§ 701. Placement of employees in military installations

The Secretary may place employees of the Department in such Army, Navy, and Air Force installations as may be considered advisable for the purpose of adjudicating disability claims of, and giving aid and advice to, members of the Armed Forces who are about to be discharged or released from active military, naval, or air service.

§ 703. Miscellaneous authorities respecting employees

• (a) The Secretary may furnish and launder such wearing apparel as may be prescribed for employees in the performance of their official duties.
• (b) The Secretary may transport children of Department employees located at isolated stations to and from school in available Government-owned automotive equipment.
• (c) The Secretary may provide recreational facilities, supplies, and equipment for the use of patients in hospitals and employees in isolated installations.
• (d) The Secretary may provide for the preparation, shipment, installation, and display of exhibits, photographic displays, moving pictures, and other visual educational information and descriptive material. For the purposes of the preceding sentence, the Secretary may purchase or rent equipment.
• (e) The Secretary may reimburse employees for the cost of repairing or replacing their personal property damaged or destroyed by patients or domiciliary members while such employees are engaged in the performance of their official duties.
• (f)
  • (1) The Secretary, upon determining that an emergency situation exists and that such action is necessary for the effective conduct of the affairs of the Department, may use Government-owned, or leased, vehicles to transport employees to and from their place of employment and the nearest adequate public transportation or, if such public transportation is either unavailable or not feasible to use, to and from their place of employment and their home.
  • (2) The Secretary shall establish reasonable rates to cover the cost of the service rendered under this subsection, and all proceeds collected therefrom shall be applied to the applicable appropriation.

§ 705. Telephone service for medical officers and facility directors

The Secretary may pay for official telephone service and rental in the field whenever incurred in case of official telephones for directors of centers, hospitals, independent clinics, domiciliaries, and medical officers of the Department where such telephones are installed in private residences or private apartments or quarters, when authorized under regulations prescribed by the Secretary.

§ 707. Benefits for employees at overseas offices who are United States citizens

• (a) The Secretary may, under such rules and regulations as may be prescribed by the President or the President’s designee, provide to personnel of the Department who are United States citizens and are assigned by the Secretary to the Department offices in the Republic of the Philippines allowances and benefits similar to those provided by the following provisions of law:
  • (1) Section 905 of the Foreign Service Act of 1980 (relating to allowances to provide for the proper representation of the United States).
  • (2) Sections 901(1), (2), (3), (4), (7), (8), (9), (11), and (12) of the Foreign Service Act of 1980 (relating to travel expenses).
  • (3) Section 901(13) of the Foreign Service Act of 1980 (relating to transportation of automobiles).
  • (4) Section 903 of the Foreign Service Act of 1980 (relating to the return of personnel to the United States on leave of absence).
  • (5) Section 904(d) of the Foreign Service Act of 1980 (relating to payments by the United States of expenses for treating illness or injury of officers or employees and dependents requiring hospitalization).
  • (6) Section 5724a(c) of title 5 (relating to subsistence expenses for 60 days in connection with the return to the United States of the employee and such employee’s immediate family).
  • (7) Section 5724a(d) of title 5 (relating to the sale and purchase of the residence or settlement of an unexpired lease of the employee when transferred from one station to another station and both stations are in the United States, its territories or possessions, or the Commonwealth of Puerto Rico).
• (b) The authority in subsection (a) supplements, but is not in lieu of, other allowances and benefits for overseas employees of the Department provided by title 5 and the Foreign Service Act of 1980 ( 22 U.S.C. 3901 et seq.).

