[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2486 Enrolled Bill (ENR)]
S.2486
One Hundred Eighth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twentieth day of January, two thousand and four
An Act
To amend title 38, United States Code, to improve and extend housing,
education, and other benefits under the laws administered by the
Secretary of Veterans Affairs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Veterans Benefits
Improvement Act of 2004''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Reference to title 38, United States Code.
TITLE I--VETERANS EARN AND LEARN ACT
Sec. 101. Short title.
Sec. 102. Modification of benefit entitlement charges for certain on-job
training programs.
Sec. 103. Increase in benefit for individuals pursuing apprenticeship or
on-job training.
Sec. 104. Authority for competency-based apprenticeship programs.
Sec. 105. Ten-year extension of delimiting period for survivors' and
dependents' educational assistance for spouses of members who
die on active duty.
Sec. 106. Availability of education benefits for payment for national
admissions exams and national exams for credit at institutions
of higher education.
Sec. 107. Requirement for coordination of data among the Departments of
Veterans Affairs, Defense, and Labor with respect to on-job
training.
Sec. 108. Pilot program to provide on-job benefits to train Department
of Veterans Affairs' claims adjudicators.
Sec. 109. Collection of payment for educational assistance under
Montgomery GI Bill from members of the Selected Reserve called
to active duty.
Sec. 110. Technical and conforming amendments.
TITLE II--EMPLOYMENT MATTERS
Subtitle A--Employment and Reemployment Rights
Sec. 201. Two-year period of continuation of employer-sponsored health
care coverage.
Sec. 202. Reinstatement of reporting requirements.
Sec. 203. Requirement for employers to provide notice of rights and
duties under USERRA.
Sec. 204. Demonstration project for referral of USERRA claims against
Federal agencies to the Office of Special Counsel.
Subtitle B--Other Matters
Sec. 211. Report of employment placement, retention, and advancement of
recently separated servicemembers.
TITLE III--BENEFITS MATTERS
Sec. 301. Additional dependency and indemnity compensation for surviving
spouses with dependent children.
Sec. 302. Offset of veterans' disability compensation and dependency and
indemnity compensation from awards under radiation exposure
compensation program.
Sec. 303. Exclusion of life insurance proceeds from consideration as
income for veterans' pension purposes.
Sec. 304. Certain service-connected disability benefits authorized for
persons disabled by treatment or vocational rehabilitation
provided by the Department of Veterans Affairs.
Sec. 305. Effective date of death pension.
Sec. 306. Codification of administrative actions relating to
presumptions of service connection for veterans exposed to
ionizing radiation.
Sec. 307. Codification of cost-of-living adjustment provided in Public
Law
108-47.
Sec. 308. Cross-reference amendments relating to concurrent payment of
retired pay and veterans' disability compensation.
TITLE IV--HOUSING MATTERS
Sec. 401. Authority to provide specially adapted housing to certain
disabled veterans.
Sec. 402. Transitional housing amendments.
Sec. 403. Increase in maximum amount of home loan guaranty for
construction and purchase of homes and annual indexing of
amount.
Sec. 404. Extension of authority for guarantee of adjustable rate
mortgages.
Sec. 405. Extension and improvement of authority for guarantee of hybrid
adjustable rate mortgages.
Sec. 406. Termination of collection of loan fees from veterans rated
eligible for compensation at pre-discharge rating
examinations.
Sec. 407. Three-year extension of Native American veteran housing loan
pilot program.
TITLE V--MATTERS RELATING TO FIDUCIARIES
Sec. 501. Definition of fiduciary.
Sec. 502. Inquiry, investigations, and qualification of fiduciaries.
Sec. 503. Misuse of benefits by fiduciaries.
Sec. 504. Additional protections for beneficiaries with fiduciaries.
Sec. 505. Annual report.
Sec. 506. Annual adjustment in benefits thresholds.
Sec. 507. Effective dates.
TITLE VI--MEMORIAL AFFAIRS MATTERS
Sec. 601. Designation of Prisoner of War/Missing in Action National
Memorial, Riverside National Cemetery, Riverside, California.
Sec. 602. Lease of certain National Cemetery Administration property.
Sec. 603. Exchanges of real property for national cemeteries.
TITLE VII--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT
Sec. 701. Clarification of meaning of ``judgment'' as used in the Act.
Sec. 702. Requirements relating to waiver of rights under the Act.
Sec. 703. Right of servicemember plaintiffs to request stay of civil
proceedings.
Sec. 704. Termination of leases.
TITLE VIII--OTHER MATTERS
Sec. 801. Principal office of United States Court of Appeals for
Veterans Claims.
Sec. 802. Technical amendments relating to the United States Court of
Appeals for Veterans Claims.
Sec. 803. Extension of biennial report of Advisory Committee on Former
Prisoners of War.
Sec. 804. Availability of administrative and judicial redress for
certain veterans denied opportunity to compete for Federal
employment.
Sec. 805. Report on servicemembers' and veterans' awareness of benefits
and services available under laws administered by Secretary of
Veterans Affairs.
SEC. 2. REFERENCE 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.
TITLE I--VETERANS EARN AND LEARN ACT
SEC. 101. SHORT TITLE.
This title may be cited as the ``Veterans Earn and Learn Act of
2004''.
SEC. 102. MODIFICATION OF BENEFIT ENTITLEMENT CHARGES FOR CERTAIN
ON-JOB TRAINING PROGRAMS.
(a) In General.--Section 3687 is amended by adding at the end the
following new subsection:
``(e)(1) For each month that an individual (as defined in paragraph
(3)) is paid a training assistance allowance under subsection (a), the
entitlement of the individual shall be charged at a percentage rate
(rounded to the nearest percent) that is equal to the ratio of--
``(A) the training assistance allowance for the month involved,
to
``(B) the monthly educational assistance allowance otherwise
payable for full-time enrollment in an educational institution.''.
``(2) For any month in which an individual fails to complete 120
hours of training, the entitlement otherwise chargeable under paragraph
(1) shall be reduced in the same proportion as the monthly training
assistance allowance payable is reduced under subsection (b)(3).
``(3) In this section, the term `individual' means--
``(A) an eligible veteran who is entitled to monthly
educational assistance allowances payable under section 3015(e) of
this title, or
``(B) an eligible person who is entitled to monthly educational
assistance allowances payable under section 3532(a) of this title,
as the case may be.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply with respect to months beginning after September 30, 2005.
SEC. 103. INCREASE IN BENEFIT FOR INDIVIDUALS PURSUING
APPRENTICESHIP OR ON-JOB TRAINING.
(a) Montgomery GI Bill.--For months beginning on or after October
1, 2005, and before January 1, 2008, subsection (c)(1) of section 3032
of title 38, United States Code, shall be applied as if--
(1) the reference to ``75 percent'' in subparagraph (A) were a
reference to ``85 percent'';
(2) the reference to ``55 percent'' in subparagraph (B) were a
reference to ``65 percent''; and
(3) the reference to ``35 percent'' in subparagraph (C) were a
reference to ``45 percent''.
(b) Post-Vietnam Era Veterans' Educational Assistance.--For months
beginning on or after October 1, 2005, and before January 1, 2008,
subsection (a) of section 3233 of title 38, United States Code, shall
be applied as if--
(1) the reference to ``75 percent'' in paragraph (1) were a
reference to ``85 percent'';
(2) the reference to ``55 percent'' in paragraph (2) were a
reference to ``65 percent''; and
(3) the reference to ``35 percent'' in paragraph (3) were a
reference to ``45 percent''.
(c) Survivors and Dependents Educational Assistance.--(1) For
months beginning on or after October 1, 2005, and before January 1,
2008, subsection (b)(2) of section 3687 of title 38, United States
Code, shall be applied as if--
(A) the reference to ``$574 for the first six months'' were a
reference to ``$650 for the first six months'';
(B) the reference to ``$429 for the second six months'' were a
reference to ``$507 for the second six months''; and
(C) the reference to ``$285 for the third six months'' were a
reference to ``$366 for the third six months''.
(2) Subsection (d) of such section 3687 shall not apply with
respect to the provisions of paragraph (1) for months occurring during
fiscal year 2006.
(3) For months beginning on or after January 1, 2008, the Secretary
shall carry out subsection (b)(2) of such section 3687 as if paragraphs
(1) and (2) were not enacted into law.
(d) Selected Reserve Montgomery GI Bill.--For months beginning on
or after October 1, 2005, and before January 1, 2008, subsection (d)(1)
of section 16131 of title 10, United States Code, shall be applied as
if--
(1) the reference to ``75 percent'' in subparagraph (A) were a
reference to ``85 percent'';
(2) the reference to ``55 percent'' in subparagraph (B) were a
reference to ``65 percent''; and
(3) the reference to ``35 percent'' in subparagraph (C) were a
reference to ``45 percent''.
SEC. 104. AUTHORITY FOR COMPETENCY-BASED APPRENTICESHIP PROGRAMS.
(a) In General.--Section 3672(c) is amended--
(1) by striking ``(1)'' and ``(2)'' and inserting ``(A)'' and
``(B)'', respectively;
(2) by inserting ``(1)'' after ``(c)''; and
(3) by adding at the end the following new paragraphs:
``(2) The period of a program of apprenticeship may be determined
based upon a specific period of time (commonly referred to as a `time-
based program'), based upon the demonstration of successful mastery of
skills (commonly referred to as a `competency-based program'), or based
upon a combination thereof.
