H.R. 1259House115th Congress (2017-2019)Passed House

VA Accountability First Act of 2017

Sponsored by David P. RoeRep. David P. Roe (R-TN)
Introduced February 28, 2017

AI-Generated Summary

Updated April 15, 2026 at 1:18 PM UTC

The VA Accountability First Act of 2017 amends Title 38 to give the Department of Veterans Affairs stronger tools to discipline its workforce. It lets the VA secretary remove, demote, or suspend employees for poor performance or misconduct, cut benefits for convicted employees, and recover bonuses or relocation funds that were improperly awarded. The bill also adds reporting, hiring, and training requirements aimed at improving supervision and accountability within the VA.

Key Provisions

  • Creates a new Section 719 allowing the VA secretary to remove, demote, or suspend employees (including senior executives) for performance or misconduct, with fast‑track notice, a 10‑business‑day response window, and a streamlined appeal process, while protecting whistleblowers.
  • Adds Section 721 to reduce or eliminate annuity benefits for employees removed for misconduct who are later convicted of a felony related to that misconduct, with a brief notice‑and‑appeal period.
  • Adds Section 723 permitting the VA to require repayment of any bonus or award paid to an employee if misconduct or poor performance existed before the payment.
  • Adds Section 725 allowing the VA to recoup relocation expenses paid to an employee when the expenses were unauthorized or obtained through fraud, waste, or malfeasance.
  • Shortens response periods for certain adverse personnel actions from 14 to 10 days.
  • Gives the secretary direct hiring authority for medical‑center directors and Veterans Integrated Service Network (VISN) directors.
  • Requires an annual report to Congress detailing performance awards and bonuses given to senior‑level VA employees.
  • Mandates that supervisors be evaluated on addressing poor performance and fostering a positive culture, and that they receive periodic training on whistleblower rights, employee motivation, and managing under‑performers.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

29 earlier actions
SenateIntro Referral Latest Action

Received in the Senate and Read twice and referred to the Committee on Veterans' Affairs.

March 21, 2017

View full timeline
HouseIntro Referral

Introduced in House

February 28, 2017

HouseIntro Referral

Referred to the Committee on Veterans' Affairs, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

February 28, 2017

HouseCommittee

Reported by the Committee on Veterans' Affairs. H. Rept. 115-34, Part I.

March 10, 2017

HouseCommittee

Committee on Oversight and Government discharged.

March 10, 2017

HouseCalendars

Placed on the Union Calendar, Calendar No. 16.

March 10, 2017

HouseFloor

Considered under the provisions of rule H. Res. 198. (consideration: CR H2114-2135)

March 16, 2017 • 3:17 PM

HouseFloor

House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 198 and Rule XVIII.

March 16, 2017 • 3:18 PM

HouseFloor

The Speaker designated the Honorable Harold Rogers to act as Chairman of the Committee.

March 16, 2017 • 3:18 PM

HouseFloor

GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate on H.R. 1259.

March 16, 2017 • 3:18 PM

HouseFloor

DEBATE - Pursuant to the provisions of H.Res. 198, the Committee of the Whole proceeded with 10 minutes of debate on the Roe (TN) Part A amendment No. 1.

March 16, 2017 • 4:25 PM

HouseFloor

DEBATE - Pursuant to the provisions of H.Res. 198, the Committee of the Whole proceeded with 10 minutes of debate on the Walz Part A amendment No. 2.

March 16, 2017 • 4:26 PM

HouseFloor

POSTPONED PROCEEDINGS - At the conclusion of debate on the Walz Part A amendment No. 2, the Chair put the question on adoption of the amendment and by voice vote announced that the noes had prevailed. Mr. Walz demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until a time to be announced.

March 16, 2017 • 4:35 PM

HouseFloor

DEBATE - Pursuant to the provisions of H. Res. 198, the Committee of the Whole proceeded with 10 minutes of debate on the Kuster(NH) Part A amendment No. 4.

March 16, 2017 • 4:35 PM

HouseFloor

DEBATE - Pursuant to the provisions of H. Res. 198, the Committee of the Whole proceeded with 10 minutes of debate on the Taylor Part A amendment No. 6.

March 16, 2017 • 4:40 PM

HouseFloor

DEBATE - Pursuant to the provisions of H. Res. 198, the Committee of the Whole proceeded with 10 minutes of debate on the Tenney Part A amendment No. 7.

March 16, 2017 • 4:45 PM

HouseFloor

DEBATE - Pursuant to the provisions of H. Res. 198, the Committee of the Whole proceeded with 10 minutes of debate on the Kuster(NH) Part A amendment No. 8.

March 16, 2017 • 4:50 PM

HouseFloor

DEBATE - Pursuant to the provisions of H. Res. 198, the Committee of the Whole proceeded with 10 minutes of debate on the Takano Part A amendment No. 9.

March 16, 2017 • 4:55 PM

HouseFloor

POSTPONED PROCEEDINGS - At the conclusion of debate on the Takano Part A amendment No. 9, the Chair put the question on adoption of the amendment and by voice vote announced that the noes had prevailed. Mr. Takano demanded a recorded vote and the Chair postponed further proceedings on the question of adoption of the amendment until a time to be announced.