§ 709. Employment restrictions

• (a)
  • (1) Notwithstanding section 3134(d) of title 5 , the number of Senior Executive Service positions in the Department which are filled by noncareer appointees in any fiscal year may not at any time exceed 5 percent of the average number of senior executives employed in Senior Executive Service positions in the Department during the preceding fiscal year.
  • (2) For purposes of this subsection, the average number of senior executives employed in Senior Executive Service positions in the Department during a fiscal year shall be equal to 25 percent of the sum of the total number of senior executives employed in Senior Executive Service positions in the Department on the last day of each quarter of such fiscal year.
• (b) The number of positions in the Department which may be excepted from the competitive service, on a temporary or permanent basis, because of their confidential or policy-determining character may not at any time exceed the equivalent of 15 positions.
• (c)
  • (1) Political affiliation or activity may not be taken into account in connection with the appointment of any person to any position in or to perform any service for the Department or in the assignment or advancement of any employee in the Department.
  • (2) Paragraph (1) shall not apply—
    • (A) to the appointment of any person by the President under this title, other than the appointment of the Under Secretary for Health, the Under Secretary for Benefits, and the Inspector General; or
    • (B) to the appointment of any person to (i) a Senior Executive Service position as a noncareer appointee, or (ii) a position that is excepted from the competitive service, on a temporary or permanent basis, because of the confidential or policy-determining character of the position.

§ 711. Grade reductions

• (a) The Secretary may not implement a grade reduction described in subsection (b) unless the Secretary first submits to the Committees on Veterans’ Affairs of the Senate and House of Representatives a report containing a detailed plan for such reduction and a detailed justification for the plan. The report shall include a determination by the Secretary (together with data supporting such determination) that, in the personnel area concerned, the Department has a disproportionate number of employees at the salary grade or grades selected for reduction in comparison to the number of such employees at the salary levels involved who perform comparable functions in other departments and agencies of the Federal Government and in non-Federal entities. Any grade reduction described in such report may not take effect until the end of a period of 90 calendar days (not including any day on which either House of Congress is not in session) after the report is received by the committees.
• (b) A grade reduction referred to in subsection (a) is a systematic reduction, for the purpose of reducing the average salary cost for Department employees described in subsection (c), in the number of such Department employees at a specific grade level.
• (c) The employees referred to in subsection (b) are—
  • (1) health-care personnel who are determined by the Secretary to be providing either direct patient-care services or services incident to direct patient-care services;
  • (2) individuals who meet the definition of professional employee as set forth in section 7103(a)(15) of title 5 ; and
  • (3) individuals who are employed as computer specialists.
• (d) Not later than the 45th day after the Secretary submits a report under subsection (a), the Comptroller General shall, upon request of either of such Committees, submit to such committees a report on the Secretary’s compliance with such subsection. The Comptroller General shall include in the report the Comptroller General’s opinion as to the accuracy of the Secretary’s determination (and of the data supporting such determination) made under such subsection.
• (e) In the case of Department employees not described in subsection (c), the Secretary may not in any fiscal year implement a systematic reduction for the purpose of reducing the average salary cost for such Department employees that will result in a reduction in the number of such Department employees at any specific grade level at a rate greater than the rate of the reductions systematically being made in the numbers of employees at such grade level in all other agencies and departments of the Federal Government combined.

§ 713. Senior executives: removal, demotion, or suspension based on performance or misconduct

