[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1220 Referred in Senate (RFS)]
1st Session
H. R. 1220
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 14, 2005
Received; read twice and referred to the Committee on Veterans' Affairs
_______________________________________________________________________
AN ACT
To increase, effective as of December 1, 2005, the rates of disability
compensation for veterans with service-connected disabilities and the
rates of dependency and indemnity compensation for survivors of certain
service-connected disabled veterans, 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.
This Act may be cited as ``Veterans' Compensation Cost-of-Living
Adjustment Act of 2005''.
SEC. 2. INCREASE IN RATES OF DISABILITY COMPENSATION AND DEPENDENCY AND
INDEMNITY COMPENSATION.
(a) Rate Adjustment.--The Secretary of Veterans Affairs shall,
effective on December 1, 2005, increase the dollar amounts in effect
for the payment of disability compensation and dependency and indemnity
compensation by the Secretary, as specified in subsection (b).
(b) Amounts to Be Increased.--The dollar amounts to be increased
pursuant to subsection (a) are the following:
(1) Compensation.--Each of the dollar amounts in effect
under section 1114 of title 38, United States Code.
(2) Additional compensation for dependents.--Each of the
dollar amounts in effect under section 1115(1) of such title.
(3) Clothing allowance.--The dollar amount in effect under
section 1162 of such title.
(4) New dic rates.--The dollar amounts in effect under
paragraphs (1) and (2) of section 1311(a) of such title.
(5) Old dic rates.--Each of the dollar amounts in effect
under section 1311(a)(3) of such title.
(6) Additional dic for surviving spouses with minor
children.--The dollar amounts in effect under section 1311(b)
of such title and paragraph (1) of section 1311(f) of such
title (as redesignated by subsection (e) of this section).
(7) Additional dic for disability.--The dollar amounts in
effect under sections 1311(c) and 1311(d) of such title.
(8) DIC for dependent children.--The dollar amounts in
effect under sections 1313(a) and 1314 of such title.
(c) Determination of Increase.--
(1) Base for increase.--The increase under subsection (a)
shall be made in the dollar amounts specified in subsection (b)
as in effect on November 30, 2005.
(2) Percentage of increase.--Except as provided in
paragraph (3), each such amount shall be increased by the same
percentage as the percentage by which benefit amounts payable
under title II of the Social Security Act (42 U.S.C. 401 et
seq.) are increased effective December 1, 2005, as a result of
a determination under section 215(i) of such Act (42 U.S.C.
415(i)).
(3) Rounding.--Each dollar amount increased pursuant to
paragraph (2) shall, if not a whole dollar amount, be rounded
down to the next lower whole dollar amount.
(d) Special Rule.--The Secretary may adjust administratively,
consistent with the increases made under subsection (a), the rates of
disability compensation payable to persons within the purview of
section 10 of Public Law 85-857 (72 Stat. 1263) who are not in receipt
of compensation payable pursuant to chapter 11 of title 38, United
States Code.
(e) Designation Correction.--Section 1311 of title 38, United
States Code, is amended by redesignating the second subsection (e)
(added by section 301(a) of the Veterans Benefits Improvement Act of
2004 (Public Law 108-454; 118 Stat. 3610)) as subsection (f).
SEC. 3. PUBLICATION OF ADJUSTED RATES.
At the same time as the matters specified in section 215(i)(2)(D)
of the Social Security Act (42 U.S.C. 415(i)(2)(D)) are required to be
published by reason of a determination made under section 215(i) of
such Act during fiscal year 2006, the Secretary of Veterans Affairs
shall publish in the Federal Register the amounts specified in
subsection (b) of section 2, as increased pursuant to that section.
SEC. 4. CODIFICATION OF FISCAL YEAR 2005 COST-OF-LIVING ADJUSTMENT
PROVIDED IN PUBLIC LAW 108-363.
(a) Veterans' Disability Compensation.--Section 1114 of title 38,
United States Code, is amended--
(1) in subsection (a), by striking ``$106'' and inserting
``$108'';
(2) in subsection (b), by striking ``$205'' and inserting
``$210'';
(3) in subsection (c), by striking ``$316'' and inserting
``$324'';
(4) in subsection (d), by striking ``$454'' and inserting
``$466'';
(5) in subsection (e), by striking ``$646'' and inserting
``$663'';
(6) in subsection (f), by striking ``$817'' and inserting
``$839'';
(7) in subsection (g), by striking ``$1,029'' and inserting
``$1,056'';
(8) in subsection (h), by striking ``$1,195'' and inserting
``$1,227'';
(9) in subsection (i), by striking ``$1,344'' and inserting
``$1,380'';
(10) in subsection (j), by striking ``$2,239'' and
inserting ``$2,299'';
(11) in subsection (k)--
(A) by striking ``$82'' both places it appears and
inserting ``$84''; and
(B) by striking ``$2,785'' and ``$3,907'' and
inserting ``$2,860'' and ``$4,012'', respectively;
(12) in subsection (l), by striking ``$2,785'' and
inserting ``$2,860'';
(13) in subsection (m), by striking ``$3,073'' and
inserting ``$3,155'';
(14) in subsection (n), by striking ``$3,496'' and
inserting ``$3,590'';
(15) in subsections (o) and (p), by striking ``$3,907''
each place it appears and inserting ``$4,012'';
(16) in subsection (r), by striking ``$1,677'' and
``$2,497'' and inserting ``$1,722'' and ``$2,564'',
respectively; and
(17) in subsection (s), by striking ``$2,506'' and
inserting ``$2,573''.
