OF CONSTRUCTION.—Nothing in this sec-
tion or section 723 of title 38, United States Code, as 
added by subsection (d), shall be construed to apply to 
an appeal of a removal, transfer, or other personnel action 
that was pending before the date of the enactment of this 
Act. 
SEC. 8. REFORM OF RIGHTS AND PROCESSES RELATING TO 
APPEALS OF DECISIONS REGARDING CLAIMS 
FOR BENEFITS UNDER LAWS ADMINISTERED 
BY SECRETARY OF VETERANS AFFAIRS. 
(a) DEFINITIONS.—Section 101 is amended by add-
ing at the end the following new paragraphs: 
‘‘(34) The term ‘agency of original jurisdiction’ 
means the activity which entered the original deter-
mination with regard to a claim for benefits under 
laws administered by the Secretary. 
‘‘(35) The term ‘relevant evidence’ means evi-
dence that tends to prove or disprove a matter in 
issue.’’. 
(b) NOTICE REGARDING CLAIMS.—Section 5103(a) 
is amended— 
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(1) in paragraph (1), in the first sentence, by 
striking ‘‘The’’ and inserting ‘‘Except as provided in 
paragraph (3), the’’; 
(2) in paragraph (2)(B)(i) by striking ‘‘, a 
claim for reopening a prior decision on a claim, or 
a claim for an increase in benefits;’’ and inserting 
‘‘or a supplemental claim;’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(3) The requirement to provide notice under para-
graph (1) shall not apply with respect to a supplemental 
claim that is filed within the time frame set forth in sub-
paragraphs (B) and (D) of section 5110(a)(2) of this 
title.’’. 
(c) MODIFICATION
OF
RULE
REGARDING
DIS-
ALLOWED CLAIMS.—Section 5103A(f) is amended— 
(1) by striking ‘‘reopen’’ and inserting ‘‘readju-
dicate’’; and 
(2) by striking ‘‘material’’ and inserting ‘‘rel-
evant’’. 
(d) MODIFICATION
OF DUTY TO ASSIST CLAIM-
ANTS.— 
(1) LIMITATIONS ON DUTY.—Section 5103A(a) 
is amended— 
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(A) in paragraph (1), by striking ‘‘The’’ 
and inserting ‘‘Except as otherwise provided in 
this subsection, the’’; and 
(B) by adding at the end the following new 
paragraphs: 
‘‘(4) The Secretary’s duty to assist under paragraph 
(1) shall apply only to a claim, or supplemental claim, for 
a benefit under a law administered by the Secretary until 
the time that a claimant is provided notice of the decision 
of the agency of original jurisdiction with respect to such 
claim, or supplemental claim, under section 5104 of this 
title. 
‘‘(5) The Secretary’s duty to assist under paragraph 
(1) shall not apply to— 
‘‘(A) higher-level review by the agency of origi-
nal jurisdiction, pursuant to section 5104B of this 
title; or 
‘‘(B) to review on appeal by the Board of Vet-
erans’ Appeals.’’. 
(2) CORRECTION OF ERRORS FROM DUTY TO 
ASSIST.—Section 5103A is amended— 
(A) 
by 
redesignating 
subsections 
(e) 
through (g) as subsections (f) through (h), re-
spectively; and 
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(B) by inserting after subsection (d) the 
following new subsection: 
‘‘(e) CORRECTION OF DUTY TO ASSIST ERRORS.— 
(1) If, during review of the agency of original jurisdiction 
decision under section 5104B of this title, the higher-level 
reviewer identifies an error on the part of the agency of 
original jurisdiction to satisfy its duties under this section, 
and that error occurred prior to the agency of original ju-
risdiction decision being reviewed, unless the claim can be 
granted in full, the higher-level reviewer shall return the 
claim for correction of such error and readjudication. 
‘‘(2)(A) If the Board, during review on appeal of a 
decision of the agency of original jurisdiction, identifies 
an error on the part of the agency of original jurisdiction 
to satisfy its duties under section 5103A of this title, and 
that error occurred prior to the decision of the agency of 
original jurisdiction on appeal, unless the claim can be 
granted in full, the Board shall remand the claim to the 
agency of original jurisdiction for correction of such error 
and readjudication. 