• (a)
  • (1) The Secretary may, as provided in this section, reprimand or suspend, involuntarily reassign, demote, or remove a covered individual from a senior executive position at the Department if the Secretary determines that the misconduct or performance of the covered individual warrants such action.
  • (2) If the Secretary so removes such an individual, the Secretary may remove the individual from the civil service (as defined in section 2101 of title 5 ).
• (b)
  • (1) A covered individual who is the subject of an action under subsection (a) is entitled to—
    • (A) advance notice of the action and a file containing all evidence in support of the proposed action;
    • (B) be represented by an attorney or other representative of the covered individual’s choice; and
    • (C) grieve the action in accordance with an internal grievance process that the Secretary, in consultation with the Assistant Secretary for Accountability and Whistleblower Protection, shall establish for purposes of this subsection.
  • (2)
    • (A) The aggregate period for notice, response, and decision on an action under subsection (a) may not exceed 15 business days.
    • (B) The period for the response of a covered individual to a notice under paragraph (1)(A) of an action under subsection (a) shall be 7 business days.
    • (C) A decision under this paragraph on an action under subsection (a) shall be issued not later than 15 business days after notice of the action is provided to the covered individual under paragraph (1)(A). The decision shall be in writing, and shall include the specific reasons therefor.
  • (3) The Secretary shall ensure that the grievance process established under paragraph (1)(C) takes fewer than 21 days.
  • (4) A decision under paragraph (2) that is not grieved, and a grievance decision under paragraph (3), shall be final and conclusive.
  • (5) A covered individual adversely affected by a decision under paragraph (2) that is not grieved, or by a grievance decision under paragraph (3), may obtain judicial review of such decision.
  • (6) In any case in which judicial review is sought under paragraph (5), the court shall review the record and may set aside any Department action found to be—
    • (A) arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with a provision of law;
    • (B) obtained without procedures required by a provision of law having been followed; or
    • (C) unsupported by substantial evidence.
• (c) Section 3592(b)(1) of title 5 and the procedures under section 7543(b) of such title do not apply to an action under subsection (a).
• (d) In this section:
  • (1) The term “covered individual” means—
    • (A) a career appointee (as that term is defined in section 3132(a)(4) of title 5 ); or
    • (B) any individual who occupies an administrative or executive position and who was appointed under section 7306(a), section 7401(1), or section 7401(4) of this title .
  • (2) 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.
  • (3) The term “senior executive position” means—
    • (A) with respect to a career appointee (as that term is defined in section 3132(a) of title 5 ), a Senior Executive Service position (as such term is defined in such section); and
    • (B) with respect to a covered individual appointed under section 7306(a) or section 7401(1) of this title , an administrative or executive position.

§ 714. Employees: removal, demotion, or suspension based on performance or misconduct

