S. 1326

Comprehensive Veterans Benefits Improvements Act of 2007

Latest
Contents

II

110th CONGRESS

1st Session

S. 1326

IN THE SENATE OF THE UNITED STATES

May 8, 2007

Mr. Sanders introduced the following bill; which was read twice and referred to the Committee on Veterans' Affairs

A BILL

To amend title 38, United States Code, to improve and enhance compensation and pension, health care, housing, burial, and other benefits for veterans, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Comprehensive Veterans Benefits Improvements Act of 2007.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—Health Care Matters

Sec. 101. Enrollment of category 8 veterans in patient enrollment system.

Sec. 102. Health care for veterans who are catastrophically disabled.

Sec. 103. Repeal prior care requirement for eligibility for reimbursement for emergency treatment.

Sec. 104. Pilot program on lung cancer screening for veterans.

TITLE II—Compensation and Pension Matters

Sec. 201. Repeal of prohibition on concurrent receipt of compensation or pension and retired or retirement pay.

Sec. 202. Increase in certain rates of disability compensation.

Sec. 203. Provisions relating to service-connected hearing loss.

Sec. 204. Repeal of requirement of reduction of SBP survivor annuities by dependency and indemnity compensation.

Sec. 205. Increase in rate of dependency and indemnity compensation for surviving spouses of members of the Armed Forces who die on active duty.

Sec. 206. Reestablishment of age 55 as age of remarrying for retention of certain veterans survivor benefits for surviving spouses.

Sec. 207. Commencement of period of payment of compensation for temporary total service-connected disability attributable to hospitalization or treatment.

Sec. 208. Comptroller General report on adequacy of dependency and indemnity compensation to maintain survivors of veterans who die from service-connected disabilities.

TITLE III—Insurance Matters

Sec. 301. Reduction in premiums under Service-Disabled Veterans Insurance program.

TITLE IV—Burial and Memorial Matters

Sec. 401. Plot allowances.

Sec. 402. Funeral and burial expenses.

Sec. 403. Authorization of appropriations for State cemetery grants program for fiscal year 2008.

TITLE V—Housing Matters

Sec. 501. Grants for specially adapted housing for veterans.

Sec. 502. Veterans' mortgage life insurance.

Sec. 503. Selected Reserves serving at least 1 year eligible for housing loans.

Sec. 504. Housing loan fees adjusted to rates in effect before passage of Veterans Benefits Act of 2003.

TITLE VI—Benefits Administration

Sec. 601. Judicial review.

Sec. 602. Elimination of rounding down of certain cost-of-living adjustments.

Sec. 603. Clinical Information Data Exchange Bureau.

Sec. 604. Study and report on reforms to strengthen and accelerate the evaluation and processing of disability claims by the Departments of Veterans Affairs and Defense.

TITLE VII—Other Benefits Matters

Sec. 701. Automobile assistance allowance.

Sec. 702. Refund of individual contributions for educational assistance made by individuals prevented from pursuing educational programs due to nature of discharge.

Sec. 703. Comptroller General report on provision of assisted living benefits for veterans.

I

Health Care Matters

101.

Enrollment of category 8 veterans in patient enrollment system

(a)

Enrollment

Notwithstanding any other provision of law, the Secretary of Veterans Affairs shall permit each veteran described in paragraph (8) of section 1705(a) of title 38, United States Code, who presents for enrollment in the system of annual patient enrollment required by such section to enroll in such system for purposes of the receipt of care and services as specified in such section.

(b)

Effective date

This section shall take effect on October 1, 2007.

102.

Health care for veterans who are catastrophically disabled

(a)

Report on number of veterans wrongfully misclassified

Not later than 120 days after the date of the enactment of this Act, the Secretary of Veterans Affairs shall submit to Congress a report setting forth the number of veterans who were catastrophically disabled who were wrongfully misclassified as not being catastrophically disabled by reason and for the purposes of the administration of the amendments made by title I of the Veterans' Health Care Eligibility Reform Act of 1996 (Public Law 104–262).

(b)

Reclassification of veterans wrongfully misclassified

The Secretary shall reclassify as catastrophically disabled each veteran who was catastrophically disabled but was misclassified as not being catastrophically disabled by reason and for the purposes of the administration of the amendments made by title I of the Veterans' Health Care Eligibility Reform Act of 1996. Each veteran shall, upon such reclassification, be entitled to such benefits under the laws administered by the Secretary as any other veteran who is catastrophically disabled, including priority of eligibility of enrollment as a so-called category 4 veteran under the patient enrollment system of the Department of Veterans Affairs under section 1705 of title 38, United States Code.

(c)

Prohibition on collection of copayments and other fees for hospital or nursing home care

Section 1710 of title 38, United States Code, is amended—

(1)

by redesignating subsection (h) as subsection (i); and

(2)

by inserting after subsection (g) the following new subsection (h):

(h)

Notwithstanding any other provision of this section, a veteran who is catastrophically disabled shall not be required to make any payment otherwise required under subsection (f) or (g) for the receipt of hospital care or nursing home care under this section.