March 16, 2017 • 5:04 PM

HouseFloor

UNFINISHED BUSINESS - The Chair announced that the unfinished business was on adoption of amendments, which had been debated earlier and on which further proceedings had been postponed.

March 16, 2017 • 5:05 PM

HouseFloor

The House rose from the Committee of the Whole House on the state of the Union to report H.R. 1259.

March 16, 2017 • 5:35 PM

HouseFloor

The previous question was ordered pursuant to the rule.

March 16, 2017 • 5:36 PM

HouseFloor

The House adopted the amendment in the nature of a substitute as agreed to by the Committee of the Whole House on the state of the Union. (text of amendment in the nature of a substitute: CR H2122-2125)

March 16, 2017 • 5:37 PM

HouseFloor

Mr. Kihuen moved to recommit with instructions to the Committee on Veterans' Affairs. (text: CR H2133)

March 16, 2017 • 5:39 PM

HouseFloor

DEBATE - The House proceeded with 10 minutes of debate on the motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment to add language to the bill further defining protections to whistleblowers who file complaints.

March 16, 2017 • 5:39 PM

HouseFloor

The previous question on the motion to recommit with instructions was ordered without objection.

March 16, 2017 • 5:46 PM

HouseFloor

On motion to recommit with instructions Failed by recorded vote: 189 - 229 (Roll no. 167).

March 16, 2017 • 5:53 PM

HouseFloor

Passed/agreed to in House: On passage Passed by recorded vote: 237 - 178 (Roll no. 168).

March 16, 2017 • 5:59 PM

HouseFloor

On passage Passed by recorded vote: 237 - 178 (Roll no. 168).

March 16, 2017 • 5:59 PM

HouseFloor

Motion to reconsider laid on the table Agreed to without objection.

March 16, 2017 • 5:59 PM

SenateIntro Referral

Received in the Senate and Read twice and referred to the Committee on Veterans' Affairs.

March 21, 2017

Amendments

7 amendments

Offered to this bill

H.Amdt. 87Mar 16, 2017

Amendment sought to provide for the suspension and removal of VA employees for performance or misconduct that is a threat to public health and safety in place of the proposed removal process.

On agreeing to the Takano amendment (A007) Failed by recorded vote: 183 - 232 (Roll no. 166). · Sponsored by Mark Takano

H.Amdt. 86Mar 16, 2017

An amendment numbered 8 printed in House Report 115-39 to require VA supervisors to develop performance plans for employees, to include steps taken to address poor performance. It would also improve training for supervisors.

On agreeing to the Kuster (NH) amendment (A006) Agreed to by voice vote. · Sponsored by Ann M. Kuster

H.Amdt. 85Mar 16, 2017

An amendment numbered 7 printed in Part A of House Report 115-39 to require that bonuses awarded to senior-level executives within the Department of Veterans Affairs be reported to Congress on an annual basis.

On agreeing to the Tenney amendment (A005) Agreed to by voice vote. · Sponsored by Claudia Tenney

H.Amdt. 84Mar 16, 2017

An amendment numbered 6 printed in Part A of House Report 115-39 to require the Veterans Administration to provide a semi-annual report to the House and Senate Committees on Veterans Affairs outlining all instances of Senior Executives who are detailed to a new position within the agency. The report will contain details on the purpose of the reassignment as well as the costs associated with the reassignment.

On agreeing to the Taylor amendment (A004) Agreed to by voice vote. · Sponsored by Scott Taylor

H.Amdt. 83Mar 16, 2017

An amendment numbered 4 printed in Part A of House Report 115-39 to include as prohibited personnel practices as described in the whistleblower protection subsection of section 3 with those defined in 38 USC 733(c).

On agreeing to the Kuster (NH) amendment (A003) Agreed to by voice vote. · Sponsored by Ann M. Kuster

H.Amdt. 82Mar 16, 2017

Amendment sought to grant the VA Secretary improved authorities to hold VA senior executives and employees accountable, protect employees' constitutionally guaranteed due process rights, and protect employees' collective bargaining rights under federal law.

On agreeing to the Walz amendment (A002) Failed by recorded vote: 194 - 223 (Roll no. 165). · Sponsored by Timothy J. Walz

H.Amdt. 81Mar 16, 2017

An amendment numbered 1 printed in Part A of House Report 115-39 to insert "to or" after the word "paid" on page 20, line 15.