• (a)
  • (1) The Secretary may remove, demote, or suspend a covered individual who is an employee of the Department if the Secretary determines the performance or misconduct of the covered individual warrants such removal, demotion, or suspension.
  • (2) If the Secretary so removes, demotes, or suspends such a covered individual, the Secretary may—
    • (A) remove the covered individual from the civil service (as defined in section 2101 of title 5 );
    • (B) demote the covered individual by means of a reduction in grade for which the covered individual is qualified, that the Secretary determines is appropriate, and that reduces the annual rate of pay of the covered individual; or
    • (C) suspend the covered individual.
• (b)
  • (1) Notwithstanding any other provision of law, any covered 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)
    • (A) A covered 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 covered individual reports for duty or is approved to use accrued unused annual, sick, family medical, military, or court leave.
    • (B) If a covered individual so demoted does not report for duty or receive approval to use accrued unused leave, such covered individual shall not receive pay or other benefits pursuant to subsection (d)(5).
• (c)
  • (1)
    • (A) The aggregate period for notice, response, and final decision in a removal, demotion, or suspension under this section may not exceed 15 business days.
    • (B) The period for the response of a covered individual to a notice of a proposed removal, demotion, or suspension under this section shall be 7 business days.
    • (C) Paragraph (3) of subsection (b) of section 7513 of title 5 shall apply with respect to a removal, demotion, or suspension under this section.
    • (D) The procedures in this subsection shall supersede any collective bargaining agreement to the extent that such agreement is inconsistent with such procedures.
  • (2) The Secretary shall issue a final decision with respect to a removal, demotion, or suspension under this section not later than 15 business days after the Secretary provides notice, including a file containing all the evidence in support of the proposed action, to the covered individual of the removal, demotion, or suspension. The decision shall be in writing and shall include the specific reasons therefor.
  • (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 (d), any removal or demotion under this section, and any suspension of more than 14 days under this section, 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 10 business days after the date of such removal, demotion, or suspension.
• (d)
  • (1) Upon receipt of an appeal under subsection (c)(4)(A), the administrative judge shall expedite any such appeal under section 7701(b)(1) of title 5 and, in any such case, shall issue a final and complete decision not later than 180 days after the date of the appeal.
  • (2)
    • (A) 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.
    • (B) Notwithstanding title 5 or any other provision of law, 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) Notwithstanding section 7701(c)(1)(B) of title 5 , the Merit Systems Protection Board 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.
    • (C) Notwithstanding title 5 or any other provision of law, if the decision of the Secretary is supported by substantial evidence, the Merit Systems Protection Board shall not mitigate the penalty prescribed by the Secretary.
  • (4) In any case in which the administrative judge cannot issue a decision in accordance with the 180-day requirement under paragraph (1), the Merit Systems Protection Board shall, not later than 14 business days after the expiration of the 180-day period, submit to the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans’ Affairs of the 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 or to any court of appeals of competent jurisdiction pursuant to subsection (b)(1)(B) of such section.
    • (B) 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 or demotion under this section, except as provided in section 1214(b) of title 5 .
  • (7) During the period beginning on the date on which a covered individual appeals a removal from the civil service under subsection (c) and ending on the date that the United States Court of Appeals for the Federal Circuit issues a final decision on such appeal, such covered 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) If an employee who is subject to a collective bargaining agreement chooses to grieve an action taken under this section through a grievance procedure provided under the collective bargaining agreement, the timelines and procedures set forth in subsection (c) and this subsection shall apply.
• (e)
  • (1) In the case of a covered 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 , the Secretary may not remove, demote, or suspend such covered individual under subsection (a) without the approval of the Special Counsel under section 1214(f) of title 5 .
  • (2) In the case of a covered individual who has made a whistleblower disclosure to the Assistant Secretary for Accountability and Whistleblower Protection, the Secretary may not remove, demote, or suspend such covered individual under subsection (a) until—
    • (A) in the case in which the Assistant Secretary determines to refer the whistleblower disclosure under section 323(c)(1)(D) of this title to an office or other investigative entity, a final decision with respect to the whistleblower disclosure has been made by such office or other investigative entity; or
    • (B) in the case in which the Assistant Secretary determines not to refer the whistleblower disclosure under such section, the Assistant Secretary makes such determination.
• (f)
  • (1) 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.
  • (2) Such statement may not be admissible as evidence in any judicial or administrative proceeding without the consent of such employee or former employee.
• (g) In the case of a covered 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.
• (h) In this section:
  • (1) The term “covered individual” means an individual occupying a position at the Department, but does not include—
    • (A) an individual occupying a senior executive position (as defined in section 713(d) of this title );
    • (B) an individual appointed pursuant to sections 7306, 7401(1), 7401(4), or 7405 of this title;
    • (C) an individual who has not completed a probationary or trial period; or
    • (D) 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, Code of Federal Regulations, or successor regulation.
  • (6) The term “whistleblower disclosure” has the meaning given such term in section 323(g) of this title .

§ 715. Congressional testimony by employees: treatment as official duty

• (a) An employee of the Department is performing official duty during the period with respect to which the employee is testifying in an official capacity in front of either chamber of Congress, a committee of either chamber of Congress, or a joint or select committee of Congress.
• (b) The Secretary shall provide travel expenses, including per diem in lieu of subsistence, in accordance with applicable provisions under subchapter I of chapter 57 of title 5, to any employee of the Department of Veterans Affairs performing official duty described under subsection (a).

§ 717. Limitation on administrative leave

• (a) Except as provided in subsection (b), the Secretary may not place any covered individual on administrative leave, or any other type of paid non-duty status without charge to leave, for more than a total of 14 days during any 365-day period.
• (b) The Secretary may waive the limitation under subsection (a) and extend the administrative leave or other paid non-duty status without charge to leave of a covered individual placed on such leave or status under subsection (a) if the Secretary submits to the Committees on Veterans’ Affairs of the Senate and House of Representatives a detailed explanation of the reasons the individual was placed on administrative leave or other paid non-duty status without charge to leave and the reasons for the extension of such leave or status. Such explanation shall include the job title and grade of the covered individual and the location where the individual is employed.
• (c) In this section, the term “covered individual” means an employee of the Department—
  • (1) who is subject to an investigation for purposes of determining whether such individual should be subject to any disciplinary action under this title or title 5; or
  • (2) against whom any disciplinary action is proposed or initiated under this title or title 5.