.

(d)

Effective date

Subsection (b) and the amendments made by subsection (c) shall take effect on October 1, 2007.

103.

Repeal prior care requirement for eligibility for reimbursement for emergency treatment

(a)

Repeal

Section 1725(b)(2) of title 38, United States Code, is amended by striking if— and all that follows and inserting if the veteran is enrolled in the system of patient enrollment established under section 1705(a) of this title..

(b)

Effective date

The amendment made by subsection (a) shall take effect on October 1, 2007.

104.

Pilot program on lung cancer screening for veterans

(a)

Pilot program

The Secretary of Veterans Affairs shall carry out a pilot program that provides for screening for lung cancer of veterans with a high risk of lung cancer.

(b)

Elements

(1)

In general

The pilot program under subsection (a) shall include such programs and activities as the Secretary considers appropriate to permit the Secretary to make a comprehensive assessment of the feasibility and advisability of various approaches for expanding the program within the Department of Veterans Affairs in order to conduct screenings of veterans for lung cancer on a wider scale.

(2)

Consultation

The Secretary shall carry out the pilot program in consultation with the International Early Lung Cancer Action Program and such other public and private entities as the Secretary considers appropriate for purposes of the pilot program.

(c)

Report

Not later than 2 years after the commencement of the pilot program under subsection (a), the Secretary shall submit to Congress a report on the pilot program. The report shall include—

(1)

a description of the programs and activities under the pilot program;

(2)

the comprehensive assessment of the Secretary described in subsection (b)(1);

(3)

recommendations, if any, for legislation necessary to implement on a wider basis a screening program for lung cancer of veterans; and

(4)

such other matters as the Secretary considers appropriate in light of the pilot program.

(d)

Authorization of appropriations

(1)

In general

There is hereby authorized to be appropriated for the Department of Veterans Affairs for fiscal year 2008, $3,000,000 to carry out this section.

(2)

Availability

The amount authorized to be appropriated by paragraph (1) shall remain available until expended.

II

Compensation and Pension Matters

201.

Repeal of prohibition on concurrent receipt of compensation or pension and retired or retirement pay

(a)

Repeal

(1)

In general

Section 5304(a) of title 38, United States Code, is amended to read as follows:

(a)
(1)
(A)

If an election is in effect under section 1413a of title 10, United States Code, with respect to any person, no pension or compensation under this title shall be made concurrently to the person based on the person's own service or concurrently to the person based on the service of any other person. This subparagraph shall not apply to the extent the person waives any applicable retired or retirement pay under subparagraph (B).

(B)

A person to whom subparagraph (A) applies who is receiving any applicable retired or retirement pay may file with the department paying such pay a waiver of so much of such pay as is equal to the amount of the pension or compensation to which subparagraph (A) otherwise applies. To prevent duplication of payment, the department with which any such waiver is filed shall notify the Secretary of the receipt of such waiver, the amount waived, and the effective date of the reduction in pay.

(2)

The annual amount of any applicable retired or retirement pay shall be counted as annual income for purposes of chapter 15 of this title.

(3)

In this subsection, the term applicable retired or retirement pay means retired or retirement pay paid under a provision of law providing retired or retirement pay to persons in the Armed Forces or to commissioned officers of the National Oceanic and Atmospheric Administration or of the Public Health Service.

.

(2)

Clerical amendments

(A)

The heading for section 5304 of such title is amended by striking Prohibition against and inserting Provisions relating to.

(B)

The item relating to section 5304 in the table of sections at the beginning of chapter 53 of such title is amended by striking Prohibition against and inserting Provisions relating to.

(b)

Conforming repeals

(1)

In general

Section 5305 of title 38, United States Code, and section 1414 of title 10, United States Code, are each repealed.

(2)

Clerical amendments

(A)

The table of sections at the beginning of chapter 53 of title 38, United States Code, is amended by striking the item relating to section 5305.

(B)

The table of sections at the beginning of chapter 71 of title 10, United States Code, is amended by striking the item relating to section 1414.

(c)

Conforming amendments to combat-related special compensation

(1)

Compensation only available to existing claimants

Section 1413a of title 10, United States Code, is amended by adding at the end the following new subsection:

(j)

Section only To apply to retirees in payment status on October 1, 2007

No payment under this section shall be made to an eligible combat-related disabled uniform services retiree for any month beginning after September 30, 2007, unless the retiree has an election in effect under this section for all months during the period beginning on October 1, 2007, and ending on the last day of the month to which the payment relates.

.