‘‘(B) Remand for correction of an error under sub-
paragraph (A) may include directing the agency of original 
jurisdiction to obtain an advisory medical opinion under 
section 5109 of this title.’’. 
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(e) DECISIONS AND NOTICES OF DECISIONS.—Sub-
section (b) of section 5104 is amended to read as follows: 
‘‘(b) In any case where the Secretary denies a benefit 
sought, the notice required by subsection (a) shall also in-
clude all of the following: 
‘‘(1) Identification of the issues adjudicated. 
‘‘(2) A summary of the evidence considered by 
the Secretary. 
‘‘(3) A summary of the applicable laws and reg-
ulations. 
‘‘(4) Identification of findings favorable to the 
claimant. 
‘‘(5) Identification of elements not satisfied 
leading to the denial. 
‘‘(6) An explanation of how to obtain or access 
evidence used in making the decision. 
‘‘(7) If applicable, identification of the criteria 
that must be satisfied to grant service connection or 
the next higher level of compensation.’’. 
(f) BINDING NATURE OF FAVORABLE FINDINGS.— 
(1) IN GENERAL.—Chapter 51 is amended by 
inserting after section 5104 the following new sec-
tion: 
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‘‘§ 5104A. Binding nature of favorable findings 
‘‘Any finding favorable to the claimant as described 
in section 5104(b)(4) of this title shall be binding on all 
subsequent adjudicators within the Department, unless 
clear and convincing evidence is shown to the contrary to 
rebut such favorable finding.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 51 is amended by 
inserting after the item relating to section 5104 the 
following new item: 
‘‘5104A. Binding nature of favorable findings.’’. 
(g) HIGHER-LEVEL REVIEW BY AGENCY OF ORIGI-
NAL JURISDICTION.— 
(1) IN GENERAL.—Chapter 51, as amended by 
subsection (f), is further amended by inserting after 
section 5104A, as added by such subsection, the fol-
lowing new section: 
‘‘§ 5104B. Higher-level review by the agency of origi-
nal jurisdiction 
‘‘(a) IN GENERAL.—A claimant may request a de 
novo review of the decision of the agency of original juris-
diction by a higher-level adjudicator within the agency of 
original jurisdiction. 
‘‘(b) TIME AND MANNER OF REQUEST.—(1) A re-
quest for higher-level review by the agency of original ju-
risdiction shall be— 
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‘‘(A) in writing in such form as the Secretary 
may prescribe; and 
‘‘(B) made within one year of the notice of the 
agency of original jurisdiction’s decision. 
‘‘(2) Such request may specifically indicate whether 
such review is requested by a higher-level adjudicator at 
the same office within the agency of original jurisdiction 
or by an adjudicator at a different office of the agency 
of original jurisdiction. 
‘‘(c) DECISION.—Notice of a higher-level review deci-
sion under this section shall be provided in writing. 
‘‘(d) EVIDENTIARY RECORD FOR REVIEW.—The evi-
dentiary record before the higher-level reviewer shall be 
limited to the evidence of record in the agency of original 
jurisdiction decision being reviewed.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 51, as amended by 
subsection (f), is further amended by inserting after 
the item relating to section 5104A, as added by such 
subsection, the following new item: 
‘‘5104B. Higher-level review by the agency of original jurisdiction.’’. 
(h) SUPPLEMENTAL CLAIMS.— 
(1) IN GENERAL.—Section 5108 is amended to 
read as follows: 
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‘‘§ 5108. Supplemental claims 
‘‘If new and relevant evidence is presented or secured 
with respect to a supplemental claim, the Secretary shall 
readjudicate the claim taking into consideration any evi-
dence added to the record prior to the former disposition 
of the claim.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 51 is amended by 
striking the item relating to section 5108 and insert-
ing the following new item: 
‘‘5108. Supplemental claims.’’. 
(i) REMAND
OF CLAIM
FOR ADVISORY MEDICAL 
OPINION.—Section 5109 is amended by adding at the end 
the following new subsection: 
‘‘(d) The Board of Veterans’ Appeals may remand 
a claim to direct the agency of original jurisdiction to ob-
tain an advisory medical opinion under this section to cor-
rect an error on the part of the agency of original jurisdic-
tion to satisfy its duties under section 5103A of this title 
when such error occurred prior to the decision of the agen-
cy of original jurisdiction on appeal. The remand instruc-
tions set forth by the Board shall include the questions 
to be posed to the independent medical expert providing 
the advisory medical opinion.’’. 