§ 719. Reduction of benefits of employees convicted of certain crimes

• (a)
  • (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 713, 714, 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 (and the conviction is final) that influenced the individual’s performance while employed in the position; and
    • (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) Any individual with respect to whom an annuity is reduced under this subsection may appeal the reduction to the Director of the Office of Personnel Management pursuant to such regulations as the Director may prescribe for purposes of this subsection.
• (b)
  • (1) The Secretary may order that the covered service of an individual who the Secretary proposes to remove for performance or misconduct under section 713, 714, 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 individual is convicted of a felony (and the conviction is final) that influenced the individual’s performance while employed in the position; and
    • (B) before such order is made, the individual is afforded—
      • (i) notice of the proposed order;
      • (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) Not later than 37 business days after the Secretary issues a final order under subsection (a) or (b) with respect to an individual, the Director of the Office of Personnel Management shall recalculate the annuity of the individual.
• (d) 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)
  • (1) The Secretary, in consultation with the Director of the Office of Personnel Management, shall prescribe regulations that may provide for the payment to the spouse or children of any individual referred to in subsection (a) or (b) of any amounts which (but for this subsection) would otherwise have been nonpayable by reason of such subsections.
  • (2) Regulations prescribed under paragraph (1) shall be consistent with the requirements of section 8332( o )(5) and 8411( l )(5) of title 5, as the case may be.
• (f) 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.

§ 721. Recoupment of bonuses or awards paid to employees of Department

• (a) 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 chapters 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; and
  • (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 10 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)
  • (1) Upon the issuance of an order by the Secretary under subsection (a) with respect to an individual, 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.
  • (2) The Director shall make a final decision with respect to an appeal under paragraph (1) within 30 business days after receiving such appeal.

§ 723. Recoupment of relocation expenses paid on behalf of employees of Department

• (a) 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 paid following an act of fraud 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)
  • (1) Upon the issuance of an order by the Secretary under subsection (a) with respect to an individual, 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.
  • (2) The Director shall make a final decision with respect to an appeal under paragraph (1) within 30 days after receiving such appeal.

§ 725. Annual performance plan for political appointees

• (a) The Secretary shall conduct an annual performance plan for each political appointee of the Department that is similar to the annual performance plan conducted for an employee of the Department who is appointed as a career appointee (as that term is defined in section 3132(a) of title 5 ) within the Senior Executive Service at the Department.
• (b) Each annual performance plan conducted under subsection (a) with respect to a political appointee of the Department shall include an assessment of whether the appointee is meeting the following goals:
  • (1) Recruiting, selecting, and retaining well-qualified individuals for employment at the Department.
  • (2) Engaging and motivating employees.
  • (3) Training and developing employees and preparing those employees for future leadership roles within the Department.
  • (4) Holding each employee of the Department that is a manager accountable for addressing issues relating to performance, in particular issues relating to the performance of employees that report to the manager.
• (c) In this section, the term “political appointee” means an employee of the Department who holds—
  • (1) a position which has been excepted from the competitive service by reason of its confidential, policy-determining, policy-making, or policy-advocating character; or
  • (2) a position in the Senior Executive Service as a noncareer appointee (as such term is defined in section 3132(a) of title 5 ).

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

• (a) Not later than 100 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 all performance awards or bonuses awarded to each of the following:
  • (1) Regional Office Director of the Department.
  • (2) Director of a Medical Center of the Department.
  • (3) Director of a Veterans Integrated Service Network.
  • (4) Senior executive of the Department.
• (b) 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) In this section:
  • (1) The term “appropriate committees of Congress” means the Committees on Veterans’ Affairs and Appropriations of the Senate and House of Representatives.
  • (2) The term “senior executive” means—
    • (A) a career appointee; or
    • (B) an individual—
      • (i) in an administrative or executive position; and
      • (ii) appointed under section 7306(a) or section 7401(1) of this title .
  • (3) The term “career appointee” has the meaning given that term in section 3132(a) of title 5 .