(2)

Clerical amendments

(A)

Subsection (f) of such section is amended to read as follows:

(f)

Revocation of election

The Secretary concerned shall provide for an annual period (referred to as an open season) during which a person with an election in effect under subsection (a) shall have the right to revoke such election. Any such election shall be made under regulations prescribed by the Secretary concerned and, once made, shall be irrevocable. Such regulations shall provide for the form and manner for making such an election and shall provide for the date as of when such an election shall become effective. In the case of the Secretary of a military department, such regulations shall be subject to approval by the Secretary of Defense.

.

(B)

Subsection (b)(2) of such section is amended by striking sections 5304 and 5305 of title 38 and inserting section 5304(a)(1) of title 38.

(d)

Other conforming amendments

(1)

Section 5111(b) of title 38, United States Code is amended to read as follows:

(b)

During the period between the effective date of an award or increased award as provided under section 5110 of this title or other provision of law and the commencement of the period of payment based on such award as provided under subsection (a) of this section, an individual entitled to receive monetary benefits shall be deemed to be in receipt of such benefits for the purpose of all laws administered by the Secretary.

.

(2)

Sections 1463(a)(1), 1465(c)(1)(A), 1465(c)(1)(B), and 1466(b)(1)(D) of title 10, United States Code, are each amended by striking or 1414.

(3)

Subparagraphs (A) and (B) of section 1465(c)(4) of title 10, United States Code, are each amended by striking sections 1413a and 1414 and inserting section 1413a.

(e)

Effective date

The amendments made by this section shall take effect on October 1, 2007, and shall apply with respect to payments of compensation or pension and retired or retirement pay made on or after that date. No benefits are payable by reason of the amendments made by this section for any period before October 1, 2007.

202.

Increase in certain rates of disability compensation

(a)

Fifty percent increase in certain rates

Subsection (k) of section 1114 of title 38, United States Code, is amended—

(1)

by striking $3,075 and inserting $4,613;

(2)

by striking $89 both places it appears and inserting $134; and

(3)

by striking $4,313 and inserting $6,470.

(b)

Twenty percent increase in certain other rates

Such section is further amended—

(1)

in subsection (l), by striking $3,075 and inserting $3,690;

(2)

in subsection (m), by striking $3,392 and inserting $4,070;

(3)

in subsection (n), by striking $3,860 and inserting $4,632;

(4)

in subsection (o), by striking $4,313 and inserting $5,176;

(5)

in subsection (p), by striking $4,313 each place it appears and inserting $5,176;

(6)

in subsection (r)—

(A)

in paragraph (1), by striking $1,851 and inserting $2,221; and

(B)

in paragraph (2) by striking $2,757 and inserting $3,308; and

(7)

in subsection (s), by striking $2,766 and inserting $3,319.

(c)

Effective date

The amendments made by this section shall take effect on the first day of the first month that begins on or after the date of the enactment of this Act, and shall apply with respect to monthly amounts of disability compensation payable on or after that day.

203.

Provisions relating to service-connected hearing loss

(a)

Minimum rating of disability for hearing loss requiring a hearing aid

Section 1155 of title 38, United States Code, is amended by adding at the end the following new sentence: The minimum rating of disability under the schedule adopted under this section for a veteran for a disability consisting of hearing loss for which the wearing of a hearing aid or hearing aids is medically indicated shall be a rating of 10 percent..

(b)

Presumption that hearing loss is service connected

Section 1112 of title 38, United States Code, is amended by adding at the end the following new subsection:

(d)

For purposes of section 1110 of this title, and subject to section 1113 of this title, if tinnitus or hearing loss typically related to noise exposure or acoustic trauma becomes manifest in a veteran who, during military service, performed duties typically involving high levels of noise exposure, the tinnitus or hearing loss shall be considered to have been incurred in or aggravated by such service, notwithstanding that there is no record of the disease during the period of service.

.

(c)

Effective date

The amendments made by this section shall take effect on October 1, 2007. No benefit is payable by reason of the amendments made by this section for any period before October 1, 2007.

204.

Repeal of requirement of reduction of SBP survivor annuities by dependency and indemnity compensation

(a)

Repeal

(1)

In general

Subchapter II of chapter 73 of title 10, United States Code, is amended as follows:

(A)

In section 1450, by striking subsection (c).

(B)

In section 1451(c)—

(i)

by striking paragraph (2); and

(ii)

by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively.

(2)

Conforming amendments

Such subchapter is further amended as follows:

(A)

In section 1450—

(i)

by striking subsection (e); and

(ii)

by striking subsection (k).

(B)

In section 1451(g)(1), by striking subparagraph (C).

(C)

In section 1452—

(i)

in subsection (f)(2), by striking does not apply— and all that follows and inserting does not apply in the case of a deduction made through administrative error.; and

(ii)

by striking subsection (g).

(D)

In section 1455(c), by striking , 1450(k)(2),.

(b)

Prohibition on Retroactive Benefits

No benefits may be paid to any person for any period before the effective date provided under subsection (f) by reason of the amendments made by subsection (a).