On agreeing to the Roe (TN) amendment (A001) Agreed to by voice vote. · Sponsored by David P. Roe

Floor Debate

16 members

What members said about H.R. 1259 on the floor

9 Republicans7 Democrats
Timothy J. Walz
Rep. Timothy J. WalzD-MN-1 · Mar 16, 2017

Mr. Chairman, I yield myself such time as I may consume. I rise in opposition to H.R. 1259. Let me be clear that I rise in opposition not after serving this Nation in uniform for 24 years; not after…

David P. Roe
Rep. David P. RoeR-TN-1 · Mar 16, 2017

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks and to insert extraneous material in the Record on H.R. 1259. Mr.…

Alcee L. Hastings
Rep. Alcee L. HastingsD-FL-20 · Jun 13, 2017

Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I thank my friend, the gentleman from Colorado, for yielding me the necessary and customary 30 minutes for debate. Mr. Speaker, I…

Alcee L. Hastings
Rep. Alcee L. HastingsD-FL-20 · Mar 16, 2017

Mr. Speaker, I yield myself such time as I may consume. I thank the gentleman, my friend from Colorado, for yielding me the customary 30 minutes for debate, and I rise to debate the rule providing…

Steny H. Hoyer
Rep. Steny H. HoyerD-MD-5 · Mar 10, 2017

Mr. Speaker, I yield to the gentleman from California (Mr. McCarthy), my friend, for the purpose of inquiring of the majority leader the schedule for the week to come. (Mr. McCARTHY asked and was…

Show 8 more
David P. Roe
Rep. David P. RoeR-TN-1 · Jun 13, 2017

Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and include extraneous material on S. 1094. Mr. Speaker, pursuant to House Resolution…

Ken Buck
Rep. Ken BuckR-CO-4 · Mar 16, 2017

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 198 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30…

Kevin McCarthy
Rep. Kevin McCarthyR-CA-23 · Mar 10, 2017

Mr. Speaker, I thank the gentleman for yielding. Mr. Speaker, on Monday, no votes are expected in the House. On Tuesday, the House will meet at noon for morning hour and 2 p.m. for legislative…

Timothy J. Walz
Rep. Timothy J. WalzD-MN-1 · Jun 13, 2017

Mr. Speaker, I yield myself such time as I may consume. I would like to associate myself with the chairman's remarks, especially the thanks of all the people involved in this. I think, Mr. Speaker,…

Ken Buck
Rep. Ken BuckR-CO-4 · Jun 13, 2017

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 378 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30…

Mark Takano
Rep. Mark TakanoD-CA-41 · Mar 16, 2017

Mr. Chairman, I thank the gentleman, Sergeant Major Walz from the State of Minnesota, for yielding me time. I also would like to say to the chairman, we had a wonderful time traveling to Afghanistan…

Brian J. Mast
Rep. Brian J. MastR-FL-18 · Mar 16, 2017

Mr. Speaker, I want to start by saying this. I was prompted to say this by the remarks from my colleague from Florida just now. I believe that there is absolutely nothing that is common sense about…

Steny H. Hoyer
Rep. Steny H. HoyerD-MD-5 · Mar 16, 2017

Mr. Chairman, I thank the gentleman for yielding. I rise in opposition to this bill, and I adopt many of the premises that my friend, Mr. Walz, adopted. I also adopt the premise of Dr. Roe, who is a…

Show 11 more
Ann M. Kuster
Rep. Ann M. KusterD-NH-2 · Mar 16, 2017

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, today I speak on behalf of my amendment, Kuster amendment No. 4. I firmly believe that my amendment will improve accountability at the…

Doug Collins
Rep. Doug CollinsR-GA-9 · Mar 16, 2017

Mr. Speaker, I appreciate my colleague from the Rules Committee yielding me time. I can't be in any more agreement with my friend from Florida just now. We talked about this actually in the Rules…

Jason Chaffetz
Rep. Jason ChaffetzR-UT-3 · Mar 16, 2017

Mr. Chair, I really appreciate what Chairman Roe of Tennessee is doing. He pours his heart and soul into one of the most important issues and things we can deal with here in Congress and, that is,…

Ruben J. Kihuen
Rep. Ruben J. KihuenD-NV-4 · Mar 16, 2017

Mr. Speaker, I have a motion to recommit at the desk. I am opposed in its current form. Mr. Speaker, this is the final amendment to the bill, which will not kill the bill or send it back to…

Mark Takano
Rep. Mark TakanoD-CA-41 · Jun 13, 2017

Mr. Speaker, I thank the ranking member for yielding time. And I want to thank Ranking Member Walz and Chairman Roe for their work on the issue of accountability and their tireless commitment to our…

Kevin McCarthy
Rep. Kevin McCarthyR-CA-23 · Jun 13, 2017

I thank the gentleman for yielding. Mr. Speaker, first and foremost, I want to thank Chairman Roe and the House Committee on Veterans' Affairs for their work on this legislation and their focus on…

Gerald E. Connolly
Rep. Gerald E. ConnollyD-VA-11 · Mar 23, 2017

Mr. Speaker, the VA Accountability First Act of 2017 (HR 1259) represents an attack on collective bargaining at federal agencies and an attempt to dismantle the Civil Service Reform Act of 1978…

Claudia Tenney
Rep. Claudia TenneyR-NY-22 · Mar 16, 2017

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, I rise today in support of my amendment to H.R. 1259, which would require the VA…

Mark Takano
Rep. Mark TakanoD-CA-41 · Mar 16, 2017

Mr. Speaker, I thank the gentleman from Florida for yielding me time. Mr. Speaker, I rise in opposition to the rule. In its current form, H.R. 1181 would endanger veterans in crisis and serve as…

