Noble Warrior Act

        [Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 5509 Introduced in House (IH)]

110th CONGRESS
2d Session
H. R. 5509

To amend titles 10 and 38, United States Code, to improve and enhance
procedures for the retirement of members of the Armed Forces for
disability and to improve and enhance authorities for the rating and
compensation of service-connected disabilities in veterans, and for
other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

February 28, 2008

Mr. Buyer introduced the following bill; which was referred to the
Committee on Veterans' Affairs, and in addition to the Committees on
Armed Services and Rules, for a period to be subsequently determined by
the Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To amend titles 10 and 38, United States Code, to improve and enhance
procedures for the retirement of members of the Armed Forces for
disability and to improve and enhance authorities for the rating and
compensation of service-connected disabilities in 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; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Noble Warrior
Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:

Sec. 1. Short title; table of contents.
TITLE I--RETIREMENT OF MEMBERS OF THE ARMED FORCES FOR DISABILITY

Sec. 101. Retirement for disability of members of the Armed Forces
after implementation of enhanced Department
of Veterans Affairs disability compensation
system.
Sec. 102. Continuation of respite care and aid and other extended care
benefits for members of the uniformed
services who incur a serious injury or
illness on active duty.
TITLE II--COMPENSATION OF VETERANS FOR SERVICE-CONNECTED DISABILITY

Sec. 201. Study on veterans disability compensation.
Sec. 202. Study on veterans transition benefits.
Sec. 203. Study on measures to assist and encourage veterans in the
completion of their vocational
rehabilitation plans.
Sec. 204. Proposal on veterans disability compensation and veterans
transition benefits.
Sec. 205. Congressional consideration of proposal.
Sec. 206. Effective date of implementation of enhanced Department of
Veterans Affairs disability compensation
system.
Sec. 207. Enhanced Department of Veterans Affairs disability
compensation system.
Sec. 208. Supplemental survivor benefit for survivors of veterans
retired for disability after implementation
of enhanced Department of Veterans Affairs
disability compensation system.

TITLE I--RETIREMENT OF MEMBERS OF THE ARMED FORCES FOR DISABILITY

SEC. 101. RETIREMENT FOR DISABILITY OF MEMBERS OF THE ARMED FORCES
AFTER IMPLEMENTATION OF ENHANCED DEPARTMENT OF VETERANS
AFFAIRS DISABILITY COMPENSATION SYSTEM.

(a) In General.--Chapter 61 of title 10, United States Code, is
amended--
(1) by inserting before section 1201 the following:

``SUBCHAPTER I--RETIREMENT OR SEPARATION BEFORE IMPLEMENTATION OF
ENHANCED DEPARTMENT OF VETERANS AFFAIRS DISABILITY COMPENSATION SYSTEM

``Sec. 1200. Applicability of subchapter: members retired or separated
before implementation of enhanced Department of Veterans
Affairs disability compensation system; certain members
on temporary disability retired list as of implementation
of enhanced Department of Veterans Affairs disability
compensation system
``(a) In General.--Except as provided in subsection (b), this
subchapter applies to the retirement or separation for disability of
members as follows:
``(1) Members who are eligible for retirement for
disability or separation for disability before the effective
date of the implementation of the enhanced Department of
Veterans Affairs disability compensation system under chapter
12 of title 38 (as determined in accordance with section 206 of
the Noble Warrior Act).
``(2) Members on the temporary disability retired list as
of the effective date of the implementation of the enhanced
Department of Veterans Affairs disability compensation system
who--
``(A) are eligible for retirement under the
provisions of subchapter II in accordance with section
1206c of this title; but
``(B) do not elect to retire under the provisions
of subchapter II as otherwise provided in section 1206c
of this title.
``(b) Inapplicability to Certain Members.--For provisions relating
to the applicability of subchapter II to the retirement for disability
of certain members otherwise covered by this subchapter under
subsection (a)(1), see section 1206b of this title.'';
(2) by transferring section 1206a to appear after section
1207a and redesignating such section, as so transferred, as
section 1207b; and
(3) by inserting after section 1206 the following:

``SUBCHAPTER II--RETIREMENT AFTER IMPLEMENTATION OF ENHANCED DEPARTMENT
OF VETERANS AFFAIRS DISABILITY COMPENSATION SYSTEM