(c)

Prohibition on recoupment of certain amounts previously refunded to SBP recipients

A surviving spouse who is or has been in receipt of an annuity under the Survivor Benefit Plan under subchapter II of chapter 73 of title 10, United States Code, that is in effect before the effective date provided under subsection (f) and that is adjusted by reason of the amendments made by subsection (a) and who has received a refund of retired pay under section 1450(e) of title 10, United States Code, shall not be required to repay such refund to the United States.

(d)

Repeal of authority for optional annuity for dependent children

Section 1448(d)(2) of such title is amended—

(1)

by striking Dependent children.— and all that follows through In the case of a member described in paragraph (1), and inserting Dependent children.—In the case of a member described in paragraph (1),; and

(2)

by striking subparagraph (B).

(e)

Restoration of eligibility for previously eligible spouses

The Secretary of the military department concerned shall restore annuity eligibility to any eligible surviving spouse who, in consultation with the Secretary, previously elected to transfer payment of such annuity to a surviving child or children under the provisions of section 1448(d)(2)(B) of title 10, United States Code, as in effect on the day before the effective date provided under subsection (f). Such eligibility shall be restored whether or not payment to such child or children subsequently was terminated due to loss of dependent status or death. For the purposes of this subsection, an eligible spouse includes a spouse who was previously eligible for payment of such annuity and is not remarried, or remarried after having attained age 55, or whose second or subsequent marriage has been terminated by death, divorce or annulment.

(f)

Effective Date

The sections and the amendments made by this section shall take effect on the later of—

(1)

the first day of the first month that begins after the date of the enactment of this Act; or

(2)

the first day of the fiscal year that begins in the calendar year in which this Act is enacted.

205.

Increase in rate of dependency and indemnity compensation for surviving spouses of members of the Armed Forces who die on active duty

(a)

Increase in rate

Section 1311(a) of title 38, United States Code, is amended—

(1)

by redesignating paragraph (3) as paragraph (4);

(2)

by inserting after paragraph (2) the following new paragraph (3):

(4)

The rate under paragraph (1) shall be increased by $228 in the case of the death of a member of the Armed Forces on active duty.

; and

(3)

in paragraph (4), as redesignated by paragraph (1) of this subsection, by striking (1) and (2) and inserting (1), (2), and (3).

(b)

Effective date

The amendments made by this section shall take effect on October 1, 2007, and shall apply with respect to dependency and indemnity compensation payable for months beginning on or after that date.

206.

Reestablishment of age 55 as age of remarrying for retention of certain veterans survivor benefits for surviving spouses

(a)

Reestablishment

Section 103(d)(2)(B) of title 38, United States Code, is amended—

(1)

in the first sentence, by striking age 57 and inserting age 55; and

(2)

by striking the second sentence.

(b)

Effective date

The amendments made by this section shall take effect on October 1, 2007. No benefit is payable by reason of the amendments made by this section for any period before October 1, 2007.

207.

Commencement of period of payment of compensation for temporary total service-connected disability attributable to hospitalization or treatment

(a)

Commencement of period of payment

Section 5111(c) of title 38, United States Code, is amended by adding at the end the following new paragraph:

(3)

In the case of a temporary increase in compensation for hospitalization or treatment for a service-connected disability rated as total by reason of such hospitalization or treatment, the period of payment shall commence on the date of admission for such hospitalization or date of treatment, surgery, or other activity necessitating such treatment, as applicable.

.

(b)

Effective date

The amendment made by subsection (a) shall take effect on October 1, 2007. No benefit is payable by reason of the amendment made by subsection (a) for any period before October 1, 2007.

208.

Comptroller General report on adequacy of dependency and indemnity compensation to maintain survivors of veterans who die from service-connected disabilities

(a)

Report required

(1)

In general

Not later than 10 months after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the congressional veterans affairs committees a report on the adequacy of dependency and indemnity compensation payable under chapter 13 of title 38, United States Code, to surviving spouses and dependents of veterans who die as a result of a service-connected disability in maintaining such surviving spouses and dependents at a standard of living above the poverty level.

(2)

Elements

The report required by paragraph (1) shall include—

(A)

a description of the current system for the payment of dependency and indemnity compensation to surviving spouses and dependents described in paragraph (1), including a statement of the rates of such compensation so payable;

(B)

an assessment of the adequacy of such payments in maintaining such surviving spouses and dependents at a standard of living above the poverty level; and

(C)

such recommendations as the Comptroller General considers appropriate in order to improve or enhance the effects of such payments in maintaining such surviving spouses and dependents at a standard of living above the poverty level.

(b)

Congressional veterans affairs committees defined

In this section, the term congressional veterans affairs committees means—

(1)

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

(2)

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

III

Insurance Matters

301.