Bruce Poliquin
Rep. Bruce PoliquinR-ME-2 · Jun 13, 2017

Mr. Speaker, I appreciate the opportunity to address the Floor on this important issue. Gentlemen, it was our first Commander in Chief, George Washington, who said something to the effect that we can…

Scott Taylor
Rep. Scott TaylorR-VA-2 · Mar 16, 2017

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, I rise to offer my amendment to the VA Accountability First Act. This amendment would require the Secretary of Veterans Affairs to submit…

Bill Text

4 versions available

Reading Mode
Latest
Referred in SenateIssued March 21, 2017

IIB

115th CONGRESS

1st Session

H. R. 1259

IN THE SENATE OF THE UNITED STATES

March 21, 2017

Received; read twice and referred to the Committee on Veterans' Affairs

AN ACT

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.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the VA Accountability First Act of 2017.

(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, demotion, and suspension of employees based on performance or misconduct.

Sec. 4. Reduction of benefits for Department of Veterans Affairs employees 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 employees of Department of Veterans Affairs.

Sec. 7. Time period for response to notice of adverse actions against supervisory employees who commit prohibited personnel actions.

Sec. 8. Direct hiring authority for medical center directors and VISN directors.

Sec. 9. Time periods for review of adverse actions with respect to certain employees.

Sec. 10. Annual report on performance awards and bonuses awarded to certain high-level employees of the Department of Veterans Affairs.

Sec. 11. Accountability of supervisors at Department of Veterans Affairs for addressing performance of employees.

Sec. 12. Improvement of training for supervisors.

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 provision, the reference shall be considered to be made to a section or other provision of title 38, United States Code.

3.

Removal, demotion, and suspension of employees based on performance or misconduct

(a)

In general

Subchapter I of chapter 7 is amended by adding at the end the following new section:

719.

Employees: removal, demotion, or suspension based on performance or misconduct

(a)

In general

The Secretary may remove, demote, or suspend an individual who is an employee of the Department if the Secretary determines the performance or misconduct of the individual warrants such removal, demotion, or suspension. If the Secretary so removes, demotes, or suspends such an individual, the Secretary may—

(1)

remove the individual from the civil service (as defined in section 2101 of title 5);

(2)

demote the individual by means of a reduction in grade for which the individual is qualified, that the Secretary determines is appropriate, and that reduces the annual rate of pay of the individual; or

(3)

suspend the individual.

(b)

Pay of certain demoted individuals

(1)

Notwithstanding any other provision of law, any individual subject to a demotion under subsection (a)(2) shall, beginning on the date of such demotion, receive the annual rate of pay applicable to such grade.

(2)

An individual so demoted may not be placed on administrative leave during the period during which an appeal (if any) under this section is ongoing, and may only receive pay if the individual reports for duty or is approved to use accrued unused annual, sick, family medical, military, or court leave. If an individual so demoted does not report for duty or receive approval to use accrued unused leave, such individual shall not receive pay or other benefits pursuant to subsection (e)(5).

(c)

Notice to Congress

(1)

Not later than 30 days after removing, demoting, or suspending an individual employed in a senior executive position under subsection (a) or after removing, demoting, or suspending an individual under chapter 74 of this title, the Secretary shall submit to the Committees on Veterans' Affairs of the Senate and House of Representatives and to each Member of Congress representing a district in the State or territory where the facility where the individual was employed immediately before being removed, demoted, or suspended is located notice in writing of such removal, demotion, or suspension. Such notice shall include the job title of the individual, the location where the individual was employed immediately before being removed, demoted, or suspended, the proposed action, and the reason for such removal, demotion, or suspension.

(2)

Not later than 30 days after the last day of a fiscal year, the Secretary shall submit to the Committees on Veterans' Affairs of the Senate and House of Representatives a report listing all removals, demotions, and suspensions under this section or under chapter 74 of this title during such fiscal year. Each such report shall include the job title of each individual removed, demoted, or suspended, the location where the individual was employed immediately before being so removed, demoted or suspended, the proposed action, and the reason for such removal, demotion, or suspension.

(3)

In this subsection, the term senior executive position means, with respect to a career appointee (as that term is defined in section 3132(a)(4) of title 5), a Senior Executive Service position (as such term is defined in section 3132(a)(2) of title 5).

(d)

Procedure

(1)

Subsection (b) of section 7513 of title 5 shall apply with respect to a removal, demotion, or suspension under this section, except that the period for notice and response, which includes the advance notice period required by paragraph (1) of such subsection and the response period required by paragraph (2) of such subsection, shall not exceed a total of 10 business days. Subsection (c) of such section and section 7121 of such title shall not apply with respect to such a removal, demotion, or suspension.

(2)

The Secretary shall issue a final decision with respect to a removal, demotion, or suspension under this section—

(A)

in the case of a proposed removal, demotion, or suspension to which an individual responds under paragraph (1), not later than five business days after receiving the response of the individual; or

(B)

in the case of a proposed removal, demotion, or suspension to which an individual does not respond, not later than 15 business days after the Secretary provides notice to the individual under paragraph (1).