``Sec. 1206a. Applicability of subchapter: members retired on or after
implementation of enhanced Department of Veterans Affairs
disability compensation system
``(a) In General.--This subchapter applies to the retirement of
members for disability (including the placement of members on the
temporary disability retired list in accordance with section 1206e of
this title) on or after the effective date of the implementation of the
enhanced Department of Veterans Affairs disability compensation system
(as determined in accordance with section 206 of the Noble Warrior
Act).
``(b) Exclusive Application.--Members eligible for retirement under
this subchapter by reason of this section are not eligible for
retirement or separation under subchapter I.
``Sec. 1206b. Applicability of subchapter: certain members retired on
or after October 7, 2001, but before implementation of
enhanced Department of Veterans Affairs disability
compensation system
``(a) Election of Applicability.--(1) During such period as the
Secretary of Defense shall prescribe for purposes of this section, a
former member described in subsection (b) may elect to retire under
this subchapter in lieu of retirement under the provisions of this
chapter as in effect on the day before the effective date of the
implementation of the enhanced Department of Veterans Affairs
disability compensation system (as determined in accordance with
section 206 of the Noble Warrior Act).
``(2) Each election under this subsection shall be executed in such
form and manner as the Secretary of Defense shall prescribe for
purposes of this section.
``(3) Any election made under this subsection is irrevocable.
``(b) Covered Former Members.--A former member described in this
subsection is any former member who, during the period beginning on
October 7, 2001, and ending on the day before the effective date of the
implementation of the enhanced Department of Veterans Affairs
disability compensation system, is retired under the provisions of this
chapter as in effect before the effective date of the implementation of
the enhanced Department of Veterans Affairs disability compensation
system.
``(c) Treatment of Former Members Making Elections.--(1) Effective
as of the date of the correction of the military records of such former
member under subsection (d), each former member who makes an election
under subsection (a) shall be deemed to have been retired under this
subchapter, with retired pay computed under section 1401 of this title
(as in effect after the effective date of the implementation of the
enhanced Department of Veterans Affairs disability compensation
system), rather than to have been retired under the provisions of this
chapter as in effect before the effective date of the implementation of
the enhanced Department of Veterans Affairs disability compensation
system.
``(2) No benefits are available to a former member under this
subchapter for any period before the correction of the military records
of the former member under subsection (d).
``(3) The Secretary of Defense may not recoup or collect from any
former member who is retired under this subchapter pursuant to an
election under subsection (a) any amount of retired pay paid to the
former member under this chapter before the date of the effective date
of the correction of the military records of the former member under
subsection (d).
``(d) Correction of Military Records.--The Secretary concerned
shall correct the military records of each former member making an
election under subsection (a) to reflect that the former member is
retired under the provisions of this subchapter rather than retired
under the provisions of this chapter as in effect before the effective
date of the implementation of the enhanced Department of Veterans
Affairs disability compensation system.
``Sec. 1206c. Applicability of subchapter: members on temporary
disability retired list as of implementation of enhanced
Department of Veterans Affairs disability compensation
system
``(a) Election of Applicability.--(1) A member described in
subsection (b) may elect to retire under this subchapter in lieu of
retirement under the provisions of subchapter I.
``(2) Each election under this subsection shall be executed in such
form and manner as the Secretary of Defense shall prescribe for
purposes of this section.
``(3) Any election made under this subsection is irrevocable.
``(b) Covered Members.--A member described in this subsection is
any member--
``(1) whose name is on the temporary disability retired
list as of the effective date of the implementation of the
enhanced Department of Veterans Affairs disability compensation
system (as determined in accordance with section 206 of the
Noble Warrior Act); and
``(2)(A) whose disability qualifying the member for
placement on the temporary disability retired list is
determined after such effective date by the Secretary
concerned, based on accepted medical principles, to be of a
permanent nature and stable; or
``(B) whose disability is considered after such effective
date by the Secretary concerned to be of a permanent nature and
stable after five years of the placement of the member's name
on the temporary disability retired list in accordance with
section 1210(b) of this title.
``(c) Timing of Election.--A member eligible to make an election
under subsection (a) by reason of a determination under subparagraph
(A) or (B) of subsection (b)(2) shall make such election, if at all,
during such period after the date of the determination as the Secretary
of Defense shall prescribe for purposes of this section.
``(d) Treatment of Members Making Elections.--(1) Effective as of
the date of such election, each member who makes an election under
subsection (a) shall be retired under this subchapter, with retired pay
computed under section 1401 of this title (as in effect after the
effective date of the implementation of the enhanced Department of
Veterans Affairs disability compensation system).
``(2) No benefits are available to a member under this subchapter
for any period before the election of the member under subsection (a).
``(3) The Secretary of Defense may not recoup or collect from any
member who is retired under this subchapter pursuant to an election
under subsection (a) any amount of retired pay paid to the member under
this chapter before the date of the election of the member under
subsection (a).
``Sec. 1206d. Retirement
``(a) In General.--Upon a determination by the Secretary concerned
that a member covered by this subchapter under section 1206a of this
title is unfit to perform the duties of the member's office, grade,
rank, or rating because of physical disability, the Secretary may,
consistent with regulations prescribed by the Secretary of Defense for
purposes of this subchapter, retire the member, with retired pay
computed under section 1401 of this title (as in effect after the
effective date of the implementation of the enhanced Department of
Veterans Affairs disability compensation system), if the Secretary
concerned also makes the determinations specified in subsection (b)
with respect to the member.
``(b) Determinations.--The determinations specified in this
subsection with respect to a member are determinations by the Secretary
concerned as follows:
``(1) That the disability of the member, based upon
accepted medical principles--
``(A) is of a permanent nature; or
``(B) is of uncertain permanency, such that a
temporary disability retirement under section 1206e of
this title is appropriate.
``(2) That the injury, illness, or disease rendering the
member unfit was incurred or aggravated in the line of duty--
``(A) while the member was entitled to basic pay
under section 204 of title 37 or compensation under
section 206 of that title;
``(B) while performing active duty but not entitled
to basic pay under section 204 of title 37 or inactive-
duty training; or
``(C) while engaged in an activity covered by
section 1201(c)(3), 1204(2)(B), or 1204(2)(C) of this
title.
``(3) That the injury, illness, or disease was not--
``(A) the result of the member's intentional
misconduct or willful neglect; or
``(B) incurred during a period of unauthorized
absence.
``Sec. 1206e. Temporary disability retired list
``(a) In General.--Subject to the provisions of this section, a
member covered by section 1206d(b) of this title who is described by
paragraph (1)(B) of such section shall have such member's name placed
on the temporary disability retired list, with retired pay computed
under section 1401 of this title (as in effect after the effective date
of the implementation of the enhanced Department of Veterans Affairs
disability compensation system (as determined in accordance with
section 206 of the Noble Warrior Act)).
``(b) Administration.--(1) Subsection (a) shall be administered in
accordance with such regulations as the Secretary of Defense shall
prescribe for purposes of this section.
``(2)(A) Except as provided in subparagraph (B), the regulations
prescribed under this subsection shall provide for the applicability of
the provisions of sections 1210 and 1211 of this title to a member
whose name is placed on the temporary disability retired list under
this section.
``(B) The provisions of subsections (c), (d), and (e) of section
1210 of this title shall not apply to a member whose name is placed on
the temporary disability retired list under this section.
``(3)(A) The regulations shall provide for appropriate mechanisms,
applicable uniformly across the military departments, for an annual
review by the military departments of determinations to place members'
names on the temporary disability retired list under this section in
order to ensure the accuracy and consistency of such determinations by
the military departments.
``(B) The Secretary of Defense shall submit to the Committees on
Armed Services of the Senate and the House of Representatives each year
a report on the results of the reviews conducted by the military
departments under subparagraph (A) during the preceding year.
``(c) Retirement.--If, as a result of a periodic examination under
section 1210(a) of this title or upon a final determination under
section 1210(b) of this title, it is determined that a member's
physical disability is of a permanent nature, the member's name shall
be removed from the temporary disability retired list, and the member
shall be retired under section 1206d of this title.
``Sec. 1206f. Treatment of retired pay
``(a) In General.--Retired pay authorized by this subchapter shall
be treated as retired pay for all purposes under this title, including
for purposes of eligibility for medical and dental care under chapter
55 of this title.
``(b) No Offset Under Duplication of Benefits.--Retired pay
authorized by this subchapter is not subject to the prohibitions
against duplication of benefits under sections 5304 and 5305 of title
38.
``(c) Ineligibility for Combat-Related Special Compensation.--A
member retired under this subchapter is not eligible for combat-related
special compensation under section 1413a of this title.
``(d) Ineligibility for Certain Space-Available Travel.--A member
retired under this subchapter residing in a Commonwealth or possession
of the United States is not eligible for space-available travel on
Department of Defense aircraft under section 2461b of this title.
``Sec. 1206g. Determinations of unfitness
``(a) In General.--In this subchapter, a finding of unfitness for
duty with respect to a member shall be based on determinations by the
Secretary concerned that--
``(1) the member is unfit to perform the duties of the
member's office, grade, rank, or rating because of a physical
disability; and
``(2) it is unlikely that through retraining in another
occupational specialty or other preparations the member can be
reassigned to other duties the member would be fit to perform
and which are consistent with the needs of the armed force
concerned.
``(b) Interservice Transfer.--With the consent of a member
determined unfit for duty under subsection (a), the member may, instead
of being retired under this subchapter, be transferred under section
716 of this title to another uniformed service if the Secretary
responsible for that uniformed service determines that the member,
currently or through retraining in another occupational specialty or
other preparations, can be reassigned to other duties the member would
be fit to perform and which are consistent with the needs of that
uniformed service.
``(c) Continuation of Service of Member Determined Unfit.--Upon the
agreement of a member determined unfit for duty under subsection (a)
and the Secretary concerned, the member's service may be continued
under terms and conditions specified by the Secretary concerned,
including through transfer to another uniformed service under section
716 of this title.
``Sec. 1206h. Definitions
``In this subchapter, the terms `disability' and `physical
disability' include any disability based on a mental disorder.

``SUBCHAPTER III--ADMINISTRATIVE MATTERS''.

(b) Clerical Amendments.--Chapter 61 of such title is further
amended--
(1) by inserting after the chapter heading the following:

``Subchapter                                                      Sec.
``I. Retirement or Separation Before Implementation of            1200
Enhanced Department of Veterans
Affairs Disability Compensation
System.
``II. Retirement After Implementation of Enhanced Department     1206a
of Veterans Affairs Disability
Compensation System.
``III. Administrative Matters...............................    1207'';
(2) by inserting after the subchapter heading for
subchapter I, as added by subsection (a)(1) of this section,
the following:

``Sec.
``1200. Applicability of subchapter: members retired or separated
before implementation of enhanced
Department of Veterans Affairs disability
compensation system; certain members on
temporary disability retired list as of
implementation of enhanced Department of
Veterans Affairs disability compensation
system.
``1201. Regulars and members on active duty for more than 30 days:
retirement.
``1202. Regulars and members on active duty for more than 30 days:
temporary disability retired list.
``1203. Regulars and members on active duty for more than 30 days:
separation.
``1204. Members on active duty for 30 days or less or on inactive-duty
training: retirement.
``1205. Members on active duty for 30 days or less or on inactive-duty
training: temporary disability retired
list.
``1206. Members on active duty for 30 days or less or on inactive-duty
training: separation.'';
(3) by inserting after the subchapter heading for
subchapter II, as added by subsection (a)(3) of this section,
the following:

``Sec.
``1206a. Applicability of subchapter: members retired on or after
implementation of enhanced Department of
Veterans Affairs disability compensation
system.
``1206b. Applicability of subchapter: certain members retired on or
after October 7, 2001, but before
implementation of enhanced Department of
Veterans Affairs disability compensation
system.
``1206c. Applicability of subchapter: members on temporary disability
retired list as of implementation of
enhanced Department of Veterans Affairs
disability compensation system.
``1206d. Retirement.
``1206e. Temporary disability retired list.
``1206f. Treatment of retired pay.
``1206g. Determinations of unfitness.
``1206h. Definitions.'';
and
(4) by inserting after the subchapter heading for
subchapter III, as so added, the following:

``Sec.
``1207. Disability from intentional misconduct or willful neglect:
separation.
``1207a. Members with over eight years of active service: eligibility
for disability retirement for pre-existing
conditions.
``1207b. Reserve component members unable to perform duties when
ordered to active duty: disability system
processing.
``1208. Computation of service.
``1209. Transfer to inactive status list instead of separation.
``1210. Members on temporary disability retired list: periodic physical
examination; final determination of status.
``1211. Members on temporary disability retired list: return to active
duty; promotion.
``1212. Disability severance pay.
``1213. Effect of separation on benefits and claims.
``1214. Right to full and fair hearing.
``1215. Members other than Regulars: applicability of laws.
``1216. Secretaries: powers, functions, and duties.
``1217. Academy cadets and midshipmen: applicability of chapter.
``1218. Discharge or release from active duty: claims for compensation,
pension, or hospitalization.
``1219. Statement of origin of disease or injury: limitations.
``1221. Effective date of retirement or placement of name on temporary
disability retired list.''.
(c) Eligibility for Disability Retirement for Pre-Existing
Condition After Eight Years of Service.--Section 1207a(a) of title 10,
United States Code, is amended by striking ``or 1203'' and inserting
``1203, 1206b, 1206c, 1206d, or 1206e''.
(d) Computation of Retired Pay.--The table in section 1401(a) of
title 10, United States Code, is amended by inserting after the matter
relating to Formula 2 the following matter:

------------------------------------------------------------------------
`  1  Retired pay base       2\1/2\% of years of service
2
` 0
6
b
1    as computed            credited to the person
2
0
6
c
1    under section          under section 1208.1''.
2
0
6
d
1    1406(b) or           ............................
2
0
6
e
1407.                ............................
------------------------------------------------------------------------

(e) Conforming Amendments Relating to Retired Pay.--
(1) Recomputation of retired pay to reflect later active
duty.--Sections 1402(b) and 1402a(b) of title 10, United States
Code, are each amended by inserting ``(as in effect before the
effective date of the implementation of the enhanced Department
of Veterans Affairs disability compensation system (as
determined in accordance with section 206 of the Noble Warrior
Act) or subchapter I of chapter 61 of this title (as in effect
after such effective date), as applicable'' after ``chapter 61
of this title''.
(2) Retired pay base for members retired before september
8, 1980.--The items in the column in the table in section
1406(b)(1) of such title designated ``For a member entitled to
retired pay under section:'' are amended to read as follows:

``1201
1202
1204
1205
1206b
1206c
1206d
1206e''.