``(3)(A) In the case of a competency-based program of
apprenticeship, State approving agencies shall determine the period for
which payment may be made for such a program under chapters 30 and 35
of this title and chapter 1606 of title 10. In determining the period
of such a program, State approving agencies shall take into
consideration the approximate term of the program recommended in
registered apprenticeship program standards recognized by the Secretary
of Labor.
``(B) The sponsor of a competency-based program of apprenticeship
shall provide notice to the State approving agency involved of any such
standards that may apply to the program and the proposed approximate
period of training under the program.
``(4) The sponsor of a competency-based program of apprenticeship
shall notify the Secretary upon the successful completion of a program
of apprenticeship by an individual under chapter 30 or 35 of this
title, or chapter 1606 of title 10, as the case may be.''.
(b) Increased Use of Apprenticeships.--Section 3672(d)(1) is
amended by adding at the end the following new sentence: ``The
Secretary of Labor shall provide assistance and services to the
Secretary, and to State approving agencies, to increase the use of
apprenticeships.''.
(c) Funding for Department Computer System Modifications.--From
amounts appropriated to the Department of Veterans Affairs for fiscal
year 2005 for readjustment benefits, the Secretary of Veterans Affairs
shall use an amount not to exceed $3,000,000 to modify computer systems
and to develop procedures required to carry out the amendments made by
subsection (a) and sections 102 and 103.
SEC. 105. TEN-YEAR EXTENSION OF DELIMITING PERIOD FOR SURVIVORS'
AND DEPENDENTS' EDUCATIONAL ASSISTANCE FOR SPOUSES OF MEMBERS WHO
DIE ON ACTIVE DUTY.
Section 3512(b)(1) is amended--
(1) in subparagraph (A), by striking ``in subparagraph (B)''
and inserting ``in subparagraph (B) or (C)''; and
(2) by adding at the end the following new subparagraph:
``(C) Notwithstanding subparagraph (A), an eligible person referred
to in that subparagraph who is made eligible under section
3501(a)(1)(B) of this title by reason of the death of a person on
active duty may be afforded educational assistance under this chapter
during the 20-year period beginning on the date (as determined by the
Secretary) such person becomes an eligible person within the meaning of
such section.''.
SEC. 106. AVAILABILITY OF EDUCATION BENEFITS FOR PAYMENT FOR
NATIONAL ADMISSIONS EXAMS AND NATIONAL EXAMS FOR CREDIT AT
INSTITUTIONS OF HIGHER EDUCATION.
(a) Covered Exams.--Sections 3452(b) and 3501(a)(5) are each
amended by adding at the end the following new sentence: ``Such term
also includes national tests for admission to institutions of higher
learning or graduate schools (such as the Scholastic Aptitude Test
(SAT), Law School Admission Test (LSAT), Graduate Record Exam (GRE),
and Graduate Management Admission Test (GMAT)) and national tests
providing an opportunity for course credit at institutions of higher
learning (such as the Advanced Placement (AP) exam and College-Level
Examination Program (CLEP)).''.
(b) Amount of Payment.--
(1) Chapter 30.--Section 3032 is amended by adding at the end
the following new subsection:
``(g)(1) Subject to paragraph (3), the amount of educational
assistance payable under this chapter for a national test for admission
or national test providing an opportunity for course credit at
institutions of higher learning described in section 3452(b) of this
title is the amount of the fee charged for the test.
``(2) The number of months of entitlement charged in the case of
any individual for a test described in paragraph (1) is equal to the
number (including any fraction) determined by dividing the total amount
of educational assistance paid such individual for such test by the
full-time monthly institutional rate of educational assistance, except
for paragraph (1), such individual would otherwise be paid under
subsection (a)(1), (b)(1), (d), or (e)(1) of section 3015 of this
title, as the case may be.
``(3) In no event shall payment of educational assistance under
this subsection for a test described in paragraph (1) exceed the amount
of the individual's available entitlement under this chapter.''.
(2) Chapter 32.--Section 3232 is amended by adding at the end
the following new subsection:
``(d)(1) Subject to paragraph (3), the amount of educational
assistance payable under this chapter for a national test for admission
or national test providing an opportunity for course credit at
institutions of higher learning described in section 3452(b) of this
title is the amount of the fee charged for the test.
``(2) The number of months of entitlement charged in the case of
any individual for a test described in paragraph (1) is equal to the
number (including any fraction) determined by dividing the total amount
of educational assistance paid such individual for such test by the
full-time monthly institutional rate of educational assistance, except
for paragraph (1), such individual would otherwise be paid under this
chapter.
``(3) In no event shall payment of educational assistance under
this subsection for a test described in paragraph (1) exceed the amount
of the individual's available entitlement under this chapter.''.
(3) Chapter 35.--Section 3532 is amended by adding at the end
the following new subsection:
``(g)(1) Subject to paragraph (3), the amount of educational
assistance payable under this chapter for a national test for admission
or national test providing an opportunity for course credit at
institutions of higher learning described in section 3501(a)(5) of this
title is the amount of the fee charged for the test.
``(2) The number of months of entitlement charged in the case of
any individual for a test described in paragraph (1) is equal to the
number (including any fraction) determined by dividing the total amount
of educational assistance paid such individual for such test by the
full-time monthly institutional rate of educational assistance, except
for paragraph (1), such individual would otherwise be paid under this
chapter.
``(3) In no event shall payment of educational assistance under
this subsection for a test described in paragraph (1) exceed the amount
of the individual's available entitlement under this chapter.''.
SEC. 107. REQUIREMENT FOR COORDINATION OF DATA AMONG THE
DEPARTMENTS OF VETERANS AFFAIRS, DEFENSE, AND LABOR WITH RESPECT
TO ON-JOB TRAINING.
Section 3694 is amended--
(1) by striking ``In carrying out'' and inserting ``(a) In
General.--In carrying out''; and
(2) by adding at the end the following new subsection:
``(b) Coordination of Information Among the Departments of Veterans
Affairs, Defense, and Labor With Respect to On-Job Training.--At the
time of a servicemember's discharge or release from active duty
service, the Secretary of Defense shall furnish to the Secretary such
pertinent information concerning each registered apprenticeship pursued
by the servicemember during the period of active duty service of the
servicemember. The Secretary, in conjunction with the Secretary of
Labor, shall encourage and assist States and private organizations to
give credit to servicemembers for the registered apprenticeship program
so pursued in the case of any related apprenticeship program the
servicemember may pursue as a civilian.''.
SEC. 108. PILOT PROGRAM TO PROVIDE ON-JOB BENEFITS TO TRAIN
DEPARTMENT OF VETERANS AFFAIRS' CLAIMS ADJUDICATORS.
Section 3677 is amended by adding at the end the following new
subsection:
``(d)(1) The Secretary may conduct a pilot program under which the
Secretary operates a program of training on the job under this section
for a period (notwithstanding subsection (c)(2)) of up to three years
in duration to train employees of the Department to become qualified
adjudicators of claims for compensation, dependency and indemnity
compensation, and pension.
``(2)(A) Not later than three years after the implementation of the
pilot project, the Secretary shall submit to Congress an initial report
on the pilot project. The report shall include an assessment of the
usefulness of the program in recruiting and retaining of personnel of
the Department as well as an assessment of the value of the program as
a training program.
``(B) Not later than 18 months after the date on which the initial
report under subparagraph (A) is submitted, the Secretary shall submit
to Congress a final report on the pilot project. The final report shall
include recommendations of the Secretary with respect to continuation
of the pilot project and with respect to expansion of the types of
claims for which the extended period of on the job training is
available to train such employees.''.
SEC. 109. COLLECTION OF PAYMENT FOR EDUCATIONAL ASSISTANCE UNDER
MONTGOMERY GI BILL FROM MEMBERS OF THE SELECTED RESERVE CALLED TO
ACTIVE DUTY.
(a) Active Duty Program.--Section 3011(b) is amended--
(1) by striking ``The basic pay'' and inserting ``(1) Except as
provided in paragraph (2), the basic pay'';
(2) by designating the second sentence as paragraph (3) and in
that paragraph by striking ``this chapter'' and inserting ``this
subsection''; and
(3) by inserting after paragraph (1), as so designated, the
following new paragraph:
``(2) In the case of an individual covered by paragraph (1) who is
a member of the Selected Reserve, the Secretary of Defense shall
collect from the individual an amount equal to $1,200 not later than
one year after completion by the individual of the two years of service
on active duty providing the basis for such entitlement. The Secretary
of Defense may collect such amount through reductions in basic pay in
accordance with paragraph (1) or through such other method as the
Secretary of Defense considers appropriate.''.