(3)

The procedures under chapter 43 of title 5 shall not apply to a removal, demotion, or suspension under this section.

(4)
(A)

Subject to subparagraph (B) and subsection (e), any removal, demotion, or suspension under subsection (a) may be appealed to the Merit Systems Protection Board, which shall refer such appeal to an administrative judge pursuant to section 7701(b)(1) of title 5.

(B)

An appeal under subparagraph (A) of a removal, demotion, or suspension may only be made if such appeal is made not later than 7 days after the date of such removal, demotion, or suspension.

(e)

Expedited Review

(1)

Upon receipt of an appeal under subsection (d)(4)(A), the administrative judge shall expedite any such appeal under such section and, in any such case, shall issue a final and complete decision not later than 45 business days after the date of the appeal.

(2)

Notwithstanding section 7701(c)(1)(B) of title 5, the administrative judge shall uphold the decision of the Secretary to remove, demote, or suspend an employee under subsection (a) if the decision is supported by substantial evidence. If the decision of the Secretary is supported by substantial evidence, the administrative judge shall not mitigate the penalty prescribed by the Secretary.

(3)
(A)

The decision of the administrative judge under paragraph (1) may be appealed to the Merit Systems Protection Board.

(B)

An appeal under subparagraph (A) of a decision of an administrative judge may only be made if such appeal is made not later than 7 business days after the date of the decision of the administrative judge.

(4)

In any case in which the administrative judge cannot issue a decision in accordance with the 45-day requirement under paragraph (1), the Merit Systems Protection Board shall, not later than 14 business days after the expiration of the 45-day period, submit to the Committees on Veterans' Affairs of the Senate and House of Representatives a report that explains the reasons why a decision was not issued in accordance with such requirement.

(5)
(A)

A decision of the Merit Systems Protection Board under paragraph (3) may be appealed to the United States Court of Appeals for the Federal Circuit pursuant to section 7703 of title 5.

(B)

An appeal under subparagraph (A) of a decision of the Merit Systems Protection Board may only be made if such appeal is made not later than 7 business days after the date of the decision of the Board.

(C)

Any decision by such Court shall be in compliance with section 7462(f)(2) of this title.

(6)

The Merit Systems Protection Board may not stay any removal, demotion, under this section.

(7)

During the period beginning on the date on which an individual appeals a removal from the civil service under subsection (d) and ending on the date that the United States Court of Appeals for the Federal Circuit issues a final decision on such appeal, such individual may not receive any pay, awards, bonuses, incentives, allowances, differentials, student loan repayments, special payments, or benefits related to the employment of the individual by the Department.

(8)

To the maximum extent practicable, the Secretary shall provide to the Merit Systems Protection Board such information and assistance as may be necessary to ensure an appeal under this subsection is expedited.

(9)

If an employee prevails on appeal under this section, the employee shall be entitled to backpay (as provided in section 5596 of title 5).

(10)

This subsection shall supercede any collective bargaining agreement to the extent that such an agreement conflicts with this subsection.

(f)

Whistleblower protection

(1)

In the case of an individual seeking corrective action (or on behalf of whom corrective action is sought) from the Office of Special Counsel based on an alleged prohibited personnel practice described in section 2302(b) of title 5 or section 733(c) of this title, the Secretary may not remove, demote, or suspend 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 whistleblower complaint, as such term is defined in section 731 of this title, the Secretary may not remove, demote, or suspend 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 provision of law, the Special Counsel (established by section 1211 of title 5) may terminate an investigation of a prohibited 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)

Vacancies

In the case of an individual who is removed or demoted under subsection (a), to the maximum extent feasible, the Secretary shall fill the vacancy arising as a result of such removal or demotion.

(i)

Semi-Annual report on transferred employees

The Secretary shall submit to the Committees on Veterans’ Affairs of the Senate and House of Representatives semi-annual reports on senior executive employees who are transferred within the Department. Each such report shall include, for each such senior executive employee transferred during the period covered by the report, the reason for the transfer and any costs associated with the transfer.

(j)

Definitions

In this section:

(1)

The term individual means an individual occupying a position at the Department but does not include—

(A)

an individual appointed pursuant to section 7306, 7401(1), or 7405 of this title;

(B)

an individual who has not completed a probationary or trial period; or

(C)

a political appointee.

(2)

The term suspend means the placing of an employee, for disciplinary reasons, in a temporary status without duties and pay for a period in excess of 14 days.

(3)

The term grade has the meaning given such term in section 7511(a) of title 5.

(4)

The term misconduct includes neglect of duty, malfeasance, or failure to accept a directed reassignment or to accompany a position in a transfer of function.

(5)

The term political appointee means an individual 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

(C)

employed in a position of a confidential or policy-determining character under schedule C of subpart C of part 213 of title 5 of the Code of Federal Regulations.

.

(b)

Repeal of superceded provision of law

(1)

In general

Section 713 of title 38, United States Code, is hereby repealed.