(b) Additional Compensation for Dependents.--Section 1115(1) of
such title is amended--
(1) in subparagraph (A), by striking ``$127'' and inserting
``$130'';
(2) in subparagraph (B), by striking ``$219'' and ``$65''
and inserting ``$224'' and ``$66'', respectively;
(3) in subparagraph (C), by striking ``$86'' and ``$65''
and inserting ``$88'' and ``$66'', respectively;
(4) in subparagraph (D), by striking ``$103'' and inserting
``$105'';
(5) in subparagraph (E), by striking ``$241''and inserting
``$247''; and
(6) in subparagraph (F), by striking ``$202'' and inserting
``$207''.
(c) Clothing Allowance for Certain Disabled Veterans.--Section 1162
of such title is amended by striking ``$600'' and inserting ``$616''.
(d) Dependency and Indemnity Compensation for Surviving Spouses.--
(1) New law dic.--Section 1311(a) of such title is
amended--
(A) in paragraph (1), by striking ``$967'' and
inserting ``$993''; and
(B) in paragraph (2), by striking ``$208'' and
inserting ``$213''.
(2) Old law dic.--The table in paragraph (3) of such
section is amended to read as follows:
``Pay grade Monthly rate Pay grade Monthly rate
E-1.................................. $993 W-4.................... $1,188
E-2.................................. $993 O-1.................... $1,049
E-3.................................. $993 O-2.................... $1,084
E-4.................................. $993 O-3.................... $1,160
E-5.................................. $993 O-4.................... $1,227
E-6.................................. $993 O-5.................... $1,351
E-7.................................. $1,027 O-6.................... $1,523
E-8.................................. $1,084 O-7.................... $1,645
E-9.................................. $1,1311 O-8.................... $1,805
W-1.................................. $1,049 O-9.................... $1,931
W-2.................................. $1,091 O-10................... $2,1182
W-3.................................. $1,123 ....................... ..............
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
$1,221.
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 $2,272.''.
(3) Additional dic for children or disability.--Section
1311 of such title is amended--
(A) in subsection (b), by striking ``$241'' and
inserting ``$247'';
(B) in subsection (c), by striking ``$241'' and
inserting ``$247''; and
(C) in subsection (d), by striking ``$115'' and
inserting ``$118''.
(e) Dependency and Indemnity Compensation for Children.--
(1) Dic when no surviving spouse.--Section 1313(a) of such
title is amended--
(A) in paragraph (1), by striking ``$410'' and
inserting ``$421'';
(B) in paragraph (2), by striking ``$590'' and
inserting ``$605'';
(C) in paragraph (3), by striking ``$767'' and
inserting ``$787''; and
(D) in paragraph (4), by striking ``$767'' and
``$148'' and inserting ``$787'' and ``$151'',
respectively.
(2) Supplemental dic for certain children.--Section 1314 of
such title is amended--
(A) in subsection (a), by striking ``$241'' and
inserting ``$247'';
(B) in subsection (b), by striking ``$410'' and
inserting ``$421''; and
(C) in subsection (c), by striking ``$205'' and
inserting ``$210''.
SEC. 5. DEMONSTRATION PROJECT TO IMPROVE BUSINESS PRACTICES OF VETERANS
HEALTH ADMINISTRATION.
(a) Demonstration Project Required.--
(1) In general.--The Secretary of Veterans Affairs shall
conduct a demonstration project under this section for the
improvement of business practices of the Veterans Health
Administration.
(2) Performance-based contract.-- To carry out the
demonstration project, the Secretary shall enter into a
performance-based contract for a contractor to carry out the
functions specified in subsection (e).
(3) Cost limitation.--The total amount paid to the
contractor under the contract may not exceed $10,000,000.
(b) Commencement and Duration of Project.--The demonstration
project shall be conducted during the two-year period beginning on the
first day of the first month beginning more than 120 days after the
date of the enactment of this Act.
