Comprehensive Department of Veterans Affairs Performance Management and Accountability Reform Act of 2014

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Comprehensive Department of Veterans 
Affairs Performance Management and Accountability Reform Act of 2014''.

SEC. 2. IMPROVEMENT OF PERFORMANCE APPRAISAL OF SENIOR EXECUTIVES OF 
              THE DEPARTMENT OF VETERANS AFFAIRS.

    (a) Performance Appraisal System.--
            (1) In general.--Chapter 7 of title 38, United States Code, 
        is amended by adding at the end the following new section:
``Sec. 713. Senior Executive Service: performance appraisal
    ``(a) Performance Appraisal System.--The Secretary shall be 
responsible for carrying out the requirements of subchapter II of 
chapter 43 of title 5.
    ``(b) Organizational Performance Requirements.--(1) In implementing 
the performance appraisal system for senior executives of the 
Department required by section 4312 of title 5, the Secretary shall 
issue, by not later than September 1 of each year, organizational 
performance requirements to be used to inform the establishment of 
performance requirements for each senior executive of the Department. 
The performance requirements of each senior executive shall be 
achievable by each senior executive and shall be consistent with the 
organizational performance requirements issued by the Secretary.
    ``(2) Not less than half of the annual summary rating of a senior 
executive of the Department under section 4314 of title 5 shall be 
based on the organizational performance requirements issued under this 
subsection and applicable to such senior executive.
    ``(3) Not later than December 15 of each year, the Secretary shall 
submit to the Committees on Veterans' Affairs of the Senate and House 
of Representatives certification that for the fiscal year during which 
the certification is submitted that--
            ``(A) all individual and organizational performance 
        requirements applicable to senior executives of the Department 
        pursuant to section 4312 of title 5 accurately reflected the 
        organizational performance requirements of the Department; and
            ``(B) the performance requirements established for each 
        senior executive are expected to lead to the overall success of 
        the Department in meeting its organizational performance 
        requirements.
    ``(c) Additional Requirements.--(1) In implementing the performance 
appraisal system for senior executives of the Department required by 
section 4312 of title 5, the Secretary shall ensure that such system is 
designed to--
            ``(A) evaluate the contribution of each senior executive to 
        the overall mission and objectives of the Department;
            ``(B) ensure that each senior executive is accountable for 
        efforts undertaken to further the objectives of the 
        Departments; and
            ``(C) evaluate the contribution of each senior executive in 
        ensuring the Department meets the needs of veterans and their 
        dependants.
    ``(2)(A) The performance review board established pursuant to 
section 4314 of title 5 shall ensure that--
            ``(i) the performance requirements for each senior 
        executive of the Department clearly and distinctly address both 
        individual and organizational performance; and
            ``(ii) the performance of each senior executive is 
        evaluated based on such performance requirements together with 
        the demonstrated accountability, executive, and leadership 
        capabilities of the senior executive.
    ``(B) In evaluating the performance of a senior executive of the 
Department, the performance review board shall take into consideration 
each of the following:
            ``(i) Any deficiencies identified by the Inspector General 
        of the Department or the Comptroller General of the United 
        States in the performance of duties or areas managed by the 
        senior executive.
            ``(ii) Any final determination in response to a formal 
        complaint submitted regarding the performance of the senior 
        executive or a deficiency in a program under the direction of 
        the senior executive.
            ``(iii) The findings of any final report relating to the 
        performance of the senior executive or to a deficiency in a 
        program under the direction of the senior executive.
    ``(d) Annual Summary Ratings.--(1) The Secretary shall provide in a 
timely manner to any senior executive who receives an annual summary 
rating under section 4314(a) of title 5 of any level of performance 
lower than fully successful a detailed explanation of the performance 
deficiencies of the senior executive.
    ``(2) In the case of a senior executive for whom it is determined 
during a mid-year review that the senior executive is likely to receive 
an annual summary rating of less than fully successful, the Secretary 
shall ensure that senior executive is provided a plan to address 
performance deficiencies before the end of the evaluation period.
    ``(3) Any senior executive of the Department who receives two 
annual summary ratings of any level of performance lower than fully 
successful shall be removed from the Senior Executive Service.
    ``(4) Any senior executive who receives three consecutive annual 
summary ratings of the highest level of performance shall be provided 
with an opportunity to obtain a different position within the 
Department with more responsibility, if such a position is available.
    ``(e) Annual Reports.--Not later than January 1 of each year, the 
Secretary shall submit to the Committees on Veterans' Affairs of the 
Senate and House of Representatives a report on the senior executive 
performance appraisal system of the Department for the fiscal year 
preceding the fiscal year during which the report is submitted. Each 
such report shall include, for the year covered by the report, each of 
the following:
            ``(1) The number of senior executives who received summary 
        ratings.
            ``(2) The number of senior executives who received a 
        summary rating at each level of performance.
            ``(3) Any actions taken with respect to senior executives 
        who received ratings at a level of performance lower than fully 
        successful.
            ``(4) The number of initial annual summary ratings that 
        were raised or lowered by the performance review board.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``713. Senior Executive Service: performance appraisal.''.
    (b) Performance Pay for Physicians and Dentists.--Section 7431 of 
title 38, United States Code, is amended--
            (1) in subsection (b)(3), by inserting after ``dentist'' 
        the following: ``who received a fully successful level of 
        performance at the physician or dentist's most recent 
        performance appraisal'';
            (2) in subsection (c)--
                    (A) in paragraph (2)--
                            (i) by inserting ``(A)'' before ``Market 
                        pay''; and
                            (ii) by adding at the end the following new 
                        subparagraph:
            ``(B) The Secretary shall submit to the Committees on 
        Veterans' Affairs of the Senate and House of Representatives a 
        semi-annual report on health care trends, including anticipated 
        shortages of health care professionals by specific specialty 
        and location, which shall be used in determining the 
        recruitment and retention needs of the Department for purposes 
        of this subsection. The Secretary may not provide market pay to 
        a physician or dentist under this subsection unless the payment 
        of market pay to the physician or dentist meets a specialty or 
        location need of the Department as articulated in a report 
        submitted under this subparagraph.''.
                    (B) in paragraph (4)(B)--
                            (i) in clause (i), by striking the last 
                        sentence; and
                            (ii) in clause (iii), by striking ``should, 
                        to the extent practicable,'' and inserting 
                        ``shall''; and
            (3) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) by inserting ``(A)'' before ``One 
                        element''; and
                            (ii) by adding at the end the following: 
                        ``The Secretary shall establish a performance 
                        appraisal system for physicians and dentists. 
                        The performance appraisal system shall provide 
                        for annual summary ratings of levels of 
                        performance as follows:''
            ``(A) one or more fully successful levels;
            ``(B) a minimally satisfactory level; and
            ``(C) an unsatisfactory level.'';
                            (iii) by inserting after subparagraph (A) 
                        the following new subparagraph:
    ``(B) Under the performance appraisal system under subparagraph 
(A), performance shall be evaluated based on both individual and 
organizational performance and specific goals or objectives shall be 
explicitly linked to improved health care outcomes and quality as well 
as the Department's overall effectiveness in providing quality health 
care services. The specific goals and objectives shall be consistent 
with the overarching objectives and goals of the Department.
    ``(C) Under such performance appraisal system, each physician and 
dentist employed by the Department shall receive an annual review by 
the Under Secretary of Health. For each year, the Under Secretary shall 
submit to the Secretary certification that such reviews are 
conducted.'';
                    (B) by striking paragraph (3) and redesignating 
                paragraph (2) as paragraph (3);
                    (C) by inserting after paragraph (1) the following 
                new paragraph (2):
    ``(2) Under the performance appraisal system established under 
paragraph (1)--
            ``(A) on or before the beginning of each rating period, 
        performance requirements for each physician or dentist shall be 
        established in consultation with, and communicated to, each 
        physician or dentist;
            ``(B) written appraisals of performance shall be based on 
        the individual and organizational performance requirements 
        established for the rating period involved; and
            ``(C) each physician or dentist shall be provided a copy of 
        the appraisal and the physician or dentist's performance 
        appraisal rating and shall be given an opportunity to respond 
        in writing and have the rating reviewed by the Under Secretary 
        for Health before the rating becomes final.'';
                    (D) in paragraph (3), as redesignated by 
                subparagraph (B)--
                            (i) by inserting ``only'' after ``paid''; 
                        and
                            (ii) by striking ``on the basis'' and 
                        inserting ``who receives a level of performance 
                        of fully successful under the performance 
                        appraisal system established under paragraph 
                        (1) and whose performance exceeds the specific 
                        goals and performance objectives established 
                        under such system.'';
                    (E) in paragraph (4), by striking ``paragraph (2)'' 
                and inserting ``this subsection'';
                    (F) in paragraph (5)(B), by striking ``7.5 
                percent'' and inserting ``5 percent''; and
                    (G) by striking paragraph (6); and
            (4) by adding at the end the following new subsection:
    ``(i) Failure To Maintain a License.--A physician or dentist who 
has not maintained an appropriate professional license may not be 
paid.''.
    (c) Study.--Not later than one year after the date of the enactment 
of this Act, the Secretary shall submit to the Committees on Veterans' 
Affairs of the Senate and House of Representatives a report on the 
training program of the Department of Veterans Affairs for senior 
executives. Such report shall include--
            (1) an evaluation of succession planning and long-term 
        career development plans for senior executives and efforts 
        undertaken by the Department to improve cross-Department 
        opportunities for senior executives; and
            (2) the recommendations of the Secretary for improving the 
        mobility and effectiveness of senior executives.