(2)

Clerical amendment

The table of sections at the beginning of chapter 7 is amended by striking the item relating to section 713.

(c)

Clerical and conforming amendments

(1)

Clerical

The table of sections at the beginning of chapter 7 is amended by inserting after the item relating to section 717 the following new item:

719. Employees: removal, demotion, or suspension 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 paragraph (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 719 of title 38.

.

(d)

Temporary exemption from certain limitation on initiation from removal from Senior Executive Service

During the 120-day period beginning on the date of enactment of this Act, an action to remove an individual from the Senior Executive Service at the Department of Veterans Affairs pursuant to this section may be initiated, notwithstanding section 3592(b) of title 5, United States Code, or any other provision of law.

4.

Reduction of benefits for Department of Veterans Affairs employees convicted of certain crimes

(a)

Reduction of benefits

(1)

In general

Subchapter I of chapter 7 is further amended by inserting after section 719, as added by section 3, the following new section:

721.

Reduction of benefits of employees convicted of certain crimes

(a)

Reduction of annuity for removed employee

(1)

The Secretary shall order that the covered service of an employee of the Department removed from a position for performance or misconduct under section 719 or 7461 of this title 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 Secretary determines that the individual is convicted of a felony that influenced the individual’s performance while employed in the position;

(B)

before such order is made, the individual is afforded—

(i)

notice of the proposed order; and

(ii)

an opportunity to respond to the proposed order by not later than ten business days following receipt of such notice; and

(C)

the Secretary issues the order—

(i)

in the case of a proposed order to which an individual responds under subparagraph (B)(ii), not later than five business days after receiving the response of the individual; or

(ii)

in the case of a proposed order to which an individual does not respond, not later than 15 business days after the Secretary provides notice to the individual under subparagraph (B)(i).

(2)

Upon the issuance of an order by the Secretary under paragraph (1), the individual shall have an opportunity to appeal the order to the Director of the Office of Personnel Management before the date that is seven business days after the date of such issuance.

(3)

The Director of the Office of Personnel Management shall make a final decision with respect to an appeal under paragraph (2) within 30 business days of receiving the appeal.

(b)

Reduction of annuity for retired employee

(1)

The Secretary may order that the covered service of an individual who is removed for performance or misconduct under section 719 or 7461 of this title 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 Secretary determines that the individual is convicted of a felony that influenced the individual’s performance while employed in the position;

(B)

before such order is made, the individual is afforded—

(i)

notice of the proposed order; and

(ii)

opportunity to respond to the proposed order by not later than ten business days following receipt of such notice; and

(C)

the Secretary issues the order—

(i)

in the case of a proposed order to which an individual responds under subparagraph (B)(ii), not later than five business days after receiving the response of the individual; or

(ii)

in the case of a proposed order to which an individual does not respond, not later than 15 business days after the Secretary provides notice to the individual under subparagraph (B)(i).

(2)

Upon the issuance of an order by the Secretary under paragraph (1), the individual shall have an opportunity to appeal the order to the Director of the Office of Personnel Management before the date that is seven business days after the date of such issuance.

(3)

The Director of the Office of Personnel Management shall make a final decision with respect to an appeal under paragraph (2) within 30 business days of receiving the appeal.

(c)

Administrative requirements

Not later than 37 business days after the Secretary issues a final order under subsection (a) or (b), the Director of the Office of Personnel Management shall recalculate the annuity of the individual.

(d)

Lump-Sum Annuity Credit

Any individual with respect to whom an annuity is reduced under subsection (a) or (b) shall be entitled to be paid so much of such individual’s lump-sum credit as is attributable to the period of covered service.

(e)

Spouse or children exception

The Secretary, in consultation with the Office of Personnel Management, shall prescribe regulations that may provide for the payment to the spouse or children of any individual referred to in subsection (a) or (b) of any amounts which (but for this subsection) would otherwise have been nonpayable by reason of such subsections. Any such regulations shall be consistent with the requirements 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 respect to an individual subject to a removal for performance or misconduct under section 719 or 7461 of this title or any other provision of law, the period of service beginning on the date that the Secretary determines under such applicable provision that the individual engaged in activity that gave rise to such action and ending on the date that the individual is removed from or leaves a position of employment at the Department prior to the issuance of a final decision with respect to such action.

(2)

The term lump-sum credit has the meaning given such term in section 8331(8) or section 8401(19) of title 5, as the case may be.

(3)

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 sections at the beginning of chapter 7 is amended by inserting after the item relating to section 719, as added by section 3, the following new item:

721. Reduction of benefits of employees 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 of an employee of the Department of Veterans Affairs under section 719 or 7461 of this title or any other provision of law, commencing on or after the date of the enactment of this Act.

5.

Authority to recoup bonuses or awards paid to employees of Department of Veterans Affairs

(a)

In general

Subchapter I of chapter 7 is further amended by inserting after section 721, as added by section 4, the following new section:

723.