Reduction in premiums under Service-Disabled Veterans Insurance program

(a)

In general

Section 1922(a) of title 38, United States Code, is amended—

(1)

by inserting (1) after (a); and

(2)

by striking the fourth sentence and all that follows and inserting the following:

(2)

Insurance granted under this section shall be issued upon the same terms and conditions as are contained in the standard policies of National Service Life Insurance, except that—

(A)

the amount of such insurance shall be $50,000, or such lesser amount, evenly divisible by $10,000, as the insured may specify;

(B)

the premium rates for such insurance—

(i)

for premiums for months beginning before the effective date of this paragraph under section 301(c) of date of the enactment of the Comprehensive Veterans Benefits Improvements Act of 2007 shall be based on the Commissioners 1941 Standard Ordinary Table of Mortality and interest at the rate of 21/4 percent per year; and

(ii)

for premiums for months beginning on or after that effective date shall be based upon the 2001 Commissioners Standard Ordinary Table of Mortality and interest at the rate of 41/2 percent per year;

(C)

all cash, loan, paid-up, and extended values—

(i)

for a policy issued under this section before the effective date described in subparagraph (B)(i) shall be based upon the Commissioners 1941 Standard Ordinary Table of Mortality and interest at the rate of 21/4 percent per year; and

(ii)

for a policy issued under this section on or after that effective date shall be based upon the 2001 Commissioners Standard Ordinary Table of Mortality and interest at the rate of 41/2 percent per year;

(D)

all settlements on policies involving annuities shall be calculated on the basis of the Annuity Table for 1949, and interest at the rate of 21/4 percent per year;

(E)

insurance granted under this section shall be on a nonparticipating basis;

(F)

all premiums and other collections for insurance under this section shall be credited directly to a revolving fund in the Treasury of the United States; and

(G)

any payments on such insurance shall be made directly from such fund.

(3)

Appropriations to the fund referred to in subparagraphs (F) and (G) of paragraph (2) are hereby authorized.

(4)

As to insurance issued under this section, waiver of premiums pursuant to section 602(n) of the National Service Life Insurance Act of 1940 and section 1912 of this title shall not be denied on the ground that the service-connected disability became total before the effective date of such insurance.

.

(b)

Coordination with overall limit

Section 1903 of such title is amended by adding at the end the following new sentence: The limitations of this section shall not apply to insurance granted under section 1922 of this title, except that other insurance to which this section applies shall be taken into account in determining whether the limitations of subsections (a)(2)(A) and (b) of section 1922 of this title are met with respect to insurance granted under section 1922 of this title..

(c)

Effective date

The amendments made by this section shall take effect on the later of—

(1)

October 1, 2007; or

(2)

the first day of the first month that begins more than 90 days after the date of the enactment of this Act.

IV

Burial and Memorial Matters

401.

Plot allowances

(a)

Increase in plot allowance

Section 2303 of title 38, United States Code, is amended by striking $300 each place it appears and inserting $745 (as adjusted from time to time under subsection (c)).

(b)

Expansion of eligibility

Subsection (b)(2) of such section is amended by striking such veteran is eligible and all that follows through , and.

(c)

Annual cost-of-living adjustment

Such section is further amended by adding at the end the following new subsection:

(c)

With respect to any fiscal year, the Secretary shall provide a percentage increase (rounded to the nearest dollar) in each maximum amount of the plot allowance payable under this section equal to the percentage by which—

(1)

the Consumer Price Index (all items, United States city average) for the 12-month period ending on the June 30 preceding the beginning of the fiscal year for which the increase is made, exceeds

(2)

such Consumer Price Index for the 12-month period preceding the 12-month period described in paragraph (1).

.

(d)

Effective date

(1)

In general

The amendments made by this section shall take effect on October 1, 2007, and shall apply with respect to deaths occurring on or after that date.

(2)

No cola adjustment for fiscal year 2008

The percentage increase required by subsection (c) of section 2303 of title 38, United States Code (as added by subsection (c) of this section), for fiscal year 2008 shall not be made.

402.

Funeral and burial expenses

(a)

In general

Section 2302 of title 38, United States Code, is amended—

(1)

in subsection (a), by striking $300 in the matter following paragraph (2) and inserting $1,270 (as adjusted from time to time under subsection (c)); and

(2)

by adding at the end the following new subsection:

(c)

With respect to any fiscal year, the Secretary shall provide a percentage increase (rounded to the nearest dollar) in the maximum amount of benefits payable under subsection (a) equal to the percentage by which—

(1)

the Consumer Price Index (all items, United States city average) for the 12-month period ending on the June 30 preceding the beginning of the fiscal year for which the increase is made, exceeds

(2)

such Consumer Price Index for the 12-month period preceding the 12-month period described in paragraph (1).

.