(3) Retired pay base for members retired after september 7,
1980.--Section 1407 of such title is amended--
(A) in subsection (c)--
(i) in paragraph (1), by striking ``other
than section 1204 or 1205 or section 12731 of
this title'' and inserting ``(other than
section 1204, 1205, or 12731 of this title, or
section 1206b, 1206c, 1206d, or 1206e of this
title for nonregular service)'';
(ii) in paragraph (2), by inserting ``, or
under section 1206b, 1206c, 1206d, or 1206e of
this title for regular service,'' after
``section 1201 or 1202 of this title''; and
(iii) in paragraph (3)--
(I) by striking ``section 1201 or
1202'' and inserting ``section 1201,
1202, 1206b, 1206c, 1206d, or 1206e'';
and
(II) by inserting ``or under
section 1206b, 1206c, 1206d, or 1206e
of this title for nonregular service''
before the period; and
(B) in subsection (d)--
(i) in paragraph (2), by inserting ``, or
under section 1206b, 1206c, 1206d, or 1206e of
this title for nonregular service,'' after
``section 1204 or 1205 of this title''; and
(ii) in paragraph (3), inserting ``, or
under section 1206, 1206c, 1206d, or 1206e of
this title for nonregular service,'' after
``section 1204 or 1205 of this title''.
(4) Grade on retirement for physical disability.--Section
1372 of such title is amended--
(A) by striking ``section 1201 or 1204'' and
inserting ``section 1201, 1204, 1206b, 1206c, or
1206d''; and
(B) by striking ``section 1202 or 1205'' and
inserting ``section 1202, 1205, or 1206e''.
(f) Effective Date.--
(1) In general.--Except as provided in paragraph (2), this
section and the amendments made by this section shall take
effect, if at all, on the effective date of the implementation
of the enhanced Department of Veterans Affairs disability
compensation system as determined in accordance with section
206.
(2) Anticipation of implementation.--The Secretary of
Defense shall take appropriate actions to ensure that the
amendments made by this section are implementable on the
effective date described in paragraph (1) in the event of the
implementation of the enhanced Department of Veterans Affairs
disability compensation system on that date.

SEC. 102. CONTINUATION OF RESPITE CARE AND AID AND OTHER EXTENDED CARE
BENEFITS FOR MEMBERS OF THE UNIFORMED SERVICES WHO INCUR
A SERIOUS INJURY OR ILLNESS ON ACTIVE DUTY.

Paragraph (4) of section 1074(c) of title 10, United States Code,
as added by section 1633(a) of the Wounded Warrior Act (title XVI of
the National Defense Authorization Act for Fiscal Year 2008), is
amended--
(1) by redesignating subparagraph (B) as subparagraph (C);
and
(2) by inserting after subparagraph (A) the following new
subparagraph (B):
``(B) Coverage for a member under this paragraph may continue for
such period after the discharge or separation of the member from active
duty as the Secretary considers appropriate.''.

TITLE II--COMPENSATION OF VETERANS FOR SERVICE-CONNECTED DISABILITY

SEC. 201. STUDY ON VETERANS DISABILITY COMPENSATION.

(a) In General.--The Secretary of Veterans Affairs shall conduct a
study to determine the amount of compensation for service-connected
disability to be payable to veterans under chapter 12 of title 38,
United States Code (as added by section 207(b) of this Act), for each
rating of disability assignable to veterans for service-connected
disability.
(b) Matters To Be Examined.--In conducting the study required by
subsection (a), the Secretary shall examine the following:
(1) The nature of injuries and combination of injuries for
which disability compensation is payable under various
disability compensation programs of the Federal Government,
State governments, and other countries.
(2) To the extent applicable, the nature of injuries and
combination of injuries for which disability compensation is
payable under commercial disability insurance.
(3) The extent to which quality of life and loss of
earnings are independently taken into account in various
disability compensation programs of the Federal Government,
State governments, and other countries.
(4) The effect of an injury or combination of injuries on--
(A) average loss of earning capacity, such as
inability to work in certain occupations; and
(B) a veteran's quality of life, such as activities
of independent living, recreational and community
activities, and personal relationships, including the
inability to participate in favorite activities, social
problems related to disfigurement or cognitive
difficulties, and the need to spend increased amounts
of time performing activities of daily living.
(5) The measurement of the effect of an injury or
combination of injuries on a veteran's psychological state,
loss of physical integrity, and social inability to adapt.
(6) The extent to which disability compensation for
veterans may be used as an incentive to encourage veterans to
seek and undergo appropriate medical treatment and vocational
rehabilitation.
(c) Considerations in Determinations of Amounts of Compensation.--
(1) General considerations.--In determining amounts of
compensation under the study required by subsection (a), the
Secretary shall ensure that the determinations--
(A) reflect current concepts of medicine and
disability; and
(B) take into account loss of quality of life and
average loss of earning capacity resulting from
specific injuries or combinations of injuries.
(2) Specific considerations.--In determining amounts of
compensation, the Secretary shall consider the following:
(A) The appropriate injuries or combination of
injuries to be covered by the new schedule for rating
service-connected disabilities.
(B) The appropriate level of compensation under
that schedule for loss of quality of life.
(C) The appropriate standards for determining for
purposes of that schedule whether an injury or
combination of injuries has caused a loss in a
veteran's quality of life.
(D) The appropriate level of compensation,
including an age-appropriate level of compensation at
time of initial filing of claims, under that schedule
for loss of earnings.
(E) The appropriate standards for purposes of that
schedule for determining whether an injury or
combination of injuries causes loss of earnings.
(F) The appropriate relationship between the
receipt of compensation under that schedule, and, where
appropriate, assurances by the veterans concerned of
participation in a regimen of medical treatment or
vocational rehabilitation.
(d) Consultation.--In conducting the study required by subsection
(a), the Secretary--
(1) shall consult with such veterans and military service
organizations and with such public and private organizations
and individuals as the Secretary considers appropriate; and
(2) may employ consultants.
(e) Consideration of Completed and On-Going Studies.--In conducting
the study required by subsection (a), the Secretary may take into
account the findings, determinations, and results of any completed or
on-going study or report applicable to the matters addressed by the
study required by subsection (a) that the Secretary considers
appropriate.
(f) Report.--Not later than 270 days after the commencement of the
study required by subsection (a), the Secretary shall submit to the
Committee on Veterans' Affairs of the Senate and the Committee on
Veterans' Affairs of the House of Representatives a report on the
study. The report shall include the following:
(1) The findings of the Secretary under the study.
(2) The findings of the Secretary with respect to matters
covered by the study arising from--
(A) the report of the Veterans' Disability Benefits
Commission established pursuant to section 1501 of the
National Defense Authorization Act of 2004 (38 U.S.C.
1101 note); and
(B) the reports of any other independent advisory
commission that has studied the matters covered by the
study as the Secretary considers appropriate.
(3) The recommendations of the Secretary on the matters
considered under subparagraphs (A), (C), (E), and (F) of
subsection (c)(2), including a proposal for such legislative or
administrative action as the Secretary considers appropriate to
implement the recommendations.

SEC. 202. STUDY ON VETERANS TRANSITION BENEFITS.

(a) In General.--The Secretary of Veterans Affairs shall conduct a
study to determine the appropriate amounts and duration of transition
payments to be payable under chapter 12 of title 38, United States Code
(as added by section 207(b) of this Act), including the amount of
monthly transition payments to be payable under section 1204(b) of
title 38, United States Code (as so added), and the amount and duration
of rehabilitation transition allowances to be payable under section
1204(c) of title 38, United States Code (as so added), to veterans who
are participating in a rehabilitation program under chapter 17 or 31 of
title 38, United States Code.
(b) Considerations.--In determining under subsection (a) the amount
and duration of rehabilitation transition allowances to be payable
under section 1204(c) of title 38, United States Code (as so added), to
veterans who are participating in a rehabilitation program under
chapter 17 or 31 of title 38, United States Code, the Secretary shall
take into account the prohibition in paragraph (7) of such section
1204(c) on the payment of subsistence allowances otherwise authorized
by section 3108 of title 38, United States Code, to veterans paid
rehabilitation transition allowances under such section 1204(c).
(c) Consultation.--In conducting the study required by subsection
(a), the Secretary--
(1) shall consult with such veterans and military service
organizations and with such public and private organizations
and individuals as the Secretary considers appropriate; and
(2) may employ consultants.
(d) Consideration of Completed and On-Going Studies.--In conducting
the study required by subsection (a), the Secretary may take into
account the findings, determinations, and results of any completed or
on-going study or report applicable to the matters addressed by the
study required by subsection (a) that the Secretary considers
appropriate.
(e) Report.--Not later than 270 days after the commencement of the
study required by subsection (a), the Secretary shall submit to the
Committee on Veterans' Affairs of the Senate and the Committee on
Veterans' Affairs of the House of Representatives a report on the
study. The report shall include the following:
(1) The findings of the Secretary under the study.
(2) The findings of the Secretary with respect to matters
covered by the study arising from--
(A) the report of the Veterans' Disability Benefits
Commission established pursuant to section 1501 of the
National Defense Authorization Act of 2004 (38 U.S.C.
1101 note); and
(B) the reports of such other independent advisory
commissions that have studied the matters covered by
the study as the Secretary considers appropriate.