Recoupment of bonuses or awards paid to employees of Department

(a)

In general

Notwithstanding any other provision 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 that the individual engaged in misconduct or poor performance prior to payment of the award or bonus, and that such award or bonus would not have been paid, in whole or in part, had the misconduct or poor performance been known prior to payment;

(2)

before such repayment, the employee is afforded—

(A)

notice of the proposed order; and

(B)

an opportunity to respond to the proposed order by not later than ten business days after the receipt of such notice; and

(3)

the Secretary issues the order—

(A)

in the case of a proposed order to which an individual responds under paragraph (2)(B), not later than five business days after receiving the response of the individual; or

(B)

in the case of a proposed order to which an individual does not respond, not later than 15 business days after the Secretary provides notice to the individual under paragraph (2)(A).

(b)

Appeals

Upon the issuance of an order by the Secretary under subsection (a), the individual shall have an opportunity to appeal the order to another department or agency of the Federal Government before the date that is seven business days after the date of such issuance.

(c)

Final decisions

The head of the applicable department or agency of the Federal Government shall make a final decision with respect to an appeal under subsection (b) within 30 business days after receiving such appeal.

.

(b)

Clerical amendment

The table of sections at the beginning of such chapter, as amended by section 4, is amended by inserting after the item relating to section 721, as added by section 4(a)(2), the following new item:

723. Recoupment of bonuses or awards paid to employees of Department.

.

(c)

Effective date

Section 723 of title 38, United States Code, as added by subsection (a), shall apply with respect to an award or bonus paid by the Secretary of Veterans Affairs to an employee of the Department of Veterans Affairs on or after the date of the enactment of this Act.

(d)

Construction

Nothing in this Act or the amendments made by this Act 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.

6.

Authority to recoup relocation expenses paid to or on behalf of employees of Department of Veterans Affairs

(a)

In general

Subchapter I of chapter 7 is further amended by adding at the end the following new section:

725.

Recoupment of relocation expenses paid to or on behalf of employees of Department

(a)

In general

Notwithstanding any other provision of law, the Secretary may issue an order directing an employee of the Department to repay the amount, or a portion of the amount, paid to or on behalf of the employee under title 5 for relocation expenses, including any expenses under section 5724 or 5724a of such title, or this title if—

(1)

the Secretary determines that relocation expenses were not lawfully authorized or that the employee committed an act of fraud, waste, or malfeasance that influenced the authorization of the relocation expenses;

(2)

before such repayment, the employee is afforded—

(A)

notice of the proposed order; and

(B)

an opportunity to respond to the proposed order not later than ten business days following the receipt of such notice; and

(3)

the Secretary issues the order—

(A)

in the case of a proposed order to which an individual responds under paragraph (2)(B), not later than five business days after receiving the response of the individual; or

(B)

in the case of a proposed order to which an individual does not respond, not later than 15 business days after the Secretary provides notice to the individual under paragraph (2)(A).

(b)

Appeals

Upon the issuance of an order by the Secretary under subsection (a), the individual shall have an opportunity to appeal the order to another department or agency of the Federal Government before the date that is seven business days after the date of such issuance.

(c)

Final decisions

The head of the applicable department or agency of the Federal Government shall make a final decision with respect to an appeal under subsection (b) within 30 days after receiving such appeal.

.

(b)

Clerical amendment

The table of sections at the beginning of such chapter is further amended by inserting after the item relating to section 723, as added by section 5(b), the following new item:

725. Recoupment of relocation expenses paid to or on behalf of employees of Department.

.

(c)

Effective date

Section 725 of title 38, United States Code, as added by subsection (a), shall apply with respect to an amount paid by the Secretary 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.

7.

Time period for response to notice of adverse actions against supervisory employees who commit prohibited personnel actions

Section 733(a)(2)(B) is amended—

(1)

in clause (i), by striking 14 days and inserting 10 days; and

(2)

in clause (ii), by striking 14-day period and inserting 10-day period.

8.

Direct hiring authority for medical center directors and VISN directors

(a)

In general

Section 7401 is amended by adding at the end the following new paragraph:

(4)

Medical center directors and directors of Veterans Integrated Service Networks with demonstrated ability in the medical profession, in health care administration, or in health care fiscal management.

.

(b)

Conforming amendment

Section 7404(a)(1) is amended by inserting and 7401(4) after 7306.

9.

Time periods for review of adverse actions with respect to certain employees

(a)

Physicians, dentists, podiatrists, chiropractors, optometrists, registered nurses, physician assistants, and expanded-Function dental auxiliaries

Section 7461(b)(2) is amended to read as follows:

(2)

In any case other than a case described in paragraph (1) that involves or includes a question of professional conduct or competence in which a major adverse action was not taken, such an appeal shall be made through Department grievance procedures under section 7463 of this title.

.