§ 727. Reassignment of senior executives

• (a) No individual employed in a senior executive position at the Department may be reassigned to another such position at the Department unless such reassignment is approved in writing and signed by the Secretary.
• (b)
  • (1) Not later than June 30 and December 31 of each year, the Secretary shall submit to Congress a report on the reassignment of individuals employed in senior executive positions at the Department to other such positions at the Department during the period covered by the report.
  • (2) Each report submitted under paragraph (1) shall describe the purpose of each reassignment and the costs associated with such reassignment.
  • (3) For purposes of paragraph (2), costs associated with a reassignment may only include the following:
    • (A) A salary increase.
    • (B) Temporary travel expenses for the individual or the family of the individual.
    • (C) Moving expenses.
    • (D) A paid incentive.
• (c) In this section, the term “senior executive position” has the meaning given such term in section 713(d) of this title .

§ 728. Misuse of Department purchase cards

• (a)
  • (1) The Secretary shall prohibit any employee of the Department who the Secretary or the Inspector General of the Department determines has knowingly misused a purchase card from serving as a purchase card holder or approving official.
  • (2) Such a prohibition shall be in addition to any other applicable penalty.
• (b) For purposes of this section, the term “misuse” means—
  • (1) splitting purchases;
  • (2) exceeding applicable purchase card limits or purchase thresholds;
  • (3) purchasing any unauthorized item;
  • (4) using a purchase card without being an authorized purchase card holder; or
  • (5) violating ethics standards.

§ 731. Adverse actions against supervisory employees who commit prohibited personnel actions relating to whistleblower complaints

• (a)
  • (1) In accordance with paragraph (2), the Secretary shall carry out the following adverse actions against supervisory employees (as defined in section 7103(a) of title 5 ) whom the Secretary, an administrative judge, the Merit Systems Protection Board, the Office of Special Counsel, an adjudicating body provided under a union contract, a Federal judge, or the Inspector General of the Department determines committed a prohibited personnel action described in subsection (c):
    • (A) With respect to the first offense, an adverse action that is not less than a 12-day suspension and not more than removal.
    • (B) With respect to the second offense, removal.
  • (2)
    • (A) An employee against whom an adverse action under paragraph (1) is proposed is entitled to written notice.
    • (B)
      • (i) An employee who is notified under subparagraph (A) of being the subject of a proposed adverse action under paragraph (1) is entitled to 10 days following such notification to answer and furnish evidence in support of the answer.
      • (ii) If the employee does not furnish any such evidence as described in clause (i) or if the Secretary determines that such evidence is not sufficient to reverse the determination to propose the adverse action, the Secretary shall carry out the adverse action following such 10-day period.
    • (C) Paragraphs (1) and (2) of subsection (b) of section 7513 of title 5 , subsection (c) of such section, paragraphs (1) and (2) of subsection (b) of section 7543 of such title, and subsection (c) of such section shall not apply with respect to an adverse action carried out under paragraph (1).
• (b) With respect to a prohibited personnel action described in subsection (c), if the Secretary carries out an adverse action against a supervisory employee, the Secretary may carry out an additional adverse action under this section based on the same prohibited personnel action if the total severity of the adverse actions do not exceed the level specified in subsection (a).
• (c) A prohibited personnel action described in this subsection is any of the following actions:
  • (1) Taking or failing to take a personnel action in violation of section 2302 of title 5 against an employee relating to the employee—
    • (A) making a whistleblower disclosure to the Assistant Secretary for Accountability and Whistleblower Protection, the Inspector General of the Department, the Special Counsel, or Congress;
    • (B) providing information or participating as a witness in an investigation of a whistleblower disclosure made to the Assistant Secretary for Accountability and Whistleblower Protection, the Inspector General of the Department, the Special Counsel, or Congress;
    • (C) participating in an audit or investigation by the Comptroller General of the United States;
    • (D) refusing to perform an action that is unlawful or prohibited by the Department; or
    • (E) engaging in communications that are related to the duties of the position or are otherwise protected.
  • (2) Preventing or restricting an employee from making an action described in any of subparagraphs (A) through (E) of paragraph (1).
  • (3) Conducting a negative peer review or opening a retaliatory investigation because of an activity of an employee that is protected by section 2302 of title 5 .
  • (4) Requesting a contractor to carry out an action that is prohibited by section 4705(b) or section 4712(a)(1) of title 41 , as the case may be.
• (d) In this section, the term “whistleblower disclosure” has the meaning given such term in section 323(g) of this title .