(c) Sites for Conduct of Project.--The Secretary shall conduct the
demonstration project at two facilities, at least one of which shall be
a medical center, of the Veterans Health Administration within the same
service area (referred to as a Veterans Integrated Service Network) of
the Veterans Health Administration. The two facilities at which the
project is conducted shall be selected by the Secretary from among
facilities that the Secretary determines have relatively low
performance for recovery or collection of indebtedness from third-party
payors under section 1729 of title 38, United States Code.
(d) Selection of Contractor.--The Secretary shall carry out the
process for selection of the contractor for the demonstration project
so that the contractor to perform the contract is selected, and the
contract is awarded, not later than three months after the date of the
enactment of this Act. The contractor shall be an entity or
organization that has significant experience in the administrative
processing of health care charges and claims.
(e) Functions of Contractor.--The Secretary shall provide in the
contract for the following functions of the contractor with respect to
each facility at which the demonstration project is conducted:
(1) Detailed specification of existing business processes
that the contractor determines are relevant to the capability
of the facility to recover or collect indebtedness from third-
party payors under section 1729 of title 38, United States
Code.
(2) Reengineering of the business processes identified
under paragraph (1), including provision for standardized
application of such reengineered processes throughout the
facility.
(3) Establish and implement a plan to transition from the
business processes identified under paragraph (1) to the
reengineered and standardized businesses established pursuant
to paragraph (2).
(4) Establishment of a comprehensive database containing
third-party payor information for veterans receiving health
care and services at the facility.
(f) VHA Project Manager.--As part of the demonstration project, the
Secretary shall ensure that a Veterans Health Administration employee
is designated to be the full-time project manager for the project and
that such employee's duty station is at one of the facilities at which
the project is conducted, with provision for visits as needed to the
other facility at which the project is conducted.
(g) Employee Protection.--The Secretary shall administer the
demonstration project so that during the period of the conduct of the
demonstration project there is no reduction in active full-time
equivalent employees of the Department of Veterans Affairs at the
facilities at which the project is conducted that is attributable to
the conduct of the demonstration project.
(h) Reports to Congress.--
(1) Periodic progress reports on project implementation.--
(A) Reports required.--The Secretary shall submit
to Congress progress reports on the implementation of
the demonstration project.
(B) Time for progress reports.-- Such reports shall
be submitted as expeditiously as feasible after the end
of--
(i) the 60-day period and the 90-day period
beginning on the date of the enactment of this
Act; and
(ii) the 60-day period, the 90-day period,
and the 180-day period beginning on the date of
the award of the contract under subsection (d).
(C) Matter to be included.--Each report under this
paragraph shall set out the progress to date of the
demonstration project, including--
(i) before the contractor has been
selected, progress toward selection of the
contractor (identified by the steps in the
acquisition process that have been accomplished
and that remain to be accomplished); and
(ii) after the contractor has been
selected--
(I) the contractor's progress in
initiating and carrying out the
demonstration project in accordance
with the requirements of this section;
and
(II) a copy of each contract under
the demonstration project and any
change order or modification to any
such contract.
(2) Interim reports on project operation.--After the
completion of the first 12 months, and after the completion of
the first 18 months, of the demonstration project, the
Secretary shall submit to Congress an interim report on the
operation of the demonstration project to that date. Each such
report shall include the following:
(A) The assessment of the Secretary as to whether
the rate of recovery or collection of indebtedness owed
the United States from third-party payors has improved
by reason of the project.
(B) The assessment of the Secretary as to the
performance of the contractor.
(3) Final report.--
(A) Requirement.--After the conclusion of the
demonstration project, the Secretary shall submit to
Congress a final report on the project.
(B) Content.--The Secretary shall include in that
report--
(i) the matters specified in paragraph (2);
(ii) the Secretary's estimate of cost
savings to the Department attributable to the
reengineered business processes implemented
under the demonstration project, with
supporting evidence and documentation for such
estimate; and
(iii) the Secretary's recommendation for
implementing on a permanent basis the recovery
or collection system demonstrated in the
project and expanding the project to other
facilities of the Veterans Health
Administration.
(C) Submission.--The final report shall be
submitted not later than 90 days after the conclusion
of the demonstration project.
(i) Comptroller General Review and Reports.--
(1) Review.--The Comptroller General shall review the
demonstration project on an ongoing basis.
(2) Reports.--The Comptroller General shall submit to
Congress a report on the Comptroller General's findings and
recommendations concerning the demonstration project--
(A) after the operation of the demonstration
project for a period of one year; and
(B) after the operation of the demonstration
project for a period of two years.
(j) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary of Veterans Affairs for the conduct of
the demonstration project under this section the sum of $10,000,000.
SEC. 6. PARKINSON'S DISEASE RESEARCH, EDUCATION, AND CLINICAL CENTERS.