(b)

Deaths from service-connected disability

Section 2307 of such title is amended—

(1)

by inserting (a) Funeral and burial expenses.— before In any case;

(2)

in paragraph (1) of subsection (a), as designated by paragraph (1) of this subsection, by striking $2,000 and inserting $4,100 (as adjusted from time to time under subsection (b)); and

(3)

by adding at the end the following new subsection:

(b)

Cost-of-living adjustment

With respect to any fiscal year, the Secretary shall provide a percentage increase (rounded to the nearest dollar) in the amount of benefits payable under subsection (a)(1) equal to the percentage by which—

(1)

the Consumer Price Index (all items, United States city average) for the 12-month period ending on the June 30 preceding the beginning of the fiscal year for which the increase is made, exceeds

(2)

such Consumer Price Index for the 12-month period preceding the 12-month period described in paragraph (1).

.

(c)

Effective date

(1)

In general

The amendments made by this section shall take effect on the date of the enactment of this Act, and shall apply with respect to deaths occurring on or after that date.

(2)

No cola adjustment for fiscal year 2008

The percentage increase required by subsection (c) of section 2302 of title 38, United States Code (as added by subsection (a) of this section), and the percentage increase required by subsection (b) of section 2307 of title 38, United States Code (as added by subsection (b) of this section), for fiscal year 2008 shall not be made.

403.

Authorization of appropriations for State cemetery grants program for fiscal year 2008

There is hereby authorized to be appropriated for the Department of Veterans Affairs for fiscal year 2008, $37,000,000 for aid to States for the establishment, expansion, and improvement of veterans' cemeteries under section 2408 of title 38, United States Code.

V

Housing Matters

501.

Grants for specially adapted housing for veterans

(a)

Increase in grant amounts

(1)

Acquisition of housing

Subsection (d)(1) of section 2102 of title 38, United States Code, is amended by striking $50,000 and inserting $60,000 (as adjusted from time to time under subsection (f)).

(2)

Adaptations to housing

Subsections (b)(2) and (d)(2) of such section are each amended by striking $10,000 and inserting $12,000 (as adjusted from time to time under subsection (f)).

(b)

Additional grant for acquisition of subsequent housing unit

Such section is further amended—

(1)

in subsection (c), by inserting or (e) after subsection (a); and

(2)

by adding at the end the following new subsection:

(e)
(1)

In addition to the assistance otherwise provided under subsection (d)(1), the assistance authorized by section 2101(a) of this title shall also include assistance for a veteran for the acquisition by the veteran of a housing unit to replace the housing unit for which assistance was provided under subsection (d)(1).

(2)

The amount of assistance under this subsection may not exceed the maximum amount of assistance available under subsection (d)(1).

(3)

Assistance shall be afforded under this subsection through a plan set forth in subsection (a), at the option of the veteran concerned.

.

(c)

Annual cost-of-living adjustment

Such section is further amended by adding at the end the following new subsection:

(f)
(1)

Effective on October 1 of each year (beginning in 2008), the Secretary shall increase the amounts in effect under subsections (b)(2), (d)(1), and (d)(2) in accordance with this subsection.

(2)

The increase in amounts under paragraph (1) to take effect on October 1 of any year shall be the percentage by which (A) the residential home cost-of-construction index for the preceding calendar year exceeds (B) the residential home cost-of-construction index for the year preceding that year.

(3)

The Secretary shall establish a residential home cost-of-construction index for the purposes of this subsection. The index shall reflect a uniform, national average increase in the cost of residential home construction, determined on a calendar year basis. The Secretary may use an index developed in the private sector that the Secretary determines is appropriate for purposes of this subsection.

.

(d)

Effective date

The amendments made by this section shall take effect on October 1, 2007.

502.

Veterans' mortgage life insurance

(a)

Increase in amount of insurance

Section 2106(b) of title 38, United States Code, is amended by striking $90,000 and inserting $150,000.

(b)

Effective date

The amendment made by subsection (a) shall take effect on the later of—

(1)

October 1, 2007; or

(2)

the first day of the first month that begins more than 90 days after the date of the enactment of this Act.

503.

Selected Reserves serving at least 1 year eligible for housing loans

(a)

Reduction in period of service requirement for Selected Reserves

Section 3701(b)(5)(A) of title 38, United States Code, is amended by striking 6 years each place it appears and inserting 1 year.

(b)

Effective date

The amendment made by this section shall take effect on October 1, 2007.

504.