(b) Selected Reserve Program.--Section 3012(c) is amended--
(1) by striking ``The basic pay'' and inserting ``(1) Except as
provided in paragraph (2), the basic pay'';
(2) by designating the second sentence as paragraph (3) and in
that paragraph by striking ``this chapter'' and inserting ``this
subsection''; and
(3) by inserting after paragraph (1), as so designated, the
following new paragraph:
``(2) In the case of an individual covered by paragraph (1) who is
a member of the Selected Reserve, the Secretary of Defense shall
collect from the individual an amount equal to $1,200 not later than
one year after completion by the individual of the two years of service
on active duty providing the basis for such entitlement. The Secretary
of Defense may collect such amount through reductions in basic pay in
accordance with paragraph (1) or through such other method as the
Secretary of Defense considers appropriate.''.
SEC. 110. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Definition of Training Establishment.--Section 3452(e), as
amended by section 301 of the Veterans Benefits Act of 2003 (Public Law
108-183; 117 Stat. 2658), is amended in paragraph (5) to read as
follows:
``(5) The sponsor of a program of apprenticeship.''.
(b) Clarification of Applicable Apprenticeship Standards.--(1)
Section 3672(c), as amended by section 105(a), is amended in
subparagraph (A) by inserting ``apprenticeship'' before ``standards''.
(2) Section 3672(d)(1) is amended by striking ``of programs of
training on the job (including programs of apprenticeship)'' and
inserting ``of apprenticeship and on the job training programs''.
(c) Record-Keeping Requirements for Qualified Providers of
Entrepreneurship Courses.--(1) Section 3675(c) is amended by adding at
the end the following new paragraph:
``(4) Notwithstanding paragraph (3), a qualified provider of
entrepreneurship courses shall maintain such records as the Secretary
determines to be necessary to comply with reporting requirements that
apply under section 3684(a)(1) of this title with respect to eligible
persons and veterans enrolled in an entrepreneurship course offered by
the provider.''.
(2) The amendment made by paragraph (1) shall take effect as if
included in the enactment of section 305(a) of the Veterans Benefits
Act of 2003 (Public Law 108-183; 117 Stat. 2660).
(d) Authority To Pay Reporting Fee.--Section 3684(c) is amended by
striking ``or to any joint apprenticeship training committee acting as
a training establishment'' and inserting ``or to the sponsor of a
program of apprenticeship''.
TITLE II--EMPLOYMENT MATTERS
Subtitle A--Employment and Reemployment Rights
SEC. 201. TWO-YEAR PERIOD OF CONTINUATION OF EMPLOYER-SPONSORED
HEALTH CARE COVERAGE.
(a) Improvement in Period of Coverage.--Subsection (a)(1)(A) of
section 4317 is amended by striking ``18-month period'' and inserting
``24-month period''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to elections made under section 4317 of title 38, United States
Code, on or after the date of the enactment of this Act.
SEC. 202. REINSTATEMENT OF REPORTING REQUIREMENTS.
Section 4332 is amended in the matter preceding paragraph (1) by
striking ``no later than February 1, 1996, and annually thereafter
through 2000'' and inserting ``no later than February 1, 2005, and
annually thereafter''.
SEC. 203. REQUIREMENT FOR EMPLOYERS TO PROVIDE NOTICE OF RIGHTS AND
DUTIES UNDER USERRA.
(a) Notice.--Chapter 43 is amended by adding at the end the
following new section:
``Sec. 4334. Notice of rights and duties
``(a) Requirement To Provide Notice.--Each employer shall provide
to persons entitled to rights and benefits under this chapter a notice
of the rights, benefits, and obligations of such persons and such
employers under this chapter. The requirement for the provision of
notice under this section may be met by the posting of the notice where
employers customarily place notices for employees.
``(b) Content of Notice.--The Secretary shall provide to employers
the text of the notice to be provided under this section.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:
``4334. Notice of rights and duties.''.
(c) Implementation.--(1) Not later than the date that is 90 days
after the date of the enactment of this Act, the Secretary of Labor
shall make available to employers the notice required under section
4334 of title 38, United States Code, as added by subsection (a).
(2) The amendments made by this section shall apply to employers
under chapter 43 of title 38, United States Code, on and after the
first date referred to in paragraph (1).
SEC. 204. DEMONSTRATION PROJECT FOR REFERRAL OF USERRA CLAIMS
AGAINST FEDERAL AGENCIES TO THE OFFICE OF SPECIAL COUNSEL.
(a) Establishment of Project.--The Secretary of Labor and the
Office of Special Counsel shall carry out a demonstration project under
which certain claims against Federal executive agencies under the
Uniformed Services Employment and Reemployment Rights Act under chapter
43 of title 38, United States Code, are referred to, or otherwise
received by, the Office of Special Counsel for assistance, including
investigation and resolution of the claim as well as enforcement of
rights with respect to the claim.
(b) Referral of All Prohibited Personnel Action Claims to the
Office of Special Counsel.--(1) Under the demonstration project, the
Office of Special Counsel shall receive and investigate all claims
under the Uniformed Services Employment and Reemployment Rights Act
with respect to Federal executive agencies in cases where the Office of
Special Counsel has jurisdiction over related claims pursuant to
section 1212 of title 5, United States Code.
(2) For purposes of paragraph (1), a related claim is a claim
involving the same Federal executive agency and the same or similar
factual allegations or legal issues as those being pursued under a
claim under the Uniformed Services Employment and Reemployment Rights
Act.
(c) Referral of Other Claims Against Federal Executive Agencies.--
(1) Under the demonstration project, the Secretary--
(A) shall refer to the Office of Special Counsel all claims
described in paragraph (2) made during the period of the
demonstration project; and
(B) may refer any claim described in paragraph (2) filed before
the demonstration project that is pending before the Secretary at
the beginning of the demonstration project.
(2) A claim referred to in paragraph (1) is a claim under chapter
43 of title 38, United States Code, against a Federal executive agency
by a claimant with a social security account number with an odd number
as its terminal digit, or, in the case of a claim that does not contain
a social security account number, a case number assigned to the claim
with an odd number as its terminal digit.
(d) Administration of Demonstration Project.--(1) The Office of
Special Counsel shall administer the demonstration project. The
Secretary shall cooperate with the Office of Special Counsel in
carrying out the demonstration project.
(2) In the case of any claim referred, or otherwise received by, to
the Office of Special Counsel under the demonstration project, any
reference to the ``Secretary'' in sections 4321, 4322, and 4326 of
title 38, United States Code, is deemed a reference to the ``Office of
Special Counsel''.
(3) In the case of any claim referred to, or otherwise received by,
the Office of Special Counsel under the demonstration project, the
Office of Special Counsel shall retain administrative jurisdiction over
the claim.
(e) Period of Project.--The demonstration project shall be carried
out during the period beginning on the date that is 60 days after the
date of the enactment of this Act, and ending on September 30, 2007.
(f) Evaluations and Report.--(1) The Comptroller General of the
United States shall conduct periodic evaluations of the demonstration
project under this section.
(2) Not later than April 1, 2007, the Comptroller General shall
submit to Congress a report on the evaluations conducted under
paragraph (1). The report shall include the following information and
recommendations:
(A) A description of the operation and results of the
demonstration program, including--
(i) the number of claims described in subsection (c)
referred to, or otherwise received by, the Office of Special
Counsel, and the number of such claims referred to the
Secretary of Labor; and
(ii) for each Federal executive agency, the number of
claims resolved, the type of corrective action obtained, the
period of time for final resolution of the claim, and the
results obtained.
(B) An assessment of whether referral to the office of special
counsel of claims under the demonstration project--
(i) improved services to servicemembers and veterans; or
(ii) significantly reduced or eliminated duplication of
effort and unintended delays in resolving meritorious claims of
those servicemembers and veterans.
(C) An assessment of the feasibility and advisability of
referring all claims under chapter 43 of title 38, United States
Code, against Federal executive agencies to the Office of Special
Counsel for investigation and resolution.
(D) Such other recommendations for administrative action or
legislation as the Comptroller General determines appropriate.
(g) Definitions.--In this section:
(1) The term ``Office of Special Counsel'' means the Office of
Special Counsel established by section 1211 of title 5, United
States Code.
(2) The term ``Secretary'' means the Secretary of Labor.
(3) The term ``Federal executive agency'' has the meaning given
that term in section 4303(5) of title 38, United States Code.
Subtitle B--Other Matters
SEC. 211. REPORT OF EMPLOYMENT PLACEMENT, RETENTION, AND
ADVANCEMENT OF RECENTLY SEPARATED SERVICEMEMBERS.
(a) Contract for Report.--Not later than 180 days after the date of
the enactment of this Act, the Secretary of Veterans Affairs shall
enter into a contract with a qualified entity to conduct a study of and
prepare a report on the employment histories of recently separated
servicemembers.
(b) Content of Report.--(1) The study conducted pursuant to
subsection (a) shall consist of an analysis of employment-related data
that have been collected with respect to recently separated
servicemembers.
(2) In conducting the study, the qualified entity shall--
(A) determine whether the employment obtained by recently
separated servicemembers is commensurate with training and
education of those servicemembers;
(B) determine whether recently separated servicemembers
received educational assistance or training and rehabilitation
under programs administered by the Secretary of Veterans Affairs
under chapter 30 or 31 of title 38, United States Code, or under
chapter 1606 of title 10, United States Code;
(C) determine whether transition assistance services provided
to recently separated servicemembers assisted those servicemembers
in obtaining civilian employment;
(D) analyze trends in hiring of veterans by the private sector;
and
(E) identify recently separated servicemembers who have reached
senior level management positions.