(b)

Major adverse actions involving professional conduct or competence

Section 7462 is amended—

(1)

in subsection (b)—

(A)

in paragraph (1)—

(i)

in subparagraph (A), by striking At least 30 and inserting Ten business; and

(ii)

in subparagraph (B)—

(I)

by striking A reasonable time, but not less than seven days and inserting The opportunity, within the ten-day notice period; and

(II)

by striking orally and;

(B)

in paragraph (3)—

(i)

by striking (A) If a proposed adverse action covered by this section is not withdrawn and inserting After considering the employee’s answer, if any;

(ii)

by striking 21 days and inserting 5 business days;

(iii)

by striking answer. The decision shall include a statement of and inserting answer stating; and

(iv)

by striking subparagraph (B); and

(C)

in paragraph (4)—

(i)

by striking (A) The Secretary and all that follows through (B) The Secretary and inserting The Secretary; and

(ii)

by striking 30 days and inserting 7 business days;

(2)

in subsection (c)—

(A)

in paragraph (3), by inserting the hearing must be concluded not later than 30 business days after the date on which the appeal is filed, and after If such a hearing is held,; and

(B)

in paragraph (4)—

(i)

by striking 45 days and inserting 15 business days; and

(ii)

by striking 120 days and inserting 45 business days; and

(3)

in subsection (d)(1), by striking 90 days and inserting 15 business days.

(c)

Other adverse actions

Section 7463 is amended—

(1)

by striking subsection (b) and redesignating subsections (c) through (e) as subsections (b) through (d), respectively; and

(2)

in subsection (b)(2), as so redesignated—

(A)

in subparagraph (A), by striking an advance and inserting ten business days; and

(B)

in subparagraph (B)—

(i)

by striking a reasonable time and inserting the opportunity, within the ten business day notice period,; and

(ii)

by striking orally and.

10.

Annual report on performance awards and bonuses awarded to certain high-level employees of the Department of Veterans Affairs

(a)

In general

Chapter 7 of title 38, United States Code, is further amended by inserting after section 723, as added by section 5, the following new section:

724.

Annual report on performance awards and bonuses awarded to certain high-level employees

(a)

In general

Not later than 30 days after the end of each fiscal year, the Secretary shall submit to the appropriate committees of Congress a report that contains, for the most recent fiscal year ending before the submittal of the report, a description of the performance awards and bonuses awarded to Regional Office Directors of the Department, Directors of Medical Centers of the Department, Directors of Veterans Integrated Service Networks, and any other individual employed in a senior executive position.

(b)

Elements

Each report submitted under subsection (a) shall include the following with respect to each performance award or bonus awarded to an individual described in such subsection:

(1)

The amount of each award or bonus.

(2)

The job title of the individual awarded the award or bonus.

(3)

The location where the individual awarded the award or bonus works.

(c)

Definitions

In this section:

(1)

The term appropriate committees of Congress means—

(A)

the Committee on Veterans’ Affairs and the Committee on Appropriations of the Senate; and

(B)

the Committee on Veterans’ Affairs and the Committee on Appropriations of the House of Representatives.

(2)

The term individual means—

(A)

a career appointee (as that term is defined in section 3132(a)(4) of title 5); or

(B)

any individual who occupies an administrative or executive position and who was appointed under section 7306(a) or section 7401(1) of this title.

(3)

The term senior executive position means—

(A)

with respect to a career appointee (as that term is defined in section 3132(a)(4) of title 5), a Senior Executive Service position (as such term is defined in section 3132(a)(2) of title 5); and

(B)

with respect to an individual appointed under section 7306(a) or section 7401(1) of this title, an administrative or executive position.

.

(b)

Clerical amendment

The table of sections at the beginning of chapter 7 of such title is amended by inserting after the item relating to section 723, as added by section 5, the following new item:

.

11.

Accountability of supervisors at Department of Veterans Affairs for addressing performance of employees

(a)

In general

The Secretary of Veterans Affairs shall ensure that, as a part of the annual performance plan of a supervisor in the Department, the supervisor is evaluated on the following:

(1)

Taking action to address poor performance and misconduct among the employees that report to the supervisor.

(2)

Taking steps to improve or sustain high levels of employee engagement.

(3)

Promoting a positive culture of service that—

(A)

reflects the mission of the Department and the values of integrity, commitment, advocacy, respect, and excellence; and

(B)

emphasizes the greatest degree of performance and conduct.

(b)

Supervisor defined

In this section, the term supervisor has the meaning given such term in section 7103(a) of title 5, United States Code.

12.

Improvement of training for supervisors

(a)

In general

The Secretary of Veterans Affairs shall provide to each employee of the Department of Veterans Affairs who is employed as a supervisor periodic training on the following:

(1)

The rights of whistleblowers and how to address a report by an employee of a hostile work environment, reprisal, or harassment.

(2)

How to effectively motivate, manage, and reward the employees who report to the supervisor.

(3)

How to effectively manage employees who are performing at an unacceptable level and access assistance from the human resources office of the Department and the Office of the General Counsel of the Department with respect to those employees.

(b)

Definitions

In this section:

(1)

Supervisor

The term supervisor has the meaning given such term in section 7103(a) of title 5, United States Code.

(2)

Whistleblower

The term whistleblower has the meaning given such term in section 323(g) of title 38, United States Code, as added by section 101.

Passed the House of Representatives March 16, 2017.

Karen L. Haas,

Clerk.