Housing loan fees adjusted to rates in effect before passage of Veterans Benefits Act of 2003

(a)

In general

Paragraph (2) of section 3729(b) of title 38, United States Code, is amended to read as follows:

(2)

The loan fee table referred to in paragraph (1) is as follows:

LOAN FEE TABLE
Type of loanActive duty veteranReservistOther
obligor
(A)(i) Initial loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other initial loan described in section 3710(a) other than with 5-down or 10-down (closed on or after October 1, 2007, and before October 1, 2011)2.002.75NA
(A)(ii) Initial loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other initial loan described in section 3710(a) other than with 5-down or 10-down (closed on or after October 1, 2011)1.252.00NA
(B)(i) Subsequent loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other subsequent loan described in section 3710(a) (closed on or after October 1, 2007 and before October 1, 2011)3.003.00NA
(B)(ii) Subsequent loan described in section 3710(a) to purchase or construct a dwelling with 0-down, or any other subsequent loan described in section 3710(a) (closed on or after October 1, 2011)1.252.00NA
(C)(i) Loan described in section 3710(a) to purchase or construct a dwelling with 5-down (closed on or after October 1, 2007, and before October 1, 2011)1.502.25NA
(C)(ii) Loan described in section 3710(a) to purchase or construct a dwelling with 5-down (closed on or after October 1, 2011)0.751.50NA
(D)(i) Initial loan described in section 3710(a) to purchase or construct a dwelling with 10-down (closed on or after October 1, 2007, and before October 1, 2011)1.252.00NA
(D)(ii) Initial loan described in section 3710(a) to purchase or construct a dwelling with 10-down (closed on or after October 1, 2011)0.501.25NA
(E) Interest rate reduction refinancing loan0.500.50NA
(F) Direct loan under section 37111.001.00NA
(G) Manufactured home loan under section 3712 (other than an interest rate reduction refinancing loan)1.001.00NA
(H) Loan to Native American veteran under section 3762 (other than an interest rate reduction refinancing loan)1.251.25NA
(I) Loan assumption under section 37140.500.500.50
(J) Loan under section 3733(a)2.252.252.25.

.

(b)

Effective date

The amendment made by this section shall apply to loans closed after September 30, 2007.

VI

Benefits Administration

601.

Judicial review

(a)

Review by United States Court of Appeals for Federal Circuit of adoption or revision of schedule of disability ratings

Section 502 of title 38, United States Code, is amended—

(1)

by inserting (a) Judicial review.— before An action;

(2)

in subsection (a), as designated by paragraph (1) of this subsection, by striking (other than an action relating to the adoption or revision of the schedule of ratings for disabilities adopted under section 1155 of this title); and

(3)

by adding at the end the following new subsection:

(b)

Standard of review of actions relating to schedule of ratings for disabilities

In reviewing pursuant to this section an action of the Secretary relating to the adoption or revision of the schedule of ratings for disabilities under section 1155 of this title, the Court may set aside such action only if the Court finds such action to be arbitrary, capricious, or otherwise not in accordance with law.

.

(b)

Review by Court of Appeals for Veterans Claims of adverse findings of material facts

Section 7261(a)(4) of such title is amended by striking is clearly erroneous and inserting is not reasonably supported by a preponderance of the evidence.

(c)

Effective date

The amendments made by this section shall take effect on the date of the enactment of this Act. The amendment made by subsection (b) shall apply with respect to all cases pending for decision before the United States Court of Appeals for Veterans Claims other than a case in which a final decision has been entered before the date of the enactment of this Act.

602.

Elimination of rounding down of certain cost-of-living adjustments

(a)

Disability compensation

Section 1104(a) of title 38, United States Code, is amended by striking ,with all and all that follows up to the period at the end.

(b)

Dependency compensation

Section 1303(a) of such title is amended by striking ,with all and all that follows up to the period at the end.

603.

Clinical Information Data Exchange Bureau

(a)

Establishment of Bureau

The Secretaries of Veterans Affairs and Department of Defense shall jointly establish the DoD/VA Clinical Information Data Exchange Bureau (in this section referred to as the Bureau).

(b)

Information system

(1)

In general

The Bureau shall establish and maintain an information system that facilitates the clinical exchange of computable data within and between the health systems of the Department of Veterans Affairs and the Department of Defense.

(2)

Elements

In establishing the information system described in paragraph (1), the Bureau shall meet the following requirements:

(A)

Software requirements

The system shall utilize computer software—

(i)

the source code of which is open source and available in the public domain,

(ii)

that is nonproprietary, and

(iii)

that ensures that the electronic medical records in the health systems of the Department of Veterans Affairs and the Department of Defense are able to understand all major clinical vocabularies.

(B)

Patient privacy

The system shall comply with all appropriate rules, regulations, and procedures to safeguard patient privacy and to ensure data security.

(C)

Mapping of health information

The Bureau shall ensure that personal health information available in electronic form outside of the system will be able to be electronically mapped into the system.

(D)

Maintenance

The Bureau shall permanently maintain the system, including ensuring that any changes in any major clinical vocabulary are reflected in a timely manner in the electronic medical records in the health systems of the Department of Veterans Affairs and the Department of Defense.

(c)

Cost of system

(1)

In general

The cost of the information system established under this section, and the annual costs of maintaining the system, shall be borne equally by the Department of Veterans Affairs and the Department of Defense.