(c) Use of Data.--In conducting the study under subsection (a), the
qualified entity shall review data compiled and reported by the Bureau
of Labor Statistics and shall collect additional data on the employment
histories of recently separated servicemembers available from such
other sources as the qualified entity determines to be appropriate.
(d) Contract Requirements.--(1) The contract entered into under
subsection (a) shall contain such terms and conditions as the Secretary
may require. The contract shall require that the report on the study be
submitted to the Secretary not later than 2 years after the date on
which the contract was entered into.
(2) The report required under subsection (a) shall contain the
findings and conclusions of the qualified entity on the study and
specific recommendations to improve employment opportunities for
veterans recently separated from service in the Armed Forces,
including, if appropriate, recommendations for--
(A) the establishment of networks of contacts for employment of
such veterans in the private sector;
(B) outreach to private sector leaders on the merits and sound
business practice of hiring such veterans; and
(C) additional methods to facilitate communication between
private sector employers and such veterans who are seeking
employment.
(e) Funding.--Payment by the Secretary for the contract entered
into under subsection (a)--
(1) shall be made from the Department of Veterans Affairs
appropriations account from which payments for readjustment
benefits are made; and
(2) may not exceed $490,000.
(f) Definitions.--In this section:
(1) The term ``qualified entity'' means an entity or
organization that meets the following requirements:
(A) Demonstrated experience in conducting employment
surveys of recently separated servicemembers, including
Internet-based surveys, that meet such quality assurance
requirements as the Secretary determines appropriate.
(B) Demonstrated familiarity with veteran employment
matters.
(C) Demonstrated ability in developing plans to market
veterans as employment assets.
(D) Demonstrated ability to acquire services at no cost
from other organizations, such as technology, staff services,
and advertising services.
(E) Demonstrated ability to develop relationships,
establish employment networks, and facilitate interaction
between private and public sector leaders and veterans.
(2) The term ``employment history'' means, with respect to a
recently separated servicemember, training, placement, retention,
and advancement in employment of that servicemember.
(3) The term ``recently separated servicemember'' means any
veteran (as defined in section 101(2) of title 38, United States
Code) discharged or released from active duty in the Armed Forces
of the United States during the 16-year period beginning on January
1, 1990.
TITLE III--BENEFITS MATTERS
SEC. 301. ADDITIONAL DEPENDENCY AND INDEMNITY COMPENSATION FOR
SURVIVING SPOUSES WITH DEPENDENT CHILDREN.
(a) Additional Dependency and Indemnity Compensation.--Section 1311
is amended by adding at the end the following new subsection:
``(e)(1) Subject to paragraphs (2) and (3), if there is a surviving
spouse with one or more children below the age of 18, the dependency
and indemnity compensation paid monthly to the surviving spouse shall
be increased by $250, regardless of the number of such children.
``(2) Dependency and indemnity compensation shall be increased
under this subsection only for months occurring during the two-year
period beginning on the date on which entitlement to dependency and
indemnity compensation commenced.
``(3) The increase in dependency and indemnity compensation of a
surviving spouse under this subsection shall cease beginning with the
first month commencing after the month in which all children of the
surviving spouse have attained the age of 18.
``(4) Dependency and indemnity compensation under this subsection
is in addition to any other dependency and indemnity compensation
payable under this chapter.''.
(b) Effective Date.--Subsection (e) of section 1311 of title 38,
United States Code, as added by subsection (a), shall take effect with
respect to payments for the first month beginning after the date of the
enactment of this Act.
SEC. 302. OFFSET OF VETERANS' DISABILITY COMPENSATION AND
DEPENDENCY AND INDEMNITY COMPENSATION FROM AWARDS UNDER RADIATION
EXPOSURE COMPENSATION PROGRAM.
(a) Offset in Lieu of Forfeiture From Disability Compensation.--
Subsection (c) of section 1112 is amended by adding at the end the
following new paragraph:
``(4) A radiation-exposed veteran who receives a payment under the
provisions of the Radiation Exposure Compensation Act of 1990 (42
U.S.C. 2210 note) shall not be deprived, by reason of the receipt of
that payment, of receipt of compensation to which that veteran is
entitled by reason of paragraph (1), but there shall be deducted from
payment of such compensation the amount of the payment under that
Act.''.
(b) Offset in Lieu of Forfeiture From Dependency and Indemnity
Compensation.--Section 1310 is amended by adding at the end the
following new paragraph:
``(c) A person who receives a payment under the provisions of the
Radiation Exposure Compensation Act of 1990 (42 U.S.C. 2210 note) shall
not be deprived, by reason of the receipt of that payment, of receipt
of dependency and indemnity compensation to which that person is
otherwise entitled, but there shall be deducted from payment of such
dependency and indemnity compensation the amount of the payment under
that Act.''.
(c) Effective Date.--Paragraph (4) of section 1112(c) of title 38,
United States Code, as added by subsection (a), shall take effect with
respect to compensation payments for months beginning after March 26,
2002. Subsection (c) of section 1310 of such title, as added by
subsection (b), shall take effect with respect to dependency and
indemnity compensation payments for months beginning after March 26,
2002.
SEC. 303. EXCLUSION OF LIFE INSURANCE PROCEEDS FROM CONSIDERATION
AS INCOME FOR VETERANS' PENSION PURPOSES.
Section 1503(a) is amended--
(1) by striking ``and'' at the end of paragraph (9);
(2) by striking the period at the end of the paragraph (10) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(11) lump-sum proceeds of any life insurance policy on a
veteran, for purposes of pension under subchapter III of this
chapter.''.
SEC. 304. CERTAIN SERVICE-CONNECTED DISABILITY BENEFITS AUTHORIZED
FOR PERSONS DISABLED BY TREATMENT OR VOCATIONAL REHABILITATION
PROVIDED BY THE DEPARTMENT OF VETERANS AFFAIRS.
(a) Authorized Benefits.--Section 1151 is amended by adding at the
end the following new subsection:
``(c) A qualifying additional disability under this section shall
be treated in the same manner as if it were a service-connected
disability for purposes of the following provisions of this title:
``(1) Chapter 21, relating to specially adapted housing.
``(2) Chapter 39, relating to automobiles and adaptive
equipment.''.
(b) Effective Date.--Subsection (c) of section 1151 of title 38,
United States Code, as added by subsection (a), shall apply with
respect to eligibility for benefits and services provided by the
Secretary of Veterans Affairs on or after the date of the enactment of
this Act.
(c) Administration of Offset Provision.--Subsection (b) of section
1151 is amended--
(1) by inserting ``(1)'' after ``(b)'';
(2) by inserting ``(except as otherwise provided in paragraph
(2))'' after ``service-connected, then''; and
(3) by adding at the end the following new paragraph:
``(2) In the case of a judgment, settlement, or compromise covered
by paragraph (1) that becomes final on or after the date of the
enactment of this paragraph and that includes an amount that is
specifically designated for a purpose for which benefits are provided
under chapter 21 or 39 of this title (hereinafter in this paragraph
referred to as the `offset amount'), if such judgment, settlement, or
compromise becomes final before the date of the award of benefits under
chapter 21 or 39 for the purpose for which the offset amount was
specifically designated--
``(A) the amount of such award shall be reduced by the offset
amount; and
``(B) if the offset amount is greater than the amount of such
award, the excess amount received pursuant to the judgment,
settlement or compromise, shall be offset against benefits
otherwise payable under this chapter.''.
SEC. 305. EFFECTIVE DATE OF DEATH PENSION.
Section 5110(d) is amended--
(1) by striking ``(1)'';
(2) by striking ``death compensation or dependency and
indemnity compensation'' and inserting ``death compensation,
dependency and indemnity compensation, or death pension''; and
(3) by striking paragraph (2).
SEC. 306. CODIFICATION OF ADMINISTRATIVE ACTIONS RELATING TO
PRESUMPTIONS OF SERVICE CONNECTION FOR VETERANS EXPOSED TO
IONIZING RADIATION.
(a) Covered Diseases.--Subsection (c)(2) of section 1112 is amended
by adding at the end the following new subparagraphs:
``(Q) Cancer of the bone.
``(R) Cancer of the brain.
``(S) Cancer of the colon.
``(T) Cancer of the lung.
``(U) Cancer of the ovary.''.
(b) Covered Radiation-Risk Activities.--Subsection (c)(3)(B) of
such section is amended by adding at the end the following new clause:
``(iv) Service in a capacity which, if performed as an
employee of the Department of Energy, would qualify the
individual for inclusion as a member of the Special Exposure
Cohort under section 3621(14) of the Energy Employees
Occupational Illness Compensation Program Act of 2000 (42
U.S.C. 7384l(14)).''.
(c) Effective Date.--The amendments made by this section shall take
effect as of March 26, 2002.
SEC. 307. CODIFICATION OF COST-OF-LIVING ADJUSTMENT PROVIDED IN
PUBLIC LAW 108-47.