Summary: Comprehensive Department of Veterans Affairs Performance Management and Accountability Reform Act of 2014 - Directs the Secretary of Veterans Affairs, in implementing the federal performance appraisal system for senior executives of the Department of Veterans Affairs (VA), to annually issue the organizational performance requirements to be achieved by each executive. Requires at least half of the annual rating of each executive to be based on such requirements. Directs the Secretary to certify to the congressional veterans committees, annually, that such requirements are being utilized and that each executive's rating accurately reflects use of such requirements. Provides additional implementation requirements. Directs the Secretary to provide a detailed explanation to any executive who receives an annual rating lower than fully successful. Requires each executive who receives: (1) two annual ratings of less than fully successful to be removed from the Senior Executive Service; or (2) three consecutive ratings of the highest performance level to be given an opportunity to obtain a different position within the VA with more responsibility, if such a position is available. Requires the Secretary to report annually on the VA's senior executive performance appraisal system. Allows VA physician and dentist performance pay only to those who received a fully successful level of performance in their most recent appraisal. Directs the Secretary to report semiannually on health care trends to be used in determining VA physician and dentist recruitment and retention needs. Requires: (1) the establishment of a performance appraisal system for VA physicians and dentists; and (2) their performance to be evaluated based on goals and objectives specifically linked to improved health care outcomes and quality, as well as overall effectiveness in providing quality health care services. Requires each VA physician or dentist be provided a copy of his or her annual rating under the system, as well as an opportunity to respond and have the rating reviewed by the VA's Under Secretary for Health. Prohibits a VA physician or dentist who has not maintained an appropriate professional license from being paid. Directs the Secretary to report on the VA training program for senior executives.