§ 732. Protection of whistleblowers as criteria in evaluation of supervisors

• (a) The Secretary, in consultation with the Assistant Secretary of Accountability and Whistleblower Protection, shall develop criteria that—
  • (1) the Secretary shall use as a critical element in any evaluation of the performance of a supervisory employee; and
  • (2) promotes the protection of whistleblowers.
• (b) The criteria required by subsection (a) shall include principles for the protection of whistleblowers, such as the degree to which supervisory employees respond constructively when employees of the Department report concerns, take responsible action to resolve such concerns, and foster an environment in which employees of the Department feel comfortable reporting concerns to supervisory employees or to the appropriate authorities.
• (c) In this section, the terms “supervisory employee” and “whistleblower” have the meanings given such terms in section 323 of this title .

§ 733. Training regarding whistleblower disclosures

• (a) Not less frequently than once every two years, the Secretary, in coordination with the Whistleblower Protection Ombudsman designated under section 3(d)(1)(C) of the Inspector General Act of 1978 (5 U.S.C. App.), shall provide to each employee of the Department training regarding whistleblower disclosures, including—
  • (1) an explanation of each method established by law in which an employee may file a whistleblower disclosure;
  • (2) the right of the employee to petition Congress regarding a whistleblower disclosure in accordance with section 7211 of title 5 ;
  • (3) an explanation that the employee may not be prosecuted or reprised against for disclosing information to Congress, the Inspector General, or another investigatory agency in instances where such disclosure is permitted by law, including under sections 5701, 5705, and 7732 of this title, under section 552a of title 5 (commonly referred to as the Privacy Act), under chapter 93 of title 18, and pursuant to regulations promulgated under section 264(c) of the Health Insurance Portability and Accountability Act of 1996 ( Public Law 104–191 );
  • (4) an explanation of the language that is required to be included in all nondisclosure policies, forms, and agreements pursuant to section 115(a)(1) of the Whistleblower Protection Enhancement Act of 2012 ( 5 U.S.C. 2302 note); and
  • (5) the right of contractors to be protected from reprisal for the disclosure of certain information under section 4705 or 4712 of title 41.
• (b) The Secretary shall ensure, to the maximum extent practicable, that training provided under subsection (a) is provided in person.
• (c) Not less frequently than once every two years, the Secretary shall provide training on merit system protection in a manner that the Special Counsel certifies as being satisfactory.
• (d) The Secretary shall publish on the Internet website of the Department, and display prominently at each facility of the Department, the rights of an employee to make a whistleblower disclosure, including the information described in paragraphs (1) through (5) of subsection (a).
• (e) In this section, the term “whistleblower disclosure” has the meaning given such term in section 323 of this title .