(a) Veterans' Disability Compensation.--Section 1114 is amended--
(1) by striking ``$104'' in subsection (a) and inserting
``$106'';
(2) by striking ``$201'' in subsection (b) and inserting
``$205'';
(3) by striking ``$310'' in subsection (c) and inserting
``$316'';
(4) by striking ``$445'' in subsection (d) and inserting
``$454'';
(5) by striking ``$633'' in subsection (e) and inserting
``$646'';
(6) by striking ``$801'' in subsection (f) and inserting
``$817'';
(7) by striking ``$1,008'' in subsection (g) and inserting
``$1,029'';
(8) by striking ``$1,171'' in subsection (h) and inserting
``$1,195'';
(9) by striking ``$1,317'' in subsection (i) and inserting
``$1,344'';
(10) by striking ``$2,193'' in subsection (j) and inserting
``$2,239'';
(11) in subsection (k)--
(A) by striking ``$81'' both places it appears and
inserting ``$82''; and
(B) by striking ``$2,728'' and ``$3,827'' and inserting
``$2,785'' and ``$3,907'', respectively;
(12) by striking ``$2,728'' in subsection (l) and inserting
``$2,785'';
(13) by striking ``$3,010'' in subsection (m) and inserting
``$3,073'';
(14) by striking ``$3,425'' in subsection (n) and inserting
``$3,496'';
(15) by striking ``$3,827'' each place it appears in
subsections (o) and (p) and inserting ``$3,907'';
(16) by striking ``$1,643'' and ``$2,446'' in subsection (r)
and inserting ``$1,677'' and ``$2,497'', respectively; and
(17) by striking ``$2,455'' in subsection (s) and inserting
``$2,506''.
(b) Additional Compensation for Dependents.--Section 1115(1) is
amended--
(1) by striking ``$125'' in subparagraph (A) and inserting
``$127'';
(2) by striking ``$215'' and ``$64'' in subparagraph (B) and
inserting ``$219'' and ``$65'', respectively;
(3) by striking ``$85'' and ``$64'' in subparagraph (C) and
inserting ``$86'' and ``$65'', respectively;
(4) by striking ``$101'' in subparagraph (D) and inserting
``$103'';
(5) by striking ``$237'' in subparagraph (E) and inserting
``$241''; and
(6) by striking ``$198'' in subparagraph (F) and inserting
``$202''.
(c) Clothing Allowance for Certain Disabled Veterans.--Section 1162
is amended by striking ``$588'' and inserting ``$600''.
(d) Dependency and Indemnity Compensation for Surviving Spouses.--
(1) Section 1311(a) is amended--
(A) by striking ``$948'' in paragraph (1) and inserting
``$967''; and
(B) by striking ``$204'' in paragraph (2) and inserting
``$208''.
(2) The table in section 1311(a)(3) is amended to read as follows:
Monthly Monthly
Pay grade rate Pay grade rate
E-1..................................... $967 ...................... W-4...................... $1,157
E-2.................................... $967 ...................... O-1....................... $1,022
E-3.................................... $967 ...................... O-2...................... $1,056
E-4.................................... $967 ...................... O-3...................... $1,130
E-5..................................... $967 ...................... O-4...................... $1,195
E-6.................................... $967 ...................... O-5...................... $1,316
E-7.................................... $1,000 ...................... O-6...................... $1,483
E-8..................................... $1,056 ...................... O-7....................... $1,602
E-9.................................... $1,1021 ...................... O-8....................... $1,758
W-1..................................... $1,022 ...................... O-9...................... $1,881
W-2..................................... $1,063 ...................... O-10...................... $2,0632
W-3..................................... $1,094 ...................... .......................... ........
1 If the veteran served as sergeant major of the Army, senior enlisted advisor of the Navy, chief master
sergeant of the Air Force, sergeant major of the Marine Corps, or master chief petty officer of the Coast
Guard, at the applicable time designated by section 1302 of this title, the surviving spouse's rate shall be
$1,189.
2 If the veteran served as Chairman or Vice-Chairman of the Joint Chiefs of Staff, Chief of Staff of the Army,
Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of the Marine Corps, or Commandant of
the Coast Guard, at the applicable time designated by section 1302 of this title, the surviving spouse's rate
shall be $2,213.
(3) Section 1311(b) is amended by striking ``$237'' and
inserting ``$241''.
(4) Section 1311(c) is amended by striking ``$237'' and
inserting ``$241''.
(5) Section 1311(d) is amended by striking ``$113'' and
inserting ``$115''.
(e) Dependency and Indemnity Compensation for Children.--(1)
Section 1313(a) is amended--
(A) by striking ``$402'' in paragraph (1) and inserting
``$410'';
(B) by striking ``$578'' in paragraph (2) and inserting
``$590'';
(C) by striking ``$752'' in paragraph (3) and inserting
``$767''; and
(D) by striking ``$752'' and ``$145'' in paragraph (4) and
inserting ``$767'' and ``$148'', respectively.
(2) Section 1314 is amended--
(A) by striking ``$237'' in subsection (a) and inserting
``$241'';
(B) by striking ``$402'' in subsection (b) and inserting
``$410''; and
(C) by striking ``$201'' in subsection (c) and inserting
``$205''.
SEC. 308. CROSS-REFERENCE AMENDMENTS RELATING TO CONCURRENT PAYMENT
OF RETIRED PAY AND VETERANS' DISABILITY COMPENSATION.
(a) Prohibition Against Duplication of Benefits.--Section
5304(a)(1) is amended by inserting ``as provided in section 1414 of
title 10 or'' after ``Except''.
(b) Waiver of Retired Pay.--Section 5305 is amended by striking
``Any'' in the first sentence and inserting ``Except as provided in
section 1414 of title 10, any''.
TITLE IV--HOUSING MATTERS
SEC. 401. AUTHORITY TO PROVIDE SPECIALLY ADAPTED HOUSING TO CERTAIN
DISABLED VETERANS.
The text of section 2101 is amended to read as follows:
``(a) Acquisition of Housing With Special Features.--(1) Subject to
paragraph (3), the Secretary may assist a disabled veteran described in
paragraph (2) in acquiring a suitable housing unit with special
fixtures or movable facilities made necessary by the nature of the
veteran's disability, and necessary land therefor.
``(2) A veteran is described in this paragraph if the veteran is
entitled to compensation under chapter 11 of this title for a permanent
and total service-connected disability that meets any of the following
criteria:
``(A) The disability is due to the loss, or loss of use, of
both lower extremities such as to preclude locomotion without the
aid of braces, crutches, canes, or a wheelchair.
``(B) The disability is due to--
``(i) blindness in both eyes, having only light perception,
plus
``(ii) loss or loss of use of one lower extremity.
``(C) The disability is due to the loss or loss of use of one
lower extremity together with--
``(i) residuals of organic disease or injury; or
``(ii) the loss or loss of use of one upper extremity,
which so affect the functions of balance or propulsion as to
preclude locomotion without the aid of braces, crutches, canes, or
a wheelchair.
``(D) The disability is due to the loss, or loss of use, of
both upper extremities such as to preclude use of the arms at or
above the elbows.
``(3) The regulations prescribed under subsection (c) shall require
that assistance under paragraph (1) may be provided to a veteran only
if the Secretary finds that--
``(A) it is medically feasible for the veteran to reside in the
proposed housing unit and in the proposed locality;
``(B) the proposed housing unit bears a proper relation to the
veteran's present and anticipated income and expenses; and
``(C) the nature and condition of the proposed housing unit are
such as to be suitable to the veteran's needs for dwelling
purposes.
``(b) Adaptations to Residence of Veteran.--(1) Subject to
paragraph (3), the Secretary shall assist any disabled veteran
described in paragraph (2) (other than a veteran who is eligible for
assistance under subsection (a))--
``(A) in acquiring such adaptations to such veteran's residence
as are determined by the Secretary to be reasonably necessary
because of such disability; or
``(B) in acquiring a residence already adapted with special
features determined by the Secretary to be reasonably necessary for
the veteran because of such disability.
``(2) A veteran is described in this paragraph if the veteran is
entitled to compensation under chapter 11 of this title for a permanent
and total service-connected disability that meets either of the
following criteria:
``(A) The disability is due to blindness in both eyes with 5/
200 visual acuity or less.
``(B) The disability includes the anatomical loss or loss of
use of both hands.
``(3) Assistance under paragraph (1) may be provided only to a
veteran who the Secretary determines--
``(A) is residing in and reasonably intends to continue
residing in a residence owned by such veteran or by a member of
such veteran's family; or
``(B) if the veteran's residence is to be constructed or
purchased, will be residing in and reasonably intends to continue
residing in a residence owned by such veteran or by a member of
such veteran's family.
``(c) Regulations.--Assistance under this section shall be provided
in accordance with such regulations as the Secretary may prescribe.''.
SEC. 402. TRANSITIONAL HOUSING AMENDMENTS.
(a) Use of Veteran Volunteers.--Section 2051 is amended by adding
at the end the following new subsection:
``(g) Notwithstanding any other provision of law, a multifamily
transitional housing project that is funded by a loan guaranteed under
this subchapter may accept uncompensated voluntary services performed
by any eligible entity (as that term is defined in section 2011(d) of
this title) in connection with the construction, alteration, or repair
of such project.''.
(b) Authorization for Commercially-Leased Space.--Section
2052(c)(1) is amended by striking ``services'' and inserting
``services, other commercial activities,''.