SEC. 203. STUDY ON MEASURES TO ASSIST AND ENCOURAGE VETERANS IN THE
COMPLETION OF THEIR VOCATIONAL REHABILITATION PLANS.

(a) In General.--The Secretary of Veterans Affairs shall conduct a
study to identify the following:
(1) The various factors that may prevent or preclude
veterans from completing their vocational rehabilitation plans
through the Department of Veterans Affairs or otherwise
achieving the vocational rehabilitation objectives of such
plans.
(2) Actions to be taken by the Secretary to assist and
encourage veterans in overcoming such factors and in otherwise
completing their vocational rehabilitation plans or achieving
the vocational rehabilitation objectives of such plans.
(b) Matters To Be Examined.--In conducting the study required by
subsection (a), the Secretary shall examine the following:
(1) Measures utilized in other disability systems in the
United States, and in other countries, to encourage completion
of vocational rehabilitation.
(2) Any survey data available to the Secretary that relates
to the matters covered by the study.
(3) The results of the studies conducted pursuant to
sections 201 and 202, including any analysis for purposes of
such studies of the extent to which disability compensation may
be used as an incentive to encourage veterans to undergo and
complete vocational rehabilitation.
(4) The report of the Veterans' Disability Benefits
Commission established pursuant to section 1501 of the National
Defense Authorization Act of 2004 (38 U.S.C. 1101 note).
(5) The report of the President's Commission on Care for
America's Returning Wounded Warriors.
(c) Considerations.--In conducting the study required by subsection
(a), the Secretary shall consider--
(1) the extent to which bonus payments or other incentives
may be used to encourage veterans to complete their vocational
rehabilitation plans or otherwise achieve the vocational
rehabilitation objectives of such plans; and
(2) such other matters as the Secretary considers
appropriate.
(d) Consultation.--In conducting the study required by subsection
(a), the Secretary--
(1) shall consult with such veterans and military service
organizations and with such public and private organizations
and individuals as the Secretary considers appropriate; and
(2) may employ consultants.
(e) Report.--Not later than 270 days after the commencement of the
study required by subsection (a), the Secretary shall submit to the
Committee on Veterans' Affairs of the Senate and the Committee on
Veterans' Affairs of the House of Representatives a report on the
study. The report shall include the following:
(1) The findings of the Secretary under the study.
(2) Any recommendations that the Secretary considers
appropriate for actions to be taken by the Secretary in light
of the study, including a proposal for such legislative or
administrative action as the Secretary considers appropriate to
implement the recommendations.

SEC. 204. PROPOSAL ON VETERANS DISABILITY COMPENSATION AND VETERANS
TRANSITION BENEFITS.

Not later than one year after the later of the dates of the reports
required by sections 201(f) and 202(d), the Secretary of Veterans
Affairs shall submit to Congress a proposal setting forth the
following:
(1) A statement of the purpose or purposes of the
disability compensation and transition payments to be payable
to veterans under chapter 12 of title 38, United States Code
(as added by section 207(b) of this Act).
(2) A statement of the amounts of compensation for service-
connected disability to be payable to veterans under chapter 12
of title 38, United States Code (as so added), for each rating
of disability assignable to veterans for service-connected
disability.
(3) A statement of the amounts and duration of transition
benefits to be payable to veterans under chapter 12 of title
38, United States Code (as so added), including the amount of
monthly transition payments to be payable under section 1204(b)
of title 38, United States Code (as so added), and the amount
and duration of rehabilitation transition allowances to be
payable under section 1204(c) of title 38, United States Code
(as so added), to veterans who are participating in a
rehabilitation program under chapter 17 or 31 of title 38,
United States Code.

SEC. 205. CONGRESSIONAL CONSIDERATION OF PROPOSAL.

(a) Terms of Joint Resolution.--For purposes of this section, the
term ``joint resolution'' means only a joint resolution which is
introduced within the 10-day period beginning on the date on which the
Secretary of Veterans Affairs submits to Congress the proposal of the
Secretary of Veterans Affairs on veterans disability compensation and
veterans transition benefits under section 204, and--
(1) which does not have a preamble;
(2) the matter after the resolving clause of which is as
follows: ``That Congress disapproves the proposal on veterans
disability compensation and veterans transition benefits under
section 204 of the Noble Warrior Act as submitted to Congress
on _____'', the blank space being filled in with the
appropriate date; and
(3) the title of which is as follows: ``Joint resolution
disapproving the proposal of the Secretary of Veterans Affairs
on veterans disability compensation and veterans transition
benefits under the Noble Warrior Act.''.
(b) Referral.--A resolution described in subsection (a) that is
introduced in the House of Representatives shall be referred to the
Committee on Veterans' Affairs of the House of Representatives. A
resolution described in subsection (a) introduced in the Senate shall
be referred to the Committee on Veterans' Affairs of the Senate.
(c) Discharge.--If the committee to which a resolution described in
subsection (a) is referred has not reported such resolution (or an
identical resolution) by the end of the 60-day period beginning on the
date on which the Secretary of Veterans Affairs submits to Congress the
proposal under section 204, such committee shall be, at the end of such
period, discharged from further consideration of such resolution, and
such resolution shall be placed on the appropriate calendar of the
House involved.
(d) Consideration.--
(1) On or after the third day after the date on which the
committee to which such a resolution is referred has reported,
or has been discharged (under subsection (c)) from further
consideration of, such a resolution, it is in order (even
though a previous motion to the same effect has been disagreed
to) for any Member of the respective House to move to proceed
to the consideration of the resolution. A Member may make the
motion only on the day after the calendar day on which the
Member announces to the House concerned the Member's intention
to make the motion, except that, in the case of the House of
Representatives, the motion may be made without such prior
announcement if the motion is made by direction of the
committee to which the resolution was referred. All points of
order against the resolution (and against consideration of the
resolution) are waived. The motion is highly privileged in the
House of Representatives and is privileged in the Senate and is
not debatable. The motion is not subject to amendment, or to a
motion to postpone, or to a motion to proceed to the
consideration of other business. A motion to reconsider the
vote by which the motion is agreed to or disagreed to shall not
be in order. If a motion to proceed to the consideration of the
resolution is agreed to, the respective House shall immediately
proceed to consideration of the joint resolution without
intervening motion, order, or other business, and the
resolution shall remain the unfinished business of the
respective House until disposed of.
(2) Debate on the resolution, and on all debatable motions
and appeals in connection therewith, shall be limited to not
more than 2 hours, which shall be divided equally between those
favoring and those opposing the resolution. An amendment to the
resolution is not in order. A motion further to limit debate is
in order and not debatable. A motion to postpone, or a motion
to proceed to the consideration of other business, or a motion
to recommit the resolution is not in order. A motion to
reconsider the vote by which the resolution is agreed to or
disagreed to is not in order.
(3) Immediately following the conclusion of the debate on a
resolution described in subsection (a) and a single quorum call
at the conclusion of the debate if requested in accordance with
the rules of the appropriate House, the vote on final passage
of the resolution shall occur.
(4) Appeals from the decisions of the Chair relating to the
application of the rules of the Senate or the House of
Representatives, as the case may be, to the procedure relating
to a resolution described in subsection (a) shall be decided
without debate.
(e) Consideration by Other House.--
(1) If, before the passage by one House of a resolution of
that House described in subsection (a), that House receives
from the other House a resolution described in subsection (a),
then the following procedures shall apply:
(A) The resolution of the other House shall not be
referred to a committee and may not be considered in
the House receiving it except in the case of final
passage as provided in subparagraph (B)(ii).
(B) With respect to a resolution described in
subsection (a) of the House receiving the resolution--
(i) the procedure in that House shall be
the same as if no resolution had been received
from the other House; but
(ii) the vote on final passage shall be on
the resolution of the other House.
(2) Upon disposition of the resolution received from the
other House, it shall no longer be in order to consider the
resolution that originated in the receiving House.
(f) Rules of the Senate and House.--This section is enacted by
Congress--
(1) as an exercise of the rulemaking power of the Senate
and House of Representatives, respectively, and as such it is
deemed a part of the rules of each House, respectively, but
applicable only with respect to the procedure to be followed in
that House in the case of a resolution described in subsection
(a), and it supersedes other rules only to the extent that it
is inconsistent with such rules; and
(2) with full recognition of the constitutional right of
either House to change the rules (so far as relating to the
procedure of that House) at any time, in the same manner, and
to the same extent as in the case of any other rule of that
House.

SEC. 206. EFFECTIVE DATE OF IMPLEMENTATION OF ENHANCED DEPARTMENT OF
VETERANS AFFAIRS DISABILITY COMPENSATION SYSTEM.