(j) EFFECTIVE DATES OF AWARDS.—Section 5110 is 
amended— 
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(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a)(1) Unless specifically provided otherwise in this 
chapter, the effective date of an award based on an initial 
claim, or a supplemental claim, of compensation, depend-
ency and indemnity compensation, or pension, shall be 
fixed in accordance with the facts found, but shall not be 
earlier than the date of receipt of application therefor. 
‘‘(2) For purposes of determining the effective date 
of an award under this section, the date of application 
shall be considered the date of the filing of the initial ap-
plication for a benefit if the claim is continuously pursued 
by filing any of the following, either alone or in succession: 
‘‘(A) A request for higher-level review under 
section 5104B of this title on or before the date that 
is one year after the date on which the agency of 
original jurisdiction issues a decision. 
‘‘(B) A supplemental claim under section 5108 
of this title on or before the date that is one year 
after the date on which the agency of original juris-
diction issues a decision. 
‘‘(C) A notice of disagreement on or before the 
date that is one year after the date on which the 
agency of original jurisdiction issues a decision. 
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‘‘(D) A supplemental claim under section 5108 
of this title on or before the date that is one year 
after the date on which the Board of Veterans’ Ap-
peals issues a decision. 
‘‘(3) Except as otherwise provided in this section, for 
supplemental claims received more than one year after the 
date on which the agency of original jurisdiction issued 
a decision or the Board of Veterans’ Appeals issued a deci-
sion, the effective date shall be fixed in accordance with 
the facts found, but shall not be earlier than the date of 
receipt of the supplemental claim.’’; and 
(2) in subsection (i), in the first sentence— 
(A) by striking ‘‘reopened’’ and inserting 
‘‘readjudicated’’; 
(B) by striking ‘‘material’’ and inserting 
‘‘relevant’’; and 
(C) by striking ‘‘reopening’’ and inserting 
‘‘readjudication’’. 
(k) DEFINITION OF AWARD OR INCREASED AWARD 
FOR PURPOSES
OF PROVISIONS RELATING
TO COM-
MENCEMENT
OF
PERIOD
OF
PAYMENT.—Section 
5111(d)(1) is amended by striking ‘‘or reopened award’’ 
and inserting ‘‘award or award based on a supplemental 
claim’’. 
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(l) MODIFICATION ON LIMITATION ON FEES ALLOW-
ABLE FOR REPRESENTATION.—Section 5904(c) is amend-
ed, in paragraphs (1) and (2), by striking ‘‘notice of dis-
agreement is filed’’ both places it appears and inserting 
‘‘claimant is provided notice of the agency of original juris-
diction’s initial decision under section 5104 of this title’’. 
(m) MODIFICATION OF BOARD OF VETERANS’ AP-
PEALS REFERRAL REQUIREMENTS AFTER ORDER FOR 
RECONSIDERATION OF DECISIONS.—Section 7103(b)(1) 
is amended by striking ‘‘heard’’ both places it appears and 
inserting ‘‘decided’’. 
(n) CONFORMING AMENDMENT RELATING TO RE-
ADJUDICATION BY BOARD OF VETERANS’ APPEALS.— 
Section 7104(b) is amended by striking ‘‘reopened’’ and 
inserting ‘‘readjudicated’’. 
(o) MODIFICATION OF RIGHTS AND PROCEDURES 
FOR APPEALS TO BOARD OF VETERANS’ APPEALS.— 
(1) IN GENERAL.—Section 7105 is amended— 
(A) in subsection (a)— 
(i) by striking the first sentence and 
inserting ‘‘Appellate review shall be initi-
ated by the filing of a notice of disagree-
ment in the form prescribed by the Sec-
retary.’’; and 
(ii) by striking ‘‘hearing and’’; 
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(B) by amending subsection (b) to read as 
follows: 
‘‘(b)(1)(A) Except in the case of simultaneously con-
tested claims, notice of disagreement shall be filed within 
one year from the date of the mailing of notice of the deci-
sion of the agency of original jurisdiction pursuant to sec-
tion 5104, 5104B, or 5108 of this title. 
‘‘(B) A notice of disagreement postmarked before the 
expiration of the one-year period shall be accepted as time-
ly filed. 