SEC. 403. INCREASE IN MAXIMUM AMOUNT OF HOME LOAN GUARANTY FOR
CONSTRUCTION AND PURCHASE OF HOMES AND ANNUAL INDEXING OF AMOUNT.
(a) Maximum Loan Guaranty Based on 100 Percent of Freddie Mac
Conforming Loan Rate.--Section 3703(a)(1) is amended by striking
``$60,000'' each place it appears in subparagraphs (A)(i)(IV) and (B)
and inserting ``the maximum guaranty amount (as defined in subparagraph
(C))''.
(b) Definition.--Such section is further amended by adding at the
end the following new subparagraph:
``(C) In this paragraph, the term `maximum guaranty amount' means
the dollar amount that is equal to 25 percent of the Freddie Mac
conforming loan limit limitation determined under section 305(a)(2) of
the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2))
for a single-family residence, as adjusted for the year involved.''.
SEC. 404. EXTENSION OF AUTHORITY FOR GUARANTEE OF ADJUSTABLE RATE
MORTGAGES.
Section 3707(a) is amended by striking ``during fiscal years 1993,
1994, and 1995'' and inserting ``during fiscal years 1993 through
2008''.
SEC. 405. EXTENSION AND IMPROVEMENT OF AUTHORITY FOR GUARANTEE OF
HYBRID ADJUSTABLE RATE MORTGAGES.
(a) Extension of Authority.--Subsection (a) of section 3707A is
amended by striking ``during fiscal years 2004 and 2005'' and inserting
``during fiscal years 2004 through 2008''.
(b) Modification of Interest Rate Adjustment Requirements.--
Subsection (c) of such section is amended--
(1) by redesignating paragraph (4) as paragraph (5);
(2) by striking paragraph (3) and inserting the following new
paragraphs:
``(3) in the case of the initial contract interest rate
adjustment--
``(A) if the initial contract interest rate remained fixed
for less than 5 years, be limited to a maximum increase or
decrease of 1 percentage point; or
``(B) if the initial contract interest rate remained fixed
for 5 years or more, be limited to a maximum increase or
decrease of such percentage point or points as the Secretary
may prescribe;
``(4) in the case of any single annual interest rate adjustment
after the initial contract interest rate adjustment, be limited to
a maximum increase or decrease of 1 percentage point; and''; and
(3) in paragraph (5), as so redesignated, by striking ``5
percentage points'' and all that follows and inserting ``such
number of percentage points as the Secretary shall prescribe for
purposes of this section.''.
(c) No Effect on Guarantee of Loans Under Hybrid Adjustable Rate
Mortgage Guarantee Demonstration Project.--The amendments made by this
section shall not be construed to affect the force or validity of any
guarantee of a loan made by the Secretary of Veterans Affairs under the
demonstration project for the guarantee of hybrid adjustable rate
mortgages under section 3707A of title 38, United States Code, as in
effect on the day before the date of the enactment of this Act.
SEC. 406. TERMINATION OF COLLECTION OF LOAN FEES FROM VETERANS
RATED ELIGIBLE FOR COMPENSATION AT PRE-DISCHARGE RATING
EXAMINATIONS.
Section 3729(c) is amended--
(1) by inserting ``(1)'' before ``A fee''; and
(2) by adding at the end the following new paragraph:
``(2) A veteran who is rated eligible to receive compensation as a
result of a pre-discharge disability examination and rating shall be
treated as receiving compensation for purposes of this subsection as of
the date on which the veteran is rated eligible to receive compensation
as a result of the pre-discharge disability examination and rating
without regard to whether an effective date of the award of
compensation is established as of that date.''.
SEC. 407. THREE-YEAR EXTENSION OF NATIVE AMERICAN VETERAN HOUSING
LOAN PILOT PROGRAM.
Section 3761(c) is amended by striking ``December 31, 2005'' and
inserting ``December 31, 2008''.
TITLE V--MATTERS RELATING TO FIDUCIARIES
SEC. 501. DEFINITION OF FIDUCIARY.
(a) In General.--(1) Chapter 55 is amended by adding at the end the
following new section:
``Sec. 5506. Definition of `fiduciary'
``For purposes of this chapter and chapter 61 of this title, the
term `fiduciary' means--
``(1) a person who is a guardian, curator, conservator,
committee, or person legally vested with the responsibility or care
of a claimant (or a claimant's estate) or of a beneficiary (or a
beneficiary's estate); or
``(2) any other person having been appointed in a
representative capacity to receive money paid under any of the laws
administered by the Secretary for the use and benefit of a minor,
incompetent, or other beneficiary.''.
(2) The table of sections at the beginning of such chapter is
amended by adding at the end the following new item:
``5506. Definition of `fiduciary'.''.
(b) Conforming Amendments to Section 5502.--Section 5502 is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``other person'' and
inserting ``other fiduciary''; and
(B) in the second sentence of paragraph (2), by inserting
``for benefits under this title'' after ``in connection with
rendering fiduciary services'';
(2) in subsection (b), by striking ``guardian, curator,
conservator, or other person'' each place it appears and inserting
``fiduciary''; and
(3) in subsection (d), by striking ``guardian, curator, or
conservator'' and inserting ``fiduciary''.
(c) Conforming Amendment to Section 6101.--Section 6101(a) is
amended by striking ``guardian, curator,'' and all that follows through
``beneficiary,'' and inserting ``fiduciary (as defined in section 5506
of this title) for the benefit of a minor, incompetent, or other
beneficiary under laws administered by the Secretary,''.
SEC. 502. INQUIRY, INVESTIGATIONS, AND QUALIFICATION OF
FIDUCIARIES.
(a) In General.--Chapter 55, as amended by section 501(a)(1), is
further amended by adding at the end the following new section:
``Sec. 5507. Inquiry, investigations, and qualification of fiduciaries
``(a) Any certification of a person for payment of benefits of a
beneficiary to that person as such beneficiary's fiduciary under
section 5502 of this title shall be made on the basis of--
``(1) an inquiry or investigation by the Secretary of the
fitness of that person to serve as fiduciary for that beneficiary,
such inquiry or investigation--
``(A) to be conducted in advance of such certification;
``(B) to the extent practicable, to include a face-to-face
interview with such person; and
``(C) to the extent practicable, to include a copy of a
credit report for such person issued within one year of the
date of the proposed appointment;
``(2) adequate evidence that certification of that person as
fiduciary for that beneficiary is in the interest of such
beneficiary (as determined by the Secretary under regulations); and
``(3) the furnishing of any bond that may be required by the
Secretary.
``(b) As part of any inquiry or investigation of any person under
subsection (a), the Secretary shall request information concerning
whether that person has been convicted of any offense under Federal or
State law which resulted in imprisonment for more than one year. If
that person has been convicted of such an offense, the Secretary may
certify the person as a fiduciary only if the Secretary finds that the
person is an appropriate person to act as fiduciary for the beneficiary
concerned under the circumstances.
``(c)(1) In the case of a proposed fiduciary described in paragraph
(2), the Secretary, in conducting an inquiry or investigation under
subsection (a)(1), may carry out such inquiry or investigation on an
expedited basis that may include waiver of any specific requirement
relating to such inquiry or investigation, including the otherwise
applicable provisions of subparagraphs (A), (B), and (C) of such
subsection. Any such inquiry or investigation carried out on such an
expedited basis shall be carried out under regulations prescribed for
purposes of this section.
``(2) Paragraph (1) applies with respect to a proposed fiduciary
who is--
``(A) the parent (natural, adopted, or stepparent) of a
beneficiary who is a minor;
``(B) the spouse or parent of an incompetent beneficiary;
``(C) a person who has been appointed a fiduciary of the
beneficiary by a court of competent jurisdiction; or
``(D) being appointed to manage an estate where the annual
amount of veterans benefits to be managed by the proposed fiduciary
does not exceed $3,600, as adjusted pursuant to section 5312 of
this title.
``(d) Temporary Fiduciaries.--When in the opinion of the Secretary,
a temporary fiduciary is needed in order to protect the assets of the
beneficiary while a determination of incompetency is being made or
appealed or a fiduciary is appealing a determination of misuse, the
Secretary may appoint one or more temporary fiduciaries for a period
not to exceed 120 days. If a final decision has not been made within
120 days, the Secretary may not continue the appointment of the
fiduciary without obtaining a court order for appointment of a
guardian, conservator, or other fiduciary under the authority provided
in section 5502(b) of this title.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding after the item added by section
501(a)(2) the following new item:
``5507. Inquiry, investigations, and qualification of fiduciaries.''.
SEC. 503. MISUSE OF BENEFITS BY FIDUCIARIES.
(a) Protection of Veterans Benefits When Administered by
Fiduciaries.--(1) Chapter 61 is amended by adding at the end the
following new sections:
``Sec. 6106. Misuse of benefits by fiduciaries
``(a) Fee Forfeiture in Case of Benefit Misuse by Fiduciaries.--A
fiduciary may not collect a fee from a beneficiary for any month with
respect to which the Secretary or a court of competent jurisdiction has
determined that the fiduciary misused all or part of the individual's
benefit, and any amount so collected by the fiduciary as a fee for such
month shall be treated as a misused part of the individual's benefit.