(a) In General.--For purposes of this Act and the amendments made
by this Act, the effective date of the implementation of the enhanced
Department of Veterans Affair disability compensation system is the
date, as provided in subsection (b), on which the authority of Congress
under section 205 to disapprove the proposal of the Secretary of
Veterans Affairs on veterans disability compensation and veterans
transition benefits under section 204 expires, but only if Congress
does not so disapprove the proposal of the Secretary before such date.
(b) Disapproval by Congress.--
(1) In general.--The Secretary of Veterans Affairs shall
not implement the enhanced Department of Veterans Affairs
disability compensation system if a joint resolution is
enacted, in accordance with section 205, disapproving the
proposal of the Secretary of Veterans Affairs on veterans
disability compensation and veterans transition benefits under
section 204 before the earlier of--
(A) the end of the 85-day period beginning on the
date on which the Secretary submits the proposal to
Congress; or
(B) the adjournment of Congress sine die for the
session during which the proposal is submitted.
(2) Computation of periods.--For purposes of paragraph (1)
and section 205, the days on which either House of Congress is
not in session because of an adjournment of more than three
days to a day certain shall be excluded in the computation of a
period.
(c) Enhanced Department of Veterans Affairs Disability Compensation
System Defined.--For purposes of this Act and the amendments made by
this Act, the term ``enhanced Department of Veterans Affairs disability
compensation system'' means--
(1) the elements of the proposal of the Secretary of
Veterans Affairs on veterans disability compensation and
veterans transition benefits under section 204; and
(2) the amendments to section 1155 of title 38, United
States Code, made by section 207(a) of this Act; and
(3) chapter 12 of title 38, United States Code, as added by
section 207(b) of this Act.

SEC. 207. ENHANCED DEPARTMENT OF VETERANS AFFAIRS DISABILITY
COMPENSATION SYSTEM.

(a) Modification of Schedule of Ratings To Account for Loss of
Earning Capacity and Quality of Life.--
(1) In general.--Section 1155 of title 38, United States
Code, is amended to read as follows:
``Sec. 1155. Schedule for rating disabilities
``(a) In General.--The Secretary shall adopt and apply a schedule
of ratings of disability of veterans associated with specific injuries
or combinations of injuries.
``(b) Scope of Ratings.--(1) For veterans for whom disability
compensation is payable under this chapter, the ratings under
subsection (a) shall be based, as far as practicable, upon the average
impairments of earning capacity in civil occupations resulting from the
injuries concerned.
``(2) For veterans for whom disability compensation is payable
under chapter 12 of this title, the ratings shall reflect, as far as
practicable, each of the following:
``(A) Average loss of earning capacity, such as inability
to work in certain occupations.
``(B) Quality of life, such as activities of independent
living, recreational and community activities, and personal
relationships, including the inability to participate in
favorite activities, social problems related to disfigurement
or cognitive difficulties, and the need to spend increased
amounts of time performing activities of daily living.
``(c) Grades of Disability.--(1) For veterans for whom disability
compensation is payable under this chapter, the schedule of ratings
shall be constructed so as to provide ten grades of disability and no
more, upon which payments of compensation shall be based, namely 10
percent, 20 percent, 30 percent, 40 percent, 50 percent, 60 percent, 70
percent, 80 percent, 90 percent, and total, 100 percent.
``(2) For veterans for whom disability compensation is payable
under chapter 12 of this title, the schedule of ratings shall be
constructed--
``(A) at the discretion of the Secretary in light of the
study required by section 201 of the Noble Warrior Act, so as
to provide such number of grades of disability as the Secretary
considers appropriate;
``(B) at the discretion of the Secretary in light of the
study referred to in subparagraph (A), so as to provide
either--
``(i) the assignment to veterans of separate grades
of disability reflecting each matter specified in
subparagraphs (A) and (B) of subsection (b)(2); or
``(ii) the assignment to veterans of a single grade
of disability reflecting both such matters; and
``(C) if provided in the schedule at the discretion of the
Secretary in light of the study referred to in subparagraph
(A), so as to reflect in the grade of disability assignable to
a veteran for average loss of earning capacity the effect of
the age of the veteran on the potential future earnings of the
veteran at the time of assignment.
``(d) Adjustment.--The Secretary shall from time to time adjust the
schedule of ratings in accordance with experience.
``(e) Preservation of Rating.--(1) Except as provided in paragraph
(2), an adjustment in the schedule of ratings under subsection (d)
shall not cause a veteran's disability rating in effect on the
effective date of the adjustment to be reduced unless an improvement in
the veteran's disability is shown to have occurred.
``(2) An adjustment in the schedule of ratings may result in a
reduction in a veteran's disability rating as provided in section 1205
of this title.''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 11 of such title is amended by striking
the item relating to section 1155 and inserting the following
new item:

``1155. Schedule for rating disabilities.''.
(3) Effective date.--Except as provided in paragraph (4),
this subsection and the amendments made by this subsection
shall take effect, if at all, on the effective date of the
implementation of the enhanced Department of Veterans Affairs
disability compensation system as determined in accordance with
section 206.
(4) Anticipation of implementation.--The Secretary of
Veterans Affairs shall take appropriate actions to ensure that
the amendments made by this subsection are implementable on the
effective date described in paragraph (3) in the event of the
implementation of the enhanced Department of Veterans Affairs
disability compensation system on that date.
(b) Disability Compensation for Loss of Earning Capacity and
Quality of Life and Transition Payments for Participation in Medical or
Rehabilitational Regimen.--
(1) In general.--Part II of title 38, United States Code,
is amended by inserting after chapter 11 the following new
chapter:

``CHAPTER 12--COMPENSATION AND TRANSITION PAYMENTS FOR SERVICE-
CONNECTED DISABILITY

``Sec.
``1201. Compensation for service-connected disability: veterans not
rated as service-connected disabled who
file claims for compensation on or after
implementation of enhanced Department of
Veterans Affairs disability compensation
system.
``1202. Compensation for service-connected disability: veterans rated
as service-connected disabled as of
implementation of enhanced Department of
Veterans Affairs disability compensation
system who file claims on or after
implementation.
``1203. Rates of compensation.
``1204. Transition benefits: payments; allowances.
``1205. Periodic review of extent of disability.
``1206. Prohibition on duplication of benefits.
``Sec. 1201. Compensation for service-connected disability: veterans
not rated as service-connected disabled who file claims
for compensation on or after implementation of enhanced
Department of Veterans Affairs disability compensation
system
``(a) In General.--In the case of a veteran who has not been rated
as having a service-connected disability under chapter 11 of this title
as of the effective date of the implementation of the enhanced
Department of Veterans Affairs disability compensation system (as
determined in accordance with section 206 of the Noble Warrior Act) and
who files with the Secretary a claim with respect to disability on or
after that effective date, for disability resulting from personal
injury suffered or disease contracted in line of duty, or from
aggravation of a preexisting injury suffered or disease contracted in
line of duty, in the active military, naval, or air service, the United
States will pay such veteran thus disabled and who was discharged or
released under conditions other than dishonorable from the period of
service in which such injury or disease was incurred, or preexisting
injury or disease was aggravated, compensation as provided in section
1203 of this title, but no compensation shall be paid if the disability
is a result of such veteran's own willful misconduct or abuse of
alcohol or drugs.
``(b) Rating of Disability.--The rating of disability for which
compensation is payable under this section shall be assigned utilizing
the schedule of ratings under section 1155 of this title that is
applicable to veterans for whom disability compensation is payable
under this chapter.
``(c) Limitations.--(1) The payment of compensation pursuant to
this section shall be subject to the provisions of sections 5110 and
5112 of this title.
``(2) Compensation shall not be paid under this section to a
veteran who is retired for disability under subchapter II of chapter 61
of title 10 pursuant to section 1206a of that title for any period
before the first day following termination of the veteran's receipt of
benefits under section 1204 of this title.
``Sec. 1202. Compensation for service-connected disability: veterans
rated as service-connected disabled as of implementation
of enhanced Department of Veterans Affairs disability
compensation system who file claims on or after
implementation
``(a) In General.--In the case of a veteran who is rated as having
a service-connected disability under chapter 11 of this title as of the
effective date of the implementation of the enhanced Department of
Veterans Affairs disability compensation system (as determined in
accordance with section 206 of the Noble Warrior Act) who files with
the Secretary a claim with respect to such disability or disabilities,
or another disability, on or after that date, for disability resulting
from personal injury suffered or disease contracted in line of duty, or
from aggravation of a preexisting injury suffered or disease contracted
in line of duty, in the active military, naval, or air service, the
United States will pay such veteran thus disabled and who was
discharged or released under conditions other than dishonorable from
the period of service in which such injury or disease was incurred, or
preexisting injury or disease was aggravated, compensation as provided
in section 1203 of this title, but no compensation shall be paid if
such disability is a result of such veteran's own willful misconduct or
abuse of alcohol or drugs.
``(b) Rating of Disability.--The rating of disability for which
compensation is payable under this section shall--
``(1) take into account all service-connected disabilities
of the veteran concerned, including any disability for which
such veteran was rated as having a service-connected as
described in subsection (a) and the disability with respect to
which such veteran files a claim as described in that
subsection; and
``(2) be assigned utilizing the schedule of ratings under
section 1155 of this title that is applicable to veterans for
whom disability compensation is payable under this chapter.
``(c) Limitation.--The payment of compensation pursuant to this
section shall be subject to the provisions of sections 5110 and 5112 of
this title.
``Sec. 1203. Rates of compensation
``(a) In General.--For purposes of sections 1201 and 1202 of this
title, the rates of compensation payable for disabilities shall be the
applicable rates specified for grade of disability in the proposal of
the Secretary of Veterans Affairs under section 204(2) of the Noble
Warrior Act.
``(b) Reduction for Persons Incarcerated for Conviction of a
Felony.--The payment of compensation for disabilities under sections
1201 and 1202 shall be subject to the provisions of section 5313 of
this title.
``(c) Source of Funds.--Amounts for the payment of compensation
under this section shall be derived from amounts available in the
Compensation and Pension account of the Department of Veterans Affairs.
``Sec. 1204. Transition benefits: payments; allowances
``(a) Eligible Veterans.--For purposes of this section, an eligible
veteran is any veteran who is retired under subchapter II of chapter 61
of title 10 pursuant to section 1206a of that title.
``(b) Monthly Transition Payments.--(1) Subject to the provisions
of this subsection, the Secretary shall pay to each eligible veteran a
monthly transition payment.
``(2) A veteran entitled to monthly transition payments under this
subsection shall be paid--
``(A) a monthly transition payment in an amount equal to
the amount specified with respect to the veteran in the
proposal of the Secretary of Veterans Affairs under section
204(3) of the Noble Warrior Act for each of the first three
months beginning on the date of the veteran's retirement as
described in paragraph (1); and
``(B) a one-time prorated payment of such amount for the
remaining portion of the month in which the retirement of the
veteran occurred.
``(3) No payment shall be made to a veteran under this subsection
for any period for which a rehabilitation transition allowance is paid
the veteran under subsection (c).
``(c) Rehabilitation Transition Allowance.--(1) Subject to the
provisions of this subsection, the Secretary shall pay to each eligible
veteran who is participating in a rehabilitation program under chapter
17 or 31 of this title a monthly rehabilitation transition allowance
described in paragraph (3) during the period described in paragraph
(4).
``(2)(A) For purposes of this subsection, a veteran shall be
treated as participating in a rehabilitation program under chapter 17
of this title if, as determined by the Secretary, the veteran is
participating in an intensive treatment program under that chapter for
a service-connected disability which program is intended to assist the
veteran in restoring the veteran's ability to obtain and maintain
substantially gainful employment.
``(B) For purposes of this subsection, a veteran shall be treated
as participating in a rehabilitation program under chapter 31 of this
title during any period, as determined by the Secretary, during which
the veteran is eligible, notwithstanding paragraph (7), for the
subsistence allowance authorized by section 3108(a)(1) of this title.
``(3)(A) The amount of the monthly rehabilitation transition
allowance payable to a veteran under this subsection is the amount
equal to the amount specified with respect to the veteran in the
proposal of the Secretary of Veterans Affairs under section 204(3) of
the Noble Warrior Act.
``(B) For any month in which an eligible veteran participates in a
rehabilitation program described in paragraph (1) for less than the
full month, the amount payable to the veteran under this paragraph
shall be prorated for the portion of the month in which the veteran so
participates.
``(C) In the case of a veteran entitled to assistance under this
subsection who is participating in a rehabilitation program that
includes paid training on the job, the Secretary may reduce the
veteran's rehabilitation transition allowance under this subsection by
one dollar for each dollar of wages, compensation, or other income paid
(directly or indirectly) by the employer to the veteran for such
training.
``(4) The period for which a monthly rehabilitation transition
allowance is payable to a veteran under this subsection is the period
specified with respect to the veteran in the proposal of the Secretary
of Veterans Affairs under section 204(3) of the Noble Warrior Act.
``(5) A veteran may be paid a rehabilitation transition allowance
under this subsection only if the veteran is complying substantially
with the individual rehabilitation or recovery plan developed by the
Secretary for purposes of the rehabilitation program described in
paragraph (1).
``(6)(A) Except as provided in subparagraph (B), no rehabilitation
transition allowance may be paid under this subsection to a veteran who
is participating in a vocational rehabilitation program under chapter
31 of this title while such veteran is incarcerated in a Federal,
State, local, or other penal institution or correctional facility for
conviction of a felony.
``(B) Subparagraph (A) shall not apply to a veteran who is
participating in a vocational rehabilitation program while residing in
a halfway house or participating in a work-release program in
connection with the veteran's conviction of a felony.
``(7) A veteran paid a rehabilitation transition allowance for a
month under this subsection may not be paid the subsistence allowance
otherwise authorized for the veteran under section 3108 of this title
for that month.
``(d) Source of Funds.--Amounts for payments under this section
shall be derived from amounts available in the Readjustment Benefits
account of the Department of Veterans Affairs.
``Sec. 1205. Periodic review of extent of disability
``(a) In General.--Except as provided under this section, the
Secretary shall--
``(1) reevaluate and adjust, if appropriate, the disability
rating of each veteran entitled to compensation under section
1201 or 1202 of this title, as the Secretary considers
appropriate; and
``(2) adjust the rate of compensation payable to such
veteran under section 1203 of this title according to the new
disability rating as adjusted under paragraph (1) and to any
adjustment of the schedule of ratings under section 1155 of
this title applicable to veterans for whom compensation is
payable under this chapter that has occurred since the
preceding assignment of a disability rating to such veteran.
``(b) Frequency of Reevaluations and Adjustments.--The Secretary
shall carry out the reevaluations and adjustments required by
subsection (a) with respect to a veteran described in that subsection
with such frequency as the Secretary considers appropriate. In making a
determination regarding the appropriate frequency of reevaluations for
a veteran, the Secretary shall be guided by recommendations made by an
examining physician or other appropriate medical professional who has
evaluated the veteran and by such other factors as the Secretary
considers appropriate.
``(c) Reevaluation at Request of Veteran.--At the request of a
veteran receiving compensation under section 1201 or 1202 of this
title, the Secretary may--
``(1) reevaluate and adjust, if appropriate, the disability
rating of the veteran as the Secretary considers appropriate;
and
``(2) adjust the rate of compensation payable to such
veteran under section 1203 of this title according to the new
disability rating as adjusted under paragraph (1) and to any
adjustment of the schedule of ratings under section 1155 of
this title applicable to veterans for whom compensation is
payable under this chapter that has occurred since the
preceding assignment of a disability rating to such veteran.
``Sec. 1206. Prohibition on duplication of benefits
``(a) In General.--A veteran entitled to compensation under section
1201 or 1202 of this title is not entitled to compensation under
chapter 11 of this title.
``(b) Preservation of Entitlement Under Other System.--(1)(A)
Except as provided in paragraph (2), any veteran in receipt of
compensation under chapter 11 of this title (other than compensation
paid as a result of a temporary rating of disability) as of the
effective date of the implementation of the enhanced Department of
Veterans Affairs disability compensation system (as determined in
accordance with section 206 of the Noble Warrior Act) shall remain
entitled to compensation in accordance with the provisions of chapter
11 of this title after that date.
``(B) For provisions relating to the protection of ratings of
disability of veterans covered by subparagraph (A), see section 110(c)
of this title.
``(2)(A) The entitlement to compensation of, and amount of
compensation payable to, a veteran described in paragraph (1) who files
a claim for compensation under this title on or after the effective
date of the implementation of the enhanced Department of Veterans
Affairs disability compensation system shall be determined in
accordance with the facts found under the provisions of section 1155 of
this title and this chapter as such provisions are in effect on the
date of the filing of the claim.
``(B) The objection of a veteran to a proposed reduction in rating
of service-connected disability or other response of a veteran to a
proposed adverse action by the Secretary concerning compensation for a
service-connected disability under chapter 11 of this title shall not
be treated as a claim for purposes of subparagraph (A).''.
(2) Clerical amendments.--The table of chapters at the
beginning of title 38, United States Code, and the beginning of
part II of such title, are each amended by inserting after the
item related to chapter 11 the following new item:

``12. Compensation and Transition Payments for Service-         1201''.
Connected Disability.
(3) Disability evaluations subject to reevaluation.--
Section 110 of title 38, United States Code, is amended--
(A) in the first sentence, by striking ``A rating''
and inserting ``(a) Except as otherwise provided in
this title, a rating'';
(B) by designating the second sentence as
subsection (b) and indenting such subsection, as so
designated, two ems from the left margin;
(C) in subsection (b), as so designated, by
striking ``A disability'' and inserting ``Except as
otherwise provided in this title, a disability''; and
(D) by adding at the end the following new
subsection:
``(c) The rating of disability assigned to a veteran who continues
to remain entitled to compensation under chapter 11 of this title after
the effective date of the implementation of the enhanced Department of
Veterans Affairs disability compensation system (as determined in
accordance with section 206 of the Noble Warrior Act) by reason of
section 1206(b) of this title may not be reduced while the veteran
continues to remain so entitled, except upon a showing that such rating
was based on fraud.''.
(4) Matters not subject to review.--Notwithstanding any
other provision of law, the following matters shall not be
subject to review by any other official or by any court,
whether by an action in the nature of mandamus or otherwise:
(A) Any rate of disability compensation payable
under chapter 12 of title 38, United States Code (as
amended by this subsection), that is prescribed by the
Secretary of Veterans Affairs for purposes of the
proposal under section 204(2) .
(B) Any amount of monthly transition payments
payable under section 1204(b) of title 38, United
States Code (as so amended), that is specified by the
Secretary for purposes of the proposal under section
204(3).
(C) Any amount or duration of rehabilitation
transition allowances payable under section 1204(c) of
title 38, United States Code (as so amended), that is
specified by the Secretary for purposes of the proposal
under section 204(3).
(5) Treatment of veterans with pending claims.--In the case
of a veteran whose claim for disability compensation under
title 38, United States Code, is pending an initial decision
from the Secretary of Veterans Affairs, or is on appeal
(whether before the Board of Veterans' Appeals, the United
States Court of Appeals for Veterans Claims, or otherwise), as
of the effective date of the implementation of the enhanced
Department of Veterans Affairs disability compensation system
(as determined in accordance with section 206), the Secretary
shall treat such claim as a claim for compensation payable
under chapter 11 of title 38, United States Code.
(6) Effective date.--Except as provided in paragraph (7),
this subsection and the amendments made by this subsection
shall take effect, if at all, on the effective date of the
implementation of the enhanced Department of Veterans Affairs
disability compensation system as determined in accordance with
section 206.
(7) Anticipation of implementation.--The Secretary of
Veterans Affairs shall take appropriate actions to ensure that
this subsection and the amendments made by this subsection are
implementable on the effective date described in paragraph (6)
in the event of the implementation of the enhanced Department
of Veterans Affairs disability compensation system on that
date.
(c) Expanded Retroactivity of Award of Compensation.--
(1) In general.--Section 5110(g) of title 38, United States
Code, is amended--
(A) by inserting ``(1)'' after ``(g)''; and
(B) by striking the second sentence and inserting
the following new paragraph:
``(2) Subject to the limitation in paragraph (1) and except as
provided in paragraph (3), an award or increase described in paragraph
(1) may not be retroactive for more than one year from the date of
application therefore or the date of administrative determination of
entitlement, whichever is earlier.
``(3) Subject to the limitation in paragraph (1), an award or
increase described in that paragraph pursuant to the amendment to
section 1155 of this title or chapter 12 of this title made by section
207 of the Noble Warrior Act under an application therefor filed during
the three-year period beginning on the effective date of the
implementation of the enhanced Department of Veterans Affairs
disability compensation system (as determined in accordance with
section 206 of that Act) may be retroactive for three years from the
date of application or date of administrative determination of
entitlement, whichever is earlier.''.
(2) Effective date.--The amendments made by this subsection
shall take effect, if at all, on the effective date of the
implementation of the enhanced Department of Veterans Affairs
disability compensation system as determined in accordance with
section 206.
(d) Expedited Claims Processing During Implementation of Enhanced
Disability Compensation System.--
(1) In general.--Effective as of the effective date of the
implementation of the enhanced Department of Veterans Affairs
disability compensation system as determined in accordance with
section 206, the Secretary of Veterans Affairs shall implement
appropriate mechanisms to expedite the processing of claims
anticipated to be submitted to the Secretary under that system
during the three-year period beginning on the effective date of
the implementation of that system.
(2) Elements.--The mechanisms implemented under this
subsection shall include the following:
(A) Mechanisms for affording appropriate priority
for processing among the claims submitted as described
in paragraph (1).
(B) Mechanisms for ensuring the appropriate
allocation of personnel and resources of the Department
of Veterans Affairs in order to facilitate an expedited
processing of such claims.
(C) Any other mechanisms that the Secretary
considers appropriate to facilitate an expedited
processing of such claims.
(3) Consultation in development of mechanisms.--The
Secretary shall consult with appropriate representatives of
veterans services organizations in developing the mechanisms to
be implemented under this subsection.
(4) Enhanced authority for processing claims.--
(A) In general.--Subject to subparagraph (B),
during the five-year period beginning on the effective
date of the implementation of the enhanced Department
of Veterans Affairs disability compensation system, the
Secretary may waive any provision or limitation of law
applicable to determinations on claims for compensation
for veterans under title 38, United States Code, if the
Secretary determines that the waiver of such provision
or limitation will further the expedited processing of
claims submitted as described in paragraph (1).
(B) Notice and wait.--The Secretary may not waive a
provision or limitation of law under subparagraph (A)
until 30 days after the date on which the Secretary
submits to the Committee Veterans' Affairs of the
Senate and the Committee on Veterans' Affairs of the
House of Representatives a report setting forth--
(i) the provision or limitation of law to
be waived and the duration of the waiver;
(ii) a statement of the reasons why the
waiver of the provision or limitation of law
will further the expedited processing of claims
submitted as described in paragraph (1); and
(iii) an estimate of the time anticipated
to be required to complete the processing of
claims under the waiver.

SEC. 208. SUPPLEMENTAL SURVIVOR BENEFIT FOR SURVIVORS OF VETERANS
RETIRED FOR DISABILITY AFTER IMPLEMENTATION OF ENHANCED
DEPARTMENT OF VETERANS AFFAIRS DISABILITY COMPENSATION
SYSTEM.

(a) Supplemental Survivor Benefit.--
(1) In general.--Part II of title 38, United States Code,
as amended by section 207(b) of this Act, is further amended by
inserting after chapter 13 the following new chapter:

``CHAPTER 14--SUPPLEMENTAL SURVIVOR BENEFIT FOR SURVIVORS OF VETERANS
RETIRED FOR DISABILITY AFTER IMPLEMENTATION OF ENHANCED DEPARTMENT OF
VETERANS AFFAIRS DISABILITY COMPENSATION SYSTEM