‘‘(C) A question as to timeliness or adequacy of the 
notice of disagreement shall be decided by the Board. 
‘‘(2)(A) Notices of disagreement shall be in writing, 
shall set out specific allegations of error of fact or law, 
and may be filed by the claimant, the claimant’s legal 
guardian, or such accredited representative, attorney, or 
authorized agent as may be selected by the claimant or 
legal guardian. 
‘‘(B) Not more than one recognized organization, at-
torney, or agent may be recognized at any one time in 
the prosecution of a claim. 
‘‘(C) Notices of disagreement shall be filed with the 
Board. 
‘‘(3)(A) The notice of disagreement shall indicate 
whether the claimant requests— 
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‘‘(i) a hearing before the Board; 
‘‘(ii) an opportunity to submit additional evi-
dence without a hearing before the Board; or 
‘‘(iii) a review by the Board without a hearing 
or submission of additional evidence. 
‘‘(B) If the claimant does not expressly request a 
hearing before the Board in the notice of disagreement, 
no hearing before the Board may be held.’’; 
(C) by amending subsection (c) to read as 
follows: 
‘‘(c) If no notice of disagreement is filed in accord-
ance with this chapter within the prescribed period, the 
action or decision of the agency of original jurisdiction 
shall become final and the claim may not thereafter be 
readjudicated or allowed, except as may otherwise be pro-
vided by section 5104B or 5108 of this title or such regu-
lations as the Secretary may promulgate that are con-
sistent with this title.’’; 
(D) by striking subsection (d) and insert-
ing the following new subsection (d): 
‘‘(d) The Board of Veterans’ Appeals may dismiss 
any appeal which fails to allege specific error of fact or 
law in the decision being appealed.’’; 
(E) by striking subsection (e); and 
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(F) in the section heading, by striking 
‘‘notice of disagreement and’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 71 is amended by 
striking the item relating to section 7105 and insert-
ing the following new item: 
‘‘7105. Filing of appeal.’’. 
(p) MODIFICATION OF PROCEDURES AND REQUIRE-
MENTS
FOR SIMULTANEOUSLY CONTESTED CLAIMS.— 
Subsection (b) of section 7105A is amended to read as 
follows: 
‘‘(b)(1) The substance of the notice of disagreement 
shall be communicated to the other party or parties in in-
terest and a period of thirty days shall be allowed for filing 
a brief or argument in response thereto. 
‘‘(2) Such notice shall be forwarded to the last known 
address of record of the parties concerned, and such action 
shall constitute sufficient evidence of notice.’’. 
(q) REPEAL OF PROCEDURES FOR ADMINISTRATIVE 
APPEALS.— 
(1) IN GENERAL.—Chapter 71 is amended by 
striking section 7106. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 71 is amended by 
striking the item relating to section 7106. 
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(r) MODIFICATIONS RELATING TO APPEALS: DOCK-
ETS; HEARINGS.—Section 7107 is amended to read as fol-
lows: 
‘‘§ 7107. Appeals: dockets; hearings 
‘‘(a) DOCKETS.—(1) The Board shall maintain two 
separate dockets as follows: 
‘‘(A) A non-hearing option docket shall be 
maintained for cases in which no Board hearing is 
requested and no additional evidence will be sub-
mitted. 
‘‘(B) A separate and distinct hearing option 
docket shall be maintained for cases in which a 
Board hearing is requested in the notice of disagree-
ment or in which no Board hearing is requested, but 
the appellant requests, in the notice of disagreement, 
an opportunity to submit additional evidence. 
‘‘(2) Except as provided in subsection (b), each case 
before the Board will be decided in regular order according 
to its respective place on the Board’s non-hearing option 
docket or the hearing option docket. 
‘‘(b) ADVANCEMENT ON THE DOCKET.—(1) A case 
on either the Board’s non-hearing option docket or hear-
ing option docket may, for cause shown, be advanced on 
motion for earlier consideration and determination. 
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‘‘(2) Any such motion shall set forth succinctly the 
grounds upon which the motion is based. 
‘‘(3) Such a motion may be granted only— 
‘‘(A) if the case involves interpretation of law of 
general application affecting other claims; 
‘‘(B) if the appellant is seriously ill or is under 
severe financial hardship; or 
‘‘(C) for other sufficient cause shown. 