``(b) Misuse of Benefits Defined.--For purposes of this chapter,
misuse of benefits by a fiduciary occurs in any case in which the
fiduciary receives payment, under any of laws administered by the
Secretary, for the use and benefit of a beneficiary and uses such
payment, or any part thereof, for a use other than for the use and
benefit of such beneficiary or that beneficiary's dependents. Retention
by a fiduciary of an amount of a benefit payment as a fiduciary fee or
commission, or as attorney's fees (including expenses) and court costs,
if authorized by the Secretary or a court of competent jurisdiction,
shall be considered to be for the use or benefit of such beneficiary.
``(c) Regulations.--The Secretary may prescribe by regulation the
meaning of the term `use and benefit' for purposes of this section.
``Sec. 6107. Reissuance of benefits
``(a) Negligent Failure by Secretary.--(1) In any case in which the
negligent failure of the Secretary to investigate or monitor a
fiduciary results in misuse of benefits by the fiduciary, the Secretary
shall pay to the beneficiary or the beneficiary's successor fiduciary
an amount equal to the amount of benefits that were so misused.
``(2) There shall be considered to have been a negligent failure by
the Secretary to investigate and monitor a fiduciary in the following
cases:
``(A) A case in which the Secretary failed to review a
fiduciary's accounting within 60 days of the date on which that
accounting is scheduled for review.
``(B) A case in which the Secretary was notified of allegations
of misuse, but failed to act within 60 days of the date of such
notification to terminate the fiduciary.
``(C) In any other case in which actual negligence is shown.
``(b) Reissuance of Misused Benefits in Other Cases.--(1) In any
case in which a fiduciary described in paragraph (2) misuses all or
part of an individual's benefit paid to such fiduciary, the Secretary
shall pay to the beneficiary or the beneficiary's successor fiduciary
an amount equal to the amount of such benefit so misused.
``(2) Paragraph (1) applies to a fiduciary that--
``(A) is not an individual; or
``(B) is an individual who, for any month during a period when
misuse occurs, serves 10 or more individuals who are beneficiaries
under this title.
``(3) In any other case in which the Secretary obtains recoupment
from a fiduciary who has misused benefits, the Secretary shall promptly
remit payment of the recouped amounts to the beneficiary or the
beneficiary's successor fiduciary as the case may be.
``(c) Limitation on Total Amount Paid.--The total of the amounts
paid to a beneficiary (or a beneficiary's successor fiduciary) under
this section may not exceed the total benefit amount misused by the
fiduciary with respect to that beneficiary.
``(d) Recoupment of Amounts Reissued.--In any case in which the
Secretary reissues a benefit payment (in whole or in part) under
subsection (a) or (b), the Secretary shall make a good faith effort to
obtain recoupment from the fiduciary to whom the payment was originally
made.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new items:
``6106. Misuse of benefits by fiduciaries.
``6107. Reissuance of benefits.''.
SEC. 504. ADDITIONAL PROTECTIONS FOR BENEFICIARIES WITH
FIDUCIARIES.
(a) Onsite Reviews and Required Accountings.--(1) Chapter 55, as
amended by section 502(a), is further amended by adding at the end the
following new sections:
``Sec. 5508. Periodic onsite reviews of institutional fiduciaries
``In addition to such other reviews of fiduciaries as the Secretary
may otherwise conduct, the Secretary shall provide for the periodic
onsite review of any person or agency located in the United States that
receives the benefits payable under laws administered by the Secretary
to another individual pursuant to the appointment of such person or
agency as a fiduciary under section 5502(a)(1) of this title in any
case in which the fiduciary is serving in that capacity with respect to
more than 20 beneficiaries and the total annual amount of such benefits
exceeds $50,000, as adjusted pursuant to section 5312 of this title.
``Sec. 5509. Authority to require fiduciary to receive payments at
regional offices of the Department when failing to provide
required accounting
``(a) Required Reports and Accountings.--The Secretary may require
a fiduciary to file a report or accounting pursuant to regulations
prescribed by the Secretary.
``(b) Actions Upon Failure To File.--In any case in which a
fiduciary fails to submit a report or accounting required by the
Secretary under subsection (a), the Secretary may, after furnishing
notice to such fiduciary and the beneficiary entitled to such payment
of benefits, require that such fiduciary appear in person at a regional
office of the Department serving the area in which the beneficiary
resides in order to receive such payments.''.
(2) The table of sections at the beginning of such chapter is
amended by adding after the item added by section 502(b) the following
new items:
``5508. Periodic onsite reviews of institutional fiduciaries.
``5509. Authority to require fiduciary to receive payments at regional
offices of the Department when failing to provide required
accounting.''.
(b) Judicial Orders of Restitution.--(1) Chapter 61, as amended by
section 503(a), is further amended by adding at the end the following
new section:
``Sec. 6108. Authority for judicial orders of restitution
``(a) Any Federal court, when sentencing a defendant convicted of
an offense arising from the misuse of benefits under this title, may
order, in addition to or in lieu of any other penalty authorized by
law, that the defendant make restitution to the Department.
``(b) Sections 3612, 3663, and 3664 of title 18 shall apply with
respect to the issuance and enforcement of orders of restitution under
subsection (a). In so applying those sections, the Department shall be
considered the victim.
``(c) If the court does not order restitution, or orders only
partial restitution, under subsection (a), the court shall state on the
record the reasons therefor.
``(d) Amounts received in connection with misuse by a fiduciary of
funds paid as benefits under laws administered by the Secretary shall
be paid to the individual whose benefits were misused. If the Secretary
has previously reissued the misused benefits, the amounts shall be
treated in the same manner as overpayments recouped by the Secretary
and shall be deposited to the credit of the applicable revolving fund,
trust fund, or appropriation.''.
(2) The table of sections at the beginning of such chapter is
amended by adding after the item added by section 503(b) the following
new item:
``6108. Authority for judicial orders of restitution.''.
SEC. 505. ANNUAL REPORT.
(a) In General.--Chapter 55, as amended by section 504(a)(1), is
further amended by adding at the end the following new section:
``Sec. 5510. Annual report
``The Secretary shall include in the Annual Benefits Report of the
Veterans Benefits Administration or the Secretary's Annual Performance
and Accountability Report information concerning fiduciaries who have
been appointed to receive payments for beneficiaries of the Department.
As part of such information, the
Secretary shall separately set forth the following: --
``(1) The number of beneficiaries in each category (veteran,
surviving spouse, child, adult disabled child, or parent).
``(2) The types of benefit being paid (compensation, pension,
dependency and indemnity compensation, death pension or benefits
payable to a disabled child under chapter 18 of this title).
``(3) The total annual amounts and average annual amounts of
benefits paid to fiduciaries for each category and type of benefit.
``(4) The number of fiduciaries who are the spouse, parent,
legal custodian, court-appointed fiduciary, institutional
fiduciary, custodian in fact, and supervised direct payees.
``(5) The number of cases in which the fiduciary was changed by
the Secretary because of a finding that benefits had been misused.
``(6) How such cases of misuse of benefits were addressed by
the Secretary.
``(7) The final disposition of such cases of misuse of
benefits, including the number and dollar amount of any benefits
reissued to beneficiaries.
``(8) The number of fiduciary cases referred to the Office of
the Inspector General and the nature of the actions taken by the
Inspector General.
``(9) The total amount of money recovered by the government in
cases arising from the misuse of benefits by a fiduciary.
``(10) Such other information as the Secretary considers
appropriate.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding after the items added by the
amendment made by section 504(a)(2) the following new item:
``5510. Annual report.''.
SEC. 506. ANNUAL ADJUSTMENT IN BENEFITS THRESHOLDS.
Section 5312(b)(1) is amended by inserting ``and the annual benefit
amount limitations under sections 5507(c)(2)(D) and 5508 of this
title,'' after ``(d)(3) of such section,''.
SEC. 507. EFFECTIVE DATES.
(a) In General.--Except as otherwise provided, this title and the
amendments made by this title shall take effect on the first day of the
seventh month beginning after the date of the enactment of this Act.
(b) Special Rules.--(1) Section 5510 of title 38, United States
Code, as added by section 505(a), shall take effect on the date of the
enactment of this Act.
(2) Sections 6106 and 6107 of title 38, United States Code, as
added by section 503(a), shall apply with respect to any determinations
by the Secretary of Veterans Affairs made after the date of the
enactment of this Act of misuse of funds by a fiduciary.
TITLE VI--MEMORIAL AFFAIRS MATTERS
SEC. 601. DESIGNATION OF PRISONER OF WAR/MISSING IN ACTION NATIONAL
MEMORIAL, RIVERSIDE NATIONAL CEMETERY, RIVERSIDE, CALIFORNIA.
(a) Designation.--The memorial to former prisoners of war and
members of the Armed Forces listed as missing in action that is under
construction at Riverside National Cemetery in Riverside, California,
is hereby designated: ``Prisoner of War/Missing in Action National
Memorial''.
(b) Effect of Designation.--Such national memorial designated by
subsection (a) is not a unit of the National Park System, and the
designation of the national memorial shall not be construed to require
Federal funds to be expended for any purpose related to the national
memorial.