(2)

Fees

The Secretaries of Veterans Affairs and Defense may charge vendor user fees in order to facilitate the use of discrete clinical vocabularies within the system.

604.

Study and report on reforms to strengthen and accelerate the evaluation and processing of disability claims by the Departments of Veterans Affairs and Defense

(a)

Study

The Secretary of Veterans Affairs and the Secretary of Defense shall jointly conduct a study of the disability ratings systems of the Departments of Veterans Affairs and Defense, including an analysis of—

(1)

the interoperability of both systems, and

(2)

the feasibility and advisability of automating the Veterans Administration Schedule for Rating Disabilities (VASRD) to improve the time for processing, and the accuracy of, disability ratings.

(b)

Report

(1)

In general

Not later than 60 days after the date of the enactment of this Act, the Secretaries shall submit to the relevant committees of Congress a joint report on the study conducted under subsection (a).

(2)

Elements

Such report shall include specific legislative proposals, including the amount of funding, which the Secretaries find necessary to—

(A)

ensure that the disability ratings systems of both the Department of Veterans Affairs and the Department of Defense are interoperable and that information contained in both systems can readily be transmitted to and from each of the departments, and

(B)

automate the Veterans Administration Schedule for Rating Disabilities (VASRD), including—

(i)

an analysis of the necessary computer software and other technology, and

(ii)

a schedule for the completion of the automation.

(c)

Relevant committees of Congress

In this section, the term relevant committees of Congress means—

(1)

the Committee on Veterans' Affairs and the Committee on Armed Services of the Senate, and

(2)

the Committee on Veterans' Affairs and the Committee on Armed Services of the House of Representatives.

VII

Other Benefits Matters

701.

Automobile assistance allowance

(a)

Increase in amount of allowance

Subsection (a) of section 3902 of title 38, United States Code, is amended by striking $11,000 and inserting $22,484 (as adjusted from time to time under subsection (e)).

(b)

Annual adjustment

Such section is further amended by adding at the end the following new subsection:

(e)
(1)

Effective on October 1 of each year (beginning in 2008), the Secretary shall increase the dollar amount in effect under subsection (a) to an amount equal to 80 percent of the average retail cost of new automobiles for the preceding calendar year.

(2)

The Secretary shall establish the method for determining the average retail cost of new automobiles for purposes of this subsection. The Secretary may use data developed in the private sector if the Secretary determines the data is appropriate for purposes of this subsection.

.

(c)

Effective date

The amendments made by this section shall take effect on October 1, 2007.

702.

Refund of individual contributions for educational assistance made by individuals prevented from pursuing educational programs due to nature of discharge

(a)

In general

Section 3034 of title 38, United States Code, is amended by adding at the end the following new subsection:

(e)
(1)

In the case of any eligible individual who has been prevented from pursuing a program of education under this chapter because the individual has not met the nature of discharge requirement of this chapter, the Secretary of Defense shall, upon application of the individual, refund to the individual the amount determined under paragraph (3) if the Secretary of Defense determines that the nature of the discharge was due to minor infractions or deficiencies.

(2)

Paragraph (1) shall not apply to an individual if the discharge was a dishonorable discharge.

(3)

The amount determined under this paragraph with respect to any individual is the excess (if any) of—

(A)

the sum of the amounts described in section 3017(b)(1) of this title with respect to the individual, over

(B)

the sum of the amounts described in section 3017(b)(2) of this title with respect to the individual.

(4)

The Secretary of Defense shall make the payments under this subsection from the funds into which the amounts described in section 3017(b)(1) of this title were deposited.

.

(b)

Effective date

The amendments made by this section shall apply to discharges after September 30, 2007.

703.

Comptroller General report on provision of assisted living benefits for veterans

(a)

Report required

(1)

In general

Not later than 1 year after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the congressional veterans affairs committees a report on the feasability and advisability of the provision through the Department of Veterans Affairs of assisted living benefits for veterans who otherwise qualify for nursing home care through the Department in lieu of the provision through the Department of nursing home care for such veterans.

(2)

Elements

The report required by paragraph (1) shall include—

(A)

a description of various current proposals for the provision through the Department of assisted living benefits for veterans as described in paragraph (1);

(B)

an estimate of the costs of the various proposals described under subparagraph (A), and an estimate of any cost savings anticipated to be achieved through the carrying out of such proposals;

(C)

an assessment of feasability and advisability of the provision through the Department of assisted living benefits for veterans as described in paragraph (1), including an identification of the proposal, if any, described in that paragraph, that would result in the most cost-effective provision through the Department of assisted living benefits for veterans; and

(D)

such recommendations as the Comptroller General considers appropriate regarding the provision through the Department of assisted living benefits for veterans.

(b)

Congressional veterans affairs committees defined

In this section, the term congressional veterans affairs committees means—

(1)

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

(2)

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