(a) Requirement for Establishment of Centers.--
(1) In general.--Subchapter II of chapter 73 of title 38,
United States Code, is amended by adding at the end the
following new section:
``Sec. 7329. Parkinson's Disease research, education, and clinical
centers
``(a) The Secretary, upon the recommendation of the Under Secretary
for Health and pursuant to the provisions of this section, shall
designate six Department health-care facilities as the locations for
centers of Parkinson's Disease research, education, and clinical
activities and (subject to the appropriation of sufficient funds for
such purpose) shall establish and operate such centers at such
locations in accordance with this section.
``(b) In designating locations for centers under subsection (a),
the Secretary, upon the recommendation of the Under Secretary for
Health, shall--
``(1) designate each Department health-care facility that
as of January 1, 2005, was operating a Parkinson's Disease
research, education, and clinical center unless (on the
recommendation of the Under Secretary for Health) the Secretary
determines that such facility does not meet the requirements of
subsection (c) or has not demonstrated effectiveness in
carrying out the established purposes of such center or the
potential to carry out such purposes effectively in the
reasonably foreseeable future; and
``(2) assure appropriate geographic distribution of such
facilities.
``(c) The Secretary may not designate a health-care facility as a
location for a center under subsection (a) unless the peer review panel
established under subsection (d) has determined under that subsection
that the proposal submitted by such facility as a location for a new
center under subsection (a) is among those proposals which have met the
highest competitive standards of scientific and clinical merit, and the
Secretary (upon the recommendation of the Under Secretary for Health)
determines that the facility has (or may reasonably be anticipated to
develop) each of the following:
``(1) An arrangement with an accredited medical school
which provides education and training in neurology and with
which such facility is affiliated under which residents receive
education and training in innovative diagnosis and treatment of
chronic neurodegenerative diseases and movement disorders,
including Parkinson's disease.
``(2) The ability to attract the participation of
scientists who are capable of ingenuity and creativity in
health-care research efforts.
``(3) A policymaking advisory committee composed of
appropriate health-care and research representatives of the
facility and of the affiliated school or schools to advise the
directors of such facility and such center on policy matters
pertaining to the activities of such center during the period
of the operation of such center.
``(4) The capability to conduct effectively evaluations of
the activities of such center.
``(5) The capability to coordinate, as part of an
integrated national system, education, clinical, and research
activities within all facilities with such centers.
``(6) The capability to jointly develop a consortium of
providers with interest in treating neurodegenerative diseases,
including Parkinson's Disease, and other movement disorders, at
facilities without such centers in order to ensure better
access to state-of-the-art diagnosis, care, and education for
neurodegenerative disorders throughout the health care system.
``(7) The capability to develop a national repository for
the collection of data on health services delivered to veterans
seeking care for neurodegenerative diseases, including
Parkinson's Disease, and other movement disorders in the health
care system.
``(d)(1) The Under Secretary for Health shall establish a panel to
assess the scientific and clinical merit of proposals that are
submitted to the Secretary for the establishment of new centers under
this section.
``(2)(A) The membership of the panel shall consist of experts in
neurodegenerative diseases, including Parkinson's Disease, and other
movement disorders.
``(B) Members of the panel shall serve as consultants to the
Department for a period of no longer than two years except in the case
of panelists asked to serve on the initial panel as specified in
subparagraph (C).
``(C) In order to ensure panel continuity, half of the members of
the first panel shall be appointed for a period of three years and half
for a period of two years.
``(3) The panel shall review each proposal submitted to the panel
by the Under Secretary and shall submit its views on the relative
scientific and clinical merit of each such proposal to the Under
Secretary.
``(4) The panel shall not be subject to the Federal Advisory
Committee Act.
``(e) Before providing funds for the operation of any such center
at a health-care facility other than a health-care facility designated
under subsection (b)(1), the Secretary shall assure that the center at
each facility designated under such subsection is receiving adequate
funding to enable such center to function effectively in the areas of
Parkinson's Disease research, education, and clinical activities.
``(f) There are authorized to be appropriated such sums as may be
necessary for the support of the research and education activities of
the centers established pursuant to subsection (a). The Under Secretary
for Health shall allocate to such centers from other funds appropriated
generally for the Department medical services account and medical and
prosthetics research account, as appropriate, such amounts as the Under
Secretary for Health determines appropriate.
``(g) Activities of clinical and scientific investigation at each
center established under subsection (a) shall be eligible to compete
for the award of funding from funds appropriated for the Department
medical and prosthetics research account and shall receive priority in
the award of funding from such account insofar as funds are awarded to
projects for research in Parkinson's disease and other movement
disorders.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 7328 the following new item:
``7329. Parkinson's Disease research, education, and clinical
centers.''.
(b) Effective Date.--Section 7329 of title 38, United States Code,
as added by subsection (a), shall take effect on October 1, 2005.
Passed the House of Representatives July 13, 2005.
Attest:
JEFF TRANDAHL,
Clerk.