SEC. 602. LEASE OF CERTAIN NATIONAL CEMETERY ADMINISTRATION
PROPERTY.
(a) In General.--Chapter 24 is amended by adding at the end the
following new section:
``Sec. 2412. Lease of land and buildings
``(a) Lease Authorized.--The Secretary may lease any undeveloped
land and unused or underutilized buildings, or parts or parcels
thereof, belonging to the United States and part of the National
Cemetery Administration.
``(b) Term.--The term of a lease under subsection (a) may not
exceed 10 years.
``(c) Lease to Public or Nonprofit Organizations.--(1) A lease
under subsection (a) to any public or nonprofit organization may be
made without regard to the provisions of section 3709 of the Revised
Statutes (41 U.S.C. 5).
``(2) Notwithstanding section 1302 of title 40 or any other
provision of law, a lease under subsection (a) to any public or
nonprofit organization may provide for the maintenance, protection, or
restoration of the leased property by the lessee, as a part or all of
the consideration for the lease.
``(d) Notice.--Before entering into a lease under subsection (a),
the Secretary shall give appropriate public notice of the intention of
the Secretary to enter into the lease in a newspaper of general
circulation in the community in which the lands or buildings concerned
are located.
``(e) National Cemetery Administration Facilities Operation Fund.--
(1) There is established on the book of the Treasury an account to be
known as the `National Cemetery Administration Facilities Operation
Fund' (in this section referred to as the `Fund').
``(2) The Fund shall consist of the following:
``(A) Proceeds from the lease of land or buildings under this
section.
``(B) Proceeds of agricultural licenses of lands of the
National Cemetery Administration.
``(C) Any other amounts appropriated to or otherwise authorized
for deposit in the Fund by law.
``(3) Amounts in the Fund shall be available to cover costs
incurred by the National Cemetery Administration in the operation and
maintenance of property of the Administration.
``(4) Amounts in the Fund shall remain available until expended.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by adding at the end the following new item:
``2412. Lease of land and buildings.''.
SEC. 603. EXCHANGES OF REAL PROPERTY FOR NATIONAL CEMETERIES.
Section 2406 is amended by inserting ``exchange,'' after
``agencies,''.
TITLE VII--IMPROVEMENTS TO SERVICEMEMBERS CIVIL RELIEF ACT
SEC. 701. CLARIFICATION OF MEANING OF ``JUDGMENT'' AS USED IN THE
ACT.
Section 101 of the Servicemembers Civil Relief Act (50 U.S.C. App.
511) is amended by adding at the end the following new paragraph:
``(9) Judgment.--The term `judgment' means any judgment,
decree, order, or ruling, final or temporary.''.
SEC. 702. REQUIREMENTS RELATING TO WAIVER OF RIGHTS UNDER THE ACT.
Section 107 of the Servicemembers Civil Relief Act (50 U.S.C. App.
517) is amended--
(1) in subsection (a), by inserting after the first sentence
the following new sentence: ``Any such waiver that applies to an
action listed in subsection (b) of this section is effective only
if it is in writing and is executed as an instrument separate from
the obligation or liability to which it applies.'';
(2) by redesignating subsection (c) as subsection (d); and
(3) by inserting after subsection (b) the following new
subsection (c):
``(c) Prominent Display of Certain Contract Rights Waivers.--Any
waiver in writing of a right or protection provided by this Act that
applies to a contract, lease, or similar legal instrument must be in at
least 12 point type.''.
SEC. 703. RIGHT OF SERVICEMEMBER PLAINTIFFS TO REQUEST STAY OF
CIVIL PROCEEDINGS.
Section 202(a) of the Servicemembers Civil Relief Act (50 U.S.C.
App. 522(a)) is amended by inserting ``plaintiff or'' before
``defendant''.
SEC. 704. TERMINATION OF LEASES.
(a) Joint Leases.--Subsection (a) of section 305 of the
Servicemembers Civil Relief Act (50 U.S.C. App. 535) is amended to read
as follows:
``(a) Termination by Lessee.--
``(1) In general.--The lessee on a lease described in
subsection (b) may, at the lessee's option, terminate the lease at
any time after--
``(A) the lessee's entry into military service; or
``(B) the date of the lessee's military orders described in
paragraph (1)(B) or (2)(B) of subsection (b), as the case may
be.
``(2) Joint leases.--A lessee's termination of a lease pursuant
to this subsection shall terminate any obligation a dependent of
the lessee may have under the lease.''.
(b) Motor Vehicles Leases.--
(1) Applicability to pcs orders from states outside conus.--
Subparagraph (B) of subsection (b)(2) of such section is amended by
striking ``military orders for'' and all that follows through ``or
to deploy'' and inserting ``military orders--
``(i) for a change of permanent station--
``(I) from a location in the continental United
States to a location outside the continental United
States; or
``(II) from a location in a State outside the
continental United States to any location outside that
State; or
``(ii) to deploy''.
(2) Definitions.--Such section is further amended by adding at
the end the following new subsection:
``(i) Definitions.--
``(1) Military orders.--The term `military orders', with
respect to a servicemember, means official military orders, or any
notification, certification, or verification from the
servicemember's commanding officer, with respect to the
servicemember's current or future military duty status.
``(2) Conus.--The term `continental United States' means the 48
contiguous States and the District of Columbia.''.
(c) Coverage of Individual Deployments.--Subsection (b) of such
section is further amended in paragraph (1)(B) and paragraph (2)(B)(ii)
(as designated by subsection (b) of this section) by inserting ``, or
as an individual in support of a military operation,'' after ``deploy
with a military unit''.
TITLE VIII--OTHER MATTERS
SEC. 801. PRINCIPAL OFFICE OF UNITED STATES COURT OF APPEALS FOR
VETERANS CLAIMS.
Section 7255 is amended by striking ``District of Columbia'' and
inserting ``Washington, D.C., metropolitan area''.
SEC. 802. TECHNICAL AMENDMENTS RELATING TO THE UNITED STATES COURT
OF APPEALS FOR VETERANS CLAIMS.
(a) Restoration of Prior Provision Relating to Chief Judge.--
Section 7253(d)(1) is amended by inserting after ``(1)'' the following:
``The chief judge of the Court is the head of the Court.''.
(b) Capitalization Amendments.--Section 7253(d)(4)(A) is amended by
striking ``court'' in clauses (i) and (ii) and inserting ``Court''.
(c) Date of Enactment Reference.--Section 7253(h)(4) is amended by
striking ``the date of the enactment of this subsection'' and inserting
``December 27, 2001,''.
SEC. 803. EXTENSION OF BIENNIAL REPORT OF ADVISORY COMMITTEE ON
FORMER PRISONERS OF WAR.
Section 541(c)(1) is amended by striking ``2003'' and inserting
``2009''.
SEC. 804. AVAILABILITY OF ADMINISTRATIVE AND JUDICIAL REDRESS FOR
CERTAIN VETERANS DENIED OPPORTUNITY TO COMPETE FOR FEDERAL
EMPLOYMENT.
(a) Administrative Redress.--Section 3330a(a)(1) of title 5, United
States Code, is amended--
(1) by inserting ``(A)'' after ``(1)''; and
(2) by adding at the end the following new subparagraph:
``(B) A veteran described in section 3304(f)(1) who alleges that an
agency has violated such section with respect to such veteran may file
a complaint with the Secretary of Labor.''.
(b) Judicial Redress.--Section 3330b(a) is amended by inserting ``,
or a veteran described by section 3330a(a)(1)(B) with respect to a
violation described by such section,'' after ``a preference eligible''.
SEC. 805. REPORT ON SERVICEMEMBERS' AND VETERANS' AWARENESS OF
BENEFITS AND SERVICES AVAILABLE UNDER LAWS ADMINISTERED BY
SECRETARY OF VETERANS AFFAIRS.
(a) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary of Veterans Affairs shall submit
to Congress a report setting forth a detailed description of (1) the
outreach efforts of the Department of Veterans Affairs, as of the date
of the enactment of this Act, to inform members of the uniformed
services and veterans (and their family members and survivors) of the
benefits and services to which they are entitled under laws
administered by the Secretary, and (2) the current level of awareness
of those members and veterans (and family members and survivors) of
those benefits and services.
(b) Matters To Be Included.--The report under subsection (a) shall
include the following:
(1) A description of the outreach activities conducted by the
Secretary in each of the three Administrations of the Department of
Veterans Affairs and outreach activities conducted by other
entities within the Department.
(2) The results of a national survey, conducted as described in
subsection (c), to ascertain servicemembers' and veterans' level of
awareness of benefits and services referred to in subsection (a)
and whether servicemembers and veterans know how to access those
benefits and services.
(3) Recommendations by the Secretary on how outreach and
awareness activities to veterans and servicemembers may be
improved.
(c) Conduct of Survey.--The survey conducted for purposes of
subsection (b)(2) shall be conducted in a manner to include a
statistically valid sample of persons in each of the following groups:
(1) World War II veterans.
(2) Korean conflict era veterans.
(3) Vietnam era veterans.
(4) Persian Gulf era veterans.
(5) Active duty servicemembers.
(6) National Guard and Reserve members activated under title
10, United States Code.
(7) Family members and survivors.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.