‘‘(c) MANNER AND SCHEDULING OF HEARINGS FOR 
CASES ON BOARD HEARING OPTION DOCKET.—(1) For 
cases on the Board hearing option docket in which a hear-
ing is requested in the notice of disagreement, the Board 
shall notify the appellant whether a Board hearing will 
be held— 
‘‘(A) at its principal location, or 
‘‘(B) by picture and voice transmission at a fa-
cility of the Department where the Secretary has 
provided suitable facilities and equipment to conduct 
such hearings. 
‘‘(2)(A) Upon notification of a Board hearing at the 
Board’s principal location as described in subparagraph 
(A) of paragraph (1), the appellant may alternatively re-
quest a hearing as described in subparagraph (B) of such 
paragraph. If so requested, the Board shall grant such re-
quest. 
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‘‘(B) Upon notification of a Board hearing by picture 
and voice transmission as described in subparagraph (B) 
of paragraph (1), the appellant may alternatively request 
a hearing as described in subparagraph (A) of such para-
graph. If so requested, the Board shall grant such request. 
‘‘(d) SCREENING OF CASES.—Nothing in this section 
shall be construed to preclude the screening of cases for 
purposes of— 
‘‘(1) determining the adequacy of the record for 
decisional purposes; or 
‘‘(2) the development, or attempted develop-
ment, of a record found to be inadequate for 
decisional purposes.’’. 
(s) REPEAL
OF AUTHORITY
FOR INDEPENDENT 
MEDICAL OPINIONS.— 
(1) IN GENERAL.—Chapter 71 is amended by 
striking section 7109. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 71 is amended by 
striking the item relating to section 7109. 
(3) 
CONFORMING
AMENDMENT.—Section 
5701(b)(1) is amended by striking ‘‘or 7109’’. 
(t) MODIFICATION OF STANDARD FOR REVIEW OF 
DECISIONS ON GROUNDS OF CLEAR AND UNMISTAKABLE 
ERROR.—Section 7111(e) is amended by striking ‘‘, with-
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‘‘(i) Evidence submitted by the appellant and 
his or her representative, if any, at the Board hear-
ing. 
‘‘(ii) Evidence submitted by the appellant and 
his or her representative, if any, within 90 days fol-
lowing the Board hearing. 
‘‘(2)(A) Except as provided in subparagraph (B), for 
cases on the hearing option docket in which a hearing is 
not requested in the notice of disagreement, the evi-
dentiary record before the Board shall be limited to the 
evidence considered by the agency of original jurisdiction 
in the decision on appeal. 
‘‘(B) The evidentiary record before the Board for 
cases on the hearing option docket in which a hearing is 
not requested, shall include each of the following, which 
the Board shall consider in the first instance: 
‘‘(i) Evidence submitted by the appellant and 
his or her representative, if any, with the notice of 
disagreement. 
‘‘(ii) Evidence submitted by the appellant and 
his or her representative, if any, within 90 days fol-
lowing receipt of the notice of disagreement.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 71 is amended by 
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inserting after the item relating to section 7112 the 
following new item: 
‘‘7113. Evidentiary record before the Board of Veterans’ Appeals.’’. 
SEC. 9. LIMITATION ON AWARDS AND BONUSES PAID TO 
SENIOR EXECUTIVE EMPLOYEES OF DEPART-
MENT OF VETERANS AFFAIRS. 
Section 705 of the Veterans Access, Choice, and Ac-
countability Act of 2014 (Public Law 113–146; 38 U.S.C. 
703 note) is amended— 
(1) in subsection (a), by striking ‘‘The Sec-
retary’’ and inserting ‘‘Except as provided in sub-
section (b), the Secretary’’; 
(2) by redesignating subsection (b) as sub-
section (c); and 
(3) by inserting after subsection (a) the fol-
lowing new subsection (b): 
‘‘(b) PROHIBITION ON AWARDS AND BONUSES FOR 
SENIOR EXECUTIVE EMPLOYEES.—During each of fiscal 
years 2017 through 2021, no award or bonus may be paid 
to any employee of the Department of Veterans Affairs 
who is employed in a Senior Executive Service position, 
as that term is defined in section 3132(a)(2) of title 5.’’. 
Æ 
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