``Sec.
``1401. Definition.
``1402. Election of benefit.
``1403. Receipt of benefit.
``1404. Reduction of compensation; termination of reduction.
``1405. Offset for dependency and indemnity compensation.
``Sec. 1401. Definition
``In this chapter, the term `covered veteran' means a veteran
retired under subchapter II of chapter 61 of title 10 pursuant to
section 1206a of that title who is entitled to compensation for
service-connected disability under chapter 12 of this title.
``Sec. 1402. Election of benefit
``(a) In General.--A covered veteran may elect in accordance with
this section to provide a monthly supplemental survivor benefit under
this chapter to the veteran's survivors as follows:
``(1) The surviving spouse of the veteran.
``(2) The surviving children of the veteran.
``(b) Election by Veterans at Award of Compensation.--(1) If, at
the time of the award of compensation for service-connected disability
under chapter 12 of this title that qualifies such veteran as a covered
veteran, a veteran has a spouse, one or more children, or both, the
veteran shall elect to whom to provide a supplemental survivor benefit
under this chapter.
``(2) A veteran may provide the supplemental survivor benefit
referred to in paragraph (1) pursuant to an election under this
paragraph--
``(A) if the veteran has only a spouse at the time of the
election, to the surviving spouse of the veteran;
``(B) if the veteran has both a spouse and one or more
children at the time of the election--
``(i) to the surviving spouse of the veteran; or
``(ii) to the surviving children of the veteran; or
``(C) if the veteran is unmarried but has one or more
children at the time of the election, to the surviving children
of the veteran.
``(3)(A) If a veteran described by paragraph (2)(B) elects pursuant
to paragraph (1) to provide a supplemental survivor benefit under this
chapter to the surviving children of the veteran, the Secretary shall
notify the veteran's spouse of the election.
``(B) A veteran who makes an election described by subparagraph (A)
may later elect instead to provide a supplemental survivor benefit
under this chapter to the surviving spouse of the veteran, but only if
the veteran submits the election under this subparagraph to the
Secretary not later than 30 days after the date of the submittal of the
election described by subparagraph (A) to the Secretary.
``(4)(A) Except as provided in subparagraph (B), an election
pursuant to this subsection shall be effective as of the first day of
the first month after the election is received by the Secretary.
``(B) An election pursuant to this subsection that is described by
paragraph (3) shall be effective as of the first day of the first month
that begins more than 30 days after the election described by paragraph
(3)(A) is received by the Secretary.
``(5) Except as provided in subsection (c), a veteran who does not
make the election provided in this subsection at the time described in
paragraph (1) may not provide a supplemental survivor benefit under
this chapter.
``(6) Except as provided in subsections (c), (d), and (e), an
election pursuant to this subsection is irrevocable.
``(c) Election by Veterans Not Married at Award of Compensation Who
Later Marry.--(1) A veteran who is unmarried at the time of the award
of compensation for service-connected disability under chapter 12 of
this title that qualifies the veteran as a covered veteran and who
later marries may elect to provide a supplemental survivor benefit
under this chapter to the spouse of the veteran by such marriage.
``(2) An election pursuant to this subsection shall be effective
only if received by the Secretary not later than 60 days after the date
of the marriage concerned.
``(3) An election pursuant to this subsection shall be effective as
of the first day of the first month after the date the election is
received by the Secretary.
``(4) An election of a veteran pursuant to this subsection
supersedes the election, if any, of the veteran described in subsection
(b)(2)(C).
``(5) Except as provided in subsection (e), an election pursuant to
this subsection is irrevocable.
``(d) Election by Veterans Married at Award of Compensation Who
Later Remarry.--(1) A veteran who is married at the time of the award
of compensation for service-connected disability under chapter 12 of
this title that qualifies the veteran as a covered veteran, who made an
election provided in subsection (b) at that time, and who later
remarries may elect to provide a supplemental survivor benefit under
this chapter to the spouse of the veteran by such remarriage.
``(2) An election pursuant to this subsection shall be effective
only if received by the Secretary not later than 60 days after the date
of the marriage concerned.
``(3) An election pursuant to this subsection shall be effective as
of the first day of the first month after the date the election is
received by the Secretary.
``(4) An election of a veteran pursuant to this subsection
supersedes the election of the veteran under subsection (b).
``(5) Except as provided in subsection (e), an election pursuant to
this subsection is irrevocable.
``(e) Revocation of Election of Spouse Eligibility.--(1) A covered
veteran who has made an election under this section to provide a
supplemental survivor benefit to the surviving spouse of the veteran
may revoke the election.
``(2)(A) Except as provided in subparagraph (B), a veteran may
revoke an election under this subsection only with the concurrence of
the veteran's spouse.
``(B) A veteran may revoke an election under this subsection
without the concurrence of the veteran's spouse if the veteran
demonstrates to the satisfaction of the Secretary that--
``(i) the whereabouts of the spouse cannot be determined;
or
``(ii) because of exceptional circumstances, a requirement
that the veteran seek the concurrence of the spouse would be
unreasonable.
``(3) A revocation of an election under this subsection is
irrevocable.
``(f) Form of Elections.--Any election under this section
(including a revocation of election under subsection (e)) shall be made
in writing.
``(g) Notice Regarding Elections.--The Secretary shall take
appropriate actions to inform covered veterans of the elections
available to covered veterans under this subsection, including the
procedures and deadlines applicable to the making of such elections.
``Sec. 1403. Receipt of benefit
``(a) In General.--(1) Effective as of the first day of the first
month after the month in which a covered veteran who has made an
election under section 1402 of this title dies, a monthly supplemental
survivor benefit under this chapter in an amount equal to 55 percent of
the monthly compensation payable to the veteran under section 1203(a)
of this title at the time of the veteran's death shall be payable to
the individual or individuals provided for in such election in force at
the time of the veteran's death.
``(2) Any payment of a supplemental survivor benefit under this
section to the surviving children of a veteran shall be paid to the
surviving children in equal shares.
``(b) Eligibility of Surviving Spouse.--(1) In the event of the
death of a surviving spouse being paid a supplemental survivor benefit
under subsection (a), the surviving spouse shall be ineligible for the
benefit effective as of the first day of the first month after the date
of the surviving spouse's death.
``(2)(A) In the event a surviving spouse being paid a supplemental
survivor benefit under subsection (a) remarries before reaching the age
of 55, the surviving spouse shall be ineligible for the benefit
effective as of the first day of the first month after the date of the
surviving spouse's remarriage.
``(B) If the remarriage of a surviving spouse covered by
subparagraph (A) is terminated by the death of the surviving spouses's
spouse, annulment, or divorce, the eligibility of the surviving spouse
for the benefit shall recommence effective as of the first day of the
first month after the date on which the remarriage is so terminated.
``(3) A surviving spouse who is otherwise eligible for payment of
more than one supplemental survivor benefit under subsection (a) based
on marriages to more than one covered veteran shall elect which
marriage shall entitle the surviving spouse to payment of the benefit
for purposes of this chapter. Any election under this paragraph is
irrevocable.
``(c) Eligibility of Surviving Children.--(1) In the event the
surviving spouse of a veteran becomes ineligible for payment of a
supplemental survivor benefit under subsection (b), the surviving
children of the veteran shall become eligible for the benefit effective
as of the first day of the first month after the date in which the
surviving spouse becomes so ineligible.
``(2) In the event the surviving spouse of a veteran becomes re-
eligible for payment of a supplemental survivor benefit under
subsection (b)(2)(B), the surviving children of the veteran shall be
ineligible for the benefit effective as of the first day of the first
month after the date in which the surviving spouse becomes so re-
eligible.
``(3) In the event of the death of a surviving child being paid a
supplemental survivor benefit, the surviving child shall be ineligible
for the benefit effective as of the first day of the first month after
the surviving child's death, and the payment of the benefit to the
remaining surviving children (if any) of the veteran concerned shall be
adjusted accordingly effective as of that day.
``Sec. 1404. Reduction of compensation; termination of reduction
``(a) Reduction of Compensation.--Effective as of the effective
date of an election of a covered veteran under section 1402 of this
title to provide a monthly supplemental survivor benefit under this
chapter (as determined in accordance with applicable provisions of
section 1402 of this title), the amount of monthly compensation for
service-connected disability otherwise payable to the veteran under
section 1203(a) of this title shall be reduced by an amount equal to
6.5 percent of the amount of such monthly compensation.
``(b) Termination of Reduction in Connection With Benefit for
Surviving Spouse.--(1) In the case of a covered veteran who has elected
to provide a supplemental survivor benefit under this chapter to the
surviving spouse of the veteran, the reduction required by subsection
(a) shall terminate effective as of the first day of the first month
after--
``(A) the death of the spouse;
``(B) the revocation of the eligibility of the spouse for
the benefit under section 1402(e) of this title; or
``(C) the dissolution of the veteran's marriage to the
spouse through annulment or divorce.
``(2) If after the reduction required by subsection (a) is
terminated under paragraph (1)(C) a veteran elects under section
1402(d) of this title to provide the benefit to the surviving spouse of
the remarriage covered by such section 1402(d), the reduction required
by subsection (a) shall recommence effective as of the first day of the
first month after the date of the remarriage, and shall be subject to
subsequent termination in accordance with paragraph (1).
``(c) Termination of Reduction in Connection With Benefit for
Surviving Children.--In the case of a covered veteran who has elected
to provide a supplemental survivor benefit under this chapter to the
surviving children of the veteran, the reduction required by subsection
(a) shall terminate effective as of the first day of the first month
after--
``(1) the date of death of the last child of the veteran;
or
``(2) the date on which the last of the children of the
veteran is no longer treatable as a child under section 101 of
this title.
``(d) Limitation on Number of Months Subject to Reduction.--The
total number of months for which the monthly compensation of a covered
veteran is reduced under subsection (a) may not exceed 360 months.
``Sec. 1405. Offset for dependency and indemnity compensation
``(a) In General.--If an individual eligible for payment of a
monthly supplemental survivor benefit under this chapter based on the
death of a covered veteran is or becomes entitled to dependency and
indemnity compensation under chapter 13 of this title based on the
death of the veteran, the amount of the supplemental survivor benefit
paid the individual under this chapter for a month is the amount of the
benefit otherwise payable to the individual under section 1403 of this
title for that month minus the amount of the dependency and indemnity
compensation so payable to the individual for that month.
``(b) Effective Date.--The reduction of benefit of an individual
required by subsection (a) shall be effective as of the date of the
commencement of the payment of dependency and indemnity compensation to
the individual under chapter 13 of this title.
``(c) Reimbursement of Reduction in Compensation.--(1) If as a
result of subsection (a) no benefit otherwise payable to an individual
under section 1403 of this title with respect to a covered veteran is
payable to the individual under this chapter, an amount shall be paid
to the individual equal to the aggregate amount of the reduction under
section 1404(a) of this title of the monthly compensation otherwise
payable to the veteran.
``(2) If as a result of subsection (a) the amount of monthly
benefit otherwise payable to an individual under section 1403 of this
title with respect to a covered veteran is reduced (other than to
zero), an amount shall be paid to the individual equal to--
``(A) the aggregate amount of the reduction under section
1404(a) of this title of the monthly compensation otherwise
payable to the veteran; multiplied by
``(B) a number equal to 1 minus an amount equal to the
fraction--
``(i) whose numerator is the amount of the monthly
benefit payable to the individual under section 1403 of
this title as a result of the reduction under
subsection (a); and
``(ii) whose denominator is the amount of the
monthly benefit otherwise payable to the individual
under section 1403 of this title without regard to the
reduction under subsection (a).
``(3) Any amount payable under this subsection shall be paid, at
the election of the Secretary, in a lump sum or in such installments as
the Secretary shall specify for purposes of this subsection.''.
(2) Clerical amendments.--The tables of chapters at the
beginning of title 38, United States Code, and the beginning of
part II of such title, as amended by section 207(b) of this
Act, are each further amended by inserting after the item
relating to chapter 13 the following new item:

``14. Supplemental survivor benefit for survivors of            1401''.
veterans retired for disability
after implementation of enhanced
Department of Veterans Affairs
disability compensation system.
(b) Effective Date.--Except as provided in subsection (c), this
section and the amendments made by this section shall take effect, if
at all, on the effective date of the implementation of the enhanced
Department of Veterans Affairs disability compensation system as
determined in accordance with section 206.
(c) Anticipation of Implementation.--The Secretary of Veterans
Affairs shall take appropriate actions to ensure that the amendments
made by this section are implementable on the effective date described
in subsection (b) in the event of the implementation of the enhanced
Department of Veterans Affairs disability compensation system on that
date.
<all>