§ 741. Executive Management Fellowship Program

• (a) There is in the Department an Executive Management Fellowship Program. The purpose of the program shall be to provide—
  • (1) eligible employees of the Veterans Benefits Administration and the Veterans Health Administration with training and experience in the private sector; and
  • (2) eligible employees of a private-sector entity with training and experience in the Department of Veterans Affairs.
• (b)
  • (1) A fellowship provided under this section is a 1-year fellowship during which—
    • (A) with respect to a Department participant, the participant receives training and experience at a private-sector entity that is engaged in the administration and delivery of health care or other services similar to the benefits administered by the Secretary; and
    • (B) with respect to a private-sector participant, the participant receives training and experience at the Veterans Benefits Administration or the Veterans Health Administration.
  • (2) The Secretary shall enter into such agreements with private-sector entities as are necessary to carry out this section.
• (c)
  • (1) In August of each year, the Secretary shall select—
    • (A) not fewer than 18 and not more than 30 eligible employees of the Veterans Benefits Administration and the Veterans Health Administration to receive a fellowship under this section; and
    • (B) not fewer than 18 and not more than 30 eligible employees of private-sector entities to receive a fellowship under this section.
  • (2) To the extent practicable, the Secretary shall select eligible employees under subparagraphs (A) and (B) of paragraph (1) from among eligible employees who are veterans in a manner that is reflective of the demographics of the veteran population of the United States and that whenever practicable provides a preference to such employees who represent or service rural areas.
• (d) For the purposes of this section, an eligible employee is—
  • (1) with respect to an employee of the Veterans Benefits Administration or the Veterans Health Administration, an employee who—
    • (A) is compensated at a rate of basic pay not less than the minimum rate of basic pay payable for grade GS–14 of the General Schedule and not more than either the minimum rate of basic pay payable to a member of the Senior Executive Service under section 5382 of title 5 or the minimum rate of basic pay payable pursuant to chapter 74 of this title, as the case may be;
    • (B) enters into an agreement with the Secretary under subsection (e); and
    • (C) submits to the Secretary an application containing such information and assurances as the Secretary may require; and
  • (2) with respect to an employee of a private-sector entity, an employee who—
    • (A) is employed in a position whose duties and responsibilities are commensurate with an employee of the Department described in paragraph (1);
    • (B) enters into an agreement with the Secretary under subsection (e); and
    • (C) submits to the Secretary an application containing such information and assurances as the Secretary may require.
• (e)
  • (1) An agreement between the Secretary and a Department participant shall be in writing, shall be signed by the participant, and shall include the following provisions:
    • (A) The Secretary’s agreement to provide the participant with a fellowship under this section;
    • (B) The participant’s agreement—
      • (i) to accept the fellowship;
      • (ii) after completion of the fellowship, to serve as a full-time employee in the Veterans Benefits Administration or the Veterans Health Administration for at least 2 years as specified in the agreement; and
      • (iii) that, during the 2-year period beginning on the last day of the fellowship, the participant will not accept employment in the same industry as the industry of the private-sector entity at which the participant accepts the fellowship.
    • (C) A provision that any financial obligation of the United States arising out of an agreement entered into under this subchapter, and any obligation of the participant which is conditioned on such agreement, is contingent upon funds being appropriated.
    • (D) A statement of the damages to which the United States is entitled under this subchapter for the participant’s breach of the agreement.
    • (E) Such other terms as the Secretary determines are required to be included in the agreement.
  • (2) An agreement between the Secretary and a private-sector participant shall be in writing, shall be signed by the participant, and shall include the following provisions:
    • (A) The Secretary’s agreement to provide the participant with a fellowship under this section.
    • (B) The participant’s agreement to accept the fellowship.
    • (C) Such other terms as the Secretary determines are required to be included in the agreement.
• (f)
  • (1) A Department participant shall be considered an employee of the Department for all purposes, including for purposes of receiving a salary and benefits, and shall remain eligible for all promotion and incentive programs otherwise available to such an employee.
  • (2) A private-sector participant shall be considered an employee of the private-sector entity that employs the participant for all purposes, including for purposes of receiving a salary and benefits, and during the fellowship shall be treated as a contractor of the Department.
• (g)
  • (1) Not later than 60 days after completing a fellowship under this section, a recipient of the fellowship shall submit to the Secretary a report on the fellowship.
  • (2) Each such report shall describe the duties of the recipient during the fellowship and any recommendations of the recipient for the application by the Secretary of industry processes, technologies, and best practices.
  • (3) Not later than 7 days after receiving each such report, the Secretary shall submit to the Committees on Veterans’ Affairs of the Senate and House of Representatives such report without change.
• (h) In this section:
  • (1) The term “Department participant” means an employee of the Veterans Benefits Administration or the Veterans Health Administration who is participating in the fellowship under this section.
  • (2) The term “private-sector entity” includes an entity operating under a public-private partnership.
  • (3) The term “private-sector participant” means an employee of a private-sector entity who is participating in the fellowship under this section.